Dr.DEBESH BHOWMIK

Dr.DEBESH BHOWMIK

Sunday 19 May 2013

BARRIERS OF EMPOWERMENT OF DALIT WOMEN







WOMEN ENTREPRENEURSHIP AND DEVELOPMENT –THE WAY AHEAD
----Editors:Prof.Saheb Bhau Ohol,Onkar Nath Mishra,Jaya Kumari Pandey,Abhishek Kumar Chintu and Nakul Bhardwaj.(Publisher-Globus Press,NewDelhi,2013),pp 392,Price-1495/-(HB)
This book  contains selected topics in the field of development  issues related to women entrepreneurship,empowerment,micro finance,self help group etc.It has covered  a broad range of issues including programmes to promote women entrepreneuship and development.




BARRIERS OF EMPOWERMENT OF DALIT WOMEN
Dr. Debes Chandra Bhaumik (International Institute for Development Studies, Kolkata)
Dr. Asim Kumar Karmakar (Jadavpur University)
JEL- J15, J16, H53
Key words- Dalit women, Empowerment of dalit women
Introduction
Dalit women are mostly deprived, socially excluded, less literate , absentee of property rights, and less empowerment socially and economically. They are ignorance about women entrepreneurship. They are poverty stricken having minimum access of maintaining standard of living. The total number of dalit women in India is 80.517 million or approximately 48% of the total dalit population, 16% of the total female population and 8% of the total Indian Population.
They make majority of unorganised labourer in urban settings and landless labourers in rural area. They face discrimination on a daily basis, as a dalit, as women and as a poor  while they are in extremely vulnerable position. Systemic violence against dalit women can be seen as a mechanism to keep dalit in a subordinated position. It is built in to the total structure of the dominant society, which does not acknowledge the basic human rights of dalit in general
and dalit women in particular. In this paper, we are interested to discuss about the notable social, economic and political barriers of attainment of empowerment of dalit women.
The Barriers for empowerment
[A] Educational barriers-   The 2001 Census , particularly female literacy rates,  increased by 14.8 % in 2001 as compared to 11.7 % in 1991. The gap between male (75. 8 %) and female (54.1%) literacy rates is 22 %. In 2001, illiterates numbered close to 296 million of which 190 million were women. 34.6% of the world’s non-literate population resided in India in 2003-04.
In 2001, the gender gap in the literacy rate for SC was 24 % (male and female were 66% and 41.9% respectively) and for 12 % for STs (male and female literacy rates were 59.2 % and 47.1 % respectively). In BA courses, there are 3.39 % Schedule caste, 1.38% Schedule tribe, and 40 % non-dalit women.
Ø  At the levels of Graduation and above Muslim women are 48 % worse-off compared to Muslim men and 33% worse-off than Non-Muslim Women.
Ø  In science courses , 2.8 % were dalit women, 0.58% were Schedule tribe, 34 % were non-dalit women.
Ø  In post-graduate and doctoral levels, there were  38% (MA) and 34% (MSc) for non-dalit women, the percentages for dalit women are 3.8% and 2.9% and 1.3% and 0.48% respectively.
Ø  In professional fields like medicine , there are 2.9 % dalit women and 1.1% ST women compared to 34% non-dalit women. In BEd courses, the figure for dalit women is 4.4 % and ST women 1.4 % and non-dalit women is 40 %.

According NSSO , 61st round data, out of 124680million population,16203 million was ST(12.99%),20284million was SC(16.26%),46348million was OBC (37.17%),and 41759 was higher class (33.49% ) respectively in 2004-05.Particularly,in 2004-05,the classification of dalits in urban area were 29.78% are illiterate,34.05% are primary lebel,25.83% are secondary level,4.91% are higher secondary level and 5.43% are graduates and diploma engineers respectively. On the other hand, in rural area, 47.9% dalits are illiterate, 33.29% are primary level, 15.26% are secondary level, 2.1% are higher secondary level and 1.45% are graduates and engineers respectively. Therefore, low status of education is the first and foremost barrier of empowerment of dalit women.
The low educational status of SC and ST produced low human development indices and high human poverty indices. In 2000,the human development indices of SC and ST were 0.303 and 0.27 which marginally stepped up to 0.328 and 0.27 respectively in 2004-05.On the other hand, the human poverty indices of SC and ST were 41.47 and 47.79 in 2000 which increased to 46.88 and 54.56 in 2004-05 respectively.
[B] Gender Budgeting

