Sunday, December 18, 2016

Whether Globalisation led Growth defeated Barack?

Mr. Barak Obama is on the verge to say good by to US Presidency. While he is on departure, he has written some good note of his experience and contemporary situation of US politics which has been published in "The Economist". Plz read few stanza of his writings... विद्यानन्द  आचार्य 
Barack Obama
The way ahead
America’s president writes for us about four crucial areas of unfinished business in economic policy that his successor will have to tackle
Oct 8th 2016 | WASHINGTON, DC | From the print edition
WHEREVER I go these days, at home or abroad, people ask me the same question: what is happening in the American political system? How has a country that has benefited—perhaps more than any other—from immigration, trade and technological innovation suddenly developed a strain of anti-immigrant, anti-innovation protectionism? Why have some on the far left and even more on the far right embraced a crude populism that promises a return to a past that is not possible to restore—and that, for most Americans, never existed at all?
It’s true that a certain anxiety over the forces of globalisation, immigration, technology, even change itself, has taken hold in America. It’s not new, nor is it dissimilar to a discontent spreading throughout the world, often manifested in scepticism towards international institutions, trade agreements and immigration. It can be seen in Britain’s recent vote to leave the European Union and the rise of populist parties around the world.
Much of this discontent is driven by fears that are not fundamentally economic. The anti-immigrant, anti-Mexican, anti-Muslim and anti-refugee sentiment expressed by some Americans today echoes nativist lurches of the past—the Alien and Sedition Acts of 1798, the Know-Nothings of the mid-1800s, the anti-Asian sentiment in the late 19th and early 20th centuries, and any number of eras in which Americans were told they could restore past glory if they just got some group or idea that was threatening America under control. We overcame those fears and we will again.
But some of the discontent is rooted in legitimate concerns about long-term economic forces. Decades of declining productivity growth and rising inequality have resulted in slower income growth for low- and middle-income families. Globalisation and automation have weakened the position of workers and their ability to secure a decent wage. Too many potential physicists and engineers spend their careers shifting money around in the financial sector, instead of applying their talents to innovating in the real economy. And the financial crisis of 2008 only seemed to increase the isolation of corporations and elites, who often seem to live by a different set of rules to ordinary citizens.
So it’s no wonder that so many are receptive to the argument that the game is rigged. But amid this understandable frustration, much of it fanned by politicians who would actually make the problem worse rather than better, it is important to remember that capitalism has been the greatest driver of prosperity and opportunity the world has ever known.
Over the past 25 years, the proportion of people living in extreme poverty has fallen from nearly 40% to under 10%. Last year, American households enjoyed the largest income gains on record and the poverty rate fell faster than at any point since the 1960s. Wages have risen faster in real terms during this business cycle than in any since the 1970s. These gains would have been impossible without the globalisation and technological transformation that drives some of the anxiety behind our current political debate.
This is the paradox that defines our world today. The world is more prosperous than ever before and yet our societies are marked by uncertainty and unease. So we have a choice—retreat into old, closed-off economies or press forward, acknowledging the inequality that can come with globalisation while committing ourselves to making the global economy work better for all people, not just those at the top.
A force for good
The profit motive can be a powerful force for the common good, driving businesses to create products that consumers rave about or motivating banks to lend to growing businesses. But, by itself, this will not lead to broadly shared prosperity and growth. Economists have long recognised that markets, left to their own devices, can fail. This can happen through the tendency towards monopoly and rent-seeking that this newspaper has documented, the failure of businesses to take into account the impact of their decisions on others through pollution, the ways in which disparities of information can leave consumers vulnerable to dangerous products or overly expensive health insurance.
More fundamentally, a capitalism shaped by the few and unaccountable to the many is a threat to all. Economies are more successful when we close the gap between rich and poor and growth is broadly based. A world in which 1% of humanity controls as much wealth as the other 99% will never be stable. Gaps between rich and poor are not new but just as the child in a slum can see the skyscraper nearby, technology allows anyone with a smartphone to see how the most privileged live. Expectations rise faster than governments can deliver and a pervasive sense of injustice undermines peoples’ faith in the system. Without trust, capitalism and markets cannot continue to deliver the gains they have delivered in the past centuries.
This paradox of progress and peril has been decades in the making. While I am proud of what my administration has accomplished these past eight years, I have always acknowledged that the work of perfecting our union would take far longer. The presidency is a relay race, requiring each of us to do our part to bring the country closer to its highest aspirations. So where does my successor go from here?
Further progress requires recognising that America’s economy is an enormously complicated mechanism. As appealing as some more radical reforms can sound in the abstract—breaking up all the biggest banks or erecting prohibitively steep tariffs on imports—the economy is not an abstraction. It cannot simply be redesigned wholesale and put back together again without real consequences for real people.
Instead, fully restoring faith in an economy where hardworking Americans can get ahead requires addressing four major structural challenges: boosting productivity growth, combating rising inequality, ensuring that everyone who wants a job can get one and building a resilient economy that’s primed for future growth.................
Courtesy:- The Economist

Wednesday, July 27, 2016

2,351 companies not spent a penny for CSR implementation

As many as 2,351 companies have not spent a single penny on corporate social responsibility (CSR) activities, while a total of 776 firms have engaged NGOs for implementing such tasks, Parliament was informed today.

