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Modi 2.0 govt presents #BudgetForNewIndia

July 5, 2019

Union Finance Minister Nirmala Sitharaman on Friday presented the first budget of the Narendra Modi 2.0 government in the Lok Sabha. In the Union Budget 2019-20, she announced that budget aims ‘Mazboot Desh Ke Liye Mazboot Nagrik’ (Strong country, Strong Citizen) and to revive economic growth through higher investments. The Finance Minister hiked tax on petrol and diesel, raised import duty on gold, levied an additional surcharge on super rich and brought a tax on high-value cash withdrawals.

According to budget announcements, the super-rich people have to pay more and there is no change in the lower income tax slab. She announced a 3 per cent increase in Income tax for those earning Rs 2-5 crore and 7 per cent for income above Rs 5 crore. In order to garner the fund for schemes, the budget increased Special Additional Excise Duty and Road and Infrastructure Cess each by Re 1 per litre on petrol and diesel.

Now, PAN card and Aadhaar card can be used interchangeably to file income tax returns. Prime Minister Narendra Modi said that the budget assures the country that the poor will be empowered and the youth will get a better tomorrow. This budget will accelerate the speed of development. On the other hand, the Congress party criticised it.

Nirmala Sitharaman, the first full-time woman Finance Minister said, “India will become a $3 trillion economy this year. The government planned many structural reforms to kick start foreign and domestic investment. We need to invest heavily in infrastructure, digital economy, job creation.”

Public-private partnership (PPP) for railways, increased FDI in media and aviation, the issuance of Aadhaar cards to NRIs without a waiting period of 180 days on arrival, and schemes to provide power, water, and clean cooking facilities for all, TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account were among the highlights of her speech.

Hiten Bhanushali, CA, Financial and Strategy Expert spoke to Afternoon Voice and stated, “Budget 2019 is a budget of marketing; while it has given the analysis of the past actions but this doesn’t draw a line of future actions. Recapitalisation of banks and revamping of regulatory architecture is nothing but investing hard-earned taxpayers’ money to the NPA of banks. No inquiry on the valuation is explained on the startup valuation game — this is a way of taking back black foreign money into India by doing higher valuation, resulting into moving Indian black money lying in foreign accounts moving them back to India and making it white money. NBFC reforms will make an impact on retail investors because the risks in NBFC’s are higher and losing the market valuation of mutual funds can result in loss to NAV’s mutual funds.”

He further explained, “On the other hand, the initiative to ensure piped water supply to all rural households will help rural and boost the farming in nonfarming lands. Giving pension benefit to the retail trader is a step toward supporting the unorganised retail traders to mitigate challenges from organised retail and modern trade. FDI relaxation in the Aviation sector is the show of the failure of UDAN project.”

“It’s indeed a big move to make Aadhaar card mandatory for filing income tax. The budget gives no relief to the salary taxpayers in any way and also no benefit of inflation to the general public. Increase in surcharge on fuel will lead to a price hike of consumer goods and daily need by 6-7 per cent, resulting in inflation,” he added.

The Congress tweeted, “Now, the government has finally accepted that unemployment is at a 45 year high, #Budget2019 must put forth a detailed plan for job creation in the country. It must reverse the adverse effects of demonetisation & GST.”

Prashant Pandey, an MBBS student of Krishna Institute of Medical Sciences said, “Prima facie good budget for the common man and the environment as no income tax will be levied on annual income less than Rs 5 lakh and heavy rebates will be given on the purchase of electric vehicles. This move will ensure saving of fast shrinking petrol and diesel. At the same time, it will lessen air pollution. People of big cities like Mumbai, Pune, and Nagpur are facing health problems due to air pollutions.”

Major highlights of Union Budget 2019-20

– Achieving green Mother Earth and Blue Skies through a pollution-free India

– Making Digital India reach every sector of the economy

– Launching Gaganyan, Chandrayaan, other Space and Satellite programmes

– Building physical and social infrastructure

– Water, water management, clean rivers

– Blue economy

– Self-sufficiency and export of food-grains, pulses, oilseeds, fruits, and vegetables

– Achieving a healthy society via Ayushman Bharat, well-nourished women, and children, the safety of citizens

– Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.

MASSIVE PUSH TO ALL FORMS OF PHYSICAL CONNECTIVITY

–Pradhan Mantri Gram Sadak Yojana

– Industrial Corridors, Dedicated Freight Corridors

– Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes

– State road networks to be developed in the second phase of Bhartamala project

– Rs 50 lakh crore investments needed in Railway Infrastructure during 2018-2030.

– 657 kilometers of Metro Rail network has become operational across the country.

– An outlay of Rs 10,000 crore for three years approved for Phase-II of FAME Scheme.

MEASURES TO DEEPEN BOND MARKETS

– Stock exchanges to be enabled to allow AA rated bonds as collaterals

– User-friendliness of trading platforms for corporate bonds to be reviewed

– Electronic fundraising platform under the regulatory ambit of SEBI

– Listing social enterprises and voluntary organizations.

– To raise capital as equity, debt or as units like a mutual fund.

– KYC norms for Foreign Portfolio Investors to be made more investor-friendly

– Insurance intermediaries to get 100 per cent FDI

– FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.

DIRECT TAXES

-Tax rate reduced to 25 per cent for companies with annual turnover up to Rs 400 crore

– Surcharge increased on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above.

– Direct tax revenue increased by over 78 per cent in the past five years to Rs 11.37 lakh crore

– Those who don’t have PAN can file tax returns using Aadhaar

– Pre-filling of Income-tax Returns for faster, more accurate tax returns

AFFORDABLE HOUSING

– Additional deduction up to Rs 1.5 lakhs for interest paid on loans borrowed up to March 31, 2020, for purchase of house valued up to Rs 45 lakh

– The overall benefit of around Rs 7 lakh over a loan period of 15 years.

