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The Comptroller and Auditor General of India has recommended either to improve the performance or consider closure of the Madhya Pradesh Government's nine companies having poor turnover in the last fi
To check undue proliferation of special economic zones (SEZs), approval given to such enclaves should be cancelled if they do not start functioning within a timeframe, a key finance ministry official
Fish invasion
The Rajya Sabha on Wednesday witnessed noisy scenes with MPs, cutting across party lines, targeting the Government on the issue of Special Economic Zones (SEZs).
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Urging the people from the cross-sections of the society not to ponder much over what the Northeast region got and what it did not from the recently announced General Budget, Prof Dr Madhurjya Bezbaruah of Gauhati University instead said that the focal point should now be to keep a close eye on the implementation aspect, which would eventually determine the growth of the country as a whole and the Northeast in particular. Calling the General Budget as an election Budget, Dr Bezbaruah stressed on the need for an inclusive growth by bridging the gap between the haves and the have-nots, which is one of the biggest challenges before the 11th Five Year Plan. Dr Bezbaruah was speaking during a discussion on the recently announced General and Railway Budgets, which was organised under the aegis of the All Assam Students' Union and the Asom Unnati Sabha. The Northeast, especially Assam, in recent times, has witnessed a phase where a series of development schemes has been initiated, but when it comes to the implementation of the schemes, there has always been a question mark. "A proper implementation monitoring system is what we need at this moment,' he pointed out. He also rued over the fact that unlike some of the other educational institutes of the country, some of the oldest and premier educational institutes of the State like the Cotton College and the Gauhati University had failed to draw the attention of the Union Finance Minister, which is a matter of concern. Dr Bezbaruah also took an exception to the Union Finance Minister's decision to waive off loans of the farmers, stating that it might well destroy the rural loan market. "The Government can help the cause of farmers by encouraging bank and institutional loan system,' he pointed out. RS Joshi, director, FINER, while echoing the concerns of Bezbaruah, further said that political aspirations have overtaken the recently announced General Budget. He, while mentioning that the allocation for the North East in the Budget has remained more and less stagnant, further called for giving stress on the service sector which contributes heavily to the country's economy. "Though the country's overall GDP growth is 8.7 per cent, the north-eastern States' growth rate is however lagging behind,' Joshi stated, adding, "The North East has to be in the scheme of things of the Union Government if the regional imbalances in the country are to be bridged.' S Borborah of Indian Institute of Technology, Guwahati, while stressing the need for expediting infrastructure development, said, "More than allocation, evaluation and monitoring of various projects is what can produce greater dividends.'
The Union budget has sought to send a message that the government will do all it can to rein in inflation even while maintaining the growth momentum. The Prime Minister had made the point earlier that no government can be oblivious to the objective of ensuring price stability without hurting the growth process. However, as all recent monetary policy statements have been articulating, the pursuit of both the objectives calls for a deft balancing of the often conflicting options. For instance, higher interest rates are necessary to contain inflation but are detrimental to economic growth. It is clear from the budget proposals that the fiscal policy too is seized of a similar urgency in stimulating an economy that is slowing down and vulnerable to a resurgent inflation. There are downside risks from the external environment. While the consequences of the U.S. sub-prime crisis on the Indian economy are not yet clear, high food and commodity prices, including that of oil, pose significant supply side risks and are inflationary. The budget envisages several measures to boost domestic consumption. One of the key drivers of the spectacular GDP growth over the past four years, private domestic consumption has been lagging during the current year. The adjustment in income tax slabs should increase the disposable incomes of the middle class estimated at 250 million. The considerable step-up in the allocation of funds for Bharat Nirman and other social sector schemes will also boost consumption. So will the reduction in CENVAT and specific excise duties such as those on small cars and two wheelers. Over the past 18 months, domestic interest rates have risen as the RBI pursued a vigorous anti-inflation policy. Both consumption and manufacturing have been adversely affected. The government's commitment to fiscal rectitude should help ease interest rates. In fact, a vastly improved picture of public finance is seen in the lower public borrowing projections for 2008-09. However, the off-budget subsidies on food and petroleum do not figure in the government's estimates of the fiscal deficit. Also it is not clear how the government proposes to compensate the banks for the Rs.60,000 crore write-off of farm loans. Both public and private investments have been rising as a share of the GDP but their growth would seem likely to moderate. Continuing the attempts at removing infrastructural bottlenecks and upgrading the skills of the young workforce will help in removing supply-side bottlenecks. Along with the emphasis on agriculture and rural development, they hold the key to more inclusive growth with stability.
The SEZ Virodhi Manch has warned Chief Minister, Digambar Kamat that any attempts by the Ministers in his government or by other vested interests in Goa or by the Ministry of Commerce to foist the SEZs on Goa under any label or force the pace of industrialisation by any other scheme will be resisted by Goans will all their might. In a letter to the Chief Minister, the SEZ Virodhi Manch while appreciating the recommendation to the government of India to scrap all SEZs, including the three notified ones in Goa, has expressed deep concern about recent media reports suggesting that the promoters of notified SEZs should served show cause notices and that they should be invited for discussion on the payment of compensation. The Manch has said the Goa government should flatly refuse to pay compensation to the SEZ promoters. On the contrary, the Manch has asserted that the promoters should be compelled to pay heavy compensation to the people for rampant hill-cutting, land-filling, rock blasting and other destruction carried out on the allotted land without authorisation from the competent authority. "The GIDC has no authority under SEZ Act to issue any permission to do hill cutting or developers. Construction activities have taken place before the SEZs were notified. Hence, all the constructions initiated in the SEZs are illegal', the Manch maintained. Saying that bore-wells sunk by the SEZ promoters at Keri and Verna have affected sub-soil water levels in surrounding areas and that wells and springs have dried up, the Manch said this ecological disaster should be investigated and the promoters made to compensate the respective villagers. Requesting the Chief Minister to instruct the GIDC to cancel the land allotment they had made and to resume the land they had alloted, the Manch said the land can be utilised in the future for purposes only after involving the Gram Sabhas of the local Panchayats in all future procedures for the use of this land. Reminding the Chief Minister about the demand for a CBI inquiry into the fraudulent allotment of land to the SEZ promoters by the GIDC, the Manch said the criminal compliant made with the Goa police is yet to be registered as an FIR. "Such inaction on the part of the government gives reason for suspicion', the Manch said and hoped the government does not force Goans to resort to agitations again to seek justice.
There were no gasps of surprise when Palaniappan Chidambaram, Indian finance minister, unveiled a populist budget aimed at boosting the chances of the Congress-led governing alliance in the general el
