Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

12th May 2023

Civil service reforms, H N Sanyal Committee, First ARC, Rajamannar Committee, Sarkaria Commission, National Commission to Review the working of the constitution and Singhvi Committee

ARC Report

Administrative Reforms Commission (employed by the Government of India) publishes some reports, known as ARC reports. ARC’s reports are crucial documents for public administration, effective governance, and much more.

Mainly there are two ARC reports, the first ARC report (published by the 1st ARC started in 1966) and the second ARC report (published by the 2nd ARC set up in 2005). The 1st ARC Report had provided 537 primary recommendations in about 20 reports before it was winded up in the 1970s.

• Conversely, the 2nd ARC published 15 reports encompassing various public administration sectors.
• Though both the ARC Report recommended effective reforms, the 2nd ARC is considered essential for the study of public administrations.

ARC (Administrative Reforms Commission) Report for UPSC

The Government of India has appointed an organization or body known as the Administrative Reforms Commission that provides recommendations for evaluating India’s public administration system. India’s ARC was set up twice.

1st Arc (Administrative Reforms Commission)

The Indian Government established the first Administrative Reforms Commission on 5 January 1966 under revolution number 40/3/65-AR(P). In the beginning, Morarji Desai managed the ARC, but after he got appointed as India’s Deputy Prime Minister, K. Hanumanthaiah managed it as the chairperson.

• This ARC declaration described the ARC configuration, the authorization of the commission, and the practices to be ensured.
• The first ARC was authorized to provide thoughtfulness to certify the premium standards of proficiency and integrity in public services.
• The ARC was mandated to make public administration the perfect equipment for implementing the Indian Government’s various socioeconomic policies and socio-economic development.
• It had provided 537 primary recommendations in about 20 reports before it was wound up in the 1970s.

2nd Arc (Administrative Reforms Commission)

The Government of India founded the 2nd ARC on 31 August 2005 under the resolution K-11022/9/2004-RC. It was established to make a comprehensive scheme to revamp the public administration system in India.

Initially, Veerappa Moily managed the commission as the chairperson. However, after his resignation in 2009, V. Ramachandran took responsibility as the new chairperson.

• The second ARC was authorized to propose some effective measures to attain a practical, responsive, responsible, sustainable, and proficient public administration at all the government levels in India.
• The 2nd Administrative Reforms Commission also published 15 reports encompassing various public administration sectors.

The 2nd ARC Report comprised reforms such as the Indian Government’s organizational structure, integrity in governance, Revamping of Personnel Administration, Reinforcement of Financial Management Systems, Local Self-Government, Citizen-centric, Problems in Federal Polity, Promoting e-governance, Crisis Management, RTI, Unlocking Human Capital, and many more.

• The first-ever report from the 2nd ARC was Right to information, considered a principal means for Good Governance in India.
• The Government of India excluded sectors like Military defense, security, and intelligence, etc., and subjects like judicial reforms and relations between central and State governments from the 2nd ARC’s recommendations.

Rajamannar Committee

• In 1969, the Tamil Nadu Government (DMK) appointed a three-member committee, chaired by Dr. P.V. Rajamannar, to investigate the entire issue of Centre-state relations.
• It wanted the committee to propose constitutional amendments to ensure the states’ maximum autonomy.
• In 1971, the committee delivered its report to the Tamil Nadu government.

Recommendations

The committee’s key recommendations are as follows:

• An Inter-State Council should be formed immediately.
• The Finance Commission should be made permanent.
• The Planning Commission should be disbanded and replaced by a statutory body.
• Articles 356, 357, and 365 (concerning President’s Rule) should be deleted entirely.
• The provision stating that the state ministry holds office at the pleasure of the governor should be removed.
• Certain subjects from the Union List and the Concurrent List should be transferred to the State List.
• Residuary powers should be devolved to the states.
• All-India services such as IAS, IPS, and IFS should be phased out.

Sarkaria Commission

Background

• The agitation for State autonomy led to the creation of the Sarkaria Commission by the Central Government to recommend changes in the Centre-State relationship. 
• The Commission submitted its report in 1988. 
• The founding fathers of the Indian Constitution were deeply concerned about ensuring the unity and integrity of the country. They were aware of the forces of disruption and disunity working within the country. These dangers at the time of independence could be handled only by a strong government at the Centre. 
• Therefore, the framers of the Constitution assigned a predominant role to the Centre. 
• At the same time, they made provisions for the establishment of cooperative federalism.
• The working of the Indian federation during the last five decades clearly shows that the relations between the Centre and the States have not always been cordial. 
• The Administrative Reforms Commission and several other Commissions were appointed by the Government of India from time to time to regulate Centre-State relations. 
• The Union Government appointed the Sarkaria Commission to suggest ways and means to improve Centre-State relations. 
• The clamour for more autonomy led to the constitution of the Sarkaria Commission in 1983 which was asked to examine and review existing arrangements between the Centres and the States in all spheres and recommend appropriate changes and measures. 
• An extraordinary situation, the need to defeat the emergency regime of Indira Gandhi, brought them together. With the return of the Congress party under Indira Gandhi’s leadership with a secure majority, the movements for state autonomy slowly receded in the background. 
• At the present moment, there is no movement for state autonomy like earlier, even though the struggle to get more financial resources for the state continues. 
• In 1990 a visible change came in the correlation of forces active in Indian politics.

Major Recommendations of Sarkaria Commission

The Sarkaria Commission finally submitted its report in the year 1988. The Sarkaria Commission’s charter was to examine the relationship and balance of power between state and central governments in the country and suggest changes within the framework of the Constitution of India. Despite the large size of its reports – the Commission recommended, by and large, status quo in the Centre-State relations, especially in the areas, relating to legislative matters, the role of Governors, and the use of Article 356.

National Commission to Review the Working of Constitution (NCRWC)

• The National Commission to Review the Workings of the Constitution was established by Government Resolution on February 22, 2000, and is chaired by Justice M.N. Venkatachaliah.
• According to the terms of reference, the Commission shall examine, in light of the past 50 years’ experience, how best the Constitution can respond to the changing needs of modern India’s efficient, smooth, and effective system of governance and socio-economic development within the framework of Parliamentary democracy, and to recommend changes.
• If any, that is required in the Constitution’s provisions without interfering with its basic structure or features On March 31, 2002, the Commission delivered its findings to the government in two volumes.
• The mission of the NCRWC is to recommend amendments to the “Indian Constitution.”
• The Commission concluded that Article 263 of the Constitution had enormous potential that has not been properly used in resolving numerous difficulties involving more than one State.
• The Commission observed that when the Union Government enters into a treaty touching an issue on the State List that is crucial to the interests of the states, no previous consultation is undertaken with them.

