The crisis over parliamentary expenses reached new heights last night as it emerged that HM Revenue and Customs is to investigate whether MPs have deliberately evaded capital gains tax when selling their second homes.
News of an inquiry by tax officials, which follows days of leaks about the way MPs have exploited the Commons' allowances regime for private gain, will inflict further damage on the already battered reputation of parliament.
In a separate development, in an article for today's Observer, Sir Alistair Graham, the former chairman of the committee on standards in public life, describes the behaviour of the home secretary, Jacqui Smith, as "near-fraudulent" in relation to her expense claims.
Smith registered the house she shared with her sister in south London as her primary residence, allowing her to claim the parliamentary allowance of up to £24,000 for her family home in Redditch, Worcestershire, where her husband and children live.
"One has to be careful with the word 'fraudulent'," Graham writes, "because in the criminal sense there needs to be guilty intent. However, it seems to me there may be intent here and in similar cases that have emerged. People seem to be thinking, 'What's the best way to use the system so I can maximise the personal financial return to myself?'"
Graham's comments brought an immediate reaction from Smith. Her spokesman said that the home secretary would be seeking legal advice about what he had said. "This is a malicious falsehood, and implies that Jacqui is lying. He seems intent on attacking her without examining the facts of the case," the spokesman insisted.
The dispute broke out as opinion polls showed Labour to be suffering the most as a result of the expenses saga. A survey for the Mail on Sunday put Gordon Brown's party on 23% – its lowest rating since polling began. The Conservatives appear to be emerging unscathed as the controversy grows – a full 22 points ahead on 45%, enough to give David Cameron a landslide victory.
Last night a string of fresh revelations emerged about expenses claimed by MPs and peers. These included claims that:
• Kitty Ussher, a junior government minister, asked for thousands of pounds to pay for a full makeover of her second home within 12 months of becoming an MP. The Sunday Telegraph says she claimed £20,000 for the refit.
• Baroness Thornton, a Labour minister in the whips' office, has been claiming £22,000 a year in expenses by saying that her mother's bungalow in Yorkshire is her main home. As a result the peer, who has a £1m house near Hampstead Heath, has been able to claim around £130,000 since 2002.
• Stephen Byers, the former cabinet minister, has claimed £125,000 in expenses for a home which was owned outright by his partner, where he lived rent-free.
• Five Sinn Féin MPs received £500,000 in second homes allowances despite not taking up their seats in the House.
The forthcoming investigations by HM Revenue and Customs (HMRC) will focus on suspicions that some MPs have been changing the status of their first and second homes not merely to maximise the amount they can claim in allowances, but also to minimise exposure to capital gains tax (CGT) when selling their second homes. There is no CGT on the sale of first homes in most cases.
The Daily Telegraph, which has published selected details of millions of claims by Britain's 659 MPs over the past three days, revealed on Thursday that one of the ways in which MPs can "work the system" is by claiming that their second home – on which they can claim generous parliamentary allowances – is in fact their first home for the purposes of tax.
An HMRC official said: "Once these declarations were made public, we began to examine them to ensure that MPs have paid the right tax. Avoidance of capital gains tax is just one of the issues that have arisen from these articles."
Hazel Blears, the communities secretary, last night admitted not paying capital gains tax on the sale of a £200,000 flat in Kennington, south London that had been designated as her "second home". She had claimed £850 a month from the House of Commons for the mortgage on the flat until it was sold in August 2004 for a profit of £45,000, it was alleged last week. MPs can only make such claims on properties they designate to be their second homes.
Her spokesman insisted she had done nothing wrong by not paying capital gains tax. "Hazel has complied with the House of Commons authorities and the Inland Revenue. No liability for capital gains tax arose on the sale of her flat," he said.
The latest controversy involving Blears raises further questions as to whether Gordon Brown will retain her in any ministerial capacity following last week's attack on his leadership. In an article for the Observer she described the government's recent performance as "lamentable".
