The Times of India | Happiness from subsidy: It’s complicated by factors such as neighbour’s envy

I am a relatively poor man. Govt does a lot for me. Or at least in my name. In Bengaluru, for example, govt has kept the price of water low, so that I can afford it. Though it costs them roughly Rs 100 a kilolitre to provide, they charge everybody only about Rs 10 and give a subsidy to cover the rest. Honourable intentions, no doubt, for which I am sincerely grateful. What hurts me a little bit is that my supremely rich neighbours also use this subsidy in large amounts. To wash their grand cars and water their sprawling lawns. Read the full article here.

Mint | India cannot solve its water crisis without proper pricing

A few years ago, the mayor of a Karnataka town asked me how she could prevent people from wastefully washing their yards, walls and vehicles with water from the municipal water supply. She told me she had organized awareness campaigns, promoted conservation efforts and even personally remonstrated with citizens, but to little avail. When I asked her how much they paid for the water, she replied that the monthly charge was a few tens of rupees per connection, but this was not strictly enforced. She was taken aback when I told her that was why her conservation efforts had been unsuccessful. Read the full article here.

Times of India | Piketty’s wrong again. We should be happy India is creating billionaires

To a man with a hammer, everything looks like a nail. Thomas Piketty, economist and writer of big fat books, believes that economic inequality is a problem and higher taxes on the rich are the solution. To this end, he has enlisted social scientists from around the world to cast inequality as a global problem. It’s a little like European communists who, a century ago, zeroed in on class struggle as the big problem and went around the world looking for it. Read the full article here.

Moneycontrol | Supreme Court’s push to fix medical rates is unjustified and counterproductive

In the Indian blockbuster series of judicial interventions in policymaking, the latest episode on fixing the rates of medical services charged by hospitals in the country dropped last week. The Supreme Court of India, overcome by the pressing concerns of rising healthcare costs and disparities in costs of treatments availed at public and private hospitals, heard a public interest litigation (PIL) filed by the NGO ‘Veterans Forum for Transparency in Public Life’. In the characteristic style of PILs, the Court directed the Union Government to find a way to fix the price bands for all medical procedures and treatments offered by hospitals in the country and report back in 6 weeks. Or else, the Court threatened to impose the medical rates charged under the Central Government Health Scheme (CGHS) on all hospitals as an interim measure. Hospital stocks responded promptly by shedding more than a few points. Read the full article here.

Moneycontrol | Bangalore Water Crisis: Marginal pricing of water, subsidies to poor may curb water woes

Barely a few days into summer and there are already reports of Bangalore facing a severe water crisis. Groundwater is depleting and borewells are running dry. The price charged by private tankers have doubled. Some apartment complexes and RWAs are already rationing water and cutting off water supply to households for a few hours in the daytime. Meanwhile, the state government has decided to nationalise all private water tankers in the city. This is a complex problem with multiple causal factors – geography (Bangalore is situated far away from any naturally occurring water body), weather (weak southwest monsoons), and mismanagement. Mismanagement takes the shape of encroachment and building property on lake beds, failure to enforce rainwater harvesting systems, not providing piped water supply to peripheral areas, and unabated exploitation of ground water. Read the full article here.

Moneycontrol | Multi-Contributor Social Security: Time to reimagine social security contributions

It was recently in the news that the Employee State Insurance Corporation (ESIC) is considering extending its coverage to unorganised and gig sector workers. On July 24, 2023, Rajasthan became the first Indian state to pass a legislation aimed at providing social security benefits to gig workers. These are part of various attempts that governments have been making to extend social security beyond just the formal sector. Social security in India faces two main problems – coverage and financing. It covers mainly the organised sector, leaving out gig workers, unorganised sector workers, etc. Even within the organised sector, around 53 percent do not have any social security benefits, as per the Periodic Labour Force Survey (PLFS) report. In fact, more than 90 percent of India’s workforce is engaged in informal employment. Even the National Pension System (NPS), theoretically open to all, has very poor coverage – only around 6.2 crore subscribers as of March 2023. Read the full article here.

