Lecture 1- Quote 2- Editorials 3- Current Affair Q 4- Subjective Q 5- Vocabulary 6- Maps Practice 7- Capital & Currency 8-News Analysis 9-Revision
Delhi Edition of The Hindu
Space for a cut Cutting the policy repo rate by 25 basis points- Reserve Bank of India has opted to play safe Monetary Policy Committee s majority decision Bimonthly policy statement-> slowdown over the past three months in core inflation retail price gains excluding those for food and fuel. Monsoon has so far been normal, -> Initial roll-out of GST has been smooth. Yet, the six-member panel has chosen to retain the neutral stance, given that it expects the trajectory of inflation-> uncertainties Implementation of farm loan waivers No clarity on-> when State governments will implement salary and allowance increases following the Centre s implementation of the seventh pay panel-related hikes. Given the inflation-targeting-> MPC Prices of inflation-sensitive tomatoes and onions Pressures may be building that could spur(प र रण ) higher animal protein costs for consumers.
Continue MPC acknowledges there are moderating forces at work a second successive normal monsoon that could check food costs and a stable international commodity price outlook that could help keep the inflation trajectory favourable. A poll of business sentiment in the manufacturing sector shows respondents expect a moderation in July-September from the preceding quarter. High levels of stress that continue to-> both lenders and corporate borrowers presage the unlikelihood of any uptick(इज फ ) in new investment.
How to curb invisible money Reforms suggested by the Election and Law Commissions must be given a chance Arun Jaitley statement-election Commission has failed to curb invisible money in polls is remarkable-> unusual for a senior Minister to make adverse remarks against a constitutional body in public. However, there are factual problems with his statement. Election Commission (EC) works in accordance with 1)-Article 324 of the Constitution of India, 2)-Representation of the People Act (RP Act), 3)-1951 and the rules framed by the government and 4)-Various judgments of the Supreme Court and High Courts. The power to frame rules under the RP Act has not been given to the EC by successive governments, which includes the current one.
Continue Most of the reform proposals by the EC have not been acted upon. It sent 22 proposals in 2004-> In December 2016, it sent 47 proposals including 1)- Election expenses and election petitions, 2)- Election campaign and advertisements, and 3)- Reforms relating to political parties. The government s actions, if any, are not available in the public domain. EC has recommended the same reform repeatedly only to have it rejected. There are also instances- Supreme Court has directed reforms in its decisions-> government and Parliament attempting to amend laws to prevent implementation judgments. Now to the electoral bonds the Finance Minister was referring to. To what extent these bonds will make invisible money visible was explained by him after he presented the Budget.
Continue Other proposals that Budget made were (a) to remove the limit of 7.5% on profits that a company can donate to a political party, and (b) to remove the requirement that the company making a donation to a political party disclose the name of the party and the amount donated. Two proposals will reduce invisibility or increase it is best left to a readers judgment. Minister also said, I asked political parties, both orally in Parliament and in writing, a better suggestion to me not one has come forward to date because people are quite satisfied in the existing system. Law Commission studied the issue in 1998-99 and presented its comprehensive assessment and proposals in its 170th report, titled Reform of the Electoral Laws. Democracy and accountability constitute the core of our constitutional system. It is therefore, necessary to introduce internal democracy, financial transparency and accountability in the working of the political parties.
Conclusion The RTI way-> A logical and simple way of introducing financial transparency and accountability in the working of the political parties, and recommended by the Law Commission, is to bring them under the Right to Information (RTI) Act, 2005. Central Information Commission (CIC) had said in a full bench decision in June 2013 that six national political parties were indeed public authorities under the RTI Act. Parties, including the ruling party now, refused to accept RTI When a petition was led in the Supreme Court to get the decision of the CIC implemented, the government said in a sworn affidavit submitted to the Supreme Court that political parties should not be under the purview of the RTI Act. The petition is still pending in the Supreme Court.