Another of those who did not pay CGT when he sold his second home is James Purnell, the work and pensions secretary. Although in his case there was no evidence of any wrongdoing, suggestions that MPs may be systematically avoiding tax have alarmed HMRC officials. HMRC will also take a close look at MPs' income tax payments, as many of their perks could be seen as "benefits in kind" which should be taxed.
Mark Wallace, campaigns director for the Taxpayers' TaxPayers'correct Alliance, welcomed HMRC's inquiries. "It is totally unacceptable for elected representatives to live by one set of rules and dictate another," he said.
An HMRC spokeswoman said: "We use a wide variety of information sources to ensure the tax system operates as it should."
Saturday, May 9, 2009
Banks unveil cash-raising plans
US bank Wells Fargo has said it plans to raise $7.5bn (£4.9bn) from selling new shares, a day after the US Treasury said 10 banks needed to boost reserves.
Morgan Stanley is also hoping to raise $3.5bn from share sales.
Bank of America said it planned to sell assets and raise capital to secure the $33.9bn it needs.
On Thursday, the US Treasury said that 10 of America's 19 largest banks needed to raise a combined total of $74.6bn of extra funds.
That was the main finding of the so-called "stress tests" which were carried out to see if the banks had sufficient capital to cope should the recession worsen.
The banks that require extra capital have been given until 8 June to finalise their plans to do so, and get them approved by regulators.
Separately, Fannie Mae, the mortgage finance company, has said it needs an extra $19bn in government aid after reporting a loss of $23.2bn for the first quarter.
Discount sale
Wells Fargo's shares are to be priced at $22 each, a discount of 11% to Thursday's closing price, with Morgan Stanley's new shares priced at $24 each, a discount of nearly 12% to Thursday's close.
Ken Lewis, chief executive of Bank of America - the bank which requires the most new money - has said that he will stay at the bank to help it raise the cash and repay government loans.
Mr Lewis has faced criticism for his purchase of Merrill Lynch and some investors have called for his resignation.
Other banks that need more money include GMAC, the former financial arm of General Motors, which needs $11.5bn, Citigroup, which requires an additional $5.5bn of funds, and Morgan Stanley, which has been told to find $1.8bn.
The 19 banks that were tested by Treasury Department and Federal Reserve officials account for two-thirds of the total assets of the US banking system, and more than half of the total amount of credit in the US economy.
Morgan Stanley is also hoping to raise $3.5bn from share sales.
Bank of America said it planned to sell assets and raise capital to secure the $33.9bn it needs.
On Thursday, the US Treasury said that 10 of America's 19 largest banks needed to raise a combined total of $74.6bn of extra funds.
That was the main finding of the so-called "stress tests" which were carried out to see if the banks had sufficient capital to cope should the recession worsen.
The banks that require extra capital have been given until 8 June to finalise their plans to do so, and get them approved by regulators.
Separately, Fannie Mae, the mortgage finance company, has said it needs an extra $19bn in government aid after reporting a loss of $23.2bn for the first quarter.
Discount sale
Wells Fargo's shares are to be priced at $22 each, a discount of 11% to Thursday's closing price, with Morgan Stanley's new shares priced at $24 each, a discount of nearly 12% to Thursday's close.
Ken Lewis, chief executive of Bank of America - the bank which requires the most new money - has said that he will stay at the bank to help it raise the cash and repay government loans.
Mr Lewis has faced criticism for his purchase of Merrill Lynch and some investors have called for his resignation.
Other banks that need more money include GMAC, the former financial arm of General Motors, which needs $11.5bn, Citigroup, which requires an additional $5.5bn of funds, and Morgan Stanley, which has been told to find $1.8bn.
The 19 banks that were tested by Treasury Department and Federal Reserve officials account for two-thirds of the total assets of the US banking system, and more than half of the total amount of credit in the US economy.
