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Monday, October 10, 2016

Economic and Political Weekly: Table of Contents


Vol. 51, Issue No. 41, 08 Oct, 2016

From plate to plough: Rural change challenge

Inclusive agricultural growth is key to removing poverty by 2030.

Eradicating poverty from the planet was the top-most target in a set of 17 goals adopted by the UN last September as a part of its sustainable development agenda. Nations across the globe, including India, endorsed it. The strategies to achieve this goal have been left open to countries. In this context, the Rural Development Report (RDR) 2016 of the International Fund for Agricultural Development is timely.
The RDR’s Asia and Pacific Region (APR) release will be in India on October 17. The report is among the more comprehensive documents that try to understand the role of rural transformation in eradicating poverty and securing food and nutritional security within the context of economy-wide structural transformation in several countries. It is based on an empirical analysis of 60 countries drawn from various regions.
Nine are from the APR. Comprising Bangladesh, Cambodia, China, India, Indonesia, Lao People’s Democratic Republic, Pakistan, Philippines and Vietnam, the region is the most populous and has the largest number of poor on this planet. There are 16 countries from Latin America and the Caribbean; seven from the Near East, North Africa, Europe and Central Asia; 15 from East and Southern Africa; and 13 from West and Central Africa.
RDR 2016’s first lesson pertains to the conceptual framework of development. It notes that economies of almost all the 60 countries are undergoing some sort of structural transformation — some are moving fast, many are moving at a moderate pace and some are going very slow. The transformation is reflected in rising productivities in agriculture and the urban economy as well as in the changing character of the economy — the preponderance of agriculture making way for the dominance of industry and services, greater integration with global trade and investments and growing urbanisation.
RDR’s second lesson is that rural areas cannot remain insulated from this economy-wide change. They are also transformed with rising agricultural productivity, increasing commercialisation and marketable surpluses, diversification to high-value agriculture and off-farm employment through the development of agri-value chains.
The third, and the most important lesson, especially for policymakers, is that rural transformation on its own may not be effective in reducing poverty unless it is inclusive. This challenge is at the heart of the report. Agricultural development is a key element of such inclusiveness since a majority of the working force in most countries at low to moderate levels of rural transformation is still engaged in agriculture.
What can India learn from this, given that agriculture still engages half of its workforce, and about 85 per cent of its farms are small and marginal (less than two hectares)? Compared to China and Vietnam, which have experienced fast structural and rural transformation, India’s story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988-2014, compared to China and Vietnam. The RDR 2016 tells us that India’s poverty reduction was slow during 1988-2005, but during 2005-12, it accelerated dramatically — almost three times faster than during the earlier period.
What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50 per cent) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50 per cent. As a result, agri-GDP growth touched 4.1per cent during 2007-12, as against 2.4 per cent during 2002-07. The net surplus of agri-trade touched $25 billion in 2013-14; real farm wages rose by seven per cent per annum. All these led to an unprecedented fall in poverty. A good price incentive can thus trigger investments in agriculture, leading to productivity gains, increases in real farm wages and fall in poverty.
To make the rural transformation more inclusive, India will have to focus on raising productivity in agriculture through higher R&D (seeds) and irrigation and build value chains for high value agri-products like livestock and horticulture, which account for more than half the value of agriculture (cereals account for less than 20 per cent). In the building of these value chains by mainstream small holders — say, through farmer producer companies — India can create large off-farm rural employment and augment incomes of farmers and others living in rural areas. This would require large investments both by the private and public sector. If India can do all this efficiently and through a participatory mode, it can certainly hope to eliminate not only poverty but also malnutrition by 2030. For more details on RDR 2016, stay tuned till October 17.
The writer is Infosys Chair Professor for Agriculture at ICRIER
Source: Indian Express, 10-10-2016

Education is key to reducing child and maternal mortality rates

Last week, The Lancet released the Global Burden of Disease 2015 study. On the global front, there is good news: Between 1990 and 2015, deaths of children under five have gone down by half. But for India, the news was sombre: India has had the highest number of such deaths at 1.3 million in 2015. In first-ever estimates of the number of stillbirths, the study counted 2.1 million such instances in 2015. The number of stillbirths in India was estimated at 0.61 million. Of 195 countries studied, 122 countries have met the Sustainable Development Goal (SDG) target to reduce the number of women dying from pregnancy-related causes to less than 70 for every 100,000 live births by 2030.

