Slamming BJP for policy constraints, former union minister Kapil Sibal today said the present government is now realising that a court judgment can impact economic growth, while referring to the Economic Survey findings on public policy 'dilemma'.
Slamming BJP for policy constraints, former union minister Kapil Sibal today said the present government is now realising that a court judgment can impact economic growth, while referring to the Economic Survey findings on public policy 'dilemma'.
"They (BJP) now realise, now that they are in government, how can court judgment also impact long term economic growth and the lukewarm attitude of potential investor," Sibal said in reaction to findings of Economic Survey 2016-17.
The survey said that the policy making in certain areas like telecom and banking has been severely constrained due to "abundant caution in bureaucratic decision-making".
The Supreme Court in February 2012 had quashed 122 telecom licences issued in 2008 and asked government to allocate spectrum for mobile services through auction.
The CAG had said that the spectrum allocated administratively in 2008 had led to notional loss of Rs 1.76 lakh crore to the national exchequer.
BJP, then in opposition, had hailed the apex court judgment.
The Economuic Survey said that there is now adherence to strict rules - for example auctions of all public assets - that may not necessarily be optimal public policy.
"In telecommunications, the judicially imposed requirement for transparency and auctioning, while responding importantly and appropriately to the previous experience of corruption, has created a public policy dilemma," the survey said.
The government in October 2016 auctioned spectrum worth Rs 5.66 lakh crore but received bids worth only Rs 65,789 crore.
"In some cases, it may be socially optimal to sell spectrum at lower than auction prices because of the sizeable externalities stemming from increased spread of telecommunications services.
"But the understandable distrust of discretion means that methods other than auctions could be perceived as favouring particular parties," the survey said.
"All these impediments have hampered economic growth. BJP itself is squarely responsible for this. Now that auction for every public asset is matter of policy. This government is realising that the auction may not serve public interest," Sibal said.
The survey said that the senior managers in public sector banks are reluctant to take decisions to write down loans for fear of being seen as favouring corporate interests and hence becoming the target of the referee institutions, the so-called '4 Cs': courts, CVC (Central Vigilance Commission), CBI (Central Bureau of Investigation) and CAG (Comptroller and Auditor General).
Sibal said that consumer requires high quality service at reasonably low price.
"A policy which destroys potential of investor to make a profit, to invest back in to system for improving service is bound to have negative impact on the economy. The auction in telecom sector has resulted in sector being over burdened with debt of Rs 3.8 lakh crore. Thus reducing space for improving service," he said.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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