Recommendation of the Commission

• There were 249 recommendations in total from the commission. 58 of them call for constitutional amendments, 86 for legislative action, and the remaining 105 for executive action. Following is a list of the commission’s major recommendations:

Fundamental Rights:

• Under Article 15 and 16, discrimination should be prohibited on the basis of “ethnic or social origin, political or other viewpoint, property, or birth”.
• Article 19’s freedom of speech and expression should be expanded to expressly include “the freedom of the press and other media, etc.”
• Article 21-A, the right to education, should be expanded.

In terms of preventive detention two adjustments should be made:

• The maximum length should be six months; and
• The advisory board should be composed of a chairman and two other members who should be serving judges of any high court.
• Sikhism, Jainism, and Buddhism should be considered as independent religions from Hinduism, and the clauses combining them under Article 25 should be removed.
• During the operation of a national emergency, the enforcement of the Fundamental Rights under Articles 17, 23, 24, 25, and 32, as well as those under Articles 20 and 21, will not be suspended.

On Comptroller and Auditor General of India (Lack of quality of report):

According to the National Commission to Review the Constitution’s Workings, “administrative departments frequently criticize the audit department’s operation.” They point out that audits frequently focus on minor concerns and a negative fault-finding approach rather than finding a solution to the administration’s problem.

On Directive Principles:

• Part IV of the Constitution’s heading should be changed to ‘Directive Principles of State Policy and Action.’
• A new Directive Principle on Population Control should be added to the list.
• Every five years, an independent National Education Commission should be established.
• To promote inter-religious harmony and social solidarity, an Inter-Faith Commission should be constituted.

On Fundamental Duties:

• The ways and mechanisms by which Fundamental Duties could be publicized and made effective should be considered.
• The Justice Verma Committee’s suggestions on the operationalization of Fundamental Duties should be adopted as soon as possible.
• Article 51-A should add the following new essential responsibilities:
• The responsibility to vote in elections, participate actively in the democratic process of governance and pay taxes.
• To promote a sense of family values and responsible parenting in matters of children’s education, physical, and moral well-being.

On State funding of election:

The National Commission to Review the Constitution’s Workings did not support state funding of elections but agreed with the 1999 law commission report that an appropriate framework for regulating political parties would need to be put in place before state funding could be considered.

On Anti-Defection Law:

• All individuals who defect (individually or in groups) from the party or alliance of parties on whose ticket they were elected must renounce their parliamentary or assembly seats and run in new elections.
• The defectors should be forbidden from holding any public office, including ministerial positions, or any other remunerative political position, for at least the remainder of the current legislature’s term or until the next elections, whichever comes first.
• A vote cast by a defector to overthrow a government should be considered void.
• The Election Commission, rather than the Speaker or Chairman of the House concerned, should have the authority to determine on questions of defection disqualification.

On Center-State Relations:

The National Commission to Review the Working of the Constitution made recommendations, many of which were similar to those made by the Sarkaria Commission. The following few of the novel recommendations:

• According to Article 307, a legislative organization named the Inter-State Trade and Commerce Commission should be constituted.
• A committee consisting of the Prime Minister, Home Minister, Speaker of the Lok Sabha, and the Chief Minister of the state in question shall nominate the Governor.
• The Concurrent List of the Seventh Schedule should cover disaster and emergency management.
• In the event of a political breakdown in a state, the state should be given an opportunity to explain its position and correct the situation before invoking Article 356, to the extent possible.
• The 1990 Inter-State Council directive should explicitly outline the topics that should be discussed during the discussions.

L M Singhvi Committee

Recommendations of L M Singhvi Committee

• Local self-government should be acknowledged by the Constitution.
• Panchayat elections should be held on a regular basis and without delay.
• Every state should establish a Panchayati Raj judicial tribunal to deal with issues relating to the administration of Panchayati Raj.
• Adequate financial resources are required to guarantee that panchayats function effectively.
• Individuals affiliated with political parties should be discouraged from participating.
• The Nyaya Panchayat should be tasked with mediating and resolving disputes.
• The Gram Sabha represents direct democracy, and rural Panchayats should be better organized. Gram Sabha should be prioritized.

Significance

Significance

• It recommended constitutional status for the Panchayat System.
• Establishment of the Nyaya Panchayats to mediate and resolve disputes.
• Gave more emphasis to Gram Sabhas.
• It provided for a plan to gain financial autonomy for the local bodies.

Join Zoom Meeting

https://us06web.zoom.us/j/82728255288?pwd=a21XanR0SUtiQmNzdnZhQlRzUmJBdz09

Meeting ID: 827 2825 5288
Passcode: 537577

Block Your Thursday (12th May) 2023 for an Eye-opening insightful LIVE 1-1 Session by UPSC 2021 Topper (AIR-109) Areeba Ma’am

Message from Areeba ma’am…..

The most important #UPSCskill in this lengthy process is time management. Additionally, you must allocate your time wisely due to the difficulty and breadth of the syllabus, the unpredictable nature of the UPSC exam and its ever-evolving format, and the fierce competition.

Additionally, if you are a working professional, a college student, or a stay-at-home parent studying for this exam without a workable schedule, you won’t be able to maintain consistency and your study habits will suffer.

Areeba Nomaan secured an AIR 109 (IPS), UPSC 2021. She is a super mentor at Civilsdaily where she personally mentors UPSC aspirants. Areeba will take an interactive session where she will engage and take up questions 1-1 from the aspirants on time management, timetable, and staying consistent.

Webinar Details:

Don’t miss this opportunity to learn from an expert in the field! Here are the details for Areeba Nomaan’s (AIR-109, UPSC 2021) live webinar:

Date: 12th May (Friday) 2023.

Time: 5:00 PM Onwards

Zoom Meeting Link will be sent to your registered email.

What to Expect in the Webinar:

In this enlightening webinar, Areeba will share:

1. Management of Priorities – UPSC, family, life, and work.
2. Reducing time on non-priorities.
3. Planning ahead, making targets, staying consistent w.r.t targets.
4. How should the syllabus be approached to complete it within the time limit?
5. Balancing prelims-mains on one hand and GS-current affairs on the other.
6. How to determine the primary focus areas of the Prelims, Mains, and Personality tests?
7. How to apply bookish as well as classroom knowledge to the exam?’

