Day-73 | Daily MCQs | UPSC Prelims | INDIAN ECONOMY
[WpProQuiz 80] |
[WpProQuiz 80] |
THE CONTEXT: The Supreme Court-appointed an independent expert technical committee is overseen by a former apex court judge, Justice R.V. Raveendran, to examine allegations that the government used Israeli spyware, Pegasus, to snoop on its own citizens.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: Ministry of Education notifies the Four Year ITEP, a dual-major holistic bachelor’s degree offering B.A. B.Ed./ B. Sc. B. Ed. and B.Com. B.Ed. which is one of the major mandates of the National Education Policy 2020 related to Teacher Education.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: According to the Health Ministry, the “Har Ghar Dastak” (Knock Every Door) campaign is scheduled to start soon in districts with low vaccination rates to enthuse and motivate people towards getting their jab.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: Union Minister of MSME launched “SAMBHAV”, a National Level Awareness Programme-2021.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: Union Minister of Civil Aviation released Krishi UDAN 2.0. Krishi UDAN 2.0 lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation and contributing to Agri-value chain sustainability and resilience under different and dynamic conditions. The scheme proposes to facilitate and incentivize the movement of Agri-produce by air transportation.
KEY HIGHLIGHTS OF KRISHI UDAN 2.0
SOURCE: PIB
THE CONTEXT: A successful launch of the Surface to Surface Ballistic Missile, Agni-5, was carried out on October 27, 2021, at approximately 1950 hrs from APJ Abdul Kalam Island, Odisha.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: Prime Minister Shri Narendra Modi participated in the 16th East Asia Summit via videoconference.
THE EXPLANATION:
SOURCE: PIB
Q1 Har Ghar Dastak (Knock Every Door) campaign is started by the government for which of the following purpose?
a) To motivate youth to get electoral cards.
b) To motivate people towards getting their COVID-19 vaccine.
c) To motivate people to vaccinate their children.
d) To motivate youth to participate in sports.
Q1. Answer: B
Explanation:
[WpProQuiz 79] |
THE CONTEXT: On the banks of the Sarayu in Ayodhya, acres of green space will be known as Queen Heo Hwang-ok Memorial Park, after a Korean queen believed to have had Indian roots.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: Amidst its vast collection of Buddhist images and Hindu sculptures, India gets several mentions in the Ramkhamhaeng National Museum in Sukhothai, Thailand.
THE EXPLANATION:
SOURCE: Scroll
THE CONTEXT: Asian Infrastructure Investment Bank (AIIB) president Jin Liqun that India should strike a balance between ramping up the physical infrastructure and the social infrastructure such as healthcare systems.
THE EXPLANATION:
ABOUT AIIB
SOURCE: PIB
THE CONTEXT: Australia’s Prime Minister Scott Morrison said the country is set to reduce emissions by 35% below 2005 levels by 2030, but he won’t commit to such a target at the U.N. climate conference in Scotland.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: On the Indonesian island of Sulawesi, museum scientists have discovered 28 new species of beetles.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: According to Climate Vulnerability Index released by the Council on Energy, Environment and Water (CEEW), the states of Assam, Andhra Pradesh, Maharashtra, Karnataka and Bihar are the most vulnerable to extreme climate events such as floods, droughts and cyclones in India.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: The UK COP26 Presidency released the ‘Climate Delivery Plan’, outlining an agenda and a timetable for developed countries to deliver $100 billion worth of monetary help to low-income countries to manage the climate crisis.
THE EXPLANATION:
SOURCE: THEPRINT
THE CONTEXT: Union Minister of Civil Aviation virtually flagged off the first direct flight on the Shillong – Dibrugarh route under the Regional Connectivity Scheme – Ude Desh Ka Aam Naagrik (RCS-UDAN) of the Government of India.
THE EXPLANATION:
ABOUT UDAN SCHEME
SOURCE: PIB
Q1. Consider the following statements about AIIB:
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
Q1. Answer: C
Explanation:
[WpProQuiz 78] |
THE CONTEXT: Prime Minister launched the Ayushman Bharat Health Infrastructure Mission, one of the largest Pan-India schemes for strengthening healthcare infrastructure.
THE EXPLANATION:
PM AYUSHMAN BHARAT HEALTH INFRASTRUCTURE MISSION
SOURCE: PIB
THE CONTEXT: A report from the World Meteorological Organization (WMO) said the increase in CO2 from 2019 to 2020 was slightly lower than that observed from 2018 to 2019 but higher than the average annual growth rate over the last decade.