Gender Budgeting is defined as the application of gender mainstreaming in the budgetary  process. It encompasses incorporating a gender perspective at all levels and stages of the budgetary process and paves the way for translating gender commitments to budgetary commitments and carrying out an assessment of the budget to establish its gender differential impact.
In other words Gender Budgeting looks at Government budget from a gender perspective to assess how it addresses the needs of women not only in traditional areas like health, education etc but also in so called ‘gender neutral’ sectors like Transport , Power, Telecommunications,  Defence etc. It does not seek to create a separate budget but seeks to put in place affirmative action for meeting women’s specific needs, thus bringing into effect gender responsive Budgeting.
The Ministry of Women and Child Development (MWCD) in 2004-05 adopted the mission statement of ‘Budgeting for Gender Equity’. A strategic framework of activities to implement “Budgeting for Gender Equity” disseminated to all Departments identifies areas for gender mainstreaming including quantification of allocation of resources for women in Union/ State/ Local Budgets, gender audit of polices of Governments, impact assessment of various schemes,
analyzing programmes and strategies, institutionalizing generation and collection of gender disaggregated data, consultations and capacity building etc. The MWCD has requested Ministries to set up Gender Budgeting Cells to undertake review of the public expenditure and policy, guide and undertake collection of gender disaggregated data, conduct gender based impact analysis, beneficiary needs assessment and beneficiary incidence analysis. As a result of these efforts 43 Ministries/ Departments have set up Gender Budget Cells as a nodal agency for
all gender responsive budgeting initiatives.
Mid Term Appraisal of the Tenth Plan notes that while “the Department of Education has confirmed a flow of funds of 42.37 per cent of the gross budgetary support to the WCP, the Ministry of Labour, which had reported flow of 33.5 per cent of its budget to the WCP in the Ninth Plan, has reported flow of funds of only 5 per cent of its budget during first three years of Tenth Plan.” The essential earmarking of 30% funds for women under the WCP for all Ministries at the Centre and the States is, at the very least, a good exercise as it forces the policy makers to start thinking on the lines of gendered-impact of policies. This commitment of resources is both vital and necessary. In 2005-06 this exercise covered 10 Departments and the total magnitude of Gender Budget (i.e., women specific allocations) was recorded at 2.8% of total Union Government expenditure. In 2006-07, 24 Departments of the Union Government were included under this exercise and the magnitude of Gender Budget went up to 5.1% of total budget estimates.

The following paragraphs indicate the various possibilities and potential of engendering some important national polices.
[i] The fiscal and monetary policies will need to be analyzed from a gender perspective as both have tremendous potential to have malefic or benign influence on the lives of women. Indirect taxation impinges heavily on women as the tax incidence, by and large, affects important items of sustenance which are generally highly price inelastic and even a small price rise in such items will have a negative impact on women; again the subsidy needs a re-look to ensure that withdrawal of subsidies do not adversely impinge on women.
[ii]Monetary policy has to be viewed from a gender angle, especially in the case of credit and loan facilities and easy access of women to financial instruments and attractive saving options.
[iii]Agricultural policies are of prime importance in gender budgeting exercises as there is a growing feminization of agriculture in recent years with out migration of men moving to urban areas in search of work. It is estimated that 75% of all female workers and 85% of all rural female workers are in agriculture. Women constitute 40% of the agriculture force and this percentage is rising. The number of women headed households in the agricultural sector is also increasing. The prosperity of agriculture therefore will largely depend on how effectively these women are empowered. Enhancing women’s’ rights to land, providing infrastructure support to women farmers and advancing legal support on existing laws are some of the policy interventions needed.
[iv]Policies for the Non farm sector and information is another highly important area that has to seriously reviewed keeping in view the gender perspective.
[v]Poverty alleviation programs should essentially focus on women as they are economically more disadvantaged than men and chronically poor.
[vi]The existing public distribution system has failed to deliver the required food grains to the vulnerable groups on time in the requisite quality and quantity.
[vii] Public policy with respect to migration is another area for consideration.
[ix]The possibilities of gender differentials for social security insurance schemes is another area that need to be examined, as there is an urgent need for low cost and gender friendly insurance systems that cater to the specific life cycle needs of women.
[x] Environmental concerns also warrant gender mainstreaming.
[xi] Disaster management policy should become gender sensitive as experiences have shown that women are most affected by disasters whether manmade or natural.
[xii] Media policy needs to be gender proactive.
[xiii]Research and Development should also be geared with a view to identify technological needs of women and develop and adapt technology especially to reduce the drudgery of women, facilitating her health and also income generating activities.
Gender Budgeting exercises more meaningful and effective, if the following approach can be followed by the Cells for extending gender outcomes.
[a]Assessing budget allocations and proposing for additional allocations for gender related schemes / components ;
[b]Analyzing and reviewing policy, strategies, programmes and schemes from the perspective of women as also improving the status of women, identifying constraints and taking into view their needs and requirements
[c]Identify constraints in flow of funds to women through expenditure tracking studies
[d]institutionalize generation, collection and compilation of gender disaggregated data through various mechanisms right form the grass root level and ensure that this should be an inbuilt part of the programme/ scheme.
[e]Identify data gaps and design the future steps for building gender disaggregated data
[f]Monitoring of spending and service delivery
[g]Assessing the extent to which women are benefiting under the schemes and programs of the Ministry
[h]Assessing beneficiary incidence
[i]Identification of areas where existing schemes can be further engendered and Initiating new initiatives, innovative ideas and schemes for gender benefit. In addition to the above, which will primarily be the responsibility of the individual sectoral Ministries/ Departments, the Planning Commission and the Finance Ministry should enable assessment of national level gender outcome assessment through:
[j]Spatial mapping of gender gaps and resource gaps by Planning Commission
[k]Gender audit of public expenditure, programmes and policies
[l] There is a need to collect gender disaggregated data at national, state and district levels. Standardisation of data is also necessary to facilitate comparison not only at national but also international levels. The data should flow on a regular basis and should be compiled, collected and analysed periodically.