The study also indicated why India is still struggling to tackle such deaths, and the reason is not new: Poor last-mile delivery of health programmes such as the Janani Suraksha Yojana (JSY) conditional cash transfer programme. While the JSY has been successful at increasing reproductive health-care services, it has not been as effective at reaching poor rural women, the socio-demographic group that is already at highest risk of adverse pregnancy outcomes, the study said. Last year, a Hindustan Times report said that many hospitals even at the district level failed to meet the basic requirement of the programme such as free transport, food, medicines, check-ups and other facilities for pregnant women and even starting awareness programmes for the population they service.

While investing in health services to improve its record, India must not forget the important link that exists between meeting the challenge of maternal/child health and education. According to the United Nations, improving access to education is an essential building-block for increasing the number of trained health workers, particularly at the community level, and it also helps build the kind of behaviours and habits that have a positive impact on an individual’s health. Children who complete basic education eventually become parents who are more capable of providing quality care for their own children and who make better use of health and other social services available to them. Evidence indicates that when girls with a basic education reach adulthood, they are more likely than those without an education to manage the size of their families according to their capacities, and are more likely to provide better care for their children and send them to school.

Source: Hindustan Times, 9-10-2016
Drinking too much water can kill you
Melbourne:
PTI


Study Says `8 Glasses A Day' Mantra A Myth, One Should Drink By Thirst
Drinking too much water may cause potentially fatal water intoxication, claims a new study which has, for the first time, identified the mechanism that regulates fluid intake in the human body and stops us from over-drinking.The study, led by researchers from Monash University in Australia, challenges the popular idea that we should drink eight glasses of water a day for good health.
It showed that a `swallowing inhibition' is activated by the brain after excess liquid is consumed, helping maintain tightly calibrated volumes of water in the body .
“If we just do what our body demands us to we will probably get it right -just drink according to thirst rather than an elaborate schedule,“ said Michael Farrell, associate professor at Monash.
The researchers asked participants to rate the amount of effort required to swallow water under two conditions; following exercise, when they were thirsty , and after they were persuaded to drink an excess amount of water.
The results showed a three-fold increase in effort when over-drinking. “Here, for the first time, we found effortful swallowing after drinking excess water, which meant they (participants) were having to overcome some sort of resistance.This was compatible with our notion that the swallowing reflex becomes inhibited once enough wa ter has been drunk,“ Farrell said.
Researchers used functional magnetic resonance imaging (fMRI) to measure activity in various parts of the brain, focusing on the brief period just before swallowing. The fMRI showed the right prefrontal areas of the brain were much more active when participants were trying to swallow with effort, suggesting that the frontal cortex steps in to override the swallowing inhibition. Drinking too much water puts the body in danger of water intoxication or hyponatremia, when vital levels of sodium in the blood become abnormally low, potentially causing symptoms ranging from lethargy and nausea to convulsions and coma.

