MGNREGA, also expanded as Mahatma Gandhi National Rural Employment Guarantee Act is a scheme operated by the Central Government of India by revamping the old scheme and renaming it. The main objective of this scheme is to provide social security by assuring a minimum of 100 days of work per year to the families. To benefit from this scheme, the adult members must be prepared to deliver unskilled labour-intensive work. Background of MGNREGA The government was operating schemes like Jawahar Rozgaar Yojana, Food for Work Programme, and Sampurna Grameen Rozgaar Yojna. Based on the observations from this scheme, the government launched Mahatma Gandhi National Rural Employment Guarantee Act first in the state of Maharashtra in the year 1970. During its launch, the scheme was called as National Rural Employment Guarantee Act (NREGA). The scheme was introduced in the state during the period when Vasant Rao Naik was the chief minister. This act came to the aid of millions of farmer families in the state. The planning commission eventually accepted this scheme and extended throughout the nation. These acts helped the government gather some useful inputs needed to work in the lines of programs like ‘Rural Manpower Programme’ ‘Crash Scheme for Rural Employment’ ‘Drought Prone Area Programme’ and ‘Marginal Farmers and Agricultural Laborers Scheme’. Each of these schemes provided a useful ground for the government to plan newer schemes in an efficient way setting right the drawbacks of the earlier ones. The principal objectives of all these schemes are wage employment, food security, and producing valuable assets. Later renamed as MNREGA, Mahatma Gandhi National Rural Employment Guarantee Act is a significant member in the lines of these schemes. Important <keyword id="8133544" type="UNKNOWN" weightage="20" keywordseo="features-of-mgnrega">features of MGNREGA</keyword> 1. Providing job security to the adult members in families for not less than 100 days in a year. 2. Creating permanent assets like wells, ponds, roads and others for the welfare of the community. 3. Providing employment opportunities to the applicants within a radius of 5 kilometres. 4. Providing minimum wages in order to assure security to families. 5. Providing security to the income of families by assuring unemployment allowances if work is not provided for about 15 days from the date of application. How to enroll in MGNREGA? Application to this job must be given in writing. The application must include the registration number of the job card, date from which the applicant is seeking employment, and the number of days for which the applicant wants the job. The application must give the names of the adult members in the family who are coming forward to do unskilled manual work along with the details like age, gender, and caste. The filled-in applications must be submitted to the Gram Panchayat. For registration under this scheme, an individual can appear personally and make a request. The authorities in the Gram Panchayat will verify the details in the application and decide if the case in the application is genuine and deserving to get the benefit. Once verified, every household will be given a unique registration number.

What is Magnerga and how can one Enroll in the scheme

<ul><li>The government is increasing the annual funding for the <keyword id="6361863" type="UNKNOWN" weightage="20" keywordseo="MGNREGA">MGNREGA</keyword> scheme by 11% to ₹610.8 billion. </li><li>The scheme has been suffering from a funding crunch for the past few years, which has caused payment delays. </li><li>The <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword> administration is trying to curry favour from rural Indian voters ahead of general <keyword id="6355644" type="DEFINITION" weightage="20" keywordseo="elections">elections</keyword>. </li></ul> The Indian government <a href="http://pib.nic.in/PressReleseDetail.aspx?PRID=1560027">announced</a> on January 15 that it was increasing funding for the previous administration’s flagship employment scheme, the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) programme,in its upcoming interim <keyword id="6358021" type="ORGANIZATION" weightage="20" keywordseo="budget">budget</keyword>. This is a response to a petition from over 250 activists, lawmakers and <keyword id="45092" type="COMPANY" weightage="20" keywordseo="farmers">farmers</keyword> rights leaders complaining of the programme’s <a href="https://economictimes.indiatimes.com/news/politics-and-nation/250-lawmakers-activists-write-to-prime-minister-raising-concerns-over-mgnrega-fund-crunch/articleshow/67529649.cms">inadequate funding</a>. The move is an attempt to sustain rural consumption, which has been falling as of late amid low food prices, which has translated into a decline in rural income. In fact, two-wheeler sales, which are often used a proxy for rural demand, have been on a downward trend for most of a year before rebounding in December owing to discounts from bike manufacturers and lower fuel prices. A necessary hike Established through an act in 2005, the scheme aims to provide a minimum of 100 days of paid employment in a financial year to every member of rural household. The work entailed is usually manual work like construction. The Modi administration, acting through the Ministry of Rural Development, is allocating an additional ₹60.84 billion to the programme, taking its total funding for 2019-2020 to ₹610.84 billion - the highest ever annual allocation for the programme since its inception. In the previous Union Budget, Finance Minister Arun Jaitley had hiked the annual spend for the programme by 15% to ₹55 billion. The higher funding is necessary. The MGNREGA has been suffering from a funding crunch since 2017-18 as state governments have not received additional sanctions from the central government, which has been dealing with a fiscal crisis of its own. For example, <a href="https://www.thehindu.com/news/national/mgnrega-scheme-faces-fund-crunch/article25921235.ece">nearly 100%</a> of the funding for the scheme was exhausted by the beginning the January 2019, with three months left to go. Despite the funding crunch, which has manifested in payment delays and an insufficient compensation rate, the programme has managed to provide a cumulative total of 2.36 billion working days to beneficiaries on an annual basis in the last three years. The decision to increase funding for the programme comes as part of the government’s attempts to alleviate rural distress ahead of general elections in May. The scheme has gained popularity in the rural heartland in the last few years as it has provided indebted farmers an alternative source of income, which caused the BJP <a href="https://indianexpress.com/article/explained/why-the-bjp-embraced-mgnrega-the-living-monument-of-the-upas-failures/">to backtrack from its criticism </a>of the programme and double down on it starting in 2016. Aside from this, the Modi administration is already said to be preparing a generous package of <a href="https://www.businessinsider.in/interest-free-loans-and-income-support-the-upcoming-budget-may-be-a-song-for-indias-farmers/articleshow/67538156.cms">interest-free loans and income support schemes</a> for smallholder farmers in its upcoming Budget. SEE ALSO: <a href="https://www.businessinsider.in/interest-free-loans-and-income-support-the-upcoming-budget-may-be-a-song-for-indias-farmers/articleshow/67538156.cms">Interest-free loans and income support— the upcoming Budget may be a song for India’s farmers</a> <a href="https://www.businessinsider.in/nearly-90-of-rural-homes-in-india-have-savings-accounts-in-banks-report/articleshow/65438348.cms">Nearly 90% of rural homes in India have savings accounts in banks: Report</a>

The Modi government is looking to boost rural consumption with record outlay for employment scheme

<keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">Finance</keyword> Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> presented the Union <keyword id="19936553" type="General" weightage="100" keywordseo="budget" source="keywords">Budget</keyword> 2024-25 on Tuesday, outlining a detailed financial roadmap aimed at driving economic growth and ensuring fiscal stability. The budget reveals a comprehensive picture of government revenues and expenditures, highlighting major <keyword id="20439675" type="General" weightage="20" keywordseo="allocations" source="keywords">allocations</keyword> to key <keyword id="20353247" type="General" weightage="20" keywordseo="sectors" source="keywords">sectors</keyword> and <keyword id="19915334" type="General" weightage="20" keywordseo="schemes" source="keywords">schemes</keyword>. The <keyword id="19945274" type="General" weightage="20" keywordseo="revenue" source="keywords">revenue</keyword> to the government is generated from multiple sectors. Income tax contributes 19 per cent, borrowings and liabilities stand as the largest source at 27 per cent, and <keyword id="19951327" type="General" weightage="20" keywordseo="gst" source="keywords">GST</keyword> along with other taxes accounts for 18 per cent. Corporation taxes contribute 17 per cent, followed by non-tax receipts at 9 per cent, customs at 4 per cent, excise duty at 5 per cent, and non-debt capital receipts at 1 per cent. On the <keyword id="19936655" type="General" weightage="20" keywordseo="expenditure" source="keywords">expenditure</keyword> side, the budget outlines significant allocations to various public sectors. Interest payments consume 19 per cent of the total expenditure, central sector schemes account for 16 per cent, and states' tax devolution takes up 21 per cent. Subsidies represent 6 per cent of the spending, while defence expenditures stand at 8 per cent. The Finance Commission and other transfers take up 9 per cent, centrally sponsored schemes another 8 per cent, pensions 4 per cent, and other expenses 9 per cent. In terms of sector-specific allocations, defence receives the highest allocation at Rs 4,54,773 crore. Rural development is allocated Rs 2,65,808 crore, reflecting the government's focus on boosting rural economies. Agriculture is set to receive Rs 1,51,851 crore, while home affairs are allocated Rs 1,50,983 crore, underscoring the importance of internal security. Education, a critical sector for future growth, is allocated Rs 1,25,638 crore. The IT and Telecom sector, pivotal for digital transformation, receives Rs 1,16,342 crore. Health is allocated Rs 89,287 crore, emphasising the ongoing commitment to improving healthcare infrastructure. The energy sector is earmarked Rs 68,769 crore, social welfare Rs 56,501 crore, and commerce and industry Rs 47,559 crore. The budget also highlights significant increases in allocations to major schemes. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) sees an increase from Rs 60,000 crore in FY23-24 to Rs 86,000 crore in FY24-25, aimed at enhancing rural employment. Nuclear power projects receive a boost from Rs 442 crore to Rs 2,228 crore, while the development of semiconductors sees a substantial increase from Rs 3,000 crore to Rs 6,900 crore, underscoring the push towards technological advancement. Direct Benefit Transfer for LPG is allocated Rs 1,500 crore, up from Rs 180 crore, to support energy access. Solar power allocation doubles from Rs 4,970 crore to Rs 10,000 crore, reflecting the government's commitment to renewable energy. This budget, with its detailed allocations and revenue plans, underscores the government's strategy to foster economic resilience, technological advancement, and sustainable growth.

