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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>Job creation will not just help solve widening inequalities but also help the Indian economy address the problem of weak domestic demand.</li><li>A big part of this is in creating better paying employment for those at the bottom of the pyramid who are engaged in low paid informal work arrangements.</li><li>This can be done by boosting <keyword id="92538" type="ORGANIZATION" weightage="20" keywordseo="MNREGA">MNREGA</keyword> allocation, creating productive job opportunities in the manufacturing sector by leveraging the PLI scheme and providing support to micro and small enterprises.</li></ul>It is now abundantly clear that a disproportionate burden of the COVID-19 shock has been borne by those at the lower end of the income distribution. Especially for those engaged in informal work arrangements. As we lay out a roadmap of revival and recovery for the Indian economy in the budget, we need to focus on creating productive employment opportunities that provide decent wages and offer some degree of job security for wage earners and self-employed. <div type="image" title="Rural wage growth has flattened(1)" msid="80561918" hostid="261" caption="&amp;lt;p&amp;gt;Rural wage growth &amp;lt;/p&amp;gt;"></div> This is important, not just to address widening inequalities, but also to overcome the problem of inadequate aggregate demand. Reviving domestic demand emanating from those at the lower end of the income distribution — who have a higher marginal propensity to consume — will play a vital role in spurring private investment which has been steadily declining over the last decade and has fallen to 27.6% of GDP. Much of the focus thus far has been on addressing supply-side bottlenecks and structural factors that have impeded private investment, but now greater attention needs to be paid to the demand side factors. This will require a mix of various strategies. MNREGA needs more funds and higher wages To begin with, there is a need to increase the budgetary allocation for National Rural Employment Guarantee Act (MNREGA), the one programme which has worked as an effective countercyclical automatic stabilizer during the COVID-19 crisis. In 2020-21, the budgetary allocation for MNREGA was ₹61,500 crores. Subsequently, an additional ₹40,000 crores were allocated under the Atma Nirbhar Bharat programme. <div type="image" title="MNREGA allocation" msid="80562411" hostid="261" caption="&amp;lt;p&amp;gt;MNREGA allocation&amp;lt;/p&amp;gt;"></div> This allocation needs to be significantly enhanced as demand for MNREGA works is rising rapidly and several states are falling short of funds to provide work. Additionally, the government would do well to increase the number of working days offered under the programme from 100 to 150 days — as permitted under the architecture of the programme. Further, given that MNREGA wage rates of at least 17 of the 21 major states are even lower than the state minimum wage for agriculture, there is a need to bring the former in line with the latter. This will help fuel rural demand, from those at the bottom of the distribution. <div type="image" title="MNREGA_edited" msid="80566452" hostid="261" caption="&amp;lt;p&amp;gt;Workers protesting for more work days under MNREGA and other demands in Patna&amp;lt;/p&amp;gt;"></div> Government needs to create more productive job opportunities Concomitantly, the imperative of accelerating the pace of productive job opportunities, in particular, in the manufacturing sector cannot be overemphasized. The government has announced a production-linked incentive (PLI) scheme amounting to ₹ 2 lakh crores — approximately 1% of GDP — over the next five years covering 14 sectors. To get the maximum bang for the buck, it might be worth considering linking these incentives not just to firms' production but also to employment creation on the firms’ payroll. This could potentially give a huge boost to productive job creation. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> However, it needs to be recognized that such incentives alone cannot give an impetus to manufacturing production and employment. As India returns to a strategy of import substitution, many of the firms availing these incentives are likely to find it difficult to integrate in global value chains and procure reasonably priced imported inputs, thereby hurting their competitiveness. For the success of PLI and for an export promotion strategy, there needs to be serious rethink on the increase in import duties which we have witnessed in the budget over the last three years. Smaller businesses should not be ignored While the PLI scheme focuses on large formal enterprises, it is important to note that the firm landscape is dominated by micro and small enterprises which have struggled to remain afloat during this period. Several of these enterprises are in the informal sector and have been unable to access the credit support offered by the government thus far. It would be worthwhile putting in place an enterprise support scheme for informal sector firms that can provide them some immediate relief. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> Undeniably, this is a challenging task given that these firms are not registered. We would need to find creative ways of supporting informal enterprises through financial and monetary measures such as reducing their operating costs by offering waivers or deferred payments for public services such as electricity, water or rent. In the medium term, however, it is important to focus on enhancing productivity of informal enterprises which will in turn enable an organic process of formalization. This will require providing customized technical and business skills, financial services, enterprise support and training to better compete in the markets. <div type="image" title="snapshot-1611900385290" msid="80562704" hostid="261" caption="&amp;lt;p&amp;gt;Employment across India&amp;lt;/p&amp;gt;"></div> The provision of local infrastructure facilities that cater to the specific needs of the local enterprises and clusters also plays a vital role in not just enhancing the productive capacity of informal enterprises but also in boosting employment creation in local communities in the short-term. While the budget is likely to focus on infrastructure creation to boost employment, it is important to note that big ticket infrastructural projects have a long gestation period and are capital intensive. They alone may not generate the desired employment benefits in the short run. Therefore, it would be prudent to also pursue more modest smaller projects at the local level to generate stronger multiplier effects in the local economy. The budget will expectedly lay out several measures to boost growth. However, it is imperative that maximisation of employment, and not just maximisation of GDP take centre stage in the budget. Growth estimates from the second quarter for FY 2020-21 suggest that the recovery witnessed by the Indian economy is being led by profits and not wages. However, this incipient recovery cannot be sustained unless higher profits lead to higher investment demand. The state of the labour market, both in the formal and informal sector, will play a crucial role in driving domestic demand and thereby private investment. *The author is a Senior Fellow at ICRIER. Views expressed here are personal. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/glee-s-t-january-2021-gst-collection-may-have-beat-the-december-record/articleshow/80512714.cms">Glee.S.T! January 2021 GST collection may have beat the December record</a> <a href="https://www.businessinsider.in/budget/news/prime-minister-narendra-modi-signals-big-defence-budget-allocation-for-make-in-india/articleshow/80511082.cms">India’s Prime Minister Narendra Modi may just have signalled a big allocation for defence equipment manufacturing, 3 days before the budget</a> <a href="https://www.businessinsider.in/budget/news/india-needs-to-add-massive-amount-of-solar-and-wind-power-capacity-this-year-to-meet-its-first-target/articleshow/80496138.cms">India needs to add massive amount of solar and wind power capacity this year to meet its first target</a>

India needs more ‘productive’ jobs and higher wages to address its demand problem

For the last one year, Mr Modi has highlighted a stellar performance by his government. We have witnessed him showering praises on the BJP schemes during his foreign trips and campaigns in India. Now, as we inch closer to <a href="http://www.businessinsider.in/searchresult.cms?query=budget">the Union Budget for 2016-17</a>, it’s time to question whether the Prime Minister’s assured rhetoric matches his government’s record so far. 
 
