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1991 Reforms & 2021 Crisis

This article is based on “From 1991, the lessons for the India of 2021” which was published in The Hindustan Times on 19/06/2021. It...

21 Jun 2021 Government Budgeting
Increase in World Military Spending during Covid-19: SIPRI

Why in News According to the latest data published by Stockholm International Peace Research Institute (SIPRI), the military spending across the...

27 Apr 2021 Government Budgeting
Supplementary Demand for Grants

Why in News The Lok Sabha has passed supplementary demand for grants for the second batch (2020-2021). Key Points About: It is needed when the...

20 Mar 2021 Government Budgeting
Decline in India’s Arms Imports: SIPRI

Why in News According to a recent report by Stockholm International Peace Research Institute (SIPRI) India’s arms imports came down by a third...

16 Mar 2021 Government Budgeting
Participatory Budget

This article is based on “The citizen’s budget” which was published in The Indian Express on 03/03/2021. It talks about the idea...

03 Mar 2021 Government Budgeting
The Big Picture: Roadmap to Implement Infra Projects

Why in News? The Union Budget 2021-2022 has given the much-needed fillip to the infrastructure sector. The Finance Minister has also...

23 Feb 2021 Government Budgeting
Health and Budget

This article is based upon “Towards Swasth Bharat” which was published in The Hindu Business Line on February 18, 2021. It talks about...

19 Feb 2021 Government Budgeting
Development Financial Institution

This article is based on “Return of DFIs” which was published in The Hindu Businessline on 09/02/2021. It talks about the...

15 Feb 2021 Government Budgeting
Schemes for Reducing Tax Disputes

Why in News Recently, the Finance Secretary has said that the new system of faceless assessment and appeal would help bring down tax disputes...

13 Feb 2021 Government Budgeting
The Big Picture: Budget 2021 for Green Energy

Why in News? The Union Budget for FY 2021-22 presented by the Union Minister of India, has exclusively focussed on Green Energy...

09 Feb 2021 Government Budgeting
Infrastructure Push

This article is based on “Infrastructure push now, fiscal consolidation later” which was published in The Hindu on 08/02/2021. It talks...

08 Feb 2021 Government Budgeting
Fiscal Activism

This article is based on “It’s goodbye to fiscal orthodoxy” which was published in The Hindu on 03/02/2021. It talks about...

03 Feb 2021 Government Budgeting
Budget 2021 Highlights: Minimum Government, Maximum Governance and Fiscal Position

Why in News Recently, the Minister of Finance presented the Union Budget 2021-22. This was the first digital budget. This section deals with the...

03 Feb 2021 Government Budgeting
Budget 2021 Highlights: Inclusive Development for Aspirational India and Reinvigorating Human Capital

Why in News Recently, the Finance Minister presented the Union Budget 2021-22. This was the first digital budget. This section deals with the...

03 Feb 2021 Government Budgeting
Budget 2021 Highlights: Physical and Financial Capital

Why in News Recently, the Minister of Finance presented the Union Budget 2021-22. This was the first digital budget. This section deals with...

03 Feb 2021 Government Budgeting
Budget 2021 Highlights: Infrastructure

Why in News Recently, the Minister of Finance presented the Union Budget 2021-22. This was the first digital budget. This section deals with...

03 Feb 2021 Government Budgeting
Budget 2021 Highlights: Health and Wellbeing

Why in News Recently, the Minister of Finance presented the Union Budget 2021-22. This was the first ever digital Union Budget. It is based on...

03 Feb 2021 Government Budgeting
Missed Annual Disinvestment Targets

Why in News The government has raised less than 3% of budgeted revenues from disinvestment in 2020-21. As a result, the fiscal deficit for the...

28 Jan 2021 Government Budgeting
Government's Disinvestment Plans

Why in News Recently, the Ministry of Finance has extended the bidding deadlines for the strategic disinvestment of Pawan Hans by a month, citing...

18 Jan 2021 Government Budgeting
Changes in PMS-SC

Why in News Recently, the Cabinet Committee on Economic Affairs (CCEA) has approved changes in the Post Matric Scholarship to students belonging to...

