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Chidambaram suggests to Govt to borrow money or print notes as GDP shrinks in darkest year

Former Finance Minister P Chidambaram on Tuesday said that the financial year 2020-21 has been the darkest year of the economy in four decades and that the government must print money if necessary.

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Former Finance Minister P Chidambaram on Tuesday said that the financial year 2020-21 has been the darkest year of the economy in four decades and that the government must print money if necessary. 

Addressing a press conference on GDP, Chidambaram said, the GDP in 2020-21 is lower than the GDP in 2018-19. 2020-21 has been the darkest year of the economy in four decades. The performance in the four quarters of 2020-21 tells the story. 

The National Statistical Office (NSO) on Monday released the GDP numbers that showed the economy had contracted by 7.3 percent over FY20/21- its worst performance in more than 40 years.

Commenting on the figures, Chidambaram said, the first two quarters witnessed a recession (-24.4 and -7.4 per cent)… performance in the third and fourth quarters did not herald a recovery. The positive Q3 and Q4 rates – 0.5 and 1.6 percent – should be seen in the context of a very low base of 3.3 and 3.0 per cent in the corresponding quarters of the previous year.

He urged the Union government to borrow money or print banknotes and to spend it aggressively without worrying about the fiscal deficit. He said, This is not the time to worry about the fiscal deficit. So what if the deficit widens to 6.5%? We can’t lose another year like we lost the last year.

But the way the government is reacting, we are going to lose another year. My advice to the government is to act boldly and spend. Borrow or print money and spend, he added

Slamming the Modi-led government, he said, the current state of the economy is no doubt largely due to the impact of the pandemic, but it has been compounded by the ineptitude and incompetent economic management of the BJP-led NDA government.

Chidambaram claimed that the ruling government misled the people. When the first wave of the pandemic appeared to subside last year, the finance minister Nirmala Sitharaman and her chief economic adviser began to sell the story of a recovery. They saw “green shoots” when no one else did. They predicted a V-shaped recovery. It was a false story, he said.

Further criticising Sitharaman, the Congress MP said, Unless you take steps now, how will you tackle the third or fourth wave? The finance minister said budget proposals will kick in. The budget was placed on February 1. Today is June 1. How long it will take for the budget proposals to kick in?

What is most worrying is that the per capita GDP has fallen below ₹1 lakh, to ₹99,694. In percentage terms, it is a decline of (-) 8.2 per cent over the previous year. It is lower than the level achieved in 2018-19 (and maybe even 2017-18). The deeply worrying conclusion is that most Indians are poorer than they were two years ago, the former finance minister said.

Read Also: Month after Trinamool big win, rebels who joined BJP, seek re-entry

As the overall economic situation has pushed millions of people below the poverty line, the financial crisis of the states arising out of non-payment of their share of GST revenues will impact the vaccination programme, he apprehended. 

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Chaos mars Lionel Messi’s Kolkata GOAT Tour event as fans protest poor arrangements

Lionel Messi’s brief appearance in Kolkata was overshadowed by chaos as fans alleged mismanagement, prompting an apology and an official enquiry by the state government.

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Lionel Messi’s much-anticipated appearance in Kolkata turned chaotic on Saturday after thousands of fans alleged mismanagement at the Yuva Bharati Krirangan, leaving many unable to even see the Argentine football icon despite holding high-priced tickets

Fans express anger over limited access

The Kolkata leg of the G.O.A.T. Tour was billed as a special moment for Indian football fans, with ticket prices ranging between Rs 5,000 and Rs 25,000. However, discontent grew rapidly inside the stadium as several attendees claimed their view of Messi was obstructed by security personnel and invited guests positioned close to him.

As frustration mounted, some fans resorted to throwing chairs and bottles from the stands, forcing organisers to intervene and cut the programme short.

Event cut short amid disorder

Messi reached the venue around 11:15 am and remained there for roughly 20 minutes. He was expected to take a full lap of the stadium, but that plan was abandoned as the situation deteriorated soon after he emerged from the tunnel.

The disorder also meant that prominent personalities, including actor Shah Rukh Khan, former India cricket captain Sourav Ganguly and West Bengal Chief Minister Mamata Banerjee, could not participate in the programme as scheduled.

Organisers whisk Messi away

With fans breaching security and some vandalising canopies set up at the Salt Lake Stadium, the organisers, along with security personnel, escorted Messi out of the venue to prevent further escalation.

Several attendees described the event as poorly organised, with some fans calling it an “absolute disgrace” and blaming mismanagement for spoiling what was meant to be a celebratory occasion.

Mamata Banerjee apologises, orders enquiry

Chief Minister Mamata Banerjee later issued a public apology to Messi and the fans, expressing shock over the mismanagement. She announced the formation of an enquiry committee headed by retired Justice Ashim Kumar Ray, with senior state officials as members.