Business Insider found a Finance Ministry list highlighting the promises which have been met relating to the last Budget, including those of subsidy and agriculture. Based on the claims, what follows is a report card on the 2015 Budget promises that <a href="http://www.businessinsider.in/searchresult.cms?query=Modi+government">Modi government</a> has been able to fulfill so far. Take a look: 
 
-- D<a href="http://www.unitedbankofindia.com/uploads/dbtl.pdf">irect benefit transfer for LPG called Pahal</a> 
 
The scheme was launched on November 15, 2014 in 54 districts and in the rest of the country on January 1, 2015. Under the scheme, LPG cylinders are sold at one price ie the market rate. Consumers get Rs 558 in their bank accounts so they can buy LPG at market rate of Rs 605 per 14.2-kg cylinder. Subsidised LPG currently costs Rs 417. 
 
As many as 10 crore LPG consumers joined the ambitious scheme of getting cash subsidy in bank accounts to buy market priced cooking fuel, making it the world's largest direct benefit transfer and helping end black marketing. In August, the Prime Minister announced that it helped save Rs 15,000 crore by stopping black marketing and diversions. He also announced that at least 20 lakh people voluntarily gave up their subsidy on LPG helping widen the reach of the scarce fuel. 
 
-- <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=133703">Digitisation of ration cards</a> 
 Digitisation of <keyword id="52453" type="UNKNOWN" weightage="20" keywordseo="Ration-Cards">ration cards</keyword> - one of the important components for making PDS leakproof - is on its way to completion. By April 1, 2016, the National Food Security Act (NFSA) will be implemented by all states with 100% digitisation of ration cards. It will be achieved soon along with online grievance redressal being introduced in all 36 states and Union territories. 
 
To cite figures, as of first week of December, digitisation of ration cards has been completed in 29 States/UTs. Over 32 crore ration cards have been digitized and over 8.5 crore ration cards have been seeded with Aadhaar. 
 
-- Farm credit 
 Budget 2015 focused on development of agriculture with emphasis on reforms, credit facility and financial assistance. The agriculture credit target for 2015-16 was raised by Rs 50,000 crore to Rs 8.5 lakh crore. It promised to create a unified national agricultural market to boost agricultural productivity and farmers' income. Banks may not have surpassed this target as <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> expected but monitoring of agriculture credit is being done on a quarterly basis. Moreover in view of the challenge two successive droughts and deficient post-monsoon rainfall posed to agriculture last year, the government is mulling increasing institutional credit to farmers from the present Rs 8.5 lakh crores in the upcoming Budget. 
 
-- <a href="http://www.businessinsider.in/searchresult.cms?query=MNREGA">MNREGA</a> 
 
The Mahatma Gandhi National Rural Employment Guarantee Scheme, the flagship welfare programme of the previous UPA government, appears to be staging a revival of sorts. The July-September quarter witnessed 45.82 crore person-days of employment generated under MGNREGA. This was the highest for the quarter in the last five years. “It was more than even the 42.40 crore person-days during July-September 2012, which also happened to be a not-so-good monsoon year. According to officials, the last quarter (October-December), too, posted a similar trend. 
 
“In October alone, we provided 14.09 crore person-days employment, a record for the month. The data for the entire quarter is still being uploaded in our MIS (management information system) portal, but our expectation of the total person-days of work during October-December is 47 crore. That will again be a five-year-high for the quarter,” they said. Recently, the Finance Ministry made it clear that Budget allocation of Rs 34,699 crore for improving quality and effectiveness of <keyword id="92538" type="ORGANIZATION" weightage="20" keywordseo="MNREGA">MNREGA</keyword> has been approved. 
 
-- 'Paramparagat Krishi Sinchayi Yojna' 
 
Pradhan Mantri Krishi Sinchai Yojana - a scheme aimed at giving a boost to productivity by ensuring irrigation facilities is also on its way to achieve the desired results. The Vision is to ensure access to some means of protective Irrigation to all agricultural farms. Government claimed that widespread work has been undertaken and lakhs of farmers are being educated about modern irrigation methods to give ‘Per Drop More Crop’. It is also motivating groups of farmers to take up organic farming. 
 
The Finance Ministry recently said Rs 300 crore was allocated in 2015-16 to this scheme against which Rs 178.23 crore has been released so far. In a matter of few months, they will be able to use the rest of the money to complete the demands of this scheme. 
 
(Image credits: TOI)

Modi Government's Report Card: Budget 2015 promises it has fulfilled so far

With a voluntary enrolment of 92 crore people, the Aadhaar card is now the most widely held identification document in the country besides perhaps being the sole ID for many of its holders, including many families below the poverty line. 
 In comparison, 5.7 crore people have passports, 17 crore people <keyword id="61610" type="ORGANIZATION" weightage="80" keywordseo="pan">PAN</keyword> cards, 60 crore voter ID cards, 15 crore ration cards and 17.3 crore driving licences. 
 
Aadhaar has helped effect savings of Rs 2,600 crore by eliminating bogus claims in welfare schemes besides engendering greater transparency and consequently reducing corruption, reports from states and Union Territories show. 
 
It is also delivering benefits in progarmmes tailored for the poor like <keyword id="92538" type="ORGANIZATION" weightage="80" keywordseo="MNREGA">MNREGA</keyword> where 3 crore of 9 crore active workers have Aadhaar-linked bank accounts. One crore wage transactions have been remitted and the process has become more efficient and transparent with 87,000 banking correspondents providing village and neighbourhood-level micro ATM services. 
 

	Aadhar is particularly crucial for BPL families who are the primary beneficiaries of PMJDY and three pensions schemes run by the Centre — Atal Pension Yojana, PM Suraksha Bima Yojana and PM Jeevan Jyoti Bima Yojana --are linked to UID. The schemes, according to official sources, are intended to provide a wide coverage by way of insurance with small premiums, flagged by the government as a key policy goal. 
	 