THE EXPLANATION:
SOURCE:TH
THE CONTEXT: Ahead of the 26th meeting of the Conference of Parties (COP) next month in Glasgow, there have been several bilateral meetings between India and other countries. The big push at the COP will be to have more countries commit to a “net-zero” deadline by mid-century. Huge expectations include arriving at a consensus on unresolved issues of the Paris Agreement Rule Book, long-term climate finance and market-based mechanisms
WHY HASN’T INDIA AGREED TO A NET-ZERO TARGET?
WHAT ARE INDIA’S EXPECTATIONS FROM COP 26?
ABOUT LEAD IT
SOURCE: TH
THE CONTEXT: The Supreme Court directed the Supervisory Committee to take an immediate and firm decision on the maximum water level that can be maintained at Mullaperiyar dam amidst torrential rains in Kerala.
THE EXPLANATION:
ABOUT MULLAPERIYAR DAM
SOURCE: TH
THE CONTEXT: The study, posted in the preprint server medRxiv has found that in 500 healthcare workers, the neutralising antibodies were twofold more in people immunised with Pfizer vaccine following natural infection compared with people immunised with Pfizer vaccine but without prior infection.
SOURCE: TH
THE CONTEXT: Prime Minister will attend the 18th ASEAN-India Summit to be held virtually on October 28, 2021. Prime Minister will also attend the 16th East Asia Summit to be held on October 27, 2021, virtually.
THE EXPLANATION:
SOURCE: PIB
Q1. Consider the following statements about Leadership Group for Industry Transition (LeadIT):
Which of the statements given above is/are correct?
a) 1 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Q1. Answer: B
Explanation:
Tiger reserves of Madhya Pradesh:
Note: Achanakmar tiger reserve is located in Chhattisgarh.
Q2.Answer: D
Explanation:
Buffaloes from Banni are also called “Kutchi” or “Kundi.” The Kutch area of Gujarat is home to this kind of buffalo. The term ‘Banni’ refers not just to buffaloes, but also to pasture grass species native to this region. The ‘Maldharis,’ a Kutch-based community, is dedicated to preserving this breed of buffalo.
[WpProQuiz 77] |
THE CONTEXT: A special court in Mumbai denied bail to Aryan Khan, even though the Narcotics Control Bureau (NCB) did not find any drugs on him during his arrest on October 3 after a raid on a cruise ship off Mumbai. The court rejected his bail application on the ground that he had “conscious possession” of drugs.
THE EXPLANATION:
ABOUT NCB
SOURCE: PIB
THE CONTEXT: About 500 tonnes of broken rice imported from India were claimed to be genetically modified (GM) by a French manufacturer. This has drawn sharp reactions from the European countries as the European Union (EU) does not permit GM rice. An American company recalled four of its product lines fearing GM contamination. Data show that rice exports form the fifth-highest share in terms of India’s total exports. India is also the biggest exporter of rice globally, forming over 30% of the world’s exports. However, less than 5% of the rice exported from India is destined for the European countries. But for many European countries, India is their primary source for rice imports.
SOURCE:TH
THE CONTEXT: At a farmer’s house in Gujarat’s Gir Somnath district, India’s first in-vitro fertilisation (IVF) calf of the Banni breed of buffaloes was born.
THE EXPLANATION:
ABOUT BUFFALO BANNI
SOURCE: PIB
THE CONTEXT: Sharks, rays and chimaeras are now the second-most threatened vertebrate group, after amphibians. In a recent study, we found that over one-third of sharks and rays are threatened with extinction.
THE EXPLANATION:
SOURCE: Scroll
THE CONTEXT: Even as the southwest monsoon began to retreat from the subcontinent, Kerala and Uttrakhand received record rainfall in October. In both these States over the last few years, there have been variations in the pattern and intensity of rainfall.
THE EXPLANATION:
SOURCE : TH
THE CONTEXT: A female leopard, rescued from a forest in Madhya Pradesh’s Raisen district over two months back, has now been released in the Satpura Tiger Reserve in Hoshangabad district. It was subsequently brought to Bhopal’s Van Vihar National Park where it was treated by a team of veterinarians.
Source: ZEE
THE CONTEXT: China’s legislature has adopted a new border law, to take effect on January 1, that calls on the state and military to safeguard the territory and “combat any acts” that undermine China’s territorial claims.
