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Journalism of Courage
The PM must lay out his priorities for the governments remaining term
On a day when the stock markets soared by over 400 points and the PMO quickly stepped in to block a mischievous draft circular on the General Anti-Avoidance Rules issued by the finance ministry,Prime Minister Manmohan Singh confronted both the extent of the faith the economy is putting in the new role he has assumed and the road blocks a recalcitrant bureaucracy can put in his way. There was no reason for the finance ministry to issue the draft guidelines just a day after Singh had clearly expressed his unhappiness at the impact of the tax measures on the economy.
What is needed at this stage is for Singh to announce his priorities for the remaining term of this government in detail. The prime minister provides an overarching vision but the finance minister moves the money and so has the responsibility to break down priorities into achievable objectives. Since Singh has chosen to take on the latter role too,he has to show his hand soon. That will include his estimate of growth rates,inflation,current account movements and subsidy reduction targets. The economy will demand these if catchwords like restoring confidence and reviving animal spirits have to play out. This will be necessary even if there is to be a new finance minister at some stage. The stamp of the prime minister has to be made visible in a clear agenda for the economy. Anything short of that will again push the economy back into the stagflation zone,from which a rescue will be very difficult.