Why Should You Attend?

Whether you’re taking the test for the first time or repeating it after failing, this webinar is required viewing for everyone planning to apply for the UPSC 2024. From Areeba’s personal experience, you’ll learn insightful lessons that will help you succeed in your own UPSC application.

Be sure to take advantage of this once-in-a-lifetime chance to speak with an IPS officer who has already traveled your path and succeeded. Register immediately to receive Areeba Nomaan’s professional advice on redesigning your UPSC preparation plan!

CivilsDaily’s FREE Webinar package UPSC 2024

Post-webinar we will share important PDFs, timetable framework, and notes.

Other than this a strategy package will be emailed to you.

What The Hindu opined about Civilsdaily Mentorship

The most important Seminar for UPSC Preparation 2024 by Civilsdaily’s Super IAS Mentor, AIR 109, Areeba, IPS Ma’am Limited entry

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

11th May 2023

Constitutional Bodies

Constitutional bodies derive their powers and authorities from the Constitution of India. They are mentioned in the Constitution. Since they get their power from the Indian Constitution, any change in the mechanism of the constitutional bodies would require a constitutional amendment.

The list of constitutional bodies in India along with the article pertaining to it in the Constitution and other details are given below:

• Attorney General of India

• Comptroller and Auditor General (CAG)

• Election Commission

• Finance Commission

• National Commission for Scheduled Castes

• National Commission for Scheduled Tribes

• National Commission for Backward Classes

• Special officer for Linguistic Minorities

• Union Public Service Commission

State Public Service Commission

Statutory Bodies in India

• Statutory bodies are established by acts that Parliament or State Legislatures.
• Statutory bodies have the authority to make laws and make decisions on behalf of the state or country.
• A statutory body is a self-governing corporate body. A statutory body is established via an Act of Parliament or an Act of State Legislatures. The Act also specifies the body’s powers, objectives, and functions.
• These bodies are known as statutory bodies because they get their power from statutes or laws adopted by Parliament.
• Statutory Bodies are divided into two types depending on their tasks and responsibilities. They are classified as:
  • Regulatory Bodies
  • Quasi-Judicial Bodies.
• Regulatory Bodies – A regulatory body is a government entity responsible for exerting autonomous power over a specific area of human activity in a regulatory or supervisory role.
• For example, the Biodiversity Authority of India (BAI), the Pension Fund Regulatory and Development Authority (PFRDA), and others.
• Quasi-Judicial bodies – Non-judicial bodies that can interpret the law are referred to as quasi-judicial bodies. They vary from judicial entities in that their scope is narrower than that of a court.
• For example, the National Green Tribunal, the National Human Rights Commission, and the Central Information Commission.

Local Government

• About:
  • Local Self Government is the management of local affairs by such local bodies who have been elected by the local people.
  • The local self-Government includes both rural and urban government.
  • It is the third level of the government.
  • There are 2 types of local government in operation – panchayatas in rural areas and Municipalities in urban areas.
• Rural Local Governments:
  • Panchayati Raj Institution (PRI) is a system of rural local self-government in India.
  • PRI was constitutionalized through the 73rd Amendment Act, 1992 to build democracy at the grass roots level and was entrusted with the task of rural development in the country.
    • This act has added a new Part-IX to the Constitution of India. This part is entitled as ‘The Panchayats’ and consists of provisions from Articles 243 to 243 O.
    • In addition, the act has also added a new Eleventh Schedule to the Constitution. This schedule contains 29 functional items of the panchayats. It deals with Article 243-G.
  • In its present form and structure PRI has completed 30 years of existence. However, a lot remains to be done in order to further decentralization and strengthen democracy at the grass root level.
• Urban Local Governments:
  • They were established with the purpose of democratic decentralisation.
  • There are eight types of urban local governments in India – Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee, Cantonment Board, township, port trust, special purpose agency.
  • At the Central level the subject of ‘urban local government’ is dealt with by the following three Ministries.
    • The Ministry of Urban Development was created as a separate ministry in 1985 (now Ministry of Housing and Urban Affairs).
    • Ministry of Defense in the case of cantonment boards.
    • Ministry of Home Affairs in the case of Union Territories.
  • The 74^th Amendment Act pertaining to urban local government was passed during the regime of P.V. Narsimha Rao’s government in 1992. It came into force on 1^st June, 1993.
    • Added Part IX -A and consists of provisions from articles 243-P to 243-ZG.
    • Added 12th Schedule to the Constitution. It contains 18 functional items of Municipalities and deals with Article 243 W.

What are the Salient Features of 73^rd Constitutional Amendment?

• Compulsory Provisions:
  • Organisation of Gram Sabhas;
  • Creation of a three-tier Panchayati Raj Structure at the Zila, Block and Village levels;
  • Almost all posts, at all levels to be filled by direct elections;
  • Minimum age for contesting elections to the Panchayati Raj institutions be twenty one years;
  • The post of Chairman at the Zila and Block levels should be filled by indirect election;
  • There should be reservation of seats for Scheduled Castes/ Scheduled Tribes in Panchayats, in proportion to their population, and for women in Panchayats up to one-third seats;
  • State Election Commission to be set up in each State to conduct elections to Panchayati Raj institutions;
  • The tenure of Panchayati Raj institutions is five years, if dissolved earlier, fresh elections to be held within six months;
  • A State Finance Commission is set up in each State every five years.
• Voluntary:
  • Giving voting rights to members of the Central and State legislatures in these bodies;
  • Providing reservation for backward classes; and
  • The Panchayati Raj institutions should be given financial powers in relation to taxes, levy fees etc. and efforts shall be made to make Panchayats autonomous bodies.

What are the Salient Features of 74^th Amendment Act?

