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Showing posts with label editorial with vocor competition exam. Show all posts
Showing posts with label editorial with vocor competition exam. Show all posts

Friday, October 9, 2020

Story: Baby Camel and Mother story 11



A mother and a baby camel were lying around, and fortuitously(suddenly,एकायक) the baby camel asked, “mother, may I ask you some questions? Mother said, “Sure! Why son, is there something bothering you? Baby said, “Why do camels have humps?” Mother said “Well son, we are desert animals, we need the humps to store water and we are known to survive without water”. Baby said, “Okay, then why are our legs protracted(long.लम्बा) and our feet rounded?” Mother said, “Son, obviously they are meant for walking in the desert. You know with these legs I can move around the desert better than anyone does!” Baby said, “Okay, then why are our eyelashes long? Sometimes it bothers my sight”. Mother with hubris(pride,गौरव) said, “My son, those long voluminous(thick,मोटा) eyelashes are your vindicatory(protective,रक्षात्मक) cover. They help to intercede(protect,रक्षा करना) your eyes from the desert sand and wind”.

 Baby after thinking said, “I see. So the hump is to store water when we are in the desert, the legs are for walking through the desert and these eye lashes protect my eyes from the desert then what in god’s name are we doing here in the Zoo!?”

 Moral: deftness(Skills,कौशल), knowledge, abilities and experiences are only germane(useful,सार्थक) if you are at the pertinent(right,सही) place.

click here for story 10

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Friday, October 27, 2017

The Pot of the Wit story 9

Once Emperor Akbar became very angry(indignant,गुस्सा) at his favorite minister Birbal. He asked Birbal to abandon(leave,छोड़ना) the kingdom and go away. Accepting the command of the Emperor, Birbal left the kingdom and started working in a farmer’s farm in an unacquainted(unknown,अनजान) village far away under a different identity.
As months passed, Akbar started to miss Birbal. He was struggling to solve many issues in the empire without Birbal’s advice. He regretted a decision, asking Birbal to leave the empire in anger. So Akbar sent his soldiers to find Birbal, but they failed to find him. No one knew where Birbal was. Akbar finally found a maneuver(trick,युक्ति). He sent a message to the head of every village to send a pot full of the wit to the Emperor. If the pot full of wit can not be sent, fill the pot with diamonds and jewels.
This message also reached Birbal, who lived in one of the villages. The people of the village got together. All started talking about what to do now? The wit is not a thing, which can be filled in the pot. How will we arrange for diamonds and jewels to fill the pot and send to the Emperor? Birbal who was sitting among the villagers said, “Give me the pot, I will fill the wit in one month’s end”. Everyone trusted Birbal and agreed to give him a chance. They still didn’t know his identity.
Birbal took the pot with him and went back to the farm. He had planted watermelons on his farm. He selected a minuscule(small,छोटा) watermelon and without cutting it from the plant, he put that in the pot. He started looking after it by providing water and fertilizer perpetually(regularly,नित्य). Within a few days, the watermelon grew into a pot so much that it was infeasible(impossible,असंभव) to get it out of the pot.
Soon, the watermelon reached to the same size as the pot from inside. Birbal then cut the watermelon from the vine and separated it with the pot. Later, he sent a pot to Emperor Akbar with a message that “Please remove the wit without cutting it from the pot and without breaking the pot”.
Akbar watched the watermelon in the pot and realized that this can only be Birbal’s Work. Akbar himself came to the village, took Birbal back with him.
Moral: Don’t hasten(fast,जल्दी) the decision. Think tenacious(hard,दृढ) to find a solution for the strangest situations.


click here for story 8 
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Saturday, October 14, 2017

