PIB 3

1. UN will carry greater credibility and legitimacy and will be more representative and effective in addressing the challenges of the 21st century. Trends in demography, urbanization and migrations are posing new challenges. Climate change and terrorism are new concerns. Cyber and Space are entirely new frontiers of opportunities and challenges.

2. every district must have its own skill based program. Prior to this one will have to perceive the facts that what are the small industries in vogue in a district and to know the aspirations of education among people living in district level.

3. Clean Development Mechanism (CDM) was a success for the first commitment period ending in 2012. Demand-supply mismatch and low ambition for emission reduction expressed by developed countries under the Kyoto Protocol is a major cause for the slowdown of the well-established CDM market thereafter. In addition, the unilateral decision taken by some countries to restrict the benefits of CDM to Least Developed Countries (LDCs) only, and not to other developing countries like India, has further reduced the confidence in the Market mechanism. The real issue is how to make available the critical technologies for the developing world at an affordable cost. To this end, India is proposing that part of the Green Climate Fund (GCF) should be used for this purpose, which will be a win-win proposal for all the stakeholders”

4. the current grid is not designed for carrying the 175 GigaWatts (GW) of renewable energy that India is targeting, and therefore a complimentary effort is required on the grid side. Kochi Airport becoming a solar-powered airport,

5. the State of Mizoram has a very bright opportunity to develop itself and earn the distinction of being a “Bamboo State” of the Indian Union. He said, the high level of production of bamboo from Mizoram can turn out to be a major source of not only furniture but also paper to the rest of the country. This could not only help generate revenue for the State but also create job opportunities for youth outside the State-skill development initiatives

6. the National Forest Policy envisages 33% of the geographical area should be under forest or tree cover, but the notified forest cover is only about 22%. The implementation of new Green Highways Policy can help in bridging this gap

PIB report 2

1. Disaster Management should not only involve relief operation, rescue, rehabilitation, reconstruction but also strike the root cause of it and prevent the disaster. That is where the research should be precise. Shri Rijiju appealed the private sector to take part in the Disaster Management. The country has understood how to deal with disaster management and disaster preparedness and we have to integrate the same with the research.

2. Parrikar Asks DRDO to Focus on Core Defence Technology Areas. close interface of DRDO with Navy in developing technology products is well matured. DRDO should now develop similar level of interface with Army and IAF.

3. Pradhan Mantri Khanij Kshetra Kalyan Yonaja (PMKKKY). This is the new programme meant to provide for the welfare of areas and people affected by mining related operations. The most productive mining areas in the country are largely areas inhabited by scheduled tribes. They also are mainly located in the areas covered by the Fifth Schedule of the Constitution. The PMKKKY is, therefore, very sharply focused on safeguarding the health, environment and economic conditions of the tribals and providing them with opportunities to benefit from the vast mineral resources that are extracted from the areas where they live. The PMKKKY envisions to substantially raising the all-round standard of living of mining affected people by utilising 60% of its fund for sustained high priority areas like drinking water supply, health care, education etc. and the balance amount for creating a supportive and conducive infrastructural environment. Also District Mineral Foundation. Planned development of Mineral Sector in India is need of the hour. One big shortcoming in our mining sector has been very small scale of exploration. To overcome this, we have established National Mineral Exploration Trust. To achieve our common goal of sustainable and inclusive growth, government, planners, policymakers, mining industry, technology suppliers, service providers and communities will have to work together.

4. 100 smart cities which would include in its blueprint adequate provisions for power generation, usage of renewables and energy efficiency technologies, comprehensive waste management programme; usage of waste to energy technologies etc.

5. Collaboration in the area of fracking of shale gas, especially water less fracking in India were identified as areas of future cooperation under the Energy Dialogue. challenges of greening the grid, i.e., to integrate large scale renewable energy sources into the electricity grid. off-grid clean energy access, The Indian delegation urged the US to share technology related to supercritical coal plants as well as share best practices and tools to improve efficiency and carbon footprint of existing power plants.

6.The key to “Good Governance”, said Dr. Jitendra Singh, lies in reducing red-tapism, expediting procedures through electronic and digital means, riddance from rules which are obstructionist and providing an environment which enables officers to perform their best.

