💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF

Category: Ranker Webinars

  • [Prelims Spotlight] Environment Related Acts

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    30 March 2020

    Air (Prevention and Control of Pollution) Act of 1981

    The Air (Prevention and Control of Pollution) Act, 1981 an Act of the Parliament of India to control and prevent air pollution in India

    It was amended in 1987

    The Government passed this Act in 1981 to clean up our air by controlling pollution.

    It states that sources of air pollution such as industry, vehicles, power plants, etc., are not permitted to release particulate matter, lead, carbon monoxide, sulfur dioxide, nitrogen oxide, volatile organic compounds (VOCs) or other toxic substances beyond a prescribed level

    Key Features

    The Act specifically empowers State Government to designate air pollution areas and to prescribe the type of fuel to be used in these designated areas.

    According to this Act, no person can operate certain types of industries including the asbestos, cement, fertilizer and petroleum industries without consent of the State Board.

    The main objectives of the Act are as follows:

    (a) To provide for the prevention, control and abatement of air pollution

    (b) To provide for the establishment of central and State Boards with a view to implement the Act(Central Pollution Control Board and State Pollution Control Board)

    (c) To confer on the Boards the powers to implement the provisions of the Act and assign to the Boards functions relating to pollution

     

    Environmental (Protection) Act of 1986

    Environment Protection Act, 1986 is an Act of the Parliament of India

    In the wake of the Bhopal Tragedy, the Government of India enacted the Environment Protection Act of 1986 under Article 253 of the Constitution

    Passed in March 1986, it came into force on 19 November 1986

    The Act is an “umbrella” for legislations designed to provide a framework for Central Government, coordination of the activities of various central and state authorities established under previous Acts, such as the Water Act and the Air Act.

    In this Act, the main emphasis is given to “Environment”, defined to include water, air and land and the inter-relationships which exist among water, air and land and human beings and other

    The objective of the Act

    The purpose of the Act is to implement the decisions of the United Nations Conference on the Human Environment of 1972, in so far as they relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property.

     

    The Ozone Depleting Substances (Regulation and Control) Rules, 17 July 2000

    The rules are framed under the jurisdiction of the Environment (Protection) Act.

    Objectives and Key Features

    • These Rules set the deadlines for phasing out of various ODSs, besides regulating production, trade import and export of ODSs and the product containing ODS.
    • These Rules prohibit the use of CFCs in manufacturing various products beyond 1st January 2003 except in metered-dose inhaler and for other medical purposes.
    • Similarly, the use of halons is prohibited after 1st January 2001 except for essential use.
    • Other ODSs such as carbon tetrachloride and methyl chloroform and CFC for metered-dose inhalers can be used up to 1st January 2010.
    • Since HCFCs are used as interim substitute to replace CFC, these are allowed up to 1st January 2040.

     

    The Energy Conservation Act of 2001

    As a step towards improving energy efficiency, the Government of India has enacted the Energy Conservation Act in 2001.

    Objective

    The Energy Conservation Act, 2001 is the most important multi-sectoral legislation in India and is intended to promote efficient use of energy in India.

    Key Features

    The Act specifies energy consumption standards for equipment and appliances, prescribes energy consumption norms and standards for consumers, prescribes energy conservation building codes for commercial buildings and establishes a compliance mechanism for energy consumption norms and standards.

    Bureau of Energy Efficiency (BEE)

    In order to implement the various provisions of the EC Act, Bureau of Energy Efficiency (BEE) was operationalised with effect from 1st March 2002. The EC Act provides a legal framework for energy efficiency initiatives in the country. The Act has mandatory as well as promotional initiatives.

    The Bureau is spearheading the task of improving energy efficiency in various sectors of the economy through the regulatory and promotional mechanism. The primary objective of BEE is to reduce energy intensity in the Indian economy.

    This is to be demonstrated by providing a policy framework as well as through public-private partnership.

     

    Forest Conservation Act of 1980

    Background

    First Forest Act was enacted in 1927.

    Alarmed at India’s rapid deforestation and resulting environmental degradation, the Centre Government enacted the Forest (Conservation) Act in1980.

    Objective

    It was enacted to consolidate the law related to forest, the transit of forest produce and the duty livable on timber and other forest produce.

    Key Features

    • Under the provisions of this Act, prior approval of the Central Government is required for diversion of forestlands for non-forest purposes.
    • Forest officers and their staff administer the Forest Act.
    • An Advisory Committee constituted under the Act advises the Centre on these approvals.
    • The Act deals with the four categories of the forests, namely reserved forests, village forests, protected forests and private forests.

     

    The National Green Tribunal Act, 2010

    Background

    During the Rio de Janeiro summit of United Nations Conference on Environment and Development in June 1992, India vowed the participating states to provide judicial and administrative remedies for the victims of the pollutants and other environmental damage.

    Key Features

    It was enacted under India’s constitutional provision of Article 21, which assures the citizens of India the right to a healthy environment.

    The specialized architecture of the NGT will facilitate fast track resolution of environmental cases and provide a boost to the implementation of many sustainable development measures.

    NGT is mandated to dispose of the cases within six months of their respective appeals.

    Enabling Provision

    It is an Act of the Parliament of India which enable the creation of NGT to handle the expeditious disposal of the cases pertaining to environmental issues.

    Members

    The sanctioned strength of the tribunal is currently 10 expert members and 10 judicial members although the act allows for up to 20 of each.

    The Chairman of the tribunal who is the administrative head of the tribunal also serves as a judicial member.

    Every bench of the tribunal must consist of at least one expert member and one judicial member.

    The Chairman of the tribunal is required to be a serving or retired Chief Justice of a High Court or a judge of the Supreme Court of India.

    Jurisdiction

    The Tribunal has Original Jurisdiction on matters of “substantial question relating to environment” (i.e. a community at large is affected, damage to public health at broader level) & “damage to the environment due to specific activity” (such as pollution).

    The term “substantial” is not clearly defined in the act.

     

    The Coastal Regulation Zone Notifications

    Background

    The coastal stretches of seas, bays, estuaries, creeks, rivers and backwaters which are influenced by tidal action are declared “Coastal Regulation Zone” (CRZ) in 1991.

    CRZ notifications

    India has created institutional mechanisms such as the National Coastal Zone Management Authority (NCZMA) and State Coastal Zone Management Authority (SCZMA) for enforcement and monitoring of the CRZ Notification.

    These authorities have been delegated powers under Section 5 of the Environmental (Protection) Act, 1986 to take various measures for protecting and improving the quality of the coastal environment and preventing, abating and controlling environmental pollution in coastal areas.

