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Important for prelims as well as mains. The details of the issue are just to make you aware of the happenings. Not actually important for exam.
The regulatory mechanism:
Not very important for exam but being an extension of budget announcement, it can be a prelims tit-bit too.
The NPS or the National Pension Scheme is a contribution scheme launched by the Indian government, which offers a large variety of investment options to employees. The scheme helps individuals make decisions with regards to where they should invest their pension wealth. The National Pension Scheme’s main objective is to lower the liabilities of the Government of India with regards to total pension as well as to ensure that the country’s citizens would earn a stable income following their retirement along with helping them earn decent returns on their investment.
The NPS was launched on the 1st of January 2004 and was aimed at individuals newly employed with the central government, but not including ones in the armed forces. From the year 2009 however, the NPS was made open to every Indian citizen between the age of 18 and 60.
Keep track of the issue as it develops. Important for prelims and mains both. To revise news related to the rail budget merger, click on the Ministry of Finance: Important Updates story, of which this news is a part of. Additional stories with relevant news can be found here – Railway Reforms
Underpinnings of the issue:
Make in India:
Some other provisions of the budget:
The budget allocations are a reflection of the government’s desires and visions. USA allocates its biggest portion of budget in defense. India too needs to loosen its pockets on defense services, specially when we are living in an era of nuclear technology with neighbours like China and Pakistan.
Though a direct question may not be possible, it is certainly important to understand the issue.
A premium on prudence:
The Budget had a number of new features:
Pointers of the budget:
Mixed bag of tax sops:
A question is never directly asked on budget in UPSC exam, but you have to refer to it time and again as pointers in the answers. The Budget is an imperative part of civil service preparation. It gives an understanding of the economy and points out towards the trend of the government expenditure and priorities.
Brush up your budget basics and know what is Fiscal Consolidation, stimulus and what are the effects of stimulus.
1. With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Govt as the apex level forum in December 2010.
2. The Chairman of the Council is the Finance Minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC) Finance Secretary and/or Secretary, Dept of Economic Affairs, Secretary, Dept of Financial Services, and Chief Economic Adviser. The Council can invite experts to its meeting if required.
3. Without prejudice to the autonomy of regulators, the Council monitors macro prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues. It also focuses on financial literacy and financial inclusion.
Transfer pricing agreements will lead to a positive environment and will bring greater certainty. This greater certainty will lead to more investments flowing into India.
The MAP programmes with other countries like Japan and UK are also progressing well with regular meetings and resolution of past disputes.
The key challenges faced by Indian agriculture are the need to increase productivity by leveraging technology.
India is well prepared to deal with the impact of the U.S. Federal Reserve interest rate hike and the end of uncertainties will actually help policy makers in emerging economies.