Monday, February 28, 2011

The Union Budget 2011-12 fails to address the serious problems affecting the people and the economy


The Union Budget 2011-12 fails to address the serious problems affecting the people and the economy. The Budget comes at a time when people are suffering due to high inflation and relentless rise of food and fuel prices. In this backdrop, the massive Rs. 20000 crore cut in major subsidies for 2011-12 on fuel, fertiliser and food, from what was spent in 2010-11 (Revised Estimates), come as a rude shock. The cut in food subsidy by Rs. 27 crore clearly exposes the Government's lack of willingness to enact a meaningful food security legislation. The Finance Minister's stubborn refusal to reduce excise and customs duties on petro products and obduracy in moving away from the ad-valorem duty structure, coupled with the cut on fuel subsidy by Rs. 15000 crore, indicates massive increase in fuel prices in the days to come. This exposes the anti-people character of the Government.

The direct cash transfer programme announced for implementation from next year is a smokescreen for this subsidy cut. The current BPL lists exclude large sections of the country's poor. Direct cash transfers to a small section of beneficiaries cannot substitute for the subsidised provision of essential commodities like food and fuel. The rise in kerosene prices will immediately affect the poor.

The Budget has provided relief of Rs. 11500 crore in direct taxes, while proposing to mobilise an additional Rs. 11300 crore through indirect taxes, which will inevitably be passed on to the consumers. This is a regressive taxation regime, which enriches the rich while burdening the ordinary citizens. As per the Statement of Revenue Foregone, total tax concessions reached over Rs. 5 lakh crore in 2010-11, with corporate tax exemptions totalling over Rs. 88000 crore. The tax-GDP ratio, which had reached almost 12% in 2007-08, has declined since then to around 10% in the current Budget. At a time when income inequalities are rising fast, a decline in tax GDP ratio shows the waning commitment towards redistributive policies and a throwback to trickle down economics.

No concrete steps to unearth the huge sums of black money stashed in offshore tax havens were announced. The DTAA (Double Taxation Avoidance Agreement) with Mauritius, through which 42% of FDI inflows into India is routed, is the biggest conduit of tax evasion by MNCs and Indian corporates. Rather than plugging such channels, the Finance Minister is signing more tax avoidance treaties with other countries.

With resource mobilisation taking a back seat, Plan Expenditure as % of GDP in 2011-12 will decrease from what was spent last year. The Budget Support for the Central Plan in 2011-12 has increased by only 12% over 2010-11, while nominal GDP has increased by 14%. Such squeeze in real expenditure marks all the major developmental heads. The flagship schemes of the social sector have been neglected in the budget and social sector spending is slated to fall in real per capita terms. The allocation for NREGS has fallen by Rs. 100 crore, despite a claimed increase in the wages. The provisions for ICDS are far below the estimates for full universalization as directed by the Supreme Court.

Agricultural growth has been below 3% on average in the first four years of the Eleventh Five Year Plan, despite a target of 4%. It is shocking in this backdrop that the budget provision for the Agriculture Department has been cut from last year. The allocations for the welfare of women, minorities, dalits and tribals are thoroughly inadequate. Capital expenditure is projected to fall from 1.7 per cent of GDP to only 1.2 per cent, which will affect basic infrastructure for the people.

The announcement of impending legislations directed at liberalizing the sensitive financial sectors like insurance, banking and pension funds is meant to appease foreign finance capital. Further liberalization of rules for Indian Mutual Funds accessing foreign investors would also facilitate the flow of speculative finance into the economy. Greater inflows of such speculative finance at a time when India's current account deficit is widening, does not augur well for the health of India's economy.


THE UNION BUDGET 2011-12


Presenting Union Budget 2011-12 in Lok Sabha, Finance Minister Pranab Mukherjee focused on taming inflation, price rise, and increasing investments in infrastructure and agriculture.

Pranab said inflation has remained above the comfort level for most part of the current fiscal and is another focus area. The overall inflation at 8.23% is higher than the comfort level of the Reserve Bank at 5-6%, he said. The minister added that food inflation had also touched a high of 18.23% in December, but moderated to 11.49 % in mid-February.

