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Sunday, January 31, 2010

How the Central Fund for SC, ST and OBC for West Bengal Goes Back!Without any Change in Indigenous, Aboriginal and Minority Life, There Would be NO Change in Bengal So Much So Hyped!

How the Central Fund for SC, ST and OBC for West Bengal Goes Back!Without any Change in Indigenous, Aboriginal and Minority Life, There Would be NO Change in Bengal So Much So Hyped!

Indian Holocaust My father`s Life and Time- Two Hundred Seventy Nine

Palash Biswas


How the Central Fund for SC, ST and OBC for West Bengal Goes Back! Udayan Nambudari, a journalist by Profession and Politically TMC alleged that the Central Fund for SC, ST and OBC go Abegging every time UNUSED. At the end of the Financial year, the Fund is sent back to the centre. Meanwhile it remains DEPOSITED in the Bank and the Government use the INTEREST in other works which never relate to SC, ST and OBC Communities!

Without any Change in Indigenous, aboriginal and Minority Life, There Would be NO Change in Bengal So Much So Hyped!


We Celebrated Marichjhanpi Day today in Historical Bharat Sabha hall which had been once upon a time Glorified with the Presence of Tagore, Vivekanand, Desh Bandhu and Fazlul Haq. Gurudev named the Hall in central Kolkata as BHARAT Sabha  highlighting the Passionate Indian Nationality modified from BANGAMATA of Bankim. But West Bengal based Brhaminical Hindutva Hegemony supported by SHUDRA Kayastha and Baidya doctored the Demography of Bengal and launched an Systematic scientific Ethnic Cleansing effecting Partition of India vesting the State Power and Economy in Zionist Brahmin Bania Raj co opting the Influential SC, ST , OBC and Minority Opportunist Unworthy elements and throwing the SC and OBC communities from east Bengal out of Bengal. They also succeeded to Marginalise the rural Land lords belonging to RAJPUT community who used to rule India since Vedic Civilisation killed our Ancestors demonising them and Unifying the Hindu Genocide culture evoking War Gods and Goddesses!

But Bengal being a NON Aryan Base INTACT even after the Fall of Buddhism, Cast Hindus were NON Existent until Pal Dynasty in and around Twelfth Century. Ballal Sen introduced Brahaminical Rituals in Bengal Importing Brahamins from Kannoj.

Hence, there had been NEVER any Rajput in Bengal. The Kayasthas and Baidyas covered the place and despite being SHUDRAS they not only are considered High Cast but lead the Genocide Gestapo.

 Jyoti Basu was the name of the Phenomenon.

Arvind Dhali, now a BJD MLA in Orissa and Ex Cabinet minister and Nimai Sarkar another MLA in Orissa condoled Basu in Passionate words recently. Dhali told that the SC refugees have Forgiven Basu and Nimai Sarkar rather justified MARICHJHANPI Massacre saying that as the Chief Minister Basu had not no Option!

But the Victims and Eye witness of the Massacre of children, women and Old men in cold Blood declared in Baharta Sabha hall,` WE HAVE NOT FORGIVEN.

 Dhali and Sarkar do not represent the SC OBC refugees nor they were trapped in Marichjhanpi  to be Slaughtered.

 What right they have to forgive Basu and his Gestapo?

 They demanded Compensation, Rehabilitation and Prosecution against the Criminals of the Act for which No One from the Caste Hindu Brahaminical Civil society, Intelligentsia or media ever demanded justice in last Thirty One years in Brahamin Front Raj!

 But the Changing wave CONVERTED the Brahamin kanya Ms Mamat Banerjee MATUA. TMC organised  protest meeting in Barasat recently amidst Hectic Matua Mobilisation for the Next assembly elections while some BSP leaders led by Nakul Mallick, RSS minded Dr. Jgadish Haldar and an economist Dilip Haldar Celebrated Marichjhanpi day in DUMDUM today. Sumit Chakrabarti, the mainstream editor hosted a Marichjhanpi seminar in New Delhi recently.

Even today, Journalist Udayan Nambudari who had been TMC Candidate in Dumdum Constituency flied from New Delhi to join Bharat Sabha Meeting attended by Parivartanwalas as well led by Professor Sunanda Sanyal. But no body did mention Marichjhanpi, the original Book written by Jagadish Chandra Mandal,worthy son of Mhapran Jogendra Nath Mandal who got Dr. BR Ambedkar elected to Constitution assembly with the assistance of Mukund Bihari Mallick. Jagadish babu was also present in the meeting. AB Thakur, who had been fighting Loksabha Elections from Mathurapur on BJP ticket was also present.

I would not name the Victims and Eyewitness present as I am afraid of Persecution Further. But the Parivartan walas are shedding tears for SC OBC Refugees and trying hard to maintain Status quo in Bengal to sustain Manusmriti rule just changing the Political faces. As they used well Peasants` uprising in Singur, Nandigram and Lalgarh to get personal Milage in Politics, they are all set to Encash MARICHJHANPI after Three Full decades. TMC used the MARICHJHANPI film in the last Loksabha elections to break SC and OBC vote bank bases of the Left Front! We must understand the laws of the Game!

Thus, Indian nationality and Bengali Nationality has been a all in all Micro Minority Brahmin Ritual since the days of Bankim and Tagore as the Marathi Manush in Maharshtra has been Hijacked by the Enemies of the Marathi Nationality whose supreme Icon Shivajee Maharaj had been an OBC!


The Demographic Alchemists were Never Exposed before Nandigram Genocide stripped off the Progressive Secular Masks of the Gestapo Masters of the Genocide culture!

Nandigram Phenomenon began right in January 1979, while Marxist supreme Icon Jyoti Basu and Left front leaders invited Dandakaranya Refugees in Bengal to Create a Vote Bank to upset the Apple Cart of Congress. But Emergency changed all equations as the Left front held on Power in Bengal since 1977 Mid term elections.

The real danger was the Revival of Dalit Muslim unity once again which had to be ABORTED and Basu and company did it very well in MARICHJHANPI.

 The Phenomenon continues as every Victim since then even in so much so Globally Highlighted Singur, Nandigram and Lalgarh insurrections and even during the Food Movement and Naxal Uprising belonged to ST, SC and OBC Communities only and Only!


Meanwhile,Abject poverty drove a OBC woman to sell off her infant son for a mere Rs one thousand, but was arrested before she could do so. The woman, identified as Anjali Saha, was trying to sell off her child at Santipur area of the city Guahati today when local people informed an NGO whose workers called the police. On the other hand,another BRAHAMIN Mitra takes over as Revenue Secretary!After implementing the UPA government''s disinvestment plans for the past six months, Sunil Mitra today took over as the Revenue Secretary, less than a month before the Budget presentation in Parliament. "Mitra today assumed charge of the Revenue Secretary," an official in Revenue Department of the Finance Ministry said.

A crucial task of striking a fine balance between compressing fiscal deficit and promoting economic growth awaits Mitra at the North Block. His assuming office of the Revenue Secretary comes at a time when a debate raging on whether the government should roll back some of stimulus measures or not.


The Reserve Bank in its last quarterly policy review had advised the Finance Ministry to start rollback of some of stimulus measures. However, the industry has voiced its strong concern against any withdrawal till the recovery is on a strong footing.


The government had cut excise duty by six per cent, service tax by two per cent in phases from December 2008 and stepped up the Plan expenditure to provide stimulus to the then slowing down economy. However, this has hit the exchequer hard with fiscal deficit projected to widen to 6.8 per cent of the GDP this fiscal, whereas it should have come down to 3 per cent by the last fiscal, as per the Fiscal Responsibility and Budget Management Act.

Government taking steps to check food prices, Super DON of Brahaminical LPG Mafia Ruling Inda, Pranab consoles the Straving Aboriginal Indigenous India as he did so well in Barala (West Bengal)! The government is trying to manage the 'supply side' and 'demand side' in a bid to contain rising food prices, Finance Minister Pranab Mukherjee announced Sunday.

'The government is taking necessary steps to contain the food price inflation. There are two ways to manage inflation - supply-side management and demand-side management.


'RBI (Reserve Bank of India) has already done the demand-side management by raising the CRR (cash reserve ratio). It will suck out Rs.40,000 crore money from the banking system. This will ease liquidity pressure on the system,' Mukherjee said here.


He was speaking at a programme organised by the State Bank of India at the opening of the group's 20,000th ATM at Barala in Murshidabad district.


Mukherjee said steps were also being taken on the supply side.

'Steps are being taken for supply of essential commodities like sugar, edible oil and pulses. Open import has been allowed and some import is already happening in these commodities,' he said.


He added both public and private sectors can import essential goods. The public sector has already started it.


… the country could soon have a new model of central universities that offer preferential admission to students from minority communities which is not followed by any central varsity until now.

The proposal forwarded to the law Ministry for inspection explores a central university model in public-private partnership mode (instead of total central funding), to come up on land donated by the Wakf Board in Rajasthan, Bihar and Karnataka.

Although offering admissions to both majority and minority students, the land for these universities will be given by the Musilm communities with the minorities getting the maximum share of seats.

They are expected to come up at Ajmer, Kishanganj and Mysore and are expected to get the maximum share of seats in these new varsities.

The Minister of Minority Affairs Salman Khursheed confirmed that the concept has been borrowed from Dr B.R Ambedkar University, which came up to educationally empower SC students.

Odisha must take a cue and push for PPP based central universities – in addition to branch(es) of IGNTU – for its tribals.

http://www.orissalinks.com/archives/category/special-focus/scstobcminority-schemes



DAVOS - A week of tense bankers, recovery hopes, star gazers

Sun, Jan 31 05:54 PM

A woman walks past the logo of the World Economic Forum (WEF) at the congress... Enlarge Photo A woman walks past the logo of the World Economic Forum (WEF) at the congress...

The top executive was on a roll -- Barack Obama didn't know what he was doing, he didn't understand business, he didn't realize knee-jerk pronouncements could destroy jobs.

It was a private, five-minute, expletive-filled tirade against the U.S. president for this reporter's benefit. Welcome to one aspect of the World Economic Forum's annual schmoozefest.

This unique event -- a gathering of several thousand of the members of the world's business and political elites for debate, dealmaking and a fair amount of partying in a ski resort in the Alps -- is in many ways an annual celebration for capitalists.

But this is a very dysfunctional family.

For the second successive year, the recriminations arising from the financial crisis were a dominant theme.

Sure, the global economy looks better - people are no longer talking about financial Armageddon, while some CEOs are talking about investing more, buying companies and even hiring.

But many times when executives talked about a recovery, they also used words like "fragile" and then mumbled about whether the battle between bankers and politicians could upset it all.

The tone for this year's WEF was partially set by Obama's proposal on Jan. 21 to ban financial institutions with commercial banking operations from engaging in proprietary trading operations for their own profit. Coming against the backdrop of sky-high Wall Street compensation, only just over a year after huge government bailouts, it meant bankers' behaviour was going to be a major focus.

The release of the annual Edelaman Trust Barometer at Davos didn't help. It showed that college-educated, so-called "opinion leaders" around the world have lost a huge amount of trust in banks. In the United States, for example, the trust level has plummeted to just 29 percent of those surveyed from 68 percent in 2007.

PUBLIC ENEMY NUMBER ONE?

No wonder that Junichi Ujiie, the chairman of Japan's largest brokerage Nomura Holdings Inc, said he perceived bankers were seen in the West as "public enemy No.1."

"When I come to Davos I find a very big difference. Bankers and investment bankers in Tokyo are still respected," he said.

This year more top bankers turned up than last year, when it was too dangerous to risk being seen near a ski slope supping gluhwein and fondue just after being rescued with taxpayer cash.

Some of those who did come this time around kept a low profile -- Citigroup Inc CEO Vikram Pandit and Morgan Stanley Chairman John Mack were rarely seen around the Davos Congress Centre, though new Bank of America CEO Brian Moynihan was much more prominent.

A meeting between the CEOs of top financial institutions failed to find common ground over regulatory reform, according to several who attended. A push by Wall Street banks and some major European peers to battle back against politicians' attempts to bring in tougher regulations didn't get the support of some European commercial banks who prefer a more conciliatory tone.

By the Saturday, the bankers and regulators were reduced to using post-it notes and white boards in a joint brainstorming session that was inconclusive.

WORRY FOR BUSINESS

To executives in other sectors, this is concerning. If the banks and political leaders continue to fight then markets and bank lending might take a further hit, crimping the recovery.

Daniel Vasella, the chairman of Swiss drugmaker Novartis AG, said lack of trust in the system remained his big worry and made the risk of a double-dip slump "substantial".

Even some bankers are fast losing patience.

"I think the industry had better wake up before they get the wrath of God on them," said Joseph Perella, a veteran dealmaker and chairman of U.S. investment bank Perella Weinberg Partners.

Of course, there is always a possibility all this huffing and puffing may be a lot less relevant than the evidence of more than just green shoots in parts of the economy.

Luxury hotel chain Starwood Hotels & Resorts Worldwide Inc said during the week it expects to open 80-100 hotels this year and its CEO Frits van Paasschen said at Davos it was benefiting from pent-up demand as companies who cancelled their offsite sales meetings last year now reinstate them.

Even the paranoia among executives that they would get accused of organizing junkets at a time of job losses and government rescues has diminished, he said. "People are more discreet but they are not scared," he said.

The heads of top private equity firms, such as Blackstone Group LP, Carlyle Group and Kohlberg Kravis Roberts & Co, also said they were optimistic.

Vivek Ranadive, the CEO of business software firm Tibco Software Inc, said it was time to "quit whining".

But then again perhaps we should just consult the astrologers, like Geneva-based banker and industrialist Prakash Hinduja. When asked at the WEF about the investment climate he had no hesitation in declaring 2012 will be a very bad year in the U.S. and the years heading into it not much better: "The astrology guides us on this," he said.

Hinduja might want to do a little star-gazing for the bankers and regulators too.

(additional reporting by Ben Hirschler)

Martin Howell
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PM to inaugurate chief secretaries' conference

Prime Minister Manmohan Singh will inaugurate a two-day conference of state chief secretaries here Monday aimed at formalising the process of interaction with states and union territories.

The first of a kind conference would serve as a standing forum for exchange of views between the central and the state government and provide an occasion for interaction on internal matters, a government statement said.

'Issues relating to the latest trends in technology, emerging global challenges and opportunities and key security concerns and the role of state governments would be discussed. Global developments that have a bearing on the country would also be deliberated upon.'

Organised by the ministry of personnel, public grievances and pensions, the conference would be attended by Minister of State in the Prime Minister's Office Prithviraj Chavan, Cabinet Secretary K.M. Chandrashekhar and other senior officials.

Technology can improve quantity of agri-product: Joshi

Uttar Pradesh Governor B L Joshi today said that scientists should conduct their research according to need of farmers. "Industrialisation helps in economic growth but food grains can only be obtained from agriculture land.

Improved seeds, better irrigation facilities, new technology can help to improve the quantity of agri-product," Joshi said while inaugurating a Kisan Mela organised by CIMAP here. "The demand of food grain has increased in the entire world, hence we should lay stress on better productivity to ensure better supply of food grains," he said.

Joshi said for upliftment of farmers it was needed to encourage increase in productivity and develop agri-based industry.

Jaya Prada backs Amar Singh in Samajwadi row


Samajwadi Party Lok Sabha member Jaya Prada Sunday batted hard for former party strongman Amar Singh and lashed out at his detractors, saying they will be responsible if 'anything happened to him'.

'If anything happens to him (Amar Singh), those who have targeted him in the party will be responsible,' Jaya Prada told mediapersons here, coming out publicly in support of a friend whom the Samajwadi Party has now come to view as a liability.

