One man’s fiscal problem is another man’s lifeline. Trigger happy bureaucrats and economists may love shooting down subsidies because it bloats the fiscal deficit and burdens the government but the simple fact is that in a one billion strong nation, in which nearly one in every three live below the poverty line, one needs an effective and efficient method through which privileged tax payers can support the poor. Last week, finance...

IN preparing the approach paper to the Twelfth Five Year Plan, the Planning Commission engaged “all interested persons” in the country in a wide, web-based consultative exercise and also involved a varied group of “stakeholders”. The resulting document clearly indicates some awareness of the complex problems likely to be faced by the economy in the coming period. But it falls short of expectations because it does not provide a cohesive...

Larry Summers, the recently departed Chairman of US President Barack Obama’s National Economic Council, posed the following question before his trip to India last November: “What is the self-perception of the Congress as a political party?” In fact, this broad question provokes three specific ones in the domain of economics. Is the Congress the party of Jagdish Bhagwati or Amartya Sen; Nehru or Indira Gandhi; or Aruna Roy or Nandan...

With 80 per cent of the world’s people lacking adequate social protection and global inequalities growing, top United Nations officials are calling for a new era of social justice that offers basic services, decently paid jobs, and safeguards for the poor, vulnerable and marginalized. “Social justice is more than an ethical imperative; it is a foundation for national stability and global prosperity,” Secretary-General Ban Ki-moon said in a message ahead of...

Hopes of an early respite from mounting price pressures have been belied by inflation numbers released on Wednesday. The wholesale price index for June 2010 is up 10.55% against a rise of 10.16% in May. Worse, the number for April has been revised up from 9.59% to a 19-month high of 11.23%. If the same order of revision continues , the June number could well cross 12%, a dangerously high...