Thursday, March 28, 2024

News Destination For The Global Indian Community

News Destination For The Global Indian Community

LEGAL
LifeMag
Govt should have timed CAA better

Govt should have timed CAA better

The pre-Budget period is critical for formulating the new economic path. CAA protests could derail the dialogue apart from lowering demand

The nationwide conflict over the Citizenship Amendment Act (CAA) could not have come at a worse time as economic activities are at a minimal; industrial production is at its lowest; consumption is hit; purchasing power is ebbing and the prices of commodities are skyrocketing. Food inflation jumped to a 71-month high in November, adding to the people’s woes. Now these countrywide protests and violence against the Citizenship Amendment Act (CAA), leading to disruptions in traffic, transportation, internet and telecom services, are resulting in more losses and delays in production, which are not easy to assess. However, industry leaders maintain a studied silence over such issues lest they be tagged as political activists. But the fact remains that the Delhi-National Capital Region (NCR) has come to a standstill at a time when the floundering industry is demanding succour from the budgetary process.

The Government should have launched a move to educate people on the CAA through public discussion, debate and attempt a national consensus. It also might have chosen a better time to bring the CAA so that the last fiscal quarter did not become victim of the public outcry that it should have anticipated in the first place. Now the fiscal health of the country has become a victim of the violence that has gripped the nation for days together. Public properties have been damaged right from Delhi to Uttar Pradesh (UP), Bengaluru, Ahmedabad and Assam. The country’s largest mass transporter, Indian Railways, says it has lost Rs 100 crore in West Bengal alone as its properties were damaged, just the way it lost around Rs 73 crore in Haryana during the Jat agitation. Now the Railways is thinking of claiming damages from the West Bengal Government and its standing counsel in Kolkata has made it clear that a civil suit against the State Government is under active consideration. This announcement has sparked off yet another political battle between the Centre and the State, worsening the already tenuous relationship between the two. Though West Bengal Chief Minister Mamata Banerjee says that she would defy the CAA and never allow implementation of the National Register of Citizen (NRC) in her State, the citizens are rushing to Aadhaar Seva Kendras to get their cards made in apprehension of facing the same disruption that unsettled Assam. Many States and even a half-ally of the BJP, the BJD supremo and Odisha Chief Minister Naveen Patnaik, who supported the CAA earlier, is opposing the NRC now.

The CAA agitation has added to the woes of the Government also as it has come at a time when preparations for Budget presentation have begun and States are demanding their piece of the Goods and Services Tax (GST) pie. The States in their interactions with Finance Minister Nirmala Sitharaman are complaining that delay in release of their share of the GST is causing immense problems for them and affecting their financial and economic activities. For a better future they are also seeking an increase in their fiscal deficit limits. However, the Centre is not in a happy state either as revenue collection is at its lowest. Both GST and direct tax collections have been contracting for the last few months. Now, in a bid to ramp up collections in the last four months of 2019-20, the Centre has revised GST and direct tax targets. It also wants to book tax-evaders and ask many of them to file revised tax returns.The RBI still does not see the slowdown stemming. Its Governor Shaktikanta Das says that capital expenditure of States has remained stagnant around 2.6-2.7 per cent of their Gross State Domestic Product (GSDP) over the last few years. Das says that there is need to focus more on manufacturing and the growth could be pushed by increased investments by both the Centre and States.

Moody’s Investor Services on December 16 expressed concern over the country’s weak household consumption. It says this will affect growth of the economy and weigh on credit quality in a number of sectors. Moody’s lowered growth from 5.8 per cent to 4.9 per cent in 2019-20 because of rural financial stress, low job creations and liquidity constraints. But would the recent nationwide stirs hit the economy? It is not easy to say. Post-Parliament session troubles may do so. It can be linked to the performance of microfinance institutions in the wake of the NRC and CAA troubles in Assam. Chairperson of Microfinance Institutions Network (MFIN), Manoj Nambiar says that Assam disturbances have hit many microfinance companies. Their disbursements and collections have been affected as normal operations could not be carried out because of the deteriorating law and order situation. The International Monetary Fund (IMF) chief economist Gita Gopinath calls for boosting productivity and supporting employment creation in India. The pre-Budget period is critical for formulating the new economic and financial path. Disturbances could derail the dialogue apart from lowering demand. The Centre needs to call all stakeholders to the negotiating table to help boost the economy.