Jaya Prada, Lok Sabha member from Rampur and a close associate of Amar Singh, however, hastened to say she was not quitting the Samajwadi Party. She also added that there was no need for Amar Singh to resign his Rajya Sabha seat.

She urged Samajwadi Party chief Mulyam Singh Yadav to check newly-appointed general secretary Mohan Singh, who she said had called Amar Singh 'mad' and 'shameless'.

The actor-politician, who was accompanied by some party legislators, said she would work with Amar Singh in Lok Manch, a non-political outfit, in raising problems of the common people.

She also came out in support of Amar Singh on the issues of the creation of a new state of Purvanchal, to be carved out from the present Uttar Pradesh, as well as the use of computers.

Jaya Prada said she differed from Samajwadi Party's official line on the women's reservation bill. The MP said she had backed the move to give reservation to women in legislatures while she was in the Telugu Desam Party but was later bound by the official line of the Samajwadi Party.

'As an individual, I feel it is important to encourage women (to contest elections),' said Jaya Prada.

Jaya Prada added that Amar Singh's resignation from party posts on health grounds had been politicised.

Amar Singh resigned from all party posts in the Samajwadi Party Jan 6. He is a Rajya Sabha member of the party.

Singh underwent a kidney transplant at a hospital in Singapore last year.


Meghalaya now has two chief ministers

Bizarre, but true. The northeastern state of Meghalaya now has two chief ministers - veteran Congress leader D.D. Lapang and the party's state unit chief Friday Lyngdoh.

And this has been made official by a formal government notification, not without a catch though - while Lapang is the chief minister with statutory authority vested in him, Friday Lyngdoh would simply enjoy the status and benefits of a chief minister without real power.

Lyngdoh was earlier the deputy chief minister in the 12-member council of ministers led by Lapang and continued to enjoy the status even afterwards.

'The rank and status of Lyngdoh has been upgraded from the rank of deputy chief minister to that of chief minister. He shall continue to function as political advisor to the Chief Minister,' the official notification read.

The weird political move to elevate Lyngdoh's status is seen as an attempt to quell any form of threat to the shaky Congress government. Recent reports said that Lyngdoh, along with seven other ruling party legislators, led a rebellion and even met senior central Congress party leaders in New Delhi demanding ministerial berths.

Technically speaking, Lyngdoh would simply enjoy the status of a chief minister with fringe benefits like security, perks and incentives, besides protocol as applicable to a chief minister.

'Lapang is the real chief minister, while Lyngdoh is chief minister without any power. It is a face-saving exercise and aimed at soothing an inflated ego of Lyngdoh who tried to engineer some dissidence,' a senior Meghalaya minister loyal to Lapang told IANS, requesting not to be named.

Instability marks politics in Meghalaya - the state has already seen three governments since the March 2008 elections, a situation characteristic of the mountainous northeastern state known for hop-skip-and-jump politics with legislators switching loyalties at the drop of a hat.

After the March 2008 assembly elections, Lapang was sworn-in chief minister of a Congress-led coalition government although he resigned 10 days later ahead of a scheduled trust vote, having failed to muster majority support.

Soon after, the NCP managed a deal with United Democratic Party (UDP) leader Donkupar Roy and formed the Meghalaya Progressive Alliance (MPA) led government in March 2008.

Barely 11 months down the line, Donkupar Roy's MPA government was dismissed and president's rule imposed in March 2009 following mounting political uncertainty after five legislators supporting the ruling government announced their decision to back the Congress, which was then in opposition in the state.

After two months of central rule, Lapang was sworn in chief minister of the Meghalaya United Alliance (MUA) coalition government with the UDP, a regional party, backing the hotch-potch coalition.

'In Meghalaya everything is possible. You are with one party at lunch, have dinner with a different party and are with a third party for breakfast. That is why there is so much instability in the state,' said A. Lyngdoh, a tribal community leader.

In the present 60-member legislature, the Congress has 28 legislators and enjoys the support of 10 UDP members.

The NCP, the main opposition, has 15 legislators.

Political instability is the hallmark of Meghalaya - the state has seen nine different governments with varied combinations of political parties, resulting in eight chief ministers between 1998 and 2009.

There were just two occasions when a chief minister was able to complete the full five-year term since Meghalaya attained statehood in 1972.


DAVOS - Fear, uncertainty cast pall over Russian business


Sun, Jan 31 06:30 PM

Attendees are reflected behind a logo at the congress centre of the Alpine resort of... Enlarge Photo Attendees are reflected behind a logo at the congress centre of the Alpine resort of...

Russian businessmen at the World Economic Forum in Davos struck a gloomy note this week, with many uncertain about the country's direction and others warning a climate of corporate fear could hamper growth.

The wealthy businessmen who ran Russia 10 years ago under President Boris Yeltsin lost their political influence during Vladimir Putin's presidency in 2000-08.

During the global economic crisis, many have gorged on state bailouts.

The state now controls about 60 percent of the economy and President Dmitry Medvedev's call for modernisation to lessen the dependency on oil is falling on deaf ears as entrepreneurs are too scared to show initiative after years of what they see as state bullying.

German Gref, CEO of Russia's largest lender Sberbank, was the only Russian in Davos who spoke openly about the mood of fear gripping the private sector since the state takeover of oil major YUKOS several years ago.

Gref, who also sits on the board of Russia's largest private oil firm LUKOIL, said that since the YUKOS affair, "the main issue on LUKOIL's agenda has been not development, but self-preservation".

"For me, it was a shock to learn that," Gref told an audience of investors, as LUKOIL's head and shareholder Vagit Alekperov looked on. Gref then called for a push to privatise state assets, suggesting a start with the bank he heads.

YUKOS assets were nationalised and former CEO Mikhail Khodorkovsky jailed for tax evasion after a protracted legal battle that has become a symbol of the fear and uncertainty governing business is Russia.

Even the word YUKOS is taboo and officials and other businessman rushed to play down Gref's words.

"It is for the government to decide," about bank privatisation, said another state banker Andrei Kostin, CEO of second largest bank VTB. Finance Minister Alexei Kudrin said that the sale was "too early to even talk about."

"It was very bold of Gref to say that," said another businessmen, who declined to be identified.

Gref, a prominent political and business figure, drafted the liberal reform programme for Vladimir Putin's first presidential term. His plans were implemented but then partly reversed during the second term, with the YUKOS takeover seen as a turning point towards more authoritarian policies.

Prime Minister Putin, whose speech in Davos on the state of the global economy last year was met with scepticism by international investors, did not come to the gathering this year -- but even in his absence the businessmen did not talk freely.

"There is no modernisation. To carry out modernisation you need leadership and there is no leadership," said the head of a large Russian company. He declined to be identified, saying he did not want to put his business at risk.

"I have thousands of people working for me."

NO MIDDLE GROUND

The depth of Russia's economic troubles last year brought new reform plans, with officials loudly talking about a new wave of privatisation and even political liberalisation, but rising commodity prices have put those ideas on the back burner.

Anatoly Chubais -- the architect of Russia's first wave of privatisation who now heads a state firm tasked with developing the hi-tech sector -- was among those issuing a stark warning.

"It is either modernisation or degradation. There is no middle way for Russia," Chubais told Reuters.

Conversations with Russian delegates at Davos showed there was no common vision of what the modernisation should mean.

"It is your ability to compete in the market which tells how "modern" you are. But I would first concentrate on cutting excess costs," Oleg Deripaska, CEO of the world's biggest aluminium firm UC RUSAL, told Reuters.

Deripaska, whose business empire was bailed out by the state, was humiliated by Putin in front of TV cameras during the prime minister's visit to one of his factories last year.

"I think that the best modernisation is the construction of roads," said Mikhail Shamolin, CEO of the country's biggest telecom company MTS.

Finance Minister Alexei Kudrin offered his own plan of reform at Davos, focusing on improving the efficiency of state spending to achieve 20 percent in real term savings within two years. He was vague on details.

To compensate for their fears at home, however, Russian businessmen descended en masse to a Ukrainian presentation -- where most felt free to crack jokes about messy politics across the border.

(Editing by David Cowell)

Gleb Bryanski

2006 WEST BENGAL ASSEMBLY ELECTIONS & MINORITIES



"I see clear as daylight that there is one Brahma in all; one Shakti dwells in all; the only difference is of manifestation. Unless the blood circulates over the whole body: has any country risen at any time? If one limb is paralyzed then even with the other limbs whole not much can be done with that body: know this for certain."

Swami Vivekanand

"There can be no stable equilibrium in any country without fair treatment of minorities".

Jawaharlal Nehru


In the context of the forthcoming legislative assembly elections in West Bengal, it is important to place before the people and the political parties the situation and aspirations of the minorities in the state.

It is hoped that all the political parties would have framed their election manifestos taking such issues into account.

It is important to emphasise that minorities in West Bengal, namely, Muslims, Sikhs, Christians, Buddhists and Jains, are not separate from the larger human community of the state. The problems and aspirations of the common people of Bengal – are the problems and aspirations of the minorities.

The struggle for a truly secular, democratic, poverty-alleviating, human development advancing society and government – is the struggle of all the people of West Bengal and India, including the minorities. And at the conclusion of any detailed investigation on the specific problems and crises of particular communities, e.g. Muslims or Christians, the analysis emerging would only be that poverty must be overcome, quality education must be delivered, mass awareness and empowerment, participation, enfranchisement must all be furthered. These are the key issues for all Indians.

The specific need for a focus on minorities is because true equality and fairness does not yet characterise public life in India and West Bengal today. The solution is for true democracy and development to reach down to the last person of the minority community, in step with reaching the last person of any community.

Minorities and most particularly Muslims are today facing acute socio-economic and educational deprivation, institutionalised denial of equal opportunities, and are mired in poverty, illiteracy and all-round backwardness. They live in a situation lacking in any hope, with disillusionment about political parties and governance. There is a crisis of leadership, in the sense of articulation of and action on the key issues, with transparency, integrity and persistence.

For every poor Muslim, there is also a poor Dalit, or a poor Adivasi. In as much as the whole governance and development system exludes the poor Dalit and Adivasi, and is unable even after close to 60 years of freedom to reach them, so does it exclude minorities and Muslims in particular.

The vision of an India that gives equal and fair treatment to its minorities is a vision for a secular democratic India.


Socio-economic and human development

The WBHDR states: "… SC, ST and Minorities together account for more than half the population, and these are also the three poorest groups in West Bengal."

Nevertheless the WBHDR fails to make any meaningful observation about the real condition of minorities and Muslims in the state.

The foremost and immediate need is for a detailed research study to be undertaken on the socio-economic and human development status of minorities in West Bengal, and in particular Muslims who form the overwhelming majority of West Bengal's minorities. The expertise of the United Nations agencies should be taken in this task.

Based on such a survey, a special task force must be constituted to prepare a comprehensive socio-economic and educational development plan that can break the poverty, isolation and backwardness of Muslims. Such a plan must seek to integrate the development opportunities for Muslims with those for all communities in the state, and provide rapid equal means for advancement to all sections.



Common Civil Code

Though the Left Front govt has been in power in West Bengal for almost 30 years now, and the state has a large population belonging to minorities and especially Muslims, nevertheless, there has been no attempt to advance the ideal of a uniform civil code through a concrete formulation or proposal. There has been only inaction, though occasional lip-service to the subject. In the absence of a concrete formulation, the forces of communalism are only strengthened, who use the issue of uniform civil code, or purdah, as a weapon to demonise Indian Muslims.

It is vital that the government elected must follow-up is avowed commitment to a uniform civil code in the form of a concrete draft proposal for a uniform civil code in India. The challenge of formulating a common civil code, which is non-communal, but is an expression of the constitutional provisions for equality, secularism and democracy, is a challenge that must be met and fulfilled.


Enfranchisement and Adequate Representation

It is vital for minorities to effectively participate in the electoral and governance process and be adequately represented in panchayats, urban local bodies, state legislatures and parliament.

In this context, the constituency delimitation exercise has only been a means for depriving minorities and especially Muslims of fair representation among elected representatives. When constituencies are defined, this often has the result of breaking up a large location-concentrated Muslim voter population and dispersing them among a number of electoral constituencies. This then makes it further impossible for the problems and aspirations of Muslims to reach the corridors of power and find effective redress.

Just as constituencies are reserved, and rightly so, for Scheduled Castes and Scheduled Tribes, so must there be a reservation of constituencies for Muslims. In several parts of India and West Bengal also, the socio-economic status of Muslims is in fact even lower than that of Scheduled Castes and Scheduled Tribes.

In localities where there is a large concentration of Muslims, and where the constituencies have been come to be reserved for SC/ ST, there needs to be a thorough study undertaken for ensuring that fair representation is not thwarted.


Rural development

In March 2004, the Department for International Development DFID published its Country Plan CP for India. Building upon the Country Plans (CPs) State Assistance Plans (SAPs) prepared in consultation with the State Governments, Civil Society and other development partners reflected state level priorities. DFID's State Assistance Plan for West Bengal for 2004-2007 outlines an "alternative economic vision" for the state with emphasis on ensuring basic minimum needs are met for everyone. State Assistance Plan for West Bengal 2004-2007 observes that every third person in rural Bengal continues to live in poverty and four districts Murshidabad, Birbhum, Bankura and Purulia have poverty rates above 40 percent. There are pockets of high poverty rates in Uttar Dinajpur and West Medinipur.

The state-level figures mask significant intra-state variations. According to the West Bengal Human Development Report (HDR) 2004, the four most deprived districts on various income, gender and human development indicators are Maldah, Purulia, Murshidabad and Birbhum. These districts account for about one-fifth of the state's population (half of it being Muslims who can rightly be called the deprived social groups), and addressing their needs would push the state up the ladder among the 15 major states in the country. In terms of economic groupings, agricultural labourers (constituting about 38 percent of total households) remain the poorest section of the population, and have also experienced the lowest decline in poverty rates in the last decade. The challenge will be to use renewed political, administrative and financial measures to focus on various dimensions of inequality.

The large scale acquisition of agricultural land in rural areas inhabited by Muslims primarily around Kolkata and Howrah for private real estate development is an injustice to the poor peasants. A comprehensive formulation to include the dispossessed in the development processes in the acquired area is needed to check the demographic imbalance around the urban areas.

Employment, livelihood & Reservations

Given the acute under-representation of West Bengal minorities and especially Muslims in all levels of public employment and in institutions of higher and professional education, the time has come for reservations for poor Muslims, in line with reservations for SC, ST and OBC.
Minorities Development Finance Corporation provides loans for self-employment to the minorities and during the years (1997-1998-1999) on an average, annually about 1500 Muslims benefited from this scheme. This was supposedly to compensate for the low absorption of Minorities in Government jobs. The ratio for beneficiaries among Muslims then came to about 1:10,717. Even the figures released for the year 2003-2004 shows that the beneficiary ratio is around one person/unit in about every seven thousand (1:7033). There are 2995 number of beneficiaries out of the total 2.10 crore Minority population and the average amount per head comes to around 4000 Rupees. Alternate opportunities in the small scale and cottage industries should also be made available to people belonging to minorities.
The example of Karnataka needs to be replicated, where reservation in govt jobs and educational institutions followed an exhaustive study on socio-economic status of Muslims by a high-powered committee. This example also proved that it is not necessary to amend the constitution to effect reservations for poor Muslims.

Education

It is estimated that close to 30 lakhs children of school-going age in West Bengal are not enrolled in schools. A sizeable number of such children would belong to the Muslim minority. Only about 3% of Muslim school-going children, and especially those belonging to the most socio-economically vulnerable section, go to madrasahs. It was observed in the State Assistance Plan for West Bengal, 2004-2007 that the recent trends show that the state will not be able to achieve the Millennium Development Goals (MDGs) or the Universal Primary Education by the year 2015. According to UNDP press release the first WBHDR states that "never enrolled children tend to be more concentrated among the lower income groups and the Scheduled Tribe and Minority populations".