NEW DELHI: It has reported that an assessment of CSR expenditure of 4,257 companies indicates that these firms have spent about 72 per cent of the mandated amount on CSR activities, Corporate Affairs Minister Arun Jaitley said in a written reply to Rajya Sabha.
As many as 2,351 companies have not spent a single penny on corporate social responsibility (CSR) activities, while a total of 776 firms have engaged NGOs for implementing such tasks, Parliament was informed today. The new Companies Act mandates every company with a networth of Rs 100 crore to set aside minimum 2 per cent of their 3-year average annual net profit for CSR activities.
Of these, 621 firms have spent more than prescribed amount, while 400 companies spent ‘exactly’ the same amount as prescr

ibed under the rules.
Further, 261 firms have spent 66-99 per cent of the their mandated CSR fund, while 624 companies spent less than 66 per cent of the prescribed amount.As many as 2,351 companies have not spent any amount on CSR activities. Out of the total 4,257 firms, 776 have engaged NGOs for implementing CSR, he said.
In a separate reply Jaitley said, “organising private sports tournaments and one-off activities are not permissible under CSR of companies under the Companies Act 2013 and the rules thereunder.”
Separately, the minister said a total of 967 complaints are pending before the designated courts, filed by Serious Fraud Investigation Office (SFIO) as on date.
Further, SFIO has received 1,375 complaints in 2015 and 797 in 2014. SFIO is the investigation arm of the Corporate Affairs Ministry.
(PTI)

Wednesday, April 20, 2016

Journey of Human Development Report of UNDP

I have compiled a  summary of Human Development Report published every year by UNDP starting from 1990. HDR 2016 is 25th report in this series. 25 years, a silver jubilee year of such publication can be credited for publishing a valuable and  hard worked documents. I have privileged to collect and go through at a glance of all HDR up to 2009 with a hard copy of it for our study centre and after 2009 the soft copy of the same.

Here I am attaching a summary sheet of HDR from 1990 to 2016 with their titles.

       

Concept and Measurement of Human Development

Financing Human Development

Global Dimensions of Human Development

People's Participation

New Dimensions of Human Security

Gender and Human Development

Economic Growth and Human Development

Human Development to Eradicate Poverty

Consumption for Human Development

Globalization with a Human Face

Human Rights and Human Development

Making New Technologies Work for Human Development

Deepening Democracy in a Fragmented World

Millennium Development Goals: A Compact Among Nations to End Human Poverty

Cultural Liberty in Today’s Diverse World

International cooperation at a crossroads: Aid, trade and security in an unequal world

Beyond scarcity: Power, poverty and the global water crisis

Fighting climate change: Human solidarity in a divided world

Overcoming barriers: Human mobility and development

The Real Wealth of Nations: Pathways to Human Development

Sustainability and Equity: A Better Future for All

Asia and the Pacific Human Development Report 2012
Sustaining Human Progress in a Changing Climate


The Rise of the South: Human Progress in a Diverse World

Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience

Work for Human Development

The way Ahead




A Collection by- Vidyanand Acharya

Whether Developmental Agenda can address "Risk of Exclusion"-Human Development Report 2016

It is in continuation of last 25th year that UNDP has successfully launched Human Development Report in 2016 also. The theme of the report for the year 2016 is -"The way ahead". After 25 years of policy intervention at various levels time has come for HDR for  self introspection. Whether all developmental policies adopted across the globe is at cross road today or completely failed to provide sustainable solution of the problems prevailed in all nations. If we will go through the subject/titles of HDR from 1990 i.e measuring human development to 2015-work for human development, we can say that all aspects have been elaborated which is related to poverty alleviation program. 
In this connection, HDR of 1999 was debated a lot because this report challenged the outcomes of developmental model adopted by developed word as 'fit one model to all'. 'Globalization with a Human Face"  was the title of this report. Almost in the same time famous book of Joseph Stiglitz was published titled 'Globalisation and its discontents'. Both report created furors across the glob and provided a tool in the hand of people those who stand against the developmental agenda  promulgated by the west.

