Posts

IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 7th March, 2017

IASbaba’s Daily Current Affairs – 7th March 2017 Archives ECONOMY  TOPIC:  General Studies 3 Government Budgeting. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Low tax base and concerns Introduction India being home to 1.21 billion population needs high resource mobilization. One of the major mode of resource mobilization is tax collection. Only about 3% of Indians pay income tax. It is a matter of great concern that tax incidence is minimum in India. Issue: Of nearly 127 crore Indians, only 2.6 crore pay income tax. The fact that less than 3% of Indians pay income tax is automatically construed to imply that a large majority avoid paying income tax. The Finance Minister, Arun Jaitley, made a sweeping statement in his Budget speech this year claiming that India is “a tax non-compliant society and too many people evade taxes”. Not only is the perception entrenched that too few pay income taxes but also that most Indians under-report their incomes. The data story: Prime Minister said in his New Year’s eve speech that “only 24 lakh Indians reported an income greater than 10 lakh rupees. Who can digest this?” This perception that India is a land of tax avoiders and black money hoarders was first mooted by former Finance Minister P. Chidambaram who, in his 2013-14 Budget speech, emphatically assertedthat “only 42,800 persons admitted to an income of more than Rs.1 crore per year”. The insinuation was that there is massive under-reporting of income. Most readers will perhaps endorse this growing chorus that India has too few honest taxpayers. The data reality: Except that data belies this claim. That a large majority of Indians are tax dodgers may well be an urban legend. India’s per capita GDP is roughly Rs. 1 lakh, i.e. the average Indian earns a lakh of rupees every year. Given India’s large income inequality, it can also be inferred that when the average income is Rs. 1 lakh, a greater majority of Indians earn less than Rs. 1 lakh while a small number at the top earn large amounts. However, the income tax exemption threshold in India is Rs. 2.5 lakh, i.e. anyone earning below Rs. 2.5 lakh need not pay income tax. This implies that only those who earn more than 2.5 times the average income of Rs. 1 lakh will fall under the tax bracket. When a majority of Indians earn less than Rs. 1 lakh, an income tax exemption threshold of Rs. 2.5 lakh is sure to leave a vast majority out of the tax bracket. We also know from recent research by the National Sample Survey Office (NSSO) and Peoples Research on India’s Consumer Economy (PRICE) that the average income of the richest 20% of Indians is Rs. 95,000. This means that even a large majority of the richest 20% of Indians do not qualify to pay income taxes. In this context, it is not entirely surprising that only 3% of Indians pay tax. This is not a function of a large number of Indians avoiding tax, as portrayed, but merely a reflection of the fact that India is a terribly poor country with an extremely high income tax exemption threshold. Global comparisons India is the only large economy with an income tax exemption threshold that is 2.5 times the average national per capita income. In most countries, including in emerging economies such as China, Brazil and Argentina, anyone earning more than half the average national income falls under the income tax bracket. India has increased the income tax exemption threshold on seven occasions, from Rs. 40,000 to Rs. 2.5 lakh in the last two decades. Contrast this with China, where the exemption threshold has just doubled from 10,000 yuan to roughly 20,000 yuan in the same period even though average incomes grew much faster in China than in India. If India lowers its income tax exemption to, say, Rs. 1 lakh from the current Rs. 2.5 lakh to be more in line with the rest of the world, nearly 1.5 crore more Indians will fall under the tax bracket. To be clear, such a move will not fetch any meaningful extra tax revenues for the government but will merely bring more people into the tax bracket. It is thus misleading and specious to conclude that India’s small number of taxpayers is entirely a result of some genetic and cultural trait of dishonesty of Indian society at large. Even in the much richer United States, only 12.5 lakh people out of nearly 20 crore adults reported an income greater than 10 times the per capita GDP of the U.S. In the United Kingdom, only 2 lakh people out of an adult population of 4 crore reported an income of greater than 10 times the average annual income. Similarly, an annual income of Rs. 1 crore in India is equal to 100 times the average annual income. What proportion of people in other countries earn more than 100 times the average annual income? Just 43,000 people in the U.S., 5,000 in the U.K. and a few hundred in Canada. Conclusion: Most urban Indians are unable to fathom the scale and size of India’s poverty. Their immediate, lived experiences lure them into this belief that a significant majority of Indians earn more than Rs. 20,000 a month to qualify to pay income taxes. Casting aspersions on all of Indian society solely on the basis of the small number of taxpayers is plain egregious. The political compulsions of such class rhetoric are obvious as it serves as a good excuse for seemingly “tough” actions such as demonetisation. Connecting the dots: The economic survey discussed the importance of having a wider tax base. Critically analyse the importance of India facing problems of low tax incidence and hence spillover issues on growth and development.   NATIONAL  TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 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 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Aadhar and Mid-day Meal Scheme- is there any connection? In news: The notification by Union Human Resource Development (HRD) Ministry has mandated that children will not be served mid-day meals at school without Aadhaar cards from June 2017. Aadhar in violation In 2014 judgement, SC has made it clear that Universal Identification Document, commonly known as Aadhaar cannot be made compulsory for any services to which people are otherwise entitled. It has also made it clear that the Aadhaar Act does not supersede these orders, until such time as the Court settles the issue of compatibility of Aadhaar with the right to privacy. It can only be used as voluntary identification for five specific government programmes: Public distribution scheme National Rural Employment Guarantee Act National Social Assistance Programme Jan Dhan Yojana LPG subsidies The current notification asks students to sign up for Aadhar by June 30 in