The document discusses several factors contributing to rising inflation and prices in India, and proposes some solutions. It identifies increased government spending, a rise in global oil prices, agricultural policies, and increased foreign investment as causes of higher prices. To control inflation, the document recommends reducing excess money supply by increasing imports, cutting wasteful spending, and improving policy to incentivize farmers to increase production. It also suggests simplifying and making the tax system more equitable. Overall the document provides an analysis of inflation drivers and potential policy responses to contain prices rises while still promoting growth.

1. MONDAY, MARCH 28, 2011 DAILY EXCELSIOR, JAMMU
daily
Excelsior Inflation and price rise Climate change By Dr Bharat Jhunjhunwala Departments. Confidential sur- increase import tax so as to make ment. Foreign investors have
By Jeet Dogra agreements between the key con-
uman induced climate tributors to this problem. The
Of discrimination T
Established 1965
H he most pressing issue in
minds of the people is that
of price rise. First reason
for the price rise is increase in
veys can be got done regarding
the efficiency and integrity of the
officials.
Historically the Government
it even more costly and reduce its
consumption. The resulting
increase in prices can be nullified
by a reduction in taxes on other
made large purchases in our
share markets in the last two
years. The Sensex has risen from
8k to 20k. Foreign investors have
change is confronting our
planet with its gravest
peril ever, threatening widespread
phenomenon of human induced
climate change was formally rec-
ognized as a global concern by
the United Nations at the UN
extinction of species and destruc-
government expenditures during has cut capital expenditures to commodities. For example, an brought in huge amounts of Conference on Environment and
tion of habitats. Our insatiable
contain the fiscal deficit. The fis- increase in import tax of Rs 100 money into the country to make
and walkouts the last three years. Expenditures
had been rightly increased to
shield the economy from the
cal deficit is total of revenue and
capital accounts. The Reserve
crores on oil can be made along
with a reduction of Rs 200 crores
these purchases. The pressure is
increasing in the domestic econ-
hunger for development, fueled by
the extensive consumption of nat-
ural resources such as forests, fos-
Development (UNCED), Rio de
Janeiro, in 1992. The United
Nations Framework Convention
U
proars, sit down strikes, pandemonium and walk Bank has to print notes and pro- in taxes on textiles. This will omy just as in the pressure cook-
global economic slowdown. sil fuels, rivers and land has dis- on Climate Change (UNFCCC),
outs have become an everyday scene in the leg- vide to the Government to meet bring down the overall prices er. This increase in pressure is the climate change arm of United
These expenditures must now be charged enormous quantities of
islative organs of the country be it the parliament scaled back because the global expenditures that are in excess of while safeguarding us against good because it helps in econom- Nations, emerged as a conse-
greenhouse gases into the atmos-
or state legislative assemblies. Peoples' representa- economy is somewhat stable. income. Circulation of these future increases in prices by ic growth. However, this also phere, causing a progressive rise quence of the Earth Summit in
tives are gradually adopting street politics tactics inside But the economy has gotten excess notes puts pressure on the securing a reduction in consump- leads to an increase in prices. in temperatures after the industrial 1992. It was the first agreement
the assemblies to bring home their point of interests. Is accustomed to the stimulus just prices. Too many notes begin tion of oil. The solution is to bleed out the period. The impacts of climate between countries across the
as the athlete gets accustomed to chasing the few goods that are The third source of price rise incoming money by increasing change are already being wit- world to tackle the climate
it unavoidable for our legislators to run the affairs of the change problem. To achieve
steroids. However, withdrawal of available in the market. Control is from agricultural produce. It is imports. Say, foreign investors nessed everywhere and will grad-
state by creating mutual mistrust and by trading accusa- of inflation requires that the necessary to increase production have brought in Rs 100 crores. quantifiable emission reductions,
the stimulus is likely to slow ually begin to worsen. Ironically,
tions and counter accusations? There are occasions down our growth rate. Challenge Reserve Bank prints fewer notes. to bring these prices down. The This money can be used to the signatory countries of the
despite bearing witness to the var-
and instances when our parliament turns into a fish is to reduce the expenditures so This, in turn, requires that the government policies, unfortu- import fertilizers, steel, comput- ious indications of climate change UNFCCC, adopted the Kyoto
market and MPs clash and even come to blows inside that inflation can be contained Government expenditures are nately, are in the opposite direc- ers and other materials. The such as rising sea levels, increase Protocol in 1997 at Kyoto, Japan.