    Key Features

    Under these coastal areas have been classified as CRZ-1, CRZ-2, CRZ-3, CRZ-4. And the same they retained for CRZ in 2003 notifications as well.

    CRZ-1: these are ecologically sensitive areas these are essential in maintaining the ecosystem of the coast. They lie between low and high tide line. Exploration of natural gas and extraction of salt are permitted

    CRZ-2: these areas form up to the shoreline of the coast. Unauthorised structures are not allowed to construct in this zone.

    CRZ-3: rural and urban localities which fall outside the 1 and 2. Only certain activities related to agriculture even some public facilities are allowed in this zone

    CRZ-4: this lies in the aquatic area up to territorial limits. Fishing and allied activities are permitted in this zone. Solid waste should be let off in this zone.

    Wildlife Protection Act, 1972

    Background

    In 1972, Parliament enacted the Wild Life Act (Protection) Act.

    Objective

    The Wild Life Act provides for

    1. state wildlife advisory boards,
    2. regulations for hunting wild animals and birds,
    3. establishment of sanctuaries and national parks, tiger reserves
    4. regulations for trade in wild animals, animal products and trophies, and
    5. judicially imposed penalties for violating the Act.

    Key Features

    • Harming endangered species listed in Schedule 1 of the Act is prohibited throughout India.
    • Hunting species, like those requiring special protection (Schedule II), big game (Schedule III), and small game (Schedule IV), is regulated through licensing.
    • A few species classified as vermin (Schedule V), may be hunted without restrictions.
    • Wildlife wardens and their staff administer the act.
    • An amendment to the Act in 1982, introduced a provision permitting the capture and transportation of wild animals for the scientific management of the animal population.

     

    Biological Diversity Act, 2002

    Background

    The Biological Diversity Bill was introduced in the Parliament in 2000 and was passed in 2002.

    Objective:

    India’s richness in biological resources and indigenous knowledge relating to them is well recognized

    The legislation aims at regulating access to biological resources so as to ensure equitable sharing of benefits arising from their use

    Key Features

    • The main intent of this legislation is to protect India’s rich biodiversity and associated knowledge against their use by foreign individuals and organizations without sharing the benefits arising out of such use and to check biopiracy.
    • This bill seeks to check biopiracy, protect biological diversity and local growers through a three-tier structure of central and state boards and local committees.
    • The Act provides for setting up of a National Biodiversity Authority (NBA), State Biodiversity Boards (SBBs) and Biodiversity Management Committees (BMCs) in local bodies. The NBA will enjoy the power of a civil court.
    • BMCs promote conservation, sustainable use and documentation of biodiversity.
    • NBA and SBB are required to consult BMCs in decisions relating to the use of biological resources.
    • All foreign nationals or organizations require prior approval of the NBA for obtaining biological resources and associated knowledge for any use.
    • Indian individuals/entities require the approval of NBA for transferring results of research with respect to any biological resources to foreign nationals/organizations.

    Recycled Plastics Manufacture and Usage Rules, 1999

    Objective

    A rule notified in exercise of the powers conferred by clause (viii) of Sub Section (2) of Section 3 read with Section 25 of the Environment (Protection) Act, 1986 (29 of 1986) with the objective to regulate the manufacture and use of recycled plastics, carry bags and containers;

    Key Features

    1. The thickness of the carry bags made of virgin plastics or recycled plastics shall not be less than 20 microns.
    2. Carry bags and containers made of virgin plastic shall be in natural shade or white.
    3. Carry bags and containers made of recycled plastic and used for purposes other than storing and packaging foodstuffs shall be manufactured using pigments and colourants as per IS:9833:1981 entitled “List of Pigments and Colorants” for use in Plastics in contact with foodstuffs, pharmaceuticals and drinking water.
    4. Recycling of plastics shall be undertaken strictly in accordance with the Bureau of Indian Standards specifications IS:14534:1988 entitled “The Guidelines for Recycling of Plastics”.
  • [Prelims Spotlight] Constitutional and Quasi-judicial bodies.

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    28 March 2020

    Constitutional bodies

    Appointment Tenure Removal Process of removal Eligibility for reappointment w/i govt
    Attorney general (Advocate general) President (governor) Pleasure of President (governor) President (governor) No reason needs to be mentioned Yes
    Election Commission (SEC) President (governor) 6 years/ 65 President CEC and SEC by a special majority

    Other ECs on the recommendation of CEC

    Yes
    Finance commission (SFC) President (governor) Specified by president NA NA Yes
    UPSC (SPSC) President (governor) 6 years/ 65 President After enquiry by supreme court Members can become Chair, state members can become chair or member or chair of UPSC
    CAG President 6 years/ 65 President Special majority No

     

    Statutory bodies

    Appointment Committee members Other members Tenure Removal
    NHRC (SHRC) President (Governor) 6 (PM + LOP Lok Sabha) Speaker, Deputy CP RS, LOP RS, home minister 3 years*/ 70 President after Supreme Court inquiry
    CIC (SIC) President (Governor) 3 ((PM + LOP Lok Sabha) Cabinet Minister nominated by PM As prescribed by the Central Govt*./ 65 President (governor for SIC) after supreme court inquiry
    CVC President (governor) 3 ((PM + LOP lok sabha) Home minister 4 years/ 65 President after Supreme court inquiry
    Lokpal President 5 (PM + LOP lok sabha Speaker, CJI, eminent jurist 5 years/ 70 Like a Supreme Court judge

    *  After amendments in the respective acts in 2019.

    In the news: 

    1. Amendment to the RTI Act (July 2019)

    • Section 13 of the original Act sets the term of the central Chief Information Commissioner and Information Commissioners at five years (or until the age of 65, whichever is earlier). The amendment proposes that the appointment will be “for such term as may be prescribed by the Central Government”.
    • The amendment proposes that the salaries, allowances and other terms of service of the Chief Information Commissioner and the Information Commissioners “shall be such as may be prescribed by the Central Government” which was earlier at par with Chief Election Commissioner.

    2. Amendment to Protection of Human Rights Act (July 2019)

    • It reduced the term of the Chairperson and Members of the Commission and the State Commissions from five to three years and shall be eligible for re-appointment.
    • Provision was added which says a person who has been a Judge of the Supreme Court is also eligible to be appointed as Chairperson of the Commission in addition to the person who has been the Chief Justice of India.
    • The amendment made provision that a person who has been a Judge of a High Court is also made eligible to be appointed as Chairperson of the State Commission in addition to the person who has been the Chief Justice of the High Court.
    • It conferred upon State Commissions, the functions relating to human rights being discharged by the Union territories, other than the Union territory of Delhi, which will be dealt with by the Commission.
  • Get ready for the upcoming February Current Affairs Prelims Test on 28th March- sample questions highlighting our methodology

    Click here to enroll for the Prime Prelims TS

    Dear students,

    31st May 2020 is the D-day for all civil service aspirants.