24 Dec 2020 Government Budgeting

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		'article_id' => (int) 8659,
		'category_id' => (int) 22,
		'title' => '1991 Reforms & 2021 Crisis',
		'description' => '<div class="border">
<p>This article is based on <a href="https://www.hindustantimes.com/opinion/from-1991-the-lessons-for-the-india-of-2021-101624118192034.html" target="_blank" rel="noopener"><strong>&ldquo;From 1991, the lessons for the India of 2021&rdquo;</strong></a> which was published in The Hindustan Times on 19/06/2021. It talks about the 30 years of 1991 reforms and lessons that can be learned from it in dealing with the economic crisis induced by Covid-19 pandemic.</p>
</div>
<p>Thirty years ago, the <a href="/pdf/1606104094-25-years-of-1991-reforms.pdf" target="_blank" rel="noopener"><strong>liberalization regime launched in 1991</strong></a> completed its 30 years in 2021. The 1991 was a landmark moment in India&rsquo;s post-independence history that changed the nature of the economy in fundamental ways.</p>
<p>A severe balance of payments problem triggered an acute economic crisis in 1991. In response, India&rsquo;s economic establishment launched a multipronged reforms agenda to repair India&rsquo;s macroeconomic balance sheet and ignite growth.</p>
<p>Three decades later, the country faces another big test due to the Covid-19 pandemic. While the two crises differ vastly in content and structure, they are completely comparable in their respective severities.</p>
<h3>Significance of 1991 Reforms</h3>
<p><strong>India&rsquo;s Post-1990 Economic Strategy</strong></p>
<ul style="list-style-type: square;">
<li>It dismantled the vast network of controls and permits that dominated the economic system.</li>
<li>It redefined the role of the state as a facilitator of economic transactions and as a neutral regulator rather than the primary provider of goods and services.</li>
<li>It led to moving away from a regime of import substitution and to integrate fully with the global trading system.</li>
</ul>
<p><strong>Effect of Reforms</strong></p>
<ul style="list-style-type: square;">
<li>By the first decade of the 21<sup>st</sup> century, India began to be seen as one of the fastest growing emerging markets.</li>
<li>The 1991 reforms unleashed the energies of Indian entrepreneurs, gave untold choice to consumers and changed the face of the Indian economy.</li>
<li>Far from poverty increasing, for the first time, there was a substantial reduction in it.</li>
</ul>
<h3>Comparing 1991 Crisis With 2021</h3>
<p><strong>High Fiscal Deficit</strong></p>
<ul style="list-style-type: square;">
<li><strong>1991 Crisis:</strong> 1991 crisis was caused by excess domestic demand sucking in imports and widening the current account deficit (CAD). <br />
<ul style="list-style-type: circle;">
<li>A loss of confidence triggered an outflow of funds and financing CAD forced a sharp drawdown in reserves.</li>
</ul>
</li>
<li><strong>2021 Crisis:</strong> The pandemic-induced lockdown brought the wheels of economic activity to a grinding halt, triggering a sharp economic contraction.<br />
<ul style="list-style-type: circle;">
<li>This has resulted in a collapse in production following the disruption caused by the pandemic, which, in turn, has caused a fall in demand.</li>
<li>Faced with a collapse in demand, it is appropriate to increase the fiscal deficit. The government allowed the fiscal deficit to expand to 9.6% last year.</li>
</ul>
</li>
</ul>
<p><strong>Macroeconomic Situation</strong></p>
<ul style="list-style-type: square;">
<li><strong>1991 Crisis:</strong> India had to pledge tonnes of gold to stave off a default on sovereign debt. Then, we had almost run out of foreign exchange to pay for critical imports.</li>
<li><strong>2021 Crisis:</strong> Today, the economy is shrinking at a rapid pace, with the central government defaulting on its revenue commitments to the states. <br />
<ul style="list-style-type: circle;">
<li>Today, we have run out of jobs for our hordes of unemployed; poverty is increasing after decades of decline.</li>
</ul>
</li>
</ul>
<p><strong>Criticism of the Reform</strong></p>
<ul style="list-style-type: square;">
<li><strong>1991 Reforms:</strong> The 1991 reforms package faced heavy criticism as being dictated by the International Monetary Fund (IMF) and World Bank. <br />
<ul style="list-style-type: circle;">
<li>Further, some of the reforms were criticized as a sellout to capitalists.</li>
</ul>
</li>
<li><strong>2021 Reforms:</strong> Such a centralised approach to reforms may not work now. It can be seen in the protest emanating from <a href="/current-affairs-news-analysis-editorials/news-editorials/2020-12-01" target="_blank" rel="noopener"><strong>three farm laws.</strong></a></li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Sustaining Public Expenditure:</strong> In the short term, sustaining public expenditure is a key to reviving growth.<br />
<ul style="list-style-type: circle;">
<li>Currently public expenditure is highly desirable for providing more funds for vaccination and to cover expanded demand for the<a href="/daily-updates/daily-news-editorials/mgnrega-and-migrant-crisis" target="_blank" rel="noopener"><strong> MGNREGA</strong> </a>which is proving to be a valuable safety net.</li>
<li>Also, there is a need to undertake a credible path for deficit reduction over the next three years and revising revenue targets to a more realistic level.</li>
</ul>
</li>
<li><strong>Mutually Supportive Reforms:</strong> The 1991 reforms succeeded because they were structured around a core package of mutually supportive reforms.<br />
<ul style="list-style-type: circle;">
<li>Thus, the need is to move away from a long list of reforms towards a more strategic approach, focussing on the most critical reforms needed immediately.</li>
<li>In this context, the power sector, the financial system, governance structures and even agricultural marketing need reforms.</li>
</ul>
</li>
<li><strong>Improving Investment Climate:</strong> Investment is a key source of aggregate demand and economic growth. In this context:<br />
<ul style="list-style-type: circle;">
<li>Perceptions regarding growth prospects are key.</li>
<li>The policy framework must be supportive of fresh investments so that entrepreneurs are encouraged to take risks.</li>
<li>Non-economic factors such as a peaceful environment and social cohesion are also relevant.</li>
<li>The government must begin to act on all these fronts.</li>
</ul>
</li>
<li><strong>Maruti Model of Disinvestment:</strong> The government should reduce its ownership to 26% in each undertaking, including banks, to strategic partners, like it did under the Maruti disinvestment following 1991 reforms.<br />
<ul style="list-style-type: circle;">
<li>In this context, PSUs like Air India, BPCL, and Concor can be sold within the next six months, with the commitment that two dozen PSUs would be divested at the &lsquo;Maruti model&rsquo; every year for the next five years.</li>
<li>This will help in generating billions of rupees of investible surplus for the government.</li>
</ul>
</li>
<li><strong>Multi-stakeholders Approach:</strong> Today&rsquo;s reforms also require much more discussion and consensus-building. The central government needs to work in tandem with state governments and consult different stakeholders impacted by reform decisions.</li>
</ul>
<h3>Conclusion</h3>
<p>The 1991 reforms helped the economy stave off a crisis and then bloom. It is time to outline a credible new reform agenda that will not just bring GDP back to pre-crisis levels, but also ensure growth rates higher than it had when it entered the pandemic.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #f7f8ff;">
<p><span style="color: #800000;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>1991 reforms energised the Indian economy and lifted millions out of poverty. As India grapples with a post-pandemic economic crisis, there are lessons on what to reform and how. Discuss.</p>
</td>
</tr>
</tbody>
</table>
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		'article_id' => (int) 8248,
		'category_id' => (int) 21,
		'title' => 'Increase in World Military Spending during Covid-19: SIPRI',
		'description' => '<h3>Why in News</h3>
<p>According to the latest data published by<a href="/daily-updates/daily-news-analysis/fewer-but-newer-nuclear-arms-sipri" target="_blank" rel="noopener"><strong> Stockholm International Peace Research Institute (SIPRI)</strong></a>, the military spending across the world rose to USD 1,981 billion in 2020, during<a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19" target="_blank" rel="noopener"><strong> Covid-19 pandemic.</strong></a></p>
<ul style="list-style-type: square;">
<li>The <strong>2.6% increase in world military spending</strong> came in a year<strong> when the global GDP shrank by 4.4%</strong> largely due to the <a href="/daily-updates/daily-news-analysis/the-economic-impact-of-coronavirus" target="_blank" rel="noopener"><strong>economic impacts of the Covid-19 pandemic.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Global Scenario:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Military spending as a share of <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener">Gross Domestic Product (GDP)</a>,</strong> reached a global average of<strong> 2.4% in 2020,</strong> up from 2.2% in <a href="/daily-updates/daily-news-analysis/india-among-top-military-spenders-sipri" target="_blank" rel="noopener"><strong>2019.</strong></a></li>
<li>The<strong> five biggest spenders in 2020,</strong> which together accounted for 62% of global military expenditure were: the <strong>United States&gt;China&gt;India&gt;Russia&gt;the United Kingdom.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>US:</strong> 2020 was the <strong>third consecutive year of growth in US military spending,</strong> following seven years of continuous reductions.<br />
<ul style="list-style-type: disc;">
<li>This reflects growing concerns over <strong>perceived threats from strategic competitors such as China and Russia,</strong> as well as the Trump administration&rsquo;s drive to bolster what it saw as a depleted US military.</li>
</ul>
</li>
<li><strong>China:</strong> China&rsquo;s <strong>spending has risen for 26 consecutive years,</strong> the longest series of uninterrupted increases by any country in the SIPRI Military Expenditure Database.</li>
</ul>
</li>
<li>Nearly all members of the <a href="/daily-updates/daily-news-analysis/nato-ally-status-to-india" target="_blank" rel="noopener"><strong>North Atlantic Treaty Organization (NATO)</strong></a> saw their <strong>military burden rise in 2020.</strong></li>
<li>The <strong>countries with the biggest increases in military burden</strong> among the top 15 spenders in 2020 were <strong>Saudi Arabia, Russia, Israel and US.</strong></li>
</ul>
</li>
<li><strong>Regional Scenario:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Europe:</strong> Military spending across Europe <strong>rose by 4.0%</strong> in 2020. <br />
<ul style="list-style-type: disc;">
<li>Germany and France were the 7<sup>th</sup> and 8<sup>th</sup> largest spender globally.</li>
</ul>
</li>
<li><strong>Asia and Oceania:</strong> In addition to <strong>China, India</strong> (USD 72.9 billion), <strong>Japan</strong> (USD 49.1 billion),<strong> South Korea</strong> (USD 45.7 billion) and <strong>Australia</strong> (USD 27.5 billion) were the <strong>largest military spenders</strong> in the Asia and Oceania region. <br />
<ul style="list-style-type: disc;">
<li>All four countries increased their military spending between 2019 and 2020 and over the decade 2011-20.</li>
</ul>
</li>
<li><strong>Sub-Saharan Africa: </strong>Military expenditure in sub-Saharan Africa<strong> increased by 3.4%</strong> in 2020 to reach USD 18.5 billion.<br />
<ul style="list-style-type: disc;">
<li>The biggest increases in spending were made by Chad, Mali, Mauritania and Nigeria, all in the<strong> <a href="/daily-updates/daily-news-analysis/green-wall-of-india" target="_blank" rel="noopener">Sahel region</a>,</strong> as well as Uganda.</li>
</ul>
</li>
<li><strong>South America:</strong> Military expenditure in South America <strong>fell by 2.1%.</strong> <br />
<ul style="list-style-type: disc;">
<li>The decrease was <strong>largely due to a 3.1% drop in spending by Brazil,</strong> the sub region's largest military spender.</li>
</ul>
</li>
<li><strong>Middle Eastern Countries:</strong> The <strong>combined military spending of the 11 Middle Eastern countries</strong> for which SIPRI has spending figures <strong>decreased by 6.5% in 2020.</strong><br />
<ul style="list-style-type: disc;">
<li>Eight of the nine members of the <a href="https://www.google.com/url?q=https://www.drishtiias.com/daily-updates/daily-news-analysis/opec&amp;sa=D&amp;source=editors&amp;ust=1619526190254000&amp;usg=AOvVaw2PtI1_vfErV3ZdMnyuCOFs" target="_blank" rel="noopener"><strong>Organization of the Petroleum Exporting Countries (OPEC)</strong></a> for which SIPRI has figures cut their military spending in 2020.</li>
<li>Angola&rsquo;s spending fell by 12%, Saudi Arabia&rsquo;s by 10%, and Kuwait&rsquo;s by 5.9%.</li>
<li><strong>Non-OPEC oil exporter Bahrain </strong>also<strong> cut its spending by 9.8%.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>India&rsquo;s Scenario:</strong> <br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/decline-in-india-s-arms-imports-sipri" target="_blank" rel="noopener"><strong>India</strong></a> was the<strong> third largest military spender</strong> in the world in 2020, behind only the US and China.</li>
<li>India&rsquo;s <strong>military expenditure was USD 72.9 billion</strong> and it <strong>accounted for 3.7% of the global military expenditure share.</strong></li>
<li>India&rsquo;s <strong>spending since 2019 grew by 2.1%.</strong> The increase<strong> can be largely attributed to India&rsquo;s ongoing <a href="/daily-updates/daily-news-analysis/pakistan-s-new-map" target="_blank" rel="noopener">conflict with Pakistan</a> and renewed <a href="/daily-updates/daily-news-analysis/india-china-conflict" target="_blank" rel="noopener">border tension with China.</a></strong><br />
<ul style="list-style-type: disc;">
<li>The continuing military confrontation with China in eastern Ladakh, of course, <strong>has led India to make several emergency arms purchases from abroad</strong> since the crisis erupted in early May 2020.</li>
</ul>
</li>
<li>India&rsquo;s annual military expenditure also <strong>includes a huge pension bill for 33-lakh veterans and defence civilians.</strong> <br />
<ul style="list-style-type: disc;">
<li>In the 2021-2022 defence budget, for instance, the pension bill was Rs. 1.15 lakh crore out of the total Rs 4.78 lakh crore outlay.</li>
</ul>
</li>
<li>India<strong> has to maintain an over 15-lakh strong armed forces</strong> because of the two active and unresolved borders with China and Pakistan. <br />
<ul style="list-style-type: disc;">
<li>Consequently, the revenue expenditure for the day-to-day running costs and salary bill in the defence budget by far<strong> outstrips the capital outlay for military modernization,</strong> leaving critical operational shortages on different fronts, ranging from fighters to submarines.</li>
</ul>
</li>
<li>With a<strong> weak domestic defence-industrial base,</strong> India of course continues to languish in the strategically-vulnerable position of <strong>being the world&rsquo;s second-largest arms importer just behind Saudi Arabia.</strong> <br />
<ul style="list-style-type: disc;">
<li>India <strong>accounted for 9.5% of the total global arms imports during 2016-2020.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Stockholm International Peace Research Institute</strong></p>
<ul style="list-style-type: square;">
<li>This<strong> think tank</strong> is an<strong> independent international institute</strong> dedicated to research into conflict, armaments, arms control and disarmament.</li>
<li>It was<strong> established in 1966 at Stockholm (Sweden).</strong></li>
<li>It provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/india/india-third-highest-military-spender-in-2020-7290118/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 7980,
		'category_id' => (int) 21,
		'title' => 'Supplementary Demand for Grants',
		'description' => '<h3>Why in News</h3>
<p>The Lok Sabha has passed <a href="/daily-updates/daily-news-analysis/supplementary-demands-for-grants" target="_blank" rel="noopener"><strong>supplementary demand for grants</strong></a> for the second batch (2020-2021).</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong> It is needed when the amount authorised by the Parliament through the <a href="/daily-updates/daily-news-analysis/the-appropriation-bill" target="_blank" rel="noopener"><strong>appropriation act</strong></a> for a particular service for the current financial year is found to be <strong>insufficient</strong> for that year. <br />
<ul style="list-style-type: circle;">
<li>This grant is <strong>presented and passed by the Parliament before the end of the financial year.</strong></li>
</ul>
</li>
<li><strong>Constitutional Provisions: Article 115</strong> pertains to supplementary, additional or excess grants.</li>
<li><strong>Other Grants: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Additional Grant:</strong> It is granted when a need has arisen during the current financial year for additional expenditure upon some <strong>new service not contemplated in the budget</strong> for that year.</li>
<li><strong>Excess Grant :</strong> It is granted when <strong>money has been spent on any service during a financial year in excess of the amount granted f</strong>or that service in the budget for that year. It is<strong> voted by the Lok Sabha</strong> after the financial year. Before the demands for excess grants are submitted to the Lok Sabha for voting, they <strong>must be approved by the <a href="/current-affairs-news-analysis-editorials/news-editorials/26-09-2020/print" target="_blank" rel="noopener">Public Accounts Committee of Parliament.</a></strong></li>
<li><strong>Vote of Credit:</strong> It is <strong>granted for meeting an unexpected demand upon the resources of India,</strong> when on account of the magnitude or the indefinite character of the service, the demand cannot be stated with the details ordinarily given in a budget. Hence, it is like a blank cheque given to the Executive by the Lok Sabha.</li>
<li><strong>Exceptional Grant:</strong> It is<strong> granted for a special purpose</strong> and forms<strong> no part of the current service of any financial year.</strong></li>
<li><strong>Token Grant:</strong> It is granted when funds to meet the proposed expenditure on a new service can be made available by reappropriation. A demand for the grant of a token sum (of Re 1) is <strong>submitted to the vote of the Lok Sabha</strong> and if assented, funds are made available.<br />
<ul style="list-style-type: disc;">
<li><strong>Reappropriation</strong> involves transfer of funds from one head to another. It does not involve any additional expenditure.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Article 116</strong> of the Constitution pertains to <strong>Votes on account, votes of credit and exceptional grants.</strong></li>
<li>Supplementary, additional, excess and exceptional grants and vote of credit are <strong>regulated by the same procedure</strong> which is <strong>applicable in the case of a regular <a href="/to-the-points/paper3/government-budgeting" target="_blank" rel="noopener">budget.</a></strong></li>
</ul>
<p><a href="https://www.thehindu.com/news/national/parliament-proceedings-lok-sabha-passes-supplementary-demand-for-grants/article34101248.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7943,
		'category_id' => (int) 21,
		'title' => 'Decline in India’s Arms Imports: SIPRI',
		'description' => '<h3>Why in News</h3>