OTHER DIRECT TAX MEASURES

-Simplification of tax laws to reduce genuine hardships of taxpayers

– The higher tax threshold for launching prosecution for non-filing of returns

– Appropriate class of persons exempted from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.

RELIEF FOR START-UPS

– Capital gains exemptions from the sale of residential house for investment in start-ups extended till FY21.

– ‘Angel tax’ issue resolved- start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.

– Funds raised by start-ups to not require scrutiny from Income Tax Department

– E-verification mechanism for establishing the identity of the investor and source of funds

– Special administrative arrangements for pending assessments and grievance redressal

– No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.

– No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.

INDIRECT TAXES

– Basic customs duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera, etc.

– Exemptions from custom duty on certain electronic items now manufactured in India withdrawn

– End use-based exemptions on palm stearin, fatty oils withdrawn

– Exemptions to various kinds of papers withdrawn

– 5 per cent basic customs duty imposed on imported books

– Customs duty reduced on certain raw materials such as inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants, etc.

– Capital goods required for the manufacture of specified electronic goods

EXPORT DUTY RATIONALISED

– Increase in special additional excise duty and road and infrastructure cess each by rupee one per litre on petrol and diesel

– Custom duty on gold and other precious metals increased

EASE OF LIVING

– About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.

– Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs 18,341 crore annually.

BANKING AND FINANCIAL SECTOR

– NPAs of commercial banks reduced by over Rs 1 lakh crore over the last year

– Record recovery of over Rs 4 lakh crore effected over the last four years.

– Domestic credit growth increased to 13.8 per cent

– Rs 70,000 crore proposed to be provided to PSBs to boost credit

– Reforms to be undertaken to strengthen governance in PSBs

MEASURES RELATED TO CPSES

-Target of Rs 1, 05,000 crore of disinvestment receipts set for the FY 2019-20

– Government to reinitiate the process of strategic disinvestment of Air India

– Government to consider going to an appropriate level below 51 per cent in PSUs where the government control is still to be retained, on case to case basis

– The present policy of retaining 51 per cent government stake to be modified to retaining 51 per cent stake inclusive of the stake of government-controlled institutions

DIGITAL PAYMENTS

– TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account

– Business establishments with annual turnover more than Rs 50 crore shall offer low-cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants

Budget in red cloth ignoring Digital India, it should be on electronic devices

Vaidehi Taman

July 5, 2019

From the past five years, PM Modi was hell-bent on making India digital and competes with the globe. However, to my surprise, Finance Minister Nirmala Sitharaman did not pose with the iconic briefcase, like her predecessors. In a departure from the tradition, she was seen holding a red cloth folder enclosed with a string and decorated with the national emblem, which was described by officials as the “Bahi Khata“.

The Budget briefcase had been replaced by the traditional Bahi Khata in keeping with Indian tradition. If it symbolises the departure from the slavery of western thought, then we should not forget that we believed in Kingdoms and Slavery and it’s the Britishers who taught us Democracy and introduced the Parliament. From infrastructure to political arrangements — everything is given to us by them. Why this selective abolishment?

Moreover, was Digital India eyewash? Budget in red cloth ignoring Digital India of PM Modi is very confusing. It should have been in electronic devices. We the people always expected performance from BJP and not symbolism. However, they always succeeded in diverting the main issues of India by making such mockery.

Media is diverting people’s attention towards Bahi Khata and no one is actually bothered about the Budget. Just because Sitharaman believes that leather made products are not auspicious for the big occasion, so she avoided the leather bag and took the Bahi Khata. She should not forget that her government is here from the past five years and the former Finance Ministers presented Budget in a briefcase. Was that inauspicious for our country?

The Finance Minister has worked in the UK; she knows the tradition of our country and she also knows the modernism. Earlier, Nirmala Sitharaman, India’s first full-time Finance Minister, ditched another tradition. During the customary Halwa ceremony before the Budget Session, she untied the red ribbon instead of cutting it. The officials said that she believed cutting a ribbon is not considered auspicious.

Nirmala Sitharaman’s red folder caused a buzz amid anticipation surrounding her first budget, also the first of Prime Minister Narendra Modi’s second term. Especially as the word “Budget” originates from the French “bougette” or leather bag. Down the years, Finance Ministers have carried red, black, tan, and brown briefcases.

The “budget case” tradition started in the 18th century when the Chancellor of the Exchequer or Britain’s budget chief was asked to ‘open the budget’ while presenting his annual statement. In 1860, the then British budget Chief William E. Gladstone carried his papers in a red suitcase with the Queen’s monogram in gold. He went on to become the Prime Minister. The same bag was used by several governments.

India’s first budget was presented by RK Shanmukham Chetty in 1947, months after independence. Ten years later, TT Krishnamachari carried something that looked like a file bag. Jawaharlal Nehru carried a black briefcase. Earlier this year and then finance minister Piyush Goyal had carried a red briefcase before presenting the Interim Budget. Finance Minister Arun Jaitley before him carried a tan briefcase.

Former prime minister Manmohan Singh, as the Finance Minister who delivered the iconic 1991 proposals, carried a black bag. Pranab Mukherjee, as Manmohan Singh’s Finance Minister, used a red briefcase similar to the Gladstone case of Britain. It was velvet, and so far India was in a similar position as it is now when it comes to the economy. What new India needs is change is people’s lives, their standard of living, and their safety. Youth need jobs, small businesses need a breather, and students need cheaper education.

Ignoring all these, if we get into symbolism, the real issues would never be addressed. BJP might get one more term hereafter too, as there are leadership crises in India. Anyway, democracy has been compromised to various levels. I don’t know how this symbolism is going to solve the purpose? By making the cover exclusive, can the content inside be changed? Nirmala Sitharaman is the second woman Finance Minister after Indira Gandhi to present the budget.

Hope the government invests widely in agricultural infrastructure and support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy. It is claimed that 9.6 crore toilets have been constructed since October 2, 2014. More than 5.6 lakh villages have become open defecation free. However, the reality of India is quite different.