	Image credit: Indiatimes

Aadhar card the most widely held identification document with enrolment of 92 crore people

New Delhi, Amid the coronavirus pandemic when the pace of manufacturing and services sector came to a grinding halt, <keyword id="6355165" type="UNKNOWN" weightage="20" keywordseo="agriculture">agriculture</keyword> and allied sectors in India have picked up pace as the country saw the strength of the farm sector. The <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword> also took care of a large population of the country related to agriculture and farming and enacted new laws to intensify the winds of improvement in the agricultural sector. The <keyword id="6358021" type="COMPANY" weightage="20" keywordseo="budget">Budget</keyword> 2021-22 is going to be presented in <keyword id="6354721" type="COMPANY" weightage="20" keywordseo="parliament">Parliament</keyword> on Monday, amid wrangling over agricultural reform. In such a situation, it is expected that the Modi government, which claims to give priority to the progress of villages, the poor and <keyword id="45092" type="COMPANY" weightage="20" keywordseo="farmers">farmers</keyword>, will also give priority to agriculture and rural development in the upcoming Budget. According to the Economic Review 2020-21, while the industry and services sectors are projected to fall by 9.6 per cent and 8.8 per cent, respectively, in the current financial year, the growth rate of agriculture and allied sectors can remain at 3.4 per cent. The agriculture and allied sectors recorded a growth rate of 3.4 per cent at constant prices during FY 2020-21 (first advance estimate). The Modi government's priority has been to double the income of farmers by 2022 and to develop basic facilities in villages including 'pucca' houses for all the poor in the country. Therefore, with a view to achieving these goals, the budgetary allocation of major schemes of agriculture and rural development sector can be expected to increase in the upcoming Budget. A senior official of the Union Ministry of Agriculture and Farmers Welfare said that farmers' awareness about all the schemes of agriculture sector including Prime Minister <keyword id="7283018" type="PERSON" weightage="20" keywordseo="kisan-samman-nidhi">Kisan Samman Nidhi</keyword> (PM-KISAN) is continuously increasing and the benefits of these schemes are beginning to be seen at the ground level. The government will also focus on the scheme to provide short-term agricultural loans to farmers at affordable interest rates. Other schemes of the agriculture sector, including the Prime Minister Crop Insurance Scheme, the Prime Minister Agricultural Irrigation Scheme, can also be given importance in this budget. Agricultural economists point out that along with agriculture, the government will give prominence to the plans of the food processing industry, which will help in achieving the goal of doubling the income of farmers. Major schemes for the development of villages proved to be very helpful in providing employment opportunities to the workers migrating from the cities during the corona period. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), in addition to providing employment to the daily wage labourers in the villages, proved to be crucial in the development of basic infrastructure in the villages, which was called an opportunity in disaster and under the self-sufficient India package. Experts say that in the upcoming Budget also, other rural development schemes including MNREGA can be increased. The budgetary allocation of MNREGA was ₹61,500 crore in 2020-21, but under the self-sufficient package in the corona era, an additional allocation of ₹40,000 crore was made for the scheme. Farmers have been agitating for more than two months on the borders of Delhi to repeal the new agricultural laws and to demand a legal guarantee for the purchase of crops at the minimum support price (MSP). Agricultural experts point out that MSP is a big issue in the farmers' movement, so some announcement can be expected in the Budget regarding MSP as well. Union Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> will present the General Budget of the upcoming financial year 2021-22 in Parliament on Monday. SEE ALSO: <a href="https://www.businessinsider.in/travel/article/the-many-marvels-of-satpura-biosphere-reserve/articleshow/80598269.cms">The many marvels of Satpura Biosphere Reserve in Madhya Pradesh</a> <a href="https://www.businessinsider.in/budget/news/india-travel-and-tourism-sector-is-hoping-that-the-budget-2021-wont-leave-them-behind/articleshow/80596702.cms">India’s travel and tourism sector is hoping that the Budget won’t leave them behind</a>

Rural poor, farmers' progress to be government's priority :Budget 2021

New Delhi, Mar 26 () Finance Minister Nirmala Sitharaman on Thursday announced 5 kg of wheat or rice and one kg of preferred pulses free-of-cost every month for the next three months for 80 crore poor across the country to deal with the economic impact of the lockdown amid coronavirus outbreak.As many of 20.5 crore women Jan Dhan Account holders will get Rs 500 per month for next three months to run their households.For poor senior citizens, widow and disabled will get an ex-gratia of Rs 1,000.Also, the daily wage under MNREGA has been increased to Rs 202 a day from Rs 182 to benefit 5 crore workers.The minister said the government will front-load Rs 2,000 payment to farmers in the first week of April under the existing PM Kishan Yojana to benefit 8.69 crore farmers.Also, the beneficiaries of Ujjwala LPG scheme will get free cooking gas for the next three months, she said.This forms part of the Rs 1.70 lakh crore Gramin Kalyan Package. DP ANZ BALBAL