The West Bengal Primary Education Act, 1973 must be amended, as recommended by the West Bengal Minorities Commission.

The West Bengal School Service Commission (Amendment) Bill, 2006 passed on 20.02.2006 withdrawing the exemptions provided to the Christian Missionary Schools from the purview of School Service Commission Act 1997 vide Section 15 of School Service Commission Act, 97 for administration of their schools in keeping with their Minority Rights should be amended so that the linguistic and religious minority schools may be allowed to appoint their staff and teachers and run their institutions in conformity with the rights guaranteed to them under Article 30 of the constitution of India.

The Muslim community considers education to be very important for girls and boys. However, given the experience of poor Muslims of a bias in the labour market there has been a tendency for boys to become disinterested in further education after primary education. Hence initiation of appropriate vocational training which enable self-employment would significantly counter-act the disincentive to seeking education. This is an important issue for immediate action.

The current minimum age of marriage of Muslim girls is 14 years. In most cases, Muslim girls are married off by the age of 16. This often results in withdrawal of the girls from schooling. Besides concern for the sound health of mothers and their children, the incidence of desertion of such young married girls is not insignificant. Left alone to fend for themselves and their infants, and lacking in adequate education or marketable skills, these girls must face a harsh existence. Increasing the age of marriage of girls through legislation based on dialogue with community elders and leaders is essential.

Similarly, creating opportunities for Muslim women's employment and self-employment would have an immense transformative effect on the current situation.

The need of the hour is the opening of primary schools in the localities where there are large numbers of Muslims living and working. The Sarva Shiksha Abhiyaan, whose implementation continues to be a travesty in this state, must be thoroughly overhauled and used as a powerful means to reach out basic education to all.

The educational scenario of the Urdu speaking community in West Bengal, particularly in Kolkata and Howrah, is extremely depressing. This is a revealing instance of institutionalised neglect. If this linguistic minority in this great metropolis is to be saved from total disaster it will demand formulation of an action programme in the field of education. Establishing schools of high standard is the need of the hour. Facility for teaching in Urdu at the primary stage, and using Urdu as second language at the higher stage will be quite rational.

Waqf land

The Muslim community in West Bengal is endowed with a sizeable amount of land in different parts of the state. In particular, in urban areas, where the community is languishing in regards to education and housing, it is only logical that this land resource be utilised for advancing the all-round development of this backward and poverty-ridden community. In fact, WAKF land is the only remaining resource available to the community offering some hope of a better future.

However, the situation on the ground is that owing to prolonged institutionalised neglect, WAKF land has been encroached upon, taken possession of by individuals and private promoters / real-estate developers. The conversion of mosques into private dwellings and commercial premises is symbolic of the glaring violation of the rule of law. The state cannot be a mute witness to such alienation and illegal possession of WAKF land.

A detailed survey of all WAKF land in the state must be completed immediately. The results of this survey must also be made available through the internet to all.

When the state has an explicit department for WAKF affairs, it must take the initiative in recovering alienated and illegally occupied WAKF lands. It must also take the active initiative in organising the use of such land for setting up much-needed educational institutions and low-income housing estates.


Through the wholesome use of WAKF land lying inside localities with non-Muslim people, it would be possible to break the isolation and ghettoisation that exists in urban areas. Hindus and Muslims can live together in the same neighbourhood, their children can study together in the same good schools. And together strive for a better India.

Women's question

The issue of Muslim women suffers from purposeful distortion. On the one hand is the continuing illiteracy, poverty and lack livelihood of poor women in a male-dominated society; and on the other hand is the practice of "purdah" which is apparently frowned upon by so-called progressive leadership.

When large-scale opportunities are available to all women for education, employment and all-round empowerment, practices such as "purdah" would altogether cease to be of much significance.


Healthcare

While there is an acute dearth of reliable disaggregated data, existing studies suggest that there is a significant differential between the infant and maternal mortality rates of Muslims and Hindus in urban areas. The principal reason for this is that the overwhelming majority of the Muslim community live in poverty-ridden, mal-nourished, environmentally degraded, overcrowded slums, lacking in adequate water and sanitation, where incidence of water-borne and gastrointestinal diseases is high. The DFID's State Assistance Plan for West Bengal admits that the state is unlikely to meet the targets of net primary education or child malnourishment.

According to the Census of India, less than half of urban households have a drinking water tap within their residential premises, even less have a water closet, and just over a third have closed drainage. This has come to be simply accepted as the inevitable and immutable quality of living for millions of our fellow-citizens. And this is the reality for most Muslims. More than one in five people do not have access to safe drinking water, only about 30 percent of people in rural areas have access to sanitation facilities.


Women bear the responsibility of fetching water for their household needs. Poor women in rural areas, without easy access to water sources spend hours every day collecting water, affecting their productive potential and their health. In urban areas, women and children often need to wait in long lines to get water from municipal standpipes or hand pumps. Women play a central role in water management. Reducing the amount of time women spend collecting water allows for increased opportunities for schooling, taking care of children, employment and self-development.

The environmental conditions in towns and cities are continuing to deteriorate because the middle-class with the assistance of the state is actively participating in the exclusion of large sections of the population from access to basic services. The consequence of such monopolisation of state resources and benefits is the complete disregard of risks of epidemics and endemic diseases. Govt policies are oriented to crisis intervention rather than institutionalising through new approaches, methods and attitudes a system of maintaining infrastructure and implementing progressive policies. Until the poor are able to satisfy their daily needs for food and shelter, their own active participation in demanding that the state provide them equitable access to water, sanitation and other basic services will be severely limited.

7 of the 8 Millennium Development Goals to which the Govt of India is committed are:

Eradicate extreme poverty & hunger:
• Reduce by half the proportion of people living on less than a dollar a day
• Reduce by half the proportion of people who suffer from hunger
Achieve universal primary education:
• Ensure that all boys and girls complete a full course of primary schooling
Promote gender equality and empower women:
• Eliminate gender disparity in primary and secondary education preferaably by 2005, and at all levels by 2015

Reduce child mortality:
• Reduce by two thirds the mortality rate among children under five
Improve maternal health:
• Reduce by three quarters the maternal mortality ratio
Combat HIV / AIDS, malaria and other diseases:
• Halt and begin to reverse the spread of HIV/AIDS
• Halt and begin to reverse the incidence of malaria and other major diseases
Ensure environmental sustainability:
• Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources
• Reduce by half the proportion of people without sustainable access to safe drinking water
• Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020
All of the above are directly and acutely relevant to the minorities in West Bengal and especially the Muslim. Improvement in the quality of life of the Muslims would mean in specific terms the attainment of the above goals.

The next elected govt. of West Bengal must commit itself to the realisation of these Millennium Development Goals in the state, and prepare and present a concrete action plan for this.


Housing

The large majority of the Muslim population of Kolkata and Howrah live in bastis. The Thika Tenancy Act which governs land tenure in bastis is a severe impediment to housing development for the low-income sections. At the same time, illegal construction is rampant in the basti areas.

An appropriate new legislation must be enacted in place of the existing Thika Tenancy Act, with the objective of facilitating large-scale housing construction. The state would be the enabling agency for such a process. The goal must be the granting of legal title to improved new dwellings to the erstwhile basti households. Just as "land to the tiller" was the slogan in villages, "house to the dweller" must become the slogan for a programme of pro-poor urban land reform.

It is incumbent upon the state to ameliorate the plight of the poor, illiterate and the under-privileged in the bastis or slums who are currently sheltered in the upper stories of the illegally constructed buildings that have come up when the state turned a blind eye to them.

Large scale acquisition of thousands of acres of land belonging to minorities particularly Muslims in Kolkata and Howrah suburbs and its allotment to foreign multinational companies will not only affect the demographic profile but also create landlessness, poverty and chronic unemployment among them. The need is therefore to stop any further acquisition at once and prepare a scheme wherein the displaced persons are included in the development processes in the area acquired.


ASSOCIATION OF INDIAN MINORITIES
55 PILKHANA 1ST LANE HOWRAH-711101, WEST BENGAL
PH-033 26657797 FAX-033 25563396
Email: reads at rediffmail.com
http://mail.sarai.net/pipermail/test1/2006-April/007366.html

No equality of employment for West Bengal Muslims
By Mohammad Ashfaque, Calcutta

Article 15 of the Constitution of India prohibits 'discrimination on grounds of religion, race, caste, sex, place of birth or any of them.' Article 16 of the Constitution guarantees 'equality of opportunity in matters of employment.' Article 30 of our Constitution confers 'Right of minorities to establish and administer educational institutions of their choice.'

Though our Constitution has laid down a general rule that there shall be an equality of opportunity for all citizens in matters relating to employment or appointments to any office under the State, these fundamental principles have literally remained mere pious declarations and are being flagrantly violated. Muslim job seekers, who have registered their names in the employment exchanges in West Bengal, have for more than two decades, suffered from continuous discrimination and unfavorable bias in the matter of submission of names to the employers by the employment exchanges. They are denied even the opportunity of being properly considered by the employers for placement against existing vacancies.

During the tenure of the last Congress Government in West Bengal (1972-77), led by the then Chief Minister, Shri Siddhartha Shankar Ray, some positive steps were initiated to solve the unemployment problem of the state and to ensure equality of opportunity to all citizens including members of the Muslim community in matters of recruitment in government jobs. 

Apart from taking steps for adequate representation of all communities in state services Shri Siddhartha Shankar Ray had ensured that at least one Muslim police officer was posted in each and every Police Station in West Bengal. Prior to this the members of Muslim Community were very poorly represented in services under Calcutta and West Bengal Police Forces. The steps taken by Ray, had created confidence among the minorities and inspired them to take a bright and hopeful view of things to come and to expect that things would improve and they would no longer be kept isolated from the national mainstream. 

Immediately after coming to power, by an executive order, the CPI(M) dominated Left Front government decided to process all recruitment through the employment exchanges. The annual reports of the Government of West Bengal - 'Labour in West Bengal' - published annually by the Labour Department of the state government present a dismal picture of the poor performances of the employment exchanges and the State Directorate of Employment, West Bengal. 

During the last ten years (1990 to 1999) the number of registered unemployed on the live registers in West Bengal increased from 48,20,331 at the end of 1990 to 55,55,952 by the end of 1999. During these ten years 47,66,176 new job seekers had registered their names with the Employment Exchanges in the State. Names of 21,09,560 (40 % of the average number of job seekers on the live register) were submitted during this period to the employers for consideration against vacancies. 

During the same period (1990 to 1999) 291,768 Muslims had come forward to register themselves but the names of only 70,945 Muslims (10.58 % of the average number of Muslims on the live register) were submitted to the employers for consideration in connection with appointments.

The average number of job seekers on the live register of employment exchanges in West Bengal, during the last ten years, was 52,72,997. The average number of Muslims on the live registers during this period was 6,70,443 (12.71 % of the total on the live register). Out of this total average of 52,72,997, the average number of submission during this period was 2,10,956 (4 % of the total job seekers of all categories on the live registers) per annum. In the case of Muslims out of the average number of 6,70,443 (12.71 %) Muslim Job Seekers on the live registers the average submission was only 7,095 (1 % of the total names of Muslim Job Seekers on the live registers) per annum. 

Despite the fact that about 12.71 % of the registered job seekers, available on the live register of employment exchanges were Muslims the total 21,09,560 names submitted during these ten years (1990-99) to the employers for consideration against vacancies included the names of only 70,945 Muslims (3.36 % of the total submissions).

During these ten years (1990-99) out of the 93,156 registered unemployed persons placed in employment through the employment exchanges only 4,232 (4.54 %) were Muslims. Out of the total 21,09,560 submissions made by the employment exchanges during the ten year period 93,156 persons (4%) had succeeded in getting placements in Jobs. In the case of Muslims out of the 70,945 names of registered Muslim job seekers, whose names were submitted to the employers during these ten years, 4,232 (6 %) were successful in getting jobs through the employment exchanges.

Success rate in the case of Muslims (4,232 out of 70,945) i.e. 6 % of the total Muslim names submitted for consideration by the employers) was, therefore, higher than the average success rates in all categories (93156 out of 21,09,560 i.e. 4 % of the total submissions ). 

This shows that the Muslim job seekers are not in any way inferior to others. Muslims of West Bengal do not lag behind others in meeting the criteria for being selected for jobs but still they are denied equality in employment opportunity. They are placed in a disadvantageous position simply because of bias and prejudice in matters of submission of names. The concerned authorities of the state government are not doing proper justice with the registered Muslim job seekers in the matter of submission and are submitting very few names of Muslim job seekers for consideration by the employers. This discrimination has been going on for a long time. For the Muslims in West Bengal the Constitutional guarantees of equality in employment opportunity have, therefore, proved to be false promises. This has given rise to serious resentment and frustration among the unemployed Muslims of West Bengal. Their confidence in the Employment Exchanges and the Employment Policy of the State Government has been badly shaken. This is evident from the fact that over the years the number of unemployed Muslims coming forward to register their names in the Employment Exchanges has fallen from 47,908 in 1990 to an average of 27,096 per year during 1991-99. During this period more than 1,60,000 frustrated Muslim job seekers did not renew their registrations or had got their names cancelled from the live register of employment exchanges.

According to the Census reports, population of Muslims in West Bengal, at the time of 1991 census, was 1,60,75,836 (17 % of the total 9,52,22,853 Muslim population of India).


So far as concentration of Muslim population is concerned West Bengal is second only to Uttar Pradesh, which has a Muslim population of 2,41,09,684 (25% of the total Muslim population of India). 1,60,75,836 Muslims in West Bengal constituted 24 % of the total population of the State. Scheduled Castes account for 24 % and Scheduled Tribes for 6 % of the population of the State in 1991. The population of Other Backward Classes in West Bengal is estimated to be about 10 % of the total population of the State. Under the Government orders, 37 % of the jobs in the West Bengal State services are reserved for Scheduled Castes (22 % ), Scheduled Tribes (6%) and Other Backward Classes (9 %). 

Though Muslims are inadequately represented in the State services there is no provision for any reservation for them in West Bengal. Some other States like Kerala have provided statutory reservations for Muslims in jobs and admissions in educational institutions. Muslims account for 23% of the population of Kerala. Provisions for reservation have been made for them by the Government of Kerala under Articles 15 (4) and 16 (4) of the Constitution of India and there has been no legal hurdle to such reservations.

Muslims, Scheduled Castes, Scheduled Tribes and Other Backward Classes account for approx. 64 % of the total population of West Bengal. Others (excluding Muslims, SC, ST, & OBC) account for only 36 % of the total population of the State. This 36 % population has received the benefit of 62.81 % of the submission of names by the employment exchanges for consideration by the employers and 62.43 % of the placements in jobs made through the employment exchanges in West Bengal during 1999. Muslims constituting 24 % of the population of the State and accounting for 13 % of the live register of employment exchanges received the benefit of only 4.18 % of the submissions and 4.95 % of the placements made during 1999 through the Employment Exchanges in West Bengal. 2,49,769 names were submitted to the above employers by the employment exchanges during 1999 which included the names of only 10,458 (4 % Muslims). No wonder the Muslims got only 717 (4.95 %) placements during 1999. 

A pertinent question agitating the minds of the Muslims of West Bengal is whether the fundamental rights and constitutional guarantees embodied in our Constitution are mere illusion.

Apart from denial of equality of opportunities in matters of employment, Muslims of West Bengal are further aggrieved because they find that even the constitutional rights 'to establish and administer educational institutions of their own choice', guaranteed under Article 30 of the Constitution , is denied to them by the state government. The case of Milli Al Amin College is an example of the arbitrariness of the state government. This College has been built in Calcutta as a 'Minority Institution' with donations received from munificent Muslims and assistance from the Al Amin Educational Trust, Bangalore. The state government has not contributed anything. 