Budget Highlights:
# Could have done better
# Growth broad based
# Agricultural rebound
# Double digit growth in services
# Food inflation 20.2% in Feb 2010 to 9.3% in January 2011
# Fiscal consolidation impressive
# Idea to improve deliverance, PDS and governance
# Need to ensure private investment
# Development needs to be inclusive
# Service sector continues to grow in double digits
# Resources not a major concern in medium term
# Quality of outcome needs to improve
# Leakages need to be plugged in schemes
# Have to fight corruption collectively
# Taking steps to simplify tax procedures
# This Budget a transition towards more transparent economy in India
# Stronger fiscal consolidation needed
# In 20-11, agriculture grew by 5.4%, industry by 8.4% and services by 9.6%
# Economy showed remarkable resilience to domestic and international shocks
# GDP growth at 8.2% last year
# GDP growth to be 8.6% in FY 11
# GDP growth to be around 9% in FY 12
# Agriculture has grown at 5.4%
# Industry has grown at 8.1%
# Services sector had grown at 9.6%
# Exports grew at 24.1% in FY 11
# Imports grow at 11.6% in FY11
# Taking steps to simplify tax procedures
# Expect inflation to be lower next year
# Economy showed remarkable resilience to domestic and international shocks
# The 13th finance commission has worked out a fiscal consolidation roadmap
# Combined states debt target of 23.4% of GDP
# Public Debt Management of India Bill in next financial year
# Direct Tax Code code enactment in 2011-12, effective from April 2012
# GST decision have to be taken in consonance with states
# Areas of divergence have been narrowed on GST Public Debt Management Agency Bill soon
# Work on model for GST roll out
# GTC, GST will improve governance
# Indian economy on pre-recession growth trajectory
# Budget 2011-12 as transition towards more transparent and result-oriented economic management
# Direct transfer of cash subsidy for kerosene, LPG and fertilizer to BPL
# Nandan Nilikani committee to look at direct transfer
# Some divestment decisions rescheduled
# GST roll out from April 1, 2012
# Considering news fertilizer subsidy policy
# Need To Ensure That Private Investment Revival Is Sustained/li>
# This FY Current Account Deficit Near Previous Year`s Level
# Govt To Retain At Least 51% Ownership Of State-Run Companies
# Discussions On To Further Liberalise FDI Policy
# Need to ensure private investment
# Development needs to be inclusive
# Service sector continues to grow in double digits
# Resources not a major concern in medium term
# Quality of outcome needs to improve
# Leakages need to be plugged in schemes
# Corruption needs to be fought unitedly

Income tax exemption limit raised to Rs.180000


Finance Minister Pranab Mukherjee Monday proposed to enhance the income tax exemption limit to Rs.1.8 lakh (Rs.180,000 or $4,000) for the next financial year, from Rs.1.6 lakh now.

He announced this while presenting the federal budget for the next fiscal.

The minimum alternate tax levied on the corporate sector has, however, been increased to 18.5 percent from 18 percent and the surcharge has been lowered to 5 percent from 7.5 percent.

Mukherjee also said he was proposing a very senior category of income tax payers, above the age of 80, for whom the tax exemption will be up to Rs.5 lakh. The qualifying age limit for senior citizens was being lowered to 60 years from 65 years.

Sunday, February 27, 2011

Chief Minister VS Achuthanandan has dared the opposition leader Oommen Chandy to submit a written complaint against his son



Chief Minister VS Achuthanandan has dared the opposition leader Oommen Chandy to submit a written complaint against his son seeking a probe into his alleged links with the sandalwood mafia

Five killed in Kozhikode bomb explosion



Five persons have been killed while making bomb at Narikkattiri near Nadapuram in Kozhikode. The deceased are identified as Riyaz, Shameer, Rafeez and Shabeer. Four persons critically injured in blast have been taken to hospital.

Saturday, February 26, 2011

Domestic help dies; Murder case registered against advocate & wife


The Aluva police today registered a case for murder against advocate and his wife in connection with the death of an 11-year-old girl from Tamil Nadu, who working as a maid in their house at Aluva

Hajj registration begins from March 1



After a meeting in Delhi, the Central Hajj committee decided to begin the Hajj registration by March 1st.