Zuma warning of economic 'pinch'
South Africa is facing hard times economically, its newly inaugurated President, Jacob Zuma, warned in his acceptance speech.
"Jobs are being lost in every economy across the world," he said. "We will not be spared the negative impact, and are beginning to feel the pinch."
But the ANC leader said the foundations of the economy were strong.
Mr Zuma's first task as president is to form his cabinet and he is due to announce its composition on Sunday.
Investors are watching to see if Finance Minister Trevor Manuel, who has been praised for his fiscal management, will be retained and also to what extent Mr Zuma's communist allies will be represented
Mr Manuel has expressed confidence in the new leader's abilities.
"Frequently people look for experience but what matters is attitude and aptitude," he said.
"The mood is very buoyed. Feeling very strong. There's a big wave to ride."
Mr Zuma was elected president by parliament after the African National Congress won the general election last month, albeit with a slightly reduced majority.
'Firm foundation'
He was sworn in on Saturday before 5,000 invited guests and crowds of supporters who had gathered at the Union Buildings in Pretoria.
We must acknowledge that we find ourselves in difficult economic times," he said.
Despite his bitter power struggle with his predecessor Thabo Mbeki, the new president paid tribute to his economic management.
Mr Mbeki had, he said, created a "firm foundation" for economic growth and development.
Turning to the 2010 World Cup, he promised "a world class event that will forever change the perceptions of the international community", drawing loud applause.
All South Africa's leaders since 1994 attended the lavish ceremony in Pretoria.
Jacob Zuma thanked Nelson Mandela for healing the wounds of the past in South Africa and establishing the "Rainbow Nation".
The Mandela-Mbeki years are now part of history, the BBC's Peter Biles reports, and it is President Zuma who has to address huge economic and social challenges.
The first test of his presidency will come in the 24 hours when he reveals the members of his cabinet, our correspondent says.
Epic struggle
Jacob Zuma's journey to the Union Buildings has been an epic struggle, our correspondent adds.
He was sacked as vice-president by Thabo Mbeki four years ago after being implicated in a corruption scandal - allegations Mr Zuma always denied.
The case was eventually thrown out amid evidence of government meddling in the investigation.
In February 2006, he was acquitted of rape in a separate case, though he was widely criticised for his comments about sex and HIV/Aids.
At the time, few observers believed Mr Zuma could remain a serious contender for president, our correspondent says.
But he fought to clear his name, retained enormous popularity, especially among his fellow Zulus, and led the ANC to a convincing election victory two weeks ago on a pro-poor populist ticket.
He has listed his five priorities as land redistribution, education, health, lowering crime levels and finding decent work for all South Africans.
"Jobs are being lost in every economy across the world," he said. "We will not be spared the negative impact, and are beginning to feel the pinch."
But the ANC leader said the foundations of the economy were strong.
Mr Zuma's first task as president is to form his cabinet and he is due to announce its composition on Sunday.
Investors are watching to see if Finance Minister Trevor Manuel, who has been praised for his fiscal management, will be retained and also to what extent Mr Zuma's communist allies will be represented
Mr Manuel has expressed confidence in the new leader's abilities.
"Frequently people look for experience but what matters is attitude and aptitude," he said.
"The mood is very buoyed. Feeling very strong. There's a big wave to ride."
Mr Zuma was elected president by parliament after the African National Congress won the general election last month, albeit with a slightly reduced majority.
'Firm foundation'
He was sworn in on Saturday before 5,000 invited guests and crowds of supporters who had gathered at the Union Buildings in Pretoria.
We must acknowledge that we find ourselves in difficult economic times," he said.
Despite his bitter power struggle with his predecessor Thabo Mbeki, the new president paid tribute to his economic management.
Mr Mbeki had, he said, created a "firm foundation" for economic growth and development.
Turning to the 2010 World Cup, he promised "a world class event that will forever change the perceptions of the international community", drawing loud applause.
All South Africa's leaders since 1994 attended the lavish ceremony in Pretoria.