the parliament leaving the speaker puzzled and amused but do it in a way that growth rate cut. But it is difficult to cut rev- tion. The government bans money coming in will go out in frequency of extreme weather The Protocol finally entered into
is not affected. This can be done enue expenditures that consist of exports of agricultural items smoothly without creating events and change in precipitation force in Montreal, on 16th
what he or she should do. February 2005 with the ratifica-
by improving the quality of gov- salaries, interest payments and when global prices are high in unnecessary disturbance in our patterns, the world is still a fair
The state assembly, too, has accepted inspiration tion of Russia accounting for
ernment expenditures. Leakages the like. In consequence, the order to prevent an increase in economy. The puncture maker distance away from mitigating cli-
from the parliament and is going along same lines. must be reduced, not the produc- Government cuts capital expen- domestic prices. This deprives leaks out the excess air from the mate change. The scientific evi- 55% of GHG emissions.
Assembly is a place of decent debate carried out with tive component of expenditures. ditures like investments in roads. the farmers of profiting from the tyre. Similarly, the Government dence now clearly indicates that Secondary to the Kyoto and
full and conscientious responsibility and in the interests The Reserve Bank has recent- This cut is partly compensated high global prices. On the other must remove excess money from climate change is a serious and UNFCCC process, are G8 and
by increase in private invest- hand, the government imports the economy. The Finance urgent issue. It is a very complex other initiatives. While the
of the people of the state. These debates are not meant ly warned that the revenue deficit
of the government is reaching ments in infrastructure. agricultural items when global Minister must reduce import issue with numerous social, envi- UNFCCC and its Kyoto Protocol
to score personal victories or float vendettas. More are responsible for administration
dangerous proportions. The However, private investment is prices are low and domestic duties in this direction. ronmental and economic parame-
often than not, speeches delivered in the assembly on and implementation of GHG
receipts of the government have mainly concentrated in the met- prices are high. This, again, pre- The Government is trying to ters and implications and is thus
important issues are exemplary in terms of wisdom, been buoyant in the past years, in ros. There is a need, therefore, vents the farmers from profiting simplify the tax regime. Most often difficult to comprehend (Green House Gasses) emission
eloquence and style; Great speeches inspire great for maintaining government from the high domestic prices. State Governments have adopted fully. To understand the climate reduction processes, the United
part, because of one time capital
hopes and confidence and raise nation's stature in the system and ultimately predict Nations also evaluates the risk of
receipts from Spectrum auctions. investment in infrastructure of This policy is beneficial in the similar VAT rates. Central Sales
changes in global climate, greater climate change, attempts to
eyes of the people and the world at large. But alas These receipts have been used to small towns and rural areas. So short run. Spikes in prices are Tax has been reduced and is like-
ascertain its impacts and explores
apart from demonstrating mean mentality and scurvy increase salary payments and here is the problem: Control of controlled. But this is wholly ly to be abolished. A new Direct collaboration is required between
modelers, empiricists and policy mechanisms for mitigation and
mindset, many of our legislators shamefully betray other facilities of government inflation requires that govern- harmful in the long run. The Tax Code is in the making to sim-
makers. Greater emphasis on adaptation through its
employees. It is seen that a person ment capital expenditures be cut; farmers have little incentive to plify income tax. These steps are Intergovernmental Panel on
communal, narrow-minded and parochial tendencies but long term growth requires increase production in absence of in the right direction as far as effi- impact scenarios at the regional
who has won a lottery often Climate Change (IPCC), estab-
that deepen the social divide. What kind of democratic quickly increases his expendi- that capital expenditures in small high prices. This leads to the ciency of the economy is con- level is also needed, if society is
truly to "think globally" and "act lished in 1988. The IPCC is a col-
culture is emerging from the law making organ of the tures. He buys an air-conditioner towns be maintained. This, long term increase in prices that cerned. But this policy is iniqui-
locally". lection of 2,500 leading scientists
state is the question everybody asks. The opposition is and other equipment. The income again, can be done by improving we are witnessing lately. This tous. It is incorrect to tax an air- and scholars that operates under
from the lottery does not last and the quality of government expen- policy is like putting the crying conditioner costing Rs 50,000 During the past 150 years, the
