13 December 2015

Consumer Price Index and Whole Sale Price Index

Consumer Price Index and Whole Sale Price Index
In an emerging and developing economy moderate inflation is desirable to spur growth impulses and sustained deflation is a challenge as it generally lowers aggregate demand and economic activity.

In the Indian economy inflation as per the Consumer Price Index-New Series (CPI) and other inflation indices has been in low positive territory while Wholesale Price Index (WPI) is in the negative zone, since November 2014. Under the Monetary Policy Framework Agreement signed between the Government and the Reserve Bank of India, year on year change in CPI has been accepted as the anchor for inflation in the Indian economy.

The behavior of WPI is influenced by the prices of international commodities including crude oil, which have been declining in the recent past while CPI inflation affects the ultimate consumers and includes consumer goods and services.

In view of movement in CPI inflation and growth in GDP, the Indian economy cannot be characterized as the one undergoing a deflationary situation.

To address the challenges posed to the Indian economy, the Government has undertaken a series of sectoral and macroeconomic reforms and is boosting aggregate demand through public investment in roads, railways and irrigation; liberalizing FDI flows; unblocking large number of stalled projects etc. Further, RBI has reduced the repo rates by 125 basis points since January 2015 which have impacted a reduction in interest rates and would spur investment and growth in the economy.

Financial Impact on Employees Under National Pension Scheme (NPS)

Financial Impact on Employees Under National Pension Scheme (NPS)
The National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers under NPS. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

• NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz, pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interests of subscribers of NPS.

• Dual benefit of low cost and power of compounding – The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.

• Tax Benefits – The tax benefits are available to the NPS subscribers under the provisions of the Income-tax Act, 1961. These were further increased in the Finance Bill, 2015.

• Transparency and Portability is ensured through online access on the pension account by the NPS subscribers, across all geographical locations and portability of employments.

• Partial withdrawal – subscribers can withdraw upto 25% of their own contributions before attaining superannuation age, subject to certain conditions.

Some representations have been received from certain quarters against the implementation of the NPS. The main demand in these representations is that NPS may be scrapped and the Government may revert to old defined benefit system. But the Government does not propose to reimplement the old pension scheme by doing away with NPS.

Social Security Scheme for Farmers

Social Security Scheme for Farmers
The Government is implementing a number of schemes to help the farmers in increasing their productivity by reducing cost of cultivation, achieving higher yield per unit and by realizing remunerative prices. Some of the important new initiatives in this context are:

(i) Soil Health Card (SHC) scheme by which the farmers can know the major and minor nutrients available in their soils which will ensure judicious use of fertiliser application and thus save money of farmers. The balanced use of fertiliser will also enhance productivity and ensure higher returns to the farmers.

(ii) Neem Coated Urea is being promoted to regulate urea use, enhance its availability to the crop and reduce cost of fertilizers application. The entire quantity of domestically manufactured urea is now neem coated.

(iii) Parampragat Krishi Vikas Yojana (PKVY) is being implemented with a view to promoting organic farming in the country. This will improve soil health and organic matter content and increase net income of the farmer so as to realise premium prices.

(iv) The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) is being implemented to expand cultivated area with assured irrigation, reduce wastage of water and improve water use efficiency.

(v) In addition, the Government is also implementing several Centrally Sponsored Schemes - National Food Security Mission (NFSM); Mission for Integrated Development of Horticulture (MIDH); National Mission on Oilseeds & Oilpalm (NMOOP); National Mission for Sustainable Agriculture (NMSA); National Mission on Agricultural Extension & Technology (NMAET); National Crop Insurance Programme (NCIP); Unified National Agriculture Markets; and Rashtriya Krishi Vikas Yojana (RKVY).

(vi) The Government undertakes procurement of wheat and paddy under its ‘MSP operations’. In addition, Government implements Market Intervention Scheme

(MIS) for procurement of agricultural and horticultural commodities not covered under the Minimum Price Support Scheme on the request of State/UT Government. The MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when the prices tend to fall below the economic level/cost of production. Losses, if any, incurred by the procuring agencies are shared by the Central Government and the concerned State Government on 50:50 basis (75:25 in case of North-Eastern States). Profit, if any, earned by the procuring agencies is retained by them.

It is a priority of the Government to work towards enabling social security protection for citizens, especially from the economically weaker and vulnerable sections. In accordance with this priority, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Atal Pension Yojana (APY) were recently launched to address the areas of life and accident risk, and old age income security. The Rashtriya Swastha Bima Yojana (RSBY) is also operational to provide health insurance cover to persons living below the poverty line etc. The Central Government has also initiated creation of a Senior Citizen Welfare Fund through the use of certain unclaimed amounts under various specified schemes. This fund will be used to subsidize the premiums of vulnerable groups such as old age pensioners, BPL card-holders, small and marginal farmers and others.