Present proofs, will take action: VS



Speaking to media at Kottayam, Chief Minister VS Achuthanandan said that those who are raising allegations against his son should come forward to prove it with evidences

Friday, February 25, 2011

Railway Budget 2011-12: Highlights


Take a look at the highlights of the Railway Budget 2011-12 presented by Mamata Banerjee in the floor of the House today.

Railway Budget: Mamata reserves the best for Bengal


Take a look at the highlights of the Railway Budget 2011-12 presented by Mamta Banerjee.

RAILWAY BUDGET 2011 - 2012 HIGHLIGHTS


Six new suburban projects for Hyderabad
47 additional suburban service for Mumbai
Trains to be 12 car from present 9 cars
New suburban services for Chennai and Kolkata too
Peak time local trains: Bardmann to Howrah, Hyderabad-Faluknama, Delhi-Ghaziabad
Restructuring of all cadres being undertaken in the Railways
One core committee to monitor Kolkata Metro project
34 new services for Kolata Metro this year
Survey for more lines to expand Metro network
Integrated suburban rail network to be developed in Mumbai, Chennai, Hyderabad, Ahmedabad and Kolkata
Enthused by the high number of medals in international sports competitions won by Railways
A Sports Cadre will be set up in the department
Restructuring of all cadres being undertaken in the Railways
Ticket booking rates to be reduced by Rs 10 for AC class and Rs 5 for non-AC class
Rail accident rate has declined from 0.29% last year to 0.17% now
To meet the demand for coaches, rail based industries to be set up under Vision 2020
Real time train operation system developed in association with IIT Kanpur
Dedicated eight corridor on track
Double decker container trains from Gujarat to inland port in Gurgaon
2011 declared as green year
Go India smart card on pilot basis – single window facility for buying tickets for long distance, Metro etc
Rail yatri sevak service – trolly service in major metros
New Super AC Class of travel to be introduced
Centre of excellence in software in Darjeeling
Track-machine industry to be set up in Uluberia, West Bengal
Rail industrial park in Jalpaiguri and Nandigram, in West Bengal
Rail industrial park in New Bongaigaon, Assam
First coach from the new rail factory at Rae Bareli to roll out in next three months
Proposal to set up metro coach factory near Singur in West Bengal
A 700 MW gas based power plant to be set up at Thakurli, Maharashtra
Track-machine industry to be set up in Uluberia, West Bengal
Sukhi Ghar Yojna: 10,000 shelters for the poor
New rail line capacity to be increased to 700 kms
474 kms for doubling
PM Rail Vikas Yojna will include all the rail projects under the 12th Plan
Gas based power plant in Maharasthra
Rs 57560 plan investment
To raise Rs 10,000 cr via tax bonds
Focus on safety
Stop rail rook agitations
Anti-collision devices to be installed in more zones
175 ROBs this year
Two new projects and two new trains for states where trains run trouble free
All-India security helpline set up
Strong economic focus with social inclusion
Main focus on common man – urban, small town and rural
Two pronged approach
Rail services comparable to emergency services
85 proposals received under PPP mode
We are aware of acute sense of social responsibility
Set up Rail based industries
Wagon factory in Orissa
Will set up Rail coach factory in Palakkad, Kerala
Component factory in Cherthala, Kerala
Tunnel & bridge engineering institute in Jammu
Metro coach factory in Kolkata
Railways introduce new infrastructure policies
Railway to set up Bridge factory in J&K
Diesel Locomotive Factory in Manipur
Track machine industry at Purulia
Rail industrial park in Jalpaiguri and New Bongaigaon

Thursday, February 24, 2011

Newspapers gave 'Rice at Rs 2' news in obit page: Divakaran



Minister C Divakaran has commented that some of the newspapers limited the publishing of news on the decision to distribute rice at Rs 2 per kg to the obit page

Wednesday, February 23, 2011

UDF plans to create a smokescreen and escape: Kodiyeri


Kodiyeri Balakrishnan, as a reply to the opposition's claim that VS's son took bribe from the sandal mafia, has accused the UDF of trying to create a smokescreen and escape unable to counter the allegations raised against them

Rice at Rs 2 per kg for all ration card holders: Decision today



The government is mulling over the distribution of rice to all ration card holders irrespective of their APL/BPL status at Rs 2 per kilo. A final decision on this would be taken at today's cabinet meeting

