Union Budget likely to be a mix bag of reforms and social agenda
25 02 2015President’s address outlines use of technology, innovation
ASHOK B SHARMA
After the BJP’s victory march was halted in Delhi by the new Aam Aadmi Party, leading to its decimation in the state, the ruling party at the Centre has become cautious about not ignoring the issues relating to the common man. Apart from being aggressive on market reforms and alluring foreign direct investments (FDIs), the upcoming Union Budget and Railway Budget are likely to focus on some of the needs of the common man. The intention of the government is amply made clear in the President’s address to the joint session of the Parliament.
President’s address, drafted by the Union Cabinet, is reflective of the government’s annual agenda. A careful reading between the lines shows that that the government wants to keep its agenda for second generation economic reforms intact and to give a human face to its processes of further liberalization of the economy, it intends to resolve the issues of the common man much through the deployment of science and technology.
“Continuous evaluation of inverted duties is being undertaken to make Indian industries competitive. Stress is being laid on research and innovation. While focusing our attention on manufacturing for creating more jobs, my Government will continue to work on our formidable strength in the service sector,” the President’s address said.
Make-in-India is the pet project of the Prime Minister Narendrabhai Damodardass Modi and the Union Budget is likely to spare no effort in paving the way for the easy inflow of the FDIs and making as much concessions to the manufacturing sector.
As for the services sector, tourism is likely to get much attention. A new tourism policy is on the anvil. Major allocations are likely for developing Jyotirling Circuit, Sukhmangal Circuit, Dakshin Dham Circuit, Krishna Circuit, Himalayan Circuit, Coastal Circuit and Buddha Circuit. Dedicated tourist trains are already in vogue for some of these destinations.
The upcoming Railway Budget is likely reform and infuse new vitality into this through better services, improved passenger-safety and increased movement of freight. By ensuring passenger safety and giving better facility, the government intends to bridge the gap between infrastructure growth and passenger traffic growth. Greater allocations are likely for dedicated freight corridors and metro rail projects in some cities.
On the social sector front, government intends to make Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) “a powerful weapon to combat rural poverty” and by creating durable assets. It will direct about 60% of the expenditure under this scheme for creating agriculture infrastructure. Focus will be on promoting value-added agriculture, market reforms, use of technology, augmenting irrigation through river basin linking if possible and improving productivity in areas with untapped potential. Adequate attention is likely for livestock and fishery sectors.
Another area is skill development. A National Policy for Skill Development and Entrepreneurship is on the anvil to cater to the needs of both domestic and global markets. The Micro Small and Medium Enterprises are also likely to get attention. The Budget is also likely to give attention science and technology, particularly research and development. “Steps are being taken to channelize more resources for research and development in India; build world class research centres; nurture young talent and promote international collaboration, including the world’s largest optical -Thirty Meter Telescope”, the President’s address said.
The Mission Housing for All by 2020 is set to get adequate sops and allocation with government’s liberalized FDI policy. For easy flow of loan to housing and other sector the government is ready to undertaking financial sector restructuring and expedite implementation of the recommendations of the Financial Sector Legislative Reforms Commission.
With a view to aggressively promote development of 100 smart cities, the government will come out with a National Urban Development Mission which would also focus on water and solid waste management.
Power sector is likely get adequate focus in the Budget alongwith the development of clean energy. Government intends to enhance the share of renewable energy in electricity generation from the present 6% to 15% in the next 7 years. Solar energy generating capacities will be set up along the international borders.
The Defence allocation is likely to see a sea change with focus on Indian Navy. Under Make-in-India programme ship designing capabilities, ship building and ship repairs will be strengthened. An environment will be created to increase the shipping tonnage and reduce the transaction time at ports. The Jal Marg Vikas Project will be taken up with sincerity for comprehensive development for national waterways for transportation.
