Delicate Balancing Act for the New President

• by Dr. Siri Gamage 
• - on 01/13/2015 

Normally, a newly elected President has a honeymoon period within which he/she has some breathing space after a hectic election campaign conducted under extremely stressful and challenging circumstances. It appears that the newly elected President Sirisena does not have even this privilege as he has to spring into action immediately on many fronts. Most importantly, he has to look after ‘the national interest’ as the executive President of the country while also entertaining a stream of MPs from the UPFA who are offering their support to his 100-day program post-election. Additionally, he has to keep the common opposition coalition intact at least until the 100 day program is completed and the set goals achieved. Added to this is the high level of expectations created among various sectors of society including trade unions, universities, those who were marginalized and alienated by the previous regime and the rest. There seem to be some uneasiness developing among societal elements that supported President Sirisena over such expectations and the cross overs of MPS from the UPFA post-election. Thus he is faced with a delicate balancing act that needs to be managed with wisdom, far-sightedness, cooperation and patience.

Looking at the developing situation, there seems to be a significant dilemma before the new President. On the one hand, to achieve the constitutional changes promised during the campaign, he needs to obtain 2/3 majority in the existing parliament of 225 members. To get the support of at least half this number plus one, he has to entertain MPs and former ministers- some of whom achieved notoriety on various grounds – who offer their support following the new President’s invitation in Kandy last Sunday. On the other hand, he cannot allow the credibility of the opposition coalition and himself to evaporate that quickly by accepting MPs and former ministers who were the subject of ridicule during the election campaign by the common opposition due to their reported actions and behavior when in government under the leadership of the former President. Yet on a broader level, reconciliation is a great virtue in a Maithri Palanaya where animosity needs to be replaced by compassion and forgiveness. How far the constituent parties and groups of the common opposition now in government as a whole will adopt such a stance is not certain at this early stage.

Thus the balancing act the new President has to perform is fraught with tenuous conditions to say the least. If he goes for sheer pragmatism and feasibility of the 100-day program, he has to entertain MPs and former ministers without distinction until he reaches the magic number in the parliament. If he goes for the new government’s credibility and be true to the principles of good governance that were promoted during the campaign, he has to ‘pick and choose’ those who are lining up in droves at his door to support him after the election. Under the latter option, the President and the coalition of parties supporting him has the option of dissolving the existing parliament and go for parliamentary elections before 100 days – if he cannot obtain the support of a 2/3 majority in parliament without those MPs whose image have been tarnished by corruption allegations, mischief, anti Yaha Palana behavior etc. However, this option involves a big gamble politically. Yet it is sensible in terms of the credibility of new government and the trust people placed on it in the last election.

Before parliamentary election however, President Sirisena will have to strengthen the SLFP base around him to be in a competitive situation against other parties. Here he has an advantage because of incumbency. But the UNP and Jatika Hela Urumaya will also have the same advantage. State media, unlike during the election campaign, can be either on his side or play a neutral role as in a free media environment. Many MPs of his own party, particularly those who are expressing support after the recent election, will be looking to capitalise on the incumbency factor without doubt. Whether the SLFP led by the new President goes for the parliamentary election in April as a separate party or in a coalition is another important issue to consider. But at the present moment the President’s focus is on the 100-day program and the proper functioning of the government. Appointment of members of the cabinet yesterday as a temporary measure until parliamentary elections are held in April is a noteworthy development.

In this context, the stance of the JVP is perfectly understandable and sensible. It knows that the egg can unscramble anytime when the competitive politics re-start in view of the parliamentary elections. Parties that fought Rajapaksa Presidency will want to look for electoral advantage in a future parliamentary election. As a third party whose agenda is not predicated on an over-attachment to a free market economic development doctrine and advocating ethnic and racial harmony, the JVP stands to gain much in a future parliamentary election. Its leader is a highly articulate speaker in public meetings that can attract the attention of those voters who are frustrated with the policies and programs of both major parties, the SLFP and the UNP. JVP in fact released its vision and policy platform much before the announcement of the last Presidential election and its leaders met various sections of the civil society to educate them on the same. In a sense, JVP is an election-ready mode looking for further substantial grassroots support including from the working class.

