1. What is inclusive growth? Explain. Also comment on the Government schemes which intend to bridge the inclusion gap.
Inclusive growth is economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society. (OECD)
Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty. It means having access to essential services in health and education by the poor. It includes providing equality of opportunity, empowering people through education and skill development. It also encompasses a growth process that is environment friendly growth, aims for good governance and a helps in creation of a gender sensitive society.
Mahatma Gandhi national rural employment programme (MGNREGA): which tries to supplement the farm income of the farmers in non-farming period by providing 100 days of employment.
Pradhan Mntri Jandhan Yojana ( PMJDY): it aims to bring all the poor population under banking-net, so that the poor can avail financial services like, bank account, credit, investment etc.
Atal pension yojana (APY): to provide social security in the old age.
Sarva Skiksha Abhiyan (SSA): it tries to provide free education to all the children in 6-14 years age group, the state takes the responsibility of education so that it does not become burden on the parents.
Janani suraksha yojana: it aims to provide institutional delivery to the women belonging to BPL. This includes cash entitlement and free post-natal care of the mother and the child.
Pre-metric and post- metric scholarships for the children belonging to minority communities, to encourage them to study further.
National Housing mission/ housing for all- to provide pakka houses for the financially weaker sections.
2. The hidden economic potential of the North East is constrained by a lack of imagination. Do you agree? Also suggest a roadmap for unleashing the economic energies of this part of India.
Economic potential of north-eastern region are:
Mountainous terrain rich in Mineral such as coal, uranium and oil.
Facilitates Power generation (1,011 MW of 63,257 MW utilised only)
Gives a boost to cultivation of valuable cash crops such as Tea.
International borders with China, Bangladesh, Bhutan, Nepal and Myanmar, It can be a major participant in cross-border trade.
Can Act an entre-pot economy, Facilitating trade for other countries and regions.
With its Natural beauty and cultural heritage it offers great scope for tourism.
Lack of infrastructure: the mountainous terrain makes it difficult to connect it to mainland.
Tribal domination: there are numerous tribal factions which are hostile to each other, bringing them along on a single platform with a single set of agenda has been very difficult.
Insurgency: with contradicting demands and ethnic loyalties, numerous arms factions are active in the region, which are constantly sabotaging peace efforts. this has created hurdles in opening up trade routes and ensuring safety of new infrastructure.
Lack of governance: the successive central governments have followed a high handed approach in dealing with the problems of the NE region and have neglected primary issues of health, education, economy and governance.
Another contentious issue is of AFSPA, which has been used by the paramilitary forces to carry out inhuman atrocities against the local people.
Increasing the connectivity to the region: the North East connectivity project, as signed by the japan and Indian government should be finished as soon as possible to transform NE region into a manufacturing hub.
The kaladana Multi modal project must be given high priority to develop alternate route to the region.
The social and human capital in the NE region is vert huge, which has to be fully utilized as the people speak engaging better than the people from mainland.
Industries: manufacturing industries have to be set up by giving sops and benefits, as the area is dominated by farming and service sector only.
AFSPA should be repealed as suggested by the Justice Jeevan Reddy committee and Justice Santosh Hegde committee.
Write a brief conclusion.
Best answer: Nature
North East India (the seven sisters+ Sikkim), the unexplored heaven though physically alienated from the main land India also got psychologically alienated because of the attitudinal and cultural differences. Hidden economic potential of North East India is constrained by the lack of imagination because of :
Very low political representation as representatives are the face of the people (all 8 states together constitutes 25 seats in LS;UP= 80 seats)
Rough terrain and low connectivity
unstable government regimes
Militantism and its constant tussle with the government and with the civilians
Unexplored and under-explored tourism because of policy of Inner Line Permit (ILP),militantism and lack of adequate advertisement by the respective state governments
International borders increased the illegal migration and also the menace of drugs and weapons trade
And finally apathy and neglect by the central government in the past and AFSPA to an extent
Some of the measures for unleashing the economic potential are :
First and foremost attitudinal changes among non-north east Indians that North East Indians are part and parcel of our country. This would morally give a WE feeling to them which is missing.
Special incentives for MNCs and industries for developing an industrial hub
Special protection for tourists which increases the hospitality industries and thus the jobs
Infrastructural development and connectivity should be given priority for industrial and hospitality industries to flourish
Repeal AFSPA as suggested by Jeevan Reddy committee
Only when all the regions of the country are developed,we can expect faster,sustainable and inclusive growth which is the current need of the hour.
3. By doing away with the plan and non plan bifurcation of the budget, the Government has injected more flexibility into Government budgeting. Comment.
Till now there were two components of expenditure – plan and non-plan.
Of these, plan expenditures were estimated after discussions between each of the ministries concerned and the Planning Commission (NITI Aayog).
Non-plan revenue expenditure were accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.
Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
The responsibility of allocating non plan expenditure was on Finance Commission.
Earlier this scheme was right for India as India was emerging on the path of development and predefined plans and their allocations were required. But off late there were some discrepancies like:
Many a times the funds allocated for a scheme were not fully utilized by the end of financial year.
Sometimes more funds were exhausted and more funds were not allotted on time because of rigid nature of allocation.
Non – Plan expenditure got secondary status leading to lack of funds. Many a times sectors like Defence, Police remained fund deprived.
