LG overrules Delhi Govt. order to restrict COVID-19 treatment (Polity & Governance)
Who's afraid of monetisation of the deficit? - Lead Article (Economy)
The critical role of decentralised responses - Article (Polity & Governance)
The e-diplomacy experiment & Economy to contract 3.2% in FY21 - WB - (International Relations + Economy )
Question for the day
[{"explanation": "<p>Monetary policy consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity. These are achieved by actions such as modifying the interest rate, buying or selling government bonds, regulating foreign exchange rates, and changing the amount of money banks are required to maintain as reserves. However, Public Debt and Public Revenue are not part of Monetary Policy.</p>", "question": "<p>With reference to Indian economy, consider the following:</p>\n<ol>\n<li>Bank rate </li>\n<li>Open market operations </li>\n<li>Public debt </li>\n<li>Public revenue </li>\n</ol>\n<p>Which of the above is/are component/ components of Monetary Policy? </p>", "options": [{"option_id": "5edfd63d7737d44455e25f24", "is_correct_answer": false, "title": "<p>1 only </p>"}, {"option_id": "5edfd63d7737d44455e25f25", "is_correct_answer": false, "title": "<p>2, 3 and 4 </p>"}, {"option_id": "5edfd63d7737d44455e25f26", "is_correct_answer": true, "title": "<p>1 and 2 </p>"}, {"option_id": "5edfd63d7737d44455e25f27", "is_correct_answer": false, "title": "<p>1, 3 and 4 </p>"}], "question_id": "5edfd63d7737d44455e25f23"}, {"explanation": "<p>Global Economic Prospects Report is published by World Bank. As per 2020 Report, COVID-19 has delivered an enormous global shock, leading to steep recessions in many countries. The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020—the deepest global recession in decades. Per capita incomes in most emerging and developing economies will shrink this year. The pandemic highlights the urgent need for policy action to cushion its consequences, protect vulnerable populations, and improve countries’ capacity to cope with similar future events. It is also critical to address the challenges posed by informality and limited safety nets and undertake reforms that enable strong and sustainable growth.</p>", "question": "Global Economic Prospects Report of 2020 has been published by?", "options": [{"option_id": "5edfd6787737d44ea78969cc", "is_correct_answer": false, "title": "<p>IMF</p>"}, {"option_id": "5edfd6787737d44ea78969cd", "is_correct_answer": false, "title": "<p>WTO</p>"}, {"option_id": "5edfd6787737d44ea78969ce", "is_correct_answer": false, "title": "<p>UNCTAD</p>"}, {"option_id": "5edfd6787737d44ea78969cf", "is_correct_answer": true, "title": "<p>World Bank</p>"}], "question_id": "5edfd6787737d44ea78969cb"}, {"explanation": "<p><strong>Article 239 – (1) - </strong>Save as otherwise provided by Parliament by law, every Union territory shall be administered by the President acting, to such extent as he thinks fit, through an administrator to be appointed by him with such designation as he may specify.</p>\n<p><strong>Article 239 – (2) - </strong>Notwithstanding anything contained in Part VI, the President may appoint the Governor of a State as the administrator of an adjoining Union territory, and where a Governor is so appointed, he shall exercise his functions as such administrator independently of his Council of Ministers. </p>", "question": "<p>Consider the following statements:</p>\n<ol>\n<li>Administrator of a Union Territory shall be appointed by the President of India.</li>\n<li>President may appoint the Governor of a State as the administrator of an adjoining Union territory.</li>\n</ol>\n<p>Which of the statements given above is/are correct?</p>", "options": [{"option_id": "5edfd6ab7737d44455e25f2b", "is_correct_answer": false, "title": "<p>1 only</p>"}, {"option_id": "5edfd6ab7737d44455e25f2c", "is_correct_answer": false, "title": "<p>2 only</p>"}, {"option_id": "5edfd6ab7737d44455e25f2d", "is_correct_answer": true, "title": "<p>Both 1 and 2</p>"}, {"option_id": "5edfd6ab7737d44455e25f2e", "is_correct_answer": false, "title": "<p>Neither 1 nor 2</p>"}], "question_id": "5edfd6ab7737d44455e25f2a"}, {"explanation": "<p>Terms of Reference and the matters that shall be taken into consideration by the Fifteenth Finance Commission in making the recommendations are as under: (i) The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds; (ii) The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under Article 275 of the Constitution for purposes other than those specified in the provisos to clause (1) of that article; and (iii) The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State. 2. The Commission shall review the current status of the finance, deficit, debt levels, cash balances and fiscal discipline efforts of the Union and the States, and recommend a fiscal consolidation roadmap for sound fiscal management, taking into account the responsibility of the Central Government and State Governments to adhere to appropriate levels of general and consolidated government debt and deficit levels, while fostering higher inclusive growth in the country, guided by the principles of equity, efficiency and transparency. The Commission may also examine whether revenue deficit grants be provided at all.