1
Here we can cite some observation of HDR 2014 and according to the 2014 HDR, almost 1.5 billion people in the 91 developing countries covered by the MPI -more than 1/3 of their population - live in multidimensional poverty - that is, with at least 33 percent of the indicators reflecting acute deprivation in health, education and standard of living. This exceeded the estimated 1.2 billion people in those countries who lived on $1.25 a day or less. And close to 800 million people are vulnerable to fall into poverty if setbacks occur – financial, natural or otherwise. 
The 2016 HDR, the 25th Report in the Global HDR series, in its continuing quest for a better assessment of the progress of human development, will revisit all measures, including the multidimensional poverty. 

Vidyanand Acharya

Human Development – the Way Ahead

But the world today is different from 1990. Impressive human progress has been achieved in reducing poverty, expanding access to education and on many other fronts. Yet advances have been uneven and significant human deprivations still persist. Meanwhile, some challenges have become more pressing, not least climate change. Deepening globalization and rapid technological change offer new opportunities, but they also pose a risk of exclusion. As the 2030 Agenda for Sustainable Development states, there is a critical need for a transformational change in development, so that no one is left behind.
From a human development perspective, the time has come to focus on three fundamental aspects: extending the frontiers of the paradigm, reviewing how human development is measured; and revisiting the policy options linking various strategies and focusing on institutions at both country and global level. This is why the theme of the jubilee HDR is'Human Development – the Way Ahead'.
Extending the frontiers of human development thinking
The 2016 report aims to extend the frontiers of human development thinking by looking into those conceptual matters that were not made explicit in past reports. This includes uncharted issues such as:
  • the balance between individual and social choices (e.g. how the individual choice of covering the face on the basis of personal religious beliefs may not be consistent with the norm that the broader society holds);
  • the hierarchy of choices (e.g. how some people may value a set of choices over others); and
  • the interconnectedness of choices (e.g. an individual’s choice to travel has an impact on the environment.)
Equally important in expanding the frontiers of this framework is to look into themes from previous reports that deserve further exploration in the light of today’s changing world - issues such as human security, participation and environmental sustainability; and into aspects that are critical for transformational changes in development – normative matters such as social justice and fairness, tolerance and non-violence, diversity and equality.
When assessing human development progress and development results, the focus will be on how to ensure that the most disadvantaged benefit fully from human development progress and on whether those who have escaped basic deprivations continue to advance. Assessing not only the quantity but also the quality of human development progress is also critical in this endeavor – for example children may complete primary education, but this does not represent sustainable human progress unless they can read or write properly. The 2016 report will also review some of the existing composite indices and complement the human development assessment by considering measurement questions related to environmental sustainability, human security, participation, etc. It will also investigate how measures of well-being and happiness (such as the Gross Happiness Index) may add new insight on human development. The objective is to advance towards a more comprehensive, concise and coherent way to measure human progress.
On the policy front, the report will seek to define a unified framework for policy analysis anchored in the human development approach, emphasizing not only what policies are necessary but also how they could be implemented. It will also take both a normative and an instrumental approach towards issues like social justice, fairness, equality, tolerance, cultural diversity, non-violence and democracy. And, as a shared vision of humanity also calls for a collective effort for enhancing human development in an inclusive and sustainable manner, the report will pay attention to the state as well as country-level, regional and global institutions.
Human development and Agenda 2030
While the theme of the 2016 report is not the 2030 Agenda, we recognize that this global agreement will shape the development discourse and policies over the next 15 years. In looking for ways ahead, human development can be linked to this agenda in mutually reinforcing ways. The HDRs can make intellectual contributions and strengthen the policy options to achieve the Sustainable Development Goals (SDGs). Some human development indicators may be aligned to certain SDGs measures and could be used for tracking progress. Conversely, the commitment of 2030 agenda to leave no one behind can provide a framing tool to prioritize attention to certain human development dimensions and groups of people; and to a transformational change in development in the context of human development thinking, as noted above.
Both the human development paradigm and the HDR are at a turning point in their history. They have established a distinctive tradition and a strong track record in advancing conceptual thinking, measurement, advocacy and the practical realization of human development. At the same time, the development landscape in the world today – and in the foreseeable future – is different from what it was in 1990. The challenge is to leverage the gains in our knowledge and understanding to ensure that both the framework and the reports, while maintaining continuity with the fundamental principles and approaches, motivate positive changes in people’s lives, and remain relevant and useful towards achieving the 2030 Agenda for Sustainable Development. The 2016 report represents an intellectual exercise towards addressing that challenge.

Wednesday, March 30, 2016

Human Development Report 2015 "Is gender equality destined to remain our perpetual aspirational dream?"

Human Development Report 2015 

"Work for Human Development"


Overview 

Is gender equality destined to remain our perpetual aspirational dream?


