UPA-II, How has the govt been performing? A review

UPA’s second term in office has been rather turbulent ever since their re-election in May 2009. UPA-II has been criticized on the grounds that it lacks direction and a clear policy framework. Despite the fact that the Congress party won a clear majority in the elections last year, it is not assured of a trouble free tenure for the remaining four years since it is dependant on the likes of Mayawati and Mulayam Singh to keep it in power.

Unlike UPA-I, which was a government with a pro-poor stance -Mahatma Gandhi Rural Employment Guarantee Act as its flagship program, UPA-II is pursuing policies that essentially woo-the middle and upper middle classes. The government has initiated direct taxes cuts besides giving tax breaks to the rich, while leaving the poor to cope with 18% food inflation. Instead of giving heed to social & health sectors, the government has been keen on public-pvt partnerships in education, facilitating the entry of foreign universities, cuts in subsidies etc. UPA-II has to realize that high growth alone is not the solution to lessen social inequality. There needs to be a way to reduce inequalities without hampering growth.

Now what UPA-II needs is inclusive policy implementation and it needs to make efforts to regain the respect it had earned in its first tenure, or else the road ahead is shaky.

Here is an analysis of the Highs and Lows of the UPA-II Govt.

HIGHS

-Women Power: The Women’s Reservation Bill was passed which ensured 33% reservation for women in Lok Sabha and legislative assemblies

-Education: 4 bills introduced in parliament to speed up the educational reforms including the historic Right to Education Bill (RTE)

-NAC: Reconstituted the National Advisory Council

-Assembly Elections: Won 3 assembly elections-Maharashtra, Haryana and Arunachal Pradesh

-Growth: It’s now certain that 2009-10 will see at least 7.2% growth. The year after it is likely to touch 8.5%. Even if the figures for IIP have dipped a bit they remain comfortably in double digits.

-Reduction in Fiscal Deficit likely: With the 3G spectrum auction revenues more than 60,000 crore, the fiscal deficit reduction target not unattainable.

-In Control: Defeated the motions against budgetary proposals brought by a consolidated opposition including the left parties

LOWS

-Food Security: Failed to get the National Security Act passed

-Inflation: Failed to control the prices of essential commodities

-Sharm el-Sheikh Controversy: PM was accused of “surrendering” to Pakistan by reversing its stance of delinking terror with the composite dialogue process in the joint statement issued after the bilateral meeting in Sharm-el Sheikh, Egypt

-IPL/Shashi Tharoor: Shashi Tharoor, who had caused embarrassment to his party with remarks, was forced to quit the post of minister after being accused of misusing his office for the Kochi IPL team.

NCP leader & agriculture minister Sharad Pawar & civil aviation minister were also under scrutiny in the IPL controversy.

-3G/A Raja: A.Raja has been accused of corruption in the auction of 2G(2^nd Generation) and 3G spectrum

-Telangana: The announcement to create a separate Telangana state has landed the govt. in a political mess

-Shaky relationship with allies: Allies and friendly parties with the UPA have differed publicly several times on key issues this year

-Escalating Red Threat: The Naxal violence claimed 1,125 lives in 2009-10, the activities of Maoists extended to across 223 districts in 20 states

[With factual inputs from HT and Mint]