The Cracked Pot - story 7

A water bearer in India had two enormous(large,बड़ा) pots, each hung on each end of a pole which he carried across his neck. One of the pots had a crack in it, and while the other pot was quintessential(perfect,उत्तम) and perpetually(always,हमेशा) delivered a full portion of water at the end of the prolonged(long,लंबा) walk from the stream to the master’s house, the cracked pot arrived only half full.
For a full two years, this went on daily, with the bearer delivering only one and a half pots full of water in his master’s house. Of course, the perfect pot was proud of its accomplishments, perfect to the end for which it was made. But the poor cracked pot was ashamed of its own deficiency(imperfection,कमी), and despondent(miserable,दुखी) that it was able to accomplish only half of what it had been made to do.
After two years of what it perceived(understand,समझना) to be a bitter fiasco(failure,असफलता), it spoke to the water bearer one day by the stream. “I am ashamed of myself, and I want to apologize to you”.  The bearer asked, “Why? What are you ashamed of?”  The Pot replied, “For these past two years I am able to deliver only half of my load because this crack in my side causes water to leak out all the way back to your master’s house. Because of my flaws, you don’t get full value for your endeavours(efforts,प्रयासों)”.
The water bearer felt melancholic(sorry,उदास) for the antiquated(old,पुराना) cracked pot, and in his benevolence(compassion,दया), he said, “As we return to the master’s house, I want you to annunciation(notice,सुचना) the alluring(beautiful,सुन्दर) flowers along the path.”  As they went up the hill, the old cracked pot took notice of the sun warming the beautiful wild flowers on the side of the path, and this exhilarated(cheered,खुशी प्रकट करना) it somewhat.  But at the end of the trail, it still felt abominable(bad,बुरा) because it had leaked out half its load, and so again it apologized to the bearer for its failure.
The bearer said to the pot, “Did you notice that there were flowers only on your side of your path, but not on the other pot’s side? That’s because I have always known about your flaw, and I took advantage of it. I planted flower seeds on your side of the path, and every day while we walk back from the stream, you’ve watered them. For two years I have been able to pick these beautiful flowers to embellish(decorate,सजाना) my master’s table. Without you being just the way you are, he would not have this beauty to grace his house.”
Moral: Each of us has our own unique flaws.  We’re all cracked pots.  In this world, nothing goes to waste.  You may think like the cracked pot that you are inefficient or useless in certain areas of your life, but somehow these flaws can turn out to be a blessing in disguise.”
click here for story six
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Sunday, October 8, 2017

Inhuman Evil Practices and Black Magic Bill, 2017

Mere legislation is not adequate(enough,पर्याप्त) to eradicate(remove,हटाना) superstition from society, but laws do have the utility value of curbing(control,नियंत्रण) the prevalence(spread,फैलाव) of inhuman rituals and practices. The Karnataka Prevention and Eradication of Inhuman Evil Practices and Black Magic Bill, 2017 has been approved by the State Cabinet and is likely to be introduced soon in the Assembly. this as just an ‘anti-superstition bill’, as what it seeks to inhibit(prohibit,निषेध) are actions that offend human dignity, result in the exploitation(शोषण) of gullible(innocent,भोले) and vulnerable(weak,कमज़ोर) people or cause harm to them. Organising macabre(horrid,भयंकर) rituals, offering magical cures and threatening people, under peril(risk,जोखिम) of incurring divine or supernatural displeasure, are covered by this law, even though these can be treated as offences under the Indian Penal Code too.

It is not uncommon to read reports of disturbing rituals. Among the rituals the Bill outlaws is the practice of walking on fire, branding children, and piercing one’s tongue or cheeks. One must denounce(condemn,आरोप) acts that harm women in the name of exorcism(magic,जादू), it is education and awareness that can truly liberate a society from superstition, blind faith and abominable(hateful,घिनोने) practices in the name of faith. Until then, the law will have to continue to identify and punish acts that violate the people’s right to life, health and dignity.


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Friday, September 22, 2017

The Monkey and the Wedge story 5

There was once a merchant who employed many carpenters and masons to build a temple in his garden. Regularly, they would commence(start,शुरू) work in the morning; take a break for the mid-day meals, and return to resume work till evening.  One day, a conglomeration(group,समूह) of monkey arrived at the site of the building and watched the workers leaving for their mid-day meals.  One of the carpenters was sawing a giant(huge,विशाल) log of wood. Since, it was only half-done; he placed a wedge(कील) in between to inhibit(prevent,रोकना) the log from closing up. He then went off along with the other workers for his meal.  When all the workers were gone, the monkeys came


 down from the trees and started jumping around the site, and playing with the instruments.  There was one monkey, who got avid(curious,उत्सुक) about the wedge placed between the log. He sat down on the log, and having placed himself in between the half-split log, caught hold of the wedge and started pulling at it.  All of a abrupt(sudden,अचानक), the wedge came out. As a consequence(result,नतीजा), the half-split log obstructed(closed,बंद) in and the monkey got caught in the gap of the log.  As was his fate(destiny,भाग्य), he was severely wounded.  The sagacious(wise,बुद्धिमान) indeed utter(say,कहना):One, who interferes in other's work, surely comes to compunction(grief,शोक).