Govt to provide 5 kg grains, 1 kg pulses for free over next 3 months: FM

No foundation for oppn criticism of Budget:BJP in RSNew Delhi, Feb 11 () Hitting back at the Congress forits "incompetent doctors" remark on handling of the economy,the BJP on Tuesday said there was no foundation for theopposition criticism and termed as "wrong" the diagnosis andtreatment of the economy done during the UPA regime.Participating in the discussion on the Finance Bill, BJPmember Ashwini Vaishnaw said the Union Budget for 2020-21 hastaken care of all sections of society and all sectors toensure all-round development of the country.He said the demand will rise due to increased spendingpower and the government has infused money to increase publicsector spending."Our doctor is right and our diagnosis is alsoright....You did vote bank politics, while we are doing'sabka saath, sabka vikas,' he said."Your diagnosis was wrong and your treatment was wrongtoo. There is no foundation for your criticism. But you areindulging in misleading the country," he said.Initiating the debate on the Union Budget for 2020-21,Congress leader P Chidambaram had said on Monday that theeconomy was close to collapse and was being attended by "veryincompetent doctors."The BJP MP said investment and demand will rise throughthis budget and every section of society will be benefited.Justifying the RBI paying the government out of itsreserves, he said it is the duty of every central bank toreturn extra income to the government and central banksacross the world do this.Opposition members said the Budget has not lived up toexpectations and fails to address challenge faced by theIndian economy.They also attacked the Union government for the "step-motherly" treatment to states and privatisation of publicsector units including Life Insurance Corporation of India(LIC).PL Punia (Congress) said the government is not ready toaccept the crisis in the economy and urged the financeminister to consult experts to address the problem.He also accused the government of doing nothing for thewelfare of scheduled castes and tribals, saying sub-plansbe restored for SCs and Tribals.Continuing the debate on the Budget, TRS member K KeshavaRao said the Budget has set up an ambitious disinvestmenttarget and would be difficult to achieve. He said the dual taxsystem proposed in the Budget would benefit charteredaccountants.The TRS member also raised the issue of "step motherly"treatment being given to States in devolution of taxes.Binoy Vishwam (CPI) said the economy is already on"ventilator" and the Budget does not provide any solution toit.He accused the government of selling off national wealthto select private companies.Vishwam said even the BJP-RSS affiliated trade union BMSis opposing the stake sales in the LIC. He also rued thatallocation for MNREGA has been lowered by around Rs 10,000crore.BSP member Veer Singh said the Centre has "ruined" theIndian economy and unemployment is at a 45 year-high. Hecharged the BJP-ruled central government has failed to fulfilits promises.He alleged the Centre is ending reservations for SC/STsand OBCs.Singh asked the government to provide reservation toSC/STs and OBCs in private sector if it is serious andcommitted to welfare of backward classes.Kumari Selja of the Congress focused on Haryana in herspeech and said the State has not got its due in terms ofallocation of funds."There was lot of expectation from the Budget that itwill address problems of the country as well that of women,"she said, adding the Budget turned out to be a damp squib.The Congress leader raised the reservation issue andaccused the Central government of misleading the House.Participating in the debate, BJP leader RajeevChandrashekar said the Budget continues to address the "mess"in the economy left by the previous government. The UPA regime had left the economy in a crisis andfinancial market in a devastating state as scams explodedowing to loans given to 10 groups, he charged. "This nightmare was turned around by our government...Oureconomic management is in sharp contrast to theirs. We havedelivered unprecedented macro economic strength to theeconomy. This is the fact," he said, listing out achievementsof the Modi government in the last six years. However, there were cyclical and structural issues owingto disruptions in global trade, he said and added, "theseare growing pains in any economy and the government willaddress them all."Hitting out at Chidambaram for the doctor remarks, theBJP leader said, "Atal Bihari Vajpayee's government had lefthealth and robust patient (economy) and handed it over to adream team of doctors (Congress) which after ten years left itterminally ill... "But the Modi government revived it although some painremains and that will be addressed. The government will notleave the patient to relapse," he said, adding the Budget 2020is a "careful and prudent" budget. He said the government is off to a good budget start andhopes to achieve the target of USD 5 trillion economy. Criticising the budget, Congress leader Ripun Bora said itwas the "longest budget with shortest expectations" and listedout failures of the present government. He said the government has not set up a mechanism fordoubling of farmers' income. The budget allocation has beenmade only for 100 water stressed villages even though thegovernment's survey had identified 255 villages in 2019. Even on ease of living, the government has not made anyprogress as purchasing power of people has been decliningbesides there is rise in prices of essential items and growingunemployment, he said. Although one cooking gas cylinder is given free under theUjwala Scheme, people are not able to afford subsequentcylinders at such high rates, he said.Bora said a person gets rice at a subsidised rate of Rs3/kg from ration shops but to cook it he needs Rs 45 per litrefor kerosene and over Rs 1,000 per cooking gas cylinder. On Swachh Bharat Mission, he requested the House to senda parliamentary panel to Assam to check the quality of toiletsbeen build under this programme. Most toilets are notfunctional as they are not clean in the absence of water andeven quality of construction is poor. On unemployment, the Congress leader said lowerallocation of Rs 3,000 crore for skill development shows thelevel of government's commitment towards resolving the problemof unemployment in the country.Similarly on developing smart cities, the budgetallocation has been made for only five cities, although 100cities were identified, he said, adding Assam was ignored inthe budget. "Overall, this budget is not 'Sabka Sath, Sabka Vikas', itis Ambani and few companies' vikas," he charged. NKD MJHSKC LUXDV DV

RS-BUD-DEBATE

(Eds: Adding details) New Delhi, Mar 26 () The government on Thursday announced a Rs 1.7 lakh crore stimulus that included free foodgrain and cooking gas to poor for three months, and cash doles to women and poor senior citizens as it looked to ease the economic impact of the nationwide lockdown.While over 80 crore poor ration card holders will each get 5 kg of wheat or rice and one kg of preferred pulses free of cost every month for the next three months, 20.4 crore women having Jan Dhan bank accounts would get one-time cash help of Rs 1,500 spread over three months.Over 8.3 crore poor women, who were handed out free cooking gas connections since 2016, will get free LPG refills for the next three months, while poor senior citizens, widows and disabled will get an ex-gratia cash of Rs 1,000."Since the lockdown has been in force (since Wednesday) and therefore we have come out with a package which will immediately take care of the concerns and welfare of poor and suffering workers and those who need immediate help," Finance Minister Nirmala Sitharaman said at a news conference here.The package, she said, is being announced within 36 hours of the 21-day nationwide lockdown announced by the Prime Miniter to protect the nation's 130 crore people from the fast-spreading coronavirus. "We do not want anyone to remain hungry."She hinted at more announcements if a need arises."So, today's measures are very clearly aimed at reaching out with food and money that they need to have it in their hands. We will obviously think about other things. I will gradually address if there is more to attend," she said.The package included advancing the payment of one-third of the Rs 6,000 a year pre-2019 general election cash dole scheme for farmers, government contributions to retirement funds for the next three months of small companies with 90 per cent of staff earning less than Rs 15,000, and a Rs 50 lakh insurance cover to healthcare workers.For rural workers, the daily wage under the MNREGA employment guarantee programme has been increased to Rs 202 from Rs 182, benefiting 5 crore workers of about Rs 2,000 in all.India joins countries -- from the US to Singapore -- that have pledged spending to contain the economic fallout of the pandemic that has infected almost 5 lakh people globally and left over 21,000 dead.The pandemic has infected 649 persons in India and has killed 13 so far.While the free food grains and pulses would cost Rs 45,000 crore, Rs 2,000 payment to 8.7 crore farmers under Pradhan Mantri Garib Kalyan Yojana will cost Rs 16,000 crore.The cash to women Jan Dhan account holders will cost Rs 31,000 crore and another Rs 13,000 crore is estimated to be the expenditure for providing free cooking gas.Sitharaman, however, evaded a reply to questions on how the government will finance the package given that the impact of the closure of businesses across the country will be felt over the next few months and would have a direct bearing on already strained tax collections.She also did not say if the government will relax budget deficit targets or resort to additional borrowings to fund the programme.The revised fiscal deficit - the gap between revenue and expenditure - has been put at 3.8 per cent of the GDP in the current fiscal. For the fiscal starting April, the government is targeting a 3.5 per cent fiscal deficit."Today's measures are very clearly aimed at reaching out to the poor," she said. "At this stage, I am more concerned about reaching out to those who need help."With businesses closed during the lockdown, the government will contribute employees as well as employer's contribution to the provident fund for the next three months of companies with up to 100 employees with 90 per cent earning not more than Rs 15,000. The contribution will be a total of 24 per cent of eligible wages.Also, workers will be allowed to draw a non-refundable advance of 75 per cent from credit in provident fund account or three months salary, whichever is lower, she said.Sitharaman said the limit of collateral-free loans to 63 lakh women self-help groups is being doubled to Rs 20 lakh, impacting 7 crore households.The free foodgrain and pulses are over-and-above the existing entitlement through the public distribution system (PDS). The ration card holders can take the foodgrain and pulses from the PDS in two installments, she added.The government had previously relaxed timelines for meeting tax and other statutory filing requirements as well as allowed companies to divert their philanthropy or CSR funds to support the fight against coronavirus.These measures and the ones announced on Thursday will be topped up by the expected announcement of interest rate cuts by the Reserve Bank of India (RBI) at its bi-monthly monetary policy review meet slated next week.Commenting on the package, Anil Talreja, Partner, Deloitte India said the announcements are is expected to give reprieve to the mass sections of the population. "This is a good way to ensure that the poor and needy get what they deserve. It has ensured that the farmers, poor senior citizens, widows and specified sections of the society as well as people who are attached to the healthcare sectors get rewarded for their hard work and sacrifices". DP ANZ BAL

