- Front Page / NATIONAL [The Hindu]
- SC orders audit of 30 lakh NGOs
- NGT panel to inspect major waste generators
- Make solar rooftops mandatory
- Cash for land is just not done: SC
- Effects of Endosulfan devastating: SC
- Editorial/OPINION [The Hindu]
- ECONOMY [The Hindu]
- India opposed to inclusion of ‘new issues’ in WTO
- Benefits of demonetisation uncertain in long run
- H1B visa reform to increase IT firms’ margin pressure
- Indian Express
- Live Mint
Click here to Download 9 PM Daily Brief PDF (11th Jan. 2017)
Front Page / NATIONAL [The Hindu]
[1] SC orders audit of 30 lakh NGOs
Context
SC issues directions to the government regarding funding of NGOs
What has happened?
SC has issued directions to the government to audit nearly 30 lakh NGOs which received public funds but consistently failed to explain how they spent the money.
Only few NGOs file returns
Though public funds to the tune of thousands of crores are spent on NGOs and voluntary organisations annually, the CBI submitted that only about three lakh of about 32 lakh NGOs file their balance sheets with the government.
SC’s observations
- Mere blacklisting: SC said that the only action so far against those who have failed to file their balance sheets is blacklisting. It is necessary to start criminal and civil action by the Central government and CAPART (Council for Advancement of People’s Action and Rural Technology)
- Unaware of General financial rules: At one point, the court was taken aback when it found that despite the large amounts drawn from State coffers and given to NGOs, the government seemed to be unaware that General Financial Rules, 2005 mandate a regulatory mechanism for them. “This is your [government] money and you have no record of how they [NGOs] use it?” Chief Justice Khehar asked the government
SC ordered that
- Prosecution: It ordered that any NGO found to have cooked its books or indulged in misappropriation should be subject to immediate criminal prosecution. Besides, the government should initiate civil recovery proceedings against such rogue organisations
- Frame guidelines: By next hearing, the government should have framed guidelines for their accreditation, the manner in which these organisations should maintain their accounts and the procedure for recovery in case they fail to submit their balance sheets.
Compliance report
The Supreme Court demanded that the government file a compliance report by March 31, 2017.
[2] NGT panel to inspect major waste generators
Context
The NGT expressed concern that public authorities lacked infrastructure and appropriate technical capacity to handle such huge quantity of waste
What has happened?
The National Green Tribunal (NGT) has constituted a committee to inspect major waste generators in the Capital, including five-star hotels, malls, hospitals, educational institutions with hostels and housing societies.
Members of the committee
The panel will include
- Representatives of the ministries of Environment and Urban Development, Director General of Health Services, MCI, the DDA, the civic bodies, the Delhi government, the CPCB, the Railways and the DPCC
- The committee also comprises four independent experts
NGT’s concern
The NGT expressed concern that public authorities lacked infrastructure and appropriate technical capacity to handle such huge quantity of waste
NGT Bench observed that
- Mass generators of waste cannot be equated to households generating trash: Generators of mass municipal solid waste and sewage must ensure strict enforcement of the municipal solid wastes (Management and Handling) Rules, 2000.
[3] Make solar rooftops mandatory
Context
CSE: Solar panels on rooftops should be made mandatory for new residential societies.
What has happened?
Solar panels on rooftops should be made mandatory for new residential societies, recommended the Centre for Science and Environment (CSE) in a policy brief
CSE’s findings
- After studying the electricity consumption of five residential societies in Delhi, Jaipur and Ghaziabad, the CSE found that by switching from diesel generator (DG) sets to solar power for backup, the facilities would be saving lakhs of rupees every year
- Discoms were aiding rooftop solar systems to meet the obligations for renewable energy,but most of these were being installed on institutional and commercial buildings
- Need for awareness& giving financial incentives: RWAs did not appear to be interested in investing in the solar infrastructure despite potential savings. There was a need for greater awareness of solar power options among Resident Welfare Associations (RWAs). Fiscal incentives, including rebate on building tax, could be considered in order to encourage the switch to solar power
CSE recommended
- Make solar rooftops a norm: Solar rooftops should become a part of the applications for construction approvals, with the builders keeping a certain portion of the plinth area “shadow-free” to aid solar panels
- Complete ban on DG sets: A total ban on DG sets in new multi-storied houses should be considered. This would not apply to the essential common areas
- Financial support to Discoms: Solar rooftop can cut discoms revenue since their most profitable customers may partly or fully migrate to solar. Therefore, it is vital that discoms be financially supported to encourage them to push solar rooftop
- Incentivizing the shift from DG sets: Though there is a capital subsidy of 30 per cent for solar rooftop systems that are connected to the grid, there is a need to give incentives for switching from DG sets to solar systems with battery backup.