reported to have created a scene and walked out of the the UNEP (United Nations
the poor fellow is unable to pay ditures. hungry child to sleep by giving and ceiling fan costing Rs 700 at global average surface tempera-
house charging the government of diverting funds to tures have increased by about Environment Programme) and
the electricity bills. Similar has The second cause of increase him opium. The Government the same rate. It is incorrect to WMO (World Meteorological
Jammu region while these were initially meant for 0.76°C. In addition to warming up
happened with government in prices is the increase in global must either wholly integrate the impose tax on cloth made from Organization) and bases its
Kashmir. The issue of diversion of funds from one expenditures. These have been prices of fuel oil. The impact of domestic market with global automatic power looms and of the Earth's surface, there have
been increased incidences of heat assessment mainly on peer
region to another is a long standing complaint of increased on the strength of one this is widespread due its use in markets or wholly delink them. handlooms at the same rate. It is reviewed scientific research. The
Jammu. The complaint has been going on from year to transport. Moreover, power In both cases the farmers will necessary to simplify the tax waves; accelerated melting of
time capital receipts. Now rev- IPCC produces technical and
plants such as Dabhol are based benefit and try to increase pro- regime while maintaining lower continental glaciers and polar ice
year and from regime to regime. But no government enue expenditures have increased
caps; rise in sea level of up to 20 special reports on climate and the
ever tried to address the issue with all seriousness and but receipts are lagging behind. on fossil fuels. Factories burn duction. Of course, it will be bet- rates of taxes on items of general
cm; heavy rainfall in some
find a permanent solution to the complaint. Many a This problem too has to be dealt much oil in diesel generators. ter to delink domestic markets so consumption and on items made
regions, resulting in frequent
by improving the quality of rev- The oil prices are likely to move that our food security is safe- with labour-intensive methods of
time, Jammu region legislators have raised slogans in floods; reduced rains in other
enue expenditures. An external up in the coming years. The only guarded. production. The reader may
assemblies and staged walkouts demanding redress of regions of the world, resulting in
audit by independent auditors can way to deal with this is to reduce The fourth source of price assess the budget on the above severe drought. The greenhouse
their grievance of discrimination. It is a fact that the be got done of the Government consumption of oil. Solution is to rise is increase in foreign invest- parameters. gases act like a blanket, prevent-
three regions of the state present a heterogeneous pic- ing much of the heat reflected by
ture in terms of geography, topography, language, cul-
ture and life style. Obviously their needs, too, vary in
many ways. Accepting that allocation of funds is made
Wikileaks exposures good for democratic polity the earth's surface from escaping
directly into space. By slowing the
release of cooling radiation, these
By Nantoo Banerjee institutions and establishments crats and also of their mentors South Block in the office of the gases warm the Earth's surface. First Assessment Report of the
on the basis of a rational formula keeping in mind the and those at the helm. They give and patrons in the government or late Prime Minister Rajiv IPCC in 1991 was significant in
hy should anyone, While this is a natural process that
requirements and capabilities of all the three regions,
yet the complaint of Jammu region has been persisting
from year to year. At a number of times, Jammu legis-
lators sitting on opposition benches have produced
W leave alone the Prime
Minister or for that
matter the head of the govern-
a mental shock to those who still
have faith in public institutions.
Whatever such leaks may be
worth, it is simply unfair to
outside involved in such
deplorable acts.
One of the most disturbing
information which became pub-
Gandhi. His cozy equation with
the successive Indian and US
governments and his pro-
Western views on reform are
is essential to life on Earth, the
trouble starts when the concentra-
tion of these Greenhouse gases in
the Earth's atmosphere increases.
establishing the UNFCCC in
1992. Since then, the IPCC has
been publishing an assessment
report every 5-6 years, the latest
ment of a country, resign from published in April 2007.
documentary and factual evidence as well. There must the job on the basis of some pri- demand Prime Minister lic knowledge is the latest round well known. No economist had The result is an increase in the
Manmohan Singh's resignation of Wikileaks' expose concerning ever survived this long in the Earth's temperature, also known In the conclusion segment,
be a reason why successive governments did not vate and confidential third-party following are the things we can
wire-chats, involving foreign just on the basis of WikiLeaks the high-profile government government and enjoyed so as - Global Warming.
