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Monthly DNA
11 Dec, 2019
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Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Prelims and Mains focus: key features of the bill, its merits and demerits,
News: The Personal Data Protection Bill, which is to be tabled in Parliament, seeks to allow processing of personal data without the consent of the owner for several “reasonable purposes” ranging from the operation of search engines to whistle-blowing, according to an official with knowledge of the matter.
Key highlights of the bill:
Responsibilities imposed
Source: mint
Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Prelims focus: About ILP and the areas where it is required, CAB, NRC
Mains focus: Concerns of the northeast states against Citizenship Amendment Bill, its consequences
News: Even as the Lok Sabha debated the Citizenship (Amendment) Bill, 2019, on Monday, the Nagaland government extended the Inner Line Permit (ILP) system to Dimapur, the commercial hub of the State.
What does it mean?
The decision makes it mandatory for “every non-indigenous person” who entered the district after November 21, 1979, to obtain an ILP within 90 days. They would have to produce documents as evidence to get a certificate from the Deputy Commissioner for exemption from the permit system.
Background
There have been protests across the northeastern States against the Bill that nullifies the 1985 Assam Accord, which called for detection and deportation of anyone who entered the State after March 24, 1971.
The Bill makes the Accord redundant as it is likely to benefit nonMuslims among the over 19 lakh people excluded from the National Register of Citizens.
Other areas/states where ILP is required
Except Dimapur, the ILP has been applicable to the rest of Nagaland. Known as “mini India”, Dimapur district has a mixed population.
Exempt from CAB Nagaland, Arunachal Pradesh and Mizoram, protected by the ILP requirement, have been exempted from the provisions of the CAB along with the whole of Meghalaya, Mizoram and the tribal areas of Tripura and Assam as covered in the Sixth Schedule of the Constitution. Residents of other States have to mandatorily obtain an ILP to visit the protected States.
ILP extended to Manipur
Manipur would be brought under the ILP system, exempting it from provisions of the CAB. Except nontribal areas in Assam and Tripura, the entire northeast has been exempted from the CAB.
About Inner Line Permit
History
Concerns
Source: The Hindu
Syllabus subtopic: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests
Prelims and Mains focus: key takeaways from the ongoing climate meet, about Kyoto Protocol, India’s efforts to fulfill its INDCs
News: India proposed that developed countries make good commitments on providing finance to developing countries by 2023, instead of 2020 at 25th Session of the Conference of Parties under the UN Framework Convention on Climate Change (UNFCCC COP25), currently under way.
Background: COP-25, which started on December 2 and concludes on December 13, is an important conference on climate change as countries prepare to move from pre-2020 period under the Kyoto Protocol to post-2020 period under the Paris Agreement.
In September, during the Climate Action Summit convened by the UN Secretary-General, PM Modi had announced India's plan to scale up the renewable energy target to 450 GW and called for responsible action by all on the principles of equity and Common But Differentiated Responsibilities and Respective Capability (CBDR-RC).
India’s efforts in fulfilling its INDCs
India has been leading the world in pursuit of solar energy capacity. It has also emphasised that developed countries should take the lead in taking ambitious actions and fulfil their climate finance commitments of mobilising $100 billion per annum by 2020.
India is on its way to achieving voluntary targets it has set for itself to curb emissions. It has reduced emissions intensity of GDP by 21% and is “on track” to achieve the goal of 35% emissions reduction as promised in Paris.
India’s INDCs under Paris Agreement
About Kyoto Protocol and its assessment
Source: The Hindu
Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Prelims and Mains focus: About the key features of the bill and its significance in curbing crimes in India
News: The Rajya Sabha passed The Arms (Amendment) Bill, 2019 by a voice vote with members across party lines lauding the government’s decision to increase punishment for celebratory firing. The Bill has already been approved by the Lok Sabha.
Key features of the Bill
Concerns raised by MPs
Source: Indian Express
Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Prelims focus: About fiscal deficit, revenue deficit, primary deficit, FRBM Act
Mains focus: on the impact of fiscal deficit on inflation, and different steps taken by the govt. to check inflation
Context: India’s economic slowdown has led to a severe revenue shortfall in direct and indirect taxes. As expenditure expands while revenue falls short of budgeted expectations, the fiscal deficit will rise.
What exactly is a government deficit?
Government finances are adequately discussed during the budget and at times of slowdown. One such indicator of interest is the deficit of the government. There are three measures of government deficits:
Fiscal deficit is one of the most discussed of the three, as it is the money the government borrows to meet its expenditure.
So, is it bad if the fiscal deficit increases?
A natural inclination is to believe that if the expenditure is greater than the revenue, then it must be a bad thing. Unfortunately, there’s no simple answer to this question. A prolonged fiscal deficit above 4% is likely to be problematic, but there’s little difference between a deficit of 3.5% or 3.8%. More than the amount of fiscal deficit, what really matters is how the borrowed money is being utilized. If it is utilized for the construction of physical infrastructure, then it is not necessarily a bad thing. But if it is used for farm loan waivers or other such subsidies, then a high fiscal deficit should be a cause of major concern.
What is the expected fiscal deficit for FY20?
The budget estimates indicated a fiscal deficit close to 3.3% of GDP that seemed unrealistic given the extent of the current economic slump. The FRBM Act allows a 0.5 percentage point relaxation in deficit in the event of a severe slowdown. This allows the government a fiscal deficit till 3.8% without violating the provisions of the FRBM Act.
