Thursday, March 11, 2010

Govt's Double-talk How & whose GDP is rising? By Shivaji Sarkar

IT is a classic case of double-talk by the government. The chief ministers were assured of strengthening the Public Distribution System (PDS) to keep a check on prices. Instead, it has now slashed the spending on it by 25 per cent.
The budget estimated a higher GDP growth, but it is not reflected in per capita income and consumption pattern, which has come down sharply.
It is a moot question as to how or whose GDP is rising. A natural corollary to the GDP growth should have been seen in increased incomes of individuals.
This has not happened.
On the contrary the per capita income measured in terms of the GDP at constant prices has declined from 8.1 per cent in 2007-08 to 3.7 per cent in 2008-09 and expected to touch 5.4 per cent in 2009-10, partially owing to pay-revision of government employees.

Contribution of private consumption to GDP has come down to 36 per cent in the current year from a high of 78.2 per cent in 2008-09, and 51 to 58 per cent during the preceding three years. This should ring alarm bells as contribution of government spending to GDP has been constant at 10 to 11 per cent during the past seven years.

People's capacity to spend has taken a terrible hit. Private consumption as per government estimates continues to decline from 8.3 per cent in 2007-08 to 5.4 per cent in 2008-09 and a dismal 2.7 per cent in 2009-10. The expenses have gone below even the 2006-07 level of 3.8 per cent.

It simply means people are unable to spend more as commodities and minor luxuries are going beyond their means. Last year people spent almost nothing on clothing and footwear and spiraling prices drastically brought down their expenses on food, beverages, and tobacco.

Spending on clothing and footwear was almost nil at minus 0.6 per cent in 2008-09. It was a high of 24 per cent in 2005-06, 23 per cent the next year, came down to 8 per cent in 2007-08. The trend coincides with the inflationary figures and rising loss of jobs. No wonder this must be reflecting on the turnover and profits of these two industries, which symbolize growth. The two industries employ, both direct and indirect, the highest number of people with an average of 8 per cent share. As inflation gallops the health of these two industries may further get affected.

That people have less capacity to spend is also testified by fewer expenses on recreation, education and cultural services. They have spent only 5 per cent of their income in 2008-09 against 7 to 13.2 per cent in the preceding years. Obviously, the people are constricted on spending on minor luxuries, if it can be called so, not only because they have to shell out more for food but also for commuting. Expenses on the latter have increased to 12.3 per cent now from 5 per cent in 2005-06. This signifies that transport fare has been increasing primarily because of higher fuel prices.

Another area that has taken a hit is furniture and furnishings.
Expenditure on furnishings is characterised as an improvement in lifestyle pattern.
However, this has apparently been affected with private expenditure on it coming down from 15.9 per cent in 2006-07, to 14.6 per cent the next year to a mere 3.7 per cent in 2008-09.
It signifies that the middle class, who is supposed to be the engine of growth, is lacking in capacity.

The expenditure on medical care and health services has suddenly increased in 2008-09 to 8.1 per cent from 2.5 to 5.8 per cent in the preceding years. The figure coincides with higher job losses and consequent possibility of less capacity to afford for nutritional food on the one hand and higher physician's fee and medicine costs on the other. The share of expenditure on food items has been gradually declining over the years. It was 35 per cent in 2008-09 as against 39.6 per cent in 2004-05.

Indeed, this raises a fundamental question-whether the government is justified in deciding to spend 25 per cent less on monitoring of food, civil supplies and PDS.
Besides, it exemplifies that the government has a far less political will to tackle the serious food inflationary situation, which is hovering between 17 and 20 per cent.

While the government allocated Rs 7.2 crore in 2009-10 for the Ministry of Consumer Affairs, it spent only Rs 2.83 crore suggesting it had not taken much initiative to ensure that the commodity prices remained under check. Overall, for monitoring and research in food grains, management and PDS the allocation was Rs 40.40 crore, whereas the expenditure was a mere Rs 14.6 crore.

