Yes Ministers

Indians may have reason to believe that they have got themselves two Finance Ministers for the price of one, much in the fashion of the Clintons8217; implicit promise to America during Bill Clinton8217;s first presidential contest. This much was already apparent in the well-publicised hard bargaining that went on in assigning the Finance portfolio. Whatever the truth of reports that Minister of State R.K. Kumar will be a virtual parallel Finance Minister, a power struggle is inherent in the situation. Jayalalitha had wanted the Finance portfolio for an AIADMK man, the BJP was forced to make a point of not yielding that job to a non-BJP person. There is little doubt, however, that the jockeying for control of the ministry will go on.

The BJP might be relieved at having made a political point by not surrendering the Finance Minister8217;s position. But it might find, indeed it is probably well aware, that Jayalalitha8217;s nominee could end up running North Block as much as Yashwant Sinha. If so, it might find its reliefshort-lived. The government cannot be unaware that it has not wished trouble away, merely postponed it. If proof was needed that two functionally autonomous ministers cannot cohabit in the same ministry, it has been amply forthcoming in the Ministry of Home Affairs in recent years, where spats between the senior minister and his minister of state caused constant deadlock. This situation was bad enough when party colleagues ran different parts of a ministry. In the absence of even that cement, the turf battles will be fought in the BJP coalition as well as inside North Block. The BJP, admittedly for lack of an alternative, has made this bed for itself. It will not enjoy lying down on it.

The political problem, though a more sensitive matter for the BJP, is less than half the story. Finance is a ministry which, alongside Home Affairs, is the most dangerous ground for playing political football because of its extreme importance. And deadlock is not only built into the situation, the potential for it isenhanced by the way responsibilities have been divided between the two ministers. If it was clear that the Minister of State really would report to the Cabinet Minister, there would be no problem about whatever charge he was given. But if the two men are to be parallel power centres, then the present division could make trouble. If Kumar had been given banking and insurance but not revenue, he would have a relatively autonomous area to handle. But divorcing the two halves of the fiscal pie 8212; revenue and expenditure 8212; makes less sense if Yashwant Sinha is not to be the ultimate authority in North Block. In that event, the minister in overall charge of the Budget could end up having little control over revenues, while his counterpart would have no control over the policies that affected revenue collection. The one would then formulate policies for the other to implement. And yet, as the senior man and the minister in charge of the Budget, the flak would be all Yashwant Sinha8217;s to take. In which event, no oneshould be surprised if this recipe yielded disaster in economic management.