Ideally, if President Sirisena is able to secure the promised changes within the 100 day program without tarnishing his image as a true champion of democracy, good governance, anti-corruption and waste, anti nepotism, etc. by excluding notorious characters from the previous government, that is the best outcome for millions of voters who supported the common opposition. However, in the world of realpolitik this may be hard to achieve without some medium term compromises. He may need the counsel of his close colleagues every step of the way in making such medium term compromises. Though he now has all the powers of the executive Presidency, it should not be business as usual when it comes to governance during this interim period. The paradigm change that he and his colleagues promised together with a change in the political culture need to be visible on the ground to preserve credibility of the new government in the long run.

The Forgotten Majority – The Way Forward?

By Yohan Abeynaike -January 13, 2015

Yohan Abeynaike

The elections are over and much will be said and written about these historic days. Amidst these discussions I present a preliminary analysis of an often forgotten and misunderstood constituency.

The Change-makers

The euphoria of victory has engulfed us all. Many will want to take credit for their role in the final outcome. Was it the political coup spearheaded by the former President Chandrika Bandaranaike Kumaratunga and Leader of the Opposition Ranil Wickremesinghe in getting Mr Maithripala Sirisena to defect that changed the tide? Was it the minority Tamil and Muslim voters who braved physical and other forms of threats to vote overwhelmingly for the opposition? Was it the integrity and courage displayed by the Election Commissioner and his staff together with the IGP N.K. Illangakoon and the police that helped to ensure that the mandate of the people is heard and respected? No doubt, the answer is all of the above and all of these must share some of the credit.Read More

Maithri’s Election : Muslims Believe as Divine Intervention

latheeffarook-January 13, 2015

Last week’s Dramatic Political Changes
Muslims Consider it as Divine Intervention

By Latheef Farook

Disproving astrological predictions and dismissing fears of violence, the opposition presidential candidate Maithripala Sirisena who won the election was sworn in as the country’s sixth executive president by Supreme Court Justice K. Sripavan at 6 PM on Friday 9 January 2015 at a simple ceremony held at the independent square.
Maithri’s Election Muslims Believe as Divine Intervention by Thavam Ratna

A New Cabinet, But Political Balance Still Precarious

 by Laksiri Fernando

( January 13, 2015, Sydney, Sri Lanka Guardian) The election victory of the common opposition candidate, Maithripala Sirisena, can be characterized as a victory for democracy in its broadest meaning of the term. However, the specificities of the future processes of democracy or good governance are still to be worked out, not to speak of reconciliation for the moment. Not that I am considering reconciliation as secondary, but it should go hand in hand with democracy and good governance. If we get the house in order, we might be able to live like a family.
A New Cabinet, But Political Balance Still Precarious by Thavam Ratna

Creating Saints In The Catholic Church

By Shyamon Jayasinghe –January 13, 2015

Shyamon Jayasinghe

Sri Lanka is about to welcome the new Pope, Francis. The current Pope deserves much respect for his modernity and progressiveness. The Catholic Church has long been outmoded as it had failed to meet the challenges that a changing society brings up. On central issues like birth control, aids and euthanasia the Church flopped, thereby increasing the woes of people rather than assuaging their ills. African Catholics, for instance have been subject to the cruel ravage of Aids in their communities mainly due to the Church banning safe sex devices like condoms. The theory peddled by the Church as justification is that sex is only for procreation and not fun and enjoyment. This view runs counter to all findings of modern biology, behavioral psychology and psychiatry. Yet, the Church headed by their Popes did not budge. On the other hand, Pope Francis Pope has been courageous to turn upside down many of these stupid and outworn ideas.

The current Pope has also shown an independence of mind to question many a doctrinal belief. He has announce new ideas about God etc. I think he must also think about the traditional practice of creating saints. The visit of Pope Francis to Sri Lanka is partly to create a Sri Lankan saint. We saw how his predecessor created an Australian saint. One wonders if this policy is a play to the gallery by pleasing the nationalistic instincts of people.

I had an email from a Catholic in America that read as follows: “I am describing Canonization here: An act by which the Catholic Church declares a deceased person to be a saint, to be included in the canon, or list of recognized saints who are invoked by many (but not all Catholics) praying to God. It is a tedious process of scrutiny when his or her life is put under the microscope by a group–called the devil’s advocates arguing against him or her.”

I doubt the “tediousness” in the picking process. Looking at past history one gets a feel that there has been an air of nonchalance in creating saints. The Catholic Community Forum lists some 5120 saints created thus far over the years. If you go to the website of the American Catholic Organization you will find listed a massive array of saints. They are arbitrarily assigned expertise in different areas such as follows: Advertising: St Bernadine of Siena; Aids: St Peregrino Laziori;Air Travel: St Joseph of Cupertioni;Anesthetics: St Rene Goupil;Beekeepers: St Ambrose;Blacksmiths:St Dunstan;Blind: St Lucy;Cancer: St Peregrino Laziori;Deafness: St Francis De Sales;Disabled: St Giles; Epilepsi: St Vitus and Firefighters: St John of God. The list goes on and on and one wonders what this is all about.

All these saints are said to have intercessory power with God. Can any of us listen to three persons at a time? How could, then, a particular saint listen to the prayers of thousands from all over the globe expressed in diverse languages? Doesn’t this violate commonsense?

In creating this vast pantheon of mythology Catholicism becomes inadvertently polytheistic with diverse heavenly bodies including angels and saints (not to mention the special case of the Virgin Mary) floating around in heaven.

If the Catholic Church is to advance toward the 21^st century its head, the Pope, must focus attention on cleaning up senseless doctrinal tenets and practices. Perpetuating these senseless beliefs only helps to encourage the spread of ignorance and irrationality.

Pope Francis and struggle for human rights in Sri Lanka

by Ruki 

- on 01/13/2015 

Pope Francis is set to arrive in Sri Lanka, on 13th January, despite several appeals by Catholics including me, to postpone the visit. He will arrive few days days after we Sri Lankans used our ballot to put a stop to growing dictatorship, despite a dirty election campaign that saw deliberate attacks on opposition, massive abuse of state media and other state resources and variety of harassment sand threats. Top aides of the new President has claimed that former President Rajapakse had even attempted to hold on to power through a military coup when he had seen that he was losing.
Pope Francis and Struggle for Human Rights in Sri Lanka by Thavam Ratna

Be Prepared To Accept One Another, To Respect Legitimate Diversities – Pope Francis

[Pope arrived in Colombo, photo @rangaba]-13/01/2015 

”Dear friends, I am convinced that the followers of the various religious traditions have an essential role to play in the delicate process of reconciliation and rebuilding which is taking place in this country. For that process to succeed, all members of society must work together; all must have a voice. All must be free to express their concerns, their needs, their aspirations and their fears. Most importantly, they must be prepared to accept one another, to respect legitimate diversities, and learn to live as one family. Whenever people listen to one another humbly and openly, their shared values and aspirations become all the more apparent. Diversity is no longer seen as a threat, but as a source of enrichment. The path to justice, reconciliation and social harmony becomes all the more clearly seen.”

The full speech made by Pope Francis.

Mr President,

Honourable Government Authorities,

Your Eminence, Your Excellencies,

Dear Friends,

I thank you for your warm welcome. I have looked forward to this visit to Sri Lanka and these days which we will spend together. Sri Lanka is known as the Pearl of the Indian Ocean for its natural beauty. Even more importantly, this island is known for the warmth of its people and the rich diversity of their cultural and religious traditions.

