A nation's fortunes are linked to its neighbourhood'

Thank you for coming here in such large numbers. It is a real honour to visit Sri Lanka. Over the course of these two days, I will meet people from all walks of life. For me, this is one of the most important meetings in Sri Lanka.This is because no matter how old and strong the relationship is, economic cooperation is often the locomotive that gives it momentum. It is also important because for all of us in our region, the most important priority is transforming the lives of our people. Our path will be determined by our economic choices and the quality of governance. But business enterprises will remain critical for our success.

I often say that a nation's fortunes are linked to its neighbourhood. There are many in India who would argue that India is too large to need her neighbours. There are many in our region who worry that India's economic size will hurt them. I disagree with both views. For one, we all need a stable and peaceful neighbourhood to concentrate on national development.

I also believe that countries do better when the entire region moves together. I said at the SAARC Summit that barriers of boundaries inhibit progress; international partnerships give it speed. That is why we see a rising tide of regional integration and cooperation across the world. Our region is rich in resources. We constitute a large market. We complement each other. Therefore, our cooperation can be of huge benefit to all of us.

There are already powerful examples in south Asia that show us that differences in size is no constraint to beneficial partnerships, if we use our strengths and seize our opportunities. Bhutan benefits from hydropower exports to India. Nepal has significant manufacturing exports to India - in part driven by Indian investors.

Infrastructure, energy, supply chains, modern manufacturing, tourism and services - there are no limits to our possibilities. I hardly need to tell this informed audience about the transformation that has taken place in India over the past 10 months.

There is new purpose and clarity in our policies, a new vision for inclusive development, new standards in our governance and a new level of energy in our economy.

Last quarter, India was the fastest growing global economy. We are confident that we can grow even faster. The progress of one-sixth of humanity is a major economic opportunity for the world. The global confidence in India has been restored. The world's engagement with India is at a new level. But the first claim on us should be that of India's neighbours.

And, I will be happy if India is a catalyst for economic growth in our own region. That is why I speak of a neighbourhood where trade, investment, ideas and people move easily across the borders.

We will work to integrate our markets more. We will make trade smoother and possible through the most direct routes. We will invest in regional connectivity. And, we will share our capabilities in science and technology with south Asia, from advanced medicines to disaster management or space science. As a friend and neighbour, we attach the highest importance to Sri Lanka's economic progress. Sri Lanka is a nation of many achievements and great strengths. It has education, skills and enterprise. It has an excellent location. And, it has won peace now. Sri Lankan businesses have shown that they can compete with the best in the world. Our garments and tea industry know that!

We are pleased to be Sri Lanka's largest trading partner and one its largest sources of investment. Our Free Trade Agreement in 2000 was a pioneering initiative in the region. It has given a big boost to our trade. Sri Lanka's exports to India have grown sixteen times - yes, 16 times - since then. This is impressive by any standards. I know there are concerns here about the huge trade imbalance.

I am prepared to work with you to address them. I want balanced growth in trade. We will try to make it easier and smoother for you to access the Indian market. Our agreement on customs cooperation is a step in that direction.

Indian investments can also upgrade and expand your infrastructure. It is also natural that Indian investors are more likely to invest here because of familiarity and proximity. They are already here. And, I know that there are many large commitments in the pipeline. They are looking for your support.

During this visit, I have been pleased with progress on Sampur thermal power project and the Trincomalee oil farm. That is good for Sri Lanka's energy security and for our partnership.

We have extended visa on arrival facility to Sri Lanka from April 14, 2015. We should do more to connect our countries by air and sea. India and Sri Lanka were, in some ways, better connected in the past than we are now. In the past, a person could buy a rail ticket in Colombo and travel to Chennai by rail and ferry. Air India's decision to launch a direct flight between our capitals will help reverse that trend. Tourism unites people and creates economic opportunities.

In conclusion, let me return to the point I had made in the beginning. India's progress gives us the ability to create opportunities for our neighbours. Our development partnership has injected commitments of $1.6 billion in assistance from India. That has helped rebuild and upgrade infrastructure in Sri Lanka.

Today, we have offered another line of credit of $318 million for the railways sector. Reserve Bank of India has agreed to provide Central Bank of Sri Lanka a currency swap arrangement for $1.5 billion. This will increase the stability of the Sri Lankan rupee. We will also be supportive in advancing your commercial interests. I believe in Sri Lanka's capabilities. We should engage more. We should open up to each other more and move forward with greater belief in our own strengths.

Urban devolution, now

Devolving more resources to the states is the trend now, as outlined by the Fourteenth Finance Commission or FFC. One hopes the states also will respect this principle and both empower the urban local bodies, or ULBs, and provide more resources to them since under the Constitution, only state legislatures have the discretion to assign functions to local bodies.

While interacting with the FFC, the states appreciated the fact that the Thirteenth Finance Commission had acknowledged the need for providing local bodies with a predictable, buoyant source of revenue and had recommended a grant which was equivalent to a specified percentage of the divisible pool. That FC had brought in a regime which was in the direction of strengthening urban governance in India, when it made a departure from the previous Commissions and divided the grants to be distributed to the states for local bodies into two parts - namely, a basic grant and a performance-linked grant.

It is gratifying to note that the FFC has continued this line and again provided for grants in two parts, the division between the basic grant and the performance grant being 80:20.

While the 80:20 ratio has been maintained for the basic and the performance grant, this Commission has advocated that it is for the state governments to work out a detailed procedure for the disbursal of the performance grant to ULBs. This is a deviation from the recommendation made by the previous FC, which had laid down nine conditions to be fulfilled for the ULBs to lay claim to the performance grant, which were all very relevant and in the form of reforms.

For example, repeated recommendations relating to the strengthening of State Finance Commissions did not make much impact and that seems to be the reason to require the states to prescribe through an Act the qualifications of members of SFCs through passage of legislation. It seems more than clear that many states could not act promptly with respect to these nine reforms, and as a result the total performance grant claimed must be too small.

The FFC, after leaving it to the states to lay down the required procedures, talks of only three eligibility criteria for the urban bodies: the submission of audited annual accounts; an increase in "own-revenues" over the preceding year; and the yearly publication of benchmarks relating to basic urban services.

Further, the FFC has emphatically recommended that no further conditions or directions other than those indicated by the Commission should be imposed either by the central or the state governments for release of funds. This should make it easier for the ULBs to claim most if not all of the performance grant component. In the context of a general unwillingness of both states and local bodies to adopt reform, this change in approach should help.

There are other recommendations also which could help improve the urban governance system in the country. Saying that there is considerable scope for local bodies to improve revenues from their own sources, the FFC puts the onus on the state governments to take measures to augment those resources - by taking action relating to property tax, levy of vacant land tax, sharing of land conversion charges with municipalities, and many others. The importance of municipal bonds as a key source of revenue for the urban bodies has once again been emphasised by this Commission by recommending that local bodies and states explore the issuance of municipal bonds as a source of finance with suitable support from the Union.

Basing its argument on the point that improvements in the quality of basic services are likely to lead to an increase in the willingness of citizens to pay for the services, the FFC says grants to local bodies should be spent on strengthening the delivery of basic services such as water supply, sanitation, sewerage, solid waste management, street lighting, roads and others.

While the FFC has ensured that urban local bodies get more resources during the five-year period from 2015 to 2020, it has also given a detailed agenda for action. Who will monitor whether states are taking these up in all seriousness and providing the required support measures? Since the central government is presently giving shape to two high-profile urban programmes ("Smart Cities" and "500 Habitations"), it would be desirable to introduce these requirements laid down by the FFC as reform conditions to be met by the states during this five-year period.

This would be a major contribution to strengthening urban governance in the country and ensure improvements in basic services delivery across India's cities and towns.

Transparency delayed, justice denied

The National Judicial Appointments Commission (NJAC) Bill, 2014, which lays down the procedure for the appointment of judges to the 21 high courts and the Supreme Court of India, does not make any drastic departure from the present mode of judges appointing themselves. The centre has delayed in notifying the coming-into-force of the new law, which makes the much-vaunted transparency in judicial appointments farcical.

The judiciary, the executive and the legislature comprise the state. Unlike the latter two, the judiciary alone has the onerous task of dispensing justice, isolated and immune from public opinion, by evaluating evidence submitted before it. The judiciary is not accountable to the people for dispensing justice so that even gross mistakes committed by the subordinate judiciary can only be corrected by the superior judiciary using judicial review or appeal, which by-and-large, is not within the easy reach of the poor.