How does fiscal deficit impact inflation?
Conventional wisdom has been that fiscal deficits result in undue inflationary pressures. This is based on India’s experience with high deficits in the 1980s and since 2009 onwards, when inflation and fiscal deficits were both high. But an important fact during these two periods was high international prices of global commodities and high minimum support prices for farmers. Moreover, not all deficits are inflationary: if the additional money is utilized for investments rather than subsidies, inflation is likely to be muted.
Can the govt keep on spending as it wants?
Not at all. Though fiscal deficits may not impact inflation, they do impact interest rates—the cost of government borrowings. A higher cost of borrowing constraints government borrowing. In the present situation, the government must respond with a countercyclical fiscal policy. Luckily, that has been the stance of the finance ministry; however, it must share a credible long-term, medium-term fiscal consolidation road map.
FRBM Act – Objectives, targets, Amendments
The fiscal Responsibility and Budget Management Act (FRBM Act) was introduced in Parliament as the FRBM Bill in December 2000. It seeks to foster fiscal discipline on the Central Government and achieve a balanced budget with effective revenue management. The Act was passed on August 26, 2003, therefore it is also called the Fiscal Responsibility and Budget Management Act (FRBMA), 2003. FRBMA was brought into effect on July 5, 2004.
Objective:
The objective of FRBM Act was to inculcate the habit of fiscal discipline in the governance structure of the country. It sets targets and suggests means of reducing fiscal and revenue deficits.
Targets:
The targets that were set in original version of act were:
Statements mandated under FRBM Act
The Central government shall lay in each financial year before both houses of Parliament the following statements of fiscal policy along with the annual financial statement and demands for grants:
Exemptions
Section 4 of the FRBM Act, 2003 states that “due to ground or grounds of national security or national calamity or such other exceptional grounds as the Central Government may specify”, the set targets for revenue and fiscal deficit can be exceeded
Amendments in FRBM Act
More than 15 years has passed since FRBM Act was first introduced. But still the government is nowhere near the targets set under the act. The subsequent governments at Centre have amended the act to achieve fiscal prudence. Here are the amendments that have been done in the act so far:
FRBM Review Committee (N.K Singh Committee)
The government formed the committee to review the FRBM Act, 2003 to suggest changes in the act. The committee was headed by Mr. N K Singh (politician, economist and former Indian Administrative Service officer). Recommendations of the committee were:
Source: mint
Syllabus subtopic: Important International institutions, agencies and fora, their structure, mandate.
Prelims and Mains focus: About CCPI and its key findings, their significance, India’s performance in the index
News: The U.S. and Saudi Arabia are among major polluters showing “hardly any signs” of reducing their greenhouse gas production, a global assessment of countries’ emissions trajectories said at United Nations climate talks.
About CCPI
The Climate Change Performance Index (CCPI) measures the emissions, renewable energy share and climate policies of 57 countries and the European Union.
Its findings:
India’s performance
Source: The Hindu
Syllabus subtopic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
Prelims and Mains focus: About One Nation, One Ration Card scheme and its significance in food security
News: In a step towards the launch of ‘One Nation, One Ration Card’ by June next year, the Ministry of Consumer Affairs, Food and Public Distribution is working to integrate 12 states on a single portability platform that will enable beneficiaries of the National Food Security Act (NFSA) to purchase subsidised food grains from any fair price shop in these states.
Objective
It is planned that inter-state portability through One Nation, One Ration Card system shall be launched in four other states of Goa, Madhya Pradesh, Tripura and Jharkhand and these shall be integrated along with the eight existing states into the single portability platform — Public Distribution System Network (PDSN) — with effect from January next year.
On-boarding/integration of the remaining states/UTs on the PDSN platform shall be done as and when the process of national de-duplication is completed for all beneficiaries and biometric/Aadhaar authentication distribution is enabled in all FPS of the states/UTs.
It is expected that nearly a total of 20 states/UTs shall be brought under the fold of National Portability by June 2020 in a phased manner.
One Nation One, Ration Card Scheme
Source: Indian Express
Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: About the growth recession and its impact on the Indian economy News: The term ‘growth recession’ has gaine
Syllabus subtopic: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Prelims and Mains focus: about Indo-France defence ties, security threats in the IOR and their impact on India’s interests, belt and Road initiative News: Ind
Syllabus subtopic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Prelims and mains focus: about the key features of the Cab and the controversy around it, about NRC, ILP News: The Lok Sabha on Monday passed t
Syllabus subtopic: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora Prelims and Mains focus: About the crisis in Crimea and its implication for regional stability, geographical locations associated with it. News
Syllabus subtopic: Statutory, regulatory and various quasi-judicial bodies Prelims and Mains focus: About Lokpal and Lokayuktas, appointment of members, key issues with the Lokpal and govt.’s efforts to curb corruption News: Almost six years after the Lokpal and Lokayuktas Act, 2013, was
Syllabus subtopic: Conservation, environmental pollution and degradation, environmental impact assessment Prelims and Mains focus: About pyrolysis and the environmental concerns associated with it, about CPCB and NGT News: The Central Pollution Control Board (CPCB) has pull
Syllabus subtopic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable section Prelims and Mains focus: About KALIA and
Syllabus subtopic: Science and Technology- developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology. Prelims and mains focus: About neutrinos, the Neutrino project, and its sign
Slowdown in tax collection to hurt finances of govt Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The gross tax revenue collected by the central government during the first seven months of 2019-20 was? 10
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