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Finance Minister Sitharaman targets Manmohan, Rajan for the present economic mess

Finance Minister Nirmala Sitharaman has accused the Manmohan Singh-Raghuram Rajan combination for the present economic crisis. Pointing at bad loans in state-run banks when the Congress-led United Progressive Alliance was in power, Sitharaman held the former PM and ex RBI Governor responsible.

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Finance Minister Sitharaman

Finance Minister Nirmala Sitharaman has accused the Manmohan Singh-Raghuram Rajan combination for the present economic crisis. Pointing at bad loans in state-run banks when the Congress-led United Progressive Alliance was in power, Sitharaman held the former PM and ex RBI Governor responsible for subjecting public sector banks to their “worst phase”.

“I have no reason to doubt that Rajan feels for every word of what he is saying. And I’m here today, giving him his due respect, but also placing the fact before you that Indian public sector banks did not have a worst phase than when the combination of Singh and Rajan, as Prime Minister and the Governor of the Reserve Bank of India, had. At that time, none of us knew about it,” the Finance Minister said at the Columbia University’s School of International and Public Affairs on Tuesday.

Ms Sitharaman took a leaf out of the BJP’s attacking set pieces, often used in election speeches, to criticise the two economists. “It was in Rajan’s time as Governor of the Reserve Bank that loans were given just based on phone calls from crony leaders, and public sector banks in India till today are depending on the government’s equity infusion to get out of that mire,” she said, drawing laughter from the audience.

Bad loans of PSBs rose from Rs. 9,190 crore in 2011-2012 to Rs. 2.16 lakh crore in 2013-2014, according to the RBI. The National Democratic Alliance government came to power in May 2014.

Sitharaman has been busy answering questions over a slowdown in the economy, which is affecting key sectors from manufacturing to finance. She had announced a corporate tax cut in September aimed at boosting the economy but after initial boom, the move did not pay off.

Both, the former Prime Minister Manmohan Singh and ex RBI Governor Raghuram Rajan, are fierce critics of the economic policies of the government led by Prime Minister Narendra Modi. They had raised their voice over demonetisation, saying that the move broke the back of the cash-dependent informal economy.

“…I do respect Raghuram Rajan as a great scholar who chose to be in the central bank in India at a time when the Indian economy was all buoyant,” Ms Sitharaman said at the lecture at the university in New York City, organised by the Deepak and Neera Raj Centre on Indian Economic Policies. Former chairman of the government’s think tank NITI Aayog, Arvind Panagariya; economist Jagdish Bhagwati, and India’s Consul General in New York, Sandeep Chakravorty, attended the event.

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West Bengal government to launch Annapurna scheme from June 1, offering monthly aid of Rs 3,000 to women

The West Bengal government has announced the Annapurna Yojana, providing Rs 3,000 monthly financial assistance to eligible women aged 25–60 starting June 1, 2026. Existing beneficiaries of the older scheme will be automatically migrated subject to verification.

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The West Bengal government has officially notified the rollout of the ‘Annapurna Yojana,’ a welfare initiative aimed at providing assured monthly financial assistance of Rs 3,000 to women across the state. Introduced by the Department of Women and Child Development and Social Welfare, the scheme is structured to foster the socio-economic upliftment of women and will officially come into effect on June 1, 2026.

Under this new initiative, financial benefits will be transferred directly into the Aadhaar-linked bank accounts of qualified beneficiaries using the Direct Benefit Transfer (DBT) system.

Strict eligibility criteria outlined

According to the official government notification, specific guidelines have been established to determine eligibility for the monthly cash assistance:

  • Target Age Group: Eligible women must be between 25 and 60 years of age.
  • Employment Status: Applicants must not hold permanent government employment or receive a regular salary or pension from the central government, state government, statutory bodies, panchayats, municipalities, local bodies, or government-aided educational institutions.
  • Tax Criteria: Women who are income tax payers are excluded from the scheme.

Automatic migration and scrutiny rules

The new order clarifies that all current beneficiaries of the erstwhile Lakshmir Bhandar Scheme will be automatically migrated to the Annapurna Yojana. However, the transition involves a rigorous filtering process. Individuals identified as deceased, shifted, deleted, or recorded as absentee electors during the SIR-2026 exercise or voter slip distribution will be systematically excluded from the beneficiary list.

On the other hand, individuals who have filed appeals before the SIR Tribunal or submitted applications under the Citizenship (Amendment) Act will continue to receive financial assistance until their applications are legally resolved by authorities.

Application process for new beneficiaries

For fresh applicants, a dedicated online portal for the Annapurna Yojana will be launched on June 1, 2026. To ensure transparency, all new applications will undergo a strict multi-tier verification process by designated local administrative officials:

  • Rural Areas: Block Development Officers (BDOs) will manage the verification and inquiries.
  • Urban Areas: Sub-Divisional Officers (SDOs) will oversee the process.
  • Kolkata: Officials of the Kolkata Municipal Corporation (KMC) will handle applications within their jurisdiction.

