Jan 27, 2017 RSTV Video

The Big Picture - Climate Change and Pollution in 2016

Climate Change and Pollution in 2016 Archives TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment Climate Change The World Met Organisation Report            published at Global Climate Summit in Morocco found the global temperature in 2016 is 1.2 degree Celsius above pre-industrial levels. This is close to the 1.5 centigrade target included as an aim of the Paris Climate Agreement. 2016 was recorded as the hottest year on record and high temperatures prevailed for the third year in a row. It means 16 out of the 17 hottest years on record belong to this century. The effects of climate change are coming sooner and with more ferocity than expected as there are now extreme temperatures leading to frequent changes in weather. Several efforts have been made over the years to understand and mitigate global warming challenges and resultant climate change effects. 2016 saw President Obama spearhead the challenge of trying to contain environment pollution but somehow the results have not beenupto the mark. This proves the difference between talks and actions. The talks at conferences and meetings continue, but hardly countries are putting into effect the outcomes of such meetings. The climate protection leaders at the global level continue to talk and write about it but don’t practice thus making them ‘non-practising’ environmentalists. Even Gandhiji was not a supporter of those who preached but did not practice. He wanted the freedom fighters to use charkha, clean their surroundings including toilets in their struggle towards gaining freedom. Today, the problem arises when non-practitioners are occupying important positions in world.Once they begin acting on their promises, the climate change mitigation will actually begin. Role of India The role of India is increasingly becoming important in this area as it has been proactively undertaking leadership roles in mitigating climate change effect. 2016 has been significant as India has been bolder and more ambitious than it was expected in expressing its concerns about climate change and steps to mitigate it. The INDCs are more than expected and same goes with renewable energy targets. However, USA’s role in coming years has generated worrisome reactions with new President’s primary indications not in support of finding it necessary to address the climate change effect in terms of Paris accord. If the largest emitter in the world and the most affluent and industrialised country begins to retract from its commitments, then it is not a good sign for the world. The new President and his team have been in support of fossil fuels and oil industry. There is also scepticism in US if the clean energy projects will get that sort of funding that was available during Obama’s regime. Obama’s clean energy initiatives are also in doldrums and this will impact the world as many countries follow US and with its retraction, many countries might follow its footsteps. The next thing to watch is upcoming round of negotiations where the new climate team of USA would be present. Business in backdrop Climate change negotiations is not about environment but more about business. Europe and USA are pushing for climate change deal primarily because 80-90% of the patents of clean energy projects is with them. In next 20-30 years, the big business deals are expected to come from clean energy projects which will increase their business prospects as well as income. Such technology and projects are available at very high cost for countries like India. These are not feasible until the financial base is provided. They have to be subsidised by the western countries to make it affordable for emerging. Many years ago, carbon capture was promoted as the big thing for thermal power projects but it failed because of high cost. None of the western countries were willing to subsidies it, provide financial incentives for the poor or developing countries to adopt the new technologies. If the western countries are not willing to provide the funding which they have committed, then it will be difficult to walk the talk for mitigating climate change impact. For example, USA has committed 100 million dollars by 2020. Out of it, so far only 13 billion dollars have been disbursed where it should have been 50 billion dollars. If the commitment of financial support, technology transfer is not there, the negotiations or the process will not move forward in a positive way. Development vs. environment debate Much has been talked about increased focus on development and decreased environment protection. However, none can be ignored given the experience that a country needs to develop as well as maintain its ecology and environment for it to have ‘sustainable development’. Pollution 2016 has been landmark year because the year started with lot of movement across different cities in India where pollution became the buzz word for an average citizen (Delhi’s odd-even scheme). Concerns have been expressed over increased pollution, especially air pollution but steps taken to clean it have not been consistent as well as prioritised. The pace of replacing conventional technology with green alternatives is far from what is desired. In next few years, India is going to see rapid growth in urbanisation which will have more demand for vehicles and thereby increase in pollution. Make in India promotion Clean environment and clean technology come at a cost. While making policies for the nation, there should never be comparison with what other countries are doing. India has initiated the project of International Solar Alliance which was announced during Paris meeting. Once it is ratified by 15 countries, it will come into force. However, for clean and green energy, India has to do research in it. Rather than bringing the technology from outside all the time, India will have to make new technologies with help of Make in India. It is necessary to understand conditions prevailing in India- the kind of soil present, raw materials required, finances available etc. and then make appropriate technology. Currently India is making a rule book for Bonn Climate Change Conference taking place in 2017. India has to work keeping in mind its national as well as citizen’s interests. It will include how INDCs will be achieved. This topic has to be converted into mass movements instead of just talking about it in seminars and conferences. Air pollution It is the introduction of harmful substances including particulates and biological molecules into atmosphere which may cause diseases, allergies or death in humans. Delhi is known to be among the most polluted city with its air pollution standards being worse than accepted levels. Air pollution in India is hurting today. The lung capacity of 50% of children is being adversely affected because of new normal in Delhi. This should not be accepted and people have to come out on streets to protest against it. As soon as air pollution goes up, the administrators target the vehicles. Which fail. So out of the box thinking is required which is possible only with individuals making an effort to control pollution. Also, the problem is not of funding as far as pollution is concerned. Rather it is prioritisation. For instance, places are require no improvement are repeatedly improved by spending unnecessarily. In Smart cities project implementation in Delhi, the government has chosen NDMC area which already has well placed greenery, pavements, sufficient walking space for pedestrians and other relevant infrastructure. Whereas on other side in low income areas, where actually many cyclists live, there are no exclusive cycling paths, no pedestrian facilities, no access to public transport. Thus, a lot priorities are differently oriented than needed. India has National Electric Mobility Mission programme which is focusing on incentivising growth of electric vehicles. This scheme should help in gaining momentum for all the vehicles segments including 2W, 3W, 4W, LCVs and Buses. Possible steps Increase in access to last mile, affordable, accessible, safe public transport system. Quickly transferring to cleaner Euro 6 standards Increased electric vehicles in cities, especially in public transport like taxis, buses and three wheelers. Dedicated pedestrian and cycle paths are also required. Personal involvement of people at individual and organisational levels to push clean environment motto. Addition of pollution into political agenda to get it prioritised. Connecting the dots: Climate change and pollution are interlinked. Related articles: Clearing the Air: An alarming rise in pollution levels Air pollution levels up by 8%: U.N. report

