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Aid and Private Funding in Development, governt terming both as anti…
Aid and Private Funding in Development
development aid in India
finan. aid by govnmnts, other agencies in developing contrty
long term strategy -alleviate poverty
support
envir.
social
political deve.
econo.
de
deve. paradox
india
largest economy
high growth rate
large defense expenditure
yet dev. aid
corruption
siphoned by governmt officials for private
identification of projects
money is waste
due to
proposals not sufficiently investigated before aid
influence recipient countries
debt serving
failure-cause- global econ. slowdown
foreign aid to india
developed countries
0.7% Overseas developmnt assistance
developing coun.
2011
6 largest
2012
$1.6
2013
$2.4
india itself giving aid
2015-$1.6
despite itself receiving large aid
2015 & after aid declined significantly
reason
rapid eco. progress
changing geo political axis
sees & project itself
global power
partner to developed nations
U.K stopped aid
india - "aid is past trade is future
U.S. aid
clean energy, food security, health
dropped 25% recently
Foreign Contribution Regulation Act, 2010
regulate acceptance & utilization
foreign funds
donations
gifts or grants
replaced
FCRA 1976
prohibit
political organ.
electronic media
registration required - persons accepting aid
annual report by NGOs to authority in the prescribed form
income & expenditure stmnt., receipt & payment account, balance sheet
nil for NGOs not receiving forei. aid
central gov.
deny, suspend or cancel certificate
organi. must renew FCRA certification 5 yrs
prohibits Forei. con.
election,
judge
journalist
columnist
newspaper
publication
cartoonist,
detrimental to national interest
fore. contri. utilized propose received
admin. expenses - 50% fore. contri.
report by bank such authority as prescribed
foreign remittance received, sources and manner
new provision - suspension & violation of provisions
wide scope
natural person, body corporate, Indian entities (whether incorporated or not) , NRIs, overseas branches/ subsidiaries of Indian companies and other entities formed or registered in India
Recent issues with the FCRA act and impact on the NGOs
home ministry cancelled registration 19,000 NGos since 2011
2,547 NGOs not adhered
govnt orders
no annual reciepts
13%
religious institutions
awareness campaign
IB blames
slump in india's GDP
some Christian
NGOs - proselytization
relaxed penalties - NGOs violating FCRA norms
instead of cancellation
hefty fines
foreign funding -PP
amendment in FCRA to exempt political parties
finance bill 2016 - amendment shielded PP violating norms FCRA
Finance Bill 2018 amended the repealed Foreign Contribution Regulation Act (FCRA), 1976 retrospectively.
AIm
political parties from scrutiny of funds received from abroad since 1976.
Foreign firms - NGOs & political parties.
impact
NGOs try become political parties.
cause
political donations tax free. Section 13A - Income Tax Act, 100% tax exempt for income derived from any source, including business income
Foreign Aid in India
given more aid than received since 2015
given-7719.65 B -2015
received 2015- 2144.77 B
reasons
devel. aid serves not only eco. but strategic
permanent member of UNSC
neighborhood first policy
neighborhood biggest recipient
bhutan
5,368.46
afganisthan
2nd largest donor
Ethnic issues
Sri Lanka
contruc, & rehabil tamilians
Soft power
south Asia
disaster prone
countri. can't carry work on their own
governt terming both as anti national
religious insti.-fueling terrorist activities
awareness campaign
targeting devel. projects of govern.
experts- paradox
india promotes fdi
but
throttles contri. Ngos
: