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DAILY NEWS ANALYSIS from THE HINDU 1 Ith AUGUST 2017 By JATIN VERMA Educator Unacademy For Daily The Hindu News & Editorial analysis- Visit my Unacademy profile- www.unacademy.com/user/studiousjatin
News Articles To be Discussed I. No more vehicle insurance without pollution certificate: Supreme Court. 2. UAE joins chorus of concern over Doklam 3. Parliamentray Panel moots defence procurement fund 4. Amended Banking Regulation Bill gets Rajya Sabha's nod. 5.Tiny territory caught in a global war of words 6. By 2020, petroleum subsidy bill to halve
Page-10: Parliamentray Panel moots defence procurement fund . The Ministry of Defence (MoD) has gone back on its demand for a non-lapsable capital fund for defence procurements, even as the Parliamentary Standing Committee (PSC) on Defence asked the Ministry of Finance to work out the modalities for the creation of such a fund in consultation with the MoD. In its latest report presented in the Parliament, the Committee said:"Hence, the Committee would like the Ministry of Finance to work out the modalities for the creation of a 'non-lapsable defence capital fund account in consultation with the Ministry of Defence and apprise the Committee of the progress made in this direction at the earliest, and not later than three months of the presentation of this report to Parliament" . However, it is surprising that the MoD is going back on its original demand for such a fund. It was earlier keen on such a fund to prevent the unspent amount in a financial year from being returned to the Finance Ministry as defence purchases generally tend to have long procurement cycles. The reasons for no longer seeking the fund are: [i] the limited utility of such a fund [i]rules governing its creation that state the Government should have surplus funds (which is not so in the prevailing fiscal situation), and [ii]assurance from the Finance Ministry for additional funds, if required.
Page-11:AmendedBanking Regulation BillgetsRajya Sabha's nod. . It empowers the Reserve Bank of India to issue instructions to PSBs to act against major defaulters by amending Banking Companies (Regulation) Act, l949. . The Rajya Sabha passed the Banking Regulation (Amendment) Bill, which empowers the Reserve Bank of India to issue instructions to the banks to act against major defaulters.The Bill earlier passed by the Lok Sabha, will replace the Banking Regulation (Amendment) Ordinance, 2017 Finance Minister said there was nothing wrong in banks giving out loans and trying to recover them. Since RBI also performed other functions like public debt management,apart from regulation. Responding to demands for making the names of big defaulters public, FM said it was being done in the case of wilful defaulters. Only in cases of normal commercial transactions were the names not made public. Asked about the Panama cases, he said action had been taken pertaining to all foreign account details that had come. . On the concerns raised by Congress member about rising non-performing assets (NPA), Mr. Jaitley said they stood at Rs. 6.41 lakh crore by March this year.They were growing because of accumulated interests Along with the stressed assets,they amounted to over Rs. 8 lakh crore. After the insolvency law, which provides for a window of 180 days for debtors to settle the matter or face eviction and subsequent takeover of management by debt reconstruction companies, things had started improving. Debtors were now coming forward to settle unresolved issues with lenders.
Page 12 World News:Tiny territory caught in a global war of words Residents of the tiny territory-just 19 km at its widest point and circled with beautiful beaches-find themselves again caught in the middle of a war of words as a volley of hostile rhetoric was launched between North Korea and the United States,including pointed threats of nuclear action. Guam has been a U.S. territory since 1898, when Spain ceded it in the wake of the Spanish American War. It has a population of around 1,63,000 comparable to a small city in the Midwest. The island has been the focus of North Korean threats in the past, as the home base for nuclear- equipped bombers that have the capacity to strike the reclusive nation. Tests of North Korea's own missile suggest that now, the island is within the range of Pyongyang. Guam is about 3,380 km southeast of Pyongyang,and 6,115 km west of Honolulu. . The majority of islanders are ethnically Chamorro the indigenous group that has lived on the island for thousands of years- and their culture is a touchstone for the islander's way of life. Life on Guam is also deeply tied the military bases and the service members stationed at them.Andersen Air Force Base and Naval Base Guam house an estimated 13,000 military members and their dependent:s. One third of the island is owned by the U.S. military.
