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This Quote Means: ‘Minimum Government, Maximum Governance’

GS-2: Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential.


During the 2014 elections, the government promised "Minimum Government, Maximum Governance"

To achieve this goal, they took four actions:

  1. They let local communities have a bigger role in development.
  2. They included everyone in all government initiatives.
  3. They created a system ofcompetition to increase efficiency.
  4. They utilized technology to improve implementation.

Minimum government, Maximum governance

  • The phrase "minimum government, maximum governance" means having less government control in people's daily lives and giving more power to the people to help themselves and the country grow. 
  • To achieve "minimum government", the government tries to make things easier by reducing bureaucracy and corruption and using technology for governance.

Steps taken by Government towards Minimum government, Maximum governance

  • Abolished around 1,600 outdated laws to make life easier for the common man.
  • Ended the requirement for interviews for government jobs.
  • Encouraged the use of technology, such as RTI, to reduce corruption.
  • Launched the "MyGov" platform in 2014 to connect citizens with the government and promote digitization.
  • MyGov platform has over 1.9 crore registered users and is considered the world's largest citizen engagement platform.
  • Launched the National e-Governance Service Delivery Assessment (NeSDA) in 2019 to assess the success of e-governance services.
  • In 2021, a report by the NeSDA showed that 74% of survey respondents were satisfied with e-services provided by the government.
  • Centralized e-services delivered through integrated portals have increased citizen satisfaction.

A push for privatisation

  • The "Minimum Government, Maximum Governance" initiative also includes reducing public ownership andpromoting privatization
  • This was explained by Prime Minister Modi in a 2012 interview where he stated that the government should not be in business, but rather act as a facilitator
  • He criticized the previous government's economic policies and promised to end bureaucracy and corruption for investors. 
  • The government has raised over Rs 4.04 lakh crore since 2014 through disinvestments, but fell short of their full-year target of Rs 65,000 crore in 2023.

Arguments for "Minimum government, maximum governance":

  1. The idea of a smaller, smarter, and more efficient government that comprises skilled individuals is better than an excessive bureaucracy.
  2. Maximum governance allows the intellectual force of a country to leverage the government.
  3. The responsibilities of a well-governed society should reside across the society, not just with the government.

Arguments against "Minimum government, maximum governance":

  1. The government has an important role in framing the challenges facing society and speaking with a clear voice.
  2. Blurring the private-public roles can lead to confusion and erode the professional identity of institutions.
  3. The insertion of coercion into areas where voluntary persuasion should work can result in the failure of important initiatives.
  4. The motivation of institutions is compromised, leading to companies behaving like bureaucracies and a transactional, profit-minded government.

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Fact File

Sovereign Green Bonds: What do they mean for investors, and the environment?

  • The Reserve Bank of India (RBI)will hold its first auction of sovereign green bonds worth INR 8,000 crore on February 3, as part of the INR 16,000 crore total auction for the financial year. 
  • The second auction is set for February 9.
  • The RBI is conducting auctions for two sovereign green bonds namely – theNew GOI SGrB 2028 and the New GOI SGrB 2033 – witha maturity of 5 and 10 years, each worth INR 4,000 crore.

Green Bonds

  • Green bonds are securities issued by governments, inter-governmental organizations, alliances, or corporations with the intention of using the bond proceeds for environmentally sustainable projects. 
  • The government established the framework for these bonds on November 9, 2022.

Green Bonds offer –

  • A platform for investors to promote good practices and influence the business strategy of issuers.
  • A means to hedge against climate change risks while achieving similar or better investment returns.
  • A growth in green finance that indirectly discourages high carbon-emitting projects(as per IFC).

Significance of Green Bonds

  • Address climate change threats: Green bonds are designed to help tackle the issues of climate change and its related challenges.
  • Financing for sustainable development: Climate change presents risks to communities and economies, and large amounts of funding is needed to address these challenges. Green bonds provide a way to channel capital towards sustainable development.
  • Connection to capital markets: Green bonds provide a link between environmental projects and capital markets, allowing investors to invest in sustainable development initiatives.
  • Importance for the World Bank Group: The International Finance Corporation (IFC), a World Bank Group institution, recognizes the significance of green bonds in financing sustainable development and addressing the challenges posed by climate change.

Govt’s plan

  • In August 2022, the government committed to reducing emissions intensity of GDP by 45% from 2005 levels by 2030 and reaching 50% of cumulative electric power capacity from non-fossil fuel sources.
  • The Union Budget 2022-23 announced the issuance of sovereign green bonds in line with reducing carbon intensity.
  • India's climate actions have been largely financed domestically and now aims to generate additional global finance.
  • The sovereign green bonds will help the government secure finance from potential investors for public sector projects aimed at reducing carbon intensity.
  • The government will use the proceeds from sovereign green bonds to finance green projects, including:
  • Renewable energy (solar, wind, biomass, hydropower)
  • Clean transportation
  • Energy efficiency
  • Climate change adaptation
  • Sustainable water and waste management
  • Pollution prevention and control
  • Green buildings

Benefits to investors

  • Tax incentives, including tax credits and exemptions, vary based on the issuing entity and jurisdiction.
  • These incentives facilitate direct investment in socially beneficial and environmentally conscious projects, as well as the rejuvenation of outdated industries.
  • This results in increased accountability and transparency in revenue management, providing a new tool for risk management.
  • The benefits of these incentives include comparable financial profits and positive impacts on the environment and society.



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