On the front of Information Technology, Digital India will be taken up in right earnest. Auctions will be conducted for 135 vacant channels in 69 existing cities of FM phase-II as part of first batch of FM phase-III. It will also facilitate migration of FM phase-II to FM phase-III. This will take private FM radio to cities having population of more than one lakh and border towns in Jammu and Kashmir, northeastern region and island territories in a phased manner.
Prime Minister’s other pet projects like Swachh Bharat Mission, Namai Gange, Pradhan Mantri Jan Dhan Yojana and NITI Aayog are also likely figure prominently in Finance Minister’s Budget speech.
The Budget, therefore, is likely to be mix bag of reforms, deployment of technology and innovation and social agenda.
(Ashok B Sharma is a senior Columnist writing on strategic and policy issues in several Indian and international newspapers and magazines. He can be reached at ashokbsharma@gmail.com His mobile phone no +91-9810902204)
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Categories : Business, CSR, culture, Education, Finnance, Funds
Government accepts recommendations of the 14th Finance Commission
25 02 2015
PM writes to Chief Ministers<
Record increase in devolution of resources to states
PM: Our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development.
The Prime Minister, Shri Narendra Modi, has written to Chief Ministers, informing them of the Government`s decision to wholeheartedly accept the recommendations of the 14th Finance Commission. Following is the text of the Prime Minister`s letter:
“You are aware that ever since our Government came into office, I have been working to strengthen our federal polity and promote cooperative federalism. The people of the country have high expectations from their governments and do not want to wait. Therefore, since the very beginning, we have been committed to a rapid and inclusive process of growth. Looking to the diversity of the country, we understand that real and functional Federal Governance is the only vehicle to achieve this objective quickly and holistically.
I sincerely believe that strong states are the foundation of a strong India. Even as Chief Minister, I had been saying that the progress of the country depends on the progress of states. This Government is, therefore, committed to the idea of empowering states in all possible ways. We also believe that states should be allowed to chalk out their programmes and schemes with greater financial strength and autonomy, while observing financial prudence and discipline. We are clear that without this, local development needs cannot be met and marginalised communities and backward regions cannot be brought into the mainstream.
With this in mind, we have replaced the Planning Commission with the NITI Aayog with the explicit intent of ensuring that this becomes a common forum for forging a national vision on development. Such a vision and the concrete steps that all of us take will help in realising the development aspirations of our people.
It is in this context that we have wholeheartedly accepted the recommendations of the 14th Finance Commission, although it puts a tremendous strain on the Centre’s finances. The 14th FC has recommended a record increase of 10% in the devolution of the divisible pool of resources to states. This compares with the marginal increases made by previous Finance Commissions. The total devolution to states in 2015-16 will be significantly higher than in 2014-15. This naturally leaves far less money with the Central Government. However, we have taken the recommendations of the 14th FC in a positive spirit as they strengthen your hand in designing and implementing schemes as per your priorities and needs.
In making its recommendations, the 14th FC has made a fundamental shift in the pattern of financing revenue expenditures. It has assumed all central assistance to State Plan Revenue expenditure to be part of the states’s revenue burden and determined devolution on this basis. Para 7.43 of its report explains this. The dominant view of states too has been that a majority of the resources should flow as tax devolution and the number of CSS should be reduced as the 14th FC states in Paras 8.6 & 8.7.
Therefore, there is a shift from scheme and grant based support from the Central Government to a devolution based support. Hence, the devolution of 42% of divisible resources.
Therefore, as per the 14th FC, all State Plan Revenue expenditure has to be met from the resources being devolved to states. In spite of this large devolution, we have decided to continue with some support to topmost areas of national priority such as poverty elimination, MNREGA, education, health, rural development, agriculture and a few other areas.
You will appreciate that, following the acceptance of the 14th FC recommendations, we are moving away from rigid centralised planning, forcing a ‘One size fits all’ approach on states. States have always been voicing their opposition to this philosophy for years. Accepting these long standing concerns and long-felt lacunae in the country’s planning process, our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development. The additional 10% of resources being devolved will give you this freedom.
