Just reclassified Rs 1.46 lakh crore of spending as capital investment. Finance Minister Pranab Mukherjee’s Budget for 2011-12 seems to have used a new accounting system to make a virtue of necessity. Committed to provide funds to run the Mahatma Gandhi National Rural Employment Guarantee Scheme or MGNREGS, Mukherjee has transferred the entire financial allocation for the scheme under a head that will now help him take credit for a reduced effective...

It is time for the National Advisory Council (NAC) to introspect whether its pious thoughts on food security square up to an economic reality check. There are three likely scenarios: (1) universal coverage at 35 kg/per month per family; (2) universal coverage with 25 kg per family per month; and (3) partial coverage (say, to 11 crore families) with 35 kg per family per month. In each case, the implications...

Tamil Nadu offers maximum economic freedom and Bihar the least among 20 of India's big states, according to a study released on Tuesday. The Economic Freedom of the States in India 2011 ranked the states based on the extent of wealth, administrative and social parameters in 2009. The USbased Cato Institute published the rankings in association with Indicus Analytics and the Friedrich Naumann Foundation. Both the states retained their positions...

India’s Supreme Court has questioned clearances to industries on the basis of environment impact assessments (EIAs) carried out by private consultants in the pay of project proponents. A special bench of the court led by Chief Justice S.H. Kapadia, that is hearing a petition challenging approvals granted to the French company Lafarge to mine limestone, likened the practice to "paying the piper to call the tune." Kapadia’s bench noted that every report...

Institutional apathy must not be allowed to creep into scheme Lapses can be reduced by ensuring kitchens in schools Noting diversion of funds and foodgrains under the ambitious Mid-Day Meal Scheme in Kerala, Jharkhand, Uttar Pradesh, Andhra Pradesh, Nagaland and Bihar, the Public Accounts Committee (PAC) has said confirmed cases of diversion are indicative of widespread fiscal indiscipline in implementing the scheme. Institutional apathy and lack of concerted efforts should not be...