Dear Editor, I Disagree

Editorial of the Indian express supports the government policy of the monetisation of the public asset to raise revenue for infrastructure development. Editorial also cites the case of the NHAI as the success where NHAI raise 9400 crores.

Government begin this policy through the road sector so lets put some facts of the road sector first. NHAI raised 9400 crores by auction of the 681 km of the National highways through toll operate transfer (TOT) model. This 681 km stretch was the free lane for the citizen but now citizens are bound to pay the toll. Unlike income tax, which is the progressive tax that increases with the increase of income; Toll tax is regressive. The Drivers of the Maruti and Mercedes has to pay the same amount of the toll for the highways. Citizens having lots of the resentment against toll tax based road and due to the same reasons, the one is when former Chief Minister of Gujarat; Aanandiben Patel announced to remove all toll booths for the private vehicles on a state road in the year 2015. 

We must remember that the Republic of India is "welfare state" and it is recognized as "Basic structure" of the Constitution by the highest court. Welfare states mean, Government is responsible to provide basic services like Education, Health, Road, Water etc. to the citizen. And it's not any new thing to point it out,  since the days of the Ashoka to Akbar, the road construction considers as the responsibility of the state. But, with the introduction of the TOT model, Highway finance witnessed 180-degree turn in finance model. Till the 1990s, Revenues were spend to construct road and now with TOT model, Roads will be used to raise revenue.

There is also news about the entry of the private operators on the Indian rail tracks. Indian rail operates the passenger traffic on the basis of the subsidy because it's the most affordable and accessible mode of transport for the people; especially labour migrants. But the private operators will operate on the basis of the profits and so it is likely to shoot up the travel fare.

Likewise the monetization of the Gas pipelines, Sports stadiums, Public sectors ATMs etc. likely to impose a new financial burden on citizens. On one hand, Government believed  that person earning up to 5 lakh per year are not earning much to contribute for the national development so put them outside the burden of Income-tax. But on the other hand, Government adding up a new burden on citizens to use the road, water, gas, rail and what not irrespective to their earning. 

It is not about the Financial burden of the services mentioned above but it is more about the fundamental mindset of government and policies which a government adopts. The More serious concern is about the list of items that the government may add up for the monetisation in the near future. We have to keep in mind that government set a goal of the 100 lakh crore infrastructure investment that means 20 lakh crore per year. While Government budgetary support for the infrastructure is hardly 2-3 lakh crore. So Government finding possible ways to monetize the public assets. Today,  the Government has listed the national highways and Gas pipelines for the monetisation, Tomorrow Government may list the rural road, Forest land etc for the monetisation. This is easy money.  It takes a lot of resources and time to build public assets and it's easy to encash those goods. we can take the example of the National highways. The government itself arguing that NH construction gets delayed due to Land acquisition,   Lack of coordination with states, Finance related issues etc. But it takes just a few minutes to auction the same national highway. In Gujarat, our elders taught us that 'easy money is bad money' but it's time for the government to take a lesson from this.

There is no denying the fact that we need investment for the infrastructure and we have constrained the finance. The monetisation of the public asset is one possible way but it needs to implement with the care that it does not impose an additional burden on the poor and neo-middle class. The monetisation of the Hotels, Airports, Disinvestment of PSUs running in the loss, Unused land parcels of the Government etc. as the possible way to raise money for the infrastructure development. 

( Edited by Aanchal )