7. The Pradhan Mantri Mudra Yojana (PMMY) is a significant initiative by the Government to secure bank finance to the vast segment of the population occupied in the informal sector which does not have access to formal bank credit and is forced to rely on informal sources of finance at high cost.

8. The water storage available in 91 major reservoirs of the country as on September 23, 2015 was 95.313 BCM, which is 60% of total storage capacity of these reservoirs.

Famous quotes 6

All that is necessary for the triumph of evil is that good men do nothing (Edmund Burke)

The punishment suffered by the wise who refuse to take part in government, is to suffer under the government of bad men (-Plato)

Righteousness is the foundation of good governance and peace. (Confucius)

Man himself must become righteous and then only there shall be righteousness in the world.

Be the change you wish to see in the world (Gandhi)

The line separating good and evil passes not between states nor between classes… but through the middle of every human heart. (Aleksandr Solzhenitsyn)

Law should be so succinct that it can be carried in the pocket of the coat and it should be so simple that it can be understood by a peasant (-Napoleon)

The purpose of a government is to make it easy for people to do good and difficult to do evil (British PM Gladstone)

Corruption and hypocrisy ought not to be inevitable products of democracy, as they undoubtedly are today (Gandhi)

The Rig-Veda declares: "Truth is one; sages call it various names- Ekam Sat Vipra Bahudha Vadanti." The Upanishads declare that all the paths lead to the same goal, just as cows of variegated colours yield the same white milk.

PIB reports

 1. Our robust external sector has facilitated the lower depreciation of the IndianRupee vis. a. vis currencies of other major EMEs.

 2. On this very day(11 sep) 50 years ago the Indian Armed Forces had captured the strategic Hajipir Pass in response to Pakistan’s Operation Gibraltar, aimed at wresting Kashmir by sending in armed infiltrators.On 01 Sep 65, Pakistan had launched Operation Grand Slam to severe Rajouri and Punch from rest of the country.

 3. Steps to control prices of pulses and onions:The government has authorized institutions like Mother Diary to procure sensitive commodities like onion. The cost incurred would be borne out of Price Stabilisation Fund. Raised Minimum Export Price of onions, to increase availability in domestic market.Stock limits have been imposed on pulses(and onions).The government has requested the states to check hoarding and black-marketing of pulses and onions by using its powers under Essential Commodities Act. Pulses are imported to the tune of 5000 MT to check prices.Future trading in pulses like Urad and Tur had been already suspended.Export of pulses banned.Zero import duties on pulses.

 4.National Lab Policy is needed to address the testing, standardization and certification renewable energy projects in the country. proper standardization will facilitate financing options for deployment.eg:improved biomass cook stoves in villages for clean energy.

 5.The Water storage available in 91 major reservoirs of the country as on September 10, 2015 was 92.379 BCM which is 59% of total storage capacity of these reservoirs. This storage is 77% of the storage of corresponding period of last year and 81% of storage of average of last ten years.

 6.The challenge of urbanization should be addressed jointly by the people and their representatives. Responsibilities should be shared between the electors and elected.-President of India,speaking on the eve of 151st Year Celebrations of Nagpur Mahanagarpalika at Nagpur today (September 14, 2015).

 7.. Revival of 13 Stranded Gas Based Power Generation Plants With an Installed Capacity Of 8262.08 MW Successfully Bid Through a Transparent and Competitive Reverse E-Auction Process

 8. Decentralization of Power is the Fastest Way to Provide Energy Access

to the People”- Shri Piyush Goyal-small scale biogas stoves

Famous Quotes 5

Honest disagreement is often a good sign of progress-Mahatma Gandhi

The introduction of the railways has been historically the most powerful single initiator of take-offs-W.W.Rostow

Anger and intolerance are the enemies of correct understanding-Mahatma Gandhi

Since the industrial revolution, no country has become a major economy without becoming an industrial power-Lee Kuan Yew,delivering the Jawaharlal memorial lecture in New Delhi,2005

The weak can never forgive. Forgiveness is the attribute of the strong-Mahatma Gandhi

I feel more and more that we must function more from below than from the top...too much of centralisation means decay at the roots and ultimately a withering of branches, leaves and flowers-Jawaharlal Nehru

First they ignore you, then they laugh at you, and then fight you....then you win-Mahatma Gandhi

