ELECTIONS TO INDIAN PARLIAMENT 2019 - PART 4

The elections are over, done and dusted and the BJP had come out victorious bagging more than 300 seats and the NDA clocking over 350 seats. The two southern states Kerala and Tamilnadu defied the national trend and did not elect a single member of the BJP to the parliament. Even the sitting member and union minister from Kanyakumary constituency was defeated. Let us take a loot at post poll issues because of this peculiar position of these two states.

The BJP and its allies will elect the prime minister as the leader of the party and Sri Modi will be sworn in as the next Prime Minister after the new Lok Sabha is formed.  He will form a new government. His oft repeated slogan Sabka Saath Sabka Vikas is going to drive the government policies and plans in the next five years.  His speech to the newly elected members of the parliament of the alliance is a pointer towards this. The under performance of the party in a few states is not going to deter the government in taking those states along.  Some of the states like Tamilnadu contribute to the national treasury more than what they draw from it.  With the introduction of GST, the indirect taxes that were of different regimes, rates, categories were all merged into one single tax regime and the customer knows what he and how much he is paying for.  This single tax regime has also increased the tax revenue substantially.
The developed states like Tamilnadu contribute more by way of collection through GST from the industries, commerce and services in the states. The concept of taxing such states for the benefit of less developed states to enable them to reach that level playing platform as recommended by different finance commissions so far and adopted by the previous governments is going to be continued by the next government also. In that scenario, the allocation of funds as a share for states like Tamilnadu is going to be lower compared to what is allocated to states like Odisha or Bihar.

Tamilnadu state is looking at a huge debt burden of more than 4 lakh crores (INR 4 trillion) and whatever revenue generated will be just enough to meet the administrative expenses and interest cost.  Therefore, a different approach to state's finances must be made. However, with a higher representation in the parliament only of the opposition parties and the state ruling party having one seat only in the election, it is well nigh impossible for getting a higher allocation of funds and setting right the finances of the state.  The various welfare measures initiated by the former chief minister that are being continued by the present government are a big drain on the state treasury and a pragmatic view must be taken in respect of all these welfare measures.  The state's over dependence on the liquor vends under the control of the state corporation for generating revenue is making the public spending the money on liquor consumption and drunkards.  Socially and economically this is proving to be a big thumbs down to the state in terms of growth and standing among other states.  The revenue of about INR 30000 crores annually from the liquor corporation is not even enough to meet the administrative expenses of the government.  Secondly the state-owned transport corporations had been reeling under heavy losses. Though new buses had been acquired by the government, the maintenance of the same is far from satisfactory leading to frequent breakdowns and damages.  The debt burden is increasing with additional revenue expenditure by way of increased salaries, pension etc.  This puts the state under tremendous financial burden.  The state administration has to work in tandem with the central government for increased allocation of funds from the central treasury and implement various schemes that had been drawn for the welfare of the state.

The people of the state got carried away by the unrestrained attack on the ruling party in the center and the prime minister and the majority Hindu religion by the main opposition party in the state. The brazen manner in which the opposition party and many fringe elements in attacking many development plans for the state has cost the state in terms of employment opportunity and further development. It is time, the main opposition party realizes its wrong policies of attacking the prime minister and the central government for all the ills of the previous governments in which it was a partner and put a full stop to it.  Failing which it will be a throwback to state to the late sixties when the development was lagging many other states.

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