In this overall context when you are flush with resources, I would like you to have a fresh look at some of the erstwhile schemes and programmes supported by the centre. States are free to continue or change these schemes and programmes as per their discretion and requirement. In all these, the Union Government, particularly the NITI Aayog, will support states in developing a strategy and in its execution through ideas, knowledge and technology.
This is all towards the fulfilment of my promise of co-operative federalism. As you have already seen, we have decided to involve states in discussing and planning national priorities. This is being done so as to maximise the outcome from every rupee spent either at the centre or the state. It was with this spirit of Team India that all Chief Ministers have been made equal partners in the Governing Council of NITI Aayog. This is our strategy to take the country to a faster and yet inclusive growth trajectory through co-operative federalism which is real and true federalism.
We are happy with our decision and that resources are going to the right place. Resources are going to states to ensure that poverty is eliminated, jobs are created; houses, drinking water, roads, schools, hospitals and electricity are provided. This has never happened in this country before.
In addition, we have recently revised the rates of royalty on minerals which benefits many states. The ongoing transparent auction of coal and other minerals will result in flow of over Rs 1 lakh crore of additional funds to mineral and coal bearing states. Eastern India, which is less developed in spite of having immense mineral resources, is an important gainer and this is an opportunity for this part to catch up with the rest of the country.
Resources, thus, are not and will not be a problem. The issue is the direction and intent of our policies and our capacity to implement. You will agree that money, either at the central or the state level, should be spent to address the key challenges before the Nation. The focus should be the poor, farmers and common men and women, the youth and children. The challenge is to address the factors which inhibit the realisation of their full potential.
This is a golden opportunity in our nation’s economic development process. My recent visits across the world have shown that there is a lot of optimism about India and interest in investing here. Everyone wants to partner with India in its growth story. This is not an opportunity for the central government, but an opportunity for India as a whole.
Let us aim at a quantum leap in the process of our nation’s development. I am writing this to you in order to seek your co-operation and involvement in defining key challenges facing your state and the country and to devote the time, energy and resources to address these. I expect that every state will come up with a plan for its key priorities and deploy resources for this purpose. We should also adopt a rigorous system of evaluation of schemes and projects. I will work with you in this effort. Together, we have to establish benchmarks in terms of quality of works and their speedy execution.
Let us work together in this direction. I will be available for any consultation in this regard at any time.”
Record increase in devolution of resources to states
PM: Our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development.
The Prime Minister, Shri Narendra Modi, has written to Chief Ministers, informing them of the Government`s decision to wholeheartedly accept the recommendations of the 14th Finance Commission. Following is the text of the Prime Minister`s letter:
“You are aware that ever since our Government came into office, I have been working to strengthen our federal polity and promote cooperative federalism. The people of the country have high expectations from their governments and do not want to wait. Therefore, since the very beginning, we have been committed to a rapid and inclusive process of growth. Looking to the diversity of the country, we understand that real and functional Federal Governance is the only vehicle to achieve this objective quickly and holistically.
I sincerely believe that strong states are the foundation of a strong India. Even as Chief Minister, I had been saying that the progress of the country depends on the progress of states. This Government is, therefore, committed to the idea of empowering states in all possible ways. We also believe that states should be allowed to chalk out their programmes and schemes with greater financial strength and autonomy, while observing financial prudence and discipline. We are clear that without this, local development needs cannot be met and marginalised communities and backward regions cannot be brought into the mainstream.
With this in mind, we have replaced the Planning Commission with the NITI Aayog with the explicit intent of ensuring that this becomes a common forum for forging a national vision on development. Such a vision and the concrete steps that all of us take will help in realising the development aspirations of our people.