We want to promote cooperative federalism in the country. At the same time, we want a competitive element among the states. I call this form of federalism cooperative and competitive federalism-Narendra Modi

Victory attained by violence is tantamount to a defeat, for it is momentary-Mahatma gandhi

Where there is love, there is life-Mahatma Gandhi

The nature of transactions between the government and the governed/ creditors and debtors on which the welfare of the masses/kingdom depends, shall always be scrutinised-Kautilya in Arthashastra around 3rd century BC

There is more to life than simply increasing its speed-Mahatma Gandhi

My religion is based on truth and non-violence. Truth is God.Non-violence is the means of realising him-Mahatma Gandhi

Sarva Dharma Samantva (Equality of all religions), Swadeshi(use of locally made goods) and Sparshbhavna(Untouchability)

Gandhiji said that the basic teaching of all religions is unique.  He likened all the religions to different rivers that converged into a single ocean. As all the rivers have the same nature of water, different religions also deliver the unique message-the message of love, harmony and compassion. Therefore, the sectarian notions and inter-religious hatredness are the artificial creations of vested interests in order to meet their selfish ends. Gandhi had read the sacred books of various religions-the Holy Bible, the Quran and the Bhagavad Gita. After much thought, analysis and deliberation, Gandhi concurred that the tenets of all religions have the same ethos and essence. True religious equanimity and tolerance would be born from the seeds of broad and inclusive perspective of religion, and a compassionate understanding of it.

In Gandhi’s view, an appropriate way to render national service is to use locally made goods for one’s consumption. This idea was propagated by what he commonly referred to as ‘swadeshi’. In his article in the periodical Young India in 1919, he said “My foremost loyalty and sense of alliance is with my next-door neighbor, and I would bear this in my mind at all times”. The crux of this message lies in his urge to adopt swadeshi goods for boosting domestic demand and hence domestic productivity. A nation can truly progress only when it is free from the dependence on foreign goods and products.

Gandhiji repudiated untouchability in every form. He considered untouchability as an unmitigated evil that hinders the development of free spirit and inclusiveness.  The evil of untouchability is a barrier to national integration that was so crucial for the development of a nation. Gandhiji condemened untouchability in the December 1920 issue of Young India” I consider untouchability as a heinous crime against humanity. It is not an act of self-restraint but an arrogant assumption of superiority”

Economic Survey 2014-15 part 7

28)The two pillars of fiscal reforms are revenue augmentation and expenditure rationalization.

29)The Trade Facilitation Agreement(TFA) endorsed by India at the ninth ministerial conference(Bali,2013) is basically aimed at greater transparency and simplification of customs procedures, use of electronic payments and risk management techniques, and faster clearance at ports. Trade facilitation was put on the agenda mainly by the developed countries while the issue of rules relating to public stock-holding for food security purposes was put on the agenda by G-33 group of 46 developing countries including India.

30)Post Bali, the focus of the developed countries was only on the implementation of TFA.India took a firm stand in July 2014 that without a firm commitment to implement the other Bali decisions, it would be difficult to join the consensus on the Protocol of Amendment to incorporate the TFA into the umbrella WTO agreement.

31)On 27 Nov,2014,the General Council of the WTO adopted a decision on Public stockholding for food security purposes, a decision on the TFA and a decision on Post Bali work. It includes a commitment to find a permanent solution on public stockholding for food security purposes by 31 Dec,2015.

32)The major dev driving the stubborn inflation down were falling global commodity prices, especially of crude oil, decline in the growth rate of rural wages, moderation in increase in MSPs, as also slack in economic activity. For sustainability of low inflation, the policy focus should be on enhancing the resilience of agr sector and eliminating leakages, inclusion and exclusion errors, and various distortions created by the present food policy.

Aswada(control of the palate) and Sarvatra Bhayavarjana(Fearlessness)

Gandhiji was as conscious of his dietary habits as he was about spiritual development. During his stay in London in late 1890s, he used to write articles for the Royal Vegeterian Society on the importance of proper dietary habits. Gandhi adopted a vegetarian way of life. This mode of life was borne out of his mother’s advice on the importance of vegetarianism, but also his compassion for the living creatures. In this context, he was greatly influenced by the teachings of Buddhism and Jainism. Moreover, he stressed upon the fact that man should prefer nutritious food rather than foods that merely satisfy the taste-buds. He advocated total avoidance of spicy and over-nutritious food that would be counter-productive for the very aim of utilizing the body for noble purposes.

