Saturday, April 21, 2012

Mamata and the failed state of West bengal

I have been reading how Mamata Banerjee is pressurizing the Indian central government on West Bengal's fiscal status.  The state is in huge debt because it runs programs that are a drain on the taxpayer.  These policies are put in place by politicians who promise what they cannot deliver.  I cannot for the love of life figure out how such nonsense is being tolerated.  Clearly, the state has messed up and has no one else to blame but its own politicians, their failed policies and the stupidity of its own electorate that does not realize how much they have damaged themselves.  States such as West Bengal are a drain on the country's resources and just make it difficult for India to bootstrap itself out of poverty.  I have seen how the weak central government penalizes states with good economic policies and growth trajectories (e.g., Andhra Pradesh, Karanataka and Gujarat) while subsidizing the failed states (e.g., Bihar, WB and MP).

If the Centre continues to bow to such pressures India will continue on a path where states will start mistrusting each other and the Centre.  We need a stronger stance from the Centre on this issue and Mamata must be forced to adopt strict subsidy curtailing policies before she gets any of the other states to bail her out.

2 comments:

Anonymous said...

Andhra Pradesh has a good economic policy? Is that why farmers in andhra commit suicide by the thousands every year? Only 20% of the state is somewhat successful while the rest wallows in extreme poverty.

Girish Mallapragada said...

My reference was to the growing fiscal burden of the state. Yes, AP did have suicides but I would actually argue that was not due to irresponsible spending by the state government on failed policies. There is definitely disparity across the state of AP in terms of growth, but my point was more about how AP did relative to other states.