<p>According to a recent report by<a href="/daily-updates/daily-news-analysis/fewer-but-newer-nuclear-arms-sipri" target="_blank" rel="noopener"><strong> Stockholm International Peace Research Institute (SIPRI)</strong></a> <strong>India&rsquo;s arms imports came down by a third (about 33%)</strong> between 2011-2015 and 2016-2020.</p>
<h3>Key Point</h3>
<ul style="list-style-type: square;">
<li><strong>India Specific Findings:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Second Highest Importer:</strong> <br />
<ul style="list-style-type: disc;">
<li>India remains the <strong>second highest importer, only behind Saudi Arabia. </strong></li>
</ul>
</li>
<li><strong>Arms Suppliers to India:</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Russia is the largest arms supplier</strong> to India in both periods (2011-2015 and 2016-2020). However, <strong>Russia&rsquo;s</strong> share of Indian arms imports fell from 70% to 49%.</li>
<li><strong>France and Israel</strong> were the <strong>second and third largest</strong> arms suppliers in 2016&ndash;20. India&rsquo;s arms imports from <strong>France increased by 709%</strong> while those from Israel rose by 82%.</li>
<li>The <strong>USA</strong> became the <strong>fourth largest supplier</strong> for the period 2016-20. It <strong>was the second largest arms supplier </strong>to<strong> India in 2011&ndash;15.</strong></li>
</ul>
</li>
<li><strong>Indian Export:</strong><br />
<ul style="list-style-type: disc;">
<li>India accounted for<strong> 0.2% of the share of global arms exports</strong> during 2016-20, making the country the world&rsquo;s 24<sup>th</sup> largest exporter of major arms.</li>
<li>This represents an<strong> increase of more than 200% </strong>over<strong> India&rsquo;s export share (0.1%)</strong> during the previous five-year period of 2011-15.</li>
<li><strong>Myanmar, Sri Lanka and Mauritius were the top recipients</strong> of Indian military hardware.</li>
</ul>
</li>
<li><strong>Future Trends:</strong><br />
<ul style="list-style-type: disc;">
<li>Owing to increasing threats from Pakistan-China, and a significant delay in domestic defence manufacturing, India&rsquo;s <strong>arms imports are expected to increase</strong> over the coming few years.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons for the Fall in Imports:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>India&rsquo;s Push for Self-Reliance:</strong> The report said that the fall is not attributed to the government&rsquo;s push to make <strong>India self-reliant in defence manufacturing.</strong><br />
<ul style="list-style-type: disc;">
<li>Also, over<strong> 60% of the capital expenditure</strong> for the armed forces has been allocated for <strong>domestically produced weapons and platforms.</strong></li>
<li>Earlier, the government had announced<strong> a <a href="/daily-updates/daily-news-analysis/negative-imports-list-for-defence#:~:text=At%20least%20a%20third%20of,and%20the%20light%20transport%20aircraft." target="_blank" rel="noopener">negative imports list of 101 defence equipment</a></strong> and platforms will provide an opportunity to manufacture the items in the negative list.</li>
</ul>
</li>
<li><strong>Complex Procurement Process:</strong> The drop in Indian arms imports have been mainly due to its <strong>complex procurement processes,</strong> combined with an attempt to <strong>reduce its dependence on Russian arms.</strong></li>
</ul>
</li>
<li><strong>International Transfers:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>top five global arms exporters</strong> were the US, Russia, France, Germany and China in 2016-2020.</li>
<li>International transfers of major arms <strong>stayed at the same level between 2011&ndash;15 and 2016&ndash;20</strong><br />
<ul style="list-style-type: disc;">
<li>There were<strong> substantial increases</strong> in transfers by<strong> the USA, France and Germany</strong> and it was largely offset by<strong> declining Russian and Chinese</strong> arms exports.</li>
<li>The<strong> bulk of Russian export fall</strong> was due to India reducing its imports.</li>
<li>Even if Russia substantially increased its <strong>arms transfers to China, Algeria and Egypt</strong> between 2011&ndash;15 and 2016&ndash;20, this did not offset the large drop in its arms exports to India.</li>
</ul>
</li>
<li><strong>Middle eastern arms imports grew</strong> during this period and was majorly driven by Saudi Arabia.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Stockholm International Peace Research Institute</strong></p>
<ul style="list-style-type: square;">
<li>It is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament.</li>
<li>It was established in <strong>1966 at Stockholm (Sweden).</strong></li>
<li>It<strong> provides data, analysis and recommendations,</strong> based on open sources, to policymakers, researchers, media and the interested public.</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/news/national/indias-arms-imports-decreased-by-33-between-201115-and-201620/article34075506.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7836,
		'category_id' => (int) 22,
		'title' => 'Participatory Budget',
		'description' => '<div class="border">
<p>This article is based on <a href="https://indianexpress.com/article/opinion/columns/municipal-budgets-can-make-a-real-difference-to-citizens-lives-heres-how-7211619/" target="_blank" rel="noopener"><strong>&ldquo;The citizen&rsquo;s budget&rdquo;</strong> </a>which was published in The Indian Express on 03/03/2021. It talks about the idea of the Participatory Budget in India.</p>
</div>
<p>In every government system, allocating budgets is the first step towards getting any piece of work done. Union and various state governments pass their budget every year, but the budgets that matter most to us are city budgets or municipal budgets.</p>
<p>In fact, most of the allocations for cities in the Union and state budgets find their way into municipal budgets, as municipalities implement most of their schemes.</p>
<p>Further, all across the world, there seems to be evidence to suggest that when there is citizen participation in budgeting and closer engagement of citizens in the monitoring of civic works, there are better outcomes and fewer leakages.</p>
<p>Given this, there is a need to strengthen the mechanism of participatory budgeting in India.</p>
<h3>What is Participatory Budgeting?</h3>
<ul style="list-style-type: square;">
<li>&ldquo;Participatory Budgeting&rdquo; is a concept that was pioneered in the Brazilian city of Porto Alegre in the mid-1980s. It is now practiced in one form or other in thousands of cities around the world.</li>
<li>It ensures that the diverse needs and experiences of local communities are understood and a range of voices is heard in local decision-making is essential in this process.</li>
<li>Participatory budgeting (PB) has significant potential to transform the relationships between local communities and the public institutions that serve them.</li>
<li>In India, participatory budgeting in cities was pioneered by Janaagraha in Bengaluru in 2001 but took firmer roots in Pune, which drew inspiration from the Bengaluru experience and had a more committed leadership.</li>
<li>Presently, a staggering 4,500+ municipalities in which over 300 million people live present their budgets every year during the budget season.</li>
</ul>
<h3>Benefits of Participatory Budgeting</h3>
<ul style="list-style-type: square;">
<li><strong>Voice in Civic Governance:</strong> It makes citizens feel like they have a voice in civic governance and thereby builds trust.
<ul style="list-style-type: circle;">
<li>Children, women, senior citizens, the differently-abled, and several interest groups would be able to make a case for their causes and aspirations and have them fulfilled.</li>
<li>It facilitates a targeted, hyperlocal focus on budgeting and problem-solving.</li>
</ul>
</li>
<li><strong>Community Ownership:</strong> This would foster far greater ownership in communities for civic assets and amenities, thereby resulting in better maintenance and upkeep.
<ul style="list-style-type: circle;">
<li>At the local level, it is a win-win for communities, elected councilors, and the city administration.</li>
<li>It addresses inefficiencies arising from misplaced prioritization of civic works relative to citizen needs.</li>
</ul>
</li>
<li><strong>Facilitating Equity:</strong> Actively engaging with communities to advance equality and eliminate inequalities is integral to participatory decision-making and the allocation of public resources.
<ul style="list-style-type: circle;">
<li>Finally, it improves accountability for civic works at the last mile (as citizens would monitor budget execution).</li>
</ul>
</li>
<li><strong>Increasing Trust Between Government &amp; People:</strong> Citizens could work with ward-level engineers to use these funds to get their urban commons (street lights fixed, make their footpaths walkable, spruce up their parks, create a new childcare center or public toilet in an urban poor settlement) fixed.
<ul style="list-style-type: circle;">
<li>This would change the lives of the people and build trust between citizens and governments.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Need For Greater Degrees of Citizen Engagement:</strong> Budget documents themselves are not easy to read and understand for an average citizen. At present, most municipal laws don&rsquo;t provide for citizen participation in budgets or transparency in civic works and tenders.
<ul style="list-style-type: circle;">
<li>Thus, there is a need for greater degrees of citizen engagement and media engagement on these budgets for them to become instruments of real change at a street, neighborhood, and ward level.</li>
<li>It can be an enabler of grassroots democracy in cities and tangible change for communities particularly children, women, and the urban poor.</li>
</ul>
</li>
<li><strong>Emulating MyCity MyBudget Campaign:</strong> The campaign was first launched in 2015, and is gathering traction in Bengaluru, Mangaluru and Visakhapatnam, as a collaborative effort between respective city corporations, neighborhood communities and Janaagraha.
<ul style="list-style-type: circle;">
<li>Across these cities over 85,000 budget inputs have been crowdsourced from over 80,000 citizens on a wide range of civic issues such as &ldquo;yellow spots&rdquo; (public urination spots), public toilets, footpaths, garbage dumps, roads, and drains.</li>
<li>These inputs will be reviewed and incorporated into the city budget.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>Though every year Union and state governments&rsquo; budgets look very promising, they have a hard time gaining assurance that these schemes and funds result in intended citizen outcomes. Participatory budgeting can help in this regard.</p>
<p>However, the institutional engagement and analysis needed to effectively integrate the requirements of equality legislation into participatory budgeting (PB) processes requires a transformational approach.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fffffc;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Communities and media in cities need to engage more deeply with municipal budgets. Discuss.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/-cL9NuJTQNI" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://www.thehindu.com/opinion/editorial/cold-comfort-on-pak-continues-to-be-in-fatf/article33965877.ece" target="_blank" rel="noopener"><strong>&ldquo;Cold comfort: On Pak continues to be in FATF&rdquo;</strong></a> published in The Hindu on March 2<sup>nd</sup>, 2020. Now watch this on our Youtube channel.</p>',
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	(int) 5 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7757,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Roadmap to Implement Infra Projects',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/YTxy8DZWyjA" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-infrastructure" target="_blank" rel="noopener"><strong>Union Budget 2021-2022</strong></a> has given the much-needed fillip to the infrastructure sector.
<ul style="list-style-type: circle;">
<li>The Finance Minister has also announced the setting up of a <strong>Development Finance Institution</strong>, allowing large-scale asset monetisation.</li>
</ul>
</li>
<li>The infrastructure push is expected to not just boost India&rsquo;s post-pandemic economic recovery, but also create jobs.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Hike in Allocation:</strong> There is a <strong>34.5% increment</strong> in the budget allocation for infrastructure as compared to FY 2020-21.</li>
<li><strong>Equal Focus:</strong> Equal emphasis has been given to all the physical infrastructures including roads and highways, railways, urban infrastructure, power, port, shipping and airways, and petroleum and natural gas.
<ul style="list-style-type: circle;">
<li>The highest-ever capital expenditure of Rs 1.08 lakh crore has been allocated for building highways.</li>
</ul>
</li>
<li><strong>Institutional Set-up:</strong> The government has allocated 20,000 crore rupees to set up and capitalize a <strong>developmental financial institution.</strong></li>
<li><strong>Monitoring &amp; Transparency:</strong> A <strong>national monetisation pipeline</strong> will be launched, with a dashboard to track the progress and provide visibility to investors.</li>
</ul>
<div class="border-bg">
<p><strong>National Monetisation Pipeline</strong></p>
<ul style="list-style-type: square;">
<li>The budget for 2021-22 proposes a national monetization pipeline of potential <strong>brownfield</strong> projects.
<ul style="list-style-type: circle;">
<li>Asset monetisation is the process of unlocking the value of investment made in public assets which have not yielded appropriate or potential returns so far.</li>
</ul>
</li>
</ul>
<p><strong>Brownfield Projects</strong></p>
<ul style="list-style-type: square;">
<li>A brownfield investment is when a company or government <strong>entity purchases or leases existing production facilities</strong> to launch a new production activity.
<ul style="list-style-type: circle;">
<li>This is one strategy used in<a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"> <strong>Foreign Direct Investment (FDI).</strong></a></li>
</ul>
</li>
<li>The alternative to this is a greenfield investment, in which a new plant is constructed.</li>
</ul>
</div>
<h3>Focus Areas for Infrastructure Development</h3>
<ul style="list-style-type: square;">
<li><strong>Decongesting the Choke Points:</strong> In addition to the roads and highways that are being built, there should be a focus on decongesting the choke points that connect the highways with the city.</li>
<li><strong>Low-cost Housing:</strong> The infra projects which are going to be confined to mostly tier 1 tier 2 cities, post pandemic the migrant labourers will return to the cities, so the government has to work on low-cost housing so that there&rsquo;s no further plight of temporary accommodation for the labourers .
<ul style="list-style-type: circle;">
<li><strong>Deslumification</strong> of the cities and low-cost housing are some of the priority areas that India shall take into account and act upon.</li>
</ul>
</li>
<li><strong>River Rejuvenation:</strong> It is a major infrastructural push India has to give as every city has a river that is spooning black water.
<ul style="list-style-type: circle;">
<li>Although major action plans for major rivers like the <a href="/daily-updates/daily-news-analysis/national-mission-for-clean-ganga" target="_blank" rel="noopener"><strong>National Mission for Clean Ganga</strong></a> are there, it's not enough, there are many drains and tributaries that are actually contributing to the pollution of the main river.</li>
<li>Also, it is the people living along these river banks that need to be invested in the idea.</li>
</ul>
</li>
<li><strong>Public-Private Partnerships (PPP):</strong> The government cannot entirely invest from its own resources in these infra projects, unless they involve the <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>private sector</strong></a> which can monetise these assets.
<ul style="list-style-type: circle;">
<li>For a reduced delay in completion of infra projects, preferably governments can initially build the projects and then hand over the projects to the private players for operations and maintenance.</li>
</ul>
</li>
</ul>
<h3>Issues Associated</h3>
<ul style="list-style-type: square;">
<li><strong>Lack of Sustainable Finances:</strong> Although the budget allocation for infrastructure is a considerable amount but it is not enough unless augmented with supplementary resources from the market such as the FDI.</li>
<li><strong>Land Issues:</strong> Land is the basic requirement for any infrastructure project. Land acquisition in India is contentious and hence not a very speedy process.</li>
<li><strong>Ineffective Dispute Resolution Mechanism:</strong> A lot of infra projects are mired in the litigation between the executing agencies and the authorities which own the projects.
<ul style="list-style-type: circle;">
<li>The dispute resolution mechanisms are not very quick and effective, therefore the existing investors find it difficult to thrive and the new investors do not feel much comfortable in participating.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Human Resources:</strong> Quality manpower shall be invested to plan, implement, execute and monitor the infrastructure projects well.</li>
<li><strong>Foreign Direct Investments:</strong> Enhancing and permitting FDI, in the sectors where India&rsquo;s R&amp;D is still not at the global level.
<ul style="list-style-type: circle;">
<li>To bring more FDI in India, the legal framework has to be smoothened and a better contract management system and a better dispute resolution mechanism is required.</li>
</ul>
</li>
<li><strong>Encouraging the Private Sector Involvement:</strong> Government by itself putting all the efforts will not bring out the entrepreneurship capabilities within the private sector, which is very much required if India wants to catch up at the global level in terms of providing infrastructure.
<ul style="list-style-type: circle;">
<li>The government has to look at the private sector as a partner and not as a vendor as it is about equal participation towards transformation of the country from an infrastructure perspective.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>A roadmap to implement infrastructure projects with the PPP model will be sustainable and it will reduce the burden on the government's financial capacity.
<ul style="list-style-type: circle;">
<li>Although the private sector is a profit based sector, if regulated in a suitable way, it would be beneficial for the government, the private sector as well as the nation.</li>
<li>Moreover, the announcement of the National Monetisation Pipeline is a welcome move which will not only enhance returns from public investments but also promote balanced regional development.</li>
</ul>
</li>
<li>If India is aiming at world class infrastructure, there are several things that need increased attention and encouragement such as the industry-academia partnership to fillip the R&amp;D sector.</li>
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		'article_id' => (int) 7730,
		'category_id' => (int) 22,
		'title' => 'Health and Budget',
		'description' => '<div class="border">
<p>This article is based upon<a href="https://www.thehindubusinessline.com/opinion/towards-swasth-bharat/article33873108.ece" target="_blank" rel="noopener"><strong> &ldquo;Towards Swasth Bharat&rdquo;</strong></a> which was published in The Hindu Business Line on February 18, 2021. It talks about how increased budgetary allocation in the health sector is a much desired thing for the post-pandemic era and what are the associated issues.</p>
</div>