[C] Occupational barrier
       Both the SC,ST including women are heavily engaged in the cultivation, agricultural labour , household work and industries because of educational backwardness and poverty. Of them, the women marry early and engage themselves in household and cultivation work including other labour activities. The girls who are educated up to HS/BA, are not quite acquinted with entrepreneurship, service or political/professional positions so as to empower themselves to higher levels. Besides, gender deprivation, social oppression and low skill forced them to do habitual and traditional works. The Table- 1, classify the occupational distributional patterns of SC and ST during 1971 and 1991 census respectively where the readers can verify the attainment of human development in case of occupation . In Table-2, the sector-wise occupation of SC and ST confirm that their roles in industry especially medium and big industries are bare minimum. The secondary sector occupation has increased only one percent from 1971 to 1991 which showed that dalits are not transformed into more entrepreneurial activities. 

[E] Barriers of commitment for empowerment
   Accomplishing ‘inclusive growth’ is also envisaged through the economic empowerment of
SCs who are living in economic backwardness. Available data suggest that 36.8 per cent rural SCs and 39.9 per cent urban SCs lived below the poverty line (in 2004–05) in contrast to the 16.1 per cent rural non-SC/ST and 16 per cent urban non-SC/ST population. Various employment-cum-income generating schemes are being implemented with a view to improving their economic conditions and for making them economically self-reliant. The schemes are: The National Scheduled Castes Finance and Development Corporation (NSCFDC),it needs to focus their activities mainly towards financing Micro-Finance Institutions (MFIs), Self- Help Groups (SHGs), and the Mahila Samridhi Yojana (MSY), State Channelizing Agencies (SCAs) , the National Safai Karamcharis Finance and Development Corporation (NSKFDC), State Scheduled Castes Development Corporations (SCDCs),etc.

Commitment for Social Empowerment in 11th plan
Establishing requisite number of primary schools with proper school buildings, hostels, and water and toilet facilities (particularly for girls’ schools).
• To set up residential high schools for ST boys and girls at suitable places.
• Timely distribution of fellowships, scholarships, textbooks, uniforms, and school bags to students.
• Evaluation of the ICDS/anganwadi schemes for tribal areas and removing their shortcomings.
• Emphasis on adult education to be paid adequate attention.
• Ensuring affordable and accountable primary healthcare facilities to STs and bridging the gap in rural healthcare services through a cadre of ASHAs.
• Ensuring that the PESA Act functions as instrument of self-governance, preparing and implementing schemes in Scheduled Areas.
• Efforts to conserve the eco-system along with stress on economic programmes for PTGs. Formulation and execution of a national plan of action for tribals. Provision of drinking water supply to the uncovered tribal areas.
• Construction of rainwater harvesting structures: Electrification and telecom coverage in tribal villages.  Setting up of the National Institute of Tribal Affairs (NITA).
• Effective operationalization of the provisions of the Fifth Schedule needs to be done urgently. The Tribes Advisory Council (TAC) to be proactive while functioning as an advisory body to the state government in matters relating to STs.
  For Economic Empowerment
• Efforts to revitalize and expand the agriculture sector: To open training centres to impart skill development training to tribals in diverse occupations.
• Ensuring better coordination at higher levels and efficient delivery at the field level by lending agencies, such as NSTFDC and TRIFED.
• Scheme for quality improvement, higher productivity, and regeneration of Minor Forest Produce (MFP) species. Recruitment of ST women in posts of forest guards, foresters, and forest rangers by lowering educational qualifications.
• Infrastructure development in the Fifth and Sixth Scheduled Areas through utilization of grants available under Article 275 (1) of the Constitution.
  For Social Justice
• Steps to prevent exploitation through the effective implementation of SC/ST (POA) Act, 1989.
• Amendment to the Land Acquisition Act, 1894; Forest Act, 1927; Forest Conservation Act, 1980; Coal Bearing Areas (Acquisition and Development) Act, 1957; and the National Mineral Policy, 1993. Displacement and rehabilitation of tribals also emphasized.
Plugging of loopholes in implementing laws for preventing alienation of tribal land: Effective follow-up actions of the National Rehabilitation and Resettlement Policy, 2007.
All these commitments are not sufficient for sustainable development of dalit women to empower them socially and economically in the changing society.


