If the UP government fulfils its farm loan waiver promise, banks are likely to take a hit of Rs 27,420 crore and the scheme will lead to some stress on the state’s fiscal arithmetic, warns a report.
The BJP had in its UP election manifesto promised to waive farmers’ loans if elected to power. The party and its allies won a whopping 325 seats in the 403-member House.
An SBI Research report today said schedule commercial banks together had an outstanding farm credit of Rs 86,241.20 crore in UP with the average ticket size of Rs 1.34 lakh, as of 2016, most of which is to small and marginal farmers.
According to RBI data (2012), 31 per cent of the direct agriculture finance went to marginal and small farmers (landholdings upto 2.5 acre).
“Taking this as a proxy for UP as well, around Rs 27,419.70 crore will have to be waived off in case the farm loan waiver scheme is implemented for the small and marginal farmers, for all banks,” the report said.
As per the Socioeconomic and Caste Census of 2011, 40 per cent of rural UP households are engaged in cultivation. When it comes to landholdings, 92 per cent are marginal and small farmers in the state, according to the 2010-11 Agriculture Census.
A collapse in house prices during the eurozone’s sovereign debt crisis delivered a substantial knock to household wealth, hinting at rising inequality in the continent, according to new figures from the European Central Bank.
It its latest survey of 84,000 households across the single currency area, the ECB found average net wealth in the eurozone fell 10 per cent from 2010 to 2014 compared to the pre-crisis years, while inequality between the richest and poorest also edged up on some measures.
Amid concerns that growing inequality has emboldened populist and eurosceptic forces, the ECB said the overall distribution of wealth in the eurozone was “skewed” towards the richest.
The survey found that the median household – which separates the richer half of the population from the poorer half – owned net wealth worth €104,100 over the four-year period. This compares with €496,000 for the 90th percentile (the household that divides the poorest 90 per cent of the population from the richest 10 per cent).
Declining asset prices – led by property crashes in the likes of Spain and Ireland but spread across the continent from 2010 to 2012 – imposed the biggest hit to wealth in the period. Euro-area citizens are particularly exposed to changes in house prices, as over 80 per cent of household wealth is in “real assets” such as property.
Evidence of higher inequality following the financial crisis has been mixed. Global central banks have however been criticised for stimulus measures that have driven up the price of stocks and bonds through their quantitative easing measures.
One widely-cited measure of wealth inequality, the Gini coefficient, crept up to 68.5 per cent from 68 per cent in the eurozone, “within the margin of measurement error”said the ECB. It also found that the share of wealth concentrated among the top 5 per cent of rich households increased to 37.8 per cent from 37.2 per cent.
Could you survive on just $2.50 a day? According to Compassion International, approximately half of the population of the entire planet currently lives on $2.50 a day or less. Meanwhile, those hoarding wealth at the very top of the global pyramid are rapidly becoming a lot wealthier. Don’t get me wrong – I am a very big believer in working hard and contributing something of value to society, and those that work the hardest and contribute the most should be able to reap the rewards. In this article I am in no way, shape or form criticizing true capitalism, because if true capitalism were actually being practiced all over the planet we would have far, far less poverty today. Instead, our planet is dominated by a heavily socialized debt-based central banking system that systematically transfers wealth from hard working ordinary citizens to the global elite. Those at the very top of the pyramid know that they are impoverishing everyone else, and they very much intend to keep it that way.
Credit Suisse had just released their yearly report on global wealth, and it shows that 45.6 percent of all the wealth in the world is controlled by just 0.7 percent of the people…
As Credit Suisse tantalizingly shows year after year, the number of people who control just shy of a majority of global net worth, or 45.6% of the roughly $255 trillion in household wealth, is declining progressively relative to the total population of the world, and in 2016 the number of people who are worth more than $1 million was just 33 million, roughly 0.7% of the world’s population of adults. On the other end of the pyramid, some 3.5 billion adults had a net worth of less than $10,000, accounting for just about $6 trillion in household wealth.
And since this is a yearly report, we can go back and see how things have changed over time.
The Prime Minister’s Office has been directed by the CIC to respond to an RTI applicant who sought to know when will Rs 15 lakh, as promised by Narendra Modi during 2014 General Elections, be deposited in his account.
The direction came in connection with the plea by one Kanhaiya Lal from Jhalawar district of Rajasthan who had filed an RTI application with the PMO seeking to know the status of his representation to Prime Minister Narendra Modi.
Among other details mentioned in the representation sent to the PMO, Chief Information Commissioner Radha Krishna Mathur noted that Lal had also asked the top office that “at the time of election, it was announced that black money will be brought back to India and Rs 15 lakh will be deposited in the account of each poor, the complainant wants to know what happened to that.”
Citing the plea of Lal, Mathur noted, “the complainant wants an answer from the Hon’ble Prime Minister that it was announced during the election that corruption will be removed from the country but it has ‘increased to 90 per cent’ and wants to know when the new law will be made for the removal of corruption from the country.”
The World Bank is set to appoint Paul Romer, a longtime advocate of the economic power of human capital and student of urbanisation, as its new chief economist, bringing arguably the highest-profile name to the role since Nobel winner Joseph Stiglitz.
Mr Romer, a US economist who teaches at New York University, is expected to replace Kaushik Basu later this year. A spokesman for the bank would not confirm Mr Romer’s appointment but others within the institution did. His name is expected to be presented to the World Bank’s board as soon as Monday and announced publicly later in the week.
