One Nation One Election could boost GDP by 1.5%: Gita Gopinath to JPC

Former IMF Deputy MD Gita Gopinath told the JPC on One Nation One Election that the reform could boost GDP by 1.5% (₹4.5 lakh crore) by reducing election frequency, avoiding investment declines, and ensuring policy continuity.

Economic Arguments for ONOE

The Joint Parliamentary Committee (JPC) on One Nation One Election (ONOE) met on Wednesday, led by Bharatiya Janata Party (BJP) MP and chairman PP Chaudhary. Former Deputy Managing Director of the International Monetary Fund (IMF) Gita Gopinath, along with a member of the Prime Minister's Economic Advisory Council (PM-EAC), presented their views to the panel, with members across party lines receiving constructive feedback on the reform.

Potential GDP Boost

Sources told ANI that Gopinath, a Harvard University Professor, said ONOE would deliver significant economic gains by reducing elections, calling it a positive macroeconomic reform. She highlighted that election years see delayed private investment (approximately 5% decline), higher primary deficits, and reduced capital expenditure. Sources said Gopinath estimated that the election reform could increase GDP by 1.5% (₹4.5 lakh crore) and reduce election-related expenditure.

Policy Stability and Reduced Disruption

Sanjeev Sanyal, Member of the PM-EAC, highlighted that One Nation One Election (ONOE) would reduce costs by lowering election frequency. However, he emphasised that monetary savings aren't the primary reason for ONOE. Instead, staggered elections impose high economic costs due to policy disruptions, leadership distraction, and repeated Model Code of Conduct violations. ONOE would ensure policy continuity, allow simultaneous discussion of Union and State issues, and enhance governmental stability, thereby strengthening long-term planning, according to sources mentioned.

Legal and Constitutional Scrutiny

Earlier, on December 11, Senior Advocate and former Union Minister Kapil Sibal presented his views to the JPC, emphasising that the rights of states should be accorded due prominence.

Earlier this month, the Law Commission of India approved the One Nation One Election (ONOE) Bill, stating that it doesn't violate the Constitution's basic structure. The experts, including the Chairman of the Law Commission, discussed various issues for about three hours.

JPC's Ongoing Review

"All the members asked for clarification, and then everything will be considered, and the committee will make its recommendation," Chaudhary had told ANI.

"This subject of One Nation, One Election is in the interest of the country because it will solve many problems, whether it's the economic aspect or governance. So the committee is giving everyone a lot of time to present their views," he added.

The JPC is currently reviewing the Constitution (129th Amendment) Bill, 2024 and the Union Territories Laws (Amendment) Bill, 2024. These Bills, introduced on December 17 in the Lok Sabha last year and sent to the JPC for further scrutiny, collectively aim to introduce simultaneous elections across the country. (ANI)

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