She proposed to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village. However, look at the urban cities; they are under the piles of garbage. Nothing much has changed in spite of spending crores on such initiatives. The government needs a framework for making India a global hub of aircraft financing and leasing activities. They should encourage new industries to come up, leveraging India’s existing capabilities that will add more quality jobs. Far most important is Job for youth and education for students. Let’s see how this red auspicious cloth can change the fate of the economy of New India.

(Any suggestions, comments or dispute with regards to this article send us on feedback@www.afternoonvoice.com)

Go to NAME instead of allowing USA making India theatre of Shia-Sunni World War — Part I

Hem Raj Jain

July 5, 2019

India is the only secular democratic country (that too of ~ 1.35 billion people) in Asia (based on the political values of Western liberal World led by the USA) hence it faces permanent grave existential threat by its neighbours and which can be handled effectively only when NATO provides requisite military support to India. Therefore ‘The National Defense Authorisation Act’ or NDAA is an overdue and welcome development. India is now on a par with America’s NATO allies Japan, Australia and South Korea following the passage of a bill by the US Senate in a key move to increase defence partnership including advanced technology transfer. The House is expected to take up its version of the NDAA before July 29 and then it will become a law.

However, presently, NDAA is coming in a particular context of US-Iran Conflict and India has to be careful and should go to the NAME region instead of allowing the USA to make India the theatre of Shia-Sunni World War

(1)- The chances of US-Iran/Shia-Sunni World War are not that remote and its adverse impact on India is not that mild. Rather, these are compelling and its impact is disastrous for India as it may lead (if not handled intelligently) to another dismemberment of India.

(2)- Though present India is not the British India of 1947 which trifurcated the mother, rather presently it is the total of the Princely States and British India. As reported this development of NDAA comes amid a meeting between Prime Minister Narendra Modi and US President Donald Trump in Osaka after the visit by US Secretary of State Mike Pompeo to New Delhi. Prime Minister Narendra Modi and Home Minister Amit Shah duo like Gandhi-Patel duo (as-far Nehru it did not matter, either united or partitioned India, as long as he was made PM) are showing British-India mindset. Hence the Indians with Princely-States-India mindset should take responsibility to inform the Indians about the danger of another dismemberment of the motherland of India if India falls in the trap of USA.

(3)- Under the regime of Trump, whatever right or wrong (like shifting of capital of Israel to Jerusalem without solving Palestine problem, cancelling unilaterally and arbitrarily the Iran nuclear deal, etc.) Jew-Israel wanted has been given to it. Hence despite USA and Iran when in addition to Saudi Arabia, UAE, etc. the Jew-Israel want (may be due to Jew Jared Kushner the son-in-law of Trump as a senior adviser to Trump) the US-Iran/Shia-Sunni World War keenly and eagerly, then it is bound to happen.

(4)- Earlier Shias and Sunnis around Israel were against Israel on Palestine issue. Now, Sunnis led by Saudi Arabia (SaAr) are with Israel (with the support of NATO-led by USA) against Shia Iran (due to alleged support of Shia Iran to its militant proxies in Sunni majority regions which is causing immense human rights problems in Syria, Yemen, etc. and which is the main reason for the USA to cancel Iran nuclear deal because the money Iran got after nuclear deal due to lifting of sanctions were allegedly used by Iran for financing Shia militants and terrorists mainly in Sunni countries). Therefore, now it has become very easy for Israel to trigger the Shia-Sunni World War.

(5)- At the same time, before roping-in India for Shia-Sunni World War, the USA does not or does not want to know that India is extremely vulnerable on two fronts against the Shia group supported by China-Russia (i)- On military front due to Kashmir and Arunachal Pradesh / N-E (ii)- On economic front due to unsecured crucial and huge oil imports (84 per cent of oil is imported which will become uncertain during Shia-Sunni World War and a substantial part of the remaining 16 per cent will be needed by the Indian military during this war).

(6)- The USA, presently in Presidential election mode, will not put its boots on the ground and the USA knows that (especially without Pakistan) the Sunni world led by SaAr is incapable of taking on Shia group supported by China-Russia. Hence the USA is trying to make India the theater of US-Iran/Shia-Sunni World War. But If India plays this game of USA then another dismemberment of India is highly likely.

(The latter part will continue on Sunday.)

(Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of AFTERNOON VOICE and AFTERNOON VOICE does not assume any responsibility or liability for the same.)

Why does PM Modi want “One Nation, One Election”?

Vinod Dixit

July 5, 2019

Recently PM Modi had invited heads all parties in the Parliament to a meeting to discuss ‘One Nation, One Election’. Don’t we think, in India, Frequent Elections are like celebrating festivals in India? Election Commission of India conducts election after one or two or three months in India. Frequent Elections is a big problem In India. Frequent elections, according to experts, hamper long-term policy making because every decision is seen as bait for votes.

“One Nation, One Election” means structuring the Indian election cycle in such a manner that elections to Lok Sabha and State Assemblies are synchronised together. In such a scenario, a voter would normally cast his/her vote for electing members of Lok Sabha and State Assembly on a single day and at the same time. We all are aware that in 1952, for the first Lok Sabha elections it cost around Rs 11 crore, while in 2014 general elections, the government spent almost Rs 3,870 crore. In 2019, and there was 40 per cent jump from 2014 costing an unprecedented Rs 50,000 crores, according to the New Delhi based Centre for Media Studies.

These are just paper records and estimates. Add to this the cost of various incentives like television sets, goats, liquor and other personal goods to influence the voters. It was among the world’s most expensive elections. Preparing and conducting elections costs the public exchequer hundreds of crore each time and the money is mostly spent on arrangements, salaries, and security.

