The breathless pace of policy reversals by the NDA government signals a possible end to unilateralism in governance.
The latest U-turn pertains to the pension scheme for the Central government employees. Following widespread resistance to the National Pension Scheme (NPS), the Union Cabinet has now backtracked on it and approved the Unified Pension Scheme (UPS), which is almost akin to the Old Pension Scheme.
Two clear messages emerge from the string of policy climbdown in recent months: One, an emboldened Opposition, with increased strength in the Parliament, has been able to exert considerable pressure on the government to make course corrections. Two, more assertive coalition partners are making their voices heard now, unlike their muted presence in the past.
Be it the withdrawal of the Waqf Bill, referring the Broadcast Bill to a Parliamentary panel or cancelling the lateral entry hiring in the bureaucracy, NDA 3.0 has been forced to junk or amend several decisions.
For Prime Minister Narendra Modi, who is not used to the task of navigating the coalition turbulence as he enjoyed smooth sailing with absolute majority in the previous two terms, it is time for a lesson or two in consultative politics.
The rebranded pension scheme reflects a willingness on the part of the government to amend its policies based on feedback from the ground, a scenario that was improbable in its previous terms.
The UPS, which integrates key features from both the Old Pension Scheme (OPS) and the NPS, assures government employees of 50 per cent of their average salary drawn over the last 12 months of service as pension.
It also assures a periodic dearness relief hike in line with inflation trends, a family pension equivalent to 60 per cent of a government worker’s pension in the case of their demise, and a lumpsum superannuation payout in addition to gratuity benefits at the time of retirement.
Besides, a minimum pension of Rs 10,000 a month has been promised for those who complete at least 10 years of Central government service.
Changing times
Unlike in the past when the BJP-led government at the Centre used to push through several controversial legislations using brute majority, the 2024 poll mandate denied the saffron party such a luxury as the opposition block has emerged stronger.
The longevity and stability of NDA 3.0 is now dependent on crucial allies like Janata Dal (United) and the Telugu Desam Party (TDP) that are no pushovers.
The revised pension scheme joins a long list of policy reversals.
Recently, the government had to backtrack on its proposal for the long-term capital gains tax in the 2024 Union Budget, refer the Waqf (Amendment) Bill to a select committee – the first such referral in 10 years – and withdraw the draft Broadcast Bill.
Additionally, in August 2022, the Data Protection Bill was rolled back after a parliamentary panel's review suggested 81 amendments necessitating a new comprehensive legal framework.
The government had to revisit the Budget proposal that removed indexation benefits on real estate. Finance Minister Nirmala Sitharaman had announced the withdrawal of indexation benefits from real estate and lowered the long-term capital gains (LTCG) tax from 20 per cent to 12.5 per cent.
The proposal did not go down well with homebuyers as well as the real estate sector who demanded a rethink.
Just three days after issuing an advertisement for 45 lateral entry posts, the Centre had scrapped the notification, apparently worried over backlash not just from the opposition but also from the allies.
While the Congress and other opposition parties slammed the policy as another step by the Modi government to undermine reservations, NDA allies also expressed their concerns over it. The representatives of JD (United) and the Lok Janshakti Party openly aired their misgivings.
With only 240 seats this term, the BJP leadership is facing increasing pressure from its allies, as evident in the recent debates in the Parliament over government bills. There is a growing realisation that the governance is now bound by the constraints of coalition dharma.
The first instance of a climbdown came with the withdrawal of the Waqf Bill, which had triggered widespread concerns among minority communities and Opposition parties. Perceived as an attempt to centralise control over Waqf properties and infringe upon the independence of the Waqf Boards, it faced strong resistance, forcing the Centre to pull it back to avoid further alienating its allies.
Soon after, the Broadcast Bill, which aimed to regulate digital content and media, was criticised for its potential to curb press freedom. Sensing the growing unease among its partners and the media, the government chose a more cautious approach, opting for a review rather than an aggressive push.
The lateral entry policy was ostensibly designed to bring private sector experts into top government positions.
Initially hailed as a move to infuse fresh talent and ideas into the bureaucracy, it faced a backlash over concerns of cronyism and a lack of transparency. More importantly, it was seen as a blow to the quota policy.
Faced with mounting criticism and pressure from within its ranks, the government has now quietly shelved the plan. The assumption that the governmental system can be set right by importing corporate employees or appointing consultants experienced in corporate governance work is wholly misplaced. The new coalition reality requires the BJP leadership to adopt a more consultative approach to governance.
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