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Amit Shah takes on critics over unemployment, dismisses claims of surge in cash usage post-demonetisation

S Murlidharan
Shah, as party president, is relentless. He maintains a punishing schedule and puts the entire organisational structure of the world’s largest political party through an equally strenuous exercise.

Amit Shah, the Bharatiya Janata Party (BJP) President was at his combative best in an interview to Network18's Group Editor-in-Chief Rahul Joshi that was aired on Sunday (31 March, 2019), which also happens to be the stock-taking day in factories and stores for accountants and auditors.

He answered the charge that the Defence budget as a percentage of gross domestic product (GDP) was the lowest for 2019-20 by urging critics to look at the larger picture. The GDP is growing, but the Defence budget cannot grow in step with it. It is growing in absolute amount though and that is important, he said.

The Interim Budget 2019-20 has provided for a massive Rs 4.31 lakh crore for Defence which is the highest-ever, Shah said. The Narendra Modi government has embarked upon a 15-year Defence modernisation program, a byproduct of which is the Rafale fighter aircraft sorely missed by our Air force but would soon augment its prowess tremendously. What he said is pregnant with meaning. A modern armed forces relies more on sophisticated weapons and devices instead of exposing its men to the hazards of one-to-one combat indulged in by gladiators.

Prime Minister Narendra Modi said in another interview how his government implemented the One Rank One Pension (OROP) demand which was hanging fire for a long time and how the UPA government towards its fag end provided a token amount of Rs 500 crore, whereas the real amount required turned out to be a gargantuan Rs 35,000 crore.

Demonetisation, GST

The success of demonetisation and GST is there for everyone to see, he said, except for the bigoted and the jaundice-eyed. Around 70 percent increase in income-tax payers and 50 percent increase in indirect taxes (read GST) payers are the twin harbingers of things to come€"the economy is at last showing up substantially above board from the days of surreptitious subterranean functioning. This is no mean achievement.

Shah's assertion is buttressed by the assertion of Sanjeev Sanyal, a member of the Narendra Modi government's economic think tank, to NDTV a few days ago€"earlier, crooks used to indulge in tax evasion and brag about it; now they might still be indulging in a bit of tax evasion but they don't brag about it! This summarises the achievement of the Modi government in the anti-black money front and the attitudinal change of the nation for better. Shah pooh-poohed the claim that there was a 19 percent surge in cash in circulation post-demonetisation saying it should be read in the context of the growth in GDP.

No reliable data on unemployment

On the issue of unemployment that is alleged to be at an alarming 42 percent, an all-time high according to CMIE, the BJP President once again put the issue in perspective. With as much as 80 percent of the workforce still being employed in the informal sectors like construction, there is no reliable data on employment. Indeed, a lot has been done on the construction front with six crore toilets being built in the last five years and 6.8 lakh houses for the economically weaker section of the society. In addition, roads have been laid at a furious pace. Therefore, the CMIE figure at best represents the state of affairs in the formal economy.

With formalisation of the economy, the data non-availability factor bedeviling the correct assessment of unemployment situation would be a thing of past. Shah also urged economists and critics not to look askance at self-employment. A lot of beneficiaries of Mudra Yojana, 15 crore to be precise, are standing on their own legs. He cited the example of a beauty parlor set up by a woman with the help of Mudra microfinance assistance. Likewise, a lot of plumbers and carpenters are being churned out every year thanks to the Prime Minister's Skill India initiative. Surely, our worldview on employment needs to change.

(The author is a senior columnist and tweets @smurlidharan)

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