Poverty Eradiction Campaign is nothing less than a Statics jugglery, Indian planning Commision proved this more than once as the Finance Minister treats Fiscal discipline in more or less same way. fiscal deficit is rediced to Effective Revenue Defici

Poverty Eradiction Campaign is nothing less than a Statics jugglery, Indian planning Commision proved this more than once as the Finance Minister treats Fiscal  discipline in more or less same way. fiscal deficit is rediced to Effective Revenue Deficit.The UPA Government allowed TMC Supremo Mamata to Hijack the Railway for Privatisation and now Pranab managed Mamata`s Populist Budget with Generous central Aid.hence NO Wonder that  Rejecting widespread criticism for pegging poverty line at Rs 28.65 daily consumption, plan panel deputy chairman Montek Singh Ahluwalia on Saturday asserted that the number of poor in the country has come down irrespective of the method of calculation. REFERRING to rising crude prices, Finance Minister Pranab Mukherjee said here today that the government will be forced to take some important, but "difficult decisions" in the coming months. This remark comes amid growing criticism over the government's policy freeze, the state of its finances and retrograde taxation provisions in the Budget Mukherjee presented.


Indian Holocaust My Father`s Life and Time - Eight HUNDRED NINETEEN

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Poverty Eradiction Campaign is nothing less than a Statics jugglery, Indian planning Commision proved this more than once as the Finance Minister treats Fiscal  discipline in more or less same way. fiscal deficit is rediced to Effective Revenue Deficit.The UPA Government allowed TMC Supremo Mamata to Hijack the Railway for Privatisation and now Pranab managed Mamata`s Populist Budget with Generous central Aid.hence NO Wonder that  Rejecting widespread criticism for pegging poverty line at Rs 28.65 daily consumption, plan panel deputy chairman Montek Singh Ahluwalia on Saturday asserted that the number of poor in the country has come down irrespective of the method of calculation.

" ... whatever poverty line you choose. The question is poverty in the country is going down. Some people have said that it is not correct ... poverty is not going down ... I reject that view ... I categorically say whatever indicator you use things are getting better in this country," Ahluwalia said.

As per the commission's estimates, based on the Tendulkar Committee formula,poverty ratio has declined to 29.8 per cent in 2009-10,from 37.2 per cent in 2004-05. But the ratio has been worked out based on a controversial per capita daily consumption of Rs 28.65 in cities and Rs 22.42 in rural areas.

He also said that Rs 28.65 poverty line would not be linked with the social sector schemes of the government. "The commission will take a holistic view with what poverty line, we want to go ahead. It is clear that we are no linking it with the beneficaries of the social sector schemes," he said.

Ahluwalia, who was talking to reporters after ground-breaking ceremony of the Trident group's textile unit, however,said "the Tendulkar Committee line ... I think, it is quite reasonable.Today, we are growing faster". The plan panel deputy chief said.

Earlier this week, Ahluwalia was the target of attack inside and outside Parliament after the Planning Commission put out the poverty numbers. Samajwadi Party chief Mulayam Singh Yadav even asked for his removal.

Meanwhile, Finance minister appealed on Saturday to fractious government allies and a hostile opposition to cooperate "in the national interest" to restore the health of Asia's third-largest economy.Pranab Mukherjee's call came as global ratings agencies and investment houses warned that India's weak public finances and political paralysis over reform measures were clouding the nation's financial prospects.A day before activist Anna Hazare sits on dharna at Jantar Mantar, finance minister Pranab Mukherjee said there is no trust deficit between the government, civil society and other stakeholders.

Let me assure you that there is no trust deficit and without the cooperation of industry, the larger political establishment and civil society we cannot be equal to the gigantic task at hand," he said.

Hazare will be sitting on a day long fast at Jantar Mantar here to press for protection of those who blow whistle against corruption.

In the backdrop of several scams, the government has been facing pressure from sections of civil society for a strong Lokpal Bill against corruption.

Besides, some industry leaders had talked about policy paralysis afflicting the government.

REFERRING to rising crude prices, Finance Minister Pranab Mukherjee said here today that the government will be forced to take some important, but "difficult decisions" in the coming months. This remark comes amid growing criticism over the government's policy freeze, the state of its finances and retrograde taxation provisions in the Budget Mukherjee presented.

Mukherjee echoed Prime Minister Manmohan Singh who said on Budget day that the government would have to "bite the (subsidy) bullet."

Mukherjee also indicated that while an easing of interest rates is on the cards, rising prices of crude could impact the quantum of the rate cut by the central bank.

"In meeting the targets under the (expenditure) roadmap, I am conscious of the fact that the government would need to take and implement some difficult decisions in the coming months. We cannot go on with the approach that is divorced from the reality. But I believe that Budget is not the only exercise through which all the work is to be done because I cannot ignore the ground reality that mere announcement of decisions, if it cannot be pursued, is serving no purpose as it happened in the past," he said at an event organised by FICCI. Crude oil prices are hovering at around $125 a barrel — India imports about 80 per cent of its crude oil needs.

"Core inflation has moderated in the past three months and in the coming months we are looking at reversal of the policy rate, which should help in improving business sentiments," Mukherjee said.

