Govt needs to focus on trimming extravagant costs
Every time a new party comes into power, one of the most predictable things that gets spoken about is that of trimming costs, especially what would be considered as ‘extravagant’ in normal parlance. But all these talks bit dust few months later, is the bitter truth. CM Kumaraswamy has instructed chief secretary to ensure extravagance in terms of money should be brought down. This is the most welcome move. His commitment is indeed honorable.
New ministers splurging on renovation, new car, television, household goods, furniture and remodeling of even official residence is ugly but a normal practice by now. People do not hesitate to even spend crores of rupees to make their govt residences vastu complainant. This is sure to damage CM’s commitment to bring down exorbitant spending.
After the coalition government came into power, ministers have started conducting pooja, homa and havanas in their offices and have been renovating their places of residence. This work alone has cost Rs 20 crore by now. Though some ministers were part of the previous government as well, even they utilized money to carry out works at their house as per vastu or any other aspect they place their trust in. When BJP’s Jagadish Shettar was the CM, the chief whip of that party had demolished a wall in their office at Vidhana Soudha, and then built it again as per the vastu advice. Carrying out homa, Havana and other rituals in Vidhana Soudha is the ultimate insult we cause to the democracy. One may have them at their personal residences which is a closed space. Not only ministers, even officers renovate offices when they assume new posts, to give a modern touch to their workplace. New lamps, toilets and upholstery cost quite a bit of funds from the govt exchequer.
CM Kumaraswamy was chosen by people for his promise to waive off loans of the farmers. His govt has to collate resources to be able to execute this promise which would cost close to Rs 53,000 cr to the state exchequer. Just telling his ministers and officers to cut down on exorbitant costs would not do any good unless the CM instructs them in unambiguous terms as to what is allowed and what isn’t. CM has not occupied his official bunglow, and continues to live in his private residence in JP Nagar. He is travelling by Air India whenever the need for travel arises. The rest of the ministers too need to focus on staying simple on many fronts.
The tax money that gets spent on unnecessary costs and expenses does not send the right message about the new government to the people of the state. CM and his ministers are just caretakers of the whole state. They need to be transparent in all aspects of their tenure in the government. The lakhs and crores they spend on office renovation, should actually be reserved for welfare programmes of people.
The new government should not only focus on bringing down exorbitant costs but also ensure the number of Boards and Federations are also trimmed as per the need, since they are often seen as rehabilitation centres for those who want to use official power and resources without contributing much. There are nearly 90 Boards in the state, and about 75% of them are bleeding bad. They seem like white elephants that need a lot of money to maintain with no exact outcome or contribution to the state. The government needs to take a bold step to shut them down. The Academies and Authorities that do not contribute to any growth of the state whether in terms or identity, heritage or any other tangible aspect, also need to be dealt with iron hand. There is a lot of duplication in these small units that carry out similar work. Hundreds earn salaries through these bodies that serve no tangible purpose.
A strong decision regarding cutting down on expenses was taken when UPA government was in power. NDA government continued this practice as well. Officers were instructed not to travel by first class, and more such extravagant expenses were brought down.
If CM Kumaraswamy needs to waive off the farmers loans, he needs Rs 53,000 cr for the purpose and half of this needs to come from the central government. Whether central government contributes for this purpose or not, the state will have to carry out its commitment without fail. Hence all the unnecessary administration costs need to be brought under strict monitoring and the financial resource will have to be put together to provide relief to the farmers. A strong political will is needed to carry out this assurance the CM had given to his people. They need to shun extravagance and lead a simple life for the larger good, and to be appreciated by people of the state.
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China slaps a 34 pc tax on all US imports in retaliation for Trump's tariffs
Bangkok (AP): China announced Friday that it will impose a 34 per cent tax on all US imports next week, part of a flurry of retaliatory measures to US President Donald Trump's new tariffs that delivered the strongest response yet from Beijing to the American leader's trade war.