Fund allocations to key sectors and schemes hiked in budget

<keyword id="67286" type="General" weightage="20" keywordseo="Food-inflation" source="Orion">Food inflation</keyword> is the talk of the town, with even the RBI expressing concerns over persistent spikes in <keyword id="19960157" type="General" weightage="100" keywordseo="food-prices" source="keywords">food prices</keyword> on April 5, when it decided to keep the policy <a href="https://www.businessinsider.in/finance/news/rbis-mpc-keeps-rates-unchanged-to-be-actively-disinflationary/articleshow/109053104.cms">repo rate unchanged at 6.5%</a>. The problem stems from the source as India's agriculture sector, contributing 19% of GDP and employing two-thirds of the population, faces multifaceted challenges. For example, small and marginal farmers struggle to access affordable credit and fragmented land ownership, leading to uneconomical farming practices and difficulties in adopting modern technologies. The lack of market linkages and price information also leaves farmers vulnerable to exploitation and uncertain returns. Erratic weather patterns have impacted the <keyword id="113431" type="General" weightage="20" keywordseo="food-production" source="Orion">food production</keyword> yield several times in recent years, including the ongoing Rabi season. The trend is likely to intensify, with the Government of India's impact assessment warning of alarming yield reductions, with rainfed rice yields projected to drop by 20% in 2050 without adaptation measures to the changing climate. Intergovernmental Panel on Climate Change (IPCC) highlights that climate change can jeopardise core aspects of food security, necessitating a holistic approach that considers nutrition and climate resilience. Addressing these challenges requires a change in perspective, recognising the complexity of interconnected problems. <cmsannotation type="cmsannotation" annotationid="Top of Form" comment="subhead" text="Top of Form">Top of Form</cmsannotation> To tackle the intricacies of India's agriculture and <keyword id="19949619" type="General" weightage="20" keywordseo="food-system" source="keywords">food system</keyword> effectively, adopting a systems approach is crucial. This means acknowledging that the system consists of interconnected parts that evolve over time. Instead of focusing solely on individual components, we examine how they are organized and interact within the broader context. This holistic perspective allows us to grasp the dynamics of the system better and develop more effective solutions to its challenges. A valuable tool for analysing significant changes in a system is the "water of systems change" framework by FSG, a global nonprofit consulting firm. This framework identifies six interdependent conditions—policies, practices, resource flows, relationships, power dynamics, and mental models—that collectively shape and influence social and environmental progress within a system. These conditions may vary in visibility to individuals within the system due to their explicitness. It's akin to wearing special glasses that reveal how things are evolving. Imagine two fish conversing, and one asks about the water they're swimming in. The second fish, having always been immersed in water, doesn't even understand the concept. Similarly, as people endeavour to enact significant changes in systems, they are starting to recognise the "water" they've been immersed in all along. This framework aids in understanding how a system is structured, including its rules and practices, the interactions and collaborations among individuals, and the overarching ideas and goals guiding the entire system. <cmsannotation type="cmsannotation" annotationid="Existing system-level challenges" comment="subhead" text="Existing system-level challenges">Existing system-level challenges</cmsannotation> Applying the framework to the Indian agricultural context reveals a multitude of barriers hindering the transition toward climate-resilient, resource-efficient, and regenerative agriculture. First and foremost, there exists a substantial challenge in overcoming the lack of evidence demonstrating the efficacy and benefits of agroecology practices. Traditional methods deeply entrenched in agricultural practices make farmers hesitant to adopt new approaches without clear proof of their advantages. Additionally, an underdeveloped ecosystem for inputs, implements, and infrastructure poses a significant obstacle. Inadequate access to bio-inputs essential for agroecological farming, coupled with a lack of well-established supply chains, impedes farmers' ability to embrace more sustainable practices. Furthermore, the inadequate availability of patient capital emerges as a critical barrier. Farmers require financial support for investments in new technologies and sustainable practices, but the absence of patient capital options tailored to the longer gestation periods of these practices hampers their adoption. Disincentives within the policy and institutional landscape, such as subsidies favouring conventional farming over sustainable alternatives, further deter the transition. Suboptimal organisation of value chains and networks, coupled with unclear regulations and market linkages, presents challenges in making climate-resilient agriculture economically viable. Lastly, the absence of well-defined criteria for ecological safety and people-centric transitions adds complexity, emphasising the need for a comprehensive approach to address these multifaceted challenges in the journey towards <keyword id="19966983" type="General" weightage="20" keywordseo="sustainable-agriculture" source="keywords">sustainable agriculture</keyword> in India. <cmsannotation type="cmsannotation" annotationid="Looking at the bigger picture" comment="subhead" text="Looking at the bigger picture">Looking at the bigger picture</cmsannotation> When it comes to agriculture, the people involved often have a good understanding of how different parts work together. What they may struggle with is knowing how fast or slow things are changing in different areas. Looking at the bigger picture and understanding how things are moving - like what's gaining momentum and what's getting stuck - can lead to new ways of tackling shared problems. For instance, the promotion of millets clashes with the on-farm activities incentivised by the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme, favouring other crops like rice. Similarly, underlying trends such as the increasing migration of youth from agriculture bring attention to systemic challenges, questioning assumptions about the role of rural youth in facilitating the transition to sustainable practices. Employing systemic approaches goes beyond specific tools for system diagnosis. While these methods are valuable, they don't guarantee change, and there's no one-size-fits-all solution. The process itself holds value, fostering connections among participants and deepening understanding. Adopting a systemic perspective involves concurrent efforts across various levels of the food system, including reshaping consumer narratives, addressing value chain infrastructure gaps, and implementing policies safeguarding safety nets while providing incentives for transition. These initiatives establish interdependent feedback loops crucial for a profound and timely transformation of the food system. Moreover, a systems-oriented approach requires rethinking and restructuring institutions. In the <keyword id="21215989" type="General" weightage="20" keywordseo="indian-food-system" source="Orion">Indian food system</keyword> context, fostering synergies between safety net programs like the Public Distribution System (PDS) and initiatives under MGNREGA is crucial. Additionally, supporting farmers in their transition demands agriculture extension services prioritising diverse objectives for the food system. Moving forward, India’s food system should aim to achieve multiple goals, including providing affordable nutritious diets for all, implementing decarbonised and ecologically sustainable land use, ensuring equity, and fostering resilience for farmers and workers. Employing systemic practices to comprehend and navigate evolving dynamics while maintaining an ambitious vision of transformative change is imperative. Yamini Srivastava and Hansika Singh are Principal Strategists at Forum for the Future. Disclaimer: The opinions expressed are of the author/interviewee and do not necessarily reflect the views of Business Insider India. The article has been partly edited for length and clarity.

OPINION: As food prices soar, unlocking India's potential requires systems thinking and transformative change

New Delhi, Feb 16 () The agri cess introduced in the Union Budget 2021-22 will finally go towards boosting APMC mandis and related farming infrastructure, all of which are governed by states, a top government functionary said on Tuesday, rejecting criticism that the cess deprives states of revenue as its receipt entirely falls in the Centre's kitty. Official sources also justified the introduction of tax on EPF's interests in accounts where employees' share is more than Rs 2.5 lakh per annum, noting that many people parked money in crores to get an assured return of over 8.5 per cent. They asserted that the measure will impact only one per cent of total account holders. The Employees' Provident Fund (EPF) is essentially for workers and those who are dependent on it, and it is not fair when some people are putting in Rs 1 crore or even Rs 2 crore annually to get an assured return, the senior government official told reporters in an off-the-record interaction. Asked about concerns over rising petroleum prices, the sources said oil revenue is income for the Centre as well as states and noted that the Union government's share is fixed while that of states rise when the basic price of petrol and diesel go up. On the demand that petroleum products should be brought under the Goods and Services Tax (GST) to relieve consumers of huge tax burden, they said it is for the GST Council, of which all states are a member, to decide. With many opposition parties slamming the introduction of cess in the budget, presented by Finance Minister Nirmala Sitharaman on February 1 in Parliament, the sources pointed out that the revenue, expected to be around Rs 30,000 crore, may fall in the Centre's kitty but the government has already made it clear that the money will be used to boost Agriculture Produce Marketing Committee (APMC) mandis and related infrastructure. This all falls under states' control, so it is states which will finally gain from the cess, they said. While the budget has allocated Rs 73,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), this can always go up as it is essentially a demand-driven programme, the sources said. With a large chunk of migrant workers, who had returned home during the COVID-19-induced lockdown, gradually returning to their cities of work, the demand for MGNREGA may not be as high in the coming fiscal, they added. The budgetary estimate for 2020-21 was Rs 61,500 crore but it was revised to Rs 1.1 lakh crore following the pandemic's outbreak. The sources expressed confidence that the recovery the economy has witnessed in the last few months will be sustained, and India will remain one of the fastest growing nations in the coming years. The government will stick to the reforms that the budget envisages, they said, noting that the sustained Foreign Direct Investment influx into India is a reflection on the country's strong fundamentals. When the GST revenue surged, it was claimed that this is due to the pent up demand caused by the lockdown but the GST receipt has been strong month after month, so has been the auto sales, the sources said. Asked about the criticism of some of the budgetary measures, including privatisation push, from RSS affiliates, the official sources said they had not received any such input. KR ANB ANB

'Cess introduced in budget will boost states' agri infra'