Tuesday, February 22, 2011

Monday, February 21, 2011

Actress Aranmula Ponnamma passes away



Thiruvananthapuram: Veteran actress Aranmula Ponnamma died at a private hospital here today at 6.00pm,she was 96. Ponnamma, who earned the epithet 'mother of Malayalam cinema' in a career spanning six decades, is survived by two daughters.The actress began her career acting opposite veterans like Thikkurissi Sukumaran Nair and went on to play mother to yesteryear actors like Sathyan, Prem Nazir and also to the current superstars like Mohanlal and Suresh Gopi.Ponnamma has won several awards including the state's prestigious J C Daniel lifetime achievement award in 2006 and the national and state awards for the film 'Kathapurushan' directed by Adoor Gopalakrishnan in 1995. She started her career as a stage artiste in 1943 and her debut film was 'Sasidharan' (1950) in which she played the mother of late actress Miss Kumari

Sunday, February 20, 2011

Balakrishna Pillai hits out at Mani


R Balakrishna Pillai, who is serving jail term in the Idamalayar case, in his autobiography published in Mangalam weekly, has raised a serious allegation against KM Mani citing Mani caused an additional burden to the exchequer far exceeding contract amount

Congress-Kerala Congress workers clash


The Congress-Kerala Congress workers clashed in Thodupuzha over KM Mani's statement that PJ Joseph would contest from Thodupuzha in the upcoming polls

Saturday, February 19, 2011

Attukal pongala -- Live!


Attukal Pongala ritual held at the Attukal Bhagavathy Temple in Trivandrum. This is the largest annual gathering of women in the world.

Attukal Pongala today


Millions of women will gather at Attukal temple to participate in the Attukal Pongala ritual, the largest annual gathering of women in the world

Friday, February 18, 2011

Kerala Mochana Yatra leader goes to jail: VS


VS Achuthanandan has commented that a leader who was part of Kerala Mochana Yatra is going to Poojappura central jail. He added that those yatras in which the corrupt and the tainted take part are being looked at with contempt by the common man.

Thursday, February 17, 2011

Balakrishna Pillai surrenders before court


The leader of the Kerala Congress (B) and former Minister R. Balakrishna Pillai surrendered before the Idamalayar Special Court here on Friday. Pillai was sentenced to one years rigorous imprisonment and a fine of Rs 10,000 in the Idamalayar case by the Supreme Court.

Pillai had left for Ernakulam from his residence in Kottarakkara on Thursday evening. On the way, accompanied by scores of his partyment, he visited the headquarters of NSS in Parunna near Chenganassery and prayed at the tomb of the NSS founder Mannathu Padmanabhan.

Pillai said he would move a review petition against the Supreme Court sentencing him for one year's rigorous imprisonment and a fine of Rs 10,000.

Six people including five school children and their ayah died when a school van carrying students of Petta Little Hearts School fell into a river at Parvathi Puthanar in Thiruvananthapuram.

Five nursery students were killed when an Omni van carrying them to school plunged into a river here today morning. The dead children were LKG, UKG and playschool students of the Little Hearts Kindergarten at Pettah. They have been identified as Achu, Ujwal, Arsha Baiju,Malavika and Jinu Asimuddin. Bindu, an ayah of the kindergarten was also killed in the mishap which occurred a little after 9.20am.

Reports quoting eyewitnesses said the van was over speeding and plunged into the Parvathi Puthanar river near the Karikakkom temple after hitting a boulder as it was giving way to another vehicle coming in the opposite direction. The mishap took place while the van was negotiating a curve on way to the school.

According to school authorities, there were 9 kids in the van besides the driver Sumesh and ayah Bindu. Though usually 11 kids use the van, two of them did not turn up today.

Four children, who were rescued from the waters, have been admitted to the KIMS, Lords, and SAT hospitals here. The driver has been admitted to the Medical College hospital and is said to be out of danger. Locals say he had surfaced from the shallow waters with a kid in hand.

Riswan and Rafiq, two students admitted to Lords are said to be out of danger. Two others Malavika and Janaki are in the intensive care unit of KIMS hospital. The condition of Janaki is out of danger.

Locals and fire force officials are still searching the river to see if there are any more kids. What made the rescue operations difficult was the fact that the water surface was covered with the African weed. The water body which used to be river is now more of a drain with the city's garbage flowing into it.