Mr President, I extend to you my best wishes for your new responsibilities. I greet the distinguished members of the government and civil authorities who honour us by their presence. I am especially grateful for the presence of the eminent religious leaders who play so important a role in the life of this country. And of course, I would like to express my appreciation to the faithful, the members of the choir, and the many people who helped make this visit possible. I thank you all, from the heart, for your kindness and hospitality.

My visit to Sri Lanka is primarily pastoral. As the universal pastor of the Catholic Church, I have come to meet, encourage and pray with the Catholic people of this island. A highlight of this visit will be the canonization of Blessed Joseph Vaz, whose example of Christian charity and respect for all people, regardless of ethnicity or religion, continues to inspire and teach us today. But my visit is also meant to express the Church’s love and concern for all Sri Lankans, and to confirm the desire of the Catholic community to be an active participant in the life of this society.

It is a continuing tragedy in our world that so many communities are at war with themselves. The inability to reconcile differences and disagreements, whether old or new, has given rise to ethnic and religious tensions, frequently accompanied by outbreaks of violence. Sri Lanka for many years knew the horrors of civil strife, and is now seeking to consolidate peace and to heal the scars of those years. It is no easy task to overcome the bitter legacy of injustices, hostility and mistrust left by the conflict. It can only be done by overcoming evil with good (cf. Rom 12:21) and by cultivating those virtues which foster reconciliation, solidarity and peace. The process of healing also needs to include the pursuit of truth, not for the sake of opening old wounds, but rather as a necessary means of promoting justice, healing and unity.

Dear friends, I am convinced that the followers of the various religious traditions have an essential role to play in the delicate process of reconciliation and rebuilding which is taking place in this country. For that process to succeed, all members of society must work together; all must have a voice. All must be free to express their concerns, their needs, their aspirations and their fears. Most importantly, they must be prepared to accept one another, to respect legitimate diversities, and learn to live as one family. Whenever people listen to one another humbly and openly, their shared values and aspirations become all the more apparent. Diversity is no longer seen as a threat, but as a source of enrichment. The path to justice, reconciliation and social harmony becomes all the more clearly seen.

In this sense, the great work of rebuilding must embrace improving infrastructures and meeting material needs, but also, and even more importantly, promoting human dignity, respect for human rights, and the full inclusion of each member of society. It is my hope that Sri Lanka’s political, religious and cultural leaders, by measuring their every word and action by the good and the healing it will bring, will make a lasting contribution to the material and spiritual progress of the Sri Lankan people.

Mr President, dear friends, I thank you once again for your welcome. May these days we spend together be days of friendship, dialogue and solidarity. I invoke an abundance of God’s blessings upon Sri Lanka, the Pearl of the Indian Ocean, and I pray that its beauty may shine forth in the prosperity and peace of all its people.

Sajin Vass’ house in Ambalangoda attacked

January 13, 2015

An unidentified group of persons have attacked the residence of Parliamentarian Sajin Vass Gunawardena in Ambalangoda, this evening, Ada Derana reporter said.

According to the reporter, the group has attacked the house with petrol bombs. “The suspects have fled soon after the attack. One of three petrol bombs hurled  at the house had been exploded,” he added.

Sajin Vass told Ada Derana he requests Prime Minister Ranil Wickramasinghe to interfere and order the police to apprehend the suspects immediately. However, he said that the house was attacked with a hand grenade.      

A 50-year-old person in Balapitiya attempted to commit suicide over reports that Parliamentarian Sajin Vass is about to join the ruling party, however, the attempt was prevented  by a call made by former President Chandrika Bandaranaike, this morning. 

Wimal’s brother-in-law arrested

January 13, 2015 

A person who is said to be the brother-in-law of former Minister Wimal Weerawansa has been arrested by the Colombo Crime Division (CCD), this morning.

The suspect was arrested for allegedly misleading public with false rumors in connection with several incidents said to have taken place in Northern province.