• Compulsory:
  • Constitution of nagar panchayats, municipal councils and municipal corporations in small, big and very big urban areas respectively;
  • Reservation of seats in urban local bodies for Scheduled Castes / Scheduled Tribes roughly in proportion to their population;
  • Reservation of seats for women up to one-third seats;
  • The State Election Commission, constituted in order to conduct elections in the Panchayati raj bodies (see 73rd Amendment) will also conduct elections to the urban local self- governing bodies;
  • The State Finance Commission, constituted to deal with financial affairs of the panchayati raj bodies also looks into the financial affairs of the local urban selfgoverning bodies;
  • Tenure of urban local self-governing bodies is fixed at five years and in case of earlier dissolution fresh elections are held within six months;
• Voluntary:
  • Giving voting rights to members of the Union and State Legislatures in these bodies;
  • Providing reservation for backward classes;
  • Giving financial powers in relation to taxes, duties, tolls and fees, etc;
  • Making the municipal bodies autonomous and devolution of powers to these bodies to perform some or all of the functions enumerated in the Twelfth Schedule added to the Constitution through this Act and/or to prepare plans for economic development.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

10th May 2023

Fundamental Rights/ DPSP/duties, Federal vs Unitary Features, Parliament/ Legislature, Supreme Court/ High Court

Unitary features – Indian Constitution

Besides the above federal features, the Indian constitution also possesses the following unitary features:

Strong Centre:

The division of powers is in favor of the center and unequal from a federal point of view. Firstly, the Union list contains more subjects than the state list, secondly, the more important subjects have been included in the union list and the Centre has overriding authority over the concurrent list.

Single constitution:

The constitution of India embodies not only the constitution of the Centre but also those of the states. Both the Centre and the States must operate within this single frame.

States not indestructible:

Unlike in other federations, the states in India have no right to territorial integrity. The parliament can change the area, boundaries, or name of any state.

Emergency provisions:

The emergency provisions are contained in Part XVIII of the Constitution of India, from Articles 352 to 360. In the emergency provisions, the central government becomes all-powerful and the states go into total control of the Centre.

Single citizenship:

Single citizenship means one person is the citizenship of the whole country. The constitution deals with citizenship from Articles 5 and 11 under Part 2.

All India services:

In India, there are all India services [IAS, IPS and IFS] which are common to both the Centre and the states. These services violate the principle of federalism under the constitution.

Appointment of governor:

The governor is appointed by the president. He also acts as an agent of the Centre. Through him, the Centre exercises control over the states.

Integrated election machinery:

The election commission conducts elections for central and state legislatures. But the Election commission is constituted by the president and the states have no say in this matter.

No equality of state representation:

The states are given representation in the upper house on the basis of population. Hence, the membership varies from 1 to 31.

Integrated Judiciary:

The term Integrated Judiciary refers to the fact that rulings made by higher courts bind lower courts. The Supreme Court of India incorporates all lower courts, from the Gram Panchayat to the High Courts. The Supreme Court is at the very top.

Integrated Audit Machinery:

The Comptroller and Auditor-General of India has an organization that is run by officials from the Indian Audit and Account Services, a central service that is responsible for not just the Union Government’s accounts and auditing, but also the accounts and auditing of the States.

Veto Over State Bills:

The governor has the authority to hold certain sorts of laws passed by the state legislature for presidential consideration. The President has the authority to refuse to sign such bills not only in the first instance but also in the second. As a result, the President has absolute (rather than suspensive) veto power over state legislation. However, in the United States and Australia, states are independent within respective fields, and no such reservation exists.

Tabular Comparison of Parliament and State Legislature

The Supreme Court of India

The Supreme Court of India replaced the colonial era Federal Court of India, established in 1937 under the Government of India Act of 1935 and worked as the highest court of British India. In the constitution, provisions related to the organisation, jurisdiction, powers, procedures, independence, etc., of the Supreme Court are given from Article 124 to Article 147.

Presently, the Supreme Court of India has 31 judges, including the Chief Justice of India.

Judges of the Supreme Court

The President of India appoints the judges to the Supreme Court; however, the Chief Justice of India is appointed by the President of India with consultation with the Supreme Court collegium. However, the President must consult the Chief Justice of India to appoint other judges to the Supreme Court.

The Judiciary in India follows a collegium system for the appointments of the judges; in this system, a group of sitting judges recommends the appointments of the eligible candidates as the judge of the Supreme Court.

Chief Justice of India

The Chief Justice of India is the highest judicial officer in India. He/she is usually the senior-most judge of the Supreme Court. After the inauguration of the Supreme Court in 1950, traditionally, the senior-most judge of the Supreme Court has been appointed as the Chief Justice. However, in 1973 and 1977, the collegium recommended judges superseding the senior judges.

Qualifications

To be appointed as a judge of the Supreme Court of India, you must satisfy the following qualifications:

1. A person appointed as a judge of S.C must be a citizen of India.
2. A person appointed as a judge of S.C must have been a judge of a High Court of any Indian state for at least 5 years.
3. A person appointed as a judge of S.C must have been an advocate of a High Court of any Indian state for at least 10 years.
4. A person to appoint as a judge of S.C must be a distinguished jurist in the opinion of the President of India.

The constitution of India does not provide for a minimum age requirement for the appointment as a judge of the Supreme Court.

High Court of India

The Indian judiciary system has followed a single integrated judiciary system; the High Court operates below the Supreme Court. Each state of India is provided with a High Court by the constitution of India. The functioning of High Courts is given under Article 214 to Article 231.

All the High Courts consist of one chief justice and several other judges. The President determines the number of judges of the High Court; the President can change the number of judges in any High Court as necessary.

Judges of the High Courts

The President of India appoints the judges to the High Courts across the states. The President of India appoints the chief justice of a High Court after consulting the chief justice of India and the Governor of the respective state. In the appointment of other judges to the high court, the President of India consults the Chief Justice of the Supreme Court of India.

When two or more states share a High Court (e.g., Haryana and Punjab), the governors of all concerned states are consulted by the President of India.

Qualifications

For a person to be appointed as a judge in any High Court of any Indian state, he/she shall satisfy the following qualifications:

1. For a person to be appointed as a judge of H.C, he/she shall be a citizen of India.
2. To become a judge of H.C, he/she should have held a judicial office for at least 10 years.
3. To be appointed as a judge, he/she should have advocated the High Court for 10 years.

The constitution of India does not provide for a minimum age requirement for appointment as a judge of the high court. The constitution also doesn’t provide for the President to appoint a jurist as the judge of a high court.

With the help of this outstanding session accelerate your UPSC current affairs preparation. Current Affairs is simplified, made wholesome, and interwoven.

When it comes to current affairs preparation, aspirants, especially those who have just started their path, confront several difficulties.

Making choices on what to read and what to ignore can be difficult when there are so many resources to go through, including newspapers, magazines, and internet materials.

Many candidates end up devoting hours every single day to studying current events, only to discover that much of what they have learned might not even be pertinent to the test. This ineffective and time-consuming strategy always wastes valuable time that could have been used to prepare for the GS static exam or take optional topics.

