CURRENT AFFAIRS – 06/09/24

1. Public Accounts Committee

Q.With reference to the Public Accounts Committee, consider the following statements:

1. It examines the annual audit reports of CAG.
2. A minister can be elected as a member of this committee.
3. The Rajya Sabha has no representation in this committee.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 3 only

Answer: (a) 1 only

Explanation: 

In NEWS: Public Accounts Committee to hold ‘performance review’ of regulatory bodies

About Parliamentary committees: 

• This committee was set up first in 1921 under the provisions of the Government of India Act of 1919 and has since been in existence. 
• At present, it consists of 22 members (15 from the Lok Sabha and 7 from the Rajya Sabha). Hence statement 3 is incorrect.
• The members are elected by the Parliament every year from amongst its members according to the principle of proportional representation by means of the single transferable vote.  Thus, all parties get due representation in it. 
• The term of office of the members is one year. 
• A minister cannot be elected as a member of the committee. Hence statement 2 is incorrect.
• The chairman of the committee is appointed from amongst its members by the Speaker. Until 1966 – ‘67, the chairman of the committee belonged to the ruling party. However, since 1967 a convention has developed whereby the chairman of the committee is selected invariably from the Opposition.
• The function of the committee is to examine the annual audit reports of the Comptroller and Auditor General of India (CAG), which are laid before the Parliament by the President. Hence statement 1 is correct.
• The CAG submits three audit reports to the President, namely, audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings. 
• The committee examines public expenditure not only from legal and formal point of view to discover technical irregularities but also from the point of view of economy, prudence, wisdom and propriety to bring out the cases of waste, loss, corruption, extravagance, inefficiency and nugatory expenses.

Source: 

https://www.thehindu.com/news/national/public-accounts-committee-to-hold-performance-review-of-regulatory-bodies/article68610223.ece

https://loksabhadocs.nic.in/our%20parliament/Parliamentary%20Committees.pdf

2. Financial relations between centre and state

Q. Consider the following statements:

Statement-I:  

The centre has an exclusive power to levy and collect GST.

Statement-II: 

The Constitution of India mandates that no tax can be levied or collected in India except by the authority of law.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the

correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct, and Statement-II is not

the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

Answer: (d) Statement-I is incorrect but Statement-II is correct

Explanation: 

In NEWS: 

No friction between Centre-States on GST; federal structure should be respected: Nirmala Sitharaman. 

Central, State Ministers in the GST Council have a joint focus on revenue generation, better tax compliance, says FM, dismissing political narrative; Council to discuss GoM suggestions on rate reduction at September 9 meet.

 Financial relations between centre and state:

• Centre State Financial Relations in Part XII of the Indian Constitution (Articles 264-293), govern the distribution of financial resources and responsibilities between the central and state governments. 
• Article 265 of the Constitution of India states that no tax can be levied or collected in India except by the authority of law. Hence statement 2 is correct.
• These provisions outline mechanisms for revenue sharing, taxation powers, grants-in-aid, and other financial matters. 
• The goal is to ensure fiscal autonomy for states while also maintaining financial stability and equity across the country. 
• These relations play a crucial role in fostering cooperative federalism and ensuring the effective functioning of the Indian federal system.

Allocation of taxation powers:

• Union List/State List: Parliament/state legislature has exclusive power to levy taxes on subjects enumerated in the Union/State List.
• Residuary Power: The residuary power is vested in the Parliament. Under this provision, the Parliament has imposed gift tax, wealth tax and expenditure tax.
• Concurrent List: There are no tax entries in the Concurrent List. In other words, the concurrent jurisdiction is not available with respect to tax legislation.
• Concurrent Powers for GST Legislation: However, The 101st Amendment Act of 2016 has made an exception by making a special provision with respect to GST. 
• This Amendment has conferred concurrent power upon Parliament and State Legislatures to make laws governing GST.
• Constitutional Distinction: The Constitution along with some restrictions on the taxing power of the states, also draws a distinction between the power to levy and collect a tax and the power to appropriate the proceeds of the tax so levied and collected. Hence statement 1 is incorrect.

