Manmohan has started doing what Bush did initially in 2001-2002 - Give-outs
Sanjiv Chauhan, Special Correspondent
July 27, 2004

When Bush came to oval office in US, he started give-outs to keep people happy. He not only gave tax cuts to rich, also subsidized or gave free money to Airlines to help them survive in Business. Manmohan Singh has started similar game. Net result of what Bush did in US is a surplus converted into ballooning deficit. 

Manmohan is in similar mode. Bihar has asked for Rs. 7,000 crore. Kashmir Rs. 3,800 crore. Demands of others are in the pipeline. Can India afford these give outs? 
Not really. But politics is strange and a game of manipulation. UPA Government did not inherit surplus like Bush from Clinton but suffers from the same syndrome of accommodating. For example, he has to promise something to Kashmir to bring Kashmiris in the Indian mainstream. For Bihar, Bengal … these are states who local political parties keep him in power.

Prime Minister Manmohan Singh on Tuesday assured all assistance to Bihar devastated by floods, which have claimed around 450 lives, but remained non-committal on the state’s demand for a Rs. 7000 crore-package to undertake the task of rebuilding the infrastructure and providing relief to victims. "I share the concerns of the Bihar government and the pain of victims. The Centre will extend all help to the state in rehabilitating those rendered homeless and revive agriculture destroyed by the flood," he told reporters after making an aerial survey of worst hit Darbhanga, Begusarai, Khagaria and Samastipur districts. The Prime Minister, who held talks with senior government functionaries, including Chief Minister Rabri Devi, however, remained non-committal on the issue of providing a special package to Bihar for relief and rehabilitation saying a Central team would visit the state on August 3 to assess the extent of damage due to floods. "It will not be proper for me to announce a package at this moment. The Centre will go by the recommendations made by the team," he said. Meanwhile, the state’s Water Resource Minister Jagdanand Singh who heads the Cabinet Committee on Economic Affairs said that Chief Minister Rabri Devi had submitted a memorandum to the Prime Minister seeking a financial package of Rs 7000 crore for rebuilding infrastructure and carrying out relief. Manmohan Singh said the Centre had provided Rs 115 crore to Bihar from the National Calamity Fund and National Calamity Contingency Fund for the relief of flood victims. He said another Rs 400 crore was available with the state for drainage schemes and for strengthening embankments. "I knew that the problem faced by the state due to floods was serious, but frankly speaking I never thought it was so serious. "In fact, I wanted to come earlier, but was told that my visit will distract the attention of the official machinery which would get busy making arrangements for my trip," he said. Stating that his government was working towards finding a lasting solution to the problem of recurrent floods in north Bihar districts caused by rivers originating from Nepal, he said the Nepalese government had given its approval for the Saptkosi project and Rs 29 crore had been earmarked for it in the current financial year. The funds would be used for making surveys and opening an office in the Himalayam kingdom. "A lasting solution to floods in Bihar can be found only by constructing high dams on rivers originating from Nepal and strengthening the drainage system in Bihar, which is definitely weak," he said, adding there was also the need for reviving agriculture after floodwaters receded. Replying to a question the Prime Minister said, "I know that the farmers are the worst sufferers, but any decision on waiving agricultural loans has to be taken by the reserve bank of India which is governed by its own rules. The RBI may consider suspending recovery of agricultural loans in flood and drought-hit states." Asserting that nobody would be allowed to die in flood-ravaged districts for want of food or medicine, the Prime Minister said the Centre was working in tandem with the state government in providing succour to victims. He also asked NGOs and the civil society to contribute their bit for the flood victims. Earlier, representatives of various political parties met the PM at Raj Bhavan and submitted memoranda seeking declaring of flood as a National calamity and launching of massive relief and rehabilitation efforts in 19 flood-hit districts. A BJP delegation led by its state president Gopal Narain Singh complained of inadequate relief and demanded constitution of an all party relief vigilance committee headed by the Governor to monitor distribution of relief. It sought compensation of Rs two lakh to the families of each of those who died in the floods, a government job to at least one member of such families