The Prime Minister, Shri Narendra Modi, today called upon India`s banking sector to establish banks which rank among the top banks of the world. He was speaking at Gyan Sangam - the Bankers` Retreat in Pune. He said it was perhaps the first time that banks had given tasks to the Prime Minister through a presentation. He said the Gyan Sangam reflected team spirit and a collective will to address issues. He described Gyan Sangam as a unique initiative. He said the objective in this bankers` retreat was to find solutions to problems, and this was the first step towards catalyzing transformation. He said informal discussions helped achieve meeting of minds, which in turn enabled strategic goal setting. The Prime Minister appreciated the efforts of the banks in successfully implementing Pradhan Mantri Jan Dhan Yojana. He said this is going to have multiple effects. He said the Jan Dhan Yojana would help redefine goal setting among banks, due to enhanced confidence levels following the success of the programme. The Prime Minister said 7 crore families had benefited from direct cash transfers of LPG subsidy in just three days since January 1st. He said this represented one-third of all families India. He said such achievements should boost confidence. The Prime Minister said the banking sector of a country mirrors its economic rise. Japan and China had banks in the top ten banks of the world during their economic rise. The Prime Minister said banks would be run professionally, and there would be no interference. But accountability was essential. He said the Government had no vested interest, and public sector banks can derive strength from this fact. However, the Prime Minister said India is a democracy. He said he is against political interference, but supports political intervention, in the interest of the people. He said political intervention will enable the voice of the common man to reach such institutions. The Prime Minister said this also highlighted the issue of poor financial literacy in the country. He said today even the common man needed financial literacy. He called upon banks to take the lead in encouraging competitions on financial literacy in schools, much like mock Parliament competitions. The Prime Minister said banks should develop dedicated teams to fight cyber crime. The Prime Minister said that with 81% of branches and 77% of deposits, the net profits should improve from current levels of 45%. The Prime Minister called for developing common strengths among the 27 public sector banks. He suggested this could be done in areas such as software, and advertising. He gave the example of number portability in the telecom sector in this regard. He said this would improve the customer-centric focus of banks. The Prime Minister said public sector banks, as a team, should also be conscious of the direction in which the country is moving, and work towards simplifying procedures to facilitate the common man. The Prime Minister also called upon banks to trust the common man. The Prime Minister said the Swachhta Abhiyan has caught the imagination of the younger generation. He called upon each public sector bank to help develop 20,000 to 25,000 Swachhta entrepreneurs. He also asked banks to prioritize loans to students as this would be a very productive investment for the country. He said the country needs skill development for its youth in a big way, and banks need to take the lead in this. The Prime Minister asked public sector banks to set goals for the 75th anniversary of independence in the country in 2022. He said he had resolved to provide housing for all by 2022, and banks had a huge opportunity here, as 11 crore houses were required. The Prime Minister said banks should redefine parameters for success. For instance, let them prioritize loans to enterprises which will generate more employment, he said. The Prime Minister called for an end to lazy banking, and asked banks to take on a proactive role in helping the common man. The Prime Minister said that as part of Corporate Social Responsibility, banks should take up one sector each year to play a positive role |
Read,Write & Revise.Minimum reading & maximum learning
3 January 2015
PM's remarks at Gyan Sangam - the Bankers' Retreat in Pune
Text of PM Shri Narendra Modi’s address at the 102nd Indian Science Congress
मैं अपनी बात शुरू करने से पहले, सबसे पहले श्री वसंत गोवारिकर जो हमारे देश के गणमान्य वैज्ञानिक थे और आज ही हमारे बीच नहीं रहे। मैं इसी धरती की संतान और भारत को विज्ञान जगत में आगे बढ़ाने में जिन्होंने बहुत अहम भूमिका निभाई थी ऐसे श्रीमान वसंत गोवारिकर जो को हृदय अंतःकरण पूर्वक श्रृद्धांजलि देता हूं। Ladies and Gentlemen, It is a great honour to participate in the Indian Science Congress. I thank University of Mumbai for hosting this Congress. I had the opportunity to participate in the Congress as Chief Minister of Gujarat. I am delighted to return here after ten years. I greatly admire the rich history of this hundred-year old institution. I feel humbled by the work that scientists do. And, I find science and technology an invaluable ally in governance and development. Human civilization has advanced because of the basic human spirit of enquiry and quest for understanding our universe and world. It is a search driven by the belief in what our Vedas described as, Satye Sarvam Pratisthanam – Everything is established in Truth. Science may be the product of human brain. But, it is also driven by the compassion of human heart – the desire to make human life better. We have here with us Nobel Laureates, whose work in science has given new hope against dreaded diseases. We also have one whose own understanding of social science gave the poorest a life of hope, opportunity and dignity. Science and technology has helped reduce poverty and advance prosperity; fight hunger and improve nutrition; conquer diseases, improve health and give a child a better chance to survive; connect us to our loved ones and the world; spread education and awareness; and, given us clean energy that can make our habitat more sustainable. A nation`s progress and its human development are linked to science and technology. In more recent times, China`s emergence as the second biggest global economy is in parallel to its rise to the second place in science and technology activities. Science and technology can also remove national barriers, unify the world and advance peace. It can bring nations, rich and poor, in a shared effort to address global challenges. But, we also know that it can increase inequality, make wars more lethal and damage our environment. Sometimes, we learn about their consequences later, as we did on climate change; sometimes, these are the result of our own choices. For example, information technology was meant to increase efficiency and productivity; sometimes, however, its various distractions can easily overpower us! How often do we sit in meetings and cannot resist the temptation to catch up on our messages! So, when we speak of science and human development, we cannot divorce it from the questions of political decisions; social choices; and of equity, ethics and access. Human development has been the larger purpose and the driving force of Indian scientific pursuits. And, science has helped shape modern India. At the dawn of freedom, Prime Minister Jawaharlal Nehru placed science and technology at the heart of national development. Our scientists launched pioneering research and built outstanding institutions with modest resources that continue to serve us well. Since then, our scientists have placed us at the forefront of the world in many areas. Whenever the world shut its door on us, our scientists responded with the zeal of a national mission. When the world sought our collaboration, they reached out with the openness that is inherent in our society. They have alleviated some of our most acute and pressing challenges of human development. They helped us overcome dependence on others for such basic needs as food. They have secured our borders; supported industrial progress; and, given our people a life of opportunities and dignity. Our scientists put Mangalyaan in the Mars orbit in the first attempt - I must congratulate Radhakrishnan`s team - and their accurate prediction of Cyclone Hudhud saved thousands of lives; our nuclear scientists work for our energy security, and they have also placed India at the Asian forefront in cancer research and treatment. Our achievements give us pride, but they do not blind us to the enormous challenges that we face in India. We are at yet another moment of expectation and excitement, as we were at the birth of independent India. There is a mood of optimism for change in the country; the energy to pursue it; and, confidence to achieve it. But, the dreams we all share for India will depend as much on science and technology as it will on policy and resources - To make our agriculture more resilient and yield more; to develop appropriate and affordable technologies for rural areas; To do more from every drop of water; and, explore the potential of marine resources To preserve our biodiversity; and keep our environment clean To improve healthcare and develop medicines and medical devices that is within the reach of poorest; To make clean energy affordable