Gandhi exhorted people to be fearless in their life. He used to call it as Sarvatra Bhayavarjana. A man should be fearless against ghosts, fearless against failures and fearless against oppression. However, being fearless does not, in any way, mean developing arrogance or inconsiderate attitude towards the less fearless.

Sharishrama (bread labour)

By Sharishrama, Gandhi meant the importance of bread labour or physical activity.Gandhi liked to say that physical labour is as important as intellectual labour in the overall personality development of an individual. In his doctrine of Nayi Talim, Gandhi stressed upon the fact that physical activity and intellectual activity complements each other and they are not to be viewed in isolation. Gandhi used to frequently quote what the holy Bible had mentioned “ Earn thy labour by the sweat of the brow”. He said that most of the life-style diseases prevalent in today’s society is a product of neglected or minimum physical activity and giving undue importance to mental labour.

Moreover, the urge not to earn more than necessary and dedication physical activity to the cause of the poor is intrinsic to the notion of sharishrama or bread labour. By earning what is deemed sufficient, the resources are distributed equitably.Also, dedicating a modicum of physical activity for social cause , the lesser abled and disabled are also benefitted, which gives meaning to the notion of overall development of the nation and society.

Economic Survey 2014-15 Part 6

23)The low ratio of Gross Value Added(GVA) to Gross Value Output(GVO) in manufacturing signifies ,on the one hand, that the sector creates substantial demand for the output of other sectors and, on the other, that Indian manufacturing needs to move up the value chain to improve its contributions to overall GVA.

24)The savings rate(gross domestic savings as a percentage of GDP) reached its historical peak in 2007-08, and then remained volatile with a general downward movement. While private corporate savings steadily declined, household savings witnessed realignment in favour of accumulation of physical assets at the cost of financial savings. The household financial savings need to be raised to keep the saving-investment gap at acceptable levels.

25)Global factors namely persistent decline in crude prices, soft global prices of tradables, particularly edible oil and even coal, helped moderate headline inflation. The tight monetary pressures helped in containing demand pressures, creating a buffer against any external shock and keeping volatility in the value of rupee under check. During the last one year, the rupee remained relatively stable vis-à-vis major global currencies, which too had sobering influence on inflation. Moderation in wage rate growth reduced demand pressures on protein-based items.

26)Two important factors resulting in lower CAD:i) lower trade deficit along with moderate growth in invisibles ii)surge in capital inflows,enabled by higher portfolio investments,FDI and ECBs.

27)For providing efficient advance-price discovery to farmers and enable them to hedge price risk, the Forward Markets Commission should be strengthened and empowered to regulate the markets more effectively(pg 18). The ASER report states that learning levels across the country, whether in public or private schools, have not improved. Clearly, the policy prescription lies in shifting the attention away from inputs to outcomes and focus on building quality education and skill development infrastructure. The Padhe Bharat Badhe Bharat initiative to create a base for reading, writing and math-fluency is a good step in this direction.

Gandhi’s principle of Aparigraha(non-possession)

The principle of ‘aparigraha’, put forward by Gandhiji denotes non-possession. At the basic level, non-possession means desisting from hoarding of goods. Hoarding of goods and commodities deprive the poor of their basic needs. Secondly, aparigraha connotes reducing one’s needs and wants beyond bare minimum.Andthe lesser one wants, the better off one is, because he then is content with whatever he has with him.The ultimate stage of non-possession is no possession. In this state, there are no material possessions which lead to cultivating detachment. This attitude and way of life paves the way for spiritual liberation which is the ultimate goal of a man’s life.

Economic Survey 2014-15 Part 5

19)The striking feature is that India has moved from carbon subsidization regime to one of significant carbon taxation regime-from a negative price to a positive price on carbon emissions. i) excise duty on petrol and diesel as an implicit carbon tax-It prices other externalities like congestion costs(from using vehicles), noise and local air pollution.Also substantial revenue for social redistribution. 

However, inflation concerns are raised due to the consumers not availing benefits due to reduced international oil prices. Ii) Translating coal cess into carbon tax.But it must take into account of the implications for power prices as power affordability should be a major aim of the government.iii) India’s renewable energy program like solar program.

