Why Kejriwal's economic prescription won't work

For Delhi Chief Minister Arvind Kejriwal, everything is politics. Even when he apparently discusses the economy, the purport is political. As his latest prescription for reviving the economy: that we should put the anaemic on the new currency notes.

Apparently expressing concern for the state of the Indian economy, Kejriwal said at a press briefing, "We need a lot of efforts to get our economy back on track, but along with that we also need blessings of our gods and goddesses." He went on to say, "On Indian currency notes... On one side there is the picture of Gandhiji... It should remain as it is... If we put a photo of Ganeshaji and Lakshmiji on the other side, the entire country will get their blessings."

But gods and goddesses help those who help themselves. So, let's see the "lot of efforts" that his Aam Aadmi Party is making in Punjab, the only full state where his party is in office. The overall debt is estimated to be 45.23 per cent of the gross state domestic product (GSDP) in 2022-23.

The State Budget 2022-23 estimates a higher fiscal deficit of 3.78 per cent of the GSDP, against 3.54 per cent last year. Punjab is expected to remain in the worst position as its debt-GSDP ratio is projected to exceed 45 per cent in 2026-27, with further deterioration in its fiscal position, the Reserve Bank of India said in a report in June.

And what efforts are being made by the AAP government in Punjab? Four out of five of domestic consumers have been given free power, a move that has badly hurt Punjab State Power Corporation Limited (PSPCL). The State's subsidy bill has zoomed to Rs 24,865 crore, including arrears worth Rs 9,020 crore. A basic fact of economy is that nothing comes free; someone somehow pays for it. A government can exempt consumers from paying their electricity bills, but it can't make the costs of providing electricity to people vanish. The companies producing, transmitting, and supplying power continue to incur costs; and if the consumers don't pay, the government pays.

When a government keeps providing freebies, it keeps paying for them, resulting in anaemic public finance, as evident from Punjab's deficit figures. The results are not dry statistical details but real: last month, the Bhagwant Mann government in Punjab failed to pay salaries to its employees on time. The situation may worsen in the forthcoming months.

Evidently, politicians like Kejriwal are not making a lot of efforts. While ostensibly seeking the blessings of gods and goddesses, he is actually trying to present himself as a Hindu leader. A cunning politician, he is aware of the growing appeal of Hindutva. He has already told the country that he is a Hanuman bhakt; now he seems to be trying to present himself as a bigger Hindu leader. He cleverly mentioned Indonesia, the saffron brigade's favorite Muslim country. "Indonesia is a Muslim country. There are 85 per cent Muslims and only 2 per cent Hindus, but there is a picture of Shri Ganeshji on the currency," Kejriwal said.

This hurt the Bharatiya Janata Party, which believes that it owns a patent right over Hindutva. But its problem is it could not reject Kejriwal's ludicrous suggestion outright, so it had to take the circuitous route of portraying the AAP chief as anti-Hindu. BJP spokesperson Sambit Patra said, "Kejriwal, who threatened to put people in jail for celebrating Diwali, who insulted Ram Mandir, Swastika and Kashmiri Hindus, is trying to become a devotee today."

Another BJP national spokesperson RP Singh said, "People can very understand who is the original BJP and who is the poor carbon copy when it comes to Hindutva. If Kejriwal has so much feelings for Hindutva, then pujaris (priests) in Delhi should also be given allowance like the imams (clerics) do. They won't win despite all this too because people trust the BJP. They indulge in all this before elections, thinking it will garner them some support and votes, but people are not fools."

He went on to add that people would not fall for a "poor carbon copy."

It looks like Kejriwal's suggestion of gods and goddesses on currency notes - however ludicrous it sounds - may have got the BJP worried, for the party doesn't want anyone in its saffron territory. To that extent, the Delhi Chief Minister has succeeded in making a political point. As for bringing the economy back on track, it seems to be low on the priority list of politicians.