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Saturday, September 9, 2017

Wait For The Brick....... story 2

A young and successful executive was traveling down a propinquity(neighborhood,पड़ोस) street, going a bit too brisk(fast,तेज़) in his new Jaguar. He was watching for kids darting out from between parked cars and slowed down when he thought he saw something. As his car passed, no children appeared. Instead, a brick smashed into the Jag’s side door! He slammed on the brakes and drove the Jag back to the spot where the brick had been thrown. The disgruntled(angry,नाराज़) driver then jumped out of the car, grabbed the nearest kid and pushed him up against a parked car, shouting, “What was that all about and who are you?
Just what the heck are you doing?
That’s a new car and that brick you threw is going to cost a lot of money.
Why did you do it?”
The young boy was penitent(apologeticक्षमाशील),. “Please mister … please, I’m sorry… I didn’t know what else to do,” he pleaded.
“I threw the brick because no one else would stop…”
With tears dripping down his face and off his chin, the youth pointed to a spot just around a parked car.
“It’s my brother,” he said.
“He rolled off the curb and fell out of his wheelchair and I can’t lift him up.” Now sobbing, the boy asked the stunned executive, “Would you please help me get him back into his wheelchair? He’s hurt and he’s too ponderous(heavy,भारी) for me.”
Moved beyond words, the driver tried to swallow the expeditiously(rapidly,तेज़ी से) swelling lump in his throat. He hurriedly lifted the handicapped boy back into the wheelchair, then took out his fancy handkerchief and dabbed at the fresh scrapes and cuts. A quick look told him everything was going to be okay.
“Thank you and may God bless you,” the grateful child told the stranger.
Too shook up for words, the man simply watched the little boy push his wheelchair-bound brother down the sidewalk toward their home. It was a long, dilatory(slow,धीमा) walk back to the Jaguar. The damage was very perceptible(noticeable,प्रत्यक्ष), but the driver never bothered to repair the dented side door. He kept the dent there to remind him of this message: Don’t go through life so fast that someone has to throw a brick at you to get your attention!
God whispers in our souls and speaks to our hearts. Sometimes when we don’t have time to listen, He has to throw a brick at us.
It’s our choice: Listen to the whisper … or wait for the brick!

click here for story 1x

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Sunday, August 13, 2017

REFUTES

The Delhi High Court is hearing the issue on August 10 in response to a Delhi-based union’s petition which refutes the claims of Uber and Ola — as not being employers of drivers but only providers of work.
What is refutes means ….. it means to declare not to be true,false or in hindi(खंडन)

Synonyms: contradict, disaffirm, disallow, disavow, disclaim, disconfirm, disown, gainsay, negate, negative, deny, reject, repudiate

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Sunday, October 16, 2016

Keep up the fair exchange




Amid(between,के बीच) tensions between the two countries, it has been suggested that India should impose a trade embargo(restriction,प्रतिबन्ध) on Pakistan by suspending its most-favoured nation (MFN) commitment towards Pakistan in the World Trade Organisation (WTO). The MFN provision, given in Article I of the General Agreement on Tariffs and Trade (GATT), 1994, puts every WTO member (including India) under an obligation to extend any benefit (say, lowering tariff rates) accorded to one member (say, the U.S.) to all other WTO members (including Pakistan). This core non-discrimination(unfair treatment,भेदभाव) principle is the cornerstone of the world trading system. Arguing for India suspending its MFN commitment towards Pakistan would mean India restricting imports from Pakistan without restricting imports of like goods from other countries, or/and India restricting exports to Pakistan without restricting the export of like goods to other countries. This can be achieved by imposing trade quotas, higher tariffs, taxes, or even totally banning some or all traded products. But is this economically and legally feasible(possible,संभव)?
Economic and legal feasibility 

