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Economic Development

  • Budget to focus on women, farmers

    THE upcoming Union Budget should have a special focus on women and farmers. This message was conveyed by Congress chief Sonia Gandhi while speaking at a function in her constituency, Rae Bareli, on Wednesday, where she expressed certainty that finance minister P Chidambaram would "keep the common man's difficulties, especially faced by women and farmers, in mind while preparing the budget'. Speaking at a Bank of Baroda function to launch the 1,000th self-help group, Ms Gandhi was also quoted by agencies as saying that while 8-9% economic growth was not a mean achievement, real happiness would come when the common man's difficulties are wiped out. She added that health and education were keys for achieving real happiness. The comments are politically significant as many in the Congress have been saying much the same thing. At a pre-budget meeting with Mr Chidambaram recently, Congress leaders pointed out that 9% growth alone growth was unlikely to pay dividends for the party in an election year. They had asked the FM to focus on the

  • Sonia, PM all ears to farmers ahead of kisan budget

    AHEAD of the Union budget, which is expected to make major announcements for the farm sector, Congress president Sonia Gandhi and Prime Minister Manmohan Singh met farmers' representatives from Maharashtra, Haryana and Rajasthan here on Thursday. A large number of farmers from these states were given audience with Ms Gandhi at her 10 Janpath residence in a bid to give her an opportunity to directly understand their problems, the party said. Congress leaders who attended the meeting said Ms Gandhi had assured them that "she would talk to PM and the FM' about their concerns. However, the Congress chief has already conveyed her message to the government that the budget should be aimed at the

  • MP lags in millennium development goals

    Madhya Pradesh is far away from achieving the United Nation's Millennium Development Goals (MDGs) by 2015, if one takes into account a mid-term evaluation report prepared by a voluntary group, Triple 7 Report. The report --- christened as 'Mid-term status of Millennium Development Goals in Madhya Pradesh - A Peoples' report' makes a telling commentary as to what extent the state lags behind on eight development goals as set by the United Nations over seven years back. The UN on September 8, 2000 made a declaration for the millennium which stated that by 2015, eight goals of development vis-a-vas removing extreme poverty and hunger, achieving universal primary education, empower of women and increasing gender equality, reducing infant mortality, improving health of mothers, fighting against diseases and protection of environment and its development would be achieved. A mid-term evaluation report on these goals in Madhya Pradesh, said that 44.77 lakh families in the state lived below poverty line, while 15.81 lakh families came in the circle of extreme poverty (quoting M P Economic Survey report 2006-07. The report quoting the National Sample Survey organization report, said that poverty in Madhya Pradesh declined from 37.43% to 21.4 per cent, which is far more than decline in poverty at national level from 26.1% to 21.8%. As per the latest report of the union government till July 2007, works towards strengthening livelihood of 1.15 lakh families in Bihar, 2.93 lakh families in Rajasthan, 95000 families in Andhra Pradesh had been undertaken but not families in Madhya Pradesh was getting this benefit. As per the National Rural Employment Guarantee Act, which provides guarantee for employment of 100 days per year to labourers, the state government as against issuing job cards to 43 lakh families, provided employment to merely 25.48 lakh families. The UN under its second millennium development goals had envisaged to increase enrollment of children in primary schools to 100 per cent by 2015. However, going by the present status of enrollment in Madhya Pradesh, it seemed unlikely that the state will achieve its goal by the given time period. A survey undertaken in 10 districts of the state under M P Shiksha Abhiyan in 2006-07, revealed that that the net enrollment ration of children in primary schools was at 84.5%. The report also said that 32% primary schools in the state had one primary teacher, while in 33.75% primary schools, there was no female teacher at all. The MDGs envisaged to reverse the trend of child mortality under five year by -3rd by 2015 but on this front also, the situation in Madhya Pradesh is far from satisfactory. The infant mortality in state stood at 76/1000 live births. Similarly, 2.4% of the children aged 12-24 years were not immunized against all prevalent diseases. The report also revealed a substantial drop on state government's expenditure on health which declined from 5.1% of the total budget in 2000-01 to 3.4% in 2004-05. The target to bring the infant mortality rate down to 53.14% hardly seems to be achievable. The report quoting National Family Health Survey III, said that the status of malnuitrion in Madhya Pradesh increased by 6.3%, going up to 60.3% the highest in the country. Similarly, the maternal mortality rate in the state stood at 379/1000, one of the highest in the country. As per the millennium development goals, the MMR and IMR in the state are essentially to be reduced to 220/1000 and 62/1000 respectively by 2011. By Krishna K Jha