Thus, holding simultaneous polls will lead to significant savings of public funds that can be better utilised elsewhere. Almost all political parties spend large sums of money in ensuring that no stone is left Unturned during campaigning. Holding simultaneous elections will ensure that the ministers can dedicate a good four years towards implementing policies and doing constructive work for their constituencies.

The cost of such elections, the inevitable allegations of corruption and vote buying along with the expense of providing security and the logistics of conducting one election after another is raising the call for electoral reform across the country. The code of conduct which effectively stops all the agendas of government will be enforced only once, giving more time to governments to perform.

With elections taking place at various schedules, political parties and ministers are always in election mode which disrupts and distorts agendas with parties deferring reforms or make decisions with short-term views, thereby depriving citizens of clear policies. Apart from money, the other significant resource needed in abundance is the deployment of security forces. Holding simultaneous elections to the Lok Sabha and the state legislatures it will free up security forces, which are diverted from their core duties for each election. The winning party gets a clear mandate in all houses and is increasingly prone to become autocratic and corrupt, sensing invincibility.

With elections being announced the MCC comes into force. The Model Code of Conduct (MCC) which comes into force with the announcement of poll dates, prevents the government from announcing any new schemes, make any new appointments, transfers, and postings without the approval of election commission. This brings normal work of the government to a standstill.

Expenses for conducting elections are not only incurred by the Election Commission but also by the Government at both the centre and at the state level. The Government of India is burdened with the expenses of conducting elections for the Lok Sabha. With every successive election, there is a rise in the expenditure in conducting elections which is a burden on the exchequer. With the implementation of a single election in five years, there will be an overall decline in the expenses incurred by the government which they can utilise for the betterment of the people.

It is nice that the present Modi government is working and has made the “One Nation” theory as their most peculiar aspect in order to rule and maintain the ongoing nation. The scheme of GST is under the One nation, One tax theory. Thus, the “One nation” theory has also been in thoughts for the election in India.

(The views expressed by the author in the article are his/her own.)

Letters to the Editor: 05 July, 2019

Web Team

July 5, 2019

Weekly holiday in markets of Indian capital

Delhi should adopt a uniform pattern of weekly holidays. All those markets remaining open on Sundays should be uniformly closed on Saturdays. Outsiders coming to Delhi will be sure of the opening of all markets for the first five working days of the week. Shopkeepers and their employees will have at least one common weekly holiday with government employees under the five-day week system in government offices. However, shops of essential services like barbers, flour-mills, etc. may have Tuesday as common weekly holiday. When Mumbai can follow uniform weekly-off on Sunday without any problem, Delhi can at least step for optional off on Sunday or Saturday.

To achieve greater efficiency, all offices should have a longer pre-lunch session of four hours, like in public-sector banks. Offices having limited public-dealing hours will thus find a greater pre-lunch session for public-dealing leaving a shorter but hindrance-free post-lunch session exclusively for office-work.

Peak-hour traffic-rush in Delhi and adjoining areas of National Capital Region – NCR, can and should be divided by having different starting hours for different institutions. For example, educational institutions can start at 8.30 am, banks at 9.00 am, government offices at 9.30 am, private-offices at 10 am, courts at 10.30 am, and shops at 11 am. Haryana government likewise has scattered working hours for different industries in Manesar to tackle peak-hour traffic-rush at Delhi Gurgaon Expressway.

Madhu Agrawal

British legacy of long court-vacations

Long summer vacations in courts were designed by erstwhile British rulers to save British judges in India from severe hot weather of this country and also to facilitate them to visit their homeland in England. This costly facility, unfortunately, continues in free India even after seventy years of independence, that too with long pendency of court-cases. Long-pending recommendation of Law Commission for scrapping long court-vacations is being ignored.

The Union Ministry of Law and Justice should immediately scrap any privileged vacations for courts ensuring a common pattern of holidays from the Supreme Court to lower courts. Instead of closing work at courts altogether for long court-vacations, judges can be given vacations by rotation like exists system for Professors at medical colleges in Delhi government. Even lawyers desiring long vacations should not have any difficulty because they are still at liberty to seek adjourned-dates according to their convenience.

The Supreme Court calendar also shows week-long vacations each for Holi, Dussehra, Muharram, and Diwali apart from fortnight-long winter-vacations for Christmas Day and New Year. If all other sections of society have no such facility of long festival-breaks and summer vacations, it is unjustified for Supreme Court and other courts to have such a privilege.

Subhash Chandra Agrawal

(The views expressed by the author in the article are his/her own.)

Some insights from Economic Survey 2016-17 for the Budget 2019

Web Team

July 5, 2019

The economic survey 2016-17 prepared under former Chief Economic Adviser, Arvind Subramanian had done an in-depth analysis of the risks and possible solutions on the agricultural sector. A recap of the main findings can be a good input for the preparation of budget 2019. It pointed out clearly that the agricultural sector is characterised by instability in incomes owing to various types of risks related to production, weather, markets, and prices. The uncertainty in the growth of agriculture is mainly attributed to a deficiency in rainfall since 55 per cent of agriculture in India is rainfall dependent. As per the survey, agricultural growth varies between -0.2 and 5.6 during 2012-13 to 2016-17. The Gross Capital Formation (GCF) in Agriculture and Allied Sectors relative to Gross value Addition (GVA) in this sector is about 16.3 per cent (13.5% by the private sector and 2.8% by the public sector) in 2015-16. The GCF in agriculture as a proportion to the total GCF declined from 7.8 per cent in 2014-2015 to 6.9 per cent in 2015-16. Although yield growth of pulses, oilseeds, and cotton are comparatively better, yields of other crops highly fluctuated. The average farm size in India is small (1.15 ha) and the share of small and marginal land holdings (less than 2.0 ha) account for 72 percent of land holdings.