Since fund allocation was done by two different agencies there was lack of coordination.
Since the distinction is gone, the Niti Aayog might as well be able to guide the overall development priorities, setting of outcome targets and review of performance of the departments, while the government will be able to call the shots in terms of spending without a distinction between plan and non-plan expenditures.
Government will also be doing more capital spending which is critical for economic growth right now. Government will be able to tackle the imbalance between capital and revenue expenditures.
All the above problems have been tackled by merging plan and non – plan expenditure. Now, since funds are under one agency, it can allocate funds according to the need of different sectors. This has made government budgeting more flexible.
Best Answer : FuryKk
GOI has done away with the practice of plan and non plan bifurcation which will give more flexibility to the government in budgeting because-
1) Plan Monitoring did not stress on investments other than the GOI yearly plan as submitted therefore scope of further investment inclusion was limited
2) Reactive to Proactive role will be played by focusing more of capital formation than plan/ non planned allocation
3) Monitoring system of the GOI would get refined due to increased focus on investments (capital head) and revenue deficit (revenue head)
4) Targetting and tracking recommendation of FRBM Act and NK Singh Committee of 0% revenue deficit would become easier.
5) Capital Investment would get highlighted and constantly tracked. Projects would be seen on the basis of investments and not whether they are part of planned or non planned expenditure.
6) Segregation of schemes into capital/ revenue components would provide details of investments in both plan and non plan projects. Thus flexibility and ease of investments increases.
Plan/ Non Plan expenditure was an old method of budgeting however shift towards capital revenue allocation would go a long way in reducing revenue deficit, targeting higher capital investment and improving utilization of Government spending through more flexibility under capital head.
Way ahead GOI to 1) Set up KPI monitoring for capital investments in schemes and welfare programs 2) Target nil revenuye deficit within next fiscal and 3) State Governments should follow similar procedures to address the issue of flexibility of budgeting and investments and promote growth.
4. The role of the Governor has again come under scrutiny due to alleged subversion of rules post assembly elections. What is your view in this regard? Discuss.
Article 155 of the Constitution of India empowers the President of India to appoint the Governor of a State and Article 156 says he continues to occupy the post till he enjoys the pleasure of the President, which in reality, means the Prime Minister.
Over the past 65 years, no other institution in India has been misused by the ruling party at the Centre for their partisan ends the way the gubernatorial office has been. There have been certain instances in which Governors subverted the people’s mandate, made a mockery of democracy and threw Constitutional propriety to the winds during the last 65 years.
The Governor’s office was misused for the first time in 1952 when the then Madras Governor Sri Prakasa invited C Rajagopalachari after nominating him to the Legislative Council to form the government overlooking the claims of T Prakasam, who enjoyed the majority support. Prime Minister Jawaharlal Nehru shot off an angry letter to Sri Prakasa for subverting democratic norms.
There are several such instances of misuse of Governor’s discretionary powers at the behest of the ruling party at the Centre. Lately (post assembly elections) there are accusations that the Union government has misused the powers of Governor to their advantage and from Goa to Manipur, Governors have sabotaged democracy. (Discuss the recent issue about how BJP formed government in Goa and Manipur despite not being the single largest party in the state and Governors giving green signal for the same.)
Provide your view on Governors power to choose CM (refer best answers or link for some insight) and end it with a diplomatic conclusion.
It must be remembered that for the faults of a few Governors, the entire system cannot be blamed. The character of the incumbent is more important than what our very prolix Constitution provides for each and every contingency.
5. Rural electrification has the potential to transform the rural economy. Do you agree? Substantiate by taking suitable examples.
The power infrastructure plays a vital role in sustained economic development of a country. Electricity is not just a medium to lighten the villages but also a tool to enlighten the minds and souls of rural population by helping them come out of darkness, low levels of development, low literacy levels and non-availability of basic facilities.
The primary hindrance to growth in rural productivity and subsequent economic growth, is the lack of basic infrastructure such as electricity, clean water and sanitation. Farmers and casual wage workers account for roughly 90% of the working population in rural areas and a healthy growth rate of income will certainly help in achieving faster economic growth for the country.
There is a positive relationship between electrification and development in villages. With efficient unhindered electricity supply, there will be a better business, trade and communication that will eventually enhance growth for all stakeholders.
Rural energy needs include energy for a) Cooking b) Basic lighting c) Irrigation d) Communication e) Water heating f) Cottage industry and so on. Rural electrification can meet most of these and the impact can be seen on improved farm productivity, improved health and education, improved communication and economic development through creation of employment in rural areas which traditionally depend on agriculture related income generation activities.
Technology will play a significant role for access to quality education, healthcare and financial services in empowering rural India and for technology to run, power is very much essential.
Providing power to rural areas means all round development of these areas by promoting education, health care facilities, computerisation, telecommunication, online access to land records and access to new technology in agriculture. Moreover, Khadi and village industries also get a boost with the access of electricity. (Provide examples of recent initiatives such as Deen Dayal Upadhyaya Gram Jyoti Yojana)
Rural electrification, thus, acts as a means of social and economic inclusion in the rural Indian society. It helps in creating rural employment and slowing down the rate of migration to urban areas. It ensures inclusive growth for the nation by bridging the rural-urban divide.