For the year 2010-11, the allocation has been slashed to Rs 29.69 crore under these heads. This is surprising particularly in view of the importance laid by the government on strengthening of the PDS.
Additionally, no one in the government is denying that the price situation would worsen in the days to come.

This is alarming as the Economic Affairs Department of the Union government virtually contradicts the growth projection made in the budget. The department says that there are no major changes in the overall growth rate of GDP at constant 2004-05 prices, except in 2007-08, where it has been revised to 9.2 per cent from 9 per cent.
Interestingly, this is a sober way of saying that in real terms the GDP is not growing.

The department has also expressed concern over the decline of share in agriculture to 15.9 per cent from 17.4 per cent and manufacturing to 9.9 per cent from 10.9 per cent. In short, other than presenting a contradiction it also smacks of a grim economic scenario.

The budget is an indicator of the government's unwillingness to empower the private consumer. The imposition of service tax on goods transport ­ road, rail and air ­ would only make life difficult.
Truckers have jacked up rentals by 6 to 8 per cent owing to higher diesel prices and the service tax on goods. Railways and air bookings too would be expensive by 10 per cent. Simplified, it would further cut down private expenditure and hit growth prospects.

In Paralytic Mode

Apathetic govt is responsible for the employees' strike

WITH employees on a five day strike, the functioning of government offices and institutions is virtually affected, the worst sectors being the most essential health services and the education sector. It would however be an oversimplification of things to blame the restless employees for the agitation in the face of an irresponsive government that pays little or no heed to their demands and grievances. The employees have been agitating since a couple of months for redressal of their long pending problems but it apparently seems that their voices are falling on deaf ears, even though they have been giving repeated reminders to the state government about their long pending demands. However, there have been no serious attempts to open up negotiation channels with the employees from the lower rung of the state administrative hierarchy. For almost a year now, despite lip assurances, the government has been unable to heed the demand for salaries as per the sixth pay commission, which is a justified demand. The simple assertion of the state reeling under financial crisis holds little logic, especially when the government feels unconstrained by this reality while going ahead with princely hike in salaries and perks for ministers and legislators. If the state has money enough to go in for a three-fold hike for politicians or for hikes in salaries for bureaucrats, such logics appear flimsy and hollow. The huge fleet of the government employees at the lower and middle rung, who actually need immediate relief, continue to reel in frustration and deprivation in the face of the rising price index. However, instead of compassionately addressing their grievances, the blind men in their ivory towers have decided to adopt a confrontationist attitude with the employees. The recent spate of strikes and incidents of agitating employees being met with brutal police action is a clear indicator. The government is totally oblivious to the growing unrest of the employees that has been gradually building up for sometime and equally insensitive to the fact that such prolonged apathy towards a major section of the society can have dangerous repercussions. Not only does it impact the working in the state administration in the long run, frequent strikes like the five day strike that began on Tuesday also create inconvenience for the masses, paralysing every government department including the health sector. The onus of this unfortunate situation lies on the government which is totally unsympathetic, rather apathetic. But is the government, that took few seconds to hike up salaries of legislators by a huge margin, really watching or listening?