<p>Today, India is amidst this <a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener"><strong>global pandemic</strong></a>, a black swan event which has re-emphasised that our biggest resource is our people and hence, has brought to the forefront an urgent need for stronger health systems to ensure the well being of its people.</p>
<p>The <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-health-and-wellbeing" target="_blank" rel="noopener"><strong>Budget for FY 2021-22</strong></a> has come up with a holistic approach to health, incorporating &lsquo;preventive&rsquo;, &lsquo;curative&rsquo;, and &lsquo;well-being&rsquo; aspects with an increase of 137% as compared to the previous fiscal.</p>
<p>However, the numbers often seem high until evaluated carefully. The outlay on the health sector has been lowered to approximately 10% as compared to the estimates for the <a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong>FY 2020-21.</strong></a></p>
<h3>Current Situation of Health Sector</h3>
<ul style="list-style-type: square;">
<li>India&rsquo;s health infrastructure came under considerable strain in 2020, with 11 million Covid cases and perhaps over a million requiring hospitalisation.</li>
<li>India currently has <strong>one doctor over the population of 1,445</strong> against the WHO norm of 1:1000.</li>
<li>India spent 1.8% of its GDP on health in FY 2020-21 and 1-1.5% in the previous years.
<ul style="list-style-type: circle;">
<li>As compared with the OECD countries&rsquo; average of 7.6% and other BRICS countries&rsquo; average of 3.6% on their health sector, this is considerably low.</li>
<li>As a result, India is among the top nations with the highest <strong>Out Of Pocket Expenditure (OOPE).</strong>
<ul style="list-style-type: disc;">
<li>According to estimates, out of pocket expenses in healthcare in India hover close to 62%, nearly thrice the global average of 18%.</li>
</ul>
</li>
</ul>
</li>
<li>A report released by the Johns Hopkins Bloomberg School of Public Health in 2019 suggested that nearly <strong>one out of every 100 Indian children</strong> does not live to celebrate their fifth birthday on account of either diarrhoea or pneumonia.
<ul style="list-style-type: circle;">
<li><strong>Suboptimal access to clean water and sanitation</strong> is directly linked to diseases such as diarrhoea, polio and malaria.</li>
</ul>
</li>
</ul>
<h3>The Health Budget 2021</h3>
<ul style="list-style-type: square;">
<li>The Budget has committed to an outlay of ₹2,23,846 crore in health and well-being for 2021-22, a <strong>137%</strong> increase over previous year&rsquo;s Budget Estimate of ₹94,452 crores.
<ul style="list-style-type: circle;">
<li>This includes a ₹60,030 crore outlay on drinking water and sanitation, a ₹2,700 crore outlay on nutrition, nearly ₹49,000 crore as Finance Commission grants and ₹35,000 crore toward <a href="/daily-updates/daily-news-editorials/covid-19-vaccine-distribution" target="_blank" rel="noopener"><strong>vaccination</strong></a>.</li>
<li>Water and sanitation sector have received a 179% increase over the previous year&rsquo;s allocation from Rs 21,518 crore to Rs 60,030 crore.</li>
</ul>
</li>
<li>This is also in line with the <a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener"><strong>Economic Survey&rsquo;s</strong></a> recommendation of increasing public health spending to about 2.5-3% of GDP.</li>
<li>Another important public health-related announcement in Budget 2021 was the government&rsquo;s decision to expand the coverage of the pneumococcal vaccine across the country.</li>
<li>The launch of <strong>Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PMANSBY)</strong> was also announced under the budget.
<ul style="list-style-type: circle;">
<li>It laid emphasis on the expansion of health and wellness centres along with a ₹13,192 crore <strong>Finance Commission grant</strong> for strengthening the primary health system through local government bodies.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1613739640_image0.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1613739640_image0.png" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="660" height="933" /></a></p>
<h3>Associated Issues</h3>
<ul style="list-style-type: square;">
<li><strong>Reduced budgetary allocation:</strong> The Union Budget 2021-22 allocated Rs 71,268.77 crore to the Union Health and Family Welfare Ministry. However, the revised estimates for last year was Rs 78,866 crores.
<ul style="list-style-type: circle;">
<li>This implies the budgetary allocation to the Union health ministry came down by nearly 10%.</li>
</ul>
</li>
<li><strong>Allocation for vaccination:</strong> Apart from the health outlay, ₹35,000 crore was allocated for COVID-19 vaccination in FY 2021-22.
<ul style="list-style-type: circle;">
<li>Even assuming the cheapest prices of vaccines for all the citizens, India will be able to vaccinate only 65% of its total population with this amount.</li>
<li>Moreover, this Finance Commission grant for COVID-19 vaccination is a one-time allocation and, therefore, does not strengthen the overall system at all.</li>
</ul>
</li>
<li><strong>Combined health and water &amp; sanitation sector:</strong> There is an increased allocation for water &amp; sanitation but allocation for nutrition has decreased by 27%.
<ul style="list-style-type: circle;">
<li>Added together, health, water and sanitation and nutrition make up the claimed 137% increase in allocation to &ldquo;health&rdquo; services with a real decline in healthcare and nutrition.</li>
</ul>
</li>
<li><strong>The misses:</strong> The budget has clearly missed mentioning any reduction in <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>GST</strong></a> on <strong>active pharmaceutical ingredients (API).</strong>
<ul style="list-style-type: circle;">
<li>Reduction of import duty on medical devices that could have helped reduce the cost of healthcare services for citizens is another aspect missing in the budget.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>To bring down costs:</strong> Beyond a few islands of excellence such as the AIIMS, investments in other medical colleges shall be encouraged to possibly bring down costs and ramp up quality of health services.
<ul style="list-style-type: circle;">
<li>The government may focus on medical education, infrastructure and research in an expanded health Budget.</li>
</ul>
</li>
<li><strong>Public Private Partnerships:</strong> Emphasising on <strong><a href="/to-the-points/paper3/ppp-investment-model" target="_blank" rel="noopener">Public Private Partnerships</a> (PPP)</strong> in other clinical procedures and hospitals and leveraging private sector expertise in the vaccination drive for a quicker and successful achievement of the target.</li>
<li><strong>Incentivised R&amp;D and reduced GST:</strong> Incentivising R&amp;D by additional tax deductions to further support greater investments in new drug developments and reducing GST on life-saving and essential drugs.</li>
<li><strong>Skill enhancement of healthcare workers:</strong> To prepare the existing healthcare workforce to provide the people the proposed healthcare facilities, it is important to give significant attention to their training, re-skilling, and knowledge upgradation.
<ul style="list-style-type: circle;">
<li>To cater to this need, the government can take into account public-private collaborations.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>The health sector has found a prominent place in the government&rsquo;s agenda over the last few years, and it has increased even more amid the pandemic.</p>
<p>Although much remains to be done, the Union Budget 2021&ndash;22 has laid a strong foundation to increase the resilience of the sector in the post-COVID-19 era and achieving Universal Health Coverage by 2030 as part of the Sustainable Development Goals agenda.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #f8fff2;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>&ldquo;The Union Budget 2021-22 has emphasised on the importance of health by increasing the budgetary allocation by 137% as compared to the previous fiscal.&rdquo; Critically examine.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/Ld_BsM3v7ZE" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://economictimes.indiatimes.com/blogs/et-editorials/start-trials-for-mutant-strains/" target="_blank" rel="noopener"><strong>Start trials for mutant strains</strong></a> published in the EconomicTimes on 17 February, 2021. Now watch this on our youtube channel.</p>',
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	(int) 7 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7695,
		'category_id' => (int) 22,
		'title' => 'Development Financial Institution',
		'description' => '<div class="border">
<p>This article is based on<a href="https://www.thehindubusinessline.com/opinion/editorial/return-of-dfis/article33794397.ece" target="_blank" rel="noopener"><strong> &ldquo;Return of DFIs&rdquo;</strong></a> which was published in The Hindu Businessline on 09/02/2021. It talks about the government&rsquo;s proposal of re-establishing the idea of a Development Finance Institution (DFI).</p>
</div>
<p>The<a href="/daily-updates/daily-news-analysis/budget-2021-highlights-infrastructure" target="_blank" rel="noopener"><strong> budget 2021</strong></a> has signaled that the Centre Government is banking on long-term infrastructure creation to lift India&rsquo;s economic growth rate sustainably. In this pursuit, the government has proposed to go back to the Development Finance Institution (DFI) idea.</p>
<p>Further, DFI makes sense as the Centre government envisages mobilizing nearly ₹100 lakh crore for the ambitious <a href="/loksabha-rajyasabha-discussions/the-big-picture-national-infrastructure-pipeline-nip-dashboard" target="_blank" rel="noopener"><strong>National Infrastructure Pipeline</strong></a>. The idea of DFI looks good in the context of the looming NPA crisis of Banks.</p>
<p>However, many economists have pointed out that India should keep the failed experiment with DFI, such as ICICI and IDBI, which leads to the conversion into universal banks.</p>
<h3>DFI &amp; Background</h3>
<ul style="list-style-type: square;">
<li>Development financial institutions provide long-term credit for capital-intensive investments spread over a long period and low yielding rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.</li>
<li>Development banks are different from commercial banks, which mobilize short- to medium-term deposits and lend for similar maturities to avoid a maturity mismatch (a potential cause for a bank&rsquo;s liquidity and solvency).</li>
<li>In India, the first DFI was operationalized in 1948 with the setting up of the Industrial Finance Corporation (IFCI).</li>
<li>Subsequently, India&rsquo;s Industrial Credit and Investment Corporation (ICICI) was set up with the World Bank&rsquo;s backing in 1955.</li>
<li>The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.</li>
<li>However, during the 1970-80s, DFI got discredited for mounting non-performing assets, allegedly caused by politically motivated lending and inadequate professionalism in assessing investment projects for economic, technical, and financial viability.</li>
<li>Due to these factors, Narsimhan Committee (1991) recommended disbanding of the DFI, and the existing DFI were converted into commercial banks.</li>
</ul>
<h3>Need for DFI</h3>
<ul style="list-style-type: square;">
<li><strong>NPA Crisis:</strong> The surge in NPAs in the banking sector, and the need to augment financing of infrastructure for kick-starting the growth cycle have led to a renewed policy attention on setting up DFIs.<br />
<ul style="list-style-type: circle;">
<li>The gap between banks' assets and liabilities, already increased by bad debts will become unsustainable in infrastructure investment, given the long funding periods of such projects.</li>
</ul>
</li>
<li><strong>Economic Crisis Triggered By Covid-19 Pandemic:</strong> Alexander Gerschenkron, a Ukrainian economic historian, famously theorized that the greater the backwardness of a country, the greater the role of the state in economic development, particularly in providing long-term finance to catch up with the advanced economies in the shortest possible time.<br />
<ul style="list-style-type: circle;">
<li>The Covid-19 pandemic has exacerbated inequality, the poverty gap, unemployment, and the economy&rsquo;s slowing down.</li>
<li>Thus, infrastructure building through DFIs can help in quick economic recovery.</li>
</ul>
</li>
<li><strong>Achieving the Target of $5 Trillion Economy:</strong> The government has envisaged attaining the target of becoming a USD 5 trillion economy by 2025.<br />
<ul style="list-style-type: circle;">
<li>However, this goal will depend on world-class infrastructure across the country.</li>
<li>NITI Aayog has estimated that US$4.5 trillion will be needed by 2030 to fund infrastructure. DFI is a step in the right direction towards this goal.</li>
</ul>
</li>
<li><strong>International Examples:</strong> DFIs in China, Brazil, and Singapore has been successful in both domestic and international markets.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Mobilizing Capital For DFI:</strong> To lend for the long term, DFI requires correspondingly long-term sources of finance.<br />
<ul style="list-style-type: circle;">
<li>DFIs of the earlier era were over-reliant on cheap government funds and today&rsquo;s commercial banks ran into asset-liability mismatches due to their reliance on retail deposits to fund long-term projects.</li>
<li>Therefore, it may be best for new-age DFIs to focus on diversified sources of funding.</li>
<li>Presently, DFI can be adequately capitalized by the sovereign-backed funds, alternative routes such as capital gains/tax-free bond issues, external borrowings, and loans from multilateral agencies.</li>
</ul>
</li>
<li><strong>Specialized DFIs:</strong> Specialised project lenders focussed on specific verticals tend to do better at building project appraisal skills and managing risks than &lsquo;supermarket&rsquo; lenders who fund any project that comes their way.<br />
<ul style="list-style-type: circle;">
<li>The Centre must therefore be open to the idea of multiple specialized DFIs modeled on the success of refinancing institutions such as NHB and NABARD.</li>
</ul>
</li>
<li><strong>Ensuring Good Governance:</strong> While freeing a DFI from political interference or crony lending is necessary, merely having private shareholders or professional managers on board isn&rsquo;t sufficient to ensure good governance. <br />
<ul style="list-style-type: circle;">
<li>This has to be backed by a robust system of external checks and balances such as supervision by RBI and proper due diligence by auditors and rating agencies.</li>
</ul>
</li>
<li><strong>Ensuring Ease of Doing Business:</strong> In the past, ambitious highway and pipeline projects have been continually held up by local protests and land acquisition woes, retrospective taxes, and poor contract enforcement. <br />
<ul style="list-style-type: circle;">
<li>The success of DFIs is contingent on ironing out such issues and removing on-ground impediments to the ease of doing business.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>While boosting investment in the infrastructure sector is imperative for sustained growth, the need for the hour is to resolve persistent issues in the debt market that impede long-term financing flow.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #ffffed;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Establishing Development Financial Institutions is a good idea for infrastructure creation and to lift India&rsquo;s economic growth rate. Critically Analyse.</p>
</td>
</tr>
</tbody>
</table>
<p></p>',
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	(int) 8 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7685,
		'category_id' => (int) 21,
		'title' => 'Schemes for Reducing Tax Disputes',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Finance Secretary has said that the <strong>new system of faceless assessment and appeal</strong> would help bring down tax disputes substantially.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Tax Disputes (Data):</strong> <br />
<ul style="list-style-type: circle;">
<li>As per official data, the <strong>amount involved in tax disputes </strong>was<strong> over Rs. 11 lakh crore in FY19-end, up 23% over a year-ago.</strong></li>
<li>Since India has a very <strong>high number of tax litigations, </strong>the <strong>resolution times are significantly higher,</strong> involving time and cost (on the part of the government as well as taxpayers).</li>
</ul>
</li>
<li><strong>Initiatives Taken to Reduce Tax Disputes:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Dispute Resolution Committee:</strong><br />
<ul style="list-style-type: disc;">
<li>In <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-minimum-government-maximum-governance-and-fiscal-position" target="_blank" rel="noopener"><strong>Budget 2021</strong></a>, the Minister of Finance has proposed the formation of a Dispute Resolution Committee (DRC) in order to provide quicker relief to taxpayers in tax disputes.</li>
<li>It will be<strong> formed under a new section, 245MA,</strong> of the Income Tax Act.</li>
<li>The DRC will <strong>cater to small taxpayers</strong> having a taxable income of up to Rs. 50 lakh and a disputed income of up to Rs. 10 lakh.</li>
<li>The Committee <strong>will have the powers</strong> to reduce, waive any penalty or give immunity from any offence punishable under the Income Tax Act.</li>
<li>The <strong>alternative mechanism through the DRC</strong> shall help taxpayers in preventing new disputes and settling the issue at the very initial stage.<br />
<ul style="list-style-type: disc;">
<li>India has been<strong> ranked at 88 in the World Rule of Law Index 2020</strong> in terms of accessibility of alternative dispute resolution mechanisms.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Faceless Assessment and Appeal:</strong><br />
<ul style="list-style-type: disc;">
<li>The Prime Minister in August 2020 announced three key structural tax reforms under the<a href="/daily-updates/daily-news-analysis/transparent-taxation-honoring-the-honest" target="_blank" rel="noopener"><strong> &lsquo;Transparent Taxation - Honouring the Honest&rsquo; platform</strong></a> - faceless assessment, faceless appeal and taxpayers&rsquo; charter.</li>
<li>The <strong>faceless assessment system</strong> was launched to remove the need of the physical presence of the taxpayers in front of the tax officials. <br />
<ul style="list-style-type: disc;">
<li>Since the launch of faceless random assessment, over 50,000 disputes have been settled.</li>
</ul>
</li>
<li>The <strong>faceless appeals system</strong> aims to eliminate discretionary powers of the taxman, curb corrupt practices and provide ease of compliance to taxpayers.<br />
<ul style="list-style-type: disc;">
<li>Income Tax<strong> appeals will be finalised in a faceless manner</strong> with the exception of appeals related to serious fraud, major tax evasion, search matters, international tax issues and matters pertaining to black money.</li>
</ul>
</li>
<li>The <strong>tax charter</strong> elaborated on the rights and responsibilities of the taxpayers to help them familiarise with the whole process of Income Tax collection.</li>
<li>The effort is on to establish a<strong> National Faceless Income Tax Appellate Tribunal Centre</strong> that will offer personal hearings through video-conferencing.</li>
</ul>
</li>
<li><strong>Vivad Se Vishwas Scheme:</strong><br />
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/direct-tax-vivad-se-vishwas-bill-2020" target="_blank" rel="noopener"><strong>scheme</strong></a> provides for <strong>settlement of disputed tax, disputed interest, disputed penalty or disputed fees</strong> in relation to an assessment or reassessment order on payment of 100% of the disputed tax and 25% of the disputed penalty or interest or fee.</li>