The proposed new National Crop Insurance Scheme will protect the interest of farmers with a broader coverage towards crop losses and other such natural calamities. This is an intervention to cover the risks involved in farming.

Ministry of Food Processing Industries (MOFPI), through its various schemes, has been providing assistance to various agriculture related industries.

12 December 2015

8 States Heed PM's Call on Competitive Federalism

8 States Heed PM's Call on Competitive Federalism


Four states want to replicate Karnataka's Vehicles Database Management System, while three others want Gujarat's `Suraksha Setu Project' aimed at crime prevention
Eight states have heeded Prime Minister Narendra Modi's call for “cooperative and competitive federalism“ and expressed willingness to replicate some of the award-winning egovernance initiatives implemented in other parts of the country.Prime Minister's home state Gujarat and Congress-ruled Karnataka head the list of states whose projects are most popular, details accessed by ET show.While four states want to replicate Karnataka's `Effective Vehicles Database Management System', three states want to copy Gujarat's `Suraksha Setu Project' aimed at crime prevention.Gujarat, which has won two dozen national e-governance awards since 2008, has found takers for its other projects too.
The PM had given the call in February and on the Civil Services Day in April further exhorted state governments to send their teams to study the award-winning initiatives of other states and identify which they would like to replicate.
Officials said the Prime Minister's Office is keeping an eye on the exercise. “At the next Civil Services Day, the PM could be briefed on the award-winning e-governance initiatives as well as those awarded for excellence in public administration that have been picked for replication by other states,“ a senior government official said.
Assam, Madhya Pradesh, Goa and Nagaland want to replicate the project implemented by Kar nataka in Mandya to trace the owners of unclaimed vehicles lying in police stations. Madhya Pradesh, Goa and Assam also want to replicate Suraksha Setu project, under which 604 CCTV cameras, connected to a control room through a 200-km long underground optical fibre network, have been installed at 113 strategic locations, leading to a reduction in crime rate by a third.
Besides, Maharashtra and Jharkhand want to replicate Gujarat's `Barcoded Ration Card' project and `Biometric Food Coupon' project, which won a national award last year for ensuring there is no leakage in public distribution system. Chhattisgarh, on the oth er hand, is replicating `Gujarat's Mineral Administration and Governance through ICT (MAGIC)' project.
Modi, while addressing civil servants in April, had suggested that teams of officers from each state visit the districts in states which had won awards for their initiatives. “See how the project was conceptualised, what were the resources, how the infrastructure was created, what difficulties were faced...you can come back to your state and see if it can be replicated or suitably modified to be implemented in your district.This process should be institutionalised. Let's begin it...it's not enough to just print a booklet on the award-winning initiatives,“ he had said.
Earlier, in February, while addressing chief ministers at the first governing council meeting of NITI Aayog, the PM had said that he saw great scope for states to share their best practices and create a portal for state functionaries to share their experiences.
ET VIEW
First, Make More Spectrum Available
Competition among states to serve people better using technology is healthy. Hopefully, the Centre's Digital India initiative will also help prevent corruption in government services by making most things available online.For e-governance projects to be successful, and citizens to transact online, the ability of the telecom infrastructure to carry data needs to grow manifold. That, in turn, depends on the availability of spectrum. The Centre must have policies to ensure that more spectrum is made available cheap. Only then can states replicate e-governance initiatives.

11 December 2015

India’s Intended Nationally Determined Contribution

India’s Intended Nationally Determined Contribution

1. Sustainable Lifestyle

To put forward and further propagate a healthy and sustainable way of living based on traditions and values of conservation and moderation.

2. Cleaner Economic Development

To adopt a climate friendly and a cleaner path than the one followed hitherto by others at corresponding level of economic development.

3. Reduce Emission Intensity of GDP

To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level.

4. Increase the Share of Non Fossil Fuel Based Electricity

To achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost international finance including from Green Climate Fund (GCF).

5. Enhancing Forests Carbon Sink

To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.

6. Adaptation Component

To better adapt to climate change by enhancing investments in development programmes in sectors vulnerable to climate change, particularly agriculture, water resources, Himalayan region, coastal regions, health and disaster management.


7. Mobilizing Finance

To mobilize domestic and new & additional funds from developed countries to implement the above mitigation and adaptation actions in view of the resource required and the resource gap.


8. Technology Development &Transfer

To build capacities, create domestic framework and international architecture for quick diffusion of cutting edge climate technology in India and for joint collaborative R&D for such future technologies.

