Economists call for enhancing tax base

A group of top economists have advocated against squeezing of expenditure and called for enhancing the tax base, while ensuring that states undertake fiscal reforms, with a view to reduce consolidated deficit from 6.5% of GDP, which is among the highest in G20.

“Don’t squeeze spending because capital expenditure gets hit... raise the tax base. The GST is a good possibility for transformative change,” said Amartya Lahiri, who teaches at the Vancouver School of Economics, while releasing an agenda for reforms that has been prepared by a group of 13 economists.

The economists said states should be encouraged to undertake fiscal consolidation as they were lagging, despite steps taken by the Centre, and called for a need to re-prioritise expenditure. “The economy has made significant progress in combating inflation in recent years. Over the last four years, inflation has averaged just over 4% versus almost 10% in the previous five years, and household inflation expectations are getting progressively anchored. The same, however, cannot be said of the fiscal side,” the paper said.

This is a unique initiative taken by economists led by former RBI governor Raghuram Rajan and IMF chief economist-designate Gita Gopinath and comes four months ahead of general elections. Rajan said the points raised in the note could be debated during the campaign for next general elections to ensure that right policies across sectors are adopted.

He also said privatisation of public sector banks was not a panacea for all ills and made a case for reduction of uncompensated mandates, such as lending targets and pushing government schemes through branches of state-owned lenders.

The economists also suggested that there was a need to reduce the statutory liquidity ratio and substituting this with the liquidity coverage ratios and net stable funding ratios set by Basel.

Rajan also expressed concerns over uncompensated government mandates being imposed on PSBs for a long time. “This is lazy government — if an action is worth doing, it should be paid for out of budgetary resources. It is also against the interests of minority PSB shareholders.”

Use of Indian currency notes over ₹100 now banned in Nepal

Nepal has banned the use of Indian currency notes over the denomination of Rs.100. Indian visitors planning a trip to Nepal, and Nepalese citizens working in India and returning home or sending money home, should no longer take Indian currency notes of Rs.200, Rs.500, and Rs.2,000.

Hitherto, Indian currency notes of all denominations was accepted in Nepal but, even earlier, notes of Rs.500 and Rs.1,000 were not easily accepted there. That is, even before PM Narendra Modi demonetized these notes in November 2016.

“There was an old advisory from India to this regard, even before 2016, as fake currency notes in these denominations were in circulation there. Nepal was one of the places from where counterfeit notes of Rs.500 and Rs.1,000 used to be brought into India,” sources said. After demonetization, India introduced new notes in Rs.200, Rs.500, and Rs.2,000 denominations. Now, even these will not be accepted in Nepal.

“This will affect Indian travellers, as they normally use Indian currency. Nepalese citizens working in India will now have to send money electronically. For those planning to send home currency notes, it must be done in notes of up to Rs.100,” sources said.

Myanmar to offer visa on arrival to Indian tourists

Myanmar will now grant Indian passport holders visa on arrival at the international airports of Yangon, Mandalay, and Nay Pyi Taw for a fee of US $50. This will allow Indians to go there without applying for a visa at the Myanmar embassy or applying for the country’s e-visa beforehand.

Recently several countries — especially in the Gulf — have gone all out to woo Indian tourists. UAE gives visa on arrival to Indian nationals with a valid US visa. Oman gives it to Indians who reside in or hold an entry visa to the US, Canada, Australia, the UK, Japan, and the Schengen states. UAE will soon grant a two-day free transit visa to people transiting through its mega hubs like Dubai, Abu Dhabi, or Sharjah.

Delhi: 3 Metro lines likely to open by month-end

The Delhi Metro Rail Corporation has a New Year gift for you: By the end of this month, three new corridors — with a combined length of nearly 50 km — are likely to open, which will also mark the completion of the Metro’s Phase-III project.

Of these, the most eagerly awaited corridor is the 9.7 km Lajpat Nagar to Mayur Vihar Pocket-1 section of the 59-km Pink Line. It will bring the heart of south Delhi and its popular markets, such as Lajpat Nagar, Sarojini Nagar, South Extension and INA, closer to east Delhi.

The opening of this section will nearly complete the Pink Line, except for a 1.4 km missing link between Mayur Vihar Pocket-1 and Trilokpuri.

The other two corridors are the 9.4 km Dilshad Garden-New Bus Adda extension of Red Line and the 29.7 km Aqua Line of Noida Metro Rail Corporation, which will connect Noida to Greater Noida.