[4] Cash for land is just not done: SC
Context
SC agrees to hear the plight of the landless victims of the SardarSarovar Project
What has happened?
Agreeing to hear the plight of the landless victims of the SardarSarovar Project in detail, the Supreme Court on Tuesday observed that giving cash instead of land to farmers who lost their fertile lands to the mega dam project is “tentatively” not acceptable
Petitioner’s contention: Land for land
Appearing for Narmada BachaoAndolan, advocate Sanjay Parikh said that the farmers are left with neither land nor livelihood despite there being binding orders from the Supreme Court upholding their right to land.
- Mr. Parikh had submitted that as per the Narmada Tribunal Award and the Supreme Court verdicts, all adult sons were indisputably entitled to five acres of cultivable and irrigable land, and any discrimination would lead to the violation of the constitutional rights of the oustees.
Detailed hearing
CJI agreed for a detailed hearing on January 19thafter government sought authorities sought time for preparation
Backdrop
It should be noted that earlier the apex court had dismissed an application by the Madhya Pradesh government and the Narmada Valley Development Authority for a modification of the apex court judgments of 2000 and 2005 upholding land rights for adult sons of the SardarSarovar Project-affected farmers
- SC Bench said that the State’s application suffered from gross delay, after having been filed several years since the Supreme Court gave its verdict on the issue.
[5] Effects of Endosulfan devastating: SC
The Hindu
Context
Important decision on Endosulfan by SC
What has happened?
Describing the effects of Endosulfan as “devastating,” the Supreme Court has directed the Kerala government to release the entire compensation to over 5,000 victims, mostly newborns, and their families in 3 months
Bench’s directions
A three-judge Bench led by Chief Justice of India J.S. Khehar said
- The State of Kerala can initiate legal proceedings to recover the compensation money from pesticide companies responsible for the production and sale of the highly controversial but cheap agrochemical
- The State government can also approach the Central government
Previous SC directions
In 2011, the Supreme Court ordered the immediate ban of Endosulfan while disregarding pleas of over 150 private export companies.
- It had said “any decision affecting human life, or which may put an individual’s life at risk, must call for the most anxious scrutiny
What has Kerala government done so far?
Kerala has earmarked over ₹ 180 crore for the payment of compensation to victims, some of whom are terminally ill from the effects of the pesticide which was aerially sprayed on cashew plantations adjoining habitats where the victims are located
- Compensation paid: The State has paid cash compensation ranging from ₹ 2 lakh to ₹ 5 lakh to the victims. It said the entire rehabilitation scheme, including a multi-speciality hospital, would cost over ₹ 500 crore
- Kerala government has requested centre to spare Rs 486 crore
Read More: The Hindu article on devastation caused by Endosulfan
Editorial/OPINION [The Hindu]
[1] Taking ‘Cold Start’ out of the freezer?
Context
General BipinRawat’s reference to Cold Start raises vital questions about what he means by the phrase and whether he was authorized to speak on the matter by the government.
What has happened?
Gen Rawat, the new army chief, in an interview given to India Today, has acknowledged the existence of army’s Cold Start strategy or doctrine
Military doctrine
A military doctrine helps standardize operations, facilitating readiness by establishing common ways of accomplishing military tasks. Its objective is to foster initiative and creative thinking and links theory, history, experimentation and practice.
What is Cold Start doctrine?
Cold Start is a military doctrine developed by the Indian Armed Forces for use in a possible war with Pakistan.
- The main objective of the Cold Start Doctrine is to launch a retaliatory conventional strike against Pakistan inflicting significant harm on the Pakistan Army before any international community could intercede, but not in way Pakistan would be provoked to make a nuclear attack
- Cold Start Doctrine was developed as the limitations of the earlier doctrine – Sundarji Doctrine – was exposed after the attack on the Indian Parliament
Crux of cold start
- Pakistan must not enjoy the luxury of time. Cold Start aims for eight “Battle Groups”, comprising independent armoured and mechanised brigades that would launch counterattacks within hours.
