Gone are the days of Babu N BIBI Culture!Babus' pay may be linked to performance finally!The Economy is now the name of Inclusive Wealth and Exclusive Growth. Redefinition and Statistical gimmicks would not set aright the upset Apple Cart!

Gone are the days of Babu N BIBI Culture!Babus' pay may be linked to performance finally!The Economy is now the name of Inclusive Wealth and Exclusive Growth. Redefinition and Statistical gimmicks would not set aright the upset Apple Cart!

Indian Holocaust My Father`s Life and Time - Eight HUNDRED FORTY SEVEN

Palash Biswas

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Gone are the days of Babu N BIBI Culture!Babus' pay may be linked to performance finally!RBI is all set to introduce Plastic Currency. Skipping Economic reforms as demanded by the Corporate India, MNCs, Corporate Imperialism and the Ruling Hegemony representing hardly One Percent of the Population, the UNDER ACHIEVER prime Minister of India may not save the skin  of UPA Government!Pranab Mukherjee failed as fanance Minister with Poor Economic skill and richer political Compusion, but better Economics of Dr Manmohan singh may not wipe out the Federal deficiencies as the Centre has lost control over most of the states ruled by regional Chieftains. Ms Mamata Banerjee holding back the UPA Government for legislation meant for Reforms portray the miserable status of the Polity while the leading partner has no space to set its toe on the major states like UP and Bihar. However, the Government inflicted with sets of scams and scandals may enhance the recycling mchinery of Black Money just killing GAAR and the foreign investors may be attarcted a bit more. But it would not boost Growth in industrial Production nor it may boost Agrarian health. It may not solve the problem of Fiscal deficit and Balance of Payment. The Economy is now the name of Inclusive Wealth and Exclusive Growth. Redefinition and Statistical gimmicks would not set aright the upset Apple Cart!

The Indian economy is facing slowdown. The economic growth hit a nine-year low of 6.5 per cent in 2011-12. Fiscal deficit is seen rising to Rs 5.13 lakh crore or 5.1 per cent of the GDP in the current financial year.Also, current account deficit (CAD) widened to the highest ever level to 4.5 per cent of GDP at $21.7 billion in January-March period of 2011-12.

Meanwhile,Sharpening his attack on UPA rival Pranab Mukherjee, opposition-backed Presidential nominee P A Sangma on Tuesday said Rashtrapati Bhavan was being used as a "dumping ground" for the "failed" former finance minister.On the other hand, India Inc has asked the government for measures to revive the economy, suggesting dual pricing of diesel, FDI in multi-brand retail and civil aviation, further reduction in repo rate by 100 basis points and cash reserve ratio.Bankers agreed that inflationary conditions offered little room for lowering interest rates, but stuck to their demand for a rate cut, saying it was the only tool available to revive the "animal spirits" in the economy in the absence of policy action.In their customary pre-monetary policy meeting with Reserve Bank of India (RBI) Deputy Governor Subir Gokarn, bank chiefs also acknowledged that rate cut was not a panacea for the nation's economic ills.Lenders demanded that RBI cut repo rate - the rate at which it lends to banks - by 25 bps to 7.75% and reduce cash reserve ratio - the proportion of deposits to be kept with RBI. These can be 'symbolic' gestures to industry and investors, bankers told Gokarn, according to bank officials present at the meeting.The central bank will announce its quarterly monetary policy review on July 31.Prime Minister's top economic advisor C Rangarajan today gathered views from banking, mutual funds and insurance industries on ways to boost investment climate in the country.Rangarajan, Chairman of the PM Economic Advisory Council (PMEAC, had met representatives of India Inc yesterday amid rising concerns of slowdown and sluggish business activities.These meetings are taking place in the backdrop of Prime Minister Manmohan Singh seeking revival of "animal spirit" in the economy.

Exuding confidence about the growth of Indian economy, Union Home Minister and former finance minister P Chidambaram on Tuesday said that India has achieved the fastest growth after China amid global financial meltdown.How Grim is the situation. here you are!The NDA is not only stalling the economic reforms but also creating a "malicious" environment against the government, Corporate Affairs Minister Veerappa Moily said today.

What does it mean? without floor adjustment, the Government is quite unable to push for nay legislation and the Opposition stalls the Governance. But apart from Legislation and governance, policy making is being subjected to intense Corporate lobbying and inflicted with scams.On the issue of corruption, Moily said no major cases have surfaced during UPA-II regime. "Inspite of the humongous challenges to deal with civil society, the government worked with them and came out with a strong Lokpal Bill which is pending with Parliament for approval".

