Biosphere reserves

 

What is a Biosphere Reserve?

A Biosphere Reserve is a special ecosystem or a specialized environment with a flora and fauna that require protection and nurturing. These reserves are managed and studied for the conservation of various life forms found here. They are subjects of scientific and natural interest.

According to UNESCO, “Biosphere reserves are areas of terrestrial and coastal ecosystems promoting solutions to reconcile the conservation of biodiversity with its sustainable use. They are internationally recognized, nominated by national governments and remain under sovereign jurisdiction of the states where they are located”.

In 1971, UNESCO launched a global programme to formalize the scientific interaction between man and his natural environment. This programme is called the Man and the Biosphere Programme (MAB).  Some 120 countries have joined in by establishing 669 biosphere reserves, including 16 transboundary reserves connected by the World Network of Biosphere Reserves. The MAB is a worthy initiative aimed at conserving the ecology and environment which is essential to the very survival of many rare and dying species of flora and fauna. India, with its rich treasure trove of biodiversity, is geographically ideal for establishing, cultivating and maintaining a variety of biosphere reserves.

Biosphere Reserves in India

The Ministry of Environment, Forest and Climate Change, Government of India defines Biosphere Reserves thus – “Biosphere Reserves (BRs) are representative parts of natural and cultural landscapes extending over large area of terrestrial or coastal/marine ecosystems or a combination thereof and representative examples of bio-geographic zones/province”. The Government of India has established about 18 different Biosphere Reserves in the country. Of these, 10 are part of the World Network of Biosphere Reserves, set up under the auspices of the UNESCO Man and Biosphere (MAB) Programme. Not only are animals protected in the Biosphere Reserves of our country but the natural lifestyle of the indigenous people is also promoted. The communities in these regions are encouraged to retain their agrarian lifestyle and develop harmony with the plants and animals. The Biosphere Reserves of India correspond roughly to the IUCN Category V Protected Areas list and are often designed to include one or more national parks and national sanctuaries. The buffer zones of these Biosphere Reserves are open to economic activities as well.

 

 

  1. Criteria for designation of BR
  • A site that must contain an effectively protected and minimally disturbed core area of value of nature conservation.
  • The core area should be typical of a bio-geographical unit and large enough to sustain viable populations representing all trophic levels in the ecosystem.
  • The management authority to ensure the involvement/cooperation of local communities to bring variety of knowledge and experiences to link biodiversity conservation and  socio-economic development while managing and containing the conflicts.
  • Areas potential for preservation of traditional tribal or rural modes of living for harmonious use of environment.

Vision

The World Network of Biosphere Reserves of the MAB Programme consists of a dynamic and interactive network of sites of excellence. It fosters the harmonious integration of people and nature for sustainable development through participatory dialogue; knowledge sharing; poverty reduction and human well-being improvements; respect for cultural values and society’s ability to cope with change – thus contributing to the Millenium Development Goals. Accordingly, the WNBR is one of the main international tools to develop and implement sustainable development approaches in a wide array of contexts.

Mission

To ensure environmental, economic and social (including cultural and spiritual) sustainability through:

  1. The development and coordination of a worldwide network of places acting as demonstration areas and learning sites with the aim of maintaining and developing ecological and cultural diversity, and securing ecosystem services for human well-being;
  2. The development and integration of knowledge, including science, to advance our understanding of interactions between people and the rest of nature;
  3. Building global capacity for the management of complex socio-ecological systems, particularly through encouraging greater dialogue at the science-policy interface; environmental education; and multi-media outreach to the wider community.

 

  1. International Status of Biosphere Reserves (BR)

The UNESCO has introduced the designation ‘Biosphere Reserve’ for natural areas to minimize conflict between development and conservation. BRs are nominated by national government which meet a minimal set of criteria and adhere to minimal set of conditions for inclusion in the world network of Biosphere reserves under the Man and Biosphere Reserve Programme of UNESCO. Globally 621 BRs representing from 117 countries included in the network so far.

 

  1. Structure and functions of BR:

Biosphere reserves are demarcated into following 3 inter-related zones:

Core Zone

Core zone must contain suitable habitat for numerous plant and animal species, including higher order predators and may contain centres of endemism. Core areas often conserve the wild relatives of economic species and also represent important genetic reservoirs having exceptional scientific interest. A core zone being National Park or Sanctuary/protected/regulated mostly under the Wildlife (Protection) Act, 1972. Whilst realizing that perturbation is an ingredient of ecosystem functioning, the core zone is to be kept free from l human pressures external to the system.

Buffer Zone

The buffer zone, adjoins or surrounds core zone, uses and activities are managed in this area in the ways that help in protection of core zone in its natural condition. These uses and activities include restoration, demonstration sites for enhancing value addition to the resources, limited recreation, tourism, fishing, grazing, etc; which are permitted to reduce its effect on core zone. Research and educational activities are to be encouraged. Human activities, if natural within BR, are likely to continue if these do not adversely affect the ecological diversity.

Transition Zone

The transition area is the outermost part of a biosphere reserve. This is usually not delimited one and is a zone of cooperation where conservation knowledge and management skills are applied and uses are managed in harmony with the purpose of the biosphere reserve.  This includes settlements, crop lands, managed forests and area for intensive recreation and other economic uses characteristics of the region.

 

  1. Tripartite functions of BR (Conservation, Development and logistic support)
  • To conserve the diversity and integrity of plants and animals within natural ecosystems
  • To safeguard genetic diversity of species on which their continuing evolution depends
  • To ensure sustainable use of natural resources through most appropriate technology for improvement of economic well-being of the local people
  • To provide areas for multi-faceted research and monitoring
  • To provide facilities for education and training
  1. Management

100% grant-in-aid is provided under the Biosphere Reserve scheme for the approved items of activities for implementation of Management Action Plans submitted by the concerned States/UT. The activities permitted under the scheme are broadly under the following areas:

  • Value addition activities
  • Sustainable use of threatened resources
  • Rehabilitation of landscapes of threatened species and ecosystems
  • Socio-economic upliftment of local communities
  • Maintenance and protection of corridor areas
  • Development of communication system and Networking
  • Development of Eco-tourism

BR scheme is different from other conservation related schemes. It has the focus on the welfare of local inhabitants through provision of supplementary and alternate livelihood support to the people in the buffer and transition zones in order to reduce biotic pressure on biodiversity of the natural reserves of core zone.