- These Battle Groups will be fully integrated with the Indian Air Force and naval aviation, and launch multiple strikes round the clock into Pakistan.
- Each Battle Group will be the size of a division (30,000-50,000 troops) and highly mobile unlike the strike corps.
- Ominously for Pakistan, the Battle Groups will be well forward from existing garrisons. India’s elite strike forces will no longer sit idle waiting for the opportune moment, which never came in the last wars
- Although its operational details remain classified, it appears that the goal would be to have three to five Battle Groups entering Pakistani territory within 72 to 96 hours from the time the order to mobilise is issued
- Also, rather than seek to deliver a catastrophic blow to Pakistan (i.e., cutting the country in two), the goal of Indian military operations would be to make shallow territorial gains, 50-80 km deep, that could be used in post-conflict negotiations to extract concessions from Islamabad
- Cold Start also works to undermine the much smaller Pakistani economy. According to the Pakistani media, the threat of the Indian Cold Start doctrine and increase in India’s defence budget has prompted the Pakistan government to sharply increase its defence budget, further increasing the strain on that country’s fragile economy.
Beauty of cold start
The beauty of Cold Start is it may never have to be used. It screws with the Pakistani military’s mind and forces the generals to spend time and scarce resources on finding ways to stop an Indian blitzkrieg
What if Pakistan uses tactical nuclear warheads on Indian armed columns progressing towards its cities under Cold Start?
If at all Pakistan uses tactical nuclear warheads on Indian armored columns thundering towards its cities, it would end up devastating its own Punjabi heartland. Most Pakistani cities are close to the border and would become uninhabitable while India would lose only a small part of its army
Gist of Cold start
In simple terms, Cold Start aims at finishing off with Pakistan before our political leadership loses its nerve and starts thinking of a truce or before international mediation stops war midway.
- In normal times the mobilization time of Indian army’s strike corps takes time as it is located in central India. Cold Start aims to reduce the time to few hours
Genesis of Cold Start
The perceived failure to mobilise the army’s Strike Corps in a timely fashion after the December 2001 attacks on Parliament was the impetus for Cold Start
Stance of Indian government
Official stance on Cold start has been the subject of extensive debate and controversy since it was first discussed in 2004. The idea has never been formally accepted by the Indian government
How Cold Start prompts Pakistan to build upon its nuclear arsenal?
The “threat” posed by Cold Start has been repeatedly cited by Pakistani authorities as proof of India’s hostile intentions which in turn has provided a justification for Pakistan to build up its nuclear forces, both increasing the sheer size of its nuclear arsenal (which carries its own risks of theft and nuclear terrorism) and developing lower-yield nuclear warheads and short range missiles, so-called tactical nuclear weapons, which are aimed at deterring — or in the worst case, defeating — a limited Indian military incursion
Can Indian Army pull it off?
Author states that there is no public evidence that India remotely has the capability to adopt or execute such a doctrine.
- The army simply lacks the materiel and organisation to implement the more aggressive versions of Cold Start
- It is not at all clear, for example, that the Indian Army at present possesses sufficient superiority in numbers of troops and armored vehicles in the vicinity of the International Border to be able to overcome the Pakistan Army’s defensive and geographic advantages in a short conflict
- Obsolete equipment and critical shortages of ammunition and air-defence assets raises serious questions about the army’s ability to implement a Cold Start-style operation at all
- Sustaining offensive operations in Pakistan requires joint operations with the air force. Not only does the Indian Air Force lack the kind of close air support capability Cold Start would require, but army-air force cooperation is marred by inter-service dysfunction.
Author’s contention
Author points out that,
- Reviving cold start may markedly escalate tensions in bilateral relations with Pakistan without necessarily delivering a clear benefit, since there is still no evidence that India has the required capabilities to implement anything resembling Cold Start.
Conclusion
Author concludes by saying that it is time for both the army and the government to clarify what precisely its conventional doctrine is by identifying its operational and strategic objectives and how it fits into India’s larger strategy to deter major militant attacks on the homeland.
[2] Mind the gender gap
Context
Despite the successes, better implementation and planning are needed to ensure that these policies percolate right down to the last woman in the most remote parts of the country.
Issue: Addressing gender disparity via Gender Responsive Budgeting (GRB)
Gender equality
Justifying her stance that the world is slowly recognising the importance of gender issues, author directs our attention to the fact that Gender equality is one of the 17 goals amongst the Sustainable Development Goals, to “transform our world”.