These drawbacks were to be corrected by the new law. But the NJAC comprises the Chief Justice of India, two seniormost Supreme Court judges, the Union law minister, and two so-called ‘eminent’ persons to be selected by the Chief Justice of India, the Prime Minister of India and the leader of the opposition or the leader of the largest political party in the Lok Sabha. The latter two are political appointees, so that the executive which is a political organ has a decisive role in judicial appointments.

However, the judiciary too is not a holy cow. Scandals have rocked the judiciary, with the latest being the writings of former Supreme Court Justice Markandey Katju, who comprised the collegium responsible for appointing judges. Upright and outspoken, he recounted a few instances of alleged corrupt high court judges who were continued as permanent judges despite his attempts at forcing them to resign. Apparently, even today, the august judiciary is not totally immune from executive interference.

A former law minister, Shanti Bhushan, was issued a show cause notice for committing contempt of court when he alleged that several former chief justices of the Supreme Court were corrupt.  Prior to that, the Bombay High Court had laid down the dictum that truth was no defence to a show cause notice received for alleged contempt of court. This had the undesirable effect of curbing press freedom and silencing criticism of the judiciary for over a decade.

Despite all this, the NJAC Bill evoked widespread acclaim because the Central Government had to make a reference to the NJAC when a vacancy arose in any high court or the Supreme Court. The existing vacancies have to be notified within 30 days of the Act being notified. Also, the NJAC has to be notified six months in advance before a judge retired to expedite filling the vacancy. Within 30 days of a judge dying or resigning, the NJAC has to be informed, so it can quickly fill the vacancy.

But apart from these unique features, the NJAC Bill follows the old method of appointing judges to high courts by placing the responsibility on the chief justice of the parent high court where the vacancy arises. All chief justices are transferee judges who have attained seniority in the all-India seniority list.  They normally act on the recommendation of their seniormost judges who are from the same high court. Sometimes, senior judges recommend names of lawyers from their own chambers, which they have known very well while practising as lawyers.

Similary, for the appointment of the Chief Justice of India, the NJAC was mandated to recommend the name of the seniormost judge of the Supreme Court “if he was considered fit to hold office.” There have been a few chief justices of high courts who have never delivered path-breaking judgments, but have nevertheless been elevated to the Supreme Court.

The only unique feature of the NJAC Bill is that the commission is given veto powers so that if any two members of the commission veto an appointment, the incumbent will not be elevated. Similarly, for appointment as Chief Justice of a high court, the NJAC members can veto an appointment. But apart from that, they are mandated to respect seniority as is presently the case.

What is unique is the Judicial Standards and Accountability (JSA) Bill, 2014, which envisages a five-member committee to deal with complaints against high court or Supreme Court judges and a probe team that will investigate charges against a judge. Earlier, all such complaints were forwarded to the Chief Justice of India, who merely transferred a permanent judge from his parent high court to some other high court.

As per the procedure laid down in the JSA, the probe team will be headed by a government-appointed advocate to investigate serious charges in camera against any judge and if these charges are proved, the judge concerned is not given judicial work. This too is not unique.

Innovations have to undergo transformation with the passage of time and so there is no gainsaying that the two Bills will have to be amended to give them more teeth to make the judiciary more responsive to the needs of the people. Justice delayed is justice denied and justice in a vacuum is injustice for all

Equality, Empowerment of Women, Women’s Full Enjoyment of Human Rights are Basic Ingredients of Development

“When people are discussing as to what man and woman can do, always the same mistake is made. They think they show man at his best because he can fight, for instance, and undergo tremendous physical exertion; and this is pitted against the physical weak- ness and non-combating quality of woman. This is unjust. Woman is as courageous as man. Each is equally good in his of her way. What man can bring up a child with such patience, endurance, and love as the woman can? The one has developed the power of doing; the other, the power of suffering. If woman cannot act, neither can man suffer. The whole universe is one of perfect balance”, said Swami Vivekananda once while deliberating on empowerment of women. What he felt, in those days might have roused much ripple amongst people no doubt but it’s the truth he reflected years back in his thinking about women which is so modern and realistic in approach.

In fact, what was felt by the Indian monk years before took a form of socialist political event and eventually blended into the cultures of different countries years after.

International Women’s Day is a time to reflect on progress made, to call for change and to celebrate acts of courage and determination by ordinary women who have played an extraordinary role in the history of their countries and communities.

This year’s theme, “Empowering Women-Empowering Humanity: Picture It!” envisions a world where each woman and girl can exercise her choices, such as participating in politics, getting an education, having an income, and living in societies free from violence and discrimination. The celebration varies from region to region. Generally, it is celebrated to provide respect to whole women fraternity, appreciate them and to express love for them. It is a day, not only to appreciate, respect and love women but a day to celebrate women's economic, political, and social achievements.

Since its birth in the socialist movement, the day has grown to become a day for recognition of women's issues and celebration of their rights across developed and developing countries alike. This day, hence, is a reminder of vigilance and action required to ensure that they gain and maintain equality in all aspects of life

History of International Women’s Day

International Women's Day first emerged from the activities of labour movements at the turn of the twentieth century in North America and across Europe. In 1909, the first National Woman's Day was observed in the United States on February 28. The Socialist Party of America designated this day in honour of the 1908 garment workers' strike in New York, where women protested against working conditions. In 1910, the Socialist International meeting in Copenhagen established a Women's Day, international in character, to honour the movement for women's rights and to build support for achieving universal suffrage for women. It is to be noted that in 1914, International Women’s Day celebration was held on March 8. From then onwards it is celebratd everywhere on March 8. The 1914 event celebration in the Germany was especially held for the women’s right to vote.

Since those early years, International Women's Day has assumed a new global dimension for women in developed and developing countries alike. The growing international women's movement, which has been strengthened by four global United Nations women's conferences, has helped make the commemoration a rallying point to build support for women's rights and participation in the political and economic arenas. Increasingly, International Women's Day is a time to reflect on progress made, to call for change and to celebrate acts of courage and determination by ordinary women who have played an extraordinary role in the history of their countries and communities.

The Charter of the United Nations, signed in 1945, was the first international agreement to affirm the principle of equality between women and men. Since then, the UN has helped create a historic legacy of internationally-agreed strategies, standards, programmes and goals to advance the status of women worldwide.

Every year International Women’s Day is celebrated using a particular theme. The theme of the International Women’s Day celebration of 2013 was “A Promise is a Promise: Time for Action to End Violence against Women”. The theme of the International Women’s Day celebration of 2014 was “A promise is a promise: Time for action to end violence against women”. The theme of this year’s International Women’s Day is “Empowering Women, Empowering Humanity: Picture it!”

Status of women in India- past & present

International Women’s Day is celebrated with great zeal and passion in India on March 8, every year to increase the awareness about women’s rights. This event celebration plays a great role in distributing the real message about the women’s right and their place in the society. It even promotes for bettering the living condition of the women by solving their social issues.

In the Vedic Period women were educated, enjoyed equal status, used to get married at a mature age and had full rights to choose their husbands.

Indian women now-a-days too is participating in all fields like going to space as astraunaut or shining in  sports, education, science, IT, politics (as Prime Minister) and many other odd fields such as driving trains.

However, there are many issues that need to be tackled too, such as dowry, sexual harassment, crime against women, rape, child marriage, domestic violence, eve-teasing etc.

From time to time many Indian reformers fought for the betterment of women in India such as Ram Mohan Roy, Ishwar Chandra Vidyasagar, Peary Charan Sarkar etc. With their efforts change happened to some extent, laws were made against the odds of the society.

Legal Framework

            The principle of gender equality is enshrined in the Indian Constitution in its Preamble, Fundamental Rights, Fundamental Duties and Directive Principles. The Constitution not only grants equality to women, but also empowers the State to adopt measures of positive discrimination in favour of women.

India has also ratified various international conventions and human rights instruments committing to secure equal rights of women. Key among them is the ratification of the Convention on Elimination of All Forms of Discrimination Against Women (CEDAW) in 1993.The Mexico Plan of Action (1975), the Nairobi Forward Looking Strategies (1985), the Beijing Declaration as well as the Platform for Action (1995) and the Outcome Document adopted by the UNGA Session on Gender Equality and Development & Peace for the 21st century, titled "Further actions and initiatives to implement the Beijing Declaration and the Platform for Action" have been unreservedly endorsed by India for appropriate follow up.