Jacob Zuma thanked Nelson Mandela for healing the wounds of the past in South Africa and establishing the "Rainbow Nation".
The Mandela-Mbeki years are now part of history, the BBC's Peter Biles reports, and it is President Zuma who has to address huge economic and social challenges.
The first test of his presidency will come in the 24 hours when he reveals the members of his cabinet, our correspondent says.
Epic struggle
Jacob Zuma's journey to the Union Buildings has been an epic struggle, our correspondent adds.
He was sacked as vice-president by Thabo Mbeki four years ago after being implicated in a corruption scandal - allegations Mr Zuma always denied.
The case was eventually thrown out amid evidence of government meddling in the investigation.
In February 2006, he was acquitted of rape in a separate case, though he was widely criticised for his comments about sex and HIV/Aids.
At the time, few observers believed Mr Zuma could remain a serious contender for president, our correspondent says.
But he fought to clear his name, retained enormous popularity, especially among his fellow Zulus, and led the ANC to a convincing election victory two weeks ago on a pro-poor populist ticket.
He has listed his five priorities as land redistribution, education, health, lowering crime levels and finding decent work for all South Africans.
Pakistan urging residents to flee
Pakistan's government is lifting a curfew in the Swat valley to allow residents to escape an intense battle between the army and Taleban militants.
The curfew has trapped tens of thousands of people attempting to flee the violence.
The army is trying to reverse militant advances in the area, in what the prime minister has called a "fight for the survival of the country".
The army said dozens of militants had been killed in fighting on Saturday.
The government said the curfew would be lifted for seven hours on Sunday, beginning at 0600 local time.
It asked civilians to take the chance to flee the area.
See a map of the region
BBC regional analyst Anbarasan Ethirajan says the lifting of the curfew is a sign that the army offensive is likely to intensify over the coming days.
Pakistan's government signed a peace agreement with the Swat Taleban in February, allowing Sharia law there, which was sharply criticised by Washington.
The militants then moved towards the capital, Islamabad, causing further alarm.
Up to 15,000 troops have been deployed in the Swat valley and neighbouring areas to take on 4,000-5,000 militants.
The military has said it intends to "eliminate" the Taleban fighters.
The fighting has already displaced some 200,000 people, while a further 300,000 are estimated to be on the move or about to flee, the UN says.
The government also said on Saturday that refugee camps would be set up in Peshawar, the capital of North West Frontier Province, and to the north-east in Naushara.
Footage on local television showed people at one camp desperately looting UN supplies including blankets and cooking oil.
'Road jammed'
Earlier, fighting was reported to have reached the biggest town in the region, Mingora, which the army has been trying to recapture.
The army said it had killed 55 more militants on Saturday, having said that more than 140 militants had died in earlier clashes.
Some 15,000 troops have been deployed to fight the Taleban
Due to the intensity of the fighting and the cutting of phone networks, it is difficult to get independent information on the fighting or verify the army's claims, correspondents say.
Prime Minister Yusuf Raza Gilani told reporters on Saturday called the conflict "a guerrilla war".
"This is our own war. This is war for the survival of the country," Reuters news agency quoted him as saying.
Our correspondent says Sunday's curfew is especially aimed at the residents of the towns of Kambar and Raheemabad.
They have been blaming both sides for the violence, he says, as the military continues to bombard the area while the Taleban reportedly prevents people from fleeing.
One Mingora resident was quoted by Reuters saying he had not been able to escape during an earlier curfew.
"We are feeling so helpless, we want to go but can't," said Sallahudin Khan.
"We tried to leave yesterday after authorities relaxed the curfew for a few hours, but we couldn't as the main road leading out of Mingora was literally jammed with the flood of fleeing people."
The curfew has trapped tens of thousands of people attempting to flee the violence.
The army is trying to reverse militant advances in the area, in what the prime minister has called a "fight for the survival of the country".