    “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.”

    This quote by Abraham Lincoln clearly sums up how one should prepare for that day. So before entering the battlefield alone should have enough practice. Our Prime Prelims Test series which shall enrich you to acquaint yourself with the pattern of CSE-2020, assess your abilities, rectify your mistakes and make you confident to appear on the examination day.

    Our Prime Prelims Test Series follows the same approach as that adopted by UPSC. Our team of experts is quite enriched with the UPSC pattern and focal point of the questions and hence creates more chances for the aspirants to crack civil service examination by appearing our Test Series.

    The key philosophy of our prelims TS is Evidence-based question making: The 3600 questions you face in our mocks have their relevance established in UPSC’s trend analysis. We focus on themes that are important as per UPSC so that we maximize your chances of questions overlap with the actual UPSC Prelims.

    Noone but only you can assess how it will help you in being the top percentile of aspirants. You have to practice ruthlessly and civils Daily provides you with a platform to hone your skills.

  • [Prelims Spotlight] Important Rebellions- Part 1

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    27 March 2020

    Important Rebellions- Part 1

    Causes of the rebellions

    • After seizing the power and starting their rule the British caused dislocation in ways Indian were used to. The areas in which the change was felt the most were viz. economy, administration and land revenue system.
    • The British rule which adversely affected the interests of all sections of society had intensified the land revenue. The only interest of the company was the realization of maximum revenue with minimum effort. Consequently, settlements were hurriedly undertaken, often without any regard for the resources of the land.
    • Traditional landed aristocracy suffered no less. Their estates were confiscated and they suddenly found themselves without a source of income, unable to work, ashamed to beg, condemned to penury.
    • British rule also meant misery to artisans and handicraftsmen. The annexation of Indian states by the Company cut off their major source of patronage. Also, the British policy discouraged Indian handicraft and promoted British goods.
    • The new courts and legal system gave a further fillip to the dispossessors of land and encouraged the rich to oppress the poor. Flogging, torture and jailing of the cultivators for arrears of rent or land revenue or interest on debt were quite common. The ordinary people were also hard hit by the prevalence of corruption at the lower levels of the police, judiciary and general administration.

    Sanyasi Uprising, Bengal- (1770-1820s)

    • At least three separate events are called the Sannyasi Rebellion. One refers to a large body of Hindu sannyasis who travelled from North India to different parts of Bengal to visit shrines. En route to the shrines, it was customary for many of these ascetics to exact a religious tax from the headmen and zamindars or regional landlords
    • However, since the East India Company had received the Diwani or right to collect the tax, many of the tax demands increased and the local landlords and headmen were unable to pay both the ascetics and the English.
    • The other two movements involved a sect of Hindu ascetics, the Dasnami naga sannyasis who likewise visited Bengal on pilgrimage mixed with moneylending opportunities.
    • To the British, these ascetics were looters and must be stopped from collecting money that belonged to the Company and possibly from even entering the province. It was felt that a large body of people on the move was a possible threat.
    • The sanyasis retaliated by organising raids on the Company’s factories and state treasuries. Only after prolonged military action could Warren Hastings contain the raids by the sanyasis.

    Chuar uprising

    • Towards the end of the 18th century, certain portions of the district around Raipur was affected by the Chuar rebellion.
    • The leader of the rebels was Durjan Singha, a former zamindar of Raipur. He had a following of about 1,500 men and created havoc in certain areas.
    • The uprising lasted from 1766 to 1772 and then, again surfaced between 1795 and 1816.

    Moplah Rebellions, Malabar (1835-1921)

    • The Moplah rebellions of Malabar, South India, were not only directed against British but also the Hindu Landlords.
    • The relations of the Arabs traders with the Malayali society can be traced back to the ninth century. The traders helped the local Hindu chieftains and were granted concessions.
    • Many of the Arab traders settled in Malabar marrying mostly Nayar and Tiyar women, and the subsequent descendants came to be known as Moplahs.
    • In the traditional Malabar land system, the Jenmi held land by birthright and were mostly highcaste Hindus, and let it out to others for cultivation.
    • The other main sections of the Malabar society were the Kanamdar, who were mostly Moplahs, the verumpattamdar (cultivators) and agricultural labourers. The peasants were mostly the Muslim Moplahs.
    • The land was given by the ruling raja to Namboodiri Brahmins whose obligation was to look after the temple and related institutions, and to the chieftains (mostly Nayars), who provided martial aid when needed.
    • Traditionally, the net produce of the land was shared equally between the three.
    • But during the reign of Haider Ali and Tipu Sultan, Namboodiri Brahmins and Nayar Chiefs fled and the subsequent vacuum was filled by the Moplahs.
    • The conflict arose when after Malabar’s cession to the British in 1792 and the return of the exiled Namboodiri Brahmins and Nayars, the government re-established and acknowledged their landlord rights.
    • The British by recognizing the Jenmis as the absolute owners of the land gave them the right to evict the tenants at will.
    • This reduced the other two to the status of tenants and leaseholders.
    • The courts and the law officers sided with the Jenmis. Once the Jenmi landlords, who had the backing of the revenue officials, the law court and the police started tightening their hold and demands on the subordinate classes, the Moplah peasantry rose up in revolt.
    • The first outbreak occurred in 1836 and during the period of 1834-54, there were 22 uprisings, with the ones in 1841 and 1849 being quite serious.
    • The second phase of the revolt was recorded in 1882-85, while another spate of outburst in 1876 was also there.

    Poligar Rebellions, Kurnool (1799-1805)

    • The Poligars of Dindigal and Malabar rose up against the oppressive land revenue system under the British during 1801-06.
    • The sporadic rising of the Poligars in Madras Presidency continued till 1856.
    • In September 1799, in the first Polygar War, the poligars of Tirunelveli District rose up in open rebellion.
    • Kattabomma Nayak of Panchalamkurichi was considered as the main leader of the rebellion. Though he managed to escape initially, he was later captured in Pudukottai, and publicly hanged in front of other Polygars as a warning.
    • The Second Polygar war of 1800-01, given the magnitude of participation, is also known as the “South Indian Rebellion”.
    • The rebellion broke out when a band of Polygar armies bombed the British barracks in Coimbatore.
    • The suppression was followed by signing of the Carnatic Treaty on July 31, 1801, whereby the British assumed direct control over Tamil Nadu.
    • The Polygar system, which had flourished for two and half centuries, came to a violent end and the company introduced the Zamindari settlement in its place.