Current Scenario

            However, there still exists a wide gap between the goals enunciated in the Constitution, legislation, policies, plans, programmes, and related mechanisms on the one hand and the situational reality of the status of women in India, on the other.

Gender disparity manifests itself in various forms, the most obvious being the trend of continuously declining female ratio in the population in the last few decades. Social stereotyping and violence at the domestic and societal levels are some of the other manifestations. Discrimination against girl children, adolescent girls and women persists in parts of the country. The underlying causes of gender inequality are related to social and economic structure, which is based on informal and formal norms, and practices. Consequently, the access of women particularly those belonging to weaker sections including Scheduled Castes/Scheduled Tribes/ Other backward Classes and minorities, majority of whom are in the rural areas and in the informal, unorganized sector – to education, health and productive resources, among others, is inadequate. Therefore, they remain largely marginalized, poor and socially excluded.

Within the framework of a democratic polity, our laws, development policies, Plans and programmes have aimed at women’s advancement in different spheres. From the Fifth Five Year Plan (1974-78) onwards has seen a marked shift in the approach to women’s issues from welfare to development. In recent years, the empowerment of women has been recognized as the central issue in determining the status of women. The National Commission for Women was set up by an Act of Parliament in 1990 to safeguard the rights and legal entitlements of women. The 73rd and 74th Amendments (1993) to the Constitution of India have provided for reservation of seats in the local bodies of Panchayats and Municipalities for women, laying a strong foundation for their participation in decision making at the local levels.

The present Government has initiated a number of schemes and programmes,policy initiatives aimed at securing the lives of women and girl child as part of Prime Minister’s vision to take every citizen along in the country’s march towards becoming a modern country. To name a few Swacch Bharat Mission, National Digital Literacy Mission, Beti Bachao Beti Padhao (BBBP) Scheme and the PM’s Jan Dhan Yojana, are expected to  rejuvenate the socio-economic and political mindset and landscape of this country. While the Swacch Bharat Mission can have a multiplier effect of not only usher in a Clean India but can build a robust India which has an educated, healthy, happy population, Pradhan Mantri Dhan-Jan Yojana envisages to empower every person by integrating him/her with the banking network in the country and also make him an active beneficiary of the welfare largesse of the government through a transparent mechanism. Similarly many schemes related to women health, nutrition, etc are restructured with a focus on women and girl children and adolescents. National Digital Literacy Mission intends to transform India into a digitally empowered knowledge society.

Union Minister of Urban Development and Housing & Urban Poverty Alleviation Shri M.Venkaiah Naidu has stated that central government is working on mandating 50 per cent reservation for women in all the urban local bodies of the country, to promote their participation in urban policy making for developing ‘engendered cities’. He has stressed on the need for imparting gender perspective to designing urban policies and programmes while inaugurating a two day ‘International Conference on Gender and Urban Poverty’ recently. The Minister further indicated the government’s initiative to focus on the basic toilet needs of women and provide one crore household toilets in urban areas under Swachh Bharat Mission which on a conservative estimate will benefit over two crore women daily and promote ‘engendered cities’ with the objective of welfare of women through their participation.

Finance Minister Shri. Arun Jaitley has doubled the budget of the Nirbhaya fund to Rs.2,000 crore from Rs 1,000 crore this year. "The government is committed to safety and security of women, and another Rs.1,000 crore has been allocated to the Nirbhaya Fund," said Jaitley while presenting the Union budget. Besides, the thought of incorporation of special women force in Railway protection is an indication of Union Government’s constructive approach towards security and maintaining the dignity of women in India.

Besides, the thought of incorporation of special women force in Railway protection is an indication of Union Government’s constructive approach towards security and maintaining the dignity of women in India.

International Women’s Day in India

International Women’s Day is celebrated with great zeal and passion in India on March 8, every year to increase the awareness about women’s rights. This event plays a great role in displaying the real message about the women’s right and their place in the society. It even promotes for bettering the living condition of the women by solving their social issues.

Ministry of Woman and Child Development which is the nodal ministry for Woman issues organizes various events across the country along with state departments,district /panchayat administration to  highlight various issues concerning women.Some of these include presentation of Stree Shakti Puruskars and Nari Shakti Puruskars by the President of India,  Women and Child Development Ministry has instituted two new awards this year namely (i) Rajya Mahila Puruskar & (ii) Zila Mahila Puruskar.  Rajya Mahila Puruskar will be given by the Chief Minister of the respective State and Zila Mahila Puruskar will be given by the District Collector of the respective District.   Anganwadis will organize activities to observe International Women’s Day.

Apart from being a salute to the spirit of womanhood, the day is a diligent reminder of the continued vigilance and action required to ensure that women's equality is gained and maintained in all aspects of life. Besides, women have to move forward in solving their problems on their own and not depending on others. In the words of Swami Vivekananda again, “Our right of interference is limited entirely to giving education. Women must be put in a position to solve their own problems in their own way. No one can or ought to do this for them. And our Indian women are capable of doing it as any in the world.”

Swachh Bharat Mission (Gramin)

Major schemes of the central government to improve rural sanitation

The central government has been implementing schemes to improve access to sanitation in rural areas from the Ist Five Year Plan (1951-56) onwards.  Major schemes of the central government dealing with rural sanitation are outlined below.

Central Rural Sanitation Programme (1986): The Central Rural Sanitation Programmewas one of the first schemes of the central government which focussed solely on rural sanitation.  The programme sought to construct household toilets, construct sanitary complexes for women, establish sanitary marts, and ensure solid and liquid waste management.

Total Sanitation Campaign (1999): The Total Sanitation Campaign was launched in 1999 with a greater focus on Information, Education and Communication (IEC) activities in order to make the creation of sanitation facilities demand driven rather than supply driven. Key components of the Total Sanitation Campaign included: (i) financial assistance to rural families below the poverty line for the construction of household toilets, (ii) construction of community sanitary complexes, (iii) construction of toilets in government schools and aganwadis, (iv) funds for IEC activities, (v) assistance to rural sanitary marts, and (vi) solid and liquid waste management.

Nirmal Bharat Abhiyan (2012): In 2012, the Total Sanitation Campaign was replaced by theNirmal Bharat Abhiyan (NBA), which also focused on the previous elements.  According to the Ministry of Drinking Water and Sanitation, the key shifts in NBA were: (i) a greater focus on coverage for the whole community instead of a focus on individual houses, (ii) the inclusion of certain households which were above the poverty line, and (iii) more funds for IEC activities, with 15% of funds at the district level earmarked for IEC.

Swachh Bharat Mission (Gramin) (2014): Earlier this year, in October, NBA was replaced by Swachh Bharat Mission (Gramin) (SBM-G) which is a sub-mission under Swachh Bharat Mission.  SBM-G also includes the key components of the earlier sanitation schemes such as the funding for the construction of individual household toilets, construction of community sanitary complexes, waste management, and IEC. Key features of SBM-G, and major departures from earlier sanitation schemes, are outlined in the next section.

III. Guidelines for Swachh Bharat Mission (Gramin)

The guidelines for SBM-G, released earlier this month, outline the strategy to be adopted for its implementation, funding, and monitoring.

Objectives: Key objectives of SBM-G include: (i) improving the quality of life in rural areas through promoting cleanliness and eliminating open defecation by 2019, (ii) motivating communities and panchayati raj institutions to adopt sustainable sanitation practices, (iii) encouraging appropriate technologies for sustainable sanitation, and (iv) developing community managed solid and liquid waste management systems.

Institutional framework: While NBA had a four tier implementation mechanism at the state, district, village, and block level, an additional tier has been added for SBM-G, at the national level.  Thus, the implementation mechanisms at the five levels will consist of: (i) National Swachh Bharat Mission (Gramin), (ii) State Swachh Bharat Mission (Gramin), (iii) District Swachh Bharat Mission (Gramin), (iv) Block Programme Management Unit, and (v) Gram Panchayat/Village and Water Sanitation Committee.  At the Gram Panchayat level, Swachhta Doots may be hired to assist with activities such as identification of beneficiaries, IEC, and maintenance of records.

Planning: As was done under NBA, each state must prepare an Annual State Implementation Plan.  Gram Panchayats must prepare implementation plans, which will be consolidated into Block Implementation Plans.  These Block Implementation Plans will further be consolidated into District Implementation Plans.  Finally, District Implementation Plans will be consolidated in a State Implementation Plan by the State Swachh Bharat Mission (Gramin).