 Table-1
Occupational Distribution  of Labour Force (%)

Source-Tilak, Bharti, 2007

Table-2, Sector wise occupation of SC and ST.(%)

Source-Tilak, Bharti,2007

[D] Barrier of Poverty
At the all-India level the poverty ratio for the rural areas was 37.3 percent in 1993-94 and it
declined to 27.1 percent by 1999-2000. The corresponding ratios for the urban households
were 32.4 percent and 23.65 percent respectively. The poverty ratios for SCs and STs were
significantly higher both in 1993-94 and 1999-2000.
It may be observed that as against 27 percent of all population living below the poverty line in the rural areas in 1999-2000, 36 percent of SC population and 46 percent of ST population lived below the poverty line. There was a decline in the poverty ratio of 27% for all population, 25% for SCs and 12% for STs as compared to 1993-94. This implies that the poverty ratio declined faster for all population than for SCs and STs, though between the SCs and STs, the decline has been more rapid. The decline is larger in rural areas than in the urban both in cases of poverty lines and in income gap ratios.
So, elimination of poverty for the dalit especially women should be the important goal for achieving higher empowerment.
Table-3, Income Gap of SC and ST
 Source-Planning commission
Table-4; Population below the poverty line
[E] Barriers of Finance, Investment and Property rights
 Dalits are deprived in budget allocation too. The total budget allocation under Plan outlay for the year 2008-09 was Rs 243385.5 cr and under SC Sub Plan the Government of India was liable to allocate Rs 40090.90 cr. Exclusively for dalits (16.7% of the total plan budget) but it has allocated just Rs.11751.07 cr.(29% of the total due under the SCSP) for the welfare of SCs, which means again SCs have been deprived by Rs.29801.89Cr.This exposes the stark untouchability that is being practiced by the finance ministry and in the whole union budget. And the process is going on.
Table-5,History of exclusion in the budget.


Source-GOI
The figures of allocation in Table-5, are a mute witness to the history of denial of exclusion. It is not only for above three years, this trend was observed for the last 27 years since the inception of SCSP in 1979-80.The amounts to willful negligence and those responsible are liable  to be punished for this crime.

Dalit women have no right to access of land holding for cultivation or homestead land for building houses. Even they have no rights to hold other property as well by which they can face a huge adverse impact barriers of property rights.
Regarding land, the following recommendations were agreed on:
1. Land earmarked for dalits by governments should be restored and registered in the name of dalit women or jointly in that of dalit men and women.
2. Surplus land should be earmarked for dalits in proportion to their populations in each country.
3. Governments should suitably amend laws in accordance with the optimum land ownership level for the livelihood of an average family, implement land reform acts and constitute and empower independent monitoring mechanisms with equal representation of dalit women and men to ensure implementation of such legislation on a time-bound basis, so that actual enjoyment of the land is the basis for ascertaining success of land rights reform programmes.
4. Governments should issue legal title to land possessed and enjoyed by dalit women and men, with legal title issued to the name of dalit women or jointly in that of dalit men and women.
5. Governments should allocate sufficient budgets for purchase of land to be distributed to dalit women.
6. Appropriate policies should be designed to enhance the effectiveness of agricultural practices, to build and strengthen capacities within dalit communities and to provide market support.
7. Governments should enact appropriate legislation to prevent displacement of dalits and alienation of their land.

Dalit women have been confronting with vocational training or any special training for entrepren eurship to run a business or manufacturing or management of a service unit which were forced them to be low empowerment .As a whole their status on education is not favourable for achieving high empowerment. Therefore, the access of bank finances for introducing a producing unit is rarely found in favour of them.

[F] Other barriers

Dalit women have been facing with innumerable barriers of empowerment or to live with equal status against dalit men or simply other men. Of them, the child marriage is the root cause of anti-empowerment system of dalit girls. Unless it is stopped, there will be no sign of development of dalit women. Secondly, the forced Debdasi System in India and abroad is the key element of prostitution under the umbrella of God/Goddess which was introduced by the priests who were also the representatives of the monarchy. Thirdly, the violence against the dalit women is historical and are classified into domestic and external where the domestic violence against the dalit women came from the family itself. Lastly, the failure to prosecute rape cases of dalit women were not completely controlled by the Government.
Until and unless those barriers are omitted , the slow pace of empowerment of dalit women would not be eliminated.

Conclusion

Indian Planning Commission has a long way to go to empower dalit women which require not only to increase plan outlay, but also requires structural transformation to step HDI and GEM of dalit women abolishing all sorts of deprivation, social exploitation and exclusion from the main stream of development pattern of the Indian economy. India government should frame a long term sustainable planning which must introduce the evolutionary process of development of dalits including gender un-biased. To pave the way of success, all social, political and economic institutions must involve in this social change co-operating with each other.



References


Bhowmik,Debesh.,2007,Issues on Gender Equality and Development: Some recommendations. Rabindra Bharati University Journal of Economics, Vol-I, March,59-67

Bhowmik,Debesh.,2011,The Dimensions of empowerment of Dalit in India.,(forthcoming).

Bhowmik,Debesh,2012,Dalit Women: Exploitation and social exclusion.(forthcoming).

Desh Pande, Satish and Geetika Bapna,2012,Dalit in the Muslim and Christian Comminities-A Status Report on Current Social Scientific Knowledge-prepared for the National Commission for Minorities-Government of India.

Government of India, Ministry of Women and Child Development,2010,Report of the Working Group on Empowerment of Women,for the XI plan.

Kethineni, Sesha and Gail Diane Humiston,2010, Dalits, the “Oppressed people” of India: How are their Social, Economic, and Human Rights Addressed ? War and Crimes, Genocide and Crime against Humanity,Vol-4:99-140.