Average incomes are low

The median agricultural incomes (as measured by income from cultivation, net of cost) was just Rs 19,250 in 2012-13 or about Rs 1600 per month (NSS, 2012-13) which was ominously less than any salaried person at the bottom of the hierarchy. It shows the vulnerability of farmers as a whole, even of that of large farmers. These low and volatile incomes need to be addressed through effective implementation of income support schemes like PM-KISAN and also crop insurance schemes like PMFBY.

Indebtedness

Another side of the coin of low incomes is higher indebtedness. Rural indebtedness is increasing over the past decade. Of the cultivator and non-cultivator households in rural India, about 74% of the total debt was accounted for by the cultivator households. The percentage of cultivator households indebted increased to 35% in 2012 from 26 percent in 1991. The survey mentioned that indebtedness was higher among small and tenant farmers and is vulnerable to shocks and poverty.

Livestock as an alternative income

The small farmers rear livestock and poultry as a solution to the problem of low incomes and higher indebtedness in growing crops. As in the livestock sector with limited income, farmers get regular and stable income. The importance of the livestock sector is visible from the fact that the small farmers spent about 50% of average expenditure on it. However, historically, only a meager amount was allocated to this sector, now with the formation of a separate Ministry of Animal Husbandry, Dairying and Fisheries, it is now time to rectify this negligence.

Strategies for managing risks

The agricultural sector is dominated by various kinds of risks from production owing to issues of inputs such as water management, weather, price, and credit to market risks like sudden fall in prices due to a bumper crop, as in the case of tomatoes and onions every year.

Production risk

In India, for many crops, yields are half of that of the world average. It indicates scope for enhancing yield through technology. The yield per hectare of wheat in India is less than the world average and less than one-third of the best performing nation. The skewed distribution of fertiliser subsidy, pricing policies, and the resultant imbalances in the use of fertiliser, require corrective measures to optimal use of fertilisers to reduce the cost to farmers. It was addressed through Soil Health Card (SHC) Scheme and Direct Benefit Transfer (DBT) on fertilizer on a pilot basis with good results. However, both these schemes are suffering from teething troubles. The availability of quality seeds in the country is important to increase yields. The availability of quality seeds has increased from less than 40 lakh quintals during the decade of the 60s to 380 lakh quintals in 2016-17. However, the seed supply chain is not fully developed in remote and backward districts and for neglected crops like pulses and oilseeds. There is a long way to go in improving the supply chain of inputs across India to make Indian agriculture competitive.

Weather risks

The economic survey suggested that, in a scenario of water stress, cultivation of water-intensive crops like sugarcane and paddy needs to be replaced by less water-intensive crops like pulses and oilseeds. Shift from water-intensive crops to less water-intensive crops in water-stressed regions needs to be a top priority. The water use efficiency in conventional irrigation ranges from 30% to 50% against 90% in the case of Micro Irrigation (MI) including drip irrigation. Many studies confirm that, with MI system, irrigation and fertilizer costs can be reduced by about 3%. The Benefit-Cost (BC) ratio of installing MI (micro-irrigation) system is greater than one in almost all states and across crops. It signifies the economic viability of MI systems even without subsidy in the enhancement of the farmer’s net income.

Agro-meteorological Advisory Services (AAS) can be effectively used to reduce weather risks. The effective use of weather forecasts along with crop model and advanced ICT tools to communicate forewarning about drought/flood conditions along with contingency measures to benefit the farming community needs to be given priority. In general, the information provided by the AAS system may translate into a net gain ranging from 8 to 10% to farmers who used the information.

Price Risk

The Indian farmer faces price uncertainties every season year after year due to supply and demand fluctuations, speculation and hoarding by traders. There have been several reports of distress sale by farmers, especially of perishables including in the last few years in case of tomatoes, onions, and pulses. Farmers need to be compensated for inefficient input and output markets, which result in a high input cost and lower and volatile output price. Field data indicate that Minimum Support Price (MSP) operations are ineffective to support farmers and it is also incompatible with WTO. A possible solution lies in a broader shift towards Direct Benefit Transfer (DBT) from MSP procurement except for paddy and wheat. Increasing food processing infrastructure is also essential to reduce costs of transport, logistics and value, add to make the Indian agriculture competitive globally.

Credit Risks

Access to institutional credit enables the farmer to purchase inputs on cash, tide over periods till receipt of payment from the sale of produce, which at times is delayed and staggered, and also to invest to enhance productivity. The ratio of agricultural credit to agricultural GDP has increased from 12 per cent in 2001-02 to around 40 per cent in 2016-17. The economic survey raised concern over the predominance of informal sources of credit for farmers. As per the NSSO 70th round data (relating to January to December 2013), 40 per cent of the funds of farmers still come from informal sources. Local moneylenders account for almost 26 per cent share of total agricultural credit. Alarmed by these concerns, the government targeted increase institutional to 11 lakh crore for the year 2018-19. In a significant positive move, of the total institutional credit to agriculture, the share of long term credit was increased to 35 per cent. Short term loans were given under the Interest Subvention Scheme (ISS), under which farmers availed crop loans up to R 3 lakh at 7 per cent interest and the effective rate of interest was lowered to 4 percent for those who repaid their loans promptly. Although there was a uniform push from the government to enhance institutional credit, north-eastern region and other backward districts are far behind the target.

Market and policy risks

Market risks are rising in the uncertain global environment. However, it also creates some trade opportunities. The escalating US-China trade war may open up the market for Indian agricultural exports to both China and the USA. However, to capture these opportunities, India needs to remove all restrictions on internal and international trade on agricultural commodities and dismantle fragmented legislations that govern agriculture to provide space to develop one-market-one-nation.

By A Amarender Reddy

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of AFTERNOON VOICE and AFTERNOON VOICE does not assume any responsibility or liability for the same.

87-year-old crazy Cricket fan — Charulata Patel

Vaidehi Taman

July 4, 2019

Despite being called a team sport, the game of Cricket has not always been a battle of eleven versus eleven. If you look at it closely, what we have in the Indian cricket team is a bunch of below average, mediocre mixed with one or two exceptionally talented players who can turn things around completely on their own. It is because we don’t have options, we are a manpower abundant but talent scarce country and the sport, for its part, does not require us to field all our best talents, just one or two will do just fine.