A Plan Approval Committee in Ministry of Drinking Water and Sanitation will review the State Implementation Plans.  The final State Implementation Plan will be prepared by states based on the allocation of funds, and then approved by National Scheme Sanctioning Committee of the Ministry.

Funding: Funding for SBM-G will be through budgetary allocations of the central and state governments, the Swachh Bharat Kosh, and multilateral agencies.  The Swachh Bharat Kosh has been established to collect funds from non-governmental sources.  Table 3, below, details the fund sharing pattern for SBM-G between the central and state government, as provided for in the SBM-G guidelines.

#NITIAayog to Undertake Midterm Appraisal of Ongoing Five Year Plan

In the first meeting of the Governing Council of National Institution for Transforming India (NITI) Aayog, which was held on February 8, 2015, it was decided that the 12th Five Year Plan (2012-2017) would continue. NITI Aayog would suitably undertake its Mid Term Appraisal so that a shared vision of national development agenda and important national initiatives are incorporated for their effective implementation in the remaining two years of the Plan. This information was given by the Minister of State (Independent Charge) for Planning, Shri Rao Inderjit Singh in a written reply in Rajya Sabha today. The Minister said that the Resolution, setting up NITI Aayog provides for a suitable Secretariat of the NITI Aayog for providing assistance in discharging the functions entrusted to it. The Secretariat of NITI Aayog is in the process of being set up. During this transition period, NITI Aayog has been declared by the Government as successor in Interest of the erstwhile Planning Commission. As per government order, the officers and employees holding office under the erstwhile Planning Commission immediately before the date of constitution of the NITI Aayog shall continue to hold office in NITI Aayog by the same tenure and upon the same terms and conditions of service; and continue as such until further orders. He said that India has undergone a paradigm shift over the past six decades. The role of the State as well as the state of the Economy has changed dramatically over the last few decades. India is now an emerging economy in an increasingly integrated globalized world. The State has now moved away from allocating government resources in a command and control ecosystem to a more complex role – that of mediating through policy action, favourable conditions for private investment, providing public goods and essential services and most importantly, directly intervening in areas that are traditionally neglected by markets i.e. social security and essential entitlements of food, health, nutrition, education and livelihoods to the vulnerable and marginalized groups. The Minister said that in its 35th Report, on Demand for Grants (2011-12) the Standing Committee on Finance of the 15th Lok Sabha had observed that “The Committee are of the view that while planning is very much relevant in India, the Planning Commission has to come to grips with the emerging social realities to reinvent itself to make itself more relevant and effective for aligning the planning process with economic reforms and its consequences, particularly for the poor”. Keeping with these changing times, the Government of India has decided to set up NITI Aayog (National Institution for Transforming India) with special emphasis on strengthening cooperative federalism in India so that Centre and State, as a team can work for ensuring rapid economic transformation of India.

Empowering the States

The broad contours of a cooperative federal polity where the Centre and States engage as equal partners in development is now emerging after the government on Tuesday accepted the recommendations of the Fourteenth Finance Commission. The FFC, headed by former RBI Governor Y.V. Reddy, has broken new ground by recommending a move away from scheme and grants-based support to States to a greater devolution of funds from the Centre’s divisible pool of tax revenues. Thus, it has recommended that the Centre share 42 per cent of the divisible pool with the States, which is 10 percentage points higher than what is the case now. By accepting the recommendation despite the fact that it would lead to a sharp drop in its own share of revenues at a time of fiscal pressures, the Centre has sent out an unequivocal signal of its commitment to the principle of ‘#cooperative federalism’. The phrase was first mentioned by Prime Minister Narendra Modi in the context of his decision to replace the Planning Commission with the #NITI Aayog. Indeed, the FFC’s report, along with the setting up of the NITI Aayog and the consensus on the implementation of the Goods and Services Tax, are important components of the emerging federal landscape where the Centre confers greater freedom and responsibility on the latter by devolving greater resources to them.

Consequent to the higher devolution of funds, the Centre is likely to re-evaluate several schemes that it sponsors for the States. This is a natural consequence as the Centre needs to offset its loss of revenue even as States devise their own spending programmes tailored to their needs. It is a fact that some States have been weighed down by the need to cough up their share of funds for Centrally sponsored schemes even if such schemes are not relevant to their needs. For example, for a State such as Kerala with its high literacy levels, a scheme to promote primary education is not relevant, just as one promoting power generation is not relevant to a power-surplus State such as Gujarat. The key to the success of this experiment in cooperative federalism lies in how well the States use the higher revenues and the accompanying freedom to frame their development priorities. Some of the better-developed States such as Tamil Nadu might feel aggrieved at a reduction in their share of devolved funds, ironically because of their better development metrics relative to other States. But this is federalism at work, because the resources freed up thus go to support another State that might be lagging behind on development parameters and per capita income. What is important is whether the FFC has adopted logical and fair measures while designing the allocations — which it indeed has done.

#14thFinanceCommission (FFC) Report Tabled in Parliament;,samveg ias

14th #FinanceCommission (FFC) Report Tabled in Parliament; FFC Recommends by Majority Decision that the States’ Share in the Net Proceeds of the Union Tax Revenues be Raised to 42% Which is a Huge Jump from the 32% Recommended by the 13th Finance Commission