(Writer: Shivaji Sarkar; Courtesy: The Pioneer)

Govt should have timed CAA better

Govt should have timed CAA better

The pre-Budget period is critical for formulating the new economic path. CAA protests could derail the dialogue apart from lowering demand

The nationwide conflict over the Citizenship Amendment Act (CAA) could not have come at a worse time as economic activities are at a minimal; industrial production is at its lowest; consumption is hit; purchasing power is ebbing and the prices of commodities are skyrocketing. Food inflation jumped to a 71-month high in November, adding to the people’s woes. Now these countrywide protests and violence against the Citizenship Amendment Act (CAA), leading to disruptions in traffic, transportation, internet and telecom services, are resulting in more losses and delays in production, which are not easy to assess. However, industry leaders maintain a studied silence over such issues lest they be tagged as political activists. But the fact remains that the Delhi-National Capital Region (NCR) has come to a standstill at a time when the floundering industry is demanding succour from the budgetary process.

The Government should have launched a move to educate people on the CAA through public discussion, debate and attempt a national consensus. It also might have chosen a better time to bring the CAA so that the last fiscal quarter did not become victim of the public outcry that it should have anticipated in the first place. Now the fiscal health of the country has become a victim of the violence that has gripped the nation for days together. Public properties have been damaged right from Delhi to Uttar Pradesh (UP), Bengaluru, Ahmedabad and Assam. The country’s largest mass transporter, Indian Railways, says it has lost Rs 100 crore in West Bengal alone as its properties were damaged, just the way it lost around Rs 73 crore in Haryana during the Jat agitation. Now the Railways is thinking of claiming damages from the West Bengal Government and its standing counsel in Kolkata has made it clear that a civil suit against the State Government is under active consideration. This announcement has sparked off yet another political battle between the Centre and the State, worsening the already tenuous relationship between the two. Though West Bengal Chief Minister Mamata Banerjee says that she would defy the CAA and never allow implementation of the National Register of Citizen (NRC) in her State, the citizens are rushing to Aadhaar Seva Kendras to get their cards made in apprehension of facing the same disruption that unsettled Assam. Many States and even a half-ally of the BJP, the BJD supremo and Odisha Chief Minister Naveen Patnaik, who supported the CAA earlier, is opposing the NRC now.

The CAA agitation has added to the woes of the Government also as it has come at a time when preparations for Budget presentation have begun and States are demanding their piece of the Goods and Services Tax (GST) pie. The States in their interactions with Finance Minister Nirmala Sitharaman are complaining that delay in release of their share of the GST is causing immense problems for them and affecting their financial and economic activities. For a better future they are also seeking an increase in their fiscal deficit limits. However, the Centre is not in a happy state either as revenue collection is at its lowest. Both GST and direct tax collections have been contracting for the last few months. Now, in a bid to ramp up collections in the last four months of 2019-20, the Centre has revised GST and direct tax targets. It also wants to book tax-evaders and ask many of them to file revised tax returns.The RBI still does not see the slowdown stemming. Its Governor Shaktikanta Das says that capital expenditure of States has remained stagnant around 2.6-2.7 per cent of their Gross State Domestic Product (GSDP) over the last few years. Das says that there is need to focus more on manufacturing and the growth could be pushed by increased investments by both the Centre and States.

Moody’s Investor Services on December 16 expressed concern over the country’s weak household consumption. It says this will affect growth of the economy and weigh on credit quality in a number of sectors. Moody’s lowered growth from 5.8 per cent to 4.9 per cent in 2019-20 because of rural financial stress, low job creations and liquidity constraints. But would the recent nationwide stirs hit the economy? It is not easy to say. Post-Parliament session troubles may do so. It can be linked to the performance of microfinance institutions in the wake of the NRC and CAA troubles in Assam. Chairperson of Microfinance Institutions Network (MFIN), Manoj Nambiar says that Assam disturbances have hit many microfinance companies. Their disbursements and collections have been affected as normal operations could not be carried out because of the deteriorating law and order situation. The International Monetary Fund (IMF) chief economist Gita Gopinath calls for boosting productivity and supporting employment creation in India. The pre-Budget period is critical for formulating the new economic and financial path. Disturbances could derail the dialogue apart from lowering demand. The Centre needs to call all stakeholders to the negotiating table to help boost the economy.

(Writer: Shivaji Sarkar; Courtesy: The Pioneer)

Leave a comment

Comments (0)

Opinion Express TV

Shapoorji Pallonji

SUNGROW

GOVNEXT INDIA FOUNDATION

CAMBIUM NETWORKS TECHNOLOGY

Opinion Express Magazine