India has come a long way since the process of economic reforms and liberalization started nearly three decades ago [1991] – with major focus on abolishing controls and license raj. It can boast of unprecedented progress with corresponding gains by way of putting the economy on a high growth trajectory. The achievements have been particularly noteworthy under Modi – dispensation. Yet, our governance systems including those which have a strong bearing on the economy continue to remain shackled by bureaucratic controls and red tape. The ability of the bureaucrats [a sophisticated nomenclature to describe officials] to maneuver and navigate things the way they want has not diminished. One can see a vivid demonstration of their ability in the way the subject...
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Pricing freedom – not a panacea for India’s energy security
A committee under Dr Rajiv Kumar, vice-chairman, NITI Aayog on ‘Enhancing Domestic Oil & Gas Exploration and Production’ has recommended taking away 97 oil and gas fields – out of a total of 149 marginal fields – from public sector undertakings [PSUs] viz. Oil and Natural Gas Corporation [ONGC] and Oil India Limited [OIL], auction to the private entities and giving them ‘complete freedom of marketing and pricing’ on supplies from these fields. The committee has also recommended that ONGC/OIL should make efforts to improve performance of the remaining 52 fields to achieve specified production and financial targets within a given time frame failing which even these will be taken back by the government for privatization. Further, in respect of...
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Digital tax – a welcome idea
Some of the path-breaking reforms implemented by the Modi – dispensation viz. demonetization, GST [Goods and Services Tax], Benami Law, Black Money Act etc have helped the government in bringing about a substantial increase in tax collection. At the same time, its expenses are increasing leaps and bounds due to mammoth needs for building infrastructure [including augmenting and strengthening the military infrastructure and preparedness of our armed forces] on the one hand and adequately funding welfare schemes meant for assuring affordable housing, fuel, education and health for majority of the poor on the other. Faced with a substantial shortfall in revenue vis-à-vis requirements, the government will need to explore new ways of garnering tax revenue. An area that offers huge potential...
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Handling Trump’s trade googly
President, Donald Trump has threatened to withdraw the over 5 decades old special dispensation viz. the Generalized System of Preferences [GSP] under which the USA imports goods mostly textiles from India at ‘zero’ customs duty. This would affect exports from India worth US$ 5.6 billion or about Rs 40,000 crore. The latest missive is in continuation of a series of actions taken against countries world-wide [including India] under his much hyped agenda of “Buy American, Hire American”. Some of these actions having far reaching ramifications include:- (i) rejecting the demand of developing countries for finding a ‘permanent solution’ to stock-holding for food security despite a decision to this effect at the 9th WTO ministerial held in Bali [2013]; (ii) dumping...
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Factory of allegations – can it unseat Modi?
As the five year term of the present NDA – government is nearing end, there has not been a single case of corruption. This is in sharp contrast to the erstwhile UPA – dispensation which was marked by a tsunami of scams entailing monumental loss to the exchequer. Yet, for almost an year now, the air reverberates with a jibe ‘chowkidar chor hai’ – a euphemism to describe the security guard as thief. Herein, the guard is identified with Modi who in his very first speech on the Independence Day August 15, 2014 had vowed to protect the national resources from loot and use these for development and welfare of the majority of the poor and common man. The jibe...
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Fiscal consolidation – ‘off-balance sheet’ items save the day
In the Interim Budget presented by the finance minister in-charge, Piyush Goyal on February 1, 2019, the government reported a minor slippage of 0.1% in fiscal deficit [FD] for 2018-19 against the target of 3.3% of GDP [gross domestic product]. For 2019-20 also, the FD has been pegged at 3.4%. Going by the fiscal consolidation road-map which required the centre to reach 3% mark by 2018-19, already, it is behind schedule. Even the manner of achieving the mentioned numbers raises doubts about the credibility of the efforts. In regard to proceeds from disinvestment of shares in public sector undertakings [PSUs], the government had set a target of Rs 80,000 crore for 2018-19. A look at the break-up shows heavy...
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If populism can help Modi stay on, so be it
Three important highlights of the Union Budget – 2019-20 [interim] presented by Piyush Goyal, minister for railways and coal and ‘temporary’ in-charge of finance portfolio are: (i) Under PM Kisan Samman Nidhi, the centre will give Rs 6000/- per year to small and marginal farmers [land holding up to 2 hectare] to be deposited directly in their account to benefit a total of 120 million. The support will commence from December 1, 2018 with the first instalment of Rs 2000/- covering 4 months to be given immediately; (ii) Under PM Shram Yogi Mandhan, persons working in the ‘unorganized’ sector and earning less than Rs 15,000/- per month will get pension @Rs 3000/- per month on completion of 60 years age....
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Ram Janambhoomi imbroglio – top court has not covered itself with glory
In the contentious Ram Janam Bhoomi – Babri Masjid case which involves the ownership of the ‘disputed structure’ in Ayodhya [Uttar Pradesh], the Allahabad High Court [AHC] in 2010 had held that the dispute structure/site was actually the birth place of Lord Ram – the God widely worshipped by the Hindu community. A bunch of petitions were filed in the Supreme Court [SC] challenging the order. Since then, the matter has been pending in SC for close to a decade now. Prior to 2010, the issue had been lingering for over six decades involving judicial proceedings at various levels. The protracted delay in resolution of the dispute has prompted Hindu organizations viz. Rashtriya Swayamsevak Sangh [RSS], Vishwa Hindu Parishad [VHP] ...
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Modi’s agenda for jobs
With the general elections only a few months away, the opposition parties have resurrected their attack on prime minister, N Modi for failing to generate 20 million jobs every year – that he promised during his campaign for 2014 elections. The tantalizing figure that arouses the emotions of common man in the street is being used by these parties as a potent weapon to ensure that Modi gets defeated even as they themselves have no vision – forget a comprehensive action plan – to create jobs. The contentious issue of what this prime minister has done and whether or not he has lived up to the aspirations of the youth in providing jobs of the required scale requires an objective...
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Stopping pilferage, enhancing welfare, boosting growth
Addressing NRIs and Indian-origin people at the inauguration of the 15th Pravasi Bharatiya Divas convention in his parliamentary constituency of Varanasi in Uttar Pradesh on January 22, 2019, Prime Minister Narendra Modi referred to former premier Rajiv Gandhi’s remarks on corruption in the country saying Congress that ruled for years did nothing to stop the “loot”, while his Government put an end to it and transferred about Rs 5,80,000 crore directly to the people under various schemes. Modi recalled what Rajiv Gandhi had stated “of the funds Central Government sends, only 15 per cent of that reaches the people. If one rupee is sent from Delhi, only 15 paise reaches the villages, 85 paise disappear. Even as the country’s middle...
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