National Current Affairs – UPSC/KAS Exams- 1st December 2018

Fiscal deficit exceeds full-year target in just seven months

Topic: Indian Economy

IN NEWS: India’s fiscal deficit in the first seven months of the financial year, at ₹6.49 lakh crore, exceeded the budgeted target for the entire year, coming in at 103.9% of that target.

More on the Topic:

• India Ratings expects the fiscal deficit for the year to be 3.5% of GDP, higher than the government’s target of 3.3%. The government, however, has repeatedly expressed its commitment to meeting its target.

FRBM Act 2003:

• The FRBM Act 2003 in its amended form was passed by the government to bring fiscal discipline and to implement a prudent fiscal policy. High fiscal deficit was the one major macroeconomic problem faced by Indian economy around 2000.
• It was argued that high deficits lead to inflation, reduces consumption, result in a crowding out of the private sector investment, rising unemployment and falling living standards of the people. Thus arose a need to institutionalize a new fiscal discipline framework.

Highlights of the Act:

• The Government notified FRBM rules in July 2004 to specify the annual reduction targets for fiscal indicators. The FRBM rule specifies reduction of fiscal deficit to 3% of the GDP by 2008-09 with annual reduction target of 0.3% of GDP per year by the Central government.
• Similarly, revenue deficit has to be reduced by 0.5% of the GDP per year with complete elimination to be achieved by 2008-09. It is the responsibility of the government to adhere to these targets. The Finance Minister has to explain the reasons and suggest corrective actions to be taken, in case of breach.
• FRBM Act provides a legal institutional framework for fiscal consolidation. It is now mandatory for the Central government to take measures to reduce fiscal deficit, to eliminate revenue deficit and to generate revenue surplus in the subsequent years.
• The Act binds not only the present government but also the future Government to adhere to the path of fiscal consolidation. The Government can move away from the path of fiscal consolidation only in case of natural calamity, national security and other exceptional grounds which Central Government may specify.
• Further, the Act prohibits borrowing by the government from the Reserve Bank of India, thereby, making monetary policy independent of fiscal policy. The Act bans the purchase of primary issues of the Central Government securities by the RBI after 2006, preventing monetization of government deficit.
• The Act also requires the government to lay before the parliament three policy statements in each financial year namely Medium Term Fiscal Policy Statement; Fiscal Policy Strategy Statement and Macroeconomic Framework Policy Statement.
• To impart fiscal discipline at the state level, the Twelfth Finance Commission gave incentives to states through conditional debt restructuring and interest rate relief for introducing Fiscal Responsibility Legislations (FRLs). All the states have implemented their own FRLs.
• Through Finance Act 2012, amendments were made to the Fiscal Responsibility and Budget Management Act, 2003.
• As per the amendments in 2012, the Central Government has to take appropriate measures to reduce the fiscal deficit, revenue deficit and effective revenue deficit to eliminate the effective revenue deficit by the 31st March, 2015 and thereafter build up adequate effective revenue surplus and also to reach revenue deficit of not more than 2 % of Gross Domestic Product by the 31st March, 2015 and thereafter as may be prescribed by rules made by the Central Government.

Source:The Hindu

Ancient whale a piece in evolutionary puzzle

Topic: Environment and Ecology

IN NEWS: According to new study, A prehistoric 15-foot-long whale that sucked prey into its mouth represents a key missing puzzle piece concerning the evolution of today’s huge filter-feeding whales.

More on the Topic:

• The researchers described fossils unearthed in Oregon of a whale named Maiabalaena nesbittae that lived 33 million years ago and possessed neither teeth nor baleen, the material that modern filter-feeding whales use to strain large amounts of tiny prey out of the water for food.
• They called Maiabalaena, meaning “mother whale,” a surprising intermediate evolutionary stage between modern baleen whales and their toothed ancestors. Maiabalaena consumed fish and squid by sucking them into its mouth.
• The evolutionary steps that led to modern baleen filter-feeding giants like the blue whale, the earth’s largest-known animal, had remained unclear.Baleen is a flexible material made of keratin, the same stuff found in hair and fingernails.
• One leading hypothesis had been that in the early stages of baleen whales’ evolution, they possessed both teeth and baleen before becoming toothless. Maiabalaena’s position on the whale family tree, the researchers said, indicates that tooth loss preceded baleens by millions of years.
• This fossil demonstrates that the loss of teeth and the origin of baleen are separate evolutionary changes, and that the two changes did not overlap.