 

Main Characteristics of Biosphere Reserves

  1. Achieving the three international functions: conservation, development and logistic support.
  2. Outpacing traditional confined conservation zones, through appropriate zoning schemes combining core protected areas with zones where sustainable development is fostered by local dwellers and enterprises with often highly innovative and participative governance systems.
  3. Focusing on a multi-stakeholder approach with particular emphasis on the involvement of local communities in management;
  4. Fostering dialogue for conflict resolution of natural resource use.
  5. Integrating cultural and biological diversity, especially the role of traditional knowledge in ecosystem management.
  6. Demonstrating sound sustainable development practices and policies based on research and monitoring.
  7. Acting as sites of excellence for education and training.
  8. Participating in the World Network.

 

 

 

The bio-reserves in India

The Indian government has established 18 Biosphere Reserves in India,(categories roughly corresponding to IUCN Category V Protected areas), which protect larger areas of natural habitat (than a National Park or Animal Sanctuary), and often include one or more National Parks and/or preserves, along with buffer zones that are open to some economic uses. Protection is granted not only to the flora and fauna of the protected region, but also to the human communities who inhabit these regions, and their ways of life. Animals are protected and saved here.

The Indian government has established eighteen biosphere reserves of India which protect larger areas of natural habitat and often include one or more national parks and/or preserves, along buffer zones that are open to some economic uses. Protection is granted not only to the flora and fauna of the protected region, but also to the human communities who inhabit these regions, and their ways of life.

The bio-reserves in India are:

 

Ten of the eighteen biosphere reserves are a part of the World Network of Biosphere Reserves, based on the UNESCO Man and the Biosphere Programme (MAB) list.

 

 

List of Biosphere reserves in India. Name of Biosphere reserve, Year of Notification, Total Area and Location is as follows…..
Sl. No. Name of Biosphere Reserve Date of Notification Area of the core / buffer/transition (In Km2) Location (States)
1 Nilgiri 01.09.1986 5520
(Core 1240 & Buffer 4280)
Part of Wayanad, Nagarhole, Bandipur and Madumalai, Nilambur, Silent Valley and Siruvani hills (Tamil Nadu, Kerala and Karnataka).
2 Nanda Devi 18.01.1988 5860.69
(Core 712.12, Buffer 5,148.570) & T. 546.34)
Part of Chamoli, Pithoragarh, and Bageshwar districts (Uttarakhand).
3 Nokrek 01.09.1988 820
(Core 47.48 & Buffer 227.92, Transition Zone 544.60)
Part of Garo hills (Meghalaya).
4 Great Nicobar 06.01.1989 885 (Core 705 & Buffer 180) Southern most islands of Andaman And Nicobar (A&N Islands).
5 Gulf of Mannar 18.02.1989 10,500 km2
Total Gulf area
(area of Islands 5.55 km2)
Indian part of Gulf of Mannar between India and Sri Lanka (Tamil Nadu).
6 Manas 14.03.1989 2837
(Core 391 & Buffer 2,446)
Part of Kokrajhar, Bongaigaon, Barpeta, Nalbari, Kamprup and Darang districts (Assam).
7 Sunderbans 29.03.1989 9630
(Core 1700 & Buffer  7900)
Part of delta of Ganges and Brahamaputra river system
(West Bengal).
8 Simlipal 21.06.1994 4374
(Core 845, Buffer 2129 & Transition 1400
Part of Mayurbhanj district (Orissa).
9 Dibru-Saikhowa 28.07.1997 765
(Core 340 & Buffer 425)
Part of Dibrugarh and Tinsukia Districts (Assam).
10 Dehang-Dibang 02.09.1998 5111.50
(Core 4094.80 &Buffer 1016.70)
Part of Siang and Dibang Valley in Arunachal Pradesh.
11 Pachmarhi 03.03.1999 4926 Parts of Betul, Hoshangabad and Chindwara districts of Madhya Pradesh.
12 Khangchendzonga 07.02.2000 2619.92
(Core 1819.34 & Buffer 835.92)
Parts of Khangchendzonga hills and Sikkim.
13 Agasthyamalai 12.11.2001 1828 Neyyar, Peppara and Shendurney Wildlife Sanctuaries and their adjoining areas in Kerala.
14 Achanakamar –    Amarkantak 30.3.2005 3835.51
(Core 551.55 & Buffer  3283.86)
Covers parts of Anupur and Dindori districts of M.P. and parts of Bilaspur districts of Chhattishgarh State.
15 Kachchh 29.01.2008 12,454 km2 Part of Kachchh, Rajkot, Surendra Nagar and Patan Civil Districts of Gujarat State.
16 Cold Desert 28.08.2009 7770 Pin Valley National Park and surroundings; Chandratal and Sarchu&Kibber Wildlife Sanctuary in Himachal Pradesh.
17 Seshachalam Hills 20.09.2010 4755.997 Seshachalam Hill Ranges covering parts of Chittoor and Kadapa districts of Andhra Pradesh.
18 Panna 25.08.2011 2998.98 Part of Panna and Chhattarpur districts in Madhya Pradesh.

 

The International Advisory Committee for Biosphere Reserves

The International Advisory Committee for Biosphere Reserves is the primary scientific and technical Committee body advising the International Co-ordinating Council (ICC) of the MAB Programme and its World Network of Biosphere Reserves (WNBR) and the Director General of UNESCO on matters pertaining to the WNBR.

The Committee advise the Director-General of UNESCO and the MAB-ICC on scientific and technical matters concerning the nomination of new sites and, changes and periodic reviews of sites already included in the WNBR, as well as the development, operation and monitoring of the WNBR which they constitute in accordance with the Seville Strategy and the Statutory Framework for the WNBR.

The Committee is composed of twelve members, who are appointed for four years by the Director-General, after consultation with the Member States and or the National Committees for the Man and the Biosphere Programme of the countries concerned.

The members of the Committee are selected for their scientific qualifications and for their experience in promoting and implementing the concept of biosphere reserve.

Designation of Biosphere Reserves

Article 5 of the 1995 Statutory Framework of the World Network of Biosphere Reserve, states the designation procedure for biosphere reserves. It reads as follows:

Article 5- Designation procedure

  1. Biosphere reserves are designated for inclusion in the Network by the International Co-ordinating Council (ICC) of the MAB Programme in accordance with the following procedure.
  2. a) States, through National MAB Committees where appropriate, forward nominations with supporting documentation to the secretariat after having reviewed potential sites, taking into account the criteria as defined in Article 4.
  3. b) The secretariat verifies the content and supporting documentation: in the case of incomplete nomination, the secretariat requests the missing information from the nominating State.
  4. c) Nominations will be considered by the Advisory Committee for Biosphere Reserves for recommendation to ICC.
  5. d) ICC of the MAB Programme takes a decision on nominations for designation.

The Director-General of UNESCO notifies the State concerned of the decision of ICC.

  1. States are encouraged to examine and improve the adequacy of any existing biosphere reserve, and to propose extension as appropriate, to enable it to function fully within the Network. Proposals for extension follow the same procedure as described above for new designations.3. Biosphere reserves which have been designated before the adoption of the present Statutory Framework are considered to be already part of the Network. The provisions of the Statutory Framework therefore apply to them.

Periodic Review Process

The periodic review is an important event in the life of a biosphere reserve. It enables a review, every ten years, of the functioning, zoning, scale of the biosphere reserve as well as the involvement of the populations living in the site. The Statutory Framework for the World Network of Biosphere Reserves (WNBR) makes provision under Article 9 that “the status of each biosphere reserve should be subject to a periodic review every ten years, based on a report prepared by the concerned authority, on the basis of the criteria of Article 4, and forwarded to the secretariat by the State concerned. The report will be considered by the Advisory Committee for Biosphere Reserves for recommendation to International Co-ordinating Council.”

The periodic review represents an opportunity to carry out a qualitative survey of the actions implemented, their results. It’s a time to take stock of progress made by the biosphere reserve, especially as concerns the updating of knowledge, skills and expertise in resource and ecosystem management. It also provides an opportunity to discuss the updating of the zonation system and assess its relevance, question the objectives and means of management policies and examine the issues and problems tied to implementation. It is also a time to discuss weak points.  Its objective is to improve the quality of the biosphere reserves and their functioning as sites for testing and demonstrating approaches to sustainable development. To date, 356 periodic review reports were received by the Secretariat and examined by the MAB International co-ordinating Council.

Biosphere reserves which are not able to meet the criteria of Article 4 have been withdrawn by the countries from the World Network of Biosphere Reserves (WNBR) (see Article 9 of the Statutory Framework). As of August 2013, 16 sites have been withdrawn.

Biosphere reserves are sites established by countries and recognized under UNESCO’s Man and the Biosphere (MAB) Programme to promote sustainable development based on local community efforts and sound science. The Programme of Biosphere Reserve was initiated by UNESCO in 1971. The purpose of the formation of the biosphere reserve is to conserve in situ all forms of life, along with its support system, in its totality, so that it could serve as a referral system for monitoring and evaluating changes in natural ecosystems. The first biosphere reserve of the world was established in 1979, since then the network of biosphere reserves has increased to 631 in 119 countries across the world. Presently, there are 18 notified biosphere reserves in India.

 

 

23.01.18 Arunachal Pradesh(APPSC) Current Affairs

NORTH-EASTERN STATES

 

  • Centre to focus on silk sector in NE

 

  • Union minister of state for textiles Ajay Tamta on Monday said the ministry has accorded high priority to develop the silk sector as a viable option for livelihood in the northeast. The region makes up about 21% of the country’s total silk production.

 

  • Muga, known for its golden colour, is found only in the northeast and Assam owns the geographical indication (GI) tag for muga.

 

  • Nearly 3.1 lakh families in Assam are associated with the silk sector. A 60,000-acre area is involved in silk production and plantations for plants for silkworms.

 

  • In the past few years, the Centre has sanctioned about 24 projects in silk sector worth Rs 809 crore for the northeast. Silk production sector can be one of the most effective poverty alleviation tools. 

     

    INTERNATIONAL

     

    • Malta’s Valletta becomes Europe’s Capital of Culture

     

    • Valletta has been officially inaugurated as the European Capital of Culture.

     

    • Over 140 projects and 400 events have been planned in 2018 around three main themes: Island Stories, Future Baroque and Voyages.

     

    • With about 6,000 inhabitants, Valletta is the smallest capital in the European Union.

     

    • It is located in a fortress and is a UNESCO World Heritage Site.

     

     

    ·        China adds 24 GW in just two months making it biggest producer of solar energy

     

    • Renewable energyuse is increasing day by day almost everywhere.
    • Prime Minister Narendra Modi also weighed on the increase in the use of solar power and also brought ‘Suryaputra’ nations together for better and cleaner future.
    • Solar energy use was noted by China when the country managed to add 10.52 gigawatts (GW) of solar capacity to its national total over the course of July 2017, in addition to the 24.4 GW of capacity that was installed over the first six months of the year.
    • The country is already the biggest producer of solar energy in the world, and that doesn’t seem likely to change anytime soon.
    • In the last two months alone, China has added 24.02 GW of solar capacity.
    • To put that into context, figures from earlier this year put Australia’s total capacity at around 6GW, a figure that’s projected to double by 2020. The US currently has a total capacity of 44.7 GW.
    • Meanwhile, China already cleared its goal of reaching a capacity of 105 GW by the end of 2020.

    ·        Sri Lanka bans import of non-airbag equipped vehicles from July 1

    ð  Sri Lanka restricted the import of the vehicles which do not carry airbags for driver and front seat passenger, Anti-Locking Breaking System standards (ABS) and three-point seat belts for driver and passengers traveling front and rear seats.