Nine out of ten times, a good performance by those one or two will be enough for us to change the game on its head. We started treating Cricket as something special. This development simply wiped out all the remaining competition that Cricket had with other sports in the country. Soon, small-time cricketers were invited to inaugurate national level Tennis and Football tournaments, because they earned good money and fame, at least ten times better than their counterparts in those other sports.

Even when the match-fixing scandal broke in 2000, India came out largely unscathed because of the power BCCI was wielding over other Cricket boards and also, over some of the big names in the Indian political framework. Moreover, given the unexpected rise of the team under the captaincy of Sourav Ganguly, the whole episode was forgotten overnight.

During the 60s-70s, Indians had a craze for Hockey. However, when the Hockey team failed to win against Pakistan, especially in one of the major tournament during the early 80s, people started hating Hockey.

On the other hand, when Kapil Dev’s Indian team won the World Cup 1983, people got diverted from Hockey to Cricket. India has a large number of fan following for Cricket. It’s not only the team that is playing, but virtually every Indian is involved in the game. The craze is unlimited!

These days one such crazy fan hit the headlines as India’s win in the closely contested match played against Bangladesh helped the team qualify for the World Cup semi-finals. Bangladesh lost by 28 runs at Edgbaston amid hoots and cheers from the Indian fans.

More than the game, there were cute captions across social media. An old lady who is a Cricket fan, however, stood out among all others, by sheer virtue of her excitement. She fascinated all the cameras as she enthusiastically blew her colourful trumpet, cheering for Kohli and his men from the stands. She was happy, full of joy, and apart from all these, she was like a young kid while expressing her happiness for her Cricket team. Social media went viral with pictures and gestures. Within no time, Charulata Patel became the showstopper.

Some channel interviewed Charulata and she said that she was there in the stadium when India took its first World Cup, back in 1983, under captain Kapil Dev. It was indeed a very pleasant sight to see some of our team members chatting with Charulata Patel after India’s victory over Bangladesh.

During a chat with the media, she did say that she treats the whole team as her own children and wished them a win at the final. She believes in her prayers and she thinks whenever she prayed for the Indian Cricket team, they won the match.

From the past 40 years, she is been watching Cricket matches, she was a working woman. She used to miss her job to watch Cricket because she loves India. During the conversation with media, Charulata said that she used to write all the main records of Team India in a notebook. This elderly Cricket fan has also said that team India is going to win World Cup 2019. After Virat Kohli, Vice-Captain of Indian Team Rohit Sharma got blessings from the 87-year-old woman.

Charulata Patel was born on May 1, 1932, in Tanzania, East Africa. However, now she is living in England, United Kingdom. Her English accents are so like African English. She is very clear and straight in her expressions. She is an octogenarian fan who stole the attention of all cameras by her enthusiasm and activities during the match.

At the age of 87, her enthusiasm mesmerised the Indian players and the audience. When life has come to the last inning, a Cricket fan has got her reward and the chance to greet her heroes. Not only that, the world is now talking about her. India is a country of 1.33 billion people and Cricket is the most popular game in the country. So, you can imagine how many Cricket fans are there from India only.

The Board of Control for Cricket India (BCCI) generates revenue twice of all other cricket countries that is an official proof that India has a huge number of fans. Predominantly Indian sub-continent is filled with Cricket enthusiasts.

Another thing about Cricket that appeals to us is its simplicity and the related cost factor — to start a game of Cricket with your friends, all that you need are a few broken sticks, a rubber ball, and some open space. Pitch conditions never matter to us. In contrast, basic gear and equipment for most other outdoor games are a tad too expensive, at least in India. Also, given the crowded nature of our playgrounds, Cricket is the best and the only option left to our kids. We have seen 10 to 15 games being simultaneously played on these grounds. You simply can’t do that when you play a game of Football or Hockey or anything of that sort. Maybe this is the reason that Cricket became overnight rich and fascinating game of India and with every match, they have generated a special fan following too.

(Any suggestions, comments or dispute with regards to this article send us on feedback@www.afternoonvoice.com)

Can only cheaper fare revive BEST?

Afternoon Voice

July 4, 2019

The Brihanmumbai Electricity Supply and Transport (BEST) bus service is facing a survival challenge since long as it is losing passengers at an alarming rate while its revenue graph doing downwards with time. According to reports, its ridership is at the lowest in the past decade. The average daily ridership of BEST buses stands at 26.20 lakh at present. It is down from 28.34 lakh for the same period last year. BEST buses used to ferry 42.06 lakh passengers per day a decade ago. That is why BEST decided to reduce fare which will likely be implemented from July 8. While riders are mostly unhappy about poor services and rude staff of BEST buses, only cheaper fare unlikely to help in its revival. BEST is in dire need to improve services to win the hearts of the city again.

VS Nagaonkar, Officer on Special Duty, BEST, told Afternoon Voice, “BEST has decided to reduce bus fare. Cheaper bus fare will attract more passengers and ultimately, it will enhance its revenue. More people will travel by bus, more will be our income.”

It is worth mentioning that the state’s Regional Transport Authority (RTA) has given green signal to BEST’s proposal for reducing bus fares. BEST officials expect that this move will boost ridership and income, too. As per the final decision, the minimum non-AC bus fare has been reduced from Rs 8 to Rs 5 for the first five kilometres, while the maximum fare for this class has been capped at Rs 20. The minimum AC bus fare has been brought down from Rs 20 to Rs 6 and the maximum fare has been kept at Rs 25. Now, the fare slab for non-AC (regular) buses will be Rs 5, 10, 15 and Rs 20, while it will be Rs 6, 13, 19 and Rs 25 for air-conditioned buses.

