The defence function of the world’s seventh largest country by geographical area and second largest by population has been under constant pressure from India’s two important nuclear-armed and difficult neighbours — Pakistan and China. Significantly, at this moment, Jaitley is also leading the government’s most important indirect tax reform programme ever, GST — the one-nation, one-tax system. The finance minister wants to implement the Goods and Services Tax with effect from July 1. Several of the country’s 29 states are yet to pass the GST Bill. West Bengal has asked a month’s time more.

The finance minister’s hands are full. Mountainous NPAs of public sector banks, impact of demonetisation of high value currency notes, pressure on digitisation without adequate cyber security and economic growth slow-down need to be tackled fast. Few will disagree that overseeing the country’s complex defence policy framework and administration in addition to the function of the finance ministry is neither easy, nor desirable.

Four most important independent functions of any national government are: home affairs, external affairs, defence and finance. In all large countries, they operate under full-time function heads. This is the second time in the last three years of the Modi government that the country’s defence ministry has been given to the finance minister as an additional charge. India’s north-western border with Pakistan is boiling with armed intrusions and terrorist attacks. India shares a 3,323-km-long border with Pakistan along Jammu & Kashmir, Gujarat, Rajasthan and Punjab. With China, it has been witnessing a different kind of tension along the Line of Actual Control (LAC). The effective border between India and the People's Republic of China traverses 4,057 kms along the states of Jammu and Kashmir, Uttarakhand, Himachal Pradesh, Sikkim and Arunachal Pradesh. Mighty China also has strategic presence in countries around India, including Pakistan, Nepal, Myanmar, Bangladesh and Sri Lanka. Defending the country’s total international land and coastline frontiers of over 12,700 km is by no means an easy task that can be managed for long by a part-timer as the head of the ministry.

As it looks now, Jaitley’s jobs are most stressed at both ends — finance and defence. The GST implementation is a major challenge for the Modi government and Bharatiya Janta Party (BJP), which is getting ready for the next Parliamentary election in less than two years’ time. The impact of GST on the country’s industry, trade and commerce and the nature of peace along India’s borders are bound to influence the election. As of now, BJP seems to be in a strong position to return to power in the 2019 Lok Sabha election. The tempo needs to be built up further in the next 20 months or so. And, that may not be an easy task. India’s international borders in the north, north-east, west and north-west continue to trouble. On the other hand, the four-level GST slabs, set at 5 per cent, 12 per cent, 18 per cent and 28 per cent for different products and services, have come under fire from several industrial and trade organisations, many of which are staunch supporters of BJP and the prime minister. They have made specific complaints about GST rates for certain mass consumption goods and services that may alienate the common man and impede growth.

Recently, trade bodies such as Maharashtra State Consumer Products Distribution Federation and Confederation of All-India Traders (CAIT), the country’s largest organisation of traders, have sent their representations to Jaitley to reconsider GST rates for a host of items. They include malt-based nutrition products, food items for daily consumption such as ghee and butter, spices for cooking, pickles, hygiene products to automobile and tractor spares, soaps and toiletries, fabrics and garments, education, affordable housing and gems and jewellery. CAIT’s national general secretary, Praveen Khandelwal, has even sent a separate representation to the prime minister. Under pressure, Jaitley had to revise GST rates for some 66 of these items on June 11. The rates were fixed mostly by bureaucrats in the CBEC, basically focussing on the need for higher net central government revenue after sharing the agreed percentage with the states.

Last week, Prime Minister Narendra Modi, soon after his return from the four-nation European trip, himself reviewed the status of GST. The review meeting, which lasted over two-and-a-half hours, was attended by the finance minister and top officials from his ministry, the prime minister’s office (PMO) and the cabinet secretary. The prime minister was specific about aspects of implementation such as IT and human resource readiness, training and sensitisation of officers, and query handling mechanism and monitoring. The smooth implementation of GST is a big challenge before the government.

Surely, the prime minister will not leave the affairs of the defence ministry to be managed under the present arrangement for long. He may be already looking for a right choice for the job. He may pick up one of the top performers in his government for the task. They include M. Venkaiah Naidu, Rajnath Singh, Nitin Gadkari, Ravi Shankar Prasad and Piyush Goyal. Jaitley, a top performer leading a host of financial, banking and tax reforms, is unlikely to be disturbed from his main assignment. Modi may also choose one from among the star performers in BJP-ruled states as chief minister. However, the earlier it is done, the better it is for the government and the nation. (IPA Service)