    Ramosi Risings (1822, 1825-26)

    • The Ramosis, the hill tribes of the Western Ghats, had not reconciled to British rule and the British pattern of administration.
    • They rose under Chittur Singh in 1822 and plundered the country around Satara. Again, there were eruptions in 1825-26 and the disturbances continued till 1829.
    • The disturbance occurred again in 1839 over deposition and banishment of Raja Pratap Singh of Satara, and disturbances erupted in 1840-41 also. Finally, a superior British force restored order in the area.

    Kolhapur and Savantvadi Revolts (1844)

    • The Gadkaris were a hereditary military class which was garrisoned in the Maratha forts.
    • These garrisons were disbanded during an administrative reorganisation in Kolhapur state after 1844. Facing the spectre of unemployment, the Gadkaris rose in revolt and occupied the Samangarh and Bhudargarh forts.
    • Similarly, the simmering discontent caused a revolt in Savantvadi areas.
    • A number of Sawantwadi rebels were tried for treason and sentenced to various terms of imprisonment.
    • Ultimately, after the imposition of martial law and meting out brutal punishment to the rebels, the order could be restored in Sawantwadi region.

    Santhal Rebellion

    • The Santhals of Rajmahal Hills resented the oppression by revenue officials, police, money-lenders, landlords—in general, by the “outsiders’ (whom they called diku).
    • The Santhals under Sido and Kanhu rose up against their oppressors, declared the end of the Company’s rule and asserted themselves independent in 1854.
    • It was only in 1856 after extensive military operations that the situation was brought under control. Sido died in 1855, while Kanhu was arrested in 1866.
    • A separate district of Santhal Parganas was created by the Government to pacify the Santhals.

    Khond Uprising

    • The Khonds lived in vast hill tracts stretching from Tamil-nadu to Bengal, covering central provinces, and in virtual independence due to the inaccessible mountainous terrain.
    • Their uprisings from 1837 to 1856 were directed against the British, in which the tribals of Ghumsar, china-ki-medi, Kalahandi and Patna actively participated.
    • The movement was led by Chakra Bisoi in the name of the young Raja.
    • The main issue was the attempt by the government to suppress human sacrifice (Mariah), the introduction of new taxes by the British and the influx of Zamindars and sahookars (money-lenders) into their areas which was causing the tribals untold misery.
    • The British formed a Maria agency, against which the Khonds fought with Tangi, a king of battle-axe, bows-arrows and even swords.
    • Latter Savaras and some local militia clans also joined in, led by Radha Krishna Dand Sena. Chakra Bisoi disappeared in 1855 after which the movement petered out.

    Early Munda Uprising (1789-1832)

    • In the period of 1789-1832, the Munda rose up in rebellion seven times against the landlords, dikhus, money-lenders and the British, who instead of protesting them sided with the oppressors.
    • In the post-1857 period with a hope of a better future, many Mundas turned to the Evangelical Lutheran mission, which was overseeing mission work in Chhotanagpur.
    • However, many apostates became more militant and broke away, spearheading the cause of seeking redressal of their grievances once they realized that the missionaries could not provide the solution to them.
    • Their movement identified as ‘sardariladai’ or ‘war of the leaders’ was fought with the aim of expelling dikhus; and restoration of the Munda domination over their homeland.
    • The tribal chiefs rose up against the erosion of Khuntkatti System or Joint tenures.
    • While it failed it did not peter out but remained dormant and in need of a charismatic leader. It was given a new life by Birsa Munda in 1899.

    Bhils and Kolis Uprisings:

    • The Bhils were concentrated in the hill ranges of Khandesh in the previous Maratha territory. The British occupation of this region in 1818 brought in the outsiders and accompanying dislocations in their community life.
    • A general Bhil insurrection in 1817-19 was crushed by the British Military forces and though some conciliatory measures were taken to pacify them, they again revolted under the leadership of Seva Ram in 1825 and the situation remained unsettled until 1831 when the Ramosi Leader Umaji Raje of Purandhar was finally captured and executed.
    • Minor revolts again took place in 1836 and 1846 as well.
    • The Bhils’ local rivals for power, the Kolis of Ahmednagar district, also challenged the British in 1829 but were quickly subdued by a large army contingent.
    • The seeds of rebellion, however, persisted, to erupt again in 1844-46, when a local Koli leader successfully defied the British government for two years.

     

  • [Prelims Spotlight] Important reports and Indices ( Part 1 )

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    26 March 2020

    1.Economics

    Global Economy

    1.Report name – Asian Development Outlook

    Issuing agency – Asian Development Bank

     

    2.Report name – World Economic Outlook

    Issuing agency – International Monetary Fund

     

    3.Report name – Global Economic Prospects

    Issuing agency – World Bank

     

     2.Development

    1.Report name – World Development Report

    Issuing agency – IBRD (World Bank)

     

     2.Report name – Ease of Doing Business

    Issuing agency – IBRD (World Bank)

    Latest in news –India climbed 14 places in the World Bank’s Ease of Doing Business 2020 survey to stand at 63, among 190 countries, making it one of world’s top 10 most improved countries for the third consecutive time.

    To read in detail about the Ease of Business ranking, click here.

     

    3.Report name – Industrial Development Report

    Issuing agency – UNIDO (United Nations Industrial Development Organization)

     

    4.Report name – World Investment Report

    Issuing agency – UNCTAD (United Nations Conference on Trade and Development)

     

    5.Report name – Travel and Tourism Competitiveness Report

    Issuing agency – WEF (World Economic Forum)

     

     6.Report Name – World Cities Report

    Issuing Agency – UN-Habitat

     

    7.Index name – Logistics Performance Index

    Issuing agency – World Bank

     

    3.Global Financial System

    1.Report name – Global Financial Stability Report

    Issuing agency – International Monetary Fund

     

    2.Report name – Global Financial System Report

    Issuing agency – BIS (Bank for International Settlements)

     

    3.Report name – Global Money Laundering Report

    Issuing agency – FATF (Financial Action Task Force)

    2. Environment

    1.Report name – India State of Forest Report

    Issuing agency – Forest Survey of India

    Latest in news –  Click here to read more.