It is in this context that we have wholeheartedly accepted the recommendations of the 14th Finance Commission, although it puts a tremendous strain on the Centre’s finances. The 14th FC has recommended a record increase of 10% in the devolution of the divisible pool of resources to states. This compares with the marginal increases made by previous Finance Commissions. The total devolution to states in 2015-16 will be significantly higher than in 2014-15. This naturally leaves far less money with the Central Government. However, we have taken the recommendations of the 14th FC in a positive spirit as they strengthen your hand in designing and implementing schemes as per your priorities and needs.
In making its recommendations, the 14th FC has made a fundamental shift in the pattern of financing revenue expenditures. It has assumed all central assistance to State Plan Revenue expenditure to be part of the states’s revenue burden and determined devolution on this basis. Para 7.43 of its report explains this. The dominant view of states too has been that a majority of the resources should flow as tax devolution and the number of CSS should be reduced as the 14th FC states in Paras 8.6 & 8.7.
Therefore, there is a shift from scheme and grant based support from the Central Government to a devolution based support. Hence, the devolution of 42% of divisible resources.
Therefore, as per the 14th FC, all State Plan Revenue expenditure has to be met from the resources being devolved to states. In spite of this large devolution, we have decided to continue with some support to topmost areas of national priority such as poverty elimination, MNREGA, education, health, rural development, agriculture and a few other areas.
You will appreciate that, following the acceptance of the 14th FC recommendations, we are moving away from rigid centralised planning, forcing a ‘One size fits all’ approach on states. States have always been voicing their opposition to this philosophy for years. Accepting these long standing concerns and long-felt lacunae in the country’s planning process, our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development. The additional 10% of resources being devolved will give you this freedom.
In this overall context when you are flush with resources, I would like you to have a fresh look at some of the erstwhile schemes and programmes supported by the centre. States are free to continue or change these schemes and programmes as per their discretion and requirement. In all these, the Union Government, particularly the NITI Aayog, will support states in developing a strategy and in its execution through ideas, knowledge and technology.
This is all towards the fulfilment of my promise of co-operative federalism. As you have already seen, we have decided to involve states in discussing and planning national priorities. This is being done so as to maximise the outcome from every rupee spent either at the centre or the state. It was with this spirit of Team India that all Chief Ministers have been made equal partners in the Governing Council of NITI Aayog. This is our strategy to take the country to a faster and yet inclusive growth trajectory through co-operative federalism which is real and true federalism.
We are happy with our decision and that resources are going to the right place. Resources are going to states to ensure that poverty is eliminated, jobs are created; houses, drinking water, roads, schools, hospitals and electricity are provided. This has never happened in this country before.
In addition, we have recently revised the rates of royalty on minerals which benefits many states. The ongoing transparent auction of coal and other minerals will result in flow of over Rs 1 lakh crore of additional funds to mineral and coal bearing states. Eastern India, which is less developed in spite of having immense mineral resources, is an important gainer and this is an opportunity for this part to catch up with the rest of the country.
Resources, thus, are not and will not be a problem. The issue is the direction and intent of our policies and our capacity to implement. You will agree that money, either at the central or the state level, should be spent to address the key challenges before the Nation. The focus should be the poor, farmers and common men and women, the youth and children. The challenge is to address the factors which inhibit the realisation of their full potential.
This is a golden opportunity in our nation’s economic development process. My recent visits across the world have shown that there is a lot of optimism about India and interest in investing here. Everyone wants to partner with India in its growth story. This is not an opportunity for the central government, but an opportunity for India as a whole.
Let us aim at a quantum leap in the process of our nation’s development. I am writing this to you in order to seek your co-operation and involvement in defining key challenges facing your state and the country and to devote the time, energy and resources to address these. I expect that every state will come up with a plan for its key priorities and deploy resources for this purpose. We should also adopt a rigorous system of evaluation of schemes and projects. I will work with you in this effort. Together, we have to establish benchmarks in terms of quality of works and their speedy execution.
Let us work together in this direction. I will be available for any consultation in this regard at any time.”