The College was built in 1992 but the state government has refused to recognize Milli Al Amin College as a Minority Institution. On the other hand the state government has been trying to impose such conditions which tend to deprive the Muslim community of the substance of their rights guaranteed under Article 30 (1) of the Constitution.

The above factual analysis dispel the myth that the Left Front Government is friendly with the minorities. It does not auger well that while we have 'solemnly resolved to constitute India into a Sovereign, Socialist Secular Democratic Republic and pledged 'to secure to all citizens justice and equality of status and of opportunity' the religious minority in West Bengal is left to feel that it is not only inadequately represented in the services under the State but is also being denied equality of opportunity in employment and education. The members of the Muslim community in West Bengal have well grounded reasons to be aggrieved and to feel that proper justice is not being done with them by the State. The matter should receive serious attention and consideration by all concerned.

http://www.milligazette.com/Archives/01-10-2000/Art16.htm

COVER STORY

Community on the margins

VENKITESH RAMAKRISHNAN

The Rajinder Sachar Committee finds that the Muslim community in India is deprived and neglected, and makes far-reaching recommendations.

MUKHTAR KHAN/AP

HOMELESS MUSLIM WOMEN sleep on the pavement in Srinagar. Incidence of poverty is high amongst the community, especially in urban areas.

ISSUES relating to the social, economic and political status of India's Muslim minority community have been a matter of debate for several decades; quite a few governments have initiated studies on the community and evolved administrative measures on their basis. As early as the 19th century, Monstuart Elphinstone, the legendary British administrator, put it on record that special measures were required to uplift the backward sections of the Muslim community. Studies conducted by the British administration led to the passage of a government Act in 1935 offering Dalit Muslims reservation facilities along with Dalit Hindus. Nearly two and a half decades ago, Prime Minister Indira Gandhi constituted a 10-member high-power panel on Minorities, Scheduled Castes (S.C.s) and Scheduled Tribes (S.T.s) and other weaker sections, headed by Dr. Gopal Singh. In its report submitted on June 14, 1983, the Dr. Gopal Singh Committee maintained that there was a "sense of discrimination prevailing among the minorities" and that it "must be eliminated, root and branch, if we want the minorities to form an effective part of the mainstream".

The examination of the social, economic and educational status of the Muslim community by the seven-member high-level committee headed by Justice Rajinder Sachar, constituted by the Manmohan Singh government, and the publication of its report in November represents, on the face of it, a continuation of the debate on the community. Even so, on account of a variety of factors, the work of the Sachar Committee and its report have greater significance and relevance than earlier initiatives.

To start with, it is the first systematic study of the Muslim community in independent India. Earlier commissions, including the Dr. Gopal Singh Committee, looked into issues relating to the Muslim community along with those relating to other segments of society, such as the S.Cs, S.Ts and other weaker sections. Obviously, the Sachar Committee was expected to have an enhanced focus on the Muslim community and this is reflected in its frame of reference and examination processes.

The processes of the committee were essentially based on three types of issues relating to identity, security and equity, with special emphasis on issues of equity. Within this broad perspective, a wide range of specifics were covered by the committee, such as perceptions about Muslims; the size and distribution of the community's population; indices of the community's income, employment, health, education, poverty, consumption, and standards of living; and the community's access to social and physical infrastructure. The committee also made a meticulous study of the perpetuation of the caste system in the Muslim community.

The committee collated data from across the country and received detailed oral and written presentations from 13 States that have significant Muslim populations. It also collected data from the Indian Air Force and the Navy on the number of Muslims in these services but did not include the same in the report on a specific request from the Defence Ministry .

The marshalling of such substantial data was in marked contrast to the processes of earlier commissions. The report of the Dr. Gopal Singh Committee stated that data were not available in any public office about the benefits accruing to the religious minorities. As such the committee had formulated its observations with data from only 80 districts.

The context in which the Sachar Committee undertook its work is significant. The sustained campaign of the Hindutva-oriented Sangh Parivar and its political arm, the Bharatiya Janata Party (BJP), accusing secular parties of promoting a policy of "Muslim appeasement" and insinuating that the Muslim community was politically and socially "anti-national" provides this. The Hindutva campaign developed steadily from the mid-1980s, when the Sangh Parivar advanced its Ayodhya Ram Mandir agitation, and has reached a stage today where leaders such as Pravin Togadia of the Vishwa Hindu Parishad (VHP) castigate all Muslims as global terrorists. Madrassas run by the community were portrayed as "terrorist manufacturing units" as part of this castigation. The very formation of the Sachar Committee, in March 2005, was characterised by these forces as yet another act of Muslim appeasement.

The committee report has taken note of this context. It points out that Muslims "carry a double burden of being labelled `anti-national' and as being appeased at the same time". The report further states, "While Muslims need to prove on a daily basis that they are not anti-national and terrorists, it is not recognised that the alleged appeasement has not resulted in the desired level of socio-economic development of the community." The single most important result of the committee's detailed exploration is the assertion of the latter fact. On the contrary, the report points out that "the community exhibits deficits and deprivation in practically all dimensions of development". The report adds that "by and large, Muslims rank somewhat above S.Cs/S.Ts but below Hindu OBCs [Other Backward Classes], Other Minorities and Hindu General [mostly upper castes] in almost all indicators considered."

Development Deficit

One of the major contentions of the report is that almost 60 years after Independence the country has failed to ensure participation in governance for its largest minority group. The report begins its study on "Government Employment and Programmes" with the observation that "in a pluralistic society, a reasonable representation of various communities in government sector employment is necessary to enhance participatory governance". However, the data presented and analysed by the report show that the country is far from attaining such a goal. Though Muslims have a share of 13.4 per cent in the country's population, their representation in government jobs is a mere 4.9 per cent.

In the elite civil services, comprised of the Indian Administrative Service (IAS), the Indian Foreign Service (IFS) and the Indian Police Service (IPS), Muslim representation is as low as 3.2 per cent. Members of the community constitute a mere 4.5 per cent of the employees of the Railways and 98.7 per cent of them are positioned at the lower levels. Under-representation is acute in States in which Muslims constitute large minorities. In West Bengal, Uttar Pradesh and Assam, where Muslims form 25.2 per cent, 18.5 per cent and 30.9 per cent of the population respectively, the representation of the community in government jobs is as low as 4.7 per cent, 7.5 per cent and 10.9 per cent respectively.

The report also points towards the fundamental social condition that has created this situation. Muslims across the country have less access than other religious groups to educational facilities, particularly in higher education. Consequently, only 3.4 per cent of the Muslim population has completed graduation where as the corresponding figure for non-OBC, non-S.C./S.T. Hindus is 15.3per cent. Literacy levels are also similarly low. Only 59.1per cent of the community has literacy while the national average is 64.8 per cent. The literacy level for non-S.C./S.T. Hindus is 65.1 per cent.

The report shows that only 80 per cent of urban Muslim boys are enrolled in schools, compared to 90 per cent in S.C./S.T. communities and 95 per cent among others. Just 68 per cent of Muslim girls go to school, compared to 72 per cent of Dalit girls and 80 per cent of girls from other groups. The report also explodes the myth that Muslims prefer to send their children to madrassas. The data collected from different parts of the country affirms that only 3 to 4 per cent of Muslim children go to madrassas. It emphasises that Muslim parents, as a rule, like to send their children to regular schools but are unable to do so on account of lack of access to general educational institutions.

The community, with such large deficits in education and employment, naturally figures high in terms of incidence of poverty. The report's analysis is that incidence of poverty among Muslims has a Head Count Ratio (HCR) of 31 per cent, which is second only to the S.C./S.T. HCR of 35 per cent. Significantly, in urban areas Muslims have a higher HCR of 38.4 per cent as compared to 36.4 per cent for S.C./S.T. The report points out that though comprehensive community-wise figures about land ownership are not available, it is more or less clear that the percentage of landowners among Muslims is much lower than in other socio-religious categories.

In the background to all this, the community's access to social and physical infrastructure is also abysmal. The committee used the figures of the 2001 Census and data from the NSSO (61st Round) to evaluate access to social and physical infrastructure. The evaluation shows that the proportion of Muslim households living in properly constructed houses is lower than that of the total population. The report also points out that electric lights are used less in the Muslim community when compared to the all-India average with "the share of villages with no electricity increasing substantially" as the size of the Muslim population rises. The story is no different in terms of piped potable water. Only 25 per cent of rural households have piped water and less than 10 per cent of Muslim households have access to this facility.

R. SHIVAJI RAO

JUSTICE RAJINDER SACHAR, who headed the committee.

On the positive side, the Sachar Committee notes that in spite of widespread poverty and under-development, the community has an increasingly better sex ratio than other socio-religious categories. Child mortality rates are also low in the community. The national Infant Mortality Rate stood at 73 in 1998-99 while it was only 59 in the Muslim community. The figure was 77 among Hindus and 49 among Christians. Another positive point the committee has recorded is the better housing conditions; Muslims are on a par with other communities in this and toilet facilities are even better. Despite these pluses, however, the overall condition is one of `development deficit'.

The Committee also points out that the problem of `development deficit' is exacerbated by the widespread perception among Muslims that they are discriminated against and excluded. The colossal shortfall in terms of political representation has contributed in a big way to the growth and expansion of this perception. The report points out that of the 543 Lok Sabha members, only 33 are Muslim, and warns that the low participation of Muslims in nearly all political spaces could have an adverse impact on Indian society and polity in the long run. "Given the power of numbers in a democratic polity, based on universal franchise, minorities in India lack effective agency and political importance," the report said. Minorities, it added, "do not have the necessary influence or the opportunity to either change or even influence events which enable their meaningful and active participation in development process."

A specific study of the committee on electoral constituencies has brought out several anomalies that militate against the Muslim community. The study shows that several constituencies reserved for S.Cs have Muslim populations. The study also showed that many constituencies with more than 50 per cent S.C. population are in the unreserved category. Taking this into consideration, the committee has recommended the elimination of the anomalies in electoral delimitation schemes: "A more rational delimitation procedure that does not reserve constituencies with high minority population shares for S.C.s will improve the opportunity for minorities, especially Muslims, to contest and get elected to Parliament and State Assemblies."

On the strength of its comprehensive research and analysis the report also highlights the fact that some sections of Muslim society are more unequal than others. It draws attention to "the presence of descent-based social stratification" on the lines of the Hindu caste system among Indian Muslims and identified three social segments - Ashrafs, Ajlafs and Arzals. The traditional occupation of Arzals is similar to that of S.C.s; most of them work as butchers, washer men, barbers and scavengers. Ajlafs are engaged in occupations similar to that of the Hindu OBCs, and a sizable section of them are also landowners. Ashrafs have suffered no social deprivation as they are converts from the Hindu upper-castes or have "foreign blood".

The report said that Arzals are essentially converts from `untouchable' Hindu communities and that the"change in religion did not bring about any change in their social or economic status". The report also points out that Arzals have been clubbed with `Ajlafs, and that while the three groups require different types of affirmative action, the Arzals require multifarious measures, including reservation. The committee maintains that Arzals are "cumulatively oppressed". As such it would be "most appropriate" to absorb them among the S.Cs or at least in a separate category, Most Backward Classes, carved out of the OBCs. The (Scheduled Caste) Order of 1950 has kept Muslim and Christian converts from among Hindu Dalits out of its purview, denying them reservation.

A crucial recommendation of the Sachar Committee is the constitution of an "Equal Opportunity Commission" to look into the grievances of deprived groups. The report also says that an example of such a policy tool is the British Race Relations Act, 1976, and notes: "Such a measure, while providing a redressal mechanism for different types of discrimination, will give a further reassurance to minorities that any unfair action against them will invite the vigilance of the law." The committee also points out that "mere material change will not bring about the true empowerment of the minorities; they need to acquire and be given the required collective agency." It suggests that a carefully conceived nomination procedure could be worked out to increase the participation of minorities at grassroots and in public bodies.

Reaction to the report has been on on predictable lines. All parties barring the BJP and the Shiv Sena have welcomed it as a step in the right direction. The Congress and the Left parties pointed out that the committee's study had proved the hollowness of the Sangh Parivar's "Muslim appeasement" contention. The BJP asserted that the recommendations would not improve the lot of Muslims as they reflected a pseudo-vision, full of biases and prejudices. Talking to Frontline, Professor T.K. Oommen, well-known sociologist and a member of the Sachar Committee, maintained that the real questions raised by the report need to be addressed and concrete action taken at the earliest. As the report pointed out, "non-implementation of recommendations of several earlier commissions and committees has made the Muslim community wary of any new initiative," he said.

Though the Sachar Committee did not specifically mention it, the summation of the Dr. Gopal Singh Committee must have been considered in this comment. In June 1983, the Dr. Gopal Singh Committee stated that two things were absolutely necessary to root out the sense of discrimination among Muslims: "Wherever the government has to make appointments through nominations, as in the case of governing bodies of banks and other public undertakings, utmost care should be taken to have a fair number of the minorities representatives, especially at the decision-making levels. Similarly, every recruiting agency or services commission must have an adequate number of their representatives, so that the sense of discrimination now prevailing may end." Twenty-three years after the submission of that report there is no record to suggest that these recommendations have been implemented.

What fate awaits the comprehensive report and recommendations of the Sachar Committee? The answer lies squarely with our political class, especially those who commissioned the Sachar panel - Prime Minister Manmohan Singh and his United Progressive Alliance government.

http://www.hinduonnet.com/fline/fl2324/stories/20061215004700400.htm


Union Budget 2008-2009  










Budget Speech



Budget  2008-2009

 

Speech  of

P. Chidambaram

Minister of Finance

 

 

Mr. Speaker, Sir

I rise to present the Budget for 2008-09. This House and the United Progressive Alliance Government have bestowed upon me the honour of presenting all five Budgets on behalf of a Government - a rare honour that I have the privilege to share with only one of my distinguished predecessors, Dr. Manmohan Singh.

 

I. THE ECONOMY: AN OVERVIEW

2. Honourable Members! The India growth story, so far, has been an absorbing and inspiring tale. Beginning January 1, 2005, the economy has recorded a growth rate of over 8 per cent in 12 successive quarters up to December 31, 2007. In the first three years of the UPA Government, the Gross Domestic Product (GDP) increased by 7.5 per cent, 9.4 per cent and 9.6 per cent, resulting in an unprecedented average growth rate of 8.8 per cent. In the current year too, according to the Advance Estimates by the Central Statistical Organisation (CSO), the growth rate will be 8.7 per cent - although I am confident that we will maintain the average of 8.8 per cent. The drivers of growth continue to be "services" and "manufacturing", which are estimated to grow at 10.7 per cent and 9.4 per cent, respectively.

3. Nevertheless, 2007-08 has been the most challenging of the last four years. At the beginning of the year, the outlook for the global economy was benign. Our economy, thanks to our own policies as well as globalisation, was poised to record another year of high growth: in fact, the first half of 2007-08 returned a growth of 9.1 per cent. However, since August 2007, the financial markets in the developed countries have witnessed considerable turbulence that has not yet abated. The consequences for developing countries are also not yet clear.

4. Moreover, agriculture has struck a disappointing note. Despite a fine start in the first half of 2007-08, the growth rate for the whole year in agriculture is estimated at only 2.6 per cent.

5. There are other downside risks too. World prices of crude oil, commodities and food grains have risen sharply in the period April 2007 to January 2008. The position of crude oil is well known to this House. Among commodities, the prices of iron ore, copper, lead, tin, urea etc are elevated. The prices of wheat and rice have increased in the world market by 88 per cent and 15 per cent, respectively. All these trends are inflationary, and there is pressure on domestic prices, especially on the prices of food articles. Consequently, the management of the supply side of food articles will be the most crucial task in the ensuing year.