order to continue to be eligible for the scheme. The necessity to have the Aadhar identity has been imposed on the “cook-cum-helpers” at schools as well. The Right to Food (RTF) Campaign plans to challenge the Centre’s decision to make Aadhaar mandatory for children to avail themselves of the mid-day meal schemes in schools across the country. Where lies the problem? School meals are an important entitlement of Indian children, legally enforceable under Supreme Court orders as well as under the National Food Security Act. This should be understood by keeping in mind that India also has the largest number of stunted children in the world at 72 million. Mid- Day meal provides for this opportunity to feed the children (4-12 years) universally in school. Mid-day meals have also helped to break the barriers of class and caste by imparting a habit of sharing meals to children of diverse backgrounds. The new notification is likely to affect nearly 120 million schoolchildren across the country. While the government’s rationale is that the decision will improve efficiency and transparency, Right to Food activists maintain that the notification is in violation of a children’s rights and Supreme Court’s order. According to RTF Campaign, numerous studies have shown that India’s mid-day meal scheme has made an important contribution to higher school attendance, better child nutrition and more effective learning. Aadhar is not right platform The challenges faced by MDMS are different from DBT schemes like delivering subsidised LPG to people below the poverty line, or even the PDS. In MDMS, there are instances reported of poor hygiene in kitchen or incidences of food adulteration. Sometimes, it is difficult to even deliver nutritious food to remote areas. If food ingredients are there, then kitchens to cook them are not available within the schools. Undoubtedly, the Midday Meal Scheme has always been dogged by problems of corruption and inefficient delivery. But these problems are in no way linked to beneficiary fraud. It’s not clear how regulating access to the Midday Meal Scheme by linking it to the Aadhar cards will improve its efficiency. In fact, such an attempt might prove counterproductive and derail a programme that has improved school enrolment, reduced drop-out rates and improved child nutrition. Aadhar and other schemes Following central government’s scheme of Aadhar for Mid-day meal scheme, five other ministries have issued a series of 14 similar notifications for 11 schemes, including access to primary and secondary education. The critical part of the notifications are that all of them the general benefits of Aadhaar, the scheme and its beneficiaries, and lay out a deadline for enrolling in Aadhaar to continue accessing these schemes. However, none of these notifications specify the particular benefits of Aadhaar for that particular scheme. Privacy concerns Beneficiaries of government schemes who will have to apply for an Aadhaar number include immensely vulnerable groups such as children between 6 and 14 years old, women rescued from sexual trafficking, and even disabled citizens who wish to apply for or continue getting scholarships or government-funded aids and appliances. Other beneficiaries listed in these notifications include adults who are not literate and seek skill training, health workers, aspiring women entrepreneurs and those seeking career guidance and jobs. The notifications have also raised concerns of privacy of beneficiaries, such as women rescued from trafficking and other groups. In February, several instances of security weaknesses in Aadhar, through leak of demographic data of children and instances of private firms illegally storing biometrics have come to light. People from the most discriminated against communities like ragpickers and safai karmcharis do not want their identity to be revealed are staying away from Aadhar enrolment. Compulsory inspite of being voluntary The Right to education was created to “remove barriers to education” and has been interpreted to mean that no documents will be required for a child in the six to 14 age-group to take admission in a school. With compulsory presence of Aadhar, this is the first barrier – in the shape of a required document – being introduced in schools across India. For the senior citizens to be eligible for railway concessions on both counter and e-tickets, Aadhar is made compulsory For school and college students who wished to be eligible for the Central Government Scholarship and National Means-cum-Merit Scholarship schemes, Aadhar is compulsory. Individuals who sought to avail of the LPG scheme should have Aadhar card. Those who wished to gain benefits from the Employees’ Pension Scheme, had to have an Aadhaar card. Thus, Aadhar is touted as a medium to bring in discipline in government schemes. The government’s target of covering entire population is yet short by 13 crores. (As reported in 2016, Aadhaar was given to 103.8 crore people). This may explain the sudden deluge of Aadhaar-related announcements. However, the government should refrain from arm-twisting measures to complete its target. The intent of Aadhar based schemes is acceptable only when it truly wishes to wade out inefficiencies and corruption. Conclusion- Use where necessary The Aadhar scheme has proved a success in weeding out bogus ration cards, helped the government make savings in the MGNREGS, played a critical part of the PM’s scheme for LPG cylinders for people below the poverty line. But using Aadhar to solve mid-day meal problems, by making it compulsory for students has no logic and rationale in it. The problem lies at the implementation level and not with any kind of beneficiary taking undue advantages. To solve MDMS problems, a clear chain of responsibility and accountability in those who operate the programme at all levels is required. Also, government should use other measures to increase enrolment of Aadhar and not create hurdles for children which affects their present and future. Connecting the dots: Is Aadhar proving to be a boon or bane for citizens? Discuss in light of new methodology of government to give benefits only through Aadhar. MUST READ Demonetisation and the GDP: knock-out punch or mild tap? Hindu   Cost of Internet shutdowns Hindu   Reforming funding of polls and parties Hindu   The violence of certainty Indian Express   The next chapter in Internet governance Livemint   The need for a debate on free speech Livemint   Using Economic Survey 2016-17 to gauge demonetisation impact on GDP growth Livemint   Will RCEP make or break industry? Business Line   Cooperatives should reinvent themselves Business Line  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 131]