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Categories : Business, Uncategorized
SUSEPNSION OF SHRI SHASHI SHANKAR, DIRECTOR (T&FS)
25 02 2015
GOVERNMENT ORDERS SUSEPNSION OF SHRI SHASHI SHANKAR, DIRECTOR
(T&FS) Shri Shashi Shankar, Director (T&FS), ONGC has committed
gross misconduct while dealing with a tender for Procurement of Twenty
One Blowout Preventers (BOP). He has been associated with this tender as
GGM and OSD to Director (T&FS) and from 01.01.2012 as Director
(T&FS).Taking strong note of the lapses the Government on 23rd
February ordered suspension of Shri Shashi Shankar with immediate effect
to ensure fair and transparent inquiry.
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Categories : Business, CSR
In Czech Republic gunman fires at restaurant
25 02 2015
8 killed in Czech Republic as gunman fires at restaurant
Feb 25
In the Czech Republic, a gunman has opened fire at a restaurant, killing eight people before shooting himself dead. Officials say, the man burst into the Druzba restaurant in the eastern town of Uhersky Brod and started shooting indiscriminately. Some 20 people were thought to have been in the restaurant at the time. Police described it as the worst mass shooting incident on record. Czech Interior Minister Milan Chovanec said it was not a terrorist attack.
In the Czech Republic, a gunman has opened fire at a restaurant, killing eight people before shooting himself dead. Officials say, the man burst into the Druzba restaurant in the eastern town of Uhersky Brod and started shooting indiscriminately. Some 20 people were thought to have been in the restaurant at the time. Police described it as the worst mass shooting incident on record. Czech Interior Minister Milan Chovanec said it was not a terrorist attack.
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Categories : Business
Luthuania to restore compulsory military service for young men
25 02 2015
Luthuania to restore compulsory military service for young men amid mounting tension in Ukraine
Feb 25
Luthuania will restore compulsory military service for young men as tensions in Ukraine continue to worry the small Baltic nation. After a meeting of military leaders and top government officials, President Dalia Grybauskaite said the measure is necessary because of growing aggression in Ukraine. Military officials said Lithuania will reinstate national service for five years starting in September. They will serve for nine months. The country has some 15,000 troops, down from nearly 39,000 it had before joining the alliance in 2004, and has no military aircraft or tanks.
Luthuania will restore compulsory military service for young men as tensions in Ukraine continue to worry the small Baltic nation. After a meeting of military leaders and top government officials, President Dalia Grybauskaite said the measure is necessary because of growing aggression in Ukraine. Military officials said Lithuania will reinstate national service for five years starting in September. They will serve for nine months. The country has some 15,000 troops, down from nearly 39,000 it had before joining the alliance in 2004, and has no military aircraft or tanks.
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Categories : Business
India’s candidature for permanent membership of reformed UNSC
25 02 2015
Obama endorses India’s candidature for permanent membership of reformed UNSC
Feb 25
US President Barack Obama has endorsed India’s candidature for the permanent membership of the reformed UN Security Council. White House Press Secretary Josh Earnest said yesterday that India’s permanent membership to the UN security council is among a variety of other important reforms to the United Nations that Mr Obama has endorsed. Mr Earnest, however, said that he has no updates on the status of the ongoing reforms to the UN or efforts to try to bring about some of those reforms. During his India visit last month, the US President had reaffirmed his support for a reformed UN Security Council with India as a permanent member.
US President Barack Obama has endorsed India’s candidature for the permanent membership of the reformed UN Security Council. White House Press Secretary Josh Earnest said yesterday that India’s permanent membership to the UN security council is among a variety of other important reforms to the United Nations that Mr Obama has endorsed. Mr Earnest, however, said that he has no updates on the status of the ongoing reforms to the UN or efforts to try to bring about some of those reforms. During his India visit last month, the US President had reaffirmed his support for a reformed UN Security Council with India as a permanent member.
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