The committee has been tasked with conducting a detailed probe, fixing responsibility and suggesting steps to ensure such incidents are not repeated in the future.

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Delhi enforces new law to regulate fees in private schools

Delhi has notified a new law to regulate private school fees, capping charges, banning capitation fees and mandating transparent, committee-approved fee structures.

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Delhi School fees

The Delhi government has officially brought into force a new law aimed at regulating fees in private schools, notifying the Delhi School Education (Transparency in Fixation and Regulation of Fee) Act, 2025. The notification was issued on Wednesday, nearly four months after the Bill was cleared by the Delhi Assembly and received approval from Lieutenant Governor V K Saxena.

The Act establishes a comprehensive framework to govern how private unaided schools fix and collect fees, with a clear emphasis on transparency, accountability and relief for parents facing repeated fee hikes.

What the new Act provides for

Under the legislation, private unaided recognised schools can charge fees only under clearly defined heads such as registration, admission, tuition, annual charges and development fees. The law caps registration fees at Rs 25, admission charges at Rs 200 and caution money at Rs 500, which must be refunded with interest. Development fees have been restricted to a maximum of 10 per cent of the annual tuition fee.

Schools have also been directed to disclose all fee components in detail and maintain separate accounts for each category. Any fee not specifically permitted under the Act will be treated as an unjustified demand.

The law strictly prohibits the collection of capitation fees, whether direct or indirect. It further mandates that user-based service charges must be collected strictly on a no-profit, no-loss basis and only from students who actually use the service.

Accounting norms and restrictions on surplus funds

To ensure financial transparency, schools are required to follow prescribed accounting standards, maintain fixed asset registers and make proper provisions for employee benefits. The transfer of funds collected from students to any other legal entity, including a school’s managing society or trust, has been barred.

Any surplus generated must either be refunded to parents or adjusted against future fees, according to the notification.

Protection for students and parents

The Act also places restrictions on punitive action by schools in fee-related matters. Schools are prohibited from withholding results, striking off names or denying entry to classrooms due to unpaid or delayed fees.

The law applies uniformly to all private unaided schools in Delhi, including minority institutions and schools not built on government-allotted land.

School-level committees to approve fees

A key feature of the legislation is the mandatory formation of a School-Level Fee Regulation Committee by July 15 each year. The committee will include five parents selected through a draw of lots from the parent-teacher association, with compulsory representation of women and members from Scheduled Castes, Scheduled Tribes and socially and educationally backward classes.

A representative from the Directorate of Education will also be part of the panel, while the chairperson will be from the school management.

Schools must submit their proposed fee structure to the committee by July 31. The committee can approve or reduce the proposed fees but cannot increase them. Once finalised, the fee structure will remain fixed for three academic years.

The approved fees must be displayed prominently on the school notice board in Hindi, English and the medium of instruction, and uploaded on the school website wherever applicable.

The Delhi government had earlier described the legislation as a significant step towards curbing arbitrary fee hikes after widespread complaints from parents at the start of the academic session.

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Delhi air quality nears severe as smog blankets city, airport issues advisory

Delhi recorded very poor to severe air quality on Saturday, with dense smog affecting visibility and prompting an advisory from the city airport.

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Delhi pollution

Residents across Delhi and adjoining areas woke up to dense smog on Saturday morning, with air quality levels edging close to the ‘severe’ category in several locations

Data from the Central Pollution Control Board showed the overall Air Quality Index (AQI) at 390 at 8 am, placing it in the ‘very poor’ category. However, multiple monitoring stations in the national capital recorded AQI readings in the ‘severe’ range.

Areas reporting severe air quality included Anand Vihar (435), Ghazipur (435), Jahangirpuri (442), Rohini (436), Chandni Chowk (419), Burari Crossing (415), and RK Puram (404). The high pollution levels were accompanied by a mix of smog and shallow fog, which reduced visibility in several parts of the city during the early hours.

Smog reduces visibility, health risks rise

As per AQI classification, readings between 401 and 500 fall under the ‘severe’ category, indicating serious health risks. Officials note that prolonged exposure at such levels can trigger respiratory problems even among healthy individuals, while those with existing conditions face higher risks.

Dangerous pollution levels have become a recurring concern in Delhi during the winter months. On Friday as well, a thick haze covered the city, with the overall AQI recorded at 386 and visibility remaining poor in several localities.

Delhi airport activates low visibility procedures

Amid the deteriorating air quality, Delhi airport issued an advisory stating that low visibility procedures were in place. In a post on X, the airport confirmed that flight operations were normal at present but advised passengers to stay in touch with their respective airlines for the latest updates.

Despite some marginal improvement over recent weeks, large parts of the capital continue to remain under a blanket of toxic smog. The worsening situation has also intensified political sparring over pollution control measures in the city.

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