TOPIC : GS 3 Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment
Avoiding breakdown
What is the news?
- After a gap of over seven months, the GST Council will now meet on May 28, Finance Minister Nirmala Sitharaman announced.
- That the Council, expected to meet every quarter, has taken possibly the longest pause in its functioning does not set a good precedent.
- Given the bitter that transpired in its last few meetings over how the States’ GST compensation dues for the pandemicÂinduced lock downÂdented 2020Â21
- This were to be met, the long break makes CentreÂState equations even more difficult .
- States later reluctantly agreed to the Centre’s proposal to raise 1.1 lakh crore of GST recompense dues through special market borrowings,
- The Finance Ministry backed off from insisting that States raise these loans directly.
- In the intervening period, the economy almost surged back to normalcy before being hobbled again by the second wave of infections.
- And unlike the first wave, there is a greater onus on the States now to figure out everything from mobility restrictions to put in place,
- To vaccination sequencing and the bigger headache of sourcing enough vaccines from within or outside India are the larger problems of India
- A Council meeting before or after the Union Budget could have helped calm States’ worried nerves.
- Ignored the call by several States for a Council meet all these months, citing the Assembly polls, the Centre will now also have to contend with a slight change in equations.
- States perspective it would be necessary to get clarity on the modalities for receiving the 63,000 crore GST compensation still due to them along with this year’s dues in a timely manner.
- Cash flow visibility would help them gear up better, be it for vaccines or subsequent COVIDÂ19 waves.
- Even more pressing is the demand to drop GST on material to battle the pandemic, including the 12% tax on oxygen concentrators, 5% on vaccines, and on relief supplies from abroad.
- Tax experts believe solutions are possible to reduce the GST burden.
- The Centre had dropped the GST on sanitary napkins after strongly defending the tax with one stated worry being cheap imports.
- In the case of vaccines and critical supplies the more the imports the merrier it is now.
Way forward
- GST revenue will be shared with the States may be factually correct, but surely neither the States nor the Centre are eyeing COVIDÂ19 expenses as a fat source of revenue.
- An accommodative approach from the Centre could ensure India’s fiscal federalism framework does not suffer an irrevocable breakdown at this disastrous point .
Mains Question
The much delayed convening of the GST Council comes at a critical juncture. Explain the statement
PRELIMS PUNCHERS
- National Programme on Advanced Chemistry Cell Battery Storage
The Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of Department of Heavy Industry for implementation of the Production Linked Incentive Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of Fifty (50) Giga Watt Hour of ACC and 5 GWh of “Niche” ACC with an outlay of Rs.18,100 crore. Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure a minimum 60% domestic value addition at the Project level within five years.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. The consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years. It is expected that the dominant battery technologies will control some of the world’s largest growth sectors.
Sources : https://pib.gov.in/PressReleasePage.aspx?PRID=1717938
- Pualreng Wildlife Sanctuary
A beautiful state in the north-eastern part of India, sharing a boundary with Myanmar and Bangladesh and boasting of a rich flora and fauna. The wildlife sanctuaries in Mizoram cover a large area and are home to an abundance of fauna and flora for natural or zoological significance. The wildlife Sanctuaries in Mizoram are full of adventures
Important Birds are Great Indian hornbill, Wreathed Hornbill, Pied hornbill , Khaleeej Pheasant , Bhutan peacock pheasant , Red jungle fowl , White cheeked partridge etc. Important Wild Animals Arboreal animals like Hoolock gibbon Slow lorries, Common Langur, Rhesus macaque, etc. Himalayan black bear, Leopard, Sambar, Barking Deer, Binturong ,Chinese pangolin etc.
- Legal Metrology Act
It standardizes these measurements & measuring instruments as per the legal requirements. This legality ensures accuracy of the weighments and measurements. The main purpose of the act is to establish Standards and Enforce Weights Measures and Numeration in Trade and Commerce
Administered agency is Ministry of Consumer Affairs, Food and Public Distribution. The act will regulate pre-packaged commodities as per these rules, the pre-packaged commodities should follow mandatory labeling requirements
- Kopili fault line
The tremors have been attributed by the NCS to the Kopili fault zone closer to Himalayan Frontal Thrust. This is a seismically active area falling in the highest Seismic Hazard Zone V. It is associated with collisional tectonics because of the Indian Plate subducting beneath the Eurasian Plate. Subduction is a geological process in which one crustal plate is forced below the edge of another.
The Kopili fault zone is a 300 km long and 50 km wide lineament (linear feature) extending from the western part of Manipur up to the tri-junction of Bhutan, Arunachal Pradesh and Assam. The fault itself is a transpressional fracture that generates lower crustal dextral strike-slip earthquakes. The Kopili fault is currently the most active seismic zone in North East India. Squeezed between the subduction and collision zones of the Himalayan belt and Sumatran belt, the North East is highly prone to earthquake occurrences.
PRELIMS QUESTION
Qn 1 Consider the following statement with reference to Legal Metrology Act, 2009
- The main purpose is to establish Standards and Enforce Weights Measures and Numeration in Trade and Commerce
- Ministry of Commerce and Industry is the administered agency
Select the correct statement using code given below.
(a). 1only                                (b) 2 only
(c). Both of them                (d). None of the above
Answer : A
Legal Metrology standardizes these measurements & measuring instruments as per the legal requirements. This legality ensures accuracy of the weighments and measurements. The main purpose of the act is to establish Standards and Enforce Weights Measures and Numeration in Trade and Commerce
Administered agency is Ministry of Consumer Affairs, Food and Public Distribution. The act will regulate pre-packaged commodities as per these rules, the pre-packaged commodities should follow mandatory labeling requirements
Qn 2. Pualreng Wildlife Sanctuary is located in which of following state
1.Manipur
- Mizoram
- Nagaland
- Tripura
Answer : B
A beautiful state in the north-eastern part of India, sharing a boundary with Myanmar and Bangladesh and boasting of a rich flora and fauna. The wildlife sanctuaries in Mizoram cover a large area and are home to an abundance of fauna and flora for natural or zoological significance. The wildlife Sanctuaries in Mizoram are full of adventures
Important Birds are Great Indian hornbill, Wreathed Hornbill, Pied hornbill , Khaleeej Pheasant , Bhutan peacock pheasant , Red jungle fowl , White cheeked partridge etc. Important Wild Animals Arboreal animals like Hoolock gibbon Slow lorries, Common Langur, Rhesus macaque, etc. Himalayan black bear, Leopard, Sambar, Barking Deer, Binturong ,Chinese pangolin etc.