Union Judiciary : The Supreme Court ; its role and powers

The Supreme Court is the highest court of The Indian Republic.  Judiciary, the third organ of the government, has an important role to play in the governance. It settles the disputes, interprets laws, protects fundamental rights and acts as guardian of the Constitution. India has a single unified and integrated judicial system and that the Supreme Court is the highest court in India.

The  promulgation  of  Regulating  Act  of  1773  by  the  King  of  England paved the way for establishment of the Supreme Court of Judicature at Calcutta. The Letters of Patent was issued  on 26 March  1774 to establish  the  Supreme Court  of  Judicature  at  Calcutta,  as  a  Court  of  Record,  with  full  power  & authority  to  hear  and  Supreme_Court_of_Indiadetermine  all  complaints  for  any  crimes  and  also  to entertain, hear and determine any suits or actions against any of His Majesty’s subjects  in  Bengal,  Bihar  and  Orissa.  The  Supreme  Courts  at  Madras  and Bombay was established by King George – III on 26 December 1800 and on 8 December 1823 respectively.

Federal Court of India was established under the Government of India Act 1935. The Federal Court  had  jurisdiction  to  solve  disputes  between  provinces  and  federal  states and  hear  appeal  against  Judgements  from  High  Courts.

After  India  attained independence in 1947, the Constitution of India came into being on 26 January 1950. The Supreme Court of India also came into existence and its first sitting was held on 28 January 1950.

The Chief Justice and other judges of the Supreme Court are appointed by the President of India. While appointing the Chief Justice, the President is constitutionally required to consult such other judges of the Supreme Court as he deems proper, but outgoing Chief Justice is always consulted. Normally, the senior most judge of the Supreme Court is appointed as the Chief Justice of India, although there is no constitutional requirement to do so. While appointing other judges, the President is bound to consult the Chief Justice and other senior judges, if he deems proper.

The original Constitution of 1950 envisaged a Supreme Court with a Chief Justice and 7 puisne Judges – leaving it to Parliament to increase this number.

According to the Constitution of India, the role of the Supreme Court is that of a federal court, guardian of the Constitution and the highest court of appeal. Articles 124 to 147 of the Constitution of India lay down the composition and jurisdiction of the Supreme Court of India. Primarily, it is an appellate court which takes up appeals against judgments of the High Courts of the states and territories.

The Supreme Court is a Court of Record. It has two implications. All its decisions and judgments are cited as precedents in all courts of the country. They have the force of law and are binding on all lower Courts, and indeed the High Courts. As a Court of Record, the Supreme Court can even send a person to jail who may have committed contempt of the court.

As a Federal Court: Supreme Court is the Federal Court of India, India being a federation; powers are divided between the Union and State governments. The Supreme Court of India is the final authority to see to it that the division of powers as specified in the constitution is obeyed by both the Union and the State governments. So, Article 131 of the Indian Constitution vests the Supreme Court with original and exclusive jurisdiction to determine the justiciable disputes between the Union and the States or between the States.

Interpreter of the Constitution and Law: The responsibility of interpreting the constitution rests on the Supreme Court. The interpretation of the constitution which the Supreme Court shall make must be accepted by all. It interprets the constitution and preserves it. Where a case involves a substantial question of law as to the interpretation of the constitution either certified by the High Court or being satisfied by the Supreme Court itself, an appeal shall lie to the Supreme Court for interpretation of the question of law raised.

As a Court of Appeal: The Supreme Court is the highest court of appeal from all courts in the territory of India. Appeal lies to the Supreme Court of the cases involving interpretation of the constitution. Appeals in respect of civil and criminal cases also lie to the Supreme Court irrespective of any constitutional question.

Advisory Role: The Supreme Court has an advisory jurisdiction in offering its opinion an any question of law or fact of public importance as may be referred to it for consideration by the President.

Guardian of the Constitution: The Supreme Court of India is the guardian of the constitution. There are two points of significance of the Supreme Court’s rule as the protector and guardian of the constitution.

  • First, as the highest Federal Court, it is within the power and authority of the Supreme Court to settle any dispute regarding division of powers between the Union and the States.
  • Secondly, it is in the Supreme Court’s authority to safeguard the fundamental rights of the citizens.