Jan 27, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 27th January, 2017

IASbaba’s Daily Current Affairs – 27th January 2017 Archives WELFARE/GOVERNANCE 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 The Need for a Basic Income for All Introduction The concept of basic income is not new to the socialist world and the policy makers and economists promoting the welfare approach. Basic income was discussed as early as 16th century by Thomas More who suggested it to be an unconditional universal basic income for all adults regardless of other income sources. Recently in the 20th century as well, Nobel Laureate Bertrand Russell emphasised on a basic income important for basic necessities. What Constitutes Basic Income? Basic income refers to a minimum income which can provide for basic necessities sufficiently for all. It should be given to all irrespective of their employment status. Additionally, even post education if a person is not employed, he / she should be given the basic income. Contemporary Examples The world over, policymakers from various advanced countries are considering to include basic income as part of the social welfare model in their countries. Finland, on a pilot basis, is planning to select two thousand unemployed persons who will receive certain basic monthly tax free income for next two years. A similar experiment of guaranteed unconditional basic income was done in Madhya Pradesh also in 2014. Basic Income - Rationale Economists and policy makers advocate the provision of basic income due to following reasons: For the purpose of fighting inequality. To tackle slow wage growth and aid financial security. To tackle increasing fears of advancing automation due to globalisation and immigrants competing for jobs which are meant for the local population. To reduce the gap between haves and have nots. Benefits arising from Basic Income Provision Studies and surveys on the basis of trials and pilot studies have reported various benefits of providing basic income to people which are as follows: The nutrition intake of those suffering from poverty rose. Data provides that consumption of pulses, fresh vegetables and meat was up by huge number of 1,000%, 888% and 600% respectively. People were also able to spend more on healthcare and as a result, incidence of illness dropped. Among other social indicators education also witnessed progress in terms of enrolment and attendance, especially among female students. Basic income lived up to its rationale of reducing the gap between rich and poor and led to more equitable development. People living in villages worked harder than before and also took up multiple economic activities with the help of the basic income. With this confirmed source of income, indebtedness of people decreased and the capacity to save increased, hence placing them in a better financial position. Basic income acts as a kind of a social security for the weak, unwell or physically challenged. Also for people who are skilled and have employment but are not able to receive quality wages due to lack of opportunities or other reasons, basic minimum income acts as a supplement to the existing economic resources. Way Forward for India Along with the National Food Security Act, MGNREGA, a plan for provision of basic income can be a game changer for the country. The Government of India has also decided to dedicate a special chapter to basic income as a tool for poverty reduction in the upcoming Economic Survey. However, the government needs to be cautious of its impact on the fiscal deficit. A major reformation will have to be done to ensure smooth implementation of guarantee all three basic requirements for the poor i.e. food, basic income and wage jobs. As a part of these reform measures, the government needs to work on the funding, implementation and mid-term review of MGNREGA. To ensure the financial viability the government will have to replace existing subsidies and other such existing programmes. This will help in elimination of all over lapping policies and check the expenditure of the government as well. The government can implement the basic income using the Socio-Economic Caste Census. Connecting the dots A minimum basic income provision can be helpful in poverty reduction, livelihood security and improvement of social indicators. Discuss. Also comment on the administrative feasibility and financial viability of such a programme for India. Related article : Idea of a UBI for India   NATIONAL TOPIC: General Studies 2 Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure. Is democracy limited only to elections? Democracy and India Ambedkardefined democracy as a means to bring about a significant change in the living conditions of the depressed without resorting to bloodshed. In a democracy, people have sovereign power to consciously participate in the democratic process of choosing their representatives who would ultimately reinforce their will. However,there are certain basic foundations to be created to have successful democracy in India: Empowerment of weaker sections of society like poor, disabled, minorities, women to exercise their democratic rights like participation in elections, access to fundamental rights etc. Elected representatives should perform sincerely and not misuse power. Presence of strong public opinion Eradication of social evils Tolerance and communal harmony among people Space to express dissent and freedom to criticise Of these, election process is one of the first means to realise the ideals of democracy as it allows people to choose their representatives to create a sustainable liveable society for them. Assertion of political equality When the constitution was being prepared, universal suffrage was easily accepted which was morally daring act of the nationalist movement. This assertion of political equality marked the creation of a new India at the time of independence. So far, India’s greatest achievement has been adhering to political equality in every election. The scale, excitement and dignity of Indian election has been such that it has evoked positive response about India’s democracy. The Election Commission has emerged as the vital institution that safeguards this cornerstone of modern Indian identity. The commitment required to institutionalise political equality, ensure that each voter was recognised, transformed the character of the Indian state.The mundane act of preparing lists is not just a bureaucratic exercise; it is the fundamental act through which each individual is given political standing. Hence, elections formed a critical portion of upholding the democratic values. Democracy and elections- which follows what? Elections are one of the events that have united Indians. So far, the state and the citizens have zealously safeguarded, enthusiastically participated in and lively celebrated this event. However, it is frequently being realised that the democracy is found to limiting itself to just to election process and elections cannot always be safeguarding the democracy. Sometimes, the concentration of power gets legitimised by elections under certain circumstances which can be contrary to ideals of democracy- liberty, equality of opportunity, freedom to express and opinionise, regard for due process and non-arbitrariness in state action and more. It has been joked that, in many countries elections exist for democracy but in India, democracy exists for elections. Though it can be taken as political humour, it raises questions about the relation between election and democracy in India. Whether election is the floor or ceiling of democracy? Whether meaning of India’s democracy is limited to conduct of elections? If elections hide and make subordinate almost all other issues in society? The great quality of election is that it politicises all aspects of Indian society. Whether it is class, caste, religion or income. But this quality can also be a handicap if they are expressed against the constitutional values to attain electoral power and position. Thus, there is need to reflect between elections and constitutional values. The civic structures of the state and its administration have to be made by imbibing the democratic values in them so that the elections and its result don’t shake the foundations. The founders of the constitution, particularly Dr.Ambedkar, were absolutely clear that entering into a relationship with fellow citizens through a constitution was a very special type of relationship.This relationship was not founded on kinship or bloodties but based on shared values. The universal adult suffrage embossed new modality of human relationships and the right to vote created a new political structure. This structure would have people respond to each other as fellow citizens, honour individuality as well as arguments of opposition. This would make the criticism of government possible without fear and at the same time continue to have respect for constitutional framework. However, constitutional politics has been threatened from many sources like when community sentiment is evoked without evaluating underlying moral claims. If community sentiment becomes the basis of legislation or administration, it negates the promise of modern constitutionalism. Constitution ideal is also threatened when electoral politics becomes too corrupt or when the state becomes an extended arm of the rich. When the constitutional politics becomes subordinate to individual leaders and there is impatience in the institutions, challenges surface to maintain constitutional values. Conclusion Elections are part of democracy and a shining example that overcome tremendous odds, to consistently bring more and more people each year to the ballot box, through a process that is efficient, quick and uses technology for the advantage of its citizens.The aim of election should be to elect representatives that have the abilities to uphold the constitutional principles and assist democracy to never assault constitutional core. Elections suspend the everyday reality of inequality of wealth and status that dominate day-to-day life and asserts popular sovereignty on that day. This is the strength of elections which manifest the idea of democracy. However, practice of democracy should not be limited to conduct of elections and further it in many spheres. With major elections round the corner, it needs to be asserted thatthe success of India’s democracy depends on believing in constitutional values and practising the same. Connecting the dots: Election exists for democracy or democracy exists for election? Analyse. Election is the first step to climb the ladder of successfuldemocracy. Do you agree? MUST READ Setback to climate action plans Hindu   Rolling back Ordinance Raj Hindu   Look at budget algebra, not math Indian Express   After the quake Indian Express   Zero sum game is up Indian Express   Carrots, not sticks Indian Express   Digital payments don’t need fiscal intervention Livemint   Budget should focus on private investments Livemint   MGNREGS to see record spending as demonetisation drives demand for work Livemint   ‘Gender bias leads to anaemia and malnourishment in girls’ Business Line   Tax PoEM Business Line   Why our farmers are killing themselves Business Line   Happy spin-offs Business Line  