and a financial package of Rs 5000 crore for the state. The JD(U) delegation headed by its state chief Brijendra Prasad Yadav demanded writing off old agricultural loans and land rent by the state government. The delegation of the coordination committee of the five Left parties including CPI, CPM, RSP, Forward Bloc and Socialist Unity Centre of India (SUCI) suggested construction of high dams in the upper reaches of the Nepal for a lasting solution to floods. The team comprising state secretaries of these parties sought free rations to families living below the poverty line till the next harvest, writing off farm loans to poor and marginal farmers and launching of food for work programme on a massive scale. A Lok Janshakti party delegation headed by its state president Narendra Singh suggested strengthening embankments on major rivers and compensation of Rs 10 lakh to the families of each of those who died in the floods. At least 450 lives have been lost in the current spell of floods, which have affected over 20 million people. The LJP memorandum demanded interest-free loans up to Rs five lakh to those rendered jobless due to flood and launching of food for work programme on a large scale in the 19 flood-hit districts. Former Bihar Chief Minister and chairman of the Human Rights Protection Foundation Jagannath Mishra also called on Manmohan Singh and submitted a memorandum seeking an assistance of Rs 2,000 crore under the Indira Awas Yojana for reconstruction of houses and a compensation of Rs two lakh to the families of each of the dead and enhanced relief.
Prime Minister Dr. Manmohan Singh today assured Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed that the centre would take care of the state’s financial and development needs and said that special assistance would be given to the state. Appreciating the fiscal reforms initiated by the state, the Prime Minister instructed the Deputy Chairman of the Planning Commission and senior finance ministry officials to release the additional assistance to the state at the earliest. Talking to media persons after over one hour long detailed meeting with the Prime Minister here this afternoon, Mufti said he was satisfied with the decisions taken at today’s meeting. The state government made a detailed presentation to the Prime Minister and estimated its financial requirements to be Rs. 4,412 crores for the current year. This includes Rs. 300 crore for Baglihar hydroelectric project that has now been converted into a state plan scheme. As a result, the total plan size for the state would now be around Rs. 3,100 crore, which is Rs 600 crore more than the last year’s plan. The total central assistance to fund Jammu and Kashmir’s plan is expected to be all time high of Rs. 3800 crore. In addition, Mufti also requested the Prime Minister to consider providing Rs 700 crore to finance the power deficit and the liability arising out of merging 50% DA with basic pay as was done by the Centre. While the state is keen to meet this demand of the employees the state financial resources needed to be supplemented through center’s special dispensation meet this substantial expenditure. The Prime Minister instructed the Deputy Chairman of the Planning Commission, present in the meeting, to work out details of funding these two requirements of the state in consultation with the Economic Advisor to Jammu and Kashmir government. Mufti was accompanied by Jammu and Kashmir Minister for Finance and Planning Mr. Muzaffar Hussain Beig, economic Advisor Dr. Haseeb Draboo , Financial Commissioner Finance Ajit Kumar , Financial Commissioner Planning and Resident Commissioner of the state govt. Parvez Deewan The presentation on economic and development scenario of J&K was followed by 20 -minute one-to-one meeting of Mufti with Prime Minister. Describing as ''very positive'' the response of the Prime Minister to Jammu and Kashmir’s fiscal problems, Mufti, however, made it clear that the state government did not ask for any separate or special package, but sought his intervention for giving special consideration to the fiscal and development needs so that the government is able to carry forward the tempo of development with greater speed. Replying to a question on Indus water treaty, the Chief Minister said that it is against the interests of the people of Jammu and Kashmir and we would take this issue with central government separately. He said the state government had already spent over Rs. 40 crore on Tulbul Navigational lock for internal transportation in the valley and the work had since been stopped on Pakistan''s objection under the Treaty. The Jammu and Kashmir team also took up the issue of faster execution of ambitious Railway project and Super Highway project. Other development activities undertaken by the state government also came up for detailed discussion in the meeting.