     

    2.Report name – Actions on Air Quality

    Issuing agency – UNEP (United Nations Environment Programme)

     

    3.Report name – Global Environment Outlook

    Issuing agency – UNEP (United Nations Environment Programme)

     

     4.Report name – The Rise of Environmental Crime

    Issuing agency – UNEP & INTERPOL

     

    5.Report name – Global Assessment Report

    Issuing agency – UNISDR (United Nations Office for Disaster Risk Reduction)

     

    6.Report name – The Living Planet Report

    Issuing agency – WWF (World Wildlife Fund)

    Latest in News – With wildlife disappearing at an “unprecedented” pace across the world, the Living Planet Report identifies India as an ecological black spot where around half of the wildlife lives in the danger of being wiped out. The report highlights the pressure on water and lands India faces because of unsustainable human activities. Around 70% of surface water is polluted and 60% of groundwater will reach a critical stage — where it cannot be replenished — in the next decade,

  • [Prelims Spotlight] Environment related Government bodies in India, Important Declarations,

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    25 March 2020

    Government Bodies Related To Environment

    Central Pollution Control Board

    Established: It was established in 1974 under the Water (Prevention and Control of Pollution) Act, 1974.

    Objective: To provide technical services to the Ministry of Environment and Forests under the provisions of the Environment (Protection) Act, 1986.

    Key Functions:

    • Advise the Central Government on any matter concerning prevention and control of water and air pollution and improvement of the quality of air.
    • Plan and cause to be executed a nation-wide programme for the prevention, control or abatement of water and air pollution
    • Coordinate the activities of the State Board and resolve disputes among them
    • Provide technical assistance and guidance to the State Boards, carry out and sponsor investigation and research relating to problems of water and air pollution, and for their prevention, control or abatement
    • Plan and organise training of persons engaged in the programme on the prevention, control or abatement of water and air pollution
    • Organise through mass media, a comprehensive mass awareness programme on the prevention, control or abatement of water and air pollution
    • Collect, compile and publish technical and statistical data relating to water and air pollution and the measures devised for their effective prevention, control or abatement;
    • Prepare manuals, codes and guidelines relating to treatment and disposal of sewage and trade effluents as well as for stack gas cleaning devices, stacks and ducts;
    • Disseminate information in respect of matters relating to water and air pollution and their prevention and control
    • Lay down, modify or annul, in consultation with the State Governments concerned, the standards for stream or well, and lay down standards for the quality of air.
    • Perform such other functions as may be prescribed by the Government of India.

     

    National Biodiversity Authority

    Established When: It is a statutory autonomous body under the Ministry of Environment and Forests, Government of India established in 2003, after India signed Convention on Biological Diversity (CBD) in 1992

    Headquarter: Chennai

    The objective of the body: Implementation of Biological Diversity Act, 2002

    Key Functions:

    It acts as a facilitating, regulating and advisory body to the Government of India “on issues of conservation, sustainable use of biological resources and fair and equitable sharing of benefits arising out of the use of biological resources.”

    Additionally, it advises State Governments in identifying the areas of biodiversity importance (biodiversity hotspots) as heritage sites.

     

    National Tiger conservation authority

    Established: It was established in December 2005 following a recommendation of the Tiger Task Force, constituted by the Prime Minister of India for reorganised management of Project Tiger and the many Tiger Reserves in India.

    Headquarter: Delhi

    Objective:

    • Providing statutory authority to Project Tiger so that compliance of its directives become legal.
    • Fostering accountability of Center-State in management of Tiger Reserves, by providing a basis for MoU with States within our federal structure.
    • Providing for oversight by Parliament.
    • Addressing livelihood interests of local people in areas surrounding Tiger Reserves.

    Key Functions:

    • to approve the tiger conservation plan prepared by the State Government under sub-section (3) of section 38V of this Act
    • evaluate and assess various aspects of sustainable ecology and disallow any ecologically unsustainable land use such as mining, industry and other projects within the tiger reserves;
    • provide for management focus and measures for addressing conflicts of  men and wild animal and to emphasize on co-existence in forest areas outside the National Parks, sanctuaries or tiger reserve, in the working plan code
    • provide information on protection measures including future conservation plan, estimation of population of tiger and its natural prey species, the status of habitats, disease surveillance, mortality survey, patrolling, reports on untoward happenings and such other management aspects as it may deem fit including future plan conservation
    • ensure critical support including scientific, information technology and legal support for better implementation of the tiger conservation plan
    • facilitate ongoing capacity building programme for skill development of officers and staff of tiger reserves.

     

    Animal Welfare Board of India

    Established When: It was established in 1962 under Section 4 of The Prevention of Cruelty to Animals Act,1960.

    Headquarter: Ballabhgarh

    Objective: To advise Government on Animal Welfare Laws and promotes animal welfare in the country.

    Key Functions:

    • Recognition of Animal Welfare Organisations: The Board oversees Animal Welfare Organisations (AWOs) by granting recognition to them if they meet its guidelines. The organisation must submit paperwork; agree to nominate a representative of the Animal Welfare Board of India on its Executive Committee, and to submit to regular inspections. After meeting the requirements and inspection, the organisation is considered for grant of recognition.
    • The AWBI also appoints key people to the positions of (Hon) Animal Welfare Officers, who serve as the key point of contact between the people, the government and law enforcement agencies.
    • Financial assistance: The Board provides financial assistance to recognised Animal Welfare Organisations (AWOs), who submit applications to the Board. Categories of grants include Regular Grant, Cattle Rescue Grant, Provision of Shelter House for looking after the Animals, Animal Birth Control (ABC) Programme, Provision of Ambulance for the animals in distress and Natural Calamity grant.
    • Animal welfare laws and Rules: The Board suggests changes to laws and rules about animal welfare issues. In 2011, a new draft Animal Welfare Act was published for comment. Guidance is also offered to organisations and officials such as the police to help them interpret and apply the laws.
    • Raising awareness: The Board issues publications to raise awareness of various animal welfare issues. The Board’s Education Team gives talks on animal welfare subjects, and trains members of the community to be Board Certified Animal Welfare Educators.

     

    Forest Survey of India

    Established When:  It is a government organization in India under the Union Ministry of Environment, Forest and Climate Change for conducting forest surveys and studies. The organization came into being in, 1981.

    Headquarter: Dehradun, Uttarakhand

    Objective

    The objective of the organization is monitoring periodically the changing situation of land and forest resources and present the data for national planning; conservation and management of environmental preservation and implementation of social forestry projects.

    Key Functions

    • The Functions of the Forest Survey of India are:
    • To prepare State of Forest Report biennially, providing an assessment of the latest forest cover in the country and monitoring changes in these.
    • To conduct an inventory in forest and non-forest areas and develop a database on forest tree resources.
    • To prepare thematic maps on 1:50,000 scale, using aerial photographs.
    • To function as a nodal agency for collection, compilation, storage and dissemination of spatial database on forest resources.
    • To conduct training of forestry personnel in the application of technologies related to resources survey, remote sensing, GIS, etc.
    • To strengthen research & development infrastructure in FSI and to conduct research on applied forest survey techniques.
    • To support State/UT Forest Departments (SFD) in forest resources survey, mapping and inventory.
    • To undertake forestry-related special studies/consultancies and custom made training courses for SFD’s and other organizations on a project basis.

