Minimum Government; Maximum Governance

The 7^th Pay commission recommendations that shall determine the salary structure of the 55 lakh central govt. employees are likely to be released shortly; if the 6^th pay commission recommendations imposed a “burden” of Rs. 90,000 crores on the country, expect a slightly larger outgo this time too. Also expect a “trickle-down effect” of state govt. employees raising similar demands. History is witness to the fact that such pay-out is generally followed by a spurt in consumption, especially of consumer durables & it should be no different this time. This much needed “stimulus” to the Indian economy, shall propel growth rate higher, which has the potential to attract further foreign investment accelerating the upturn in the economic cycle.

Pay-outs without administrative reforms - to shrink the bureaucracy to realistic levels – is however a “burden”. There is evidence that Category C&D jobs – accounting for about 90% of govt. employees - are paid higher than the private sector; Category B employees are paid on par while Category A employees are paid much less than the private sector. Since better governance can be provided by attracting the best talent in Category A – that still accounts for only 5% of govt. employees - & as the Singapore Model has shown, providing pay parity with the private sector is the first step. This should be combined with a simultaneous reduction in C & D category employees to make the bureaucracy nimbler, perhaps through ”outsourcing”; paradoxically,  while  India is  a world leader in “outsourcing” the govt. hasn’t utilized its full potential yet.

In an era where stenos / typists have become extinct in the private sector due to computerization & the expectation that personnel handle their own correspondence, is it not time to replicate the same in the govt. sector too? Likewise, when the “Uber / Ola” economy has taken off & offers Rs. 10/- per KM pricing, is it not imprudent on the govt.’s part to maintain a huge fleet of govt. vehicles?; the cost of the attendant drivers apart from the fuel leakages & repairs must be making the payout much higher than Rs. 10 per KM. Therefore, attempts at creating “Minimum government” should start with these two verticals.

Pruning the govt. sector in certain sectors should be combined with capacity building in other sectors. As an example, while India fancies itself at the High Table of the Security Council, it has only about 900 IFS officers – the size of New Zealand’s & Singapore’s - while permanent members China, UK & France have about 6000 diplomats each; the US leads though with about 20000. An aspiring permanent member – India - should achieve the figs maintained by other aspiring entities - Japan & Germany - 6000. A lean cadre means sparse representation across geographies as also lack of sectorial experts. As an example, of the 54 countries in Africa, India has representation through its ambassadors in only 29 countries. Focus, clearly, on Africa cannot end with the African summit alone; it has to be followed by strengthening our diplomatic corps in the region & beyond. 

Similarly, the threat from the Northern borders is real with the Chinese indulging in “creeping acquisition” of territory. The most prudent strategy would have been to make peace with Pakistan & shift a vast portion of our 5 Lakh army, in J&K, to the Northern borders. This is, however, unlikely under the current conditions & hence creation of deterrence across two fronts is essential.  Strengthening of the army by raising additional battalions is therefore a logical corollary; however the current defence budget does not allow this luxury. The increased presence of the Chinese in the Indian Ocean & attempts under the guise of a “maritime silk route” to encircle India calls for the creation of a more robust Blue water Navy to maintain control from Aden in the West to the Malacca Straits in the East.  Strengthening the Air-force & cyber-force is urgent since conflicts of the future would be decided either in the air or cyberspace or both. The shortage of personnel in the IB – about 19000 strong & 7000 short - & R &AW - about 9000 strong & 3000 short especially in the area, language & technology domains - also needs to be addressed to achieve our strategic aspirations through covert means if necessary. The reduction of “risk allowance” & other benefits – a consequence of the 5^th & 6^th Pay commission recommendations - which equated intelligence agency personnel with police & clerical staff in other govt. departments, needs to be overturned.  A complete overhaul of the Indian security apparatus is thus, mandatory.

In a federal polity the Centre has the responsibility for "External Affairs" & "Security" which it can efficiently executive through a creative solution by reducing employees in the C & D category & building capacity in other much needed sectors. “Maximum Governance; Minimum Govt.” would remain merely a pipe-dream if not followed up through strategic execution. Perhaps, it is the execution that is missing today.