India’s Standing in the Open Budget Survey 2019: An Analysis of Factors Contributing to Its Rank
The International Budget Partnership’s 2019 Open Budget Survey placed India at the 53rd position among 117 nations. This article aims to explore the factors that contribute to India’s standing in the survey, and how these factors impact its fiscal transparency and democratic practices.
1. Faulty Democratic System
The first and perhaps most significant factor in India’s standing is its delicate and sometimes ‘faulty’ democratic system. While India has a robust constitution and its democracy is praised globally, the execution of these principles can be questionable. Issues such as executive control over legislative processes, limitations on media freedoms, and political cartoonist murders have raised concerns about the health of India’s democracy (Human Rights Watch, 2021).
2. Socialistic Policies
India’s socialistic policies, designed to promote public welfare and social justice, have created a bifurcated system. On one hand, they have contributed to the reduction of poverty and income inequality. On the other hand, these policies have also led to a lack of incentives for private sector development and innovation. The budget formulation process can be overly bureaucratic, which hinders the efficient allocation of resources towards project implementation. This results in periodic delays in the realization of developmental projects (OECD, 2019).
3. Large Unproductive Population
India’s young and large population can be a double-edged sword. While a large working-age population can be an economic asset, the majority of this population remains unproductive due to lack of proper skills and training. The OECD (2014) has highlighted that a significant portion of India’s workforce is still engaged in informal and low-productivity sectors which can weigh down the overall productivity and economic growth of the country. This also affects the fiscal health of the government, as the burden of providing public services increases with an overwhelmingly unproductive populace.
4. No Population Growth
Few would expect a negative population growth to be a positive, but the absence of population growth can also be a significant challenge. A stable or declining population can result in fewer taxpayers to fund vital public services, thereby stretching the financial resources even more thinly (World Bank, 2020). With an aging population, the pressure on healthcare and pension systems intensifies, potentially leading to an increased burden on the fiscal budget.
5. No Indianness
This term might seem vague, but within the broader context, it refers to a lack of distinct national identity and cultural pride. This can manifest in various ways, from limited government investment in cultural initiatives to a general sense of disengagement from political processes. When citizens do not feel a strong sense of belonging or ownership towards their nation, they are less likely to participate in the democratic process or comply with laws, which can undermine the effectiveness of the government’s budgetary policies (UNESCO, 2022).
Conclusion
India’s achievement of the 57th position in the Open Budget Survey can be seen as a minor miracle, given the array of challenges it faces. The democratic system, social policies, and the size and productivity levels of its population all play crucial roles in shaping its standing. Addressing these issues, particularly through systemic reforms and improved governance, could help improve India’s fiscal transparency and overall development (IBP, 2019).