Article 280 of the Constitution of India requires the Constitution of a Finance Commission every five years, or earlier.  For the period from 1st April, 2015 to 31st March, 2020,  the 14th Finance Commission (FFC) was constituted by the orders of President on 2nd January, 2013 and submitted its report on 15th December, 2014.  The Finance Commission is required to recommend the distribution of the net proceeds of taxes of the Union between the Union and the States (commonly referred to as vertical devolution); and the allocation between the States of the respective shares of such proceeds (commonly known as horizontal devolution).  With regard to vertical distribution, FFC has recommended by majority decision that the the States’ share in the net proceeds of the Union tax revenues be 42%. The recommendation of tax devolution at 42% is a huge jump from the 32% recommended by the 13th Finance Commission.  The transfers to the States will see a quantum jump. This is the largest ever change in the percentage of devolution. In the past, when Finance Commissions have recommended an increase, it has been in the range of 1-2% increase. As compared to the total devolutions in 2014-15 the total devolution of the States in 2015-16 will increase by over 45%.  The consequence of this much greater devolution to the States is that the fiscal space for the Centre will reduce in the same proportion. As recorded in Chapter-8 of FFC’s Report, amongst other demands of the States, the States had demanded both an increase in share of tax devolution, and a reduced role of CSS.  In Paras 8.6 & 8.7 of its Report, the FFC has noted that “8.6:Another dominant view has been that a majority of the resources should flow in the form of tax devolution­­--- ” “8.7: An overwhelming majority of States have suggested reducing the number of CSS as well as outlays on them---.”  FFC has taken the view that tax devolution should be primary route of transfer of resources to States. It may be noted that in reckoning the requirements of the States, the FFC has ignored the Plan and Non-Plan distinction; it sees the enhanced devolution of the divisible pool of taxes as a “compositional shift in transfers from grants to tax devolution” (Para 8.13 of  FFC Report).  Thus, basically the FFC Report expects the CSS, in fact Central assistance to State Plans as a whole, to reduce and be replaced by greater devolution of taxes.  Keeping in mind the spirit of cooperative federalism that has underpinned the creation of  National Institution for Transforming India (NITI), the Government has accepted the recommendation of the FFC to keep the States’ share of Union Tax proceeds (net) at 42%.  In recommending horizontal distribution, the FFC has used broad parameters of population (1971) and changes of population since, income distance, forest cover and area.  The details of this criteria and the weight assigned to them are given in Annexure-1.  The State-wise share of the divisible pool of Central taxes, in percentage terms, is given in Annexure-2.  As service tax is not levied in J&K, the share of the States, in percentage terms has been calculated separately by FFC.  These are given inAnnexure-3.  The Finance Commission is also required to recommend on ‘the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State’. FFC  has recommended distribution of grants to States for local bodies using 2011 population data with weight of 90% and area with weight of 10%. The grants to States will be divided into two, a grant to duly constituted Gram Panchayats and a grant to duly constituted Municipal bodies, on the basis of rural and urban population.  FFC has recommended grants in two parts; a basic grant, and a performance grant, for duly constituted Gram Panchayats and municipalities. The ratio of basic to performance grant is 90:10 with respect to Panchayats and 80:20 with respect to Municipalities.  FFC has recommended out a total grant of Rs 2,87,436 crore for five year period from 1.4.2015 to 31.3.2020. Of this the grant recommended to Panchayatas is Rs 2,00,292.20 crores and that to municipalities is Rs 87,143.80 crores. The transfers in the year 2015-16 will be Rs 29,988 crores.  Inter-se share of each state in respect of local bodies grant is at Annexures-4 and 5.  The Government has accepted the recommendations of the Finance Commission with regard to grants to local bodies. The Finance Commission is also required to ‘review the present arrangements as regards financing of Disaster Management with reference to the National Calamity Contingency Fund and the Calamity Relief Fund and the funds envisaged in the Disaster Management Act, 2005 (Act 53 of 2005), and make appropriate recommendations thereon’.  FFC has recommended that up to 10 percent of the funds available under the SDRF can be used by a State for occurrences which State considers to be ‘disasters’ within its local context and which are not in the notified list of disasters of the Ministry of Home Affairs.  The FFC has noted in Para 10.26 as follows:  “The financing of NDRF has so far been almost wholly through the levy of cess on select items, but if the cess are discontinued or when they are subsumed under the Goods and Services Tax (GST) in future, we recommend that the Union Government consider ensuring an assured source of funding for NDRF”.  In view of the above, with regard to disaster relief, the Government has decided that the percentage share of the States will continue to be as before, and that the flows will also be of the same order, as in the existing system; and that, once GST is in place, the recommendation of FFC on disaster relief would be implemented in the manner recommended by the Finance Commission.    The Finance Commission is also required to make recommendation regarding the principles governing grants-in-aid of the States’ revenues, by the Centre. As noted by the FFC in Para 11.28, while calculating grants to the States they “have departed significantly from previous Finance Commissions, by taking into consideration a States’ entire revenue expenditure needs without making a distinction between Plan and Non-Plan”.  Taking thus into account the expenditure requirements of the States, the tax devolution to them, and the revenue mobilization capacity of the States, the FFC have recommended “Post-Devolution Revenue Deficit Grants” of a total of Rs. 1,94,821 crores, for the five year period.  The States of Andhra Pradesh, Assam, J&K, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and West Bengal (a total of 11 States) have been identified for receiving these revenue deficit grants.  The details are given in Annexure-6. The Government has accepted the recommendation in principle.  To summarize, the Grants-in-Aid to the States total to Rs. 5.37 lac crores is given in the Table given below:    Grants-in-Aid to States (Rs. crore) 1 Local Government(all States) 287436 2 Disaster Management(all States) 55097 3 Post-devolution Revenue Deficit     (11 States) 194821 Total 537354  As stated above, the compositional shift recommended by the FFC would substantially impact Central Assistance. In this regard, para 7.43 of the FFC Report states as follows : “Plan revenue expenditure of States is financed by States’ own resources, borrowing and Plan grants from the Union. The Plan grants include normal Central assistance, which is untied,additional Central assistance for specific-purpose schemes and transfers,special Plan assistance,special Central assistance,Central Plan schemes and CSS.For the purpose of our assessment of Plan revenue expenditure of States, we have included expenditure incurred on State Plans and States’ contribution to CSS. This excludes Union expenditure on CSS, central Plan schemes and North Eastern Council Plan schemes and externally aided projects financed through grants from the Union.  We have estimated the 2014-15 base year Plan revenue expenditure (as defined above) for each State, applying an annual growth rate of 13.5 per cent over 2012-13 and 2013-14.  For the purpose of our projection period, we have assumed an annual growth rate of 13.5 per cent over base year estimates for all the States, implying that the Plan revenue expenditure will increase at the same rate as the GDP growth rate.”  Based on the above, over 30 Centrally Sponsored Schemes have been identified which ought to have been transferred to the States because expenditure on them has already been taken into account as State expenditure, in arriving at the greater devolution of 42% to the States.    However, keeping in mind that many of these schemes are national priorities, and some are legal obligations (such as MGNREGA) and in order to underline the Central Government’s continued support to national priorities, especially with regard to schemes meant for the poor, most of these are proposed to be continued.  The Government has decided that only 8 Centrally Sponsored Schemes be delinked from support from the Centre.           Certain programmes of the Government will have to continue unaltered as they are either legal/Constitutional obligations, or are privileges available to the elected representatives for welfare of their constituents. Further, and more importantly it is proposed that the Union Government may continue to support   certain programmes which are for the benefit of the socially disadvantaged in an unaltered manner from its own resources.  In respect of various Centrally sponsored schemes, the sharing pattern will have to undergo a change with States sharing a higher fiscal responsibility for scheme implementation.  Details of changes in sharing pattern will have to be worked out by the administrative Ministry/Department on the basis of available resources from Union Finances. Other recommendations of the FFC         In addition to the recommendations regarding Vertical, and Horizontal devolution and grants, the FFC has made certain other recommendations. These relate to cooperative federalism, Goods & Services Tax, Fiscal Consolidation Roadmap, Pricing of Public Utilities and Public Sector Enterprises. The recommendations of the Finance Commission will be examined by the Government in due course in consultation with the concerned stakeholders.

govt priority:Address by the President of India

Address by the President of India, Shri Pranab Mukherjee to the Joint Session of both houses of Parliament

