A blindspot of learned economists and pundits who discuss, debate and analyse the Union — and to a much lesser extent state government — budgets, is the substantial expense incurred by government under the head ‘establishment expenses’. In EducationWorld where thrift is venerated as a virtue, we have been repeatedly whistle-blowing about enormous amounts often exceeding 20 percent of total government revenue, being routinely expended under this amorphous head.
With each passing day, evidence is emerging of unbridled spending buried under establishment expenses by government ministers and officials. Lavish expenditure by government leaders by way of fully furbished and protected airplanes and motor cars for the prime minster, a private airline for ministers who commute in motorized cavalcades and serve the people from imposing manors, are funded by unquestioned provision made for establishment expenses in the Union and state government budgets. Recently, a Rs.500 crore Xanadu-style seaside palace constructed by Andhra Pradesh chief minister Y.S.R Jagan Mohan Reddy in Visakapatnam has been hitting the headlines. A few months ago a competitively ornate palace of ousted Telangana chief minister K. Chandrashekar Rao in Hyderabad, and a grand Sheesh Mahal built for Delhi chief minister Arvind Kejriwal were in the media glare.
Government balance sheets are subject to audit by the grandiosely titled Comptroller & Auditor General of India. Yet apart from the time when the CAG computed a humongous ‘notional loss’ of Rs.1.8 lakh crore in the coal auction scam of 2009, little is heard from his august office.
Curiously governments encounter little difficulty in funding palaces, perks and extravagances of the neta-babu brotherhood. However, they experience severe financial constraints when it comes to funding modernization of the country’s dilapidated, dysfunctional government schools and primary health centres. On this glaring paradox, learned economists and telly talking heads are strangely silent.