and its use more efficient; To use technology to realize our dream of housing and sanitation for all; To find our own solutions to make our cities cleaner and more habitable To turn waste into wealth and resources for sustainable infrastructure of the future; To use internet to improve human development To make India a leading manufacturing nation; and a hub for knowledge and technology-intensive industries. To me, the arms of science, technology and innovation must reach the poorest, the remotest and the most vulnerable person. This is an enterprise of national importance in which each of us – Government, Industry, National Laboratories, Universities and research institutions – have to work together. Too often, a discussion on science and technology is reduced to a question of budgets. It is important; and I am confident that it will continue to grow. But, our own achievements have shown that very often a need and vision and passion are more important than resource for success. And, it is how we use resources that will determine how effective we are in making science and technology work for us. Our development challenges will naturally shape our strategic priorities in science and technology. Even as we focus on some key areas, we should not confine research and development to a few pre-determined paths. And, it is as important to focus on basic research as on research and development and innovation. We should also recognize that science is universal, but technology can be local. If we incorporate traditional and local knowledge, systems and technologies, we may develop more appropriate, effective, affordable and sustainable solutions that contribute immensely to human development and progress. As the major source of science and technology efforts in the country, Government must do its part. When I speak of ease of doing business in India, I also want to pay equal attention to the ease of doing research and development in India. Funding proposals must not take too long to clear; meeting application requirement should not become more complex than research; approval process should not become a deterrent for international conference; and, our scientific departments must have flexibility of funding decisions based on the uncertainties inherent in research activities. We want our scientists and researchers to explore the mysteries of science, not of government procedures. We want them to consider publications, not government approvals, to be the epitome of their success. We must also have clear regulatory policies for research and development in areas like biotechnology, Nano-Science, agriculture and clinical research. We should ensure that our strong intellectual property regime continues to work effectively and provides the right balance between private incentives and social good. Further, not just scientific departments, but every other department in the Government should see how to apply science and technology and promote research to improve their work. Each should have an officer focusing on science and technology relating to its area of work; and, allocate a percentage of its budget for such activities. We have begun this experience with Space technology. Investments in science and technology activities should also become part of the expenditure on corporate social responsibility – to be funded directly or through an autonomous fund. We also need to foster a strong culture of collaboration between institutions and across disciplines to take advantage of developments, innovations and expertise in diverse areas. My impression is that this is far from the ideal in India I will ask our ministries to make collaborations a critical requirement for their institutions and for supporting funding requests for research. We have to place the university system at the cutting edge of the research and development activities in the country. Our investments in science and technology are far too concentrated in the agencies of the Central Government and must become more broad-based. Our universities must be freed from the clutches of excessive regulation and cumbersome procedures. They must have a higher degree of academic freedom and autonomy; and, there should be as much emphasis on research as on teaching. In turn, the universities must also subscribe to the highest academic and research standards and accountability. This includes thorough peer review. We have to rapidly expand our higher education sector; yet, our existing institutions face shortage of faculty. We have a large pool of outstanding scientists and engineers working in central institutions and agencies. I want them to spend some time each year, teaching and guiding Ph.D students at a university. Our industry must also step up investments in science and technology in its own interest. India`s own pharmaceutical industry has carved out a place for itself in the world, because it invests significantly in research. Indeed, our long term global competitiveness will depend not on replicating what others have done, but through a process of sustained development and innovation. There is a growing trend of international collaboration in research and development, not just among business enterprises, but equally among researchers and scholars at universities and laboratories. We should take full advantage of this. For this reason, I have placed science and technology at the forefront of our diplomatic engagement. As I have travelled abroad, I have personally sought out scientists to explore collaborations in areas like clean energy, agriculture, biotechnology, medicine and healthcare. We have built excellent partnerships with all leading nations to address the grand challenges of the world today. I have also offered our expertise to our neighbours and other developing countries. I have often spoken of skill development for our youth. Our future will be secure and our global leadership possible, if we also prepare the next generation of world class scientists, technologists and innovators. School education in science and mathematics should become more creative and stimulating. Let us also use Internet to bring the best of our scientists in direct contact with our children and our youth. Digital connectivity should become as much a basic right as access to school. I welcome the initiatives of Department of Science and Technology for involving thousands of children and youth in science and technology. It is not surprising that our young minds are winning international competitions and 12 of them have minor comets named after them! Our children should seek role model in scientists as much as in sportsmen. Their parents should feel as much pride in their children seeking a future in science as in business or civil service. For this, we need to communicate the power and possibilities of science better. Let us, for example, make science and technology the theme of Republic Day parade in the near future. We need to celebrate our scientific achievements as much as we rejoice in our success in other areas. We should give young participants and winners in science fairs maximum public recognition and sustained support of the government. I would personally love to meet the best of our young scientists. In conclusion, let me say for a safe, sustainable, prosperous future for India; or global leadership in a knowledge and technology intensive world, we need to put science, technology and innovation at the top of national priorities. I am confident that we can do it. We in India are the inheritors of a thriving tradition of Indian science and technology since ancient times. Mathematics and medicine; metallurgy and mining; calculus and textiles; architecture and astronomy - the contribution the Indian civilization to human knowledge and advancement has been rich and varied. We can draw inspiration and confidence from our numerous successes over the past six decades in difficult circumstances; the strength of our many institutions; and, India`s rich talent in science, reflected in the five distinguished Indian scientists, whom we have just honoured. Above all, we must restore the pride and prestige of science and scientists in our nation; revive the romance for science in society; rekindle the love for it in our children; and, encourage our scientists - to dream, imagine and explore. You will have no better supporter than me. In turn, I seek your help in transforming India. Thank you very much, wish you all the best. |
Behind 80 senseless deaths The December clashes in Assam may merely have exploited an issue simmering for decades
Presumably in the interests of factual reporting, Assamnewspapers published a full list of those who died in theBodo-Adivasi clashes in Assam in December. Dead from gunshot wounds at Ultapani were Karnilian Murmu (5), Lakhi Soren (12), Lupsri Kisku (3), Takur Soren (70), Pindula Soren (60), Pulmoni Tudu (70) and Paran Murmu (1), among others. What opinion could a five-year old or a one-year old have on the establishment of a sovereign state - Bodo or Adivasi? As in all ethnic clashes, the killings appeared, prima facie, to be senseless. Of the 80 bodies found so far, more than 40 are those of children, women or men above 60. Soft targets, in other words, hunted down, many shot at point-blank range.
