The recent election verdicts underline importance of socio-economic issues

The BJP did exceedingly well in the recently held Assembly elections in Madhya Pradesh, Rajasthan and Chhattisgarh. The Congress failed to be even in the reckoning in the crucial states of the Hindi heartland. It was expected that the country’s grand old party would wrest Madhya Pradesh from the saffron outfit and at least retain power in Chhattisgarh, if not in Rajasthan.

The Congress, however, dethroned the BRS in Telangana, thereby strengthening its footprint in the south and emerging as a potential challenge to the Y.S. Jagan Mohan Reddy-led YSRCP in Andhra Pradesh, where Assembly elections are to be held before May. The result from Mizoram is of little political consequence for both the Congress and the BJP, where the regional party continues to rule the roost. Given the latest verdicts, the Congress leadership has to revisit its strategy for the Hindi belt, which is also a BJP’s stronghold.

Right from reshuffling its organizational structure to infusing a fresh lease of life at the grassroots level, a few drastically important transformative measures appear to be the need of the hour. In the recent past, the Congress has shown a tilt towards social justice by supporting the caste census and more transparent implementation of affirmative measures for the poor, in particular OBCs, SCs and STs, who are numerically dominant in Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh and Uttarakhand. The party, which is still in the grip of leaders who have traditionally been opposed to affirmative measures, has to be more vocal about social justice and empowerment of the marginalized sections. Although such leaders are also in the BJP, the party still manages to send out inclusive messages more effectively than the Congress.

As a corrective measure, the Congress should start the distribution of responsibilities in its organizational set up among leaders from larger and bigger castes, forming the Bahujan community accounting for the Hindi heartland’s not less than 75 per cent of total population. Certainly, these leaders won’t be as resourceful as their counterparts from other Hindu castes but they have votes of their people and the determination to work for their communities’ emancipation from poverty, backwardness and exploitation. Too much balancing and accommodating too many aspirations within the party but without responding to the expectations of majority communities won’t serve any long-term electoral purpose to any party, and the Congress is certainly not an exception.

Similarly, the Congress must remember that the BJP is winning elections by mobilizing OBC, SC and ST votes in its favour through various welfare schemes. Though the party is accused of being more lenient towards Economically Weaker Sections (EWS) of the non-reserved category of social groups in matters of the implementation of quota in jobs and academic institutions, the BJP seems to be successful in playing its OBC card well. In such a situation, the Congress must establish a practically strong relationship with regional parties, whose political ideology veers around the idea of social justice.

It is ironic that the country’s OBCs, SCs and STs, who have suffered caste-based oppression, discrimination and exclusion for centuries at the hands of haves among us, still don’t have an independent voice in Indian politics. This could be an opportunity for the Congress to cash in on. Now the economic message! If ‘freebies’ are aimed at empowering people in general, and improving their ease of living in particular, then these must be welcomed by all. In India, where income disparities are so yawning, the help of every rupee and kind matters. But how to reach the needy and solve their pressing problems remains a glaring challenge?

When on a night stroll in a city or town, one comes across hundreds of people sleeping on pavements and traffic signals dotted with beggars. A visit to the slums leaves one shocked seeing the conditions in which the poor people live. Take samples of drinking water supplied to them and invariably most of them will fail the test. Visit an emergency ward in any government hospital, anywhere in the country and one is bound to find them accursed, bar some exceptional cases. Basic health and education facilities must be accessed by all in a hassle-free manner. Do our states have enough funds to build a robust, quality and affordable health-education infra for all or should they continue with mindless ‘freebies’ at the cost of long-term sustainable and inclusive growth goals? They must not.

As per government data, Tamil Nadu saw its debt increase to whopping Rs. 753,860 crore during 2022-23 (budget estimate) as compared to Rs. 656,626 crore debt (revised estimate) during 2021-22. Uttar Pradesh’s debt increased to Rs. 710,210 crore during 2022-23, from Rs. 656,626 crore during the previous year. Maharashtra saw its debt increase to Rs. 680,357 crore during 2022-23 from Rs. 596,689 crore during the previous fiscal.

Similarly, West Bengal’s net liabilities increased to Rs. 608,313 crore in 2022-23, from Rs 550,708 crore in the previous year. Rajasthan’s net debt went up to Rs. 537,013 crore during 2022-23, up from Rs. 458,089 crore a year ago, while Karnataka’s debt increased to Rs. 535,157 crore in 2022-23 compared to Rs. 473,438 crore in 2021-22. The other states that saw their debt going up during the last fiscal included Andhra Pradesh Rs. 442,442 crore, Gujarat Rs. 423,711 crore, Kerala Rs. 390,860 crore, Madhya Pradesh Rs. 378,617 crore, Telangana Rs. 366,306 crore, Punjab Rs. 305,047 crore and Haryana Rs. 287,266 crore.

Debt management becomes quite complex if the States are not able to increase their revenue. Interest servicing becomes more expensive. As a result, there is a cut in capital expenditure, which encompasses investments in assets that contribute to the growth, efficiency, and competitiveness of a state or a country. The significance of capital expenditure lies in its ability to enhance productivity, streamline operations, and foster innovation. Infrastructure development, funded through capital expenditure, enhances connectivity, reduces logistical bottlenecks, and facilitates the smooth functioning of markets, thereby fostering trade and economic growth. In the context of inclusive development, capital expenditure plays a crucial role in bridging socio-economic disparities by creating opportunities for marginalized communities. Investments in education and healthcare, for instance, contribute to human capital development, empowering individuals with the skills and health necessary to participate meaningfully in the economy. Furthermore, capital expenditure in rural and underserved areas can uplift living standards, promote employment, and mitigate regional inequalities. The multiplier effect of well-planned capital expenditure ripples through the economy, while generating employment, boosting consumption, and catalyzing overall prosperity. In essence, our commitment to strategic capital expenditure not only fuels economic advancement but also serves as a cornerstone for fostering inclusive development, ensuring that the benefits of growth reach all segments of society. Will we ever be able to align our political manifestos to multifaceted socio-economic issues of the day and potential challenges of the future? Perhaps not in the near future!