- Moreover, women safety and empowerment were two out of many core issues around which the 2014 LS elections in India were fought
Budgetary concerns
Author states that the lack of targeted resources is often stated to be the biggest reason behind the sluggish progress in furthering the gender agenda. Therefore, it is important that India’s budget priorities reflect its commitment to invest in women and girls.
Problems
Here are few of the recognised challenges
- Women’s declining labour participation
- Under-representation in Parliament
- Skewed child sex ratio
- Prevalent gender-based violence
Scale of the problem in India
- A poor rank: The World Economic Forum’s annual Global Gender Gap Report ranked India 87 in terms of gender equality in economy, education, health, and political representation
Gender Responsive Budgeting (GRB)
Author points out that to solve the above problems, India adopted the GRB in 2005
- Rationale: The rationale for gender budgeting arises from recognition of the fact that national budgets impact men and women differently through the pattern of resource allocation. Women, constitute 48% of India’s population, but they lag behind men on many social indicators like health, education, economic opportunities, etc. Hence, they warrant special attention due to their vulnerability and lack of access to resources. The way Government budgets allocate resources, has the potential to transform these gender inequalities.
- Gender-responsive planning and budgeting ensures that fiscal resources are generated and allocated in a way that affects women and men equitably
Gender Budgeting
Every annual budget since 2005 has included a statement that lists out two parts. Sixteen states have also embraced this exercise. There is
- Part A, which reflects ‘Women Specific Schemes’, namely, those which have 100 per cent allocation for women
- Part B, which reflects ‘Pro Women Schemes’, namely, where at least 30 per cent of the allocation is for women
GRB & improvement in indicators
Studies substantiate the positive link between GRB and improved indicators for women.
- IMF Study: For instance, a recent International Monetary Fund (IMF) study found that States that employ GRB also show better female to male school enrolment ratios. Further, it was observed that GRB also has a positive impact on infrastructure spending
Problems
- Declining & Stagnant allocations: Author states that in recent years the allocations have either remained stagnant or have been declining
Budget 2016-17: Author cites the 2016-17 Budget to prove her above point.
- While the Ministry of Women and Child Development and National Commission for Women saw nominal increases, the scheme meant for implementing the Domestic Violence Act did not receive any allocation
- Decline in ministries and departments under GRB: There was a decline in the number of ministries and departments that fall under GRB
- Decentralization of funding under GRB: The budget also initiated the decentralization of funding in GRB, thus shifting the onus for budgeting and implementation from the Central Ministry to State counterparts. While this did empower the States to come up with women-specific policies as per their respective challenges, the obvious downside was the risk that States could choose to not prioritise gender in their budgeting
What more needs to be done?
Author states that despite successes, better implementation and planning are needed to ensure that these policies reach right down to the last woman in the most remote parts of the country.
- More than mere symbolism: GRB must be viewed as an essential tool to tackle societal inequality that hinders progress instead of a symbolic exercise for pleasing the emerging women constituency
- A more expansive approach: Author states that currently GRB identifies schemes that are exclusively dedicated to women. This approach has restricted the benefits of GRB to a select few schemes. A much better approach would be to look at all the existing schemes via GRB perspective.
For example:Sectors such as energy, urban development, food security, water supply and sanitation continue to operate in isolation, despite having causal interrelationships with women’s empowerment.
Way ahead
Author states that gender budgeting alone is not sufficient to tackle deep-rooted gender disparities.However, policies can be more effective if budgeting takes a broader, gendered approach which includes planning targeted interventionsand monitoring and evaluation mechanisms to ensure implementation.
- Flexible policies: Policies should also be flexible to change based on feedback from the intended recipients
- Incentivizing states: It would also help if the Central government could, through an incentive mechanism, encourage State governments to take up GBR as a priority in their budget layouts.
[3] Reaching out to Africa
The Hindu
Context
Conclusion of India-Africa Forum summit
Issue: India-Africa Forum Summit
Significance of the summit
That 41 heads of state and government from 54 countries in Africa were present at the India-Africa Forum Summit in New Delhi, itself demonstrates the importance both sides attach to mutual ties.
- The summit, which concluded on Thursday, was the largest gathering of foreign dignitaries in New Delhi since the 1983 Non-Aligned Summit.
Africa: important trade partner
Africa is an important trade partner for India.
