The government is thinking of letting the states cherry pick the central schemes for rural welfare, a step back from centralized decision-making that it hopes could help quell the accusations that Centre was weakening the federal structure. The idea behind the 'flexifund route' is to allow states the freedom to decide rural development schemes they want to implement and how much of allocation should each get. It would mark a departure...

A moratorium is not the magic bullet that can slay Bengal’s fiscal demons, several economists have said, pointing out that postponing the inevitable will be of little use unless backed up by a revenue mobilisation road map. Chief minister Mamata Banerjee had yesterday set a 15-day deadline for the Centre to announce a three-year moratorium on the payment of interest on the loans Bengal had taken. “A moratorium on repayment obligations can...

-The Economist West Bengal’s populist chief minister is doing badly. Yet she typifies shifts in power in India BUYER’S remorse is common enough in the dusty markets of Kolkata, a delightful if crumbling great city, once known as Calcutta and still capital of the state of West Bengal. Those who buy cheap plastic goods or plaster-of-Paris busts of Rabindranath Tagore, Bengal’s cultural hero, may come to regret their haste. Likewise, many who...

At a recent meeting in Kolkata, finance minister Pranab Mukherjee threw up his hands for not being able to present a bold Budget because of coalition politics. Indeed, Mamata Banerjee of the Trinamool Congress, a coalition partner, has been a thorn in the side of the UPA. She enjoys a veto on nearly everything that the government wishes to do. If such are the compulsions of coalition politics, should we not...

Court settles the class issue, but the real challenges of RTE have to be met The debate over the Right to Education is beginning to display characteristic symptoms of Indian debates. Elites are inventing specious arguments to condone the economic apartheid in the current system. But India’s self-appointed anti-elites are often even more elitist. They are more fixated on taking down elites a peg or two rather than intelligently fixing real...