Stop witch-hunting

Indiscriminate arrests of innocent youth, political activists by misusing PSA

REGRETTABLY, the State authorities are again engaged in a dangerous game of creating fear psychosis by exaggerating the incidence of infiltration and militancy-related violence to justify the use of strong-arm methods to silence every voice of dissent and suppress the genuine political urges and aspirations of the people. Instead of restraining the trigger-happy police and other security forces from using brutal force to deal with the popular unrest and protest demonstrations, the authorities have embarked upon a course of witch-hunting. The indiscriminate arrests of innocent youth, political activists and others opposed to the ruling establishment under the infamous Public Safety Act will only further vitiate the atmosphere. It appears that abandoning the healing touch policy to heal the wounds caused by years of repression those at the helm have again opted for strong-arm policy to suppress the voice of the people, which in the recent past had proved counter-productive.
Instead of bridging the gulf, such methods will only result in further alienation of the people.
To create a fear psychosis and justifying the use of brutal force the State authorities have embarked on the course of witch-hunting by blowing a few incidents of stone-pelting, provoked by the blanket ban on protest demonstrations and indiscriminate firing and teargassing by the security paraphernalia, out of proportion.
Instead of putting an end to grave human rights abuses including the death of innocent youth and taking action against the culprits in the security forces, the PSA is being blatantly misused to resort to indiscriminate arrests. According to the State police chief Kuldeep Khoda as many as 25 persons have already been booked under the PSA while "substantive action of law" has been taken against 419 others including some political activists and businessmen in connection with the incidents of stone-pelting in the Kashmir valley. According to the police chief 700 to 800 "stone pelters" have been identified and there was a move even to haul up some businessmen and other "supporters and financiers" of the stone-pelters, alleging that all of them were "lending direct or indirect" support to the terrorists by diverting attention of the security forces and the police". Khoda's revelation and threats follow the chief minister's statement that his government intended to "deal with the stone-pelters sternly".
The police inefficiency in the State is too well-known and in almost all cases of strikes by the militants it has always been caught unaware, exposing the incompetence of its intelligence network. How is it possible for such a force to identify a large number of alleged stone-pelters from among the mob of thousands ? Undeniably, it is a clear case of finding scapegoat to victimize the opponents of the ruling establishment and resorting to a kind of witch-hunting.
These are clear designs of stifling the voice of dissent by using undemocratic means. On the one hand the chief minister has been talking of dialogue and a policy of conciliation to put an end to years of confrontation, which have brought only miseries to the people, and on the other his government backed by the lawless state police is sparing no effort to perpetuate the climate of confrontation.
Already a large number of political leaders and activists have been detained under the draconian laws. In pursuance of the policy of victimization, they have been shifted to jails outside the valley and even the court orders for their release have been defied. The State government has even backed out from its commitment on the question of repealing the draconian Armed Forces Special Powers Act (AFSPA), reducing the level of deployment of the troops from the civilian areas and releasing the political prisoners languishing in jails for years. The police chief has cheeks to categorically state that the deployment of troops cannot be reduced, clearly a matter to be dealt with by the political executive. He even threatens the political adversaries of the ruling coalition of stringent action including arrests under PSA and is creating a kind of fear psychosis to justify repressive measures, which have proved counter-productive in the past and their result can be no different now.

Facilitate intra J&K civil society conference: ANC

Emphasizing the need for continuation of a fruitful dialogue process between India and Pakistan, Muzaffar Shah, Senior Vice President of J&K Awami National Conference (ANC) today urged the governments of India and Pakistan to facilitate the Intra J&K Civil Society Conference to be held at Jammu, Muzzafarabad , Gilgit, Leh and Srinagar.
These civil society debates have the potential of forwarding a practical and a feasible role map for a peaceful solution of the Kashmir Problem acceptable to all, he said. A delegation drawn from a three regions of the state would be visiting Islamabad and Muzafarabad soon in this regard.

In a statement issued today it was mentioned that while addressing a public function organized by ANC, district Samba he welcomed whole heartedly the passage of the women's reservation Bill and urged the state Government to ensure its speedy implementation. J&K should become a role model in the entire country and ensure representation of women and their upliftment in all walks of the life.

Gulam Wani former MLA and Senior ANC leader reminded the government of its failure on various fronts, particularly on account of employees strike which has crippled the functioning of major institutions of the state and gross abuse of the BPL and various other central government sponsored schemes in the state. Another senior leader of the Party, A. G Nasecm, former MLA & Zonal President, Central Kashmir, accused the legislators of turning the Assembly House into a mud flinging platform with no regard left for the aspirations of the people thcy claim to represent.

