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Wrong to compare household, government budgets: Niti Aayog
New Delhi, April 8 (IANS) Decrying the economic orthodoxy in India handed down from Europe of cutting fiscal deficits to balance budgets, Niti Aayog Vice Chairman Rajiv Kumar on Sunday called for new definitions to be adopted for government expenditure and described as fallacious the comparisions made between household and national budgets.
Speaking at industry chamber CII’s Annual Session 2018 here, Kumar also said the Niti Aayog, which has replaced the erstwhile Planning Commission, is currently working to design performance and outcome-based parameters for all budget items in order to improve the efficiency of public expenditure.
“I strongly believe that macro policy has to be counter-cyclical. When private investment is weak and jobs are needed, then the government has to step in (with investment),” said Kumar at a session titled “The Fiscal Conundrum”.
“It is sheer nonsense to compare household with government budgets, a trend that was started with (former British Prime Minister) Margaret Thatcher,” he said, explaining that the whole is always much more than the mere sum of individual parts.
“We need to think of the fiscal situation of the country as a whole and for all the levels of government including the local,” he said, adding, however, that it was important to maintain a “delicate fiscal balance” and governments should not engage in populist measures.
“There is no reason for fiscal populism. It is to rein in politicians and governments taking populist measures that the FRBM (Fiscal Responsibility and Budget Management) Act, 2003, came along,” Kumar said.
Presenting his last full budget in February before the general elections early in 2019, Finance Minister Arun Jaitley made a significant announcement of fiscal slippage with implications for pushing inflation, revising upwards the government’s fiscal deficit target for 2017-18 to 3.5 per cent of the GDP, or the equivalent of Rs 5.95 lakh crore.
The higher target came in place of the 3.2 per cent — or Rs 5.46 lakh crore — for the current fiscal announced earlier.
In the budget, Jaitley also announced that the minimum support price (MSP) for notified kharif crops will be 1.5 times the input cost, and also stepped up total budgetary allocation for the sector for next fiscal by about 5 per cent.
Criticising the “fetish” of fiscal deficit, the Niti Aayog Vice Chairman said he preferred, instead, to use the measure of revenue deficit and that government borrowing for investment whose returns would be higher than the interest paid is a good thing.
“Let us come up with new definitions, rather than ideology and stick with rules and regulations that are outdated,” he said.
“Education and health are now defined as revenue expenditure, as also on R&D. Let us put all these under capital expenditure… all these are productivity enhancing, with education one is creating human capital.
“With a view to improve efficiency of public expenditure and public sector performance, the Niti Aayog is working to create performance and outcome-based measures for all budget line items,” he added.
Emeritus Professor of Economics at the Jawaharlal Nehru University Deepak Nayyar pointed out that currently investment in India as a proportion to GDP was 6 per cent lower at a time of sluggish private investment than some years back and that the “fiscal space” of the states was limited by the fact that they need RBI permission to borrow.
Kumar urged industry to be proactive against the “fetish of fiscal deficit”. “I don’t see industry’s voice coming out against fiscal fetishism,” he said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
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