A renewal of concern about fiscal management in India is partly due to the resurgence of populism even in a post-election year. Instead of working to reduce the subsidy bill, various political elements seem to be pushing for even higher subsidies. The recent decision of a group of ministers to absorb higher import and production costs of fertilisers by raising subsidy, rather than increasing prices, is just one example. Some...

Demand stronger policies and end to disinvestment of public sector A “Workers' March to Parliament” in the Capital on Wednesday saw a heavy turnout of workers of various central trade unions protesting against price rise, unemployment, labour law violations and disinvestment. The participating organisations included the Centre of Indian Trade Unions, the Indian National Trade Union Congress, the All-India Trade Union Congress (AITUC), the Hind Mazdoor Sabha, the All-India United Trade...

The Government has revised the wages for unskilled manual workers under the national rural employment guarantee scheme by indexing it to inflation, Rural Development Minister Vilasrao Deshmukh said today. He told the Rajya Sabha during Question Hour that the original National Rural Employment Guarantee Act provides for wages to be indexed to the Consumer Price Index for agricultural labour. Against the Rs 100 per day wages originally approved, actual wages given are...

In an address to the Berlin Agriculture Ministers meeting last month, World Trade Organisation (WTO) Director General Pascal Lamy said export restrictions are a prime cause of recent surges in global food prices, and countries should find other ways of securing domestic supplies (“WTO chief: Alternatives to food export curbs needed”, Business Standard, January 23). Though export restrictions are an important contributor to rising food prices, they are by no...

President Pratiba Patil today said the Centre is consulting state governments on the proposed National Food Security Act (NFSA), which will give the poor a legal entitlement to subsidised foodgrains. “The states are being consulted as the success of the programme (NFSA) hinges critically on their commitment to reforms in the public distribution system (PDS),” Ms. Patil said in her address to Parliament to mark the beginning of the Budget Session. The...