The move would put an important and occasionally provocative voice in economics in charge of the bank’s research department.
His 1990 paper arguing the case for “endogenous growth” — the theory that knowledge and innovation can spur growth — is considered one of the most influential papers in economics of the past 30 years.
“It’s an impressive choice,” said Scott Morris, a former US Treasury official who follows the World Bank for the Centre for Global Development. “It’s more in the [Larry] Summers and Stiglitz mold of picking an American superstar economist.”
A new study finds that roughly 26 million Americans remain “too poor to shop”. The study, performed by America’s Research Group, found that about 26 million Americans work on average two or three jobs at a time which, when added together, nets just shy of $30,000 in annual income. All while supporting anywhere from two to four children.
The chairman of ARG, Mr. Britt Beemer, said in an interview with the NY Post that he first started looking into data when he was tracking a different indicator. Beemer first started tracking a group and surveying roughly 15,000 people to determine who had not finished Christmas shopping in 2014. During that year, the number was 21 percent but recently ran as high as 29%. From there Beemer decided to analyze the data further and learned American’s are seeing increasing numbers of fellow citizens who are simply just too poor to shop.
Beemer told the Post: “The poorest Americans have stopped shopping, except for necessities” and “It’s scary when you start to see things that you’ve never seen before”…”People are so pessimistic about their future”
Just this past April we wrote: “most Americans’ savings continue to decline, and millions of US households not only don’t have any money left over to save away, but are forced to resort to credit to fund day to day expenses.”
Within the framework of China’s five-year plan, which outlines the country’s economic development goals for the 2016-2020 period, Beijing plans to improve the prosperity of some 70 million Chinese nationals, whose wealth is below the poverty line, according to the government data.
According to the People’s Daily, money allocated by the ADBC are expected to fund education, infrastructure construction in the rural areas, resettlement programs, support corn farming and tourism.
The newspaper added that the proposed measures could improve the wealth status of the poorest citizens of China.
The ADBC is China’s bank which aims at the development of the country’s rural areas and agriculture by means of raising and allocation of special funds to support the sector, as well as agriculture-related business operations in line with Chinese legislation, according to the bank’s website.
India needs to spend $61.11 billion a year, or 3.77% of its gross domestic product, to tackle the alarming levels of extreme poverty and rural distress and, simultaneously, beef up the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to provide guaranteed jobs for the rural poor, International Labour Organization (ILO) director-general Guy Ryder said on Wednesday.
Over 230 million people live below what is called the extreme poverty level, with a daily income of less than $1.90, while 680 million survive below the moderate poverty level of $3.10 a day, in terms of purchasing power parity.
To push people in extreme poverty to moderate levels, India will have to scale up its expenditure on various job generation programmes to the tune of $61.11 billion a year.
“The MGNREGS has had an emblematic value in addressing extreme poverty and needs to be strengthened by the government,” Ryder said. Clearly, the current government needs to continue with the scheme to make a dent in extreme poverty, the ILO director-general said.
MGNREGS was introduced by the previous United Progressive Alliance government in 2005.Read More
Farmers may rejoice. The government has finally acknowledged that farmers are part of India, that the farm sector faces acute distress, and that farmers need a helping hand. That is something which many commentators—especially Mr Ashok Gulati—have been saying for many months.
Farmers had taken note of the BJP’s failure to keep its election promise of offering a Minimum Support Price (MSP) of cost + 50%. I had pointed out that the increases in MSP in 2015-16 were paltry. Members of Parliament were aghast when Prime Minister Modi declared his contempt for MGNREGA that, according to him, was “a monument to the failure of the Congress governments”. Critics warned the government that the allocation to MGNREGA was inadequate. Surveys show that farm wages have risen only marginally in 2015-16 adding to the distress.
While the Prime Minister spoke often, and eloquently, on FDI, Make in India, and ease of doing business, he paid scant attention to the agriculture sector, leaving it, presumably, to the minister of agriculture. The latter, however, was neither seen nor heard and, after nearly 21 months in office, remains largely unknown. (He could take a few lessons from the minister of human resource development who has acquired a cult status among the ‘nationalists and patriots’, if not among the students and teachers.)
As a result, the label of ‘suit-boot ki sarkar’ stuck, and something had to be done. I suspect that is how the idea of a ‘pro-farmer, pro-rural India budget’ was born. Whatever be the motivation, I welcome the government’s move to address the problems of the agricultural sector.
I took the night train to Delhi to participate in budget-day discussions and my co-passenger, who boarded the train in ravaged Punjab, asked me a simple question: “50 farmers are committing suicide everyday; will the budget end farmer suicides?” My answer was — and still is — “No.” The Union budget is just the government’s bookkeeping exercise to balance revenue and expenditure. It is not the policy document it is projected to be.
Central budget allocations for agriculture are far less significant than the collective budgets of the states because agriculture is a state subject. While giving Aadhaar legal sanctity and linking it to welfare programmes is Parliament’s prerogative, it is in the states that implementation will actually take place and where every sharecropper and tenant’s name has to be recorded in the land records. These — and not the budget — will be the tipping points to achieving transformative rural change. The time for universally applicable, pan-India policy has passed. Less than 100 districts have 80 per cent of India’s poor and most of these are drought-prone. Funding has to be structured keeping this in mind.