While India is perennially on an election treadmill, with 10 state elections and a national election coming up in the next 18 months it is perhaps an apposite time to discuss the issue of freebies, i.e. the squandering of the public purse for electoral gains. Even the Supreme Court is seized of a petition in this regard that has been referred to a three-judge bench.

The fundamental questions are — Should political parties be permitted to make promises of free sops in lieu of votes? Are these sops not mere inducements or can they be qualified as well-intentioned public welfare commitments? Is it constitutionally even permissible to burden the public purse in a manner that ends up debilitating the public exchequer? Does such economic distortion not create a heavy burden on future generations who would directly or indirectly end up servicing the debt incurred by the financing of freebies? What about fiscal conservatism and balanced budgets qua financial profligacy? 

Freebies need to be defined clearly and the definition tailored precisely. The diffidence in defining freebies has led to great perplexity regarding what is a permitted welfare measure and what would constitute a ‘revdi’. Permitted welfare measures are invariably properly thought out and the beneficiaries identified. The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) fits this definition in a sterling manner. MNREGA is an employment guarantee scheme with clearly identified beneficiaries and a longer term goal of rural employment and development. Moreover, it creates infrastructure and assets in rural areas helping build capacity and capability within rural households.  

Freebies, on the other hand, are short-term measures announced as boilerplate policies offering free electricity, free water, large-scale debt waivers, and write-offs of bank loans. These freebies create no production or productivity. When political parties promise the moon and then rely on borrowings to buy the moon, it gives rise to a vicious cycle of debt accumulation and reckless spending. 

In an article analyzing state finances published in June 2022, the Reserve Bank of India expressed concern over the growing preference for the distribution of freebies. It noted that state governments’ expenditure on subsidies has grown at 12.9 per cent and 11.2 per cent during 2020-21 and 2021-22, respectively. Further, the RBI estimated that the cost of freebies announced in 2022-23 ranged between zero per cent to 2.7 per cent of the GSDP for the following states, viz., Punjab, Kerala, Andhra Pradesh, Jharkhand, Haryana,  Bihar, Rajasthan,  Madhya Pradesh and West Bengal.

Even debt stressed states are on a freebie spree. In Punjab, the freebies announced are 45.4 per cent of its total own tax revenue. Yet that does not prove to be a moral or even ethical impediment in announcing freebies. With higher revenue deficits, borrowings are bound to increase and so will the consequent interest. Little surprise then that Punjab spends 21.3 per cent of its revenues on interest payments. 

According to RBI data, the fiscal deficit to GSDP ratio of Kerala (4.1), West Bengal (3.5), Punjab (4.6), Rajasthan (5.2), Uttar Pradesh (4.3), Andhra Pradesh (3.2), Tamil Nadu (3.8) and Telangana (3.9) remained above three per cent. Indeed, based on the debt-GSDP ratio in 2020-21, Punjab, Rajasthan, Kerala, West Bengal, Bihar, Andhra Pradesh, Jharkhand, Madhya Pradesh, Uttar Pradesh and Haryana turn out to be the states with the highest debt burden. Moreover, the interest payment to revenue receipts (IP-RR) ratio was more than 10 per cent in all these states excluding Jharkhand and Bihar. In its risk analysis report, the RBI identified the following as “highly stressed states”: Punjab, Kerala, Rajasthan, Bihar and West Bengal. 

Further, Kerala (37.1), West Bengal (37.1), Punjab (49.1), Rajasthan (40.5), Bihar (38.7), Jharkhand (34.4), Madhya Pradesh (31.9) and Andhra Pradesh (32.8) have very high public debt to GSDP ratio of above 30 per cent for FY-21, as per the RBI State Finances data for the year 2021-22.

An indicator of whether government spending was done well is the quality of expenditure which is indicated by high revenue spending to capital outlay ratios. Punjab’s revenue expenditure to capital outlay ratio was, again, very high at 16.6 and for Kerala, it stood at 12.1. Capital outlays are longer term growth measures that generate greater and more positive economic impact. On the other hand, short-term welfare measures hardly have an impact beyond a one-year term. 

The reversion to the Old Pension Scheme (OPS) is another contentious debt-creating regression critiqued by many eminent economists. Pension expenditure alone accounts for 12.4 per cent (average of 2017-18 to 2021-22) of total revenue expenditure of the 10 most indebted states, as per the RBI. 

