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News for the Day (24th July, 2024)

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 24-Jul-2024

Current Affairs 

BUDGET 2024-25 

Why in the News?

Union Budget 2024-25 was presented in the Parliament. It was the first general budget of the 18th Lok Sabha. 

About

  • Presented: Finance Minister Nirmala Sitharaman. 
  • Significance: First budget of Prime Minister Narendra Modi’s third term. 
  • Fiscal Deficit Target: Reduced to 4.5% for FY25. 
  • Focus Area: 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth) and 'Annadata' (Farmers).  
  • Theme: The Union Budget 2024-25 emphasises employment, skilling, support for MSMEs, and the middle class. An allocation of Rs 1.48 lakh crore is earmarked for education, employment, and skilling. 
  • Vision: Viksit Bharat by 2047 “Prosperous Bharat in harmony with nature, modern infrastructure and opportunities for all”. 

Budget

  • It serves as a comprehensive financial plan that reflects the economic strategy and policy priorities of the Government. 
  • It is formulated and enacted annually by the Union and State Governments. 
  • The Budget of the Union Government is called the Union Budget, and the Budget of the State Government is called the State Budget. 

History of Budget 

Pre Independence 

  • Budget was first introduced on 7th April 1860, two years after the transfer of Indian administration from East-India Company to British Crown.  
  • The first Finance Member who presented the Budget was James Wilson.  
  • Mr Liaquat Ali Khan, member of the interim Government presented the budget for 1947-48. 

Post-Independence 

  • India’s first Finance Minister R.K. Shanmukham Chetty presented the first Budget on 26th November 1947. 
  • Since then, the process of budget has evolved and emerged as a crucial tool for Public Finance Management and reflect the strength of our democratic processes in shaping our economy. 

Constitutional Provisions of Budget 

  • According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS). 
  • It is a statement of the estimated receipts and expenditure of the Government in a financial year (which begins on 01 April of the current year and ends on 31 March of the following year). In addition to it, the Budget contains: 
    • Estimates of revenue and capital receipts, 
    • Ways and means to raise the revenue, 
    • Estimates of expenditure, 
    • Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year, and 
    • The economic and financial policy of the coming year, i.e., taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects. 
  • In Parliament, the Budget goes through six stages: 
    • Presentation of Budget. 
    • General discussion. 
    • Scrutiny by Departmental Committees. 
    • Voting on Demands for Grants. 
    • Passing of Appropriation Bill. 
    • Passing of Finance Bill. 
    • The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body responsible for preparing the Budget. 

Objectives of Government Budget 

  • Reallocation of Resources 
  • Reducing Inequalities in Income and Wealth 
  • Contributing to Economic Growth 
  • Bringing Economic Stability 
  • Managing Public Enterprises 
  • Reducing Regional Difference 

Components of Government Budget 

 

Difference Between Union and Interim Budget 

Features Interim Budget  Union Budget 
Purpose  Presented when the government is nearing the end of its term and before general elections. It ensures continuity of financial operations. Presented annually by the government to outline the country's fiscal policy, revenue, and expenditure for the coming financial year. 
Scope  Contains a vote-on-account, which seeks Parliament's approval for essential government spending for a short period.  Comprehensive and detailed, covering all aspects of government revenue and expenditure for the entire fiscal year, including new policies and programs.
Contents  Contains a vote-on-account, which seeks Parliament's approval for essential government spending for a short period. Includes detailed financial statements, tax proposals, and a complete financial plan for the upcoming fiscal year. 
Policy Changes Generally, avoids major policy announcements or tax changes, focusing instead on maintaining ongoing operations.  Introduces significant policy changes, tax reforms, and new initiatives. 
Duration  Covers a short period, usually until the new government is formed and can present its full budget.  Covers the entire financial year from April 1st to March 31st. 
Frequency Presented only in an election year or when a government term is ending.  Presented every year, typically on February 1st. 
Approval Process  Requires a vote-on-account approval for short-term expenditure.  Requires full parliamentary approval and includes the passage of the Finance Bill. 

UNITY DECLARATION 

Why in the News? 

  • Senior representatives from the Palestinian factions Hamas and Fatah signed a joint declaration in Beijing. 
  • The declaration aimed at building unity and ending a decadeslong rift as the fighting with Israel in Gaza rumbles on. 
  • The agreement is called the Beijing Declaration to End the Division and Strengthen Palestinian National Unity. 
  • It was hailed as a breakthrough by China’s foreign minister, Wang Yi who called it “a historic moment for the cause of Palestine’s liberation.” 

About Hamas 

  • Hamas was created in 1987 as an offshoot of Egypt's Muslim Brotherhood seeking to fulfill its agenda through violent jihad. 
  • It gained popularity as a resistance movement against Israeli occupation and Fatah. 
  • The United States has designated Hamas a terror organization since 1997.  
  • Many other countries, including Israel and most of Europe, see it the same way. 

