The Saradha scam will further aggravate Bengal’s economic crisis
The unraveling of the Saradha scam in West Bengal could not have come at a more inopportune time for Chief Minister Mamata Banerjee. It has only confirmed the growing perception that the state is in the throes of severe misrule and inept governance at the hands of Didi and her Trinamool Congress Party. Even if we ignore the obvious links between the TMC and Saradha supremo Sudipto Sen, Banerjee's actions in the wake of the scam have only earned her further ridicule and derision.
Even if there is nothing wrong in bailing out the financially-fleeced victims, why impose a tax burden on people who had nothing to do with Saradha's misdeeds? Banerjee plans to raise Rs.150 crore from imposing an additional levy on cigarettes (which seems to be sensible) and the remaining Rs.350 crore (of the Rs.500 crore liability incurred by depositors) from the raised petro-prices. These higher taxes come close on the heels of the recent hike in VAT slabs in the state. However, the additional levy on cigarettes is sure to pinch a lot of pockets considering that taxes were raised by 5 percent only a month ago. Even though Banerjee is well within her rights to increase taxes on items she feels merits such an imposition, she also has a moral responsibility to ensure that the money earned is well spent.
But that does not appear to be the case. Instead, Didi's populism has been a key factor in straining the government's budget to breaking point. The state's subsidy figure has already jumped to Rs.2171.56 crore in the current fiscal from Rs.1512.95 crore in 2012-13. Much of this is being squandered on populist programmes, ranging from extending dole for unemployed youths to compensating imams of the mosques (directly linked to vote bank appeasement).
Such spendthriftiness could have been condoned only if the state was not staring at bankruptcy – a distinct possibility given the debt figure of Rs.49366.65 crore and administration’s struggle to meet its wage liability of Rs.42,000 crore.
The unraveling of the Saradha scam in West Bengal could not have come at a more inopportune time for Chief Minister Mamata Banerjee. It has only confirmed the growing perception that the state is in the throes of severe misrule and inept governance at the hands of Didi and her Trinamool Congress Party. Even if we ignore the obvious links between the TMC and Saradha supremo Sudipto Sen, Banerjee's actions in the wake of the scam have only earned her further ridicule and derision.
Even if there is nothing wrong in bailing out the financially-fleeced victims, why impose a tax burden on people who had nothing to do with Saradha's misdeeds? Banerjee plans to raise Rs.150 crore from imposing an additional levy on cigarettes (which seems to be sensible) and the remaining Rs.350 crore (of the Rs.500 crore liability incurred by depositors) from the raised petro-prices. These higher taxes come close on the heels of the recent hike in VAT slabs in the state. However, the additional levy on cigarettes is sure to pinch a lot of pockets considering that taxes were raised by 5 percent only a month ago. Even though Banerjee is well within her rights to increase taxes on items she feels merits such an imposition, she also has a moral responsibility to ensure that the money earned is well spent.
But that does not appear to be the case. Instead, Didi's populism has been a key factor in straining the government's budget to breaking point. The state's subsidy figure has already jumped to Rs.2171.56 crore in the current fiscal from Rs.1512.95 crore in 2012-13. Much of this is being squandered on populist programmes, ranging from extending dole for unemployed youths to compensating imams of the mosques (directly linked to vote bank appeasement).
Such spendthriftiness could have been condoned only if the state was not staring at bankruptcy – a distinct possibility given the debt figure of Rs.49366.65 crore and administration’s struggle to meet its wage liability of Rs.42,000 crore.
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