The HINDU editorial analysis and notes pdf September 21

The HINDU editorial notes

The Rafale controversy highlighted the need of an independent and nonpartisan facts collection body for the benefit of parliamentarians and electorate.
Besides the amount of information that Parliamentarians have to scrutinize in budget document has exponentially increased in recent times.
Thus there is a need for an independent fiscal watch dog along the lines of Parliamentary Budget Offices(PBO) of UK,Australia.
PBOs need not always be seen as challenger to Government statistics and ministries ,it might as well augment and verify the government's statistics.

How PBO differs from the existing Comptroller and Auditor General (CAG) ?

CAG provides retrospective analysis of financial accounts and Government operation, thus CAG acts as a mere fact checker.
While a PBO would provide prospective future looking economic and fiscal projections, thus providing a completely independent source of fact .

PBOs exist in all major democracies ,they are also making an appearance in emerging economies of sub saharan african and south east asian nations.
As the process towards Union budget 2020 is gearing up ,it would be prudent for the Indian government and Parliamentarians to examine the case for a PBO more deeply.
An Independent unbiased data source will empower the Parliamentarians and help them in holding the executive accountable.

To read the complete source article,click here

For more upsc realted details on PBOs,read this article

The decision was long overdue as the basket of items factored on calculating the consumer price index for agricultural laborers CPI AL , has not been updated for at least three decades.Food and basic services prices inflation has increased dramatically since then .
Once a new baskets of items are calculated and the rates are revised, the statistics Minister along with labor bureau plants to improve the CPI -AL and CPI rural indices with annual reviews.
If the index revision concludes soon the center must ensure that it notifies updated MGNREGA wages (currently at abysmal 178 rupee) immediately rather than waiting until the next fiscal year
Rural demand has weakened in last three quarters ( RBI annual report) ,the decision to revise wages and put money in the hands of rural India would boost the rural consumption demand and will help in reviving the economy.

To read the complete source article,click here

Read more about revising rural wages ,here

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This is seen as major reform to boost the economy and to attract investment
Corporate rates which prevailed around 35% will come down to 25% (inclusive of surcharges)
The Government also announced additional incentive for companies which are willing to start projects between Oct 1 2019 and march 31 2023 ,the tax rate will be as low as 15%.
This is a significant decision and could revive the animal spirit of investors and might as well attract US companies fleeing china post trade war tensions
But the larger question of the move is ,how will the Government compensate for the loss in revenue if taxes were lowered
When the Government's GST tax collections are already off the mark ,this further slump in revenue sources will derail the Government from achieving fiscal deficit target of 3.3% (2019-20)
The huge surplus transfer from RBI will obviously cushion to some extent ,but even that wouldn't be enough
Disinvestment of PSU s can help to certain extent, but for that to happen double the current target have to be achieved
Corporate tax cut on the face of the economic slowdown is a wise move , but unless the Government revenue bounces back quickly, the Government will be in a serious fiscal trouble.

To read the complete source article,click here

Read more on corporate tax rate and needed reforms ,here

This article basically discusses the rise of Xenophobic anti-immigrant rhetoric & majoritarian assertiveness in democracies like USA and India.
The author mentions the double standards shown by some NRIs ,who support for minority rights while living in USA,but turn a blind eye when minority rights are infringed in India.
Multiple identities and split loyalties are part of human existence ,the ultra nationalist leaders and their followers in USA and India seems to have forgotten this.

To read the complete source article,click here
Read more about rise of xenophobia in India and steps to prevent it,here

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