The location of the clashes is also puzzling. The areas where the Adivasis were killed (retaliation followed) were either in that part of Assam that borders Bhutan; or the Assam-Arunachal Pradesh border. These are extremely remote; and also on the outer fringes of the region known as Bodoland.
So somebody, probably hired guns, attacked these villages picking out targets that they knew would not fight back, and having created confusion and terror, slipped out of Assam to vanish either into the Garo hills or Bhutan. As Adivasi families grieved and wailed, the state government was thrown into a panic, rushing troops and weapons to quell a militant group that all observers agree, is no more than 200 strong.
The targets then, were two: the Adivasis; and the state government led by third term Chief Minister Tarun Gogoi.
The killings, according to the state government, were carried out by the National Democratic Front of Bodoland (Songbijit). To understand how this group came into existence, a quick recap of events over the last few decades would help. The Bodos (currently about 36 per cent of Assam's population) consider themselves a persecuted minority in Assam and believe they deserve a separate region. To "help" the Bodos in their struggle for a homeland, successive Congress governments in Assam gave them moral and material assistance, sometimes covertly. The Bodos became a useful counterpoise against the Assam Gana Parishad. Later, the Congress tried to make good on its promise and a Bodo Territorial Autonomous District (BTAD) was granted to them. This was a notional homeland: because neither the Bodos who occupied the region nor the Adivasis nor the Muslims had any land rights. They don't, till today. As a result, the Bodos have political power and wealth on the strength of arbitrage and rental income (largely from the funds that flow in for the development of the BTAD), but no real economic power. The other groups don't even have that.
The leader of the militant Bodos was Ranjan Daimary. With his followers, he came overground but a split in the outfit caused the more militant of the Bodos - those elements which later became hired guns - to band under Songbijit Ingti Kathar. Ironically, Songbijit Kathar isn't even a Bodo - he is a Karbi. It is his group that has carried out the mayhem in the Adivasi areas in December 2014. He himself is said to be in Myanmar.
But here's the twist in the tale. For years in the north-east, political parties and chief ministers have, through the top police bureaucracy, patronised one or other militant group. We still don't know the full details and dimensions of the Saradha scam in Assam, but the Ponzi scheme may have been used to launder money as well. The country was shaken awake when former Director General of Police Shankar Barua killed himself a day after the Central Bureau of Investigation (CBI) questioned him in the Saradha scam. After that, the police headquarters in Assam has issued a circular saying that no cases should be registered in the Saradha scam without "prior approval from appropriate levels in the PHQ".
In November, former Assam Education Minister Himanta Biswa Sarma appeared before the CBI in Kolkata in connection with the Saradha scam.
Did the Bodo-Adivasi clash have something to do with the Saradha scam? A former Home Secretary was succinct. He said "Anything is possible in Assam". He recalled that a top police official in Assam who had access to endless slush funds (meant for informants) tried to mislead the home ministry on the circumstances of an attack on a place of worship. When then Home Minister P Chidambaramtried to investigate the "leads" offered by the official, they were found to be fake. Justifications were offered by him on the use to which the slush funds were put. Smelling a rat, the Union home minister tried to get the official moved out. He couldn't.
In these circumstances, it is possible that the December clashes in Assam merely exploited an issue simmering for decades. The motivation, however, was something else. What it did succeed in doing was to badly shake the already fragile Tarun Gogoi government. The question to answer is: who gained from that?
The location of the clashes is also puzzling. The areas where the Adivasis were killed (retaliation followed) were either in that part of Assam that borders Bhutan; or the Assam-Arunachal Pradesh border. These are extremely remote; and also on the outer fringes of the region known as Bodoland.
So somebody, probably hired guns, attacked these villages picking out targets that they knew would not fight back, and having created confusion and terror, slipped out of Assam to vanish either into the Garo hills or Bhutan. As Adivasi families grieved and wailed, the state government was thrown into a panic, rushing troops and weapons to quell a militant group that all observers agree, is no more than 200 strong.
The targets then, were two: the Adivasis; and the state government led by third term Chief Minister Tarun Gogoi.
The killings, according to the state government, were carried out by the National Democratic Front of Bodoland (Songbijit). To understand how this group came into existence, a quick recap of events over the last few decades would help. The Bodos (currently about 36 per cent of Assam's population) consider themselves a persecuted minority in Assam and believe they deserve a separate region. To "help" the Bodos in their struggle for a homeland, successive Congress governments in Assam gave them moral and material assistance, sometimes covertly. The Bodos became a useful counterpoise against the Assam Gana Parishad. Later, the Congress tried to make good on its promise and a Bodo Territorial Autonomous District (BTAD) was granted to them. This was a notional homeland: because neither the Bodos who occupied the region nor the Adivasis nor the Muslims had any land rights. They don't, till today. As a result, the Bodos have political power and wealth on the strength of arbitrage and rental income (largely from the funds that flow in for the development of the BTAD), but no real economic power. The other groups don't even have that.
The leader of the militant Bodos was Ranjan Daimary. With his followers, he came overground but a split in the outfit caused the more militant of the Bodos - those elements which later became hired guns - to band under Songbijit Ingti Kathar. Ironically, Songbijit Kathar isn't even a Bodo - he is a Karbi. It is his group that has carried out the mayhem in the Adivasi areas in December 2014. He himself is said to be in Myanmar.
But here's the twist in the tale. For years in the north-east, political parties and chief ministers have, through the top police bureaucracy, patronised one or other militant group. We still don't know the full details and dimensions of the Saradha scam in Assam, but the Ponzi scheme may have been used to launder money as well. The country was shaken awake when former Director General of Police Shankar Barua killed himself a day after the Central Bureau of Investigation (CBI) questioned him in the Saradha scam. After that, the police headquarters in Assam has issued a circular saying that no cases should be registered in the Saradha scam without "prior approval from appropriate levels in the PHQ".