Ideology 

  • They believe that no part of the land of Palestine shall be compromised or conceded. 
  • They reject any alternative to the complete liberation of Palestine. 

About Fatah 

  • Founded: Late1950s 
  • Founders: Yassir Arafat and Khalīl al-Wazīr (Abū Jihād) 
  • Headquarters: Ramallah, West Bank 
  • Chairman: Mahmoud Abbas 
  • Secretary General: Jibril Rajoub 
  • Vice Chairman: Mahmoud Aloul 
  • About: It is a political and military organization of Arab Palestinians. 
  • Aim: To wresting Palestine from Israeli control by waging low-intensity guerrilla warfare. 
  • Ideology: Palestinian nationalism, Arab socialism, Secularism and Two-state solution 
  • Slogan: ‘Yā jabal mā yhizzak rīḥ’ (O mountain, no wind can shake you) and ‘Thawra ḥattā l-naṣr’ (Revolution until victory) 

Fatah Party Flag 

Note 

Capital of China: Beijing 

President: Xi Jinping 

Currency of China: Chinese Yuan

NATIONAL INCOME TAX DAY 2024 

  • It is annually observed on 24th July. 
  • The day commemorates the introduction of income tax in India by Sir James Wilson in 1860. 

Income Tax 

About  

  • It is a government levy on the income earned by individuals and businesses during a financial year.  
  • Income encompasses various sources, defined broadly under Section 2(24) of the Income Tax Act. 

Types 

  • Income from Salary 
  • Income from House Property 
  • Income from Business or Profession 
  • Income from Capital Gains 
  • Income from Other Sources 

Importance 

  • Revenue Generation for Essential Services 
  • Economic Development 
  • Wealth Redistribution 
  • Public Goods and Services 
  • Governance and Accountability 
  • Trust and Compliance 
  • To promote a stable, equitable, and prosperous society. 
  • Vital for effective, self-sustaining states meeting citizens' needs. 

FOOD AND AGRICULTURE ORGANSIATION (FAO) REPORT 

Why in the News? 

  • According to a new report by the FAO, India gained 2,66,000 hectares of forest area annually from 2010 to 2020 and secured the 3rd spot among the top 10 countries with the most significant forest area gains during this period. 
  • The report also stated that China led the world with the maximum forest area gain followed by Australia and then India.  
  • Other countries in the top 10 include Chile, Vietnam, Turkey, the United States, France, Italy and Romania. 

About FAO 

  • Established: 1945 
  • Headquarter: Rome (Italy) 
  • About: It is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve nutrition and food security. 
  • Goal: to achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives. 
  • Flagship Publications: The State of World Fisheries and Aquaculture (SOFIA), The State of the World's Forests (SOFO), The State of Food Security and Nutrition in the World (SOFI), The State of Food and Agriculture (SOFA), The State of Agricultural Commodity Markets (SOCO). 
  • Initiatives 
    • Globally Important Agricultural Heritage Systems (GIAHS). 
    • Monitors the Desert Locust situation throughout the world. 
    • The Codex Alimentarius Commission or CAC is the body responsible for all matters regarding the implementation of the Joint FAO/WHO Food Standards Programme. 
    • The International Treaty on Plant Genetic Resources for Food and Agriculture was adopted by the Thirty-First Session of the Conference of the FAO in 2001. 

General Knowledge 

SELF HELP GROUPS (SHGs) 

  • Origin: Self-Employed Women’s Association (SEWA) in 1972 
  • They are informal, peer-led associations of individuals with similar socio-economic backgrounds who unite to improve their living conditions through collective action. 
  • It relies on the notion of “Self Help” to encourage self-employment and poverty alleviation. 
  • Objectives 
    • To build the functional capacity of the poor and the marginalized in employment and income generating activities. 
    • To resolve conflicts through collective leadership and mutual discussion. 
    • To provide collateral free loan with terms decided by the group at the market driven rates. 
    • To work as a collective guaranteed system for members who propose to borrow from organized sources. 
    • The poor collect their savings and save it in banks. In return they receive easy access to loans with a small rate of interest to start their micro unit enterprise. 
  • The SHG-Bank linkage programme pioneered by NABARD has made access to credit easier. 
  • It eases dependency on agriculture by providing support in setting up micro-enterprises. 
  • It is a powerful channel for altering the social construct of gender in villages. 
  • Women are working in multiple sectors as Business Correspondents (BC), Bank Sakhis, Kisan Sakhis and Pashu Sakhis. 
  • Examples 
    • Kudumbashree 
    • Mahila Aarthik Vikas Mahamandal (MAVIM) 
    • Amba Foundation 
    • Aastha Welfare 
    • Bhai Bhauni 
    • Chaumunda Bachat Mandal 
    • Chamoli SHG 