The individual who is a resident of Kundasale will be produced before a Magistrate today, the CCD said.

Recently, the army dismissed reports that stones were hurled at military camps in the north as well as flags hoisted by the leftover LTTE elements, a day after the Presidential election.

Sirisena, Dogs, Pimps, Whores, And Dalai Lama

By Jagath Asoka -January 13, 2015 

Dr. Jagath Asoka

Before we talk about dogs, pimps, and whores in Sri Lanka, Mr. Maithripala Sirisena, here is your first spiritual and geo-political challenge: Invite Dalai Lama, not as a political figure, but as a pilgrim to visit Anuradhapura, Dambulla, Kandy, and Polonnaruwa—our sacred four corners of Sri Lanka. If you are concerned about our Chinese masters, here is our excuse: we are the protectors of Theravada Buddhism; Dalai Lama is just another pilgrim. After all, we are a Buddhist nation, and these are our hallowed Buddhist sites; besides, Buddhist monks play a significant role in all aspects of our lives in Sri Lanka.

Dalai Lama

If it is infeasible and politically suicidal, make arrangements through a non-political group to invite Dalai Lama, perhaps just to have some Ceylon tea!Dalai Lama visits New York and other cities often, without any official invitations. He has been a guest speaker at many colleges. Imagine Dalai Lama giving a lecture at the BMICH. I don’t know whether it would be equivalent to spitting in the faces or licking the faces of those who built and donated the BMICH.

Any living person with a modicum of cerebral material in his or her skull can find out how the Chinese government tried to cow and intimidate Obama and David Cameron. They did not budge. Despite objections and warnings from China, both Obama and Cameron met with Dalai Lama.

Even though it was done for the wrong reasons, I am delighted that Pope Francis has visited Sri Lanka. Now is the time to invite Dalai Lama. Why should we invite Dalai Lama? He is not a “god” or a “living Buddha,” just a Buddhist monk who would genuflect without any pride, clasping his palms together, turning every person, momentarily, into a living deity, as if by some divine afflatus, even though in reality some of them are worse than the devil incarnate on this heavenly earth. Can you show me a single Buddhist monk of his caliber and disposition in Sri Lanka?  Read More

Immolations: Why Tibet and Tibetans are Burning

136 Tibetans have self-immolated in a desperate call for freedom and equality. An in-depth look into the origins, acts, and future of these protests.

Nithin Coca in International

One of the greatest tragedies is taking place right now in Tibet. A country, brutally occupied and colonized, with its people suffering in police state like conditions, where even escaping through the mountains to Nepal is no longer an option has, for the past five years, seen its citizens choose to burn themselves and die, in hopes that this will help bring about change.

Tibet burns, while the world watches silently. It does not have to be this way.

Immolations Why Tibet and Tibetans Are Burning by Thavam Ratna

'Author Perumal Murugan has died' , hounded by Hindutva groups author puts up poignant post

The News Minute | January 13, 2015 | 03.20 pm IST

His name was tipped for the year’s Sahitya Akademi award, a book he wrote in 2010 was translated and published to rave reviews last year - nothing could have gone wrong for Tamil author and literary chronicler Perumal Murugan who belongs to a tiny town in south Tamil Nadu, Tiruchengode.

The author however, has been forced to flee from his hometown along with his family over the contents of his book Mathorubhagan which depicts the life of a childless couple a century ago based in Tiruchengode, a town which practiced “traditional free, consensual sex rituals” giving childless couples a one-chance opportunity at continuing their lineage.

The children would be god’s own gift to the parents.

In the last week of December, groups of people assembled in the town burnt copies of his book and demanded a ban on the book. From threatening, abusive calls made to him to instigative posters put up all across the town, members belonging to Hindutva organisations like the Hindu Munnani and RSS along with caste groups protested resulting in a complete bandh in the village.

Following the protests, Murugan issued a clarification and even went to the extent of offering to delete all the controversial part of the book before he took the extreme step.