    ð  This decision after considering the representations made by motor vehicle importers and manufacturers for a lead time to make required adjustments to comply with the proposed emission standards and safety measures.

    ð  Accordingly, the importation of motor vehicles, which are below emission standards of the Euro IV or its equivalent and not complied with the following safety standards, will totally be prohibited effective from 1st July 2018.

    ·        West Indies to Host 2018 Womens World T20

     

    • The International Cricket Council (ICC)announced the 2018 edition of the Women’s World T20 will be hosted by West Indies in November 2018.
    • Hosts Windies will defend the title they won over Australia in Kolkata in 2016.
    • The three venues were selected by Cricket West Indies through a bidding process and have been ratified by the ICC.
    • The November event in the Caribbean will be the first stand-alone ICC Women’s World Twenty20 after the past five events were played alongside the men’s event.

     

    NATIONAL

     

    ·        India is the 5th Most Attractive Market for Investments: PwC Survey

     

    • India emerged as the fifth most attractive market for investments and the optimism over global economic growth is at a record level, as per the survey of CEOs by global consultancy PwC.
    • The US remains the top spot for global investment. Around 46% of global CEOs consider the US as one of the three most important countries for growth, followed by China (33%) and Germany (20%) at second and third places, respectively. India (9%) bumps Japan (8%) as the fifth most attractive market in 2018.

     

    • Centre bans import of pet coke for trading purpose in Delhi and NCR

     

    • As part of measures to control air pollution, the Union environment ministry has banned import of pet coke for purpose of trading in Delhi and its neighbouring states.
    • It has notified do’s and don’ts for its sale and use in cement plants and other end user industrial units, including refineries.

     

    • The ministry listed 13 points to regulate use of pet coke which is one of the key sources of air pollution in the region.

     

    • The notification was issued in compliance with the 2017 Supreme Court order

     

    Gk bit- Pet coke

     

    • Petroleum coke, or petcoke, is a byproduct from the refining of crude oil. It consists mostly of carbon, with variable amounts of sulfurs and heavy metals. It has many industrial uses, including the production of batteries, steel, and aluminum. Lower grade petcoke, which contains higher concentrations of sulfur, is used as fuel in coal-fired power plants and cement kilns. Lower grade coal is estimated to represent 75% to 80% of all petcoke produced.

    • The increased demand for coal to replace petcoke, which will largely have to be met by imports, coincides with increasing coal consumption in India for power generation.

     

    • India is the world’s second-biggest buyer of foreign coal even though imports have held steady in the last two years because of rising local output.

     

    • RIL becomes India’s first firm to cross Rs 6-lakh crore market cap

     

    • Reliance Industries (RIL) become the first Indian company to cross the Rs 6-lakh crore mark in market capitalisation as its shares touched a 52-week high of Rs 974.5.

     

    • RIL is owned 40% by its chairman Mukesh Ambani, making him the richest Indian with personal wealth of $40.7 billion and the 20th richest globally.

     

    • India’s largest software exporter, Tata Consultancy Services follows RIL with market capitalisation of Rs 5,95,946 crore.

     

    • HDFC Bank become the first bank to cross market capitalisation of Rs 5 lakh crore recently.

     

    ·        Union Government Announces List of 9 New Smart Cities

     

    • Union Housing and Urban Affairs Minister Hardeep Singh Puri announced the list of nine new Smart Cities, which have emerged winners in Round 4.
    • These nine cities are, Silvassa in Dadra and Nagar Haveli, Erode in Tamil Nadu, Diu in Daman and Diu, Bihar Sharif in Bihar, Bareilly in Uttar Pradesh, Itanagar in Arunachal Pradesh, Moradabad in Uttar Pradesh, Saharanpur in Uttar Pradesh and Kavaratti in Lakshadweep.

Development processes – the role of civil society, NGOs and other stakeholders

Civil society is the “third sector” of society, along with government and business. It comprises civil society organizations and non-governmental organizations. The UN recognizes the importance of partnering with civil society, because it advances the Organization’s ideals, and helps support its work. Here are some useful websites for members of civil society and also for those interested in the work of the UN.
The Indian national movement popularized the ideas of a representative democracy and civil liberties amongst the masses in order to prevent the colonial rulers from limiting the space from which the national leaders could organize these activities and in this way not only generated awareness amongst the masses about these ideas but also ensured from their actions that these ideas would have a firm foot-hold even in post-colonial India
In independent India, the initial role played by the voluntary organizations started by Gandhi and his disciples was to fill in the gaps left by the government in the development process. The volunteers organized handloom weavers in village to form cooperatives through which they could market their products directly in the cities, and thus get a better price. Similar cooperatives were later set up in areas like marketing of dairy products and fish.
Since 1970s a number of social movements emphasising on a range of basic issues have come to animate the sphere of civil society. They are ‘new’ in contrast to the old trade union and working class movements, which were political in the sense of having an alternate political vision of the state itself with revolutionary ideals. But the people’s movements, as they are called, are the result of broader-based people’s responses to ecological or gender or caste conflicts.
Different types of Civil Societies are:-
humanitarian, (short-term relief to prevent death)
development, (long-term efforts to improve quality of life in economic, political and social sectors)
human rights (efforts to create supportive political environment)
peacebuilding (works specifically to address conflict)
Mains importance of the Civil Societies/NGO are:-
i) People’s participation
ii) Technnical excellence
iii) Cost-effectiveness
iv) Equity-concern for the deprived, and for women
v) Institutional, financial, and environmental sustainability
vi) Accountability

A non-governmental organization (NGO) is a legally constituted organization created by natural or legal persons that operates independently from any form of government. The term originated from the United Nations (UN), and is normally used to refer to organizations that are not a part of the government and are not conventional for-profit business. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. The term is usually applied only to organizations that pursue wider social aims that have political aspects, but are not openly political organizations such as political parties.
NGOs in India are legally registered under the society Registration Act 1860, Indian Trust Act 1882, the Co- Operative Societies Act, 1904, the Joint Stock Companies Act, 1956 in order to meet the judicial requirements. To avail the foreign contribution, they need to register under Foreign Contribution Regulation Act, 1976.

