ROUND THE STATES

New Delhi, 26 July 2006

Sixth Pay Panel

STATES WARY OF FISCAL CRISIS

By Insaf

The States are greatly upset over the Centre’s decision to set up the Sixth Pay Commission for about 3.3 million Government employees across the country.  Even though the question of implementing the recommendations will arise only after two to three years (just before the next Lok Sabha poll in 2009), the States have described this as another trigger to fiscal crisis, irrespective of their political affiliations. Already they are reeling under acute resource crunch following the implementation of the Fifth Pay Commission recommendations, which led to about 75 per cent hike in the wages of their employees.  Almost 90 per cent of the States’ revenue went into paying salaries. As many as 13 States did not have enough funds to pay salaries in 2001, forcing the Centre to come to their rescue by way of special financial packages.

In fact, West Bengal, Bihar, Orissa, Assam, Manipur and Meghalaya had sought a mechanism under which the Centre could announce a pay revision after consulting the States.  Several States have also drawn the Centre’s attention to their poor financial condition. They have asked it to share their burden which will accrue due to the implementation of the Sixth Pay Commission recommendations in 2008-09.  Bihar’s Additional Finance Commissioner has been quoted as stating that “We can’t afford it when finances are in shambles due to the fiscal indiscipline over the past few years”.  Finance controllers of several other States too have reacted in a similar vein. Maharashtra’s Finance Minister, Jayant Patil has come out with fact and figures to prove how the State Government will “bleed” by the implementation of the next Pay Commission report.

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Unprecedented Development In Punjab

Punjab and its Chief Minister, Amarinder Singh, have started preparations for the Assembly poll early next year.  Work has started on the election manifesto of the ruling Congress. Various groups are being involved in shaping it. Development is going to be the main plank of Amarinder Singh and his party.  He claims that the State is now a “favourite industrial destination”, thanks to unprecedented development in all spheres during the past four years.   The Chief Minister has once more raised the sensitive issue of providing Haryana water from the Sutlej or Beas.  He has unequivocally declared that Punjab does not have any surplus water to give to Haryana. In fact, he has also clarified that Haryana should not expect any water from Punjab for its proposed Rs.260-crore Hunai-Bhutang link canal.

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Race To Woo Muslims In U.P.

A race to win the support of Muslims for the Assembly poll in U.P. early next year is hotting up. The ruling Samajwadi Party of Mulayam Singh Yadav, the BSP of Mayawati and the Sonia Congress are grabbing every opportunity to woo the community. Soon after the Mumbai blasts, Chief Minister Mulayam Singh went out of his way to give a clean chit to the Students Islamic Movement of India (SIMI) even when a finger of suspicion was pointing against it. Now he has announced his decision to appoint 5,000 more Urdu teachers, with a view to “developing the language”.  Mayawati, for her part, has indicated that she will field more Muslim candidates for the Assembly poll.  The Congress too is not lagging behind.  Its Home Minister at the Centre, Shivraj Patil has publicly given a clean chit to the madrasas stating that they are “seats of social service, not centres of terror”.  

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New Delimitation Norm For Hill Areas

The erstwhile hilly region of U.P., now the new State of Uttaranchal, is also getting ready for next year’s Assembly poll.  The President of the ruling State Congress, Harish Rawat, who has been a potential candidate for Chief Ministership from the very beginning, has demanded a new formula for delimitation of constituencies to ensure that the scarcely- populated hill and tribal areas do not end up with reduced representation in the Vidhan Sabha and the Lok Sabha.  He has written not only to the Election Commission, but also to the Prime Minister, Congress Chief Sonia Gandhi and Opposition leaders against the existing delimitation formula. He has urged that the delimitation exercise being presently undertaken will leave large number of backward hill and tribal areas with reduced or no representation.  Instead, these areas deserve to be provided more seats in the Assembly.

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Hooda Secure In Haryana

Haryana’s Chief Minister, Bhupinder Singh Hooda, continues to enjoy the confidence and goodwill of the Congress High Command. Consequently, renewed efforts by Bhajan Lal, the State’s veteran leader known for his “Aaya Ram Gaya Ram” politics, to create trouble in the State Congress have come to naught. Initially, Bhajan Lal, who claims that the “Congress is in his blood”, tried to foment problems by stepping down as President of the State Congress. Now, he virtually “boycotted” the first meeting of the newly-constituted Executive Committee of the Pradesh Congress.  What is more, his elder son, Deputy Chief Minister Chander Mohan was also conspicuous by his absence. (Remember, Bhajan Lal resigned as the State party chief in protest against exclusion from the new PCC of some leaders known to be his supporters). The AICC leadership continues to take a tough line against Bhajan Lal and his younger son Kuldeep Bishnoi. It does not want the veteran leader to rock Hooda’s boat.

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Ruling JD(S) Breaks In Karnataka

Down South in Karnataka, the ruling JD(S)-BJP coalition Government seems to be on the verge of collapse. Siddaramaiah, former Deputy Chief Minister and senior leader of the JD(S), has now formally joined the Congress.  His supporters, including eight to ten MLAs, are expected to follow suit soon. He vowed in New Delhi last week in the presence of party Chief Sonia Gandhi to bring the Congress back to power in Karnataka.  One of the main reasons for Siddaramaiah and his supporters to leave the JD(S) is the decision of the party Chief H.D. Deve Gowda and his son Chief Minister H.D. Kumaraswamy to join hands with the “communal” BJP for power. Siddaramaiah’s main political agenda now is to fight the BJP ideology and bring down Kumaraswamy’s Government.

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Karunanidhi Honours Commitments

The DMK supremo and Tamil Nadu Chief Minister, M. Karunanidhi has honoured his party’s pre-poll commitment: “If voted to power, the manifesto itself would be presented as the State’s budget for 2006-07.”  Reflecting this resolve, Karunanidhi Government’s first year budget proposals presented to the Assembly last week include provisions for almost all populist measures promised by his party. The largest provision of Rs.1,950 crore has been made for food subsidy. Rice will be distributed to the ration card holders at Rs.2 per kg.  The next major provision of Rs.1,435 crore is to make good the loss caused to the cooperative banks due to the waiver of farm loans.  A special task force is also being constituted under the chairmanship of the Chief Minister to ensure hassle-free growth of industry.

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An authoritative intelligence report with the Union Home Ministry has concluded that at least 256 modules of Pakistan’s ISI are active across the country, recruiting youth and commissioning “Sleeper cells”.  These include 146 cells in U.P., Bihar, West Bengal and Assam, while over 80 modules have been set up in the southern States.  At least six such modules, each headed by a leader called “Amir” are operating in Maharashtra and five in Gujarat and Rajasthan. Additionally, the ISI is outsourcing some of its channels to certain groups in Bangladesh and Nepal.  This is no more than a sinister design to protect Pakistan’s direct involvement in terror-related activities in India. ---INFA

(Copyright, India News and Feature Alliance)