Don t stop driverless cars Policies need to be evaluated based on how they affect consumers A foreign bureaucrat once told American economist Milton Friedman that workers in his country were given shovels instead of tractors to build a canal because more jobs were created that way. Hearing this, Friedman is said to have quipped, If it s jobs you want, then you should give these workers spoons, not shovels.
Continue Union Minister for Road, Transport and Highways Nitin Gadkari s justi cation for opposing the entry of driverless cars into India is based on grounds similar to that of the foreign bureaucrat. The government is not going to promote any technology or policy that will make people jobless, he said recently. The Minister further stated that cab aggregators like Ola and Uber will not be allowed to use driverless cars as it could cost the economy as many as five million jobs. Luddite movement of the 19th century even called for the destruction of machines to save jobs Luddites were a group of English textile workers and weavers in the 19th century who destroyed weaving machinery as a form of protest The fear of disruptive technology causing massive job losses is nothing new-> Computers
Conclusion The interests of the consumer are paramount because, at the end of the day, everyone is a consumer and all economic activity is aimed at increasing the total amount of goods available at his disposal. As French economist Frédéric Bastiat put it: Treat all economic questions from the viewpoint of consumer, for the interests of the consumer are the interests of human race. India s policymakers would do well to heed the lessons of history
News Analysis Page-1,10,11-10 cr. seized from Cong. Minister I-T search at Bengaluru resort hosting Gujarat MLAs triggers accusations on the motives Opposition criticises govt. in Parliament Page-11- Congress, BJP not in favour of NOTA The Congress and the BJP seem to be on the same page as far as the use of None Of The Above (NOTA) option is concerned in the upcoming polls for the three Rajya Sabha seats from the Gujarat Legislature
Continue Page-1,10- Illegal miners must pay back in full: Supreme Court National Mineral Policy to prevent the theft of natural resources, Supreme Court directed that mining companies and leaseholders, who have engaged in mining activities without forest or environmental clearance, will have to pay the public exchequer compensation equivalent to 100% value of the minerals they extracted illegally. The court gave the Centre a deadline of December 31, 2017, to announce a fresh and more effective, meaningful and implementable policy. Judgment was on the basis of a PIL plea filed by NGO Common Cause about the rampant illegal mining of iron and manganese ore in Odisha.
Continue Page-5- Tiger reserve eco-zone runs into trouble The protective cover around Kali Tiger Reserve in Karnataka has been sharply reduced, as the State government, facing public pressure, has decided to limit the eco-sensitive zone (ESZ) around the park. Public pressure prompts Karnataka government to propose reduction in area
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Page-7- Coconut palm declared State tree of Goa
Continue Page-13- Banks should reduce rates for existing borrowers too: RBI RBI cut the policy repo rate by 25 basis points (bps) to 6%. lowest in over 6 years Page-13-Centre mulls One Nation, One Licence in new telecom policy Move may eliminate distinction between local, STD calls Ease of doing business
Continue Page-13- Revised semiconductor policy on anvil Minister asks IT secretary to go on war footing to get a fabrication unit in India With its earlier policies failing to attract electronic chip makers to invest in India, the government is now looking to rework policy to incentivise technology firms and investors to set up semiconductor wafer manufacturing units in the country. Semiconductors form about 30% of the cost of all electronic products, including mobiles. As per industry estimates, the Indian ESDM market is expected to grow from $31.6 billion in 2015 to $400 billion by 2020. Page-14-Darjeeling tea crop drops 89.5% in June Political turmoil cited as reason
Last Day- Q s- Ans 1. Indian states touching Bhutan - Sikkim, Assam, Arunachal Pradesh and Bengal ( West Bangal)-> ( Trick - Bhutan ke SAAB) 2. Chairman of NITI Aayog - Narendra Modi. 3. The Prime Minister serves as the Ex-officio chairman. 4. Horn of Africa - Djibouti, Eritrea, Ethiopia, and Somalia.