6. We have also witnessed capital inflows that are far in excess of the current account deficit. This poses a challenge to monetary management. The solution lies in increasing the absorptive capacity of the economy in the medium term. In the short term, it is our responsibility to manage the flows more actively. Government will, in consultation with the RBI, continue to monitor the situation closely and take such temporary measures as may be necessary to moderate the capital flows consistent with the objective of monetary and financial stability.

7. Keeping inflation under check is one of the cornerstones of our policy. Recently, the Prime Minister declared, "I think no Government in our country can be oblivious to the objective of ensuring reasonable price stability without hurting the growth process." There can be no clearer enunciation of policy. However, since the downside risks have increased worldwide, we must be vigilant and prepared to make swift adjustments in our policies to achieve the goal of growth with price stability.

8. Let me first deal with agriculture, briefly for the present, and at some length later. The Ministry of Agriculture has estimated that the total output of food grains in 2007-08 will be 219.32 million tonnes and that will be an all time record. In particular, production of rice is estimated at 94.08 million tonnes; maize at 16.78 million tonnes; soya bean at 9.45 million tonnes; and cotton at 23.38 million bales (of 170 kg each) - and each of these will be an all time record. Government is conscious that while a lot has been done, a lot more needs to be done. Since the last Budget, Government has formulated and announced the National Policy for Farmers. Besides, Government has launched the Rashtriya Krishi Vikas Yojana with an outlay of Rs.25,000 crore and the National Food Security Mission with an outlay of Rs.4,882 crore. Both schemes will be implemented during the Eleventh Five Year Plan period. We are determined to become self-sufficient in food grains. Presently, I shall place before this House a number of new initiatives in the agriculture sector.

 

The Growth Story: Faster and more inclusive

9. To return to the India growth story, I am of the firm belief that we owe our sustained progress to the policy of economic reforms first ushered in by a Congress Government and now carried forward by the UPA Government.

10. If 1984 and 1991 were turning points in the history of India's economy, 2004 was another turning point. Confident that high growth was sustainable, the UPA Government had declared in the National Common Minimum Programme its intention to make growth more inclusive. Sir, I ask this House, respectfully, to judge our record on inclusive growth from the following sample of facts:

• agricultural credit doubled in the first two years of this Government and is poised to reach a level of Rs.240,000 crore by March 2008.

• the National Rural Employment Guarantee Scheme has proved to be a historic measure of empowerment of Scheduled Castes and Scheduled Tribes and, especially, of women.

• the Mid Day Meal Scheme is the largest school lunch programme in the world covering 11.4 crore children.

• the National Rural Health Mission has taken improved health care to rural India by strengthening the primary health centres of which 8,756 have been made 24 x 7.

• the Kasturba Gandhi Balika Vidyalaya Scheme has enrolled 182,000 girls in residential schools, thus helping to bridge the gender gap in education.

 

Bharat Nirman

11. Bharat Nirman has made impressive progress in 2007-08. This ambitious programme is now over 1,000 days old. At the current pace, on each day of the year 290 habitations are provided with drinking water and 17 habitations are connected through an all weather road. On each day of the year 52 villages are provided with telephones and 42 villages are electrified. On each day of the year 4,113 rural houses are completed.

12. Mr. Speaker, just as I sat down to write this speech, I received a slim volume titled "Indira Gandhi - Selected Sayings". Within minutes, I found this gem and I quote, "The more one does, the more one attempts, the more one is capable of doing". What I have narrated so far is indeed proof of more inclusive growth, but if you ask me "can we do better?", my answer would be "we can and we should." Budget 2008-09 is about raising our sights and doing more and doing better.

 

II. THE ELEVENTH FIVE YEAR PLAN:

THE CRUCIAL SECOND YEAR

13. The Eleventh Plan has started on a note of robust growth. Never before did we start a Plan with a first year growth rate of 8.7 per cent. Government regards the second year of the Plan as extremely critical to the success of the Plan. 2008-09 should be a year of consolidation; of securing the ongoing programmes on firm financial foundations; of close monitoring of implementation and enforcing accountability; and of measuring the outcomes in terms of the targets achieved as well as their quality. The Plan documents assumed that the Gross Budgetary Support (GBS) in the second year would be Rs.228,725 crore. In our view, that will not be enough. Hence, I propose to increase the GBS to Rs.243,386 crore, which will represent an increase of Rs.38,286 crore over the allocation in 2007-08.

14. Out of the GBS, the allocation for the Central Plan will be Rs.179,954 crore, marking an increase of 16 per cent over 2007-08.

15. Let me assure the House that all ongoing programmes will receive ample funds.

16. For Bharat Nirman, I propose to provide Rs.31,280 crore [including the North Eastern Region (NER) component] as against Rs.24,603 crore in 2007-08.

 

Education: Sarva Shiksha Abhiyan

17. Education and health are the twin pillars on which rests the edifice of social sector reforms. The total allocation for the education sector (including NER) will be increased by 20 per cent from Rs.28,674 crore in 2007-08 to Rs.34,400 crore in 2008-09.

18. Of this, Sarva Shiksha Abhiyan (SSA) will be provided Rs.13,100 crore; the Mid-day Meal Scheme will be provided Rs.8,000 crore; and secondary education will be provided Rs.4,554 crore.

19. The focus of SSA will shift from access and infrastructure at the primary level to enhancing retention; improving quality of learning; and ensuring access to upper primary classes.

20. A Model School programme, with the aim of establishing 6,000 high quality model schools, will be started in 2008-09. I propose to provide Rs.650 crore for the new scheme.

 

Jawahar Navodaya Vidyalaya

21. Jawahar Navodaya Vidyalayas are quality schools. In order to make such schools more accessible to SC and ST students, Government plans to establish Navodaya Vidyalayas in 20 districts that have a large concentration of Scheduled Castes and Scheduled Tribes. I propose to set apart Rs.130 crore in 2008-09 for this purpose.

 

Kasturba Gandhi Balika Vidyalaya

22. Kasturba Gandhi Balika Vidyalayas were set up to address the issue of equity in the education of girls belonging to SC, ST, OBC and minority communities. So far, 1,754 vidyalayas have been started, and I propose to allocate funds (as part of SSA) to set up an additional 410 vidyalayas in educationally backward blocks. I also propose to provide a sum of Rs.80 crore to set up new or upgrade existing hostels attached to the Balika Vidyalayas.

 

National Means-cum-Merit Scholarship

23. Last year, I had announced the National Means-cum-Merit Scholarship Scheme to enable students to continue their education beyond class VIII and up to class XII. I had provided Rs.750 crore with the promise to add a like amount every year for three more years. The Scheme will be implemented by award of 100,000 scholarships beginning 2008-09. I intend to keep my promise and earmark another sum of Rs.750 crore so that a corpus of Rs.3,000 crore will be built up in four years.

 

Nehru Yuva Kendra

24. 123 districts do not have a Nehru Yuva Kendra. I propose to allocate Rs.10 crore in 2008-09 to set up a Kendra in each of these districts and to cover the recurring expenditure in the first year.

 

Mid-day Meal Scheme

25. The Mid-day Meal Scheme has been extended to upper primary classes in 3,479 educationally backward blocks. The scheme will now be extended to upper primary classes in Government and Government-aided schools in all blocks in the country. This will benefit an additional 2.5 crore children, taking the total number of children covered under the Scheme to 13.9 crore.

 

Institutes of Higher Education

26. Knowledge is power. It is knowledge that will drive success in the 21st century. India has the opportunity to become a knowledge society. Following the Prime Minister's announcement, an IIM at Shillong; three IISERs at Mohali, Pune and Kolkata; and an IIIT at Kanchipuram have started functioning. Government will establish one Central University in each of the hitherto uncovered States. We propose to make a beginning in 2008-09 by establishing 16 Central Universities. Besides, we propose to set up three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada. More institutes of higher education, as promised by the Prime Minister, will be established during the Eleventh Plan period.

27. I also propose to make a grant of Rs.5 crore to the Deccan College Post-Graduate and Research Institute, Pune which is one of the oldest institutions of modern learning in India.

 

Science and Technology

28. We must encourage our children to take to careers in science and research and development. Ministry of Science and Technology will introduce a scheme called Innovation in Science Pursuit for Inspired Research (INSPIRE) that will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years). I propose to provide Rs.85 crore in 2008-09 for this inspired contribution to building a knowledge society.

29. The recommendations of the National Knowledge Commission, submitted from time to time, are under active consideration. Some of them have been incorporated in the Eleventh Plan. Government has accepted an important recommendation to inter-connect all knowledge institutions through an electronic digital broadband network. This will encourage sharing of resources and collaborative research. I propose to provide Rs. 100 crore to the Ministry of Information and Technology for establishing the National Knowledge Network.

 

Health

30. Turning to the health sector, I propose to allocate Rs.16,534 crore for the sector (including NER). This will mark an increase of 15 per cent over the allocation in 2007-08.

 

National Rural Health Mission

31. The National Rural Health Mission (NRHM) is the key instrument of intervention by the Central Government. The goal is to establish a fully functional, community owned, decentralised health delivery system. 462,000 Associated Social Health Activists (ASHAs) and link workers have been trained and are in place. 177,924 Village Health and Sanitation Committees are functional. 323 district hospitals have been taken up for upgradation. Ambitious goals have been set for 2008-09, and I propose to increase the allocation for NRHM to Rs.12,050 crore .

 

HIV/AIDS

32. The National Aids Control Programme will be provided Rs.993 crore. Studies have shown that the prevalence rate of HIV/AIDS has come down from 0.9 per cent to 0.36 per cent, which is a matter of some satisfaction.

 

Polio

33. The drive to eradicate polio continues with a revised strategy and a focus on the high risk districts in Uttar Pradesh and Bihar. I propose to provide Rs.1,042 crore in 2008-09 for this purpose.

 

Rashtriya Swasthya Bima Yojana

34. Two major interventions are planned to be started in 2008-09. The first is the Rashtriya Swasthya Bima Yojana that will provide a health cover of Rs.30,000 for every worker in the unorganised sector falling under the BPL category and his/her family. I am happy to report that most of the States have agreed to join the Yojana and it will be launched in Delhi and in the States of Haryana and Rajasthan on April 1, 2008. I propose to provide Rs.205 crore as the Centre's share of the premia in 2008-09.

 

National Programme for the Elderly

35. The other major intervention will be for the elderly. A National Programme for the Elderly with a Plan outlay of Rs.400 crore will be started in 2008-09. Among other measures, we will establish, during the Eleventh Plan period, two National Institutes of Ageing, eight regional centres, and a department for geriatric medical care in one medical college/tertiary level hospital in each State.

 

Integrated Child Development Services

36. The universalization of the Integrated Child Development Services (ICDS) Scheme is underway. At the end of December 2007, 5,959 ICDS projects and 932,000 Anganwadi and mini-Anganwadi centres were functional. The beneficiary count had increased to 629 lakh children and 132 lakh pregnant and lactating mothers. I propose to enhance the allocation for ICDS from Rs.5,293 crore in 2007-08 to Rs.6,300 crore in 2008-09.

37. I am also happy to announce that the remuneration of Anganwadi workers will be increased from Rs.1,000 per month to Rs.1,500 per month. Likewise, the remuneration of Anganwadi Helpers will be increased from Rs.500 per month to Rs.750 per month. Over 18 lakh Anganwadi workers and helpers will benefit from the increase.

 

Flagship Programmes

38. As Honourable Members are aware, there are eight flagship programmes of the UPA Government. I have dealt with two in the education sector (SSA & MMS) and two in the health sector (NRHM & ICDS). Let me now refer to the allocations that I propose to make for the other four flagship programmes:

• The National Rural Employment Guarantee Scheme (NREGS) will be rolled out to all 596 rural districts in India. Initially, we will provide Rs.16,000 crore. Let there be no apprehension in anyone's mind: as demand rises, more money will be provided to meet the legal guarantee of employment.

• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is the main vehicle for improving urban infrastructure. It has also succeeded in driving reforms in urban governance and urban-related laws. I propose to increase the allocation from Rs.5,482 crore in 2007-08 to Rs.6,866 crore in 2008-09.

• The goal of the Rajiv Gandhi Drinking Water Mission is to supply safe drinking water to uncovered habitations and slipped back habitations as well as to address issues of quality. I propose to enhance the allocation to Rs.7,300 crore in 2008-09 as against Rs.6,500 crore in 2007-08.

The Mission does not yet have a separate component for school children in water-deficient habitations. Our children should have good, clean drinking water. Hence, I propose to allocate funds to the Mission under a separate sub-head in order to install a standalone system to provide potable water to each school in water-deficient habitations. The cost of each system, depending on the technology and design, is estimated to be between Rs.15,000 to Rs.30,000. While a detailed plan for four years will be drawn up, I propose to make an initial allocation of Rs.200 crore in 2008-09.

• The Total Sanitation Campaign is all about changing habits and mindsets, and it is a continuous process. I propose to provide Rs.1,200 crore in 2008-09.

 

Desalination Plant

39. Honourable Members will recall that I had in July 2004 announced support for a desalination plant to be installed near Chennai. A proposal has now been received from the Government of Tamil Nadu to establish a plant under public private partnership. While the proposal will be examined for approval, I propose to signal the Government's support to the project by setting apart Rs.300 crore in 2008-09.

 

North Eastern Region

40. The North Eastern Region (NER) will continue to receive special attention and enhanced allocations. I propose to provide Rs.1,455 crore to the Ministry of Development of North Eastern Region (DONER). Including that amount, the total Budget allocation for NER, spread over different ministries/departments, will increase from Rs.14,365 crore in 2007-08 to Rs.16,447 crore in 2008-09.

41. The North Eastern Region and, especially, Arunachal Pradesh and the border areas face special problems that cannot be tackled in the usual course or through normal schemes. Hence, Government proposes to identify the urgent needs of these areas and address them through a special mechanism. In order to jumpstart the process, I propose to set apart a sum of Rs.500 crore in a fund dedicated for the purpose.

 

SC, ST, OBC and Minorities

42. Scheduled Castes, Scheduled Tribes, socially and educationally backward classes, and minorities will continue to receive special attention.

 

Development and Finance Corporations

43. Development and Finance Corporations have been set up for certain disadvantaged groups. I propose to contribute additional equity to these corporations in the following manner:

Rs. Crore

1

National Minorities Development and Finance Corporation

75.00

Three National Finance and Development Corporations for Weaker Sections comprising

(i) Safai Karamcharis

(ii) Scheduled Castes

(iii) Backward Classes

106.50
3  

National/State Scheduled Tribes Finance and Development Corporations

50.00

National Handicapped Development Corporation 

9.00

 Scholarships

44. In previous Budgets, we had announced a slew of pre- and post-matric scholarship programmes for SC, ST, OBC and minorities. All of them will be continued in 2008-09 with adequate funds as summarised below:

Scheduled Castes               Rs.804 crore

Scheduled Tribes                Rs.195 crore

Other Backward Classes       Rs.164 crore

Minorities (post-matric)        Rs.100 crore

45. I propose to allocate a sum of Rs.75 crore in 2008-09 to the Rajiv Gandhi National Fellowship Programme. As Honourable Members are aware, this programme supports SC and ST students pursuing M.Phil and PhD courses.

 

Scheduled Castes and Scheduled Tribes

46. Following the practice initiated in 2005-06, I have included in the Budget documents a statement on the schemes for the welfare of SCs and STs. I have provided Rs.3,966 crore for schemes benefiting SCs and STs exclusively and Rs.18,983 crore for schemes where at least 20 per cent of the benefits are earmarked for SCs and STs.