Business Page 13: By 2020. petroleum subsidy bill to halve Triple F Subsidy syndrome: The government expects to more than halve its petroleum subsidy bill over the next three years, from 325,000 crore this year to just 10,000 crore by 2019-20. Fertiliser subsidies are expected to stay flat, Food subsidy bill is estimated to shoot up sharply from .45 lakh crore this year to 2,00,000 crore by 2019-20, as per the medium-term expenditure framework tabled by the finance ministry in Parliament. Food, fertiliser and fuel subsidies for which the Centre has budgeted over 2.4 lakh crore are expected to rise to R2.8 lakh crore by 2019-20, but the government expects the overall proportion of subsidies to GDP to come down from 1.4% to 1.3% over the same period. Following the abolition of price controls over diesel and petrol prices, the government has set its eye on rationalising kerosene and LPG subsidies, with a March 2018 target for eliminating the LPG cylinder subsidy altogether by raising prices by each month. Efforts are also underway to bring kerosene subsidies under the direct benefit transfer regime or while making some States kerosene-free . . On the food subsidy due to about 80 crore beneficiaries under the National Food Security Act, the nt said reforms have been initiated with six States automating all fair price shops and 72% of Ration cards being seeded with Aadhaar numbers
Public Expenditure: Indicating a continued thrust on public spending to spur the economy(Keynesian Theory), the finance ministry expects government's capex to rise by 25% to 13.9 lakh crore by 2019-20, driven largely by greater spending on defence, Railways, road transport and urban development. Tax Collection: Finance ministry has asserted that any shocks to tax collections due to the introduction of the Goods and Services Tax (GST) will be absorbed in the current financial year itself, so the tax to GDP ratio may persist at the same level this year as last year-11.3%. e But in the next two years, the government is betting on an expansion of the tax base, citing gains from GST and increased surveillance efforts post-demonetisation The tax-GDP ratios are projected to be l 1.6% and 1 1.9%, in 2018-19 and 2019-20, respectively. The tax-to-GDP ratio is the ratio of tax collected compared to national gross domestic product (GDP). Some countries aim to increase the tax-to-GDP ratio by a certain percentage to address deficiencies in their budgets For Indian Polity Crash course, Visit my Unacademy profile- www.unacademy.com/user/studiousjatin
. Interest payments amounting to?5.23 lakh crore this year, which constitute the largest component of the government's revenue expenditure, are expected to rise nominally to 36.15 lakh crore by 2019-20, but the government is confident that there will not be any upward pressure on interest rates' owing to its borrowings. while the fiscal deficit has been pegged at 3% of GDP for the next two financial years (from 3.2% this year), the government expects interest costs as a proportion of gross tax revenues to dip from 27.4% this year to 24.4% by 201 9-20. . Citing a substantial 12,000 crore saving from interest payments estimated for 2016-17,it said this is indicative of'the economy moving towards a more benign interest rate cycle.' . If this trend continues, it will have an impact not only on the government expenditure but also will have a salutary impact on the investment decisions of economic agents in the country.
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Socio (17) J C Secure https://unacademy.com/user/jatin7777 atin verma Searching for "jatin verma" EDUCATORS Mahesh Verma Jatin Verma COURSES The Hindu - Daily News Analysis July 2017 (Hind) The Hindu -Daily News Analysis July 2017 By Jatin Verma (Hind) The Hindu Daily Editorial Analysis for June 2017 y Jatin Verma The Hindu-Daily NewS Analysis for June 2017 The Hindu-Daily Editorial Analysis for July 2017 For Daily PRESS INFORMATION BUREAU updates, Visit my Unacademy profile- www.unacademy.com/user/studiousjatin