THE EXPLANATION:
SOURCE: TH
Q1. Which of the following Tiger reserve is not located in Madhya Pradesh?
a) Satpura Tiger Reserve
b) Achanakmar Tiger Reserve
c) Bandhavgarh Tiger Reserve
d) Panna Tiger Reserve
Q2. Which community/tribe is dedicated to preserving banni breed of buffalo
a) Chenchus
b) Gaddis
c) Todas
d) Maldharis
Answer: B
Explanation:
[WpProQuiz 76] |
THE CONTEXT: The Cabinet Committee on Economic Affairs (CCEA) has approved PM GatiShakti National Master Plan including an institutional framework for rolling out, implementation, and monitoring and support mechanism for providing multi-modal connectivity.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: India Internet Governance Forum to be conducted in November 2021 to bring all stakeholders of internet governance on a single platform.
THE EXPLANATION:
About IIGF
SOURCE: PIB
THE CONTEXT: India has completed vaccination of 100 crore doses on October 21, 2021, in just about nine months since starting vaccination.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: The Central Empowered Committee (CEC), constituted by the Supreme Court, has asked the Assam government to act on illegal construction in the identified wildlife corridors of the Kaziranga National Park and Tiger Reserve.
THE EXPLANATION:
SOURCE:TH
THE CONTEXT: Indian Railways is taking a multi-pronged approach to go green and decarbonise — from increasing its sourcing of renewable energy (RE) to electrifying its traction network and reducing its energy consumption. Its goal is to become a ‘net-zero’ carbon emitter by 2030. And it has ambitious plans to accomplish this goal.
THE EXPLANATION:
SOURCE: DTE
THE CONTEXT: NITI Aayog’s Atal Innovation Mission (AIM) has launched – “Innovations for You” an attempt to showcase the success stories of Atal Innovation Mission’s Startups in different domains.
THE EXPLANATION:
ABOUT ATAL INNOVATION MISSION OF NITI AAYOG
SOURCE: PIB
THE CONTEXT: The Financial Action Task Force (FATF) retained Pakistan in the ‘greylist’ yet again, observing that it needed to further demonstrate that investigations and prosecutions were being pursued against the senior leadership of U.N.-designated terror groups, which include Lashkar-e-Taiba, Jaish-e-Mohammed, al-Qaeda and the Taliban.
THE EXPLANATION:
ABOUT FINANCIAL ACTION TASK FORCE (FATF)
SOURCE: TH
Q1. Consider the following statements about FATF:
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 3 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Answer: B
Explanation:
[WpProQuiz 75] |
THE CONTEXT: Prime Minister inaugurated the Kushinagar International Airport in Uttar Pradesh, which will help connect key Buddhist pilgrimage sites. Kushinagar is an important Buddhist pilgrim destination and is believed to be the final resting place of the Gautam Buddha.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: A national database of persons with disabilities (PwD) linking their Unique Disability Identity (UDID) numbers with welfare schemes and education and health services was among the proposals of the draft National Policy for PwD, 2021was likely to be published next month.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: The Global Threat Assessment report 2021, by WeProtect Global Alliance, said COVID-19 had contributed to a significant spike in child sexual exploitation and abuse online.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: India is ranked at 71st position in the Global Food Security (GFS) Index 2021 of 113 countries, but the country lags behind its neighbours Pakistan and Sri Lanka in terms of food affordability.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: A micro snail species named Georissamawsmaiensis has recently been discovered from Mawsmai, a limestone cave in Meghalaya, 170 years after the last such discovery was made.
THE EXPLANATION:
SOURCE: DTE
THE CONTEXT: There were media reports that food recalls linked to alleged GM rice from India. The government clarified that there is no commercial variety of GM rice in India, in fact, the commercial GM cultivation of rice is banned in India.
THE EXPLANATION:
SOURCE: SCROLL
THE CONTEXT: India joined a 10-nation statement recognising the new reality of the Taliban in power in Afghanistan at the Moscow format meeting, as Indian officials reportedly met Taliban Deputy Prime Minister Abdul Salam Hanafi and offered humanitarian aid to the regime in Kabul.
THE EXPLANATION:
SOURCE: TH
Q1. Consider the following pairs of places and associated important events in the life of the Gautama Buddha:
Which of the above-given pairs are correctly matched?
a) 1 and 2 only
b) 2 and 3 only
c) 3 and 4 only
d) 1 and 4 only
ANSWER: C
Explanation:
The World Economic Outlook (WEO) is an IMF report that provides analysis and forecasts of economic developments and policies in its member countries. The report encapsulates the state of the global economy and highlights risks and uncertainty that could threaten growth.
[WpProQuiz 73] |
THE CONTEXT: Bhaskarabda, an era counted from the date of the ascension of a seventh-century local ruler, will be added to Saka and Gregorian eras in the official calendar of the Assam Government.