Source: 

https://www.thehindu.com/business/no-friction-between-centre-states-on-gst-federal-structure-should-be-respected-nirmala-sitharaman/article68609188.ece

https://indianexpress.com/article/business/friction-centre-states-gst-federal-structure-nirmala-sitharaman-9551914/

3. The National Food Security Act, 2013

Q. With reference to the National Food Security Act, 2013, consider the following statements:

1. It aims to provide free food grains to all households in the rural area.
2. Pregnant women and lactating mothers are entitled to receive maternity monetary benefits.

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: (b) 2 Only 

Explanation: 

In NEWS: As anticipated, implementation of Public Distribution System (PDS) reforms as mandated in the National Food Security Act, has reduced leakages.

The National Food Security Act, 2013:

• The National Food Security Act, 2013 (also Right to Food Act) is an Act of the Parliament of India which aims to provide subsidised food grains to approximately two thirds of India’s 1.2 billion people. Hence statement 1 is incorrect.
• Under the provisions of the act, beneficiaries of the Public Distribution System (or, PDS) are entitled to 5 kilograms (11 lb) per person per month of cereals at the following prices:
  • Rice at ₹3 per kg
  • Wheat at ₹2 per kg
  • Coarse grains (millet) at ₹1 per kg.
• The National Food Security Act, 2013 (NFSA 2013) converts into legal entitlements for existing food security programmes of the Government of India. 
• It includes the Midday Meal Scheme, Integrated Child Development Services scheme and the Public Distribution System. 
• Further, the NFSA 2013 recognizes maternity entitlements. The Midday Meal Scheme and the Integrated Child Development Services Scheme are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).

Benefits:

• Pregnant women and lactating mothers are entitled to receive maternity monetary benefits.
• Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals. Hence statement 2 is correct.

Beneficiary:

• Antyodaya Anna Yojana (AAY) households and households identified eligible by the States/UTs

Source: 

https://www.thehindu.com/opinion/lead/the-food-security-act-has-revamped-the-pds/article68610659.ece

https://eastjaintiahills.gov.in/scheme/national-food-security-act/

4. The World Employment and Social Outlook report

Q. The World Employment and Social Outlook report is published by 

1. The World Inequality Lab
2. The United Nations Conference on Trade and Development 
3. The International Labour Organization
4. The World Economic Forum 

Answer: (c) The International Labour Organization

Explanation:  

In NEWS: Income inequality – More jobs and higher taxes can counter the effects of automation

Highlights of the report: 

• The International Labour Organization’s (ILO) World Employment and Social Outlook report links declining labour income shares to technological advances like automation and artificial intelligence. 
• Between 2004-2024, global labour income share dropped by 1.6%, with 40% of this decline occurring during the pandemic. 
• This drop equals a $2.4 trillion global loss in wages. 
• The report also emphasises the gender disparity, with 28.2% of young women not in employment, education, or training, compared to 13.1% of young men.
• The rise in inequality, worsened by jobless growth and AI advancements, has sparked discussions around universal basic income (UBI). 
• Countries like Switzerland and politicians like Andrew Yang and Rahul Gandhi have proposed UBI as a solution, though these attempts have yet to succeed. 
• Despite the creation of high-paying jobs through automation, the income inequality trend continues to widen. 
• The article suggests that developing countries like India could address inequality by reintroducing inheritance tax and promoting policies like UBI to meet Sustainable Development Goal 10, which aims to reduce inequality within and among countries.

Source: 

https://www.thehindu.com/opinion/editorial/%E2%80%8Bincome-inequality-on-the-ilos-world-employment-and-social-outlook-study/article68609994.ece#:~:text=More%20jobs%20and%20higher%20taxes%20can%20counter%20the%20effects%20of%20automation&text=The%20ILO’s%20World%20Employment%20and%20Social%20Outlook%20study%20(September)%20has,mainly%20automation%20and%20artificial%20intelligence.

5. India’s ‘Critical Mineral Mission’

Q. Consider the following:

1. Silicon
2. Lithium
3. Copper
4. Tin

Which of the above are classified as critical minerals in India?

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

Answer: (d) 1, 2, 3 and 4

In NEWS: 

Africa can make India’s ‘critical mineral mission’ shine

Background: 

• In the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman announced the setting up of a Critical Mineral Mission. 
• In August the Ministry of Mines organised a seminar to discuss its objectives. 
• Officials noted that efforts are being fast tracked in ‘mission mode’ towards three aims: expand domestic production, prioritise the recycling of critical minerals, and incentivise overseas acquisition of assets.