Other party leaders and functionaries who were present on the occasion included Provincial President Jammu Sardar Gyan Singh, Vice Province President Thakur Randhir Singh, Distt.
President Samba Sansar Chand, S.A.H Rafique , Master Madan Lai , Dharmo Devi, Manilla wing Distt President Samba & Baktawar Singh Distt. President Kathua.

Some persons from district Samba who joined ANC on this occasion were Sansar Chand Kangotra, Madan Lai, Pardeep Kumar, Arjun Dogra, Kuldeep Raj Kohli, Raj Kumar, Seema Devi, Ashu Devi, Madhu Bala, Jai Singh, Som Nath Dogra, Ex Su. Jeet Raj, Pushpa Devi, Laxmi Devi, Mani Dev.

Bhim urges India, Pak to resolve LoC


Chairman, J&K National Panthers Party urged India and Pakistan to fix the real agenda vis-à-vis Jammu and Kashmir i.e. LoC which deserves immediate resolution. He said that the time has come after the lapse of half a century that issue of LoC is settled one for all. In the meantime, he demanded that the members of the broken families of J&K and POK should be allowed to cross the present LoC with an ordinary passport.
Addressing a workers convention at District Headquarters Ramban today, Prof. Bhim Singh strongly criticised the State government of NC and Congress for the death of a baby in the womb inside the hospital Ramban only because there was no gynecologist in the District Hospital.
He said that when a local pregnant woman came to the hospital at 4.00 p.m., a lady doctor checked her blood-pressure, fixed a dip and left. She never returned to attend to the patient who gave birth to a dead baby. Hundreds of people have been protesting to demand action against the doctors.

Prof. Bhim Singh appreciated the decision of the local District Magistrate who ordered a magisterial enquiry and also recommended appropriate action against the erring doctors.

He was accompanied by the State President, Balwant Singh Mankotia, MLA and Syed Rafiq Shah, MLA and several others.

Mankotia also appointed an ad-hoc committee to complete the membership campaign in the District.

At last Prof. Bhim Singh announced District Panthers Committee Ramban, Neelam Kumar Langa (Convener), Sh.
Surag Singh (vice Convenor), Amarjit Singh (Gen. Sect.), Mangal Singh Prehar (Block President), Mangal Singh Katoch (Distt. President PSU), Sh. Shakil Ahmed (Block Gen. Sect.), Jalani Ahmed Mir (member), Tanvir Ahmed (Member), Kulbir Singh (Member), Sachin verma (member).

Women's Bill: J&K govt in no hurry - By Sana Altaf

The state government may be in no hurry to introduce a bill giving one third reservation to the women in state assembly constituencies. A similar constitutional amendment bill (women's reservation bill), ensuring one third reservation to women in Lok Sabha and assemblies on rotational basis was passed in the Rajya Sabha yesterday.
Talking to Kashmir Times law and parliamentary affairs minister, Ali Mohammad Sagar said the state government does not yet have any proposal to move such a bill in the legislature. "The passing of the bill in Rajya Sabha yesterday is a welcome step and will have a positive impact on the status of women in the state," said Sagar.

When asked about the government's intention of taking up the bill in the legislature he said, "As of now there is no such proposal; the bill might be introduced in the legislature but this has to be decided by the Chief Minister."

Peoples Democratic Party (PDP) also welcomed the bill and expressed the need of introducing the bill in legislature. While reiterating his party's stand for empowering women, spokesperson PDP, Nayeem Akhtar said, "It is a very good step taken by the centre and would definitely have good impact on the women of the state. Its immediate impact would be the allotment of two seats to women out of six from the state in Lok Sabha elections."

He added that though his party has already taken steps in recruiting women at local level governing bodies like Panchayat, "But it should be done at broader level

which would first require amendments and debates before being taken to point of decisions. It should be considered."
Since Jammu and Kashmir enjoys special constitutional status under Article 370, a bill passed by the parliament cannot be extended and implemented in the state before being passed in the state legislature.

