The Budget session 2013 commenced with the President, Pranab Mukherjee, addressing Parliament on February 21, 2013.  The address is a statement of the policy of the government.  Yesterday a Motion of Thanks was moved in the Lok Sabha and a detailed discussion took place on the President’s address.  (The significance of the President’s speech has been discussed in an article published in the Indian Express.) Below are some legislative and policy items from the agenda of the central government outlined in the speech.

  • Amend the Prevention of Corruption Act to punish the guilty and protect the honest public servants more effectively.
  • The Direct Benefits Transfer system has been launched to enable government sponsored benefits such as scholarships, pensions and maternity benefits to be deposited in the beneficiaries Aadhaar linked accounts. This will be expanded to cover wages and subsidies on food and LPG. This system will not substitute public services and will be complementary to the Public Distribution System.
  • In a bid to promote Micro, Small & Medium Enterprises, 20% of all government procurement is required to be from Micro and Small Enterprises.
  • The coverage under the Mid-day Meal Programme to be expanded to pre-primary schools.
  • Godown storage capacity of 181 lakh tons will be created between 2013 and 2015 across the country with additional storage space of 5.4 lakh tons in the North East.
  • A Rural Water Supply and Sanitation Project for Low Income States, estimated at nearly Rs 5000 crore, is being developed to assist States that are lagging behind in the coverage of piped water supply.
  • Two and a half lakh gram panchayats will be connected with broadband facility under the National Optical Fibre Network project by December 2014.
  • A shift in central funding to states for higher education through a new programme called the Rashtriya Uchchatar Shiksha Abhiyan is being considered.
  • The government proposes to establish two new major ports at Sagar Island, West Bengal and the other in Andhra Pradesh, with a total additional capacity of around 100 Million Tonnes Per Annum (MTPA).  ‘In-principle’ approval has been given for setting up an airport at Aranmula (Kerala) apart from airports at Navi Mumbai, Mopa (Goa) and Kannur (Kerela).
  • In 2012-13, 2600 km of roads are expected to be constructed and contracts for 3000 km of new roads are expected to be awarded. A new approach to road construction, the EPC mode, has been put in place. A length of 2900 km of highways will be put under the Operate, Maintain and Transfer system, which will improve road maintenance.

Legislative and policyagenda outlined in President’s addresses between 2009-2012 and their  status

Legislation/Policy

Status

Legislations mentioned in the President’s Address between 2009-12

  To be introduced
Goods and Services Tax Constitutional Amendment Bill introduced
The National Food Security Bill Introduced
Amend the Land Acquisition Act and enact the Rehabilitation and Resettlement Bill Introduced
Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Bill Passed
The Whistleblower Bill Pending
The Judicial Standards and Accountability Bill Pending
The Lokpal and Lokayuktas Bill Pending
A model Public Services Law (to cover officials providing important social services and commits them to their duties) Two bills introduced: the Electronic Services Delivery Bill and the Citizen’s Charter Bill
The Right to Free and Compulsory Education Bill Passed
The National Council for Higher Education Bill Introduced
Foreign Educational Institutions Bill Introduced
Protection of Children from Sexual Offences Bill Passed
The Women’s Reservation Bill Pending
The Mines and Minerals (Development and Regulation) Bill Introduced
The Public Procurement Bill Introduced
The General Anti-Avoidance Rules Scheduled for 2016[1]
Amend of RTI Act (to provide for disclosure by government in all non-strategic areas) To be introduced