Human development is about enlarging human choices—focusing on the richness of human lives rather than simply the richness of economies. Critical to this process is work, which engages people all over the world in different ways and takes up a major part of their lives. Of the world’s 7.3 billion people, 3.2 billion are in jobs, and others engage in care work, creative work, voluntary work or other kinds of work or are preparing themselves as future workers. Some of this work contributes to human development, and some does not. Some work even damages human development.

Work enables people to earn a livelihood and be economically secure. It is critical for equitable economic growth, poverty reduction and gender equality. It also allows people to fully participate in society while affording them a sense of dignity and worth. Work can contribute to the public good, and work that involves caring for others builds cohesion and bonds within families and communities. Work also strengthens societies. Human beings working together not only increase material well-being, they also accumulate a wide body of knowledge that is the basis for cultures and civilizations. And when all this work is environmentally friendly, the benefits extend across generations. Ultimately, work unleashes human potential, human creativity and the human spirit. This year’s Human Development Report explores how work can enhance human development, given that the world of work is changing fast and that substantial human development challenges remain. The Report takes a broad view of work, including voluntary work and creative work, thus going beyond jobs. And it examines the link between work and human development, focusing on care work as well as paid work and discussing sustainable work. The Report also makes the points that the link between work and human development is not automatic and that some work, such as forced labour, can damage human development by violating human rights, shattering human dignity and sacrificing freedom and autonomy. And without proper policies, work’s unequal opportunities and rewards can be divisive, perpetuating inequities in society.

