Nepal’s top court serves contempt notices to PM Oli

KATHMANDU: Nepal’s Supreme Court has issued two contempt of court notices to caretaker Prime Minister KP Sharma Oli, demanding he explain why he mocked lawyers challenging his decision to dissolve parliament and call early polls. The contempt of court suits are the latest challenges for the beleaguered leader after being expelled from his party earlier this week. The top court has ordered Oli to “present his written replies within seven days”, a court official told Reuters. economy based on objective analysis, enriching content and credible policy direction to take the economy forward,” said Chandrajit Banerjee, director general, CII. Acknowledging that pursuing counter-cyclical fiscal policy boosts growth during economic downturns, the Survey findings are in concurrence with CII’S recommendation on having a higher deficit print, albeit within reasonable limits. “This will result in faster growth and smaller deficits in the future,” he added.

The survey also presented a firm defence of the government’s response to the health and economic disruption inflicted by the pandemic. A stringent but timely lockdown prevented 3.7 million cases and around 100,000 deaths from Covid-19, the survey said. It added that a fiscal stimulus during the lockdown would have been a futile exercise comparable to pressing the accelerator and the brake at the same time, and pointed out that the government has delayed the fiscal boost to coincide with the roll-out of a vaccine. The ongoing recovery will gain from the structural reforms in factor markets as well as streamlining of regulations in the medium term, the survey claimed.

The architect of the survey, chief economic adviser (CEA) Krishnamurthy V Subramanian said India’s policy response was well timed as it first focused necessities such as providing free food to 800 million poor badly hit by a hard lockdown and lost jobs and support to the industry through emergency credit and liquidity measures.

According to Subramanian, various measures announced in the ₹20 lakh crore stimulus package, such as ₹111 lakh crore national Infrastructure pipeline, will have cascading effect on the economy and create demand.

Even as it hinted at deviation from the fiscal consolidation path in the near future, the Survey made a case for fiscal and monetary expansion. It cited both in-house and independent research on how India’s debt burden was entirely sustainable, why rating agencies were wrong in giving India a lower credit rating and how a rise in government investment in India would not necessarily crowd out private investment. By harping on the need to follow core inflation rather than food inflation – the latter has been the driving force behind the inflationary spike in the recent months – the survey might also be trying to carve out greater space for monetary policy intervention.

“While it (Survey) argues emphatically for counter-cyclical fiscal policies, comfort on debt sustainability, and unfair treatment by rating agencies, we believe the government is unlikely to drop the ball on fiscal rectitude. We expect the government to announce a fiscal deficit of 6.8% of GDP for FY21, 5.3% of GDP for FY22, and outline a fiscal roadmap that leads to gradual consolidation and stabilisation of public debt levels,” Sonal Varma and Aurodeep Nandi, economists at Nomura Global Market Research, said in a note.

But inherent in the Survey’s numbers are details of a lower devolution to states. While Budget Estimates for 2020-21 had projected an increase in devolution of states’ share in taxes from 6.56% of GDP in 2019-20 (Revised Estimates) to 7.84%, a contraction in GDP and a sharp rise in share of taxes raised through special cess and duty in the current fiscal year could mean a fall in absolute devolition to states, and a lower realisation from disinvestment. The second, a shortfall of around ₹1.9 lakh crore is understandable in a pandemic year, but the former is a matter of concern because the primary response to Covid-19 as well as alleviating distress has to come from the states.

In keeping with what is now an established tradition of the survey engaging in intellectual debates on sometimes radical economic ideas, the Survey also touched upon some crucial policy reforms in the regulatory sphere. It argued that “the problem of over-regulation and opacity in Indian administrative processes flows from the emphasis on having complete regulations that account for every possible outcome” and the “optimal solution is to have simple regulations combined with transparent decision making process”. It also underlined the need for a rollback of regulatory forbearance to cushion the impact of the pandemic, by describing it as an emergency measure. Read together with the need to initiate a second asset quality review in banks, this suggests growing policy concern over the bad debt crisis in banks, something which was highlighted in RBI’S latest Financial Stability Report.

“The Economic Survey has argued extensively on growth and debt sustainability and how India’s sovereign rating is not appropriate. Since India’s debt is going to be 73.8%, the arguments of the Survey are well appointed. But it cannot be missed that unsustainable debt can put our sovereign rating under pressure and also accessing foreign capital, which is important for infra development, etc, difficult,” said Sanjay Kumar, partner, Deloitte India. “It does point out that there may be enhanced government expenditure in the coming Budget. That is good. Government should, however, be mindful to spend on creating capital assets and not on revenue expenditure. Multipler effect of capex on GDP growth is 2.45, while of the revenue expenditure it is only 0.5. Spends on infra, health, MSME financing, R&D enhancement should not be missed,” he added. at the LAC in utter disregard of bilateral relations and agreements” but security forces “foiled all attempts to change the status quo at the border”.

He also spoke about the initiatives to make India “atmanirbhar”, or self-reliant, and about how India fought back against the Covid-19 pandemic.

The speech — that is approved by the Union Cabinet — sharply focused on the ongoing farm protests, and a sizeable chunk of it was on the Modi government’s farmer welfare goals.

President Kovind referred to the violent incidents on Republic Day and said, “The recent acts of dishonouring the National Flag and showing disrespect to the auspicious occasion of the Republic Day are unfortunate. While the Constitution gives us the right to freedom of expression it is also expected that we abide by the laws and rules with equal sincerity.”

The President maintained that Parliament approved the “important farm reform” bills “after extensive consultation”. “The benefits of these three important farm reforms have started reaching more than 10 crore small farmers instantly. Appreciating the advantages that these reforms would bring to the small farmers, several political parties too had, from time to time, expressed their support,” he said.

