A constant factor in the last 6 decades or so restraining India from reaching the pinnacle that it deserved to reach has been an inefficient and cumbersome bureaucracy. The exchequer bears a heavy burden in paying the salaries of 53 Lakh current employees and pension of 40 lakh odd retired government employees. It is also true that we cannot shed of this weight given the Welfare nature of the State as mandated by the Constitution of India compelling the Government to maintain a cumbersome bureaucracy. In spite of this heavy burden the government employees act as a bottleneck in the growth story of India. In 1991 we got rid of the License Raj but we did not get rid of the Inspector Raj which played an equally crucial role in slowing down the growth story of India. Successive Governments have failed to address this key issue primarily because of the fact that this inefficient Indian bureaucracy also constitutes a shrewd vote bank and no political executive was ready to take on the permanent executive.
Amidst this, the 7th Pay Commission gave a bold suggestion of denying the annual increment to the non performing Government employees which was until now a matter of course.
The Pay Commission had correctly pointed out in its report that there is a widespread perception that promotions as well as financial increment have become a matter of course in Government employment instead of being a reward of satisfactory performance.
The Government has thus implemented the recommendation of the Pay Commission whereby the benchmark of performance increment for promotion and financial up gradation has been enhanced to “very good” from “good”. This move as communicated vide the Administrative Order by the Union Ministry of Finance is definitely a step in the right direction and it will have definite political and economic implications and the monstrous aim of reforming the bureaucracy that the Modi Government has taken up will also have certain stiff challenges. Here is a list of the same repercussions and challenges.
Economic Implications:
The task of reviving the Indian Economy from the ugly mess created by the predecessor Government with a continuous period of monetary scams allegedly involving top leaders and bureaucrats followed by a complete economic paralysis and making India a global economic power. The process of making India a major economic player can be described as ‘work in progress’ even as India has been hailed by International Organizations as a bright spot in a bleak global economy. This step being indicator of a firm commitment to reform the Indian bureaucracy in order to make it a facilitator of reforms instead of an impediment will strengthen the faith of the investors in the present regime and also help in making the roots of Indian economy stronger.
Political Implications:
In India’s scenario it can be said that ‘Good Economics is bad politics and bad economics is good politics’
As already iterated before, the Indian bureaucracy however economically inefficient it may be does form a cohesive vote bank. The Government employees already seem to be sharing an acrimonious relationship with the Modi Government given indications of dissatisfaction after a comparatively lower hike under the 7th Pay Commission. This move may turn out to be a double edged sword for along with popular support for its boldness it may also invoke the anger of the Government employees who have become habitual of being a lethargic member living off the tax money of the ordinary citizen.
Challenges before the Modi Government:
There is not an iota of doubt behind the fact that in order to herald a second wave of economic reforms, the Modi Government has to make the ‘inefficient’ bureaucracy ‘efficient’. But the process may have its own set of challenges and the aforementioned move may not have the desired effect primarily because of the causes which motivated the said move. It is an unfortunate reality that the APAR reports (performance Increment in Government Jobs) are no longer made in the way they were supposed to be made. Giving a “very good” APAR conducive to the need of an employee have become a matter of course and the whole system needs to be transformed.
It would be ideal if a transparent system of giving targets and rewarding on compliance is formulated, wherever possible. While the APAR system may be retained in Paramilitary Forces and other organizations where a target based Increment is not suitable.
Conclusion:
The objective of reforming the bureaucracy is an ambitious one and a lot still needs to be done. But it is commendable that the Modi Government has shown correct temperament instead of becoming a victim to the fear of political fallouts.
