FM: How would govts trust RBI Guv appointed by earlier party?

When former governors join the political mainstream, the whole cause propagated for autonomy of the institutions gets 68664686 68663231 68643655 impacted, said Arun Jaitley, Finance Minister, in an interview with ETNOW. Edited excerpts: What is your view on Rahul Gandhi’s NYAY scheme? I am yet to read an analysis coming from any serious economist or an economic observer who thinks that Rahul Gandhi’s NYAY is doable. Of course, for political slogan purposes, it is alright but when somebody decides and anticipates politics as a next career, I look at statements as a potential politician not merely as an economist. You have also called the critics, especially the one who have doubted your data, as constant contrarians. They have been saying that there has been a deterioration of institutions and one of the former governors is now being consulted by the Congress Party! According to me when former governors join the political mainstream, the whole cause propagated for autonomy of the institutions, itself gets impacted. When they dwell into statements which are politically loaded, rather than during their tenure as a governor, it is far easier to analyse those statements. Therefore if this trend continues, it may become difficult for future governments to trust governors appointed by the earlier party. Otherwise, nobody changes governors. After all, we also allowed Dr Rajan to have a full term. He is a very brilliant man. But after getting into the political thicket, if he makes a statement, then I will take it as more political than economic. Now let us come to the data. Our data is prepared by the CSO and various organisations, weighted at various stages. In fact, most of the time I read about it only in the newspapers. It does not even come to me the previous evening. I have never met anybody in these institutions at a pre-data stage and I am fairly categorical about it. IMF which is the mother of all data, accepts it but some left of centre academics who have signed multiple memorandums against the government sign one more and therefore the data becomes a suspect. Rafale deal became a suspect because you had signatories. EVMs which have been working from 1996 became a suspect because some people signed on it. We have thrown the defaulting industrialists out of management and they say 15 logo ka rin maaf kar diya. These are all fake campaigns. The data campaign is a fake campaign. Now let us come to institutions. Judiciary, we have had no confrontation. Only one incident, the Supreme Court judgement in the judges case says when the Supreme Court recommends names, the government can send it back once on basis a additional material. Second time you are bound. The government merely exercised that right in one case and so the institution collapsed? Mini emergency came? We just did that. What did they do? On social media, they have carried a political media campaign. There are statements saying we have no faith in the judiciary. They are threatening walkouts, You bring a fake impeachment against the Chief Justice of India and then say institutions are under threat? Second, the Election Commission. Every kind of vicious campaign of credibility has been carried on against the Election Commission -- earlier tenure as well as present tenure. Recently Tejashwi Yadav wrote to Rahul Gandhi that all electronic media is biased, we should boycott the channels in the evening!

from Economic Times https://ift.tt/2TO6tOm