THE EXPLANATION:
KAMARUPA KINGDOM
SOURCE: TH
THE CONTEXT: Researchers at the department of geography at the University of Georgia in the United States found that tropical storms, in the last 21 years, have had an overall positive impact on the ability of mangroves in India to fix carbon dioxide.
THE EXPLANATION:
SOURCE:Scroll
THE CONTEXT: The IMF’s latest World Economic Outlook has underlined that employment growth is likely to lag output recovery after the pandemic.
THE EXPLANATION:
The central message was that the global economic recovery momentum had weakened a tad, thanks largely to the pandemic-induced supply disruptions. But more than just the marginal headline numbers for global growth, it is the increasing inequality among nations that IMF was most concerned about.
SOURCE: IE
THE CONTEXT: In continuation with its efforts to rightsize the Railways, the Railway Board has issued an order to shut down the Indian Railway Stations Development Corporation (IRSDC) that was set up for the redevelopment of stations across the country.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: RBI said in its ‘State of the economy’ report that premature tightening of the monetary policy could bring about the stagflation (slow growth and high level of unemployment and inflation) that all fear, quashing growth just as the economy is recovering. Consequently, policy support for a sustained and inclusive recovery may be needed for longer.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: Valneva SE, a French vaccine company, announced results from its Phase 3 trial of its inactivated Covid-19 vaccine candidate, VLA2001. They said that the vaccine was as effective as the Oxford/AstraZeneca vaccine.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: India, Israel, the United Arab Emirates (UAE) and the United States decided to launch a new quadrilateral economic forum.
THE EXPLANATION:
SOURCE: TH
Q1. Recently in news, World Economic Outlook is released by?
a) World Bank
b) World economic forum
c) IMF
d) UN
ANSWER: A
Explanation:
[WpProQuiz 72]
THE CONTEXT: The fourth general assembly of The International Solar Alliance (ISA), is to be held virtually between October 18th and October 21st, 2021.
THE EXPLANATION:
ABOUT ISA
SOURCE:PIB
THE CONTEXT: An India-based entrepreneur’s technology that recycles agricultural waste to create fuel was named among the winners of Prince William’s inaugural Earth shot Prize that honours people trying to save the planet.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: According to a recent study, Mumbai lost 81% of its open land (barren spaces without any vegetation), 40% green cover (forests & scrublands) and approximately 30% of its water bodies (lakes, ponds, floodplains) between 1991 and 2018, while the built-up area (areas developed upon) rose by 66% in the same period.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: NITI Aayog in collaboration with the Indian Space Research Organisation (ISRO) has developed a comprehensive Geographic Information System (GIS) Energy Map of India with the support of Energy Ministries of Government of India.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: With a view to orienting its officers and men posted along the Line of Actual Control (LAC) in Tibetan culture and also preparing them to better understand the information warfare, the Army has begun a course in Tibetology in a tie-up with the Central Institute of Himalayan Cultural Studies in Arunachal Pradesh.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: India and Israel agreed to resume long-pending negotiations on a free trade agreement, as External Affairs Minister S. Jaishankar met his Israeli counterpart YairLapid in Jerusalem.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: When the Prime Minister declares open the Kushinagar International Airport in Uttar Pradesh on October 20, a sizeable Sri Lankan contingent, led by a member of the first family, will be present.
THE EXPLANATION:
SOURCE: TH
Q1. Geographic Information System (GIS) Energy Map of India is developed by:
a) NITI Aayog and ISRO
b) NASA
c) Indian School of Mines, Dhanbad
d) None of the above
ANSWER: B)
Explanation:
[WpProQuiz 71]
THE CONTEXT: According to the government, the value of a key indicator used in the Global Hunger Index is ‘inflated’ as there are only 3.9% of Anganwadi children found to be undernourished.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: To commemorate World Food Day, the Ministry of Food Processing Industries, under the Pradhan MantriFormalisation of Micro food processing Enterprises (PMFME) Scheme, organised the Food Tech Summit on 16th October 2021.
THE EXPLANATION:
ABOUT THE PMFME SCHEME
SOURCE: PIB
THE CONTEXT: In a couple of days or so from now, the number of Covid-19 vaccine doses administered in India will have crossed 100 crores, or 1 billion. Already, India has administered more vaccine doses than any other country in the world apart from China.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: The UK will host the COP 26 UN Climate Change Conference from October 31 to November 12. The event will see leaders from more than 190 countries, thousands of negotiators, researchers and citizens coming together to strengthen a global response to the threat of climate change. It is a pivotal movement for the world to come together and accelerate the climate action plan. This year marks the 26th Conference of Parties and will be held in the Scottish Event Campus in Glasgow.