Jan 27, 2017 MindMaps

IASbaba’s MINDMAP : Issue - Andaman & Nicobar Islands and South China Sea

IASbaba's Mind Map:Issue - Andaman & Nicobar Islands and South China Sea Archives P.S- Right Click on the image and open it in new tab. From there you can save it in your system.   Reference - Link 1 Link 2

Jan 27, 2017 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 108]

IASbaba Daily Current Affairs Quiz [Day 108] Click here to get all the Tests– Archives Q.1) The Ministry of Home Affairs will issue the industrial licences for defence manufacturing which includes electronic aerospace and defence equipment. Consider the following statements Previously it was issued by Department of Industrial Policy and Promotion (DIPP) under Ministry of Commerce and Industry With the notification of Arms Rule, 2016, Items configured for military use will be handled by Home Ministry instead of DIPP Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2  Q.2) Consider the following statements about National Clean Energy Fund (NCEF) It is created for funding research and innovative projects in clean energy technologies An Inter-Ministerial Group (IMG) chaired by Finance Secretary approves the projects/schemes eligible for financing under the NCEF Creation of NCEF was announced in the Union Budget 2015-16 Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above  Q.3) Consider the following statements about Investor-state dispute settlement (ISDS) It is a system through which individual companies can sue countries for alleged discriminatory practices ISDS is found in the Energy Charter Treaty of which India is a signatory It is contained in NAFTA and proposed TPP Which of the following statements is/are correct? 1 and 2 1 and 3 2 and 3 All of the above Q.4) Canary Islands is located in Pacific Ocean Indian Ocean Atlantic Ocean None of the above Q.5) Which of the following statements about ‘vote-on-account (VOA)’ is/are correct? A VOA in the strict sense deals only with the expenditure side of the government's budget, whereas an interim budget has to include both expenditure and receipts A VOA cannot be for a period longer than six No changes are made to tax and duty structures and no new schemes are announced in vote-on-account All of the above Download the Solution- Click here All the best IASbaba

Jan 26, 2017 MindMaps

IASbaba’s MINDMAP : Issue - India-China-Nepal

IASbaba's Mind Map:Issue - India-China-Nepal Archives P.S- Right Click on the image and open it in new tab. From there you can save it in your system.   References- Link 1 Link 2 - (Use fodder points from this article for Questions related to India-Nepal) Link 3