In order to discharge these two functions it is sometimes necessary for the Supreme Court to examine or review the legality of the laws enacted by both the Union and the State Governments. This is known as the power of Judicial Review. Indian Supreme Court enjoys limited power of Judicial Review.

Writ Jurisdictions: Under Article 32 of the constitution of Supreme Court can issue Writs for the enforcement of fundamental rights. These writs are in the nature of Habeas Corpus, Mandamas, Prohibition, and Quo-warranto Certiorari.

Power of Judicial Review and Supreme Court: The power of the Judiciary to examine the validity of such law is called Judicial Review. The Supreme Court of India enjoys limited power of Judicial Review. Judicial Review empowers the courts to invalidate laws passed by the legislature. Supreme Court of India also enjoys the power of Judicial Review. If it occurs to the Supreme Court that any law enacted by Parliament or by a State Legislature curbs or threatens to curb the citizen’s fundamental rights, the Supreme Court may declare that law as unlawful or unconstitutional.

Arunachal Pradesh Schemes and Projects

Arunachal Pradesh Schemes and Projects

Chief Minister’s Adarsh Gram Yoiana 2017

  • The Government of Arunachal Pradesh has decided to implement the Ghief Minister’s Adarsh Gram Yojana 2017 fot creating model villages in the state.

OBJECTIVE

  • The Objective of the scheme is to develop 60 Model Villages in Arunachal Pradesh, which are equipped with all basic amenities such as 24×7 Piped Drinking water,
  • Electricity at household level, primary school, primary health infrastructure, internal roads, avenues of employment generataon and are open defecation free.

SALIENT FEATURES

  1. A total of 60 model villages (l village per Legislative Assembly Constituency) will be developed initially within a period of 2 years.
  2. Selection of villages will be done by a committee headed by Deputy Commissioner along with HOO’s of respective districts and the concerned MLAs.
  3. A total outlay of Rs 1.5 Crores per village has been provided.
  4. Block Development Office will be the nodal implementing Agency.
  5. In order to generate rural employment, all works that do not require specific skills will be done by the villagers who are willing to work and are above 18 years of age. Wages will be paid as per latest MGNREGA guidelines and works will be dovetailed with MGNREGA scheme of Government of lndia.
  6. A shelf of works for the village will be recommended and approved by Gram Sabha and submitted to the BDO. This would be forwarded to the office of the Deputy Commissioner for Administrative and Technical Approval and Sanctions.
  7. All account and records relating to the scheme would be available for public scrutiny.
  8. There would be an effort on convergence with other CSS / State Plan Schemes including MLALAD for optimal results.

 

Chief Minister’s District Innovation and Challenge Fund

  • The Government of Arunachal Pradesh has decided to implement the Scheme of “Chief Minister’s District Innovation and Challenge Fund” to ensure that public investment in the district is responsive to local requirements of the districts.
  • The following would be the key objectives of the scheme:
    1. To fill in vital gaps in public infrastructure available at the district level which is not being fully utilized in absence of relatively small investment e.g. Gove:nment hospital witfr non-functional diagnostic equipment.
    2. Catalyze opportunities for Skill Development, Sustainable Livelihood and entrepreneurship.
    3. Schemes which have positive impacts of eFficient service delivery system.
    4. Schemes which are oriented towards social sectors – Health and Education.
    5. Schemes which are targeted on welfare of marginalized section of the society. Sub:- Chief Minister’s District Innovation and Challenqe Fund.
    6. Development of Eco-tourism