To tackle these issues & streamline your current affairs preparation, will be conducting a live strategy webinar on How to do a 45 mins/Day holistic Current Affairs Prep for UPSC-2024.

Webinar Details: Concluded Successfully

Topic: 45 mins/Day Holistic Current Affairs Framework for UPSC 2024

What to expect in this LIVE

• How to cover current affairs in 45 minutes/Day in Effective, Holistic, Minimalistic ways
• How to read current affairs and revise faster.
• What are the proven strategies to build current affairs analytical skills?
• What are the right ways to utilize Newspapers and Fact-heavy short Notes?
• How to Master the Art of Current Affairs charged answer writing?
• How to comprehend the solid Framework to retain and interlink GS topics
• How to find the most relevant Current Affairs topics and pick points to make notes.
• How to recall and recognize current affairs in Prelims, Mains, and Interview questions?

About Samachar Manthan

Samachar Manthan’s Guaranteed results

• 85% of UPSC 2022 Prelims and Mains Questions were from CivilsDaily’s Current Affairs Test Series
• 100+ rankers vouch for the efficacy of Samachar Manthan, a result-oriented Current Affairs program

Samachar Manthan registered the highest turnout of UPSC rankers from any Current Affairs program available in the market

And if that’s not convincing enough, just watch the video below of AIR 2 Jagrati Awasthi, 49 Abhijit Ray, and many more, who will vouch for the efficacy of Samachar Manthan.

Samachar Manthan Yearly for UPSC CSE 2024

This will be the full-fledged batch of UPSC 2024 aspirants that will continue till Mains.

This is what our students have to say about Samachar Manthan & other faculties.

CivilsDaily’s FREE Webinar package UPSC 2024

Post-webinar we will share important PDFs, timetable framework, and notes.

Other than this a strategy package will be emailed to you.

What The Hindu opined about Civilsdaily Mentorship

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

9th May 2023

Separation of Powers, Parliamentary vs Presidential System

Presidential System of Government

In a presidential system, the head of the government leads an executive, that is distinct from the legislature. Here, the head of the government and the head of the state are one and the same. Also, a key feature is that the executive is not responsible to the legislature.

Features of the Presidential System

1. The executive (President) can veto acts by the legislature.
2. The President has a fixed tenure and cannot be removed by a vote of no-confidence in the legislature.
3. Generally, the President has the power to pardon or commute judicial sentences awarded to criminals.
4. The President is elected directly by the people or by an electoral college. 

Merits of Presidential System

The advantages of the presidential system are given below:

• Separation of powers: Efficiency of administration is greatly enhanced since the three arms of the government are independent of each other.
• Expert government: Since the executive need not be legislators, the President can choose experts in various fields to head relevant departments or ministries. This will make sure that people who are capable and knowledgeable form part of the government.
• Stability: This type of government is stable. Since the term of the president is fixed and not subject to majority support in the legislative, he need not worry about losing the government. There is no danger of a sudden fall of the government. There is no political pressure on the president to make decisions.
• Less influence of the party system: Political parties do not attempt to dislodge the government since the tenure is fixed.

Demerits of Presidential System

The disadvantages of the presidential system are given below:

• Less responsible executive: Since the legislature has no hold over the executive and the president, the head of the government can turn authoritarian.
• Deadlocks between executive and legislature: Since there is a more strict separation of powers here, there can be frequent tussles between both arms of the government, especially if the legislature is not dominated by the president’s political party. This can lead to an erosion in efficiency because of wastage of time.
• Rigid government: Presidential systems are often accused of being rigid. It lacks flexibility.
• Spoils system: The system gives the president sweeping powers of patronage. Here, he can choose executives as per his will. This gives rise to the spoils system where people close to the president (relatives, business associates, etc.) get roles in the government.

Parliamentary System of Government

India chose a parliamentary form of government primarily because the constitution-makers were greatly influenced by the system in England. Another reason the founding fathers saw was that the parliamentary model would only work to accommodate the varied and diverse groups within our population. Also, the strict separation of powers in the presidential system would cause conflicts between the two branches, the executive and the legislature, which our newly-independent country could ill-afford.

There are more parliamentary forms of government in the world than there are presidencies. In this system, the parliament is generally supreme and the executive is responsible to the legislature. It is also known as the Cabinet form of government, and also ‘Responsible Government’.

Features of the parliamentary system

1. Close relationship between the legislature and the executive: Here, the Prime Minister along with the Council of Ministers form the executive and the Parliament is the legislature. The PM and the ministers are elected from the members of parliament, implying that the executive emerges out of the legislature.
2. Executive responsible to the legislature: The executive is responsible to the legislature. There is a collective responsibility, that is, each minister’s responsibility is the responsibility of the whole Council.
3. Dual executive: There are two executives – the real executive and the titular executive. The nominal executive is the head of state (president or monarch) while the real executive is the Prime Minister, who is the head of government.
4. Secrecy of procedure: A prerequisite of this form of government is that cabinet proceedings are secret and not meant to be divulged to the public. 
5. Leadership of the Prime Minister: The leader of this form of government is the Prime Minister. Generally, the leader of the party that wins a majority in the lower house is appointed as the PM.
6. Bicameral Legislature: Most parliamentary democracies follow bicameral legislature.
7. No fixed tenure: The term of the government depends on its majority support in the lower house. If the government does not win a vote of no confidence, the council of ministers has to resign. Elections will be held and a new government is formed.

Although India follows this system chiefly influenced by the British model, there are a few differences between the Indian and British systems. They are:

• In India, the PM can be from either the Rajya Sabha or the Lok Sabha. In Britain, the PM will always be from the lower house, the House of Commons.
• In Britain, the speaker once appointed, formally resigns from his/her political party. In India, the speaker continues to be a member of his/her party though he/she is expected to be impartial in the proceedings.
• The concept of a shadow cabinet is absent in India. In Britain, the opposition forms a shadow cabinet that scrutinises the actions and policies of the government. It also offers alternative programmes.