At a peace meeting in Namakkal on January 12, Murugan along with police protection met members of various Hindu outfits and signed an agreement promising to issue an unconditional apology, delete controversial portions in the book, withdraw unsold copies in the market and also not write on controversial subjects which could hurt sentiments of people.

Did he have a choice? In a long and poignant letter thanking everyone who helped in his struggle to ensure his freedom to write, Murugan has said that ‘writer Perumal Murugan is dead’ and that despite everything, the issues created by ‘different groups and individuals’ will persist on for his other novels.

He writes the status as Perumal Murugan, the person, talking about him the writer.

Note: Dear Friends, the information below will remain as my status message for two days. Later Perumal Murugan will be relieved from all social networking site activities. He thanks all the well wishers for supporting him on social networking sites.
Pe. Murugan’s release for Writer Perumal Murugan

Writer Perumal Murugan is dead. He is not a God to resurrect. He doesn’t believe in re-birth also. The person who lives here after will just be an ordinary cheap editor Pe.Murugan.

I sincerely thank the press, media, readers, friends, writers, groups, political parties, party leaders and students who fought in support of Permual Murugan and his freedom to write.

This problem will not end with “Madhorubhagan” novel alone. Different groups and individuals will persistently create problems for his other novels too… Hence Perumal Murugan has taken a final decision which is as follows:

1. Apart from Perumal Murugan’s compilations and publication of books, the books, novel, short-stories, essays and poems written by him will all be withdrawn by him. None of his works will be sold to the public anymore.

2. I request the publishers Kaalachuvadu, Natrinai, Adayalam, Malaigal and Kayalkavin who published Perumal Murugan’s books to stop selling them. Pe.Murugan will take care of the necessary compensation for that.

3. Those who have already purchased Perumal Murugans books have all the right to burn them. If anybody has incurred a loss and they approach with the grouse, they will also be compensated with the loss amount.

4. Perumal Murugan will not participate in any literary functions in future.

5. I request all caste, religious groups and political parties not to involve in any protests or create any problems since all the books are withdrawn.

Please leave him.

Thanks to all!

Murugan is not just the author of six novels, he is also one of the most prominent Kongu writers. A strong campaigner against the concept of rote learning which used repetition as a technique for memorisation he even campaigned against schools that propagated this method, said The Hindu in an article by historian A.R . Venkatachalapathy .

The book which is now surrounded by controversy was first released in 2001. It’s English translation was released in 2014. However, for years after its release, the book offended nobody.

According to Murugan himself in an interview with The Hindu , caste and Hindu organisations working together were not willing to relent despite him promising to make changes in the book’s next editon. He then said that it was the work of caste organisations running schools in his district looking for an opportunity to start protests against his book up after his campaigns against the rote system and caste practices.

A few days back, he issued a clarification reported in another Hindu report that stated, “‘Madhorubagan’ only portrayed the sufferings of childless couple, particularly women, and it dealt with the lifestyle dating back to more than a century. “Novels are written on imaginary concepts and no one can say that whatever appeared in them dealt with reality.’”

While the world focuses on the importance of freedom of speech, here is a similar situation in which a man has publicly given up everything unable to fight against the forces that are trying to silence him.

Different groups and individuals who instigated this fire has refused to die down and along with it may have extinguished future works of a great Tamil writer.

Before and after the Haiti earthquake: An interview with MSF physician Dr. Wendy Lai

January 12, 2015

On January 12, 2010, a devastating earthquake struck Haiti, killing more than 200,000 people and causing horrific injuries to over 300,000. More than 1.5 million people were left homeless after buildings in the capital Port-au-Prince collapsed or were left unusable.  

Haiti: Five years later, healthcare is under-prioritized in post-quake reconstruction

MSF staff and patients in a makeshift surgery area outside the Carrefour hospital in Haiti following the earthquake that destroyed many parts of the country in 2010. Oliver Schulz, MSF's current country director for Haiti, says that healthcare needs to be a higher priority in Haiti five years after the quake than it currently is.

