• Tue. Sep 20th, 2022

Strengthen Finance Commission, Says Lok Satta Founder Jaya Prakash – The New Indian Express

ByChad J. Johnson

Aug 20, 2022

By Express press service

HYDERABAD: Lok Satta Party Founder Dr Jaya Prakash Narayana has suggested strengthening and empowering the Finance Commission of India, making it an independent permanent body with the necessary power and research capacity to reduce the state spending. Narayana was delivering a keynote address at a panel discussion on “Impact of Gifts on State Economy” organized by the Institute of Inclusive Governance Hyderabad (IIGH) at Begumpet Plaza on Saturday. Professors and social scientists from various universities in the state attended the conference.

Narayana said India could replicate something like what was done through the Congressional Budget Office (CBO) established in the United States in the 1970s, the Stability Council in Germany or the Accountability Office budgetary created in the United Kingdom in 2010; so that the debt-to-GDP ratio, budget deficit, revenue gap and other budget parameters can be monitored and reported.

perverse incitement
Referring to the provision of “free electricity” as a perverse incentive given as a “gift” to farmers, he said there was no incentive to save energy through this, and that Irrational investments like the digging of boreholes were made, pushing farmers into deeper debt and suicide.

“If there is no meter to check the energy usage, how would we know where the energy is wasted and how to check it? `1 crore lakh of people’s money is wasted in our country due to this kind of waste every year,’ he pointed out.

“In 1983, the market price of rice was 3.50 ` and it was subsidized by 2 `/kg to 40% of the population. Forty years later, today the market price is £30 for rice and it is offered to 80% of the population for £1 per kg. Even if the delivery is good, have we managed to eradicate poverty?” he wondered.

HYDERABAD: Lok Satta Party Founder Dr Jaya Prakash Narayana has suggested strengthening and empowering the Finance Commission of India, making it an independent permanent body with the necessary power and research capacity to reduce the state spending. Narayana was delivering a keynote address at a panel discussion on “Impact of Gifts on State Economy” organized by the Institute of Inclusive Governance Hyderabad (IIGH) at Begumpet Plaza on Saturday. Professors and social scientists from various universities in the state attended the conference. Narayana said India could replicate something like what was done through the Congressional Budget Office (CBO) established in the United States in the 1970s, the Stability Council in Germany or the Accountability Office budgetary created in the United Kingdom in 2010; so that the debt-to-GDP ratio, budget deficit, revenue gap and other budget parameters can be monitored and reported. Perverse Incentive Referring to the provision of “free electricity” as a perverse incentive given as a “gift” to farmers, he said there was no incentive to save energy through this, and that irrational investments like the digging of boreholes have been made, pushing farmers into more debt and leading to suicides. “If there is no meter to check the energy usage, how would we know where the energy is wasted and how to check it? `1 crore lakh of people’s money is wasted in our country due to this kind of waste every year,’ he pointed out. “In 1983, the market price of rice was 3.50 ` and it was subsidized by 2 `/kg to 40% of the population. Forty years later, today the market price is £30 for rice and it is offered to 80% of the population for £1 per kg. Even if the delivery is good, have we managed to eradicate poverty?” he wondered.