ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Y Venugopal ReddySubscribe to Y Venugopal Reddy

Fourteenth Finance Commission

In preparation of its report, the Fourteenth Finance Commission was guided by the terms of reference; the approach of the previous finance commissions; the prevailing macroeconomic situation in the country; and the evolving circumstances relevant to the ToR. The FFC learnt that there is much to be gained by adhering to the letter and spirit of the Constitution, and listen to and learn from stakeholders so that an appreciation can be had of the current problems. Further, the legitimacy of the finance commission in advocating policy agendas and assigning priorities should be kept in view.

A Tale of Two Commissions and the Missing Links

There have been several missing links in the recent debate on the future of the Planning and Finance Commissions. First, it is not clear whether the debate was more about the future of planning or about the future of the Planning Commission. How do the proposals for institutional reform fix the problems relating to the process of planning and implementation? Second, there are emerging new realities of economic management that the new institution has to grasp and address, requiring new skills and, perhaps, a new set of instruments. Third, both the commissions operate in a multilevel context, namely, union, states and local bodies. Institutional reform has to be contextualised to multilevel processes.

Microfinance Industry in India: Some Thoughts

The proposed legislation for regulation of the for-profit microfinance sector has a number of problems. It makes the Reserve Bank of India the sole regulator of the sector when this is the domain of the states rather than the central bank. The proposal will permit a back-door entry for the MFIs to collect savings which is not a healthy idea. Any proposal should be drawn on the experience of the states and the for-profit MFIs should be regulated as moneylenders.

Prospects and Policy Challenges in A Comment on the Risksthe Twelfth Plan:

The article "Prospects and Policy Challenges in the Twelfth Plan" by Montek S Ahluwalia (EPW, 21 May 2011) offers a comprehensive overview of the subject, but what is missing is a discussion of the risks to the economy. An enumeration and discussion of the many risks that must be taken into account while framing the Twelfth Plan. In the second article the author responds to these comments.

Red Herring of Privatisation

Red Herring of Privatisation T L Sankar Y Venugopal Reddy RAMASWAMY R lYER's review of the book Privatisation: Diversificttion of Ownership of Public Enterprises, edited by us (October 7, 1989) calls for certain clarifications.
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