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Monthly DNA
31 Dec, 2019
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Syllabus subtopic: Statutory, regulatory and various quasi-judicial bodies.
Prelims and Mains focus: About NITI Aayog’s SDG India Index and performance of various states
News: Kerala tops the States in progress towards the UN’s Sustainable Development Goals (SDGs), while Bihar is at the bottom of the NITI Aayog’s SDG Index, released on Monday.
Background
The SDG India Index was developed in collaboration with the Ministry of Statistics & Programme Implementation (MoSPI), Global Green Growth Institute and United Nations in India.
What are Sustainable development Goals (SDGs)
Performance of other states
SDG-wise analysis
Source: The Hindu
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 sections
Prelims and Mains focus: about the Ujjwala scheme and its significance; key findings of the ISFR, 2019
News: The Union Environment Ministry has credited the Ujjwala scheme, which provides free cooking gas to extremely poor families, with ‘possibly’ reducing the demand for fuelwood.
Context: The India State of Forest Report, 2019, — that biannually also assesses the tree cover — also surveyed 1,110 villages, which are on the fringes of forests, to assess how much fuelwood, fodder, small timber and bamboo villagers use.
The use of these products— according to the Forest Survey of India — was a major source of “impairment to forest productivity” but wasn’t adequately assessed.
What did the report find?
About Pradhan Mantri Ujjwala Yojana (PMUY):
Key objectives of the scheme are:
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 significance of the govt.’s move to waive carbon tax on coal
News: Prime Minister’s office (PMO) has proposed waiving a tax on coal to help finance pollutioncurbing equipment, according to documents, but the move would also make coal more competitive in price with solar and wind energy.
Background
Significance of the move
COAL VS RENEWABLES
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 SDG India Index report 2019 and its significance; NITI Aayog and its composition
News: Government think tank NITI Aayog plans to conduct a financing exercise with states that have been “historically backward” in development to ensure that India can achieve its Sustainable Development Goals (SDGs) on time.
Context: “There is consensus on all levels that unless these States make significant progress, India will find it challenging to achieve its SDG targets on time. NITI Aayog has started working closely with these States, enabling them in establishing SDG monitoring systems and supporting them in forging partnerships for building institutions, capacity, knowledge and convergence,” stated the body in its SDG India Index 2019 report.
Efforts made by NITI Aayog
Findings of SDG India Index report, 2019
About NITI Aayog
Composition of NITI Aayog:
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 ongoing economic slowdown what should the next year’s budget bring to contain it
News: Finance minister Nirmala Sitharaman will present the Union budget in four weeks. The expectation, including in RBI’s monetary policy committee, is that the budget will roll out a fiscal stimulus to counter the growth slowdown.
Will a fiscal stimulus boost GDP growth?
The stimulus can be given either by way of changes in taxes or higher expenditure. India’s nominal gross domestic product (GDP) growth fell to a low of 6.1% in the second quarter of this fiscal. This was the lowest growth in the new 2011-12 base GDP series. GDP growth would have been lower still, but the latest official estimates show that it received a boost from public and defence services that grew 11.6% in the second quarter as compared to 8.6% a year ago. Thus, government expenditure can boost growth in the interim. However, a prolonged stimulus must be avoided as it will stoke inflation and lead to stagflation.
Is there fiscal space for a strong stimulus?
No. The government’s capacity is constrained by low tax revenues so far. Data from the Controller General of Accounts shows that growth in gross taxes during the first seven months of FY20 was the lowest since FY10. Already, the Centre has sacrificed revenues by cutting corporate tax to 22%. The only silver lining is the non-tax revenue growth of 75.5% from April-October. A slippage to 4.75% of GDP in the Centre’s fiscal deficit is estimated by ICRA and EY even in the absence of a stimulus. A temporary deviation from FRBM targets is possible in the current situation. However, there are limits even to that.
Will increased spending on public infrastructure help?
No. Growth needs a boost urgently. Spending on long-gestation projects in highways and railways will not help. As the demand contraction originated in the unorganized sector, stimulus should be given to it. Expenditure under PM-KISAN and NREGA can boost rural incomes and consumption by putting money in the hands of those who tend to consume more.
What about income tax cuts as a stimulus?
No. Income tax cuts will benefit a small section of people, as only 5% of India’s population pays income tax. February’s interim budget had given an income tax rebate to those earning up to Rs.5 lakh left nearly Rs.1,000 a month more in their wallets. Capital exemption on the sale of one house was extended to two. The standard deduction for the salaried was raised from Rs.40,000 to Rs.50,000 and tax deduction on interest from savings in bank accounts was increased from Rs.10,000 to Rs.50,000. Still, the slowdown deepened.