  • Diversity in calorie sources and undernourishment during rapid economic growth

    This paper compares the experiences of India and Vietnam in dietary diversity and undernourishment from the early 1990s to the middle of the first decade of the new millennium. Feb 23-29, 2008

  • Role of Planning: A Comment

    A review of the role of planning should look at the possibility of expanding its role to municipalities, districts and panchayats rather than limiting it. Feb 23-29, 2008

  • Wooing the aam aadmi

    Surely car owners who get cheap petrol and rich farmers who get free water and power can't be aam? With the general elections due next year, there are obvious pressures on the finance minister to provide goodies for the aam aadmi. There are calls to abandon, or at least postpone by a few years, the fiscal deficit ceilings prescribed by the Fiscal Responsibility and Budget Management Act, so that funds are not a constraint. (If most of us believe that many politicians are corrupt, they reciprocate by believing that the best way to get the vote is by bribing the voter.) Given the concern about the aam aadmi in the bleeding hearts of our political masters, I have often wondered who exactly this aam aadmi is

  • Govt scraps 8 Goa SEZs

    First reversal after last year's protests in the state. As many as eight Special Economic Zones (SEZs) proposals in Goa were scrapped at one stroke by the inter-ministerial Board of Approvals, which met here today. The Board also decided to ask 12 developers in the state why their zones should not be cancelled. This is the first incident of a reversal of a Central policy, following a strong anti-SEZ movement in Goa last year that had threatened to bring down the Digambar Kamat-led Congress government. SEZs are underwritten by a central law passed by Parliament in 2005 that permits special taxation and other fiscal benefits to the developers and the units inside these zones. The Goa government, on December 31, 2007, had recommended that the Centre scrap all the zones in the state following widespread public protests. Anti-SEZ protesters had argued that the zones will put extra pressure on the already fragile infrastructure in the state and lead to a dilution of the Goan identity. Their argument was that "outsiders' would flood Goa in search of SEZ jobs that the locals will not be able to fill. This cancellation is the first time in history that ethnic issues have led to reversal of central industrial policy. Formally approved zones that are facing withdrawal of status include Inox Mercantile Company's 48-hectare Biotech zone in Verna, Panchbhoomi Infrastructure Pvt Ltd's 18.5-hectare infotech zone in North Goa and a 48-hectare Infotech zone of Paradigm Logistics in Verna. "We are following the principle of natural justice and are sending showcause notices to 12 formally approved zones. Proposals that were sent by the state and were yet to be considered by the Board of Approvals will be treated as withdrawn,' said Commerce Secretary Gopal Krishna Pillai, who heads the board. Three controversial SEZs in Goa

  • Centre show-cause to 12 firms; talks with Goa on SEZs begin

    The Centre has initiated talks with the Goa government regarding the de-notification of three special economic zones (SEZs) in the state, including the 123.2 hectare-Meditab Specialities SEZ planned by pharma major Cipla. The move follows the controversial decision of the state to scrap all SEZs within its territory following widespread public agitations against such tax-free enclaves. The developers of Meditab SEZ have already made investments of over Rs 130 crore in the project. Following a notification in April 2007, Meditab had also committed investments worth Rs 500 crore and imported machinery for its pharma plant. The law ministry has recommended addressing the issue of compensation to SEZ developers if the SEZs are de-notified. Besides Meditab SEZ, the other de-notified SEZs in the state are 20.36-hectare biotech SEZ by Penisula Pharma Research Centre and 105.91-hectare IT/ITeS SEZ by K Raheja Corp. The Centre has also issued show-cause notices to developers of 12 SEZs, which obtained formal and in-principle approvals, in the state, commerce secretary GK Pillai said here on Monday. Pillai heads the board of approval (BoA), the nodal body granting permission for establishing SEZs. "(As regards) all the formal and in-principle approval given to SEZs in Goa, the BoA will issue show-cause notices to them (developers) in the light of the recommendation of the state, following the principle of natural justice,' Pillai said. The developers will be asked why the permission granted to them should not be cancelled. On the 8 SEZ proposals that were forwarded by the state but yet to come before the BoA, Pillai said, the Centre has decided to treat them as "withdrawn'. The state had on December 31, 2007, asked the Centre to scrap all the SEZs citing representations, which said the zones would adversely affect tourism and environment. The state also said it does not have adequate water and electricity for such massive industrial activities. There was also criticism that SEZs will take away scarce land in the state. The Centre has indicated that the state government will have to compensate the developers of the SEZs for the investments made along with the interest amount to avoid litigation and further complications. Officials wonder how the land, acquired for the notified SEZs, would be returned to the original owners. At best, the government can deny the developers the status of SEZ, which entitles them for tax concessions. "Even if the SEZ status is removed, the units will remain in the domestic tariff area,' an official said.

