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RBI Governor Dr.Subbarao has hung his boots to the hieve of sigh by Finance Minister Mr.P Chidambaram who was advocating the line that RBI need to follow the government guidelines in formulating monetary policies. Many in the officialdom feel that Dr.Subba Rao has stood up to the machinations of the Minister known for his rude and royal arrogance besides a deep understanding of the economy. IMF lately has recommended in removing certain powers in the RBI act which gives leeway for the government of the day to tread in to the powers of RBI to ensure functional autonomy in keeping with the increasing trend of suspecting political leadership. But an institution created by an act of Parliament needs to be accountable to the political masters because it is a constitutional mandate. Remember Subbarao had the temerity to write in finance ministry's file that had the then FM desired he could have stopped the 2G scam. He also has written enormously on the need tohave auction for allocation of natural resources which is the prerogative of the Executive- read the political leadership of the day. Bureacrats are expected to implement policy decisions which are taken by council of ministers and approved by cabinet after Presidential asset they become law. 

The tendendy of the bureacracy to lord over decision making is not new because it is said Indira  Gandhi depended on her own set of advisors than on her cabinet collegues and created a monstrous organisation called PMO which was vigilantly overlooking very minister and his actions. But under Dr. Singh himself a retired bureacrat, it has got in to monstrous proportions with every Secretary locking horns with his Minister. Ashok Chawla committee recommended that all natural resources must be auctioned and price discovered. when pointed out that this could increase the cost of goods and services, he had a marvellous idea.,Provide for subsidies.Which is better- forgoing a one time revenue or providing for a stream of continious subsidies year after year? Bureacrats believe that the second option is better which is sheer nonsense. 

For too long Bureacrats have been assigned roles they are not properly trained for. They have sat on acquistions of fleet, aircraft, ammunition or gun for the armed forces even though the Services Chief wanted them. They have presided over PSUs and are responsible for the huge mess most of them or in. There are exceptions though like Krishnamurthi of BHEL and Maruti Udyog. There has been a constant heat burn when IAS officers are chosen to head PSU and RBI. RBI handles the nations economy and as such it requires grooming of prospective Governors form within. If from outside, he/she should have adequate domain knowledge. Subba Rao is a bureaucrat and he though he could lord over RBI as he could when he was Finance Secretary. His parting speech was full of arrogance and challenge to political leadership.