Policy items mentioned in the President’s Addresses between 2009-2012

National Mission for Female Literacy – all women to be literate by 2013-14 National Literacy Mission recast in September 2009 to focus on female literacy; as per 2011 census the female literacy rate in India is 65.46%[2]
Disposal of remaining claims in 2010 under the Scheduled Tribes and Other Traditional Forest Dwellers Act As on February 28, 2010, 27.16 lakh claims had been filed, 7.59 lakh titles had been distributed and 36,000 titles were ready for distribution;[3] as on July 31, 2012, the number of claims filed for the recognition of forest rights and titles distributed are 32.28 lakh and 12.68 lakh respectively[4]
Introduction of Minimum Support Price (MSP) for Minor Forest Produce (MFP) being considered Based on the recommendations of the Committee constituted by Ministry of Panchayati Raj to look into aspects of MSP, Value addition and marketing of MFP in Fifth Schedule Areas, a Central Sector Scheme of MSP for MFP has been contemplated[5]
Voting rights for Indian citizens living abroad Bill passed; NRIs can vote at the place of residence mentioned in their passport
12th Plan target growth 9% with 4% growth for the agricultural sector GDP grew by 5.4% and the agriculture sector by 1.8% in the first half of the current fiscal year (2012-13)
Establish national investment and manufacturing zones to promote growth in manufacturing Under the National Manufacturing Policy, 12 National Investment and Manufacturing Zones are notified, 8 of them along the Delhi Mumbai Industrial Corridor and 4 others at Nagpur, Tumkur, Chittor and Medak
Strengthening public accountability of flagship programmes by the creation of an Independent Evaluation Office. Government has approved setting up of an Independent Evaluation Office and the Governing Board will be chaired by Deputy Chairman, Planning Commission
Unique Identity Card scheme to be implemented by 2011-12 Bill to give statutory status pending in Parliament; enrollment until February 2013 is approximately 28 crore[6]
Establishment of National Counter-Terrorism Centre Proposed launch of NCTC in March 2011 on hold as consultation with states is on; meeting held by the union government with the Chief Ministers of all the States in May 2012
Conversion of analog cable TV system to digital by December 2014 Government has implemented the first phase of digitization in Kolkata, Delhi, Chennai and Mumbai; by March 31, 2013, 38 cities with a population of more than one million will be covered
A roadmap for judicial reform to be outlined by the end of 2009 and implemented in a time-bound manner Vision statement formulated in 2009 outlining road map for improving justice delivery and legal reforms and steps to reduce pendency in Courts; setting up of a National Mission for the Delivery of Justice and Legal Reforms to improve court administration and reduce pendency was approved in June 2011

*Introduced means introduced in one House; Pending means passed by one House and pending in the other House; Passed means passed by both Houses of Parliament.


[1] “Major Recommendations of Expert Committee on GAAR Accepted”, Press Information Bureau, Ministry of Finance, January 14, 2013.

[2] Lok Sabha, Starred Question No. 175, December 5, 2012, Ministry of Human Resource Development.

[3] Lok Sabha, Unstarred Question No. 2672, March 12, 2010, Ministry of Tribal Affairs.

[4] Lok Sabha, Starred Question No. 108, August 17, 2012, Ministry of Tribal Affairs.

[5] “PM approves Constitution of National Council for Senior Citizens”, Press Information Bureau, February 1, 2012, Prime Minister’s Office.

[6] https://portal.uidai.gov.in/uidwebportal/dashboard.do

As of April 13, 2020, there are 9,152 confirmed cases of COVID-19 in India.  Of these, 857 patients have been cured/discharged and 308 have died.  As the spread of COVID-19 has increased across India, the central government has continued to announce several policy decisions to contain the spread, and support citizens and businesses who are being affected by the pandemic.  In this blog post, we summarise some of the key measures taken by the central government in this regard between April 7 and April 13, 2020. 

image

Source: Ministry of Health and Family Welfare, PRS.

Health

Supreme Court orders free testing for COVID-19 and provision of personal protective equipment for healthcare workers

  • Free testing for COVID-19: The Supreme Court held that COVID-19 tests should be free of cost for persons belonging to economically weaker sections as notified by the government and those covered under the Ayushman Bharat scheme, irrespective of whether they are conducted in private or public laboratories. Further, it held that COVID-19 tests may only be carried out in laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories, or any agencies approved by the World Health Organisation or Indian Council for Medical Research.  Prior to this order, tests were free of cost in government laboratories.  However, private laboratories were permitted to charge up to Rs 4,500 per test.  

  • Personal protective equipment for healthcare workers: The Supreme Court held that availability of appropriate personal protective equipment (PPE) for front line healthcare workers must be ensured by the government.  PPE includes gloves, masks, goggles, face shields, and shoe covers. Usage of PPE must be based on guidelines provided by the Ministry of Health and Family Welfare and the World Health Organisation.   Further, it directed the government to promote domestic production of PPE by means such as allowing movement of raw material.  Restriction on exports of PPE may also be instituted.
     

  • Security for healthcare workers: The Court also noted that healthcare workers treating COVID-19 patients were facing violence by the public due to stigma associated with their potential exposure to COVID-19.  The Court held that states and union territories should direct police authorities to provide security to doctors and medical staff in hospitals, places where persons have been quarantined, and while conducting screening visits.  Necessary action must be taken against persons who obstruct and commit any offence in respect to performance of duties by doctors, medical staff and other government officials working to contain the outbreak of COVID-19. 