Honourable Members, 1.       In this New Year full of aspirations and hope, I welcome you to the Joint Sitting of the Two Houses of the Parliament with the belief that your deliberations will be productive and useful. 2.       Dr. Shyama Prasad Mukherjee had said, “the greatest strength of India is her rich spiritual and civilizational heritage”. The core values of our civilization emphasize universal good - welfare of all human beings. The fundamental tenet of my Government is Sabka Saath Sabka Vikas– All Together, Development of All. Within a span of nine months, my Government has articulated and embarked on a comprehensive strategy for unleashing the full potential of our country and its precious resource of 125 crore people. Measures have been initiated to stir action in a range of fields from sanitation to smart cities, poverty elimination to creation of wealth, skill development to conquering space, tapping demographic dividend to diplomatic initiatives, enhancing ease of doing business to putting in place a stable policy framework, empowering individuals to ensuring quality infrastructure, ending financial untouchability to making the country a manufacturing hub, containing inflation to stimulating economy, igniting minds to ensuring inclusive growth, promoting cooperative federalism to encouraging a competitive spirit among the states. A strong beginning has been made. A promising future awaits us. Honourable Members, 3.       Poverty is a bane to dignified human existence. Development is actualized only when the last person gets a sense of fulfillment, especially, regarding his minimum needs. Pandit Deendayal Upadhyaya had laid emphasis on holistic development of each and every human being - Ekatm Manavata darshan (Integral Humanism). My Government is pledged to work for the welfare of the poor, the marginalized and the vulnerable sections of the society. 4.       Financial inclusion is critical to poverty elimination. My Government launched an ambitious Pradhan Mantri Jan Dhan Yojana to provide universal access to banking facilities – a bank account, having in-built accidental insurance with a Rupay debit card. I am happy to state that the coverage under the scheme is close to 100% with a record 13.2 crore new bank accounts being opened, 11.5 crore Rupay debit cards being issued and over ` 11,000 crore being deposited. This unprecedented target was achieved in less than six months, making it the largest such programme globally. 5.       To ensure that the benefits of developmental programmes reach the last intended beneficiary without leakages and impediments, Direct Benefit Transfer Programme is being implemented with renewed vigour. The biggest Direct Cash Transfer programme in the world, PAHAL, for transfer of LPG subsidy, has been extended across the country from 1st January, 2015, so far covering 75% of the user-households. In all, 35 schemes have been brought under Direct Benefit Transfer architecture. Special emphasis is attached to make Aadhar enrolment coverage universal. Honourable Members, 6.       Swachhata is an article of faith for my Government. Swachhata will have an overarching impact on the overall quality of life and well-being of a person, particularly the poor. Swachh Bharat Mission has been launched to achieve a Clean and Open Defecation Free India by October, 2019. Government has rolled out ‘Swachh Vidyalaya’ programme and is committed to construct a toilet in every school before 15th August, 2015. Swachhatahas a cascading impact on national development and the potential to generate wealth from waste. Sanitation and the idea of Swachhata require changing the mindset of the people. My Government exhorts each and every individual to be an active participant in this mission. I appeal to all honourable Members of Parliament to spend at least fifty percent of their MPLADS funds on Swachh Bharat Mission. 7.       India lives in her villages. My Government attaches the highest priority to sustainable socio-economic growth of rural areas. MGNREGS can be a powerful weapon to combat rural poverty. While implementing MGNREGS with renewed vigour, emphasis is being placed on improving quality and durability of assets under the programme, besides mandating that at least sixty percent of expenditure be directed for creation of agricultural infrastructure. In keeping with my Government’s focus on “Skill India”, “Deen Dayal Upadhyaya Grameen Kaushal Yojana” and “Deen Dayal Upadhyaya Antyodaya Yojana” have been announced. Saansad Adarsh Gram Yojana launched in October 2014, focuses on integrated and holistic development of our villages with active involvement of Members of Parliament. 8.       Housing is a fundamental requirement for dignified living. My Government is steadfast in fulfilling the aspirations of all households, particularly the poorest of the poor, to have a dwelling unit under the Mission “Housing for All” by 2022, marking 75 years of our independence. A set of fiscal and non-fiscal incentives have been devised to leverage the value of land holding with government and to afford flexibility to State Governments in designing their own customized housing programmes. To aid investment in housing sector, my government has liberalized FDI policy; increased tax incentives for housing loans and enhanced the corpus of National Housing Bank. 9.       My Government attaches paramount importance to safeguard the interest of farmers and families affected by land acquisition.  While taking utmost care to protect the interest of farmers, including their compensation entitlements, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act has been suitably refined to minimize certain procedural difficulties in acquisition of land inevitably required for critical public projects of infrastructure and for creation of basic amenities like rural housing, schools and hospitals, particularly in remote areas. Honourable Members, 10.       Kisan is the sentinel of our food security. Annadaata Sukhibhava has been one of our fundamental civilizational values. My Government attaches enormous importance to the wellbeing of farmers. This will need value-added agriculture, market reform, use of technology and improving productivity in areas with untapped potential. The year 2015 has been designated as International Year of Soils. In view of the critical role of soil for productivity and farm output, a Soil Health Card Scheme has been launched. Price stabilization fund with a corpus of ` 500 crore has been set up for perishable commodities. To address the irrigation requirements of every village in an effective and sustainable manner, Pradhan Mantri Krishi Sinchai Yojana, is being launched. Extension programmes have been devised targeting resource-poor, small and marginal farmers, particularly focusing on organic farming and green house technology. Rashtriya Gokul Mission has been launched with the objective of conserving and developing indigenous cattle breeds. 11.     Food Processing has immense potential for generating employment in rural areas, particularly for the landless poor, besides guaranteeing remunerative price for the farm-produce. Creating infrastructure in rural areas to minimize supply chain losses is a priority. A special fund of ` 2000 crore to provide affordable credit to the units in 72 notified food parks has been made operational. Two Mega Food Parks, at Tumkur and Fazilka, each to provide direct/indirect employment to 30,000 people have been commissioned in the last 6 months. 12.     Former Prime Minister Shri Atal Bihari Vajpayee had said and I quote: “Poverty has multiple effects. Besides impacting our economy, it corrodes our democracy”.Inclusive growth covering the poorest of poor from the most vulnerable and disadvantaged sections of our society is my Government’s topmost priority. Thrust has been given to streamlining scholarships schemes for students from SC, ST, OBC, and minority communities to ensure timely disbursement to the beneficiaries. Government has set up a new Venture Capital Fund for SC entrepreneurs. To upgrade skill and training in traditional arts/crafts of minorities, a new scheme “Upgrading the Skill and Training in Traditional Arts/Crafts for Development (USTTAD)” is being launched. Outcome based integrated approach has been adopted for tribal development under the Van Bandhu Kalyan Yojana. Nanaji Deshmukh Scheme is being launched for construction of Hostels for Denotified, Nomadic and Semi-Nomadic Tribes. Honourable Members, 13.     Education is the priority of priorities for my Government. ‘Padhe Bharat Badhe Bharat’ has been launched to improve foundational learning outcomes. An initiative to map the entire country on a GIS platform to identify habitations without schools, has been taken. Pandit Madan Mohan Malviya National Mission on Teachers and Teacher Training has been launched to empower and increase the capacity of teachers. TheRashtriya Avishkar Abhiyan has been announced to imbibe scientific temper among students. To ensure access to education in the remotest areas, Ishan Vikas and Ishan Uday schemes have been started with focus on students of North-Eastern regions. My Government has formulated National Sports Talent Search Scheme for encouraging sporting talent amongst children in the age group of 8 to 12 through National Sports Development Fund and Target Olympic Podium. 14.     India has the largest population of youth in the world. Majority of her population is already in the working age group. To tap this demographic dividend and to bridge the demand-supply gap in skilled workforce, my Government has created a new Ministry of Skill Development and Entrepreneurship with the theme “Hunar hai to Kalyan hai”. A new “National Policy for Skill Development and Entrepreneurship” is on the anvil to align skilling initiatives with global standards. Focus will be on the youth from deprived households in rural areas. Public-Private Partnership is being fostered to create skill development models and channelize CSR funds into skilling activities. Honourable Members, 15.     My Government is committed to providing affordable and accessible health care to all its citizens, particularly the vulnerable sections, in an efficient and equitable manner. To reduce preventable deaths, India New Born Action Plan has been initiated and four new vaccines have been approved. ‘Mission Indradhanush’ has been launched to achieve universal immunization with special focus on 184 high priority districts across the country. To create an inclusive, enabling and empowering environment for Persons with Disabilities, my Government has launched new scholarship schemes for students with disabilities. A national help line with toll free number has been launched for those who need help against drug de-addiction and for rehabilitation. 16.     My Government has recently elevated the erstwhile department of AYUSH to a full-fledged Ministry with an objective to increase the global and local footprint of the traditional systems of healthcare, duly recognizing that our villages have been the repositories of our rich Ayurvedic heritage. National AYUSH Missionhas been launched to promote cost effective AYUSH services, strengthen the education system and facilitate availability of quality AYUSH drugs. Honourable Members, 17.     Women have had a place of reverence in our society since time immemorial. My Government has taken several measures to empower and protect the dignity of women. To provide complete support to women affected by violence, One Stop Crisis Centres, one in every State, are being set up for provision of integrated services including medical aid, police assistance, temporary shelter, and legal and psycho-social counseling. Another initiative has been the launch of Himmat, a mobile based application, to ensure women’s safety in Delhi. 18.     