- Indian energy companies have assets in African countries, and New Delhi exports consumer and capital goods and medicines to the continent
- India-Africa trade was worth almost $70 billion in 2014-15, and Indian companies invested some $30-35 billion in the continent over the past decade
- Higher trade: Chinese trade with Africa is much higher, to the tune of, $200 billion in 2014-15.
- Huge Chinese investment: Besides, China has invested more than $180 billion in Sub-Saharan Africa alone in areas ranging from energy to infrastructure during the period 2005-2015.
Author suggests
- Perfecting the policy: India may not have the resources to beat the level of Chinese investments, but it can certainly do a lot more with proper policy approaches, faster project execution and improved bilateral relations.
- Recent announcement of the $10 billion concessional credit to Africa by India is a right step in this direction
- UNSC reforms: Author states that there’s a convergence of interest for reforming the Security Council. India’s claim is that as the second most populated country and the largest democracy in the world, it deserves a permanent seat in a reformed Security Council. India has also noted that Africa, with more than a quarter of the members of the UN, is not represented in the powerful UN body. Against this background, it is imperative for both sides to speak in “one voice” for Security Council reforms
- Cashing in on the goodwill: Stronger ties with Africa fit into India’s traditional foreign policy setting. The goodwill India enjoys in the continent is a result of the principled anti-colonial positions the country took in the post-Independence era. India should cash in on that goodwill to build a stronger economic and political partnership with Africa in the new century.
Read More: India-Africa Forum Summit
ECONOMY [The Hindu]
[1] India opposed to inclusion of ‘new issues’ in WTO
Context
Ahead of a special meeting of trade ministers on the sidelines of the forthcoming World Economic Forum at Davos, India opposed attempts by some developed nations to introduce ‘new issues’ into the formal agenda of the World Trade Organisation (WTO)-level negotiations
World Economic Forum
The World Economic Forum (WEF) is a Swiss nonprofit foundation, based in Geneva
- Brief history: The forum was founded in 1971 by Klaus Schwab, a German-born business professor at the University of Geneva. First named the “European Management Forum”, it changed its name to the World Economic Forum in 1987 and sought to broaden its vision to include providing a platform for resolving international conflicts.
- Mission: Recognized by the Swiss authorities as an international body,its mission is cited as “committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”
- Annual meet at Davos: The Forum is best known for its annual meeting at the end of January in Davos, a mountain resort in the eastern Alps region of Switzerland. The meeting brings together some 2,500 top business leaders, international political leaders, selected intellectuals, and journalists for up to four days to discuss the most pressing issues facing the world
Note: WEF brings out the yearly Global Competitiveness report
What has happened?
Ahead of the annual meet at the Davos, that is scheduled to take place between January 17 and 20, India has opposed attempts by some developed nations to introduce ‘new issues’ including e-commerce and investment into the formal agenda of the World Trade Organisation (WTO)-level negotiations on liberalisation of global trade.
Backdrop
India had on earlier occasions too rejected the attempts of the developed world to make such ‘new issues’ part of the ongoing Doha Round talks saying it will ‘dilute’ the ‘development agenda’ of the negotiations.
[2] Benefits of demonetisation uncertain in long run
Context
Short-term pain of the government’s demonetisation exercise could outweigh long-term gains that it said were still ‘uncertain.
What has happened?
Fitch, a rating agency, in a report titled, “Benefits of demonetisation are highly uncertain”, has said that the short term pain of the demonetization might outweigh the uncertain long-term gains of the move
Observations made in the report
In its report, the rating agency has said that,
- Since demonetisation was a one-off event, people in the informal sector would still be able to use the new high-denomination notes and other options, like gold, to store their wealth
- There are no new incentives for people to avoid cash transactions. The informal sector could soon go back to business as usual
- There were uncertainties over the impact on the banking sector as demonetisation could also affect the ability of some borrowers, especially SMEs, to service their loans, with negative effects on bank asset quality
- The positive impact on funding conditions will depend on deposits remaining in banks beyond the next few months. There is nothing to prevent them being withdrawn again
- The intentions behind demonetisation were positive and in keeping with broader reform efforts, but the short-term pain might outweigh the uncertain long-term gains.
