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Guest Column Though the Pak army denies its involvement, without its support and that of the ISI no serious attempt can be made by terrorists to infiltrate. It was perhaps worried the Kashmir movement was dying out. Gurmeet Kanwal The Pakistan army has suddenly resorted to ceasefire violations along the LoC and shelling across the International Boundary (IB) in Jammu and Kashmir at a time when it is itself struggling to cope with the tough internal security challenge posed by the Tehrik-i-Taliban Pakistan (TTP), the TNSM and their affiliates in Khyber-Pakhtoonkhwa and FATA. Fifty
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record ‘Poor show on revenue should worry Punjab’ Gagan K Teja talks to Prof (Dr) Tapas K Sen expert on state finances Professor Sen has been a member of the Union Ministry of Finance committee that decides bailout packages for debt-ridden states. Prof (Dr) Tapas K Sen, Professor, National Institute for Public Finance and Policy, New Delhi, is an expert on state finances. He did his PhD from Gokhale Institute of Politics and Economics and has been the officiating director of the institute. He has been a member of the Punjab State Finance Commission and has been an adviser on finances with many states, including Odisha, Rajasthan, Gujarat and Goa. He has also been a member of the Union Ministry of Finance committee which decides bailout packages for debt-stressed states. He has published several articles in reputed international journals and is a visiting professor to the University of Maryland, US, and London School of Economics.
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now perhaps because I am in New York, the effect of seeing the film ‘12 Years a Slave’ is much more powerful than if I were to see it anywhere else. Whilst the film is an indictment of America’s oppression of the blacks, it is also a relief to watch a film like this alongside a racially mixed audience and yet find an intense but reassuring sensitivity towards the subject. In fact, the audience broke into spontaneous applause at the end of the screening, perhaps because at last someone has been brave enough to make a film which clearly demonstrates the true status of blacks in America in the not-so-distant past. Of course, many might argue that despite having a President who has a black lineage (along with his white antecedents) the US remains racist, but it has certainly come a long way from when blacks were called ‘niggers’ and treated worse than animals. The film ‘12 Years a Slave’ is based on a real story written in the mid-19th century by an African- American black Freeman, Solomon Northup, who was also a talented violinist. He lived a comfortable life with his wife and children in New York, till he was duped by two itinerant showmen and persuaded to travel with them to Washington. There he was kidnapped and sold into slavery, eventually working for an extremely cruel owner in Lousiana. Northup tried to escape many times, unsuccessfully. The film explores with an almost clinical precision the brutalities inflicted on him and the other slaves. There are few maudlin moments; it is almost as though the director Steve McQueen (who is no stranger to themes of deprivation, as in his film ‘Hunger’) holds a looking glass to us, demonstrating how easy it is for us to turn into violent and cruel individuals. Sadly our first instinct is not to help victims who might be suffering torment. Often we either join the cruelty or worry about self-preservation. Northup does not shy from the fact that at the farm he was equally guilty of hurting another if it meant his own survival. In fact it is this dark side of all of us that McQueen presents — and quite remarkably. He does it while injecting lyricism into his camerawork. It is a gripping and beautifully shot film. An outstanding feature is the stellar performance from Chiwetel Ejiofor as ‘Northup’, capturing seamlessly his transformation from a well-to-do musician to a slave deprived. And yet because Northup wants to survive we must also understand his sense of loss and anger, often through his uneasy silence. For instance his helplessness at not being able to change the fate of a black girl, Patsey, played by Lupeta Nyong O, who is raped regularly by their violent and half-crazed slave owner Edwin Epps. Patsey becomes a pawn in the war between Epps and his wife — beaten and raped in turn — and even whipped within an inch of her life. This is not a film that one can watch without feeling disturbed, as it has no ‘good’ masters and happy, all singing, all dancing mammies. This is definitely not ‘Gone with the Wind’. In fact, seeing it one wondered when Indian cinema will be able to finally confront the demons that lurk within society. When will we, for example, ever be able to make a film which shows — without frills, and soft-focus lenses — what has actually been done to the Dalits in the past? Are we prepared to face up to the indignities that we have inflicted upon those more vulnerable amongst us? In fact, that is the thought that came to me again and again while watching this film. This is a sensitive recollection of a very difficult past, and it is not as though, as I mentioned, the US is still not racist in many ways. But the fact that this film can get made and be appreciated and that audiences are able to absorb the universal messages it contains is a very important factor. It is not as though slavery does not exist in India. We still have bonded labour in rural areas. In the urban space some shocking examples of domestic slavery, especially of young tribal girls who are falsely lured to towns to work as house help, have recently come to light. Women and children are being trafficked constantly, and whilst slavery might not have been institutionalised we are all guilty of not doing enough to eradicate the disease. Films like this remind us how precious freedom is — and how swiftly it can be snatched away.