Rashtriya Swasthya Bima Yojana

Rashtriya Swasthya Bima Yojana

The Rashtriya Swasthya Bima Yojana (RSBY) a centrally sponsored health insurance scheme was launched in 2007 and operationalized in April, 2008. This scheme has been transferred from Ministry of Labour and Employment to Ministry of Health and Family Welfare on “as is where is” basis with the effect from 01.04.2015.  At present the Rashtriya Swasthya Bima Yojana (RSBY) is being implemented in 19 States/UTs through insurance mode. The scheme is being funded, both by Centre as well as by the implementing State, on the approved premium. Funds allocation during the last three years and current year i.e. 2012-13 to 2015-16 for release of central share on premium under RSBY is as given below:-
Sl. No.
Year
Budget Estimate (In crore)


1
2012-13
1568.56

2
2013-14
1265.00

3
2014-15
1319.30

4
2015-16
700.00

Total
4852.86

An evaluation study was made by GIZ when RSBY was being implemented by the Ministry of Labour and Employment. Key findings are given below:-
Findings of Evaluation Study by Gesellchaft Fur Internationale Zusammenarbeit (GIZ) on Implementation of RBSY
i. High levels of awareness on eligibility.  However, detailed information about the scheme was found to be lacking.
ii.                 The non-enrolees had to spend more that Rs.17, 000/ per year on an average for hospitalization while RSBY enrolled have spent very less out of pocket payment.
iii.               Access to private hospitals was noted in more than 70 percent of the respondents, both enrolees and non-enrolees.
iv.               90% of the respondents mentioned being highly satisfied with the RSBY Scheme.
Total 3, 68, 36,005 beneficiary families have been covered under RSBY Scheme against the target of 7, 30, 56,515 families in the states implementing RSBY.   Reasons for low enrolment in some States are due to implementation of the scheme by the States in phased manner. The Health Insurance Scheme for weavers by using RSBY platform is implemented only in the State of Tamil Nadu and the budget allocation for the same is made by Ministry of Textiles.
Approval for continuation of RSBY has been granted to the implementing states as required by them. Approval has also been granted to the states for floating of fresh tenders wherever required. All implementing states have been directed to take necessary action in claiming release of central share on premium so that there is no delay in release of central share. 
The Health Minister, Shri J P Nadda stated this in a written reply in the Lok Sabha here today(11-12-2015).

