Government needs to strengthen institutions: Bimal Jalan

NEW DELHI: Bimal Jalan , former governor of the Reserve Bank of India, underscored the need for the government to redefine its role and strengthen institutions to improve governance.

“At a macro level, there is executive dominance now over institutions, and that needs to change”, he said at a panel discussion following the launch of eminent columnist Swaminathan S Anklesaria Aiyar’s book ‘From Narasimha Rao to Narendra Modi’. The book was released by former Prime Minister Manmohan Singh, the architect of economic reforms in India.

The panelists, including Rajya Sabha member Swapan Dasgupta and former Ficci president Sidharth Birla, acknowledged India’s growing influence in the world economy.

“The question which needs to be asked is why are we not reducing the role of the government”, said Jalan. He said institutions need greater autonomy to function effectively and should be held to account”, when specifically asked if RBI’s role had been undermined following the decision on demonetisation.

“If the Election Commission were to report to the home ministry, would the country have had free and fair elections?” asked Jalan.

His underlying message was that as India develops as a democracy, institutions need to become stronger, not weaker, with the government being an enabler of policies.