The Lajpat Nagar to Mayur Vihar Pocket-1 section of Pink Line will not only bring east Delhi closer to south, but also provide some much-needed connectivity to the Hazrat Nizamuddin railway station, the third busiest station in the city. Apart from Lajpat Nagar, this section will also have an interchange facility at Mayur Vihar 1, connecting the Pink and Blue lines. The two stations will be liked through a 63 m foot overbridge.

The Dilshad Garden to New Bus Adda section of Red Line will not only be DMRC’s second foray into Ghaziabad after Vaishali, but also connect interior parts of the city. This corridor will pass through Sahibabad Industrial Area and significantly impact residential areas in proximity. Connectivity to Mohan Nagar from Dilshad Garden will improve considerably too. The construction of this corridor was a major challenge as it runs along the busy GT Road, which has non-stop traffic through the day.

The Aqua Line of NMRC will provide connectivity to Greater Noida, even though it will not be seamlessly connected with the Delhi Metro network and commuters will have to change trains and buy separate tokens to use the two networks.

Somewhere in Andhra Pradesh....

Somewhere in Tamil Nadu....

In the 1990s, Santhavasal, a dry deciduous mixed forest in Tiruvannamalai, was an example of how human interference can lead to environmental degradation of an ecologically diverse region. But, a 20-year-long intervention programme has shown the way to undo the destruction.

Deforestation for timber, overgrazing and agricultural activities had eaten into the forest area in the Eastern Ghats, affecting the soil, water and biodiversity. The water table in the agricultural fields of nearby villages had plunged to alarming depths, making it unsuitable for drinking and agricultural use. This came as a wake-up call for the people and foresters. As the first step, the Tamil Nadu forest department joined hands with Srinivasan Services Trust, an NGO and CSR arm of TVS Motor company, under TN Afforestation Project, and took up ecological restoration on 240 hectares of the Santhavasal reserve forest near Padavedu.

In 1999, the initiative began with the participation of 640 people from five nearby settlements. A new method, ‘Close to Nature Regeneration System’, was executed on more than 4,000 hectares. Earlier, forest areas used to be replanted with single variety of plants, often exotic, such as eucalyptus, but in the new system, a variety of indigenous species began to be used. After planting saplings, a reasonable amount of time was given for natural regeneration. Necessary soil and moisture conservation measures were also done through trenching and bunding. This prevented the soil from being washed away and allowed water to be impounded so that it would percolate easily and recharge groundwater.

On the socio-economic front, to protect and maintain the restored forests, village forest committees  were constituted in the five adjacent villages. To discourage tree cutting, forest produce such as fuel, fodder, green manure, and non-timber products that could be harvested from the restored forests on a sustainable yield basis went to VFCs.

Reforestation of species such as neem, Indian rosewood, peepal and amla were taken up on a large scale apart from sowing seeds of shrubs, legumes and grasses in particular areas. The result was a significant increase in the density of forest cover, diversity and variety of plants and improved groundwater levels. The villages of Santhavasal, Chinnasanthavasal, Kallankuthu, Kalvasal and Munivanthangal benefited with enhanced water supply and are fit to raise major crops like paddy and sugarcane again. An increase in population of fauna such as rabbits, porcupines, wild boars, reptiles and birds was also observed.

The programme also focused on restoration of 34 endemic species. These included satinwood, which is used for small luxury items and as a veneer in wooden furniture and rosewood, known for its premier timber and other flowering plants. The Santhavasal reserved forest is a model for private public partnership in conserving natural resources. Such measures help achieve economic, environmental and social outcomes for a climate sensitive state like Tamil Nadu.

16 year olds to get e-scooter licence

The Union transport ministry will change motor vehicles rules in the next fortnight allowing those in the 16-18 age group to obtain a licence and drive electric scooters with a maximum speed of 70 kmph, a move aimed at ending the menace of illegal driving by underage teens.

The maximum motor power of these vehicles will be capped at four kilowatts (4 Kwh), which will cover most available brands in the market. Currently, adolescents in the specified age group are allowed to procure licence for driving vehicles that have an engine capacity up to 50 cc. But no such vehicle is available in the market.

Across cities, youth illegally driving gearless electric scooters is a common sight. So far, they have not been applying for licences since these vehicles are exempted, a source said. But now with the government bringing the electric vehicles with motor power of up to 4 Kwh under the purview of the law as a “light two-wheeled powered vehicle”, it will be mandatory for everyone to have a valid licence for driving them.

Sources said this move will also create a market for electric two-wheelers, which is one of the government’s thrust areas to push electric mobility. “Once there is a demand, we will see more domestic players manufacturing these vehicles,” said an official, who did not wish to be named.

Some models available in the market are manufactured by two-wheeler major Hero and some other brands like Ather and Yo have also marked their presence.