IASbaba Daily Current Affairs Quiz [Day 131] Click here to get all the Tests– Archives Q.1) Which of the following committees recommend state funding of elections? Jeevan Reddy Committee Indrajit Gupta Committee Dinesh Goswami Committee Jaya Prakash Narayan Committee  Q.2) Who among the following has published “Payment and Settlement Systems in India: Vision-2018”? Reserve Bank of India Ministry Of Finance NITI Aayog Ministry of Commerce and Industry Q.3) The World Development Report (WDR) is an annual report published by United Nations Development Programme World Economic Forum World Bank International Monetary Fund Q.4) Corruption Perception Index is released by World Economic Forum Amnesty International Transparency International None of the above Q.5) Which of the following is the implementing agency for Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana? Reserve Bank of India Niti Aayog National Payments Corporation of India None of the above Download the Solution- Click here All the best IASbaba

IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 6th March, 2017

IASbaba’s Daily Current Affairs – 6th March 2017 Archives URBANISATION AND NOISE POLLUTION TOPIC: General Studies 1 Effects of globalization on Indian society, Social empowerment Urbanization, their problems and their remedies. General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders Noise pollution concerns Introduction Urbanisation is a natural phenomenon and it has spillover effects on generations. The effects are widespread to over health, economy and society at large. Increasing urbanization and consequent increase in vehicles and industries has lead a significant rise in noise pollution and hence deep health concerns. Issue: Study finds that noise pollution is robbing nearly two decades of healthy hearing from the residents of Delhi and Mumbai Air pollution is impairing the lungs of Indians, particularly in north Indian cities like Delhi that have to cope with unfavorable meteorology is a known reality. However, a study across 50 cities in the world finds that noise pollution — from vehicles, power drills, wedding bands, loudspeakers, headphone-use, television and humanity in general — is robbing nearly two decades of healthy hearing from the denizens of Delhi and Mumbai. Using data gathered from over 2,00,000 participants of their hearing test, the study by Mimi, a German company that works on ways to test hearing and improve music perception, found That 64% of the hearing loss measured in people of a city could be explained by the region’s noise pollution levels. Variations The data was gathered by those who used Mimi’s hearing test app, which allows participants to enter their age and gender, and measure their hearing. This is broadly done by playing tones at various frequencies that cover the range of human auditory perception from 20-20,000 Hz. The theory goes that age irreversibly destroys the tiny hair in your inner ear, making it harder to hear high-pitched tones. The older you are, the less the range of frequencies perceived. International standards and issues There is an international standard on the ideal hearing abilities across age groups and the Mimi researchers determined how far, on average, people’s hearing abilities deviated from what’s ideal for their age. This number, called the ‘Hearing Loss’ (HL), varied from 10 to 20 years and the researchers averaged this based on the number of respondents per city. Residents of Vienna were found to have the smallest average HL of 12.59 years, meaning that a hypothetical 30-year-old had the hearing of a 42-year-old. Delhi performed the worst with an HL of 19.34, meaning that a 30-year-old Delhiite had the auditory level of a 49-year-old; Mumbai’s is 18.58. Other cities with the highest average HL but trailing Delhi were Istanbul, Cairo and Guangzhou, in that order. Zurich, Switzerland has the least incidence of noise pollution and Guangzhou, China the highest, according to the report. “While eye and sight checks are routine for most, ear and hearing exams are not,” Dr. Manfred Gross from Charité University Hospital, Berlin, said in a statement, “This is an issue as the earlier hearing loss is detected, the better the chances are for preventing further damage.” Increasing noise levels and issues: So far, the study is yet to be published in a scientific journal or peer-reviewed but prior research has established the link between hearing loss and noise levels. It is estimated, according to a 2015 report commissioned by the European Commission on the impact of noise on health, that 1.3 billion people worldwide suffer from hearing impairment due to noise exposure and that the World Health Organization (WHO) estimates 10% of the global population is currently exposed to noise levels that could lead to hearing impairment. The same body recommends that unprotected exposure to sound levels greater than 100 dB (a firecracker generates about 125 dB) should be limited in duration (four hours) and frequency (four times a year). Additionally, it should never exceed 140 dB in adults and 120 dB in children. India’s Central Pollution Control Board conducts studies of ambient noise in commercial, residential and industrial townships — especially around Diwali — and has found that noise levels in Delhi, Mumbai and Lucknow routinely break the national limit of 75 dB. Conclusion: Urbanisation and consequent growth should be planned. The lack of planning and the resultant disintegration is visible in India and across the world. Noise pollution and the damage caused is a silent but considerable irreversible threat. Connecting the dots: Critically discuss the incidence of noise pollution and its effects on urban areas especially in light of urban sprawl witnessed in India and the world.   