Exemptions from customs duty and health cess for certain items

The central government has exempted the levy of basic customs duty and health cess on certain items.  These include ventilators, face masks, PPE, COVID-19 testing kits, and items necessary to manufacture these items.  The exemptions will remain in force until September 30, 2020.

Financial Assistance 

COVlD-19 emergency response and health system preparedness package

The central government approved the COVlD-19 emergency response and health system preparedness package.  It will be implemented in three phases from January 2020 to March 2024.  The objectives of the package include: (i) strengthening national and state health systems, (ii) support preparedness for COVID-19, (iii) procure essential medical equipment and drugs, (iv) setting up laboratories for surveillance, and (v) biosecurity. 

The Ministry of Health and Family Welfare has initiated release of funds for phase 1 of the programme which will last until June 2020.  These funds will be utilised for activities such as: (i) developing hospitals and isolation wards for COVID-19 patients, (ii) providing ventilators, (iii) expansion of diagnostic capacities, and (iv) community surveillance for the disease.  

Permission granted for partial withdrawal from National Pension System

Subscribers of the National Pension System may make partial withdrawals to fulfil their financial needs.   Withdrawals will be permitted on formal request by the subscriber.  Funds may be utilised for the treatment of the illness of a subscriber, his spouse, children (including adopted children), or dependent parents.

All pending income tax refunds up to five lakh rupees to be issued 

To provide immediate relief to businesses and individuals, all pending income-tax refunds up to five lakh rupees, will be issued immediately.  This is estimated to benefit approximately 14 lakh taxpayers.  Further, all pending GST and Customs refunds will be issued.  This will benefit around one lakh business entities.  The total refund granted will be approximately Rs 18,000 crore.

Compensation for Food Corporation of India Employees in case of death due to COVID-19

The central government has approved the proposal for monetary compensation to 1.08 lakh workers of the Food Corporation of India (FCI) including 80,000 labourers who are working to supply food grains across the country. Currently, families of FCI employees are entitled to compensation in the event of death due to terrorist attack, bomb blast, mob attack or natural disaster.  However, the regular and contractual labour of FCI are not covered. Under this proposal, all workers on duty will be insured in the event of death due to COVID-19 between March 24, 2020 and 23 September, 2020.  Regular labour will be entitled to 15 lakh rupees, contractual labour will be entitled to 10 lakh rupees, category 1 officers will be entitled to 35 lakh rupees, category 2 officers will be entitled to 30 lakh rupees, and category 3 and 4 workers will be entitled to 25 lakh rupees.

NGOs permitted to buy food grains directly from FCI for relief operations

The government noted that NGOs and charitable organisations are playing an important role in providing food to thousands of poor people during the lockdown.  To ensure uninterrupted supply of food grain to these organisations, the central government has directed FCI to provide wheat and rice to NGOs at the Open Market Sale Scheme rate.  These rates are generally reserved for state governments and registered bulk users.  This implies that these organisations can purchase one to ten metric tonnes of wheat and rice at a time from FCI at the predetermined reserve prices. 

Increasing financial resources

Reduction in salaries and benefits to Members of Parliament

The centre issued two Ordinances to amend: (i) the Salary, Allowances, and Pension of Members of Parliament Act, 1954 to reduce the salaries of MPs by 30% for a period of one year, and (ii) the Salaries and Allowances of Ministers Act, 1952, to reduce the sumptuary allowance of Ministers by 30% for one year.  The government also amended the rules notified under the 1954 Act to reduce certain allowances of MPs for one year, and suspended the MPLAD Scheme for two years. The MPLAD scheme enables members of parliament to recommend developmental work in their constituencies.  These changes are being made to supplement the financial resources of the centre to tackle the COVID-19 pandemic. The proposed reduction to the salaries and allowances of MPs and Ministers amounts to savings of around Rs 55 crore, and the suspension of the MPLAD scheme is expected to save Rs 7,800 crore.  These measures comprise 0.03% and 4.5% respectively, of the estimated amount required to fight the immediate economic distress unleashed due to COVID.

For more information on the implications of the reduction of salaries and benefits to MPs, please see here

For more information on the spread of COVID-19 and the central and state government response to the pandemic, please see here.