-Economic and Political Weekly   Budget 2012, built yet again at the altar of fiscal fundamentalism, will not convince anybody. In this era of immediate assessment it took just a few minutes for the Union Budget for 2012-13 to be given one or the other negative appellation – “lacklustre”, “anti-growth”, “back to the 1980s”, “without reform” and the like. Such evaluations forget that union budgets have long since ceased to be statements of...

In an interview with Mint in February, Jairam Ramesh, minister of rural development, was asked whether the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) would be rolled back in the upcoming budget as part of a plan to reduce the fiscal deficit. “How can we roll back a demand-driven programme?” Ramesh had replied. But that is precisely what seems to have happened. On Friday, finance minister Pranab Mukherjee announced a...

The huge expenditure on the food bill, with the attendant leakages, could well make fiscal recovery impossible In the first part of this article, we have estimated the actual cost of implementing the food security bill in its current form. In this part, we now examine the fiscal sustainability of the same. The current state of the revenue and expenditure trends of the Central government (refer table) show that while revenue...

The mask is off. Team Anna and his lieutenants are batting for the BJP On 30 October last year, when Mohan Bhagwat claimed that Anna Hazare’s anti-corruption movement was actually supported by the RSS, the remark conveyed palpable nervousness and attracted criticism from Team Anna. Three months later, as Team Anna launches its voters’ awareness campaign in UP, there is not even an attempt to keep its secular mask intact. The mask,...

-The Business Standard Govt policy is warping farm output mix The crop output estimates for 2011-12 put out by Krishi Bhawan last week – even while projecting a record foodgrain output that would cross the 250 million-tonne mark for the first time – reveal some worrisome inter-commodity imbalances as well. The harvests of wheat and rice – both of which are facing the prospect of a glut with the official grain coffers...