 

Minorities

47. The allocation to the Ministry of Minority Affairs will be increased from Rs.500 crore in 2007-08 to Rs.1,000 crore in 2008-09. Government has taken up the report of the Justice Rajindar Sachar Committee for speedy implementation. Apart from the schemes commenced in 2007-08, it is proposed to implement the following schemes/measures in 2008-09:

• a multi-sectoral development plan for each of the 90 minority concentration districts will be drawn up at a cost of Rs.3,780 crore. The allocation in 2008-09 will be Rs.540 crore;

• a pre-matric scholarship scheme with an allocation of Rs.80 crore next year;

• a scheme for modernising Madrassa education for which a provision of Rs.45.45 crore has been made in 2008-09;

• 256 branches of public sector banks have been opened this year until December 2007 in districts with substantial minority population. 288 more will be opened by March 2008 and many more in
2008-09; and

• continuing the exercise started this year, more candidates belonging to the minority communities will be recruited to the Central Para-Military Forces.

48. I also propose to provide Rs.60 crore to enhance the corpus fund of the Maulana Azad Education Foundation.

 

Women and Children

49. I confess that policy makers often tend to forget that one-half of the population is constituted by women and they are entitled to an equal share - and an equal say - in all programmes and schemes. Gender Budgeting has gained wider acceptance and credibility. Four more ministries/departments have set up gender budgeting cells taking the total number to 54. Honourable Members will find in the Budget documents a statement embracing 33 demands for grants contributed by 27 ministries/departments and 5 Union Territories. According to the statement, Rs.11,460 crore has been provided for 100 per cent women-specific schemes and Rs.16,202 crore for schemes where at least 30 per cent is for women-specific programmes.

50. We will score another 'first' this year. A statement on child related schemes is included in the budget documents and Honourable Members will be happy to note that the total expenditure on these schemes is of the order of Rs.33,434 crore.

51. I propose to allocate Rs.7,200 crore in 2008-09 to the Ministry of Women and Child Development. This represents an increase of 24 per cent over the allocation in 2007-08.

 

Self Help Groups

52. The Life Insurance Corporation of India (LIC) runs the Janashree Bima Yojana and offers life and permanent disability cover to people in 44 categories. One of the categories is Self Help Groups, but only 35,000 SHGs have been covered so far. Considering the fact that there are over 30 lakh SHGs credit-linked to banks, I propose to single out this category for special attention. I propose to ask LIC to rapidly scale up the scheme and cover all women SHGs that are credit-linked to banks. Since one-half of the premium is subsidized through the Social Security Fund, I propose to contribute Rs.500 crore to the corpus of the fund with the assurance that annual contributions will be made as the scheme is scaled up. This scheme, together with the Rashtriya Swasthya Bima Yojana, will mark the beginning of a new deal for women by providing them life and health cover.

 

Supplement to GBS

53. Honourable Members will note that the allocations to various sectors and schemes are generous. I hasten to add that more can be done and more will be done subject, however, to one condition: the condition of performance. In the last Budget, I had announced a Plan 'B' and I was able to provide additional Plan funds of Rs.8,365 crore in cash through two supplementaries - and a third one will follow shortly. The nub of the problem lies in implementation - and implementation mostly is in the hands of State Governments. This year too, I intend to mobilise additional resources to the tune of Rs.10,000 crore to be used for Plan capital expenditure. This money - under Plan 'B' - will be available to ministries/departments of the Central Government and to State Governments that achieve the physical and quality targets set under different Plan schemes.

 

III. AGRICULTURE

54. I shall now return to the subject of agriculture.

55. I have already referred to the Rashtriya Krishi Vikas Yojana and the National Food Security Mission.

 

Agricultural Credit

56. Notwithstanding some shortcomings, the growth of agricultural credit has been impressive and for this I have to thank our scheduled commercial banks and Regional Rural Banks. Between them, they account for about 75-79 per cent of agricultural credit disbursed during any year. We will exceed the target set for 2007-08. For 2008-09, I propose to set a target of Rs.280,000 crore.

57. Short-term crop loans will continue to be disbursed at 7 per cent per annum and I am making an initial provision of Rs.1,600 crore for interest subvention in 2008-09.

 

Investment in Agriculture

58. What ails agriculture, among other things, is the fall in investment. However, there seems to be a turnaround. Gross Capital Formation (GCF) in agriculture as a proportion of GDP in the agriculture sector has improved from a low of 10.2 per cent in 2003-04 to 12.5 per cent in 2006-07. This, however, needs to be raised to 16 per cent during the Eleventh Plan to achieve the target growth rate of 4 per cent.

 

Water Resources

59. Government is investing heavily in the Accelerated Irrigation Benefit Programme (AIBP) and the Rainfed Area Development Programme and in the management and augmentation of water resources. Under AIBP, 24 major and medium irrigation projects and 753 minor irrigation schemes will be completed in this financial year, creating additional irrigation potential of 500,000 hectare. The outlay for 2007-08 was Rs.11,000 crore with a grant component of Rs.3,580 crore. These are being increased in 2008-09, and the estimated outlay is Rs.20,000 crore with a grant component of Rs.5,550 crore.

60. The Rainfed Area Development Programme has been finalised and will be implemented in 2008-09 with an allocation of Rs.348 crore. Priority will be given to those areas that have not been the beneficiaries of watershed development schemes.

61. The centrally sponsored scheme on micro irrigation launched in January 2006 has brought an area of 548,000 hectare under drip and sprinkler irrigation within two years. I propose to allocate Rs.500 crore for the scheme in 2008-09 with a target of covering another 400,000 hectare.

62. Agreements have been signed with the World Bank by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka under the project to repair, renovate and restore water bodies. The three agreements are for a total sum of US$738 million that will benefit a command area of 900,000 hectare. I am confident that similar agreements will be signed soon between the World Bank and the Governments of Orissa, West Bengal and some other States.

 

Irrigation and Water Resources Finance Corporation

63. While these ongoing programmes will raise the level of investment in agriculture, I think that we need an ambitious scheme of a much larger proportion. Government is of the view that massive investments are required to be made in irrigation projects. Recently, Government has approved 14 projects that satisfy certain criteria as national projects and three of them alone would require Rs.7,000 crore during the Eleventh Plan period. Having regard to the magnitude of the challenge, I propose to establish the Irrigation and Water Resources Finance Corporation (IWRFC) with an initial capital of Rs.100 crore contributed by the Central Government. State Governments and other financial institutions will be invited to contribute to the equity. It is our intention to mobilise the very large resources that will be required to fund major and medium irrigation projects. I hope to be able to incorporate IWRFC as a company before March 31, 2008.

 

National Horticulture Mission

64. The National Horticulture Mission (NHM) now covers 340 districts in 18 States and two Union Territories. An area of 276,000 hectare has been brought under horticulture crops and an area of 56,000 hectare of old plantations has been rejuvenated. Special thrust is being given to the revival of crops such as coconut, cashew and pepper. NHM will be provided Rs.1,100 crore in 2008-09.

65. 500 soil testing laboratories will be set up in the public and private sectors during the Eleventh Plan period with Government assistance of Rs.30 lakh per laboratory. In addition, I propose to make a one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country before March 2009.

 

Plantation Crops

66. The Special Purpose Tea Fund set up last year for re-plantation and rejuvenation will be provided Rs.40 crore in 2008-09. I propose to provide funds for similar support to other plantation crops such as cardamom (Rs.10.68 crore), rubber (Rs.19.41 crore) and coffee (Rs.18 crore). A crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom will be introduced next year.

67. In order to promote research on matters concerning the plantation sector, I propose to make a one-time grant of Rs.5 crore to the Centre for Development Studies, Tiruvananthapuram. The Tocklai Experimental Station at Jorhat of the Tea Research Association will celebrate its centenary in 2010. It is in the process of upgrading its facilities and expanding its activities to cover other North Eastern States, North Bengal and Darjeeling. I propose to make a special centenary grant of Rs.20 crore to the Tea Research Association.

68. The National Plant Protection Training Institute at Hyderabad will be converted and upgraded into an autonomous National Institute of Plant Health Management with budgetary support of Rs.29.4 crore.

 

Crop Insurance

69. Pending a decision on an alternative crop insurance scheme that is acceptable to the farmers as well as viable to the insurer, the National Agriculture Insurance Scheme (NAIS) will be continued in its present form for Kharif and Rabi 2008-09. I propose to provide Rs.644 crore for the scheme.

70. In addition, the Weather Based Crop Insurance Scheme that is being implemented as a pilot scheme in selected areas of five States will be continued. I intend to provide Rs.50 crore for this purpose in 2008-09.

71. Government will continue to provide fertilisers to farmers at subsidized prices. Government is examining proposals to move to a nutrient based subsidy regime and alternative methods of delivering the subsidy.

 

Cooperative Credit Structure

72. The Prof. Vaidyanathan Committee's report on reviving the short-term cooperative credit structure is under implementation in 17 States. So far, a sum of Rs.1,185 crore has been released by the Central Government to four States. I am happy to report that the Central Government and the State Governments have reached an agreement on the content of the package to implement the Prof. Vaidyanathan Committee's report on reviving the long-term cooperative credit structure. The cost of the package is estimated at Rs.3,074 crore, of which the Central Government's share will be Rs.2,642 crore or 86 per cent of the total burden.

 

Debt Waiver and Debt Relief

73. Sir, while I am confident that the schemes and measures that I have listed above will give a boost to the agriculture sector, the question that still looms large is what we should do about the indebtedness of farmers. Honourable members will recall that Government had appointed a Committee under Dr. R. Radhakrishna to examine all aspects of agricultural indebtedness. The Committee has since submitted its report and it is in the public domain. The Committee had made a number of recommendations but stopped short of recommending waiver of agricultural loans. However, Government is conscious of the dimensions of the problem and is sensitive to the difficulties of the farming community, especially the small and marginal farmers. Having carefully weighed the pros and cons of debt waiver and having taken into account the resource position, I place before this House a scheme of debt waiver and debt relief for farmers:

(i) All agricultural loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 will be covered under the scheme.

(ii) For marginal farmers (i.e., holding upto 1 hectare) and small farmers (1-2 hectare), there will be a complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. In respect of other farmers, there will be a one time settlement (OTS) scheme for all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. Under the OTS, a rebate of 25 per cent will be given against payment of the balance of 75 per cent.

(iii) Agricultural loans were restructured and rescheduled by banks in 2004 and 2006 through special packages. These rescheduled loans, and other loans rescheduled in the normal course as per RBI guidelines, will also be eligible either for a waiver or an OTS on the same pattern.

(iv) The implementation of the debt waiver and debt relief scheme will be completed by June 30, 2008. Upon being granted debt waiver or signing an agreement for debt relief under the OTS, the farmer would be entitled to fresh agricultural loans from the banks in accordance with normal rules.

(v) Government estimates that about three crore small and marginal farmers and about one crore other farmers will benefit from the scheme. The total value of overdue loans being waived is estimated at Rs.50,000 crore and the OTS relief on the overdue loans is estimated at Rs.10,000 crore.

I appeal to Honourable Members - as well as to the people of India - to give their unqualified support to the scheme and help Government implement this momentous decision.

 

IV. INVESTMENT, INFRASTRUCTURE, INDUSTRY AND TRADE

74. Since 2005-06, there has been an unmistakable boom in investment. Two indicators tell the story. The saving rate and the investment rate in 2003-04 were 29.8 per cent and 28.2 per cent, respectively. According to estimates made by the Economic Advisory Council to the Prime Minister, they will be 35.6 per cent and 36.3 per cent, respectively, by the end of 2007-08. The trend is reflected on the foreign investment side too. During the period April-December 2007-08, foreign direct investment amounted to US$12.7 billion and foreign institutional investment to US$18 billion. Our policy is to encourage all sources of investment, domestic and foreign, private and public.

75. In 2008-09, Government will provide Rs.16,436 crore as equity support and Rs.3,003 crore as loans to Central Public Sector Enterprises (CPSEs). 44 CPSEs are listed today. It is the policy of the Government to list more CPSEs in order to unlock their true value and improve corporate governance.

 

Rural Infrastructure Development Fund

76. The Rural Infrastructure Development Fund (RIDF) is the main instrument to channelize bank funds for financing rural infrastructure, and it is quite popular among State Governments. Therefore, I propose to raise the corpus of RIDF-XIV in 2008-09 to Rs.14,000 crore. I also propose to operate a separate window under RIDF-XIV for rural roads with a corpus of Rs.4,000 crore.

 

Manufacturing Sector

77. There has been some moderation in the index of production of the six core infrastructure industries as well as in the overall index of industrial production for the period April-December 2007-08. The decline has been somewhat sharp in the case of consumer goods, especially consumer durables. The silver lining is that the growth in capital goods is still very high at 20.2 per cent, indicating that industry continues to make huge capital investments and has a positive outlook about the future. Manufacturing industries that have grown more slowly than the average include food products, cotton textiles, textile products including apparel, paper and transport equipment. Among the reasons for the moderation are a rise in interest rates and the appreciation of the Rupee. There are limits to monetary policy accommodation, especially when the need is to maintain price stability. However, some steps can be taken on the fiscal side and I shall, presently, place before the House some proposals in order to stimulate industrial growth. Our goal is to take the manufacturing growth rate to a double digit. This will also call for more reforms in the coal and electricity sectors as well as confronting oligopolistic tendencies in the cement and steel sectors.

 

Power

78. The Eleventh Plan target for additional power generation capacity is 78,577 MW which is more than the total capacity added in the previous three Plans. By end March 2008, we will achieve Commercial Operation Date (COD) on about 10,000 MW, marking the best first year in any Plan period. Government will redouble its efforts to ensure that the ambitious target for the Eleventh Plan is achieved.

79. The fourth Ultra Mega Power Project (UMPP) at Tilaiya will be awarded shortly. It is possible to bring five more UMPPs in Chhattisgarh, Karnataka, Maharashtra, Orissa and Tamilnadu to the bidding stage provided the States extend the required support. I urge them to do so.

80. Government has approved the continuation of the Rajiv Gandhi Grameen Vidyutikaran Yojana during the Eleventh Plan period with a capital subsidy of Rs.28,000 crore. I propose to allocate Rs.5,500 crore in 2008-09 for the Yojana (including NER).

81. I propose to provide Rs.800 crore in 2008-09 for the Accelerated Power Development and Reforms Project. However, it is the poor state of transmission and distribution (T&D) that is a drag on the sector. Huge investments are required to be made in T&D, but linked to fundamental reforms. Hence, I propose to create a national fund for transmission and distribution reform. The details of the scheme will be worked out and announced very soon.

 

Roads

82. All phases of the National Highway Development Programme continue to make progress. The completion ratio in the Golden Quadrilateral is 96.48 per cent and in the North South, East West Corridor project is 23.36 per cent. Special attention is being paid to SARDP-NE, a programme devised for the North Eastern region. 180 kms of roads were completed in 2007-08 and the target for 2008-09 is 300 kms. I propose to enhance the allocation for the NHDP from Rs.10,867 crore in 2007-08 to Rs.12,966 crore next year.

 

Oil and Gas

83. The 7th round of bidding under the New Exploration Licensing Policy (NELP) was launched in December 2007 and bids have been invited for 57 exploration blocks. It is estimated that the round will attract investment of the order of US$3.5 billion to US$8 billion for exploration and discovery.

 

Coal

84. 53 coal blocks with reserves of 13,842 million tonnes have been allotted during April-January 2007-08 to Government and private sector companies. A new Coal Distribution Policy was notified in October 2007. A coal regulator will be appointed.

 

Information Technology

85. Government's forward looking policy is driving the growth of Information Technology and Information Technology Enabled Services. I propose to enhance the allocation to the Department of Information Technology from Rs.1,500 crore in 2007-08 to Rs.1,680 crore in 2008-09. A scheme for establishing 100,000 broadband internet-enabled Common Service Centres in rural areas and a scheme for establishing State Wide Area Networks (SWAN) with Central assistance are under implementation. A new scheme for State Data Centres has also been approved. I propose to provide Rs.75 crore for the common service centres, Rs.450 crore for SWAN and Rs.275 crore for the State Data Centres.