Govt unveils Rs 1.7 lakh cr stimulus to help poor hit by lockdown

Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> presented the Union Budg2017, his fourth annual <keyword id="6358021" type="PERSON" weightage="20" keywordseo="budget">budget</keyword>, today. The highlights of Budget 2017 are : 
 
 
Monetary policy to be expansionary in major economies 
 
More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy 
 Pace of remonetisation has picked up; <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> effects will not spill over to next year 
 
Functional autonomy of the railways to be maintained 
 
Demonetisation will help in transfer of resources from tax evaders to government: 
 
Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport 
 
Only transient impact on economy due to demonetisation; long term benefit include higher GDP growth and tax revenue 
 
GDP will be bigger, cleaner after demonetisation 
 Effects of demonetisation not expected to spill over to the next year, says <keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">Finance Minister</keyword> 
 
 Effects of demonetisation not expected to spill over to the next year, says <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword> Minister 
 
 
Govt took two tectonic policy initiatives - passage of GST Bill and demonetisation 
 
Demonetisation was a continuation of series of measures taken by govt in 2 yrs; it is bold and decisive measure 
 
We are seen as engine of global growth; IMF sees India to grow fastest in major economies 
 
36 pc increase in FDI flow; forex reserves at USD 361 billion in January enough to cover 12 months needs 
 
CAD declined from 1 pc last year to 0.3 pc in first half of current fiscal: FM 
 
 
India has emerged as bright spot in the world: FM 
 
 
Uncertainty around commodity prices especially oil to have impact on emerging economies: FM 
 
Double digit inflation has been controlled; sluggish growth replaced by high growth; war on blackmoney launched: FM 
 
We have moved from discretionary based administration to policy based administration: FM Jaitley 
 
Agricultural sector is expected to grow at 4.1 per cent this fiscal, says Jaitley 
 
Demonetisation was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP 
 
Committed to double farm income in 5 yrs 
 
Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture 
 
Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country 
 
Budget presentation advanced to help begin implementation of schemes before onset of monsoon 
 
We will continue the process of economic reform for the benfit of poor 
 
Spend more in rural areas, infra, poverty alleviation, while maintaining fiscal prudence as guiding principle of Budget 
 
Our agenda for next year is to transform, energise and clean India 
 <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword> expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19 
 
Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation 
 
Rs 9,000 cr higher allocation for payment of sugarcane arrears 
 
Target of agriculture credit fixed at Rs 10 lakh cr in 2017-18 
 
Tax administration honouring the honest is one of the 10 pillars of Budget 2017-18 
 
National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies 
 
133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14 
 
Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore 
 
1 cr households to be brought out of poverty under Antodya Scheme 
 
Participation of women in MNREGA increased to 55 pc from 45 pc in past 
 
Modern law on contract farming will be drafted and circulated to states 
 
Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore 
 
Market reforms will be undertaken, states will be asked to denotify perishables from Essential Commodities Act 
 
Space technology to be used for monitoring MNREGA implementation 
Sanitation coverage in villages has increased from 42 pc in Oct 2016 to 60 pc, a rise of 18 pc, says FM 
 
We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations 
 
To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr 
 
100 pc electrification of villages to be completed by May 2018 
 
27,000 cr on to be spend on PMGSY; 1 cr houses to be completed by 2017-18 for houseless 
 
PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad 
 
The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 crore 
 
In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions 
 
A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up 
 
Two new AIIMS to be set up Jharkhand and Gujarat 
 
New rules regarding medical devices will be devised to reduce their cost 
 
1.5 lakh health sub centres to be converted to Health Wellness Centres 
 
National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18 
 
Rs 500 cr allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh cr to Rs 1.84 lakh cr for women &amp; child welfare. 
 
Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget 
 
Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent 
 
35 pc increase in allocation for SC to Rs 52,393 cr 
 
For senior citizens, Aadhaar based health cards will be issued 
 
Model Shops and Establishment Bill to open up additional opportunities for employment of women 
 
Select airports in tier-II cities to be taken up for operations, development on PPP mode 
 
New metro rail policy to be unveiled 
 
Railway tariffs to be fixed on the basis of cost, social obligation and competition 
 
Service charge on e-tickets booked through IRCTC will be withdrawn 
 
Delhi and Jaipur to have solid waste management plants and five more to be set up later 
 
Government proposes Coach Mitra facility to redress grievances related to rail coaches 
 
500 stations will be differently abled by providing lifts and escalators 
 
Unmanned railway level crossings to be eliminated by 2020 
 
Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17 
 
Total allocation for rural, agri and allied sectors for 2017-18 is a record Rs 1,87,223 cr, up 24 per cent from last year 
 
Rs 1 lakh cr corpus for railway safety fund over five years 
 
A scheme for senior citizens to ensure 8 per cent guaranteed returns 
 
Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop 
 
Digi Gaon will be launched to promote tele-medicine and education 
 
Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed 
 
Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year 
 
For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore 
 
Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18 
 
Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr 
 
Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore 
 
Dispute resolution in infrastructure projects in PPP mode will be institutionalised 
 
Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital 
 
Govt to further liberalise FDI policy 
 
Over 90 per cent of FDI proposls are now processed through automatic route 
 
FIPB will be abolished 
 
Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh cr 
 
Second phase of solar power development to be taken up with an aim of generating 20,000 MW 
 
After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank accounts at an average of Rs 5.03 lakh till Dec 30 
 
More funds beyond Rs 10,000 cr for recapitalisation of banks will be provided if needed 
 
The shares of railway CPSCs like IRCTC and IRFC to be listed on various stock exchanges 
 
We are largely a tax non-compliant society 
 
New ETF with diverse stocks will be launched in 2017-18 
 
Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried 
 
Integrated public sector oil major to be created to match global giants 
 
Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors 
 
Urgent need to protect poor from chit fund schemes, draft bill placed in public domain 
 
Computer emergency response team to be set for cyber security of financial sector

Union Budget 2017: Here are the highlights so far

From emphasis on agricultural productivity to huge allocation for MNREGA to fiscal discipline, experts said Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has presented a well-balanced and a reformist budget. 
 
Experts lauded reducing rural distress and maximising returns for farmers. 
 
Richard van der Merwe, CEO of Bayer CropScience Ltd, said the outlay towards development of roads and national highways will help in the movement of perishable goods and driving accessibility and price parity across the country for end consumers. 
 
“The Finance Minister’s proposal to focus on agriculture and farmers' welfare and allocation of over Rs. 5000 crore towards crop insurance scheme, direct benefit transfers for fertilizers, enhanced irrigation acreage and agri credit targets to the tune of Rs. 9 lakh crore is a very welcome move,” he said. 
 
Also, Jaitley said India stood ground in difficult times and amid weak global environment. 
 The government is firm on its course towards fiscal consolidation without compromising on its development agenda and 3.5% <keyword id="6365485" type="UNKNOWN" weightage="20" keywordseo="fiscal-deficit">fiscal deficit</keyword> is targeted for FY 2017. 
 
“With aim of 3.5% fiscal deficit the approach toward fiscal consolidation is a right approach. Focus on rural economy will benefit companies like us which has more than 90% of its clients’ base staying in rural areas. Allocation of 3800 crore to MGNREGA is also a positive. It will boost the rural economy in difficult times for agriculture. Overall a very mature and reformist budget,” said Sadaf Sayeed, Chief Executive Officer, Muthoot Microfin Ltd. 
 Jaitley, in his <keyword id="117156" type="UNKNOWN" weightage="20" keywordseo="Budget-speech">budget speech</keyword>, also rolled out several reforms, one of which was PM Jan Aushadhi Yojana, assuring quality medicines at affordable prices. 
 
Pradeep Dadha, Founder &amp; CEO, Netmeds.com, said, “The budget announced opening of 3,000 stores in 2016-17 under Prime Minister's Jan Aushadhi Yojana is a very welcome and innovative move by the government. 
 
However, the tourism industry was not that happy with the budget proposals. 
 
Sharat Dhall, President, Yatra.com said, “The much awaited budget has turned out to be very friendly for the Aam Aadmi but there could have been a bit more in it for the corporate sector. The proposal to increase the tax on ATF (Aviation Turbine Fuel) will result in increase in airfares and dampen air passenger growth which could have been a catalyst for economic growth.” 
 
Still, the pitch to revamp roads and airports across the country was lauded, which would connect people to unexplored destinations. 
 
(Image: Indiatimes)

Arun Jaitley on right trajectory, say experts

It will be a grave injustice if we do not mention the backdrop in which FM has to present the budget. The FM has a difficult task of meeting twin objectives – sticking to the path of Fiscal consolidation and increasing public investment. Also, the country has suffered from poor monsoons in previous two years contributing to agrarian distress. Most of the economic indicators are in red and even there is a global slowdown. The CPI is around 5.5% but the WPI is -0.9%. The GDP Deflator is also negative. The Index of Industrial Productivity is also falling to -1.3%. The burden of the Seventh Pay Commission and the One Rank One Pension also adds to this. In such a scenario, one thing is certain, you have to be a magician to appease all the sections of society. 
 

	This budget is aimed at addressing the structural issues which the country is facing. It is good to see that government has identified the key pillars on which it needs to lay emphasis. It signifies the intent and the purpose with which the government is going ahead in front of the people. From the various measures taken, it is quite evident that the government was very clear that it has to address the problem of agriculture sector in the country. A sector which employs around 50 % of the population should be given a major share of the budgetary allocation, and the FM has struck the right chord this time. Clear focus on the irrigation allocation of 20000 crores will aim to reduce the monsoon dependence of the agricultural sector. The increase in the outlay towards rural and social infrastructure is also in line with financial inclusion mission of the Government.
 From the macroeconomic standpoint, it will spur the rural consumption and will contribute to the GDP of our <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword>. It is unfortunate that after 68 years of independence, we are still plagued with the same problems of poverty, inequality, agrarian distress, rural electrification etc. Increasing the MNREGA spending, waiving the loans of farmers, etc. are artificial measures which in the short term is perceived to be a solution, but it pushes deep into the vicious cycle of poverty. So, though government celebrates that they have increased the rural expenditure on the budget statement and addressed the problems of the rural people, but somewhere they forget that the real monster is alive and time and again it will keep on coming to haunt you. So, skilling is one such area which the present Government is taking seriously. So far we have had many schemes running over the years, but the problem hasn’t been addressed. Every time a new government comes, it either changes the name of the policy or come up with similar schemes. And, the problem still remains as it is. The reason is if you are trying to address a problem that has a lot of ramifications, you can’t have a unidimensional scheme to fix it. We will have to see the holistic picture, and realize that schemes can’t work in silos; they need to be integrated with each other to address the common objective. On the infrastructure and investment front, the government has decided to invest 2.18 lakh crore on roads and railways. This is a very good step in the right direction. Investors were also expecting more concrete steps as far as retrospective tax is concerned. Merely stating that government has no intentions to go for retrospective <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> is not enough to gain the full trust of investors. A clearly defined unambiguous action plan is needed. GOI has engineered a new way to curb black money evasion. In this budget, they came up with a proposal that if people will disclose their black money within a specified time then apart from 30% tax only 15 % will be charged as penalty. If the government later identifies such persons then a penalty of 90% will be charged. This can help the exchequer if some disclosures do take place. Also the government hasn’t explained in detail that how it will generate revenue to fund the expenditure which is lying in front of it like the Seventh Pay Commission and the One Rank One Pension. <keyword id="6365485" type="UNKNOWN" weightage="20" keywordseo="fiscal-deficit">Fiscal deficit</keyword> target which government has stated seems very good on paper, but it is based on the assumption that global crude oil prices will remain at an average of $35 per barrel. It was good to see that government has made education a part of the nine pillars and increased the budgetary allocation from Rs 68,963 crore in FY 16 to Rs 72,394 crore in FY 17, which translates to a 4.9 % increase in education sector compared to last year. On deeper analysis, if we take <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> and GDP growth rate into account, the budgetary allocation is effectively lesser than the last year. Moreover, we are still off target as far as the requirement of the sectoral budget allocation of 6 % of GDP is concerned. Also the budget allocation in the health sector remains a low of 1.28%. This is small compared to the total spending in this sector (4.2% of the GDP). So most of the spending in this sector continues to be out of pocket with about 70% in the private sector. One of the causes of bankruptcy for the poor is the lack of access and the high cost of healthcare. So it was expected that more allocation to the health sector, especially in the sector of preventive and primary sector, would take place. Also some new scheme in government health <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> or strengthening the existing health schemes like RSBY, VAS was expected. But no such steps were taken towards this sector. 

