"Government is selling India! Government is selling all our prized assets! Government is selling the country."
Such statements from the opposition were not unexpected post the 1st Feb 2021 Union Budget with the push of BPCL, Air India etc disinvestments and further information of four PSBs up for sale being released by the Finance Minister. A working class raised in Nehruvian Socialism and a society fairly broken from spirit of entrepreneurship of ancient Bhaarat, naturally might resonate with such headlines and comments. The ghost of privatization is difficult to shake off for some but then what do we stand to achieve with it? Is it all bad or all good or is it somewhere in between? Is there a sweet-spot that one can aim for between the poles of Privatization (broadly, Capitalism) and State Ownership (i.e. Socialism)?
To answer these questions, one needs to ponder over the question, "What is any government's core job?". A government is supposed to provide for its people economically and socially while ensuring internal & external safety and security. When one says 'provide', one has to acknowledge that for anything the government has to give to Raam, it has to take something from Shyam. For anything it has to give to Laxman, it has to take from Raam and for anything it has to give to Shyam, it has to take from Laxman. This something can be a direct cash transfer as done through Kisan Samman Nidhi, it can be good roads/public infrastructure, it can be having a good night's sleep with a robust law & order system, it can be security from foreign/local terrorists so on so forth. Put simply, to provide or to spend money on welfare, infrastructure and security, government needs taxes. For the government to earn enough taxes to cover rising annual expenditure, it has two levers it can employ:
