food inflation, hovering in the double digits, may play spoilsport to India’s ability to continue its rapid economic growth. It is truly troubling that food still consumes half of the expenditure of the average Indian household. No wonder a sharp spike in onion prices has the potential to upset the political calculus of social stability. India’s biggest challenge still remains ensuring food and nutritional security to its masses. Notwithstanding the nation’s...

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...

Lashing out at the United Progressive Alliance-II for following anti-people policies and not even sparing school-going children in the general budget by levying taxes on their textbooks and stationary, Communist Party of India (Marxist) leader Brinda Karat on Thursday urged the government not to blame the poor for the food inflation. “By attributing the rise in prices to increasing consumption by the poor, the government is putting the blame for food...

Would you rather buy a necessity like kerosene or food grains at a subsidy or receive an equivalent amount of cash instead? Would you prefer that the government decides your consumption pattern rather than figuring out on your own how to spend your income? One of the “big ticket” reform items in the budget was the announcement that subsidies on kerosene, fertilizers and Liquefied Petroleum Gas and delivery through the Public...

Social priorities have received scant fiscal attention There is good reason to feel let down by this year’s budget for the advancement of social sectors. The disappointment is more given that the Union finance minister opened his speech by stating that “we are reaching the end of a remarkable fiscal year” and followed it up by immediate assertions that “growth in 2010-11 has been swift and broad-based”, that “the economy...