Chief Minister’s Krishi Rinn Yoiona

  • The Government of Arunachal Pradesh has decided to provide a facility of Zero interest crop loan to farmers of the State to enable them easy access to formal credit through banking channels.
  • The Government of Arunachal Pradesh has decided to launch “Chief Minister’s Krishi Rinn Yojana” which will have the following features:-
  1. The Government of Arunachal Pradesh would provide interest subvention oi 4o/o on crop loan / Kisan Credit Card limit up to Rs.3.00 lakhs sanctioned by all banks to all farmers of the State during the current financial year. This interest subvention will be over and above the subvention given by Govt of lndia to banks and the farmers as per policy circular issued by RBI/NABARD
  2. The farmers would also get interest relief @ 30k per annum who promptly repay their short term production credit (crop loan) within one year of disbursement / drawal of such loan. ln effect, farmers who take loan of upto Rs 3.00 lakhs and make timely repayments will get access to zero interest credit facility.
  3. NABARD will act as channel partner for reimbursement to banks against interest subvention amount claims in prescribed format, for which a circular will be issued to all the banks separately.
  4. The State Government will be issuing a notification wherein a certificate of area and crop being cultivated issued by Circle Officer which will be accepted as valid documents by bank for issuance of Kisan Credit Card to the farmers.
  5. This scheme will not be available for production of perennial food crop, plantation crop.
  6. Banks and district will give adequate publicity to the above scheme so that th6 iarmers can avail the benefits.
  7. Beneflt under scheme will be extended to farmers availing KCC / crop production loan from commercial banks, APRB and APSCAB Ltd at the same terms and conditions prescribed by RBI / NABARD. Banks will make available the KCC loan application formats being used at present to all the farmers willing to apply for KCC in short term crop loan.
  8. The State Government has set a target of 7500 farmers to be covered under crop loan under Chief Minister’s Krishi Rinn Yojana in this financial year. The districl wise/bank wise target will be circulated separately to all DCs and concerned banks. These targets will be reviewed in the DLCC meetings and SLBC meetings. Any bank which fails to meet the stipulated target would be reported to RBI and Department of Financial Services.
  9. The Circle Officers will function as Financial Extension Officers of the State Government and also help the banks in timely recovery of crop loans.

Deen Dayal Upadhyaya Bunkar Yojana

The Government of Arunachal Pradesh has decided to launch the Deen Dayal Upadhyaya Bunkar Yojana to encourage the women weavers to access affordable credit from banks for working capital requirements.Arunachal Pradesh Schemes and Projects

  1. It has been decided to introduce 7% interest subvention on short term credit / Cash Credit limit / working capital limit / Weavers Credit Card / Swarojgar Credit card availed by the women weavers of the State. The Scheme will be applicable for loans availed from Commercial Banks, Regional Rural Bank on or after 01 .04.2017 and disbursed during current financial year.
  2. lnterest subvention will be qalculated on the short term loan amount from the date of its disbursement / drawl upto the date of actual repayment of the loan by the weavers or upto the due date of the loans fixed by the banks, whichever is earlier, subject to a maximum period of one year.
  3. The benefit of the Scheme will not be applicable to term loans and other loans extended by the Commercial Banks, Regional Rural Banks and Cooperative Banks to weaVers.
  4. The loan application will be forwarded through Circle Officer who will certify that the applicant is in p6ssession of a working loom(s).
  5. The Scheme will cover all categories of women weavers, irrespective of unit size /no. of looms and will be covered under the Pradhan Mantri Mudra Yojana.
  6. Only individual women weaVer or group of woman weavers will be eligible under the Scheme. Cbmpanies and partnership firms will not be eligible.
  7. The interest subvention will be applicable for working capital loan upto Rs. 2.00 lakh irrespective of the quantum of loan extended to the weaver by the bank.
  8. A target of 3000 women weavers has been fixed for this financial year and the bank wise / district wise target will be circulated in due course. Banks who default in targets would be reported to RBl.
  9. NABARD will act as channel partner for reimbursement of interest subvention to banks which have to be claimed by the banks in the prescribed format. NABARD will issue detailed circulars to the banks in this regard.
  10. The District Administration and the bank will make all efforts for wide publicity of the scheme and the Circle Officers shall educate women self-help groups and individual weavers for timely loan repayment.

Deen Dayal Upadhyaya Swalamban Yoiona

The Government of Arunachal Pradesh has decided to launch the Deen Dayal Upadhyaya Swalamban Yojana to encourage unemployed youth to gain access to low cost capital for entrepreneurship.