<li>The <strong>Direct Tax Vivad se Vishwas Act, 2020</strong> was enacted in March 2020 to settle direct tax disputes locked up in various appellate forums.</li>
<li>As many as 1.25 lakh cases, a quarter of all direct disputes, have opted for Vivad se Vishwas scheme, enabling settlement of Rs. 97,000 crore in tax demands.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/business/economy/estimated-tax-buoyancy-for-fy22-neither-conservative-nor-unduly-optimistic-ajay-bhushan-pandey-7186471/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
		'posturl' => 'schemes-for-reducing-tax-disputes',
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	(int) 9 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7650,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Budget 2021 for Green Energy',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/n739bdyShz0" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The<a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong> Union Budget for FY 2021-22</strong> </a>presented by the Union Minister of India, has exclusively focussed on <strong>Green Energy initiatives.</strong></li>
<li>Budget 2021 has proposed the launch of the <strong>Hydrogen Energy Mission</strong> in this fiscal year. <br />
<ul style="list-style-type: circle;">
<li>Additional capital infusion for solar energy and renewable energy aspects has also been proposed.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The reforms in the budget have particularly focussed on <strong>green-growth.</strong>
<ul style="list-style-type: circle;">
<li>The initiative is expected to enhance the uptake of cleaner fuels in India.</li>
</ul>
</li>
<li>Budget 2021-22 talks about <a href="/daily-updates/daily-news-analysis/expansion-of-production-linked-incentive-scheme" target="_blank" rel="noopener"><strong>PLI scheme</strong></a> in Solar Manufacturing, <strong>Vehicle Scrappage Policy</strong> and the <strong>Hydrogen Energy Mission.</strong>
<ul style="list-style-type: circle;">
<li>The PLI scheme has also been extended to the <strong>ACCs.</strong></li>
</ul>
</li>
<li>The emphasis on <strong>green <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles" target="_blank" rel="noopener">hydrogen</a></strong> in the budget was in line with technological development and with a long-term vision towards <strong>reduced dependency on minerals and rare-earth element</strong>-based batteries as energy storage.
<ul style="list-style-type: circle;">
<li>Hydrogen is the key clean fuel for the future.</li>
</ul>
</li>
<li>For the first time there is<strong> private financing of ₹18,000 crore for 20,000 buses</strong> and innovative financing with <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>Public Private Partnerships</strong> </a>which would revolutionise the way public transport systems and buses function in India.
<ul style="list-style-type: circle;">
<li>The initiative is to promote<strong> less dependency on personal vehicles</strong> and eventually <strong>bring down the carbon footprints.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Hydrogen Energy Mission</strong></p>
<ul style="list-style-type: square;">
<li>The National Hydrogen Energy Mission <strong>aims to reduce petroleum use, greenhouse gas emissions, and air pollution,</strong> and contribute to more diverse and <strong>efficient energy infrastructure.</strong></li>
<li>It is now proposed to launch a Hydrogen Energy Mission in 2021-22 for generating <strong>hydrogen from green power sources.</strong></li>
<li>Green Hydrogen Mission is not only<strong> essential to decarbonise heavy industries</strong> like steel and cement, it also <strong>holds the key to clean electric mobility</strong> that doesn&rsquo;t depend on rare minerals.</li>
</ul>
<p><strong>Vehicle Scrappage Policy</strong></p>
<ul style="list-style-type: square;">
<li>The policy will be launched to <strong>phase out old and unfit vehicles.</strong>
<ul style="list-style-type: circle;">
<li>Under the scheme <strong>private vehicles older than 20 years and commercial vehicles older than 15 years</strong> will be eligible to be scrapped.</li>
</ul>
</li>
<li>This will help in<strong> encouraging fuel efficient, environment friendly vehicles</strong> thereby reducing vehicular pollution and oil import bill.
<ul style="list-style-type: circle;">
<li>Vehicles would undergo<strong> fitness tests in automated fitness centres</strong> after their defined period is over.</li>
</ul>
</li>
</ul>
</div>
<h3>Green Energy and Government</h3>
<ul style="list-style-type: square;">
<li><strong>India in leading countries:</strong> India comes in the list of the leading countries in terms of the <a href="/daily-updates/daily-news-editorials/power-sector-in-india" target="_blank" rel="noopener"><strong>Power Sector</strong> </a>or the <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan#:~:text=The%20renewable%20energy%20capacity%20in,year%20as%20we%20move%20forward" target="_blank" rel="noopener"><strong>Renewable Energy</strong></a> sector.
<ul style="list-style-type: circle;">
<li>India ranks at the<strong> fifth position among the countries of the world</strong> when it comes to the size of its <strong>energy economy.</strong></li>
<li>India is the <strong>fourth largest solar installed capacity country</strong> in the world and<strong> third largest renewable energy installed capacity</strong> country in the world.</li>
</ul>
</li>
<li><strong>Solar energy:</strong> The <a href="/daily-updates/daily-news-analysis/india-may-miss-100-gw-solar-power-target-by-2022-crisil-report#:~:text=Jawaharlal%20Nehru%20National%20Solar%20Mission,of%2020%2C000%20MW%20by%202022.&amp;text=The%20target%20will%20principally%20comprise,Grid%20Connected%20Solar%20Power%20Projects" target="_blank" rel="noopener"><strong>Jawaharlal Nehru National Solar Mission (JNNSM)</strong> </a>aimed to achieve<strong> 20 GW</strong> solar capacity by the year <strong>2022.</strong>
<ul style="list-style-type: circle;">
<li>However, the target was increased from <strong>20 GW to 100 GW by 2022</strong> in the 2015 Union Budget of India.</li>
<li>India&rsquo;s total solar power capacity alone has increased by more than 11 times since 2014 to June 2020, from <strong>2.6 GigaWatts (GW) to 38 GW.</strong></li>
<li>To encourage domestic production, the duties on <strong>solar inverters</strong> have been increased from <strong>5% to 20%,</strong> and on<strong> solar lanterns</strong> from<strong> 5% to 15%.</strong></li>
</ul>
</li>
<li><strong>Renewable energy:</strong> The Government of India had set a target of <strong>175 GW</strong> renewable power installed capacity by the end of 2022.
<ul style="list-style-type: circle;">
<li>This includes <strong>60 GW from wind power, 100 GW from solar power, 10 GW from biomass power</strong> and<strong> 5 GW from small hydro power.</strong>
<ul style="list-style-type: disc;">
<li>The renewable energy capacity in India is <strong>currently 136 Giga Watts,</strong> which is about <strong>36%</strong> of its total energy capacity.</li>
</ul>
</li>
<li>The <strong>2030 renewable targets</strong> were announced to be<strong> 450 gigawatt.</strong></li>
</ul>
</li>
<li><strong>Green energy and infrastructure development:</strong> The budget primarily focuses on spending on infrastructure development and no infrastructure project can be completed without energy involved in it
<ul style="list-style-type: circle;">
<li>However, in the present context, the energy involved has to be<strong> clean energy.</strong></li>
<li>The solar energy at present is<strong> available at 2 rs/unit</strong> which is even cheaper than the energy generated from a new coal power plant.</li>
<li>The domestic manufacturing capacity has been enhanced by the PLI schemes for manufacturing solar panels.
<ul style="list-style-type: disc;">
<li>Through the 2021-22 budget, the PLI scheme has been extended to the 10 sectors including <strong>automobile, pharma,</strong> electronic/<strong>technology</strong> products and manufacturing of <strong>advanced chemical cells battery</strong> (for electric vehicles).</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Advanced Chemistry Cells (ACCs)</strong></p>
<ul style="list-style-type: square;">
<li>ACCs are the new generation advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.</li>
</ul>
</div>
<h3>Green Hydrogen</h3>
<ul style="list-style-type: square;">
<li>The Hydrogen Energy Mission is one of the biggest announcements in the union budget 2021-22, specifying the<strong> hydrogen as green hydrogen.</strong>
<ul style="list-style-type: circle;">
<li>When hydrogen is extracted from water using electrolysis powered by renewable energy, it is called green hydrogen.</li>
</ul>
</li>
<li>Green hydrogen energy is vital for India to meet its <a href="/current-affairs-news-analysis-editorials/news-editorials/11-07-2019" target="_blank" rel="noopener"><strong>Nationally Determined Contribution (INDC) Targets</strong> </a>and ensure regional and national energy security, access and availability.</li>
<li>Currently, about<strong> 6 tonnes of hydrogen is produced</strong> in the country which will go up by <strong>5 times in 2050.</strong></li>
</ul>
<p><strong>Why Green Hydrogen?</strong></p>
<ul style="list-style-type: square;">
<li>Hydrogen can act as an<strong> energy storage option,</strong> which would be essential to meet intermittencies (of renewable energy) in the future.</li>
<li>In terms of mobility, for long distance mobilisations for either urban freight movement within cities and states or for passengers, it is a very promising initiative.
<ul style="list-style-type: circle;">
<li>Hydrogen can be used in railways, large ships, buses or trucks where electric-vehicles have a limitation for not having enough capacity for long distance travels.</li>
</ul>
</li>
<li>Hydrogen has the potential to be the key renewable target in supporting infrastructure as well.</li>
<li>Hydrogen can be used:
<ul style="list-style-type: circle;">
<li>As a carrier</li>
<li>As a fuel cum energy storage alternative for petrol and diesel</li>
<li>Directly as a <strong><a href="/daily-updates/daily-news-analysis/clean-fuel-hydrogen" target="_blank" rel="noopener">fuel</a></strong></li>
</ul>
</li>
<li>Countries across the world such as <strong>Japan</strong> are banging on hydrogen as a future energy media.
<ul style="list-style-type: circle;">
<li><strong>Germany</strong> and many other <strong>EU countries</strong> have already set an<strong> ambitious green hydrogen policy.</strong></li>
<li>Even countries like<strong> UAE</strong> and <strong>Australia</strong> that are traditionally considered as the laggards of climate action have moved towards green hydrogen.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated</h3>
<ul style="list-style-type: square;">
<li>In terms of challenges the <strong>cost of renewable electricity from</strong> hydrogen specifically, is the major problem. Public investments need to strategize and channel well.
<ul style="list-style-type: circle;">
<li>Moreover, currently hydrogen is around <strong>$6- $8/kg</strong> which is a price too high to bring it into conventional use.</li>
</ul>
</li>
<li>The other main hurdle is <strong>transporting hydrogen</strong> to long distances.
<ul style="list-style-type: circle;">
<li>Hydrogen in gaseous form is highly inflammable.</li>
<li>To ship liquid hydrogen, it needs to be chilled to -253&deg;C.</li>
</ul>
</li>
<li>Compared to other gases (or fuels),<strong> hydrogen lacks smell,</strong> which makes any<strong> leak detection almost impossible</strong> thus increasing the potential dangers.</li>
<li>To succeed as a renewable energy based economy, it is <strong>not just the manufacturing sector</strong> where India would want to excel but the<strong> entire supply chain.</strong>
<ul style="list-style-type: circle;">
<li>Currently, India is at about <strong>2-3 gw of solar photovoltaic</strong> module manufacturing capacity.</li>
<li>For the given 450 gw renewable targets for 2030, India needs <strong>30-40 gw of capacity addition</strong> of renewables per year which requires having:
<ul style="list-style-type: disc;">
<li>Maximum domestic manufacturing capability</li>
<li>Increasing the custom duty on solar panels as it will incentivise domestic players in india to set up manufacturing of solar panels and making the entire supply chain robust.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Pilot initiatives:</strong> India needs a strategy in place to launch such a big mission, such as a <strong>few pilot initiatives.</strong>
<ul style="list-style-type: circle;">
<li>Hydrogen is one of the alternative sources of energy that India really needs to consider from its energy security perspective and transportation or mobilisation.</li>
</ul>
</li>
<li><strong>Efforts at all levels:</strong> The budget perspective presses that a lot more needs to be done <strong>not only at center but at state level too.</strong>
<ul style="list-style-type: circle;">
<li>More than 11 states in India now have rolled out their own electric mobility plans and are focussing not only at manufacturing or job but also in <strong>demand creation.</strong></li>
</ul>
</li>
<li><strong>Exploring &ldquo;All&rdquo;ternatives:</strong> Not sticking to just one alternate resource but exploring other sources too.
<ul style="list-style-type: circle;">
<li>For either intra or inter-city movements, different technologies can co-exist and can give different contributions.</li>
<li>1 kg of hydrogen can work about 100 km but roughly it would take 7-8 litres of petrol for the same distance.</li>
</ul>
</li>
<li><strong>Incentivising the concept of green and clean energy: Green labelling of products</strong> needs to be in place so that consumers are aware that what they are consuming is environment friendly.
<ul style="list-style-type: circle;">
<li>In order to push them into using green energy, they must be<strong> made aware of the benefits</strong> of the energy they are consuming. Also, there can be<strong> extensive marketing and awareness campaigns.</strong></li>
</ul>
</li>
<li><strong>Capacity building:</strong> It should not only be about awareness but also about building the capacity of the industries so that we have manufacturing in place and eventually more job opportunities.
<ul style="list-style-type: circle;">
<li>Planning a road map where we generate employment while setting up green energy infrastructure and reducing carbon emission.</li>
</ul>
</li>
<li><strong>Exclusive expenditure on R&amp;D:</strong> There should be a good spending on R&amp;D and technology adoption in hydrogen energy and e-Vehicles because that is one area where India had a setback in Solar Photovoltaics.
<ul style="list-style-type: circle;">
<li>More capital infusion in R&amp;D and infrastructure is needed to reap the benefits of various geographical locations in terms of solar energy and an emerging untapped option of hydrogen energy to replace conventional energy.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Moving towards Green Energy is indeed a win-win situation; it will lead to not only the usage of cleaner energy for a cleaner environment but also it will boost various sectors of manufacturing and employment.</li>
</ul>',
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	(int) 10 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7644,
		'category_id' => (int) 22,
		'title' => 'Infrastructure Push',
		'description' => '<div class="border">
<p>This article is based on <a href="https://www.thehindu.com/opinion/lead/infrastructure-push-now-fiscal-consolidation-later/article33776405.ece" target="_blank" rel="noopener"><strong>&ldquo;Infrastructure push now, fiscal consolidation later&rdquo;</strong> </a>which was published in The Hindu on 08/02/2021. It talks about the concerns related to infrastructure development in India.</p>
</div>
<p>Presently, the Indian economy is facing an acute economic crisis, triggered Covid-19 pandemic. The National Statistical Office has estimated that the economy would shrink by 7.7%. Against this background, <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-infrastructure" target="_blank" rel="noopener"><strong>Budget 2021</strong></a> has provided a reasonable stimulus to infrastructure growth.</p>
<p>However, apart from concerns emanating from the rising fiscal deficit, infrastructure development in India has its own issues. Thus, if the Indian economy wants to reap intended benefits and minimize risks of contemplated fiscal stimulus, there is a need to carry out reforms that impede the development of Infrastructure.</p>
<h3>Some of the Proposed Budget Initiatives</h3>
<ul style="list-style-type: square;">
<li>Setting up of a Development Finance Institution (DFI) with an initial capital of ₹20,000 crores, to serve as a catalyst for facilitating infrastructure investment.</li>
<li>The budgeted increase in capital outlay would provide the central government&rsquo;s share to the <strong><a href="/loksabha-rajyasabha-discussions/the-big-picture-national-infrastructure-pipeline-nip-dashboard" target="_blank" rel="noopener">National Infrastructure Pipeline (NIP)</a>.</strong></li>
<li>An important initiative pertains to the launching of a National Monetisation Pipeline. <br />
<ul style="list-style-type: circle;">
<li>This would be the first practical step towards asset monetization.</li>
</ul>
</li>
<li>In order to manage the non-performing assets of public sector banks, there is a proposal to set up a Bad Bank.</li>
</ul>
<h3>Issues Related To Infrastructure Development</h3>
<ul style="list-style-type: square;">
<li><strong>Revenue Shortfall:</strong> Slippage in revenue estimates may not be ruled out on account of the realization of lower than anticipated increases in nominal GDP growth, direct tax buoyancy, and disinvestment targets.</li>
<li><strong>Lesser Funds With States:</strong> The Union government has accepted the<a href="/daily-updates/daily-news-analysis/j-k-and-15th-finance-commission#:~:text=The%2015th%20Finance%20Commission,April%202020%20to%20March%202025." target="_blank" rel="noopener"><strong> 15<sup>th</sup> Finance Commission report recommendation</strong></a>, according to which vertical share of tax devolution from the center to states has been reduced 42% to 41%.<br />
<ul style="list-style-type: circle;">
<li>Moreover, the central government increasingly resort to the imposition of cesses which are almost permanent have reduced the shareable pool.</li>
</ul>
</li>
<li><strong>Issues Associated With Burgeoning Fiscal Deficit:</strong> Infrastructure development in India will be funded by fiscal stimulus.<br />
<ul style="list-style-type: circle;">
<li>This can be reflected as the Centre has indicated taking the fiscal deficit to 4.5% of GDP by 2025-26.</li>
<li>However, the rising fiscal deficit can cause macro-economic stability issues like high inflation, crowding out, a downgrade of international ratings, etc.</li>
</ul>
</li>
<li><strong>Issues Associated With Bad Bank:</strong> Finding buyers for bad assets in a pandemic hit economy will be a challenge, especially when governments are facing the issue of containing the fiscal deficit.<br />
<ul style="list-style-type: circle;">
<li>Also, the <a href="/daily-updates/daily-news-editorials/bad-bank" target="_blank" rel="noopener"><strong>bad bank idea</strong></a> is like shifting loans from one government pocket (the public sector banks) to another (the bad bank).</li>
</ul>
</li>
<li><strong>Structural Problems:</strong> Due to land acquisition delays and litigation issues, the rate of implementation of projects is very slow on global standards. <br />
<ul style="list-style-type: circle;">
<li>Further, getting approvals are very difficult in terms of land access, environmental clearances, impending litigation in court delays the infrastructure projects.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Multi-Stakeholder Approach:</strong> The success of the infrastructure expansion plan would depend on other stakeholders of the pipeline playing their due role. <br />