Michael,S.M.,2001,Dalits in Modern India: Vision and Values, Sage Publications, NewDelhi.

National Conference of Dalit Organisation (2006)-MDG and Dalits: A Status Report.NewDelhi.

Ojha,Ganapati,2012,Dalit Women’s Livelihood Accountability Initiative India. Final Report, UN Women Fund for Gender Equality, February.

Sen, Amartya. 2000. Social Exclusion: Concept, Application, and Scrutiny. Social Development Papers No.1, Office of Economic and Social Development. Manila: Asian Development Bank.

Thakur.Anil Kumar and R.N.Thakur.(2007)-Impact of Economic Reform Policies on Dalits and Weaker Sections.(Deep and Deep,NewDelhi).
Thorat,S.,2009,Dalits in India:Search for a Commmon Destiny, Sage Publications,NewDelhi

Tilak,Rajni and Ashok Bharti,2011,Educating Dalit Women-The Status Report,National Conference of Dalit Organisation,NewDelhi


Friday 1 March 2013














A QUICK LINK TO THE UNION BUDGET 2013-14

The budget claims that  the CSO has estimated growth at 5 percent while the RBI has estimated growth at 5.5 percent. The fiscal deficit stood at 5.3 percent of GDP this year and 4.8 percent of GDP in 2013-14.we have to find over USD 75 billion to finance the CAD. There are only three ways before us: FDI, FII or External Commercial Borrowing (ECB). WPI inflation to about 7.0 percent and core inflation to about 4.2 percent. Total expenditure had been fixed at Rs.14,90,925 crore. Due to the slowdown and the austerity measures, the revised estimate is Rs.14,30,825 crore or 96 percent of the budget estimate. The economic space that we have gained has given me the confidence to be more ambitious in 2013-14. I have been able to set the BE of total expenditure at Rs.16,65,297 crore and of plan expenditure at Rs.5,55,322 crore. The plan expenditure in 2013-14 will be 29.4 percent more than the revised estimate of the current year. 
Features

[i] FM allocated Rs.41,561 crore to the scheduled caste sub plan and Rs.24,598 crore to the tribal sub plan. The total represents an increase of 12.5 percent over the BE and 31 percent over the RE of the current year. [ii]that the gender budget has Rs.97,134 crore and the child budget has Rs.77,236 crore in 2013-14.


[iii]He allocated Rs.3,511 crore to the Ministry of Minority Affairs. This is an increase of 12 percent over the BE and 60 percent over the RE of 2012-13.

[iv]Rs 750 cr is allotted to The Maulana Azad Education Foundation Disabled Persons

[v] A sum of Rs.110 crore to the Department of Disability Affairs for the ADIP Scheme in 2013-14, as against the RE of Rs.75 crore in the current year was sanctioned.

[vi] Rs.37,330 crore to the Ministry of Health and Family Welfare
[vii] Rs.4,727 crore for medical education, training and research.

[viii] 150 cr for The National Programme for the Health Care  
[ix] For National Health Mission, Rs.1,069 crore to the Department of AYUSH was spared.

[x] six AIIMSwill get  Rs.1,650 crore for these institutions.

[xiFM allocated Rs.65,867 crore to the Ministry of Human Resource Development, which is an increase of 17 percent over the RE of the previous year. The Sarva Shiksha Abhiyan (SSA) and the Right to Education Act are firmly in place and sanctioned Rs.27,258 crore for SSA in 2013-14.

[xii] A provision of  Rs.3,983 crore for RMSA, which is an increase of 25.6 percent over the RE of the current year.

[xiii] For Scheduled Castes, Scheduled Tribes, Other Backward Classes and Minorities, and girl children, in 2013-14. FM  allocated  Rs.5,284 crore to the various Ministries for the purpose, as compared Rs.4,575 crore in the RE of the current year.

[xiv] The Mid-Day Meal Scheme (MDM) will be provided Rs.13,215 crore.


[xv] for  the ICDS ,he  propose to allocate Rs.17,700 crore in 2013-14, representing an increase of 11.7 percent.
[xvi] For Maternal and child malnutrition in a country Rs.300 crore in 2013-14 was provided.

[xvi] Clean drinking water and sanitation have a number of beneficial externalities, he propose to allocate Rs.15,260 crore to the Ministry of Drinking Water and Sanitation, as against the RE of Rs.13,000 crore in the current year.

[xvii] To 2,000 arsenic- and 12,000 fluoride-affected rural habitations in the country Rs.1,400 crore towards setting up water purification plants was passed.

[xviii] For  Ministry of Rural ,he allocated Rs.80,194 crore in 2013-14, marking an increase of 46 percent. MGNREGS will get Rs.33,000 crore, PMGSY will get Rs.21,700 crore, and IAY will get Rs.15,184 crore.

[xix] The Jawaharlal Nehru National Urban Renewal Mission is  provided  Rs.14,873
[xx]  FM proposed to allocate Rs.27,049 crore to the Ministry of Agriculture, an increase of 22 percent over the RE of the current year. Of this, agricultural research will be provided Rs.3,415 crore.
[xxi] Agricultural credit is provided Rs.700,000 crore.