Although bilateral trade between India and Pakistan has increased from $345 million in 2003-04 to $2.61 billion in 2015-16, it is abysmal(bad,
निराशाजनक) compared to India’s total merchandise trade of $641 billion in 2015-16 and Pakistan’s total trade of around $75 billion, which includes exports worth $28.3 billion. India’s exports to Pakistan amount to $2.1 billion whereas imports from Pakistan are just $441 million, resulting in a trade surplus of $1.7 billion in favour of India. Given these numbers, assuming India were to suspend MFN status by stopping all imports from Pakistan, it would only result in a very marginal decline of Pakistan’s total exports and that too assuming that Pakistan is unable to find alternative markets. Even prohibiting all Indian exports to Pakistan, such as textiles, chemicals and agricultural products, will also not have any noticeable impact on Pakistan because Pakistan can always source these goods from other countries. On the contrary(against,विपरीत), restricting India’s exports, which have contracted considerably in the last 18 months, might hurt India more than Pakistan.
Would India be able to justify its MFN violation if Pakistan were to challenge this in the WTO’s dispute settlement body (DSB)? First, India cannot justify this on the pretext that Pakistan does not honour MFN obligations towards India. The correct recourse to Pakistan’s action is to mount a legal challenge in the WTO and not indulge in tit-for-tat.
However, India can justify its MFN violation if it is able to make a case under any of the GATT exceptions such as the national security exception, most important in the current scenario. In the pre-WTO era, the U.S. in 1985 relied on this exception to defend its MFN violation when it imposed a trade embargo on Nicaragua to oppose the Sandinista government. However, given the weak and diplomacy-based method of resolving trade disputes then, the U.S. defence was never judicially tested. In the post-WTO era, in 1996, when the European Communities (EC) challenged the Helms-Burton Act of the U.S., enacted to strengthen the American embargo on Cuba, the U.S. again justified it as a national security exception. Even here, before the adjudicatory process could start, the U.S. and the EC reached a settlement.
Article XXI (b) of GATT provides the most important national security exception. It states that nothing in GATT shall be construed(understand,अर्थ करना) to prevent any country from taking any action that “it considers necessary” for the protection of its essential security interests. Three questions are pertinent(appropriate,उचित). First, do the words “it considers necessary” give full authority to India to enact any measure it likes without any scrutiny by WTO’s DSB? Although Article XXI (b) gives a country very wide discretion(judgement,निर्णय) to unilaterally(one sidedly,एकतरफा) decide its national security measures, a certain degree of “judicial review” is still possible. Thus, at a minimum, India will have to provide a reasonable explanation to the DSB as to why restricting export of cotton and tomatoes to Pakistan or/and restricting imports of dates, light oil and portland cement (these commodities constitute almost 50 per cent of India’s imports from Pakistan) is necessary to protect India’s essential security interests.
Second, is Article XXI (b) a general national security exception? No. This exception can be invoked only if the measure adopted relates to fissionable material, to traffic in arms or other related material, or is taken in time of war or other emergency in international relations (EIR). India will most likely try to make a case in the EIR category. Even here, though India will enjoy a wide discretion to define EIR, this cannot be unilaterally determined to ensure that Article XXI is not used for political or punitive purpose.
Third, does the current situation fall under an EIR? This is difficult to answer. Notwithstanding recent escalations(increase,बढ़ोतरी), both countries continue to have diplomatic relations, cultural and social ties have not been snapped, transport links continue to exist. Also, both countries have seen far worse days in the past and yet trade and economic ties deepened.
Free trade and peace

Therefore, given the negligible economic impact and potential legal problems, suspending MFN to impose trade sanctions on Pakistan will only escalate tensions without much benefit. Instead of weakening trade ties, India and Pakistan should pay heed to this famous claim that ‘when goods don’t cross borders, soldiers will’. Free trade connects countries, and thus incentivizes(encourage,
प्रोत्साहन) peace. Empirically(experimentally,अनुभव से), it has been shown that higher levels of free trade reduce military conflicts(battle,विवाद). India and Pakistan should boost free trade amongst themselves, Pakistan should honour its MFN commitment to India in the WTO, and India should use the SAARC platform to push for deeper trade ties.


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Not simply a vision thing


Monsanto recently decided that it would stop the release of new genetically modified (GM) cotton technology because of “uncertainty in the business and regulatory environment”. At the same time, it was reported that GM mustard has moved closer to obtaining clearance for commercial cultivation in India following a key committee’s favourable assessment on issues of soil suitability and risks to health and ecology.
The issues involved are complex and contested(controversial,विवादास्पद), and the challenges and contradictions(protest,विरोधाभास) may be evident to even the most casual of observers. Bt brinjal itself may have faded away from public discourse but the debacle(failure,पराजय) over its introduction is not something that will be forgotten in a hurry. The contestations over Bt cotton continue to be alive in scientific research, in experiences on the field, and in policy debates. The seed industry has, in fact, split down the middle over a reorientation of the regulatory and policy frameworks related to Bt cotton. And yet, for a certain prominent section of the science and technology (S&T) establishment of the country, the promise of GM mustard trumps all skepticism(doubt,संदेह).
Contestations