<ul style="list-style-type: circle;">
<li>These include State governments and their public sector enterprises and the private sector.</li>
<li>In this context, the Fifteenth Finance Commission has recommended the setting up of a High-Powered Intergovernmental Group to re-examine the fiscal responsibility legislations of the Centre and States.</li>
</ul>
</li>
<li><strong>National Infrastructure Pipeline:</strong> The NIP is a step in the right direction. <br />
<ul style="list-style-type: circle;">
<li>However, there is a need to facilitate the assimilation of data and information from all the stakeholders like Central and State Governments, Urban Local Bodies, Banks and Financial Institution, PE funds, and private investors, both local and foreign on one platform to increase accountability and transparency in the infrastructure sector.</li>
</ul>
</li>
<li><strong>Banking Reforms:</strong> So long as Public sector bank managements remain beholden to politicians and bureaucrats, their deficit in professionalism will remain and subsequently, prudential norms in lending will continue to suffer. <br />
<ul style="list-style-type: circle;">
<li>Therefore, the debate regarding setting up a bad bank must be preceded by proper implementation of holistic reforms in the banking sector, as envisaged under the IndraDhanush plan.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>Huge fiscal stimulus, provided by the government in the Budget 2021 is a step in the right direction. However, it needs to address structural and macroeconomic stability concerns, emanating from high public expenditure.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #f8fff7;">
<p><span style="color: #333399;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>If the Indian economy wants to reap intended benefits and minimize risks of contemplated fiscal stimulus, there is a need to carry out reforms that impede the development of Infrastructure. Analyze.</p>
</td>
</tr>
</tbody>
</table>',
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	(int) 11 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7606,
		'category_id' => (int) 22,
		'title' => 'Fiscal Activism',
		'description' => '<div class="border">
<p>This article is based on <a href="https://www.thehindu.com/opinion/op-ed/its-goodbye-to-fiscal-orthodoxy/article33734312.ece" target="_blank" rel="noopener"><strong>&ldquo;It&rsquo;s goodbye to fiscal orthodoxy&rdquo;</strong> </a>which was published in The Hindu on 03/02/2021. It talks about government departure from rigid adherence to fiscal consolidation.</p>
</div>
<p>Affected by the Covid-19 pandemic, the flailing Indian economy is marked by contracting GDP requiring a push from the government. In this scenario, the government has resorted to Keynesian economics (government&rsquo;s spending rather than the free hand of the market).</p>
<p>The<a href="/current-affairs-news-analysis-editorials/news-analysis/03-02-2021#7605" target="_blank" rel="noopener"><strong> Budget 2021</strong></a> is a selective departure from the principles of the free market. The government adheres to market orthodoxy elements, such as privatization and a greater role for foreign direct investment but sought to spend more to spur growth.</p>
<p>This can be reflected by the fact that the Finance Minister&rsquo;s speech pledges to lower the fiscal deficit to 4.5% of GDP by 2025-26 and promised to introduce an amendment to the FRBM Act to formalize the new targets (the present target as per the <a href="/daily-updates/daily-news-analysis/flexibility-under-the-frbm-act" target="_blank" rel="noopener"><strong>FRBM Act</strong></a> is of 3%).</p>
<p>Thus, the Budget marks an important departure from one of the key tenets of the Washington Consensus, the framework for market-oriented economics that has dominated policy-making in most parts of the world. Though this is a step in the right direction, it has some key macroeconomic stability concerns.</p>
<p><a href="http://www.drishtiias.com/images/uploads/1612355811_image%200.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1612355811_image 0.png" style="display: block; margin-left: auto; margin-right: auto;" width="500" caption="false" /></a></p>
<h3>Departure From The Principles of Free-Market Economics</h3>
<ul style="list-style-type: square;">
<li><strong>Budget 2021 rests on six pillars:</strong> Health and well-being, physical &amp; financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation, and R&amp;D, and minimum government-maximum governance.</li>
<li>This will require a major increase in funding, not only from the Central Government but also from the states and the private sector. This can be reflected in some of the following highlights of the budget:
<ul style="list-style-type: circle;">
<li>The present budget presents <strong>a whopping 34.5% increase</strong> in budget allocation &mdash; Rs 5.54 lakh crore.</li>
<li>The Budget has proposed a new bad bank framework to deal with the problem of non-performing assets. Given the magnitude of NPA, a huge amount of capital will be required to finance it.</li>
<li>The government also announced the setting up of a development finance institution to provide long-term financing for infrastructure projects.</li>
</ul>
</li>
</ul>
<h3>Reasons for Departure From Fiscal Orthodoxy</h3>
<p><strong>Departure From Rigid Adherence To Fiscal Consolidation</strong></p>
<ul style="list-style-type: square;">
<li>The Economic Survey that preceded the Budget laid the groundwork for a departure from rigid adherence to fiscal consolidation.</li>
<li>It has a quote from <strong>economist Olivier Blanchard,</strong> &ldquo;If the interest rate paid by the government is less than the growth rate, then the intertemporal budget constraint facing the government no longer binds.&rdquo;</li>
<li>According to the Economic Survey, in the current situation, expansionary fiscal policy will boost growth, and given India&rsquo;s growth potential, we do not have to worry about debt sustainability until 2030.</li>
</ul>
<div class="border-bg">
<p><strong>Intertemporal Budget Constraint</strong></p>
<ul style="list-style-type: square;">
<li>The &ldquo;intertemporal budget constraint&rdquo; means that any debt outstanding today must be offset by a future source of revenue of income.</li>
<li>Blanchard was saying that intertemporal budget constraint doesn&rsquo;t apply if the Interest Rate-Growth Differential (IRGD), the difference between the interest rate and growth rate, becomes negative.</li>
<li>In the advanced economies, as interest rates have turned negative, Blanchard&rsquo;s condition has been met. So governments there do not have to worry that deficits will render public debt unsustainable.</li>
</ul>
</div>
<p><strong>Idea Supported By IMF &amp; World Bank</strong></p>
<ul style="list-style-type: square;">
<li>The International Monetary Fund (IMF) and the World Bank, both flag-bearers of the Washington Consensus, have been urging a departure from fiscal orthodoxy in the wake of the pandemic.</li>
<li>Both these institutions used to be wary of any increase in the public debt to GDP ratio beyond 100%.</li>
<li>Today, they are urging the advanced economies to spend more by running up deficits even when the debt to GDP ratio is poised to rise to 125% by the end of 2021.</li>
</ul>
<h3>Key Macroeconomic Stability Issues</h3>
<ul style="list-style-type: square;">
<li><strong>Inflation May Rise:</strong> There is a concern that a large fiscal deficit can fuel a rise in inflation.
<ul style="list-style-type: circle;">
<li>Further, it is more than likely that a change in the fiscal consolidation targets will require a change in the inflation target of 4% set for India&rsquo;s Reserve Bank. However, the Budget makes no mention of such a possibility.</li>
</ul>
</li>
<li><strong>Low Tax-to GDP Ratio:</strong> Another concern is that, with the tax to GDP ratio not rising as expected, the government has to focus on garnering more non-tax revenues through strategic disinvestment, privatization, and monetization of non-core assets.
<ul style="list-style-type: circle;">
<li>However, these measures have their own issues.</li>
</ul>
</li>
<li><strong>Disinvestment, A High-Risk Strategy:</strong> The sale of public assets has become crucial to a reduction in fiscal deficits in the years ahead. However, this is a high-risk strategy.
<ul style="list-style-type: circle;">
<li>For years now, revenues from disinvestment have fallen short of targets. For example, Air India&rsquo;s sale, which was begun in 2018, is still dragging on.</li>
<li>Moreover, selling public assets is politically contentious due to public sector unions and job losses.</li>
</ul>
</li>
<li><strong>Downgrade of Ratings:</strong> An important consideration is a fear that the rating agencies would downgrade India if total public debt crossed say, 10%-11% of GDP.
<ul style="list-style-type: circle;">
<li>That is a risk that cannot be wished away unless the rating agencies have decided to toe the IMF-World Bank line on fiscal deficits.</li>
</ul>
</li>
<li><strong>Conflicting With AtmaNirbharta:</strong> Moreover, large-scale privatization almost always involves substantial FDI. Increasing FDI will result in a large rise in foreign presence in the domestic economies.
<ul style="list-style-type: circle;">
<li>However, a rise in FDI may not reconcile with Atmanirbhar Bharat which connotes greater self-reliance and stronger Indian companies.</li>
</ul>
</li>
<li><strong>Crowding Out Effect:</strong> As the government adopts an expansionary fiscal policy stance and increases its spending to boost economic activity.
<ul style="list-style-type: circle;">
<li>This leads to an increase in interest rates. Increased interest rates affect private investment decisions.</li>
<li>A high magnitude of the crowding-out effect may even lead to lesser income in the economy.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>A departure from fiscal orthodoxy is welcome. But the government needs to think of ways to make it more sustainable.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fdfff2;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Budget 2021 is a departure from a key tenet of the Washington Consensus. Analyze.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/THnDWC5xQEs" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://www.thehindu.com/opinion/editorial/getting-back-on-track/article33721360.ece" target="_blank" rel="noopener"><strong>&ldquo;Getting back on track: on Union Budget 2021&rdquo;</strong></a> published in The Hindu on February 2<sup>nd</sup>, 2020. Now watch this on our Youtube channel.</p>',
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	(int) 12 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7605,
		'category_id' => (int) 21,
		'title' => 'Budget 2021 Highlights: Minimum Government, Maximum Governance and Fiscal Position',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Minister of Finance presented the Union <a href="/to-the-points/paper3/government-budgeting#:~:text=According%20to%20Article%20112%20of,Annual%20Financial%20Statement%20(AFS).&amp;text=The%20economic%20and%20financial%20policy,introduction%20of%20new%20schemes%2Fprojects." target="_blank" rel="noopener"><strong>Budget</strong></a> 2021-22. This was the <strong>first digital budget.</strong></p>
<ul style="list-style-type: square;">
<li>This section deals with the theme<strong> &lsquo;Minimum Government, Maximum Governance&rsquo;</strong> and <strong>Fiscal Position of the government.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Minimum Government, Maximum Governance:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>National Commission for Allied Healthcare Professionals</strong> already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professions.</li>
<li>The<strong> National Nursing and Midwifery Commission Bill</strong> introduced for the same in the nursing profession.</li>
<li><strong>Proposed Conciliation Mechanism</strong> with mandate for quick resolution of contractual disputes with Central Public Sector Enterprises (CPSEs).</li>
<li>Rs. 3,768 crore allocated for<strong> first digital census in the history of India.</strong></li>
<li>Rs. 300 crore grant to the Government of Goa for the diamond jubilee celebrations of the <strong>state&rsquo;s liberation from Portuguese.</strong></li>
<li>Rs. 1,000 crore for the <strong>welfare of Tea workers</strong> especially women and their children in Assam and West Bengal through a special scheme.</li>
</ul>
</li>
<li><strong>Fiscal Position:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/increased-fiscal-deficit" target="_blank" rel="noopener"><strong>Fiscal deficit</strong></a> stands at 9.5% of the<a href="/printpdf/base-year-for-gdp-calculations#:~:text=GDP%20calculation%20in%20India,difference%20between%20exports%20and%20imports)." target="_blank" rel="noopener"><strong> Gross Domestic Product (GDP)</strong></a>, and is estimated to be 6.8% in 2021-22.</li>
<li>Plan <strong>to continue on the path of fiscal consolidation,</strong> achieving a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the period.<br />
<ul style="list-style-type: disc;">
<li>Amendment to <a href="/to-the-points/paper3/government-budgeting" target="_blank" rel="noopener"><strong>Fiscal Responsibility and Budget Management (FRBM) Act</strong></a> proposed to achieve targeted Fiscal Deficit levels.</li>
</ul>
</li>
<li>The<a href="/daily-updates/daily-news-analysis/mp-s-salaries-cut-and-mplads-suspended" target="_blank" rel="noopener"><strong> Contingency Fund of India</strong> </a>is to be augmented from Rs. 500 crore to Rs. 30,000 crore through Finance Bill.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1612424389_drishti_ias_budget.jpeg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1612424389_drishti_ias_budget.jpeg" width="566" height="319" style="display: block; margin-left: auto; margin-right: auto;" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Recommendations of Fifteenth Finance Commission:</strong><br />
<ul style="list-style-type: circle;">
<li>The final report covering 2021-26 was submitted to the President, retaining vertical <strong>shares of states at 41%.</strong></li>
<li>Funds to UTs of Jammu and Kashmir and Ladakh would be provided by the Centre.</li>
<li>On the Commission&rsquo;s recommendation, <strong>Rs. 1,18,452 crore have been provided as Revenue Deficit Grant to 17 states in 2021-22,</strong> as against Rs. 74,340 crore to 14 states in 2020-21.</li>
</ul>
</li>
<li><strong>Tax Proposals:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>No exemption on interest,</strong> if Provident Fund PF contribution is more than Rs. 2.5 lakh.</li>
<li><strong>Exemption from filing tax returns for senior citizens</strong> over 75 years of age and having only pension and interest income; tax to be deducted by paying the bank.</li>
<li><strong>Income Tax settlement commission</strong> abolished.</li>
<li><strong>Higher Tax Collection</strong> at Source rate for <strong>non-filers.</strong></li>
<li>Reducing time to file belated returns.</li>
<li><strong>Agriculture Infrastructure and Development Cess (AIDC)</strong> on a small number of items.</li>
<li><strong>Dispute Resolution Committee</strong> to be set up for taxpayers with taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakh.</li>
<li><strong>National Faceless Income Tax Appellate Tribunal Centre</strong> to be established.</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1693907" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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	(int) 13 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7604,
		'category_id' => (int) 21,
		'title' => 'Budget 2021 Highlights: Inclusive Development for Aspirational India and Reinvigorating Human Capital',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Finance Minister presented the Union <a href="/to-the-points/paper3/government-budgeting#:~:text=According%20to%20Article%20112%20of,Annual%20Financial%20Statement%20(AFS).&amp;text=The%20economic%20and%20financial%20policy,introduction%20of%20new%20schemes%2Fprojects." target="_blank" rel="noopener"><strong>Budget</strong></a> 2021-22. This was the<strong> first digital budget.</strong></p>
<ul style="list-style-type: square;">
<li>This section deals with the theme <strong>&lsquo;Inclusive Development for Aspirational India and Reinvigorating Human Capital&rsquo;.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Inclusive Development for Aspirational India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Agriculture:</strong><br />
<ul style="list-style-type: disc;">
<li>Ensured <a href="/daily-updates/daily-news-analysis/minimum-support-price" target="_blank" rel="noopener"><strong>Minimum Support Price (MSP)</strong></a> at minimum 1.5 times the cost of production across all commodities.</li>
<li><a href="/daily-updates/daily-news-analysis/svamitva-scheme" target="_blank" rel="noopener"><strong>SWAMITVA Scheme</strong></a> to be extended to all States/UTs.</li>
<li><a href="/to-the-points/paper3/operation-greens-ttp-1-1" target="_blank" rel="noopener"><strong>Operation Green Scheme</strong></a> to be extended to 22 perishable products, to boost value addition in agriculture and allied products.</li>
<li>1,000 more mandis to be integrated with the <a href="/daily-updates/daily-news-analysis/mandis-under-e-nam-increased" target="_blank" rel="noopener"><strong>National Agricultural Market (e-NAM)</strong></a> to bring transparency and competitiveness.</li>
<li><a href="/daily-updates/daily-news-editorials/agriculture-produce-to-agriculture-marketing" target="_blank" rel="noopener"><strong>APMCs (agricultural produce market committee)</strong> </a>to get access to the Agriculture Infrastructure Funds for augmenting infrastructure facilities.</li>
</ul>
</li>
<li><strong>Fisheries:</strong><br />
<ul style="list-style-type: disc;">
<li>5 major fishing harbours &ndash; Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as hubs of economic activity.</li>
<li>Multipurpose <strong><a href="/daily-updates/daily-news-analysis/pegasus" target="_blank" rel="noopener">Seaweed</a> Park</strong> in Tamil Nadu to promote seaweed cultivation.</li>
</ul>
</li>
<li><strong>Migrant Workers and Labourers:</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-editorials/one-nation-one-ration-card-3" target="_blank" rel="noopener"><strong>One Nation One Ration Card scheme</strong></a> for beneficiaries to claim rations anywhere in the country - migrant workers to benefit the most.</li>
<li><strong>Portal to collect information on unorganized labour force,</strong> migrant workers especially, to help formulate schemes for them.</li>
<li>Implementation of <strong>4 <a href="/loksabha-rajyasabha-discussions/the-big-picture-the-labour-code-bills" target="_blank" rel="noopener">labour codes</a></strong> underway:<br />
<ul style="list-style-type: disc;">
<li><strong>Social security benefits for gig and platform workers</strong> too.</li>
<li><strong>Minimum wages and coverage</strong> under the Employees State Insurance Corporation applicable for all categories of workers.</li>
<li><strong>Women workers</strong> allowed in all categories, including night-shifts with adequate protection.</li>
<li><strong>Compliance burden</strong> on employers reduced with single registration and licensing, and online returns.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Financial Inclusion:</strong><br />
<ul style="list-style-type: disc;">
<li>Under <strong>Stand Up India Scheme</strong> for <a href="/daily-updates/daily-news-editorials/reimagining-the-national-commission-for-scheduled-castes" target="_blank" rel="noopener"><strong>Scheduled Castes</strong> </a>(SC), <a href="/daily-updates/daily-news-analysis/national-commission-for-scheduled-tribes" target="_blank" rel="noopener"><strong>Scheduled Tribes</strong></a> (ST) and women,<br />
<ul style="list-style-type: disc;">
<li>Margin money requirement reduced to 15%.</li>