National Population Policy

National Population Policy

As per the latest World Population Prospects released by United Nations (revision 2015), the   estimated   population   of   India   will   be    1419   million    approximately    whereas    China’s population will be approximately 1409 million, by 2022. In spite of the perceptible decline in Total Fertility Rate (TFR) from 3.6 in 1991 to 2.3 in 2013, India is yet to achieve replacement level of 2.1. Twenty four states/UTs have already achieved replacement level of TFR by 2013, while states like UP and Bihar with large population base still have TFR of 3.1 and 3.4 respectively. The other states like Jharkhand (TFR 2.7), Rajasthan (TFR 2.8), Madhya Pradesh (TFR 2.9), and Chhattisgarh (TFR 2.6) continue to have higher levels of fertility and contribute to the growth of population.
The National Population Policy 2000, is uniformly applicable to the whole country. In pursuance of this policy, Government has taken a number of measures under Family Planning Programme and as a result, Population Growth Rate in India has reduced substantially which is evident from the following:-        
i.         The percentage decadal growth rate of the country has declined significantly from 21.5% for the period 1991-2001 to 17.7% during 2001-2011.
ii.     Total Fertility Rate (TFR) was 3.2 at the time when National Population Policy, 2000 was adopted and the same has declined to 2.3 as per Sample registration Survey (SRS) 2013 conducted by the Registrar General of India.
As the existing NPP-2000 is uniformly applicable to all irrespective of religions and communities etc., therefore no proposal is under consideration of the Government to formulate new uniform population policy. The steps taken by the Government under various measures/programme are given below:-
Steps/Measures to Control the Population Growth of India by
the Government of India
 On-going interventions:
·        More emphasis on Spacing methods like IUCD.
·        Availability of Fixed Day Static Services at all facilities.
·        A rational human resource development plan is in place for provision of IUCD, minilap and NSV to empower the facilities (DH, CHC, PHC, SHC) with at least one provider each for each of the services and Sub Centres with ANMs trained in IUD insertion.
·        Quality care in Family Planning services by establishing Quality Assurance Committees at state and   district levels.
·        Improving contraceptives supply management up to peripheral facilities.
·        Demand generation activities in the form of display of posters, billboards and other audio and video materials in the various facilities.
·        National Family Planning Indemnity Scheme’ (NFPIS) under which clients are insured in the eventualities of deaths, complications and failures following sterilization and the providers/ accredited institutions are indemnified against litigations in those eventualities.
·        Compensation scheme for sterilization acceptors - under the scheme MoHFW provides compensation for loss of wages to the beneficiary and also to the service provider (& team) for conducting sterilisations. 
·        Increasing male participation and promotion of Non Scalpel Vasectomy.
·        Emphasis on Miniap Tubectomy services because of its logistical simplicity and requirement of only MBBS doctors and not post graduate gynecologists/surgeons.
·        Accreditation of more private/NGO facilities to increase the provider base for family planning services under PPP.
·        Strong political will and advocacy at the highest level, especially, in States with high fertility rates.
New Interventions under Family Planning Programme
1.                  Scheme for Home delivery of contraceptives by ASHAs at doorstep of beneficiaries: The govt. has launched a scheme to utilize the services of ASHA to deliver contraceptives at the doorstep of beneficiaries. 
2.                  Scheme for ASHAs to ensure spacing in births: The scheme is operational from 16th May, 2012, under this scheme, services of ASHAs to be utilised for counselling newly married couples to ensure delay of 2 years in birth after marriage and couples with 1 child to have spacing of 3 years after the birth of 1st child.  ASHAs are to be paid the following incentives under the scheme:-
a.      Rs. 500/- to ASHA for ensuring spacing of 2 years after marriage.
b.      Rs. 500/- to ASHA for ensuring spacing of 3 years after the birth of 1st child.
c.      Rs. 1000/- in case the couple opts for a permanent limiting method up to 2 children only.The scheme is being implemented in 18 States of the country (8 EAG, 8 NE Gujarat and Haryana).
3.                  Boost to spacing methods by introduction of new method PPIUCD (Post-Partum Intra Uterine Contraceptives Device.
4.                  Introduction of the new device   Cu IUCD 375, which is effective for 5 years. 
5.                  Emphasis on Postpartum Family Planning (PPFP) services with introduction of PPIUCD and promotion of minilap as the main mode of providing sterilisation in the form of post-partum sterilisation to capitalise on the huge cases coming in for institutional delivery under JSY.
Assured delivery of family planning services for both IUCD and sterilisation.
6.                  Compensation for sterilisation acceptors has been enhanced for 11 High Focus States with high TFR.
7.                  Compensation scheme for PPIUCD under which the service provider as well as the ASHAs who escorts the clients to the health facility for facilitating the IUCD insertion are compensated.
8.                  Scheme for provision of pregnancy testing kits at the sub-centres as well as in the drug kit of the ASHAs for use in the communities to facilitate the early detection and decision making for the outcome of pregnancy.
9.                  RMNCH Counselors (Reproductive Maternal New Born and Child Health) availability at the high case facilities to ensure counseling of the clients visiting the facilities.
10.             Celebration of World Population Day 11th July & Fortnight: The event is observed over a month long period, split into fortnight of mobilization/sensitization followed by a fortnight of assured family planning service delivery and has been made a mandatory activity from 2012-13 and starts from 27th June each year.
11.             FP 2020- Family Planning Division is working on the national and state wise action plans so as to achieve FP 2020 goals. The key commitments of FP 2020 are as under :
·        Increasing financial commitment on Family Planning whereby India commits an allocation of 2 billion USD from 2012 to 2020.
·        Ensuring access to family planning services to 48 million (4.8 crore) additional women by 2020 (40% of the total FP 2020 goal).
·        Sustaining the coverage of 100 million (10 crore) women currently using contraceptives.
Reducing the unmet need by an improved access to voluntary family planning services, supplies and information. In addition to above, Jansankhya Sthirata Kosh/National Population Stabilization Fund has adopted the following strategies as a population control measure:-
Prerna Strategy:- JSK has launched this strategy for helping to push up the age of marriage of girls and delay in first child and spacing in second child the birth of children in the interest of health of young mothers and infants. The couple who adopt this strategy awarded suitably. This helps to change the mindsets of the community.
Santushti Strategy:- Under this strategy, Jansankhya Sthirata Kosh, invites private sector gynaecologists and vasectomy surgeons to conduct sterilization operations in Public Private Partnership mode. The private hospitals/nursing home who achieved target to 10 or more are suitably awarded as per strategy.
National Helpline: - JSK also running a call centers for providing free advice on reproductive health, family planning, maternal health and child health etc. Toll free no. is 1800116555.
Advocacy & IEC activities:- JSK as a part of its awareness and advocacy efforts on population stabilization, has established networks and partnerships with other ministries, development partners, private sectors, corporate and professional bodies for  spreading its activities through electronic media, print media, workshop, walkathon, and other multi-level activities etc. at the national, state, district and block level.

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