January 09, 2015

Five years have passed since a truly devastating earthquake shook Haiti, affecting approximately three million people and killing 220,000, according to government estimates. What is the situation in Haiti now after five years of reconstruction efforts, and what healthcare does Médecins Sans Frontières / Doctors Without Borders (MSF) still provide in the country? MSF’s Haiti country director Oliver Schulz discusses.

Before and After the Haiti Earthquake an Interview With MSF Physician Dr. Wendy Lai by Thavam Ratna

Investors may cut India slack on deficit target, if budget credible

An employee poses with the bundles of Indian rupee notes inside a bank in Agartala, August 22, 2013.

BY SWATI BHAT AND RAFAEL NAM-MUMBAI Tue Jan 13, 2015

(Reuters) - Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February, so long as the deficit target is widened to no more than around 4 percent and fiscal consolidation steps are taken.

Some government economic advisers have recommended Finance Minister Arun Jaitley should row back on a fiscal deficit reduction plan that would aim to bring the deficit down to an eight-year low of 3.6 percent of GDP in the fiscal year starting in April.

They argue that the government's capital spending should be increased to help the economy break free of its slowest phase of growth since the 1980s.

There is some sympathy for that view among market participants, who see little point in setting an unrealistically low deficit target.

They would rather see a slightly larger, achievable deficit target, so long as spending is diverted to vital sectors, such as infrastructure, while cutting subsidies and reforming the tax system to improve revenues.

The Reserve Bank of India has said the government needs to undertake fiscal consolidation if interest rates are to be lowered, as widely anticipated by markets.

"If the deficit target is realistic and the sources of revenues are clearly mentioned along with an outlay of where the money is going to be spent, the market may give it a pass," said Killol Pandya, a senior debt fund manager at LIC Nomura Mutual Fund. "But an overtly optimistic deficit estimate will lead to a sell-off."

Jaitley is due to present the government's 2015/16 budget and its fiscal deficit target to parliament at the end of February.

The budget statement will be preceded by an RBI policy meeting on Feb. 3, with some speculation that the central bank could lower its key interest rate, which has stayed unchanged at 8 percent since January 2014.

Benchmark 10-year bond prices hit a 1-1/2 year high on Tuesday after lower-than-expected inflation furthered fuelled hopes of a reduction in rates.

Investors hope lower interest rates, combined with government reforms, will boost an economy that has grown below 5 percent in the previous two years, a rate that is far too slow for a country with India's population challenges.

Bond investors are ready to cut the government some slack on the deficit provided any increase in spending is geared to a long list of pending reforms, including building housing, recapitalising state-run banks, and developing infrastrucure needed to support manufacturing.

In July, when the government stuck to the previous administration's 4.1 percent deficit target, bonds fell sharply as investors doubted the government could achieve it.

"The quality of spending is important," said Kumar Rachapudi, a fixed income strategist for ANZ in Singapore. 

"If there are clear projects, say infrastructure creation, for which spending is earmarked, then markets may take it a bit positively."

Any spending increases would need to be accompanied by a plan to rein in outgoings, notably on food and fuel subsidies that account for a substantial part of government spending. Investors, analysts and rating agencies agree.

Standard & Poor's, which currently rates Indian sovereign debt one rung above junk bond territory, wants the government to adopt a goods and services tax and reduce subsidies that are equivalent to nearly 2 percent of GDP.

Bond investors would welcome stronger credibility in India's budget plans, as the previous Congress-led government often adjusted deficit targets mid-year after setting unrealist goals.

Arvind Chari, who manages two offshore funds as head of fixed income and alternatives at Quantum Advisors, said that even given extra leeway, the government would still want to assert its commitment to keeping deficits under control.

"If they are deviating from the roadmap, it would be imperative to tell the market why and how they plan to get back on track," he said.

(Editing by Clara Ferreira Marques and Simon Cameron-Moore)