ENVIRONMENT TOPIC: General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment Saving the Western Ghats In news: in last three years, the Environment Ministry has hesitated for second time to bring into force a law that will make about 56,825 sqkm of the ecologically-rich Western Ghats out of bounds for industrial development. Background In March 2014, the government had revived a draft that specified how much land in various coastal States encompassing the Western Ghats would be earmarked as practically-inviolate. But as it was not made a law, because of opposition by states, the draft lapsed in September 2015. The same draft was reintroduced in 2015 which is expired once again on March 4 2017. Now, a new draft notification had been issued in February- open to public comments for 60 days which allows the Centre to create an Ecological Sensitive Area (ESA) in the Western Ghats (WG), spanning along west coast of Gujarat, Maharashtra, Karnataka, Goa, Kerala and Tamil Nadu. The regions declared as the ESA will not be allowed to host mining and quarrying projects and building thermal power plants. The Ministry of Environment and Forest is empowered under the Environment (Protection) Act, 1986 to declare any region as deserving of special protection. This provision should be taken up seriously now. Such protection is essential to rule out incompatible activities such as mining, constructing large dams, and setting up polluting industries. The importance of Western Ghats The idea is that whatever is left of these fragile mountainous forests should be protected from unsustainable exploitation in the interests of present and future generations. It also presents a sustainable ways of living to the communities that inhabit these landscapes. To make the issue a typical development-vs-conservation debate is unscientific given the significant role Western Ghats play in development of the nation. It is an accepted fact that Western Ghats play an important and irreplaceable role in mediating the monsoon over the country. Endemism is also at the heart of protecting Western Ghats. According to reliable estimates, they have more than 1,500 endemic species of flowering plants, and at least 500 such species of fishes, amphibians, reptiles, birds, and mammals. The forests harbour a rich biodiversity that is yet to be discovered, researched and understood. This is evident from the fact that new species continue to emerge each year in an area that has endemic plants and animals. The threat still persists when a scientist Norman Myers had written nearly two decades ago that only 8% of primary vegetation out of the original 182,500 sq km remains in the Western Ghats and Sri Lanka taken together. Need of Conservation- recommendations and suggestions Gadgil Committee — In 2011, a committee headed by ecologist Madhav Gadgil recommended that all of the Western Ghats be declared as the ESA — with only limited development allowed in graded zones. Kasturirangan Committee — Another committee headed by former ISRO, it recommended only about 60,000 sq km — or about 37% of the WG be declared ESA. Both expert groups have encountered resistance from State governments and industries, although they mutually differ in their recommendations. Thus, States have forced the Centre to consistently delay imposing the ESA restrictions. What to do? It needs to be known how much of Western Ghats can be demarcated as ecologically sensitive, going beyond the system of national parks and sanctuaries that already exist. Also, if there are other areas free to be exploited for industrial activity, including mining and deforestation, with no environmental consequences. Goa’s loss of ecology has been frequently cited as an example of destruction due to rampant, illegal mining. The complicated task is that of assessment of ecosystem services delivered by the forests, lakes, rivers and their biodiversity to communities. As Gadgil report underscores that the unique value of some locations, such as those with fish or medicinal plant diversity peculiar to a small area, should not get lost in the assessment process. Also, what comes out strikingly is that in a populous country like India, endemism has survived with community support. Thus, MoEF should heed the advice of the expert group and unhesitatingly reject environmental clearance for two controversial dam projects — Athirapilly in Kerala and Gundia in Karnataka — which come under the most sensitive ecological zone category. In this context, Kerala High Court’s direction to the State Electricity Board to repair and restore all existing dams to maximise power output, is relevant as this will eliminate the need for a destructive new structure at Athirapilly. The Western Ghats Ecological Authority, also called as Gadgil Committee, has proposed sound guidelines to conserve and protect the endemic Western Ghats. The need is to translate the recommendations into actions through a statutory apex body. Conclusion Instead of another notification that is floated half-heartedly by the central government as there is weak effort to forge a consensus amongst stakeholders, there is a need of a framework under which scientific evidence and public concerns are debated democratically and the baseline for ESAs arrived at. A national consultative process is required which entails wider consultations with public at all level and bring out several other options such as community-led ecological tourism and agro-ecological farming, to spare the sensitive areas. Connecting the dots: The Western Ghats can be termed as one of India’s prized assets. Yet, not much is done to protect them from destruction. Highlight the problems faced in conservation of Western Ghats and possible solutions for them. MUST READ No time for complacency Hindu   Indiscriminate discrimination Hindu   Islands on the seam Hindu   Leave PoK alone Indian Express   Statistics is growth: let’s eat statistics Indian Express   India’s manufacturing opportunity Livemint   The political economy of India’s bad bank Livemint   Why Indian farmers don’t reap what they sow Business Line   Don’t force rubella vaccine Business Line  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 130]