	After the RBI suggested the cleaning up of bad loans, it was observed that for the public sector banks, the gross NPA rose to 26 % compared to last year. Though the government has allocated 25,000 crores for the recapitalization of the banks, it is peanuts compared to the mess in which the banks are in. On a little bit of number crunching, it was observed that this amount is not even sufficient to compensate for the quarterly losses of the public sector banks. So, currently we are facing a twin balance sheet challenge – both the banks and corporate sector balance sheet are in distress, which is significantly affecting the private investment. Concrete steps in the form of action plans to revive the present situation of banks were missing in the budget.
 We see that the global market is going through a slowdown. The global commodity prices are low. Our industries which are dependent on the export are slowing down as a result. The domestic demand is also slow. So most heavy industries like the Steel, Petrochemicals are at a loss. They are operating well below their potential capacity. So the industry was expecting a boost from this financial budget. A major step in the process would have been lowering the Corporate Tax as earlier envisioned by this government. Corporate tax rebate for industries with a turnover of Rs. 5 crore only, will exclude most medium and large size industries. There were no concrete steps towards <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> and no mention was done about the exit policy of the industries which could have revived the sentiments of the private investors. However, the finance minister has laid the measures to boost the startup ecosystem. A proposal for tax exemption on profits, one-day registration of companies and the exemption of capital gains tax for the startup <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> are the key notifications. The FM also announced setting of a fund to raise Rs. 2500 crore annually for four years to fund the startups. This is definitely a positive step towards the startup India movement. 

	Lastly, we often jump the gun and declare a budget as pro-agriculture or pro-corporate. It is high time that we realize that any scheme addressed to a particular section should be treated as pro-India scheme, because as we can’t function if one our body part is not functioning properly. In the same way, our economy will not touch its true potential unless all sections of society grow together. We need to get out of this silo mentality and look at the picture holistically. If corporate houses benefit from a policy, it, in turn, generates employment opportunities, which benefits the unemployed people from a rural background. On the other hand, if the policies are aimed at improving the standard of living of the rural population, then the rural consumption increases. This increase in consumption, in turn, generates demand for corporate houses to leverage. In a nutshell, a change in outlook will help us realize that there exists a symbiotic relationship between corporate houses and rural agriculture, unlike the zero sum game which is portrayed for selfish political interest.
 

	 
	
		(The article is written by Siddharth Jain and Joydeep Chakraborty)
	 
	
		Disclaimer- the views published in this article are the personal opinion of the author.

IIM students review Budget: Is India's balance sheet good enough for structural Reforms?

<ul><li>Two consecutive leaks from Kodali of Aadhaar numbers</li><li>Posted leaked numbers on Twitter</li><li>Database maybe secure but government portals need additional security</li></ul>Two new cases have come to light with a total of 8.9 million Aadhaar numbers of MGNREGA beneficiaries leaked through the Andhra Pradesh Benefit Disbursement Portal. The details were spotted by Srinivas Kodali, also known as @digitaldutta, who published screenshots on Twitter. 
 
 
 
 
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His earlier tweet shows how people’s Aadhar numbers are being to used to collate data on their location, religion, caste, phones numbers and bank account numbers. 
 
 
 
 
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The first leak by Kodali was from the Andhra Pradesh State Housing Corporation. It showed an even grimmer reality of how Aadhar numbers are being linked to caste, the type of house a person lives in and the extent of damage it has suffered. 
 
 
 
 
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Since then, he has reported the issue to the authorities, but his <a href="https://thenewsminute.com/article/13-lakh-aadhaar-numbers-leaked-andhra-govt-website-linked-personal-details-80178">fear</a> is that the surveys conducted in Andhra and Telangana have allowed citizens to carry phones and biometric readers, collecting private information on almost every individual. Not the first time Most recently, Karan Saini, a security researcher, told <a href="https://www.zdnet.com/article/another-data-leak-hits-india-aadhaar-biometric-database/">ZDNet</a> that <keyword id="6356006" type="UNKNOWN" weightage="20" keywordseo="Aadhaar-card">Aadhaar card</keyword> information could be obtained through Indane’s system, a state-owned utility company. According to them, they tried to contact the authorities for over a month through several avenues but to no avail. The affected endpoint was only pulled offline once the story had gone live. <a href="http://www.tribuneindia.com/news/nation/rs-500-10-minutes-and-you-have-access-to-billion-aadhaar-details/523361.html">The Tribune</a> also looked into the Aadhaar database and found that they could attain all the details about a person by typing in the 12-digit unique identification number once they paid an agent ₹500 (approximately $8). For another ₹300 (approximately $5), that same individual could even print out a copy the Aadhaar card, which could then be used to access various government schemes. Even the Android Aadhaar app was <a href="https://www.indiatimes.com/technology/news/french-cyber-expert-cracks-official-aadhaar-app-in-1-minute-realizes-uidai-s-worst-nightmare-341416.html">hacked</a> by Robert Batiste, a french researcher, in under a minute. 
 
