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Journalism of Courage
MUMBAI, OCT 21: A section of the top bureaucrats have strongly opposed Chief Minister Vilasrao Deshmukh8217;s proposal to present a White Paper on economic crisis, claiming that it would prove to be counter productive.
8220;Certainly, we are bound by the orders of the Chief Minister to present the White Paper during the on-going special session of the State Legislature. However, we feel that no purpose will be served by such a move and on the contrary, it will have an adverse impact on the fair image of the progressive State,8221; a senior official said.
Immediately after he took over, Deshmukh, along with Deputy Chief Minister Chhagan Bhujbal had a marathon meeting with top bureaucrats as well as his Cabinet colleagues on the financial situation.
Though the top bureaucrats of the finance as well as Planning Department frankly admitted the State was passing through a critical phase owing to large scale indiscipline, they were reluctant to accept Deshmukh8217;s order on a White Paper.
Bureaucrats felt that if such apaper is presented before the Legislature, it will have an adverse impact on foreign as well as domestic investments. 8220;We are trying very hard to maintain our premier position. If the investors come to know of the real financial situation, then they will opt for neighbouring Andhra Pradesh, Karnataka or Gujarat for better prospects,8221; the official added.
However, when both Deshmukh and Bhujbal insisted on the proposal, since they were determined to take the erstwhile Alliance government to task, the bureaucrats agreed, but sought time to present the White Paper.
The contention of Deshmukh and Bhujbal was that since the damage has already been caused owing to implementation of ill-advised policies by the Sena-BJP Alliance, presentation of White Paper will not be counter productive. In the event the White Paper is not presented as desired by the bureaucrats, the investors will still know the state of affairs from leading institutions like the Centre for Monitoring Indian Economy CMIE and Crisil, Bhujbaltold the officials.
During the meeting, officials admitted that they miserably failed in their duty to impress upon the then chief minister and deputy chief minister to desist from taking populist decisions at the cost of state8217;s economy. 8220;Now we feel that the credibility of the bureaucrats of one of the best administered state in the country is at stake. We did not play the desired role as a result, the once financially sound state is in unprecedented economic crisis,8221; the official added.
When Bhujbal was leader of Opposition, he had blasted the Alliance Government on the economic situation. Bhujbal8217;s contention was that the Alliance Government had completely failed to create assets and exponential growth in liabilities. Secondly, the Deputy Chief Minister had submitted that the accumulated loans of the Congress government till 1995 stood at Rs 14,000 crore, while the Alliance Government in next four years, procured loans worth Rs 45000 crore.
However, former chief minister Narayan Rane said the newGovernment should first prove its majority on the floor of the House and then comment on the financial situation of the State. 8220;It is true that we raised loans, but one must examine the reasons for securing loans,8221; he said.
The former CM said, since the Congress, which was at the helm of affairs for more than four and half decades, miserably failed to protect the interest of the State, the Alliance Government had to raise loans to implement schemes of public interest. 8220;We raised loans for implementing irrigation projects under the Krishna Valley projects. Since the projects had to be completed in a time bound period, we had to approach financial institutions. In fact, when the Congress was in power, it ignored the projects,8221; Rane pointed out.Similarly, the Alliance Government undertook ambitious projects of providing drinking water and construction of all weather roads to link the district headquarters to the remote villages in the area, he added.
Secondly, Rane said when the Alliance Government cameto power, the financial situation of the State was not satisfactory. 8220;At least we did not take overdraft during our tenure, whereas, it was the habit of the Congress government,8221; he pointed out.
And now, the situation is that the government was facing severe resource crunch to pay the wages and bonus and it will have to raise fresh loans to pay interest on earlier loans.
