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The Hindu Newspaper Analysis 10th Feb 2018

Are fiscal risks increasing?

 Budget 2018-19 has proposed amending the FRBM Act again, which will shift the target
of 3% •fiscal deficit-GDP ratio to end-March 2021.
 The new statutory anchors relate to the general and Central government debt-GDP ratios
that are to be reduced to 60% and 40% of GDP, respectively, by 2024-25,
 based on the recommendations of the report by the FRBM Review Committee
 Missing the •fiscal responsibility targets year after year and changing the statutory framework
time and again bring the credibility of the government‟s commitment to fiscal discipline in
•the spotlight
 As per the requirement of the FRBM Act of 2003, and amended in 2015
 Diluting recommendations
 In the proposed amendment to the FRBM Act, key recommendations of the review committee
were not accepted
 Central government did not accept another recommendation of setting up a fiscal council,
which could independently examine the economic case
 Central and State governments, keeping their •fiscal deficits

 committee‟s recommendations, the debt – GDP levels of 60% and 40% of GDP for
the general and Central governments, respectively, were to be achieved by 2022-23.
 These target dates have been shifted to 2024-25
 It had specified a revenue deficit glide path, reaching 0.8% by 2022-23.
 This too was not accepted
 In the Budget for 2018-19, the total outlays for focus areas, namely, agriculture and rural
livelihoods, infrastructure & education, & health and social sectors, amount to 11.6% of GDP
 More than ever, the •fiscal deficit needs continued vigilance.

Testing the diagnosis

 Why traditional and scientific medical systems cannot be integrated
 To understand this cruel reality, we must know what is common and what the differences are
among them.
 All cultures wanted explanations why some fell ill while others did not, and,
 What remedies cure different illnesses.
 Ancient Indian and Chinese traditional systems and the more recent homoeopathy.
 All of them are together called „traditional medicine‟.
 Homoeopathy, the basic doctrine
 Chinese system, the basic doctrine
 Ayurveda, the basic doctrine
 Europeans had lagged behind — until two-three centuries ago.
 Scientific medicine developed and grew in Germany, Austria, France, Britain and
 U.S. during the 18th and 19th centuries
 Scientific medicine demands „accountability‟ on the part of the physician — for „correct‟
diagnosis and treatment.
 Since such verifications and detailed not present in traditional medical system

Prelims Focus Facts-News Analysis

 Page-1- Maldives crisis: India in touch with U.S., China
 Trump, Modi talk over phone, decide to work together
 Emergency in the Maldives still in place and worries about a constitutional crisis
 India alone can be the game changer, the former President Mohamed Nasheed said. “I have faith in India,”
 Page-5- Kerala, Punjab, T.N. in good health
 Kerala, Punjab and Tamil Nadu were the top rankers in NITI Aayog‟s latest Health
Index report which has, for the first time- Nation‟s performance in the health sector
 The document, developed by NITI Aayog with technical assistance from the World
Bank and in consultation with the Ministry of Health and Family Welfare,
 Indicates that Jharkhand, Jammu and Kashmir and Uttar Pradesh showed most improvement
 Report was released on Friday by Amitabh Kant, CEO of NITI Aayog;
 Preeti Sudan, secretary, Ministry of Health and Family Welfare;
 Junaid Ahmad, country director, World Bank