Public Finance, Monetary Policies, Inflation & Control Mechanism, Repo Rate, Reverse Repo Rate, CRR & SLR.

Table of Content:-

  1. Public Finance
  2. Monetary Policies
  3. Inflation & Control Mechanism,
  4. Repo Rate
  5. Reverse Repo Rate
  6. CRR
  7. SLR.


Public Finance


Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

It includes the study of :-

  • Fiscal Policy
  • Deficits and Deficit Financing
  • Fiscal Consolidation
  • Public Debt- Internal and External debt

Fiscal policy relates to raising and expenditure of money in quantitative and qualitative manner.Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty. The role and objectives of fiscal policy gained prominence during the recent global economic crisis, when governments stepped in to support financial systems, jump-start growth, and mitigate the impact of the crisis on vulnerable groups.

pfHistorically, the prominence of fiscal policy as a policy tool has waxed and waned. Before 1930, an approach of limited government, or laissez-faire, prevailed. With the stock market crash and the Great Depression, policymakers pushed for governments to play a more proactive role in the economy. More recently, countries had scaled back the size and function of government—with markets taking on an enhanced role in the allocation of goods and services—but when the global financial crisis threatened worldwide recession, many countries returned to a more active fiscal policy.

How does fiscal policy work?

When policymakers seek to influence the economy, they have two main tools at their disposal—monetary policy and fiscal policy. Central banks indirectly target activity by influencing the money supply through adjustments to interest rates, bank reserve requirements, and the purchase and sale of government securities and foreign exchange. Governments influence the economy by changing the level and types of taxes, the extent and composition of spending, and the degree and form of borrowing.

Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

Fiscal consolidation is a term that is used to describe the creation of strategies that are aimed at minimizing deficits while also curtailing the accumulation of more debt. The term is most commonly employed when referring to efforts of a local or national government to lower the level of debt carried by the jurisdiction, but can also be applied to the efforts of businesses or even households to reduce debt while simultaneously limiting the generation of new debt obligations. From this perspective, the goal of fiscal consolidation in any setting is to improve financial stability by creating a more desirable financial position.

The public debt is defined as how much a country owes to lenders outside of itself. These can include individuals, businesses and even other governments.public debt is the accumulation of annual budget deficits. It’s the result of years of government leaders spending more than they take in via tax revenues.

 


Monetary Policies


Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
Objectives of Monetary Policies are:-
  •  Accelerated growth of the economy
  • Balancing saving and investments
  • Exchange rate stabilization
  • Price stability
  • Employment generation

Monetary Policy could be expansionary or contractionary;  Expansionary policy would increase the total money supply in the economy while contractionary policy would decrease the money supply in the economy.

RBI issues the Bi-Monthly monetary policy statement. The tools available with RBI to achieve the targets of monetary policy are:-

  • Bank rates
  • Reserve Ratios
  • Open Market Operations
  • Intervention in forex market
  • Moral suasion

 

 

Repo Rate- Repo rate is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds. In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.

Reverse Repo Rate is the rate at which RBI borrows money from the commercial banks.An increase in the reverse repo rate will decrease the money supply and vice-versa, other things remaining constant. An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market.

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.The amount specified as the CRR is held in cash and cash equivalents, is stored in bank vaults or parked with the Reserve Bank of India. The aim here is to ensure that banks do not run out of cash to meet the payment demands of their depositors. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

CRR specifications give greater control to the central bank over money supply. Commercial banks have to hold only some specified part of the total deposits as reserves. This is called fractional reserve banking.

Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers.its the ratio of liquid assets to net demand and time liabilities.Apart from Cash Reserve Ratio (CRR), banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities. Treasury bills, dated securities issued under market borrowing programme and market stabilisation schemes (MSS), etc also form part of the SLR. Banks have to report to the RBI every alternate Friday their SLR maintenance, and pay penalties for failing to maintain SLR as mandated.


Inflation & Control Mechanism


inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services.It is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year. In India, inflation is calculated by taking the WPI as base.

Formula for calculating Inflation=

(WPI in month of current year-WPI in same month of previous year)
————————————————————————————– X 100
WPI in same month of previous year

Inflation occurs due to an imbalance between demand and supply of money, changes in production and distribution cost or increase in taxes on products. When economy experiences inflation, i.e. when the price level of goods and services rises, the value of currency reduces. This means now each unit of currency buys fewer goods and services.

It has its worst impact on consumers. High prices of day-to-day goods make it difficult for consumers to afford even the basic commodities in life. This leaves them with no choice but to ask for higher incomes. Hence the government tries to keep inflation under control.

Contrary to its negative effects, a moderate level of inflation characterizes a good economy. An inflation rate of 2 or 3% is beneficial for an economy as it encourages people to buy more and borrow more, because during times of lower inflation, the level of interest rate also remains low. Hence the government as well as the central bank always strive to achieve a limited level of inflation.

Various measures of Inflation are:-

  • GDP Deflator
  • Cost of Living Index
  • Producer Price Index(PPI)
  • Wholesale Price Index(WPI)
  • Consumer Price Index(CPI)

There are following types on Inflation based on their causes:-

  • Demand pull inflation
  • cost push inflation
  • structural inflation
  • speculation
  • cartelization
  • hoarding

Various control measures to curb rising inflation are:-

  • Fiscal measures like reduction in indirect taxes
  • Dual pricing
  • Monetary measures
  • Supply side measures like importing the shortage goods to meet the demand
  • Administrative measures to curb hoarding, Cratelization.

 

 

BUDGETARY REFORMS    

Government bodies raise money by imposing taxes on citizens and then use those funds to pursue various programs such as education, defence, infrastructure and research and development. A government’s budget describes all of its sources of income and where it spends that income, and budget reform is the process of making changes to how the government collects and spends money.

Governments pursue budget reform for many reasons. If government spending is greater than the amount of money the government takes in with taxes, reform may be necessary to balance the budget and control government debt. Politicians may pursue changes in government spending or taxation to gain favor with their constituents.