    Forest Survey of India assesses forest cover of the country every 2 years by digital interpretation of remote sensing satellite data and publishes the results in a biennial report called ‘State of Forest Report'(SFR).

    Central Zoo Authority of India

    Established: It was established in 1992 and constituted under the Wild Life (Protection) Act.

    Headquarter: Delhi

    Objective 

    The main objective of the authority is to complement the national effort in the conservation of wildlife.

    Standards and norms for housing, upkeep, health care and overall management of animals in zoos have been laid down under the Recognition of Zoo Rules, 1992.   

    Key Functions

    • Since its inception in 1992, the Authority has evaluated 513 zoos, out of which 167 have been recognized and 346 refused recognition.
    • The Authority’s role is more of a facilitator than a regulator.  It, therefore, provides technical and financial assistance to such zoos which have the potential to attain the desired standard in animal management. Only such captive facilities which have neither the managerial skills nor the requisite resources are asked to close down.
    • Apart from the primary function of the grant of recognition and release of financial assistance, the Central Zoo Authority also regulates the exchange of animals of the endangered category listed under Schedule-I and II of the Wildlife (Protection Act) among zoos.  
    • Exchange of animals between Indian and foreign zoos is also approved by the Authority before the requisite clearances under EXIM Policy and the CITES permits are issued by the competent authority.  
    • The Authority also coordinates and implements programmes on capacity building of zoo personnel, planned conservation breeding programmes and ex-situ research including biotechnological intervention for the conservation of species for complementing in-situ conservation efforts in the country.

     

     

    Major UN climate negotiations under UNFCCC- Timeline

    1992—

    The UN Framework Convention on Climate Change (UNFCCC) was adopted and opened for signatures in Rio de Janeiro, Brazil, at the UN Conference on Environment and Development, also known as the Earth Summit.

    154 signatories to the UNFCCC agreed to stabilize “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous interference with the climate system.”

    The treaty is not legally binding because it sets no mandatory limits on GHG emissions. Instead, the treaty provides for future negotiations to set emissions limits. The first principal revision is the Kyoto Protocol.

    1994—

    The UNFCCC Treaty entered into force after receiving 50 ratifications.

    1997—

    KYOTO PROTOCOL

    COP 3 was held in Kyoto, Japan. On December 11, the Kyoto Protocol was adopted by consensus with more than 150 signatories.

    The Protocol included legally binding emissions targets for developed country Parties for the six major GHGs, which are-

    • Carbon dioxide.
    • Methane.
    • Nitrous oxide.
    • Hydrofluorocarbons.
    • Perfluorocarbons, and
    • Sulfur hexafluoride.

    Annex of the Kyoto Protocol

    • Annex 1 – Industrialised Countries (mainly OECD) plus economies in transition (mainly former soviet block countries) – They would mandatorily reduce GHGs, base year – 1990
    • Annex 2 – Subset of Annex 1,  Industrialised Countries (mainly OECD), would also provide finances and technology to non annex countries
    • Non annex – not included in annex, all other countries, no binding targets
    • Annex A – gases covered under Kyoto <name those 7 gases>
    • Annex B – Binding targets for each Annex 1 country i.e Japan will reduce emission by X%, Australia by Y% 

    The Protocol offered additional means of meeting targets by way of three market-based mechanisms:

    • Emissions trading.
    • Clean Development Mechanism (CDM).
    • Joint Implementation (JI).

    Under the Protocol, industrialized countries’ actual emissions have to be monitored and precise records have to be kept of the trades carried out.

    India ratified the Kyoto Protocol in 2002.

     

    2000—

    COP 6 part I was held in The Hague, Netherlands. Negotiations faltered, and parties agreed to meet again.

    COP 6part II was held in Bonn, Germany. The consensus was reached on what was called the Bonn Agreements.

    All nations except the United States agreed on the mechanisms for implementation of the Kyoto Protocol.

    The U.S. participated in observatory status only.

    2001—

    COP 7 was held in Marrakesh, Morocco. The detailed rules for the implementation of the Kyoto Protocol were adopted and called the Marrakesh Accords.

    The Special Climate Change Fund (SCCF) was established to “finance projects relating to: adaptation; technology transfer and capacity building; energy transport, industry, agriculture, forestry and waste management; and economic diversification.”

    The Least Developed Countries Fund was also “established to support a work programme to assist Least Developed Country Parties (LDCs) carry out, inter alia [among other things], the preparation and implementation of national adaptation programmes of action (NAPAs).”

    2005—

    COP 11/CMP 1 were held in Montreal, Canada. This conference was the first to take place after the Kyoto Protocol took force. The annual meeting between the parties (COP) was supplemented by the first annual Meeting of the Parties to the Kyoto Protocol (CMP).

    The countries that had ratified the UNFCCC, but not accepted the Kyoto Protocol, had observer status at the latter conference.

    The parties addressed issues such as “capacity building, development and transfer of technologies, the adverse effects of climate change on developing and least developed countries, and several financial and budget-related issues, including guidelines to the Global Environment Facility (GEF).” (UNFCCC)

    2007—

    COP 13/CMP 3 were held in Bali. COP parties agreed to a Bali Action Plan to negotiate GHG mitigation actions after the Kyoto Protocol expires in 2012. The Bali Action Plan did not require binding GHG targets for developing countries.

    2009—

    June – As part of the UN Framework Convention on Climate Change (UNFCCC) process, governments met in Bonn, Germany, to begin discussions on draft negotiations that would form the basis of an agreement at Copenhagen.

    December – COP 15 was held in Copenhagen, Denmark.

    It failed to reach agreement on binding commitments after the Kyoto Protocol commitment period ends in 2012.

    During the summit, leaders from the United States, Brazil, China, Indonesia, India and South Africa agreed to what would be called the Copenhagen Accord which recognized the need to limit the global temperature rise to 2°C based on the science of climate change.

    While no legally binding commitments were required by the deal, countries were asked to pledge voluntary GHG reduction targets. $100 billion was pledged in climate aid to developing countries.

    2012—

    COP 18 was held in Doha, Qatar.

    Parties agreed to extend the expiring Kyoto Protocol, creating a second commitment phase that would begin on January 1, 2013 and end December 31, 2020. India ratified the second commitment period in 2017.