Source: Times of India, 10-10-2016

Saturday, October 08, 2016

THESES OF THE MONTH
SOCIAL SCIENCES
A list of doctoral theses accepted by Indian Universities
(Notifications received in AIU during the month of August-Sep, 2016)
Business Administration
1.     AnandanVineetaA study of consumer behaviour towards malls. (Prof. A Kumar), Department of Business Administration, MaharajaKrishnakumarsinghji Bhavnagar University, Bhavnagar.
2.     DabhiBhavna BhupatsinhA study on impact of mergers and acquisitions on financial performance of selected pharmaceutical companies in India(Prof. P K Rathod), Department of Business Studies, Sardar Patel University, Gujarat.
3.     PichitTangphanitwongHuman Resource Management: A study of organizational culture and organizational effectiveness of selected Thai private University faculty(Dr. D S Mistry), Department of Business Studies, Sardar Patel University, Gujarat.
4.     RavalNimesh PriyakantA comparative study on corporate governance practices of selected B S E listed companies in India(Dr.Ajayraj M Vyas), Department of Business Studies, Sardar Patel University, Gujarat.
5.     SanyalSamindranathThe strategic role of branding in pharmaceutical marketing in India: A study on the marketing of generic drugs.(Prof. Saroj Kumar Datta and Prof. Asok Kumar Banerjee), Department of Business Management, University of Calcutta, Kolkata.
Commerce
1.     Anish Kumar. Role of VAT in Indian tax system: An analytical study(Dr. Suresh Kumar), Department of Commerce, Bhupendra NarayanMandal University, Madhepura.
2.     Buddha, Tejal DineshbhaiA comparative study of financial performance on selected nationalized bank of India(Dr. C L Usadadiya), Department of Commerce, Saurashtra University, Rajkot.
3.     ChauhanKalpesh KeshubhaiA study of operational performance of selected private sector insurance companies in India(Dr. S JParmar), Department of Commerce, Saurashtra University, Rajkot.
4.     DhamsaniyaNitinkumar JerajbhaiA study on productivity, profitability and liquidity of selected district co-operative bank of Gujarat State(Dr V K Patel), Department of Commerce, Saurashtra University, Rajkot.
5.     DuttaRintiGreen marketing: A study of natural silk and organic tea of Golaghat and Jorhat Districts of Assam(Prof.G P Prasain and Prof. Nikhil Bhusan Dey), Department of Commerce, Dibrugarh University, Dibrugarh.
6.     KetavathSakruCustomer satisfaction: A comparative study of mobile phone services(Dr. Y Krishna Mohan Naidu), Department of Commerce, Osmania University, Hyderabad.
7.     LoriyaChirag ThakarshibhaiA study of financial performance of selected private sector and public sector banks of India(Dr. R BBhatasna), Department of Commerce, Saurashtra University, Rajkot.
8.     Narsaiah, N. Activity based costing in Information Technology industry: A study of select companies(Prof. T Satyanarayana Chary), Department of Commerce, Osmania University, Hyderabad.
9.     PurohitKrunal JagdishchandraAn empirical study of relationship between performance of selected mutual funds and stock markets in India(Dr. A K Chakrawal), Department of Commerce, Saurashtra University, Rajkot.
10.  RatnotarAmitkumar NatvarbhaiRole of Foreign Institutional Investors (FII's) in Indian stock market. (Dr. K S Dave), Department of Commerce, Saurashtra University, Rajkot.
11.  SakariaSimaben VasantbhaiApplication of Altman Model to review the financial status of major pharmaceutical companies in India.(Dr.Ramesh A Dangar), Department of Commerce, Saurashtra University, Rajkot.
12.  ShettyMallika B. Brand loyalty: a study of select newspapers(Prof. S V Satyanarayana), Department of Commerce, Osmania University, Hyderabad.
13.  SoyeliyaUshaben LakhamanbhaiA study of job satisfaction of employee of small and medium industries having Human Resource Department and not having Human Resource Department (Saurashtra Region). (Dr. B L Sardhara), Department of Commerce, SaurashtraUniversity, Rajkot.
14.  ThakerJayen KumudchandraA study of attributes of Indian entrepreneurs: A case study of Saurashtra Region(Dr. H M Chandarana), Department of Commerce, Saurashtra University, Rajkot.
Defence Studies
1.     Bajrang Kumar. Role of armed forces in India's security: An analytical study(Dr. R S Siwach), Department of Defence and Strategic Studies, Maharshi Dayanand University, Rohtak.
Economics