FORMATION OF COP
COP1 to COP25
COP26 GOALS
SOURCE:IE
THE CONTEXT: In view of the coronavirus disease (Covid-19) related situation and concerns surrounding the rising level of pollution due to firecrackers during the festive season, several states have imposed certain rules on fireworks this year. These vary from either a complete or a partial ban on firecracker sales in these respective states to permitting the sale of ‘green crackers’ instead.
THE EXPLANATION:
WHAT ARE GREEN CRACKERS?
SOURCE: HT
THE CONTEXT: The 17th Edition of Indo – US joint training exercise “EX YUDH ABHYAS 21” commenced at Joint Base Elmendorf Richardson, Alaska (USA) on 15 October 2021.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: New Delhi is planning to engage regional powers on the future of Afghanistan. It is sending an official team to attend the Moscow process of talks on October 20 that will include the Taliban government’s, Deputy Prime Minister. New Delhi has also invited regional National Security Advisers to Delhi for a meeting in November.
THE EXPLANATION:
SOURCE: TH
Q1. Consider the following pairs of armed forces exercises between India and the U.S.
Which of the pairs given above are correctly matched?
a) 1 and 2 only
b) 1 and 3 only
c0 1, 2 and 3 only
d) 1, 2, 3 and 4
ANSWER: D
Explanation:
[WpProQuiz 70] |
THE CONTEXT: India is on the list of countries that contributed most to the global reduction in TB notifications between 2019 and 2020.
THE EXPLANATION:
SOURCE:TH
THE CONTEXT: Compassion cannot continue in perpetuity, the Supreme Court said in an order holding that Kashmiri migrants who retired as government officers cannot stay in official accommodation indefinitely.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: After a 22-day-long operation, a tiger — nicknamed MDT23 — believed to have been responsible for the death of two herders in the Mudumalai Tiger Reserve and Gudalur, was tranquillised by the Forest Department.
THE EXPLANATION:
SOURCE:IE
THE CONTEXT: According to a report by the Commission for Air Quality Management, there is a 70% reduction so far in instances of stubble burning in Punjab and 18% in Haryana from last year.
ABOUT NATIONAL COMMISSION FOR AIR QUALITY MANAGEMENT
SOURCE: TH
THE CONTEXT: Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said market participants, particularly banks, will have to prepare themselves to manage the business process changes and the global risks associated with capital convertibility.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: The Ministry of Home Affairs (MHA), through a notification in the Gazette of India on October 11, enhanced the “arrest, search and seize” powers of the Border Security Force (BSF) up to 50 km from the international boundary within Assam, West Bengal and Punjab. In Gujarat, the limit was reduced from the existing 80 km to 50 km. In Rajasthan, the 50-km limit remains unchanged.
THE EXPLANATION:
ABOUT BSF
SOURCE:TH
Q1. Consider the following statements with respect to the concept of Convertibility in the Indian economy.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1,2 and 3
ANSWER: C
Explanation:
THE CONTEXT: The Goods and Services Tax Council is the backbone of the GST system. Of late, this sui generis federal institution has been facing several challenges impacting its working and output. The several States have voiced concerns about the lack of proper deliberations, the high handedness of the Centre, excessive delegation to bureaucracy etc. Added to this, there are questions being raised on the Constitutional status of the decisions of the GST Council. Against this backdrop, this writes up comprehensively examines the various issues the GST Council is facing and also analyses the probable solutions for improving its working.
BACK TO BASICS: UNDERSTANDING THE GST COUNCIL
ABOUT GST COUNCIL | · The Constitution (One Hundred and First Amendment) Act, 2016 inserted Art 279A into the constitution which heralded a new regime of cooperative fiscal federalism by establishing the GST Council.
· The GST Council is a joint forum of the Centre and the States which will make recommendations to the Union and the States on important issues related to GST. |
COMPOSITION | · Union Finance Minister – Chairperson. the Union Minister of State, in-charge of Revenue of finance – Member. the Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members.