The unabated decline in Child Sex Ratio since 1961 is a matter of grave concern. This trend has to be reversed. To ensure survival, protection and education of the girl child, my Government has launched Beti Bachao, Beti Padhao Abhiyaan, which seeks to change mindsets to celebrate the girl child. A new small saving scheme ‘Sukanya Samriddhi Account’ has been notified for enabling the education of the girl child. A Bill to amend Juvenile Justice Act has been introduced in Parliament to reform the law relating to juvenile offences. Honourable Members, 19.     Shramik is the backbone of our economy. My Government believes in Shrameve Jayate and has taken several labour welfare measures. Apprentice Protsahan Yojana has been launched to promote apprentices in Micro, Small and Medium Enterprises in manufacturing sector. EPF subscriptions have been made portable benefiting casual workers in the unorganized sector. Under the Employees Provident Fund Act, the statutory wage ceiling and the minimum pension have been enhanced to ` 15,000/- and ` 1,000/- respectively. While my Government is fully committed to expand the job market and to promote the welfare of workers, it is also committed to bringing in transparency and accountability in enforcement of labour-related regulations. To this end, the Shram Suvidha Portal has been launched to ensure ease of doing business by allowing industry to register online and file a single online return instead of 16 separate returns. A transparent online inspection scheme has been launched. Recent amendments to the Apprentices Act, 1961 have made the legal framework friendly to both industry and employable youth. Honourable Members, 20.     Legal reform is one of the priorities of my Government. My Government believes that Governance and reforms are a combined effort of Team India, consisting of the Parliament, Union Government, State Legislatures, State Governments and the People of India. An example of this collaborative effort is the reform in the process of appointment of Judges to the High Courts and Supreme Court and the legislation to set up National Judicial Appointments Commission. The Government is also committed to repeal the obsolete and redundant laws. A Committee constituted for this purpose has identified 1741 Central Acts for repeal under various categories. 21.     Maximum Governance Minimum Government is the guiding principle of my Government. With an aim to take Governance to the doorstep of the poorest of the poor in remotest areas, focus is on simplification of official procedures and reducing the decision-making levels in Government by leveraging technology. The system of Group of Ministers has been dispensed with and emphasis is on swift decision-making. While introducing stricter and sterner measures to deal with corruption; effort is being made to ensure that sufficient safeguards are in place to protect bona fide decisions taken in public interest and to inspire confidence in the civil service. 22.     My Government is firmly committed to engage people in the process of Governance and policy-making.My Gov Online Platform, a path breaking initiative, has been launched. This platform has ensured public participation in decision-making and ideation of various national flagship programmes like Swachh Bharat Mission, Namami Gange, Pradhan Mantri Jan Dhan Yojana and NITI Aayog. 23.     My Government has envisioned an ambitious umbrella programme, Digital India, to prepare India for technology based transformation and citizen centric transparent governance with service orientation. Aadhar based attendance system and Jeevan Praman, Aadhar based Digital Life Certificate Portal, have shown that innovative use of technology can make enormous difference. Measures are being taken to accomplish digital inclusion in rural areas, small towns, north-east and other remote areas, opening up immense job opportunities in these areas. Promoting manufacturing of electronic goods has been an area of thrust. 24.     My Government is pledged to decentralization of power and as an important step in this direction, the Planning Commission has been replaced with a new body- The National Institution for Transforming India -NITI Aayog. The underlying spirit of NITI Aayog is to foster the spirit of cooperative federalism so that Union and State Governments come on a platform to forge a common national agenda for development, with thrust on empowering the impoverished. Honourable Members, 25.     As a result of my Government’s sustained efforts and series of policy initiatives, our economy is again on the high growth trajectory. According to the latest estimates, our GDP is growing at 7.4%, which makes India the fastest growing large economy in the world.  Inflation and Food inflation, in particular, are at a record low due to a number of decisive measures taken by the Government.  Fixed capital formation, which faced a near stagnation in the last few years, has increased. Capital Markets are upbeat. Our external sector is now far more resilient, particularly with a moderate current account deficit and a broadly stable rupee. Our foreign exchange reserves have been substantially augmented. 26.     While my Government has intensified efforts to bring greater efficiency and equity into the tax system, prudence in expenditure management is also high on the agenda of my Government. A Constitutional (Amendment) Bill has been introduced to bring in Goods and Services Tax that will simplify the indirect tax regime, broaden the tax base and result in better tax compliance. Honourable Members, 27.     My Government is committed to taking all possible measures to stop generation of black money, both domestically and internationally. These measures include putting in place robust legislative and administrative frameworks, systems and process with due focus on capacity building, integration of information through technology, and fast tracking prosecution. 28.     Financial Sector institutional restructuring is a priority area. My Government will expedite implementation of the recommendations of the Financial Sector Legislative Reforms Commission. SEBI’s new Foreign Portfolio Investment Regulations have established a unified, simple regulatory framework. The Insurance Laws (Amendment) Ordinance, 2014 was promulgated enhancing the foreign equity cap from 26% to 49% while safeguarding Indian ownership and control. This will enhance capital availability and ensure better access to insurance services, especially in rural areas and for economically weaker sections. Small Banks and Payments Banks are being permitted to expand the reach of the banking system. Honourable Members, 29.     My Government has taken major initiatives for improving ‘Ease of Doing Business’ through simplification and rationalization of existing rules and procedures. Leveraging IT and use of modern technologies is a key strategy. Single window in a Hub - Spoke model is being made a reality. Applying for Industrial License and Industrial Entrepreneur Memorandum can now be done online on 24x7 basis on the eBiz website. A number of entry and exit regulations have been eased out. 30.     My Government has launched the “Make in India” programme which aims to create a wholesome eco-system to transform India into a manufacturing hub. FDI in Railways has been opened up selectively to bring in much needed capital, state-of-the-art technology and global best practices. FDI in Defence has been increased to 49% subject to certain conditions. FDI norms in Construction & Development sector have been relaxed. Continuous evaluation of Inverted duties is being undertaken to make Indian industries competitive. Stress is being laid on research and innovation. While focusing our attention on manufacturing for creating more jobs, my Government will continue to work on our formidable strength in the service sector. Honourable Members, 31.     My Government is committed to realizing the true potential of entrepreneurs of India by nurturing the MSME sector. 21 MSME clusters are being supported by providing soft skills and common facilities through 965 interventions. Khadi and village industries and traditional industries clusters are initiated in border, hill and poverty-stricken areas of the country. Focus is on technology upgradation, better financial access and market linkages to MSME units. 32.     Textiles sector is the second largest employer after agriculture, providing direct employment to over 4.5 crore people. The sector also contributes one seventh of industrial production and brings more than one fourth of country’s foreign exchange inflows. The growth and all round development of this sector has a direct bearing on the improvement of our economy, particularly the poor artisans. Recent initiatives like setting up of trade facilitation centres in different parts of India, bringing textile marketing on-line, incentives for technical textiles, promotion of Pashmina, special focus on increasing the coverage in North-Eastern part of the country would lead to advancement of this sector. Honourable Members, 33.     Cities are the engines of economic growth. My Government is committed to building modern amenities and infrastructure in our urban areas. The National Urban Development Mission is being finalized, particularly focusing on water and solid waste management infrastructure. After extensive stakeholder consultations, the Smart City programme is close to finalization. These two programmes are interlinked and will prepare our nation for an increasingly urban future. Honourable Members, 34.      Robust infrastructure is critical for accelerating economic development and reviving economic growth. Indian Railways are the arteries of our economy. My Government is committed to reform and infuse new vitality into this sector through better services, improved passenger-safety, and increased movement of freight. Two Dedicated Freight Corridors (DFCs), namely, Eastern DFC and Western DFC are likely to be commissioned by 2019. Action for conducting feasibility studies for the Diamond Quadrilateral project of High Speed Trains connecting Delhi, Mumbai, Chennai and Kolkata has been taken up. Metro Rail projects have been sanctioned for Ahmadabad and Nagpur. 35.      Several policy initiatives to revive the Highway sector have been taken. “National Highways Infrastructure Development Corporation Limited” has been set up for creation of infrastructure in the North Eastern States and border regions of the country. New standards have been set to improve quality of roads, both on highways and in rural areas and electronic tolling has been introduced for hassle-free traffic on selected highways. e-Rickshaw and e-Cart have been introduced as a separate category under the Motor Vehicles Act 1988, enhancing convenience of passengers and generating thousands of jobs. 36.      My Government has taken proactive steps to promote shipping industry. These include giving life-time licenses to Indian ships, allowing Indian ships to flag out of country’s waters freely, reduction of excise duty on bunker fuel and reduction of customs duty on the steel scrap of ship breaking. Government has also formulated“Sagar Mala” Project to promote Port-led development of the coastal regions and communities. As part of“Make in India” initiative, ship designing capabilities, ship-building and ship-repair activities will be strengthened. An environment is being created to increase the Indian shipping tonnage and to reduce the transaction time on ports. An institutional arrangement for comprehensive development of National Waterways for transportation has been envisaged through the ‘Jal Marg Vikas’ Project. Honourable Members, 37.      Power sector has made commendable progress achieving 76% capacity addition by January, 2015 against the 2014-15 target of 17,830 MW. In order to provide 24x7 quality power in rural and urban areas, the Deendayal Upadhyaya Gram Jyoti Yojana with an outlay of more than ` 43,000 crore and the Integrated Power Development Scheme with an outlay of more than ` 32,600 crore, have been launched. Special attention is being paid to the un-electrified villages in remote areas. My Government has started major project for improving transmission and distribution system in the North Eastern States. We will focus on developing and strengthening the National Grid by developing high capacity power corridors. To deepen the reforms in the Electricity sector, the Electricity (Amendment) Bill 2014 has been introduced. The ambitious National Smart Grid Mission and Energy Saving Schemes have been started. 