The Constitution (Eightieth Amendment) Act, 2000, which seeks to provide an alternative scheme for sharing taxes between the Union and the States, is based on the recommendations of the Tenth Finance Commission. It has come into force with effect from April 1, 1996. Under the provisions of the Act, amendments have been made in Articles 269, 270 and 272 of the Constitution of India. Whereas, Article 272 has been omitted and Article 270 substituted, Article 269 has been only amended.

    Department of Telecommunication Operations (DTO) has announced new tariff orders to be implemented from 1^st October 2000 in accordance with the latest TRAI’s Telecom Tariff (9^th Amendment) Order, 2000 of the 2^nd Phase of Tariff Re-balancing. The order has to come into force from 1^st October, 2000.

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    The Asian Development Bank (ADB) is expected to fund projects in India to the extent of US$ 1.2 billion during the current year. In addition to this, the Bank plans to gradually raise the funds earmarked for projects in the country over the next three years. This was conveyed to Union Finance Minister, Shri Yashwant Sinha when he met Mr. Tadao Chino, President of ADB in Prague yesterday.

    The Long Term Vision exercise undertaken by the ADB for the Bank’s programmes in India was discussed in the meeting. Shri Sinha emphasised that interests of the borrowers, the members and donors need to be kept in view while developing the long term strategy of ADB. The Bank has an important role to play in supporting the government’s initiative for poverty reduction in India and other developing countries, he said. He urged the ADB to allow India access to the concessional Asian Development Fund for poverty reduction programmes. Shri Sinha also asked for rationalizing the Ordinary Capital Resource (OCR) charges as they cause hardship to countries like India that borrow from the OCR window. He drew attention towards the expertise available in India in wide ranging disciplines and urged ADB to consider drawing upon such expertise for filling up senior positions in the Bank.

    Responding to Shri Sinha, Mr. Chino said that the Bank’s endeavour would be to provide loans to India on reasonable terms. He appreciated the services rendered by Indian personnel working in the Bank.

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    With a view to further control the growth in non-plan non-developmental expenditure, the Government has decided to enforce several austerity measures with immediate effect. In the guidelines issued to the Secretaries and the Financial Advisors in various Ministries and Departments apart from Chief Secretaries of all State Governments and Heads of Public Sector Enterprises today, it has been said that there should be a mandatory 10 per cent cut in the budgetary allocation for non-plan non-salary expenditure of all Ministries/Departments and utmost economy should be exercised in use of staff cars and official vehicles. There would also be a 10% cut in the consumption and allocation of funds for expenditure on POL for staff cars.

    The other measures announced include strict implementation of existing instruction on 10 per cent cut in posts, abolition of posts lying vacant for more than a year; ban on creation of new posts for one year; restrictions on foreign travel; reduction of foreign travel allowances of all classes of officials and non officials and observance of austerity while organizing seminars/workshops.

    The government today announced the release, with immediate effect, of an additional quantity of 50,000 metric tonnes of onion for export from Maharashtra. According to the proposal cleared by Shri Murasoli Maran, Minister of Commerce and Industry, here this additional quantity is being placed at the disposal of NAFED (National Agricultural Cooperative Marketing Federation of India) to facilitate export of onions from Maharashtra. The decision is aimed at ensuring remunerative prices to the farmers of Maharashtra for their produce and at the same time, to assure the importers of onions in the overseas markets of steady supplies from India. The export is to be effected by 30 November, 2000. A Public Notice to this effect is being issued by the Directorate General of Foreign Today (DGFT) today.

    The Japanese Ambassador to India HE Hiroshi Hirabayashi called on the Secretary, Department of Company Affairs, Dr. P.L. Sanjeev Reddy here today and discussed with him the proposal of the Department for setting up of an Asian Institute for Corporate Governance wherein India and Japan will cooperate to provide for excellence in corporate governance. The exploratory talks lasted about an hour. Both sides agreed to cooperate with each other.

    The Union Minister for Law, Justice and Company Affairs Shri Arun Jaitley has announced a fast-track exit route for companies seeking striking off their names from the register of companies under Section 560 of the Companies Act, introduction of a new course of studies to meet the requirement of globalization of corporate sector by the Institute of Company Secretaries of India and global accounting standards by the Institute of Chartered Accountants of India. Stating this at a press conference here today, Shri Arun Jaitley said that these new measures would meet the standards of excellence in corporate governance in tune with the emerging globalization of Indian economy.

    Union Minister for Health and Family Welfare Dr. C.P. Thakur has announced here today that Government plans to start a Dental Institute soon at All India Institute of Medical Sciences. While he was inaugurating an exhibition of Organ Transplant at AIIMS, Dr. Thakur said that organ transplantation is now well established as an effective treatment for selected patients with end-stage organ failure. India has been facing acute shortage of organs because of very limited number of organ donors. This may be due to lack of awareness about organ donation among the Indians.