· The GST Council Secretariat, New Delhi shall be manned by officers taken on deputation from both the Central and State Governments. |
FUNCTIONS OF THE GST COUNCIL | · Make recommendations to the Union and the States on issues related to GST such as:
· The GST Council will also recommend the date on which GST will be levied on petroleum crude, high-speed diesel, petrol, natural gas and aviation turbine fuel. |
DECISION MAKING PROCEDURE | · The quorum of GST Council is 50% of total members
· Decision is taken by 3/4th majority (75%), wherein the Central Government would have the weightage of 1/3rd of the total vote cast. · The State Governments would have a weightage of 2/3rd of the total votes cast. · The decisions are taken mostly on the basis of consensus but the Council voted on the issue of tax on the lottery in a meeting held in 2020. |
THE GST COUNCIL AND THE MAKING OF INDIAN COOPERATIVE FEDERALISM
The adoption of GST and the creation of the GST Council itself was a major shift from the past in terms of cooperative and competitive federalism. The working of the GST Council also has been transformative in terms of its number of meetings (more than 43 times), review of GST rates and efforts to seek cooperation with states for the effective implementation of GST. In fact, the work of the GST Council was considered as more successful than that of the Inter-State Council and National Development Council. However, the Covid-19 pandemic and the emerging implementation challenges of GST have also posed challenges for the GST Council.
THE FACTORS AFFECTING THE FUNCTIONS OF THE GST COUNCIL
COMPENSATION TO STATES | · As per the GST (Compensation to States) Act 2017, the Central Government has to compensate the States for any revenue loss arising out of GST.
· Despite this legal mandate, the Centre largely failed to compensate the States on time in 2019-20 and also during the pandemic period. · Although an agreement was reached later, the fraternal feeling that dominated the Council proceedings have suffered serious damages. · Also, the modalities of unpaid compensation worth 63000 crores have not been settled yet which is likely to create further tension and conflicts in Council meetings. |
LONG GAP BETWEEN MEETINGS | · The Council is expected to meet every quarter but during the Covid 19 period, the meetings became irregular. For instance, the recent meeting on May 28, 2021, was held after a gap of seven months although the States have been requesting the Centre to schedule early meetings.
· The gaps in holding the meetings and consequent delay in taking important decisions impact the entire GST system (Recall, debate on GST on life-saving medical drugs and devices during Covid second wave) |
MOUNTING CRITICISM FROM STATES. | · Tamil Nadu Finance Minister has lamented that the GST system is “badly designed and executed and repudiated the practice of every State having equal vote despite the difference in size and population.
· West Bengal’s Finance Minister has argued that the GST Council’s meetings have become “acrimonious, vexing, and almost toxic with the erosion of mutual trust that held fast between the State and the Centre since the inception of the GST Council”. · Kerala’s Finance Minister has claimed that the GST is “antithetical to federalism to begin with”. |
POLITICISATION OF MEETINGS | · The deliberations in the Council meetings have seen the States and the Centre taking positions based on political party lines. The BJP and non-BJP groupings have started to impact the cordial and cooperative atmosphere in the meetings.
· States even alleged that during virtual meetings, their microphones were switched off which prevented them from voicing their concerns. |
EXCESSIVE DELEGATION | · The GST Implementation Committee comprised of civil servants implements the decisions of the Council and also takes routine and procedural decisions in the period between the Council meetings.
· The States have pointed out that the GIC has been taking substantive decisions without taking approval from the Council. · Bureaucratic decisions—ranging from restricting input tax credits to cancellation of GST registration—set the dangerous precedent of delegating excessive powers to bureaucrats and States like Punjab has asserted that it will not incorporate such substantive legal changes in State legislation in future unless cleared by the Council. |
GST DISPUTE RESOLUTION MECHANISM | · Art 279A (11) provides that The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute—
(a) Between the Government of India and one or more States; or (b) Between the Government of India and any State or States on one side and one or more other States on the other side; or (c) Between two or more States, arising out of the recommendations of the Council or its implementation. · Despite four years of GST, the adjudicatory mechanism has not been established which means future disputes can disrupt the GST system itself. |
UNRESOLVED CONSTITUTIONAL ISSUE | · Cooperative federalism implies a reasonable degree of autonomy to the participants. Each party can bargain about the terms of cooperation and, if driven too hard, decline to cooperate.
· Voluntary participation is the core feature of cooperation in a federal polity which is at odds with the GST Council’s “majority rules” decision-making process. As a result, there is a lack of certainty regarding the status of the GST Council’s decisions (Read Ahead) |
NATURE OF DECISIONS OF THE GST COUNCIL: RECIPE FOR CONFLICTS?
LACK OF CLARITY OF RECOMMENDATIONS | POSSIBLE REASON
NUMBER 1 |
POSSIBLE REASON
NUMBER 2 |
POSSIBLE REASON
NUMBER 3 |
· The GST Council is mandated to make “recommendations” on all matters to GST to the States and centres.
· But nowhere in the Constitution is it mentioned whether the recommendations are binding on the Centre or the States. · If one or more States decide to opt-out of GST or refuse to follow the recommendations, it will lead to a constitutional crisis. |
· Treating the Council’s decisions as binding would be unconstitutional as it would be violating the legislative supremacy of both the Parliament and the State Legislatures.