 

Textiles

86. The two principal schemes of the Ministry of Textiles - the Scheme for Integrated Textile Parks (SITP) and the Technology Upgradation Fund (TUF) - will be continued in the Eleventh Plan period. All 30 integrated textile parks have been approved and 20 units in four parks have commenced production. I propose to maintain the provision for SITP at Rs.450 crore in 2008-09. The provision for TUF will be increased from Rs.911 crore in the current year to Rs.1,090 crore in 2008-09.

87. The cluster approach to the development of the handloom sector has made rapid progress. 250 clusters are being developed. 443 yarn banks have been established. By March 2008, over 17 lakh families of weavers will be covered under the health insurance scheme. I propose to increase the allocation to Rs.340 crore in 2008-09.

88. In order to scale up both infrastructure and production, it is proposed to take up six centres for development as mega-clusters. Varanasi and Sibsagar will be taken up for handlooms, Bhiwandi and Erode for powerlooms, and Narsapur and Moradabad for handicrafts. Each mega-cluster will require about Rs.70 crore. I propose to start the process with an initial provision of Rs.100 crore in 2008-09.

 

Micro, Small and Medium Enterprises

89. Micro, small and medium enterprises will continue to receive support from the Government. I wish to remove certain wrong perceptions about the sector. In the four years ending 2006-07, for which figures are available, there has been a secular rise in the number of registered units, the number of unregistered units, production, employment and exports. In order to give a fillip to the sector, I propose to create a risk capital fund in the Small Industries and Development Bank of India (SIDBI). As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs.2,479 crore. SIDBI will reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs.5 lakh.

 

Foreign Trade

90. Merchandise exports have come under some pressure due to the appreciation of the Rupee and may fall just short of the target of US$ 160 billion, although the growth rate was strong at 21.8 per cent during April-December 2007-08. Relief was given to exporters in three tranches amounting to over Rs.8,000 crore. I may note that the interest cost of sterilization through market stabilization bonds (MSS), estimated at Rs.8,351 crore for the whole year is, in a sense, subsidy to the export sector. Government is sensitive to the needs of the export sector and will continue to respond sympathetically as the situation demands.

 

V. FINANCIAL SECTOR

91. Government's policy of a careful and calibrated opening of the financial sector has proved successful. We shall continue to take measured steps.

92. The final report of the Committee on Financial Inclusion has been received. To begin with, I propose to accept two recommendations:

• to advise commercial banks, including RRBs, to add at least 250 rural household accounts every year at each of their rural and semi-urban branches; and

• to allow individuals such as retired bank officers, ex-servicemen etc to be appointed as business facilitator or business correspondent or credit counsellor.

93. Banks will be encouraged to embrace the concept of Total Financial Inclusion. Government will request all scheduled commercial banks to follow the example set by some public sector banks and meet the entire credit requirements of SHG members, namely, (a) income generation activities, (b) social needs like housing, education, marriage etc and (c) debt swapping.

 

NABARD, SIDBI and NHB

94. Financial inclusion can be taken forward by expanding the reach of NABARD, SIDBI and NHB. Hence, in order to increase the resource base of these three banks, I propose to tap into the resources of scheduled commercial banks to the extent that they fall short of their obligation to lend to the priority sector. Accordingly, it is proposed to create the following funds:

(i) a fund of Rs.5,000 crore in NABARD to enhance its refinance operations to short term cooperative credit institutions;

(ii) two funds of Rs.2,000 crore each in SIDBI - one for risk capital financing and the other for enhancing refinance capability to the MSME sector; and

(iii) a fund of Rs.1,200 crore in NHB to enhance its refinance operations in the rural housing sector.

Each of these funds will be governed by the general guidelines that are now applicable to RIDF with some modifications.

95. Last year, I enhanced the limit of the loan that could be extended under the Differential Rate of Interest (DRI) scheme to the weaker sections of the community engaged in gainful occupations. However, I did not enhance the eligibility criteria which still stand at levels fixed in 1986. This needs to be corrected. Hence, I propose to fix the borrower's eligibility criteria as annual family income of Rs.18,000 in rural areas and Rs.24,000 in urban areas.

 

Capital Markets

96. In my Budget Speech of 2006, I had informed the House that, on the basis of the R.H. Patil Committee Report, we shall take steps to create an exchange-traded market for corporate bonds. Both Bombay Stock Exchange and National Stock Exchange have created platforms for trading in corporate bonds.

97. I intend to move forward by taking some more measures to expand the market for corporate bonds. Hence, I propose to:

• take measures to develop the bond, currency and derivatives markets that will include launching exchange-traded currency and interest rate futures and developing a transparent credit derivatives market with appropriate safeguards;

• enhance the tradability of domestic convertible bonds by putting in place a mechanism that will enable investors to separate the embedded equity option from the convertible bond and trade it separately; and

• encourage the development of a market-based system for classifying financial instruments based on their complexity and implicit risks.

98. The fear of the Permanent Account Number (PAN) has virtually disappeared. PAN is now the sole identification number for all participants in the securities market. I propose to extend the requirement of PAN to all transactions in the financial market subject, however, to suitable threshold exemption limits.

99. Our stock exchanges provide national electronic trading platforms for securities transactions. Yet, we do not have a seamless national market for securities because of differences among States on the scope and applicability of rates of stamp duty. Hence, I propose to request the Empowered Committee of State Finance Ministers to work with the Central Government to create a truly pan Indian market for securities that will expand the market base and enhance the revenues of the State Governments.

 

VI. OTHER PROPOSALS

100. India is poised to reap a 'demographic dividend' because the size of its working age population will increase from about 77.5 crore in 2008 to a likely peak of 95 crore in 2026. The 'dividend' can prove illusory if the workforce does not acquire the skills to support a knowledge and technology driven economy.

 

Skill Development Mission

101. Today, skill development programmes are diffused and administered by a number of ministries/departments. I have no intention of interfering with these sector-specific programmes. However, there is a compelling need to launch a world-class skill development programme, in mission mode, that will address the challenge of imparting the skills required by a growing economy. Both the structure and the leadership of the mission must be such that the programme can be scaled up quickly to cover the whole country. Hence, I propose to establish a non-profit corporation and entrust the mission to that corporation. It is my intention to garner about Rs.15,000 crore as capital from Governments, the public and private sector, and bilateral and multilateral sources. I shall begin by putting Rs.1,000 crore as Government's equity in the proposed non-profit corporation.

 

Industrial Training Institutes

102. The upgradation of ITIs is proceeding apace. Under the World Bank assisted scheme, 238 ITIs are undergoing upgradation. Under the PPP scheme, 309 ITIs in 29 States have been identified with corresponding industry partners and agreements have been signed in 244 cases. In anticipation of upgrading 300 more ITIs in 2008-09, I have set apart Rs.750 crore.

 

Sainik Schools

103. I am concerned by the rate of attrition in the defence forces, especially at the officer level. Sainik Schools have played a unique role as recruiting and training ground of future leaders of the defence forces. I propose to make an allocation of Rs.44 crore at the rate of Rs.2 crore each to the 22 Sainik Schools for immediate improvement of infrastructure including classrooms, laboratories, libraries and facilities for physical education.

 

Public Distribution System

104. A sum of Rs.32,667 crore is being provided next year for food subsidy under the Public Distribution System (PDS) and other welfare programmes. Strengthening the PDS would mean adequate supplies, reasonable subsidies and efficient delivery of the subsidized food. An idea that has been growing is to deliver subsidies to the target group through smart cards. Finally, I have found two willing partners - the State of Haryana and the Union Territory of Chandigarh. They will introduce, on a pilot basis, a smart card based delivery system to deliver food grains under the PDS in Haryana and Chandigarh, respectively. I thank the Chief Minister of Haryana and the Administrator of Chandigarh and promise them full support and cooperation in making a success of the pilot scheme.

 

Unorganised Sector Workers

105. The Unorganised Sector Workers' Social Security Bill, 2007 is before Parliament. In anticipation of the Bill being made into law, Government has introduced three schemes that are designed to provide social security to workers in the unorganised sector in a phased manner. These are:

• the Aam Admi Bima Yojana that will provide insurance cover to poor households. I am happy to announce that, in the first year of the Yojana, LIC will cover one crore landless households by September 30, 2008. I have already placed Rs.1,500 crore with LIC. In order to cover another one crore poor households in the second year, I propose to place an additional sum of Rs.1,000 crore with LIC in 2008-09;

• the Rashtriya Swasthya Bima Yojana that will be implemented with effect from April 1, 2008; and

• the Indira Gandhi National Old Age Pension Scheme that was enlarged with effect from November 19, 2007 to include all persons over 65 years falling under the BPL category. Consequently, the coverage has expanded from 87 lakh to 157 lakh beneficiaries. I propose to allocate Rs.3,443 crore in 2008-09 as against Rs.2,392 crore in 2007-08.

 

Housing for the Poor

106. Housing for the poor is one of the six elements of Bharat Nirman and is implemented through the Indira Awas Yojana (IAY). Against a target of 60 lakh houses, 41.13 lakh houses have been constructed up to December 2007 and the cumulative number will be 51.77 lakh houses by end March 2008. Reflecting the higher cost of construction, I propose to enhance the subsidy per unit in respect of new houses sanctioned after April 1, 2008 from Rs.25,000 to Rs.35,000 in plain areas and from Rs.27,500 to Rs.38,500 in hill/difficult areas. The subsidy for upgradation of houses will be increased from Rs.12,500 per unit to Rs.15,000. A beneficiary will still need own funds to complete the house. Public sector banks will be advised to include IAY houses under the differential rate of interest (DRI) scheme and lend up to Rs.20,000 per unit at an interest rate of 4 per cent.

 

Defence

107. I propose to increase the allocation for Defence by 10 per cent from Rs.96,000 crore to Rs.105,600 crore. I have assured the Raksha Mantri that any further amount needed for the Defence Forces, especially for capital expenditure, will be provided.

 

Backward Regions Grant Fund

108. The Backward Regions Grant Fund was given Rs.5,800 crore in the current year. Having regard to the pace of expenditure, I propose to keep the allocation for the next year at the same level. I may add that nearly 45 per cent of the amount is likely to be allocated to the States of Bihar, Orissa and Uttar Pradesh.

 

Climate Change

109. In the Budget Speech last year I had announced the decision of the Government to appoint an expert committee to study the impact of climate change on India and identify the measures that we may have to take in the future. Work is in progress. Even while adhering to the principle of "common but differentiated responsibility" we can - and we must - do a number of things in our self-interest. We can promote clean technology products; we can review fuel emission and efficiency regulations; we can replace wood by solar as the fuel of common use; we can encourage the use of gas which is the most benign hydrocarbon; we can set up a trading platform for carbon emissions; we can build sustainable greenfield cities; and we can do more. In order to explore and implement these and other ideas, Government proposes to establish a permanent institutional mechanism that will play a development and coordination role. Details of the institutional mechanism will be announced shortly.

 

Sixth Central Pay Commission

110. I have been informed that the Sixth Central Pay Commission will submit its report by March 31, 2008. I am confident that the report will meet the legitimate expectations of Government employees.

 

Commonwealth Games

111. The Commonwealth Games are only 947 days away. As promised, we shall provide Rs.624 crore in 2008-09. I would urge the authorities concerned to adhere to the strict timelines and the quality standards.

 

Institutions of Excellence

112. For the fourth year in succession, I propose to make a special grant of Rs.100 crore each to three institutions of excellence. The awards for 2008-09 go to: (i) Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra; (ii) University of Mysore, Mysore; and (iii) Delhi University, Delhi.

 

India's Soft Power

113. India's music, literature, dance, art, cuisine and especially films are attracting huge interest around the world. This is the 'soft power' of India, and it must be projected in a sophisticated and subtle manner. I propose to provide Rs.75 crore to the Indian Council of Cultural Relations to design and implement a programme to achieve this objective.

 

Tiger Protection

114. The number 1,411 should ring the alarm bells. That is the number of tigers in India. The tiger is under grave threat. In order to redouble our effort to protect the tiger, I propose to make a one time grant of Rs.50 crore to the National Tiger Conservation Authority. The bulk of the grant will be used to raise, arm and deploy a special Tiger Protection Force.

 

Monitoring and Evaluation

115. Robust economic growth has thrown up many new challenges, among them the need to put in place effective monitoring, evaluation and accounting systems for the large sums of money that are disbursed by the Central Government to State Governments, district level agencies and other implementing agencies. I think we do not pay enough attention to outcomes as we do to outlays; or to physical targets as we do to financial targets; or to quality as we do to quantity. Government therefore proposes to put in place a Central Plan Schemes Monitoring System (CPSMS) that will be implemented as a Plan scheme of the Planning Commission. A comprehensive Decision Support System and Management Information System will also be established. The intended outcome is to generate and monitor scheme-wise and State-wise releases for about 1,000 Central Plan and centrally sponsored schemes in 2008-09.

116. Government also intends to strengthen evaluation. Some ministries have started concurrent evaluation. This needs to be supplemented by independent evaluations conducted by research institutions. The Planning Commission will authorise such evaluations of the major schemes and complete the task by the time of the mid-term review of the Eleventh Plan.

 

VII. BUDGET ESTIMATES

117. I shall now turn to the Budget Estimates for 2008-09.

118. The estimate of Plan Expenditure is placed at Rs.243,386 crore. As a proportion of total expenditure, it will be 32.4 per cent.

119. Non-Plan Expenditure is estimated at Rs.507,498 crore.

 

Revenue Deficit and Fiscal Deficit

120. It is widely acknowledged that the fiscal position of the country has improved tremendously. I am happy to report that the revenue deficit for the current year will be 1.4 per cent (against a BE of 1.5 per cent) and the fiscal deficit will be 3.1 per cent (against a BE of 3.3 per cent).

121. Further progress will be made in 2008-09. The revenue receipts of the Central Government for 2008-09 are projected at Rs.602,935 crore and the revenue expenditure at Rs.658,119 crore. Consequently, the revenue deficit is estimated at Rs.55,184 crore, which amounts to 1.0 per cent of GDP. The fiscal deficit is estimated at Rs.133,287 crore which is 2.5 per cent of GDP. Honourable Members will note that not only will I achieve the target for fiscal deficit under the FRBM Act, I have also left for myself some headroom. In the case of revenue deficit, I will meet the target of annual reduction of 0.5 per cent. However, because of the conscious shift in expenditure in favour of health, education and the social sector, we may need one more year to eliminate the revenue deficit. In my view, this is an entirely acceptable deferment.

 

Revisiting the Roadmap for Fiscal Adjustment

122. I acknowledge that significant liabilities of the Government on account of oil, food and fertilizer bonds are currently below the line. This accounting arrangement is consistent with past practice. Nevertheless, our fiscal and revenue deficits are understated to that extent. There is a need to bring these liabilities into our fiscal accounting. As a first step, I have shown these liabilities clearly in 'Budget at a Glance'. After the obligations on account of the Sixth Central Pay Commission become clear, I intend to request the Thirteenth Finance Commission to revisit the roadmap for fiscal adjustment and suggest a suitably revised roadmap.

 

 

PART - B

VIII. TAX PROPOSALS

123. Mr. Speaker, I shall now present my tax proposals.

124. Many people are surprised by the buoyancy in tax revenues, especially in direct taxes. I am not. I have always maintained that moderate and stable tax rates coupled with a tax administration that shows no fear or favour will bring high revenues to the exchequer.