    Parties failed to set a pathway to provide $100 billion per year by 2020 for developing countries to finance climate change adaptation, as agreed upon at COP 15 in Copenhagen.

    The concept of “loss and damage” was introduced as developed countries pledged to help developing countries and small island nations pay for the losses and damages from climate change that they are already experiencing.

    2013—

    COP 19 was held in Warsaw, Poland.

    Parties were expected to create a roadmap for the 2015 COP in Paris where a legally binding treaty to reduce greenhouse gas (GHG) emissions is expected to be finalized (in order to come into effect in 2020).

    Differences of opinion on responsibility of GHG emissions between developing and developed countries led to a flexible ruling on the wording and a plan to discuss further at the COP 20 in Peru.

    A non-binding agreement was reached among countries to set up a system tackling the “loss and damage” issue, although details of how to set up the mechanism were not discussed.

    Concerning climate finance, the United Nations’ Reducing Emissions from Deforestation and Forest Degradation (REDD+) Program, aimed at preserving the world’s forests, was formally adopted.

    Little progress was made on developed countries committing to the agreed upon plan of providing $100 billion per year by 2020 to developing countries.

     

    2015—

    PARIS AGREEMENT

    COP 21 or CMP 11 was held in Paris.

    Aims of the Paris Agreement-

    1.Keep the global temperature rise this century well below 2 degrees Celsius above the pre-industrial level.

    2.Pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.

    3.Strengthen the ability of countries to deal with the impacts of climate change.

    Nationally Determined Contributions (NDC)

    • The national pledges by countries to cut emissions are voluntary.
    • The Paris Agreement requires all Parties to put forward their best efforts through “nationally determined contributions” (NDCs) and to strengthen these efforts in the years ahead.
    • This includes requirements that all Parties report regularly on their emissions and on their implementation efforts.
    • In 2018, Parties will take stock of the collective efforts in relation to progress towards the goal set in the Paris Agreement.
    • There will also be a global stock take every 5 years to assess the collective progress towards achieving the purpose of the Agreement and to inform further individual actions by Parties.

    Some facts-

    • It entered into force in November 2016 after (ratification by 55 countries that account for at least 55% of global emissions) had been met.
    • The agreement calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century.
    • In the adopted version of the Paris Agreement, the parties will also “pursue efforts to limit the temperature increase to 1.5 °C.”
    • The 1.5 °C goal will require zero-emissions sometime between 2030 and 2050, according to some scientists.
    • The developed countries reaffirmed the commitment to mobilize $100 billion a year in climate finance by 2020 and agreed to continue mobilizing finance at the level of $100 billion a year until 2025.
    • In 2017, United States announced that the U.S. would cease all participation in the 2015 Paris Agreement on climate change mitigation.
    • In accordance with Article 28 of the Paris Agreement, the earliest possible effective withdrawal date by the United States cannot be before November 2020. Thus, The U.S. will remain a signatory till November 2020.
  • [Prelims Spotlight] Important Keywords Regarding Budget, Fiscal Policy and Taxation

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.


    24 March 2020

    Important keywords regarding budget, fiscal policy and taxation

     

    Annual financial statement:

    The Union Budget is the annual financial statement that contains the government’s revenue and expenditure for a fiscal year.

    It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.

    The statement details the revenues from all sources, and expenditure on all activities that the government will undertake for the fiscal year. The fiscal year is calculated from 1 April-31 March.

    Under Article 112 of the Constitution, the government has to present a statement of estimated revenue and expenditure for every fiscal. This statement is called the annual financial statement. This document is divided into three sections: For each of these funds, the central government is required to present a statement of revenue and expenditure.

    1. Consolidated Fund:

    The Consolidated Fund of India, created under Article 266 of the Indian Constitution, includes the revenues received by the government and expenses made by it.

    All the revenue that the government receives through direct (income tax, corporation tax etc.) or indirect tax (Goods and Services Tax or GST) go into the Consolidated Fund of India.

    Revenue from non-tax sources like dividends, profits from the PSUs, and income from general services also contribute to the fund. Recoveries of loans, earnings from disinvestment and repayment of debts issued by the Centre also contribute to the fund.

    However, no money can be withdrawn for meeting expenses until the government gets the approval of the Parliament. Examples of expenditure include wages, salaries and pension of government employees, and other fixed costs. The repayment of debts incurred by the government is also done through the Consolidated Fund of India.

    The Consolidated Fund of India is divided into five parts:

    • Revenue account – receipts,
    • Revenue account – disbursements,
    • Capital account – receipts,
    • Capital account – disbursements, and
    • Disbursements ‘charged’ on the Consolidated Fund of India.

    Disbursements ‘charged’ on the Consolidated Fund of India is a special category within the Consolidated Fund of India which is not put to vote in the Parliament.

    This means whatever comes under this category need to be paid, whether the Budget is passed or not.

    The salary and allowances of the President, speaker and deputy speaker of the Lok Sabha, chairman and deputy chairman of the Rajya Sabha, salaries and allowances of Supreme Court judges, pensions of Supreme Court and High Court judges come under this category.

    2.Contingency fund:

    Like the Consolidated Fund of India, the Contingency Fund of India constitutes a part of the annual financial statement.

    Established under Article 267(1) of the Indian Constitution, the fund is maintained by the ministry of finance on behalf of the President of India.

    As the name suggests, the Contingency Fund of India is an account maintained for meeting expenses during any unforeseen emergencies.

    Parliamentary approval for such unforeseen expenditure is obtained, ex- post-facto, and an equivalent amount is drawn from the Consolidated Fund of India to recoup the Contingency Fund after such ex-post-facto approval.

    3. Public account.

    Article 266 of the Constitution defines the Public Account as being those funds that are received on behalf of the Government of India.

    Money held by the government in a trust — such as in the case of Provident Funds, Small Savings collections, income of government set apart for expenditure on specific objects like road development, primary education, reserve/special Funds, etc — are kept in the Public Account.

    Public Account funds do not belong to the government and have to be finally paid back to the persons and authorities that deposited them.

    Parliamentary authorisation for such payments is not required.

    However, when money is withdrawn from the Consolidated Fund with the approval of Parliament and kept in the Public Account for expenditure for a specific purpose, it is submitted for a vote in Parliament.

    Appropriation bill

    Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during the course of a financial year.

    As per Article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.

    To put it simply, the Finance Bill contains provisions on financing the expenditure of the government, and Appropriation Bill specifies the quantum and purpose for withdrawing money.

    Vote-on-account

    The Constitution says that no money can be withdrawn by the government from the Consolidated Fund of India except under appropriation made by law.