Following field inquiries, verified reports will be uploaded directly to the digital portal. The respective District Magistrates and the KMC Commissioner will serve as the final sanctioning authorities in their corresponding jurisdictions to approve the disbursement of funds.

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Tamil Nadu Chief Minister C. Joseph Vijay travels to New Delhi for first official meeting with PM Narendra Modi

Newly sworn-in Tamil Nadu Chief Minister C. Joseph Vijay embarked on his first official visit to New Delhi to hold a high-level meeting with PM Narendra Modi, focusing on economic aid, fertilizer supply, and water rights disputes.

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Tamil Nadu CM Vijay and PM Modi

Marking his maiden official visit to the national capital since assuming office, Tamil Nadu Chief Minister C. Joseph Vijay is scheduled to meet Prime Minister Narendra Modi on Wednesday to deliberate on a wide range of state-specific matters. The Tamilaga Vettri Kazhagam (TVK) chief, who led his fledgling party to a historic victory in the recent assembly elections, took the oath of office on May 10. While the Prime Minister had previously extended his congratulations via social media, this marks the first formal in-person meeting between the two leaders.

According to official sources, the Chief Minister departed from Chennai on a chartered flight at 10:00 AM. The high-profile meeting with the Prime Minister is slated for 4:30 PM, where Vijay is expected to submit a comprehensive memorandum outlining Tamil Nadu’s long-pending welfare and developmental demands.

Key state matters on the table

The core of the discussions is expected to center around financial assistance and clearances for major infrastructure projects in the state. Media reports indicate that the Chief Minister will heavily push for additional funds to bankroll ongoing developmental initiatives.

Furthermore, the interstate Mekedatu water dispute remains a high-priority issue. Chief Minister Vijay has already written to the Prime Minister, urging him to instruct the Union Jal Shakti Ministry and the Central Water Commission (CWC) to reject the Detailed Project Report submitted by Karnataka for a reservoir at Mekedatu.

Other critical administrative concerns to be raised include ensuring an uninterrupted supply of fertilizers for the upcoming Kharif farming season and the removal of the 11 percent import duty on cotton to protect the raw material supply chain for the state’s textile industry.

A packed diplomatic itinerary

Accompanied by a team of senior officials and select cabinet colleagues, the Chief Minister’s itinerary extends beyond the Prime Minister’s Office. Vijay is likely to sit down with Union Finance Minister Nirmala Sitharaman to directly advocate for financial backings for key state portfolios.

The new administration has also drawn national interest for its structural innovations, including retaining critical departments under the Chief Minister—such as Home, Police, and Women Welfare—and carving out a dedicated cabinet-level Artificial Intelligence department, making Tamil Nadu only the second state in the country to do so.

Navigating a complex political landscape, the TVK-led government, which holds 108 seats in the assembly and enjoys backing from coalition partners including the Congress, Left parties, VCK, and IUML, is also using this trip to engage with national opposition leaders. Chief Minister Vijay is scheduled to meet Congress leaders Sonia Gandhi and Rahul Gandhi during his stay in the capital.

Before wrapping up his tour, the Chief Minister is slated to participate in a cultural event at Jawaharlal Nehru University (JNU), where he will formally inaugurate a statue of the revered Tamil poet-saint Thiruvalluvar installed by the Tamil Nadu government. Sources indicate that Vijay will conclude his official engagements and return to Chennai on Thursday.

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Assam clears Uniform Civil Code bill, becomes third state after Uttarakhand and Gujarat

Assam has officially become the third state in India to pass the Uniform Civil Code bill. The legislation was cleared by the state assembly on Wednesday despite strong objections raised by opposition lawmakers who claimed it impacts minority rights.

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The Assam Legislative Assembly on Wednesday passed ‘The Uniform Civil Code, Assam, 2026 Bill’, making it the third state ruled by the Bharatiya Janata Party (BJP) to adopt a uniform legal framework after Uttarakhand and Gujarat.

Opposition flags concerns over rights during house debate

The bill was taken up for final passage in the state assembly on Wednesday, sparking a heated discussion among lawmakers. During the legislative floor debate, opposition MLAs strongly voiced their concerns regarding the proposed law, stating that the legislation will hurt and compromise the fundamental rights of a certain section of society.

Despite objections from the opposition benches, the treasury benches cleared the passage of the bill, cementing Assam’s position as the latest state to move away from diverse personal laws in favor of a uniform code. Media reported that the legislative move follows extensive political discussions in the state surrounding civil regulations. With this enactment, Assam joins Uttarakhand and Gujarat, which have previously passed their respective uniform civil codes.

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