Survey may have chapter on universal basic income

NEW DELHI, Jan 31, 2017, DHNS:

The Economic Survey to be presented in Parliament may feature a chapter on universal basic income this year. Chief Economic Adviser Arvind Subramanian has promised to float the idea to let the government think over it. Universal basic income is a form of social security where the State transfers a sum of money to poor citizens to supplement their income to reach a certain threshold.

In the Indian context, it may mean people below the poverty line. Recently Subramanian had said that his effort would be to add a new chapter in the Economic Survey of 2017. He had also argued that the scheme can be tried on a pilot basis in the most disadvantaged regions of the country.

More recently even the Niti Aayog has come in favour of UBI. Its CEO Amitabh Kant has said that the government could try UBI in the form of interest-free loans to the poor. He has argued that UBI will be important in the context of disruption being caused in the job market through automation. But he also added that the government needed to do an in-depth analysis before launching such a scheme.

A government official said that at this stage it would only be an idea to be discussed and debated since the country already has some social security programmes for the poor. Mahatma Gandhi National Rural Employment Guarantee Scheme, the world's largest public works programme, is one such programme which provides work and wages for 100 days in a year.

“It will be difficult for the government to replace such programmes and bring in UBI,” he said but did not rule out a cost-benefit analysis at this stage. Among the critics of UBI is former finance minister P Chidambaram who said, “UBI is not a novel idea. Countries that have a comprehensive social security scheme provide a cash payment as well as food coupons to persons entitled to receive social security benefits (the poor, unemployed, disabled, aged). In India, there is no comprehensive social security scheme. We have the MGNREGA scheme that bears a similarity to UBI”. Recently, Switzerland turned down the idea of UBI by an overwhelming majority due to its financial implications.

Economy not in good shape: Manmohan

NEW DELHI: Jan 31, 2017, DHNS

Ahead of the presentation of the Union Budget, the Congress on Monday painted a grim picture of the economy, questioning the sense of optimism sought to be presented by the Centre. Former prime minister Manmohan Singh released a 78-page document titled ‘The Real State of the Economy – 2017’ which claimed that the economy was “not in a good shape”.

“The IMF has projected that the growth rate of India this current fiscal year will not be 7.6% but 6.6%. Several other agencies have made similar projections,” he said, adding that the “economy not being in good shape was obvious”. Former finance minister P Chidambaram questioned the Modi government on ‘loss of jobs’ and investments, in his party’s view, being reduced to a trickle.

“They are hiding behind the dazzle of an important number – the GDP. But people are not dazzled by numbers,” Chidambaram said. Congress member M V Rajeev Gowda, who put together the RSE report, said Prime Minister Narendra Modi had promised creation of two crore jobs every year, but in reality only 1.5 lakh jobs were created in 2016.

The Congress claimed that new investment proposals have reduced to a trickle post-demonetisation and the quarter ending December 2016 saw only 404 such projects. “The number of new projects had dropped to below 500 for the first time in a decade during the previous quarter (September 2016). The fall to close to just over 400 projects is a very sharp fall to a new low,” the RSE document said.

Gowda, who heads the AICC Research and Coordination Commitee, said even Modi's pet initiative 'Start-up India' has come a cropper as many start-up companies have closed shop. Chidambaram said the document released by the Congress was “closer to the truth” than what the Modi government would claim in the Economic Survey that is set to be presented to Parliament on Tuesday.

RBI relaxes ATM withdrawal limits

MUMBAI, Jan 31, 2017, DHNS

The Reserve Bank of India has decided to remove cash withdrawal limits for current accounts, cash credit accounts and overdraft accounts from February 1. The apex bank, however, retained the weekly withdrawal limit from savings account at Rs 24,000.

“On a review of the pace of remonetisation, it has been decided to partially restore status quo ante on limits placed on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect,” the RBI said.

Limits placed on cash withdrawals from ATMs stand withdrawn from February 1, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016,” the RBI added.The RBI also said that it is considering hiking withdrawal limit for savings account holders.

“The limits on savings bank accounts will continue for the present and are under consideration for withdrawal in the near future,” the RBI said. Savings account holders were allowed to withdraw Rs 2,500 per day per card from November 8. The limit was raised to Rs 4,500 on December 30 and then to Rs 10,000 on January 16, 2017.

No Kambala for now, hearing in 2 weeks: HC

BENGALURU: Jan 31, 2017, DHNS

The High Court on Monday refused to vacate a stay on the buffalo racing sport of Kambala. A division bench comprising Chief Justice SK Mukherjee and Justice R B Budihal said, “No Kambala.” The District Kambala Committee and others had appealed against the stay. The court will hear the case again in two weeks. The organisers cited the Karnataka Cabinet’s decision to amend the Prevention of Cruelty to Animals Act of 1960 to list Kambala and bullock cart racing as ‘traditional sports.’ 

The petitioners also contended Tamil Nadu’s ordinance in favour of the bull-taming sport of Jallikattu had received the Centre’s approval. The bench, however, observed the Jallikattu ordinance was coming up for hearing on Tuesday at the Supreme Court. “We would not like to hear a matter similar to that,” it said. Justice Mukherjee said the buffalo was not a performing animal, and the stay could not be vacated.

People for Ethical Treatment of Animals (PETA) India, in a public interest petition, had sought quashing of a notification dated December 17, 2015, allowing the coastal Karnataka sport under certain conditions. The Karnataka government’s department of animal husbandry and fisheries had issued the notification.

