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10320 - GST: Modi's speech gives impression that PM was driving force behind bill's passage - First Post

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Sanjay Singh  Aug 8, 2016 21:23 IST

After Prime Minister Narendra Modi finished his forty-minute long intervention in Lok Sabha on GST Bill on Monday, he left a distinct impression that it was he who was the driving force in his government in conceptualising amendments, building a broad consensus and finally getting it passed from both houses of Parliament.

The passion and clarity with which he spoke on single biggest tax reform bill indicated that the generalist prime minister is no novice in economics, at least as far as the basics of the statecraft and policy making were concerned.

His contention was simple: if India had one Railways, one postal system, one kind of civil and criminal laws, one kind of his pet projects – Digital India, StartUp India, Stand-Up India, then why not One India One Goods and Services Tax system.


Prime Minister Narendra Modi speaking in Lok Sabha on GST Bill on Monday. PTI

In contrast to his predecessor – an economist, Manmohan Singh, who did not leave any lasting impression on the statecraft and policies of the UPA-led government in 19 years – Modi was keen to leave a lasting legacy as someone who eventually pushed for this biggest transformative tax reform since India's Independence.

In the past, at least on two occasions, he made his keenness to understand economics known and also contributed in drafting of the state policy.

First was the decision to continue with Aadhar and link it with a whole lot of taxation, subsidy and welfare schemes so that the amount intended to a designated person on the last mile reached him directly without an interference of intermediaries, official or unofficial.

He subsequently pushed to give a legal cover to Adhar. The bill had its own share of controversies; whether it should be categorised as Money Bill to make the role of Rajya Sabha, where the Congress in a majority, virtually irrelevant. For the record, the decision whether or not a bill can be categorised as Money Bill or not rests solely with the Lok Sabha.

Second was the presentation of Annual Budget of 2016. No prime minister ever, even if Jawaharlal Nehru and Indira Gandhi had briefly held finance minister's post and had the chance to present Budget put their personal credibility on stake.

But Modi chose to make it different for him. A day ahead of presentation of 2016-17 Budget by Finance Minister Arun Jaitley, he said in his Mann Ki Baat: "Friends, your exams are starting. I too have an exam tomorrow. The country's 125 crore people are going to take my examination," the Prime Minister said pointing out that Budget was going to be presented the next day.

But you must have seen how healthy I am feeling, how full of confidence I am. Let my exam take place tomorrow."Though he had talked of it in the context of Class X and XII board examination, but the message was loud and clear. He had personally put in a lot effort in the budget. The popular verdict next day, of experts, industry and common people was positive for him and his government.

His intervention on GST Bill in Lok Sabha was third such occasion when he let it known to the  people at large that he likes to go in details on macro-economic issues. Since the ruling NDA in Lok Sabha has a brute majority, the Lower House would, in any case, have adopted and passed the 122nd Constitutional Amendment Bill with required numbers.

Modi's intervention was curious. By doing that, he sent out two messages – that he takes parliamentary practices seriously and letting his own thought process on GST known, how he cherished its passage and implementation.

He chose to go out in details, which were somewhat different from the facts and merits of the bill presented by Finance Minister Arun Jaitley.

Modi's emphasis on how building a consensus has helped, "arithmetic in Rajya Sabha" and putting rashtraniti (national interest) above rajniti (politics) and the benefits it would reap for the state and to the concept of cooperative federalism.

"This decision is not based on majority numbers but it was a journey for building consensus". He termed it the victory of democracy.

In this context, he recalled his meeting with Sonia Gandhi and Manmohan Singh, one from Lok Sabha and one from Rajya Sabha. That way he also responded to a point raised by Congress leader Veerapa Moily who has earlier raised the issue that Lok Sabha was treated as "junior house".

Moily's statement otherwise had loaded connotations for government and also for his own party, the Congress.
He had a message for two social constituencies, poor and small traders. Both his assertions, that most items used by the poor were out of GST purview and it would be in benefit of local baniyas or traders to give a pukka bill (proper receipt) than a kuccha bill (rough estimate on plain paper) will be tested in due course.

But in last three days, Modi had made his mark – on Saturday and Sunday by expressing his outrage against self-styled gau rakshaks and on Monday on GST, which he called Great Steps towards Transformation and Transparency.


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