“My government holds in high esteem the values of democracy and sanctity of the Constitution. It is continuously making efforts to dispel the misunderstanding created in the context of these laws,” said Kovind, indicating the government’s willingness to engage with the farmers.

The Opposition, however, disagreed with this contention. Hours later, Congress leader Rahul Gandhi said in a media briefing: “The first law destroys the agricultural markets, second one allows unlimited storage of grain that will make it practically impossible for our farmers to negotiate their prices, and the third law basically says that if the farmers have grievance they cannot go to court.”

The Opposition has also maintained the farm bills were given a hasty passage without consultations, but Kovind said “the discussions over these farm reforms in every part of the country for over two decades and the demand for these reforms at different fora were also reflected during the deliberations in the House”.

The President also hailed India’s military capabilities as he noted how attempts were made to challenge the country’s capability at the border at a time when the country was grappling with the coronavirus pandemic.

“...our security forces not only responded to these machinations with promptitude, force and courage, but also foiled all attempts to change the status quo at the border,” he said.

“The restraint, valour and courage displayed by our jawans deserve utmost praise... Every citizen is deeply indebted to these martyrs,” the President said.

In the speech, Kovind also stated that India has “emerged on the global stage with renewed vigour” amid the pandemic, and the government’s “timely and calibrated decisions” saved “lives of lakhs of our countrymen”. farmers had gathered at Ghazipur on Thursday, the number swelled around 10,000 on Friday.

“If the police use force on us for not leaving, it is not a problem. But if some political organisations attempt to trouble us, that is unacceptable...now, I will not surrender (to the police), we’ll continue to protest here,” Tikait told the gathering.

It was a dramatic reversal from Thursday afternoon, when dwindling numbers, bitter public fallout of violence by farmers at the Republic Day tractor rally, and increasing police presence, left the protesters demoralised.

The Ghaziabad administration served Tikait, son of legendary farm leader Mahendra Singh Tikait, with an ultimatum to vacate the site or face penal consequences, part of a wider crackdown on the agitation since January 26. Farmers also said that the authorities cut off their water and power supply to the site.

But instead of caving in, Tikait broke down in front of television cameras and vowed to not leave the site until the government repealed the laws. “If the farm laws are not repealed, Rakesh Tikait will commit suicide,” he had said, biting back tears.

These visuals were beamed on television channels and went viral on social media, triggering calls for mobilisation from temples, mosques and panchayats across western UP throughout the night. Tikait’s resolve to not drink water unless it was brought from his village in particular touched a chord with the people, who carried water in bottles and pouches from their homes in the heartland to the Capital’s edge.

Prabhjeet Singh, a farmer from Muzaffarnagar who returned to Ghazipur a day after he left for his home, said, “We couldn’t leave him (Tikait) to battle it alone when he needed us the most”

By morning, the agitation seemed to have regained some of the momentum it lost when on Republic Day, farmer groups broke through barricades, clashed violently with police, ran riot on the Capital’s streets, and stormed the Red Fort, hoisting the Nishan Sahib, the flag of the Sikhs, on its ramparts.

The violence and vandalisation were widely condemned and sparked statements of remorse and anguish from farm groups across north India, even as unions leading the stir blamed fringe elements, a government “conspiracy”, and Punjabi actor Deep Sidhu for stoking passions.

The improvement in morale was visible in the principal protest site at the Singhu border despite violence by a mob of around 200 people earlier in the day. The Samyukt Kisan Morcha, the umbrella body leading the stir, said farmers will hold a oneday hunger strike to mark Mahatma Gandhi’s death anniversary on January 30.

“Today, we just saw farmers arriving in Ghazipur. In a couple of days, more protesters will arrive at Tikri, Singhu, and Shahjahanpur border from Haryana, Punjab, Uttar Pradesh, and Rajasthan,” said Darshan Pal, president of Krantikari Kisan Union Punjab.

Ghazipur is the smallest of the three protest sites — after Singhu and Tikri on the Capital’s northwestern and western borders respectively — where farmers have camped since November.

But on Friday, it was the focal point of the agitation as politicians, journalists, ordinary people made a beeline to meet Tikait, and union leaders scrambled to put up more tents, and set up community kitchens for the incoming crowds.

Delhi’s deputy chief minister

Manish Sisodia met Tikait and extended unconditional support on behalf of chief minister Arvind Kejriwal. “It is in such tough times that one aandolankari (protesters) come to help other aandolankari (protesters),” Tikait responded.

Other politicians to visit were Rashtriya Lok Dal leader Jayant Chaudhary, UP Congress chief Ajay Kumar Lallu, and Congress leader Deepinder Singh Hooda. Opposition politicians across the country also extended their support.

“I want to tell the farmers, don’t retract even by an inch. These laws will give a shock to middle class too, as food prices will skyrocket. The only solution is to repeal these laws,” Congress leader Rahul Gandhi said.

In Haryana, khaps held meetings across the state and decided to send members to the farmer protests, and socially boycott leaders of the Bharatiya Janata Party (BJP) and Dushyant Chautala’s Jannayak Janata Party (JJP). Haryana is governed by a BJP-JJP coalition. The move came even as the Haryana government suspended mobile internet in 17 districts.

In Muzaffarnagar, Tikait’s brother Naresh Tikait organised a show of strength attended by tens of thousands of farmers. “The ongoing movement is a battle for the honour of farmers and, if it ends, it will damage our very existence,” said Naresh Tikait after the seven-hour mahapanchayat.

In the face of increased mobilisation, police retreated from the Ghazipur site even as UP additional director general of police (ADG), law and order, Prashant Kumar said they were in touch with farmer leaders to find an amicable solution through talks.