The ministries of finance and telecom have not been able to finalise terms of an agreement that will facilitate funding from banks for spectrum auction to be held before August 31.According to official sources, Finance Ministry has asked Telecom Ministry to assign spectrum in the name of lenders to allow them to sell the airwaves if the spectrum winner defaults on payment later.
    
"Department of Financial Services has written to Department of Telecom that it will be necessary to assign spectrum allotted to operators in favour of lenders to boost confidence among lenders, but it has not been incorporated in the proposed tripartite agreement (TPA)," the sources said.Both the ministries have jointly worked out a TPA in consultation with banks to ensure that lenders provide adequate loan to telecom operators who would win the airwaves in the proposed auction.But the Telecom Ministry has not agreed to assign spectrum in the name of lender, which may discourage banks to provide financing for spectrum, sources said.
    
"We don't have any issue with banks being given preferential right for their dues but the spectrum auction process is a complex issue and it should by DoT only. EGoM will take final call on it," a Telecom Ministry official said.

What do you expect from this government which is just focused on the Recycling of Black Money and it has never been a new Phenomenon?

"...main opposition political formation... is out to oppose all the reform initiatives and simultaneously create negative canards against the government," Moily said in a statement

Blaming the National Democratic Alliance for stalling reforms, Corporate Affairs Minister said, "DTC (Direct Tax Code) is with the Parliamentary Standing Committee headed by BJP leader Yashwant Sinha... the Goods and Services Tax Bill is also under consideration of empowered group of state finance ministers, headed by BJP Finance Minister from Bihar Sushil Modi".

Blaming Mamata! Blaming NDA! Would it boost the Economy?Mind you, this Ruling Hegemony was United Rock Solid Solidarity to pass Indo US Nuclear Agreement and no polics, No No Confidence Motion could stop the Agreement operationalised. No Politics, No ideology did register whatsoever resistance.The Politicals hegemony excluded ninety Nine percent of the population from Economy and Neo Liberal Policies coincidental with the Resurrection of hindutva and Hinu Rashtra, militarised the State which has declared war against the Aborigine Humanscape. No Power Politics may help the People of India seized within. UPA and NDA along with the Left and Ambedkaroites are united well to serve the interest of the Elite One Percent and despite Growth rate Projection and escalation of emerging Free Market the economy is reduced to the status of Inclusive Wealth and Exclusive Growth. The rrot of the Policy Paralysis phenomenon lies here, friends!

While the economy is passing through difficult times due to slow growth, increasing fiscal deficit and high inflation rate,there are "robust" indicators highlighting "very strong" fundamentals. "With sincerity and efforts of the Prime Minister, it will take no time for the economy to bounce back and resurrect itself," he said.

On the TIME magazine describing Prime Minister Manmohan Singh as an "under-achiever", Moily said the article "seems to have completely deviated from objectivity, perhaps got swayed by the malicious environment created by the main opposition party, the BJP during the recent times".

Moily said the economy grew by an average 7.7% in the last 10 years. The country's per capita net national product has nearly doubled. Besides, India's forex reserves have risen nearly six times from $54 billion to nearly $305 billion, he said.

The proposed Food Security Bill, which guarantees food to poor, will be introduced in the Parliament winter session in December, Union Minister K V Thomas saidin Kolkata today.

"We expect the standing committee to finalise suggestions for the bill and then it will be cleared by the Cabinet. We expect to place the bill in December during the winter session," the Consumer and Food minister said.

The standing committee would debate fresh suggestions received to offer 5 kg foodgrain per month covering 70 per cent of the priority sector population and keeping the existing schemes, he said on the sidelines of a seminar on food security organised by the Bureau of Indian Standards.


Prime Minister Manmohan Singh is contemplating a number of measures to contain fiscal deficit and the government will get the economy back to high growth trajectory, Home Minister P Chidambaram claimed today. UPA II faced "red lines" that are not obvious unlike UPA-I but the government learnt to adjust and get the allies on board, Chidambaram today said.

"I think the Prime Minister-cum Finance Minister is contemplating a number of measures to tighten revenue collection and to control wasteful expenditure. We have already imposed across-the-board cut on non-plan expenditure. That will help," he told reporters in BANGALORE.

"In UPA-1, I knew from the day one what the red lines were. I could not cross certain red lines. In UPA II frankly the red lines are not so obvious. Suddenly some new red line emerges that is the difference between UPA I and UPA II," he told reporters . He was apparently referring to Left parties that provided crucial outside support to UPA-I and Mamata Banerjee led TMC, which is a partner in the present regime. However, seeking to down play differences among coalition partners, he said every party had its own political agenda and try to push it through."But as we find the new red lines we learn to adjust and we persuade people to get on board," he said.