<ul><li>Before presenting the <keyword id="6360189" type="General" weightage="20" keywordseo="union-budget" source="Orion">Union Budget</keyword> in the parliament, the Indian government releases the annual <keyword id="6354872" type="General" weightage="100" keywordseo="economic-survey" source="Orion">Economic Survey</keyword>.</li><li>The Economic Survey throws light on the trends in different sectors and tracks the state of the country’s economic performance in the past one year.</li><li>The Chief Economic Advisor authors the Economic Survey in India and is later approved by the Union Finance Minister.</li></ul>In India, the Economic Survey prepares the background framework for the Union Budget. It facilitates a bird’s eye view of the trends noticed in different sectors over the previous year like agriculture, manufacturing, employment, infrastructure, prices, exports, imports, foreign exchange reserve, and money supply for example. <cmsannotation type="cmsannotation" annotationid="Economic Survey’s objectives" comment="subhead" text="Economic Survey’s objectives">Economic Survey’s objectives</cmsannotation> The various objectives of the Economic Survey in India can be summed up under three heads: <ul><li>Reviewing the country’s economic development over the past 12 months.</li><li>Summarising how the different development projects of the country perform.</li><li>Highlighting the government’s policy initiatives.</li></ul><cmsannotation type="cmsannotation" annotationid="The format of the Economic Survey" comment="subhead" text="The format of the Economic Survey">The format of the Economic Survey</cmsannotation> After Arvind Subramanian took charge as the Chief Economic Advisor (CEA) of the country, the Economic Survey became a two-volume report and his successor KV Subramanian continued the same trend. The first volume generally has chapters on the future course of the economy. Therefore, the first volume provides a scope for the CEAs to narrate their views. The second volume lists the country’s economic developments over the past year. The principal focus of the second volume is to explain the immediate economic issues faced by the different sectors with the help of statistical data. It throws light on the major challenges anticipated along with the solutions presumed. <cmsannotation type="cmsannotation" annotationid="Trends and practices" comment="subhead" text="Trends and practices">Trends and practices</cmsannotation> The first economic survey was released in the financial year (FY) 1950-51. In the next 14 years that followed, it was presented along with the Union Budget. Starting from 1964, it preceded the budget and was released a day before the budget session in the parliament. As per some reports, the 2021-22 Economic Survey might get back to its one-volume format after eight consecutive years. Most probably, this year’s Economic Report might contain the key data for the FY across different industry segments while leaving out the policy prescriptions that are usually a part of the main volume. <cmsannotation type="cmsannotation" annotationid="Why is the Economic Survey Important?" comment="subhead" text="Why is the Economic Survey Important?">Why is the Economic Survey Important?</cmsannotation> The Economic Survey is one of the most critical documents in the country’s administration. It gains utmost importance in financial planning as it contains insights on the country’s economic health. It talks about the different economic factors that might impact the budget. This is an invaluable document in highlighting the key concerns about the economy. The Economic Survey also reviews resource allocation in the budget. <cmsannotation type="cmsannotation" annotationid="Is releasing the Economic Survey mandatory for the government?" comment="subhead" text="Is releasing the Economic Survey mandatory for the government?">Is releasing the Economic Survey mandatory for the government?</cmsannotation> The Indian Constitution neither binds the government to present the Economic Survey nor is the government obliged to go with its recommendations. It is completely left to the government to decide if it will adopt or reject the suggestions made in the Economic Survey. We can say the Economic Survey is a kind of report card of the country’s economy and it also serves as the vehicle to promote economic reforms. <cmsannotation type="cmsannotation" annotationid="Where can we access the Economic Survey?" comment="subhead" text="Where can we access the Economic Survey?">Where can we access the Economic Survey?</cmsannotation> The document of the Economic Survey is made available to the public in PDF format on the exclusive website for the Union Budget <a href="https://www.indiabudget.gov.in/">https://www.indiabudget.gov.in/</a> or on the <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword>’s website <a href="https://finmin.nic.in/">https://finmin.nic.in/</a>. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/with-covid-expenses-rising-taxpayers-need-more-than-an-insurance-rebate-says-a-wealth-manager/articleshow/89199947.cms">With COVID expenses rising, taxpayers need more than an insurance rebate, says a wealth manager ⁠</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/budget-2022-expectation-why-india-needs-an-urban-mgnrega/articleshow/89199969.cms">Budget 2022 expectation: Why India needs an urban MGNREGA</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/heres-why-there-is-less-adoption-of-the-new-tax-regime-and-how-budget-2022-can-make-it-more-attractive/articleshow/89195776.cms">Here’s why there is less adoption of the new tax regime and how budget 2022 can make it more attractive</a>

EXPLAINED: India’s annual Economic Survey

Jaipur, Jun 14 () Rajasthan Chief Minister Ashok Gehlot on Sunday said his government will be able to provide facilities for up to 5,000 coronavirus tests per day, if required, to the neighbouring states of Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Gujarat and Delhi. He said testing capacity was earlier zero but has now increased to more than 15,000 tests per day in the state. "Our government is ready to support neighbouring states to test for coronavirus in this time of trouble," Gehlot said in a statement. In a high-level meeting here, Gehlot reviewed the status of coronavirus infections and said that it is the government's top priority to save people's lives in this critical time of the COVID-19 pandemic. He said the situation of coronavirus infections is currently under control in Rajasthan and directed officials to continue with the system of screening further in the state. The Chief Minister said that after "Unlock-1", it has been seen that people are not keeping up with the seriousness of the health protocols. He directed that anyone who violates other rules, including wearing of face masks and social distancing norms should be strictly dealt with. They should be warned that legal action will be taken against them for disobeying the rules. Gehlot said that a special campaign will be launched in the state from June 21 to 30 to create awareness about coronavirus. He also reviewed the status of the employment of workers under the MGNREGA scheme. AG HDA

Rajasthan govt can help neighbouring states with 5,000 COVID tests per day if needed: CM Gehlot

