Milka Casanegra, the former chief of tax
administration at the International Monetary Fund had a
famous aphorism: “Tax policy is tax administration”. It
basically means that you can design whatever policy you
want, but if you don’t have a proper administrative
framework, it will surely come to nought. Ms. Casanegra
would have much to say about our soon to be implemented
Rs.40,000 crore Rural Employment Guarantee scheme — all
of which uncomplimentary. Let me explain why.
Located on the left bank of the river
Sone, Jehanabad in Bihar surely ranks among the worst 50
rural districts in the country. According to the 2001
Census, 66 per cent of its 221,000-odd households lived
in kutcha houses; and only 1.5 per cent of the
households could boast of an electricity connection
which, knowing Bihar’s administration, probably didn’t
have electricity for more than two hours a day. It is a
desperately poor district with no roads or
infrastructure worth the name; schools exist merely on
paper; medical facilities are non-existent. It is also
prone to vicious caste violence. On a night of December
1997, Ranvir Sena thugs rowed across the river and
massacred over 70 dalits — men, women and children alike
— in a tiny hamlet called Laxmanpur Bathe. If there is a
district crying out for sustained succour, it must be
Jehanabad. And there are many other such districts in
Bihar: Araria, Gaya, Katihar, Kishanganj, Madhepura,
Purnea, Sheohar, Supaul, to name a few.
This is where Ms. Casanegra’s adage comes
in. There is absolutely nothing in our administrative
system which can ensure that funds allocated for
creating employment in Jehanabad can flow directly from
Delhi to the district. It has to be routed through Patna.
Given the state of political and economic governance in
Bihar and the venality of its politicians and civil
servants, if Rs.100 crore were earmarked for Jehanabad,
how much do you think would actually go to that
godforsaken district? At the very best, it won’t exceed
Rs.15 crore. And after the local MPs and MLAs get their
share of the booty, rural employment would be left with
probably less than Rs.10 crore. If that.
What is true for Jehanabad holds in large
measure for Jharkhand, central Madhya Pradesh,
Chhattisgarh, Orissa, parts of central and southern UP,
northern Karnataka, swathes of Assam and the north-east,
the tribal districts of Gujarat, and large tracts of
western Rajasthan. There is simply no administrative
system worth the name to ensure that the funds allocated
for the worse off districts actually flow in substantive
measure to the district headquarters, or that the little
which gets there is in fact used for rural employment
generation.
According to the government and its many
honorary advisers, this is where the Indian NGOs will
jump into action. This phalanx of dedicated activists
will fan the length and breadth of the country to
monitor the actual implementation of the programme and
be its conscience keepers and whistle blowers. So, we
will see tens of thousands of dedicated NGOs supervising
every project and every paisa of Rs.40,000 crore spent
each year on the scheme, and blowing the whistle on
every corrupt politician who comes in the way. And,
fearing exposure and retribution, the tribe of crooked
netas and babus will be ensure that the money is well
spent. A great vision. How I wish it were true!
I won’t be at all surprised if every MP
votes for this scheme. It is, after all, legally
sanctified loot. Rarely in the history of a nation can
one get an assured kitty of Rs.40,000 to play around
with, year after year. It is a great deal for everyone.
It makes the government look socially concerned; it
gives the politicians a handy bag of money; and it gives
the NGOs their place in the sun. For all these wonderful
things, it is a small matter that the exchequer may go
bust. And that it will do precious little for the
hapless households of Jehanabad.
That’s why, as Ms. Casanegra would say,
“Policy is nothing without administration”. And why the
rural employment guarantee scheme will be nothing but
legislatively sanctified loot.