Subject: South Asia Daily: Modi Unveils First Budget; Pakistani Terror Group Allies with ISIS; Amb. Dobbins Urges Afghan Power-Sharing
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Date: Thu, 10 Jul 2014 09:26:19 -0400 (EDT)

Modi Unveils First Budget; Pakistani Terror Group Allies with ISIS; Amb. Dobbins Urges Afghan Power-Sharing

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Modi Unveils First Budget; Pakistani Terror Group Allies with ISIS; Amb. Dobbins Urges Afghan Power-Sharing

Modi Unveils First Budget; Pakistani Terror Group Allies with ISIS; Amb. Dobbins Urges Afghan Power-Sharing

   <p>  <b>India</b>  </p><br><p>  <i>Modi government's unveils  its first budget</i>  </p><br><p>  Prime Minister Narendra  Modi's new government unveiled its first budget on  Thursday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENZA8379 style="font-weight:bold;color:#ea1414" target="blank">Hindustan Times</a>, <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENeA67e9 style="font-weight:bold;color:#ea1414" target="blank">NDTV</a>, <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76MwcPoqFInUcwfA1967 style="font-weight:bold;color:#ea1414" target="blank">BBC</a>, <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENiAfaca style="font-weight:bold;color:#ea1414" target="blank">Livemint</a>). Finance Minister Arun Jaitley, who delivered  his speech in the Lok Sabha (India's lower house of parliament) spoke of  reforms that seek to revive growth and limit higher borrowing in the country's  economy.  </p><br><p>  Jaitley stressed fiscal  prudence and made it clear that "we cannot spend beyond our means."  Jaitley told the parliament further that the new government had inherited a  "challenging" situation from the previous Congress-led government,  one of low growth and high inflation.  </p><br><p>  Jaitley raised limits on  foreign investment in the defense and insurance sectors from 26 percent to 49  percent. Jaitley also set a fiscal deficit target of 4.1 percent of gross  domestic product (GDP) for the year ending March 31, though he said meeting that target would be  "daunting." Jaitley said the deficit would shrink to 3.6 percent in  2015-16 and 3 percent in 2016-17. The minister established an ambitious target  for infrastructure in India by committing to building 23 kilometer (14 miles)  of highways a day.  </p><br><p>  Jaitley also committed to  provide clarity on the goods and services tax (GST) this year. The GST aims to  improve tax compliance, widen the tax base, and reduce transaction costs of  businesses. On the controversial "retrospective taxes" -- which give the  government the right to raise tax demands on concluded deals, including  overseas Indian assets -- the government clarified it would not  "ordinarily" create new liabilities. The previous government's policy  of imposing retrospective taxes had created an uneasy business environment for  foreign companies.  </p><br><p>  In his speech, Jaitley also  said the government would spend more than $1.13 billion to modernize 100 Indian  cities into "smart cities." Giving education a strong push, Jaitley  proposed setting up five more Indian Institutes of Technology (IITs), five more  Indian Institutes of Management (IIMs), and four more All India Institutes of  Medical Sciences (AIIMS). Jaitley emphasized his government's commitment to  providing electricity and sanitation in all homes by 2019.  </p><br><p>  Jaitley also set aside  approximately $33 million for a giant statue of Sardar Vallabhbhai Patel, one  of the founding fathers of India, in Modi's home state of Gujarat (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENnA155c style="font-weight:bold;color:#ea1414" target="blank">NDTV</a>). Critics were quick to compare this allocated amount to the  $25 million allocated to women's safety and almost $16 million allocated to  women's welfare in the budget.  </p><br><p>  The Indian economy has  slowed in recent years, growing by 4.7 percent in 2013-14. Growth in India was  8.4 percent in 2010-11. To read the full text of Jaitley's budgetary speech,  click <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENsA7680 style="font-weight:bold;color:#ea1414" target="blank">here</a>.  </p><br><p>  <i>Indian Supreme Court asks  for NGO details</i>  </p><br><p>  The Indian Supreme Court  (SC) granted the Central Bureau of Investigation (CBI) three more months on Tuesday to  provide details about all registered non-governmental organizations (NGOs) in  India (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejENxAea62 style="font-weight:bold;color:#ea1414" target="blank">Livemint</a>,<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEN2Ab2b5 style="font-weight:bold;color:#ea1414" target="blank"> Times of India</a>,<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEN8A9fb3 style="font-weight:bold;color:#ea1414" target="blank"> IBNLive</a>). NGOs came under judicial scrutiny when the SC  asked CBI to provide details about such registered organizations and their  financial statements in September 2013. The request was based on a public  interest litigation (PIL) filed by M. L. Sharma, an advocate who alleged  irregularities in an NGO linked to Anna Hazare. A social activist, Hazare had  started an indefinite hunger strike on April 5, 2011 to exert pressure on the  Indian government to enact a stringent anti-corruption law.   </p><br><p>  CBI informed the bench that  most NGOs are not filing income tax returns. CBI said further that while states  like Andhra Pradesh, Bihar, Haryana, Madhya Pradesh, West Bengal, Odisha, and  Maharashtra only provided partial information to CBI requests, the states of  Gujarat and Tamil Nadu did not share any information about the NGOs in their  respective states.  </p><br><p>  When CBI initially  expressed difficulty in collecting information on NGOs, and requested the task  be handed over to states, the bench had said "If CBI can probe murder cases  then why not probe against NGOs? You can do so many things, you do it also."  According to information gathered by the Asian Centre for Human Rights through  the Right to Information Act (RTI), the federal and state governments released  more than $1 billion to various NGOs between 2002 and 2009, averaging over $155  million per year.  </p><br><p>  <i>BJP MP caught in burglary  humiliation</i>  </p><br><p>  Giriraj Singh, member of  the Parliament and the Bharatiya Janata Party (BJP) leader, was embroiled in  yet another controversy when $190,833 was recovered by the police after a burglary  at his home in the central state of Bihar on Tuesday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEN_Aa50f style="font-weight:bold;color:#ea1414" target="blank">Times of India</a>,<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOEA4230 style="font-weight:bold;color:#ea1414" target="blank"> Business Standard</a>,<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOJA38ab style="font-weight:bold;color:#ea1414" target="blank"> DNA</a>,<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOOA825b style="font-weight:bold;color:#ea1414" target="blank"> BBC</a>). Singh had reported that only $837 was stolen during the  robbery. &nbsp;On Wednesday, Singh called the burglary a "political conspiracy" and said:  "The money which was burgled from my house is not mine but my cousin's. He  is going to clarify it to everyone."  </p><br><p>  The police recovered cash,  expensive watches, and jewellery from the four alleged robbers, which included  Singh's bodyguard, domestic servant, and apartment security guard. Opposition  parties demanded the arrest and termination of Singh's parliament membership (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOTA5b3c style="font-weight:bold;color:#ea1414" target="blank">Economic Times</a>). Bihar Chief Minister Jitan Ram Manjhi said:  "Patna police and Income Tax have already been probing the source of the  wealth recovered. If need arises other forms of inquiry could be ordered."  </p><br><p>  Singh had made headlines  during the recent elections in India when he had stated that anyone who opposed  his party leader, now Prime Minister Narendra Modi, should be sent to Pakistan.  </p><br><p>  -- <i>Neeli Shah and Jameel Khan</i>  </p><br><p>  <b>Pakistan</b>  </p><br><p>  <i>Pakistani terror group allies with ISIS</i>  </p><br><p>  According to <i>The Telegraph</i>, Tehreek-e-Khilafat, a  Pakistani terror group, which has claimed responsibility for a series of past attacks  in Karachi, announced its allegiance to Abu Bakr al-Baghdadi's Islamic State  (formerly the Islamic State of Iraq and al-Sham or ISIS) this week (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOYA3778 style="font-weight:bold;color:#ea1414" target="blank">The  Telegraph</a>).&nbsp; Tehreek-e-Khilafat  would be the first group outside of the Middle East to ally itself officially  with Baghdadi's group, which has engaged in active hostilities with Al Qaeda-aligned  forces in Syria. The declaration represents a step towards global, rather than  regional influence, for Baghdadi's group.&nbsp;  The statement declared: "We are praying from the almighty Allah to give  us chance in our lives to see the expansion of Islamic State boundaries toward  the Sub&shy;Continent and Khurasan region in order to hoist the flag of Islamic State  here."  </p><br><p>  <i>Drone strike in North Waziristan kills six</i>  </p><br><p>  A U.S. drone  strike in the Datta Khel area of North Waziristan reportedly killed at least  six people Thursday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOdA2226 style="font-weight:bold;color:#ea1414" target="blank">ET</a>,  <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOiA08f8 style="font-weight:bold;color:#ea1414" target="blank">Dawn</a>).&nbsp; Pakistan's Foreign Office would not  confirm the strike.&nbsp; More than  2,000 people have been killed by U.S. drones since the beginning of such  operations in Pakistan according to data collected by the <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOnA0191 style="font-weight:bold;color:#ea1414" target="blank">New America  Foundation</a>.