Merits of Parliamentary System

The advantages of the parliamentary system are as follows:

• Better coordination between the executive and the legislature: Since the executive is a part of the legislature, and generally the majority of the legislature support the government, it is easier to pass laws and implement them.
• Prevents authoritarianism: Since the executive is responsible to the legislature, and can vote it out in a motion of no confidence, there is no authoritarianism. Also, unlike the presidential system, power is not concentrated in one hand.
• Responsible government: The members of the legislature can ask questions and discuss matters of public interest and put pressure on the government. The parliament can check the activities of the executive.
• Representing diverse groups: In this system, the parliament offers representation to diverse groups of the country. This is especially important for a country like India.
• Flexibility: There is flexibility in the system as the PM can be changed easily if needed. During the Second World War, the British PM Neville Chamberlain was replaced by Winston Churchill. This is unlike the presidential system where he/she can be replaced only after the entire term or in case of impeachment/incapacity.

Demerits of Parliamentary System

The disadvantages of the parliamentary system are as follows:

• No separation of powers: Since there is no genuine separation of powers, the legislature cannot always hold the executive responsible. This is especially true if the government has a good majority in the house. Also, because of anti-defection rules, legislators cannot exercise their free will and vote as per their understanding and opinions. They have to follow the party whip.
• Unqualified legislators: The system creates legislators whose intention is to enter the executive only. They are largely unqualified to legislate.
• Instability: Since the governments sustain only as long as they can prove a majority in the house, there is instability if there is no single-largest party after the elections. Coalition governments are generally quite unstable and short-lived. Because of this, the executive has to focus on how to stay in power rather than worry about the state of affairs/welfare of the people.
• Ministers: The executive should belong to the ruling party. This rules out the hiring of industry experts for the job.
• Failure to take a prompt decision: Since there is no fixed tenure enjoyed by the Council of Ministers, it often hesitates from taking bold and long-term policy decisions.
• Party politics: Party politics is more evident in the parliamentary system where partisan interests drive politicians more than national interests.
• Control by the bureaucracy: Civil servants exercise a lot of power. They advise the ministers on various matters and are also not responsible to the legislature.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

8th May 2023

Constitutionalism, Liberty, Rule of Law, Equality and Liberalism

Constitutionalism refers to the act that defines that a country or state should be governed by specific rules or the ruling document, i.e., the Constitution. A constitution is a ruling document within a country that defines the specific rules and behaviours to govern and run the country. The ideas of Constitutionalism and the Constitution are of the people and for the people. They work in favour of the people to ensure the protection of their human rights. It is a philosophy that restricts the government to some extent to run the country properly.

Importance of Constitutionalism

Constitutionalism is the basic structure on which the governance of a country or state strictly depends. Its importance cannot be ignored in any aspect. Some key points are mentioned below:

• It is a set of norms that prevents the state from abusing its power
• It ensures that the people have liberty and get justice which is crucial for a democratic country such as India
• It ensures proper governance within the country or state as it puts restrictions on the overuse of state power, thereby protecting the rights of the democracy
• It helps in the better development and welfare in the developing countries as it denotes equal rights for all
• It ensures that the state is based on specific rules and guidelines, which states every person has the right to human dignity.

Elements of Constitutionalism

It implies the following elements which characterise the Constitution in India.

• Sovereignty

It initiates that the government is free from any bias from any particular authority. In short, it ensures the government is of the people, by the people, for the people. 

• Supremacy of the Constitution and Rule of Law

It denotes the country is run through rules, not authority or powers. No one can decide the governance except the laws and regulations which have been already stated.

• Political Democracy

In a democracy, individual rights and equality should be protected. It declares equal rights to all the individuals within the country.

• Representative-limited Government 

It declares the representatives are selected through a proper election process by the people. They elect representatives for their welfare, so they should be accountable and answerable to the general public for their actions.

• Separation of Power 

It divides the whole power into three branches, i.e., Executive, Legislative, and Judiciary. This helps keep checks and balances in each area separately and in a better way.

• Civilian Control of the Military Force

It denotes that the Civilian government should control the Military force in such a way that the Military cannot have any way to interfere in the democratic decision-making process of the country.

• Police Governed by Law and Judicial Control

It ensures the Police power should be judged by the Law and Judicial control. Police have no right to harm the dignity of the people.

• An Independent Judiciary

The independence of the Judiciary system ensures the freedom of the democratic power in India. It means that the government is free to run the country if the laws support it.

Liberalism

Liberalism is a political and philosophical ideology to establish individual freedom, consent and equality. Different liberals adopt a vast range of views based on their understanding of this ideology. Individual rights, including civil and human rights, come first among these views.

It also supports freedom and liberty of speech, religious conscience and press, defining secularism and democracy. 

Liberalism in India

Liberalism in India developed through several phases as follows:

• It started with an ancient theory that stressed earthly life and materialism.
• Then, it evolved through social reforms and political independence in the middle and late 19^th century.
• It now emphasises economic and social freedom with minimal Government intervention.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

5th May 2023

Current affairs Developments in Economics

Refer to the economics current affairs compilation.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

4th May 2023

Cropping Pattern in India

Back to Basics: Cropping Pattern mean the proportion of area under different crops at a point of time, changes in this distribution overtime and factors determining these changes.

Cropping pattern in India is determined mainly by rainfall, climate, temperature and soil type.

Technology also plays a pivotal role in determining crop pattern. Example, the adoption of High Yield Varieties Seeds along with fertilisers in the mid 1960’s in the regions of Punjab, Haryana and Western Uttar Pradesh increased wheat production significantly.

The multiplicity of cropping systems has been one of the main features of Indian agriculture. This may be attributed to following two major factors:

1. Rainfed agriculture still accounts for over 92.8 million hectares or 65 percent of the cropped area. A large diversity of cropping systems exists under rainfed and dryland areas with an overriding practice of intercropping, due to greater risks involved in cultivating larger area under a particular crop.
2. Due to prevailing socio-economic situations (such as; dependency of large population on agriculture, small land-holding size, very high population pressure on land resource etc.), improving household food security has been an issue of supreme importance to many million farmers of India, who constitute 56.15 million marginal (<1.0 hectare), 17.92 million small (1.0-2.0 hectare) and 13.25 million semi-medium (2.0-4.0 hectare) farm holdings, making together 90 percent of 97.15 million operational holdings.
3. An important consequence of this has been that crop production in India remained to be considered, by and large, a subsistence rather than commercial activity.

What are the types of cropping System?

Different types of cropping systems are adopted on farms depending on the resources and technology available. The different & basic types of cropping System is explained below:

Mono-cropping: If only one crop is grown in the land season after season, it is referred to as Monocropping. Example: Wheat will be planted year after year in the same field. 

