daily-news-prescription-28-september-2020

GS2: International Relations

GS2: Schemes

GS3: Economy

  • Growth compulsions, fiscal arithmetic(TH) What is most surprising in the Q1 data is that the sector ‘Public Administration, Defence and other Services’ contracted at (-) 10.3%. This means that there was no fiscal stimulus. Independent estimates show that States’ capital spending fell by 43.5%. The worsening of the fiscal deficit appears to be because of decline in revenue than increase in expenditure.
  • Salutary lesson(TH) Add to the mix the substantial sum of money it owes the government in the form of adjusted gross revenue dues and the future fund requirements of a rapidly technologically evolving and highly capital intensive industry, Vodafone’s wariness to commit more equity to the Indian venture becomes understandable

GS3: Environment

GS3: Agriculture related issues

  • THE RIGHT REDRESS(IE) Once the MSP becomes a “right”, the government is duty-bound to enforce it. In this case, successful enforcement would mean not just distorting, but supplanting the market.