The tariffs taking effect Thursday match the rate that Trump this week ordered imposed on Chinese products flowing into the United States. In February and March, Trump slapped two rounds of 10 per cent tariffs on Chinese goods, citing allegations of Beijing's role in the fentanyl crisis.
The US stock market plunged Friday following China's retaliatory moves. They include more export controls on rare earth minerals, which are critical for various technologies, and a lawsuit at the World Trade Organization over what Trump has dubbed reciprocal tariffs.
China also suspended imports of sorghum, poultry and bonemeal from six US companies, added 27 firms to lists of companies facing trade restrictions, and launched an anti-monopoly investigation into DuPont China Group Co., a subsidiary of the multinational chemical giant.
Trump posted Friday on Truth Social: “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO.”
Yet he also indicated he could still negotiate with China on the sale of TikTok even after Beijing pressed pause on a deal following the new tariffs. On Friday, he extended the deadline for the social media app to divest from its Chinese parent company, per a federal law, for another 75 days.
“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs,” Trump posted on his social media site. “We look forward to working with TikTok and China to close the Deal.”
China's response to tariffs grows tougher
Beijing's response is “notably less restrained” than during the recent two rounds of 10 per cent tariffs on Chinese goods, and that “likely reflects the Chinese leadership's diminished hopes for a trade deal with the US, at least in the short term,” wrote Gabriel Wildau, managing director of the consultancy Teneo.
He said Beijing's tough response could trigger further escalation, with no sign that Chinese President Xi Jinping and Trump might meet soon or get on the phone to ease the tensions.
If China's previous responses were scalpels, this time it drew a sword, said Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, a Washington-based think tank.
“China's new tariffs stop short of full-blown trade war, but they mark a clear escalation — matching Trump blow-for-blow and signaling that Xi Jinping won't sit back under pressure,” Singleton said.
But the escalation also is squeezing out space for diplomacy, he warned.
“The longer this drags, the harder it becomes for either side to deescalate without losing face,” Singleton said.
What China's retaliatory measures look like
In Beijing, the Commerce Ministry said it would impose more export controls on rare earths — materials used in high-tech products such as computer chips and electric vehicle batteries. Included in the list was samarium and its compounds, which are used in aerospace manufacturing and the defense sector. Another element called gadolinium is used in MRI scans.
China's customs administration said it had suspended imports from two US poultry businesses after officials detected furazolidone, a drug banned in China, in shipments from those companies. It said it found high levels of mold in the sorghum and found salmonella in the bonemeal feeds from four other US companies.
The Chinese government said it also added 16 US companies to the export control list, subjecting them to an export ban of dual-use products. Among them are High Point Aerotechnologies, a defense tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company.
An additional 11 US companies were added to the unreliable entity list, including the American drone makers Skydio and BRINC Drones, banning them from import and export activities as well as making new investments in China.
In announcing its WTO lawsuit, the Commerce Ministry said Trump's new tariffs move “seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order.”
The ministry called the tariffs “a typical unilateral bullying practice that endangers the stability of the global economic and trade order.”
Beijing's previous tariff moves
In February, in response to Trump's first 10 per cent tariff, China announced a 15 per cent tariff on imports of coal and liquefied natural gas products from the US It separately added a 10 per cent tariff on crude oil, agricultural machinery and large-engine cars.
A month later, Beijing responded to Trump's second round with additional tariffs of up to 15 per cent on imports of key US farm products, including chicken, pork, soy and beef. Experts then said Beijing exercised restraint, leaving room for negotiations with Washington.
By now, dozens of US companies are subject to controls on trade and investment, while many more Chinese companies face similar limits on dealings with US firms.
While friction on the trade front has been heating up, the two sides have maintained military dialogue.
US and Chinese military officials met this week for the first time Trump took office in January to share concerns about military safety on the seas. The talks held Wednesday and Thursday in Shanghai were aimed at minimizing the risk of trouble, both sides said.