Jan 26, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 26th January, 2017

IASbaba’s Daily Current Affairs – 26th January 2017 Archives INTERNATIONAL RELATIONS TOPIC: General Studies 2 India and its neighbourhood- relations. Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. Growing Chinese Presence in South Asia Introduction Growing Chinese influence in South Asia has been very evident in the past few years. When Sri Lanka decided to develop the Hambantota port and areas around it, the Sri Lankan government was not very keen on taking assistance from India or the Western nations. During this time, China grabbed the opportunity and initiated major investments in the region. Similarly, Gwadar Port in Pakistan is another hub for Chinese investment and for the military to have base and access to the connected regions. China’s interest in both these regions has raised quite a few questions in the mind of India and political thinkers about its impact on India. China and Sri Lanka Chinese presence in Hambantota is a result of the Indian inclination towards developing Colombo port and China’s financial strength which made its investments in Hambantota more viable. China has also acquired naval facilities in Hambantota to show its military might. Why Hambantota has been a domestic failure? Other than the port construction, China’s Exim Bank offered loans for projects such as a southern highway, a tele-cinema park and an airport of which all the projects ended up as financial failures. The reasons for this are: As compared to Hambantota, Colombo is a natural port and a better location from where goods are exported to and imported from India. Hambantota has very limited share of imports entering Sri Lanka. Similarly, no international flights are using the Hambantota Airport even though free landing facilities have been offered. Financial liabilities far outweigh the revenue. Opportunities for China As a result of the above situation where the domestic financial viability of development of Hambantota has been very poor, China has been able to get access to lot of opportunities which are as follows: Ownership of Norochcholai power plant has been transferred to China, under a debt swap agreement, due to no repayment of debts incurred on its construction. Due to overflowing debt and increasing liabilities, Sri Lanka has sold 80% of the Hambantota port to China. Sri Lanka has also offered an investment zone to China in the same region. As a result of this entire scenario, China will now manufacture in Sri Lanka and export to India making best use of the advantages arising due to the free trade agreement between Sri Lanka and India. China in Gwadar and related Concerns Just like Hambantota is set to become an essential element of China’s Maritime Silk Route, China intends to use Gwadar to develop on the China-Pakistan partnership and strengthen maritime control over the sea-lanes used for oil/gas supplies from West Asia. The China-Pakistan Economic Corridor (CPEC) being developed by China in Pakistan. It connects China’s Xinjiang province to Gwadar through Gilgit-Baltistan. This region is a part of the Pakistan Occupied Kashmir which is actually a part of India’s territory. The CPEC is being developed with much more favourable financial conditions for Pakistan and lacks transparency as well. Challenges for China Lack of clarity regarding the intended beneficiaries of CPEC. Baluchistan is against the project because of people of the region are getting no benefits out of the project. Baluchistan is also unhappy with the returns that they will receive from the investment by China in Saindak copper and gold mining projects. Fear of outsiders coming into the province and putting immense pressure on the resources is also prevelant as a result of the CPEC and the development of Gwadar port. India’s Concern Chinese activities in Hambantota are of both strategic and economic interest to India. India has to be vocal about the fact that it does not accept China’s growing control in the region and the use of Hambantota for parking Chinese warships and submarines. Combined control and influence over Gwadar and Hambantota will give China the chance to interdict vital oil supplies. Increasing militarisation by China and threats to militarily equip India’s neighbours is a major concern. China and Pakistan together will be able to get easy access to the Gulf of Hormuz. This will create obstacles in smooth movement of energy resources from West Asia to India and put questions on energy security as well. Connecting the dots Throw light on China’s growing presence in South Asia and the Indian Ocean region. Discuss its impact on the geopolitics of the region. Also suggest what should be India’s approach towards these developments justifying your stand with reasons. 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. The need to adhere to FRBM targets In news: the Fiscal Responsibility and Budget Management (FRBM) Committee submitted its report recently. Though it has not been made public, news reports say that the panel has recommended fiscal consolidation, but not at the expense of growth. Let us have a look at how macro environment affects micro level decisions. Budget and fiscal management At the time of budget, the household level is more concerned about individual tax rates and prices of goods as they change in response to taxes that the government levies. However, seldom the macro part of the budget- fiscal deficit and tax-to-gross domestic product (GDP) ratio- is taken into consideration at household level. It is important to know what they mean as they affect at the household level. Fiscal deficit When the government spends more than what it collects as revenue. Revenue= Taxes (like personal income, corporate, excise, customs) collected by government If revenue is equal to the expenditure, the government’s budget is balanced, but most governments run on a ‘deficit’ or spend more than they collect. This ‘deficit’ is financed by ‘borrowing. The market loans in Budget 2016 were Rs. 4.25 trillion or 21% of the budget of Rs. 19.78 trillion. The fiscal deficit was 3.9% of GDP against target of 3.5% for 2016-17. The FRBM targets are 3% fiscal deficit and a zero revenue deficit. In simplistic terms, revenue deficit is like credit card debt which finances current consumption, hence it is a bad loan. The fiscal deficit can be understood as home loan which leverages future income to build an appreciating asset. So, the government will borrow responsibly (as loans are debt) with fiscal deficit being 3% and revenue deficit being zero. Government needs to borrow India’s tax-to-GDP ratio is just 16.6% as compared to emerging market economy average of 21% and OECD average of 34%. Tax-to-GDP ratio= it is the ratio of tax collected compared to national gross domestic product (GDP). Some countries aim to increase the tax-to-GDP ratio by a certain percentage to address deficiencies in their budgets. Tax on income in 2016-17 budget was 18% of the budget. Only 1% of the Indian population pays income tax. However, looking at the lifestyle changes and the means through which money is spent shows the gigantic number of cases of tax evasion. Hence, to finance the budget deficits, the government needs finances which it ultimately borrows from market. In 2009-10, fiscal deficit was 6.6% of GDP and government’s borrowing programme spiked. Large government borrowing programmes usually lead to financial repression Financial repression is the ability of the government to attract household saving to itself by fixing the rules. Here, the government fixes the investment rules of banks and insurance firms so that it can have steady income that goes into G-Secs. That is why, the savings rate are usually low, FD rates are usually below inflation and a traditional life insurance policy gives around 3% return a year over a period of 15-20 years. Atleast 24% of total bank deposits are invested in government bonds because of the formation of rules. Even the insurance companies ensure that a large part of the premium is invested in government securities. Thus, reforms in the capital market have been much easier than in banking or insurance as there are no fixed investment rules that take household money through mutual funds or other market-related products. The government worries when bank deposit rates slow down or the insurance premiums fall as people will divert their savings elsewhere, thereby making it difficult for the government to finance itself easily. Committing to FRBM targets A high fiscal deficit that goes to finance current government consumption or pre-election freebies as well as low tax-to-GDP ratio is a worrisome trend as it affects the individuals who is the taxpayer, the investor and the inflation-hit consumer. If the government commits to the FRBM targets irrespective of pre-election year or not, will help the government in maintaining finances. Setting up of public debt management authority (PDMA) is inevitable as it will take the conflict of managing the government borrowing programme out of an inflation-targeting central bank. Better tax compliance will increase tax-to-GDP ratio. If the tax evasion continues, government will be forced to borrow more which will ultimately affect the If the FRBM targets are complied with, the ground is set for ending the financial repression carried out by banks and instead should be done through insurance companies. Thus, FRBM shows how macro numbers relate to micro lives and individuals and households should act more responsibly. Background The concept of a fiscal responsibility framework was first mooted in 2001 as the government was close to fiscal deficit of 6% of GDP The roadmap was laid down as part of the Fiscal Responsibility and Budget Management Act, 2003 which asked that the government’s revenue deficit be eliminated by 2008 and fiscal deficit reduced to 3% of GDP. The framework saw early success and the central government managed to bring down its deficit to a 30-year low of 2.5% of GDP in 2007-08. Following the global financial crisis, the fiscal deficit once again surged to above 6% of GDP. Since then, the government has failed to bring the deficit back down to 3%. In 2016, the Government had constituted a Committee to review the Fiscal Responsibility and Budget Management (FRBM) Act under the Chairmanship of Shri N.K. Singh. Fiscal management becomes all the more important post-demonetisation and the resultant slump in consumption expenditure. The view is that the government could be tempted to increase public spending to boost consumption. Connecting the dots: What is your understanding about fiscal deficit and fiscal consolidation? How does macro economic outlook affect at micro level? Explain. 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Jan 26, 2017 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 107]