[3] H1B visa reform to increase IT firms’ margin pressure
The Hindu
Context
IT firms’ margins will come under more pressure if the US government clears the H1B visa reform Bill — ‘Protect and Grow American Jobs Act’
Proposal
The key proposal in the Bill is to
- Increase the salary of H1B visa holder to USD 100,000 (Rs 66 lakh) from USD 60,000 per annum The salary level that has been proposed is significantly higher than the average employee cost of Indian IT companies of under Rs 1 million (ranges between Rs 3 lakh to Rs 5 million)
- The removal of an exemption of having a master’s degree: The removal of the exemption of possessing a master’s degree to qualify for a H1B visa if implemented will reduce the talent pool qualifying for such visas and in turn result in either increased employee cost for hiring employees with higher qualification or subcontract work, both of which would increase the cost of operations and result in lower profit margins
Backdrop
Indian IT companies generate around 55-60 per cent of the revenue from the US. The onsite proportion of revenue exceeds the offshore portion.
Indian Express
[1] Central To The Market
Context
Long-term investments in social sector are essential for growth, political stability.
Give it a go-through once.
[2] An autonomy policy
Indian Express
Context
Demonetisation process raises troubling questions over the way government has treated RBI. Central bank needs to assert
A fairly simple article. It throws light on one of the many aspects of demonetization move by the government. One of those is the damage done to the autonomy of the RBI and the perceived impact on its credibility.
Why is credibility of the central bank critical?
It is critical because the stability of the economy is hinged on it and not just in the eyes of global investors and rating agencies, but also from the perspective of the entities the RBI regulates.
Conclusion
Author concludes by saying that RBI needs to reclaim the space vital to health of the institution.
Live Mint
[1] Time to revamp the tax administration
Context
The tax department will now have to mine a vast volume of data to zero in on accounts that have been used to deposit unaccounted cash.
Issue: Demonetization’s aftereffects
Costs & benefits
Author states that the cost and benefits of the demonetization are still being debated
- Costs: In terms of costs, economic indicators such as auto sales and purchasing managers’ indices indicate that economic activity has been hit by the cash crunch. However, the data on tax collection suggests that the impact could be limited
- Benefits:When it comes to benefits, assessing the real gains in terms of original intended purpose of the move i.e. to attack the black money stored in cash, would be a tricky process. And the burden of it will fall on a tax administration that is ill-equipped for it
- Success of the move: Author states that the success of demonetization in terms of arresting black money would depend on the number of old notes not returned to the banking system because,
- Such notes reflect the black money that couldn’t be laundered or couldn’t be deposited into banking system on account of it being illegal
- Success of the move: Author states that the success of demonetization in terms of arresting black money would depend on the number of old notes not returned to the banking system because,
Note: It should be noted here that above fact doesn’t mean that all the notes that have returned to banking system are not a part of black money
Difficulties before ta administration
Author states that it will now be the responsibility of the tax administration to sift through volumes of data to detect unaccounted deposits made in the bank accounts during the demonetization exercise. This will not be easy because,
- Increase in workload and prospective litigation: It will substantially increase the workload and can lead to litigation
- Pressure on tax infrastructure: The department will have to handle the entire exercise with care and avoid causing discomfort to honest taxpayers. This will put enormous pressure on the existing capability and infrastructure of the tax department
Existing situation
A recent Mint report noted that
- Pending cases: About 390,000 direct tax cases are pending across various forums and an internal committee has suggested that the department should reduce scrutiny to give more attention to litigation management
Addressing tax evasion
Author state that without addressing the problem of tax evasion, any attempt to broaden the tax base will be futile. He suggests,
- Enhancing tax administration’s capability: Government must work on a medium-term strategy to enhance the capability of the tax administration
- Big Data analytics: Author suggests using big data analytics like using data generated by the consumption patterns of individuals to identify tax evasion
- Boosting compliance: Simplifying the tax structure and lowering tax rates would help boost compliance.
Reducing generation of black money
- Reforming laws: The government will simultaneously need to work on laws and regulations to reduce the generation of black money in the system. For instance, as has been noted by several experts, high stamp duty in real estate encourages under-reporting, which results in the creation of black money
- Political finance: Bringing transparency to political funding and financing will also help in reducing the generation of black money.
Conclusion
Author states that government has taken the various steps to deal with black money but if it is to build on any of the benefits that have accrued so far, it must make the structural changes to the tax administration needed to minimize the generation of black money and make detection of tax evasion an ongoing process.
[2] Demonetisation and budgets
Context
All in the mind: ArunJaitley will soon be presenting the 2017-18 budget and his well-laid plans may have to incorporate demonetisation-induced changes.
Article speaks about the prospective announcements that could be made during the annual budget
Give it a go-through.
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