"For example in UPA-I we had the red line we could not disinvest. We managed to cross the red line once in the NTPC disinvestment but then again they drew a thicker red line and said no you can't disinvest... So we did only NTPC and we did not do anything thereafter," he said apparently referring to Left parties' strong opposition to disinvestment of public sector undertakings.

Saying that the nuclear deal was another redline faced by UPA-I, he noted that was the breaking point. "We should try to run a coalition without reaching a breaking point," he added.

For more than a year, RBI has been pleading with the government to put its house in order as record borrowings by the Centre - Rs 5.7 lakh crore this year - have been crowding out private investments. It also said subsidies, notably on diesel, are distorting the market and leading to high deficit.But there's little on the ground to show that the government will comply with these requests as political compulsions make it difficult to raise prices of diesel and cooking gas.


Amid instances of counterfeiting of notes, the Reserve Bank Monday said it is working on launching plastic currency and will soon launch a pilot project for the same.The performance-based pay package for babus in India may become a reality. If the study being prepared by IIM-Ahmedabad argues well in favour of such a policy, the Sixth Central Pay Commission may recommend target-based variable payment for government employees, sources close to the development told SundayETwhich published a detailed story.Many private sector companies in India pay a part of their employees' salaries according to individual performance and team spirit. The IIM-A, which is examining the matter now, is likely to submit its report by June, 2007.The specialised study is based on an analysis of the present performance of nine Central government ministries including defence, home, company affairs and railways, and how those departments can improve their administrative efficiency if a performance-based payment is offered. In fact, nine ministries are just the samples, and if recommendations are made in favour of performance-based payment, it will be applicable for all ministries.The management institute is also examining the criteria on which performance-based salaries can be determined for government employees. The study is also looking at how much of one's salary can be earmarked as target variable if such a system is recommended.

The Sixth Pay Commission, which may incorporate the recommendations of the IIM-A study, is scheduled to submit its report before April 5, 2008. According to initial estimates, the recommendations of the new Pay Commission may entail an extra expenditure of about Rs 25,000 crore per annum. It may have a cascading effect on state governments as state government employees will clamour for a pay rise to maintain parity.

"Counterfeiting of plastic notes is very difficult. So we are planning to launch some plastic money on a pilot basis in 4-5 centres. Like Jaipur, Shimla, Bhubaneshwar and other centres. We are working on it," RBI Deputy Governor HR Khan told reporters here.

Under the pilot project for issue of plastic currency notes, notes of Rs 10 denomination would be distributed through the central bank's five regional offices.

The proposed shift to plastic currency notes, instead of the normal paper notes, is primarily aimed at checking the counterfeiting as also high cost associated with printing of paper currency, as they need early replacement due to soiling and mutilation.

These notes would have an average life span of 5 years compared to one year for the currency notes, and also these notes are cleaner than paper notes and it would be difficult to counterfeit the currency.

Besides studying the potential cost savings through plastic notes, the pilot project will also look into the environmental impact of the proposed plastic notes.

The polymer notes were first introduced in Australia to safeguard against counterfeiting of currency. Besides Australia, other countries which have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.

Identifying savings, investment, fiscal deficit and current account deficit as four fundamental issues that need to be tackled, he said the measures being taken by the government would improve savings and investment. "We will get back to the high growth rate," Home Minister P Chidambaram  said.

On the current account deficit, he said it depends on the international commodity prices and rupee exchange rate as the country imports many commodities it needs.

"Once confidence builds, the exchange rate will stabilise. And we must produce more in the country and depend less on imports ... the current account deficit will come down over a period of time. So, if we can tackle the four issues -- savings, investments, current account deficit and fiscal deficit -- you will see we get back to the high growth path."

The government has said overseas remittances will not attract service tax, putting to rest the concerns raised in view of new service tax norms.

"The matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas," said a circular issued by the Central Board of Excise and Customs.

The clarification come in the backdrop of concerns expressed in several quarters that overseas remittances would face 12% service tax under the negative list regime applicable from July 1.

India, one of the top recipient of remittances, got $ 64 billion in 2011, according to the World Bank data.

Chief Ministers of Punjab and Kerala, which are among the states receiving the largest remittances from expatriates, had taken up the matter with Prime Minister Manmohan Singh.

Representatives of leading industry chambers CII, Assocham, South Indian Chamber of Commerce and PHDCCI on Monday met Prime Minister's key economic aide, C Rangarajan, to present their demands.

"Our economy is fast veering towards the grim situation experienced during the global economic crisis of 2008-09...The macro economic conditions are worsening at a faster pace than anticipated and we need to stem this at this stage," said Adi Godrej, President, CII, at the meeting called by the Prime Minister's Economic Advisory Council to get industry's views on economic outlook for 2012.