· Art 246A provides for concurrent taxation power to the Parliament and State legislatures relating to goods and services under GST.
|
· The Supreme Court of India has long held that federalism is part of the Basic Structure of the Constitution.
· Application of Basic Structure Test to any such amendment that violates the fiscal autonomy of the States may not stand the scrutiny of the courts under the Basic Structure doctrine. |
· There may be a lack of political will to make the GST Council’s decisions mandatory which would impact
the Constitutional right (however limited) of States to determine their own indirect tax policy · The States may have adopted a wait-and-watch approach. If the GST system is successful and their revenue targets are met, well and good. Instead, they may opt-out and revert to the old system. |
MAKING THE DECISION BINDING: PROBABLE SOLUTIONS AND THEIR IMPLICATIONS
SERIAL NO: | SOLUTIONS | IMPLICATIONS |
1 | · A Constitutional Amendment clarifying that the “recommendations” of the GST Council are binding on the Centre and the States.
|
· This would end the ambiguity once and for all but would be tough to achieve for lack of political will.
· States may not agree as the Amendment would make it obligatory for them to accept the decision of a majority, even in situations where they register their dissent. As recent events show, the States are yet to fully trust the GST system. |
2 | · Seeking court intervention to interpret the existing GST-related legislative provisions. The wording of certain provisions suggests that the GST Council’s decisions, despite being termed “recommendations,” are indeed binding.
· For instance, the language of section 9(1) of the CGST Act 2017 suggests that the Centre can impose tax only at rates that are recommended by the GST Council. The language of the States’ GST statutes is almost identical to the Central Law. |
· A clarification from the Supreme Court on the real meaning and effect of the GST Council’s “recommendations” would provide clarity.
· Under the doctrine of purposive interpretation, a court is supposed to attach to a provision the meaning that serves the “purpose” behind it. · This may or may not pass the Supreme Court of India’s “Basic Structure Test,” on the ground that federalism may be affected by undermining the legislative authority of States |
3 | · To create a dispute resolution mechanism for the GST Council that is similar to the existing Inter-State Water Disputes tribunals(ISWT)
· The ISWT are the only quasi-judicial bodies in India that have original jurisdiction to decide inter-State disputes, which would otherwise fall within the exclusive domain of the Supreme Court of India.
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· As mentioned above, Article 279(A) (11) requires the GST Council to establish a mechanism to adjudicate Centre-State and inter-State disputes.
· Making the decisions of such a dispute resolution mechanism final and binding could be an indirect way of making the GST Council’s decisions binding. · This solution might pass judicial scrutiny, unlike the other two, primarily because of the water disputes tribunals’ precedent. |
4 | · Improve the existing system by promoting voluntary compliance by States through incentivisation.
· For instance, the GST Council is empowered to recommend a special rate for a specified period to raise additional resources during any natural calamity or disaster.
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· The Council exercised this power in January 2019, when it approved the State of Kerala’s proposal to levy a 1 per cent cess, following a devastating flood in August 2018.
· This has generated goodwill among the constituents of the federal polity. The GST Council has many such tools to address the economic exigencies of the federal units and its use in an apolitical manner can enable smooth functioning of the GST Council. |
REFORMING THE GST COUNCIL: THE WAY AHEAD
NOTION OF BINDING RECOMMENDATIONS | · As outlined above, bringing clarity in respect of the “recommendations” must be the immediate priority of the Council. Among, the possible solutions listed above, the Fourth One seems to be more apt.
· Fiscal autonomy is the essence of all federations; federal units may simply walk away in the absence of a binding mechanism. In Canada, for instance, British Columbia pulled out of Canada’s harmonised sales tax (HST) system barely three years after agreeing to participate. |
DE POLITICISING THE COUNCIL | · Both the Centre and States should adopt a more conciliatory attitude in deliberating critical issues in the Council and outside.
· The Centre being the more mature and powerful partner need to show more accommodation to States concerns. For instance, its decision to directly borrow from the market (although belatedly) and channelize the funds to the States in lieu of GST revenue shortfall is well appreciated by States. · The dichotomy based on political party grouping must be ended and rather an issue-based position must be taken by all partners. |
ISSUE OF COMPENSATION TO STATES | · The GST Compensation to States 2017 Act has many grey areas which have made the Council meetings a political slugfest. For instance, the compensation period is only for five years.