  1. Under this scheme, a provision of 30% back ended capital investment subsidy has been made for entrepreneurs, who wish to set up small and medium enterprises with a loan from Rs. 10.00 lakhs upto Rs.1 .00 crore excluding the cost of land and building.
  2. Women entrepreneurs will be additionally eligible for 5% interest subsidy annually provided the entrepreneurs does not become Non-Performing Asset (NPA).
  3. Entrepreneurs will be required to be registered under Stand Up lndia Scheme. The sectors are covered under this scheme :-.
  1. Value addition in agriculture, horticulture and allied sectors including packaging, cold chain, cold storage, milk processing, food processing etc.
  2. Ecotourism including home stays and tour operators.
  3. Traditional textile weaving for modernisation of traditional looms and ‘ purchase of new looms to start a new weaving unit.
  4. (Small scale manufacturing units to be set up by qualified graduates.
    • Entrepreneurs would be required to contribute at least 10% of project cost as their contribution. Preference will be given to those who contribute a greater proportion.

Government sanctions a major power transmission scheme for Arunachal Pradesh & Sikkim to bring them fully into the grid

  • The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, approved the Comprehensive Scheme for Strengthening of Transmission & Distribution (T&D) Systems (CSST&DS) in Arunachal Pradesh and Sikkim at an estimated cost of Rs.4754.42 crore.
  • The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP).
  • As the intra-state T&D systems in the North-Eastern states have remained very weak, the Central Electricity Authority (CEA) developed the CSST&DS for the North East Region (NER) in consultation with the Power Grid Corporation of the India Limited (PGCIL) and State Governments concerned.
  • Presently, only 5 out of 20 districts of Arunachal Pradesh are connected to transmission network at 132/220 KV.
  • The 33 KV system is the backbone of power distribution system in the State.
  • Due to low population density spread over its geographical area of 84,000 sq.km, power demand in Arunachal Pradesh is scattered over large distances. Hence it is necessary to provide 132 KV connectivity in the state for proper voltage management and lower distribution losses.
  • Similarly, the distribution system in Sikkim mainly relies on 66 KV network, which needs to be strengthened substantially.
  • In view of this, it is proposed to take up projects for strengthening intra-state T&D systems of the two States through 31 new 132 KV sub-stations, 14 substations of 66/11 KV, 2035 km of transmission lines (132 & 220 KV) and 2204 km of transmission lines (33 & 66 KV).
  • The project would be implemented through PGCIL with its consultancy fee of 1.2 percent of the execution cost.
  • After commissioning, the projects would be owned and maintained by the State Governments.
  • Initially the project was proposed to be funded under Non-Lapsable Central Pool of Resource (NLCPR – Central) of the Ministry of Development of North Eastern Region (DONER).
  • But DONER has conveyed its inability due to budgetary constraints.
  • Hence it is proposed to take it up through a new Central Sector Scheme under the MoP’s budget.
  • The project is to be implemented within 48 months from the first fund release to PGCIL

50 Biotech Laboratories to be established in Senior Secondary Schools of Arunachal Pradesh

  • Department of Biotechnology, Government of India, will set up 50 Biotech Laboratories in Senior Secondary Schools of Arunachal Pradesh under the scheme Biotech Labs in Senior Secondary Schools (BLISS) to encourage young dynamic students.
  • 75 to 100 crores have been earmarked for the implementing the projects.
  • This project will be jointly funded by Department of Bio-Technology and Rural Technology Centre of Department of Science and Technology, Government of India.
  • A State Level Biotech Hub will also be set up in the State for conducting high-end researches and training North Eastern Region Researchers and students, to create and train employable manpower.
  • For protection of indigenous traditional knowledge of the State, an Intellectual Property(IP) Cell will be set up in the State Science and Technology Council.
  • Five centres of excellence will also be established in different areas of Biotechnology in the State.
  • Setting up biotechnology labs in the schools will directly benefit more than ten thousand students and teachers of the state towards promoting education in biotechnology and attracting billion young students with multidisciplinary research areas.
  • The outreach programme will immensely help in generating awareness and enhancing literacy and promoting public understanding of biotechnology in the state.

 

India’s longest bridge brings Assam closer to Arunachal Pradesh

  • The Prime Minister, Shri Narendra Modi, inaugurated India’s longest bridge – the 9.15 km long Dhola-Sadiya bridge over the River Brahmaputra, in Assam.
  • The bridge will ensure 24X7 connectivity between upper Assam and Eastern part of Arunachal Pradesh, marking a major transformation from the ferry-based, day-only connectivity that collapsed during floods.
  • It will also reduce the distance and travel time between the two states.
  • The distance between Rupai on NH- 37 in Assam to Meka/Roing on NH-52 in Arunachal Pradesh will be cut down by 165 KM. The travel time between the two places will come down from the current six hours to just one hour – a total five hour reduction.
  • Dhola-Sadiya bridge opens the door for economic development in the North East on a big scale.