&nbsp; The most recent  drone strike occurred on June 18; earlier in the year there was a six month  lull in strikes<i>. Bonus Read: The Return  of the Drones, Bailey Cahall and Emily Schneider, </i><a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U6LgTsPoXQwrmDhXAa622 style="font-weight:bold;color:#ea1414" target="blank"><i>Foreign Policy</i></a>.  </p><br><p>  <i>Prime Minister visits Karachi</i>  </p><br><p>  Pakistani Prime  Minister Nawaz Sharif visited Karachi on Thursday and received a briefing on  law enforcement and security in the city (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOsA1a91 style="font-weight:bold;color:#ea1414" target="blank">ET</a>).&nbsp; Sharif emphasized the need for security  and expressed fears of backlash in Pakistan's cities to the Zarb-e-Azb  operation being conducted in North Waziristan.&nbsp; Karachi has seen a recent wave of violence that the  government has responded to with targeted operations.&nbsp; According to a report presented by Hyder Jamali, the acting  Inspector General for the Sindh Police, 31,336 people have been arrested in  targeted operations in Karachi since the operations began (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEOxAfbce style="font-weight:bold;color:#ea1414" target="blank">Dawn</a>).&nbsp; <i>Bonus  Read: Will Karachi Become the Next Waziristan, Michael Kugelman, <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U5HED8Pouz5hMI_ZA177c style="font-weight:bold;color:#ea1414" target="blank">South  Asia Channel</a></i>.  </p><br><p>  <i>Pakistan expresses support for peaceful Afghan  transition</i>  </p><br><p>  Pakistan's  Foreign Office expressed its support for a peaceful democratic transition in  Afghanistan on Wednesday, as tensions continued to mount over allegations of  electoral fraud (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEO2Aa121 style="font-weight:bold;color:#ea1414" target="blank">ET</a>).&nbsp; The statement emphasized that the  preliminary results were not final and expressed the need for resolution of the  crisis under Afghanistan's constitution stating: "We are aware of the announcement  made by the Independent Election Commission regarding preliminary results of  the second round and noted the statement that these are not final. It is our  earnest hope that all related issues would be resolved peacefully,&nbsp;through  dialogue, in a timely manner and within the framework of Afghanistan's Constitution  and laws."&nbsp; Pakistan joined a  number of other countries that have recently urged a peaceful resolution of the  Afghan crisis, including the United States, the United Kingdom, and Russia.  </p><br><p>  <b>Afghanistan</b>  </p><br><p>  <i>Special Representative for Afghanistan  and Pakistan urges power-sharing</i>  </p><br><p>  Amb. James  Dobbins, the United States' Special Representative for Afghanistan and  Pakistan, stated that power-sharing and patronage would be necessary for  resolving the ongoing electoral crisis in Afghanistan at an Asia Society event  in Washington, D.C. on Wednesday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEO7A6456 style="font-weight:bold;color:#ea1414" target="blank">Pajhwok</a>,  <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEPAAe20a style="font-weight:bold;color:#ea1414" target="blank">Bloomberg</a>,  <a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEPFA18a6 style="font-weight:bold;color:#ea1414" target="blank">TOLO  News</a>). &nbsp;During the event,  Dobbins said: "I think that some degree of patronage allocation and  power-sharing is going to be essential for a new government to be formed that  retains the support of all elements of society" and warned that "a  winner-take-all system in Afghanistan is not a workable [option]."  </p><br><p>  <i>Six deminers killed in Herat</i>  </p><br><p>  An attack on a de-mining  convoy -- operated by de-mining company Halo Trust - travelling to the Kohsan  district of Herat province killed six de-miners on Thursday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEPKA6dfc style="font-weight:bold;color:#ea1414" target="blank">Pajhwok</a>).&nbsp; According to Col. Abdul Rauf Ahmadi, a  police spokesman, three other de-miners were kidnapped from the convoy.&nbsp; The Taliban have not commented on the  attack.&nbsp; Thursday's attack is not  the first time de-miners have been targeted.&nbsp; A de-miner was killed in June in an attack in Qarabagh  district of Ghazni province.  </p><br><p>  <i>Police seize drugs reportedly on way to  Iran</i>  </p><br><p>  Afghan police  seized 140 kilograms of drugs in western Nimroz province a police official  announced on Thursday (<a href="http://link.foreignpolicy.com/5253172ac16bcfa46f6bd4c71o9ls.bcz/U76UUsPocBqejEPPA5d13 style="font-weight:bold;color:#ea1414" target="blank">Pajhwok</a>).&nbsp; Brig. Gen. Mohammad Qasim Jangal Bagh,  the provincial police chief, told <i>Pajhwok  Afghan News</i> that the drugs were on their way to Iran and that the smugglers  had escaped.&nbsp; Nimroz province has  long served as a gateway for the smuggling of drugs into Iran.  </p><br><p>  &shy;<i>--David Sterman</i>  </p><br><p>  <i>Edited by Peter Bergen</i>  </p><br> 

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