IASbaba Daily Current Affairs Quiz [Day 130] Click here to get all the Tests– Archives Q.1) Which of the following exchange rate system is being followed in India?? Flexible Exchange Rate System Fixed Exchange Rate System Managed Floating Exchange Rate System Free Floating Exchange Rate System  Q.2) ‘Fiat Money’ is the currency backed by Budgetary support Gold reserves Tangible assets Government Guarantee Q.3) A fractional reserve banking system operates so that a fraction of depositors’ money is available to them at any given time a fraction of depositors’ money is held in reserve by banks banks lend the full amount of people’s deposits None of the above Q.4) Shahpurkandi dam project is located in Uttarakhand Jammu & Kashmir Punjab Haryana Q.5) Consider the following the statements about International Conference on Theory and Practice of Electronic Governance (ICEGOV 2017) It was established by the United Nations University India will host the 10th edition of ICEGOV Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Download the Solution- Click here All the best IASbaba

Motivational Articles

Creative Guidance – Meditation for Success – Inspirational & Educative Articles

Meditation for Success: All of us are searching for one thing; success. Irrespective of where we are and what we are doing, we are striving towards success. Success determines our ability to understand and reshape our present and future. Let us try and understand how meditation can help us to succeed. It is no surprise that meditation has tremendous benefits that can help one relax and focus. It can help us overcome negativity and fear of failure. It can bring a sense of purpose and certainty to our daily actions. It can remove unwanted thought processes that are disturbing us and so on. Apart from all these benefits, meditation has a very real and tangible benefit of helping us to succeed. Success is a combination of striving towards a vision by overcoming all the negative and unwanted thought processes. Meditation is invaluable in helping one to succeed. Meditation has the ability to keep you rooted in the present moment; it can help you to build up tremendous focus. It can also help you to overcome unwanted desires. One hour of meditation every day is a must to be able to enjoy the kind of success we all are searching for. One hour of focused concentration, attention and meditation will bring a sea change in your ability to comprehend your environment, make quick and necessary changes, cope with failure and remain focused. Meditation is neither old fashioned, nor it is meant only to solve a few mental issues. Meditation is universal and its impact and benefit is far reaching. Meditation is a true science of mind, body and the spirit. It is one of the oldest systems of self transformation in the world. Embrace meditation for a better you and a better world. Marvelous changes begin to happen once you start and continue your regular practice of meditation. Slowly you will be able to see things clearly. You will be able to understand people better. You will be able to understand the intricate and dynamic social relationships. You will be able to understand your place in the world. Inner strength, courage, confidence, simplicity and humbleness are the hallmark of a successful person. Meditation will instil all these qualities within you that are absolutely essential for a great life. Embrace meditation; allow it to work its magic on you; allow it to lead you to success. “The articles are a copyright of The Ahamo Movement and IASBABA.”

IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 4th March, 2017

IASbaba’s Daily Current Affairs – 4th March 2017 Archives FREE SPEECH AND EDUCATION CAMPUS TOPIC: General Studies 1 Effects of globalization on Indian society, Social empowerment General Studies 2 Indian Constitution‐ historical underpinnings, evolution, features, amendments, significant provisions and basic structure. General Studies 4 Case studies Free speech and Campus violence Introduction Universities should be platforms of debates and discussions where young minds engage in constructive nation building. It is disturbing to see the recent cases in campuses across the country and ideological divisions leading to violence. Issue: The president has recently addressed his underlining of free speech and what a university should be couldn’t have been more relevant. In a public function in Kochi, President Pranab Mukherjee has said that “there should be no room in India for the intolerant Indian”. It amounts to an eviction notice for the trolls who have dominated the political discourse both online and offline. In addition, the president has specifically pointed to the university as a disputed site in the battle between competing ideas of India, and to the need to preserve its freedoms. And he has stood up for women, arguing that brutalising a woman wounds the soul of Indian civilisation. In the wake of a shameful attack on a woman student in which a Union minister allowed himself to be embroiled, this amounts to a direct indictment of the government. Intolerance and threat to free speech: In October 2015, Prime Minister broke his silence on the Dadri lynching to respond to President’s insistence that diversity, tolerance and plurality are core values binding the country together. Calling him the “pramukh mukhia” of India, Modi had embraced his line and urged the people to follow suit. Rhetorically, he had asked people not to deviate from it even if Narendra Modi told them to. Later, at a function in December, the prime minister had expressed his gratitude for Mukherjee’s guidance in the early days of his government. He had kept Rashtrapati Bhavan updated through the period of turmoil following demonetisation and in his New Year’s address, the president had sensibly pointed out that the people needed immediate succour, and that the year-end relaxations provided a flimsy shield. Need for Tolerance and freedom of expression: Now, while decrying the meanness and ugliness which has cast a shadow over politics as the states go to the polls, President Mukherjee has said that leaders must listen to the people, engage with them, learn from them and respond to their needs and concerns. It is valuable advice for a government which hopes to change the way India lives and thinks. It cannot achieve positive change by unilateral action, and dissent can be demonised only at the expense of democracy. In particular, it must be appreciated that students go to university to learn how to think, not what to think. They must have the freedom to explore knowledge without the fear of being penalised for thoughtcrime, or eventually, the knowledge economy which this government values so much will collapse. Listening to the people and governing according to their needs rather than political imperatives is an ambitious project. But the government could make a small but significant beginning by listening to, engaging with, learning from and respond to the needs and concerns of the president. Conclusion: For a country to emerge dynamically and for a deliberative democracy it is important that free speech and expression is seminal. In India in the past few years repeated incidents have tarnished the record of tolerance and hence raised questions and concerns in international platforms. In this light it is important to listen to the first citizen of the country in true spirit. Connecting the dots: Critically analyse the importance of free speech and expression for emerging democratic countries especially in light of recent incidents.   ECONOMY  TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Post Demonetisation: Conditions for a less cash economy There was a surge seen in digital transactions during the demonetisation period. But now, this trend is showing a reversal in February with accelerated pace of decline in electronic transactions. There was a month-on-month decline of 21.3% in the volume of electronic transactions, higher than the 9.1% seen in January 2017 over December 2016. In December 2016, transactions through electronic payment methods had peaked and the volumes jumped to 957 million (684 million in February). This decline is seen as reflective of the improved cash availability situation over the last couple of months. The drop goes against government’s stated objective of scrapping high-value currencies — that of moving towards a “less cash” economy. The affected areas The biggest fall was seen in cheque payments, use of debit and credit cards at point of sale terminals and mobile banking. These options had emerged as the preferred modes of payment following the lack of availability of cash during the demonetisation period. This shows that demonetisation was a great opportunity to drive the digital transaction ecosystem. However, people seem to go back to their old habits as and when the cash supply eases. One of the reason is- both cash and digital payments have convenience. But cash comes free whereas digital payment comes with a cost. This needs to be dealt with else cash will become more convenient by default and people will go back to using it when supply in the economy is normalised. Thus, some policy incentives are needed to make digital payments a habit. Current scenario At present, there are various charges on digital transactions. Irrespective of who (purchaser or seller) pays, it will have an impact on the cost of goods/services. (there is 2% extra for using card.) This charge is