  • Bihar announces gender budget'; agri sector gets maximum allocation

    Adding to its list of firsts, the Bihar Government has called this year's budget a "gender budget'. The budget has been planned in a way to focus on schemes launched exclusively for the welfare of women, said Deputy Chief Minister Sushil Kumar Modi, who also holds the Finance portfolio, after presenting the state's budget on Monday. Since coming to power over two years ago, the Nitish Kumar Government has been focusing on women empowerment, and gender budget is being seen as yet another step in that direction. Bihar is the first state in the country to institute 50 per cent reservation for women in panchayat bodies. Other populist schemes like providing school uniforms and cycles to girl students and monetary help for marriage of girls from poor families have already been started. The highlight of the state budget this year, however, was the focus on the agriculture sector. Allocation for the sector was increased from Rs 133.45 crore in 2007-08 to Rs 191.34 crore in 2008-09, a raise of 43 per cent. The increased allocation is a reflection of the state's realisation that agriculture is the backbone of its economy. Another interesting aspect of the budget was an allocation of Rs 11 crore for more yoga training camps at district and sub-division-level hospitals of the state Government. Modi said that for six months, yoga training camps would be held at 27 district and 22 sub-divisional hospitals in the state. The state's budget, presented in the Assembly on Monday, was pegged at Rs 38,574 crore

  • Farm loan waiver tops Budget agenda

    Sonia Nudges Manmohan On Package For Farmers, Women And Tax Breaks Setting the agenda for the government, Congress chief Sonia Gandhi has asked it to focus on farm loans, women-related schemes and income tax slabs in the Budget. During three rounds of deliberations with Prime Minister Manmohan Singh spread over the last week, the UPA chief, sources disclosed, sought to nudge her visitor on what she thinks should be the defining themes of the Budget in an election year. Sonia was keen on a package for farmers and there were already signs to suggest that the PM may have already heeded the advice. Addressing a group of farmers from Punjab asking for debt relief for small and marginal land owners, Singh said, "I would like to assure you that under the leadership of Sonia Gandhi, our government will pay attention to the demands listed in the memorandum submitted.' The Congress chief also made no bones of the fact that the package figures on the top of the "to do' list she has framed for the government. "We know farmers are facing difficult times. I hope, I know Manmohan Singh's government will give due attention to your demands,' Sonia said. Sources rated the chances of a waiver, at least on the interest component, for defaulters among small and marginal farmers as a certainty. As reported by TOI on December 31, the package could cover bad and doubtful loans worth at least Rs 30,000 crore. While the PM refused to get into details citing Budget confidentiality, the government's receptivity to suggestions from political leadership should be happy augury for those expecting a relook at income tax slabs. While the government was expected to push up the exemption limit to Rs 1.25 lakh from Rs 1.1 lakh at present, an upward revision in the tax slab was not being hotly pursued by the finance ministry. An increase in the basic slab of 10% from Rs 1.5 lakh to Rs 2 lakh would cost the exchequer around Rs 5,000 crore and the tax department brass was not keen on foregoing easy money coming its way. Given the enhanced stakes for the party in wooing urban India, the party leadership is hoping that Sonia's prod might cause them to pull out their calculators once again. Delimitation has increased the number of urban constituencies where tax payers constitute a significant slice of the electorate while Delhi, which boasts of the largest number of salaried tax payers in the country, is scheduled to go to polls later this year. The party expects tax concession to help blunt BJP's attempt to reclaim its constituency among the urban middle class. Apart from the plight of farmers, Sonia has also asked the government to focus on schemes aimed at empowering women. She had made this priority plain while on a visit to her constituency last week, and the preference for "gender justice' was repeated during the interactions with Singh. Sources said that among other things, the Integrated Child Development Scheme was likely to be strengthened. sidhartha.kumar@timesgroup.com diwakar.asthana@timesgroup.com POPULAR TOUCH: Manmohan Singh and Sonia Gandhi with a delegation of farmers from Punjab, in New Delhi on Monday

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