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Prof (Dr) Tapas K Sen, Professor, National Institute for Public Finance and Policy, New Delhi, is an expert on state finances. He did his PhD from Gokhale Institute of Politics and Economics and has been the officiating director of the institute. He has been a member of the Punjab State Finance Commission and has been an adviser on finances with many states, including Odisha, Rajasthan, Gujarat and Goa. He has also been a member of the Union Ministry of Finance committee which decides bailout packages for debt-stressed states. He has published several articles in reputed international journals and is a visiting professor to the University of Maryland, US, and London School of Economics. Excerpts: What is the status of finance in Punjab? Punjab must take necessary fiscal steps immediately to avoid the adverse fallout of the ongoing unhealthy state finances on real economic activities in the long run. The largest chunk of fiscal deficit is because of the high level of revenue deficit, mainly due to the low tax-GDPS ratio, which can be raised. The continuous revenue deficit has disturbed the finances of the state government. Punjab has not made satisfactory progress in case of its own tax revenue. It has lost substantially in the central taxes during the last decade. The increase in grants to the state could not compensate the drop in the level of Central taxes. The proportion of capital account expenditure has declined considerably in the overall public expenditure of the state. Punjab has been managing its fiscal deficit by cutting down the capital expenditure which is not in the long-term interest of the state. Its revenue performance was below the national average, both in the case of own tax and non-tax revenues. It must raise the proportion of its tax to state income by at least two percentage points to restore the fiscal situation. Raghuram Rajan panel has suggested new criteria for classification of states’ development. Why was it needed and what are its key features? The main features of the Raghuram Rajan Committee report is its suggestion to eliminate the 'special category' of states, and instead, depend on three criteria for inter se distribution of a given kitty — a fixed share to cater to the minimum administrative responsibilities, a composite indicator of underdevelopment and efficiency as indicated by recent improvement in a truncated version of the composite indicator of underdevelopment. I can’t really say why the new panel was needed, but logically it must be because there was dissatisfaction with the current system of distribution of Central plan and discretionary transfers in some quarters. Moreover, the recent demands from states like Bihar and Odisha to be included in the 'special category' of states might also have something to do with this. What are the limitations of the Gadgil formula currently being used to determine the devolution of funds from the Centre to states? The modified Gadgil formula is not used for determining state shares in all Central transfer. It is essentially meant for only Central transfers for state Plan schemes. It is difficult to provide a critique of the modified Gadgil formula in short, but the main points seem to be that it did not reflect the level of development accurately. Moreover, it was believed to have some discretionary elements, though not large, and there were issues with the 'special category' of states built into it. The government has a policy of giving more money to underdeveloped states. Does this not amount to sending good money after bad money, as these states have squandered earlier resources due to poor governance? Inter-regional equity is a universal objective of intergovernmental transfers dictated by constitutional provisions, judicial pronouncements and policy consensus. This is true of all federal polities in the world. I see no reason to presume that all less developed regions have poor governance by definition — facts do not bear it out. Also, to maximise the utility of the intergovernmental transfers from the national perspective, it is necessary to allocate funds according to development potential and not the current level of development, because the latter is not necessarily a good proxy of the former. So, saying this it is a waste of money is rather rhetorical and therefore, not quite fair. States like Punjab complain they contribute more funds to the Centre and receive less. What can be done to address this? The question has an implicit presumption that even in a federal setup the Central Government should return whatever it collects from a state. I do not see any basis for such a presumption. Rather, the demand of horizontal equity (or inter-regional equity) actually requires that no such thing prevails. And horizontal equity is not just an ethical requirement, it has practical rationale such as maintaining political and economic stability of a federal polity. What do you suggest for debt-stressed states like Punjab? They can’t cut some basic liabilities like salaries and social welfare schemes. A common problem with all fiscally stressed states of India at present — I would specially single out West Bengal and Punjab — is their inability to raise own resources commensurate with their levels of expenditure and their broad revenue base (GSDP). I do not see any way out for Punjab's fiscal problems but for a substantially higher own revenue level, preferably by a couple of percentage points of the GSDP. Expenditure rationalisation and compression would also help, but the fact is that Punjab is not really spending a lot now (as it did 10 years ago). Even with the low capital and developmental expenditures, if it is still having fiscal problems, it is mainly because it is unable to raise its revenues — both tax and non-tax — very much.
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