DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 26th April 2023
Archives (PRELIMS & MAINS Focus) State Finances: A Study of Budgets of 2022-23 Syllabus Prelims –Economy Context: Recently, the State Finances: A Study of Budgets of 2022-23 report suggested that States’ gross fiscal deficit is set to fall in 2022-23. About State Finances: A Study of Budgets of 2022-23:- IMAGE SOURCE: Summary of the Economic Survey 2022-23 | A2Z Taxcorp LLP State Finances: A Study of Budgets of 2022-23″ is a report by RBI. It is a comprehensive analysis of the financial position of the Indian states, including the trends and challenges in their revenue and expenditure. Key Findings of the Report:- According to the RBI report, states’ debt is expected to decrease to 29.5% of GDP in 2022-23, compared to 31.1% in 2020-21. The report also highlights that this is still higher than the 20% recommended by the Fiscal Responsibility and Budget Management (FRBM) Review Committee in 2018. States are anticipating an increase in non-tax revenue, which is generated from sources such as fees, fines, and royalties. This increase is likely to be driven by revenue from industries and general services. The report notes that states are expecting to see an increase in revenue from various sources such as State GST, excise taxes, and sales taxes in the 2022-2023 fiscal year. Measures Suggested in the Report:- The report suggests that debt consolidation should be a priority for state governments. Debt consolidation: the process of combining multiple debts into a single, more manageable debt. By allocating more resources to key sectors such as healthcare, education, infrastructure, and green energy, the states can promote economic growth and development. The report is proposing that it would be beneficial to establish a fund that would be used to buffer capital expenditure during periods of strong revenue growth. In order to attract private investment, state governments should focus on creating a favourable environment for the private sector to operate and grow. States also need to encourage and facilitate higher inter-state trade and commerce to realize the full benefit of spillover effects of state capex across the country. MUST READ: RBI- Integrated Ombudsman Scheme SOURCE: THE INDIAN EXPRESS PREVIOUS YEAR QUESTIONS Q.1) Consider the following statements (2021) The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest. The Governor of the RBI draws his power from the RBI Act. Which of the above statements is correct? 1 and 2 only 2 and 3 only 1 and 3 only 1, 2 and 3 Q.2) Which among the following steps is most likely to be taken at the time of an economic recession?(2021) Cut in tax rates accompanied by an increase in interest rate Increase in expenditure on public projects Increase in tax rates accompanied by reduction of interest rate Reduction of expenditure on public projects State Wide Attention on Grievances by Application of Technology (SWAGAT) Syllabus Prelims –Governance Context: PM Modi is to attend the 20th anniversary of SWAGAT initiative in Gujarat via video conferencing soon. About State Wide Attention on Grievances by Application of Technology (SWAGAT):- IMAGE SOURCE: State Wide Attention on Grievances by Application of Technology (SWAGAT), India (slideshare.net) The SWAGAT initiative of the Government of Gujarat was started in 2003. It is an innovative concept that enables direct communication between the citizens and the Chief Minister, as also between the citizens and other functionaries of the Government. The fourth Thursday of every month is designated as SWAGAT day, wherein the highest office in administration attends to the grievances of the common man. There is a three-tier grievance redressal system under SWAGAT – at State, District andTaluka levels. It is now extended to the village level also. Grievances submitted at the taluka and district levels are first resolved by the authorities at the respective levels and, thereafter, all pending grievances are reviewed by the Chief Minister himself. An applicant under SWAGAT is given a unique ID through which he/she can access the case details and status online. Complaints are divided into three categories Policy Matters-where a gap in the policy requires attention Long Pending -where the case has remained unresolved for at least 6 months after initial application. First Timer – cases are first referred to the concerned subordinate office for attention. The focus in SWAGAT is primarily on the long pending issues. SWAGAT program up to the village level, named as GRAM SWAGAT, was launched on 1st February 2011. SWAGAT Online program going rural has helped the rural people living even in the remotest corner of the state to get their problems solved quickly. Following impacts have been noticed of the SWAGAT initiative:- Public accountability has been strengthened Citizen satisfaction increased as grievances were attended at the highest level Monitoring system focuses attention on unresolved cases Transparency is brought about as all stakeholders are present during the interaction with Chief Minister Inputs from all – citizens, officers and elected representatives- leads to fair decisions Activates local level administration by requiring local level grievance to be resolved to the extent possible before they escalate to state level. MUST READ: Grievance Appellate Committees (GACs) SOURCE: AIR PREVIOUS YEAR QUESTIONS Q.1) Consider the following statements : (2020) Aadhaar metadata cannot be stored for more than three months. State cannot enter into any contract with private corporations for sharing of Aadhaar data. Aadhaar is mandatory for obtaining insurance products. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India. Which of the statements given above is/are correct? 1 and 4 only 2 and 4 only 3 only 1, 2 and 3 only Q.2) In India under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020) Cost of restoration of the computer system in case of malware disrupting access to one’s computer Cost of a new computer if some
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