</p>", "question": "<p>Which of the following are parts of Terms of Reference of 15<sup>th</sup> Finance Commission of India?</p>\n<ol>\n<li>The distribution between the Union and the States of the net proceeds of taxes.</li>\n<li>The principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.</li>\n<li>Sums to be paid to the States by way of grants-in-aid of their revenues under Article 275 of the Constitution.</li>\n<li>Augment Consolidated Fund of State to supplement the resources of Panchayats and Municipalities on the basis of the recommendations made by State Finance Commission.</li>\n</ol>\n<p>Select the correct answer using the code give below:</p>", "options": [{"option_id": "5edfd6e07737d44455e25f31", "is_correct_answer": false, "title": "<p>1, 3 and 4 only</p>"}, {"option_id": "5edfd6e07737d44455e25f32", "is_correct_answer": false, "title": "<p>2, 3 and 4 only</p>"}, {"option_id": "5edfd6e07737d44455e25f33", "is_correct_answer": false, "title": "<p>1, 2 and 3 only</p>"}, {"option_id": "5edfd6e07737d44455e25f34", "is_correct_answer": true, "title": "<p>1, 2, 3 and 4</p>"}], "question_id": "5edfd6e07737d44455e25f30"}, {"explanation": "<p>Open Market Operations refers to outright sale/purchase of government securities by Reserve Bank of India.</p>", "question": "In the context of Indian economy, 'Open Market Operations' refers to ", "options": [{"option_id": "5edfd7057737d44455e25f38", "is_correct_answer": false, "title": "<p>borrowing by scheduled banks from the RBI </p>"}, {"option_id": "5edfd7057737d44455e25f39", "is_correct_answer": false, "title": "lending by commercial banks to industry and trade "}, {"option_id": "5edfd7057737d44455e25f3a", "is_correct_answer": true, "title": "<p>purchase and sale of government securities by the RBI </p>"}, {"option_id": "5edfd7057737d44455e25f3b", "is_correct_answer": false, "title": "<p>None of the above </p>"}], "question_id": "5edfd7057737d44455e25f37"}]
L-G overrules Delhi govt. order to restrict COVID-19 treatment
Delhi’s Lieutenant-Governor Anil Baijal in his capacity as Chairperson of the Delhi Disaster Management Authority has overruled two decisions of Delhi government related to COCID-19 treatment.
The decisions which have been overruled by LG
Right to health as part of Article 21
Understanding the relevant constitutional provisions
Relevant Judgments of the Supreme Court
Recommendation of Balakrishnan Committee
Who’s afraid of monetization of the deficit?
The Indian Economy was facing economic slowdown prior to COVID-19. The lockdown imposed due to COVID-19 has further accentuated the slowdown in the economy. The RBI expects that the Indian Economy would contract in 2020-21. The combined Fiscal deficit of the Centre and States is expected to be around 12% of India's GDP. The NPAs of the Indian Banks is expected to rise even further leading to contagion impact on other sectors. Against this backdrop, the Government has announced the Economic Stimulus package to revive the Indian Economy. However, the Stimulus package in India costs the Government only 2% of its GDP as compared to around 20% of GDP in other countries. Clearly, the reluctance of the Government to announce higher package is on account of the need to maintain Fiscal Deficit and Public Debt in control. Higher Government borrowings may have an adverse impact on the economy.
Debate among Economists has started – to monetize the deficit or not?
Conventional Macro-economics
Modern Monetary Theory (MMT)
To answer this question, the MMT argues the following:
Monetization of Deficit in India
Arguments put forward by Author in context of monetizing the deficit.
The critical role of decentralized responses
This article makes some suggestions to improve local finance and argues that the extant fiscal illusion is a great deterrent to mobilization.
Local Finance
MPLADS Scheme
Disaster Management
The E-Diplomacy experiment
The first India-Australia virtual leaders’ summit was recently conducted on June 4 where the two nations discussed issues ranging from military interoperability to jointly tackling COVID-19.
The two countries upgraded their relations to a ‘comprehensive strategic partnership’.
The summit was noteworthy because Prime Minister Narendra Modi and the Indian delegation were on a video conference call with Prime Minister Scott Morrison and the Australian delegation.
Adapting to the COVID times
Few notable examples:
Issues with diplomacy - cyber security & absence of personal interactions
GEP Report - World Bank
The Indian economy is expected to contract by 3.2% in this fiscal year as a result of the COVID-19 pandemic and its associated restrictions, the World Bank said in its Global Economic Prospects (GEP) June 2020 Report. Growth is forecast at 3.1% next year.
Important observation of Global Economic Prospects report
Sparsh 8 months ago