IASbaba Daily Current Affairs Quiz [Day 107] Click here to get all the Tests– Archives Q.1) Consider the following statements about ‘Mission Indradhanush’ It was launched by the Ministry of Health and Family Welfare It aims to cover all those children by 2020 who are either unvaccinated, or are partially vaccinated against seven vaccine preventable diseases which include diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about ‘Predatory Pricing’ It is the act of setting prices low in an attempt to eliminate the competition It makes markets more vulnerable to a monopoly Which of the following statements is/are incorrect? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.3) Which of the following statements is/are correct? National Voters Day is observed on 25th of January A non-resident Indian can vote in his/her hometown after registering as an Overseas Voter When an Indian becomes a citizen of another country, he/she automatically loses the right to vote Overseas Citizens of India, who are citizens of another country, do not have the right to vote Select the correct code 1, 2 and 4 1, 2 3 and 4 2, 3 and 4 2 and 3  Q.4) Consider the following statements about Varishtha Pension Bima Yojana 2017 The scheme is meant to provide an assured pension based on a guaranteed rate of return of 10.25% per annum for ten years, with an option to opt for pension on a monthly/quarterly/half-yearly or annual basis It will be implemented by Life Insurance Corporation of India (LIC) Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2  Q.5) Disguised Unemployment is generally found in Agriculture Trade Industry Transport Download the Solution- Click here All the best IASbaba

