Finance panel’s task

This refers to your Editorial ‘Fair and square’ about the task before the 16th Finance panel. Till the 14th Finance Commission, the Commissions’ work used to be fairly routine. The Commission had the benefit of advice from the Planning Commission.

Given the fraught the Centre-states relations, the task of the Finance Commission becomes more onerous. The balancing act of doing justice to income generating states and meeting the demands of poorer States has to be performed skillfully.

GST and improvements in tax collection systems have boosted tax revenues. It is for the Finance panel to ensure the flow of accumulated revenue to the deserving within the statutory constraints.

M G Warrier

Mumbai

Farm insurance

With reference to the report ‘Claims of ₹1.50-lakh crore paid under PMFBY since 2016’ (December 6). The PMFBY scheme has certainly proven to be literally a ‘life saver’ to farmers.

The National Crop Insurance portal also has to be promptly updated with data on crops sown, acreage, etc.

It is noteworthy that against a small amount of premium paid by the Centre and some Statesinsurance companies have settled claims worth ₹₹1.50-lakh crore since 2016. Thus States too should join in the PMFBY for the welfare of farmers.

Katuru Durga Prasad

Hyderabad

Michaung’s havoc

This refers to a news report “After deluge: Cyclone limping back to normalcy” (December 6).

It is unfortunate that cyclone Michaung has caused sudden deluge on the eastern coast, including Chennai, AP and Telangana. Normal life has been disrupted and memories of the 2015 floods have come back to haunt.

Extreme weather events, including urban flooding are no longer rare events. The Chennai tragedy underscores the dire need to plug the glaring gaps. The Centre and the States concerned must work in close cooperation for the effective disaster mitigation.

Gregory Fernandes

Mumbai

MPC status quo?

The RBI is concerned over inflation but high policy rates may not be a drag on growth.

High levels of liquidity from cheap finance, funded speculative and unproductive use. Nations borrowed cheap money to squander it on generous welfare schemes and speculative investment that ended up loading on them all enormous debts.

With trends of normalisation reappearing in 2016-19 the money then went into Investment in selective stocks for returns, but not yet to Capital, that generates growth and jobs. The economic stasis due to Covid and Ukraine war, has since choked fresh capital formation. More than RBI it would be the government that must bear the onus.

Universally and across cycles, fiscal discipline has become mandatory and monetary policies need to be designed for restraining market exuberance.

R.Narayanan

Navi Mumbai.

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