Crop Rotation: In this method, the type of crops grown in the field is changed each season or each year. farmers also change from crops to fallow. Example: Maize will be planted in the first year and beans in the second year. This Crop rotation system is a key principle of agriculture conservation as it improves the soil structure and fertility. It also helps to control weeds, pests, and diseases.

Sequential Cropping: This system involves growing two crops in the same field, one after the other in the same year. Example: Planting maize during long rains, then beans during the short rains. 

Inter-cropping: Growing two or more crops in the same field at the same time is called Intercropping. Examples: Planting alternating rows of maize and beans, or growing a cover crop in between the rows. 

Mixed Intercropping: In this method, seeds of two crops are distributed or dibbling the seeds without any row arrangement. This method is called mixed intercropping. This method is easy to sow but makes weeding, fertilization, and harvesting difficult. 

Multiple-Cropping: In this cropping system, farmers grow two or more crops on farmland in one year with intensive input management practices. It includes inter-cropping, mixed-cropping, and sequence cropping.

Row Intercropping: In this method, both the main crop and the intercrop in rows are planted. The row intercropping makes weeding and harvesting easier than with mixed intercropping.

Stir Cropping: This type of cropping involves planting broad strips of several crops in the field. Each strip will be 3–9 m wide. On slopes, the strips are laid out along the contour to prevent erosion. The farmer can rotate crops by planting each strip with a different crop in the next year. Example: Alternating strips of maize, soybean, and finger millet are planted. 

Relay Cropping: In this method, one crop is planted and another crop, usually a cover crop, is planted in the same field before harvesting the first. It avoids competition between the main crop and the intercrop. Relay cropping uses the field for a long time since the cover crop usually continues to grow after the main crop is harvested.

In Indian agriculture, three types of Cropping System is used. They are:

• Mono-Cropping

• Inter-cropping

• Multiple-Cropping

Factors Determining Cropping Pattern in India

Cropping Pattern in India

30 most important cropping patterns in India

Specific Issues Related to the Cropping Pattern

Horticulture Crops in India

India has made a good place for itself on the Horticulture Map of the World with a total annual production of horticultural crops touching over 1490 million tones during 1999-00.

The horticultural crops cover about 9 percent of the total area contributing about 24.5 percent of the gross agricultural output in the country. However, the productivity of fruits and vegetables grown in the country is low as compared to developed countries.

Vegetable Crops

Vegetable crops in India are grown from the sea level to the snowline. The entire country can broadly be divided into six vegetable growing zones:

Low productivity is the main feature of vegetable cultivation in India as farm yields of most of the vegetables in India are much lower than the average yield of the world and developed countries.

The productivity gap is more conspicuous in tomato, cabbage, onion, chilli and peas. The preponderance of hybrid varieties and protected cultivation are mainly responsible for high productivity in the developed countries.

Constraints in vegetable production:

1. Lack of planning in Production

2. Non-availability of seeds of improved varieties.

3. High cost of basic production elements

4. Inadequate plant protection measures and non-availability of resistant varieties.

5. Weak marketing facilities

6. Transportation limits

7. Post-harvest losses

8. Abiotic stresses.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 1 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Telegram LIVE with Sukanya ma’am – 06 PM  – Current Affairs Session

Join our Official telegram channel for Study material and Daily Sessions Here

3rd May 2023

External Sectors of India 

All economic activities of an economy which take place in foreign currency fall in the external sector such as balanced of payment, export, import, foreign investment, external debt, current account, capital account, exchange rates etc.

FOREX RESERVES

Foreign exchange reserves are assets denominated in a foreign currency that are held on reserve by a central bank. These may include foreign currencies, bonds, treasury bills and other government securities.

EXCHANGE RATE

Exchange rate is Price at which one currency is converted into or exchanged for another currency.

Various Exchange rates mechanism:

NEER vs REER

CURRENCY CONVERTIBILITY

Currency convertibility is the ease with which the currency of a country can be freely converted into any other foreign currency or gold at market determined exchange rate.

Advantages of capital account convertibility:

• Availability of large funds
• Reduction in cost of capital.
• Greater financial competitiveness.
• Increase in FII/FPI flow.

BALANCE OF PAYMENT

A systematic record of all economic transactions between the residents of one country with the residents of the other country in a financial year.

It consists of balance of trade, balance of current account and capital account.

Balance of trade: Difference between the monetary value of a nation’s exports and imports over a certain time period.

Balance of payments divides transactions in two accounts:

Current account

Capital account

EXTERNAL DEBT

Part of a country s debt which has been borrowed from foreign creditors which includes private commercial banks, international financial institutions such as the World Bank, International Monetary Fund (IMF), and sovereign governments.

Types of external debts:

Short term debt: Maturity period 1 year or less

Long term debt: Maturity period more than 1 year

Sovereign debt : Bonds issued by the national government in any foreign currency to generate funds to meet its financial expenses.

Schemes- Socio economic Development, Poverty and Planning

Refer to the schemes compilation.

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

1st May 2023

Inflation

Inflation is mainly caused either by demand Pull factors or Cost Push factors. Apart from demand and supply factors, Inflation sometimes is also caused by structural bottlenecks and policies of the government and the central banks. Therefore, the major causes of Inflation are:

• Demand Pull Factors (when Aggregate Demand exceeds Aggregate Supply at Full employment level).
• Cost Push Factors (when Aggregate supply increases due to increase in the cost of production while Aggregate demand remains the same).
• Structural Bottlenecks (Agriculture Prices fluctuations, Weak Infrastructure etc.)
• Monetary Policy Intervention by the Central Banks.
• Expansionary Fiscal Policy by the Government.

Demand and Supply factors can be further sub divided into the following:

Inflationary Gap: the Inflationary gap is a situation which arises when Aggregate demand in an economy exceeds the Aggregate supply at the full employment level.

Deflationary Gap: Deflationary Gap is a situation which arises when Aggregate demand in the economy falls short of Aggregate Supply at the full employment level.

Stagflation:  The falling growth along with rising prices makes cost push inflation more dangerous than the demand-pull inflation. The situation of rising prices along with falling growth and employment is called as stagflation.

Hyperinflation: Hyperinflation is a situation when inflation rises at an extremely faster rate. The rate of inflation can increase from 50 times to 300 times. The major causes of the hyperinflation are; government issuing too much currency to finance its deficits; wars and political instabilities and unexpected increase in people’s anticipation of future inflation.