Power subsidies are a major portion of the financial burden of state governments. Three bailouts of power distribution companies over the last 20 years have had major repercussions for the health of state finances. The RBI warns that Tamil Nadu, Madhya Pradesh, Rajasthan and Punjab are most vulnerable to a possible bailout. It forecasts that most states are likely to exceed the debt-GSDP ratio of 30 per cent in 2026-27 with Punjab performing the worst. Punjab is expected to remain in the worst position as its debt-GSDP ratio is projected to be greater than 45 per cent in 2026-27, with further deterioration in its fiscal position.

The position of the Union government is hardly better. Till September 2022 it had received 12,03,748 crores and spent 18,23,597 crores. Out of which 4,36,682 crores is towards interests payments of debt.

The recent extension given by the Cabinet to the free grain scheme under the National Food Security Act (NSFA) on December 24, 2022, must also be scrutinised similarly, given its impact on the Union’s finances. About 81.35 crore people around the country are covered under the NFSA. The government has said that the cost of distributing free food grains under the NFSA would be around Rs 2 lakh crores. When the UPA government had conceived, conceptualised and implemented the NFSA, it had the choice of distributing free foodgrains, but it deliberately eschewed the option and opted for providing subsidised foodgrains.

A public debate on fiscal prudence has been conspicuously absent in our polity. While the Constitutional  Directive Principles of State Policy, Articles 38 and 39 in particular, envisage welfare measures for the betterment of citizens, it was never the intent of these provisions to make elections, and by extension democracy, a transactional exercise where voters get something for free in return for their vote.

One of the issues before the Supreme Court is the extent and scope of Article 282 of the Constitution which allows the Union and state governments to utilise revenues for a “public purpose”. A definite ruling that defines the contours of public purpose may help mitigate if not proscribe this licentiousness.

Tribune News Service

Vijay Mohan

Chandigarh, January 15

The Army is looking at procuring combat weapon training simulators (CWTS) and containerised shooting ranges (CSR) that will enable training activities to be carried out indoors and in limited space.

According to two requests for proposals issued by the Ministry of Defence this week, the Army’s requirement is for 142 CWTSs and 76 CSRs, which will be procured from Indian vendors through the fast-track procedure.

Indoor simulators and shooting ranges do way with the need for vast areas for carrying out regular training, are not prone to vagaries of the weather, allow for multiple operational scenarios to be created, give an instant feedback on performance and corrective measures and cut logistics and administrative costs.

The Army is already using various types of training simulators for basic as well as advanced training in various disciplines and trades. These can effectively complement outdoor field training exercises

The CWTS would have the capability to simulate all weapons available at section level, including pistols, carbines, rifles, light machine guns and rocket launcher, with different firing modes and near actual recoil and sound output.

It should be able to generate various types of targets, exercise and range course practices along with operational or tactical scenarios for ambush, counter-ambush, raid, attack, defence and counter terroristoperations as per the training needs or mission needs of the user, besides creating an ambience of daylight, low visibility and night conditions.

It would have at least two firing lanes with bullet proof firing booth partitions and enable safe firing of 5.56 mm, 7.62 mm and 9 mm weapons in standing, kneeling and lying positions with or without support.

Like the CWTS, the CSR would also be able to generate different targets, including static and moving with varying speed and direction as well as create various operational environment such as plains, jungle, deserts, mountains, snow-bound and built-up area.

Both the systems will have the ability to digitally record and archive the training activity for subsequent analysis and evaluation.

Was inaugurated by Sushma Swaraj on November 1, 2002, and dedicated to late Deputy Prime Minister Devi Lal

Tribune News Service

Deepender Deswal

Hisar, January 14

After around 21 years in operation, the Doordarshan Kendra (DDK) in Hisar — the only kendra in Haryana — has been shifted to the Doordarshan Kendra in Chandigarh. This is the only DDK of the country that has been shut and shifted to Chandigarh. There are 18 other DDKs operating in different states.

No reason cited

All operations will be shifted to the Chandigarh DDK from tonight. It is a policy decision of the Prasar Bharati. There are no reasons mentioned in the order for shifting the Hisar DDK to Chandigarh. Pawan Kumar, Station Director, Doordarshan Kendra, Hisar

All 30 regular employees of the Prasar Bharati have been transferred to Chandigarh and other stations while equal number of temporary employees have been left high and dry.