Deccan Herald | States and tax shares: The fight for fiscal space

As southern states demand higher share in devolution of taxes, what can work in Karnataka's favour. Read the full article here.

Times of India | Why resource distribution is creating a North-South divide

Over the last few days, there have been calls to form an economic alliance of southern states for equal resource distribution. Chief ministers from states such as Karnataka, Kerala, and Tamil Nadu held demonstrations in New Delhi to express their discontent. The Karnataka chief minister claimed that the current system for distributing resources among states puts states like Karnataka at a disadvantage while favouring states in the North with uncontrolled population growth. While the states’ concerns are valid, this focus on the horizontal distribution of tax resources is misplaced. Instead, the states should advocate for an enlargement of the divisible pool by calling for a curtailment in Union cesses and surcharges. Here’s why: Read the full article here.

Moneycontrol | Karnataka’s plan to fix prices for Uber-Ola cabs is going to boomerang badly

There’s ridiculous and then, there’s this! In a long list of antagonist policy decisions taken against cab-aggregators by Indian state governments, the latest one by the Karnataka government takes the cake. In a policy that plans to emulate the pricing structure of the city’s autos, the Karnataka government plans to fix prices for all taxis in the state. In the new fare structure, all taxis will be categorised into three segments based on the purchase value of the vehicle and the prices will be fixed for each segment. Read the full article here.

Moneycontrol | Why Budget 2024 will rank as a good budget

Ceteris paribus, a boring budget is a good budget and this one definitely fits the bill. The impressive part was the resistance on part of the government to introduce any big, populist measures aimed at strengthening their position before the upcoming elections. As the name suggests, this is an interim plan until the real deal in July 2024, which the Finance Minister seemed very confident of being the one to present. The interim budget speech by the Finance Minister for 2024-25 sounded largely like a report card of past achievements rather than a plan proposal for the upcoming year. Read the full article here.

Mint | We need to build social capital for a better quality of urban life

Five years after Bengaluru’s Church Street received a facelift, it is struggling with dumped garbage, broken pavements, damaged street lights, brazen illegal parking and inadequate maintenance in general. It has been painful to observe this deterioration right outside my office. At this point, you are perhaps rolling your eyes and saying “what’s new?", since we all know about the corruption in local government, incompetence of city authorities and the ‘lack of civic sense’ among our people. Read the full article here.

Times of India | Republic Day reminder: Let’s reclaim the right to economic freedom

Let’s get the basics out of the way — we celebrate the Republic because it prohibits any majority from running roughshod based on its numerical strength. The Constitution limits the power of governments and groups to protect the minority of One, i.e. every individual. The Republic grants fundamental rights to individuals to live, trade, work and protest peacefully. Yet, among these freedoms, the one that governments most readily and frequently trample upon — with little or no opposition—is the right to economic freedom. We can endlessly debate the current state of political or religious freedom and the decline of the freedom of expression, and that is partly the point — there is at least a debate. Read the full article here.

Mint | Eating together could strengthen our national consciousness

You might not have noticed it, but it is extremely difficult to find a restaurant in India that can seat a dozen people around a single round table. If you have more than six diners, you have to ask the restaurant to join two or more tables to create a long rectangle. While this allows several colleagues or family members to technically sit at the same table, conversation and sharing of food is limited to groups of four or five people sitting next to each other. Compared to many East Asian countries where big round tables are commonplace in restaurants, communal dining in India mostly caters to rather small groups. Read the full article here.

Moneycontrol | Global Economy 2024: Positives in macro outlook outweighing uncertainties, India in a position to dream big

Macroeconomists were created to make weather forecasters gain credibility” goes one joke. “Economists have successfully predicted 9 out of the last 5 recessions” is another dig at the predictive ability of the macroeconomics discipline. Beyond the humour, it points to the obvious complexity of interaction between hundreds of related variables in a complicated geopolitical scenario. Despite the obvious risks involved in speculating about the future in the economic domain, many brave economists undertake foolhardy tasks of making year-end projections and this is one such attempt. Read the full article here.