[xxii] Bringing the green revolution Rs.1000 crore in 2013-14 is alloted.

[xxiii]  Allocated  Rs.500 crore to start a programme of crop diversification that would promote technological innovation and encourage farmers to choose crop alternatives.

[xxiv] The Rashtriya Krishi Vikas Yojana and the National Food Security Mission is provided Rs.9,954 crore and Rs.2,250 crore, respectively,
[xxv] Integrated watershed programme from Rs.3,050 crore in 2012-13 (BE) to Rs.5,387 crore.

[xxvi]  A project of  rejuvenate coconut gardens in Kerala and the Andaman & Nicobar Islands is provided an additional sum of Rs.75 crore in 2013-14.

[xxvii]  Farmer Producer Organizations (FPO), including Farmer Producer Companies (FPC), were given  Rs.10 lakh per FPO to enable them to leverage working capital from financial institutions and was provided  Rs.50 crore for this purpose. Besides, a Credit Guarantee Fund will also be created in the Small Farmers' Agri Business Corporation with an initial corpus of Rs.100 crore.

[xxviii] The National Livestock Mission will be launched in 2013-14 with Rs.307 crore for the Mission.
[xxix] Apart from Rs.10,000 crore, over and above the normal provision for food subsidy for food security
[xxx]For industry and infrastructure development , to issue tax free bonds in 2013-14, strictly based on need and capacity to raise money in the market, upto a total sum of Rs.50,000 crore.

[xxxi] He  raised the corpus of RIDF-XIX in 2013-14 to Rs.20,000 crore.
[xxxii] and 3,000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14.

[xxxii] The Cabinet Committee on Investment (CCI) has been set up to monitor investment proposals as well as projects under implementation, including stalled projects, and guide decision-making in order to remove bottlenecks and quicken the pace of implementation.
[xxxiii] A company investing Rs.100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment.
[xxxiv] The Rajiv Gandhi Equity Savings Scheme will be liberalised to enable Rs.10,00,000 to Rs.12,00,000;


[xxxv]To improve power supply in the Leh-Kargil region and connect the Ladakh region to the northern grid, the Government will construct a transmission system from Srinagar to Leh at a cost of Rs.1,840 crore and provided Rs.226 crore in 2013-14 for the project.

[xxxvi]  Two new major ports will be established in Sagar, West Bengal and in Andhra Pradesh to add 100 million tonnes of capacity. In addition, a new outer harbour will be developed in the VOC port at Thoothukkudi, Tamil Nadu through PPP at an estimated cost of Rs.7,500 crore. When completed, this will add 42 million tonnes of capacity.
[xxxvii] It is planned for a PPP policy framework, with Coal India to increase the production of coal for supply to power producers and other consumers.

[xxxviii] He proposes that the non-tax benefits may be made available to a MSME unit for three years after it graduates to a higher category.

[xxxix] To provide greater support to MSMEs, he enhanced the refinancing capability of SIDBI from the current level of Rs.5,000 crore to Rs.10,000 crore per year.

[xxxx]  Microfinance Equity Fund is allotted  Rs.100 crore .
[xxxxi]  To continue the Technology Upgradation Fund Scheme (TUFS) for the textile sector in the 12th Plan with an investment target of Rs.151,000 crore. The major focus would be on modernisation of the powerloom sector and provided Rs.2,400 crore in 2013-14 for the purpose.

[xxxxii] A sanction of Rs.50 crore to the Ministry of Textiles to provide an additional grant of upto Rs.10 crore to each Park was made.

[xxxxiii] He proposes to provide Rs.50 crore in 2013-14 for the scheme.

[xxxxiv] FM allocated an additional sum of Rs.96 crore in 2013-14 to the Ministry of Textiles for interest subvention.

[xxxxv]  Khadi, village industries and coir industries in 12th Plan has provided an outlay of Rs.850 crore.

[xxxxvi] For banking sector in 2013-14, further amount of Rs.14,000 crore was sanctioned for capital infusion.
 [xxxxvii] All scheduled commercial banks and all RRBs are on core banking solution (CBS) and on the electronic payment systems (NEFT and RTGS by 31.12.2013. Public sector banks have assured me that all their branches will have an ATM in place by 31.3.2014.

[xxxxviii] to set up India's first Women's Bank as a public sector bank and I shall provide Rs.1,000 crore as initial capital by October, 2013.
[xxxxix] The Rural Housing Fund set up through the National Housing Bank is used to refinance lending institutions, and provided Rs.4,000 crore to the Fund and Rs.6,000 crore to the Rural Housing Fund in 2013-14.

[xxxxx] For Urban Housing Fund Rs.2,000 crore is alloted in 2013-14.

[xxxxxi] All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company by 31.3.2014.
- KYC of banks will be sufficient to acquire insurance policies.
- Group insurance products will now be offered to homogenous groups such as SHGs, domestic workers associations, anganwadi workers, teachers in schools, nurses in hospitals etc.
 The Rashtriya Swasthiya Bima Yojana covers 34 million families below the poverty line. It will now be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers, sanitation workers, rag pickers and mine workers.