125. The UPA Government inherited a tax to GDP ratio of 9.2 per cent in 2003-04. At the end of 2007-08, that ratio would have risen to 12.5 per cent.

126. High growth rates have helped. Changes in attitude have also helped. Above all, information systems and technology have helped most. And, if I may add in a lighter vein, having a lucky Finance Minister may have also helped! We are on course to achieve the Budget Estimates of indirect taxes and exceed the Budget Estimates of direct taxes. I take this opportunity to thank all tax payers and I promise them an efficient and tax payer-friendly administration.

 

Indirect Taxes

127. I shall begin with customs duties.

128. The peak rate for non-agricultural products was 20 per cent in January 2004 and now stands at 10 per cent. The collection rate is the closest approximation to the level of protection to domestic industry, and that rate for all imports stood at 10 per cent in 2006-07. Since April 2007, the Rupee has appreciated against the Dollar by 9.8 per cent. Consequently, the case for reducing the peak rate at this stage is very weak. Hence, I propose to make no change in the peak rate of customs duty.

129. However, I find that in some cases it is necessary to reduce the customs duty in order to provide a fillip to that industry or to promote value addition or to remove inversion or any other anomaly. I shall refer to a few such cases.

130. I propose to reduce the customs duty on Project Imports from 7.5 per cent to 5 per cent. However, I also propose to impose the 4 per cent special CVD on a few specified projects in the power sector.

131. In order to improve the supply of raw material, I propose to reduce the duty on steel melting scrap and aluminium scrap from 5 per cent to nil.

132. On certain specified life saving drugs and on the bulk drugs used for the manufacture of such drugs, I propose to reduce the customs duty from 10 per cent to 5 per cent as well as to totally exempt them from excise duty or countervailing duty.

133. In order to reduce the cost of manufacture of cattle and poultry feeds, I propose to reduce the duty on vitamin premixes and mineral mixtures from 30 per cent to 20 per cent and on phosphoric acid from 7.5 per cent to 5 per cent.

134. The duty on bactofuges will be reduced from 7.5 per cent to nil. This will increase the shelf life of milk and benefit the dairy industry.

135. I propose to fully exempt from duty specified parts of set top boxes and specified raw materials for use in the IT/electronic hardware industry.

136. To establish parity between devices used in the information/ communication sector and the entertainment sector, I propose to reduce the duty on convergence products from 10 per cent to 5 per cent.

137. To provide a fillip to the manufacture of sports goods, I propose to reduce the duty on specified machinery from 7.5 per cent to 5 per cent. I also propose to exempt from duty specified raw materials for sports goods.

138. The gem and jewellery industry has responded well to the duty reductions made last year. In order to encourage value addition and exports, I propose to exempt from duty rough cubic zirconia and to reduce the duty on polished cubic zirconia from 10 per cent to 5 per cent. Similarly, the duty on rough coral will be reduced from 10 per cent to 5 per cent.

139. To facilitate training of helicopter pilots, I propose to remove the duty on helicopter simulators.

140. In order to support domestic fertiliser production, I propose to reduce the customs duty on crude and unrefined sulphur from 5 per cent to 2 per cent.

141. Thanks to a complex regime of export benefits and duty exemptions, naphtha is exported from refineries and naphtha is imported by manufacturers of polymers, leading to price distortions and revenue losses. I propose to correct the situation by withdrawing the duty exemption on naphtha for use in the manufacture of polymers and subject it to the normal rate of 5 per cent. However, naphtha imported for the production of fertilisers will continue to be exempt from import duty.

142. Finally, in order to conserve chrome ore and make it available for value added manufacture in India, I propose to increase the export duty from Rs.2,000 per metric tonne to Rs.3,000 per metric tonne.

143. I shall now deal with excise duties.

144. The manufacturing sector is the backbone of any economy. It is consumption that drives production and it is production that drives investment. Having carefully studied current trends of production and consumption, I believe there is a need to give a stimulus to the manufacturing sector. Hence, I propose to reduce the general CENVAT rate on all goods from 16 per cent to 14 per cent.

145. I have looked at specific sectors where growth is flagging. These sectors are important because they are growth and employment drivers. Some of them also have large externalities. Therefore, I propose to:

• reduce the excise duty on all goods produced in the pharmaceutical sector from 16 per cent to 8 per cent;

• reduce the excise duty on buses and their chassis from 16 per cent to 12 per cent;

• reduce the excise duty on small cars from 16 per cent to 12 per cent and on hybrid cars from 24 per cent to the general revised rate of 14 per cent;

• reduce the excise duty on two wheelers and three wheelers from 16 per cent to 12 per cent; and

• reduce the excise duty on paper, paper board and articles made therefrom manufactured out of non-conventional raw materials by units not having an attached bamboo/wood pulp making plant from 12 per cent to 8 per cent with a further reduction on clearances up to 3,500 MT from 8 per cent to nil. Furthermore, excise duty on certain varieties of writing, printing and packing paper will be reduced from 12 per cent to 8 per cent.

146. There are a number of products which are goods of mass consumption. There is also the need to have tax parity on similar goods. Taking into account requests from a number of industries, I propose to reduce the excise duty from 16 per cent to nil on a few items including composting machines, wireless data cards, packaged coconut water, tea and coffee mixes, and puffed rice.

147. Further, I propose to reduce the excise duty from 16 per cent to 8 per cent on a few items including water purification devices, veneers and flush doors, sterile dressing pads, specified packaging material, and breakfast cereals.

148. I propose to totally exempt from excise duty the anti AIDS drug, Atazanavir, as well as bulk drugs for its manufacture.

149. To further encourage cold chain facilities, I propose to exempt from excise duty, on end-use basis, refrigeration equipment (consisting of compressor, condenser units, evaporator etc) above 2 TR (tonne refrigeration) utilising power of 50 KW and above.

150. I propose to bring parity in the excise duty rates on bulk cement and packaged cement. Accordingly, bulk cement will now attract excise duty of Rs.400 per Metric Tonne or 14 per cent ad valorem, whichever is higher. Cement clinkers will be liable to excise duty of Rs.450 per Metric Tonne.

151. Similarly, I propose to increase the excise duty on packaged software from 8 per cent to 12 per cent to bring it on par with customised software which will attract a service tax of 12 per cent.

152. Non-filter cigarettes are more toxic than filter cigarettes, yet they enjoy a favourable tax regime, which is iniquitous. I propose to tax both filter and non-filter cigarettes on par by applying - as Honourable Members may have guessed - the higher rates.

153. In order to remove a source of misinformation, I propose to abolish the ad valorem part of the excise duty on unbranded petrol and unbranded diesel and replace the same by an equivalent specific duty of Rs.1.35 per litre. Henceforth, there will be only a specific duty of Rs.14.35 per litre on unbranded petrol and Rs.4.60 per litre on unbranded diesel. There will be no impact on retail prices.

154. An excise duty of 1 per cent called NCCD is now imposed on polyester filament yarn, which is the only yarn suffering this excise duty. I propose to remove that duty and shift the levy to cellular mobile phones.

155. Finally, I turn to my proposals on service tax.

156. 55 per cent of the GDP is contributed by the services sector, which is a growing sector that must contribute its legitimate share to the exchequer. I propose to bring under the service tax net four services. They are:-

(i) asset management service provided under ULIP, to bring it on par with asset management service provided under mutual funds;

(ii) services provided by stock/commodity exchanges and clearing houses;

(iii) right to use goods, in cases where VAT is not payable; and

(iv) customised software, to bring it on par with packaged software and other IT services

157. I also propose to remove unwarranted doubts raised in respect of certain services and clarify that they are liable to service tax. These include money changers, persons running games of chance, and tour operators using contract carriage vehicles.

158. There are some miscellaneous changes but I do not wish to burden the House with the same.

159. Finally, I am happy to announce that the threshold limit of exemption for small service providers will be increased from Rs.8 lakhs per year to Rs.10 lakh per year. As a result, about 65,000 small service providers will go out of the tax net.

 

Direct Taxes

160. I shall now deal with direct taxes.

161. I recall the Budget Speech of 1997. I believe that boldness pays. I also believe that trust will beget trust, moderation will beget revenues and fairness will beget compliance. Income tax payers have made out a persuasive case for some relief. Accordingly, I propose to make some changes in the slabs for personal income tax. I propose to increase the threshold limit of exemption:

• in the case of all assesses, from Rs.110,000 to Rs.150,000, thus giving every assessee a relief at a minimum of Rs.4,000. Consequently, the four slabs and rates will be as follows:

Up to Rs.150,000 NIL

Rs.150,001 to Rs.300,000 10 per cent

Rs.300,001 to Rs.500,000 20 per cent

Rs.500,001 and above 30 per cent

• in the case of a woman assessee, from Rs.145,000 to Rs.180,000;

• in the case of a senior citizen, from Rs.195,000 to Rs.225,000.

162. I do not propose to make any change in the corporate income tax rates.

163. No change is proposed in the rate of surcharge.

164. I propose to add the Senior Citizens Savings Scheme 2004 and the Post Office Time Deposit Account to the basket of saving instruments under Section 80C of the Income Tax Act.

165. I propose to allow an additional deduction of Rs.15,000 under Section 80D to an individual who pays medical insurance premium for his/her parent or parents.

166. The Reverse Mortgage Scheme was notified by the National Housing Bank in the current financial year. In order to clarify the tax issues arising out of the scheme, I propose to amend the Income Tax Act to provide that:

(i) reverse mortgage would not amount to "transfer"; and

(ii) the stream of revenue received by the senior citizen would not be "income";

167. Agricultural income is exempt from income tax. However, courts have ruled that growing saplings or seedlings on land is agriculture but growing them in pots is not agriculture. This does not seem fair. Hence, I propose to exempt from tax income arising from saplings or seedlings grown in a nursery.

168. Companies engaged in certain businesses are allowed a weighted deduction of 150 per cent on any expenditure on in-house scientific research. I propose to add the business of production of seeds and manufacture of agricultural implements to this list.

169. In order to promote outsourcing of research, I propose to allow a weighted deduction of 125 per cent on any payment made to companies engaged in research and development.

170. I propose to extend the benefit of amortisation of certain preliminary expenses under Section 35D to assesses in the services sector.

171. To supplement measures that I announced earlier in respect of the corporate debt market, I propose to exempt from TDS corporate debt instruments issued in demat form and listed on recognised stock exchanges.

172. I propose to make some changes in the provisions of law pertaining to Fringe Benefit Tax (FBT) that will give some relief to corporates and firms. Crèche facilities, sponsorship of an employee-sportsperson, organising sports events for employees, and guest houses will be excluded from the purview of FBT.

173. At present, a domestic company is liable to pay Dividend Distribution Tax (DDT). As a result, the distributed dividend is sometimes taxed twice in the hands of a subsidiary company and its parent company, causing hardship. In order to remove the hardship, I propose to allow a parent company to set off the dividend received from its subsidiary company against dividend distributed by the parent company, provided that the dividend received has suffered DDT and the parent company is not a subsidiary of another company.

174. I propose to insert a new sub-section (11C) in Section 80-IB to grant a five year tax holiday to encourage hospitals to be set up anywhere in India, except certain specified urban agglomerations, and especially in tier-2 and tier-3 towns in order to serve the rural hinterland. This window will be open for the period April 1, 2008 to March 31, 2013, during which the hospital must commence operations.

175. Having regard to the significant rise in tourist arrivals, especially for cultural tourism, I propose to grant a five year holiday from income tax to two, three or four star hotels that are established in specified districts which have UNESCO-declared 'World Heritage Sites'. The hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013.

176. I am happy to announce that the Coir Board will be included in Section 10(29A) and exempt from income tax.

177. Dividends that are distributed attract a tax of 15 per cent. Short term capital gains attract a tax of 10 per cent under Section 111A. There is merit in equating the rates and hence I propose to increase the rate of tax on short term capital gains under Section 111A and Section 115AD to 15 per cent. This will also encourage investors to stay invested for a longer term.

178. At present, Securities Transaction Tax (STT) paid is allowed as a rebate against tax liability. Further, STT on options is levied on the aggregate of the strike price and the option premium and is borne by the seller. I propose to make some changes. Henceforth, STT paid will be treated like any other deductible expenditure against business income. Further, the levy of STT, in the case of options, will be only on the option premium where the option is not exercised, and the liability will be on the seller. In a case where the option is exercised, the levy will be on the settlement price and the liability will be on the buyer. There will be no change in the present rates.

179. Transactions in commodity futures have come of age. Hence, I propose to introduce the Commodities Transaction Tax (CTT) on the same lines as STT on options and futures.

180. "Charitable purpose" includes relief of the poor, education, medical relief and any other object of general public utility. These activities are tax exempt, as they should be. However, some entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes have sought to claim that their purposes would also fall under "charitable purpose". Obviously, this was not the intention of Parliament and, hence, I propose to amend the law to exclude the aforesaid cases. Genuine charitable organisations will not in any way be affected.

181. The Banking Cash Transaction Tax (BCTT) has served a very useful purpose in enlarging the information system of the Income Tax Department. Since the information is also being gathered through other instruments introduced in the last few years, I propose to withdraw this tax with effect from April 1, 2009.

182. My tax proposals on direct taxes are revenue neutral. On the indirect taxes side, the proposals are estimated to result in a loss of Rs.5,900 crore.

 

CST and a Roadmap towards GST

183. Following an agreement between the Central Government and the State Governments, the rate of Central Sales Tax was reduced from 4 per cent to 3 per cent in this financial year. It is now proposed to reduce the rate to 2 per cent from April 1, 2008. Consultations are underway on the compensation for losses, if any, and once agreement is reached the new rate will be notified. I am also happy to report that there is considerable progress in preparing a roadmap for introducing the Goods and Services Tax with effect from April 1, 2010.

 

IX. CONCLUSION

184. Mr. Speaker, Sir, once upon a time India, together with China, accounted for 50 per cent of the world's output. We must regain our position and it is within our capacity to do so.

185. Our work in Government is, every day and every hour, a discovery of the path to reach our goals: full employment, abolition of poverty and elimination of inequality. "These goals can only be achieved by a considerable increase in national income and our economic policy must, therefore, aim at plenty and equitable distribution. We must produce wealth, and then divide it equitably. How can we have a welfare state without wealth?" Those are not my words; they were uttered in 1955 by Pandit Jawaharlal Nehru. Although Jawaharlal Nehru did not use the phrase inclusive growth, he actually spelt out the conditions for inclusive growth.

186. Those words will guide the UPA Government. As always, I turned to my muse, Saint Tiruvalluvar, for guidance and reassurance. 2,000 years ago he set the benchmark for good governance in the following immortal words:

"Kodai Ali Sengol Kudi Ombal Nangum

Udaiyanam Vendharkku Oli"

[Generous grants, compassion, righteous rule

and succour to the downtrodden

Are the hallmarks of good governance]

We have tried to remain true to this philosophy. The four years to 2007-08 have been the best years so far but, may I say with humility, that the best is yet to come.

187. Sir, with these words I commend the Budget to the House.

 


http://indiabudget.nic.in/ub2008-09/bs/speecha.htm

Mandal Commission

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The Mandal Commission was established in India in 1979 by the Bharata Janata Party government under Prime Minister Morarji Desai with a mandate to "identify the socially or educationally backward."[1] It was headed by Indian parliamentarian Bindheshwari Prasad Mandal to consider the question of seat reservations and quotas for people to redress caste discrimination, and used eleven social, economic, and educational indicators to determine "backwardness." In 1980, the commission's report affirmed the affirmative action practice under Indian law whereby members of lower castes (known as Other Backward Classes (OBC) and Scheduled Castes and Tribes) were given exclusive access to a certain portion of government jobs and slots in public universities, and recommended changes to these quotas, increasing them by 27% to 49.5%.Follow palashbiswaskl on Twitter

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