Do you remember the movie "Titanic"? I think you still do. Do you remember the part where panicked Ruth (Frances Fisher) asked, "Will the lifeboats be seated according to class? I hope they're not too crowded." Rose (Kate Winslet), in frustration and anger, replied, "Oh mother, shut up! Don't you understand? The water is freezing and there aren't enough boats. Not enough by half. Half the people on this ship are going to die."
And do you remember what Cal Hockley (Billy Zane) said right after that? "Not the better half" was what he said.
As we all know, the government of Mizoram led by Chief Minister Lalthanhawla is in what many would call "deep sh#%" as far as the economy is concerned. The state's 5000 plus crore debt (around 1 billion US dollars) continues to rise and the government seems to have only two solutions to rein in its spending that is driving the debt and deficit north - tax increase and culling of public employees!
The state's lone Rajya Sabha MP Ronald Sapa Tlau, a US-educated politician, recently admitted in the parliament that the state government is planning to increase taxes. This comes as a surprise because the admission is a rather naive political move on the part of the MP whose party is already under severe criticisms by the main opposition party and the public as being insensitive towards the people, even heavy-handed. He, however, did not specify the different areas where taxes would be raised. Regardless, any tax hike is likely to generate resentment from the people who are already feeling the pinch by the high cost of living and commodities and also the effect of the government's poor handling of the economy and finances.
The government of India led by a more pro-business, anti-socialist, right-wing PM Narendra Modi has made it clear to the states that they will have to up their game in the overall management of their economy and finances. The subsidized child of the country - the North Eastern region - according to some reports, is no longer going to enjoy some of the entitlements it previous took for granted. Take for example, funding of the Centrally Sponsored Schemes (CSS) such as Sarva Shiksha Abhiyan (SSA). Funding is now reduced and NE States will cease to enjoy their special category status that allows them to contribute only 10% of project costs while their counterparts contribute 35%.
"The the BJP government has reduced the Plan allocation for 2015-16 by 24.68 per cent. The savage cuts go across the board: the flagship Sarva Shiksha Abhiyan has been reduced by 22.14 per cent, funding for the Mid-Day Meal Scheme by 16.41 per cent, the Rashtriya Madhyama Shiksha Abhiyan for secondary education by 28.7 per cent and the Rashtriya Uchhattar Shiksha Abhiyan, to support state colleges, by 48 per cent. To take just one example, the SSA, which funds schools across the country: MHRD had asked for Rs. 50,000 cr in 2015-16; it received Rs. 22,000 cr from the Modi sarkar's current Budget" writes Dr.Shashi Tharoor, MP for Thiruvananthapuram, Kerela on NDTV website.
What is clear is that the Union government's budget cuts, in large part due to its belief in fiscal responsibility, is forcing the states to rethink about the way they manage their finances. For states like Mizoram, whose financial dependence is almost entirely on the handout from the government of India, even the 10% matching share to kickstart a government project is a struggle.
As a result, the state government is increasingly under pressure to lay-off its non-permanent employees and is gradually doing so. However, this move by the government creates an atmosphere of more disillusion and a deep sense of abandonment in the hearts of those employees whose ill-informed understanding of a government job is that of a secure one, with no possibility of really being laid-off like it is done in the corporate and business world - the real world. After all, in their mind, the government is a "good parent" who will always look after its "children". In fact, a lot of people believe in a government that will look after people from cradle to grave but somebody has to pay for it. This detrimental idea has been the driving force of most political parties in the state since the early political leaders in the early 50's demanded the abolition of the traditional Mizo Chiefs under whose rule the whole society was self sufficient. People are now lulled into a false sense of economic and job security by being taught to be dependent on government for jobs, handouts and bailouts. An entrepreneurial approach to generate wealth and income in the free market is the need of the hour.
I personally know a government vehicle driver who decided to leave his job and take the risk of investing in school shoe business. He and his wife travel to Delhi and other Indian cities to buy school shoes at the most competitive prices and sell them to retailers in Aizawl. This former government driver generates more wealth for himself, and his retailers, selling school shoes than when he was chauffeuring his government boss from home to office. In fact, his resignation from his job saved the government money both short term and long term (that is, if the government had the wisdom not to employ another person in his place). I know this is true because the driver used to drive my father's government car.
The fact is - it is more liberating and less burdensome on the state's exchequer for people to venture out in the private sector and there are a number of real examples of successes. A thirty-some year old bachelor with an MBBS degree decided he would enter the appliances retail market and today he is one of the most successful entrepreneurs in the state, much to the amazement of other already established businesses. This young businessman would have been a state legislator if his main opponent wasn't a try-hard candidate throwing everything he had in the last election.
Until and unless the political parties, including the one in government, have the courage to admit that more government jobs and more tax increase fool the people and hurt the economy we will continue to see populist policies such as the failed New Land Use Policy (NLUP) which is perhaps the biggest economic wrecking ball of all. A 2800 crore plus project carved out of the state's plan fund! (No wonder the state is running out of money.)
The state government is increasingly running out of excuses to be that "good parent" to the people. With lesser money coming from the Central government and no plan for cutting government spending, the true nature of a populist government in trouble is beginning to show. Absurd tax and policies are being proposed and forced despite widespread opposition. Taxes are hiked, in some cases, double the previous rates. Charity organisations that were hitherto exempted from certain taxes are now prey to the government's mad hunger for cash it needs to fund its seemingly senseless existence.
The big problem is not so much that the people are unwilling to share the burden or play a part in rebuilding the economy. The problem lies in the arrogance and out-of-touch attitude of the leaders whose ignorance of the people's struggle is fanning the flame of resentment towards the political and economic elites. There is a class of people in the state that has amassed or has the connection and ability to amass enough wealth and money so that they will never be left high and dry when the economy collapses.
Much like that ill-fated sealiner, the state is headed for an economic iceberg and the captain of the ship (senior Congress party media department member V.Z.Kaia actually issued an official press release calling the Chief Minister "Captain Lalthanhawla"!) Chief Minister Lalthanhawla does not have a plan to steer the ship away from disaster - political and economic. When the ship hits the iceberg and it begins to sink, there will be thousands of people going down. "The water is freezing and there aren't enough (life) boats. Not enough by half. Half the people on this ship are going to die."
Like the arrogant and heartless Hockley, you will hear the Chief Minister and all who are like him say, "Not the better half".
God help us all when that happens!