1.     Das, MousumiA new institutional economic approach for avoidance of risk in the form of displacement through development: A case study of Western Orissa industrialisation(Prof. S S Rath), Department of Economics, Sambalpur University, Sambalpur.
2.     Micheal Raj, C. A study of Kolping Project in rural areas of Dindigul District of Tamilndu(Dr. P Anandharajakumar), Department of Rural Development, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
3.     Muthuraman, L. Participatory development initiatives for dalit solid waste management by the residents of Chinnalapatti TownPanchyat in Dindigul District, Tamil Nadu(Dr. S Ramaswamy), Department of Economics, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
4.     Nagalakshmi, N. Impact of tribal development programmes on economic empowerment of tribal women in Western Ghats of Tamil Nadu(Dr. M Soundarapandian), Department of Rural Industries and Management, Gandhigram Rural Institute-Deemed University, DistrictDindigul, Tamil Nadu.
5.     Panneerselvam, R G. Designing new compound fabric structures and developing their weaving techniques(Dr. L Radhakrishnan and Dr. H L Vijayakumar), Department of Rural Industries and Management, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
6.     SundaramGunasekaranPlanning and strategies of watershed management projects: An analytical study in Dindigul District,Tamilnadu(Dr. N Lalitha), Department of Rural Development, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
7.     Surulivel, L. Food security among socially excluded communities in rural Tamil Nadu: An empirical study(Dr. S Ramaswamy), Department of Economics, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
8.     ThankiNehaben DilipbhaiImpact of watershed development programme on agriculture development: In context of PorbandarDistrict(Dr. Ashaben L Patel), Department of Economics, Saurashtra University, Rajkot.
9.     Thomas, P Mini. Service sector and economic growth in India with special reference to International Trade in services: An empirical study(Dr. M R Narayana), Department of Economics, University of Mysore, Mysore.
10.  Velmurugan, P. Impact of global economic crisis on micro, small and medium enterprises in Coimbatore District(Dr. MSoundarapandian), Department of Rural Industries and Management, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
Education
1.     BarotBhumikabahen JagdishbhaiSchool engagement, self esteem and well being during transition from primary to secondary school.(Dr. K S Likhia), P G Department of Education, Sardar Patel University, Gujarat.
2.     BishtDeepaDevelopment and validation of multimedia instructional package in Life Science for students of X standard. (Dr. IndiraDhull), Department of Education, Maharshi Dayanand University, Rohtak.
3.     ChoudharyMeghrajA study of risk acceptance, women equality tendency and professional interest in girls of high pr secondary level of rural and urban area. (Dr. Saroj Sharma), Department of Education, IASE Deemed University, Sardarshahr, Rajasthan.
4.     ChundawatDeepaAnalytical study of moral education in Indian education system. (Dr. Sarita Sharma), Department of Education, IASE Deemed University, Sardarshahr, Rajasthan.
5.     Durgesham, G. A study on the English language learning strategies used by the secondary school students. (Dr. K KatyayaniRatnamala), Department of Education, Osmania University, Hyderabad.
6.     Jagan, G. A study on job satisfaction of special education teachers of Andhra Pradesh in relation to occupational stress and adjustment. (Dr. B Krishna Reddy), Department of Education, Osmania University, Hyderabad.
7.     Krishnamoorthi, A. Home environment, mental health and academic achievement of high school students in Dindigul District(Dr. RSubburaman), Department of Education, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
8.     Mukesh Devi. A study of emotional intelligence, general well being and academic achievement among social skill deficient and non deficient school students. (Dr. M S Chahar), Department of Education, Maharshi Dayanand University, Rohtak.
9.     MundSujataA study of the constraints of school education among tribal girls of Kalahandi District(Dr. U P Khadanga), Department of Education, Sambalpur University, Sambalpur.
10.  Patel, Swetang MaheshbhaiEffectiveness of constructivist approach in teaching science at primary level. (Dr. K S Likhia), P G Department of Education, Sardar Patel University, Gujarat.