What should the government do then?
When economic growth slows down, so do tax collections. But if expenditure levels are maintained, the fiscal deficit goes up, as it is expressed as a percentage of GDP. The lower denominator—lower nominal GDP growth—widens the fiscal deficit. Keeping expenditures unchanged, or automatic stabilizers can be used to stimulate growth, as was done in the aftermath of the global financial crisis in 2008.
Source: mint
Syllabus subtopic: Security challenges and their management in border areas; linkages of organized crime with terrorism
Prelims and Mains focus AFSPA- features, draconian provisions, misuses and need for review.
News: The Ministry of Home Affairs (MHA) has declared the entire State of Nagaland as a “disturbed area” for six more months, under the controversial Armed Forces (Special Powers) Act (AFSPA) which empowers security forces to conduct operations anywhere and arrest anyone without prior notice.
Background
About the notification issued
What does the AFSPA mean?
What is a “disturbed area” and who has the power to declare it?
What’s the origin of AFSPA?
The Act came into force in the context of increasing violence in the Northeastern States decades ago, which the State governments found difficult to control. The Armed Forces (Special Powers) Bill was passed by both the Houses of Parliament and it was approved by the President on September 11, 1958. It became known as the Armed Forces Special Powers Act, 1958.
What are the special powers given to army officials?
What has been the role of the judiciary?
Has there been any review of the Act?
Source: The Hindu
Syllabus subtopic: Conservation, environmental pollution and degradation, environmental impact assessment
Prelims and Mains focus: about the key findings of ISFR-2019 and its significance; efforts taken by the govt. to improve forest cover in the country
News: The forest cover in the country increased by 3,976 square kilometres (sqkm) but with the sharpest declines in the northeastern States of Arunachal Pradesh, Manipur and Mizoram, according to the 2019 edition of the India State of Forest Report (ISFR) that was made public on Monday.
About the ISFR
Key findings of the report
Status of forest cover in the Northeast States
Reason for decline/rise in tree cover
What does the report say on the quality of tree cover?
Source: The Hindu
Fall in new FDs at state-run banks a trust deficit issue Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about the key findings of the RBI report, about the trust deficit in pub
GST overhaul next on agenda after budget Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the key issues to be discussed regarding the overhaul of GST; the composition scheme:
Cyclone Sarai batters Fiji Syllabus subtopic: Important Geophysical phenomena such as earthquakes, tsunamis, Volcanic activity, cyclones etc., geographical features and their location- changes in critical geographical features (including water bodies and ice caps) and in flora and fauna and the e
U.S. forces hit Iraqi Hezbollah bases Syllabus subtopic: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. Prelims and Mains focus: about the conflict in West Asia and its consequences for global geopolitics; about Hezbollah &nb
Syllabus subtopic: Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures. Prelims and Mains focus: About Santusht portal
CDS: Govt notifies retirement age at 65 Syllabus subtopic: Various Security forces and agencies and their mandate Prelims and Mains focus: About the Chief of Defence Staff; its mandate, role and significance News: The Central government on Saturday notified the retirement age for the newly
President confers Dada Saheb Phalke Award to Amitabh Bachchan President Ram Nath Kovind conferred Dada Saheb Phalke Award to Amitabh Bachchan at a function held at Rashtrapati Bhavan on December 29, 2019. Dadasaheb Phalke Award is India's highest film honour. Dadasaheb Ph
Worst not over yet, RBI forecasts NPAs will rise Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: on the findings of RBI’s report and challenges mentioned by it in the econ
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 2005 judgement of SC; the link between NPR and NRC News: Questions about a person’
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 Home Ministry order; about NRI, OCI and PIO and benefits enjoyed by them News: The
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 new committee formed by MoSPI: its structure and mandate News: Faced with increasing que
Syllabus subtopic: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Prelims and Mains focus: about the recent oil supply cut by OPEC countries and the reasons behind it; OPEC and OPEC+ News: The Organization of t
Russia deploys hypersonic nuclear missile Syllabus subtopic: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. Prelims and Mains focus: About Avangard and its significance; tensions in US-Russia relations News: Russia has deploy
RBI directs large cooperative banks to report exposures above Rs. 5 crore Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Prelims and Mains focus: about CRILC, Cooperative banks and how they are differe
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