Jaipur, May 3 () With the Indian Council of Medical Research (ICMR) nod, SMS hospital in Jaipur will start convalescent plasma therapy on COVID-19 patients from Monday, Chief Minister Ashok Gehlot said on Sunday.He said the government will also start tele-medicines service from Monday so that people can get medical counselling and treatment sitting at home during lockdown."The ICMR has given permission to SMS hospital, Jaipur for plasma therapy which will start from tomorrow. We have donors ready and the therapy will be performed in a good manner in Rajasthan," Gehlot told reporters during a video conference.Under the convalescent plasma therapy technique, plasma from people who have recovered from COVID-19 is transfused to patients who are in critical condition.The Rajasthan chief minister said the state government has made all preparations for the treatment of critically ill COVID-19 patients. Also, doctors from SMS hospital are also participating in the research work going around the globe on plasma therapy, Gehlot said.Gehlot informed the newspersons that COVID-19 testing capacity in the state has reached 10,000 samples per day and it would be enhanced further by the end of this month. About the tele-medicines service, he said a web portal -- www.esanjeevaniopd.in -- will be launched and people can avail medical services for free from home. "Doctors and other staff have been trained for providing the service."The government's decision to operate over 400 mobile OPD vans has bore fruit as these facilities have provided treatment to 1.60 lakh people across the state, the chief minister said.Notices have been served to two private hospitals for denying treatment to patients, Gehlot informed the reporters and called upon the private healthcare facilities to come forward and serve people at this time of crisis.Expressing concern over the economy and declining government revenues, the chief minister said the Rajasthan has suffered a loss of Rs 10,000 crore in March and April due to the lockdown. The state government will have to cut short its budgetary provisions due to the present economic situation and dip in revenue collection, he said.Reiterating his demand of Central grants to all states and stimulus package to industries, Gehlot said the Government of India need to take these steps to restart the economy. He also demanded that the Centre to pay wages to MGNREGA labourers who are forced to sit at home due to lockdown."When the Government of India asks MSME and industries to give salaries to their workers who are sitting at home due to lockdown, then it is also the duty of the Centre to give wages to active registered labourers under MGNREGA, who are sitting at home," he said.The chief minister accused the opposition BJP in Rajasthan of levelling baseless allegations and said that since the very beginning his government has been taking everyone along."We have been taking along, be it opposition, activists and all. The BJP leaders in the state are making statements without facts. I appeal to them to stop doing that. This is not the time," he said."The state government's initiatives are being appreciated by all across the country. We are sharing our credit with everyone, but the statements from them (BJP leaders) are provocative and it is not good," Gehlot said.The chief minister said the Centre has allowed plying of special trains for ferrying stranded migrants and workers on the demand of Rajasthan government, but some states such as West Bengal, Bihar, Maharashtra, Tamil Nadu, Telangana are not ready to send or receive migrants.He said that discussions were being held with the states concerned at the chief secretary-level so that the issue could be resolved. Gehlot also said that associations of migrants labourers and their leaders should put pressure on their respective state government over the matter."Nearly 15 lakh migrants have so far registered in Rajasthan and most of them, close to 70 per cent, are those who want to return to Rajasthan from other states. Making travel arrangements for these migrants is a big task and we are ready to arrange buses also," he said.Gehlot claimed that the Rajasthan government is leading the country in taking initiatives to fight against coronavirus and all steps taken by it have been successful. "We have already launched the Nirogi Rajasthan campaign and this helped us in the fight against coronavirus. We have strengthened our medical infrastructure and boosting it consistently so that we can be ready in face of any challenge," he said. SDA NSDNSD

Rajasthan to start plasma therapy on COVID-19 patients from Monday: CM Gehlot

<ul><li>Kerala has gone from being the worst-hit state in India when the pandemic breached the country's border to dropping down four places.</li><li>In comparison to Maharashtra, which soon overtook Kerala as the worst-hit state — the southern state has only reported 2 deaths while the former reported so far compared to the financial capital’s toll of 64..</li><li>According to the state’s Finance Minister, Thomas Isaac, the credit for Kerala’s composure during this time is due to its medical and social strategy in handling the pandemic.</li></ul>The first case of Coronavirus in India was reported in Kerala on January 30 in the Thrissur district when a student from Wuhan University <a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1601095">tested positive</a>. By March, it was the worst-hit state in the country as the government announced that all airlines will be grounded till March 31. Since then, the state has worked its way down the list dropping four spots with the fifth-highest incidence of Coronavirus infections at 336. It also has the second-highest recovery rate in the country with 70 people who tested positive for COVID-19 now discharged and back at home. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><col /><col /><col /><tbody><tr><td colspan="5" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Worst-hit Coronavirus states in India </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Confirmed cases </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cured/discharged </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Deaths </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maharashtra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1018 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">79 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tamil Nadu </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">690 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhi </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">576 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Telangana </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">364 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">35 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kerala </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">336 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">70 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2 </td></tr></tbody></table> Kerala’s Coronavirus strategy In comparison to Maharashtra, which soon overtook Kerala as the worst-hit state — the southern state has only reported 2 deaths while the former reported so far compared to the financial capital’s toll of 64. States like Madhya Pradesh and Gujarat, which have fewer cases than Kerala, too have had more deaths ahave a higher incidence of death at 13 each. According to the state’s Finance Minister, <a href="https://twitter.com/drthomasisaac">Thomas Isaac</a>, the credit for Kerala’s composure during this time is due to its medical and social strategy in handling the pandemic. However, it hasn’t been easy with Karnataka shutting down its borders leaving Kerala’s worst-hit district — Kasargod — without access to Mangalore’s hospitals. In addition, alcoholics in the state have been going through severe withdrawal with liquor shops shutting their doors. When Prime Minister Modi addressed the nation on March 19 asking people to participate in a Janata Curfew — Kerala Chief Minister Pinarayi Vijayan immediately announced income transfer of ₹2,400 to 55 lakh residents, setting up 1000 free food stalls to feed the needy for free and provide others basic nutrition at ₹20 a meal; and ₹2000 crore for MGNREGA workers over the next 2 months, among other measures. Even though it was one of the first states to implement a partial lockdown and enforce social distancing, many criticized it for taking longer to close down bars, pubs and liquor shops. Others feel that the state’s decentralised healthcare system has already done a lot to tackle the problem. All in all, it became one of the few states to have taken quick action and measures to control the pandemic. See also: <a href="https://www.businessinsider.in/india/news/a-leaked-video-of-indian-prime-minister-narendra-modis-clearly-shows-lockdown-will-be-extended/articleshow/75047512.cms">A leaked video of Indian Prime Minister Narendra Modi clearly shows lockdown will be extended</a> <a href="https://www.businessinsider.in/india/news/after-trump-calls-hydroxychloroquine-gift-from-heaven-bolsonaro-calls-it-sanjeevni-booti/articleshow/75043798.cms">After Trump calls Hydroxychloroquine ‘gift from heaven’ Bolsonaro calls it ‘sanjeevni booti’</a> <a href="https://www.businessinsider.in/india/news/here-are-the-potential-coronavirus-treatments-that-india-and-other-countries-are-banking-on/articleshow/75043987.cms">Here are the potential Coronavirus treatments that India and other countries are banking on</a>

Kerala was the worst-hit state from Coronavirus in India — now it’s fifth in the country