20)Major recommendations of FFC:i)32 % to 42 %-biggest ever increase in vertical tax devolution ii)new horizontal formula-incorporated two new variables 2011 population and forest cover and excluded the fiscal discipline variable iii)other types of transfers proposed including grants to rural and urban bodies, a performance grant along with grants for disaster relief and revenue deficit iv)no sector specific grants

21)Implications of FFC i)All states stand to gain in absolute terms ii)expected to add substantial spending capacity to states’ budgets iii)have more favourable impact on the states(only among the General Category of States) which are relatively less developed which is an indication that FFC transfers are progressive i.e. states with lower per capita Net State Domestic Product receive on average much larger transfers per capita.Note:towards greater fiscal federalism, conferring more fiscal autonomy on the states.

22)But there will be commensurate reductions in Central Assistance to States(CAS) k/as plan transfers. In the last few years, plan transfers have moved away from being Gadgil-formula based to being more discretionary in nature. Greater central discretion evidently reduced progressivity. Thus, a collateral benefit of moving from CAS to FFc transfers is that overall progressivity will improve.

Economic Survey 2014-15 part 4

16)Even the model APMC act treats the APMC as an arm of the state, and the market fee as the tax levied by the state, rather than fee charged for providing services. This is a crucial provision that acts as an impediment in creating a national common market in agricultural commodities. Though the market fee is collected just like a tax, the revenue earned by the APMCs does not go to the state exchequer and hence does not require the approval of state legislature to utilize the funds so collected. Thus APMC operations are hidden from scrutiny.

17)The model APMC act retains the mandatory requirement of the buyers having to pay APMC charges even when the produce is sold directly outside the APMC area, say, to the contract sponsors or in a market set up by private individuals even though no facility provided by the APMC is used. Though the model APMC Act provide for setting up of markets by the private sector,this provision is not adequate to create competition for APMCs even within the state, since the owner of the private market will have to collect the APMC fees, for and on behalf of the APMC, from the buyers/sellers, in addition to the fee that he wants to charge for providing trading platform and other services, such as loading, unloading, grading, weighing etc.

18)Alternative ways to create national market for agricultural commodities: It may be possible to get all the states to drop fruits and vegetables from the APMC schedule of regulated commodities, this could be followed by cereals, pulse and oilseeds, and then all remaining commodities. Liberalisation of FDI in retail for improving supply chain management. Investment by the States and the centre for setting up infra and making land available etc for alternative and special markets in the private sector. There are provisions in List III of the seventh schedule(concurrent list) in the constitution which can be used by the union to enact legislation for setting up of national common market for specified agricultural commodities by overriding the state APMC laws.

Gandhi’s principle of Asteya(non-stealing)

One of the avowed vows of Gandhi was the principle of Asteya i.e.non-stealing. Asteya was not only confined to non-stealing as a direct action. Rather, it had wider meanings according to Gandhi. The indirect and subtle ways of stealing are lying-stealing of truthfulness, cheating-stealing others’ rights, waging of war-stealing others’ territories. Gandhi said that a man’s greed and penchant for materialism is also a subtle form of stealing others' right to basic requirements. It is because a wealthy man residing in a palatial house has dispossessed  a poor man’s right to a bare minimum land for subsistence living. In due consideration of this idea, gandhiji has written in Yervada Mandir” One who follows the principle of non-stealing will bring about a progressive reduction in his wants for lavish forms of life. Much of the distressing poverty in this world is due to the breaches of the principle of non-stealing by affluent people”
(ideas borrowed from Gandhi foundation)

Economic Survey 2014-15 Part 3

9)An increase in public investment would not crowd out private investments in India under the present circumstances.Public investment should be targeted to the sector where it can generate the maximum spillovers-which could well be the Indian railways.

10)The IMF in the World Economic Outlook has noted that increase in public infra investment,if efficiently implemented, affects the economy in two ways. In the short run,it boosts aggregate demand and crowds in private investment due to the complementary nature of infra services. In the long run, a supply side effect also kicks in, as the infra built feeds into the productive capacity of the economy.The two biggest challenges facing increased public investment in India are financial resources and implementation capacity. As regards the later, the trick is to find sectors with maximum positive spillovers-rural roads and railways.This impetus has the potential to crowd in greater private investments and do so without jeopardizing India’s public debt dynamics.

