The Comptroller & Auditor General (CAG) of India, Vinod Rai, on Sunday said that the audit mandate should be expanded to bring all public expenditure within its purview.   “There is a need for amending the audit mandate of the CAG to bring all public expenditure, including projects under Public-Private Partnership (PPP) mode, within the purview of public audit,” Rai said. The statement comes days after Rai said that the credibility of the...

Real wages in the hinterland have stagnated despite zooming economy While the economy has zoomed along at an average of 7.2% of GDP in the last decade, real wages in the hinterland have stagnated. You would imagine that after a decade of impressive economic growth averaging around 7.2 per cent, rural populations would be beneficiaries to this story. However, wage patterns considered over the last ten years show that real wages (wages...

The media imagery of a “liberated” Red corridor extending from Andhra Pradesh, cutting across the heart of India, all the way to Nepal is the most vivid representation of the threat that Maoists pose to our country. The Prime Minister describes the Maoists as India's most serious internal security challenge and the Home Minister rates it as a “problem graver than terrorism.” In search of an effective response, official committees have,...

-Live Mint   As United Progressive Alliance chairperson Sonia Gandhi prepares to intervene next week in the great national debate about who is poor, she might want to visit north-eastern Mumbai to see how the poorest are not even classified as such and how a giant government scheme to save their children from malnutrition is failing. The nauseating stench from a mountain of garbage greets a visitor to Rafi Nagar at the base...

-Live Mint   The poor remain poor because they lack resources. And the formal finance sector does not want to lend them because they are too poor, costs are high and they hardly have anything to offer as collateral. That is, they are trapped in the vicious circle of poverty. This was so until the arrival of microfinance—successfully demonstrated by the Bangladesh model that the poor are “good” borrowers. It was held...