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Motive behind demonetisation is justifiable but there may be collateral damage

There are reports from all over the country that the recent decision by the government to demonetise currency notes of Rs. 500/- and Rs. 1000/- denomination has affected everyone. However the consequence of this financial measure is lopsided and it will be mainly borne by the farmers, informal sector workers, women and the financially excluded.   Please check the links/ urls below this news alert to know everything about demonetisation. Till a few...

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Centre joins issue with CAG over LPG

-The Hindu The Centre had carried out an exercise to eliminate duplicate, fake, ghost, and inactive accounts New Delhi: The Petroleum Ministry has issued a rebuttal claiming its calculations were correct on the savings on account of direct benefit transfer in LPG cylinders tabled in Parliament. A report by the Comptroller and Auditor General had questioned the method arrived at on the savings, more than 10 days ago. The report, tabled on August 12,...

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CAG audit nails Centre’s claim on LPG subsidy saving -Josy Joseph and TCA Sharad Raghavan

-The Hindu The audit has also found substantial systemic problems with the Direct Benefit Transfer in LPG scheme, called Pahal by the government. The Centre claims it would end up saving almost Rs. 22,000 crore in the financial years of 2014-15 and 2015-16 since launching its two-pronged approach on cooking gas subsidy — introducing direct bank transfers of the subsidy and asking better off consumers to voluntarily give up theirs. However, a CAG...

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The indirect benefits transfer -Jayati Ghosh

-The Hindu India’s record in collecting taxes has been pathetic, and it is getting worse. The declining rates of direct taxation are an indication of the political choices of the government We now have a peculiar combination in the economic policy of India: a declared attempt at fiscal consolidation, combined with a reluctance to do what it takes to raise tax revenues. This unfortunate juxtaposition has meant a squeeze on Central government...

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Budget 2016: Behind the Symbolism

-Economic and Political Weekly The Modi government tries hard to signal a makeover but beyond the symbolic it does not change much. Budget 2016 is not important for the proposals that it has made but for what it tries to signal about the proposed makeover, in a limited way, of the Narendra Modi government. The budget does try hard to claim that the Modi government is not a “suit-boot” administration, an image...

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