Budget reform can have many potential benefits. Reforms can reduce wasteful expenditures and help lessen government deficit, potentially leading to surpluses. A surplus occurs when a government takes in more money than it spends. Budget reform can result in funding for new beneficial programs or increases in funding education, infrastructure or other areas to help certain individuals or organizations. Tax reforms can benefit individuals and businesses if they reduce their tax burden. Cutting taxes can stimulate spending, which can help stimulate economic activity.

Budget reform only describes changing the collection or spending of money, not whether spending or collection goes up or down. Any potential benefit to budget reform can also be a drawback if changes occur in an unfavourable direction. For instance, if the government reforms its budget by cutting spending on education and infrastructure, it could hurt students and those who rely on public infrastructure spending for their jobs. Increases in spending can make governments fall into debt.

Government spending and taxation is controversial, and any budget reform that a government pursues is likely to be viewed as beneficial by some and negatively by others. Budget reforms passed by Congress often reflect a compromise between desires of different political parties.

The parliamentary committee headed by the Congress MP M Veerappa Moily, had been constituted to review the all budgetary reforms. Besides the budget, the committee will also review the disinvestment policy, banking sector in India.

Budgetary Reform in India for 2017

The Union Cabinet had given in principle approval last year for advancement of the date of Budget presentation from the last day of February to a suitable date.

Besides in another reform relating to budgetary process, Union Cabinet had approved merger of Plan and Non Plan classification in Budget and Accounts.

Advancement of the date of Budget presentation Benefits Pave way for early completion of Budget cycle and enable Central Ministries and Departments to ensure better planning and execution of schemes from beginning of financial year. It will also enable Central Ministries and Departments to ensure better utilize the full working seasons including the first quarter of the year. It will preclude the need of appropriation through ‘Vote on Account’. It will enable implementation of legislative changes in tax and laws for new taxation measures from the beginning of financial year.

Merger of Plan and Non Plan classification in Budget and Accounts the Union Cabinet also approved proposal of Union Finance Ministry to do away with the Plan and Non-Plan expenditure classification from 2017-18and replace with ‘capital and receipt’. The relevance of plan and non-plan expenditure was lost after the abolition of the Planning Commission. However Budget will continue earmarking funds for Scheduled Castes Sub-Plan/Tribal Sub-Plan and similarly, the allocations for North Eastern States. Plan/Non-Plan will help in resolving the following issues This distinction of expenditure had led to a fragmented view of resource allocation to various schemes. It had made it difficult to ascertain cost of delivering a service and also to link outlays to outcomes. It had led to bias in favour of Plan expenditure by Centre as well as the State Governments and had neglected essential expenditures on maintenance of assets and other establishment related expenditures to provide essential social services. The merger is expected to provide appropriate budgetary framework that will have focus on the capital and revenue expenditure.

 

MARATHA EMPIRE

Rise of Maratha Empire

Chhatrapati Shivaji Maharaj (Shivaji Shahaji Bhosale) was the founder of strong Maratha Empire in the west part of India in 17th Century.

Chhatrapati Shivaji Maharaj (Shivaji Shahaji Bhosale) was born in the fort of Shivneri, near from city Junner (Pune District), in the year 1630 (19th February’ 1630). His mother Jijabai Bhosale named him Shivaji in the honor of goddess Shivai Devi. Chhatrapati Shivaji was devoted to his mother Jijabai Bhosale, who was extreme religious. This kind of environment had put deep impact on Shivaji maharaj.

Expansion of Empire and Battles of Shivaji

  • In the 1659 Adilshah sent Afzalkhan with the army of 75000 soldiers to destroy Shivaji with his empire. Chhatrapati Shivaji killed Afzal Khan with full diplomatically. He signaled his troops to start the great assault on the Adilshahi Sultanate.
  • Shivaji defeated Kaltalf Khan, a sardar of Shahista Khan in the Battle of Umberkhind with few soldiers (Mavale).
  • Aurangjeb sent his maternal uncle Shahista Khan with powerful army over 1,50,000 on request of Badibegum Sahiba, Adishahi sultanate. In the April 1663Chhatrapati Shivaji personally made surprise attack on Shahista Khan in the LalMahal Pune.
  • Chhatrapati Shivaji sacked surat ,the wealthy city of mughal empire in 1664. Surat was the financial capital of mughal& trading centre.
  • Chhatrapati Shivaji agreed to give 23 forts and Rs. 4,00,000/- hone, to let his son Sambhaji become Mughal Sardar and ready to meet with Aurangjeb in the treaty of Purander between Chhatrapati Shivaji and Mirza Raje Jaisingh on behalf of Mughal.
  • Chhatrapati Shivaji gained lot of province till jinji in Karnataka after coronation in the period of 1677-1678.
  • Aurangjeb invited Chhatrapati Shivaji to Agra on occasion of his 50th birth anniversary. However, in the court on 1666 Aurangjeb made in stand behind military commanders of his court.Shivaji got angry and he refused gift which offered by Aurangjeb and stormed out of the court. He was house arrested by Aurangjeb .Chhatrapati Shivaji made supreme plan and succeed to escape from Agra.

Ashtpradhans of Shivaji

It was dministrative and advisory council set up by the Indian Shivaji which contributed to his successful military attacks on the Muslim Mughal Empire and to the good government of the territory over which he established his rule.

  • Peshwa- Prime Minister
  • Amatya- Finance Department
  • Sachiv- Home Secretary
  • Sumant- Foreign Secretary
  • Nyayadheesh- Judicial Magistarate
  • Senapati- Commander In chief
  • Panditrao- relifious matters
  • Mantri- Day to day activities

Revenue Administration

T he assessment of revenue was made after a careful survey and classification of the lands according to their quality and yield. The share of the state was fixed at two-fifths of the gross produce. The cultivator was given the option of paying either in cash or kind.

