States and finances
The article by the former Governor of the Reserve Bank of India (RBI), “States, freebies and the costs of fiscal profligacy” (Editorial page, June 28), is apt; there has been a critical analysis of what is going wrong. The central government should put a full stop to the practice of some State governments showing some borrowings as off-budget borrowings, which it appears is equal the debt admitted in the budget books of State governments.
Another interesting point is about the powers the President of India has to declare financial emergency in a State. This should be done in a few States. We all know from the experience of Sri Lanka, Pakistan and Laos that if fiscal discipline is not adhered to, the consequences will be disastrous.
Our public debt (Centre and states combined) (including off-budget borrowings) as a percentage of GDP, is dangerously high.
The amounts States borrow collectively every year is comparable in size to the Centre’s borrowing. Punjab is already in a debt trap. States seem to be borrowing recklessly.
N. Kalyanaraman,
Chennai
Rumblings in AIADMK
Everyone who is in the know of Tamil Nadu politics, is aware that with the passing of M.G. Ramachandran (MGR), a leader with abundant charisma, fissures began to emerge in the All India Anna Dravida Munnetra Kazhagam. J. Jayalalithaa, who stepped into the shoes of MGR, was able to prove her mettle as Chief Minister, but this was also a phase that saw the emergence of Sasikala.
The tussle now between OPS and EPS should be sorted out if the party is to remain relevant in State politics.
Mani Natarajan,
Chennai
Despite a court intervention, it is unlikely that the marginalisation of O. Panneerselvam will end any time soon. Bitterness between the faction led by him and the one led by his rival, Edappadi K. Palaniswami (EPS), has grown to a point where there could be no room for rapprochement. The EPS faction is dominant in the party and is unlikely to cede any space to OPS. Being an astute politician, EPS is bound to leave no stone unturned to politically annihilate his opponents.
Samiul Hassan Quadri,
Bikaner, Rajasthan
Maharashtra turmoil
The political situation in Maharashtra — of an unstable government headed by the Shiv Sena — proves how a coalition of ideologically opposed partners is always fragile. The rebels’ main complaint is their dissatisfaction with the Nationalist Congress Party (NCP) and the Congress. Mr. Uddhav Thackeray some how managed to overcome the hard feelings many of his partymen had in choosing the Congress and the NCP as partners. Now the built-up pressure seems to be exploding in the form of rebels and their actions.
The Maharashtra crisis is a lesson for all political leaders not to over-rule the sentiments of their party men for the sake of acquiring power.
V.S. Ganeshan,
Bengaluru
