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BJP TODAY

January 1--15, 2006 - Vol. 15, No. 1


Important decisions in BJP CMs' Conference

BJP-ruled States to go in for VAT
From Our Special Correspondent

After due deliberations, the Conference passed the following resolutions:

Poverty alleviation

The Conference expressed concern over the reduction in outlays on the various poverty alleviation programmes since the UPA Government assumed power. At the same time, a critical review was made of the action being taken within the BJP States for effective implementation of not only the centrally sponsored schemes but also of the various other schemes started by the States from their own resources. The Chief Ministers will within a fortnight send a detailed report of all schemes to the Central Office. They will also have them analyzed so that unduly fragmented schemes may be consolidated.

Create mechanism for redressal of peoples’ grievances : Atalji

During his margdarshan to the Chief Ministers, former Prime Minister, Shri Atal Bihari Vajpayee wanted to know whether they had created any effective mechanism to hear and receive people’s complaints/grievances. He reminded them of the commitments BJP had made to the people. He laid stress on the accountability of their administrations. He asked them to create a strong and effective mechanism at various levels within the State to receive/hear people’s complaints and grievances. He said, it is their duty to ensure quick redressal of grievances. He also advised them to ensure that the complainants are informed of the action taken in the matter.

Supreme Court judgment on ban on Cow slaughter

The Conference took note of the 7-judge Constitutional bench judgment of the Supreme Court delivered in October 2005 about the Gujarat law. In the land-mark judgment the court has upheld the blanket ban on slaughter of cows and bulls and bullocks, irrespective of their age. It was decided at the conference that the BJP-ruled States will review their existing legislation on the subject and reinforce it to the extent now permitted by the Supreme Court.

Naxalism

The Conference expressed concern at the rapidly growing challenge of Naxalism. This growth is largely the result of the soft attitude of the UPA Government. Now Naxalite activity extends to over one-fourth of India’s territory and is unified under one party, with a coordinating arrangement with Maiosts in Nepal. The Conference considered a number of steps that should be taken at the State and the local level and these have been separately circulated to the States. It was emphasised, however, that given the gigantic size of the problem it can only be solved by concerted action of the Central and the State governments. Keeping in view weak will so far shown by the Center, it was decided that the BJP Chief Ministers will seek a meeting with the Prime Minister, draw his attention to the seriousness of the problem and seek his support.

Illegal Migrants

The Conference expressed dissatisfaction at the weak response of the Central Government to the quashing of the IMDT Act by the Supreme Court. It was decided that in the BJP-ruled States action will be taken in accordance with the Foreigners Act to identify and deport illegal migrants.

VAT

The Conference undertook an exhaustive review of the issue of VAT. It was recalled that this progressive tax system had been promoted by the NDA Government. The Empowered Committee of State finance ministers was set up by the NDA Government. Unfortunately, when the system was sought to be introduced in April 2005, it was then found that it had several loop-holes and deficiencies. The tax information system, so vital for holistic operation of VAT in the country, had not been established. Road map for the abolition of CST, which is incongruous with VAT, had not been prepared. The procedures for grant of refunds and offsets to the traders had not been firmed up. Several concerns of smaller traders had not been attended to. Also, a number of major States had not been persuaded to implement VAT. In such circumstances, the BJP Chief Ministers when they met early in 2005 felt compelled to postpone the adoption of VAT in their States.

At the Conference a review was undertaken of the experience of eight months in the States and union territories which have implemented VAT. Still, there are several deficiencies and concerns which subsist. Those are mentioned below:

(A) Some major States, particularly the large State of Uttar Pradesh, remain outside the system.
(B) The road map for abolishing CST still remains unclear. Even assuming that the Empowered Committee will recommend its reduction to 2 percent from April 1, 2006, issues would still remain concerning compensation to the States which will lose on account of abolition of CST.
(C) The flexibility given to States exempting items of local importance is still limited to 12 items. That flexibility is inadequate.
(D) The Empowered Committee needs to formulate proposals for enhancement of avenues of State finance by measures such as devolution of service tax to the State.
(E) As a measure of equity it is essential that compensation for loss of revenue needs to be provided to the extent of 100 percent in the first year of adoption of VAT.

The Conference decided that all these matters will be taken up with the Empowered Committee on 16 December 2005. The Finance Ministers of BJP State governments will meet prior to that meeting and formulate their combined position.

The conference decided in principle that BJP-ruled states will adopt VAT. While doing so, due care will be taken to fully establish the tax information network and to educate not only the officials but also the trading community and the public. The flexibility permitted in the system will be used to address the concerns of the trading community and local features.