The Report concludes that work can enhance human development when policies expand productive, remunerative and satisfying work opportunities, enhance workers’ skills and potential and ensure their rights, safety and well-being. The Report also pursues an action agenda based on a New Social Contract, a Global Deal and the Decent Work AgendaTwenty-five years ago the first Human Development Report presented the concept of human development, a simple notion with far-reaching implications. For too long, the world had been preoccupied with material opulence, pushing people to the periphery. The human development framework, taking a people-centred approach, changed the lens for viewing development needs, bringing the lives of people to the forefront. It emphasized that the true aim of development is not only to boost incomes, but also to maximize human choices—by enhancing human rights, freedoms, capabilities and opportunities and by enabling people to lead long, healthy and creative lives . The human development concept is complemented with a measure—the Human Development Index (HDI)—that assesses human well-being from a broad perspective, going beyond income . With this simple but powerful notion of people-centred development, nearly twodozen global Human Development Reports and more than 700 national Human Development Reports have been produced over the past 25 years. They have contributed to the development discourse, assessed development results, spurred research and innovative thinking and recommended policy options. Work, not just jobs, contributes to human progress and enhances human development From a human development perspective, the notion of work is broader and deeper than that of jobs or employment alone. Jobs provide income and support human dignity, participation and economic security. But the jobs framework fails to capture many kinds of work that have important human development implications —as with care work, voluntary work and such creative work as writing or painting. The link between work and human development is synergistic. Work enhances human development by providing incomes and livelihoods, by reducing poverty and by ensuring equitable growth. Human development—by enhancing health, knowledge, skills and awareness—increases human capital and broadens opportunities and choicesSince 1990 the world has made major strides in human development. The global HDI value has increased by more than a quarter and that of the least developed countries by more than half. This progress has been fairly steady over time and across regions. The number of people living in low human development fell from 3 billion in 1990 to slightly more than 1 billion in 2014 (see table 8 in Statistical annex). Today, people are living longer, more children are going to school and more people have access to clean water and basic sanitation. This progress goes hand in hand with rising incomes, producing the highest standards of living in human history. A digital revolution now connects people across societies and countries. Just as important, political developments are enabling more people than ever to live under democratic regimes. All are important facets of human development. Between 1990 and 2015 income poverty in developing country regions fell by more than two-thirds. The number of extreme poor people worldwide fell from 1.9 billion to 836 million. The child mortality rate fell by more than half, and under-five deaths fell from 12.7 million to 6 million. More than 2.6 billion people gained access to an improved source of drinking water, and 2.1 billion gained access to improved sanitation facilities, even as the world’s population rose from 5.3 billion to 7.3 billion.1 Work in various forms by 7.3 billion people has contributed to this progress. Nearly a billion people who work in agriculture and more than 500 million family farms produce more than 80 percent of the world’s food, improving nutrition and health.2 Worldwide, 80 million workers in health and education have enhanced human capabilities.3 More than a billion workers in services have contributed to human progress. In China and India 23 million jobs in clean energy are increasing environmental sustainability.4 Work has a societal value that goes beyond the gains of individual workers. More than 450  million entrepreneurs are contributing to human innovation and creativity.5 Some 53 million paid domestic workers are addressing the care needs of people.6 Care work for children is preparing them for the future. Work that involves caring for older people or people with disabilities is helping them maintain their capabilities. Work by artists, musicians and writers is enriching human lives. More than 970  million people who engage in volunteer activity each year are helping families and communities, building social networks and contributing to social cohesion.7 Yet human progress has been uneven, human deprivations are still widespread and much human potential remains unused Human development has been uneven among regions, across countries and within countries. In 2014 Latin America and the Caribbean’s HDI value was 0.748, compared with 0.686 in the Arab States. And the maternal mortality ratio was only 21 per 100,000 live births in Organisation for Economic Co-operation and Development countries, compared with 183 in South Asia (see table 5 in Statistical annex). Globally women earn 24  percent less than men and hold only 25 percent of administrative and managerial positions in the business world—while 32  percent of businesses have no women in senior management positions.8 Women still hold only 22  percent of seats in single or lower houses of national parliament. In Malaysia the richest 10 percent of the population had 32 percent of national income in 2012, the poorest 10 percent of the population had only 2  percent.9 In Moldova 69  percent of urban people have access to safe drinking water, compared with only 23 percent of rural people.10 Added to the uneven human development achievements are widespread human deprivations. Worldwide 795  million people suffer from chronic hunger, 11 children under age 5 die every minute and 33 mothers die every hour. About 37 million people live with HIV and 11 million with tuberculosis.11 More than 660  million people use an unimproved source of drinking water, 2.4 billion people use an unimproved sanitation facility and nearly a billion people resort to open defecation.12 Worldwide 780 million adults and 103 million young people (ages 15–24) are illiterate. In developed countries 160 million people are functionally illiterate. Globally 250  million The number of people living in low human development fell by nearly 2 billion 4 | HUMAN DEVELOPMENT REPORT 2015 children have not learned basic skills—even though 130 million of them have spent at least four years in school.13 One critical human deprivation is not using, misusing or underusing the deep human potential of people for human development–enhancing work. In 2015, 204 million people were out of work, including 74 million young people— based on formal unemployment data. About 830  million people in the world are working poor—living on less than $2 a day—and more than 1.5 billion are in vulnerable employment, usually lacking decent working conditions and adequate voice and social security.14 Unleashing this potential becomes even more important when considering the emerging human development challenges. Take the rising inequalities in income, wealth and opportunity. Today around 80 percent of the world’s people have only 6 percent of the world’s wealth. The share of the richest 1 percent is likely to be more than 50  percent by 2016. In the world of work, wages lag behind productivity, and workers’ shares in income have been falling.15 Population growth, driven mostly by South Asia and increasingly by Sub-Saharan Africa, will have major implications for human development—for work opportunities, the care gap between care needs and care providers and the provision of social protection. Recent estimates indicate that there is a global shortage of 13.6 million care workers, causing extreme deficits in long-term care services for those over age 65.16 Greater longevity, ageing, the youth bulge and dependency ratios will all have impacts. In 2050 more than two-thirds of the world’s population—or 6.2 billion people—are expected to live in urban areas, stressing the coping capacities of cities.17 Human security is under threat from many sources. At the end of 2014, 60 million people had been displaced worldwide.18 Between 2000 and 2013 the cumulative death tolls from global and national violent extremism rose more than fivefold, from 3,361 to 17,958.19 Violence against women is one of the most brutal threats to human development. One in three women has been subject to physical or sexual violence.20 Human development is undermined by multiple shocks, vulnerabilities and risks—by epidemics, by emerging health risks, by economic and financial crises and by food and energy insecurities. For example, noncommunicable (or chronic) diseases are now a global health risk, killing 38 million people each year, almost three-quarters of them (28 million) in low- and middle-income countries. 21 Almost 30 percent (2.1  billion) of the world’s people are obese, more than three-fifths of them in developing country regions.22 Around the world communities are becoming more vulnerable to the effects of climate change, including the loss of biodiversity—the lifeline of many poor communities. Around 1.3  billion people live on fragile lands.23 Millions are affected by natural disasters. Work can enhance human development, but some work damages it—the link between the two is not automatic The link between work and human development is not automatic. It depends on the quality of work, the conditions of work, the societal value of work and so on. Whether people have a job is important, as are other issues. For example: Is work safe? Are people fulfilled and satisfied by their work? Are there prospects for advancement? Does employment support a flexible work–life balance? Are there equal opportunities for women and men? The quality of work also includes whether a job provides dignity and a sense of pride and whether it facilitates participation and interaction. To strengthen the link with human development, work also has to enhance environmental sustainability. Work strengthens its link with human development when it goes beyond individual benefits to contribute to shared social objectives, such as poverty and inequality reduction, social cohesion, culture and civilization. Conversely, the value of work is diminished and its link with human development becomes weaker when there is discrimination and violence at work. The most observable discrimination is along gender lines—in positions, pay and treatment. In the United States female financial specialists’ salaries are only 66 percent of their male counterparts’.,,,