Besides the land revenue, Shivaji had other sources of income, of which the most important were the chauth and sardeshmukhi. The chauth amounted to one-fourth of the standard revenue assessment of the place, while the sardeshmukhi was an additional levy of 10 per cent de­manded from areas outside his kingdom because he claimed to be the hereditary sardeshmukh (chief headman) of the entire Maratha country. These taxes were levied on those living outside Maratha kingdom as a safeguard (a kind of protection money) against Shivaji’s forces plundering or raiding their territory.

Marathas Consolidation and Northward Expansion

 

Regional imbalances and income inequalitiies in India: Steps taken by the Government to reduce it.

Regional imbalances and income inequalitiies in India: Steps taken by the Government to reduce it.

Regional imbalance is the disparity in economic and social development of two regions. One region/city/area is stronger than another region/city/area. Regions develop when investments are made to set up industries, service sectors, educational institutions, health care facilities etc.

Income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population.

The problem of regional disparities is a global phenomenon and, for India, up to a great extent, an inheritance from the colonial past. For example, in India, the historical factors have guided the development of the port towns of Bombay, Madras, Calcutta and these three cities have in turn worked as nuclei for the development of Maharashtra and Gujarat, and Tamil Nadu and West Bengal respectively which are at present the most industrially advanced states in India. On the other hand, the areas having natural advantages in the form of mineral resources, such as Bihar, Madhya Pradesh, Orissa and Rajasthan have lagged far behind in the process of economic development.

The most important indicator of regional imbalance and disparity among the different states of India is the difference in per capita state income figures. It is revealed from data in 2000-01, that the national average per capita income in India was Rs. 10,254. The states whose per capita income figures were higher than this national average include Punjab, Goa, Haryana, Maharashtra, Gujarat, Karnataka, Tamil Nadu and Kerala.

Among these nine states, Punjab, Haryana, Maharashtra and Gujarat have attained a high degree of agricultural as well as industrial development. Although West Bengal and Karnataka attained per capita income higher than the all India average in 1094-95 but it started trailing behind the all India average in recent years due to its poor rate of economic growth.

Various steps taken by Government to reduce it are:

1.Land Reforms and Redistribution of Ceiling Surplus Land:

In India, income inequalities are mostly resulted from the concentration of agricultural land in the hands of a few big landlords. The Zamindary system prevailing in our country has created a system of absentee landlords in the farm sector who appropriated a major portion of the agricultural produce by exploiting the farmers.

After independence, various legislative measures were introduced for abolishing the system of absentee landlords and other intermediaries and imposing ceiling on land holdings.

 

  1. Resource Transfer and Backwardness:

While making necessary award, the Finance Commission in India has been giving due weightage to backwardness of a state as an important criteria for resource transfer from the centre to the states.

Declaration of Backward states and special category states by the government to reduce the regional imbalances.

Under the present system of federal fiscal transfer, the transfer of resources from the Centre to States includes central assistance for State Plans, Non plan transfer as per the recommendations of the Finance Commission, ad-hoc transfer, allocation of fund for centrally sponsored schemes, allocation of both short-term and long-term credit from financial institutions etc.

The share of backward states along with special category states in the Plan outlay as well as in central assistance has been increasing steadily since the First Plan. Accordingly, the share of these states in the total plan outlay had increased from 46 per cent in the First Plan to 51 per cent in the Third Plan and then to 54 per cent in the Fifth Plan.

3. Special Area Development Programmes:

In order to develop hilly areas, tribal areas, drought- prone areas, specific plan schemes have been designed with full central assistance. Besides, other schemes of rural development formulated for the improvement of specific groups such as marginal farmers and agricultural laborers were implemented in the backward regions.

An area based approach of ‘Tribal Sub-Plans’ (TSPs) is now being implemented for the development of scheduled tribes located in the backward rural areas.

In this manner, different special schemes for particular target group located in the backward areas are being included for block level planning for attaining integrated rural development and considerable employment opportunities. All these programmes include SFDA, MFAL, Drought Prone Area Programme (DPAP), Crash Scheme for Rural Employment (CSRE) etc.

 

4. Incentives for Promoting Investment in Backward Regions:

In order to fight the problem of industrial backwardness of some backward regions and also to promote private investment in backward regions, various fiscal and other incentives have been provided by both the Centre, the States and other financial institution under public sector.

 5.Social Security Measures:

Social security measures for the workers are considered as an important step towards reduction of income inequalities. India has adopted some social security provisions for the workers engaged in the organized sector. Workmen’s Compensation Act for providing compensation in case of any injury to industrial workers, Maternity Benefit Act for women workers and Employees

Provident Fund Act for providing the benefit of provident fund to the workers and other employees engaged in organized industries.

6. Employment Programme and Wage Policies:

With the growing menace of unemployment problem in India, the Government of India has introduced some special employment programmes since the Fourth Plan onwards in order to provide some relief and scope for gainful employment to unemployed. These programmes include Crash Scheme for Rural Unemployment, the Drought Prone Areas Programme, Food for Work Programme, self-employment schemes for engineers, employment scheme for educated unemployment etc.

All these programmes were short lived and ad-hoc in nature. During the Sixth Plan period, the Integrated Rural Development Programme (IRDP) was initiated in 1978-79 and after that National Rural Employment Programme (NREP), Rural Landless Employment Guarantee Programme (RLEGP) were also introduced.

More radical socio­economic reforms seem to be in the offing in India. These are some of the measures that can be adopted to reduce inequalities. But inequalities can be reduced, they cannot be eliminated altogether. In fact, absolute equality is unattainable.

 

Additional Information

Recommendations

  1. A composite criteria for identifying backward areas (with the Block as a unit) based on indicators of human development including poverty, literacy and infant mortality rates, along with indices of social and economic infrastructure, should be developed by the Planning Commission for the 12th Five Year Plan.
  2. Union and State Governments should adopt a formula for Block-wise devolution of funds targeted at more backward areas.
  3. Governance needs to be particularly strengthened in more backward areas within a State. The role of ‘special purpose vehicles’ such as backward area development boards and authorities in reducing intra-State disparities needs to be reviewed. It is advisable to strengthen local governments and make them responsible and accountable.
  4. A system of rewarding States (including developed States) achieving significant reduction in intra-State disparities should be introduced.
  5. Additional funds need to be provided to build core infrastructure at the inter-district level in less developed States and backward regions in such States. The quantum of assistance should be made proportionate to the number of people living in such areas.
  6. The approach to all such funding should be outcome driven. The strategy should be to define acceptable minimum norms of human and infrastructure development that every block in the country should attain and funding should be driven by the consideration to achieve the norms so defined.

