Tuesday, November 06, 2012

We pay to fill the gap.

The Central Vigilance Commission has found tax evasion of Rs 10 billion by government departments and private contractors in carrying out projects for the Commonwealth Games. However, this is just an attempt to muddy the waters because the Delhi government had a budget of Rs 700 billion and we still do not know how much was skimmed off the top as the central government has hidden the Shunglu Committee report. To combat malnutrition in children the government supplies midday meals in schools under the Integrated Child Development Scheme. As per Supreme Court ruling of 2004 these meals have to be supplied only by self help groups, village communities or mahila mandals ( women's groups ) who will purchase the necessary provisions. Contractors are specifically barred from this scheme. However a report by the Supreme Court Commissioners' Office says that private contractors have managed to corner Rs 80 billion worth of this scheme in Maharashtra, UP and Meghalaya. HT, 3 November. In 2009 the Maharashtra state government changed the rules to allow not just community based organisations but " women's institutions ", a deliberately misleading vague term, to bid for these contracts. Private contractors then floated 3 companies with women as board members which then went on to corner all the contracts to buy supplies for the entire state worth Rs 10 billion. The women on the boards of these companies were all relatives of the contractors. UP and Meghalaya do not comply with the 2004 orders. The report says " a close nexus between politicians, contractors and bureaucrats has allowed the active subversion of the letter and spirit of the SC orders ".  Nutritional standards of children in Maharashtra, a rich state, has declined to the level of Odisha which is much poorer. According to official data, 40% of children are underweight and 50% of all childhood deaths are attributed to malnutrition. Powerful politicians in Maharashtra are involved in robbing children of food. That is why politicians and civil servants love social schemes and that is why they never talk about reducing the numbers of children. However, all this looted money has to be filled in from somewhere which is why taxes in India are indiscriminate and extortionate. In 2002 oil companies introduced premium petrol and diesel which had special additives which increased mileage, enhanced pick up, cleaned engines and produced less emissions. These were priced Rs 1.50 higher than ordinary fuel. In 2009 this Finance Minister levied special duties on premium fuels which increased the difference to Rs 2.50. From 2007 to 2012 the sale of premium petrol decreased by 72% and that of diesel by 95% so oil companies are going to discontinue production of these fuels. And this fellow talks about growth. What a joke.

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