agree to introduce a mechanism in consultation with exposure of 'cash-for-MPs' to economist, policy maker and much power and authority as Global Warming is the gradual do in your daily life to reduce the
governments, diplomats, military stress on environment:
Jammu and Ladakh legislators that would regulate save his government from the bureaucrat, Montek Singh Ahluwalia does despite the fact increase of the average tempera-
brass or secret agents and their * Switching to public transporta-
proper allotment and utilization of funds to all the three local recruits? Such cable-talks no-confidence motion raised by Ahluwalia, and seasoned that other more eminent and ture of Earth's atmosphere and
oceans which can contribute to tion or resorting to carpooling,
regions. Unless the government has to hide something are not only unauthorized, but the Opposition in Parliament Congress party satrap, Pranab internationally acclaimed econ- walking or using a bicycle
from the people, there seems no reason to let the issue way back in July, 2008, follow- Mukherjee. The Wiki cable omists such as V K R V Rao, changes in global climate patterns.
also officially unclaimed. They when we can.
ing the withdrawal of Left sup- clearly 'exposed' Ahluwalia, the Sukhamoy Chakraborty, I G Global warming could have disas-
hang fire all these decades of recent history. If the PDP can't be easily substantiated * Always purchase energy effi-
Patel, Suresh Tendulkar, Amiya trous effects on the environment
wants clarification in the case of diversion to Jammu of before a court of law. Some of cient household appliances.
thirty crores of rupees provided by the CRF for the correspondences tracked are WikiLeaks exposures have Bagchi, Prabhat Patnaik, D T like polar ice melts, changes in
amount and pattern of rainfall, sea * Washing clothes in cold water
dated as well referring to not-so- Lakhdawala, P. Brahmananda, instead of hot water and drying
Kashmir, it has a case to pursue. But then let all com- recent events or situations. This covered wide range of areas from Amaresh Tripathi , K N Raj and level rise, frequent floods and
them outside in the fresh air
plaints of discrimination against Jammu be investigat- Arjun Sengupta, managed only droughts, hurricanes and
ed into and disposed off properly. Who knows how
makes WikiLeaks appear more
like interesting gossips or some-
defence to diplomacy, finance to limited association with the
typhoons. It would cause large- and sunlight.
* Maintain our refrigerator and
scale species extinction and have
many skeletons will tumble out of the cupboard. The times as 'weak leaks' for those
involved. To those embarrassed,
drug running, and commercial administration. This unshakable
image of Ahluwalia makes him
serious impacts on human lives freezer at the right tempera-
ture.
fact of the matter is that the accusation of diversion of such as freshwater availability,
funds and discrimination against Kashmir should have WikiLeaks exposures are seen as intelligence to political espionage. vulnerable to pressure from
those external entities always
agricultural yields and increases in * Avoid the unnecessary use of
air conditioning systems.
a big nuisance. To others, they the spatial and quantitative ranges
been responded to by Jammu legislators. It is they who provide a rare glimpse to the They are like modern chemical aiming at effective networking * Unplug electrical appliances
are equipped with authentic information on the subject. of disease vectors as well as on
thoughts and behavior of so- to carry through their political, economic infrastructure such as when not in use.
But why did not Jammu legislators now partners in called responsible top officials warfare targeted at the general diplomatic and economic agen- energy, transport and industry. * Switch over to energy saver
power-sharing respond to the oppositions accusa- and operatives on highly sensi- da in India. Global warming can occur from a bulbs and keep bulbs dust-free.
tions? The answer is simple. Either they are incapable tive issues and secret information public to psyche them or to ignite The denial of WikiLeaks variety of causes, both natural and * Use natural lighting features to
gathering about which the public exposures by the persons or reduce the need for artificial
of understanding the niceties of the issue or they are
or even the concerned govern- their sense of distrust against institutions involved or named
human induced. Volcanic erup-
tions, changes in the earth's orbit lights and turn off all unneeded
party to the policy of discrimination. We would like to lights.
tell the legislators frankly that sitting on dharna or walk-
ment or governments may never
have any specific knowledge.
institutions and establishments does not necessarily establish
their uselessness. The US envoy
and earth's orientation toward the
sun are some of the natural causes * Use vessels of suitable size
ing out of the assembly hall are all gimmicks and will There is little untruthful and those at the helm. in Mexico, Carlos Pascual, of Global Warming. while cooking.