Source:The Hindu

2nd International Ambedkar Conclave

Topic: Polity and Governance

In news: The President of India, Shri Ram Nath Kovind, inaugurated the 2nd International Ambedkar Conclave.

More on the Topic:

• The Conclave is being organised by the Forum of SC and ST Legislators and Parliamentarians and the Dr Ambedkar Chamber of Commerce.

About Dr.B.R Ambedkar:

• Bhimrao Ramji Ambedkar (14 April 1891 – 6 December 1956), popularly known as Babasaheb Ambedkar, was an Indian jurist, economist, politician and social reformer who inspired the Dalit Buddhist movement and campaigned against social discrimination towards the untouchables (Dalits), while also supporting the rights of women and labour.
• He was independent India’s first law and justice minister, the principal architect of the Constitution of India, and a founding father of the Republic of India.

Source: The Hindu

CII Agro Tech India – 2018

Topic: Indian Economy

In news: President of India inaugurated the 13th edition of CII Agro Tech India – 2018.

More on the Topic

• The 13th edition of the CII Agro Tech India-2018 – the biennial agro technology and business fair started in Chandigarh. A total of 195 exhibitors, which includes 37 foreign exhibitors from 8 countries, will participate in the fair.
• Countries like China, USA, UK, Canada, Germany, Italy, Netherlands and Spain are taking part in the fair.
• The UK is partner country at the CII Agro Tech 2018.
• Domestic Partners are Ministry of Food Processing Industries, Agricultural & Processed Food Products Export Development Authority, Ministry of Agriculture & Farmers’ Welfare.

About Agro Tech India

• CII Agro Tech India, since its beginning in 1994 has been CII’s flagship agri expo. Under eminent leadership, every edition of this show has grown exponentially. This exhibition is an ideal interaction platform for the Farm Producers and the Agro Industry.
• By creating linkages for value creation and value addition, the fair offers wide-ranging business opportunities to the technology holders and practical learning to the technology users.

Source: PIB

Kimberley Process

Topic: International Relations

In news: The Kimberley Process Certification Scheme (KPCS) Plenary 2018, was held in Brussels, Belgium.EU handed over the Chairmanship of KPCS to India from 1st January, 2019.

More on the Topic:

• India is the founding member of KPCS and is actively involved in KP activities to ensure that almost 99% of the diamond trade in the world is conflict free.
• India is committed to maintain KP as an efficient and effective process in order to ensure the conflict diamond free status.
• India is at the forefront in addressing the issue of differentiation between Natural Diamonds and Lab Grown Diamonds and ensure responsible business in this area.

About Kimberley Process:

• The Kimberley Process Certification Scheme (KPCS) is the process established in 2000 to prevent “conflict diamonds” from entering the mainstream rough diamond market by United Nations General Assembly Resolution 55/56 following recommendations in the Fowler Report.
• The process was set up “to ensure that diamond purchases were not financing violence by rebel movements and their allies seeking to undermine legitimate governments.

Source: PIB

Gender wage gap highest in India

Topic: Indian Economy

In news:The International Labour Organization (ILO) has released Global Wage Report 2018-19. As per the report, women are paid the most unequally in India, compared to men, when it comes to hourly wages for labour.

 More on the Topic:

• The gender wage gap has remained unchanged at 20% from 2016 to 2017.
• In advanced economies (G20), real wage growth declined from 0.9 per cent in 2016 to 0.4 per cent in 2017, meaning near stagnation. By contrast, in emerging economies and developing G20 countries, real wage growth dipped marginally from 4.9 per cent in 2016 and 4.3 per cent in 2017.
• Inequality is higher in monthly wages, with a gap of 22 per cent. Overall, real wages grew just 1.8 per cent globally (136 countries) in 2017.
• In most countries, women and men differ significantly in respect of working time – specifically, that part-time work is more prevalent among women than among men.

Source: The Hindu