The Animal Welfare Board of India (AWBI) had recorded 65 complaints of non-cognisable offence. Yet, the authorities had filed just one FIR in connection with three Kambala events between December 2014 and January 2015, the petitioners had submitted to the court. All three events, PETA contended, had displayed gross cruelty towards the animals and violated several laws, besides an apex court order. In the wake of the success of the agitation for Jallikattu, people in Udupi and Dakshina Kannada districts have stepped up their demand for the restoration of Kambala.

SP claims Mulayam's backing

Sanjay Pandey Lucknow: Jan 31, 2017, DHNS

A day after a joint show of strength with the Congress, the Samajwadi Party (SP) seemed to be in damage control mode after party patron Mulayam Singh Yadav threatened to field SP rebels against the Congress in Uttar Pradesh. The SP claimed that ‘Netaji’ (Mulayam) would campaign for the party candidates in the Assembly elections.

“Netaji will campaign for us...We have his blessings... Even if he does not actively campaign, his blessings will see us through,” said party leader Juhi Singh here on Monday.

From second phase
Another SP leader said Mulayam will hit the campaign trail after the first phase of polling ends. “Netaji will campaign in Rampur for Azam Khan and other SP nominees,” the party leader added. While addressing a rally at Kasganj on Monday, Chief Minister Akhilesh Yadav said he had his father’s blessings. “We will face the polls with Netaji’s blessings.... The SP is his (Mulayam) party...His respect will only increase if SP wins,” Akhilesh said.

Mulayam had on Sunday expressed his strong displeasure over the alliance and said that he would not campaign. Mulayam’s younger brother Shivpal Singh Yadav has also raised a banner of revolt and announced that he would support the SP leaders who were refused ticket by Akhilesh.

Shivpal’s supporters also set-up an informal platform to bring together Mulayam loyalists sidelined by Akhilesh. The platform called ‘Mulayam Ke Log’ (people of Mulayam) was set-up at Etawah.

The SP leaders close to Akhilesh said that efforts were on to persuade Mulayam not to do anything that harmed the party’s electoral prospects. “His (Mulayam) remarks can damage our prospects...We will request him not to make such remarks during the elections,” said a senior leader and Akhilesh aide here. A large number of leaders close to Mulayam and Shivpal have been dropped by Akhilesh and many of them have even joined rival parties.

Mulayam wants loyalists to spoil Cong's chances

NEW DELHI: Jan 31, 2017, DHNS

Samajwadi Party (SP) patron Mulayam Singh Yadav is said to have asked his loyalists to file nomination papers against the Congress in 105 seats. Mulayam’s son, Chief Minister Akhilesh Yadav, had left those seats for his ally to contest in the Uttar Pradesh Assembly elections.

Mulayam’s frustration is not limited to his failure to stop the SP from having a truck with the Congress, but many of his loyalists in the party were sidelined by Akhilesh after an intense family feud. Mulayam’s latest move means that the Congress will have to face rebel SP candidates in the remaining five phases, since nominations for the first two beginning February 11 is closed.

Mulayam’s threat comes a day after he expressed his unhappiness on the SP-Congress coalition. Mulayam had also said that he will not campaign for them and had lamented that many of his loyalists’ future was spoilt due to the alliance. Akhilesh, who has been giving restrained reactions on his father’s comment since the dispute between the two played out in the open, courteously rejected Mulayam’s stand on the new alliance to check the resurgent BJP in the state.

He expressed confidence over the chances of his father joining the campaign and said that if the coalition wins, Mulayam’s respect will go up by many notches. “If we win, it will be Mulayam Singh whose respect will increase the most,” Akhilesh said while addressing a rally in Etah.

Communally sensitive west UP witnesses inflammatory outbursts

Lucknow, Jan 31, 2017, DHNS

Inflammatory remarks by contestants threatened to vitiate the atmosphere in communally sensitive western Uttar Pradesh as the polling date nears. BJP legislator Suresh Rana, who was an accused in the 2013 Muzaffarnagar communal riot and a candidate from Thanabhavan Assembly seat in Shamli district, landed in fresh controversy after he reportedly said that Kairana, which hit the headlines after allegations of mass exodus of Hindu families, and Deoband, which houses the famous Islamic seminary Darul Uloom, would witness curfew if he won the polls.

''There will be curfew in Kairana, Deoband and Moradabad if I win from Thanabhavan.......If I lose there will be celebrations in these places,” Rana said while addressing an election meeting in his assembly constituency on Saturday. Rana, however, on Monday clarified that his remarks had been twisted and that he had spoken about the goons in the Samajwadi Party (SP). The matter came to light after a video showing Rana making the remark went viral on social networking sites.

The police said that they were looking into the reports and would examine the video footage of Rana’s speech and register a case if it was found to be objectionable. The SP and the Congress decried the remarks and demanded action against the BJP leader. “He must be barred from contesting the polls....BJP wants to polarise the voters to win the polls,” said senior SP leader and state minister Azam Khan.

State BJP leaders here said that they were not aware of Rana’s remarks. Barely a few days ago, another BJP candidate Sangeet Som, also an accused in the Muzaffarnagar communal riots and a saffron party nominee from Sardhana seat in Meerut district, was booked for violation of the Model Code of Conduct after he allegedly showed CDs of his speeches during the communal violence in Muzaffarnagar.