not carry us anywhere. They must impress upon the about those private and confiden- resigned after a WikiLeaks Some of the major impacts of * Shading our east and west win-
government to initiate a mechanism in the state which tial exchanges through high port to the ruling Congress-led Planning Commission deputy cable divulged his critical climate change are impact on agri- dows with overhangs or trellis-
security-enabled mails and chats, alliance (UPA) on the issue of the chairman and a close confidant remarks against the host coun- culture, glacial retreat, melting of es or by planting shade trees.
will monitor proper allocation of plan funds and their uti- * Reduce the hot water consump-
tapped by WikiLeaks by hacking Indo-US nuclear deal. This is of Prime Minister Singh, as a try administration's handling of polar ice, sea level rise, scarcity of
lization. water resources, sea level rise, dry tion in our home by installing
into the otherwise fire-walled notwithstanding the fact that the preferred American candidate for the drug mafia. Pascual did not
river bed, threats to human life efficient showerheads, faucets
communication network and exposure has badly and undeni- the union finance minister's post deny those remarks. Instead, he
Cricket diplomacy their subsequent public exposure
by the website which have
ably bruised the image of the
Congress party and the prime
over Pranab Mukherjee. Given
Ahluwalia's official background,
showed the guts to admit his
private and confidential com-
and ecosystems and species in
peril. Species endangered by glob-
and other fixtures.
* An effective system of waste
management involves the use
C
ricket is the legacy of colonial rule to the sub- embarrassed some of the world's minister. But, more than that, the such a suggestion is rather dis- munication and resigned. Few al warming are sea turtles, the
continent. Now its phenomenal popularity has North Atlantic right whale, the of the "3 R's" Reduce, Reuse
most powerful governments, exposure establishes the pres- turbing, if not scary. It also Indian politicians and bureau- and Recycle. While 'reduce'
helped decolonized countries evolve a friendship giant panda's, Asia's only ape the
institutions and personalities. It ence of an under-cover US intel- exposes the level of US interfer- crats have courage to emulate means to use less, 'reuse'
orangutan, African elephants,
of sorts notwithstanding what the pattern of foreign pol- has battered the image of the ligence network deep into the ence in India's domestic politics, Pascual. To be honest, many of Australia's Frog species, means to put the article back to
icy of respective member countries is. At the same time, United States. Also, it has shat- Indian administration and the apart from indirectly projecting WikiLeaks exposures are doing Indian Tigers, the African Tawny use without changing and
cricket has the potential of promoting good relations tered the 'unshakable' Swiss law political system constantly sup- Ahluwalia as an American more good than harm to our Eagle, breeding failure of 'recycle' means to put back into
among member countries particularly if they have been protection shield around secret plying politically and strategical- agent or one who would serve democratic society, which puts seabirds such as Common service after changing the arti-
bank account holders. WikiLeaks ly sensitive information to the the US interest better than a too much faith in institutions, Guillemots, Arctic Skuas, Great cle slightly or completely.
at loggerheads for one or the other reason. Prime exposures have covered wide American administration. This is more conservative Pranab bureaucracy and the political Scubas, kittiwakes and Arctic We have got everything that is
Minister Dr. Manmohan Singh has invited Pakistan range of areas from defence to certainly a matter of great con- Mukherjee on matters such as system to serve its cause, ethi- terns, the Siberian Crane, required to get started to protect
President and Prime Minister to come to India for diplomacy, finance to drug run- cern for the country's both inter- economic policy formulation cally and uncompromisingly, Galápagos Penguins, Tufted the earth with the possible excep-
watching the Indo-Pak semi final in Mohali. This is a ning, and commercial intelli- nal and external security and and execution. and ensure good governance in Puffins, and the southeastern tion of the "will to act". Let us all
grand goodwill gesture and has been received with gence to political espionage. economic stability. The matter Ahluwalia has been at the the best interest of the nation. Australian habitat of the endan- make a conscious attempt and a
appreciation. Commentators consider it a big step They are like modern chemical certainly justifies a debate in helm of the country's economic WikiLeaks exposures are not gered Red-Tailed Black Cockatoo. genuine effort to combat climate
warfare targeted at the general Parliament and institution of a affairs management for almost a inventive. They are factual. It is Since climate change is a change crisis. Let's live up the
towards confidence building mechanism. Indeed it worldwide problem, it is impera-
public to psyche them or to ignite high-level probe into the conduct quarter of a century since he for the actors to admit or deny logo of climate change "i count"
could be so if Pakistani leaders were really free to make tive to have binding international as a savior of our mother earth..!!
