-Press Information Bureau/ Ministry of Finance Economic Outlook, Prospects and Policy Challenges Macroeconomic fundamentals in 2014-15 have dramatically improved. Highlights are: * Inflation has declined by over 6 percentage points since late 2013. * The current account deficit has declined from a peak of 6.7 percent of GDP (in Q3, 2012-13) to an estimated 1.0 percent in the coming fiscal year. * Foreign portfolio flows have stabilized the rupee, exerting downward pressure on long-term interest...

-The Indian Express Having decontrolled petrol and diesel, the government's next focus is on containing fertiliser subsidies. Key to this is decontrol of urea and ushering in a system of crediting subsidy payments directly into the bank accounts of farmers. HARISH DAMODARAN explains the existing subsidy regime and the road ahead. * What's so special about urea decontrol? Urea is the only fertiliser whose maximum retail price (MRP) is still fixed...

-The Indian Express The Centre is reportedly considering decontrol of urea over a period of three years, at the end of which retail prices would be totally market-determined, with farmers getting a fixed per-bag subsidy to be credited directly to their bank accounts. If this happens, it will probably be the most politically challenging economic reform the Narendra Modi government undertakes. Given the crash in global oil prices, decontrol of diesel...

Documents availed through RTI reveals that the Rural Development minister Shri Nitin Gadkari has ordered to bring drastic changes in the schedule of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which includes changing the labour to material ratio and restricting the implementation of MGNREGA in 1/3rd of backward blocks in India (please click here to access a note on labour-material ratio prepared by People's Action for Employment Guarantee-PAEG). The MoRD has notified the...

-The Times of India NEW DELHI: Overriding objections raised by senior officials, rural development minister Nitin Gadkari has ordered far-reaching changes in the job guarantee scheme (MGNREGS) which has provided seasonal work to one in three rural households in the last eight years. Documents obtained under the Right to Information (RTI) Act by activists show file notings by a senior official in the ministry arguing that Gadkari's announcements run contrary to the...