<li>To also include loans for allied agricultural activities.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reinvigorating Human Capital:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>School Education:</strong><br />
<ul style="list-style-type: disc;">
<li>15,000 schools to be strengthened by implementing all<a href="/daily-updates/daily-news-editorials/national-education-policy-nep-2020" target="_blank" rel="noopener"><strong> National Education Policy (NEP)</strong> </a>components. Shall act as exemplar schools in their regions for mentoring others.</li>
<li><strong>100 new Sainik Schools</strong> to be set up in partnership with NGOs/private schools/states.</li>
</ul>
</li>
<li><strong>Higher Education:</strong><br />
<ul style="list-style-type: disc;">
<li>Legislation to be introduced to set up the <strong>Higher Education Commission of India</strong> as an umbrella body with 4 separate vehicles for <strong>standard-setting, accreditation, regulation, and funding.</strong></li>
<li>Creation of formal umbrella structure to cover all Government colleges, universities, research institutions in a city for greater synergy.</li>
<li><strong>Central University to come up in Leh</strong> for accessibility of higher education in Ladakh.</li>
</ul>
</li>
<li><strong>Scheduled Castes and Scheduled Tribes Welfare:</strong><br />
<ul style="list-style-type: disc;">
<li>750 <a href="/daily-updates/daily-news-analysis/eklavya-model-residential-and-day-boarding-schools" target="_blank" rel="noopener"><strong>Eklavya model residential schools</strong></a> in tribal areas.</li>
<li>Revamped <a href="/daily-updates/daily-news-analysis/scholarship-schemes-in-india#:~:text=Post%20Matric%20Scholarship%20for%20SCs,government%20and%20Union%20Territory%20administration.&amp;text=The%20scholarship%20is%20available%20for,2%2C50%2C000%20per%20annum%20." target="_blank" rel="noopener"><strong>Post Matric Scholarship Scheme</strong></a> for welfare of SCs.</li>
</ul>
</li>
<li><strong>Skilling:</strong><br />
<ul style="list-style-type: disc;">
<li>Proposed amendment to Apprenticeship Act to enhance opportunities for youth.</li>
<li>Rs. 3000 crore for realignment of existing <strong>National Apprenticeship Training Scheme (NATS)</strong> towards post-education apprenticeship, training of graduates and diploma holders in Engineering.</li>
<li>Initiatives for<strong> partnership with other countries</strong> in skilling to be taken forward, similar to partnership:<br />
<ul style="list-style-type: disc;">
<li><strong>With UAE</strong> to benchmark skill qualifications, assessment, certification, and deployment of certified workforce.</li>
<li><strong>With Japan</strong> for a collaborative <strong>Technical Intern Training Programme (TITP)</strong> to transfer skills, technique and knowledge.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Innovation and Research &amp; Development:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>National Language Translation Mission (NTLM)</strong> to make governance-and-policy related knowledge available in major Indian languages.</li>
<li>PSLV-CS51 to be launched by <a href="/daily-updates/daily-news-analysis/private-sector-participation-in-space#:~:text=Global%20technology%20powerhouse.-,New%20Space%20India%20Limited,of%20the%20Department%20of%20Space." target="_blank" rel="noopener"><strong>New Space India Limited (NSIL)</strong> </a>carrying Brazil&rsquo;s Amazonia Satellite and some Indian satellites.</li>
<li>As part of the<a href="/daily-updates/daily-news-analysis/gaganyaan-6" target="_blank" rel="noopener"><strong> Gaganyaan mission</strong> </a>activities:<br />
<ul style="list-style-type: disc;">
<li>4 Indian astronauts being trained on Generic Space Flight aspects, in Russia.</li>
<li>First unmanned launch is slated for December 2021.</li>
</ul>
</li>
<li>Rs. 4,000 crore over five years for <strong><a href="/daily-updates/daily-news-analysis/digital-ocean" target="_blank" rel="noopener">Deep Ocean Mission</a> survey</strong> exploration and conservation of deep sea biodiversity.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1693907" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7603,
		'category_id' => (int) 21,
		'title' => 'Budget 2021 Highlights: Physical and Financial Capital',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Minister of Finance presented the Union <a href="/to-the-points/paper3/government-budgeting#:~:text=According%20to%20Article%20112%20of,Annual%20Financial%20Statement%20(AFS).&amp;text=The%20economic%20and%20financial%20policy,introduction%20of%20new%20schemes%2Fprojects." target="_blank" rel="noopener"><strong>Budget</strong></a> 2021-22. This was the <strong>first digital budget.</strong></p>
<ul style="list-style-type: square;">
<li>This section deals with proposals related to <strong>Physical and Financial Capital.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Financial Capital:</strong><br />
<ul style="list-style-type: circle;">
<li>A single <strong>Securities Markets Code</strong> to be evolved.</li>
<li>To develop<strong> an investor charter</strong> as a right of all financial investors.</li>
<li>A new permanent institutional framework to help in development of the <strong><a href="/daily-updates/daily-news-analysis/green-bonds" target="_blank" rel="noopener">Bond</a> market.</strong></li>
<li>Setting up a system of<strong> Regulated Gold Exchanges.</strong>
<ul style="list-style-type: disc;">
<li><a href="/important-institutions/drishti-specials-important-institutions-national-institutions/securities-and-exchange-board-of-india-sebi" target="_blank" rel="noopener"><strong>Securities and Exchange Board of India (SEBI)</strong></a> to be notified as a regulator and Warehousing Development and Regulatory Authority to be strengthened.</li>
</ul>
</li>
<li><strong>Stressed Asset Resolution:</strong>
<ul style="list-style-type: disc;">
<li><strong>Asset Reconstruction Company Limited and Asset Management Company (<a href="/daily-updates/daily-news-analysis/bad-bank-1" target="_blank" rel="noopener">Bad Bank</a>)</strong> to be set up.</li>
</ul>
</li>
<li><strong>Increasing Foreign Direct Investment (FDI) in Insurance Sector:</strong>
<ul style="list-style-type: disc;">
<li>To <strong>increase</strong> the permissible <a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"><strong>FDI</strong></a> limit from<strong> 49% to 74%</strong> and allow foreign ownership and control with safeguards.</li>
</ul>
</li>
<li><strong>Deposit Insurance:</strong>
<ul style="list-style-type: disc;">
<li>Amendments to the <a href="/daily-updates/daily-news-analysis/deposit-insurance#:~:text=DICGC%20came%20into%20existence%20in,guarantee%20for%20banks%20in%20India." target="_blank" rel="noopener"><strong>Deposit Insurance and Credit Guarantee Corporation Act, 1961</strong></a>, to help depositors get easy and time-bound access to their deposits to the extent of the deposit insurance cover.
<ul style="list-style-type: disc;">
<li>Deposit insurance <strong>increased from Rs. 1 lakh to Rs. 5 lakh</strong> for bank depositors.</li>
</ul>
</li>
<li>Minimum loan size eligible for debt recovery under the <a href="/daily-updates/daily-news-analysis/co-operative-banks-under-sarfaesi-act" target="_blank" rel="noopener"><strong>Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002</strong> </a>proposed to be reduced from Rs. 50 lakh to Rs. 20 lakh for NBFCs with minimum asset size of Rs. 100 crore.</li>
</ul>
</li>
</ul>
</li>
<li><strong>For Companies and Firms:</strong>
<ul style="list-style-type: circle;">
<li>To <a href="/daily-updates/daily-news-analysis/decriminalisation-of-offences-under-llp-act#:~:text=Recently%2C%20the%20Company%20Law%20Committee,doing%20business%20for%20LLP%20firms." target="_blank" rel="noopener"><strong>decriminalize the Limited Liability Partnership (LLP) Act, 2008.</strong></a></li>
<li>Easing Compliance requirement of Small companies by revising their definition under <a href="/daily-updates/daily-news-analysis/companies-amendment-bill-2019" target="_blank" rel="noopener"><strong>Companies Act, 2013.</strong></a></li>
<li>Promoting <a href="/daily-updates/daily-news-editorials/startups-in-india-1" target="_blank" rel="noopener"><strong>start-ups</strong></a> and innovators by incentivizing the incorporation of <strong>One Person Companies (OPCs).</strong></li>
<li>To ensure faster resolution of cases by:
<ul style="list-style-type: disc;">
<li>Strengthening <a href="/daily-updates/daily-news-analysis/national-company-law-appellate-tribunal-nclat-1" target="_blank" rel="noopener"><strong>National Company Law Appellate Tribunal (NCLAT)</strong></a> framework.</li>
<li>Implementation of <a href="/loksabha-rajyasabha-discussions/the-big-picture-virtual-courts-and-way-forward" target="_blank" rel="noopener"><strong>e-Courts</strong> </a>system.</li>
<li>Introduction of alternate methods of debt resolution and special framework for <a href="/current-affairs-news-analysis-editorials/news-editorials/13-07-2019" target="_blank" rel="noopener"><strong>Micro, Small and Medium Enterprises (MSMEs)</strong></a>.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Disinvestment and Strategic Sale:</strong>
<ul style="list-style-type: circle;">
<li>New policy for <a href="/to-the-points/paper3/strategic-disinvestment-1" target="_blank" rel="noopener"><strong>Strategic Disinvestment</strong> </a>approved; <strong>Central Public Sector Enterprises (CPSEs) except in four strategic areas</strong> to be privatized.</li>
<li><a href="/daily-updates/daily-news-analysis/initial-public-offer-ipo" target="_blank" rel="noopener"><strong>Initial Public Offering (IPO)</strong></a> of <a href="/daily-updates/daily-news-analysis/domestic-systemically-important-banks" target="_blank" rel="noopener"><strong>Life Insurance Corporation (LIC)</strong></a> in 2021-22.</li>
<li><strong>Special Purpose Vehicle</strong> in the form of a company to monetize idle land.</li>
<li>Introducing a <strong>revised mechanism</strong> for ensuring timely <strong>closure of sick or loss making CPSEs.</strong></li>
</ul>
</li>
<li><strong>Government Financial Reforms:</strong>
<ul style="list-style-type: circle;">
<li><strong>Treasury Single Account (TSA) System for Autonomous Bodies</strong> to be extended for universal application.</li>
<li>Separate Administrative Structure to streamline the <a href="/daily-updates/daily-news-analysis/steps-to-boost-ease-of-doing-business" target="_blank" rel="noopener"><strong>Ease of Doing Business</strong></a> for Cooperatives.</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1693907" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7602,
		'category_id' => (int) 21,
		'title' => 'Budget 2021 Highlights: Infrastructure',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Minister of Finance presented the Union <a href="/to-the-points/paper3/government-budgeting#:~:text=According%20to%20Article%20112%20of,Annual%20Financial%20Statement%20(AFS).&amp;text=The%20economic%20and%20financial%20policy,introduction%20of%20new%20schemes%2Fprojects." target="_blank" rel="noopener"><strong>Budget</strong> </a>2021-22. This was the <strong>first digital budget.</strong></p>
<ul style="list-style-type: square;">
<li>This section deals with proposals related to <strong>Infrastructure.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Production Linked Incentive scheme (PLI):</strong><br />
<ul style="list-style-type: circle;">
<li>Rs. 1.97 lakh crore in next 5 years for <a href="/daily-updates/daily-news-analysis/expansion-of-production-linked-incentive-scheme" target="_blank" rel="noopener"><strong>PLI schemes</strong> </a>in 13 Sectors to create and nurture manufacturing global champions for an <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>AatmaNirbhar Bharat.</strong></a></li>
</ul>
</li>
<li><strong>Textiles:<a href="http://www.drishtiias.com/images/uploads/1612346861_image6.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1612346861_image6.jpg" style="float: right;" width="350" caption="false" /></a></strong><br />
<ul style="list-style-type: circle;">
<li><strong>Mega Investment Textiles Parks (MITRA) scheme</strong> to be introduced.</li>
</ul>
</li>
<li><strong>Infrastructure:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-national-infrastructure-pipeline-nip-dashboard" target="_blank" rel="noopener"><strong>National Infrastructure Pipeline (NIP)</strong></a> expanded to 7,400 projects.</li>
<li>Measures in three thrust areas to <strong>increase funding</strong> for NIP:<br />
<ul style="list-style-type: disc;">
<li><strong>Creation of institutional structures:</strong><br />
<ul style="list-style-type: disc;">
<li>Set up and capitalise a<strong> Development Financial Institution (DFI).</strong></li>
</ul>
</li>
<li>Big thrust on <strong>monetizing assets.</strong></li>
<li>Enhancing the <strong>share of capital expenditure.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Roads and Highways Infrastructure:</strong><br />
<ul style="list-style-type: circle;">
<li>Rs. 1,18,101 lakh crore, <strong>highest ever outlay,</strong> for Ministry of Road Transport and Highways.</li>
<li>New <a href="/to-the-points/paper3/industrial-corridors-2" target="_blank" rel="noopener"><strong>Economic corridors</strong></a> and <strong>Expressways</strong> being planned.</li>
<li><strong>Advanced Traffic management system</strong> in all new 4 and 6-lane highways.</li>
</ul>
</li>
<li><strong>Railway Infrastructure:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>National Rail Plan for India (2030)</strong> to create a &ldquo;future ready‟ Railway system by 2030.</li>
<li><strong>100%<a href="/daily-updates/daily-news-analysis/electrification-of-railways#:~:text=Indian%20Railways%20has%20set%20a,as%20compared%20to%202009%2D2014." target="_blank" rel="noopener"> electrification of Broad-Gauge routes</a></strong> to be completed by December, 2023.</li>
<li><a href="/daily-updates/daily-news-analysis/dedicated-freight-corridor-1" target="_blank" rel="noopener"><strong>Western Dedicated Freight Corridor (DFC) and Eastern DFC</strong></a> to be commissioned by June 2022.</li>
<li>Measures for <strong>passenger convenience and safety:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Aesthetically designed Vista Dome Linke Hofmann Busch (LHB) coach</strong> on tourist routes for better travel.</li>
<li>High density network and highly utilized network routes to have an<strong> indigenously developed automatic train protection system,</strong> eliminating train collision due to human error.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Urban Infrastructure:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Expansion of <a href="/daily-updates/daily-news-analysis/india-s-first-fully-automated-metro" target="_blank" rel="noopener">metro rail</a></strong> network and<strong> augmentation of city bus service.</strong></li>
<li><a href="/daily-updates/daily-news-analysis/metro-neo" target="_blank" rel="noopener"><strong>&lsquo;MetroLite&rsquo; and &lsquo;MetroNeo&rsquo;</strong></a> technologies will be used to provide metro rail systems at much lesser cost with similar experience.</li>
</ul>
</li>
<li><strong>Power Infrastructure:</strong><br />
<ul style="list-style-type: circle;">
<li>A comprehensive <strong>National Hydrogen Energy Mission 2021-22</strong> to be launched.</li>
<li>Rs. 3,05,984 crore over 5 years for a revamped, reforms-based and result-linked <strong>new power distribution sector scheme.</strong></li>
</ul>
</li>
<li><strong>Ports, Shipping, Waterways:</strong><br />
<ul style="list-style-type: circle;">
<li>Rs. 2,000 crore worth 7 projects to be offered in <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding." target="_blank" rel="noopener"><strong>Public Private Partnership (PPP)</strong></a>-mode in <strong>Financial Year (FY)</strong> 2021-22 for operation of major ports.</li>
</ul>
</li>
<li><strong>Petroleum &amp; Natural Gas:</strong><br />
<ul style="list-style-type: circle;">
<li>Extension of<a href="/daily-updates/daily-news-analysis/important-facts-for-prelims" target="_blank" rel="noopener"><strong> Ujjwala Scheme</strong></a> to cover 1 crore more beneficiaries.</li>
<li>A new <strong>gas pipeline</strong> project in Jammu &amp; Kashmir.</li>
<li>An independent<strong> Gas Transport System Operator</strong> to be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1693907" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7601,
		'category_id' => (int) 21,
		'title' => 'Budget 2021 Highlights: Health and Wellbeing',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Minister of Finance presented the Union <a href="/to-the-points/paper3/government-budgeting#:~:text=According%20to%20Article%20112%20of,Annual%20Financial%20Statement%20(AFS).&amp;text=The%20economic%20and%20financial%20policy,introduction%20of%20new%20schemes%2Fprojects." target="_blank" rel="noopener"><strong>Budget</strong></a> 2021-22. This was the <strong>first ever digital Union Budget.</strong></p>
<ul style="list-style-type: square;">
<li>It is based on<strong> six pillars -</strong> health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&amp;D, and 'Minimum Government, Maximum Governance'.</li>
<li>This section deals with the proposals for the Health and Wellbeing Sector.</li>
</ul>
<div class="border-bg">
<p><strong>Budget and Constitutional Provisions</strong></p>
<ul style="list-style-type: square;">
<li>According to<strong> Article 112</strong> of the Indian Constitution, the Union Budget of a year is referred to as the <strong>Annual Financial Statement (AFS).</strong></li>
<li>It is a statement of the estimated receipts and expenditure of the Government in a <strong>Financial Year</strong> (which begins on 1<sup>st</sup> April of the current year and ends on 31<sup>st</sup> March of the following year).</li>
<li>Overall, the Budget contains:<br />
<ul style="list-style-type: circle;">
<li>Estimates of revenue and capital receipts,</li>
<li>Ways and means to raise the revenue,</li>
<li>Estimates of expenditure,</li>
<li>Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year, and</li>
<li>The economic and financial policy of the coming year, i.e., taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects.</li>
</ul>
</li>
<li>In Parliament, the Budget goes through<strong> six stages:</strong><br />
<ul style="list-style-type: circle;">
<li>Presentation of Budget.</li>
<li>General discussion.</li>
<li>Scrutiny by <a href="/daily-updates/daily-news-analysis/extension-of-tenure-of-standing-committees" target="_blank" rel="noopener"><strong>Departmental Committees</strong></a>.</li>
<li>Voting on Demands for Grants.</li>
<li>Passing an Appropriation Bill.</li>
<li>Passing of Finance Bill.</li>
</ul>
</li>
<li>The <strong>Budget Division of the Department of Economic Affairs</strong> in the Ministry of Finance is the nodal body responsible for preparing the Budget.</li>
<li>The <strong>first Budget</strong> of Independent India was presented in <strong>1947.</strong></li>
</ul>
</div>
<h3>Key Points</h3>
<p><a href="http://www.drishtiias.com/images/uploads/1612347348_image11.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1612347348_image11.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Budget Outlay:</strong> Outlay for Health and Wellbeing in 2021-22 as against 2020-21 is an <strong>increase of 137%.</strong></li>
<li><strong>Major Steps:</strong> Steps being taken for improving health and wellbeing:<br />
<ul style="list-style-type: circle;">
<li><strong><strong>Vaccines:<a href="http://www.drishtiias.com/images/uploads/1612350951_image12.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1612350951_image12.jpg" style="float: right;" width="350" caption="false" /></a></strong></strong><br />
<ul style="list-style-type: disc;">
<li>Rs. 35,000 crore for <strong><a href="/daily-updates/daily-news-editorials/covid-19-vaccine-distribution" target="_blank" rel="noopener">Covid-19 vaccine</a></strong> in Budget Expenditure (BE) 2021-22.</li>