courtesy:- HDR 2015 

Sunday, March 6, 2016

Strength of Rural Economy Recognized Finally

Rural economies could potentially boost global growth by $2 trillion by 2030.-The Economist
Unleashing Rural Economies, sponsored by Syngenta, highlights the overlooked value of rural economies. The research modelled how global GDP, rural GDP and rural populations could evolve up to 2030, according to various scenarios. This includes rural growth being unleashed as policymakers implement measures to stimulate development and overcome underlying barriers.
Getting the right drivers in place could boost rural growth by over 13% above its current trajectory. Re-positioning rural development as a source of growth has the potential to unlock $2 trillion of annual economic output globally by 2030. Rather than from a mere poverty alleviation or food security perspective, rural economies have the potential to significantly improve the long-term economic growth of nations around the world.

Tuesday, March 1, 2016

Amidst Global economic crisis Indian economy has held its ground firmly

HIGHLIGHTS of BUDGET 2016-17


Finance Minister  in his Budget speech in Parliament on 29.02.2016 stressed on Indian economy's resilience amidst the current global economic turmoil. "Global economy is in a serious crisis. Financial markets have been battered but Indian economy has held its ground firmly."

"We have bridged the trust deficit created by the previous government," Jaitley added. We take a look at highlights from his speech:

Introduction
> Growth of Economy accelerated to 7.6 per cent in 2015-16.

> India hailed as a 'bright spot' amidst a slowing global economy by IMF. > Robust growth achieved despite very unfavourable global conditions and two consecutive years shortfall in monsoon by 13 per cent

> Foreign exchange reserves touched highest ever level of about 350 billion US dollars.

> Despite increased devolution to States by 55 per cent as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 - in contrast to earlier years.

Challenges in 2016-17
> Risks of further global slowdown and turbulence. > Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP.

Roadmap & priorities
> 'Transform India' to have a significant impact on economy and lives of people.

> Government to focus on:

> ensuring macro-economic stability and prudent fiscal management.

> boosting on domestic demand

> continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better.

> Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks.

> Focus on Vulnerable sections through:

> Pradhan Mantri Fasal Bima Yojana

> New health insurance scheme to protect against hospitalisation expenditure

> facility of cooking gas connection for BPL families

> Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and Insolvency and Bankruptcy law

> Undertake important reforms by:

> giving a statutory backing to AADHAR platform to ensure benefits reach the deserving.

> freeing the transport sector from constraints and restrictions

> incentivising gas discovery and exploration by providing calibrated marketing freedom

> enactment of a comprehensive law to deal with resolution of financial firms

> provide legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts

> undertake important banking sector reforms and public listing of general insurance companies undertake significant changes in FDI policy.

Agriculture and farmers' welfare
> Allocation for Agriculture and Farmers' welfare is Rs 35,984 crore

> 'Pradhan Mantri Krishi Sinchai Yojana' to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.

> Implementation of 89 irrigation projects under AIBP, which are languishing for a long time, will be fast tracked

> A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about Rs 20,000 crore

> Programme for sustainable management of ground water resources with an estimated cost of Rs 6,000 crore will be implemented through multilateral funding

> 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA

> Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.

> 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years

> Promote organic farming through 'Parmparagat Krishi Vikas Yojana' and 'Organic Value Chain Development in North East Region'.

> Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets

> Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs 19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.

> To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore has been made in the BE 2016-17 towards interest subvention

> Allocation under Prime Minister Fasal Bima Yojana Rs 5,500 crore.

> Rs 850 crore for four dairying projects - 'Pashudhan Sanjivani', 'Nakul Swasthya Patra', 'E-Pashudhan Haat' and National Genomic Centre for indigenous breeds

Rural sector
> Allocation for rural sector - Rs 87,765 crore.

> Rs 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission

> Every block under drought and rural distress will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission

> A sum of Rs 38,500 crore allocated for MGNREGS.

> 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission

> 100 per cent village electrification by 1st May, 2018.

> District Level Committees under Chairmanship of senior most Lok Sabha MP from the district for monitoring and implementation of designated Central Sector and Centrally Sponsored Schemes.

> Priority allocation from Centrally Sponsored Schemes to be made to reward villages that have become free from open defecation.

> A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.

> National Land Record Modernisation Programme has been revamped. > New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of Rs 655 crore.

Social sector including health care
> Allocation for social sector including education and health care - Rs 1,51,581 crore.

> Rs 2,000 crore allocated for initial cost of providing LPG connections to BPL families.

> New health protection scheme will provide health cover up to Rs One lakh per family. For senior citizens an additional top-up package up to Rs 30,000 will be provided.

> 3,000 Stores under Prime Minister's Jan Aushadhi Yojana will be opened during 2016-17.