The army said dozens of militants had been killed in fighting on Saturday.
The government said the curfew would be lifted for seven hours on Sunday, beginning at 0600 local time.
It asked civilians to take the chance to flee the area.
See a map of the region
BBC regional analyst Anbarasan Ethirajan says the lifting of the curfew is a sign that the army offensive is likely to intensify over the coming days.
Pakistan's government signed a peace agreement with the Swat Taleban in February, allowing Sharia law there, which was sharply criticised by Washington.
The militants then moved towards the capital, Islamabad, causing further alarm.
Up to 15,000 troops have been deployed in the Swat valley and neighbouring areas to take on 4,000-5,000 militants.
The military has said it intends to "eliminate" the Taleban fighters.
The fighting has already displaced some 200,000 people, while a further 300,000 are estimated to be on the move or about to flee, the UN says.
The government also said on Saturday that refugee camps would be set up in Peshawar, the capital of North West Frontier Province, and to the north-east in Naushara.
Footage on local television showed people at one camp desperately looting UN supplies including blankets and cooking oil.
'Road jammed'
Earlier, fighting was reported to have reached the biggest town in the region, Mingora, which the army has been trying to recapture.
The army said it had killed 55 more militants on Saturday, having said that more than 140 militants had died in earlier clashes.
Some 15,000 troops have been deployed to fight the Taleban
Due to the intensity of the fighting and the cutting of phone networks, it is difficult to get independent information on the fighting or verify the army's claims, correspondents say.
Prime Minister Yusuf Raza Gilani told reporters on Saturday called the conflict "a guerrilla war".
"This is our own war. This is war for the survival of the country," Reuters news agency quoted him as saying.
Our correspondent says Sunday's curfew is especially aimed at the residents of the towns of Kambar and Raheemabad.
They have been blaming both sides for the violence, he says, as the military continues to bombard the area while the Taleban reportedly prevents people from fleeing.
One Mingora resident was quoted by Reuters saying he had not been able to escape during an earlier curfew.
"We are feeling so helpless, we want to go but can't," said Sallahudin Khan.
"We tried to leave yesterday after authorities relaxed the curfew for a few hours, but we couldn't as the main road leading out of Mingora was literally jammed with the flood of fleeing people."
Friday, May 8, 2009
Modi on the mat
There are many things in common between the mass violence against the Sikhs in 1984 and massacre of Muslims in Gujarat in 2002. If we had done the right thing in 1984, we would not have the same kind of thing repeated in 2002. Let me elucidate.
When Prime Minister Indira Gandhi was assassinated on October 31, 1984 by her Sikh bodyguards, a strong anti-Sikh sentiment was prevalent because of the unpunished crimes committed by Bhindranwale’s followers against Hindus.
It only needed a spark to ignite a blazing fire of vengefulness. The government should have been prepared to face the flames of hatred before they became an inferno. Far from being ready to put it down, the government became a party to it. Word came from one among the topmost of leaders: “Teach the Sikhs a lesson.”
The Delhi administration and the police became parties to the looting and killing of innocent Sikhs. Police stations refused to register FIRs, rampaging mobs ignored the so-called curfew, army help was sought for, but when it turned out to be a unit of the sikh infantry, it was ordered back to the barracks.
Men like HKL Bhagat and Jagdish Tytler, named for leading mobs, remained members of the cabinet. Sajjan Kumar was re-elected to the Lok Sabha. To this day very few people have been punished for those heinous crimes. It was inevitable that if murderers could get away so lightly in Delhi, they could get away with such crimes elsewhere in India. So they did in Gujarat.
After the burning of a bogey of the train at Godhra, we are still not certain who set the compartment on fire or the identity of the victims; word went around: “Teach the Muslims a lesson.” As in Delhi, so in Gujarat the administration, police and the law courts became subservient to the wishes of the rulers and let the mobs run riot.
