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Thursday, June 3, 2010

Pakistan's nuke arsenal bigger than India's

Swedish report reveals Pak's nuke plans
After racing ahead of India in ballistic and cruise missiles, with covert help from China and North Korea, Pakistan seems to be surging ahead on the nuclear front too.

A series of recent estimates by international nuclear watchdogs and reputed thinktanks hold that Pakistan has a total of 70 to 90 warheads compared to India's 60 to 80. China, in comparison, has around 240 warheads.

Even as global fears about the possibility of jihadis gaining access to Pakistan's nuclear arsenal, enriched uranium or technical know-how continue, its deadly inventory is only going to expand in the coming years.

Pakistan, after all, is supplementing its ongoing enriched uranium-based nuke programme with a weapons-grade plutonium one. Its two new heavy-water reactors being built at Khushab nuclear facility, with China's help, are clearly geared towards producing weapons-grade plutonium, as reported by TOI earlier.

In its latest annual world military expenditure report released on Wednesday, the Stockholm International Peace Research Institute (SIPRI) said Pakistan's weapons-grade plutonium production would jump seven-fold with the two new reactors at Khushab nearing completion.

"Our conservative estimates are that Pakistan has 60 warheads and could produce 100 nuclear weapons at short notice," said SIPRI, adding that Islamabad had earmarked its US-supplied F-16 fighters, Ghaznavi and Shaheen missiles as its nuke delivery systems.

India's nuclear weapons programme, in turn, has largely been plutonium-based, basically centred around the Pu-239 produced in research reactors like Cirus and Dhruva at Bhabha Atomic Research Centre.

Nuclear arsenals of India, Pakistan, and even China, pale in comparison to the gigantic ones of the two former Cold War foes, US and Russia. SIPRI estimates there are a whopping 22,600 active, inactive and stored nuclear warheads around the globe, enough to destroy it several times over.

While Russia has 12,000 warheads, 4,630 of them "deployed" ones, US has 9,600, which includes 2,468 of them operational. The two have, however, recently decided to slash their inventories by nearly one-third.

France comes third with 300, followed by UK with 225. Israel, which like India and Pakistan is not a signatory of the Nuclear Non-Proliferation Treaty, completes the list of the eight countries with nuclear weapons, with an arsenal of 80 warheads. Then, there is also North Korea, which has produced "enough plutonium for a small number of warheads", SIPRI said.

All these figures are not exact because countries keep their nuclear weapons programmes in thick cloaks of secrecy, which is only now being lifted by countries like US and UK.

India has been concerned about Pakistan's drive to bolster its nuclear arsenal over the past few years. While India has a clear and declared `no-first use' nuclear weapons doctrine, Pakistan has kept it vague to use as a tool to offset India's conventional military superiority.

Moreover, there is continuing controversy in India over whether the country has a credible thermonuclear or hydrogen bomb, given that a few experts contend the 45-kiloton thermonuclear device tested under the Pokhran-II tests in 1998 was "a fizzle".

The armed forces also remain quite worried about the lack of SLBMs (submarine-launched ballistic missiles) and ICBMs (intercontinental ballistic missiles) in their armoury, which are needed for a credible deterrent and for robust second-strike capabilities against both Pakistan and China.

At present, only the short-range Prithvi missile (150-350km) and the 700km range Agni-I have been fully operationalized till now. Agni-II (over 2,000km) and Agni-III (3,500km) are still in the process of being inducted by the Strategic Forces Command. India's most ambitious strategic missile Agni-V, with a 5,000km range, in turn, will be tested for the first time only by early-2011 or so.

Nuclear Warheads (Source: SIPRI)

Russia: 12,000
US: 9,600
France: 300
UK: 225
China: 240
Pakistan: 70-90
Israel: 80
India: 60-80

Monday, July 6, 2009

Budget 2009-2010 Highlights

Highlights

Taxes

· Surcharge of 10% on personal income tax removed

· No change in Corporate taxes

· Increase exemption on personal income tax by Rs 15,000 to Rs 2,40,000 for senior citizens

· Increase exemption on personal income tax by Rs 10,000 to Rs 1,90,000 for women

· Increase in exemption on personal income tax by Rs 10,000 to Rs 1,60,000 for all others