[xxxxxii] SEBI, will now be free to register different classes of portfolio investors, subject to compliance with KYC guidelines.
- where an investor has a stake of 10 percent or less in a company, it will be treated as FII and, where an investor has a stake of more than 10 percent, it will be treated as FDI.
- FIIs will be allowed to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.
- FIIs will also be permitted to use their investment in corporate bonds and Government securities as collateral to meet their margin requirements.
- Mutual fund distributors will be allowed to become members in the Mutual Fund segment of stock exchanges so that they can leverage the stock exchange network to improve their reach and distribution.
- The list of eligible securities in which Pension Funds and Provident Funds may invest will be enlarged to include exchange traded funds, debt mutual funds and asset backed securities.

[xxxxxiii] It is planned to take up waste-to-energy projects in PPP mode and  for wind energy projects and  provided of  Rs.800 crore to the Ministry of Non Renewable Energy for the purpose.

[xxxxxiv] The Backward Regions Grant Fund (BRGF) is a vital source of gap funding for which is to allocate Rs.11,500 crore in 2013-14 as well as another sum of Rs.1,000 crore for LWE affected districts.
[xxxxxv] Govt. have set an ambitious target of skilling 50 million people in the 12th Plan period, including 9 million in 2013-14.
[xxxxxvi]  Defence expenditure is Rs.203,672 crore. This will include Rs.86,741 crore for capital expenditure.
[xxxxxvii] Rs.6,275 crore went to the Ministry of Science & Technology; Rs.5,615 crore to the Department of Space; and Rs.5,880 crore to the Department of Atomic Energy
- Rs.100 crore each to:
- Aligarh Muslim University, Aligarh campus
- Banaras Hindu University, Varanasi
- Tata Institute of Social Sciences, Guwahati campus
- Indian National Trust for Art and Cultural Heritage (INTACH)
- National Institute of Sports Coaching at Patiala at a cost of Rs.250 crore over a period of three years.
- a population of more than 100,000 will be covered by private FM radio services.
- Panchayati Raj in 2013-14 will get an additional Rs.200 crore.
-Post Offices modernization will cost Rs.4,909 croreand for  core banking solution and offer real Rs.532 crore for the project in 2013-14.
[xxxxxviii] In 2013-14 a transfer resources to the tune of Rs.5,87,082 crore to the States and UTs where to set up a fund - let us call it the Nirbhaya Fund - and Government will contribute Rs.1,000 crore. Ministry of Women and Child Development  and FM  proposed to set apart Rs.1,000 crore for this ambitious scheme
[xxxxxix] The Direct Benefit Transfer scheme has captured the imagination of the people, especially the poor.
[xxxxxx] The estimate of Plan Expenditure is placed at Rs.5,55,322 crore. As a proportion of total expenditure, it will be 33.3 percent.

- Non Plan Expenditure is estimated at Rs.11,09,975 crore.

- fiscal deficit for the year 2013-14 is estimated at 4.8 percent. The revenue deficit for the current year will be 3.9 percent and the revenue deficit for the year 2013-14 is estimated at 3.3 percent.
-He proposes  to provide a tax credit of Rs.2,000 to every person who has a total income upto Rs.5 lakh. 1.8 crore tax payers are expected to benefit to the value of Rs.3,600 crore.

- a surcharge of 10 percent on persons whose taxable income exceeds Rs.1 crore per year.
- the surcharge from 5 percent to 10 percent on domestic companies whose taxable income exceeds Rs.10 crore per year
- to increase the current surcharge of 5 percent to 10 percent.
- If the limit of interest rate Rs100000/-is not exhausted, the balance may be claimed in AY 2015-16.
-for disabled premium rate from 10 percent to 15 percent of the sum assured. This relaxation shall be available in respect of policies issued on or after 1.4.2013.

- to provide an investment allowance at the rate of 15 percent to a manufacturing company that invests more than Rs.100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015.

- a rupee- denominated long term infrastructure bonds will be issued.

-to modify the Rajiv Gandhi Equity Saving Scheme
- to levy a final withholding tax at the rate of 20 percent on profits distributed by unlisted companies to shareholders through buyback of shares.
- to make the following reductions in the rates of tax:
- Equity futures: from 0.017 to 0.01 percent
- MF/ETF redemptions at fund counters: from 0.25 to 0.001 percent
- MF/ETF purchase/sale on exchanges: from 0.1 to 0.001 percent, only on the seller
- The fifth Large Tax payer Unit will be opened at Kolkata shortly.

[xxxxxxi]There will also be no change in the normal rate of excise duty of 12 per cent and the normal rate of service tax of 12 per cent.

- to reduce the duty on specified machinery for manufacture of leather and leather goods, including footwear, from 7.5 per cent to 5 per cent.

- to reduce the duty on pre-forms of precious and semi-precious stones from 10 percent to 2 per cent.

- to impose a duty of 10 percent on export of unprocessed ilmenite and 5 per cent on export of upgraded ilmenite.

-set top boxes to increase the duty from 5 per cent to 10 per cent.

