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.