The conundrum(puzzle,
पहेली) here is not so much about the technology itself as it is about the promise that imbues the technology and which holds the present and the future together. Building promises is very similar to building facts, notes Cynthia Selin who studies the intersection of science, technology and society. It is the promise and vision of the future that then becomes key in generating a constellation(planet,नक्षत्र) that provides social and political legitimacy on the one hand, and much-needed financial resources on the other. Bt cotton, Bt brinjal and many technologies of the future exist through the expectations they generate and mobilise about the future. The act of developing a technology, therefore, is as much work inside the laboratory as it should be of engaging with the state and society and with their various concerns and questions. This will not be possible if the public is seen as ignorant or ill-informed, and the activist reactionary or an agent of vested(inherent,निहित) interests. The contestation is, in fact, over the vision of S&T, of society and, for that matter, of the future itself.
In the case of GM mustard, work was done at Delhi University using public money provided by the government. And yet it needed the Central Information Commissioner to say that biosafety data around GM organisms should be available in the public domain. There are some key questions here. What explains, for instance, this deficit of trust in the public and in democratic mechanisms set up by the very institutions that provide the resources and the legitimacy for these new technologies? Is it an anxiety about failure of the technologist or of the technology itself? Or is it about the stakes involved in the socio-technical-economic system that has been mobilised to create the legitimacy in the first place? Does it say something about the potential failure of an imaginary technology that is based exclusively on the promise of the future? Can the narrative be one of hope and promise alone with no space for doubt or the possibility of any failure at all?
Technology Vision 2035

This indeed is the premise one sees embedded in India’s Technology Vision 2035 (TV 2035), a vision produced by the Technology Information, Forecasting and Assessment Council (TIFAC), an autonomous organisation under the Department of Science and Technology. Released earlier this year by Prime Minister Narendra Modi, TV 2035 charts out trajectories for society through various technologies that will help make India a ‘developed’ country by 2035. The vision is both an account of a future and a route to that future where technology delivers, provides and secures. Risk and vulnerabilities(weakness,
कमज़ोरिया) that are inherent to technology and therefore to our increasingly ‘technological cultures’, as Professor Wiebe Bijker, sociologist of science and technology, calls them, are part of the narrative in only a very marginal manner. There is little, if any, doubt about the capacity of technology and the different technologies to deliver the goods. TV 2035 sees people opposed to certain technologies like nuclear and big dams as a barrier to their dreams. These then need to be addressed through better governance and not better technological design because “bottlenecks(problemबाधा) lie in policy and not technology”.
The past and the present, we know, are full of various dilemmas(uncertainty,दुविधा), challenges, even failures of technological promises and yet, a substantive engagement with the ethical, legal and social (ESLA) issues of research, development and deployment of technology is conspicuous(specific,विशिष्ट) by its virtual absence.
When failure and risk are integral parts of the technological enterprise, why is it that technological visions like TV 2035 have such little space for including and discussing them? It may not be a conscious choice, but it is not an innocent one either. The particular question here is not whether GM mustard is acceptable, which is a rather different debate. The point is to note that the promise and the promissory visible frontstage in advocating a GM mustard is complemented by a vision backstage that is reluctant(unwilling,अनिच्छुक) or perhaps unable to look at anything but that promise. The ideal of the democratic in scientific and technological choices, while desirable, is certainly not an easy one to realise because the messy issues of the ethical, legal and social have to be dealt with both frontstage and backstage.
Political and democratic promise

An illustration of this is visible in a situation where the technological only appears marginal at first glance. On a visit to Kashmir, a conciliatory Home Minister Rajnath Singh offered to engage with anyone who was interested in finding a solution to the crisis there. “I will be staying at the Nehru Guest House. Those who believe in Kashmiriyat, Insaniyat and Jamhooriyat are welcome,” he tweeted in an effort to reach out to all. It was as much an invocation of the political and the democratic promise as it was of the technological promise of modern communications. The irony only came forth when he was asked how this message of the Home Minister would reach the people when the government itself had blocked Internet services.
What more can one say of the inextricable(complex,विकट) intertwining of the political and the technological with the social, legal and ethical? The technological has promise, no doubt, but it is not untethered to chart territories of its own making.