Structural Inflation

• Structuralist Inflation is another form of Inflation mostly prevalent in the Developing and Low-Income Countries.
• The Structural school argues that inflation in the developing countries are mainly due to the weak structure of their economies.

Deflation: Deflation is when the overall price level in the economy falls for a period of time.Deflation is when, for instance, the price of a basket of goods has fallen from Rs 100 to Rs 80. It’s the reduction in overall prices of goods.

Disinflation: Disinflation is a situation in which the rate of inflation falls over a period of time. Remember the difference; disinflation is when the inflation rate is falling from say 5% to 3%.

Headline versus Core Inflation

The headline inflation measure demonstrates overall inflation in the economy. Conversely, the core inflation measures exclude the prices of highly volatile food and fuel components from the inflation index.

Core inflation excludes the highly volatile food and fuel components and therefore represents the underlying trend inflation. 

Banking and Monetary Policy

What is monetary policy?

As the name suggests it is policy formulated by monetary authority i.e. central bank which happens to be RBI in case of India.

It deals with monetary i.e money matters i.e. affects money supply in the economy.

Eg. CRR,SLR,OMO,REPO etc

What is fiscal policy then?

It is formulated by finance ministry i.e. government. It deals with fiscal matters i.e. matters related to government revenues and expenditure.

Revenue matters- tax policies, non tax matters such as divestment, raising of loans, service charge etc

Expenditure matters– subsidies, salaries, pensions, money spent on creation of capital assets such as roads, bridges etc.

Monetary policy and fiscal policy together deal with inflation.

---

Let us now understand how RBI formulates monetary policy to control inflation

It’s clear from what we have learnt so far that to control inflation, RBI will have to decrease money supply or increase cost of fund so that people do not demand goods and services.

Tools available with RBI

---

1. Quantitative tools or general tools- they affect money supply in entire economy- housing, automobile, manufacturing, agriculture- everything.

They are of two types

1. Cash Reserve Ratio (CRR)– as the name suggests, banks have to keep this proportion as cash with the RBI. Bank cannot lend it to anyone. Bank earns no interest rate or profit on this.Bank cannot lend it to anyone. 
2. Statutory Liquidity Ratio (SLR)-  As the name indicates banks have to set aside this much money into liquid assets such as gold or RBI approved securities mostly government securities. Banks earn interest on securities but as yield on govt securities is much lower banks earn that much less interest.

RBI Tools for Controlling Credit/Money Supply

Broadly speaking, there are two types of methods of controlling credit.

Measure of Money Supply in India

Dear Aspirants,

This Spotlight is a part of our Mission Nikaalo Prelims-2023.

You can check the broad timetable of Nikaalo Prelims here

Session Details

YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

Evening 04 PM  – Daily Mini Tests

Join our Official telegram channel for Study material and Daily Sessions Here

1st May 2023

Patterns of Economic Indicators

An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles.

• National Income is the total value of all final goods and services produced by the country in certain year. The growth of National Income helps to know the progress of the country.
• In other words, the total amount of income accruing to a country from economic activities in a year’s time is known as national income.
• National Income includes payments made to all resources in the form of wages, interest, rent and profits.

• National Income Accounting is a method or technique used to measure the economic activity in the national economy as a whole.
• It is the bookkeeping system which measures the level of economic activity in a given time period
• NIA sets rules and definition to measure aggregate economic activity and tries to summarise the performance of the economy

• Gross Domestic Product is the market value of all the goods and services produced within the domestic territory of a country during a specified time period, usually one year.
• Accounting Year = Fiscal Year; for India it is 1st of April to 31st of March (next year)
• Will include the income generated by MNCs in India

Domestic Territory = Political frontiers of the country including its territorial waters+ Embassies/Consulates + Military Establishments of the country abroad + Ships/Aircrafts/Fishing Vessels/Oil Rigs belonging to the residents of the country

• Capital goods (e.g. machinery) are included in GDP, but intermediate goods (e.g. raw materials) are not.
• Intermediate goods and services are not included to avoid double counting.
• Same good can be final (you consuming milk ) or intermediate (milk in the restaurant) depending on the usage.

• Growth Rate (%) = [GDP (Present year – Last Year) / Last Year] x 100
• But, quantitatively the production may not have improved (From 1 kg garlics to 2 kg garlics), and only because of inflation in the prices (₹ 10/kg garlic to ₹ 100/kg) the growth rate may be appear high.
• Therefore (to remove the inflation impact on growth rate), we must select a base year, and convert the current prices to constant prices.
• The ratio of these GDPs is called ‘GDP deflator’, it presents a picture of inflation like CPI and WPI but, unlike CPI & WPI it’s not based on a fixed basket of commodities.
• These figures are revised as the new data arrives / previous data is cross verified & corrected.

• According to OECDà GNI as GDP + NET receipts from abroad (wages, interest, profit, rent) plus net taxes & subsidies receivable from abroad. Here, ‘Wages and salaries’ from abroad = ‘Guest’ workers who reside abroad for less than 12 months and whose centre of economic interest remains in their home country

• National Disposable Income= NNP + Other Current Transfers from rest of the world (remittances, gift, donations etc.)National Disposable Income gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal.

• Personal Income – Personal Tax Payments (e.g. income tax) – Non-tax Payments (e.g. fines)

Fiscal Policy

What is Fiscal Policy? Fiscal Policy deals with the revenue and expenditure policy of the Govt. The word fiscal has been derived from the word ‘fisk’ which means public treasury or Govt funds.

Objectives of Fiscal Policy

The following are the objectives of the Fiscal Policy:

1. Higher Economic Growth
2. Price Stability
3. Reduction in Inequality

What are the components of Fiscal Policy?

There are three components of the Fiscal Policy of India:

1. Government Receipts
2. Government Expenditure
3. Public Debt

Government Receipts

The categorisation of the government receipts is given below:

1. Revenue Receipt
   • Tax Revenue
     • Direct Tax
     • Indirect Tax
   • Non-Tax Revenue
     • Fees
     • License and Permits
     • Fines and Penalties, etc
2. Capital Receipt
   • Loans Recovery
   • Disinvestments
   • Borrowing and other liabilities

Government Expenditure

There are two classifications of public expenditure:

1. Revenue Expenditure – It is a recurring expenditure:
   • Interest Payments
   • Defence Expenses
   • Salaries to Central Government employees, etc are examples of  revenue expenditure
2. Capital Expenditure – It is a non-recurring expenditure
   • Loans repayments
   • Loans to public enterprises, etc.