known as merchant discount rate (MDR). Here, the institution issuing credit cards (the issuer), the sponsoring bank of the point-of-service (PoS) device with the merchant (the acquirer) and the settlement provider (typically VISA, Mastercard, RuPay) all charge for a transaction. The MDR, charged from the merchant, is divided among these three parties. This method is applicable in the credit and debit cards. As the PoS device is supplied by the acquirer, there can be some justification for the charge, although this charge should be minimal. However, this concept is continuing for mobile transactions as well even if there are no cards or PoS. ideally, there shouldn’t be any charge as in the mobile app world, PoS machines are the users’ smartphones. So when they make any transaction, they are using their own bandwidth. The reason for charges being market driven is to keep the incentives up for concerned stakeholders, especially acquirers to set up acquisition infrastructure, which has resulted in status quo. The point of incentivising the stakeholder is valid but the charges should also be reasonable to sustain the existence of the system. With no regulatory intervention, the charges have been levied as per one’s own convenience. What can be done? MDR removed from mobile payments A fair charge should be paid to back-end — the bank of the purchaser, the bank of the seller/merchant and the settlement body (NPCI). For example, in telecom sector, there is a ‘work done’ principle which can be applied to online payments too. Suppose, a customer of operator A makes a call to a customer of operator B. Here, operator A charges his customer for the call, operator B is paid by A in lieu of handling that call to its customer. The rate per-minute is computed based on work done by B’s network and are decided by the regulator. Applying the same principle in online transactions, the users should not be categorised as merchants or non-merchants. Instead should be treated as peer-to-peer transactions with no charges. For example, A transfers money to B (who can be anybody including a merchant) using BHIM. The information travels from Bank of -> checks balance-> does authentication (PIN no. etc) -> verified and goes to NPCI (interbank switch) -> NPCI sends the message to B’s bank -> B’s Bank credits money to B’s account. The three entities here are- A’s bank, NPCI and B’s Bank- which are completely digital and if one computes the work done, it is almost zero. It is A and B who are paying the data charges for this transaction and thus there is no network charge payable by any back-end entity. Thus, it is bank’s duty to enable the customer conduct basic banking operations when the mobile transactions are making the lives of banks much easier. There is some rationale in charging MDR (though at much lower rates) for cards because of the PoS machines and card issuance and maintenance. But there is no justification for any MDR charge for mobile banking. Even the authentication of the identity is done by Aadhar, which is also free of charge. Thus instead of looking at MDR as a source of income, larger gains such as more liquidity/float and less cash handling costs (on ATMs and counters) should be viewed. Convenience Charge These are levied by various entities, both private and public, for online transactions. It is one of the revenue streams for most of the websites. For instance, if you book a movie ticket, a flight ticket, pay an electricity bill or school fee online, a convenience fee is levied. Till recently, even IRCTC used to pay a convenience fee of Rs. 20 per ticket (Scrapped in budget now). The justification for this charge is that the customer is getting an alternative payment option, which is a ‘privilege’. It is also used to cover the payment processing charges and what gateways must pay banks for online transactions. However, the question here is who is providing convenience to whom? If the customer is paying airfare or booking movie ticket online, he is paying for the data charges and printing own ticket. Had he been on the physical counter, it would consume time of the counter-clerk, printing cost of ticket et al. Here the digital transaction is reducing the cost of service providers and thus they should provide a discount on online transactions. Others The other essentials for ensuring sustainable transactions are the convenience and confidence of common man. This would entail user-friendly (and idiot-proof) applications which are safe and secure from cyber attacks. For this, a security and interface certification of such applications is required sooner to prevent any fraud from happening. Else, it would be a major setback for digital transaction. IASbaba’s views If a person can save a rupee by spending cash, the person shall go for cash payment than digital payment. This shows the cash-sensitive nature of Indian market. The cost of the digital transactions have to be made competitive with cash to push its usability chances. Additionally, if there is any incentive compared to cash transactions, the digital medium will get a boost. Digital financial transactions and a less-cash India is critical to the growth of the country. It will give more liquidity, better tax-compliance and GDP growth. It will also create a virtuous cycle of creating credit histories, availability of credit to poor at reasonable interest rates and digital credit dispensation, leading to deeper financial inclusion. Connecting the dots: Digital payments require continuous boost and push else the whole idea of ‘a less cash’ economy will fail. Identify the problems pertaining to usability of digital platform and suitable solutions. MUST READ Campaigning on a budget Hindu   The road to China is through Kabul Hindu   War, state and martyrdom Hindu   Crossing a bridge Hindu   What Ramjas taught Indian Express   Cleaning up auto Business Line   Corruption as a driver of the economy Business Line  