> 'National Dialysis Services Programme' to be started under National Health Mission through PPP mode

> "Stand Up India Scheme" to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.

> National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations

> Allocation of Rs 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.

Education, skills and job creation
> 62 new Navodaya Vidyalayas will be opened

> Sarva Shiksha Abhiyan to increasing focus on quality of education

> Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions

> Higher Education Financing Agency to be set-up with initial capital base of Rs 1000 Crores

> Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.

Skill development
> Allocation for skill development - Rs 1804 crore.

> 1500 Multi Skill Training Institutes to be set-up.

> National Board for Skill Development Certification to be setup in partnership with the industry and academia

> Entrepreneurship Education and Training through Massive Open Online Courses

Job creation
> GoI will pay contribution of 8.33 per cent for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs 1000 crore for this scheme.

> Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act

> 100 Model Career Centres to operational by the end of 2016-17 under National Career Service.

> Model Shops and Establishments Bill to be circulated to States.

Infrastructure and investment
> Total investment in the road sector, including PMGSY allocation, would be Rs 97,000 crore during 2016-17.

> India's highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kms of National Highways in 2016-17.

> Allocation of Rs 55,000 crore in the Budget for Roads. Additional Rs 15,000 crore to be raised by NHAI through bonds.

> Total outlay for infrastructure - Rs 2,21,246 crore.

> Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger segment

> Action plan for revival of unserved and underserved airports to be drawn up in partnership with State Governments.

> To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-water and high pressure-high temperature areas > Comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation to be drawn up.

> Steps to re-vitalise PPPs:
> Public Utility (Resolution of Disputes) Bill will be introduced during 2016-17

> Guidelines for renegotiation of PPP Concession Agreements will be issued

> New credit rating system for infrastructure projects to be introduced

> Reforms in FDI policy in the areas of Insurance and Pension, Asset Reconstruction Companies, Stock Exchanges.

> 100 per cent FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India.

> A new policy for management of Government investment in Public Sector Enterprises, including disinvestment and strategic sale, approved.

Financial sector reforms
> A comprehensive Code on Resolution of Financial Firms to be introduced.

> Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.

> A Financial Data Management Centre to be set up.

> RBI to facilitate retail participation in Government securities.

> New derivative products will be developed by SEBI in the Commodity Derivatives market.

> Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100 per cent stake in the ARC and permit non institutional investors to invest in Securitization Receipts.

> Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking schemes.

> Increasing members and benches of the Securities Appellate Tribunal.

> Allocation of Rs 25,000 crore towards recapitalisation of Public Sector Banks.

> Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs 1,80,000 crore.

> General Insurance Companies owned by the Government to be listed in the stock exchanges.

Governance and ease of doing business
> A Task Force has been constituted for rationalisation of human resources in various Ministries.

> Comprehensive review and rationalisation of Autonomous Bodies.

> Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework to be introduced.

> Introduce DBT on pilot basis for fertilizer.

> Automation facilities will be provided in 3 lakh fair price shops by March 2017.

> Amendments in Companies Act to improve enabling environment for start-ups.

> Price Stabilisation Fund with a corpus of Rs 900 crore to help maintain stable prices of Pulses.

> "Ek Bharat Shreshtha Bharat" programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

Fiscal discipline
> Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9 per cent and 3.5 per cent. > Revenue Deficit target from 2.8 per cent to 2.5 per cent in RE 2015-16

> Total expenditure projected at Rs 19.78 lakh crore

> Plan expenditure pegged at Rs 5.50 lakh crore under Plan, increase of 15.3 per cent

> Non-Plan expenditure kept at Rs 14.28 lakh crores

> Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure.

> Mobilisation of additional finances to the extent of Rs 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising Bonds.

> Plan / Non-Plan classification to be done away with from 2017-18.

> Every new scheme sanctioned will have a sunset date and outcome review.

> Rationalised and restructured more than 1500 Central Plan Schemes into about 300 Central Sector and 30 Centrally Sponsored Schemes.

> Committee to review the implementation of the FRBM Act.

Relief to small tax payers
> Raise the ceiling of tax rebate under section 87A from Rs 2000 to Rs 5000 to lessen tax burden on individuals with income upto Rs5 lakhs.

> Increase the limit of deduction of rent paid under section 80GG from Rs 24000 per annum to Rs 60000, to provide relief to those who live in rented houses.

Boost employment and growth
> Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs 2 crores to bring big relief to a large number of assessees in the MSME category.

> Extend the presumptive taxation scheme with profit deemed to be 50 per cent, to professionals with gross receipts up to Rs 50 lakh.