Jan 25, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 25th January, 2017

IASbaba’s Daily Current Affairs – 25th January 2017 Archives INTERNATIONAL RELATIONS TOPIC: General Studies 2 India and its neighbourhood- relations. Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. India UAE Relations Introduction Over the years India and United Arab Emirates (UAE) have forged a very strong friendship based on cultural, religious and economic ties. The friendship between the two flourished under the rule of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and then later with the creation of the UAE Federation in 1971. Both the countries have constantly made efforts to take the relationship to new heights constantly. The relationship, in contemporary times, is further set for a boost. Prime Minister Narendra Modi visited UAE in 2015 and was the first Indian PM in 34 years to visit UAE. The crown prince Sheikh Mohammed bin Zayed Al Nahyan will be this chief guest at India’s Republic Day Parade this year and the present government has always used this platform to send important policy signals. Areas of Cooperation Trade and Commerce UAE is the third largest trade partner of India next only to China and the USA and the Gulf Cooperation Council (GCC) countries together are India’s second largest trade partners. India’s energy needs are primarily satisfied through the UAE and other Gulf nations. The GCC is the source of 45% of India’s petroleum and UAE is one of the biggest sources of oil imports into India. UAE’s Sovereign Wealth Fund is the future source of huge investments for India. UAE-India Infrastructure Investment Fund is also expected to see progress this time as a Memorandum of Agreement for the Fund will be signed between the two nations without further delay. Defence and Strategy India UAE have signed the Comprehensive Strategic Partnership Agreement this week which paves the way for joint defence production and more defence procurement deals between the two countries. Due to the importance of Strait of Hormuz and Bab-el-Mandeb, Indian Navy has regularly paid visits to important port locations for ensuring security measures are in place. India and UAE have also carried out naval exercises in this region and Indian warships have been placed for tracking piracy and carrying out anti piracy operations. To promote regional security, cooperation for reconstruction and the peace process in Afghanistan is an important areas for both the countries to be on the same page. Human Resource and Indian Diaspora India has the highest percentage of diaspora in the Gulf nations including UAE and more than 50% of India’s remittances are received from this region. Therefore, for cordial relations it is very important for UAE to ensure proper living conditions for these workers. India has also launched an eMigrate System to provide for recruitment of Indian workers in UAE and other countries. UAE is highly interested in India’s human resource for sectors such as information technology, construction and transportation. Hence, the two nations are looking to sign labour agreements to ensure employment and good working conditions. Terrorism Both UAE and India are located critically in terms of proximity to terrorism affected areas. As a result both have agreed to partner on opposition to terrorism. It is important for the two nations to partner in calling other states to abandon terrorism, destroy all forms of infrastructure that supports terrorism and ensure that terrorists and stakeholders are punished adequately. With the Islamic State (IS) growing on one side and Pakistan located in close proximity on the other, the Gulf nations including UAE face a dual danger in terms of terrorism. Even though Pakistan has been a close ally of the UAE, there has been a constant inclination towards improving relations with India for regional security. Conclusion The constantly evolving geopolitics globally, with China’s rise and emergence of Islamic State, has made it important for India to focus on this partnership. This partnership has a unique 360 degrees relevance. The two countries are important to each other for economic, defence, strategic, people to people ties and energy security. With the falling oil prices, India also provides UAE an alternative opportunity for making investments. UAE has to ensure that it safeguards the interests of the strong Indian diaspora.  These measures will go a long way in sustainability of this unique partnership. Connecting the dots UAE is not only important for India’s energy security but holds a comprehensive 360 degrees relevance. Highlight he areas of cooperation between the two nations and how will India benefit from this relationship.   NATIONAL TOPIC: General Studies 1 Indian culture General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Jallikattu and the debate surrounding it (Part 2) The protests around Jallikattu gained momentum which made the state government to pass an ordinance to allow conduct of Jallikattu, which was banned by the Supreme Court in 2014 along with bullock cart races in Maharashtra and Punjab, Kambala (buffalo race) in Karnataka and Dhirio (bull fight) in Goa. Let us critically analyse arguments for and against Jallikattu to assist you in developing an opinion on the subject. Why it should not be banned? Protect the native breed The native breeds require less water, can withstand higher temperature and have a low metabolic rate. Therefore, they require less food and can sustain on food not required by man. Previously, cattle were used for tilling, pulling carts, and giving milk. Since machines replaced them in some of these activities, and as their milk production was comparatively less than that of hybrid varieties, Jallikattu was the way to prevent their extinction. Native breeds have several advantages than the hybrid varieties. Native breeds can reproduce about 10 times in their life time, whereas hybrid varieties could yield calves only about 3-4 times. Native breeds would graze as a herd and insemination is easier. Loss to dairy industry There is a concern that dairy lobby wants all native breeds to be eradicated so that they can import exotic breeds. This is sure shot way to earn excessively as exotic breeds cannot survive in the harsh sub-tropical conditions of India. If the native breeds are eliminated and foreign breeds are