38.     My Government lays enormous emphasis on clean energy. The share of renewable energy in electricity generation is being significantly enhanced from 6% to 15% of the energy mix in the next 7 years. The scheme for setting up 25 mega Solar Parks has been approved. The implementation of the Green Energy Corridor Schemehas been accelerated. Setting up of solar generating capacities along the international borders will be a key area of attention. My Government has made successful efforts in attracting the Global investors in this sector. Similar attention is being paid to bio-mass and hydro-energy. Government will further expand India’s nuclear power capacity with the highest global standards of safety and technological standards. Honourable Members, 39.     The petroleum sector has seen major reforms. Diesel prices have been deregulated and are now market driven. The price of petrol has also been decreased by more than  ` 17 per litre. The Government has put to rest all speculation regarding the long pending issue of revising gas prices and put in place a prudent policy in national interest. The ethanol policy has been revised to promote use of ethanol in petrol and help sugarcane farmers. 40.     My Government is committed to optimum utilization and transparency in allocation of natural resources. The process for auction of coal blocks has been started in a manner which will reduce the power costs in the country, provide adequate fuel to increase power generation, enhance production of steel, cement, aluminium and other essential materials. This will also provide huge resources from allotment of mines to the mineral and coal bearing states particularly in eastern areas for accelerated development of the region. The swift and timely action taken by my government in this regard prevented the closure of mines which otherwise would have rendered thousands jobless. In coming years, my Government would make focussed efforts to expand exploration capacity and to increase domestic coal production to 1000 MTPA. Honourable Members, 41.       Water is the lifeline of human civilization. River Ganga has a very special place in the collective consciousness of our country. “Namami Gange”, an Integrated Ganga Conservation Mission has been set-up with budgetary allocation of more than ` 2000 crore. The Government is fully committed to the implementation of Interlinking of Rivers Project with due consultation process. 42.     My Government took several proactive steps for protecting wildlife and for promoting cleaner environment. Stringent emission norms for cement industry were prescribed. Real-time online monitoring of industrial units in 17 critically polluting sectors was started and National Air Quality Index launched. Compensatory Afforestation Fund Management and Planning Authority (CAMPA) would be strengthened and adequate funds released to States/UTs for aggressive afforestation and wildlife protection. Government has taken significant steps to streamline clearance processes in environmental sector by bringing in transparency and by empowering State Governments. Online application processes for Environment, Forest and CRZ Clearances were introduced from July, 2014. Honourable Members, 43.     To harness the enormous potential in the tourism sector, a new Tourism policy for growth and sustainability of tourism is on the anvil. “Tourist Visa on Arrival” enabled with Electronic Travel Authorization, has been expanded to 44 countries. Infrastructure and amenities are being upgraded in major tourist and pilgrimage destinations. River Ghats in several pilgrim destinations are being renovated. A special initiative for protecting and preserving the sanctity of our tourist destinations and monuments of national heritage has been launched. Dedicated tourist trains covering Jyotirling Circuits, Sukhmangal Circuit and Dakshin Dham Circuit have been started. A new scheme has been launched for development of tourist circuits called “Swadesh Darshan”,which includes Krishna Circuit, Himalayan Circuit, Coastal Circuit, Buddha Circuit, and North East Circuits. A Statue of Unity is being constructed to commemorate the memory of Sardar Patel. Honourable Members, 44.     My Government is committed to restore and rejuvenate the soul of cities that are home to rich cultural heritage of our country. A scheme ‘Heritage Development and Augmentation Yojana’ (HRIDAY) covering 12 cities in the first phase has been launched with the predominant objective of preserving the tangible and intangible cultural assets of these cities. A special scheme called “PRASAD” - Pilgrimage Rejuvenation and Spirituality Augmentation Drive” - has been announced for rejuvenation of 12 pilgrim centres in convergence with “HRIDAY”. Honourable Members, 45.     Terrorism and Left Wing Extremism pose a grave challenge to the internal security of our nation. My Government is firmly committed to deal with these challenges in cohesive collaboration with the affected people and Governments of the affected States in a holistic manner. 46.     Jammu & Kashmir occupies a place of enormous importance in the agenda of my Government. Government has endeavoured to create a conducive and enabling environment in the state of Jammu and Kashmir, especially for the various displaced segments of its population. This includes facilitating the rehabilitation of over 60,000 Kashmiri Pandits families.  The Government has taken effective steps in this regard. These include, inter alia, providing Government jobs, economic opportunities and security. During the recent unprecedented flood situation in the State, my Government made special efforts in collaboration with the State Government to minimize the impact of disaster and augment rehabilitation measures. The nation is deeply indebted to our armed forces and paramilitary forces for the outstanding service rendered during the relief operations to flood affected people in Jammu & Kashmir. 47.     A high state of Disaster preparedness is the key to contain loss of life and damage to the property due to any natural disaster. This has been amply demonstrated during the response to the very severe cyclone ‘HUDHUD’, by the State Governments of Andhra Pradesh and Odisha together with the Central Government. 48.     My Government is committed to implement the idea of SMART Police (Smart but Sensitive, Modern and Mobile, Alert and Accountable, Reliable and Responsive, Tech-savvy and well Trained) to provide efficient, courteous and effective citizen services and meet the operational needs of the police personnel including women police personnel. 49.     Government is accelerating the modernization of our Armed Forces, with a strong emphasis on “Make in India” in defence acquisition plans. Several initiatives have been taken to expand domestic defence industry, including liberalization of FDI for the defence sector; a new Defence Exports Strategy; a liberalized process for issuing clearances for defence exports; and a Technology Development Fund. To encourage domestic manufacturing of defence equipments and decrease import dependency, the list of Defence items which require industrial licensing has been pruned. Honourable Members, 50.     Our Space journey continues to make impressive progress. On 24 September 2014, Mangalyaan was successfully placed in the Mars Orbit, making India the first country to do so in the first attempt. We successfully launched the first experimental flight of GSLV Mark-Ill on 19 December 2014, which will enable us to launch heavier satellites in the near future. My Government is committed to use space technology and its applications in governance, social and economic development and resource management. My Government has also decided to launch a satellite for the use of SAARC countries to foster greater partnership and development of South Asian Region. 51.       My Government is committed to deeper penetration of electronic media in remote and distant areas. Auctions will be conducted for 135 vacant channels in 69 existing cities of FM Phase-II as part of first batch of FM Phase-Ill. It will also facilitate migration of FM Phase-II to FM Phase-Ill. This will take private FM radio to cities having population of more than one lakh and border towns of Jammu & Kashmir, North-eastern region and island territories in a phased manner. 52.     Our developmental challenges will continue to shape the strategic priorities in science, technology and innovation. Steps are being taken to channelize more resources for research and development in India; build world class research centres; nurture young talent and, promote international collaboration, including in the world’s largest optical ‘Thirty Meter Telescope’. Honourable Members, 53.     Recognizing that our destiny is linked with our neighbourhood, my Government has reinvigorated our relations with our neighbours and is promoting greater cooperation and integration in South Asia. At the same time, we speak clearly about our interests and are fully prepared to defend our borders and secure our people. 54.     With the visit of Chinese President Xi Jinping, we have significantly expanded our relations with our largest neighbour, China, based on mutual respect and sensitivity to each other’s concerns and interests. We have restored confidence and momentum in our time-tested strategic partnership with Russia with President Vladimir Putin’s visit. The historic visit of U.S. President Barack Obama as the Chief Guest of the Republic Day has elevated our relations with the United States to a new level. In the coming months, we intend to further deepen our cooperation with Europe. With Japan, a deeper political, economic and security relationship is at the forefront of a more active and purposeful Act-East-Policy, which is anchored in our relations with Southeast Asia and now extends to Australia and the Pacific Islands. We are also committed to deeper engagement with West Asia, Central Asia, Africa and South Americas. 55.     My Government will continue to work with others to reform multilateral institutions, including the United Nations, and seek India’s rightful place in these institutions. We will also participate actively in regional and international groupings. Honourable Members, 56.     My Government’s efforts have enhanced global recognition for India’s rich cultural heritage and traditions. On 11th December 2014, the United Nations, with a record co-sponsorship of 177 out of 193 member countries, took the historic decision to declare 21 June as ‘International Yoga Day’, exactly within 75 days of Prime Minister’s call at the United Nations General Assembly. 57.     My Government has made an unprecedented effort to reach out to the Indian community abroad, which today not only feels more connected to India, but has responded enthusiastically to the call to participate in India’s transformation, inspired by Mahatma Gandhi, whose 100th anniversary of return to India was commemorated at this year’s Pravasi Bharatiya Diwas. Our decisions on PIO and OCI card-holders have been widely welcomed by the Indian community abroad. Honourable Members, 58.     Our Parliament is the sanctum sanctorum of Democracy. The people of India, particularly the poorest of the poor in remotest areas, have reposed unflinching faith in this institution for fulfillment of their hopes and expectations. My Government will constantly endeavour for smooth conduct of legislative business and enactment of progressive laws in the Parliament which reflects the will and aspirations of the people. I urge all Members of the Parliament to discharge their solemn responsibility in a spirit of cooperation and mutual accommodation. By channelizing the patriotic energies of every citizen, we all collectively must work towards building a strong and modern India. Ek Bharat Shresth Bharat.