There is plenty of reliable evidence to nail Narendra Modi and his minions: sting operation, carried out by Tehelka, in which perpetrators of murders admitted they had been given the green signal to go ahead with their devilish crimes without fear of persecution, the case of Zahira Sheikh who was bribed to renege from her earlier statements; disclosures made by a senior IAS officer Harsh Mander and much else.
No one expects the BJP to take a moral stand on the issue. Its leaders LK Advani and Narendra Modi have a symbiotic relationship — you scratch my back, I’ll scratch yours. Modi sees that Advani gets elected to the Lok Sabha from Gandhinagar; Advani comes to Modi’s rescue whenever he is in trouble. He is in one now and BJP leaders like Arun Jaitley and Arun Shourie are poohpooing the charges against Modi as a pre-election stunt.
The all-rounder
Abhishek Singhvi, chief spokesman of the Congress Party, is an eminent lawyer and a politician. We see him on TV screens all the time. Law and politics are perhaps the two most soulless professions in the world. They have no room for art, poetry or music. So it was a pleasant surprise when my niece-in-law Malvika Singh, who knows everyone who matters, brought Abhishek’s wife Anita to my home one evening.
She seemed to have no interest either in law or politics. She was into Urdu poetry and singing ghazals. It was strange that with a Marwari background and never having learnt Urdu or Farsi, her taluffuz (pronunciation) of both was perfect.
Anita was born in Jodhpur and opted for classical Indian music in school. Starting with a Pandit of the Gwalior Gharana, she went to the Bhatkhande Sangeet Institute in Delhi. She got enamoured of ghazals, memorised verses by Amir Khusro, Ghalib, Daagh, Meer, Iqbal, Faiz and many lesser known poets.
She is gifted with a melodious voice and has held concerts in most Indian cities, Europe and the United States. She has 3 CD’s in the market; a fourth is due to be released soon. And she has an abundance of awards showered on her. She is the mother of two sons, one with a Cambridge tripos, the other at University College, London.
She looks ten years younger than her age. I asked her how she managed to combine housekeeping, looking after her husband, keeping an eye on her sons and giving concerts at different places. “I am 50, full of music. I want to explode with song if I have an audience,” she replied. “Who would you like to hear?” she said. “Ghalib is always my first choice,” I replied. And so it was: “Muddat huee hai yaar ko mehmaan kiye huey, (It has been a long time I had my lover as my guest) and went on to others. Her preference is Allama Iqbal; so she sang Iqbal and many others in Urdu and Persian. It was a music-filled hour which seemed to pass too quickly. “Lucky husband! He can hear you any time he likes,” I remarked. She roared with laughter and replied: “He doesn’t think so. He tells everyone, others hear her music, I have to face it.”
When Prime Minister Indira Gandhi was assassinated on October 31, 1984 by her Sikh bodyguards, a strong anti-Sikh sentiment was prevalent because of the unpunished crimes committed by Bhindranwale’s followers against Hindus.
It only needed a spark to ignite a blazing fire of vengefulness. The government should have been prepared to face the flames of hatred before they became an inferno. Far from being ready to put it down, the government became a party to it. Word came from one among the topmost of leaders: “Teach the Sikhs a lesson.”
The Delhi administration and the police became parties to the looting and killing of innocent Sikhs. Police stations refused to register FIRs, rampaging mobs ignored the so-called curfew, army help was sought for, but when it turned out to be a unit of the sikh infantry, it was ordered back to the barracks.
Men like HKL Bhagat and Jagdish Tytler, named for leading mobs, remained members of the cabinet. Sajjan Kumar was re-elected to the Lok Sabha. To this day very few people have been punished for those heinous crimes. It was inevitable that if murderers could get away so lightly in Delhi, they could get away with such crimes elsewhere in India. So they did in Gujarat.
After the burning of a bogey of the train at Godhra, we are still not certain who set the compartment on fire or the identity of the victims; word went around: “Teach the Muslims a lesson.” As in Delhi, so in Gujarat the administration, police and the law courts became subservient to the wishes of the rulers and let the mobs run riot.
