Explained: What is a 'White Paper' and why is Modi govt bringing one on UPA's economic mismanagement?

The recent speculation over the Narendra Modi-led BJP government's decision to present a 'White Paper' during the ongoing budget session has sparked significant interest and debate. The white paper aims to shed light on the alleged economic mismanagement during the tenure of the previous UPA government, which governed India prior to the current BJP-led NDA government.

The Central Government is likely to present the white paper on Saturday February 10, marking the culmination of the Parliament's budget session. Originally slated to conclude on February 9, the session has been extended by a day reportedly to accommodate this significant event. However, some reports state that the government could bring the white paper in the Lok Sabha on Thursday itself. Political observers see this move as part of the broader political strategy of the ruling party to discredit the opposition ahead of the upcoming Lok Sabha elections in 2024.

Also read: Congress has become outdated, Modi 3.0 will lay strong foundation for Viksit Bharat: PM's Top Quotes in RS

What is a White Paper?

In the realm of governance and policy-making, white papers serve as crucial documents that outline government proposals, policies, and initiatives. Their significance lies in their ability to provide comprehensive insights into complex issues, propose solutions, and invite public discourse and feedback. The concept of white papers transcends borders and has been embraced by governments worldwide as a means to communicate policies transparently and engage citizens in the decision-making process. 

White papers that are presented in a Parliament are intended to provide transparent and factual information to the public. Although white papers hold no legal significance, they are considered authoritative documents that outline the government's stance on particular issues.

History of White Paper

The term "white paper" has its origins in British government parlance, where it was first used in the early 20th century to describe government reports or policy documents. The term "white paper" was derived from the colour of the government documents' covers, which were typically white.

In 1922, Winston Churchill, then Secretary of State for the Colonies, presented the Churchill White Paper regarding the future of Palestine to the British Parliament. The White Paper outlined Britain's proposed policy shift in Palestine, particularly addressing the commitments made in the Balfour Declaration of 1917, which supported the establishment of a "national home" for the Jewish people in Palestine while safeguarding the rights of the existing Arab population. The Churchill White Paper sought to balance conflicting interests by advocating limited Jewish immigration and land purchases in Palestine, aiming to prevent unrest among the Arab population while honoring Britain's previous commitments to the Zionist movement. Despite its attempts at reconciliation, the White Paper ultimately failed to satisfy either side completely and contributed to escalating tensions between Jewish and Arab communities in the region.

White papers gained prominence during the mid-20th century as governments recognized the need for transparent communication of policies and proposals to the public and stakeholders. Over time, the format and usage of white papers have evolved to encompass a wide range of topics, including economic policies, healthcare reforms, technology advancements, and environmental strategies.

Who can issue a White Paper?

White papers can be issued by institutions, companies, or organizations aside from the government. They serve to provide detailed information about products to customers, employees, or the public. Additionally, many organizations publish white papers to promote their technology and make it accessible to the general population.

What does a White Paper contain?

White papers addressing economic matters often discuss government or institutional shortcomings, their adverse consequences, and propose suggestions for improvements. Conversely, white papers related to production or technology encompass various details about the product or technology itself. These details may include information about the facilities provided, usage instructions, required environment, points of differentiation from other technologies, pricing, and more.

The white paper likely to be presented in the Parliament is expected to delve into India's economic challenges and the detrimental effects on the economy during the UPA government's tenure. It is also likely discuss the potential positive steps that could have been implemented during that period.

What has Finance Minister Nirmala Sitharaman said about the White Paper?

During her Interim Budget speech on February 1, Finance Minister Nirmala Sitharaman announced that the central government would release a 'White Paper' comparing the state of the Indian economy before and after 2014. "It is now appropriate to look at where we were then till 2014 and where we are now, only to draw lessons from the mismanagement of those years. The government will lay a White Paper on the table of the House," the finance minister said.

The finance minister stated that the White Paper would emphasize the mismanagement of the economy during the previous regime. "We lost 10 glorious years... Every area of the economy was ridden by problems from banks to minerals," Network 18 quoted FM Sitharaman as saying.

Also read: Decade of economic contrasts: UPA's fiscal mirage vs NDA's transparent 'Viksit Bharat' pitch

Why is the White Paper coming now?

It's noteworthy that the upcoming general elections are anticipated to take place between April and May 2024, aiming to elect 543 members of the Lok Sabha. The current term of the 17th Lok Sabha is set to conclude on June 16, 2024.

Presently, many economists view the track record of the BJP-led NDA government favourably. The country's trajectory suggests impressive growth, with projections indicating India to become the third-largest economy globally, reaching a GDP of $5 trillion within the next three years and aiming for $7 trillion by 2030, propelled by sustained reforms. A decade ago, India ranked as the 10th largest economy globally, boasting a GDP of $1.9 trillion at current market prices.

Despite inheriting an economy fraught with macro imbalances and a fractured financial sector, today India stands as the 5th largest economy, boasting a GDP of $3.7 trillion (estimated for FY24), even amidst the challenges posed by the pandemic.

"The strength of the domestic demand has driven the economy to a 7% plus growth rate in the last three years...in FY25, real GDP growth will likely be closer to 7%," said a review released by the Finance Ministry ahead of Interim Budget 2024. It further said there is considerable scope for the growth rate to rise well above 7% by 2030.

The central government's confidence was reflected in the finance minister's Budget speech. “The economy has got a new vigour. The fruits of development started reaching the people at scale. The country got a new sense of purpose and hope,"  FM Sitharaman said during her speech.