We Also Make Policy: An Insider's Account Of How Finance Ministry Functions
The entire book “we also make policy”, running into 460 pages (excluding background and references), is divided into five sections namely On induction as secretary: Economic affairs, Policy decisions that ignited controversies, Institutional Issues, Government of India budgets and Voluntary retirement.
This book comprises the memoirs of Subhash Chandra Garg, who served as the Finance Secretary of the Government of India, overseeing the significant Economic Affairs department, from 2017 to 2019. During this time, he worked under the leadership of three different finance ministers, namely Jaitley, Sitharaman, and Piyush Goyal. He was an IAS officer of the Rajasthan cadre from the 1983 batch. Having an extensive tenure in the finance sector, he also served as the director of the World Bank in the United States. Garg was appointed by Arun Jaitley to assume the position of the highest-ranking financial bureaucrat in India, commencing in July 2017. Approximately 8 months before his arrival, the government undertook a unique economic experiment known as demonetization, which almost caused the country to veer off course. Furthermore, the ambitious indirect tax reform known as GST came into force just two weeks before his appointment. Given the magnitude of the task at hand, it is expected to take several years to stabilize.
Economic policy exerts a direct influence on the manner in which individuals lead their lives, consume food, engage in employment, and allocate their financial resources. Finance secretaries have a pivotal role in formulating and executing economic policies that have a broad impact on several aspects of life. This book provides an in-depth account of the process of formulating and dismantling economic policies at the highest echelons of the Government of India. The prologue of the book provides a clear description of the relationships and reporting structures between several financial regulators and the finance ministry, as well as their subsequent interactions with other ministries and the Prime Minister's Office. Garg's comprehensive exploration of economic history, policy decisions, and political influences that shape the policy framework renders this book intellectually stimulating.
‘We Also Make Policy’ is a documentary-style report that provides an observational perspective on the activities taking place within the finance ministry. The book provides a comprehensive analysis, utilizing numerous incidents, to elucidate the process of policy-making in India. The book discusses openly the contentious decisions made during the initial term of the NDA government, including the strategic manoeuvring regarding the 'minimum support price' for farmers, the introduction of electoral bonds, the process of recapitalizing banks, the monetization of national assets, and the contentious resignation of RBI Governor Urjit Patel, among other topics. Garg, who has authored three Union Budgets, discusses the essential components involved in formulating the Budget, including the pressures, procedures, computations, and most importantly, the political aspects. The author's dispute with the central bank on the sufficient amount of capital and electoral bonds resulted in the resignation of both the governor and deputy governor of the bank. One amusing incident was described in the book. The book raises pertinent questions regarding the participation of government-appointed directors on the boards of regulatory entities.
The book prompts the inquiry of whether these directors only endorse political decisions or possess the knowledge and skill to grasp the intricacies of techno-commercial discussions and develop their own viewpoints. This book offers an intriguing examination of the intricate interplay among bureaucracy, politics, and governance in India. The prologue of the book offers a lucid depiction of the connections and hierarchical arrangements among various financial regulators and the finance ministry, along with their following engagements with other ministries and the Prime Minister's Office. Garg's thorough examination of economic history, policy choices, and political factors that impact the policy framework makes this book intellectually stimulating.
This book provides an opportunity to gain insight into the inner workings of highly intelligent individuals and their inflated egos. The author encapsulates his entire professional journey in a single sentence that is the very definition of understatement: "Life is never dull in the Ministry of Finance." The book is not particularly interesting, yet it is enjoyable to read. The book is recommended, especially Individuals with a keen interest in news, particularly in the realm of economics, who periodically contemplate the process of developing impactful policies.