There is plenty of reliable evidence to nail Narendra Modi and his minions: sting operation, carried out by Tehelka, in which perpetrators of murders admitted they had been given the green signal to go ahead with their devilish crimes without fear of persecution, the case of Zahira Sheikh who was bribed to renege from her earlier statements; disclosures made by a senior IAS officer Harsh Mander and much else.
No one expects the BJP to take a moral stand on the issue. Its leaders LK Advani and Narendra Modi have a symbiotic relationship — you scratch my back, I’ll scratch yours. Modi sees that Advani gets elected to the Lok Sabha from Gandhinagar; Advani comes to Modi’s rescue whenever he is in trouble. He is in one now and BJP leaders like Arun Jaitley and Arun Shourie are poohpooing the charges against Modi as a pre-election stunt.
The all-rounder
Abhishek Singhvi, chief spokesman of the Congress Party, is an eminent lawyer and a politician. We see him on TV screens all the time. Law and politics are perhaps the two most soulless professions in the world. They have no room for art, poetry or music. So it was a pleasant surprise when my niece-in-law Malvika Singh, who knows everyone who matters, brought Abhishek’s wife Anita to my home one evening.
She seemed to have no interest either in law or politics. She was into Urdu poetry and singing ghazals. It was strange that with a Marwari background and never having learnt Urdu or Farsi, her taluffuz (pronunciation) of both was perfect.
Anita was born in Jodhpur and opted for classical Indian music in school. Starting with a Pandit of the Gwalior Gharana, she went to the Bhatkhande Sangeet Institute in Delhi. She got enamoured of ghazals, memorised verses by Amir Khusro, Ghalib, Daagh, Meer, Iqbal, Faiz and many lesser known poets.
She is gifted with a melodious voice and has held concerts in most Indian cities, Europe and the United States. She has 3 CD’s in the market; a fourth is due to be released soon. And she has an abundance of awards showered on her. She is the mother of two sons, one with a Cambridge tripos, the other at University College, London.
She looks ten years younger than her age. I asked her how she managed to combine housekeeping, looking after her husband, keeping an eye on her sons and giving concerts at different places. “I am 50, full of music. I want to explode with song if I have an audience,” she replied. “Who would you like to hear?” she said. “Ghalib is always my first choice,” I replied. And so it was: “Muddat huee hai yaar ko mehmaan kiye huey, (It has been a long time I had my lover as my guest) and went on to others. Her preference is Allama Iqbal; so she sang Iqbal and many others in Urdu and Persian. It was a music-filled hour which seemed to pass too quickly. “Lucky husband! He can hear you any time he likes,” I remarked. She roared with laughter and replied: “He doesn’t think so. He tells everyone, others hear her music, I have to face it.”
RBI Governor hints at fiscal headaches from stimulus measures
The Reserve Bank of India will focus on managing inflationary expectations and the medium-term fallouts of the recent policies as India recovers from the impact of the global economic crisis, the Central Bank’s governor said on Friday.
He was hinting at an impending surge in the fiscal deficit as stimulus measures to revive the economy reduce room for tax revenues while boosting government expenses. “When the crisis is behind us we need to think about managing inflationary expectations about the medium term consequences of policy actions in the economy and on the macro economic imbalances,” Duvvuri Subbarao said at a function to release a book by his predecessor at the job, Yaga Venugopal Reddy.
Dr Reddy’s book India and the Global Financial Crisis: Managing Money and Finance, published by Orient Blackswan deals with the causes and potential consequences of the ongoing global financial crisis. Reddy emerged as a creditable central bank head as he cracked down on speculative spending and took a hawkish line against inflation, which proved eventually helpful for India’s economy.
The book compiled from 23 select speeches of Dr Reddy when he was governor gives an insight to his policy-making acumen.