These temporary employees, headed by the Doordarshan Bachao Sangharsh Samiti, have been staging a dharna outside the kendra for around two weeks.

The DDK is spread over eight acres that comprises a residential complex for employees on five acres in Sector

The DDK, Hisar, was set up and inaugurated by the then Union Information and Broadcasting Minister Sushma Swaraj on November 1, 2002. The kendra was dedicated to former Deputy Prime Minister Devi Lal.

The employees said the DDK comprises a studio and production control room. It used to telecast programmes daily from 3 pm to 7 pm, which include news bulletin, kisan and cultural programmes, ‘bhajans’ and folk items on daily basis.

Prasar Bharati, the public service broadcaster, has issued the order (a copy is with The Tribune) regarding shifting of operations of the Hisar DDK to Chandigarh from January

The order states that the decision had been taken with the approval of the competent authority. It further states that all programmes, news related production and transmission activities that were being carried out from the Hisar DDK would be shifted to the Chandigarh DDK.

It also mentions that the Additional Director-General (ADG), Administration, was asked to ensure safety and security of building and premises, along with associated broadcast equipment and switch gear available, at the Hisar DDK.

The affected temporary employees sitting on dharna said: “At least 35 employees, including temporary anchors, data entry operators, security personnel and video editors are likely to lose their jobs. Many folk and other artistes from Hisar and surrounding districts are also associated with this kendra. They used to earn by presenting their programmes and will also be at loss.

The employees said the production and telecast of programmes related to Haryanvi culture was not possible in Chandigarh. Besides, there was no other DDK in Haryana, they said while demanding withdrawal of the shifting orders for Chandigarh.

The Information and Broadcasting Minister, Anurag Thakur, had visited the Hisar DDK in December, 2022.

The in-charge station director, Pawan Kumar, said all operations would be shifted to the Chandigarh DDK from tonight. He said it was a policy decision of the Prasar Bharati and there were no reasons mentioned in the order for shifting the Hisar DDK to Chandigarh.

Functional kendras

At present, the Doordarshan Kendras are functioning in Lucknow, Guwahati, Mumbai, Trivandrum, Bhopal, Bhubaneswar, Chennai, Kolkata, Srinagar, Vijaywara, Patna, Raipur, Ahmadabad, Ranchi, Bengaluru, Shillong, Jalandhar and Hyderabad.

PTI

New Delhi, January 15

India’s nascent private space sector has presented a wishlist of tax incentives and a production-linked incentive scheme in the upcoming Union Budget to boost local manufacturing and spur research and development.

“In the 2023-24 Union Budget, we would like to request a space-based production linked incentive (PLI) scheme for space tech startups to help boost local manufacturing and encourage capability building within the country,” Awais Ahmed, the co-founder and chief executive officer of Pixxel, a space startup based in Bengaluru, told PTI.

Last year, Pixxel became the first Indian startup to launch its own hyperspectral imaging satellite, “Shakuntala”, onboard SpaceX’s rideshare rocket and followed it up with another similar satellite, “Anand”, using the Indian Space Research Organisation’s (ISRO) PSLV rocket. It plans to have a constellation of earth observation satellites soon.

“In the Union Budget 2023-24, we request a further Rs 100 crore issuance as viability gap funding (VGF) to set up new infrastructure,” Kranthi Chand, the head of strategy and special projects, DhruvaSpace, told PTI.

DhruvaSpace, a Hyderabad-based startup, also launched two satellites onboard the PSLV rocket in November and has plans to set up a satellite-manufacturing unit for a range of applications.

Chand also wants the government to make a dedicated allocation of Rs 1,000 crore for the Defence Space Agency (DSA) for the procurement of new technology from the industry.

He noted that an acceptance of necessity (AoN) has been accorded by the Ministry of Defence and Services headquarters for several satellite and space technology projects.

According to Indian Space Association (ISpA) Director General Lieutenant General AK Bhatt (Retd), the suggestions were received from the space industry on tax policies and incentives to promote investment, research and development, and employment in the space sector.

The ISpA said a PLI scheme for the speace sector will promote research and development in the country and provide incentives to entities engaged in the sector.

The ISpA also wants the government to provide financial support through loans, grants and tax incentives to the companies and organisations in the space sector.

“Since the new space policy is in its final stages of development, the provision of tax exemption for startups should be continued till the time the incumbent policy is released or implemented,” Bhatt said.