The National Critical Mineral Mission (NCCM):

• It  is a strategic initiative to ensure a sufficient supply of critical minerals in India. 
• The mission’s objectives include: 

1. Increasing domestic production – The NCCM aims to boost the output of critical minerals by improving exploration and mining activities. 
2. Securing international supplies – The NCCM aims to acquire long-term supply contracts with resource-rich countries, especially in Africa. 
3. Reducing import dependency – The NCCM aims to diversify supply sources by acquiring domestic capabilities and looking for overseas mineral deposits. 
4. Supporting clean energy technologies – The NCCM aims to support clean energy technologies through sustainable and efficient mining practices. 

About Critical Minerals:

• Critical minerals are a subset of minerals considered crucial for the manufacturing and technological needs of companies, industries, nations, or even the world.
  • For example, rare earth elements are required for the production of permanent magnets used in wind turbines, while electricity networks need vast amounts of copper and aluminium.
• Government has released a list of 30 critical minerals for India.  
• These minerals are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE,Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium,Zirconium, Selenium and Cadmium. Hence all the statements are correct.

Source: 

https://www.thehindu.com/opinion/op-ed/africa-can-make-indias-critical-mineral-mission-shine/article68610753.ece

https://mines.gov.in/admin/storage/app/uploads/649d4212cceb01688027666.pdf

6. Vertical Fiscal Imbalance

Q. Consider the following statements:

Statement-I:

Vertical Fiscal Imbalance (VFI) is the condition where expenditure decentralisation overwhelms the revenue raising powers of the States.

Statement-II:

If the ratio of the sum of the Own Revenue Receipts (ORR) to the tax devolution from the Union government for all States is less than 1, it implies VFI.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

ANSWER: (a) Both Statement-I and Statement-II are correct and Statement-II is the

correct explanation for Statement-I

Explanation: 

In NEWS: The role of the 16th Finance Commission should be to eliminate vertical fiscal imbalance in federal relations. 

Background: 

• The financial relationship between the Union government and the States in India is asymmetrical, as in many other countries with a federal constitutional framework. 
• As the 15th Finance Commission noted, States incur 61% of the revenue expenditure but collect only 38% of the revenue receipts. 
• In short, the ability of the States to incur expenditures is dependent on transfers from the Union government. 
• Consequently, there is the problem of Vertical Fiscal Imbalance (VFI) in Indian fiscal federalism where expenditure decentralisation overwhelms the revenue raising powers of the States. Hence statement 1 is correct.

VFI in India:

• To estimate the VFI in India after the devolution of taxes to the States. We measure VFI at the level of “all States”, and not separately for each State. 
• For this, we use a globally accepted method. We first estimate a ratio where the numerator is the sum of the Own Revenue Receipts (ORR) and the tax devolution from the Union government for all States. The denominator is the Own Revenue Expenditure (ORE) for all States.
  • If this ratio is less than 1, it implies that the sum of own revenue receipts and tax devolution of the States is inadequate to meet the ORE of the States. Hence statement 2 is correct
  • If we subtract this ratio from 1, we get the deficit in receipts. It is this deficit that we use as a proxy for VFI after devolution.

Source: https://www.thehindu.com/business/Economy/what-is-vertical-fiscal-imbalance/article68611117.ece#:~:text=In%20short%2C%20the%20ability%20of,raising%20powers%20of%20the%20States. 

7. Loss & Damage Fund

Q. Which one of the following best describes the term “Loss & Damage Fund”?

1. To promote afforestation and regeneration activities as a way of compensating for forest land diverted to non-forest uses.
2. To address the irreversible consequences of climate change that cannot be avoided or mitigated through adaptation efforts.
3. To help developing countries shift to low-emission and climate-resilient development pathways.
4. To cover the expenses of emergency response, relief, and rehabilitation in the event of a disaster.

Answer: (b) To address the irreversible consequences of climate change that cannot be avoided or mitigated through adaptation efforts.

Explanation: 

In NEWS: Can Kerala access funds from the Loss and Damage Fund?

CAMPA Fund – Compensatory Afforestation Fund Management and Planning Authority (CAMPA) are meant to promote afforestation and regeneration activities as a way of compensating for forest land diverted to non-forest uses. Hence option (a) is incorrect.