National Bank for Agriculture and Rural Development (NABARD) 

  • Establishment: It is a statutory body established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981. 
  • It was recommended by the Sivaraman Committee. 
  • Headquarters: Mumbai 
  • Chairman: Shri Shaji K V  
  • It is a specialized financial institution in India dedicated to the development of agriculture and rural areas. 
  • Key Programs 
    • National Rural Employment Guarantee Act (NREGA) 
    • Rural Infrastructure Development Fund (RIDF) 
    • National Livestock Mission (NLM) 
    • GSS — Ensuring Subsidy End-Use 

Logo of NABARD 

ANDHRA PRADESH

  • Location: Southeastern coast of India, bordered by Tamil Nadu, Karnataka, Telangana, and Odisha 
  • Capital: Visakhapatnam (Administrative) and Amaravati (Legislative). 
  • Regions: Coastal plains, Eastern Ghats, and the Deccan Plateau. 
  • Major Rivers: Godavari, Krishna, Penna 
  • Soils: Red lateritic and black soil, with low fertility and salinity problems 
  • It has the country’s second-longest coastline, at 974 km, including two intermediate ports (Kakinada and Machilipatnam) and ten small ports. 
  • Minerals: Bauxite, Limestone, Granite, Mica, Iron Ore, Dolomite, Quartzite, Gold 
  • Official Language: Telugu (Declared classical language in 2008) 
  • Governor: S. Abdul Nazeer 
  • Chief Minister: N. Chandrababu Naidu 
  • Key Economic Zones: Visakhapatnam, Vijayawada 
  • History 
    • It merged with Telangana to form the new state of Andhra Pradesh under the States Reorganization Act of 1956. 
    • It was the first linguistic state in India. 
    • Potti Sreeramulu: His hunger strike led to the creation of Andhra State. 
    • On June 2, 2014, Telangana became a separate state, and Andhra Pradesh was reorganized as a new state. 
  • Key Initiatives 
    • Andhra Pradesh State Skill Development Corporation (APSSDC) 
    • Navaratnalu Scheme 
    • Amma Vodi Scheme 
    • Jagananna Vidya Deevena 
    • AP FiberNet 
    • Mission Kakatiya 
  • Wildlife and Bird Sanctuary 
    • Nagarjunsagar-Srisailam Tiger reserve 
    • Pulicat Lake Bird Sanctuary 
    • Coringa Wildlife Sanctuary (Mangrove forests) 
    • Krishna Wildlife Sanctuary 
    • Atapaka Bird Sanctuary (Kolleru Lake) 
    • Papikonda Wildlife Sanctuary 
  • Major Dams 
    • Kalyani Dam, Kalyani River 
    • Nagarjuna Sagar dam, Krishna River 
    • Kandaleru Dam, Kandaleru River 
    • Polavaram dam, Godavari River 
    • Mylavaram dam, Penna River 
    • Jalaput Dam, Machkund River 

Location of Andhra Pradesh  

PRADHAN MANTRI GRAM SADAK YOJANA (PMGSY) 

  • Launched on: 25th December 2000 
  • Objective: To provide connectivity, by way of an all-weather road to unconnected habitations. 
  • Eligibility Criteria: Villages with a population of 500 or more (250 for hilly and tribal areas) are eligible for road construction under the scheme. 
  • Funding Pattern: Central Government provides 60% (90% in North-Eastern and Himalayan States), State Governments remaining 40%. 
  • Focus Areas: Rural Connectivity, Infrastructure Development, Economic Growth 

Note 

  • The Rural Roads constructed under the PMGSY will be in accordance with the provision of the Indian Roads Congress (IRC).  
  • IRC was set up in 1934, an Apex Body of Highway Engineers in the country. 
  • Phases 
    • PMGSY - Phase I 
      • It was launched as a 100 % centrally sponsored scheme. 
      • Under the scheme, 1,35,436 habitations were targeted for providing road connectivity and 3.68 lakh km. for upgradation of existing rural roads to ensure full farm to market connectivity. 
    • PMGSY - Phase II 
      • It was launched in 2013 for upgradation of 50,000 Kms of existing rural road network. 
      • While the ongoing PMGSY - I continued, under PMGSY phase II, the roads already built for village connectivity were to be upgraded to enhance rural infrastructure. 
      • The cost was shared between the Centre and the states/UTs. 
    • PMGSY - Phase III 
      • It was approved by the Cabinet during July 2019. 
      • It gives priority to facilities like Gramin Agricultural Markets (GrAMs), Higher Secondary Schools and Hospitals. 
    • PMGSY - Phase IV 
      • It was announced with the target to connect 25,000 rural habitations. 
      • Target: Construct all-weather roads to ensure reliable access to markets and essential services. 
      • Allocation: Part of a larger capital expenditure plan totaling ₹11,11,111 crore. 

 

Logo of PMGSY