11)Problems in Indian railways: Safety, modernization, cross-subsidisation and consequently high freight charges, along with inefficiency, stressed capacity and weak financial health.

12)Tradability: Rapid growth has seldom been based on the domestic market.Part of the reason for this might be that trade serves as a mechanism for technology transfer and learning, which may have spillovers on related industries. Perhaps a more important part is that trade and exports in particular provide a source of unconstrained demand for the expanding sector.Construction sector, does not require high education levels  and has grown significantly in its resource use over the last three decades. However, the sector is not tradeable and in any case is low productivity, so that moving labour resources to the sector does not considerably improve overall welfare.

13)Manufacturing has not been a positive factor for India.This is due to four broad categories: distortion in labour markets, distortion in capital markets, distortion in land markets and inappropriate specialization away from India’s natural comparative advantage(low-skilled labour) and toward skill-intensive activities.

14)Most service subsectors have a limited capacity to make use of India’s most abundant resource, unskilled labor.This may explain why the share of employment from services has risen so modestly, even while the share of output from services has grown so spectacularly.

15)It is registered manufacturing,not manufacturing in general,which has the potential for structural transformation. In a low-skilled labor abundant country like India, a sector must make use of this dominant resource in  order to offer the greatest possibilities for expansion and structural transformation. Indeed, the experience of East Asia shows that it is possible for countries to start by specializing in low-skill but dynamic activities and subsequently move to more skill intensive production once the growth process has picked up steam.

Economic Survey 2014-15 Part 2

5)The government’s stalled projects are predominantly in infrastructure.Unfavourable market conditions(and not regulatory clearances) are stalling a large number of projects in private sector, and in contrast, regulatory reasons explain bulk of stalling in the public sector.Stalling of projects is severely affecting the balance sheets of corporate sector and PSBs,completing a vicious circle,characterized by an investment slowdown.The biggest lesson from stalled projects situation is that perhaps morethan a run-up problem(over exuberant and misdirected private investment), we face a clean-up problem(bankruptcy laws, asset restructuring etc).

6)An important policy lesson:India needs to tread the path of investment-driven growth(from consumption driven strategy). But highly leveraged corporate balance sheets and a banking system under severe stress suggest that this will prove challenging. Against this backdrop, public investment may need to be augmented to recreate an environment to crowd-in private sector investment.

7)The challenges in banking system fall into two categories: policy and structure.The policy challenge relates to financial repression. Financial repression on the asset side of balance sheet is created by SLR requirement  that forces banks to hold government securities, and Priority Sector Lending that forces resource deployment in less than fully efficient ways. Financial repression on liability side has arisen from high inflation, leading to negative real interest rates and a sharp reduction in households’ financial savings.The structural problems relate to competition and ownership i.e. lack of competition, reflected in private sector banks’ inability to increase their presence.The four key policy recommendations are is in the form of four D’s:deregulate ( in relation to financial repression),differentiate(within the PSBs), diversify(within and outside banking) and disinter( to create more efficient exit)

8) Household savings continue to be the largest contributor to gross capital formation. Household savings have two components:financial and physical, where the later does not lend itself easily to financial intermediation in the economy. The contribution of physical assets to household savings has stood stubbornly above 60 percent all through the last decade.

Economic Survey 2014-15 Part-1

1)Benefits of cash transfer: Faster delivery of service and reduced leakage and therefore fiscal savings.Example:In Andhra Pradesh, MNREGA and social security payments made through AAdhar-lined ban accounts.Households received payments on average 10 days faster and leakage reduced by 10.8 percentage points.

2)Eliminating or phasing down subsidies in neither desirable nor feasible unless accompanied by other forms of support to cushion the poor and vulnerable and enable them to achieve their economic aspirations.The JAM Number trinity-Jan Dhan Yojana, Aadhar and Mobile numbers-allows the state to offer this support to poor households in a targeted and less distorted way.

3)Harmful effects of subsidies:i) Price subsidies are often regressive i.e. a rich household benefits more from the subsidy than a poor household.ii)Price subsidies can distort markets in ways that ultimately hurt the poor-subsidies can distort the incentives of consumers and producers and result in misallocation of resources.eg:high MSPs,freight tarrifs iii)leakage seriously undermine the effectiveness of product subsidies-leakages not only have the direct costs of wastage,but also the opportunity cost of how the government could otherwise have deployed those fiscal resources.