11.   Promila, Devi. Effectiveness of co-operative learning on students achievement and their self concept(Dr. Sushila Sangwan), Department of Education, Maharshi Dayanand University, Rohtak.
12.  SangeetaInternet usage among senior secondary students in relation to self-regulated learning, social support and alienation. (Dr.Indira Dhull), Department of Education, Maharshi Dayanand University, Rohtak.
13.  SunitaRelationship of parental involvement and emotional competency with academic stress among senior secondary school students. (Dr. M S Chahar), Department of Education, Maharshi Dayanand University, Rohtak.
14.  UpadhyayaAmarCost of secondary teacher education in Assam: A study of the colleges of teacher education under DibrugarhUniversity(Prof. R P Vadhera and Prof.P K Gupta), Department of Education, Dibrugarh University, Dibrugarh.
Home Science
1.     Aruna KumariPravasi Bihari majduroan ke parivar mein failte AIDS ka adhyayan. (Dr. Yog Narayan Singh), Department of Home Science, Bhupendra Narayan Mandal University, Madhepura.
2.     Raj KumariGramin Bharat mein shiksha kee isthithi ka adhyayan. (Dr. Reena Singh), Department of Home Science, Bhupendra NarayanMandal University, Madhepura.
Law
1.     KshamaaThe dispute settlement mechanism under World Trade Organization: A critical study(Dr. Ajay Kumar), Department of Law,Chanakya National Law University, Patna.
2.     PathakKiritkumar MulshankerbhaiRole of Saurashtra University in education and economic development of the students ofSaurashtra Area, with special reference to the act, statutes, ordinance, rules and regulations. (Dr. B G Maniar), Department of Law,Saurashtra University, Rajkot.
Library & Information Science
1.     Jana, SiladityaWorld distribution and content analytic study of certain texts to ascertain authorship and editorial involvement: Case study with writings of J C Bose and P N Bose(Dr. H P Sharma), Department of Library and Information Science, University of Calcutta, Kolkata.
2.     Singh, Krishan Pal. Information service support to the medical institutions of Delhi/NCR region: An evaluated study(Dr. B KChoudhury), Department of Library and Information Science, Sambalpur University, Sambalpur.
Management
1.     Anuradha, R. Women empowerment through micro-finance: A study of SHG members financial management skills in PerambalurDistrict in Tamil Nadu(Prof. E Nixon Singh), Department of Management, Mizoram University, Aizawl.
2.     Dimple. Self-efficacy and proactive behaviour of prospective managers towards career management. (Dr. Satyawan Baroda), Department of Management, Maharshi Dayanand University, Rohtak.
3.     Joshi, Deepal Jay. A study of trends in online buying (B2C) in selected cities of Gujarat State. (Dr. Sarla Achuthan), Department of Management, Gujarat University, Ahmedabad.
4.     Magara, Robinson. Management education in India and Kenya: A comparative study(Dr. R Mani and Dr. K Raja Alias Pranmalai), Department of Management, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
5.     RautRajdeep Kumar. Study on key determinants of investment decision for small investors in Indian capital market(Dr. Niladri Das), Department of Management Studies, Indian School of Mines University, Dhanbad.
6.     Thanalakshmi, S. Entrepreneurial practices of turmeric growers and processers: A study in Erode District, Tamilnadu(Dr. B Subburaj), Department of Cooperation, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
7.     TuduPreshita NehaPsychosocial dimensions of stress management: A study of service industry with special reference to banking sector(Prof. Pramod Pathak), Department of Management Studies, Indian School of Mines University, Dhanbad.
8.     Vinotha, R. Impact of HR practices on quality work life among the employees of Gandhian organisations in Tamil Nadu. (Dr. SRadhakrishnan), Department of Gandhian Thought and Peace Science, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
9.     YadavRambalakAttitude and purchase intention of buying green products: A study of Indian consumers(Prof. Govind SwaroopPathak), Department of Management Studies, Indian School of Mines University, Dhanbad.
Physical Education & Sports
1.     GurjarMukesh Singh. Parental attitude towards female participation in Hockey of Gujarat State. (Prof. B L  Nagar), P G Department of Education, Sardar Patel University, Gujarat.
Political Science
1.     DagarPunamMahilaoan ke vishey mein Gandhivadi drishtikon ke alochnatamak mulyankan. (Prof. A S Narang), Department of Political Science, Indira Gandhi National Open University, New Delhi.
