DAILY NEWS DIARY FOR PRELIMS & MAINS - 14.05.2020 (DND) - SOSIN CLASSES
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DAILY NEWS DIARY
(DnD)
14.05.2020
For Prelims & Mains
www.sosinclasses.com +91 99899 66744 sosin@sosinclasses.com
DAILY NEWS DIARY 14.05.2020 DAILY NEWS DIARY 14.05.2020
Dear Student, Essay Paper
Editorial
Warm Greetings.
Q – How well is the ‘Atmanirbhar Bharat Abhiyan’ Scheme aiding
the credit market?
DnD aims to provide every day news analysis in INTRO = The first tranche of announcements made by Finance
sync with the UPSC pattern. Minister Nirmala Sitharaman under the Atmanirbhar Bharat
Abhiyan announced a 3 lakh crore collateral-free loan scheme for
It is targeted at UPSC – Prelims & Mains. businesses, especially micro, small and medium enterprises
(MSMEs), as part of a 20 lakh crore economic stimulus package to
Daily articles are provided in the form of deal with the COVID-19 pandemic. The measures announced will go
Question and Answers a long way in lifting the spirits of the two key and troubled sectors of
MSMEs and non-banking finance companies. While for the former it is
To have a bank of mains questions. an existential crisis, for the latter it is one of liquidity.
The rates of tax deduction at source (TDS) and tax collection at source
And interesting to read. (TCS) have been cut by 25% for the next year, while statutory
provident fund (PF) payments have been reduced from 12% to 10%
Providing precise information that can for both employers and employees for the next three months.
be carried straight to the exam, rather
than over dumping.
Enjoy reading.
THE HINDU - TH
INDIAN EXPRESS - IE
BUSINESS LINE - BL
ECONOMIC TIMES - ET
TIMES OF INDIA - TOI
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www.sosinclasses.com +91 99899 66744 sosin@sosinclasses.com www.sosinclasses.com +91 99899 66744 sosin@sosinclasses.comDAILY NEWS DIARY 14.05.2020
DAILY NEWS DIARY 14.05.2020
MSMEs will get the bulk of the funding. The 3 lakh crore emergency Under the current circumstances there is a fair amount of uncertainty
credit line will ensure that 45 lakh units will have access to working regarding the quantum and timings of the State governments’
capital to resume business activity and safeguard jobs, Ms. Sitharaman receivables from the Union government. Moreover, their own sources
said. For two lakh MSMEs which are stressed or considered non-
of revenue have fallen to abysmally low levels.
performing assets, the Centre will facilitate provision of 20,000 crore as
subordinate debt. A 50,000 crore equity infusion is also planned,
through an MSME fund of funds with a corpus of 10,000 crore.
The definition of an MSME is being expanded to allow for higher
investment limits and the introduction of turnover-based criteria. In a
bid to fulfil the Prime Minister’s vision of a self-reliant or
“atmanirbhar” India, global tenders will not be allowed for government
procurement up to 200 crore.
Apart from MSMEs, other stressed business sectors which got
attention were non-banking finance companies (NBFCs), power
distribution companies, contractors and the real estate industry. With
these the government has broken the logjam wherein banks were
unwilling to extend credit despite the RBI’s strong push. This should
largely attenuate the liquidity crisis in the non-banking space for now.
The first tranche of the Atmanirbhar Bharat Abhiyan includes the
ongoing Pradhan Mantri Garib Kalyan Yojana, meant to support the States such as Gujarat, Telangana, Haryana, Karnataka and Tamil
poorest and most vulnerable communities during the pandemic, as Nadu get more than 70% of their revenue from their own
well as several measures taken by the Reserve Bank of India. More sources, and will be the worst impacted. Maharashtra and Kerala
tranches are expected in the next few days. also get almost 70% of their revenue on their own.
States’ own revenue mainly comes from seven heads — State
GS 2 Goods and Services Tax (SGST), State VAT, mostly on petroleum
Governance products, State excise, mostly on liquor, stamps and registration
fees, vehicle tax, tax and duty on electricity, and own non-tax
Q – Describe the States – Revenue losses amidst COVID-19?
revenue.
BACKGROUND = The lockdown caused 21 major States to suffer a
collective revenue loss of about 97,100 crore for the month of April Despite the lockdown, nearly 40% of the economy considered
alone, according to estimates from India Ratings and Research (Fitch “essential” was allowed to remain operational, allowing some
revenue to accrue to State governments under these heads,
Group).
including 40% of SGST, 30% of State VAT, and 10% each of the
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electricity tax and non-tax revenues
www.sosinclasses.com +91 99899 66744 sosin@sosinclasses.com www.sosinclasses.com +91 99899 66744 sosin@sosinclasses.comDAILY NEWS DIARY 14.05.2020 DAILY NEWS DIARY 14.05.2020
“Things may improve somewhat in May 2020 due to the easing of some Nevertheless, It’s not about returning to the way things were as soon
restrictions — allowing the liquor sale being the most prominent one,” as possible, but about all the necessary security. Thus,demand that
said the report. support be given to tourism so that it can lead the way in rebuilding
the economy.
International Relations
Q – What are EU’s new measures to salvage tourism? How about this today!?
BACKGROUND = In the EU, 10% of economic output (GDP) is generated
India recently upgraded its relationship to “Comprehensive
by the tourism industry. In some countries, including Greece or Malta,
Global Strategic Partnership”. Which country did India
the share of the travel industry in GDP is even higher at 20-25%. Once
the coronavirus pandemic tapers off, people are likely to take upgrade this relationship with?
vacations closer to home with - a. United States of America b. South Africa
1) A common health concept which would allow for a “coronavirus health c. Japan d. Russia
passport” to be issued to tourists and tour operators.
Hey from Yesterday….
2) Rent rooms to travelers from neighboring countries and, if possible,
‘Parliamentary Committee on labour’ questioned which of
from regions where the coronavirus infection rate is low.
the following state governments demanding an explanation
3) Hotel owners and operators of private-access beaches in Italy are
for the dilution of labour laws?
developing unusual concepts to ensure potential holidaymakers can
keep their distance, including plexiglas dividers on the beach. 1. Madhya Pradesh
2. Gujarat
4) and hotels that are only partially occupied, with one-course-only menus
3. Himachal Pradesh
served at tables set 2 meters (about 6 feet) apart.
4. Punjab
5) Greece is pondering a kind of tourism corridor from Western Europe.
Special planes would fly tourists who can prove their health to verified a. 1 alone
and coronavirus-free holiday resorts b. 1,3
6) Belgium is considering access cards for beaches. Other tourism ministers c. None of the above
want to advertise holidays in the countryside in order to relieve hotel d. All of the above
facilities and beaches. Answer: d
However, it remains completely unclear when the EU interior ministers NOTE: The Madhya Pradesh, Uttar Pradesh, and Gujarat State
will agree on a coordinated plan for opening the borders for tourists. governments have modified labour laws in a bid to attract
First, the individual states would have to lift domestic travel restrictions, investments and restart economic activity hit by the nationwide
making travel to neighboring regions possible. Then, travel between lockdown. Punjab, Himachal Pradesh and Gujarat have also
neighboring states would have to become possible, and lastly, intra- amended their Factories Acts and increased the work hours from
European air traffic. No one knows when tourist travel to Asia, the US
8 to 12 hours a day or 72 hours per week.
and other parts of the world will be possible again.
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