When a massive sum of public money is spent on a programme like Mahatma Gandhi Rural Employment Guarantee Programme (MGNREGA)--a demand-driven programme, there is likelihood of financial misappropriations and mismanagement. Thankfully there are checks and balances in the rural employment guarantee legislation to counter such malpractices. It is worth noting that the total allocation under the Mahatma Gandhi Rural Employment Guarantee Programme (MGNREGA) for 2020-21 was Rs. 1,11,500.00 crore (R.E.), up...

-The Hindu The government’s announced fiscal policy stance and the fiscal regime it is running seem contradictory There used to be a time — and this was well before India began to globalise — when each Union Budget announced sales tax increases on tobacco products, especially cigarettes. The demand for cigarettes being somewhat inelastic, the rise in tax was expected to be a shot in the arm for the revenue-starved government of...

In order to understand why the Union Budget 2021-22 is being termed as ‘transparent’, it has to be read simultaneously with the 15th Finance Commission Main Report for 2021-26. But first, let us discuss 'fertilizer subsidy'. The Budget Documents for Union Budget 2021-22 show that the spending on ‘fertilizer subsidy’ was slashed from Rs. 1,33,947 crore in 2020-21 (revised estimate) to Rs. 79,530 crore in 2021-22 (budget estimate). However, the budgetary...

-Press released by Right to Food Campaign dated 3rd February, 2021 In its press release dated 3rd February, 2021, Right to Food Campaign has stated that the Union Budget 2021-22 reduced financial allocations for crucial social security schemes such as the Integrated Child Development Services (ICDS), midday meals, maternity entitlements, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Please click here to access the press release. Kindly click here, here, here...

-Hindustan Times Here are three charts which can help us understand this. If there is one point on which the Union Budget 2021-22 has received bipartisan praise, it is the fiscal transparency it has brought into budgetary calculations. By bringing hitherto uncounted expenditure heads into the budgetary numbers, and accounting for past dues, the budget has done away with the dubious practice of artificially underreporting the fiscal deficit numbers. While this is a...