In November, former Assam Education Minister Himanta Biswa Sarma appeared before the CBI in Kolkata in connection with the Saradha scam.
Did the Bodo-Adivasi clash have something to do with the Saradha scam? A former Home Secretary was succinct. He said "Anything is possible in Assam". He recalled that a top police official in Assam who had access to endless slush funds (meant for informants) tried to mislead the home ministry on the circumstances of an attack on a place of worship. When then Home Minister P Chidambaramtried to investigate the "leads" offered by the official, they were found to be fake. Justifications were offered by him on the use to which the slush funds were put. Smelling a rat, the Union home minister tried to get the official moved out. He couldn't.
In these circumstances, it is possible that the December clashes in Assam merely exploited an issue simmering for decades. The motivation, however, was something else. What it did succeed in doing was to badly shake the already fragile Tarun Gogoi government. The question to answer is: who gained from that?
Who has slipped on oil? Back in 2005-06, the government subsidy on petroleum products was a modest Rs 2,930 crore
Since history can give us interesting perspectives on current issues, it is instructive to look back to a previous time when oil prices were at or near the current price of $60 per barrel. That was nine years ago, in 2005-06 - when India's average import cost of oil was $55 per barrel. Since then the rupee-dollar exchange rate has moved from 44 to 63, making the dollar more expensive by 43 per cent. At $60, therefore, oil imports today cost 56 per cent more, when counted in rupees. With that as background, consider what has happened to retail prices for the main petroleum products - petrol, diesel, cooking gas and kerosene - in Delhi. The figures will be different elsewhere because of local taxes.
Petrol has moved up by slightly more than 50 per cent, from about Rs 40 per litre, and diesel by 70 per cent from about Rs 30. As for the two still-subsidised products, kerosene (which has the maximum subsidy per litre) has gone from Rs 9 to Rs 15 per litre, or an increase of 67 per cent, while subsidised cooking gas has moved up by 42 per cent, to Rs 417 per cylinder. In the same period, consumer prices have doubled. Two conclusions follow. First, the retail prices of petroleum products have moved broadly in line with, or somewhat more than, the rupee cost of oil imports. Second, the prices of all petroleum products have gone up by very much less than general inflation. In the basket of total consumer expenditure, petroleum products now occupy less space.
Now let's look at what has happened to taxes and subsidies. Back in 2005-06, the government subsidy on petroleum products was a modest Rs 2,930 crore. That figure has ballooned in the 2014-15 Budget to Rs 65,000 crore, or some 22 times what it was nine years ago. The follow-on question is whether additional tax collections have neutralised the increase in subsidies. In other words, has the government taken with the left hand, as tax, what it has given with the right hand as subsidies? That might well appear to be the case. The duty from excise on petroleum products in 2005-06 yielded excise revenue of Rs 97,900 crore, plus customs revenue of about Rs 9,000 crore. In comparison, the excise revenue Budget for the current year is Rs 1.65 lakh crore; and there is no customs duty. So there is an increase of 54 per cent, over nine years, between the two revenue totals. But this is mostly explained by the increase in physical consumption. The domestic production of crude oil plus net imports totalled about 125 million tonnes in 2005-06, which compares with a likely figure of 190 million tonnes this year. The increase in physical consumption is over 50 per cent. Hence, 54 per cent higher tax revenues.
Net of subsidies, petroleum yielded revenue of Rs 1.04 lakh crore in 2005-06. It will probably yield less this year, despite vastly increased consumption. Against budgeted excise revenue of Rs 1.65 lakh core, the budgeted subsidy is Rs 65,000 crore, leaving net revenue collection of Rs 1 lakh crore. It could turn out to be less, because the subsidy bill for the first half of the year was Rs 51,100 crore, and the subsidies on kerosene and cooking gas continue even now, though at a lower level. One can refine these numbers by bringing in other factors, but there is only one broad conclusion possible. In relative terms, consumers have been protected, while the Budget has taken a hit that shows up in a higher deficit. If crude oil and retail petroleum product prices stay where they are now, the net revenue picture next year will be better. But if crude oil prices go up, as some say they will, the government should pass on the higher cost and not absorb it.
Petrol has moved up by slightly more than 50 per cent, from about Rs 40 per litre, and diesel by 70 per cent from about Rs 30. As for the two still-subsidised products, kerosene (which has the maximum subsidy per litre) has gone from Rs 9 to Rs 15 per litre, or an increase of 67 per cent, while subsidised cooking gas has moved up by 42 per cent, to Rs 417 per cylinder. In the same period, consumer prices have doubled. Two conclusions follow. First, the retail prices of petroleum products have moved broadly in line with, or somewhat more than, the rupee cost of oil imports. Second, the prices of all petroleum products have gone up by very much less than general inflation. In the basket of total consumer expenditure, petroleum products now occupy less space.
Now let's look at what has happened to taxes and subsidies. Back in 2005-06, the government subsidy on petroleum products was a modest Rs 2,930 crore. That figure has ballooned in the 2014-15 Budget to Rs 65,000 crore, or some 22 times what it was nine years ago. The follow-on question is whether additional tax collections have neutralised the increase in subsidies. In other words, has the government taken with the left hand, as tax, what it has given with the right hand as subsidies? That might well appear to be the case. The duty from excise on petroleum products in 2005-06 yielded excise revenue of Rs 97,900 crore, plus customs revenue of about Rs 9,000 crore. In comparison, the excise revenue Budget for the current year is Rs 1.65 lakh crore; and there is no customs duty. So there is an increase of 54 per cent, over nine years, between the two revenue totals. But this is mostly explained by the increase in physical consumption. The domestic production of crude oil plus net imports totalled about 125 million tonnes in 2005-06, which compares with a likely figure of 190 million tonnes this year. The increase in physical consumption is over 50 per cent. Hence, 54 per cent higher tax revenues.
Net of subsidies, petroleum yielded revenue of Rs 1.04 lakh crore in 2005-06. It will probably yield less this year, despite vastly increased consumption. Against budgeted excise revenue of Rs 1.65 lakh core, the budgeted subsidy is Rs 65,000 crore, leaving net revenue collection of Rs 1 lakh crore. It could turn out to be less, because the subsidy bill for the first half of the year was Rs 51,100 crore, and the subsidies on kerosene and cooking gas continue even now, though at a lower level. One can refine these numbers by bringing in other factors, but there is only one broad conclusion possible. In relative terms, consumers have been protected, while the Budget has taken a hit that shows up in a higher deficit. If crude oil and retail petroleum product prices stay where they are now, the net revenue picture next year will be better. But if crude oil prices go up, as some say they will, the government should pass on the higher cost and not absorb it.