<keyword id="1325511" type="PERSON" weightage="20" keywordseo="government-consumption">Government consumption</keyword> is expected to continue "pandemic-proofing" of demand, the Reserve Bank said on Tuesday. In its Annual Report 2019-20, the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> said that when the demands gets stabilised, private consumption is likely to lead the recovery. "Going forward, government consumption is expected to continue pandemic-proofing of demand, and private consumption is expected to lead the recovery when it takes hold, with non-discretionary spending leading the way unt il a durable increase in disposable incomes enables discretionary spending to catch up," it said. An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-Covid momentum, as per the report. It noted that private consumption has lost its discretionary elements across the board, particularly transport services, hospitality, recreation and cultural activities and behavioural restraints may prevent the normalisation of demand for these activities. The Reserve Bank's survey for the month of July indicates that consumer confidence fell to an all-time low, with a majority of respondents report ing pessimism relating to the general economic situation, employment, inflation and income; however, respondents indicated expectations of recovery for t he year ahead. "Urban consumption demand has suffered a bigger blow - passenger vehicle sales and supply of consumer durables in Q1: 2020-21 have dropped to a fifth and one third, respectively, of their level a year ago; air passenger t raffic has ground to a halt. Rural demand, by contrast, has fared better,a it said. Among underlying indicators, tractor sales picked up by 38.5 per cent in July, spurred by the robust pace of kharif sowing, while the contraction in mot orcycle sales eased in July -- from 35.2 per cent in June to 4.9 per cent in July. The decline in production of consumer non-durables turned positive in June. A fuller recovery in rural demand is, however, being held back by muted wage growth which is still hostage to the migrant crisis and associated employment losses. Initiative under the Pradhan Mantri Garib Kalyan Rojgar Abhiyaan is likely to generate employment in rural areas. Along with increased wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), they should provide a fillip to rural incomes, said the RBI report. On production activity, RBI noted that Indian agriculture is undergoing a distinct transformation, notwithstanding headwinds. "Going forward, shifting the terms of trade in favour of agriculture is the key to sustaining this dynamic change and generating positive supply responses in agricultural production. Experience shows that in periods when the terms of trade remained favourable to agriculture, annual average growth in agricultural gross value added (GVA) exceeded 3 per cent," the report said. "Hitherto, the main instrument of incentive has been minimum support prices, but the experience has been that price incentives have been costly, inefficient and even distortive. India has now reached a stage in which surplus management has become a major challenge. The priority is to move to pol icy strategies that ensure a sustained increase in farmers' income alongside reasonable food prices for consumers. An efficient domestic supply c hain becomes critical here. As per the report, India's manufacturing has been locked in a structural slowdown for "quite some time". "Reversing this decline warrants a complete rethink. The quality and efficiency of the physical infrastructure, which still significantly lags behind the global median, has to be enhanced to help manufacturing take off," RBI said in the report. "Benchmarking systems and procedures with the best in the world could galvanise growth in the sector, aided by cleaning up of stressed balance sheets of corporates by raising the efficiency of bankruptcy and solvency procedures." In addition, the RBI cited the need to unlock entrepreneurial energies and risk appetite by improving the business environment. "Faster enforcement of contracts, including through expansion of judicial and insolvency capacities, would be a game changer," the report said. "Property registrations can be speeded up from the current 58 days, and a centralised website can provide real time information on all regulatory compliance requirements." "In general, the compliance burden can be streamlined substantial. The COVID-19 crisis can be converted into an opportunity by using online provision of education and training to implement reforms in the social infrastructure by skill development and reskilling so as to prepare a labour force equipped to keep pace with a big thrust on infrastructure." SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/without-huawei-and-zte-in-india-airtel-and-vodafone-ideas-battle-against-jio-to-become-tougher/articleshow/77734889.cms">Without Huawei and ZTE in India, Airtel and Vodafone-Idea's battle against Jio to become tougher</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-wants-to-increase-data-prices-to-100-per-gb-sunil-mittal-asks-subscribers-to-prepare-to-pay-a-lot-more/articleshow/77734318.cms">Airtel wants to increase data prices to ₹100 per GB, Sunil Mittal asks subscribers to ‘prepare to pay a lot more’</a> <a href="https://www.businessinsider.in/business/startups/news/india-startup-founders-are-opting-for-money-in-the-bank-instead-of-high-valuations-as-they-look-to-survive-this-pandemic/articleshow/77733965.cms">India's startup founders are opting for money in the bank instead of high valuations as they look to survive this pandemic</a>

Government consumption will continue to 'pandemic-proof' India's demand says RBI

New Delhi, Dec 8 () Former Reserve Bank of India (RBI) governor Raghuram Rajan said India is in the midst of a "growth recession" with signs of deep malaise in the Indian economy that is being run through extreme centralisation of power in Prime Minister's Office and powerless ministers.
Penning down his recommendations to help the ailing Indian economy out of the ongoing slowdown in the India Today magazine, he called for reforms to liberalise capital, land and labour markets, and spur investment as well as growth.
He also urged India to join free trade agreements judiciously in order to boost competition and improve domestic efficiency.
"To understand what has gone wrong, we need to start first with the centralised nature of the current government. Not just decision-making but also ideas and plans emanate from a small set of personalities around the Prime Minister and in the Prime Minister's Office (PMO).
"That works well for the party's political and social agenda, which is well laid out, and where all these individuals have domain expertise. It works less well for economic reforms, where there is less of a coherent articulated agenda at the top, and less domain knowledge of how the economy works at the national rather than state level," Rajan wrote.
Stating that previous governments may have been untidy coalitions but they consistently took path of further economic liberalisation, he said, "extreme centralisation, coupled with the absence of empowered ministers and the lack of a coherent guiding vision, ensures that reform efforts pick up steam only when the PMO focuses on them, and lose impetus when its attention switches to other pressing issues".
"The Modi government came to power emphasising 'minimum government, maximum governance'. This slogan is often misunderstood. What was meant was that government would do things more efficiently, not that people and the private sector would be freed to do more. While the government continues the creditable drive to automation -- direct benefit transfer to recipients is an important achievement -- the role of the government in many spheres has expanded, not shrunk," he said.
Rajan said the starting point to address the economic slowdown will be for the Modi government to acknowledge the problem.
"The starting point has to be to recognise the magnitude of the problem, to not brand every internal or external critic as politically-motivated, and to stop believing that the problem is temporary and that suppressing bad news and inconvenient surveys will make it go away," he said. "India is in the midst of a growth recession, with significant distress in rural areas."
India's economic growth slowed to a 6-year low of 4.5 per cent in the July-September quarter. With inflation rising, fears of stagflation -- a fall in aggregate demand accompanied by rising inflation -- have resurfaced.
He said construction, real estate and infrastructure sectors are in "deep trouble" and so are lenders to it like the non-bank finance companies. The crisis among shadow lenders and a build-up of bad loans at banks have curbed lending in the economy.
Seeking asset quality review of the non-bank finance companies, he said corporate and household debt is rising, and there is deep distress in parts of the financial sector.
Unemployment, especially amongst youth, seems to be growing, as is the accompanying risk of youth unrest. "Domestic businesses have not been investing either, and the stagnation in investment is the strongest sign that something is deeply wrong," he said.
Rajan called for reforms in land acquisition, labour laws, stable tax and regulatory regime, fast track bankruptcy resolution of developers in default, proper pricing of electricity, preserving competition in telecom sector and giving farmers access to inputs and finance.
Calling for not selling already dominant family enterprises to avoid concentration of power, he also wanted decentralisation of power by empowering ministers and engaging states, beginning with amending the terms of reference of the 15th Finance Commission by not curtailing states' share of tax revenue.
Rajan said the government should desist from cutting personal income tax rates for the middle-class for now and should use its scarce fiscal resources to support the rural poor through schemes such as the MGNREGA.
The repeated government allusions to a USD 5-trillion-economy by 2024, which would necessitate steady real growth of at least 8-9 per cent per year starting now, seem increasingly unrealistic, he added.
"Furthermore, even if some of the problems are legacies, the government, after five-and-a-half years in power, needs to resolve them. A massive new reform thrust is needed, accompanied by a change in how the administration governs," he said.
Rajan said the Modi government has shown "surprising timidity" when it comes to unfinished reforms on the business environment, land acquisition, labour and the role of the public sector. ANZ BAL
BAL

