February 02, 2024 | Your One-Stop Solution for Daily Preparation
The greenhouse effect | Explained
The greenhouse effect and global warming are just two of the several climate-changing problems we face today.
The process by which heat is retained near the surface of the Earth due to "greenhouse gases" is known as the greenhouse effect. Global warming is caused by the greenhouse effect.
Highlights of the Day
1.Budget Dilemma: MGNREGS Allocation Increase Raises Concerns of Inadequacy
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) budget for the financial year 2024-25 sees a ₹26,000 crore increase to ₹86,000 crore. However, it matches the revised estimates of the previous year, potentially resulting in zero or negative net gain. Critics argue that the allocation, though breaking the trend of budget cuts, falls short of the required ₹3 lakh crore for efficient implementation. The ongoing dues, including ₹16,000 crore owed to states, raise concerns about jeopardizing the guaranteed right to work and violating fundamental entitlements, as 15-20% of the budget is historically spent on clearing past dues[1].
2.Union Budget 2024: Farmer-Centric Allocations, Silent on MSP Formula
Union Budget emphasizes farmer welfare with ₹1,17,528.79 crore allocation for Agriculture Ministry. PM Kisan Samman Nidhi maintained at ₹60,000 crore, while Pradhan Mantri Fasal Bima Yojana sees increased funding. The Budget remains silent on a guaranteed minimum support price based on the M.S. Swaminathan Committee's formula. Direct financial aid benefits 11.8 crore farmers, with crop insurance for four crore under PM Fasal Bima Yojana. A comprehensive program for dairy farmers is in the works, building on existing schemes. Fisheries department's separate allocation of ₹4,521.24 crore focuses on doubling inland and aquaculture production[2].
3.Interim Budget 2024: Inclusive Growth, Infrastructure Focus, and Education Boost
Finance Minister Nirmala Sitharaman's Interim Budget focuses on inclusive growth, outlining a roadmap for a developed India by 2047. Despite economic challenges, the government increased capital expenditure (capex) by 11% to ₹11.11 lakh crore, with a focus on infrastructure. The fiscal deficit for FY24 improved to 5.8%, targeting 5.1% for FY25, aligning with the 2025-26 goal of 4.5%. The government aims to reduce market borrowings and involve the private sector in funding infrastructure. A ₹1 lakh crore fund for tech R&D aims to boost entrepreneurship. Education departments receive higher allocations, with PM SHRI and PM POSHAN gaining significant boosts[3].
4.Budget 2024: Fertilizer Subsidies Trimmed, Focus on Nano Tech in Agriculture
The Centre reduces fertilizer subsidies to ₹1,64,150.81 crore, citing improved conditions in Ukraine and increased domestic production. The Fertilizer Ministry anticipates lower subsidies due to rising domestic essential fertilizer production, particularly urea. The budget decrease contrasts with the previous year's ₹1,75,148.48 crore allocation. Finance Minister Nirmala Sitharaman announces the expansion of Nano Di Ammonium Phosphate application after Nano Urea's success. Despite reduced fertilizer funds, the budget increases food subsidy, allocating ₹2,05,250 crore for PM Garib Kalyan Anna Yojana and ₹1 lakh crore for Sugar Subsidy. Free ration for 80 crore people eliminates food concerns, she adds[4].
5. Interim Budget 2024: Continuity and Support for Startups and MSMEs
The Interim Budget for 2024-25 maintains existing taxation but extends tax benefits for startups and investments, set to expire on March 31, 2024, by a year. Finance Minister Nirmala Sitharaman aims to provide continuity, supporting the sector's growth. Initiatives like PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee schemes underscore the government's proactive stance in backing entrepreneurship and youth employment. The budget's focus on startup and MSME growth reflects a commitment to fostering a robust ecosystem, addressing financial, technological, and training needs, according to industry experts. PM Mudra Yojana has sanctioned 43 crore loans worth ₹22.5 lakh crore[5].
Source: The Hindu | TOI
Practice Questions for Prelims
Q1: In the ‘Index of Eight Core Industries', which one of the following is given the highest weight?
a) Coal production
b) Electricity generation
c) Fertilizer production
d) Steel production
Q2: In the Mekong-Ganga Cooperation an initiative of six countries, which of the following is/are not a participant/ participants
1. Bangladesh
2. Cambodia
3. China
4. Myanmar
5. Thailand
Select the correct answer using the code given below:
a) 1 only
b) 2, 3 and 4
c) 1 and 3
d) 1, 2 and 5
Q3: In India, deficit financing is used for raising resources for
a) economic development
b) redemption of public debt
c) adjusting the balance of payments
d) reducing the foreign debt
Q4: ‘Recognition of Prior Learning Scheme' is sometimes mentioned in the news with reference to
a) Certifying the skills acquired by construction workers through traditional channels
b) Enrolling the persons in Universities for distance learning programmes
c) Reserving some skilled jobs to rural and urban poor is some public sector undertakings
d) Certifying the skills acquired by trainees under the National Skill Development programme
Q5: Regarding Money Bill, which of the following statements is not correct?
a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Today’s Question for Mains Answer Writing
Evaluate the significance of the Fiscal Responsibility and Budget Management (FRBM) Act in enhancing fiscal discipline and promoting economic stability in India.
Need help in writing or evaluation?
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