Budget Impact – States’ burden to run 32 of 63 schemes shoots up

State governments will now have to bear either the entire or an increased financial burden to run half the schemes being rolled with the assistance of the Centre.

At least eight centrally sponsored schemes will henceforth not get any Union finances at all while 24 schemes will see significant cuts in central share with the states having to put in money.

The eight schemes which stand de-linked from central funding are — the National e-governance plan, Backward Region Grant Funds, scheme to modernise police, another to develop export infrastructure, the scheme for setting up 6,000 model schools, the National Mission on Food Processing, the Rajiv Gandhi Panchayat Empowerment Scheme and lastly, the scheme on tourist infrastructure.

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Via - tribuneindia.com

A look at India’s last five annual budgets

With the BSE Sensex gaining nearly 30 percent in 2014 and about 6 percent so far this year, investors are eagerly awaiting reforms in the budget, which is being billed as a “make-or-break” event for the government of Prime Minister Narendra Modi.

Based on a new calculation method, India grew 7.5 percent year-on-year in the last quarter and is on track to expand 7.4 percent in the year through March 31, but experts say the revised growth numbers are at odds with evidence on the ground.

Here’s a look at budgets between 2010 and 2014 — the hits, the misses, and how they affected the common man.

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ViaReuters.com

14th Finance Commission gives States a huge tax windfall

The 14th Finance Commission, headed by former RBI Governor Y.V. Reddy,  has recommended a 10 per cent jump in the devolution of tax revenues to States to 42 per cent, in keeping with Prime Minister Narendra Modi’s plans for greater flexibility to States. The total devolution to States will rise to 45 per cent of Union tax revenues in 2015-16.

In a letter to all Chief Ministers, the Prime Minister said the increase in resources given to States will give them the required freedom to tailor make development schemes to suit their needs.

The higher tax share to states would also have a significant impact on the Centre’s revenue and expenditure projections and the fiscal consolidation roadmap to be presented in the Union Budget 2015-16 on February 28.

The Commission has also recommended ₹2.87 lakh crore as grants to local bodies, using criteria of population and land area that would be divided into a basic grant and a performance grant. While panchayats would be given ₹2 lakh crore in grants, municipalities would receive ₹87,143 crore.

Though it did not award any special dispensation to debt-ridden States, the Commission has provided ₹1.94 lakh crore as a post devolution revenue deficit grant. This would help wipe out the revenue deficit of  States like Kerala, West Bengal, Himachal Pradesh and Andhra Pradesh.

The Commission has also  suggested that the government should set up a GST compensation fund to pay States for revenue losses once the goods and services tax is implemented. The compensation should be given to States for five years, with 100 per cent compensation being paid in the first, second and third years, and 75 per cent and 50 per cent compensation in fourth and fifth year, respectively.

NITI Aayog: States demand greater financial devolution, flexibility

Demands for greater devolution of funds to States from non-NDA Chief Ministers dominated the first meeting of the Governing Council of NITI (National Institution for Transforming India) Aayog.

Prime Minister Narendra Modi chaired the meeting on 7 February 2015, at his 7 Race Course Road residence.

Tamil Nadu Chief Minister O. Panneerselvam pitched for higher flow of funds from the Centre to the States and demanded that States’ share of funding of flagship programmes be limited to 25 per cent only.

Uttar Pradesh Chief Minister Akhilesh Yadav sought 90 per cent grants for central schemes saying Prime Minister Modi’s new mantra of ‘Sabka Saath, Sabka Vikas’ was not possible without provision of adequate resources to economically weaker States.

Kerela Chief Minister Oommen Chandy demanded that the Aayog continue with the functions the erstwhile Planning Commission performed — of determining, in consultation with the Union Finance Ministry and State Governments, the amount of resources to be made available to the States for Plan and Budget preparation.

Noting that India cannot advance without all its States advancing in tandem, the Prime Minister said that he envisioned different States competing with each other in promoting governance initiatives, in a spirit of cooperative, competitive federalism. Mr. Modi said that though the world had started looking at India differently, the biggest challenge for the country still was how to eliminate poverty. He said jobs cannot be created, and poverty cannot be removed without growth. “First and foremost we should aim at a high rate of growth,” he said.

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Via The Hindu

 

New NASA app gives preview of deep space missions

NASA has developed a new interactive 3D app that can allow avid space explorers reach the launch pad of space missions – virtually.

Smartphone and tablet users can experience the excitement of standing on the launch pad beneath NASA’s massive new rocket, the Space Launch System or SLS, with the app that previews the starting point for the journey to Mars.

The app works by pointing the device up to see to the top of the rocket, or holding level to see the details of the solid rocket boosters and engines, NASA said.

No matter where the user is, opening the scene viewer portion of the app shows what the device’s camera would see if it were at the launch pad with the huge SLS rocket setting up for liftoff.

These views won’t exist in real-life until NASA sends SLS carrying an Orion spacecraft to a distant retrograde orbit around the Moon as the agency pioneers deep into space, but gives users a taste of what the powerful launches will entail.

Called NASA 3DV, for 3-D view, the inventive app shows viewers 3-D models of the Orion spacecraft and Space Launch System, the fixtures of NASA’s push to send astronauts on deep space exploration missions to an asteroid and eventually Mars.

The app also shows virtual models of the crawler transporter that carried the Saturn V moon rockets and space shuttle to the launch pad and is on tap to take the SLS and Orion on the same trip.

Govt can save over ₹30,000 crore food subsidy with FCI rejig

Government’s food subsidy bill can come down by over ₹30,000 crore a year by reducing coverage of beneficiaries to 40 per cent under the food law and outsourcing major work of FCI to State governments and private players, according to an eight-member panel headed by Mr Shanta Kumar. Prime Minister Modi has termed the recommendations as “pro-farmer and “pro-poor” and said that their “implementation would have miraculous results”.

Among the key recommendations, the panel has suggested direct cash transfer of ₹3,000 per person a year as food subsidy and ₹7,000 per hectare as farm input subsidy besides revisit of minimum support price (MSP) policy with more focus on pulses and oilseeds.

The key role of Food Corporation of India (FCI) is to buy foodgrains to ensure MSP to farmers, and distribute it to the poor under the public distribution system (PDS).

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Via Business Standard

Current Affairs sections updated with December 2014 events

The Current Affairs sections:

Notes on Current Affairs
Current GK
Appointments Etc
Sports News

have been updated with December 2014 news.

These sections are useful for those preparing for Civil Services Exam, UPSC Exams, SSC Exams, Assistant Grade Exam, LIC and other Insurance Recruitment exams, Defence Services exams like NDA & CDS, Bank PO, RBI, Clerks’ Recruitment Exams, MBA, Hotel Management, CLAT, CSAT etc