School van falls into river; Kills 6


Six people including five school children and their ayah died when a school van carrying students of Petta Little Hearts School fell into a river at Parvathi Puthanar in Thiruvananthapuram

Wednesday, February 16, 2011

PM regrets 'ignoring' VS in his Kerala trip


Prime Minister called up Kerala CM VS Achuthanandan last night and expressed his regret over the 'insult' faced by VS as reported by media during his state visit.

Monday, February 14, 2011

Disregard for VS: Assembly passes resolution against PM's act


The Kerala Assembly has passed a resolution on disregarding VS Achuthanandan and Governor during the PM's visit to the state for the inauguration of Vallarppadam terminal. This would be sent to the centre soon.

Congress leader V.M.Sudheeran slams NH development project


Congress leader VM Sudheeran has stated that there is yet another scam in waiting in the state in connection with the National Highway development project.BY VAKKOMSEN

Sunday, February 13, 2011

Congress MP. K.Sudhakaran alleges bribery charge against Supreme Court Judge




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K Sudhakaran and KB Ganesh Kumar at a public rally have come out strongly against the court judgment against Balakrishna Pillai in the Edamalayar case


K Sudhakaran and KB Ganesh Kumar at a public rally have come out strongly against the court judgment against Balakrishna Pillai in the Edamalayar case.

Saturday, February 12, 2011

Wednesday, February 9, 2011

KERALA BUDGET 2011 - 2012 .HIGHLIGHTS



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Monday, February 7, 2011

Train rape victim succumbs to injury: Railway high level meet at Tvm


In the wake of the death of twenty-three-year-old Soumya, who was brutally attacked and raped after being thrown out of a running train, a high level meet has been called by the railway to discuss the security of women in the train
BY VAKKOMSEN

ISRO SPECTRUM DEAL. BY VAKKOMSEN

ISRO SPECTRUM DEAL


After the expose ISRO Spetum deal, the Central government said on Monday that it was in the process of reviewing the deal between the Indian Space Research Organisation's commercial arm Antrix Corporation Ltd. and the Bangalore-based Devas Multimedia Pvt. Ltd. that gave Devas free access to scarce spectrum worth an estimated Rs. 2 lakh crore.
“The agreement entered into by Antrix and Devas on January 28, 2005 is already under review by the Department of Space and the government will take whatever steps necessary to safeguard public interest. A decision on the matter is likely to be taken soon,” ISRO said in a statement that was released here as well as in Bangalore. ISRO comes under the Department of Space, which is under the charge of the Prime Minister.
The Comptroller and Auditor General of India is currently auditing the 2005 agreement between the two firms that gives Devas Multimedia unbridled use of 70 MHz of spectrum, used for high-speed terrestrial mobile communications, over a 20-year period.
Reacting to the reports, the CAG said the audit of certain activities of the Department of Space was under way. “Very preliminary queries have been raised which are yet to be replied by that department. Since the audit is at very preliminary stage, it can by no stretch of imagination be concluded that information as given in the media reports are findings of this department,” the CAG said.
The DoS statement also referred to this clarification by the CAG.
Interestingly, the Law Ministry had already asked the Department of Space to nullify the deal between Antrix and Devas after the DoS had sought its view on the matter. Even the Space Commission in July 2010 had strongly objected to the deal and recommended scrapping of the agreement between the two companies.
When contacted, the Telecom Regulatory Authority of India (TRAI) refused to comment on this particular case. However, a senior official pointed out that the delay in a thorough review of the usage of spectrum being held by various government agencies is the root cause of the mess.
“In May last year, we had forwarded our recommendations asking the Department of Telecommunications [which is the custodian of spectrum in the country] to allow it to review of the usage of spectrum available with various government agencies,” a TRAI official said.
“We wanted to find out the spectrum actually in use by government agencies and draw up a suitable schedule for release of spectrum for telecom sector for speedier roll out of more efficient telecom and broadband services in the country,” the official said. The government is yet to accept the recommendations.
Out of the total 1,161 MHz of available spectrum in the identified bands, 40-55 per cent is with the government agencies including the Defence and the DoS and only 85 MHz of radio waves is likely to be available by 2014. This is despite the fact that the telecom sector is facing severe dearth of spectrum.