India's GDP growth fell to 6.5% during 2011-12 but the fourth quarter growth rate dropped to5.3%, the slowest in past nine years. Revival of the economy and the industrial sector would hinge on putting in place a coordinated fiscal, monetary and administrative response that would ease the supply constraints and revive investment demand in the economy, industry leaders said.

Industry's wishlist includes discipline in government expenditure, expeditious implementation of the proposed goods and services tax, issue of bonds such as Resurgent India Bonds to non-residents, and direct access to oil companies to meet their foreign exchange requirements directly from the RBI.

"The process reforms are as significant as the second generation reforms to address the current prominent challenges faced by the Indian economy and must be fast-tracked," said Rajkumar Dhoot, president, Assocham.

Business confidence is low in the Indian corporate sector in the wake of subdued domestic consumption, rising costs of inputs, deceleration in exports and constant risks from unhedged foreign currency, Dhoot added.

Besides Godrej and Dhoot, the meeting was attended by industrialists such as Vikram Kirloskar, Ajay Sriram, Sandip Somany and Sushma Berlia.

Industry chambers told the council that it was imperative measures to improve the business confidence and to help address the widening current account deficit and falling rupee are implemented.

"The monetary tightening measures used to control inflation had hardened interest rates and investments have been impacted in a very big way. While it is clear that inflation has been a result of supply bottlenecks, there is an urgent need to create conditions for revival of private investment," CII said.
AS SUNDAY ET reports,in the coming appraisal season, the corridors of power will be abuzz with words typically discussed in hushed tones around corporate offices every April - variable pay and key result areas. The government is in the process of introducing a performance-linked incentive system for babus in several ministries this year.

A committee under Cabinet Secretary Ajit Seth has given the green signal to the plan to boost the government's efficiency by introducing variable pay for bureaucrats. The incentive would be determined on the basis of a department's performance on pre-determined annual targets. Departments would have to achieve these goals with lower administrative overhead costs, to make the scheme budget-neutral.

An effective mechanism for monitoring and evaluating performance was part of UPA-II's priority agenda as per the President's address to Parliament in June 2009. Government officers are presently paid a bonus on ad-hoc basis with guaranteed increases in salaries, giving them little reason to take any initiative or risks. This could change with the introduction of a variable pay component, which could boost officials' incomes by as much as 40% of basic salary.

"The government has now decided to introduce a performance-related incentive scheme on a pilot basis, which we hope to launch this year," the government's chief performance officer Prajapati Trivedi said in a recent discussion with human resources professionals from India Inc.

"Officers can't be expected to perform better if they are constantly berated... We can have the world's best evaluation systems, but if we don't have an incentive system, I am afraid we can't improve performance," said Trivedi, who serves as Secretary (performance management) in the Cabinet Secretariat.

Such a system was first recommended for civil servants over 25 years ago, when the Fourth Pay Commission suggested variable increments as a means to reward better performance by babus. The Fifth Pay Commission report submitted to the government in 1997 recommended another variable pay strategy - extra increments for the exceptionally meritorious performers with denial of regular increments for under-performers.

In 2008, the Sixth Pay Commission, by contrast, suggested a performance-related incentive system (PRIS) that offers a monetary perk over and above the salary for higher performance. "There is no external motivation for risk-taking and delivering a higher level of performance, because though the risk-taking is punished if things go wrong, it is not financially rewarded if things improve... Over the years, this has led to a culture where (government) employees have become risk averse," it had noted.

"The Committee of Secretaries under the Cabinet Secretary has deliberated on this extensively since 2009 and has now fleshed out the recommendations of the Sixth Pay Commission that were accepted by the government," said a senior official at the Cabinet Secretariat.

As per the plan, if departments achieve all their targets, they could receive as much as 15% of the cost savings. The secretarial panel has suggested a conservative beginning though the government could take a policy decision to pay out more incentives.

"For every rupee saved, we have proposed giving departments 15 paise. This way, officials would cut costs in their own self-interest rather than being preached idealistic measures for austerity," the official said, pointing out that the Expenditure Reforms Commission reports that have been gathering dust since 2001, had revealed a huge scope for cost savings in every department.

A strong linkage has been proposed between the results and incentives to prevent an obsessive focus on cost-cutting. "You can't save funds by not going to work and cutting electricity and travel costs," said another official privy to the CoS deliberations. "You must have good performance and must save money to have a chance of getting the incentive," he explained.

Drawing parallels between the appraisal system in the public and private sectors, Trivedi said that the subjective assessment of a boss is the bane of all appraisal systems as it tends to skew an employee's focus towards pleasing the boss rather than doing the job. "In government, such evaluations are more difficult as there are multiple principals with differing objectives, such as the minister, parliament, citizens," he said.