Should the Central government run schools, crèches, pre-schools, dispensaries, employment schemes, the buying and selling of food grains, and build houses, not to speak of selling milk as it does in Delhi? Though the states seem to have taken it as their fate to have schemes on state subjects like education, agriculture and so on tailored for them by the Centre, as if in distrust of the states’ capability to think...

Small farmers granted waiver by 2008 central scheme win a roller-coaster legal battle In A significant ruling, the Gujarat High Court has granted loan waiver and relief of around Rs 22 crore to 312 farmers who got these loans from an urban co-operative bank for direct agricultural and allied activities under a central scheme. The court also held that no new condition can be added by the HC to a scheme...

In line with finance minister Pranab Mukherjee’s budget announcement on Monday that the government is looking at direct cash transfers as an alternative to the current subsidy on kerosene and fertilizers and to prevent leakages, the Unique Identification Authority of India (UIDAI) is planning to open Aadhaar-linked bank accounts for the purpose. These can be used for other financial transactions as well. The authority is in the process of empanelling banks...

The government has enhanced credit to the agriculture sector by Rs 1 lakh crore in the Budget but the pressure to meet the target has been showing on the bottom lines. All government banks are reporting an increase in their bad debts on farms loans ranging between 80% and 2000% in the first nine months of 2010-11. State Bank of Bikaner and Jaipur reported the highest increase in non-performing assets...

Pranab Mukherjee, India’s finance minister, put the rural economy at the heart of a national budget on Monday, saying ridding the farm sector of crippling supply bottlenecks would be his “focus” in the coming fiscal year.A market-neutral budget supporting agriculture, welfare schemes and the extension of banking services to more people was designed to dispel any sense that the Congress party-led government was in drift after a series of high...