2.     Das, Hima HazarikaDynamics of Muslim immigration into Assam: Socio-political study(Prof. Arun Kanti Jana and Prof.RanjuDhamala), Department of Political Science, Dibrugarh University, Dibrugarh.
3.     Dimitrov, B E George. Status of dalit women presidents of village panchayats in Dindigul District, Tamil Nadu(Dr. V Ragupathy), Department of Political Science & Development Administration, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
4.     Menaka, S. Panchayat Raj Institutions and empowerment of dalit women in Dindigul District(Dr. M Hilaria Souundari), Department of Applied Research, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
5.     NishaHaryana mein Sansadiya chunav: 1999 evam 2004 ka tulnatamak adhyayan(Dr. S S Chahar), Department of Political Science,Maharshi Dayanand University, Rohtak.
6.     Singh, Anand PratapSino-India relations: With special reference to border disputes (Arunachal Pradesh & Axsai Chin)(Prof. RipuSudan Singh), Department of Political Science, Babasaheb Bhim Rao Ambedkar University, Lucknow.
7.     Singh, Ranjit Kumar. India and Nepal: Love-hate relationship since 2006(Dr. Sushil Kumar Singh), Department of Political Science,Bhupendra Narayan Mandal University, Madhepura.
Psychology
1.     Alex, Rachel JyothyPsychosocial correlates of social anxiety(Dr. H Sylaja), Department of Psychology, Sree Sankaracharya University of Sanskrit, Kalady, District Ernakulam.
2.     Baku, Devayatkumar DevshibhaiA study of mental health, adjustment and social support among the parents of thalassemic and normal children of Saurashtra(Dr. R K Chocha), Department of Psychology, Saurashtra University, Rajkot.
3.     BaviskarPravin AmbadasEffect of violent TV serial on aggression, self concept and child parent relationship among adolescents. (Dr.Nisha D Mundada), Department of Psychology, North Maharashtra University, Jalgaon.
4.     Desai, Aditi VikasSpiritual quotient, mood states and psychological well being among adults. (Dr. Pragna J Parikh), Department of Psychology, Gujarat University, Ahmedabad.
5.     JeparMeerakumari GovindbhaiA psychological study of career and family value with reference to home environment and parent child relationship among college girl students(Dr. J A Jarsaniya), Department of Psychology, Saurashtra University, Rajkot.
6.     MirzaGulzar Fatema Mohammad Yusuf. An empirical analysis of health locus of control, coping strategies and general self-efficacy as predictors of quality of life in patients of obstructive sleep apnea(Dr. Kamayani Mathur), Department of Psychology, Gujarat University,Ahmedabad.
7.     PoojaAcross generation study of prosocial behavior and subjective well being. (Dr. Deepti Hooda), Department of Psychology,Maharshi Dayanand University, Rohtak.
8.     Satya PrakashAdjustment of HIV positive in relation to personality and emotional maturity. (Dr. Sunita Malhotra), Department of Psychology, Maharshi Dayanand University, Rohtak.
9.     Sharma, PushpaRole of life skill training on psycho-social competences of teenagers with behavioural difficulties. (Dr. NovrattanSharma), Department of Psychology, Maharshi Dayanand University, Rohtak.
10.  Vikash Kumar. A study of school adjustment of high and low achievers in urban and rural high school students. (Dr. Pushpa Singh), Department of Psychology, Veer Kunwar Singh University, Ara.
Public Administration
1.     AryaRituGair sarkari sangathnaon kee sthaniye swasthey rakh rakhav mein bhumika Haryana aur Delhi ka tulnatamak adhyayan.(Dr. S S Chahar), Department of Public Administration, Maharshi Dayanand University, Rohtak.
Social Work
1.     Varaprasadam, J ArokiarajParticipatory development initiatives for dalit women empowerment in Theni District(Dr. M HilariaSounundari), Department of Applied Research, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.
Sociology
1.     Amit Kumar. Private examination system of higher education in Uttar Pradesh: A study of students socio-economic status, causes and impact in the context of two Universities(Prof. Kameshwar Choudhary), Department of Sociology, Babasaheb Bhim Rao AmbedkarUniversity, Lucknow.
2.     Mohanan, M. A study on the effects of SGSY with special reference to the empowerment of rural women in Tamil Nadu(Dr. NNarayanasamy and Dr. G Mahadevan), Department of Extension Education, Gandhigram Rural Institute-Deemed University, District Dindigul, Tamil Nadu.