    Government has denied the report which appeared in tehelka.com on September 23, 2000 alleging the involvement of a Senior official in ISI activities. The report said that the official Shri Shishir Sinha had passed on crucial documents regarding ISI activities in India to women planted by the ISI in Delhi. The Home Ministry today clarified that it has not received any report purported to have been given by the Intelligence Bureau with regard to the conduct of Shri Sinha who was till recently working as a Director in the Ministry. The Home Ministry also regretted that the name of a Central Minister has also been dragged in the report without ascertaining the factual position in this regard.

    The Minister of Communications, Shri Ram Vilas Paswan in a statement here today said that there are still some misconceptions and apprehensions in the minds of telecom employees with regard to Pensionary Benefits, Earned Leave, Half-Pay Leave, and Status of General Provident Fund (GPF). A section of the media has also inadvertently misreported on these issues.

    The 62^nd Meeting of the Development Committee of World Bank and IMF chaired by the Finance Minister, Shri Yashwant Sinha has observed that globalization is for the benefit of all since its objective is global poverty reduction. The Ministerial Meeting agreed that there is a continuing public debate about the benefits and risks of globalization as economic and social progress which should have resulted from a more integrated global economy, has not always happened. It was therefore recognized that it was the responsibility of the global community to work with the bank and the fund and other bodies in bringing about economic and social progress, equity and stabilization.

    The meeting was attended by 24 Ministers representing different constituencies of the 180 member countries. The USA, Britain, Germany, France and Japan have single member fixed constituencies. The Indian constituency comprises Bhutan, Bangladesh and Sri Lanka in addition to India. This is the first time that Indian Finance Minister is chairing such an important committee meeting.

    The Committee emphasized that there are large number of areas in which country efforts at development have to be backed by regional and global action such as in the fields of communicable diseases like HIV/AIDS, malaria and tuberculosis. These global public goods have to be funded by the international community and the Bank has an important role in mobilizing resources, besides providing technical and advisory services. Ministers also highlighted the role of the Fund and the Bank in strengthening international financial architecture. The perspective of the developing countries has to be taken into account while developing appropriate standards and codes.

    The committee underscored the need for the bank to tailor its country support based on the specific circumstances prevailing and that it ruled out a common, one-size-fits-all approach. Unless programs and policies are locally relevant, they would not work. Detailed country diagnostic research was required. Specific new instruments like poverty reduction support credit could only be evolved and made effective if it took all these circumstances in mind and was consistent with each country's budgetary cycles and development policies.

    There are large areas where the private sector is hesitant to enter. The bank would therefore continue to have an active role in reducing poverty in middle-income countries. The bank was mandated to see how it could reduce its cost of doing business.

    Earlier Finance Minister, Shri Yashwant Sinha and British Chancellor of the Exchequer, Gordon Brown, jointly chaired a meeting of the Development Committee and the International Monetary and Finance Committee of the IMF. This meeting took up the issue of extending broader, faster and deeper relief to heavily indebted poor countries (HIPC). Till now 20 countries had been given a combined debt service relief of US$ 30 billion. A further 10 countries are to be given this relief before the end of the year. The meeting was held in the backdrop of increased criticism about failure of the richer countries and the Fund and the bank to act decisively in this regard. Critics alleged that though the Cologne Summit of G-7 in 1999 had promised much, in actual effect too little had been done.

    The Committee therefore while appreciating the greater flexibility that has now been adopted, suggested that all donors and creditors should meet their commitments of financial support. They supported the linkage between debt relief and poverty reduction and emphasised that a global effort was required to help these countries move towards greater poverty reduction.

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GEORGE FERNANDES IN MAURITIUS

    Defence Minister Shri George Fernandes has arrived at Port Louis in Mauritius today on his way to South Africa. The visit of the Defence Minister is the first high-level interaction with Mauritius since the new government was formed there early this month. In Mauritius, Shri Fernandes is slated to meet the President Shri Cassam Utten, Prime Minister Shri Anerood Jugnauth, Deputy Prime Minister and Minister of Finance Shri Berenger Paul Raymond and former Prime Minister and leader of opposition Dr Navinchandra Ramgoolam.

    Shri Fenandes' visit will provide an excellent opportunity for India to establish contact with the leadership of the new government and to consolidate the close bilateral ties based on age old bonds of common kinship and culture. The Defence Minister will also visit the Indira Gandhi Centre for Indian Culture where he will interact with prominent members of the Indian origin community.

    The Defence Minister will arrive at Johannesburg tomorrow to undertake a three day visit to South Africa.

    Free entry to the visitors will be allowed at National Rail Museum ,Chanakyapuri,New Delhi to commemorate the World Tourism Day on Wednesday, September 27,2000. The theme for the day would be "Technology and Nature" The Museum will be open from 9.30 a.m. to 7.30 p.m. and the entry will be allowed till 7.00 p.m.

    The Museum will give an opportunity to the visitors to experience romance and nostalgia associated with the Railways. The highlights include Fairy Queen, Star Exhibits, Steam Monorail, Joy Train, Films, Souvenirs, Cafeteria and beautiful lawns.