courtesy:the hindu
click here for official link



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Friday, September 30, 2016

Something for everyone

A landmark meeting of 33 people is currently under way in New Delhi. This is the meeting of the newly constituted Goods and Services Tax (GST) Council, comprising representatives of the 29 States, two Union territories, and the Finance Minister along with his deputy. The GST Council will lay the foundation for the future of India’s cooperative federalism. Can a nation with an extremely diverse and dissimilar set of States amicably(friendly,सौहार्दपूर्ण) transition to a ‘one nation, one tax’ GST regime is the $250 billion (of indirect taxes) question.
Rainbow nation

The GST Council has a minister representing the median 30-year-old matriculation-educated Tamilian, earning roughly Rs.1.4 lakh per annum. It also has a minister representing the median 19-year-old primary school-educated Bihari earning a mere one-fourth of her fellow Tamilian. The Finance Minister of Maharashtra representing one-seventh of the entire country’s GDP will attempt to strike a fair deal on equal terms with the minister representing Sikkim with less than 1 per cent of Maharashtra’s GDP! Neither the European Union nor the United States nor even China exhibit(show,
दिखाना) such stark contrasts in demographics, human development and economic parameters across their large provinces as India. In this context, this transition to a uniform GST regime is both extremely audacious(brave,साहसी) and laudable. Reconciling diverse preferences of all the member States of the GST Council to determine a uniform set of indirect taxes across the nation is a ‘Mangalyaan’ task. But it is possible to accomplish this mission by adhering(follow,अनुकरण) to some basic guiding principles. We present below a five-point thematic framework for the GST Council. But first, it is essential to remove some misplaced notions(belief,मत) around GST.
One, the revenue neutral rate (RNR) is a utopian(imaginary,काल्पनिक) chase. It is best to acknowledge that under a new GST regime, it is impossible to predict how tax collections will be in the short and longer term. It is futile(useless,व्यर्थ) to agonise(pain,व्यथा) exact rate at which there will be no loss of tax revenues for all the States.
Two, fear of loss of revenues to large States due to a lower GST rate is exaggerated(overstated,अतिशयोक्ति). Large States can also benefit from a significantly higher share of service tax revenues to their kitty under the destination-based GST regime.
Three, it is a false notion that high GST rates will not affect the poor since half of the consumption basket is not taxed. This assumption, that the government knows precisely(clearly,स्पस्थ्तया) what the poor and rich consume, is bizarre(weird,अजीब) and outdated. The government decides that regular biscuits is an ‘essential’ good and is not taxed while cream biscuits is a ‘luxury’ good that is taxed at the highest rate. Meat may be a ‘non-essential’ food item for the poorer Bihari but ‘essential’ for a richer Keralite. Given India’s stark economic diversity, there are no uniform standards for the poor across the country.
Five guiding principles

The five guiding principles for a possible consensus(agreement,
सहमति) on GST:
One, forget RNR, instead guarantee a minimum for each State: States are bound to be apprehensive about potential revenue losses in this transition to a GST regime. The leaders of these States have budget commitments to keep and elections to fight. Guaranteeing the States a minimum amount of GST revenues will relieve them of the risks of tax buoyancy(boom,उछाल). Every State can be guaranteed a minimum combined GST (Central and State GST) revenues for a period of five years or a State election, whichever is earlier. This minimum revenue formula should include all of the State’s 2015-16 non-petroleum, non-sin goods indirect tax revenues.
Two, keep it small and simple: A simple and low standard GST rate should be set to incentivise tax compliance and boost overall tax collections. In order to minimise overall inflationary impact, the standard GST rate slab should be 15 per cent, equal to the current services tax rate including all cesses. There can then be a slab for low rate, a merit rate and a high de-merit rate. It is then up to the GST council to categorise goods and services into these four slabs.
We acknowledge that a guaranteed revenue stream and a minimum GST rate can be potentially hazardous(dangerous,खतरनाक) to the Centre’s fiscal situation. In the impossible trinity of keeping rates low, reimbursing States and keeping fiscal prudence, it may be worth relaxing fiscal discipline, as an investment into the future of a smooth functioning GST.
Three, no more State-specific tax incentives; increase threshold for exemption: Different States have different thresholds under which businesses are exempt from State taxes. Typically for large States, any business with an annual turnover of less than Rs.10 lakh is exempt. Since a uniform GST will remove the States’ ability to attract new businesses with tax incentives, there is an understandable fear of new job creation in the more developed States. Raising this threshold for GST exemption from the current average of Rs.10 lakh to, say, Rs.40 lakh can incentivise existing small businesses to grow faster, thereby creating new jobs. While outwardly, this may seem unfair to the smaller States, they may actually stand to gain in the longer run as this can attract larger businesses to smaller States where land and labour are ostensibly(seemingly,प्रकट रूप से) cheaper.
Four, minimal categories of exemption: Petroleum and petro products along with sin goods such as alcohol and tobacco are already exempt from the current GST law, allowing States to levy appropriate taxes on these goods. With a guaranteed minimum GST revenue for each State for a certain period and an overall low GST rate, it is in both the interest of the States and the Centre to then not allow for any more goods or services to be exempt from GST.
Five, incentivise States for GST collection: The key to a successful GST regime is increased tax revenues to States failing which it is bound to get fractious(uncontrolled,बेलगाम) in the years to come. Since GST is a destination tax concept, it is best to give each State the greater responsibility to collect both Central and State GST taxes within its State. The more the States collect, the more they get back.
It took three years post-Independence for the Constituent Assembly to draft the Constitution of India that has remained the edifice on which the Republic of India still stands firm. The GST Council has a similar weight of responsibility in cementing the economic unity of India on a seemingly shaky pluralistic foundation. It is an onerous(heavy,भारी) task that deserves debate, discussion and consensus.
Praveen Chakravarty is Senior Fellow in Political Economy, IDFC Institute. Ajit Ranade is Chief Economist, Aditya Birla Group.
courtesy:the hindu

