The planning commission which has a legacy of 65 years has replaced by NITI Aayog. The utility and significance of the Planning Commission had been questioned for long. The replacement seems to be more relevant and responsive to the present economic needs and scenario in the country.
EVOLUTION OF NITI AAYOG
The NITI Aayog was formed on January 1, 2015. In Sanskrit, the word “NITI” means morality, behavior, guidance, etc
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What is a Universal Basic Income?
• A universal basic income (UBI) is an unconditional and universal right. It requires that every person should have a right to a basic income to cover their needs, just by virtue of being citizens.
• The Economic Survey (ES) 2016-17 says the time has come to think of UBI for a number of following reasons
• Social Justice – An UBI promotes many of the basic values of a society which respects all individuals as free and equal.
• Poverty Reduction – Conditional in the presence of a well-functioning financial system, a Universal Basic Income may simply be the fastest way of reducing poverty.
• Agency – The poor in India have been treated as objects of government policy. An unconditional cash transfer treats them as agents, not subjects.
• By taking the individual and not the household as the unit of the beneficiary, UBI can also enhance agency, especially of women within households.
• Administrative Efficiency – It is a way of ensuring that state welfare transfers are more efficient so that the state can concentrate on other public goods. Continue reading “Universal Basic Income”
Why in news?
- Central government has cautioned the States of a vacuum arising if necessary institutional mechanisms, as required by the Real Estate Act were not put in place before April 30, 2017.
What is Real Estate Act, 2016?
- The Act which is envisaged to regulate both commercial and residential real estate projects, seeks to set up a state level regulatory authority called Real Estate Regulatory Authority (RERAs) for regulation and promotion of the real estate sector.
- The Act makes it mandatory for uploading the details of a Real Estate project on the website of the RERAs. Real estate agents also need to register with the RERAs.
- The Act also makes it mandatory for the builders to put 70% of the amount collected from buyers in a separate bank account. This must only be used for construction of the project. However, the state government can alter this amount to less than 70%.
- The Act also seeks to establish fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
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The decision to raise the limit for issue of bonds under MSS (Market Stabilization Scheme) is a prudent move and brings this innovative scheme in focus again. The arrangement also shifts the burden of holding cash from the Banks and RBI on to the government and would help stabilise the money market. A look at the scheme and how money is flowing after it is being deposited in the banks as a result of demonetization. Continue reading “Demonetisation – Absorbing the Excess Liquidity”
In the wake of declining exports, the government took various measures to boost exports in the Union Budget 2015-16 and a new Foreign Trade Policy (FTP). The Foreign Trade Policy is also known as Export-Import Policy.
A new FTP for the period 2015-20 was announced on 1 April 2015, with a focus on supporting both manufacturing and services exports and improving the ‘Ease of Doing Business’.
The new FTP aims to increase India’s exports to US$900 billion by 2019–20. Continue reading “EXPORT IMPORT POLICY”
- RBI plans fund to push card swipe machines (Source: ET)
- Concerned over low use of debit cards in electronic payments, the Reserve Bank of India wants banks that are not installing card accepting machines to contribute to a fund that will subsidise installation of point of sales (PoS) terminals.
- There are over 68-crore debit cards in India. Over a third of these have been added in the last two years following the implementation of the Jan-Dhan Yojana. But the number of PoS terminals (credit card accepting machines) has gone up marginally from 12 lakh to 14 lakh. The average debit card holder in India uses his/her card only once at a PoS machine for every 10 transactions in an ATM.
- The proposal envisages creation of an ‘acceptance development fund’ which will subsidize installation of PoS machines with smaller merchants and in small towns and villages. The RBI has come out in support of a fund rather than mandating installation of PoS terminals for banks as some lenders are not interested in the business. Today, four lenders dominate the merchant acquisition business -State Bank of India, HDFC Bank, ICICI Bank and Axis Bank.
Continue reading “Financial Awareness-September(21-30) 2016”