By Avner Pariat
Determining what governments should spend more money on depends on various factors including the needs of the population, current challenges, and long-term goals. On the population front, we – in Meghalaya – are of a fairly manageable size, with most being under the age of 35. So, no worries there. Overcoming the various challenges in our way is again manageable, I should hope, and I have spoken about many which lie in the way in earlier articles. I honestly don’t think though that the MDA has any idea other than sloganeering when it comes to the last aspect regarding long-term goals.
Talking about a 10-billion-dollar economy is fine and all, but how will it benefit me? How will it benefit you and your loved ones, dear readers? Fudging some figures on paper and saying that Externally Aided Projects (EAP) are an organic part of State GDP is quite dishonest. What would be the real size of this economy if we removed that EAP component? Look at the tangible incomes that people have in hand. Not only has that stagnated over the past 10 years, but inflation has crippled our ability to spend, or even save!
Wish No 1: From the Budget presented for the period 2023-24, two big infrastructure projects have been highlighted namely Meghalaya Eco-Tourism Infrastructure Development Project (MEIDP), and the Integrated Transport Development Programme (ITDP) which are both to the tune of Rs 100 crore and Rs 520 crore respectively. Now through some cursory reading of a few Construction Industry data sources online, I think it is safe to say that labour costs come between 30-40% of the entire project cost. So let us be a bit generous to the people, once in a while 🙂 and say 40% goes to labour. That would come to Rs 248 crore in total. Just these two projects alone (if they are safeguarded against the NPP vultures) can improve so many lives. Similarly, the countless other infrastructure projects could in effect benefit so many lives and help lift up people from poverty because this is a huge component of our economy going into thousands of crores. Maybe the idea might not have a space in the Budget 2024-25 document per say but it should have a space in terms of policy and guidelines. So, my No.1 on the Budget wish-list is that for the Infrastructure and Construction Sector, whatever allocations are made this year, labour is accorded pre-eminence.
Wish No 2 : Now reading something called the SDG Budget for the same time period 2024-25, one finds “Goal 10: Reduced Inequalities” with the explicit focus of promoting “socio-economic and political inclusion of all”. That sounds wonderful! But the fact of the matter is that allocation for such a wonderful thing is a measly 7 crores for the entire state. Wishlist item No.2 for me would be to please expand the activities/tasks/ projects that will line up with Goal 10: Reduced Inequalities. Also, to not be too stingy with such important allocations.
Wish No 3: Investing in Education is very important for any government which is serious at tackling poverty. I don’t think that we should be offering pointless contracts to Private firms which want to do the job of the government in my opinion. Innovation is what they sell but we don’t need that right now. We need to spend money on basic things to build up human capital. Invest in government institutions first and then we can look at the things offered by the Private sector. Budgeting for critical thinking components in the syllabus, budgeting for creativity components and the training of trainers in these components should be taken seriously. I saw a recent notification by the Education department regarding the establishment of libraries and book banks. I applaud this wholeheartedly and urge more allocations for these types of activities. Come to think of it, Shillong does not even have a public college. What a shame for the state capital! I would like to see this allocation made immediately. Our EWS deserve a college education and it should be free or cheap.
Wish No 4: The other allocation must go into supporting research. Meghalaya is woefully deficient in data and many people complain about this as a hurdle to Planning. But how can we expect otherwise when research departments like Economics and Statistics are badly funded. An obvious lack of manpower, especially skilled manpower can be addressed by the scores of young people who pass out each year and who have been trained in research methods. There is too much extrapolation for most of the project proposals and DPRs here. More allocation for Research, across the disciplines would be a crucial intervention.
Wish No 5: We are spending as much as other states on healthcare. But as a Shillong Times report from Jan 2, 2024 showed, most of the claims under the state health insurance scheme – MHIS – are happening to the benefit of Private hospitals. It is clear people are apprehensive of availing the health services under government management. Increasing this important allocation (in the short run) from approx. Rs 1800 crore in 2023-24 can help address this issue and others. If the health minister is serious about the health of the state, she must not only engage in setting up centres to cure cancer but also its prevention. She would have to make cigarettes and booze less accessible. How that affects the donations of her political party (from liquor barons in particular) is not our concern. Loss of revenue from excise would be balanced by less expenditure for the health department. It is all about priorities. A WHO report from Feb 2021 confirms this showing that for every Rs 100 received as excise taxes from tobacco products, the overall economy loses Rs 816.
Wish No 6: For most of Meghalaya’s young population, the dream of owning a house in this current economic scenario with low salaries, high costs of land, and crippling inflation seems unattainable. Housing as a human right must be budgeted for. In 2023-24, housing schemes accounted for a mere 72 crore approx. These include only the provision of building materials and some money for labour charges. In addition, most of the beneficiaries are rural people who have the chance to own land or be given a land deed on some community property. What about we, the urban youth? Building community apartments and urban housing must surely be the need of the hour. Countless studies show that the provision of housing eradicates poverty. I would urge that a massive allocation be made immediately if we want to tackle poverty and the numerous ills it brings.
Wish No 7: The state has been underperforming in terms of investing in the Power sector which accounted for Rs 700 crore approximately in 2023-24. This is in spite of the fact that this sector is one of the only sustainable sources of revenue for Meghalaya. The old adage is “you have to spend money, to make money” so the state should invest more judiciously in this sector if it wants to bring down the deficit.
Wish No 8: Finally, I would like to urge the government to invest more in the Arts and Culture department because Tourism right now is taking this mantle upon itself. This is ok from the outside but the problem with this MO is that investing in cultural and artistic activities directed exclusively towards tourists does not take into account the intrinsic value that such activities have for the people themselves. The development of an autonomous arts fund would perhaps spur on a nascent Creative industry which might be more valuable than Tourism itself for the local artists, arts practitioners. Perhaps this would lead to different types of jobs emerging. No.9 wish: We need to tackle the serious issue of waste. There does not seem to be much along this sector in terms of government investment. The few overheads and items described in the budget are very small amounts but we have to take this problem as a crisis. We have to drastically raise spending on this because no private player can do it.
In conclusion, I am happy to open the floor to more articles and discussions about economic life and the economy instead of the numerous pointless arguments we indulge in on a daily basis.