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Controlling Inflation by Dipankar Dasgupta

The Union budget estimates the nominal rate of growth for the Indian economy to be 12.5 per cent during the current fiscal. While it is impossible to figure out the manner in which this number was arrived at, the government has predicted further that the inflation-adjusted real growth rate for the same year will be eight per cent. Simple arithmetic requires that the difference between the nominal and real growth...

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Food subsidy bill likely to rise by Rs 6,000 cr in FY11 by Prabha Jagannathan

THE government will need to shell out Rs 6,000 crore more in food subsidy to support poor families under the proposed Food Security Act due to the revised estimate of the number of poor families in the country. Food subsidy will account for about 1.1% of the gross domestic product in the current fiscal year, compared with 0.9% last year, said a study by Deutche Bank. The Union budget has...

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Hard to stomach by Biraj Patnaik

As the nation debates the National Food Security Act (NFSA) and its implications on food security for the country, it is pertinent to pause for a moment and ponder some of the structural reasons for the mismanagement of the food economy of the country. Forget the past or the future or even the present set of policies being pursued. The UPA-II is pushing the nation inexorably towards a regime of...

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‘Govt may defer subsidized food price hike’

India may keep on hold plans to raise prices of subsidised food grains for welfare schemes to cut its subsidy bill, unwilling to take an unpopular step when inflation remains high, a government source said on Thursday. The senior food ministry official, who did not wish to be identified, told Reuters the proposal was before the Union cabinet and “seems to be put in abeyance for the moment”. He was responding to...

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Vision 2010: a dangerous myopia by Amiya Kumar Bagchi

The Central budget of 2010-11 is a further step in the realisation of a vision of India vibrant with the income, wealth, saving, education and the entrepreneurial energy of the top 5-10 per cent of the population and the rest of Indians, serving that minority and surviving as barely literate, malnourished multitude.  With the accession of Rajiv Gandhi to power, a vision began to germinate. That vision was that of...

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