PIB

IASbaba Press Information Bureau (PIB)- 7th Jan to 13th Jan, 2017

IASbaba Press Information Bureau (PIB) – 7th Jan to 13th Jan 2017 ARCHIVES GS-2 14th Pravasi Bharatiya Divas Convention at Bengaluru (Topic: Indian diaspora) About— 14th Pravasi Bharatiya Divas was held at Bengaluru. Pravasi Bharatiya Divas Pravasi Bharatiya Divas is celebrated to mark the contribution of the overseas Indian community to the development of India. The day commemorates the return of Mahatma Gandhi from South Africa in Bombay on 9 January 1915. Established in 2003, it is sponsored by the Ministry of External Affairs and the Federation of Indian Chambers of Commerce and Industry (FICCI) the Confederation of Indian Industry (CII) and the Ministry of Development of the North Eastern Region of India. This year theme--Redefined Engagement With Indian Diaspora To honour exceptional and meritorious contribution of Indian diaspora in their chosen field/profession, Pravasi Bharatiya Samman award is given by the President of India. India Development Foundation of Overseas Indians (Topic: Indian diaspora) About---India Development Foundation of Overseas Indians (IDF-OI) is a not-for-profit Trust set-up by the Government of India to facilitate philanthropic contributions by Overseas Indians to social and development projects in India. IDF-OI Presently, IDF-OI is promoting flagship programmes of Government of India- Swachh Bharat Mission and National Mission for Clean Ganga; and projects identified by the State Govts, for funding by Overseas Indians. Working with State Governments in areas such as sanitation; education; drinking water; women’s empowerment etc, IDF-OI is offering projects for funding by Overseas Indians. Overseas Indians can contribute as an individual, or a group of individuals or even through their respective Indian Associations. IDF-OI does not recover any administrative cost from contributions received from Overseas Indians. GS-3 PAN card mandatory for all bank accounts (Topic: Finance) About-- The government has directed banks to obtain the permanent account number (PAN) or Form-60 if PAN is not available, from all bank account holders by February 28, 2017. This rule will not apply to Basic Savings Bank Deposit Accounts (BSBDA), which includes zero balance savings accounts such as Jan Dhan. Reason for making PAN card mandatory Post-demonetization, several amendments were made to track black money making its way into the banking system. In this regard, the know-your-customer (KYC) norms were made stringent. Most of the banned 500 and 1000 rupee notes have made their way to bank accounts several of which are ``benami'' created merely to launder cash. PAN It is a unique, 10-character alpha-numeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. It is also issued to foreign nationals (such as investors) subject to a valid visa and hence, it is not acceptable as a proof of Indian citizenship. The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy. PAN is unique to each individual and is valid for the life time of the holder, throughout India. An important point to note would be that once issued, the PAN is not affected by a change of address. Street Lighting National Programme (SLNP). World’s Largest Street Light Replacement Programme. (Topic: Infrastructure--Energy) About-- World’s Largest Street Light Replacement Programme, which is being implemented by the Energy Efficiency Services Limited (EESL), a joint venture under the Ministry of Power SLNP A total of 15.36 lakh street lights have already been replaced in the country with LED bulbs, which is resulting in energy savings of over 20 crore kWh, avoiding capacity of nearly 51 MW and reducing 1.68 lakh tonnes of greenhouse gas emissions per annum. SLNP programme is presently running in Punjab, Himachal Pradesh, Uttar Pradesh, Assam, Tripura, Jharkhand, Chhattisgarh, Telangana, Andhra Pradesh, Kerala, Goa, Maharashtra, Gujarat and Rajasthan. The Prime Minister’s 10-point agenda on Disaster Risk Reduction (DRR)  (Topic: Disaster management) About-- Agenda presents a holistic approach to disaster risk management and addresses a whole range of issues, from community preparedness to use of technology and international cooperation. 10 point agenda All development sectors must imbibe the principles of disaster risk management. Work towards risk coverage for all-starting from poor households to SMEs to multi-national corporations to nation states. Encourage greater involvement and leadership of women in disaster risk management. Invest in risk mapping globally. Leverage technology to enhance the efficiency of disaster risk management efforts. Develop a network of universities to work on disaster issues. Utilise the opportunities provided by social media and mobile technologies. Build on local capacity and initiative. Opportunity to learn from a disaster must not be wasted. After every disaster there are papers on lessons that are rarely applied. Bring about greater cohesion in international response to disasters. Draft Notification for Prevention of Cruelty to Animals (Dog Breeding and Marketing) Rules, 2016 to Prevent Infliction of Unnecessary Pain or Suffering on Animals (Topic: Environment and Forest) About: The objective of the Rules is to make dog breeders and their marketers accountable and to prevent infliction of any cruelty in this process. There were also no specific rules, or guidelines for mandatory registration of breeders and establishments and requirements to be met by such breeders. The proposed Rules provide as under— It will be mandatory for all dog breeders and the dog breeding establishments to register themselves with the State Animal Welfare Board of the respective State Governments. It defines the breeding requirements/conditions for sale. It defines the requirements to be met by the breeders and the establishments used for breeding, or housing dogs, such as health-related requirements, housing facilities, manner of housing dogs, conditions for sale, breeding, micro-chipping, vaccination etc. An inspector authorised by the State Board can inspect the establishment. It is mandatory for dog breeders to maintain proper records of both male and female dogs, their breed, micro-chip number, number of litters, sale, purchase, death, rehabilitation etc. Every dog breeder is required to submit yearly report to the State Board regarding animals sold, traded, bartered, brokered, given away, boarded or exhibited during previous year or any other information asked for by the State Board. Violation of Rules: Non-compliance of the proposed Rules will lead to cancellation of the registration of the dog breeder. ‘24x7 Power For All (PFA)’ (Topic: Infrastructure--Energy) About: Electricity consumption is one of the most important indices that decide the development level of a nation. The Government of India is committed to improving the quality of life of its citizens through higher electricity consumption. The aim is to provide each household access to electricity, round the clock. The ‘Power for All’ programme is a major step in this direction. Objective 24x7 - Power for All (24x7 PFA) is a Joint Initiative of Government of India (GoI) and State Governments with the objective to provide 24x7 power available to all households, industry, commercial businesses, public needs, any other electricity consuming entity and adequate power to agriculture farm holdings by FY 19. It is important to note that UJALA has emerged as the world’s largest and most successful LED bulbs program. Submarine ‘Khanderi’ Launched (Topic: Defence) About: Khanderi, the second of Indian Navy’s Scorpene’ class stealth submarine. Khanderi The Kalvari class submarine includes superior stealth and the ability to launch a crippling attack on the enemy using precision guided weapons. The stealth features are expected to give the submarine an invulnerability, unmatched by many submarines. INS Khanderi is designed to operate in all theatres, including the tropics. All means and communications are provided to ensure interoperability with other components of a Naval Task Force The submarine is expected to be delivered to Navy by the year end. The first of the class submarine, Kalvari is presently undergoing sea trials and likely to be commissioned into Navy by Mid 2017. These submarines, post induction, would form the core of Navy’s conventional Submarine Arm. Indian Navy celebrates Golden Jubilee of the submarine arm in 2017, the induction of Project 75 submarines would mark the beginning of a new chapter in our submarine capabilities. The launching of Khanderi also marks a critical milestone event for the Shipyard which earlier has delivered two Shishumar class submarines in the 90’s and has now strengthened its position as a submarine building yard for Indian Navy. Khanderi is name of Shivaji’s fort.

Website
Terms and Conditions Privacy Refund Policy Learning Management System by Testpress