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LATEST NEWS UPDATES | Hard bargains and the art of policymaking -MR Madhavan

Hard bargains and the art of policymaking -MR Madhavan

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published Published on Dec 3, 2020   modified Modified on Dec 3, 2020

-The Hindu

Discontent over the new farm laws is a result of sidestepping debate and discussion in Parliament

The ongoing farmers’ agitation epitomises the need to have detailed discussions and consultations while making law and policy. The process of building consensus and addressing concerns may be time-consuming, but it leads to greater acceptance of policy objectives. While such work has to be done at multiple levels, Parliament is perhaps the most important forum for this. It has a well-established process to get inputs of experts and stakeholders, and to build cross-party consensus while enacting a law. This is usually done through its committees. The government can also use other consultative mechanisms, such as expert committees and consultative groups, to get feedback and tailor policy.

Parliamentary committees perform a very important role in the lawmaking process. They allow MPs to engage with experts and understand the nuances of a Bill, enable discussion across party lines without the pressure of posturing for the public, and on several occasions, these committees have helped negotiate a path through conflicting interests.

The GST journey

An example will illustrate the working of this process. The Goods and Services Tax (GST) was proposed to be introduced about a decade ago. As GST subsumed several taxes in the Union List (such as excise duties) and the State List (such as sales tax), the Constitution had to be amended. This amendment required not just the support of two-thirds of members of each House of Parliament, but also ratification by half the State legislatures. For successful implementation, the new system needed support across party lines and State governments, as value chains for goods and services run across States. Lack of proper implementation by even one State in the value chain would jeopardise the working of the system, as it requires matching of invoices and crediting taxes across the chain.

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The Hindu, 3 December, 2020, https://www.thehindu.com/opinion/op-ed/hard-bargains-and-the-art-of-policymaking/article33235327.ece?homepage=true


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