Reforms-Need for highest priority in States agenda

The central government in India has an established system/mechanism to generate a debate on bringing about the administrative & financial changes to somewhat match requirements of the day. Also, there exists a network of institutions (governmental or private) which keep on flagging the issues from time to time to induce focus on the administrative & financial impediments, requiring reformatory measures. After independence, Government of India appointed three Administrative Reforms Commissions with the objective of reforming the system. Whether the recommendations of these Commissions made any impact or not is a debatable matter but even the critics can not deny that the recommendations implemented by the government have had positive effect in reducing, at least, the procedural delays to some extent in some of the areas of central government’s functioning. As regards the financial sector, Apart from the permanent government bodies like the RBI and SEBI, the Rangarajan Committee, the Disinvestment Commission and a couple of such other bodies drew central government’s attention to serious financial issues (regulatory as well structural) which helped in tiding over the crisis such as low foreign exchange reserves, bailing out of the economic meltdown and the unbearable drain of sick PSUs.
In case of States in the country, there neither exist a worthwhile system on the central pattern nor have there been serious attempts to focus on the administrative or the financial maladies, in most of the States. The common man in India is directly bearing the brunt because the State governments run the show (whether it is maintenance of law & order, granting permits/licenses/certificates or the implementation of developmental schemes). Due to this situation, the State governments need to focus attention on the issue of ‘Reforms’ (administrative as well as financial). In this backdrop, following are some of the suggestions:-

I. Enforcement of Accountability to ensure implementation of Govt./Directives/Programmes/Policies:- Activating the Monitoring Cell, Having a Precise & To the Point Reporting System in place (Weekly for critical matters and Monthly for all others) on the specially designed ‘Single Page’ Proformas enabling the State government at the highest level to have a ‘Bird’s Eye’ view at a glance about the flow of ‘Activities’ in each of the Departments;

II. Augmentation of Financial Resources (Revenue):-

 Strict Tax Compliance:- The current level of Revenue on account of Sales/Excise Tax can be increased by at least 80% (could be even 100%) by eliminating leakages through strict supervision/IT application/simplifying collection mode/prohibitive penality imposition;

 Levying Green Cess:- Imposition of a nominal ‘Green Cess’ on the Industrial Units in the State would not cause any pinch while the total annual collection could be substantial;

 Complying with the provisions of FRBM Act:- Containing the State Financial Deficit within the limits prescribed under the Central Financial Responsibility & Budget Management Act would get enhanced central grants;

 Power Sector Reforms:- Complying with the Central Govt. directions regarding Power sector reforms would enable the State Govt. get additional financial grants;

 Small sized Projects under Central Sector Schemes:- There is tremendous scope to seek funding under Central Sector Schemes being controlled by various central Ministries by posing small sized project proposals;
 Food Processing Industries:- The criticality of this activity is not only from the point of view of improving the value addition & preventing wastages but it will also enable the State Govts. in realizing hundreds of crores by way of taxes/cess;

 Herbal based Industries:- Development of herbal based industries would not only enable exploitation of the tremendous potential lying dormant in the State but will get substantial revenue to the exchequer;

 Reducing Unproductive Expenditure:- Economic Reforms/Public Sector Reforms/Administrative Reforms/Rationalisation measures would result in saving of hundreds of crores to the State exchequer.

III. Reforms:- In order to bring about ‘Good Governance’, the issues are flagged three major categories as under:
• Improvement of Work Culture;
• Decentralisation & Delegation of Powers/Responsibilities;
• Merit-based appointments/promotions;
• Incentives for Performance and Disincentives for Non-Performance;
• Objectivity in enforcement of Laws, Rules & Regulations;
• Effective Mechanism for Redressal of Public Grievances to inspire People's confidence;
• Effectiveness & Judiciousness in the working of the Police to restore People' Faith in the System;
• Greater Transparency & Openness in the governmental working;
• Mechanism for easy Public accessibility to Governmental Functionaries through rigorous field touring and regular reporting system by the officers at all levels.

IV. Development through Perspective Planning:- Having a Perspective for each of the Departments to prepare a Long-term Plan from which should emerge the Short-term Plans, as well as the requisite Straregies /Policies /Programmes /Projects /Schemes. The main issues are flagged as under:-
 Strengthening Education System (Better Infrastructure, Vocation oriented curricula);
 Strengthening Health Infrastructure;
 Drinking Water and Irrigation;
 Roads, Rails and Aviation Infrastructure;
 Improvement of Infrastructure relating to Civic Amenities;
 Infrastructural improvement to facilitate tapping of Renewable Energy Sources based on Solar and Wind for local energy requirements;
 Improvement of infrastructure to facilitate reduction of crop losses in Agro-Horticulture sector.