imported, multinational commercial companies will dominate the dairy industry in India keeping at stake livelihoods of millions. If there is ban, there will be increased supply of bulls for the meat trade which may create shortage of milk in the market. Not upholding Constitutional provisions The practicing and sustaining of distinct Heritage and Cultural traditions are protected under Article 29(1) of Fundamental Rights Also, it forms of part of Art 51A (f) Fundamental Duties- to value and preserve the rich heritage of the composite culture to which Jallikattu also belongs. Art 48 guides the state to endeavour to preserve and improve the breeds and prevent slaughter of cows and calves and other draught and milk cattle. Hence, it was important that union government had to intervene. One-sided argument It is possible that SC was influenced by documentation done by the Animal Welfare Board of India, a statutory body under the Centre, and animal rights groups like PETA, that served as evidence that the Jallikattu animals were physically and mentally tortured. Here, the other side of the issue was not looked into deeply and hypothetical assumptions were made based on exaggerated claims by animal activists and organisations. Why it should be banned? Promotes discrimination It is a ‘sport’ which is practised only by upper castes. No Dalits or lower castes are allowed to participate. It is a male tradition and no women are allowed to participate. Hence it is a tradition which discriminates among humans by promoting patriarchy and casteism in name of ‘Tamil tradition’. Animals for human entertainment It is a form of torture for animals who have no idea why it is being pounced on or surrounded. It also causes mental stress as well as physical harm to animals which is against Art 21 of Indian Constitution for Right to Live and Right to dignity for animals too. Scientific means for indigeneity The bulls engaged in Jallikattu are sold for a higher price which is generally an incentive for the person who rears them. The sport plays a marginal role in conservation of the breed. Hence it is medieval to identify a herd bull through method like Jallikattu. There are better methods to identify a herd bull such as identifying desirable heritable qualities in the animal, ensuring pedigree (purebred or cross-breed), reading expected progeny differences, breeding soundness (ability to get cows pregnant), and semen examination. Alternatives such as artificial insemination should also be considered. A herd book or register can be established. The other debates Tradition vs. Constitution The constitution of India guarantees right to protect religion but subject to reasonable restrictions arising from issues of morality, health and public order. Torture of animals for human amusement is not acceptable. Hence, the tradition has to be in conformity with the Constitution which calls for right to live as well as duty to protect culture. State and religious interference A democracy allows peoples’ will to be heard and be supreme but it doesn’t entail to accept culture and traditions which are unbecoming of a society. The judiciary has the right to take notice of and enter into discussions where a right of living thing is concerned. In name of traditions and culture, it is not acceptable to violate constitutional ideals. No doubt, the judiciary should completely be made aware of the facts and enlightened with valid arguments which can make it possible for judiciary to make informed decision and roll out critical orders. Tradition and culture are not immune to change. And hence, the rights arguments cannot be made ignoring the cultural context. The polity and the society need to be made aware of the pros and cons of the age-old traditions which might not be conducive in this age of instant information if they violate humane rights. Theological to modern society A “theological” argument would be driven by religious beliefs and sentiments. A "rational" man's argument chooses reason over sentiment. In the age of reason, the demand that people obey laws must be rooted in reason and not sentiment. We need to evaluate our customs and practices as per present values and need. The task of modernisation entails the destabilisation of many institutions and practices. Our founding fathers, Hindus and Muslims alike, in the process of seeking to modernise India, had destabilised and uprooted many traditional practices and institutions. For instance they destabilised and outlawed many discriminatory practices such as hierarchy of castes, sati and untouchability. It doesn't fulfil the essential religious practice criteria. Moreover even age old traditions like Sati and Devadasi are also condoned on the basis of religion but that doesn't make them right. We must as a society do what's just, humane and democratic. Moving forward Under the Convention on Biological Diversity and heritage status practices worldwide, it is customary that these ancient traditional practices are left as they are but with rules to organise and regulate them. Thus, instead of blanket ban, an overview of the sport can be undertaken with various protective measures for animals as well as spectators. The livestock keepers conserve the ancient breeds and should be encouraged to so with bringing bulls back into agriculture and educate society about the virtues of native genes in agriculture and animal husbandry. Also, animal rights activists should be more empathetic to cultures and should not be biased in their opinions pertaining to one community or religion in handling the animal rights. Connecting the dots: In your opinion, should Jallikattu be conducted? Critically analyse. Jallikattu has once again initiated the debate on locking horns between state and culture. Do you agree? Give reasons for your answer. MUST READ Navigating a Trumpian world Hindu   Flirting with chauvinism Hindu   Lift the veil of secrecy Hindu   Disrespecting heritage Indian Express   No proof required: Taxation — beware of the enemy within Indian Express   Cyber era wars Indian Express   Subhas Chandra Bose: The leading nationalist Livemint   Patriarchy doesn’t harm women alone Livemint   Loan for tenants: small reform, big gain Livemint   Budget and moral imperatives Livemint   Renewed focus on maternal and child health a welcome first step Livemint   Elections and governance Business Line  