BEST has a fleet of 3,337 buses, including 120 double-deckers. At present, BEST is unable to recover even its cost of operation. It operates 483 routes in Mumbai, Thane and Navi Mumbai and its daily loss is estimated at around Rs 2 crore. BEST aims to bring its daily ridership to at least 42 lakh passengers per day. Meanwhile, the BEST will be getting 450 Midi/Minibusses that are smaller in size. These will maneuver on narrower roads and as per future plans, become modes of transport for connecting Metro rail stations on various routes.

Vasanti Pandurang Main, a regular BEST commuter and a resident of Lalbaug said, “BEST Bus staff never reply properly to any query. Their behaviour is not good. BEST buses do not run on time. Therefore, people do not prefer travelling by bus. Although BEST has reduced bus fare, it will not be beneficial more. Time is very precious and important to the Mumbaikars. So, they will not choose buses to travel if their services continue to remain poor.”

Official notification will be issued in a day or two, after which the new fares will be implemented across all routes. BEST Chairman Anil Patankar said, “If the notification is issued in two days, there will be the weekend and implementation will only be possible by Monday or Tuesday.”

Senior BEST Committee member Ravi Raja also welcomed the decision, but he pointed out that it is going to make an annual loss of Rs 125 crore due to fare reduction. Meanwhile, the BEST will be getting 450 Midi/Minibusses that are smaller in size. These will maneuver on narrower roads and as per future plans, become modes of transport for connecting Metro rail stations on various routes.

Sachin Kamble, Conductor of Vikhroli Bus Depot asserted, “After the reduction of bus fare, definitely the number of passengers will increase. However, the number of staff has gone down. In spite of this, BEST buses are clean and comfortable. Bus staff act promptly on any complaint.”

Experts say that BEST needs to take multiple steps to counter the situation and win the heart of the city dwellers. They suggest that it must increase the speed of its buses, besides improving service quality. Priority should be given on increasing the speed and frequency. Local trains, metro, and Monorail are competitors of BEST bus services in the state capital. Besides them, private taxi services are also putting challenges for bus services. So, BEST has to overcome all challenges and improve its shortcomings.

Purva Mukesh Satane, a student from Ramnarain Ruia College said, “For people who come under BPL (Below Poverty Line) category, only bus traveling is affordable. So, the common man will never stop travelling by bus whatever the circumstances might be.”

On the other hand, many passengers say that BEST bus services are no longer the best. Bad management and rude staff hurt people. Conditions of BEST buses are not good. Their brakes fail anytime and anywhere during the journey. They say that the average peak hour speed of BEST buses has dropped by nearly half in a decade, from 16 kmph in 2008 to 9 kmph today. The situation in the peak hour must be even more suffocating. There is a big loss for customers. Over 17 lakh passengers have opted out of bus travel daily in the same ten year period.

‘Amchi Mumbai – Amchi BEST‘, a forum of transport experts, welcomed the move but with a note of caution. The Forum co-convener said, “We agree with fare reduction, but it has to be complemented by other measures like dedicated bus lane on all arterial roads to ensure buses get priority. In addition to this, commuters should be concerned about contractor-run buses because it is uncertain whether these buses are safe or reliable.”

By Rajesh Kumar Choudhary & Moumita Mukherjee

Economic Survey 2018-19 highlights

Web Team

July 4, 2019

Following are the highlights of the Economic Survey 2018-19 tabled in Parliament Thursday:

* GDP growth pegged at 7 pc in 2019-20, up from 6.8 pc last fiscal

* Growth in current fiscal to be driven by investment, consumption

* Sustained 8 pc growth needed to become a USD 5-trillion economy by 2024-25

* Huge political mandate augurs well for growth prospects

* Investment is the “key driver” of simultaneous growth in demand, jobs, exports & productivity

* Green shoots in investment, visible pick-up in credit growth seen

* Crude oil prices to decline in 2019-20, to push consumption

* General government fiscal deficit seen at 5.8 pc in 2018-19, against 6.4 per cent last fiscal

* Projects imports to grow at 15.4 pc, exports at 12.5 pc for 2018-19

* Projects 283.4 million tonne of foodgrain production in 2018-19

* Foreign exchange reserves at USD 422.2 billion in June 2019

* Suggests policies to unshackle MSMEs to grow, create jobs and enhance productivity

* Calls for reorienting policies to promote young firms which have the potential to become big, rather than small MSME firms which remain small

* Flags need to prepare for ageing of the population; this necessitates more healthcare investment, increasing retirement age in a phased manner

* Highlights the immense potential of data of societal interest, says data should be “of the people, by the people, for the people”

* Legal reform, policy consistency, efficient labour markets and use of technology focus areas

* Contract enforcement biggest constraint to improve Ease of Doing Business ranking; much of the problem is concentrated in the lower courts

* Low pay and wage inequality remain serious obstacles towards achieving inclusive growth.

* Policy changes needed to lower overall lifetime ownership costs and make electric vehicles an attractive alternative to conventional vehicles

* Survey recommends harmonised overarching National Policy on Resource Efficiency.

When will Pandemonium stop in Rajya Sabha?

R K Sinha

July 4, 2019

Rajya sabha,sabha,Lok Sabha,inside Parliament — File Photo

Unfortunately, the Upper House of the Parliament is acquiring a typical characteristic of a House of disorder and pandemonium on ‘point of order’ the motive of some Members is to create disorder. There is an absence of serious debate and discussion in the House. Obviously, a most disappointed and disheartened man appears to be the Chairman of Rajya Sabha M Venkaiah Naidu who is also Vice President of India. His anguish is visible in his address to the House on June 21. I was present in the House that day and I attentively listened to his speech. Every word that he uttered showed his pain.