Considering that most space-tech companies in India are startups and access to capital is an issue, it would be beneficial to create parity in terms of the short-term capital gains tax rate and treatment with respect to listed and unlisted entities, and also provide exemption from angel tax, the ISpA said.

Bhatt also wants the government to set up space technology parks and form a group of experts for the use of the space ecosystem.

“We believe this allocation gives the much-needed thrust towards cutting-edge tech development by reducing the revenue risk to recover costs, while providing a financially attractive return for the private sector,” Chand said.

India’s space economy was pegged at USD 9.6 billion in 2020 and was expected to touch USD 12.8 billion by 2025, according to a report released by the ISpA and EY last year.

Tribune News Service

New Delhi, January 14

Pension and medical facilities to military veterans are a small token of the country’s respect towards the sacrifices and commitment they have made, said Defence Minister Rajnath Singh while addressing veterans at a function in Dehradun on Saturday.

He was speaking on the occasion of the seventh Armed Forces Veterans’ Day.

January 14 is celebrated as the Armed Forces Veterans’ Day, as on this day in 1953, first Indian Commander-in-Chief of the Indian Army Field Marshal KM Cariappa, who led the Indian forces to victory in the 1947 war, retired from service.

Celebrations were held at nine locations, with the Defence Minister presiding over the main function in Dehradun.https://98a793c511d635880af0ced2f2105a49.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html

“Our brave soldiers have made a huge contribution to transforming India’s image across the world to that of a powerful and respectful nation,” he said, assuring the veterans of the government’s support for their welfare.

Singh inaugurated the Shaurya Sthal, a war memorial dedicated to martyred soldiers from Uttarakhand, at Cheer Bagh, Dehradun.

Accompanied by Uttarakhand Chief Minister Pushkar Singh Dhami and Chief of Defence Staff Gen Anil Chauhan, the Defence Minister laid a wreath at the war memorial to pay tributes to the brave soldiers of the state martyred in the service of the nation.

The war memorial consists of seven pillars on which the names of 1,400 martyrs from Uttarakhand have been carved.

In New Delhi, IAF Chief Air Chief Marshal VR Chaudhari, Navy Chief Admiral R Hari Kumar and Army Chief General Manoj Pande attended the function.

Meanwhile, an initiative to promote adventure tourism in border areas of Garhwal Himalayas was launched today as a joint effort of the Indian Army and an organisation of veterans.

Launches ‘soul of steel’ initiative

• Defence Minister Rajnath Singh on Saturday launched ‘Soul of Steel’ initiative
• It seeks to promote high-altitude endurance and adventure in Uttarakhand’s Garhwal Himalayas
• The idea behind the adventure challenge, spearheaded by veterans, is to boost tourism as well

PTI

New Delhi: China has objected to a US diplomat commenting on its border dispute with India, saying the Chinese side is “firmly opposed to such acts that a third country points fingers at the bilateral issue between other two countries out of geopolitical consideration”. Donald Lu, US diplomat, has said “we have not seen China take good faith steps to resolve the border issue”. TNS

THE EXPRESS INDIA NEWS

PTI

New Delhi, January 14

Indian armed forces is highly professional and counted among the best in the world which is a result of the indomitable courage of the veterans and their sacrifices, Army Chief Gen Manoj Pande said Saturday.

Addressing a gathering of ex-servicemen on the occasion of the seventh Armed Forces Veterans Day celebrations here, he asserted that inspired by the contributions of veterans, all the three services of the armed forces are “ready to face any challenge” in a formidable manner.

IAF chief Air Chief Marshal V R Chaudhari and Navy Chief Admiral R Hari Kumar shared the dais with the Army chief during the celebrations held at the Manekshaw Centre here. A large number of veterans drawn from the three wings of the armed forces had also gathered at the venue.

“Today, our armed forces is counted among the best and highly professional forces in the world. This identity (of the forces) is a result of your sacrifices, indomitable courage and hard labour. Inspired by it, all the three services of the armed forces, as a formidable instrument, is ready to face any challenge,” Gen Pande said.

The Navy chief, in his address, said the armed forces of today is a product of the efforts, visionary leadership, aspirations and selfless efforts put in by “each one of our veterans”.

“It is an honour for me to be present here and interact with you all. Today is also an occasion to remember and pay homage to our valiant warriors who dedicated their lives to the nation,” Admiral Kumar said.

He said the Navy would like to assure everybody that it will leave no stone unturned in carrying forward the legacy of the veterans.