Jan 25, 2017 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 106]

IASbaba Daily Current Affairs Quiz [Day 106] Click here to get all the Tests– Archives Q.1) Recently, The Fiscal Responsibility and Budget Management (FRBM) Committee submitted its report. It was headed by Urjit Patel K. Singh Arvind Subramanian Sindhushree Khullar  Q.2) Consider the following statements about Rubber Soil Information System (RubSIS) It is an online system for recommending application of appropriate mix of fertilizers to the specific plantations of rubber growers depending upon their soil nature It was launched by Ministry of Commerce and Industry It was developed Rubber Research Institute of India (RRII) under the Rubber Board in collaboration with few agencies Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.3) ‘Kambala’ is concerned with which of the following states? Karnataka Tamil Nadu Odisha Maharashtra Q.4) Networked Readiness Index (NRI) is released by International Monetary Fund World Economic Forum World Bank None of the above  Q.5) Consider the following statements about Acrylamide It is used in treatment of drinking water and waste water It is a natural by-product of the cooking process Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Download the Solution- Click here All the best IASbaba

Jan 25, 2017 MindMaps

IASbaba's Mind Map GAAR & Changes in Tax Treaties - Issue, 25th January

IASbaba's Mind Map GAAR & Changes in Tax Treaties - Issue, 25th January Archives P.S- Right Click on the image and open it in new tab. From there you can save it in your system. References- Link 1 Link 2 Link 3