The finance ministry is betting on substantial savings in some of the flagship social schemes and lower commodity prices to stay within the year's fiscal deficit target even as the central bank and economists raise the red flag over the Centre's finances. India's fiscal deficit, or the difference between expenditure and receipts that has to be met through borrowings, during the first four months jumped to 55% of the budgeted amount...

Bringing an aggressive outlook to the ministry of rural development, Jairam Ramesh, who took charge of the portfolio in July, has attempted to address and fast-track contentious issues such as the proposed land acquisition legislation and the census for identifying households below the poverty line (BPL). Ramesh spoke in an interview about his blueprint for the ministry and revisiting controversial elements, including identifying the poor and poverty caps imposed by...

Even as the Opposition parties' allegations of financial bungling in implementation of the National Rural Health Mission (NRHM) in Uttar Pradesh have pushed the Bahujan Samaj Party regime on the back foot, the Comptroller and Auditor General of India (CAG) has warned that direct transfer of funds from the Central Government to the State's implementing agencies is “fraught with the risk of their improper utilisation by these agencies”. The CAG report...

The Centre's food subsidy bill, incurred mainly on account of reimbursemnet of economic costs to theFood Corporation of India for grain procurement, holding and transportation, has shot up by a whopping Rs 34,738 crore compared to the budgetary allocation for 2011-12. This is mainly due to government buys of a record foodgrain crop in the 2010-11 agricultural year (july-june).The original subsidy for the year was estimated at Rs 47,239.8 crore....

As it is drafted, the Bill actually deprives people, and the State governments, of existing rights on multiple counts. The Food Security Bill finalised by a Group of Ministers should not be accepted by Parliament in its present form. The overriding negative features of the proposed legislation far outweigh its positive initiatives. The framework itself is questionable since the Central government usurps all powers to decide the numbers, criteria and schemes...