The Finance ministry has offered only a 12% increase in the budgetary support to the central plan for the coming fiscal against the Planning Commission's demand for an 18% hike. The plan panel sought higher support, citing increased requirement for the flagship schemes, particularly MGNREGA, or Mahatma Gandhi National Rural Employment Guarantee Act . The North Block, constrained by its compulsion to return to fiscal consolidation and additional expenditure due...

The Centre may announce a tax amnesty scheme to bring back black money stashed in banks abroad, Finance minister Pranab Mukherjee hinted today. He declined to share the names of those who have black money in foreign banks “as it violates international law”. By one estimate, anything between $450 billion and $1.5 trillion is in these accounts. Mukherjee’s news conference was called today at the behest of Prime Minister Manmohan Singh who...

The present situation is different from that of 2007-2008, although recent climatic events may significantly reduce agricultural production next season. Must history always repeat itself? We are indeed on the verge of what could turn out to be another major food crisis. The FAO Food Price Index at the end of 2010 returned to its highest level. Drought in Russia and the export restrictions adopted by the government, together with...

The International Monetary Fund has warned that India faces a range of “money laundering and terrorist financing risks” and remains a “significant” target of militant groups. In a report, the IMF appreciated New Delhi’s efforts to tackle the twin problems but raised concerns over the absence of convictions for money laundering. The report drawn on July 2010 was released on Monday. “As a leader among the emerging economies in Asia with a strongly...

A thriving black market in kerosene, estimated to be worth Rs 10,000 crore every year, killed additional collector Yeshwant Sonawane. A litre of kerosene sold at ration shops is often costlier than a bottle of packaged water. Most of this "poor man's fuel" is pilfered and sold in the black market for a price that's two or three times higher. It's really money for jam. Sonawane tried to meddle with this...