> Phasing out deduction under Income Tax:

> Accelerated depreciation wherever provided in IT Act will be limited to maximum 40 per cent from 1.4.2017

> Benefit of deductions for Research would be limited to 150 per cent from 1.4.2017 and 100 per cent from 1.4.2020

> Benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.

> The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020

> Corporate Tax rate proposals:

> New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25 per cent + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.

> Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding Rs 5 crore (in the financial year ending March 2015), to 29 per cent plus surcharge and cess.

> 100 per cent deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.

> 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.

> Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source.

> Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.

> Non-banking financial companies shall be eligible for deduction to the extent of 5 per cent of its income in respect of provision for bad and doubtful debts.

> Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.

> Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.

> Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.

> Exemption of Service tax on general insurance services provided under 'Niramaya' Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.

> Basic custom and excise duty on refrigerated containers reduced to 5 per cent and 6 per cent.

Make in India
> Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair.

Moving towards a pensioned society
> Withdrawal up to 40 per cent of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.

> In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40 per cent of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.

> Limit for contribution of employer in recognized Provident and Superannuation Fund of Rs 1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees.

> Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5 per cent to 1.4 per cent of the premium paid in certain cases.

Promoting affordable housing 
> 100 per cent deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years. MAT to apply.

> Deduction for additional interest of Rs50,000 per annum for loans up to Rs35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs 50 lakh.

> Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax, in respect of dividend distributed after the specified date.

> Exemption from service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP Schemes.

> Extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work to Ready Mix Concrete.

Resource mobilization for agriculture, rural economy and clean environment
> Additional tax at the rate of 10 per cent of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs 10 lakh per annum.

> Surcharge to be raised from 12 per cent to 15 per cent on persons, other than companies, firms and cooperative societies having income above Rs 1 crore.

> Tax to be deducted at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs ten lakh and purchase of goods and services in cash exceeding Rs two lakh.

> Securities Transaction tax in case of 'Options' is proposed to be increased from .017 per cent to .05 per cent. > Equalization levy of 6 per cent of gross amount for payment made to non- residents exceeding Rs 1 lakh a year in case of B2B transactions.

> Krishi Kalyan Cess, @0.5 per cent on all taxable services, w.e.f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers. Input tax credit of this cess will be available for payment of this cess.

> Infrastructure cess, of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess.

> Excise duty of 1 per cent without input tax credit or 12.5 per cent with input tax credit' on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of Rs 6 crores and Rs 12 crores respectively.

> Excise on readymade garments with retail price of Rs 1000 or more raised to 2 per cent without input tax credit or 12.5 per cent with input tax credit.

> 'Clean Energy Cess' levied on coal, lignite and peat renamed to 'Clean Environment Cess' and rate increased from Rs200 per tonne to Rs400 per tonne.

> Excise duties on various tobacco products other than beedi raised by about 10 to 15 per cent.

> Assignment of right to use the spectrum and its transfers has been deducted as a service leviable to service tax and not sale of intangible goods.

Providing certainity in taxation
> Committed to providing a stable and predictable taxation regime and reduce black money.

> Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30 per cent, and surcharge at 7.5 per cent and penalty at 7.5 per cent, which is a total of 45 per cent of the undisclosed income. Declarants will have immunity from prosecution.

> Surcharge levied at 7.5 per cent of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy.

> New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to Rs 10 lakh. Cases with disputed tax exceeding Rs 10 lakh to be subjected to 25 per cent of the minimum of the imposable penalty. Any pending appeal against a penalty order can also be settled by paying 25 per cent of the minimum of the imposable penalty and tax interest on quantum addition.

> High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment.

> One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.

> Penalty rates to be 50 per cent of tax in case of underreporting of income and 200 per cent of tax where there is misreporting of facts.

> Disallowance will be limited to 1 per cent of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8D of Section 14A of Income Tax Act.

> Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.

> Mandatory for the assessing officer to grant stay of demand once the assesse pays 15 per cent of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals).

> Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from Rs 15 lakhs to Rs 50 lakhs.

> 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

Simplification and rationalization of taxes
> 13 cesses, levied by various Ministries in which revenue collection is less than Rs 50 crore in a year to be abolished.

> For non-residents providing alternative documents to PAN card, higher TDS not to apply.

> Revision of return extended to Central Excise assesses.

> Additional options to banking companies and financial institutions, including NBFCs, for reversal of input tax credits with respect to non- taxable services.

> Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record.

> Customs Single Window Project to be implemented at major ports and airports starting from beginning of next financial year.

> Increase in free baggage allowance for international passengers. Filing of baggage only for those carrying dutiable goods.

Technology for accountability
> Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.

> Interest at the rate of 9 per cent p.a against normal rate of 6 per cent p.a for delay in giving effect to Appellate order beyond ninety days. > 'e-Sahyog' to be expanded to reduce compliance cost, especially for small taxpayers.
courtesy-ET