· Surcharge of 10% on personal income tax removed

· Propose to phase out surcharge on Direct Taxes

· To remove Fringe Benefit Tax

· To remove Fringe Benefit Tax

· States agree on basic structure of Goods and Services Tax

· To raise Minimum Alternate Tax(MAT) TO 15 % of book profit

· MAT hiked from 10% to 15%

· Commodity Transaction Tax scrapped

· Carry Forward Tax credit on MAT to 10 year

· To exempt Pension trust from Securities Transaction Tax

· To create Alternate Tax disputes resolution mechanism for foreign companies

· Software Technology Parks of India (STPI) extended by a year

· GST to be a dual regime with Central and state terms

· No Securities Transaction Tax (STT) on sale/purchase of shares by NPT

Reforms, Tax reforms

· To work on Saral 2 form to make income tax procedure simple

· Tax reform system to be completed in 4 years

· Balanced approach to financial de-regulation in justified

· Review and aims of the budget

· It a mandate we accept with humility and will do all we can for the welfare of the nation

· Strong mandate for growth

· Sensitive to the challenges of a young India

· The govt has to sustain a growth of 9% create 12 mn jobs per year

· Reduce poverty levels by half by 2014 infrastructure investment to more than 9% by 2014

· Focus to sustaining momentum in exports

· Strengthen primary healthcare delivery

· Plan to strengthen primary health care

· Broaden inclusive growth agenda

· Our target of agricultural growth at 4%

· Signs of revival of domestic industry

· Fiscal deficit has widened from 2.7 % to 6.2% of GDP

· Institutional reforms to bring the fiscal deficit under control

Challenges

· To get the GDP growth to 9% at the earliest

· To deepen the process of inclusive development

· To reenergise govt, govt must provide service with accountability

· Growth driver in the last 5 yrs has been private investment

· Structure of Indian economy has changes in last 10 yrs

· Now services constitutes more than 50% of GDP

· Increase investment in infrastructure to 9% by 2014

· To focus on infrastructure development

· Growth co-operative effort of Centre and States

· Job growth rate hit by dip in GDP

· Integration of Indian economy with the world has opened up new opportunities and new challenges

· Aim to return to FRBM target at the earliest

For revival

· Govt provided three stimulus package

· RBI took monetary measures to meet the needs of productive sector

· This led to fiscal deficit to rise to 6.2% in 08-09

· We achieved a growth of 6.7% of GDP last fiscal

· Signal of recovery visible in the last few months

· Uncertainty about revival of global economy remains

Infrastructure

· We had set up IFFCL to provide financial assistance to infra companies

· IIFCL will be given greater flexibility

· IIFCL will refinance 60% of bank loans in critical sectors

· IIFCL will evolve a take-out financing schemes for incremental funding in infra

· Fiscal stimulus at 3.5% of GDP helped economy revive

· Sensitive to the needs of young India

· Endeavour to make Budget participatory and ensure continuity

· Significant increase in capital inflows needs

· PPP to be encouraged especially in infrastructure

· Need to improve and strengthen regulatory framework

· To speed up Golden Quadrilateral Project

· Total investment of 100000 CFR in infrastructure

· Need to remove bottlenecks for speedy implementation of infra projects

· Highways allocated 23% more than 08-09

· Rs 15800cr for Railways

· JNURM allocation increased by 80% to Rs 12887 cr

· Basic amenities for urban poor to get more than 3000 cr to make country slum free in 5 yrs

· Provision for housing urban poor at Rs 3973 cr

· Allocation to NHAI increased to 23& Y-O-Y

· Fiscal deficit has widened to 6.7% of GDP

· Target agriculture credit inflows ay Rs 3.25 lakh cr

· · Focus of NCC, Gammon for highway development

· JNNURM to get more than Rs 12000 cr up 87%

· Basic amenities for urban poor to get more than 3000 cr to make country slum free in 5 yrs.

· Provision for housing urban poor at Rs 3973 cr

· Allocation to NHAI increased to 23& Y-O-Y

· Fiscal deficit has widened to 6.7% of GDP

· Target agri credit inflows ay Rs 3.25 lakh cr

· Focus of NCC, Gammon for highway development

· Rural electrification allocation up 27%

Agriculture

· Interest subvention scheme for agriculture loans to continue

· 60% population depended on agri

· Sustained increased in plan allocation

· Target credit flow Rs 325000 cr

· Loans upto 3 lakh at 7% per annum

· Those who pay their loans in time will get loans at 6%

· Task force set up to look into farmer suicides in Maharashtra

· Rajiv Gandhi Krishi Vikas Yojana allocation up by 30%

· Fertilizer subsidy to go to farmers directly

· To move towards Nutrient based subsidy regime

· Additional allocation of Rs 1,000 crore for accelerated irrigation project

· Central assistance for storm-water drainage project increased to Rs 500 crore from Rs 200 crore in the interim Budget