4)Strategies for fiscal framework: The medium term fiscal strategy should be based on two pillars.First, the fiscal deficit should be reduced over the medium term to the established target of 3 percent of GDP.Second, efforts to achieve this objective should be based on firm control over expenditures, most notably by eliminating leakages in subsidies and social expenditures.Further, switching from public consumption to public investment will mitigate long-term inflationary pressures because the later will add to capacity and boost the aggregate supply potential of the economy. India should move towards the golden rule of eliminating revenue deficits and ensuring that, over the cycle, borrowing is only for capital formation.

The One Rank One Pension(OROP) controversy

The retired armed personnels are relentlessly demanding their due right of the One Right One Pension as promised by the ruling government in its election manifesto. They have resorted to measures such as sit-ins and hunger strikes and demanded the urgent resolution of the technical difficulties plaguing its implementation.

The objective of the One Rank One Pension scheme is to provide equal pension to the armed forces having the same rank and length of service irrespective of the date of retirement. In 1973, the government reduced the pension of the jawans of the armed forces from 70 percent to 37 percent . Similarly the officers’ pension was reduced to 50 percent. However, the government assured that the step would not reduce the pension amount since the OROP scheme would be implemented. Till 2015, the assurance was not met with much to the dismay of the armed forces.

The OROP needs to be implemented due to two primary reasons. First, the jawans of the armed forces retire at a relatively early age in mid 30s. This is the period when the family obligations are at a maximum. Moreover, they are unable to join any alternative employment since they cross the age of eligibility. Second, with rising prices, the cost of living has increased dramatically. Therefore, they need economic benefits to maintain a decent living standard.

The government has stated that certain arithmetic issued have delayed its immediate implementation. However, the government would do well to make such data public in the interests of the nation. This would promote healthy debate among the citizens and policy makers as necessary details would be put in the public domain. The government also needs to provide alternative employment to the retired personnels by initiating new policies in conjunction with the private sector . The retired soldiers are relatively young and possess human capital to be absorbed in entrepreneurial ventures.

The fiftieth anniversary of the 1965 Indo-Pak war

The year 2015 mars a special event. It is the fiftieth anniversary of the military battle of the Indo-Pak war that took place in the year 1965. While India celebrates this event as a mark of victory against its rival Pakistan, the opponent too commemorates this day as Pakistan’s defence day. This is due to the fact that India failed to unilaterally win the war against its rival. Therefore, India should introspect rather than celebrate the event while saluting the sacrifices made by our defence forces, as suggested by an eminent foreign relations expert.

One of the major failures in the 1965 war was in the area of intelligence. That said, close on the heels of 1962 Indo-China war, the 1965 war too witnessed a surprise attack by Pakistan. New Delhi was taken by surprise when it learnt that Pakistan had launched an offensive against India along the Rann of Kachchh in its western frontier. Although India launched a spectacular counter-offensive strategy, the inability to deal with strategic intelligence in the first place was a notable failure of its intelligence network.

Second,India lacked strategic planning for the war. It was along the International Boundary(IB) line in Punjab that India captured some areas of the Lahore district in Pakistan.Similarly, India forces captured the Hajipir pass along the ceasefire line in Jammu and Kashmir. Later,in the Tashkent agreement that materialized on the insistence of UN, USA and USSR, India had to forego all its claims and possessions. It is natural for India to follow the policy of ‘non-aggression’ and thus give up the occupied territories during war. However, India failed to pursue the case with strategic view-point and deal with Pakistan firmly in the Taskent meeting in 1966, that was mediated by a third party.

It is notable that India managed to outsmart Pakistan while the Kashmir issue came up at the UNSC meeting in 1965. According to a prominent diplomat who was posted at a member of India’s permanent mission at the UN, India staged a walkout protesting against the speech delivered by the then Prime Minister of Pakistan at the UNSC meeting. This led to the members of the UNSC refraining from discussing the ‘Kashmir issue’ for decades after the war. It is evident from the fact that between 1948 and 1965, UNSC passed 23 resolutions on Kashmir issue. On the contrary, UNSC passed only one resolution after 1965 when it called for respecting the ceasefire line after the Bangladesh war in 1971