Was it a budget speech or an election speech?
Prime Minister Narendra Modi’s speech was a
bit of both. Addressing the nation at the end of
the 50-day period that witnessed turmoil in the
country’s financial system, Modi announced a
slew of sops for farmers, traders and the poor. It would have
been difficult for the government to lay down so many goodies
had the code of conduct been in effect. So, in a way, the Prime
Minister chose the right moment to make a pitch for the hearts
of voters in five states going to the polls in February-March. He
outwitted the Election Commission which could have spoilt his
moment had it to announce election dates before the speech.
The address, covered live my every news television network,
had the makings of a Budget speech. Modi did not exactly
steal Finance Minister Arun Jaitley’s thunder, but he made
the announcements that would have otherwise been barred
by the code of conduct. The Prime Minister hinted that the
sops would be paid for by the money
that had accumulated in banks
over the last 50 days. The disappointment
here, was that Modi did
not tell us how much money had finally
been deposited or exchanged
at banks. That would have given a
clear picture of the black money.
Perhaps, the government was disappointed
with the numbers. If the
government is to be believed a lot of black money came into
the formal banking channels through ingenious methods that
only Indians can think of.
The Prime Minister waxed eloquent about the fight against
corruption and the strategies to unearth black money and fake
notes. He acknowledged the pain experienced by the people
and the hardships many had to bear after the demonetization
of Rs 500 and Rs 1,000 notes. He also called for a united
fight and made a feeble attempt to pit the poor against the rich
when he said that only 24 lakh citizens have declared incomes
of more than Rs 10 lakh. What he did not mention is how long
it would take for all the currency to return to the market.
After the impact of demonetization began to hit home, the government
gradually shifted the narrative from black money to
going cashless. Modi went back to talking about black money
and made a fleeting reference to the cashless economy, which
he and his advisers must have realized is next to impossible
to realise in a place like India where cash is king. Most citizens
who were waiting for a big ticket announcement were left
disappointed. There was no shocker. The speech was a plain,
simple and calculated attempt to assuage voters in five states
ahead of polls. A bit of a damper, in a way.