“Honourable Members, you are the representatives of the people and you have been sent to Parliament by the people with trust and hope. You must bear in mind that when you enter this great Parliament, crores of eyes watch you. After Lok Sabha elections of 2019, you have got one more opportunity to discuss and debate burning issues of the day as per expectations of the people. Find a solution, resolve issues and make laws that improve the life of the people.”

I am greatly pained that people are forming a negative opinion of the House because of frequent obstructions and pandemonium which is dangerous for democracy. One hour of Question Hour means 45 Members getting a response from the Government on important subjects. One hour of Zero Hour if wasted means 15 Members are deprived of raising issues of public interest in the House. We have to seriously think what we want, after all, a House that works for the people or a House of chaos and disorder. People have started thinking if this is the state of affairs in the Upper House then there is a danger to our democracy.

Chairman further said that many bills are passed by the Lok Sabha but without any reason, the bills get stuck in Rajya Sabha and kept pending for years. Bills that are not passed by Lok Sabha get elapsed after five years. The bill is again tabled in the Lok Sabha for its clearance. Once the Bill is passed in Lok Sabha the bill is sent to Rajya Sabha. This is the practice. However, many Bills are pending in Rajya Sabha for decades. As per provision of Article 107 of the Constitution, when a Bill is passed by Lok Sabha but the same Bill is not passed by Rajya Sabha after five years the Bill elapses and Lok Sabha has to take up the Bill again for its passage.

Rajya Sabha could not pass 22 Bills that were passed by 16th Lok Sabha in five years. The bills would go back to Lok Sabha. Even when Lok Sabha reconsider the Bills and pass them, it will take at least 2 to 3 years causing wastage of public money in crores. Should not we think seriously on this matter?

Bills that elapsed include Land Acquisition Bill 2015, Factory Amendment Bill 2016, Motor Vehicle Amendment Bill 2017, Consumer Protection Bill 2018, Company Law Amendment Bill 2019, Bill to stop irregular saving schemes, Bill on Adhaar and related matters, Triple Talaq Bill 2017 and 2018, Child trafficking and Rehabilitation Bill 2018 and Citizenship Amendment Bill 2019. But this is not the complete list of pending Bills in Rajya Sabha.

Honourable Chairman also informed the House that at the end of the 248th session of Rajya Sabha as many as 55 Bills were pending out of which 22 Bill elapsed. There are 3 Bills pending for the last 20 years. Six Bills are pending for the last 10 to 20 years and 14 Bills are pending for the last 5 to 10 years. Out of 33 Bills pending only 10 Bills are pending for less than five years.

Honourable Chairman asked the Members if they are aware of the fact that important Bill like Indian Medical Council Amendment Bill 1987 is pending in the House for the past 32 years. Can it be taken in a comfortable situation? Similarly, 79th Constitution Amendment Bill 1992, Municipal Area Amendment Bill 2001, Farmers related Seeds Bill 2004, Pesticide Amendment Bill 2011, Mining Amendment Bill 2011, Amendment Bill related to migrant labourers from one state to another 2011, Misbehaviour with Women Amendment Bill 2012, Amendment Bill related to workers in building and other construction work 2013 and Illegal possession of Waqf Property Amendment Bill 2014 are still pending.

Honourable Chairman said that “we can’t escape from our responsibility” that there is also a contribution from our side for creating this situation. We have to consider seriously that a constructive debate and consensus is the only solution to this problem. We should look for consensus rather than differences on issues.

Today 65 per cent of our population consists of boys and girls who are less than 35 years of age. Considering the age group of our people we have to work for their progress then only we can have the prestige and status of Rajya Sabha maintained.

Questions are being raised on Legislature and Institutions related to it from all quarters. Many Members who come prepared for discussion on subjects but are deprived of the opportunity due to disorder must be sharing the anguish of the Chairman Venkaiah Naidu. I am one of the sad Member of the House. I have also gone through depression in the past five years. The House is adjourned frequently on trivial matters. How any work will be done when the House does not function? As a matter of fact, those Members who disrupt the proceedings of the House have the green signal from their leaders to ensure that the House does not function. They keep shouting and enter the Well of the House forcing adjournment. Their only objective is to oppose the Government’s positive policy. It is seen often that the leader of the Members who create ruckus is seated in the House and smiles while his Members keep sloganeering. The leaders say that they want the House to function. Just look at their double speak. After the adjournment of the House, some Members join me over a cup of tea in the Central Hall of Parliament. They admit that they have to create an obstruction in the House because the ‘high command’ wants that.

The situation has come to this point that the general public has started thinking that Parliament does not function as per the provision of the Constitution. Members indulge in noise and sloganeering. It has raised a question over the credibility of the Parliament. There is a gradual erosion of faith in the Parliament. People now directly watch on TV what happens in the Parliament. Yet the great Members refuse to mend their ways and conduct in the House.

Naidu has rightly sounded a note of warning to the Members in this regard. Erosion of faith in democracy is dangerous.

You will remember that during the past few sessions of Rajya Sabha there were uproar and pandemonium over Rafale deal, Farmers issue, Special Status for Andhra Pradesh and some other trivial subjects. Rajya Sabha was not allowed to function.

Honourable Chairman Venkaiah Naidu has always tried to appeal to the Members to maintain order in the house during the ruckus with sound reasoning. But the agitating Members refused to listen to the Chair. Surprisingly even when obituary references were being made for the departed Members there were instances of interruptions but after the repeated appeal of the Chair, the House paid tribute to the Members who died during the intervening sessions.

Naidu said that our Parliament has to perform a great role in making of new India by 2022 so that we all can take pride in it. We have to see how far the Members listen and fall in line to let the Parliament function smoothly.

Arun Jaitley had also said one thing during one of the previous sessions of the House that can Rajya Sabha stop a Bill passed by Lok Sabha. But somehow this was not debated properly. The Chairman also says what Jaitley had said. Democracy means debate, discussion, and resolution of issues. The prestige of the Upper House will be restored only by allowing the House to function which can be achieved by joint efforts of all the Members of the House.

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