The caste of institutions There is a hierarchy of institutions set by their provenance: constitutional, statutory and administrative
Governments are lucky. They receive a lot of free advice about how they should govern. But they are also unlucky in that much of this advice is impractical. The Narendra Modigovernment is no exception to this. It has already received more than its share.
Of late, a lot has been written and spoken to impress upon it the importance of "institutions" because many of the ancien regime are convinced that it is out to destroy them. Political scientists have been leading the annoyingly persistent chatter. Economists have not been far behind.
Indeed for some of these people, institutions - only the ones they like, naturally - have become the equivalent of Einstein's elusive unified general theory, the one thing whose presence or absence explains everything in the Universe.
Hence, goes their argument, when "modern" institutions work well, a country succeeds. When they don't, it fails.
Well, hurrah, folks, well done, for telling us that a car will run if there is petrol in the tank and not if the tank is empty. We would never have guessed.
The most important strand of this jabber has been the notion of "independence". That, too, like the original idea has become an article of faith.
But who can quarrel with that? The problem, though, is there is no agreement on its meaning. So the debate is a free-for-all, which allows the government to ignore it.
Nor has anyone in India - that I know of, at least - delved into the design and evolution of institutions at the same time. They have tended to talk of either the one or the other but not the dynamics between the two.
This one-at-a-time approach has led "experts" to reach the wrong conclusions. It has been like trying to gauge the distance of something with one eye closed - very hard, and with a high probability of getting it wrong.
The caste ranking
Regarding the independence issue, Pradeep Singh Mehta, the expansive and highly successful head of the omnipresent advocacy group Consumer Unity & Trust Society (CUTS), once asked me to write something on it. They later published some of it as a discussion paper (www.cuts-international.org/pdf/Institutional_Independence_in_India.pdf).
While boning up on the topic, I realised that in India institutions created by the Constitution generally delivered better results than the ones created by Parliament and executive orders. I also realised that India's institutions can be split into three categories - constitutional, statutory and, shall we say, whimsical, like the Planning Commission, now called NITI Aayog.
The first lot, the constitutional ones - Parliament, judiciary, election commission, comptroller and auditor general, finance commission, to name a few - have generally performed well because the Constitution has guaranteed their independence. Moreover, their working has improved hugely over the last two decades as they have beaten back attempts by the (Congress) governments to subordinate them.
The second lot, the ones set up by Acts of Parliament - the Reserve Bank, the Central Vigilance Commission, the Securities and Exchange Board of India (Sebi) and so on - have also worked, but less well. One reason is that they report to the government and the scope for behind-the-scenes executive interference has been quite large.
The third lot, the ones set up by the ministries, aren't really "institutions" at all but important for the role they are expected to play. They have worked least well, or even badly, because they have been reduced to being the Gunga Dins of the parent ministry. Fortunately, these have been restricted to regulatory bodies whose decisions are subject to review.
What matters to the country is the dynamic between them. Any discussion that lumps them all into one bag is quite pointless.
The hai-tauba brigade
Once you grasp this, much of the angst over how our institutions have been "eroding" becomes like Brahminical handwringing of the "dharm bhrasht ho raha hai" variety. But there is another way of looking at it.
Change is inherent in any dynamics. To moan about it is silly. To ask for it to stop is to behave like a khap panchayat. One may well ask what constitutes good change and what bad. The short answer is we don't know. This is because no one can tell in the short run whether a change is good or bad. Thus, did Nehru do the right thing in amending the Hindu marriage and succession Acts in the mid-1950s? And so on.
That is why it is important to remember that instant judgements that are made rely more on prejudice than on any objective assessment because the evidence has not yet come into being to make a judgement.
Finally, it is also important, especially for the hai-tauba brigade, to distinguish between political and administrative interference in the working of "institutions". The two lead to very different consequences.
Someone in his or her 30s, unburdened by the foolish debates of the past, needs to study all this objectively. Even a half definitive study will help restore the proper perspective.
Of late, a lot has been written and spoken to impress upon it the importance of "institutions" because many of the ancien regime are convinced that it is out to destroy them. Political scientists have been leading the annoyingly persistent chatter. Economists have not been far behind.
Indeed for some of these people, institutions - only the ones they like, naturally - have become the equivalent of Einstein's elusive unified general theory, the one thing whose presence or absence explains everything in the Universe.
Hence, goes their argument, when "modern" institutions work well, a country succeeds. When they don't, it fails.
Well, hurrah, folks, well done, for telling us that a car will run if there is petrol in the tank and not if the tank is empty. We would never have guessed.
The most important strand of this jabber has been the notion of "independence". That, too, like the original idea has become an article of faith.
But who can quarrel with that? The problem, though, is there is no agreement on its meaning. So the debate is a free-for-all, which allows the government to ignore it.
Nor has anyone in India - that I know of, at least - delved into the design and evolution of institutions at the same time. They have tended to talk of either the one or the other but not the dynamics between the two.
This one-at-a-time approach has led "experts" to reach the wrong conclusions. It has been like trying to gauge the distance of something with one eye closed - very hard, and with a high probability of getting it wrong.
The caste ranking
Regarding the independence issue, Pradeep Singh Mehta, the expansive and highly successful head of the omnipresent advocacy group Consumer Unity & Trust Society (CUTS), once asked me to write something on it. They later published some of it as a discussion paper (www.cuts-international.org/pdf/Institutional_Independence_in_India.pdf).
While boning up on the topic, I realised that in India institutions created by the Constitution generally delivered better results than the ones created by Parliament and executive orders. I also realised that India's institutions can be split into three categories - constitutional, statutory and, shall we say, whimsical, like the Planning Commission, now called NITI Aayog.
The first lot, the constitutional ones - Parliament, judiciary, election commission, comptroller and auditor general, finance commission, to name a few - have generally performed well because the Constitution has guaranteed their independence. Moreover, their working has improved hugely over the last two decades as they have beaten back attempts by the (Congress) governments to subordinate them.
The second lot, the ones set up by Acts of Parliament - the Reserve Bank, the Central Vigilance Commission, the Securities and Exchange Board of India (Sebi) and so on - have also worked, but less well. One reason is that they report to the government and the scope for behind-the-scenes executive interference has been quite large.
The third lot, the ones set up by the ministries, aren't really "institutions" at all but important for the role they are expected to play. They have worked least well, or even badly, because they have been reduced to being the Gunga Dins of the parent ministry. Fortunately, these have been restricted to regulatory bodies whose decisions are subject to review.