Commissioning of India’s first indigenous aircraft carrier INS Vikrant, stealth destroyer INS Mormugao, and a host of other advanced platforms are just a small step in that direction, the Navy chief said.

“We have also inducted the first batch of Agniveers, which also includes women, and that is a bold, transformative step and which will contribute to making the Navy future-proof,” he added.

The IAF chief also extended greetings to the veterans on the occasion.

“From its humble origins, the IAF has carved out a reputation of being a formidable aerospace in the region today. This has been made possible only through the vision, hard work, and selfless service rendered by our veterans over the years,” he said, adding, the “sterling contributions” made by the veterans have always been a guiding force.

In his address, Air Chief Marshal Chaudhari also said that 156 SPARSH service centres have been made operational across the commands of the IAF.

The System for Pension Administration (Raksha) or SPARSH is a web-based system for processing pension claims and crediting the pension directly into the bank accounts of defence pensioners without any external intermediary.

The IAF has taken up the case for obtaining approvals for policy amendments for grant of liberalised family pensions in flying accident cases between January 1996 and September 2009, under the clause of battle inoculation training exercises, he said, adding, so far pension payment orders have been issued for 67 such cases and the air force is determined to issue PPOs for all other cases very soon.

“We would like to reassure our air veterans that the Indian Air Force is fully committed to your wellbeing. The old adage, serving those who will serve, will always be the cornerstone of our endeavours,” he said.

The Army chief also said it is a matter of pride that the veterans of the armed forces are making valuable contributions in various fields, to the progress of the nation.

Gen Pande also extended his greetings on the occasion of Makar Sankranti, Pongal, Bihu and Uttarayan festivals.

Representatives of various ex-servicemen’s organisations also attended the event.

The Armed Forces Veterans Day is celebrated on January 14. It was on this day in 1953 that the first Indian Commander in Chief of the Indian Army—Field Marshal K M Cariappa, who led Indian forces to victory in the 1947 war—formally retired.

Ever since the first Armed Forces Veterans Day was celebrated, it was decided to commemorate this day every year by hosting interactive events in honour of veterans and their families, according to the defence ministry.

This year, Veterans Day is being celebrated at nine locations—Juhunjhunu, Jalandhar, Panagarh, New Delhi, Dehradun, Chennai, Chandigarh, Bhubaneshwar and Mumbai—by the three Service Headquarters.

Secretary, Ex-Servicemen Welfare Department, Defence Ministry, Vijoy Kumar Singh and other senior officials of the ministry also attended the event.

“The government has announced a long-pending demand regarding One Rank One Pension (OROP) for the armed forces’ veterans, and that had to be revised. But there were certain issues, so there were delays. It has been approved by the government in December and the payment of the arrears and other things will start very soon,” he said on the sidelines of the event.

The Union Cabinet, headed by Prime Minister Narendra Modi, has approved the revision of pension of “armed forces pensioners/family pensioners under OROP with effect from July 1, 2019”, the Defence Ministry had said in a statement on December 23.

Pension of the past pensioners would be re-fixed based on an average of minimum and maximum pension of defence forces retirees of the calendar year 2018 in the same rank with the same length of service, it had said.

In his address at the event on Saturday, Vijoy Kumar Singh said for resettlement, the government has a “long-term plan” and that veterans have an opportunity, in areas where there is a lack of workforce.

Efforts are on to get SPARSH data and do geospatial mapping in areas where projects like dedicated corridors, and laying of power lines are being undertaken, he said.

The celebrations also witnessed the release of “Samman” magazine, a yearly journal published by Directorate of Indian Army Veterans covering informative articles and various topics of interest to the veteran community. The Indian Air Force also released the “Vayu Semvedna” magazine on the occasion.

Tribune News Service

New Delhi, January 13

Defence Minister Rajnath Singh on Friday said the armed forces had opportunities for the youth of all castes and religions.

“Muslim girl Sania Mirza will become India’s first female Muslim fighter pilot after the completion of her course. There was a time when women were hardly represented in the defence forces but, today, women are deployed on warships and in extreme areas such as Siachen,” said the minister while addressing a convocation ceremony of a university in Lucknow.

He hailed the success of women in every field, including the defence forces, and said the government believed in providing more and more opportunities to women on a par with men. Army Chief General Manoj Pande had yesterday announced that women would be allowed in the Regiment of Artillery.