    For that, an appropriation bill is passed during the Budget process.

    However, the appropriation bill may take time to pass through the Parliament and become a law. Meanwhile, the government would need permission to spend even a single penny from April 1 when the new financial year starts.

    Vote on the account is the permission to withdraw money from the Consolidated Fund of India in that period, usually two months.

    Vote on the account is a formality and requires no debate. When elections are scheduled a few months into the new financial year, the government seeks vote on account for four months. Essentially, vote on account is the interim permission of the parliament to the government to spend money.

    Corporation tax:

    Corporation tax is a direct tax imposed on the net income or profit that enterprises make from their businesses. Companies, both public and privately registered in India under the Companies Act 1956, are liable to pay corporation tax. This tax is levied at a specific rate according to the provisions of the Income Tax Act, 1961.

    Fringe benefits tax (FBT):
    The taxation of perquisites – or fringe benefits – provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefits tax. It was introduced in Budget 2005-06. The government felt many companies were disguising perquisites such as club facilities as ordinary business expenses, which escaped taxation altogether. Employers have to now pay FBT on a percentage of the expense incurred on such perquisites.

    Direct Tax:

    A direct tax is paid directly by an individual or organization to the imposing entity. A taxpayer, for example, pays direct taxes to the government for different purposes, including real property tax, personal property tax, income tax, or taxes on assets. Direct taxes are based on the ability-to-pay principle. This economic principle states that those who have more resources or earn a higher income should pay more taxes.

    Indirect Tax
    In the case of indirect taxes, the incidence of tax is usually not on the person who pays the tax. These are largely taxes on expenditure and include Customs, excise and service tax.

    Indirect taxes are considered regressive, the burden on the rich and the poor is alike. That is why governments strive to raise a higher proportion of taxes through direct taxes. Moving on, we come to the next important receipt item in the revenue account, non-tax revenue.

    Non-tax revenue:

    Other than taxation being a primary source of income, the government also earns a recurring income, which is called non-tax revenue. While sources of tax revenue are few, the sources of non-tax revenue are many, with the number of collections per source. Although there are many sources of non-tax revenue, the amount per source is much less than that for tax revenue.

    For example, when citizens use services offered by the government, they pay bills, which are categorised as non-tax revenue, as the government provides infrastructure support to implement the services. Non-tax revenue also includes the interest collected by the government on the loans or funds offered to states.

    Grants-in-aid and contributions
    The third receipt item in the revenue account is relatively small grants-in-aid and contributions. These are in the nature of pure transfers to the government without any repayment obligation.
    These include expense incurred on organs of state such as Parliament, judiciary and elections. A substantial amount goes into administering fiscal services such as tax collection. The biggest item is the interest payment on loans taken by the government. Defence and other services like police also get a sizeable share. Having looked at receipts and expenditure on revenue account we come to an important item, the difference between the two, the revenue deficit.

    Revenue deficit:

    Revenue deficit arises when the government’s revenue expenditure exceeds the total revenue receipts.

    Revenue deficit includes those transactions that have a direct impact on a government’s current income and expenditure. This represents that the government’s own earnings are not sufficient to meet the day-to-day operations of its departments. Revenue deficit turns into borrowings when the government spends more than what it earns and has to resort to the external borrowings.

                   Revenue Deficit= Total revenue receipts – Total revenue expenditure.

    Revenue Deficit deals only with the government’s revenue receipts and revenue expenditures.

    Note that revenue receipts are receipts which neither create liability nor lead to a reduction in assets.

    It is further divided into two heads:

    • Receipt from Tax (Direct Tax,  Indirect Tax)
    • Receipts from Non-Tax Revenue

    Revenue Expenditure is referred to as the expenditure that does not result in the creation of assets reduction of liabilities. It is further divided into two types

    • Plan revenue expenditure
    • Non-plan revenue expenditure

    Fiscal Deficit:
    The fiscal deficit is defined as an excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. In simple words, it is the amount of borrowing the government has to resort to meet its expenses. A large deficit means a large amount of borrowing. The fiscal deficit is a measure of how much the government needs to borrow from the market to meet its expenditure when its resources are inadequate.

    Primary deficit:

    Primary deficit is defined as a fiscal deficit of current year minus interest payments on previous borrowings.

             Primary deficit= Fiscal deficit – Interest payment on the previous borrowing

    In other words, whereas fiscal deficit indicates borrowing requirement inclusive of interest payment, the primary deficit indicates borrowing requirement exclusive of interest payment (i.e., amount of loan).

    We have seen that borrowing requirement of the government includes not only accumulated debt, but also interest payment on the debt. If we deduct ‘interest payment on debt’ from borrowing, the balance is called the primary deficit.

    Public debt:

    Public debt receipts and public debt disbursals are borrowings and repayments during the year, respectively. The difference is the net accretion to the public debt. Public debt can be split into internal (money borrowed within the country) and external (funds borrowed from non-Indian sources). Internal debt comprises treasury bills, market stabilisation schemes, ways and means advance, and securities against small savings.

    Ways and means advance (WMA):

    One of RBI’s roles is to serve as banker to both central and state governments. In this capacity, RBI provides temporary support to tide over mismatches in their receipts and payments in the form of ways and means advances.

    CESS:
    This is an additional levy on the basic tax liability. Governments resort to cess for meeting specific expenditure.

    Dividend distribution tax:

    A dividend is a return given by a company to its shareholders out of the profits earned by the company in a particular year. Dividend constitutes income in the hands of the shareholders which ideally should be subject to income tax.

    However, the income tax laws in India provided for an exemption of the dividend income received from Indian companies by the investors by levying a tax called the Dividend Distribution Tax (DDT) on the company paying the dividend. This tax has been abolished in the 2020-21 budget.

    FRBM Act 2003:

    The Fiscal Responsibility and Budget Management Act (FRBM Act), 2003, establishes financial discipline to reduce the fiscal deficit.

    What are the objectives of the FRBM Act?

    The FRBM Act aims to introduce transparency in India’s fiscal management systems. The Act’s long-term objective is for India to achieve fiscal stability and to give the Reserve Bank of India (RBI) flexibility to deal with inflation in India. The FRBM Act was enacted to introduce a more equitable distribution of India’s debt over the years.

    Key features of the FRBM Act

    The FRBM Act made it mandatory for the government to place the following along with the Union Budget documents in Parliament annually:

    1. Medium Term Fiscal Policy Statement

    2. Macroeconomic Framework Statement

    3. Fiscal Policy Strategy Statement

    The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue and the total outstanding liabilities be projected as a percentage of gross domestic product (GDP) in the medium-term fiscal policy statement.