The ‘Loss and Damage’ (L&D) fund is a financial mechanism designed to address the irreversible consequences of climate change that cannot be avoided or mitigated through adaptation efforts. Hence option (b) is correct

The Green Climate Fund (GCF) became fully operational in 2015 as a dedicated fund to help developing countries shift to low-emission and climate-resilient development pathways. Hence option (c) is incorrect.

National Disaster Response Fund (NDRF) – This fund is managed by the central government to cover the expenses of emergency response, relief, and rehabilitation in the event of a disaster. Hence option (d) is incorrect.

Source: 

https://www.thehindu.com/sci-tech/energy-and-environment/can-kerala-access-funds-from-the-loss-and-damage-fund-explained/article68611070.ece

8. India – Singapore Trade relations

Q. Consider the following statements:

1. Singapore is the 6th largest trading partner of India. 
2. Singapore is the largest source of FDI to India.
3. Singapore is the first nation with which India has begun this cross-border Person-to-Person (P2P) payment facility.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Answer: (c) All three

Explanation: 

In NEWS:

India and Singapore signed four Memorandum of Understanding (MoU) in the fields of digital technologies, semiconductors, health cooperation and skill development, which will further strengthen the cooperation between the two nations.

Highlights of the MoUs:

1. For cooperation in the field of digital technologies.

• It will facilitate closer cooperation between India and Singapore in the areas of digital technologies, such as DPI, cyber-security, 5G and emerging technologies such as Super-computing, Quantum Computing and Artificial Intelligence.
• The MoU will further enable cooperation for upskilling and reskilling of workers relating to the digital domain under the ambit of this MoU.

2. Semiconductor Ecosystem Partnership:

• Under this agreement, India and Singapore will cooperate in the areas of semiconductor cluster development, cultivation of talent in semiconductor design and manufacturing.
• Notably, Singaporean companies, which are part of global semiconductor value chains, are keen to invest in India. Dialogue mechanisms set under this MoU will facilitate their investments in India.

3. Field of health and medicine:

• This agreement will facilitate joint efforts on research and innovation in areas of mutual interest.
• The MoU also aims to promote closer cooperation in the areas of human resource development in the healthcare and pharmaceutical sectors. It will complement New Delhi’s efforts to promote Indian healthcare professionals in Singapore.

4. On educational cooperation and skills development.:

• The agreement aims to promote closer cooperation in the areas of technical and vocational education and training.
• India and Singapore have active collaboration in the area of skill development. This MoU will complement those ongoing initiatives.

India – Singapore Trade relations:

• Trade: Singapore is India’s 6th largest trade partner (2023-24) with a share of 3.2 % of India’s overall trade. Hence statement 1 is correct
• Investments: In FY 2023-24 Singapore was the largest source of FDI into India. FDI equity inflows in India from Singapore during 2023-24 stood at US$ 11.774 billion.
  • Top sectors attracting FDI Equity inflows from Singapore are: Services Sector, Computer Software & Hardware, Trading, Telecommunications and Drugs & Pharmaceuticals. Hence statement 2 is correct
• Skill Development: There is active collaboration between India and Singapore to establish skill development centers in various sectors.
• Fintech: Commercial and technical arrangements have also been worked out for the acceptance of RuPay card in Singapore.
  • UPI-Paynow Linkage is another landmark development in the area of cross-border Fintech. 
  • Singapore is the first nation with which India has begun this cross-border Person-to-Person (P2P) payment facility. Hence statement 3 is correct.
  • Other initiatives include ONDC
    • – Proxtera Connectivity (making Proxtera first international buyer app connected to ONDC), 
    • GIFT Connect (collaboration between the National Stock Exchange of India (NSE) and the Singapore Exchange (SGX) to create a unified liquidity pool for NIFTY products in GIFT City), 
    • Trade Trust (initiative to enable interoperable electronic Bills of Lading (eBLs) for cross-border trade finance transactions).
• S&T Cooperation – ISRO has launched several Singaporean satellites, Singapore’s first indigenous built micro-satellite in 2011, 2 more in 2014, 6 in 2015 and 9 in 2023