Mint | Social capital can help close a wide MSME gap

In his inaugural address to the first Industrial Conference in Pune in 1890, Mahadev Govind Ranade noted that “the industry of the country is parched up for want of Capital" because after land revenue, a considerable portion of gross savings was used to hoard bullion. The lack of institutional arrangements for industrial finance meant that capital was locked up in unproductive assets and not available to India’s entrepreneurs. A century later, the German economic historian Dietmar Rothermund came to a similar conclusion. Lacking financial institutions, Indian surpluses in the second half of the 19th century went into gold and land. Meiji Japan, in contrast, was able to “gather small savings and to channel them into the mainstream of the national economy," enabling the country’s industrialization. Read the full article here.

Mint | A strong social capital is a prerequisite for cohesive climate action

I am likely to get into trouble with many of my friends for saying this, but I think the world is making extraordinary progress towards addressing climate change. It might not be fast enough to achieve emissions and temperature targets that follow from the IPCC’s studies, but in the past 15 years, we have seen first a scientific consensus and then a global political consensus on the problem definition, followed by convergence on approaches and firm international agreements on targets and timelines. Climate activists remain unsatisfied, but for students of international relations, this kind of progress is unprecedented, not least at a time when the world lacks a stable order, technological change is causing social upheavals everywhere and hundreds of millions of people around the world have entered the middle class. Regardless of how its outcomes are judged, the mere fact that CoP-28 is happening at all is remarkable. Read the full article here.

Moneycontrol | Reservation For Locals: Whither jobs, economic freedoms, and economic unity?

It is both easy and tempting to dismiss the entire saga of the reservation of jobs for the locals in Haryana as one of misplaced policy action duly corrected by the judiciary. It could even be tempting to celebrate the strength of the checks and balances present in the Indian Republic. Briefly, to set the context, the Haryana government, acting on the election promise of the current Deputy Chief Minister Dushyant Chautala, passed the Haryana State Employment of Local Candidates Act, which came into effect in January 2022. The law mandates that all private employers in the state must reserve three-fourth of jobs paying less than Rs 30,000 a month for local residents. Read the full article here.

The Free Press Journal | Trump’s dangerous rhetoric as polls draw near

Donald Trump is putting American democratic institutions and processes under severe stress, more than what he did as President between 2017 and 2020 — be it the judiciary, law enforcement or the legislature. Just this past week, a lower court judge in the state of Colorado said that the former occupant of the White House engaged in the insurrection of January 6, 2021, but that he should remain on the ballot for 2024, a move Trump’s opponents say is unconstitutional. Trump is already at the centre of series of federal and state level lawsuits on serious charges under several laws that include, among others, one that is used to try underworld criminals and large-scale white-collar crimes. Read the full article here.

Times of India | Let’s not go crackers over bans every Diwali. Leave fireworks policy to states

The Supreme Court has done well to refuse a blanket ban on all firecrackers in India. Its recent order reminding states to prohibit the manufacture and sale of joined firecrackers and those containing barium is a prudent one. Yet in the absence of a sensible firecracker policy, it is likely that approaching the Supreme Court for a ban will become an annual pre-Diwali ritual. How should India govern firecrackers? Read the full article here.

The Free Press Journal | 2024 Polls: AI Fake News Will Damage Democracy Forever

I am calling it now. In 2024, when several countries around the world — including India and the US — are scheduled to go to the polls, disinformation and fake news generated by artificial intelligence software will bring democratic systems to their knees. The damage is going to be so severe that, in the worst-case scenario, we will have reached a point of no return. Even if we somehow manage to halt the fake news juggernaut (unlikely, but let’s say we do), it will take decades to go back to any kind of normalcy. Read the full article here.