• Admin

Daily Current Affairs : 17-Jan-2020

Major Topics Covered :

  1. “OFF-BUDGET”

  2. SATELLITE GSAT-30

  3. IBBI AMENDS THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

  4. “STRENGTHEN ETHNIC UNITY”

  5. SAKSHAM

  6. ASSAM INLAND WATER TRANSPORT PROJECT (AIWTP)

  7. K9 VAJRA-T GUN

  8. ASER REPORT

  9. 2019 WAS THE SECOND WARMEST YEAR EVER

  10. CARD TRANSACTIONS

“OFF-BUDGET”

Part of GS-3 Economy


Why in news?

On the face of it, India’s fiscal deficit, which essentially maps how much money the Indian government has to borrow to make up the gap between its expenditure and its revenues, was just 3.4 per cent of the gross domestic product (GDP) for 2018-19.


Highlights:

• For the current year, the Union Budget presented in July expected the fiscal deficit to be 3.3 per cent of the GDP.

• However, for long, it has been suspected that the official figures hide the true fiscal deficit.

• That’s because some of the government’s expenditure was funded by the so-called “off- budget” items.

• As a result, while this extra expenditure did not figure in the official calculations, it did mean that the true fiscal deficit or borrowing by the public sector was higher than the level presented in the Budget.

• Now, former Economic Affairs Secretary S C Garg has stated, in his blog dated January 14, that the true fiscal deficit for 2018-19 is 4.7% — more than a full percentage point than the number claimed by Finance Minister Nirmala Sitharam’s Budget in July.

• According to Garg, for the current financial year, too, the actual fiscal deficit is likely to range between 4.5 per cent to 5 per cent of GDP.


What is the significance of fiscal deficit?

• In the economy, there is a limited pool of investible savings. These savings are used by financial institutions like banks to lend to private businesses (both big and small) and the governments (Centre and state).

The significance of fiscal deficit is that if this ratio is too high, it implies that there is a lesser amount of money left in the market for private entrepreneurs and businesses to borrow.

• Lesser amount of this money, in turn, leads to higher rates of interest charged on such lending.

• So, simply put, a higher fiscal deficit means higher borrowing by the government, which, in turn, mean higher interest rates in the economy.

• This concern becomes even more significant when, like today, Indian businesses are facing high interest rates. A high fiscal deficit and higher interest rates at a time like this would also mean that the efforts of the Reserve Bank of India to reduce interest rates are undone.


What is fiscal deficit?

• The Union Budget’s “Budget at a Glance” document explains what fiscal deficit is. It states: “Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure”.

• In other words, fiscal deficit is “reflective of the total borrowing requirements of Government”.

• In India, the Fiscal Responsibility and Budget Management Act requires the central government to reduced its fiscal deficit to 3 per cent of GDP. India has been struggling to achieve this mark.


Source: Indian Express



SATELLITE GSAT-30

Part of GS- 3 S&T


Why in news?

India's high power communication satellite GSAT-30 was successfully launched onboard Ariane 5 rocket from French Guiana early on 17th January's morning.


Highlights:

• Indian Space Research Organisation (ISRO) said the GSAT-30 is aimed at providing high- quality television, telecommunications and broadcasting services.

• The 3,357-kg GSAT-30 derives its heritage from ISRO's earlier INSAT/GSAT satellite series, and is equipped with 12 C and 12 Ku band transponders.

• GSAT-30 will serve as replacement to the aging INSAT-4A spacecraft services with enhanced coverage.

• The satellite will provide Indian mainland and islands coverage in Ku-band and extended coverage in C-band covering Gulf countries, a large number of Asian countries and Australia.

• With a mission life of 15 years, GSAT-30 is an operational communication satellite for DTH, television uplink and VSAT services.

• ISRO said the communication payload of GSAT-30 is specifically designed and optimized to maximize the number of transponders on the spacecraft bus.

• According to the space agency, the spacecraft will be extensively used for supporting VSAT network, television unlinking and teleport services, digital satellite news gathering (DSNG), DTH television services, cellular backhaul connectivity and many such applications. Source: AIR



IBBI AMENDS THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

Part of GS-3 Economy

Why in news?

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 on 15th January. 2020.


Highlights:

IBBI amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017

• The aforesaid amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before submission of an application for dissolution of the corporate person.

• It also provides a process for a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account.


Source: PIB



“STRENGTHEN ETHNIC UNITY”

Part of GS-2 IR


Why in news?

The People’s Congress of Tibet passed a law that makes e