their sense of distrust against of those politicians and bureau- first occupied a cabin in the them. (IPA)
their decision. Many years ago General Zia-ul-Huq
came to Jaipur to witness Indo-Pak cricket match. His
trip was also termed a goodwill visit that would build
Plea to Finance Minister
mutual confidence. Soon after that visit, Pakistan abet- Sir, entire amount of revised pension. teachers is institution based. Its main prospective and in-service teachers are confrontational path, by re-examining
ted armed insurgency surfaced in Kashmir that has by It is unfortunate that the Finance The way our State Government is concern is the courses of study and taught certain pedagogical theories and this burning issue, and find a viable
Minister of our state, has failed to real- acting in the present case speaks very practicals conducted in the schools. principles but they are incapable of solution acceptable to the two parties.
now taken fairly large toll of human life. Both countries ize that as medical science increases The practical work is conducted half developing a culture specific pedagogy
loudly that reason has become the first The Government is duty bound to pro-
of the sub-region are under tremendous pressure from life expectancy it has also brought to causality in our state forcing the aged heartedly and that too in a haphazard suitable for country. vide employment opportunities to
the US to iron out their differences and help stabilize the fore the problem of growing old. who have given their yesterdays for the manner. Apprenticeship or intership, Yours etc... these agitating youth who see a dark
peace in the region. America wants Pakistan to fight her He continues denying the benefits of state’s tomorrows to take to the streets an integral component of professional Poonam Dhiman future looming before them.
war on terror in Af-Pak region and Pakistan wants to the Sixth Pay Commission to the for a thing which should have been education, is yet to be incorporated in Cosmic College of Education They have invested both money
capitalize on the discomfiture of the US on Afghan war Pensioners. It is time for him to take given to them as a matter of course. the programme and the training of Lakhanpur. and time to get degrees from universi-
lesson from the ruling of the Punjab Yours etc.... teachers remains incomplete as they do
front. India, on the other hand, is in a serious dilemma and Haryana High Court in the matter Predhuman not acquire total experience of func- Regularise ReZs ties to pursue a career of their choice.
It will be a great loss to them in case
of how she would manage balancing her secular demo- of HB Malhotra Vs the State of Punjab tioning of the school. The factors and Sir,
K Joseph Dhar Rehbar-e Ziarts are on agitational they can't harvest the fruits of their
cratic credentials against her national interests. Even if which asserts: “The policy of the state Chief Education forces operating beyond the teacher's labour.
Pakistan makes commitment of not allowing anti-India should be for the welfare of the citi- institution do not move it. Its duration path for last so many days, as their
Officer (Rtd). Jammu. demand for regularisation has not been Since the Budget Session is on, it
terrorist activities on her soil and also gives assurance zens at large. A welfare state cannot is too short to inculcate professional-
that she will not integrate Gilgit and Baltistan into deprive its citizen of his valuable Professional Teaching ism among teachers. Thus the pro- conceded by the Government. They becomes incumbent upon the legisla-
tors belonging to both the treasury and
rights. It would be prudent if the Sir, gramme of teacher education has not have faced hunger, and have gone
Pakistan, will the UPA coalition government have the Government itself modifies its policy Education is the all around devel- succeeded in developing competence through many ordeals while fighting the opposition benches to find a solu-
competence to make unthinkable concessions to at least for the senior citizens, who are opment of the personality of the child. and performance skill necessary for a for their demands. A good number of tion to this humanitarian problem.
Pakistan and to Kashmir separatists? One feels skeptic above the age of 75.”(March 24, 2011). The professional education of teachers successful professional. There remains them borne the brunt of the police ire. Yours etc...
about any real positive result emerging from the visit of The direction has come on the petition in India was started by the British and hardly a difference in the performance Even then their fate hangs in air. Amit Sharma
of a pensioner who has been denied it is continuing on. Education of of trained and untrained teachers. The The Government should avoid this Gole Gujral Jammu.
Pakistani authorities.