What matters to the country is the dynamic between them. Any discussion that lumps them all into one bag is quite pointless.
The hai-tauba brigade
Once you grasp this, much of the angst over how our institutions have been "eroding" becomes like Brahminical handwringing of the "dharm bhrasht ho raha hai" variety. But there is another way of looking at it.
Change is inherent in any dynamics. To moan about it is silly. To ask for it to stop is to behave like a khap panchayat. One may well ask what constitutes good change and what bad. The short answer is we don't know. This is because no one can tell in the short run whether a change is good or bad. Thus, did Nehru do the right thing in amending the Hindu marriage and succession Acts in the mid-1950s? And so on.
That is why it is important to remember that instant judgements that are made rely more on prejudice than on any objective assessment because the evidence has not yet come into being to make a judgement.
Finally, it is also important, especially for the hai-tauba brigade, to distinguish between political and administrative interference in the working of "institutions". The two lead to very different consequences.
Someone in his or her 30s, unburdened by the foolish debates of the past, needs to study all this objectively. Even a half definitive study will help restore the proper perspective.
The burden of criminal neglect
The absence of state accountability is at the core of issues facing tribal communities
The Report of the High Level Committee on Socio-Economic, Health and Educational Status of Tribal Communities of India, under the chairmanship of sociologist Virginius Xaxa, was circulated last week. The 431-page report details the situation of tribal communities: Scheduled Tribes, de-notified tribes and particularly vulnerable tribal communities. Taking on board the findings and demands of social movements, NGOs, researchers and bureaucrats, the report consolidates what we already know about the situation of tribal communities in this country. Without detracting from its significance as an archive, it is important to revisit some basic questions at this moment that have been brought to the fore yet again.
Sixty per cent of the forest area in the country is in tribal area. Fifty-one of the 58 districts with forest cover greater than 67 per cent are tribal districts. Three States — Odisha, Chhattisgarh and Jharkhand — account for 70 per cent of India’s coal reserves, 80 per cent of its high-grade iron ore, 60 per cent of its bauxite and almost 100 per cent of its chromite reserves. Forty per cent of those displaced by dams are tribal peoples. A look at violent conflict, whether in Schedule V States or in Schedule VI States, shows that “the state is involved in all of these conflicts in some way or another.” Not surprisingly, the areas where these wars are being waged (with the state as party) are tribal areas with rich mineral reserves. The Armed Forces (Special Powers) Act guarantees impunity to state perpetrators of extrajudicial murder and assault, and there are a large number of peaceful mass movements against the appropriation of tribal homelands by the state and by corporations.
While there is a generally discernible occupational shift in tribal communities, the committee observes, the focus of national state agencies on mainstream categorisations of agricultural labourers, cultivators and the omnibus category of non-farm workers masks the finer details of tribal work-worlds and therefore obstructs an understanding of shifts therein. The need for tribal communities to have continued and uninterrupted access to forests for livelihoods and the responsibility of the state in securing these livelihoods, ensuring their viability, and providing an account of their diversity; creating enabling conditions for the dignity of work and sustainability; and plans for protecting and removing both conflict and livelihood degradation caused by the repressive presence of the forest bureaucracy in tribal areas are issues that merit greater attention.
The absence of state accountability and responsibility are at the core of the problem.
Governance of tribal areas
The question of autonomy in scheduled areas has been set out in Schedules V and VI of the Constitution. In Schedule V areas, the Tribes Advisory Council — a body with elected and community representatives from Scheduled Tribes — will advise the governor on matters of administration and governance in scheduled areas. Extensive review has shown that although governors are vested with enormous powers with respect to Schedule V areas, they have been found uniformly tardy in the matter of submission of reports and in respecting the constitutional guarantee of autonomy to tribal areas — leading the High Level Committee to recommend the setting up of a cell “in order for the Governor to properly carry out the duties of the post vis-à-vis protection of the tribes” (emphasis added) with a whisper that this cell should not just turn into another bureaucratic institution with little interest in tribal affairs. The deliberations of the Tribes Advisory Councils have been found to be tokenistic, and the councils themselves filled with bureaucrats and ministers instead of representatives of tribal communities with effective voice. Even with the Autonomous Councils in the Schedule VI States, which have a more robust formal autonomy, the committee finds that “there is a huge discrepancy between the formal rules guaranteeing autonomy and the informal workings of autonomy on the ground.”
The question of autonomy in scheduled areas has been set out in Schedules V and VI of the Constitution. In Schedule V areas, the Tribes Advisory Council — a body with elected and community representatives from Scheduled Tribes — will advise the governor on matters of administration and governance in scheduled areas. Extensive review has shown that although governors are vested with enormous powers with respect to Schedule V areas, they have been found uniformly tardy in the matter of submission of reports and in respecting the constitutional guarantee of autonomy to tribal areas — leading the High Level Committee to recommend the setting up of a cell “in order for the Governor to properly carry out the duties of the post vis-à-vis protection of the tribes” (emphasis added) with a whisper that this cell should not just turn into another bureaucratic institution with little interest in tribal affairs. The deliberations of the Tribes Advisory Councils have been found to be tokenistic, and the councils themselves filled with bureaucrats and ministers instead of representatives of tribal communities with effective voice. Even with the Autonomous Councils in the Schedule VI States, which have a more robust formal autonomy, the committee finds that “there is a huge discrepancy between the formal rules guaranteeing autonomy and the informal workings of autonomy on the ground.”
As a remedy, the committee recommends that Governors’ Cells be set up in all Schedule V States to assist the Governor, although details about the functioning of such cells set up in Chhattisgarh, Jharkhand, Maharashtra and Rajasthan are not yet known.
Also read: Taking healthcare to India’s remote tribes
What might be the modalities for an ad hoc “cell” to show a constitutional authority the right path to ‘good governance’?
Data reproduced in the report from the years 1981-82 showed a drop out rate of 91.65 per cent before completion of tenth standard, with a participation in higher education of 1.62 per cent among the Scheduled Tribes. While flagship programmes and policies have been introduced with laudable objectives, the committee observes that inadequate infrastructure, poor teaching and learning materials, lack of focus on teacher education, and the impact of armed conflict on teacher absenteeism and school functioning, and practices of discrimination and stigmatisation in schools have affected tribal children most adversely. Added to this is the rampant and routinised corruption in government schooling system, an issue that has not been addressed, but one that has an immediate and disastrous effect on the child’s and teachers’ well-being. All of these together hold tribal children in a chokehold, pushing them back into ghettoised suboptimal learning possibilities and grinding poverty.