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Sunday, September 25, 2016

The economy on autopilot



As the Narendra Modi government inches towards its halfway mark, its economic philosophy stands revealed. This appears to consist of aiming at some ideal institutional architecture while leaving economic forces to play out on their own. The criterion of macroeconomic stability, defined mainly by inflation kept within a range, completes the picture. Underpinning such an approach is the premise that the potential of the economy, reflecting the chosen acts of private agents, not only cannot be improved upon by the government but its realisation could actually be stymied by intervention. This is a well-known position in the canon of Anglo-American economics tending towards the view that market outcomes are the best. The maxim ‘minimum government is maximum governance’ could legitimately claim to be its progeny.
Life in the slow lane

How, it may be asked, has this philosophy served the economy? We could start with growth. Since May 2014, growth has accelerated but at a much slower rate than that it already had commenced(start,शुरुवात) upon in 2013-14. India today is the world’s fastest growing economy but this we owe to the fact that China has slowed more than India has. India has not exactly surged to number one position. But more importantly, the government has not so far been able to achieve the substantial quickening of the economy that Mr. Modi had promised at election time. The government has on occasion extolled
(praise,गुणगान) its record in maintaining macroeconomic stability. This is indeed correct. Inflation has declined but this only reflects a downward trend that had started in 2013-14. The government would also no doubt like to take credit for sticking to the pre-announced fiscal consolidation(integration,सुद्रढ़) path. The fiscal deficit has steadily declined since May 2014. The Finance Minister’s public statements suggest that he treats this as a significant achievement of his government. Actually, it typifies the search for the ideal architecture without sufficient concern for outcomes. The truth is that this government had inherited an economy with quite rapidly accelerating growth and steadily declining inflation. It has barely managed to maintain this scenario. The promised resurgence has not materialised.
It is with respect to investment that the government’s record is uninspiring. Far from having been able to instil confidence among private investors, the government has been unable to stem a decline in capital formation — as a share of output — in progress for at least half a decade. On its part the government takes recourse to the figures on foreign direct investment (FDI) to signal the effectiveness of its policies. Data from the Department of Industrial Policy and Promotion show that in the year just passed, the economy attracted increased FDI up to 29 per cent in dollar terms. While this is impressive, and to be welcomed, it is important to have a sense of what it amounts to. In the year 2014-15, FDI amounted to a mere 4 per cent of total capital formation in India. So, while FDI is to be encouraged, its ability to make a significant contribution to growth is limited. On the other hand, over 75 per cent of capital formation is undertaken by the domestic private sector. Any significant change in the investment scenario would depend upon the actions of this segment.
Sticking to fiscal consolidation