Amnesty by another name

The Income Declaration Scheme has garnered only a minuscule amount of black money. The big fish have got away.

The Income Declaration Scheme (IDS) announced in the 2016-17 budget closed on September 30, after remaining open since June 1. The finance ministry has announced that 64,275 people have come forward to declare Rs 65,250 crore of black money. This is the largest amount declared as black money in the history of Indian taxation. Naturally, the government claims this to be a big achievement, more so since the response in the first three months was tepid.
The average amount of black income per declaration is about Rs one crore. This is indeed low when there is daily news about people being caught with hundreds of crores of rupees of black incomes. It is likely that either the big earners of black incomes have not come forward or declared a negligible part of their black money. It is reported that the income tax officers pressurised people under their charge to make declarations in the last three weeks. So, either they coerced the small fries, or the big fellows declared a miniscule amount. Also, many of the black income earners do not pay any tax. So they do not come under any income tax circle and, therefore, would not have been under any pressure.
The last disclosure scheme was announced in 1997 — the Voluntary Disclosure of Income Scheme. Under it Rs 33,000 crore was declared and tax of about Rs 10,000 crore was collected. The 2016 scheme is also a “voluntary” programme, even though it is not called that. The 1997 scheme was called an amnesty scheme because of the low tax that had to be paid. But this time, it is not referred to as an amnesty because a higher rate of tax is being charged. The government had also given an undertaking to the Supreme Court in 1997 that it would not initiate any more amnesty schemes. The reason being that an amnesty scheme is unfair to the honest tax payers while those evading taxation get a concession for declaring their past income.
But the IDS is also an amnesty scheme because the penalty charged under it is less than what was being charged for tax evasion before the scheme was launched. Before June 2016, if a person’s income was found to be black, the penalty was 100 per cent to 300 per cent of the tax evaded. Since the tax rate is 30 per cent, the penalty worked out to 30 per cent to 90 per cent of the income evaded; under the IDS, the penalty is 15 per cent of the income. In this sense, the IDS runs counter to the government’s commitment to the Supreme Court in 1997.The comparison of the 1997 and the 2016 schemes does not show the latter in a favourable light. This author estimates the current size of the black economy at 60 per cent of the GDP; at current prices, it would be Rs 90 lakh crore in 2016-17. Thus, what has been declared is roughly 0.7 per cent of the black income generated this year. The declarations under the 1997 scheme was roughly five per cent of the black income generated that year.From the black incomes generated every year, a part is consumed and the rest saved. Over time, the accumulated savings become much larger than the annual income. For the rich, the savings from incomes are high, so the black wealth accumulated is much larger than their annual black incomes. Data suggests that only a small part of these black savings are declared under the amnesty/declaration schemes. Thus, barely 0.2-0.3 per cent of the black wealth has been declared in the 2016 scheme. The number of declarations in 1997 was over four lakh; now, surprisingly, it is a sixth of this number. The number of businesses, professionals, corrupt officials and politicians has risen over time. So, the number of people with substantial black incomes and wealth should have been several times the number in 1997. Even if it is assumed that the top one per cent of the population generates substantial black incomes, the numbers should have been close to 13 million.
The government has announced that it would not reveal any of the data collected through the scheme to any agency; not even the CAG. This is strange since CAG is a statutory body with powers to audit the accounts of the government. It is the CAG that pointed to the various infirmities in the 1997 scheme. Giving data to the CAG does not violate any confidentiality.
It needs to be assessed whether those declaring their black incomes are doing so correctly. They could be misdeclaring their recently purchased gold as that bought 20 years ago at one tenth the cost and thereby turning 90 per cent of their black wealth into white. Only an assessment by an independent auditor will help unearth such manipulations.
There can be several reasons why the IDS has garnered much less than it should have. If “round tripping” can be done at five per cent to 10 per cent of the amount of the funds, why pay 45 per cent under the IDS? Further, if the government, promises not to resort to vigorous pursuit of businessmen — under “ease of doing business” — they may be under no pressure to come clean. A person who has hoarded black wealth can only be caught in a raid; such a person will not declare black wealth voluntarily unless there is a cost to not declaring. The “success” of the IDS scheme in the last three weeks also suggests that if the income tax department applies pressure, black money can be unearthed. The government seems to be trapped between unearthing black money and not applying pressure on businesses. Why this dilemma?
The writer is a retired professor of economics and author of ‘Indian Economy since Independence: Persisting Colonial Disruption’
Source: Indian Express, 8-10-2016