A Historic Shift in the Political Landscape of Delhi
The appointment of Rekha Gupta as Chief Minister of Delhi is a landmark moment in the political history of the city. With the BJP winning 48 of 70 seats in the Delhi Assembly, the party returns to power after a 27-year gap. While there were many strong candidates for the post, Rekha Gupta emerged victorious in tripartite legislative meetings, thus marking her rise as Delhi’s ninth and fourth female CM.
However, the bigger question now looming large is whether this was a well-thought-out decision on the part of the BJP to establish its political exchequer in Delhi on concrete grounds, or whether Gupta truly does hold that vision of progressive governance? One of the top challenges that her government will have to contend with as she takes over is the growing need for a digital economy in the national capital, which could be seen as the first stepping stone toward a wholesale demonetization drive.
The Unforeseen Rise of Rekha Gupta
Before the elections, Rekha Gupta was largely unfamiliar to the people, getting comparatively little media coverage from those who would support her candidacy. A resounding victory over AAP’s Bandana Kumari, garnering an excess of 29,000 votes, suddenly thrust her into the limelight. Such rapid evolution from a political newcomer to the Chief Minister’s chair suggests that the BJP is dabbling in some fine political engineering.
While her practical knowledge as a former mayor of the South Delhi Municipal Corporation and leader of various public welfare initiatives offers a solid grounding, severe tests lie ahead. Will she carve out an independent identity as a leader, or become a mere political placeholder for the continued party plans?
Digital Push: A Step Towards Economic Reform
Delhi should lead the way for other states of the country with its determination to be a digital-first state regarding economic transactions. Once this policy is in place, it will serve as one of the most effective ways to diminish the amount of corruption, tax evasion, and circulation of black money etc. So it now becomes the best opportunity for Rekha Gupta to actually work toward a cashless economy in a concrete way.
Why digital transactions must be mandatory?
Elimination of Black Money and Corruption: One of the primary reasons why black money thrives in India is the huge cash transactions that prevail. The digital payment enforcement in Delhi will help the government reduce the financial activities unaccounted for and thus improve tax compliance.
It is an Assurance of Greater Transparency and Accountability: Digital transactions always leave a trail and, thus, log all payments that transpire, whether commercial or individual. This transparency will help to mitigate corruption, especially regarding public contracts, public procurement, and municipal services.
Opening Up Access to All: There still exist several underprivileged sections of society having no access to the traditional banking system. UPI, mobile wallets, and banking through Aadhaar can be put into use to better confer such financial inclusion and extend labor to ensure the government subsidies and welfare funds that duly reach the intended beneficiaries without any middleman intervention.
Better Revenue for the Government: Tax evasions are much harder in the context of transactions carried out digitally. This shall save the day for the government in GST and direct tax collection lightened up and able to invest in the establishments of pressing importance and in social development programs.
An Initial Step Towards Complete Demonetization: If Delhi can implement a successful digital economy model, it can trust that the national government would seek full demonetization. This should reduce cash entry, minimize money laundering, and bring about an accountable economic system.
Policy Recommendations for Implementing a Digital Economy in Delhi
1. Enforcing Mandatory Digital Payments for Government Services
All government offices, including municipal corporations, transport departments, and public utilities, must enforce mandatory digital transactions. Cash payments should be phased out to allow citizens and businesses to make their payments digitally.
2. Providing Incentives for Digital Payments
The government should ensure that tax rebates, cashback offers, and discounts are provided on government services to those using digital transactions to create a great urge for adopting digital payments. Like by GST invoices for promoting digital documentation, personal and business tax incentives for digital payments will drive their adoption.
3. Regulation on High-Value Cash Transactions
The govt should apply strict regulations for cash transactions crossing some limit, while it is required for businesses to carry out high-value transactions only through banking channels. There should be operation of stronger penalties against those against such norms.
4. Strengthening Digital Infrastructure
A stable infrastructure is required for proper functioning of a digital ecosystem. Now, the Delhi Government must make certain that the digital payment facility works across all verticals seamlessly, including small businesses, street vendors, and rural areas in Delhi NCR, with the collaboration of fintechs and banks.
5. Awareness Campaigns and Training Held Publicly
A general campaign to inform the public about the subject of digital payment should be undertaken. Special training programs should be launched for elderly individuals, small traders, and the unbanked population to ensure full acceptance.
Political Willpower: The Key to Success
Rekha Gupta affords chief ministership to the very schema that could suit a modern-digital economy for the city of Delhi. But to bring about such radical changes will need some political willpower. It will also take serious policy decisions that stand to be challenged by sections of the business community, workers of the informal economy, and politicians who have a vested interest in cash transactions.
For her own good, Gupta must take a bold stand and, with her unique administrative experience and public welfare initiative, be sure to garner support from the government and other political parties.
Writer : CA Shishir Gyawali