National and state SC/ST commission

National and state SC/ST commission

National SC commission

National Commission for Scheduled Castes (NCSC) is an Indian constitutional body established with a view to provide safeguards against the exploitation of Scheduled Castes to promote and protect their social, educational, economic and cultural interests, special provisions were made in the Constitution.

 

Functions

  • To investigate and monitor all matters relating to the safeguards provided for the Scheduled Castes under this Constitution or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards.
  • To inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Castes.
  • To participate and advise on the planning process of socio-economic development of the Scheduled Castes and to evaluate the progress of their development under the Union and any State.
  • To present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards.
  • To make in such reports recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the Scheduled Castes.
  • To discharge such other functions in relation to the protection, welfare and development and advancement of the Scheduled Castes as the President may, subject to the provisions of any law made by Parliament, by rule specify.

 

 

National ST commission

The National Commission for Scheduled Tribes (NCST) was established by amending Article 338 and inserting a new Article 338A in the Constitution through the Constitution (89th Amendment) Act, 2003. By this amendment, the erstwhile National Commission for Scheduled Castes and Scheduled Tribes was replaced by two separate Commissions namely-

  • the National Commission for Scheduled Castes (NCSC),
  • (ii) the National Commission for Scheduled Tribes (NCST) w.e.f. 19 February, 2004.

Powers of the Commission

For Investigation and Inquiry, the Commission is vested with powers of a civil court having authority to:

  • Summon and enforce attendance of any person and examine on oath.
  • Discovery & production of any documents.
  • Receive evidence on affidavits.
  • Requisition any public record or copy thereof from any court or office.
  • Issue Commissions for examination of witnesses and documents.
  • And Any matter which President, by rule, may determine.

Functions of the Commission

  • To investigate & Monitor matters relating to Safeguards provided for STs under the Constitution or under other laws or under Govt. Order, to evaluate the working of such Safeguards.
  • To inquire into specific complaints relating to Rights & Safeguards of STs.
  • To participate and advise in the Planning Process relating to Socio-economic development of STs, and to evaluate the progress of their development under the Union and any State.
  • To submit report to the President annually and at such other times as the Commission may  deem  fit, upon/ working of Safeguards, Measures required for effective implementation of Programmers/ Schemes relating to Welfare and Socio-economic development of STs.
  • To discharge such other functions in relation to STs as the President may, subject to the provisions of any law made by Parliament, by rule specify.
  • The Commission would also discharge the following other functions in relation to the protection, welfare and development & advancement of the Scheduled Tribes, namely:
  • Measures that need to be taken over conferring ownership rights in respect of minor forest produce to the Scheduled Tribes living in forest areas.
  • Measures to be taken to safeguard rights to the Tribal Communities over mineral resources, water resources etc. as per law.
  • Measures to be taken for the development of tribals and to work for move viable livelihood strategies.
  • Measures to be taken to improve the efficacy of relief and rehabilitation measures for tribal groups displaced by development projects.
  • Measures to be taken to prevent alienation of tribal people from land and to effectively rehabilitate such people in whose case alienation has already taken place.
  • Measures to be taken to elicit maximum cooperation and involvement of Tribal Communities for protecting forests and undertaking social afforestation.

State level SC/ST commission

Different states has founded SC/ST commissions to address the issues related to both the casts.

Role of State level commission:

  • The study the existing state of various provisions in the Constitutions and by the State Government for the Scheduled Castes and Tribes and suggest measures to fulfill the same.
  • To investigate various grievances raised by members from Scheduled Castes and Tribes.
  • To participate in the process of creation of schemes related to the economic upliftment of Scheduled Castes and Tribes and provide advice to the State Government regarding the same.
  • To take a review of matters registered under the Scheduled Castes / Tribes Atrocities Act 1989 and Protection of Civil Rights Act 1955.
  • To take review of the financial assistance to be given to the affected persons under the above mentioned acts. To accept and investigate grievances of SC/ST employees related to service.
  • To take a review of policies related to Scheduled Castes / Tribes. To provide advice to the State Government for rolling out beneficial schemes for Scheduled Castes and Tribes.

FAMOUS SAYING

I wish for a peaceful term of India. I cannot forget that in the sky of India ,   Lord Canning
serene as it is, a small cloud may arise ………..threaten to burst & overwhelm.    
‘a battle of blacks against the whites’ (on 1857 revolt)   J.W. Kaye
The war which began for religion ended up as a war for independence   Surendranath Sen
‘India has lost her most eminent son’ (on death of Keshav Chandr Sen)   Max Mueller
‘If somebody wants to understand India he should study Vivekananda’   Rabindranath Tagore
So long as millions live in hunger & ignorance I hold every man a traitor   Swami Vivekananda
The objective of founding the congress was to save British ruler from danger   Lala Lajpat Rai
It is my firm belief that the congress….I should help it in its peaceful demise   Lord Curzon
I am very happy that the congress is continuously going downhill   Lord Elgin
Out life & religion are useless without the attainment of Swaraj   Lokmanya Tilak
The long night is going to end now…..most powerful goddess has arisen   Vivekananda
When in hundred years lip agitataion & paper agitation failed, in these six   Lala Lajpat Rai
months right work has succeeded (on Bengal Partition Movement)    
A charter of slavery (on govt of India act 1935)   Jawahar Nehru
Thoroughly rotten, fundamentally bad & totally unacceptable (Act 1935)   Mohammad Jinnah
The choice today is accepting the statement of June 3 or commiting suicide (on   Govind Vallabh Pant
Mountbatten plan of India’s partition)    
We would not have had one Pakistan but several (On partition plan acceptance)   Sardar Vallabh Patel