Source: 

https://www.thehindu.com/sci-tech/technology/india-singapore-sign-mous-related-to-digital-technology-semiconductors/article68608500.ece

https://indianexpress.com/article/explained/why-pm-narendra-modis-visit-to-singapore-is-significant-for-indias-semiconductor-push-9552760/

https://www.hcisingapore.gov.in/pages?id=eyJpdiI6IlQyQ0ZQRlFpdWwxMFlDUnM4YWxMdmc9PSIsInZhbHVlIjoiOTFHaGhPbjd3UjIzSDcwblp2K1M0UT09IiwibWFjIjoiNGQ5ZjNiMzZhNDE1MGVmODEyNWMxNjA4ZThhMzM0YTQyNzQyYTgyYjc1ZjQ2MDkzNDRmMGUxYzk3MDZjYjVhNCJ9&subid=eyJpdiI6IlR6dkRBaU9KblBLUENcL2p0UGxBVDBBPT0iLCJ2YWx1ZSI6ImdkV0gwS0xCRldQdUgyK2VzR1JPN2c9PSIsIm1hYyI6IjNhZTA4YmIyZDZiNWMyOTgyZjAyOTczZjI2N2M1OWIwMDJhZjExNDRkNmEwNzU3NmNlYTFhOTQ2MmMzNzg0NjcifQ==

9. Abrogation of Article 370

Q. Consider the following statements:

1. The constitution of India empowers the President to abrogate Article 370.
2. All Indian laws, including those related to fundamental rights are applicable to Jammu and Kashmir after August 5, 2019.

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: (c) Both 1 and 2

Explanation: 

In NEWS: JKPC manifesto vows to restore Article 370, Article 35A, and J&K’s Statehood 

Article 370: 

• Article 370 was a provision in the Constitution of India that granted a special autonomous status to the region of Jammu and Kashmir (J&K). 
• It was included in Part XXI of the Indian Constitution under the heading “Temporary, Transitional and Special Provisions.” 

Key Provisions of Article 370:

• Autonomy: Jammu and Kashmir had its own Constitution and was permitted to make its own laws, except in areas like defense, foreign affairs, finance, and communications. Indian laws passed by the Parliament did not automatically apply to J&K.
• Separate Constitution: Unlike other states, J&K had its own Constitution, and residents of the state lived under a separate set of laws, including those related to citizenship, property rights, and fundamental rights.
• Presidential Orders: The President of India could apply Indian laws to J&K through Presidential Orders, but only with the concurrence of the state government.
• Abolition or Amendment: Article 370 could only be amended or abolished with the recommendation of the Constituent Assembly of Jammu and Kashmir, which no longer existed after 1956. This made the provision effectively permanent, despite its designation as “temporary.”

Abrogation of Article 370 (August 5, 2019):

• On August 5, 2019, the Government of India, led by Prime Minister Narendra Modi, revoked Article 370, effectively ending the special status of Jammu and Kashmir.
• Presidential Order and Parliamentary Resolution: A Presidential Order was issued superseding the earlier provision that required the J&K government’s consent for any constitutional changes. A resolution passed by Parliament then revoked the special status. Hence statement 1 is correct
• Reorganization of Jammu and Kashmir: The state of Jammu and Kashmir was bifurcated into two Union Territories—Jammu and Kashmir (with a legislative assembly) and Ladakh (without a legislative assembly).
• Application of Indian Laws: After the abrogation, all Indian laws, including those related to fundamental rights and the Indian Penal Code, became applicable to Jammu and Kashmir, thus integrating it fully into the Indian Union.

Rationale for Abrogation:

• National Integration: The government argued that Article 370 had created a barrier between Jammu and Kashmir and the rest of India, and its removal was necessary for full integration.
• Development: It was believed that the abrogation would lead to greater economic development, bring more investments, and improve the socio-economic conditions of the region.
• Security: The region had witnessed prolonged insurgency and violence, and the government viewed the special status as an obstacle to combating terrorism effectively.

Current Status:

• Jammu and Kashmir now functions as a Union Territory, and Indian laws are fully applicable there. However, the region continues to face security and political challenges, and the move remains a topic of significant debate both domestically and internationally. Hence statement 2 is correct

Source: https://www.thehindu.com/elections/jammu-and-kashmir-assembly/jkpc-to-fight-for-pre-2019-constitutional-position-of-jk-says-party-manifesto/article68610909.ece 

10. Which one of the following is synthesised in human body that dilates blood vessels and increases blood flow?

(a) Nitric oxide

(b) Nitrous oxide

(c) Nitrogen dioxide

(d) Nitrogen pentoxide

Answer: (a)  Nitric oxide