Tribal life-worlds
Where does the solution lie? Might common schools be an answer? Should schooling continue in the “separate and unequal” mode? And most importantly, the state and adult citizens hold the responsibility for protecting the rights of all children in trust. It is no longer a question of quibbling over numbers — of schools, teachers, dropouts, enrolment, etc. If the outcome is that tribal children do not get a decent education, the state is responsible both for the absence of due diligence and for direct derogation of fundamental rights of children. On another level, the question is not merely one of the exposure of tribal children to the world outside; more critical is the need to promote an understanding of diverse tribal life-worlds in all children through a restructuring of education.
Where does the solution lie? Might common schools be an answer? Should schooling continue in the “separate and unequal” mode? And most importantly, the state and adult citizens hold the responsibility for protecting the rights of all children in trust. It is no longer a question of quibbling over numbers — of schools, teachers, dropouts, enrolment, etc. If the outcome is that tribal children do not get a decent education, the state is responsible both for the absence of due diligence and for direct derogation of fundamental rights of children. On another level, the question is not merely one of the exposure of tribal children to the world outside; more critical is the need to promote an understanding of diverse tribal life-worlds in all children through a restructuring of education.
Tribal land alienation and dispossession are at the crux of the crisis tribal communities face across the country — acquisition of land by the state using the principle of ‘eminent domain’; manipulation of records and incorrect interpretation of law; encroachment of tribal land by non-tribal people and immigrants; creation of national parks; and armed conflict resulting in forced migration and eviction from homelands. There are questions related to the routinisation of arbitrary arrest, illegal detention and torture in custody of tribal people living in conflict areas. There are no figures publicly available on the demographic profile of prisoner/detainee populations in Schedule V areas. The important guarantee under Article 21 of the Constitution — right to life and personal liberty — is in a state of perpetual suspension in tribal areas. If one were to go by the data and observations put forth by the High Level Committee, once more we learn that the state is waging war at every level against tribal communities across States. Added to this is criminal neglect and violent corruption that has systematically obstructed the delivery of public goods and services. There is a proliferation of reports — of bureaucratic writing generally —as an end in itself.
What are we to do with this information? The government set up a committee that found the state complicit both directly as perpetrator and through the absence of due diligence in genocidal neglect of tribal peoples.
Where do we go from here?
NHP-2015 V
1 Goal:
The attainment of the highest possible level of good health and well-being, through a
preventive and promotive health care orientation in all developmental policies, and universal
access to good quality health care services without anyone having to face financial hardship as a
consequence.
3.2.Key Policy Principles:
Equity: Public expenditure in health care, prioritizing the needs of the most vulnerable, who
suffer the largest burden of disease, would imply greater investment in access and financial
protection measures for the poor. Reducing inequity would also mean affirmative action to
reach the poorest and minimizing disparity on account of gender, poverty, caste, disability,
other forms of social exclusion and geographical barriers.
Universality: Systems and services are designed to cater to the entire population- not only a
targeted sub-group. Care to be taken to prevent exclusions on social or economic grounds.
Patient Centered & Quality of Care: Health Care services would be effective, safe, and
convenient, provided with dignity and confidentiality with all facilities across all sectors being
assessed, certified and incentivized to maintain quality of care.
Inclusive Partnerships: The task of providing health care for all cannot be undertaken by
Government, acting alone. It would also require the participation of communities – who view
this participation as a means and a goal, as a right and as a duty. It would also require the
widest level of partnerships with academic institutions, not for profit agencies and with the
commercial private sector and health care industry to achieve these goals.
Pluralism: Patients who so choose and when appropriate, would have access to AYUSH care
providers based on validated local health traditions. These systems would also have Government support and supervision to develop and enrich their contribution to meeting the
national health goals and objectives. Research, development of models of integrative practice,
efforts at documentation, validation of traditional practices and engagement with such
practitioners would form important elements of enabling medical pluralism.
Subsidiarity: For ensuring responsiveness and greater participation, increasing transfer of
decision making to as decentralized a level as is consistent with practical considerations and
institutional capacity would be promoted. (Nothing should be done by a larger and more
complex organization which can be done as well by a smaller and simpler organization.)
Accountability: Financial and performance accountability, transparency in decision making,
and elimination of corruption in health care systems, both in the public systems and in the
private health care industry, would be essential.
Professionalism, Integrity and Ethics: Health workers and managers shall perform their
work with the highest level of professionalism, integrity and trust and be supported by a
systems and regulatory environment that enables this.
Learning and Adaptive System: constantly improving dynamic organization of health care
which is knowledge and evidence based, reflective and learning from the communities they
serve, the experience of implementation itself, and from national and international knowledge
partners.
Affordability: As costs of care rise, affordability, as distinct from equity, requires emphasis.
Health care costs of a household exceeding 10% of its total monthly consumption expenditures
or 40% of its non-food consumption expenditure- is designated catastrophic health
expenditures- and is declared as an unacceptable level of health care costs. Impoverishment
due to health care costs is of course, even more unacceptable.
3.3.Objectives:3.3.1. Improve population health status through concerted policy action in all sectors and
expand preventive, promotive, curative, palliative and rehabilitative services provided by the
public health sector.
3.3.2. Achieve a significant reduction in out of pocket expenditure due to health care costs and
reduction in proportion of households experiencing catastrophic health expenditures and
consequent impoverishment.
3.3.3. Assure universal availability of free, comprehensive primary health care services, as an
entitlement, for all aspects of reproductive, maternal, child and adolescent health and for the
most prevalent communicable and non-communicable diseases in the populationEnable universal access to free essential drugs, diagnostics, emergency ambulance
services, and emergency medical and surgical care services in public health facilities, so as to
enhance the financial protection role of public facilities for all sections of the population.
3.3.5. Ensure improved access and affordability of secondary and tertiary care services through
a combination of public hospitals and strategic purchasing of services from the private health
sector.
3.3.6. Influence the growth of the private health care industry and medical technologies to
ensure alignment with public health goals, and enable contribution to making health care
systems more effective, efficient, rational, safe, affordable and ethical. .
EXPENDITURE
The National Health Policy accepts and endorses the understanding that a full achievement of
the goals and principles as defined would require an increased public health expenditure to 4 to
5% of the GDP. However, given that the NHP, 2002 target of 2% was not met, and taking
into account the financial capacity of the country to provide this amount and the institutional
capacity to utilize the increased funding in an effective manner, this policy proposes a
potentially achievable target of raising public health expenditure to 2.5 % of the GDP. It also
notes that 40% of this would need to come from Central expenditures. At current prices, a
target of 2.5% of GDP translates to Rs. 3800 per capita, representing an almost four fold
increase in five years. Thus a longer time frame may be appropriate to even reach this modest
target.