India in growth recession; extreme centralisation of power in PMO not good: Rajan

<img class="gwt-Image" src="/photo/57853594.cms" />The <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> has ruled out requirement of an <keyword id="6356006" type="UNKNOWN" weightage="20" keywordseo="Aadhaar-card">Aadhaar card</keyword> for availing benefits of government’s <keyword id="77362" type="UNKNOWN" weightage="20" keywordseo="Welfare-schemes">welfare schemes</keyword>. 
 
However, it added the government can surely make it mandatory for <a href="http://www.businessinsider.in/6-things-for-which-Aadhaar-card-is-mandatory-now/articleshow/57791987.cms">other things</a> like opening bank accounts. The <keyword id="6356229" type="ORGANIZATION" weightage="20" keywordseo="apex-court">Apex Court</keyword> said a seven-judge bench needs to be set up to hear the pleas challenging Aadhaar, and also that it is not possible as of now. 
 
Also read: <a href="http://www.businessinsider.in/keep-your-aadhaar-number-ready-while-filing-income-tax-return/articleshow/57777330.cms">Keep your Aadhaar number ready while filing income tax return</a> 
 
The government has, on its part, already said nobody will be deprived of benefits due to lack of an Aadhaar card, since they can use alternate means of identification to receive benefits until an Aadhaar number is assigned. 
 
Also read: <a href="http://www.businessinsider.in/world-bank-is-impressed-with-aadhaar-programme-says-beneficial-for-the-world-if-widely-adopted/articleshow/57665980.cms">World Bank is impressed with Aadhaar programme; says beneficial for the world if widely adopted</a> 
 
In October 2015, SC had lifted its earlier restrictions and permitted the voluntary use of Aadhaar cards for welfare schemes like MGNREGA, all pension schemes, the provident fund and flagship programmes like the '<a href="http://www.businessinsider.in/shocking-rs-74610-croredeposited-in-jan-dhan-accounts-after-note-ban/articleshow/56850719.cms">Pradhan Mantri Jan Dhan Yojna</a>' of the NDA government, along with LPG and PDS schemes. 
 
There has been criticism about making Aadhaar cards mandatory, since <a href="http://www.businessinsider.in/latest/database-completely-secure-uidai-assures/articleshow/57490909.cms">UIDAI</a> is said to be getting biometric details through private agencies, thus violating citizens' fundamental rights. 
 
(Image source: Sound and Light)

Beneficiaries of welfare schemes don’t need to have Aadhaar, rules Supreme Court

<img class="gwt-Image" src="/photo/51197442.cms" style="width: 800px; height: 600px;" /> 
The budget provides an indication of government’s intent. This was the 85th annual budget, and judging by the reaction of the market, one must certainly underline that it was a growth-oriented one.
 

	It is a welcome relief that the budget steered clear of populism and had a clear focus on fiscal consolidation, infrastructure and the depressed rural economy. Allocations for MGNREGA have been received well because it has demonstrated that the government is willing to support effective schemes, even if they were launched by the previous government.
 The government with its proposals showed its intent to stick to the roadmap for fiscal consolidation with next year’s <keyword id="6365485" type="UNKNOWN" weightage="100" keywordseo="fiscal-deficit">fiscal deficit</keyword> target at 3.5 per cent of the GDP. This is excellent from the point of view of how the world views India. 

	Looking to the demand for fiscal reforms on one side and the challenge of global headwinds on the other, the government’s decision to adhere to fiscal consolidation makes the budget pragmatic and prudent.
 Steps the government takes to boost growth would impact how India is perceived. Here the clear focus needs to be on the ease of doing business, providing a predictable tax regime, clarity on retroactive <keyword id="6383566" type="PERSON" weightage="100" keywordseo="Taxation">taxation</keyword>, disinvestment and curbing corruption. Naturally, passing the <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> bill would be the game changer. Also, being associated with a management school, I am happy to applaud the need to spread digital literacy in rural areas. Of the 16.8 crore rural households, as many as 12 crore households do not have computers and are unlikely to have digitally literate people. The budget has also announced the setting up of a <keyword id="6375224" type="ORGANIZATION" weightage="100" keywordseo="higher-education">higher education</keyword> financing agency, with a fund of Rs 1,000 crore, and we need to wait a while to know what this means. 

	In a budget, one must understand is that it is impossible to satisfy everyone but one has to look to the basics, whether the budget is going to help the economy. However, a criticism could be that one did not see new schemes that could boost economic growth and attract much-needed investment. The budget offered the government an excellent platform to take advantage of the global economic slowdown. However, we don’t see any incentive for NRIs who are the natural resource base of the country.