“If America had a central bank chief like Y V Reddy, the US economy could not have been in such a mess,” stated Nobel laureate Joseph E Stiglitz said last year.
Through his book, Dr Reddy provides a ringside view of the dynamics of policy making, especially the interaction between central bank and public policy.
He was hinting at an impending surge in the fiscal deficit as stimulus measures to revive the economy reduce room for tax revenues while boosting government expenses. “When the crisis is behind us we need to think about managing inflationary expectations about the medium term consequences of policy actions in the economy and on the macro economic imbalances,” Duvvuri Subbarao said at a function to release a book by his predecessor at the job, Yaga Venugopal Reddy.
Dr Reddy’s book India and the Global Financial Crisis: Managing Money and Finance, published by Orient Blackswan deals with the causes and potential consequences of the ongoing global financial crisis. Reddy emerged as a creditable central bank head as he cracked down on speculative spending and took a hawkish line against inflation, which proved eventually helpful for India’s economy.
The book compiled from 23 select speeches of Dr Reddy when he was governor gives an insight to his policy-making acumen.
“If America had a central bank chief like Y V Reddy, the US economy could not have been in such a mess,” stated Nobel laureate Joseph E Stiglitz said last year.
Through his book, Dr Reddy provides a ringside view of the dynamics of policy making, especially the interaction between central bank and public policy.
Revocation of NSA a historic moment, says Varun Gandhi
Varun Gandhi on Friday said the Uttar Pradesh Advisory Board's revoking of NSA against him has exposed the "conspiracy" by the Centre and the UP government for "petty political gain".
"I have all along expressed full faith in the judiciary and that has been completely vindicated today. I am grateful that this conspiracy by the state and the Centre for petty political gain has been exposed and deleted," Varun said.
He also said the authorities have to answer for his "illegal detention" for 20 days.
"For the 20 days that I have spent in illegal detention will have to be answered 20 times over by the authorities to the people of India. It is a historic moment, not just for me but also for Indian Democracy," Varun said in a statement.
Earlier, UP Home Secretary Javed Ahmad said, "NSA invoked against Varun Gandhi has been held invalid by the Board."
The UP government had invoked the stringent NSA against Varun for his alleged hate speeches during a political campaign in Pilibhit.
Varun was let off by the three-member Advisory board headed by senior judge of the Lucknow Bench of Allahabad High Court Justice Pradeep Kant which went into the maintainability of the BJP leader's detention by the UP government under the NSA imposed on March 29.
Varun had also personally appeared before the Board.
29-year-old Varun, who is BJP's Lok Sabha candidate from Pilibhit in UP, is currently on parole following a Supreme Court order after remaining in jail for nearly three weeks. He was released from Etah jail on April 16. His parole expires on May 14.
"I have all along expressed full faith in the judiciary and that has been completely vindicated today. I am grateful that this conspiracy by the state and the Centre for petty political gain has been exposed and deleted," Varun said.
He also said the authorities have to answer for his "illegal detention" for 20 days.
"For the 20 days that I have spent in illegal detention will have to be answered 20 times over by the authorities to the people of India. It is a historic moment, not just for me but also for Indian Democracy," Varun said in a statement.
Earlier, UP Home Secretary Javed Ahmad said, "NSA invoked against Varun Gandhi has been held invalid by the Board."
The UP government had invoked the stringent NSA against Varun for his alleged hate speeches during a political campaign in Pilibhit.
Varun was let off by the three-member Advisory board headed by senior judge of the Lucknow Bench of Allahabad High Court Justice Pradeep Kant which went into the maintainability of the BJP leader's detention by the UP government under the NSA imposed on March 29.
Varun had also personally appeared before the Board.
29-year-old Varun, who is BJP's Lok Sabha candidate from Pilibhit in UP, is currently on parole following a Supreme Court order after remaining in jail for nearly three weeks. He was released from Etah jail on April 16. His parole expires on May 14.
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