Economist and UPSC interviewer Saloni Khanna's argument that "a little bit of corruption is good for the economy" has gone viral on social media.
In a podcast with Raj Shamani, Khanna discussed corruption within society and among IAS officers, suggesting that these officers' current salary structure is insufficient and should be revised upwards.
Khanna, who has conducted mock interviews for UPSC aspirants, addressed the difficulty of identifying corrupt individuals during the selection process.
"You can't check everything about a person in a one-hour interview. And it's not like people don't fake it," she remarked. She emphasized that not everyone entering the service is motivated by a desire to make a positive impact.
"Very few people have that motive. Most people's motives are selfish. Someone wants power, then power to get money, and then money to get more power. So, it's a vicious circle in itself," she explained.
Khanna pointed out the inadequacy of the current salary for IAS officers, which she believes contributes to corruption.
"Today, an IAS officer's salary is Rs 80,000 to Rs 90,000. Can a household run on Rs 80,000 to Rs 90,000? I'm not justifying corruption, but we need to devise mechanisms to beat it, like increasing salaries to compensate for their true worth," she suggested.
She contrasted this with the corporate sector, where individuals can earn four to five times more, despite an IAS officer's job being much more demanding. "It's a 24-hour job, so it's necessary to give them due compensation," she added.
Khanna also highlighted the pervasive nature of corruption within society. "If an officer is not corrupt, but the people above and below them are, or if people approach them repeatedly, they might eventually succumb to corruption for a higher amount. There is no end to it," she noted.
From an economic perspective, Khanna argued that a little bit of corruption can act as "grease" for the economy, ensuring that things move smoothly. "It's not morally good, but as an economist, we learn that a little bit of corruption acts as grease for the economy. If there is no corruption, everything will move very slowly, businesses will be impacted, productivity will be impacted, GDP will be impacted, and thus the nation's overall output will be impacted," she said.
According to the 7th Central Pay Commission, the entry-level IAS officer's salary starts at Rs 56,100 (basic pay) per month. With DA and other allowances, this can rise to Rs 1,32,000 per month. The salary increases with each promotion and year of service. After 37 years, an IAS officer can be eligible for the post of Cabinet Secretary, with a fixed salary of Rs 2.5 lakh.