Exports

· Market development assistance schemes allocation up by 180% to 124 cr

· Interest subvention extended to march 2010 for employment extensive export sector

· Special fund for small industries development bank of Rs 400 cr

· Focus to sustain momentum in exports

· 2% Interest subvention for exporters

· Extension of interest subvention scheme extended upto March 2010 to cover sectors like handicrafts and handlooms

· Allocation for market development assistance scheme enhanced by 148 per cent

· To set up handloom mega clusters in Rajasthan, West Bengal and Tamil Nadu

· Export Credit Guarantee scheme extended till March 2010

Oil and gas

· Domestic oil prices should be in sync with global crude

· National gas grid to be set up

· Outlay for Assam Gas Project increased

· Effective interest rate is 8% for farmers with foreclosures

· Expert group to be set up petro product pricing

· Domestic oil prices should be in syncy with global crude

· To develop National Gas Grid

PSUs, banks and Insurance

· To hike promoter shareholding in PSUs

· Encourage people participation in disinvestment

· Banks and insurance will remain in public sector and will get all support

· Banking network to be expanded

· One banking centre in every block planned

· 160% hike in ADPRP

· Capital in fusion in PSU banks to keep them competitive

Inclusive development

· Creating entitlements backed by legal authority to provide basic facility to the aam aadmi

· NREGA gave employment to 4.4 cr household

· Reserve wage of RS 100 per day as an entitlement under NREGA

· Rs 39100 cr for 09-10 for NREGA an increase of 140%

· NREGA allocation increase at 144%

· New scheme PMAGY for integrated development of under developed villages

Pilot project this year

· Poverty eradication goal by 2014-15

· Interest subsidy to poor families for loans upto Rs 1 lakhs

Pension

· Substantially improve pension for armymen

· Pension benefit extended to war wounded being liberalised

· One Rank One Pension committee recommendations accepted

National Food Security

· BPL entitled by law for Rs 25 kg of rice/wheat at Rs 3 kilo

· Bharat Niraman allocation up 45%

· PM Gram Sadak Yojana allocation up to Rs 12000 cr

· Indira Gandhi Awas Yojana allocation up by 63%

Women and child development

· Focus on women self help groups

· 22 lakhs such groups of women active today, aim to link such self help groups to banks

· Corpus for such schemes to be raised to Rs 500 cr in this fiscal

· Aim to reduce female literacy by half in 3 years

· New scheme to give interest subsidy to poor students pursue any recognised course

Climate change

· Rs 562 cr for national river and lakes conservation

To build accountable institutions:

· RTI act an important step in ushering in accountability

· Unique ID project is major step in this regard: it also marks a beginning of the private involvement in projects of national importance

Police and security

· Rs 430 cr for police modernisation

· 1 lakh housing units for central paramilitary forces

· Borders: 2284 cr for strengthening of borders

Education

· Rs 50 crore for Chandigarh University

· Interest subsidy on loans for higher education

· Rs 2130 crore to set upto more IITs and IIMs

· Spending on higher education raised to Rs 2010 crore

Minorities

· Allocation hiked from Rs 1000 cr to 1700 cr in 09-10

· Scholarships for minorities

· AMU to get Rs 25 cr for each of its new campuses

· Rs 1740 crore outlay for minorities

Budget estimates

· Rs 1020838 cr total budget allocation for 09-10

· Out this more than Rs 6000 cr is planned expenditure while the rest is non-plan

· Increase in non-plan expenditure was due to pay commission and food subsidy

· Interest payment consists of 36% of non-plan expenditure

· Defence outlay up from Rs 105600 cr in 08-09 to 104703 cr in 09-10

· Total tax receipts expected at Rs 641079 cr

· Revenue deficit is estimated at 4.8% and 4.6 as per provisional account for 09-10

· Revenue deficit as percentage of GDP is pegged at 6.8%

· To spend Rs 10.20 lakh crore as total expenditure in 2009-10, crossing the Rs 10 lakh mark for the first time in history

· Increase in plan expenditure 34 %, non-plan at 37 %

· Revenue deficit projected at 4.8% in FY 10

· Fiscal deficit projected at 6.8 % in FY 10

Others

· DEPB scheme for print media extended

· Stimulus package for print media extended to Dec 31

· Hike in allocation for management of Mumbai Floods

· New project for modernisation of employment exchange

· A national web portal for the same

· New programme for rehabilitation of those effected by cylone Alia