Getting India's economy back on track "is a question of broad national interest that is staring us in the face," Mukherjee told the Federation of Indian Chambers of Commerce and Industry in a bluntly worded speech.

Union Finance Minister Pranab Mukherjee on Saturday said the Direct Tax Code (DTC) would be made operational by next year.

Speaking at the post-budget interactive session organised by Federation of Indian Chambers of Commerce and Industries (FICCI), Mukherjee said, "To mop up additional resource mobilisation and to give a credibility to the fiscal consolidation target it was needed to give a signal but apart from that in my budget speech I have explained it in details. That I am aiming to reach DTC, because the standing committee report was available to me only on March 6, therefore I have to operationalise it next year."

He further said that in the indirect tax regime, he was moving towards Goods and Service Tax (GST) for which it was important to align the excise duty and the service tax along with the state Value Added Tax (VAT).

"In the indirect taxes I am moving towards GST, in my interactions with the empowered committee of state finance ministers on several occasions, one thing is emerging is that we have to align the tax rates. At the centre and at the state level we will have to align the tax rates of the excise duty and service taxes."

"And after this alignment we will have to align the state rates keeping in view the state VAT (Value Added Tax). The ultimate objective of which is that the tax rate should not go beyond. Therefore the tax proposals are to be made keeping this approach in view," he added.

The DTC is said to replace the existing Indian Income Tax Act, 1961. It is expected to remove most of the categories of exempted income like Unit Linked Insurance Plans (ULIPs), Equity Mutual Funds (ELSS), Term deposits, NSC (National Savings certificates), Long term infrastructures bonds, house loan principal repayment, stamp duty and registration fees on purchase of house property will loose tax benefits.

The GST on the other hand, is a value added tax, which will replace all indirect taxes levied on goods and services by the Central and State governments. It is aimed at being comprehensive for most goods and services with few tax exemption.

However, the issue of compensation to the states for the reduction in the central sales tax still remain as a major bone of contention between the Centre and states, a point that is yet to gain consensus in order to implement the GST.


The Finance Minister, Mr Pranab Mukherjee, on Saturday sought to downplay the draft CAG report on coal block allocations. He said most of the issues raised by the Comptroller and Auditor General (CAG) at the initial stages are usually dropped after the respective Ministry's comments.

"The fact of the matter is that it is not a report by itself. The CAG is yet to finalise its report. After obtaining comments of Ministries, 90 per cent of issues raised initially by CAG are dropped. That is the normal practice and it is going on for 150 years," Mr Mukherjee said at a post-Budget meeting organised by FICCI here.

The Finance Minister said that the CAG's job was to find out the faults and not to praise or certify that the Government has done a good job.

"I don't understand why unnecessarily sensationalisation takes place," he said, referring to a newspaper report on the coal block allocation issue.

Even if irregularities are found in a CAG report, they have to be addressed by Parliament, he said. Mr Mukherjee also said that the CAG himself said in his letter to the Prime Minister that no further clarifications were required and needed.

OPEN TO TALKS

Meanwhile, Mr Mukherjee said he was open to talks with the Opposition parties to ensure that crucial economic Bills relating to pension, insurance and banks were passed at the earliest.

"I want to go with everybody. It is a multi-party democracy system that we are adopting. There is a federal structure. In a complex society, you cannot expect simple solutions."

The 77-year-old minister said he was "committed to protecting the credibility" of plans in his budget, presented earlier this month, to plug a widening fiscal deficit and trim a ballooning subsidy bill.

But Mukherjee said cutting spending "will involve tough decisions that we will have to take collectively", referring to coalition and opposition members who have been obstructing economic reforms at a time of slowing economic growth.

Doubts have been mounting about India's ability to deliver on its fiscal pledges amid worsening relations between the embattled ruling Congress and regional parties, whose backing it needs to retain power.

The graft-tainted government of Premier Manmohan Singh has had a series of embarrassing policy flip-flops in recent months with coalition members allying with the opposition to stymie reforms.

Earlier in the week, the government scrapped plans to hike rail fares -- a move intended to raise funds to repair the antiquated and unsafe network -- underscoring its growing difficulties in implementing policy decisions.

The government has set a fiscal deficit target of 5.1 percent of gross domestic product for the next financial year -- less than this year's gaping 5.9 percent -- but still the widest among big emerging market nations.

The government's woes have been compounded by decelerating growth with expansion for the next year to March, 31, 2013, targeted at 7.6 percent. That is up from 6.9 percent seen this year, but far below eight-to nine-percent growth for much of the past decade.

Among the hard decisions the government must make is whether to raise subsidised fuel and fertiliser prices.

Analysts say such hikes are key to cutting the debilitating subsidy burden but the move would be unpopular among India's vast poor population and require political courage from lawmakers with elections due at the latest by 2014.

"The implementation risk is high ahead of federal parliamentary elections," commented Fitch ratings agency.

Mukherjee recalled "another crisis" in 1991 in which India's currency reserves sank so low it was on the brink of defaulting on foreign loans. But that event turned out to be a catalyst for sweeping changes which began the process of the country's economic liberalisation, he noted.

"Despite being a minority government, with the collective will of parliament, it was possible to lift the economy," he said. "If we could face the challenges in the 1990s, we should be able to face the challenges in 2012-13."