Rahul’s Manifesto Is a Mix of NYAY and UMMEED

What sticks out is an attempt to marry, in Chidambaram’s words —“wealth creation” with “guaranteed welfare.”

The Congress released its manifesto for the 2019 Lok Sabha polls on Tuesday, 2 April.

(Photo: PTI)

Let us first take a look at the key announcements in the Congress manifesto:

• A promise of Rs 6,000 a month to the 20 percent poorest households in India
• A separate employment ministry to push job creation
• All vacancies in central government and PSUs to be filled up within a year
• Positions of Seva Mitra to be created in panchayats and urban local bodies
• A separate farm budget and abolition of the APMC act
• A revamped rural employment guarantee focusing on infrastructure creation; increase the guaranteed days of employment up to 150 from the existing 100
• A single rate under the GST; panchayats and municipalities to be given a share of GST
• Education to get 6 percent of GDP and 3 percent of GDP for health
• A law on privacy; restrict the use of Aadhaar to few areas
• Strengthening the autonomy of institutions like the EC, RBI, CIC and the CBI
• A new urban governance model with a directly elected mayor
• Abolition of electoral bond as an instrument to collect funds for political parties

UMMEED in Congress Manifesto

Big promises aside, what strikes out is an attempt to marry what former finance minister P Chidambaram said at the launch of the manifesto — “wealth creation” with “guaranteed welfare.” In other words, the Congress sought to supplement — in the words of The Quint’s Editor-in-Chief Raghav Bahl — NYAY with UMMEED.

Here is what Raghav Bahl wrote last week:

“If NYAY is to succeed, Rahul Gandhi and Congress must also vigorously design and implement UMMEED, viz Unleash Mahatvakanksha (ambition) and Mojo via Exceptional and Energetic Deregulation. NYAY and UMMEED should be treated as identical twins, born to and nurtured by the same mother, ie, a caring, sensitive and proactive Indian state. Together, these shall transform India.”

While welfare schemes have received the bulk of attention, the focus on unleashing entrepreneurial spirit has been a welcome departure. There is a refreshing admission in the manifesto that “government control and bureaucratic interference are aplenty. Regulators have morphed into controllers.”

In fact, the manifesto has given a clear roadmap of how government’s interference in certain areas is going to be minimised. In that sense, it is a clear departure from the statist policy being pursued in the last five years.

Primacy of Private Sector Is a Welcome Departure

And perhaps for the first time, the Congress has advocated the primacy of the private sector in accelerating growth engine. The manifesto says: “In an open, market economy, the private sector must play the lead role in identifying opportunities, mobilising resources, adopting advanced technology, producing goods and services, and securing domestic and foreign markets. Congress promises to extend full support to the private sector and to revive the animal spirits of our entrepreneurs.”

Don’t we need a new round of animal spirits to be unleashed, now that the investment rate has fallen to a level last seen some 15 years ago? The party also promises to abolish angel tax on all start-ups.

There is also a hint of limited role of government investment in giving a fillip to the economy.

The manifesto says that “government expenditure must play a lead role in the creation and provision of public goods. The Congress promises adequate expenditure on roads, railways, waterways, drinking water, sanitation, healthcare, education, national and internal security.”

Equally refreshing is the Congress’ promise of reviewing and repealing all laws, rules and regulations within three months that “are inconsistent with a market economy.”

Instead of suggesting dos and don’ts for private investors, the Congress manifesto clearly spells out boundaries for the government and that is a welcome change.

It says: “Unless we are vigilant, the government has a tendency to interfere with markets as well as re-acquire control over trade, industry and business. The government has a role in an open and liberal market economy and it is worthwhile to state the Congress position on the role of government. a) We must get the government out of gratuitous interventions in the market; b) We must get the government into addressing notable market failures through regulation (eg capital market, banking, etc); and c) We must build capacity in the government to do the things it must do (eg taxation, delivery of public goods and services, etc)”.

The party has also promised a comprehensive law on doing business in India “that will incorporate the best business practices and rules.” A welcome boost perhaps for wannabe investors, domestic as well as foreigners.

Crowdsourcing of Ideas

The Congress claims to have collected inputs from domain experts while formulating its manifesto. It claims to have had 121 public consultations, including 53 sessions with farmers, teachers, entrepreneurs, doctors, lawyers and economists.

The emphasis therefore has been on involving domain experts in key policy formulations. On foreign policy, the manifesto promises to establish “a National Council on Foreign Policy consisting of members of the Cabinet Committee on Security, scholars, domain experts and diplomats to advise the government.”

Similarly, the Congress proposes to establish a “National Commission on Agricultural Development and Planning consisting of farmers, agricultural scientists and agricultural economists to examine and advise the government on how to make agriculture viable, competitive and remunerative.”

In days to come, there is going be extensive debate on whether the Congress manifesto is anything but a document of intent and tough to implement as such. But we must concede that the grand old party has put out a document that has some refreshing ideas.