January 13, 2024 | Your One-Stop Solution for Daily Preparation
GST | Explained
India's journey towards economic reform witnessed a monumental shift with the introduction of the Goods and Services Tax (GST) in 2017. This comprehensive tax regime aimed at unifying the nation under a common tax structure, breaking down barriers, and fostering economic growth.
Highlights of the Day
1.India's Retail Inflation Hits 5.7% in December 2023, Food Prices Surge: RBI Cautious Despite Moderation
India's retail inflation rose to 5.7% in December 2023, driven by a 9.5% increase in food prices. Urban consumers experienced higher food inflation at 10.42%, surpassing the 10% mark. Rural consumers faced slightly lower food price hikes but overall inflation close to 6%. Despite a 5.4% average inflation in Q4 2023, the Reserve Bank of India (RBI) is unlikely to cut interest rates, projecting a 5.2% average for H1 2024. Notably, core inflation dropped to 3.8%, its lowest since January 2020, attributed to lower fuel inflation and global raw material price easing[1].
2. Supreme Court Declines Stay on Law Altering Election Commissioner Appointment Process
The Supreme Court declined to stay a new law that replaced the Chief Justice of India with a Union Cabinet Minister in the selection committee for appointing the Chief Election Commissioner and Election Commissioners. The petitioner, Jaya Thakur, argued that the CEC and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Act, 2023 compromises the independence of the selection committee, favoring the Prime Minister and Cabinet Minister. The petition emphasized the need for an independent mechanism in constitutional democracy and raised concerns about the law's impact on free and fair elections. The court issued notice to the Union of India, scheduling the hearing for April[2].
3. Kaziranga National Park Witnesses a 27% Surge in Waterbird Population, Emerging as Top Habitat in India
Kaziranga National Park and Tiger Reserve, a stronghold for one-horned rhinoceros, witnessed a remarkable 27% surge in resident and migratory waterbirds during its fifth waterbird census. Conducted by citizen scientists across the 1,302 sq. km reserve, the count revealed 84,839 birds, a substantial increase from the previous year. This elevates Kaziranga among the top five waterbird habitats in India. The survey, spanning three divisions, showcased the park's significance in biodiversity conservation, emphasizing the role of wetlands like Kaziranga-Hukuma Beel and Joysagar Doloni in sustaining diverse avian species, including unique and endangered ones like Bengal florican and Baer’s pochard[3].
4. Global Scientific Project, Thirty Meter Telescope (TMT), Faces Challenges Amidst Local Opposition
The Thirty Meter Telescope (TMT) project, a global collaboration for a groundbreaking telescope on Mauna Kea, Hawaii, faces challenges due to local opposition. Indian involvement, approved in 2014, includes a $200 million contribution for hardware, instrumentation, and software. Amidst protests, Hawaii permits were invalidated in 2015, reinstated in 2018, but construction hasn't started. India supports an alternate site in Spain's Canary Islands. Despite hurdles, progress on components continues. The project aims for consensus with locals, and a decision on the site is expected in the next two years[4].
5.Mumbai Trans Harbour Link Inaugurated: India's Longest Sea Bridge Marks Infrastructure Milestone
The Mumbai Trans Harbour Link (MTHL), India's longest sea bridge at 21.8 km, opened for public commute, reducing travel time between Mumbai and Navi Mumbai to 20 minutes. Prime Minister Modi inaugurated the six-lane Atal Setu, praising its completion despite COVID-19 disruptions. He highlighted multiple development projects and took a dig at the previous government. The bridge aims to enhance urban transport, connect airports, and improve Mumbai's overall connectivity. Additionally, Modi commended women empowerment schemes and acknowledged late Japan PM Shinzo Abe's contributions. The MTHL signifies India's infrastructural prowess and progress in developmental projects[5].
Source: The Hindu | TOI
Practice Questions for Prelims
Q1: Consider the following rivers of India:
I. Narmada
II. Krishna
III. Tungabhadra
Which rivers among these flow into the Arabian Sea? Select all that apply.
a) Only I
b) Only II and III
c) Only I and II
d) All of them
Q2: Consider the following statements about mangroves:
I. Mangrove trees have specialized salt-excreting glands that help them tolerate high salinity levels in their environment.
II. Mangroves provide vital breeding and nursery grounds for various marine species.
III. Mangrove ecosystems are characterized by their ability to thrive in freshwater environments.
Choose the correct combination:
a) I and II
b) II and III
c) I and III
d) I, II, and III
Q3: Consider the following statements regarding monetary policy:
I. The primary tools of monetary policy include open market operations, reserve requirements, and the discount rate.
II. A decrease in the reserve requirements set by the central bank can lead to an expansion of credit and increased economic activity.
III. Inflation targeting is a common objective of many central banks when implementing monetary policy.
Choose the correct combination:
a) I and II
b) II and III
c) I and III
d) I, II, and III
Q4: Examine the following statements regarding "Space Exploration":
I. The Apollo 11 mission in 1969 marked the first successful moon landing by humans.
II. The Hubble Space Telescope has provided valuable insights into distant galaxies.
III. The Mars Rover "Curiosity" is a joint mission of NASA and the European Space Agency.
Choose the correct combination:
a) I and II
b) II and III
c) I and III
d) I, II, and III
Q5: Consider the following statements regarding "Fiscal Policy":
I. Fiscal policy is a tool used by the government to manage its revenue and expenditure.
II. Expansionary fiscal policy aims to stimulate economic growth by increasing government spending and reducing taxes.
III. Contractionary fiscal policy aims to control inflation by reducing government spending and increasing taxes.
Choose the correct combination:
a) I and II
b) II and III
c) I and III
d) I, II, and III
Today’s Question for Mains Answer Writing
Discuss the transformative impact of the Goods and Services Tax (GST) on India's economy, considering its historical context, dual model structure, and international comparisons. Assess the challenges faced in implementation, compliance, and technological readiness. Evaluate the role of GST in formalizing the economy and curbing tax evasion. Propose policy changes and areas for improvement in the GST system for sustained economic growth.
Need help in writing or evaluation?
Note: For answer key and explanation of daily practice questions, join us at: t.me/tinkerchild
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