 
 
 <div type="javascript" title="Custom"><cdata><![CDATA[


]]></cdata></div> That said, Aadhaar breaches haven’t been directly through the Aadhaar database, but through various government portals and third-parties. So, Ajay Bushan Pandey, CEO of <keyword id="6355252" type="DEFINITION" weightage="20" keywordseo="uidai">UIDAI</keyword>, wasn’t incorrect when he said that there have been no data leaks from the UIDAI database. The Aadhaar card system, in its usage, is more than just the database. There’s a wide ecosystem to be take in to account where security concerns are yet to be addressed. A secure database doesn’t necessarily imply security of information since so much of it exists outside the Aadhaar database itself.

Indian government portal leaks 8.9mn Aadhaar details, again

As anticipated the FM has leaned towards stability possibly at the cost of some difficult-to-attend growth. This budget may not go down in the annals of Indian budget history’s ‘hall-of-fame’ as its more illustrious peers such as 1991 Manmohan Singh ‘Liberalisation’ budget or Chidambaram’s ‘Dream Budget’ of 1997. But clearly this may be remembered as a budget where the FM decided to stick to the promised road of fiscal consolidation. He may as well have chosen to forego the fiscal consolidation path and pushed for growth. But possibly he believed that in the long run macroeconomic stability and a reputation for fiscal discipline benefits a country more than a few quarters of growth. 
	 
	In a world on negative interest rate(Eurozone/Japan), burgeoning fiscal deficit(FD)(Oil Producing Nations) and surging sovereign debt(some Latin American and OPEC nations) India may , going forward , prove to the an oasis of relative macro-economic stability. However, in this gambit it is possible that GDP growth may go down to an extent. However one may hope that the stability will make up for it keeping the overall attractiveness intact. Of course like all budgets there is some optimistic expectations and some ‘optical adjustments’, but which budget does’nt. 
	 
	 
	Fiscal Deficit Math and oodles of Hope 
	 
	The FM may strictly stick to the original target of fiscal consolidation (3.9% FD in FY16; 3.5 in FY17; 3.0 in FY18) only till FY17. Given the proposal that going forward the FD target may be a range(as opposed to a fixed number) it will be surprising if the FY18 target may be very strictly met. 
	 
	As far as the FY17 target of FD of 3.5% of nominal GDP is concerned, the current budget assumes a nominal GDP growth of 11%. The FD of FY17 is estimated at Rs 5.33 Trillion (lakh crore). Advance estimates the FY16,currently available, projects a nominal GDP of Rs 135.67 trillion (Previous Budget in Feb 2015 estimated it at Rs 141 trillion ). 
	 
	In this, there is a distinct element of déjà vu of the previous budget. The current budget per se does not have significant growth drivers. So one may wonder that what can be the reason for FY17 nominal GDP growth to hit 11%, particularly if it has been trending down since FY13 and is currently(FY16) estimated at more than a decade low(FY16:8.6% ;FY15: 10.8% ; FY14:13.3% ; FY13:13.9%). Of course if FY17 nominal GDP is recalibrated downward as has been the case for FY16 (for that matter every single nominal GDP since 2011) then the fiscal deficit target may be a challenge. 
	 
	More ‘Socialistic’ allocation: 
	 
	Given the constraints the budget could not have put tremendous thrust of capital investment as well as on social sector. The budget focussed its limited resources to rural sector which was reeling after two years of bad monsoon. The budget proposes to allocate Rs87,765 crore towards rural development. Specifically it pushes for a revival of MNREGA where the allocation is Rs 38,500 crore and a sharp increase in rural road project to Rs19,000 crore. It did not go with the outright populist route of farm loan waivers and increase the burden on the bank. However, it tried to provide a structural solution to agriculture loan default by introducing farm insurance policy. 
	 
	In fact, to protect the economically backward sections from event risks the budget proposes a household level insurance of INR 1 lakh(0.1 Million). Likewise the budget focusses on extending credit facility to the extent of INR 1.8 trillion in FY17(FY16 1.0 trillion) for small and micro enterprises under its MUDRA scheme. Clearly the implied growth model of this budget is a ‘bubble-up’ growth model as opposed to a ‘trickle-down’ growth model. To the extent most of India Inc and equity investors are a fan of ‘trickle-down’ growth model, some of them may feel a bit underwhelmed. 
	 
	Enhancing Tax Compliance &amp; Tax Base 
	 
	Business with less than Rs 2 crore (20 million) in revenue and professionals with less than Rs 50 lakh(5 million) would be presumed to have a net income of 8% and be taxed accordingly. While this may appear as very easy to comply (which it is) still typical mechanisations used thus far to avoid paying any tax may also come to an end. Small traders who were often perceived to be among the core supporters of BJP may not be ecstatic at this prospect of paying taxes. In fact one may have to wait and watch if this budget will alienate the typical supporters of a right oriented party such as BJP, since BJP may be trying to woo the larger masses. 
	 
	Budget cannot do everything: 
	 
	The markets were possibly expecting the budget to allocate Rs30,000 crore (Rs 300 billion) or more for recapitalisation of banks in this fiscal. In sticking to the plan as per previous budget the current budget allocated Rs 25,000. As far as capitalisation, of public sector banks is concerned in next three years it will possibly require Rs 2 trillion (for Basel III compliance) while government has allocated a total of Rs 700 billion over the same period. However, even if the whole amount is provided it is unlikely to solve Indian banking’s problems. 
	 
	As of latest reports the systemic bad debt currently recognised in Rs8 trillion(close to three-quarters of which are in public sector bank). Given the recovery rate of 30-40% over a period of seven years (still somewhat optimistic) an amount of Rs 2 trillion equity may be required just to recapitalise for the loss over and above the Basel III requirement. What Indian banks need is a bankruptcy law to facilitate prompt recovery and that has to be done outside the budget. 
	 
	Similarly, the infrastructure push is somewhat moderate in the current budget. It’s a moot point that if the budget had pushed for higher infrastructure spend, are there enough infra-construction players left who are currently not under stress or they have sufficiently low leverage so that banks could have lend them more to execute on the higher quantity of government projects? Thus given the constraints this is possibly the most anyone could have done. 
	 
	Deep Narayan Mukherjee is a former senior director of Corporate Credit Rating at India Rating and Research, a Fitch Group company. He is currently a visiting faculty at IIM Calcutta

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