The budget for the next fiscal is likely to step up the target for farm credit to 4,50,000 crore, up 20% from the current year's 3,75,000 crore. With the agriculture sector seen growing at 5.4% in the current fiscal, the government will push banks to disburse more to the sector to maintain the momentum, said a senior government official. The upheavel in the micro-finance sector will also necessitate greater lending by banks. "The...

There are many critics and sceptics with respect to the Mahatma Gandhi National Rural Employment Guarantee Scheme, which came into being because of political pressure that managed to overcome quite strenuous opposition from some of the most influential policy making circles. It is likely that much of this criticism is not really because of the declared reasons, like fiscal costs (which are thus far very little) and potential leakage. Rather,...

Regulation in India's microfinance sector aims to address feckless borrowing and reckless lending – but will the new restrictions entrench poverty, rather than end it? One of the many crushing burdens for India's poor bear is debt; unable to make ends meet, they turn to traditional moneylenders. They are willing to extend credit, but at unconscionably high rates – sometimes exceeding 80%, and keeping borrowers in lifelong penury. Popular cinema and...

If the Unique Identity project is such a good thing why is the man heading it unable to answer simple questions about it? Since the publication of his doorstopper of a book Imagining India in 2009, Nandan Nilekani has done a superb job of reinventing himself. The former head of software giant Infosys Technologies was overnight cast in the role of a visionary with his unabashedly free market prescription to turn...

The late Rajiv Gandhi famously, or infamously, once claimed that only 15 per cent of the funds allocated to welfare programmes ever reached the intended beneficiaries. The rest leaked enroute, entering the pockets of an assortment of intermediaries. This is a thought that the Union finance minister must always remember, especially when he sits down to allocate funds for an assortment of subsidies and some of the high-profile spending programme...