Describing the participation of women vital in the country's decision making, Communist party on India (M) state secretary, Mohammad Yousuf Tarigami said that such laws are much needed in Kashmir where women have been victimized and isolated.

"It is a land mark development to give such reservation to women. It will go a long way in empowering women of country and state as well," Tarigami said.

He added that women should be given equal participation in every sphere to enable them to work at par with men.

"It is very important that women should have a say in decision making. It is not an obligation or a favour on women but a genuine decision," added Tarigami.

Pradesh Congress Committee has also welcomed the bill, terming it as a dream realised.

"It was Rajiv Gandhi's dream to empower women and it has been fulfilled now. It will encourage women of Kashmir and drive them to politics which for sure they can handle successfully," stated Vice President PCC, Abdul Gani Vakil.

Regarding the extension of the bill to the legislature he opined, "It should be implemented and introduced in the state so that the condition of women in our state is improved. Women are capable to stand strong in every field, so why not in the politics."

He, however, said that there is no decision has been so far taken as to when the initiative would be taken. "It would be debated and after consensus from all parties would become a law. And I am sure no party would oppose it in legislature."

Pertinently, the Bill seeks to reserve a third of the seats of the Lok Sabha and state assemblies for 15 years on a rotational basis. It was first introduced in 1996, but it took 14 years for another version of it to be put to vote. It was opposed by the Samajwadi Party, Rashtriya Janata Dal and Lok Janshakti Party on the grounds that the bill includes no quota for Dalit women and Muslim women.

`Give jobs to end stone pelting'

Echoing Chief Minister Omar Abdullah's apprehensions, Grand Mufti Mufti Basheeruddin here on Wednesday said stone throwers in old Srinagar and other towns were being paid for exhibiting their ire.
Addressing a press conference after meeting Home Minister P.
Chidambaram, the Mufti asked the government to `nip the evil in the bud' by providing jobs to these youth.
He said the stone pelting had taken a form of alternative employment and the government needed to attend to this problem. He said the Home Minister assured him that 5000 jobs would be created in Kashmir during 2010.
"They (stone throwers) are paid for what they are doing. What do you do about that? Give Kashmiri youth jobs so that they don't look for unlawful ways of earning," he said.

Mufti, who is here for past few days, however, could not get an appointment with Prime Minister Dr. Manmohan Singh. After repeated tries, he was told to meet Prithviraj Chuhan, Congress party's incharge of Jammu and Kashmir and Minister of State in Prime Minister's Office (PMO).

There was a drama ahead of Grand Mufti's press conference. At the last minute authorites

at Jammu and Kashmir Guest House at Chankyapuri cancelled his booking for the hall and arrangements for hightea for journalists. They told him they have got a message to cancel this booking as it was a political press conference.
He, later addressed the press in his own room. Much drama followed as many newsmen had arrived believing it to be a press confenrece of former chief minister Mufti Mohammad Sayeed. Even at the end of press conference, they were enquiring about the Grand Mufti and looking for the PDP patron.
Terming stone pelting as a form of protest un-Islamic, the Grand Mufti said such violent practices were against the basic tenets of the religion whose essence is `peace and brotherhood'.

"Islam strongly prohibits any means of violence. The stone pelting practice is surely un-Islamic. It causes inconvenience to people and propels more violence," the Grand Mufti said.

Asked if he had issued a fatwa against stone pelting, which some separatists justify as a form of resistance, the Mufti said: "What I am saying is not my personal opinion.
I, as a Grand Mufti, am making it clear. When Islam doesn't advocate or justify any violence, how can you justify stone pelting? I am saying this in the light of Hadith (sayings of the Prophet) and the holy Quran."

"Islam is the religion of peace and brotherhood," he added, strongly condemning the practice which over the past two years has become a norm in the troubled state, especially on Fridays.