- to increase the duty on raw silk from 5 per cent to 15 per cent.

- to equalise the duties on both kinds of coal and levy 2 per cent customs duty and 2 per cent CVD.

-to increase the duty on such motor vehicles from 75 percent to 100 percent with engine capacity of 800cc or more from 60 per cent to 75 per cent; and on yachts and similar vessels from 10 percent to 25 per cent.

- to raise the duty-free limit to Rs.50,000 in the case of a male passenger and Rs.100,000 in the case of a female passenger, subject to the usual conditions.

- to totally exempt handmade carpets and textile floor coverings of coir or jute from excise duty.

- to exempt ships and vessels from excise duty. Consequently, there will be no CVD on imported ships and vessels.

- to increase the specific excise duty on cigarettes by about 18 percent. Similar increases are proposed on cigars, cheroots and cigarillos.

- to increase the excise duty on SUVs from 27 percent to 30 percent. However, the increase will not apply to SUVs registered as taxis.

- to increase the duty from Rs.30 per sq. mtr to Rs.60 per sq mtr on marbel.
- to levy 4 percent excise duty on silver manufactured from smelting zinc or lead,
-to raise duty of 6% on mobile phones priced at more than Rs.2000.
- full exemption of service tax was granted on copyright on cinematography.
- to levy service tax on all air conditioned restaurants.

- to reduce the rate of abatement for this class of buildings (of Rs 1 cr.)from 75 percent to 70 percent.
-So, the direct taxes side are estimated to yield Rs.13,300 crore and on the indirect taxes side Rs.4,700 crore.

At the end, FM expects that India would  become a $ 5 trillion economy, and among the top five in the world by 2025.


Thursday 28 February 2013



IMPORTANT FEATURES OF THE ECONOMIC  SURVEY-2012-13
India’s Economic Survey 2012-13 has been released. Indian economy is expected to achieve 5.0% growth rate having 5.5% and 5.3% in first and second quarters respectively but the growth rate has fallen considerably from 9.3% in 2010-11.Agricultural growth rate is realized at 3.6% as against of 4.0% target rate. The contribution of growth in  agriculture in GDP fell down massively. The foodgrain production in million ton has come down from 259.32 in 2011-12 to 250.14 in 2012-13 but the yield of foodgrains per kg/hectares has enhanced from 1930 in 2010-11 to 2059 in 2011-12.Gross capital formation in agriculture as a percentage of agri-GDP has almost doubled in a decade and now hovers around 20% .Given capital output ratio about 4:1,this should easity give us a growth of more than 4.5% ,but even the dream of having a considerably 4% growth in agriculture still remains elusive. In 2011-12,agri-exports touched $17 billion, against imports of only $17billion ,in 2012-13,exports are likely to cross $40billion against imports of roughly $20billion. The growth rate of manufacturing value added fell considerably to  7.3% in 2012 including fall of  gross capital formation in industry(-10.8%) from 22.3% in last year. Credit growth to manufacturing down from 22.54% in Q1 to 14.83% by Q3.Over all, India’s manufacturing has stagnated at around 15% of GDP.FDI in infrastructure sector down 79% to $1.2billion from $5.8billion.The growth of Gross fixed capital formation of the economy has fallen sharply from 14% in 2010-11 to 2.5% in 2012-13.The growth of Private final consumption decreased from 8.6% in 2010-11 to 4.1% in 2012-13.Government will not breach the fiscal deficit target of 5.3% of GDP despite shortfall in revenues in the current fiscal year. Wholesale price index based inflation may decline to 6.2% in March 2013.The gap between the CPI based inflation and WPI inflation has widened due to high food inflation. The current account deficit widened to 4.6% of GDP in Q1 of 2013.The bank credit to agriculture fell from 368616 cr in 2011-12 to 142832cr in 2012-13.Both the growth in deposits and credit have fallen. The net injection/absorption of liquidity has increased too by December2012.The NPA of the banking sector has gone too high. The FDI limit in PSU banks could be increased to 26% as is the case with the insurance sector. The export fell 5.5% and imports fell less than proportionately by 0.7%.The survey said that the government can curb demand through fiscal consolidation and the RBI through that liquidity. These may have an adverse effect on growth but that is inevitable.  The Survey feels to invest more in education and health sectors including in employment generation and financing in climate change.  The agenda of the survey highlights in the manner of [i] no higher marginal rates of tax-broaden the tax base to raise tax collections,[ii] cut subsidies, rationalize expenditure to bring down the fiscal deficit,[iii] indirect nod to a large number of differently sized banks, to support small and medium enterprises,[iv] improve ease of doing business, expedite clearances,[v] further relax foreign direct investment regime.Raghuram Rajan prescribed for the economy to revive growth and rebalance national spending from consumption to investment by [i] increasing government saving,[ii] incentivizing financial savings through real high returns,[iii] removing bottlenecks to investment and job creation ,[iv] reducing costs of raising finance, and [v] combating inflation through monetary and supply side measures.The Deputy Chairman of the Planning Commission,M.S.Aluwalia hoped that the projection of 6.7% growth for 2013-14 is not optimistic by raising tax:GDP ratio.