4.1.2. The major source of financing would remain general taxation. With the projection of a
promising economic growth, the fiscal capacity to provide this level of financing should
become available. The Government would explore the creation of a health cess on the lines of
the education cess for raising the necessary resources. Other than general taxation, this cess
could mobilise contributions from specific commodity taxes- such as the taxes on tobacco, and
alcohol, from specific industries and innovative forms of resource mobilization. Extractive
industries and development projects that result in displacement, or those that have negative
impacts on natural habitats or the resource base can be considered for special taxation thereby
allowing investment and job opportunities in education and health for affected communities.
4.1.3. Since about 50% of health expenditure goes into human resources for health, an equitous
growth of health and education sectors would also lead to increased employment in many areas
and communities, which do not otherwise benefit from the economic growth rate, particularly
where jobless growth is a phenomenon. High public investment in health care is one of the
most efficient ways of ameliorating inequities, and for this reason, this commitment to higher
public expenditures is essential.
The attainment of the highest possible level of good health and well-being, through a
preventive and promotive health care orientation in all developmental policies, and universal
access to good quality health care services without anyone having to face financial hardship as a
consequence.
3.2.Key Policy Principles:
Equity: Public expenditure in health care, prioritizing the needs of the most vulnerable, who
suffer the largest burden of disease, would imply greater investment in access and financial
protection measures for the poor. Reducing inequity would also mean affirmative action to
reach the poorest and minimizing disparity on account of gender, poverty, caste, disability,
other forms of social exclusion and geographical barriers.
Universality: Systems and services are designed to cater to the entire population- not only a
targeted sub-group. Care to be taken to prevent exclusions on social or economic grounds.
Patient Centered & Quality of Care: Health Care services would be effective, safe, and
convenient, provided with dignity and confidentiality with all facilities across all sectors being
assessed, certified and incentivized to maintain quality of care.
Inclusive Partnerships: The task of providing health care for all cannot be undertaken by
Government, acting alone. It would also require the participation of communities – who view
this participation as a means and a goal, as a right and as a duty. It would also require the
widest level of partnerships with academic institutions, not for profit agencies and with the
commercial private sector and health care industry to achieve these goals.
Pluralism: Patients who so choose and when appropriate, would have access to AYUSH care
providers based on validated local health traditions. These systems would also have Government support and supervision to develop and enrich their contribution to meeting the
national health goals and objectives. Research, development of models of integrative practice,
efforts at documentation, validation of traditional practices and engagement with such
practitioners would form important elements of enabling medical pluralism.
Subsidiarity: For ensuring responsiveness and greater participation, increasing transfer of
decision making to as decentralized a level as is consistent with practical considerations and
institutional capacity would be promoted. (Nothing should be done by a larger and more
complex organization which can be done as well by a smaller and simpler organization.)
Accountability: Financial and performance accountability, transparency in decision making,
and elimination of corruption in health care systems, both in the public systems and in the
private health care industry, would be essential.
Professionalism, Integrity and Ethics: Health workers and managers shall perform their
work with the highest level of professionalism, integrity and trust and be supported by a
systems and regulatory environment that enables this.
Learning and Adaptive System: constantly improving dynamic organization of health care
which is knowledge and evidence based, reflective and learning from the communities they
serve, the experience of implementation itself, and from national and international knowledge
partners.
Affordability: As costs of care rise, affordability, as distinct from equity, requires emphasis.
Health care costs of a household exceeding 10% of its total monthly consumption expenditures
or 40% of its non-food consumption expenditure- is designated catastrophic health
expenditures- and is declared as an unacceptable level of health care costs. Impoverishment
due to health care costs is of course, even more unacceptable.
3.3.Objectives:3.3.1. Improve population health status through concerted policy action in all sectors and
expand preventive, promotive, curative, palliative and rehabilitative services provided by the
public health sector.
3.3.2. Achieve a significant reduction in out of pocket expenditure due to health care costs and
reduction in proportion of households experiencing catastrophic health expenditures and
consequent impoverishment.
3.3.3. Assure universal availability of free, comprehensive primary health care services, as an
entitlement, for all aspects of reproductive, maternal, child and adolescent health and for the
most prevalent communicable and non-communicable diseases in the populationEnable universal access to free essential drugs, diagnostics, emergency ambulance
services, and emergency medical and surgical care services in public health facilities, so as to
enhance the financial protection role of public facilities for all sections of the population.
3.3.5. Ensure improved access and affordability of secondary and tertiary care services through
a combination of public hospitals and strategic purchasing of services from the private health
sector.
3.3.6. Influence the growth of the private health care industry and medical technologies to
ensure alignment with public health goals, and enable contribution to making health care
systems more effective, efficient, rational, safe, affordable and ethical. .
EXPENDITURE
The National Health Policy accepts and endorses the understanding that a full achievement of
the goals and principles as defined would require an increased public health expenditure to 4 to
5% of the GDP. However, given that the NHP, 2002 target of 2% was not met, and taking
into account the financial capacity of the country to provide this amount and the institutional
capacity to utilize the increased funding in an effective manner, this policy proposes a
potentially achievable target of raising public health expenditure to 2.5 % of the GDP. It also
notes that 40% of this would need to come from Central expenditures. At current prices, a
target of 2.5% of GDP translates to Rs. 3800 per capita, representing an almost four fold
increase in five years. Thus a longer time frame may be appropriate to even reach this modest
target.
4.1.2. The major source of financing would remain general taxation. With the projection of a
promising economic growth, the fiscal capacity to provide this level of financing should
become available. The Government would explore the creation of a health cess on the lines of
the education cess for raising the necessary resources. Other than general taxation, this cess
could mobilise contributions from specific commodity taxes- such as the taxes on tobacco, and
alcohol, from specific industries and innovative forms of resource mobilization. Extractive
industries and development projects that result in displacement, or those that have negative
impacts on natural habitats or the resource base can be considered for special taxation thereby
allowing investment and job opportunities in education and health for affected communities.
4.1.3. Since about 50% of health expenditure goes into human resources for health, an equitous
growth of health and education sectors would also lead to increased employment in many areas
and communities, which do not otherwise benefit from the economic growth rate, particularly
where jobless growth is a phenomenon. High public investment in health care is one of the
most efficient ways of ameliorating inequities, and for this reason, this commitment to higher
public expenditures is essential.
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