<li>The Made-in-India <a href="/daily-updates/daily-news-analysis/pneumococcal-conjugate-vaccine-1" target="_blank" rel="noopener"><strong>Pneumococcal Vaccine</strong></a> to be rolled out across the country.</li>
</ul>
</li>
<li><strong>Health Systems:</strong><br />
<ul style="list-style-type: disc;">
<li>PM <strong>AatmaNirbhar Swasth Bharat Yojana &ndash;</strong> a new centrally sponsored scheme to be launched, in addition to <a href="/daily-updates/daily-news-analysis/national-health-mission-and-janani-suraksha-yojana" target="_blank" rel="noopener"><strong>National Health Mission</strong></a> (NHM).</li>
</ul>
</li>
<li><strong>Nutrition:</strong><br />
<ul style="list-style-type: disc;">
<li><strong><a href="/daily-updates/daily-news-analysis/poshan-abhiyaan" target="_blank" rel="noopener">Mission Poshan</a> 2.0</strong> to be launched to improve nutritional outcomes across 112 aspirational districts.</li>
</ul>
</li>
<li><strong>Universal Coverage of Water Supply:</strong><br />
<ul style="list-style-type: disc;">
<li><strong><a href="/daily-updates/daily-news-analysis/jal-jeevan-mission-2" target="_blank" rel="noopener">Jal Jeevan Mission</a> (Urban) - to be launched</strong> - to bring safe water to 2.86 crore households through tap connection.</li>
</ul>
</li>
<li><strong>Swachch Bharat, Swasth Bharat:</strong><br />
<ul style="list-style-type: disc;">
<li>Strengthening of<strong> Urban <a href="/daily-updates/daily-news-analysis/Swachh%20Bharat%20Mission#:~:text=The%20Swachh%20Bharat%20Mission%20(Grameen,launched%20on%20October%202%2C%202014.&amp;text=Together%2C%20they%20aim%20to%20achieve,on%20his%20150th%20Birth%20Anniversary." target="_blank" rel="noopener">Swachh Bharat Mission</a> 2.0.</strong></li>
</ul>
</li>
<li><strong>Clean Air:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Rs. 2,217 crore to tackle air pollution,</strong> for 42 urban centers with a million plus population.</li>
</ul>
</li>
<li><strong>Scrapping Policy:</strong>
<ul style="list-style-type: disc;">
<li><strong>Voluntary</strong> vehicle scrapping policy<strong> to phase out old and unfit vehicles.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1693907" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7566,
		'category_id' => (int) 21,
		'title' => 'Missed Annual Disinvestment Targets',
		'description' => '<h3>Why in News</h3>
<p>The <strong>government has raised less than 3% of budgeted revenues from disinvestment in 2020-21.</strong> As a result, the <a href="/daily-updates/daily-news-analysis/increased-fiscal-deficit" target="_blank" rel="noopener"><strong>fiscal deficit</strong></a> for the current year is <strong>set to worsen.</strong></p>
<ul style="list-style-type: square;">
<li>The government describes fiscal deficit of India as &ldquo;the excess of total disbursements from the Consolidated Fund of India, excluding repayment of the debt, over total receipts into the Fund (excluding the debt receipts) during a financial year&rdquo;.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Disinvestment Targets for 2020-21:</strong> <br />
<ul style="list-style-type: circle;">
<li>Presenting the Union Budget of 2020, the Finance Minister had announced a <strong>disinvestment target of Rs 2.1 lakh crore.</strong> Such ambitious targets were set to keep the fiscal deficit under check.</li>
<li>However, the total disinvestment receipts from disinvestment so far this year have amounted to <strong>Rs. 17.9 thousand crore which is just around 3% of the targeted revenues. </strong></li>
</ul>
</li>
<li><strong>Reason for Low Revenues:</strong> <br />
<ul style="list-style-type: circle;">
<li>Annual<strong> targets were set three to four times the usual targeted revenue from disinvestment.</strong></li>
<li>The<strong> slow pace of sales of the public assets</strong> marked for disinvestment.</li>
<li>In the current year, all aspects of the government&rsquo;s functioning was severely impacted by the <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid-19 pandemic</strong></a>.</li>
<li>It has been in trend that except in a few years, the <strong>government has been unable to raise as much money as it wanted</strong> at the start of the year from disinvestment.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1611830230_image3.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1611830230_image3.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="550" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Meaning of Disinvestment:</strong><br />
<ul style="list-style-type: circle;">
<li>Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.</li>
<li>The <a href="/daily-updates/daily-news-editorials/privatisation-of-pses" target="_blank" rel="noopener"><strong>government undertakes disinvestment</strong></a> to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources.<br />
<ul style="list-style-type: disc;">
<li>For e.g. the Union government invests in several <a href="/to-the-points/paper3/sectors-of-indian-economy" target="_blank" rel="noopener"><strong>public sector undertakings</strong></a> (PSUs) such as Air India, Bharat Petroleum, Delhi Metro Rail Corporation etc.</li>
<li>Since it is the majority shareholder (meaning that it owns more than 51% of the shares), the Centre can raise money through the liquidation of its shareholding in these PSUs.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Types of Disinvestment Methods: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Minority Disinvestment:</strong> This type of disinvestment in PSUs is such that, at the end of it, if the government of <strong>India retains a majority stake (typically more than 51%)</strong> in the company, it ensures management control. <br />
<ul style="list-style-type: disc;">
<li>For e.g. Reduced government&rsquo;s share in Life Insurance Corporation in 2020.</li>
</ul>
</li>
<li><strong>Majority Disinvestment:</strong> When disinvestment in PSUs is such that, at the end of it, the <strong>government of India retains a minority stake</strong> in the company i.e. it sells off a majority stake.</li>
<li><strong>Complete Disinvestment or Privatization:</strong> It is a form of majority disinvestment wherein <strong>100% control of the company is passed on to a buyer</strong> i.e government of India completely disinvests from that PSU. <br />
<ul style="list-style-type: disc;">
<li>Like Bharat Aluminium Company, which was sold to the Vedanta group in 2001.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons Behind Disinvesting in PSUs.</strong><br />
<ul style="list-style-type: circle;">
<li>Improving the overall efficiency of their functioning.</li>
<li><strong>Insulating them from political considerations</strong> overshadowing economic and corporate interests.<br />
<ul style="list-style-type: disc;">
<li>Especially when PSU transacts with the government &mdash; for example when it sells its products and services to the government, the pricing may be influenced by factors other than market factors.</li>
</ul>
</li>
<li>To make such a PSU more efficient as it would not be accountable to people and entities other than the government.</li>
<li>Private or corporate ownership could result in more efficient management.</li>
<li>Plugging budget deficits i.e. filling the gap between its expenditures and tax revenues.</li>
<li>Making more money available for other sectors like infrastructure and welfare schemes.</li>
</ul>
</li>
<li><strong>Changed Perspective about Disinvestment:</strong> <br />
<ul style="list-style-type: circle;">
<li>Before economic liberalisation, such efforts to monetise government&rsquo;s assets were criticised as selling the family silver.</li>
<li>But post-liberalisation, reducing government stake, especially in sectors such as the strategic sectors like defence where government presence is not necessary, disinvestment is welcomed.</li>
</ul>
</li>
<li><strong>Nodal Agency for Disinvestment: </strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/strategic-disinvestment" target="_blank" rel="noopener"><strong>Department of Investment and Public Asset Management (DIPAM)</strong> </a>under the Ministry of Finance is tasked with managing the Centre&rsquo;s investments in the PSUs.</li>
<li>Sale of the Centre&rsquo;s assets falls within the mandate of DIPAM.</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/budget-nirmala-sitharaman-psu-coronavirus-economy-disinvestment-7162876/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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	(int) 18 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7490,
		'category_id' => (int) 21,
		'title' => 'Government's Disinvestment Plans',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Ministry of Finance has extended the bidding deadlines for the strategic <a href="/daily-updates/daily-news-analysis/strategic-disinvestment" target="_blank" rel="noopener"><strong>disinvestment</strong></a> of <strong>Pawan Hans</strong> by a month, citing logistical challenges faced by interested bidders due to the<a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong> Covid-19 pandemic.</strong></a></p>
<ul style="list-style-type: square;">
<li>Pawan Hans Limited is a <strong>helicopter service company</strong> based in New Delhi. It is a <a href="/to-the-points/paper3/sectors-of-indian-economy" target="_blank" rel="noopener"><strong>Mini Ratna</strong></a>-I category Public Sector Undertaking.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Government's Disinvestment Target for 2020-2021:</strong> Government <strong>plans to raise Rs. 2.1 lakh crore</strong> through disinvestment in 2020-21, with just about <strong>Rs. 14,000 crore raised</strong> so far through minority stake sales.</li>
<li><strong>New Public Sector Policy:</strong> As part of the <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>&lsquo;Aatmanirbhar Bharat Abhiyan&rsquo;</strong></a> package, the government in May 2020 had announced that there will be a maximum of four public sector companies in the strategic sectors, and state-owned firms in other segments will eventually be privatised.<br />
<ul style="list-style-type: disc;">
<li>Under the policy, <strong>a list of strategic sectors will be notified</strong> where there will be <strong>at least one and a maximum of four public sector enterprises,</strong> apart from private sector companies.</li>
<li>In <strong>other sectors, central public sector enterprises (CPSEs) will be privatised,</strong> depending on the feasibility.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Current Situation:</strong> <br />
<ul style="list-style-type: circle;">
<li>The <strong>Bidding deadline</strong> for the disinvestment of <strong>Pawan Hans</strong> has been <strong>extended by a month.</strong></li>
<li>Strategic sales of public sector firms like <a href="/daily-updates/daily-news-analysis/100-fdi-in-air-india-for-nris" target="_blank" rel="noopener"><strong>Air India</strong></a> and <strong>Bharat Petroleum Corporation Limited (BPCL)</strong> are unlikely to conclude this year.</li>
<li>Further amendments are needed to the LIC Act of 1986 to list the <a href="/daily-updates/daily-news-analysis/initial-public-offer-lic" target="_blank" rel="noopener"><strong>Life Insurance Corporation of India</strong> </a>on the markets.</li>
</ul>
</li>
<li><strong>Need for Disinvestment Proceeds:</strong><br />
<ul style="list-style-type: circle;">
<li>There is a pressure on the government to raise resources to<strong> support the economic recovery</strong> and meet expectations of higher outlays for healthcare.</li>
<li>The increase in public <strong>spending in the upcoming <a href="/to-the-points/paper3/government-budgeting#:~:text=The%20Union%20Minister%20of%20Finance,all%20sections%20of%20the%20society" target="_blank" rel="noopener">Budget</a></strong> will have to be financed to a large extent by garnering disinvestment proceeds and monetising assets.</li>
<li>To <strong>eliminate the need for the government&rsquo;s involvement in non-strategic areas.</strong></li>
</ul>
</li>
</ul>
<h3>Disinvestment</h3>
<ul style="list-style-type: square;">
<li>Disinvestment means<strong> sale or liquidation of assets by the government,</strong> usually Central and state public sector enterprises, projects, or other fixed assets.</li>
<li><a href="/daily-updates/daily-news-editorials/privatisation-of-pses" target="_blank" rel="noopener"><strong>The government undertakes disinvestment </strong></a>to<strong> reduce the fiscal burden</strong> on the exchequer, or<strong> to raise money</strong> for meeting specific needs, such as<strong> to bridge the revenue shortfall from other regular sources.</strong></li>
<li><a href="/to-the-points/paper3/strategic-disinvestment-1" target="_blank" rel="noopener"><strong>Strategic disinvestment</strong> </a>is the<strong> transfer of the ownership and control of a public sector entity to some other entity</strong> (mostly to a private sector entity).<br />
<ul style="list-style-type: circle;">
<li>Unlike the simple disinvestment, strategic sale implies a kind of privatization.</li>
</ul>
</li>
<li>The <strong>disinvestment commission defines strategic sale as the sale of a substantial portion of the Government shareholding of a central public sector enterprises (CPSE) of upto 50%,</strong> or such higher percentage as the competent authority may determine, along with transfer of management control.</li>
<li>The <a href="/daily-updates/daily-news-analysis/strategic-disinvestment" target="_blank" rel="noopener"><strong>Department of Investment and Public Asset Management (DIPAM)</strong> </a>under the Ministry of Finance is the nodal department for the strategic stake sale in the Public Sector Undertakings (PSUs).</li>
<li>Strategic disinvestment in India has been guided by the basic economic principle that the <strong>government should not be in the business to engage itself in manufacturing/producing goods and services in sectors where competitive markets have come of age.</strong><br />
<ul style="list-style-type: circle;">
<li>The economic potential of such entities may be better discovered in the hands of the strategic investors due to various factors, <strong>e.g. infusion of capital, technology up-gradation and efficient management practices etc.</strong></li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/Industry/centre-extends-bidding-deadlines-for-pawan-hans-disinvestment/article33594869.ece#:~:text=The%20Finance%20Ministry%20has%20extended,to%20the%20COVID%2D19%20pandemic." target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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	(int) 19 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7299,
		'category_id' => (int) 21,
		'title' => 'Changes in PMS-SC',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/cabinet-committees-formed" target="_blank" rel="noopener"><strong>Cabinet Committee on Economic Affairs (CCEA)</strong></a> has approved changes in the <strong>Post Matric Scholarship to students belonging to Scheduled Castes</strong> (PMS-SC).</p>
<ul style="list-style-type: square;">
<li>Government is committed to give a big push and further impetus to this effort so that the <strong>Gross Enrolment Ratio</strong> (GER) <strong>in higher education of SCs would reach up</strong> to the national standards <strong>within the 5 year period</strong>.<br />
<ul style="list-style-type: circle;">
<li>GER is the number of students enrolled in a given level of education, regardless of age, expressed as a percentage of the official school-age population corresponding to the same level of education.</li>
<li>The current GER in higher education is <strong>26.3%</strong>.</li>
</ul>
</li>
<li>The Central Assistance which was around <strong>Rs. 1100 crore annually during 2017-18 to 2019-20 would be increased more than 5 times</strong> to be around <strong>Rs. 6000 crore annually during 2020-21 to 2025-26</strong>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Post Matric Scholarship for Scheduled Castes:</strong><br />
<ul style="list-style-type: square;">
<li>It is a <a href="/daily-updates/daily-news-editorials/reforming-centrally-sponsored-scheme" target="_blank" rel="noopener"><strong>Centrally Sponsored Scheme</strong></a> and <strong>implemented through State Government and UT administration</strong>.</li>
<li>It provides <strong>financial assistance to the SC students studying at post matriculation or post-secondary stage</strong> to enable them to complete their education.</li>
<li>These scholarships are <strong>available for studies in India only</strong> and are awarded by the government of the State/Union Territory to which the applicant actually belongs i.e. <strong>permanently settled</strong>.</li>
<li>The <strong>focus</strong> of the scheme is on enrolling the poorest students, timely payments, comprehensive accountability, continuous monitoring and total transparency.</li>
<li><strong>Income Ceiling:</strong> Scholarships are paid to the students whose parents/guardians&rsquo; income from all sources <strong>does not exceed Rs. 2,50,000 per annum</strong>.</li>
</ul>
</li>
<li><strong>New Changes:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Enrolment Campaign:</strong><br />
<ul style="list-style-type: square;">
<li>Launching a campaign to <strong>enrol the students from the poorest households passing the 10<sup>th</sup> standard</strong>, in the higher education courses of their choice.</li>
<li>It is estimated that <strong>1.36 crore poorest students are currently not continuing their education beyond 10<sup>th</sup> standard</strong>, who would be brought into the higher education system in the next 5 years.</li>
</ul>
</li>
<li><strong>Secure Online Platform:</strong><br />
<ul style="list-style-type: square;">
<li>An online platform with robust <a href="/to-the-points/paper3/cyber-security" target="_blank" rel="noopener"><strong>cybersecurity</strong></a> measures that would assure transparency, accountability, efficiency, and timely delivery of the assistance without any delays.</li>
<li>States will <strong>undertake fool-proof verification</strong> of the eligibility, caste status, Aadhar identification and bank account details on the online portal.</li>
</ul>
</li>
<li><strong>Direct Benefit Transfer:</strong><br />
<ul style="list-style-type: square;">
<li>Unlike earlier, when funding was passed through state governments, financial assistance will be transferred by the <strong>Direct Benefit Transfer</strong> (DBT) mode and preferably using the <a href="/daily-updates/daily-news-analysis/rise-in-digital-transactions" target="_blank" rel="noopener"><strong>Aadhaar Enabled Payment System</strong></a>.</li>
<li>Students will receive the Centre&rsquo;s share as soon as the state transfers its share as per fixed time schedule.</li>
</ul>
</li>
<li><strong>New Funding Pattern:</strong><br />
<ul style="list-style-type: square;">
<li>The Cabinet has approved a <strong>total investment of Rs. 59,048 crore</strong> with a new funding pattern of <strong>60-40 for the Centre and States</strong>.</li>
<li>Starting from 2021-22, the Central share would be released after ensuring that the concerned State Government has released their share.</li>
<li>This <strong>replaces the existing <a href="/daily-updates/daily-news-analysis/defence-fund-shortfall" target="_blank" rel="noopener">committed liability</a> system</strong> and brings greater involvement of the Central government in this crucial scheme.<br />
<ul style="list-style-type: square;">
<li><strong>Committed liabilities</strong> are payments anticipated during a financial year for contracts concluded in previous years.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Strong Monitoring Mechanisms:</strong><br />
<ul style="list-style-type: square;">
<li>The scheme will be further strengthened through the conduct of social audits, annual third party evaluation, and half-yearly self-audited reports from each institution.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1682967" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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