· But as Covid 19 shows, the revenue shortfall is likely to last longer and such other exigencies might occur in future also. · So necessary consensus should be reached on the extension of the compensation period, the manner of funding it, and also what the phrase “on account of GST” means in the Act. |
MODALITIES OF CALLING COUNCIL MEETINGS. | · As it stands, the Centre has the monopoly in calling or deciding the meetings of the Council by virtue of it being headed by the Union Finance Minister. This has resulted in an element of arbitrariness in the working of the Council.
· The States should have critical say in calling the meetings and also in deciding its agenda. For instance, if one-fourth of States demand Council meetings, then the Centre should schedule it urgently. Giving more voice to the States in the working of Council will allay their fears of losing out on the fiscal front thereby the working of the Council will become more productive. |
LIMITING BUREAUCRATIC LEGISLATION | · The GST Implementation Committee’s mandate must be clearly earmarked especially the items/areas where the Committee can make rules/regulations. Where substantive issues are involved, say changing the procedure of compliance, withholding input tax credit etc require approval from GST Council.
· GST Council is the microcosm of the State Legislatures and the Parliament and thus delegated legislation must not be pursued to an extent of bypassing these peoples’ representative institutions. · Further, every critical decision of the Council must be placed before the State Legislatures and their approval must be taken and/or the state GST Law be amended wherever needed. |
ESTABLISHMENT OF DISPUTE SETTLEMENT MECHANISM. | · Along with the adjudicatory mechanism provided under Art 279A (11), the GST Appellate Tribunal under CGST Act must be set up on priority. While the former will provide a platform for effective grievance redressal for federal units, the latter will cater to the taxpayer segment (Recently a PIL has been filed in the Supreme Court to direct the Centre to constitute the tribunals both at national and regional under CGST Act).
· Setting up these bodies will open up new chapters in the working of GST system and make the Council function with renewed purpose. |
THE CONCLUSION: The GST Council has been a pioneering experiment in the arena of fiscal federalism in India. Although fiscal sovereignty and autonomy are the key features of a federal political system, the States and centres have surrendered their taxation power for the collective good. Despite such noble intentions and objectives, the GST Council suffers from multiple issues, perhaps the biggest among them is the “nature of recommendations of the council”. Along with providing clarity on this issue, the increasing politicisation of the proceedings of the Council must be addressed. In order to make India Atmanirbhar, the GST Council must work in the spirit of “cooperative and collaborative federalism” than in “competitive and disruptive federalism”.
THE CONTEXT: Country’s first ‘One Health’ consortium launched by the Department of Biotechnology.
THE EXPLANATION:
ABOUT ONE HEALTH CONCEPT
SOURCE: PIB
THE CONTEXT: India has slipped to the 101st position among 116 countries in the Global Hunger Index (GHI) 2021 from its 2020 ranking (94), to be placed behind Pakistan, Bangladesh and Nepal.
THE EXPLANATION:
SOURCE: IE
THE CONTEXT: As per the government’s new rules, the gestational limit for termination of a pregnancy in India has been increased from 20 to 24 weeks for some categories of women.
THE EXPLANATION:
SOURCE: INDIA TODAY
THE CONTEXT: A global Covid-19 education recovery tracker has revealed that nearly half the countries across the world are still taking classes in the online and hybrid (both online and offline) mode while some are on an extended break due to the pandemic.
THE EXPLANATION:
Source: THEPRINT
THE CONTEXT: The state has seen a declining trend in rainfall during monsoon in the past two decades. The only silver lining was that the rainfall pattern was good this year, which was witnessed after a long gap.
THE EXPLANATION:
SOURCE:IE
THE CONTEXT: Government has given go-ahead for inviting the expression of interest for the installation of a 1000 MWh Battery Energy Storage System (BESS) as a pilot project.
THE EXPLANATION:
SOURCE: PIB
THE CONTEXT: Finance Minister and her American counterpart, Treasury Secretary Janet Yellen, met for the eight Ministerial meetings of the U.S.-India Economic and Financial partnership. The Ministerial held a session dedicated to climate finance for the first time.
THE EXPLANATION:
SOURCE: TH
THE CONTEXT: India was re-elected to the U.N. Human Rights Council for the 2022-24 term on Thursday with an overwhelming majority in the General Assembly, with New Delhi’s envoy describing the election as a “robust endorsement” of the country’s strong roots in democracy, pluralism and fundamental rights enshrined in the Constitution.
THE EXPLANATION:
SOURCE: TH
Q1. Consider the following statements with respect to “One Health Concept”
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
ANSWER: A
Explanation:
Prime Minister launched the Gati Shakti – National Master Plan for Multi-modal Connectivity. Gati Shakti — a digital platform — will bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.
[WpProQuiz 69]