100 days as CM: Siddaramaiah has hits and misses

Siddaramaiah
Mahesh Kulkarni Bangalore
Last Updated : Aug 21 2013 | 3:08 AM IST
When the voting begins for bypolls to the Lok Sabha seats of Mandya and Bangalore Rural on Wednesday, Siddaramaiah will complete 100 days as the chief minister of the Congress party government in Karnataka, and the results thereafter might well be a good indication on how he has fared.

During the first 100 days, his government is credited with fulfilling some ambitious programmes of the party, announced in the pre-poll manifesto. The most important of that is the implementation of the Rs 1 per kg rice scheme (Annabhagya Scheme), wherein every Below Poverty Line family having more than two members would get 30 kg rice per month. Another achievement was the implementation of a loan waiver for backward classes. The two schemes cost the state exchequer over Rs 5,500 crore.

One of the most important achievements for Siddaramaiah was that he presented a full-fledged budget for 2013-14. This was his record eighth budget as finance minister of the state. Though he has not announced any major programme, he has not reduced value-added tax (VAT) rates.

S Venkataramani, co-chairman, indirect and state taxes expert committee, Bangalore Chamber of Industry and Commerce (BCIC), said: "The state government should have considered reducing the service tax slab rates, which still remains a huge burden on both the consumers and the industry."

Though 100 days are a very short period to assess a government's performance, Siddaramaiah has had a fair share of both success and controversies. However, the highlight of his short stint is that there has been no fresh scam in the government.

NOT QUITE A CENTURY?
Major hits
  • Implementation of Rs 1 per kg rice scheme
  • Loan waiver for backward classes
  • Doubling of farm loan limit to Rs 2 lakh at 0% interest
  • Constitution of Agricultural Prices Commission
  • Rs 10,000-crore expenditure plan on irrigation
  • Construction of 300,000 houses for the poor
  • Improvement of infrastructure for Bangalore (at a cost of Rs 5,000 crore)
Major misses
  • Transfer of Director of mines and geology department against the order of the Supreme Court
  • No visible action on implementing Lokayukta report on illegal mining
  • No measures announced to improve tax collection, mobilise resources
  • Tax rates unchanged
  • Increased property guidance values in Bangalore, which has resulted in rise in rental and property rates
  • No proper measure to manage garbage pile up in Bangalore city
  • No proper action plan to acquire land for industries. Many large investment projects are pending for approval, allotment of land

As promised before the polls, the chief minister has managed to give a clean, fair and transparent government till now.

Siddaramaiah started his innings cautiously by forming a ministry with a fairly clean image. He has managed to keep out several tainted legislators like D K Shivakumar, Roshan Baig but had to induct others like Santhosh Lad, who has considerable stake in mining firm V S Lad & Sons, which is categorised in Category C by the Supreme Court appointed Central Empowered Committee. The leases of all Category C mines were cancelled.

As of now, it appears both Congress president Sonia Gandhi and vice-president Rahul Gandhi are backing Siddaramaiah in his efforts to keep those tainted out of power. The chief minister has shown he is keen to provide a clean government and put the administrative machinery, which he says was down in the dumps during the five years of the Bharatiya Janata Party (BJP) rule, back on track.

However, he had a share of controversies during the period, which upset a section of the society and his own party.

One controversial announcement came within a week of taking charge, when he expressed his desire to introduce cheap liquor as production and sale of arrack had been prohibited in the state. However, later, he corrected himself, stating it was his personal opinion and there was no move by the government to introduce cheap liquor.

Siddaramaiah, who had raised a voice against illegal mining when he was the leader of Opposition two years ago, has, however, not shown any urgency to implement the recommendations of Santosh Hegde on illegal mining. He was among the few to demand a Central Bureau of Investigation (CBI) probe into the case. In the last couple of months, he has often repeated that his government was looking into the recommendations.

Another surprising move taken by him was to transfer director of mines and geology H R Srinivas, even as the central empowered committee (of the Supreme Court had recommended for keeping him in the post for two years.

The trade and industry sections were hopeful of Siddaramaiah's performance. However, he has not done anything major to attract investment into the state. Instead, several key projects are on hold in the state. A major setback to the state came when South Korean steel major Posco announced the withdrawal of its Rs 32,300 crore steel project from the state for delay in land acquisition.

"It's unfair to expect any magic wand to be waved in 100 days. He has not brought any perceptible difference, though he has made several announcements. I would like to give him another 100 days to bring any visible change," Kiran Mazumdar-Shaw, chairman, Biocon Ltd, said.

Another important decision taken by him was to give the state government's approval for foreign direct investment (FDI) in retail. He has also committed himself to introducing a goods and services tax (GST) in the state.

H V Harish, president, BCIC, said: "We are pleased to have a stable government with an absolute majority after a few years in Karnataka. In the past 100 days, we have seen some significant initiatives by the government, particularly through the Budget, which was presented for the State viz., support for GST and FDI in retail to name a few."

The government has also got the central government approval for setting up an Information Technology Investment Region, which will see an investment of Rs 2 lakh crore and creation of four million jobs in the next 20 years.

"In recent years, Karnataka's economic growth has slipped due to lack of vision of the government. The state is in urgent need of infrastructure development and the government should give priority to completion of several pending projects," said R Shivakumar, president, Federation of Karnataka Chambers of Commerce and Industry.

There are several challenges before Siddaramaiah like improving infrastructure in Bangalore. The city is reeling under severe shortage of water and bad roads. The Bangalore Metro project is limping. Though the chief minister has announced projects worth over Rs 6,000 crore in his budget for Bangalore, no major decision has been taken till now.

"It's not right on the part of the people of the state to expect magic in 100 days as the time is too short. We have to wait and see how Siddaramaiah performs in the first one year," a Congress party insider said.

Siddaramaiah has shown good intent in bringing the government of Karnataka back on the development track. It is still early days for him as the chief minister. However, he has shown keen interest in the development of the state as a whole. He has announced several positive initiatives, including addition of 4,000 Mw power in the next three years.

"The industry needs more support from the government by way of speeding up the process of approving the investment projects which are on the back burner and a relook at expediting the land acquisition procedure. Tsre is much anticipation for the new industrial policy of the Karnataka government, which will be announced next year and once it's out, we will be able to give a clearer assessment of his government's impact on the industry," the Confederation of Indian Industry (CII) said.

Siddaramaiah's performance will soon be put to test. First and foremost, he has to win the bypoll to Lok Sabha seats of Mandya and Bangalore Rural. Next are the polls to legislative council. Then, in May 2014, general elections will be held to the Lok Sabha. Time is running out, just like the patience of the common man.

NOT QUITE A CENTURY?
Major hits
|Implementation of Rs 1 per kg rice scheme
|Loan waiver for backward classes
|Doubling of farm loan limit to Rs 2 lakh at 0% interest
|Constitution of Agricultural Prices Commission
|Rs 10,000-crore expenditure plan on irrigation
|Construction of 300,000 houses for the poor
|Improvement of infrastructure for Bangalore (at a cost of Rs 5,000 crore)
Major misses
|Transfer of Director of mines and geology department against the order of the Supreme Court
|No visible action on implementing Lokayukta report on illegal mining
|No measures announced to improve tax collection, mobilise resources
|Tax rates unchanged
|Increased property guidance values in Bangalore, which has resulted in rise in rental and property rates
|No proper measure to manage garbage pile up in Bangalore city
|No proper action plan to acquire land for industries. Many large investment projects are pending for approval, allotment of land

More From This Section

First Published: Aug 21 2013 | 12:42 AM IST

Next Story