	 
	 
	(The article is authored by Amit Dasgupta, Campus Head, Mumbai- SP Jain School of Global Management) 
	 
	Image credits: indiatimes

Steps the government takes to boost growth would impact how India is perceived

<img class="gwt-Image" src="/photo/51176887.cms" style="width: 800px; height: 600px;" />In zeroing down on the perfect budget (there being no such thing of course), the Government should strictly focus on (a) the suggestive overall fiscal stance, (b) the tax and expenditure policies and (c) the projective growth cum visionary reforms. Right now given the anaemic global growth, our own narrative is relatively clear- after recovering from a growth slow down, double digit <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword>, policy paralysis, rising NPAs and a pig-headed <keyword id="6365485" type="UNKNOWN" weightage="20" keywordseo="fiscal-deficit">fiscal deficit</keyword>, we’re finally striving towards a sweet spot. 
<h2>
	Fiscal Consolidation </h2>
The 3.5% target set by the Government while sine qua non to achieving a robust fiscal standing, cannot be cast in stone if that means sacrificing growth in a sagging environment of flaccid private investment, low corporate earnings and stressed balance sheets. That said there probably isn’t an allowable exact deviation- 3.6, 3.7, 3.8…. %, but it would heavily depend on how the finance minister is able to justify the numbers by means of the quality and composition of his expenditure. He really doesn’t want to be the guy who slips by increasing consumption expenditure by way of the 7th pay commission and sends out wrong signals to the world at large thereby undermining our fiscal credibility; investors need to understand he means business. And let’s face it, if you can’t consolidate when oil is touching USD 30/barrel, then when can you? Hence, it becomes all the more imperative that we chart out a clear and transparent road map of public investment in infrastructure, health and education, saying ‘Look hey, we set aside x billion for infrastructure last year and this is what we achieved. This year we will channel y billion for infrastructure, and this is what we target’. But if they are to do that, they need to back up this expenditure by equally resilient revenue sources. This could be either through the IIFCL or dedicated infrastructure bonds floated in the bond markets. Moreover, we do have considerable leverage as far as increasing our tax base is concerned (right now, our tax/GDP ratio is one of the lowest in the world, including economies with similar per capita incomes). The crucial consequence is that RBI will closely be watching what Mr. Jaitley does, and if it is not enough by their standards then he might as well give up on trying to convince Dr. Rajan to do his bidding and accommodate his fiscal stance. 
<h2>
	Pickup in Private Investment </h2> The following excerpt and graph from the mid-year economic review aptly captures the trend in the major components of <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> in H1 FY 16 over the last financial year:- 
 
“The remarkable thing about 2015-16 growth performance is that it continues to be as strong as it is given the weakness of exports (because of declining world markets) and private investment… For an economy that is powered only by private consumption and government investment, it is doing remarkably well. The difference with 2014-15 is that the decline in exports and private investment has been offset by higher consumption and public investment.” 
 
<img class="gwt-Image" src="/photo/51176908.cms" /> 
As explained by the diagram given below, stressed corporate balance sheets, dismal interest cover ratio, rise in indebtedness and flat PAT for India Inc. are the root causes contributing to the decline in corporate capital expenditure as a proportion of GDP. Other important factors leading to fall in private investment are tepid growth in domestic demand and dismal Ease of Doing Business in India. 
<img class="gwt-Image" src="/photo/51176910.cms" /> 
There are four broad policy measures to ensure a pickup in private investment, a critical component of aggregate demand. 
 
Firstly, lower interest rates are imperative for greater private investment. Despite 125 bps cut in the repo rate by RBI, there has been inadequate transmission. The Budget should focus on expediting the recapitalisation of public sector banks. In order to mitigate the issue of stressed assets of banks, besides strengthening the Asset Reconstruction Companies, the govt. can look at the prospects of a National Asset Management Company which can take over the NPAs from the banks’ balance sheets. This has the potential to lower the interest costs by providing more loanable funds to the banks. 
 Secondly, growth-conducive tax laws and consistency in interpretation and implementation are required to establish a predictable tax environment. A personal tax framework which boosts consumer demand through increase in disposable income is needed. A robust implementation plan for <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>, removal of tax anomalies like the inverted duty structure and <keyword id="547488" type="UNKNOWN" weightage="20" keywordseo="tax-incentives">tax incentives</keyword> for directing investments to critical sectors are other policies to be adopted in the Budget. 
 
Thirdly, in the Ease of Doing Business Index, India’s rank is dismal in ‘Starting a Business’ and ‘Dealing with Construction Permits’. Hence, setting up of large dedicated industrial zones and land banks with all the necessary pre-clearances (akin to the plug and play model employed for Ultra Mega Power Projects) will address the major obstacles in the land-allocation process. 
 
Finally, the private sector incurs significant expenditure on health and education. In fact, the largest amount of precautionary spending by Indian households is done on education of children and retirement health. Increased government spending in the social sector will indirectly spur private investment because the higher residual income of the households will increase the domestic demand. 
<h2>
	Revival of Export </h2>
The Indian exports declined for the 14th consecutive month in January 2016 by 13.6% y-o-y. Although, global demand slowdown is a culprit, India still lags behind China, Japan, and South Korea in terms of exports. The Make in India Programme should be emphasized by giving special incentives for obtaining new investments in sectors that are important in the global value chain such as manufacturing electric components. Special incentives can be in the form of tax holidays, rebated <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> for start-ups, employment-linked tax rebates to entrepreneurs, etc. 
 
Given the challenges faced by the MSME sector (inadequate credit availability, high cost factors, lack of technology and lack of marketing support), it is imperative to provide adequate support to this sector. Focus should be on sectors such as automobiles, textiles, transportation/logistics which have the highest potential to absorb labour migrated from agriculture. (Source – National skill development reports, Kotak instutional estimates). A lot of MSMEs don’t have any collateral and hence find it difficult to access formal credit. It has been found that 85% organisations feel that they face shortage of talent. Government should facilitate an environment that ensure MSMEs adopt long term incentive schemes to ensure employees have a vested interest and that they are run on performance incentives. 
<h2>
	Mitigation of Rural and Agrarian Distress</h2>
Slumbering global food and commodity prices and severe back-to-back droughts (first time in the last three decades) due to monsoon deficits have caused an unprecedented agrarian distress. The ensuing reduction in the value of agricultural exports has led to deceleration in rural wage growth. This has indirectly hurt businesses by reducing disposable income and thereby, rural demand. 
 
The government should address four critical dimensions viz. cushioning against weather fluctuations, reducing the cost of cultivation, providing favorable market conditions for the farmers to sell the farm produce, and increasing agricultural productivity. Accordingly, the Budget should increase the expenditure on the Pradhan Mantri Fasal Bima Yojana (to enhance crop <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword>), the Pradhan Mantri Krishi Sinchayee Yojana (to extend irrigation coverage) and fertilizer subsidy. Besides Minimum Support Price, creation of mandis and local markets needs to be encouraged. Finally, crop diversification and mechanisms to provide advice on the appropriate crop for specific variations of the fertile soil will augment productivity. Alleviation of rural distress (beyond that achieved by alleviating agricultural distress) will require increased allocation towards infrastructure projects in rural areas. These projects coupled with MGNREGA can create social assets apart from providing the employment to the rural tenants. 
 
(The article has been authored by a bunch of IIMB students - Dinkar Mohta, Spriha Saggar, Madhur Bajpai and Punit Parekh - on behalf of Networth, The Finance Club of IIM Bangalore. The students take keen interest in the subject.)

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