The problems of States with primary resources, such as Chhattisgarh and Jharkhand, which will suffer revenue loss on account of reduction/abolition of CST were highlighted. The Central Government was requested to provide them adequate fiscal compensation. In that connection the proposals made in the 10th Plan mid-term appraisal document for higher royalty in coal and other minerals and for having devoted large areas to forests are important.

Earlier, BJP CMs presented a resume of what they had so far done in their respective States:

Gujarat

Chief Minister of Gujarat Shri Narendra Modi said that the booklet "Vanchiton ka Vikas" reinforces their belief that development of the downtrodden is the key to development of Gujarat. Real progress lay in solving people's problems and not just enticing voters.

A group of eight ministers had been formed to prevent delays in taking decisions. He mentioned various programmes, like Gokul Gram, Samras Gaon, Teerath Gram, Jyotinagar Gram, Gram Sabhayein, Shram Yogi Yojana, Chiranjeevi Yojana and others like Widow Pension Scheme and a programme to impart religious training to Dalit children were very popular. The Gujarat Government has sent 45 children to study abroad. Government has launched a new programme Tithi Bhojan Yojana under which a well-off person out of his own volition voluntarily provides good food to students in a school in every village.

Two programmes -Fariyad and Swagat -- have become very popular. In Fariyad, anyone from any part of the State can directly speak to the Chief Minister on phone and narrate his grievance. This is recorded and sent to the concerned department. Action taken on the grievance is conveyed to the complainant in the Chief Minister's voice.

Swagat is another popular programme in which every Thursday, any person may be the common man or a deputy commissioner can chat online with the Chief Minister if any legitimate work is being held up. The problem is solved immediately.

Farmers are given loans at lower rates of interest for Krishi Mahotsav and other programmes. For providing social security, programmes like Aangan Badi were being run and arrangements made for insurance of farm labour. Special attention was being paid to nutrition value of food products. Manufacturers have been asked to provide essential vitamins in peanut oil and flour.

Chief Minister of Madhya Pradesh Shri Shivraj Singh Chauhan said that under the Gokul Gram Yojana a framework for planned development had been initiated in selected areas. The Government has launched a plan for providing an aid of Rs.20,000 each for medical treatment in the Pandit Deendayal Upadhyay Centres to people below the poverty line. The mortality rate of children due to malnutrition has come down under child welfare schemes.

In the last two years, power generation in the State has gone up to 1,371 MW and it is proposed to be increased to 2,100 MW. 13,000 kilometres of roads have been constructed and a Disaster Management Plan is in place. Government is committed to make BJP's election promise of sadak, bijli, pani a reality.

Chhattisgarh

Giving the details of the development works carried out in Chhattisgarh, Chief Minister Dr. Raman Singh said two separate authorities had been set up to develop the districts of Sarguja and Bastar. A Rs. 670 crores scheme for poverty alleviation had been launched. The farmers in the State had been given big relief as the Government procured 3150 tonnes of paddy from them to save them from distress sale. Special attention was being paid to strengthening PDS (Public Distribution Scheme). Women have been encouraged to run PDS shops through self-help groups. Poor people greatly benefited from the Dal-Bhat Scheme under which they get food for only Rs. 5 per meal.

Rajasthan

In her report, Rajasthan Chief Minister Smt. Vasundhara Raje Scindia stated that her Government too had launched, with great success, almost all the schemes which had been in operation in Chhattisgarh. Nearly 60,000 persons had been provided employment by her Government as teachers. It is planned to appoint 4000 constables in the State police force, out of which 1500 would be reserved for women. The Mid-day Meal Scheme and other welfare Schemes were also performing well in the State.

Jharkhand

Shri Arjun Munda, Jharkhand CM said that his Government was busy filling in the backlog of vacancies in the State. Nearly 10,000 teachers were appointed and thousands of others given vocations under self employment Scheme. 80,000 houses under the Indira Awas Yojana Scheme were being constructed and schemes like, Annapurna Antyodaya were implemented with full vigour in the State.

Bihar

Deputy Chief Minister of Bihar Shri Sushil Kumar Modi said that the new Bihar government has taken in hand a number of plans and programmes for the development of the State. The financial crisis in Bihar is so acute that the Government had to take loans of Rs.12,000 crores every month just to pay employees' salaries and pension. Out of the Rs.5,400 crores package given to Bihar, very little had been spent.