Right now private investment is very likely being restrained by the weak balance sheet of firms. The flip side of this is the high level of non-performing assets (NPAs) of the public commercial banks. Forcing these banks to lend would be poor policy. But it is not clear whether everything that can be done to lower the lending rate is being done. After all, consumer price index (CPI) inflation, the Reserve Bank of India’s (RBI) preferred inflation index, is trending downward and there is a case for lowering lending rates. But the RBI has now been put into the straitjacket of inflation targeting and can no longer respond to considerations of output. This leaves fiscal policy as the only instrument with the government.
The government, however, is reluctant(unwilling,अनिच्छुक) to use it to increase aggregate demand for fear of deviating from its fiscal consolidation path. It is of course possible to step up public investment by trimming subsidies. Here the National Democratic Alliance government’s approach is cravenly(cowardly,कायराना) political, and no different from that of its predecessor, the United Progressive Alliance. It is reluctant to be seen as cutting subsidies even when it is clear that a rupee-for-rupee swap in certain subsidies for public capital formation is likely to be beneficial for both growth and welfare. The fertilizer subsidy presents the most obvious instance. It has done little to stem the rise in food prices while continuing to take up precious fiscal space. There is a strong case for reviewing its continuation, at least in the present form. Well-designed empirical(practical,अनुभवजन्य) research alone can settle the matter of its desirability, and one hopes the government will provide this in time for its third annual Budget.
Looking for inspiration

An object of this government’s admiration has been revealed to us in the choice of speaker for the firstNITI Aayog Lecture on Transforming India. It chose Tharman Shanmugaratnam, the Deputy Prime Minister of Singapore who was earlier its Finance Minister for close to a decade. A trained economist with considerable international exposure, Mr. Shanmugaratnam typifies the Singapore model, which recognises the value of high human capital in its leadership, something that India has not seen since the time of Jawaharlal Nehru. Prime Minister Modi is right to have invited this global leader to participate in a brainstorming on how to transform India, thus drawing much-needed attention to the achievements of Singapore. Though its cultural policies may not be to everyone’s taste, the economic transformation that this tiny state has so quickly wrought is most impressive indeed. There is an astounding(surprising,
चौकाने) presence there of public capital in the form of infrastructure, the most egregious(powerful,प्रबल) of which is public housing which hosts over 80 per cent of the population. Along with its approach to political freedoms, Singapore’s record is closer to that of socialist planning rather than free-market capitalism. Its government has not hesitated to intervene in the economy but its interventions have been made with a finesse that has yielded(give,देना) substantial returns. It is ironic that a government that had so ceremoniously replaced the Planning Commission must simultaneously seek clues from the history of a country transformed by economic planning.
There is one specific area in which our own government may learn from the Singapore experience. The government there had instituted a provident fund to which all workers and employees have had to contribute. These contributions ensured a rise in the saving rate which in turn was a source of funding for public investment. In the muddled discourse on fiscal policy in India today, the reigning argument appears to be that a fixed private saving rate sets the limit for the attainable fiscal deficit. This overlooks the possibility of raising the private saving rate, which is precisely(clearly,स्पस्थ्तया) what the Singapore government had done early in its history, enabling it to achieve a scale of public capital formation that truly distinguishes it from India. All indications are that the present government of India is striving to replicate Singapore’s institutional architecture, as in laws governing business, rather than the transformative role of public investment that turned a fishing village into a global destination for FDI. What other conclusion can be drawn from the fact that in the Budget for 2016-17 the increase in the allocation for capital expenditure amounted to a mere 2.3 per cent, with inflation running at around 4 per cent per annum?
Bleak agricultural landscape

A sector that is unlikely to be well served by the philosophy than an economy left to its own devices will achieve its potential is agriculture. Three of the past five years in India have been years of poor agricultural performance, reflected in persistent(continuous,
लगातार) food price inflation. We are very likely witnessing creeping climate change with direct consequences(result,परिणाम) for production. The advisory from most funds in the financial sector is that the economic outlook this year will depend upon the monsoon. It is surprising that the imperative(mandatory,अनिवार्य) of drought-proofing an increasingly vulnerable(weak,कमज़ोर) Indian agriculture hardly figures in the public discourse on the economy when it is of no less importance than rolling out the Goods and Services Tax. Nothing short of a transformation akin(similar,के समान) to the Green Revolution can achieve this, and the States would have to be on board. The present government has had little to say on the matter so far. By disbanding the Planning Commission, the Centre has lost a long-standing conduit to the States whose planning boards did have at least a titular connection to the former.
courtesy:the hindu 

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Story: Baby Camel and Mother story 11

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