Small reforms, big impacts

Modi Govt’s quiet transformation

We keenly look for major announcements in budgets. But we tend to miss out on how Modi‘s govt has also transformed India through small, subtle (Kaizen-like) changes.

When we think of reforms, our minds often gravitate toward large, headline-grabbing initiatives.

However, seemingly small but intelligent reforms, when the intent is good (which has been characteristic of NDA governments at the centre) and when executed thoughtfully, can drive significant and lasting changes.

Over the past decade, the Modi government has implemented a series of reforms that may not have appeared revolutionary at first glance but have had profound and transformative impacts on governance, the economy, and the daily lives of citizens.

These are almost never talked about. The purpose of this article is to highlight such reforms and to make us look for similar reforms in the forthcoming budget too, apart from major initiatives.

A budgetary masterstroke

One of the most unassuming yet impactful reforms was advancing the Union Budget presentation date from February 28 to February 1.

This simple shift allowed the government to approve and implement budgetary allocations by April 1, aligning perfectly with the financial year.

The result? Faster infrastructure development, timely fund disbursements, much higher utilization of funds, minimized return of unused funds, and reduced uncertainty for businesses, with far-reaching economic consequences. Most of us don’t even know about it.

Equally significant was the merging of the Railway Budget with the Union Budget, ending a 92-year-old tradition. This eliminated the politicization of railway projects, enabling integrated planning for infrastructure development.

Replacement of the distinction between arbitrary Plan vs. non-plan expenditure by Capital vs. revenue expenditure has helped focus on asset creation vis-a-vis overheads.

A citizen-centric governance model

The Modi government’s emphasis on simplifying administrative processes has been transformative.

For instance:

• Self-attestation of documents replaced the need for a notary or gazetted officer verification, empowering citizens and saving countless wasted hours, effort, and cost.
• The abolition of interviews for Group C and D government jobs ensured merit-based recruitment, reducing corruption and favouritism.
• Schemes like the simplification of electricity connection, and the use of social media for grievance redressal have brought governance closer to the people.
• The GeM portal (Government e-Marketplace) brought transparency and efficiency to government procurement, opening doors for small and medium enterprises.

Such reforms may seem mundane, but they have profoundly reshaped public trust in government systems.

Tackling leakages

Streamlining welfare delivery through the Direct Benefit Transfer (DBT) platform eliminated leakages and corruption in schemes like the Public Distribution System (PDS) and LPG subsidies. Over Rs.2.73 lakh crore was saved by cutting out ghost beneficiaries and middlemen.

Similarly, the ‘Give It Up’ campaign encouraged well-off citizens to voluntarily surrender LPG subsidies, redirecting resources to provide free LPG connections to over 9 crore underprivileged families under the Ujjwala Yojana.

The much-maligned Demonetisation and GST schemes have made it increasingly difficult for medium-large businesses to evade taxes and created a level playing field between taxpayers and tax evaders.

Simplifying business and taxes

For businesses, the Modi government brought clarity and ease with reforms like the reclassification of MSMEs based on turnover rather than investment. This broadened the scope of MSME benefits, encouraging entrepreneurship.

The introduction of the Insolvency and Bankruptcy Code (IBC) transformed India’s credit culture, ensuring faster resolution of bad loans.

On the taxation front, GST filing simplifications and the introduction of an optional no-exemptions tax regime for individuals reduced compliance complexity and encouraged the formalization of the economy.

Digital push

Small steps toward digitization have revolutionized governance.

The Fastag initiative streamlined toll payments, saving millions of hours and fuel.

Platforms like Aadhaar ensured efficient and transparent delivery of subsidies, while innovations like the UMANG app and Digital Locker empowered citizens with seamless access to government services.

The pandemic further accelerated digitization, with initiatives like e-Sanjeevani telemedicine ensuring healthcare access for rural India and migrants benefiting from the One Nation, One Ration Card system.

Ending the VIP culture

Though apparently symbolic, the abolition of red beacons on official vehicles, apart from easing traffic congestion, sent a strong message: governance is about service, not privilege.

Reforms that strengthened the foundation

Advancing sanitation through the Swachh Bharat Mission built over 100 million toilets, improving public health and empowering women.

The Jan Dhan Yojana brought over 50 crore Indians into the formal banking system, paving the way for efficient welfare delivery.

Mudra loans have facilitated crores of poor women who had no means to offer any collateral to start tiny micro businesses/ enterprises.

The Startup India initiative simplified compliance for new ventures, fostering a robust entrepreneurial ecosystem.

The government scrapped over 1,500 outdated laws, clearing the way for smoother governance.

A roadmap for the future

These small reforms underscore the power of incremental change. They have not only improved India’s ease of living and ease of doing business but have also laid a strong foundation for the country’s growth story.

As we look back, it’s clear that transformative governance isn’t always about grand, sweeping changes; it’s often about getting the small things right.

Modi government’s reforms, though understated, have been nothing short of a quiet revolution.

This is not to say that such small but transformative reforms are complete; they never will be. The intent of NDA governments shows that they will always strive to make such small, yet transformative changes, apart from major reforms.

Conclusion

In governance, as in life, it’s seemingly ordinary changes that often make the most extraordinary impacts.

By focusing on details, streamlining welfare, simplifying processes, and empowering citizens, the Modi government has redefined what it means to deliver governance that works.

These reforms may not have always made headlines, and may not even be remembered but their legacy will undoubtedly shape India for decades to come.

It is the duty of the media and opinion leaders to highlight such schemes of governments that work for the people without necessarily looking for rewards for every positive action.

Note:
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.

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