 

Civil Rebellions and Tribal Uprisings

  • The backbone of the rebellions, their mass base and striking power came from the rack-rented peasants, ruined artisans and demobilized soldiers

CAUSES

  • The major cause of the civil rebellions was the rapid changes the British introduced in the economy, administration and land revenue system.
  • The revenues were enhanced by increasing taxes.
  • Thousands of zamindars and poligars lost control over their land and its revenue either due to the extinction of their rights by the colonial state or by the forced sale of their rights over land because of their inability to meet the exorbitant land revenue demanded.
  • The economic decline of the peasantry was reflected in twelve major and numerous minor famines from 1770 to 1857
  • The new courts and legal system gave a further fillip to the dispossessors of land and encouraged the rich to oppress the poor.
  • The police looted, oppressed and tortured the common people at will.
  • The ruin of Indian handicraft industries pauperized millions of artisans
  • The scholarly and priestly classes were also active in inciting hatred and rebellion against foreign rule.
  • Very foreign character of the British rule

REBELLIONS

  • From 1763 to 1856, there were more than forty major rebellions apart from hundreds of minor ones.
  • Sanyasi Rebellion: (1763-1800)
  • Chuar uprising (1766-1772 & 1795-1816); Rangpur and Dinajpur (1783); Bishnupur and Birbhum (1799); Orissa zamindars (1804-17) and Sambalpur (1827-40) and many others

WHY FAILED?

  • These rebellions were local in their spread and were isolated from each other.
  • They were the result of local causes and grievances, and were also localized in their effects.
  • Socially, economically and politically, the semi-feudal leaders of these rebellions were backward looking and traditional in outlook.
  • The suppression of the civil rebellions was a major reason why the revolt of 1857 did not spread to South India and most of Eastern and Western India.

TRIBAL  UPRISINGS: CAUSES

  • The colonial administrators ended their relative isolation and brought them fully within the ambit of colonialism.
  • Introduced new system of land revenue and taxation of tribal products
  • Influx of Christian missionaries into the tribal areas
  • They could no longer practice shifting agriculture
  • Oppression and extortion by police officials
  • The complete disruption of the old agrarian order of the tribal communities provided the common factor for all the tribal uprisings

UPRISINGS

  • Santhals
  • Kols of Chhotanagpur (1820-37)
  • Birsa Munda (1899-1900)

 

SECOND GREEN REVOLUTION

SECOND GREEN REVOLUTION

The main objectives of the second Green Revolution are:

(i) To raise agricultural productivity to promote food security

(ii) More emphasis on bio-technology

(iii) To promote sustainable agriculture

(iv) To become self-sufficient in staple food, pulses, oil seeds, and industrial raw material

(v) To increase the per capita income of the farmers and to raise their standard of living.

 

Arunachal Pradesh:  Migration

 

Migration in Arunachal Pradesh can be divided in two categories

  1. Migration within the state and
  2. Migration outside the state.

 

  1. Migration within the state:

It is mainly concerned with migration of people from rural to urban in search of better opportunity. Migration within the state has increased significantly over some decades. This is due to the development of urban centers and ecotourism and refreshing activities in the state.

  1. Migration outside the state:

The major issue we usually heard from migration related perspective is the Migration of Chakma tribe from Bangladesh to nearby states of Arunachal Pradesh and Assam.

Chakmas are now settled in Namsai, Papumpare and Changlang districts while Hajongs are settled only in Changlang district of the state.

The total population of Chakmas in India according to the 2011 census was 2,26,860 persons, with 96,972 persons in Mizoram, 79,813 in Tripura, 2,032 in Assam, 466 in West Bengal, 106 in Meghalaya and 47,471 in Arunachal Pradesh.

Although Chakma do not schedule tribe status in Arunachal Pradesh then also they come and settle in Arunachal Pradesh. This is because increasing tea industry and infrastructure projects. The Chakmas/Hajongshave been seen as a threat simply because they migrated in a group even if other general populations already constitute a far more serious threat, if any, to indigenous population of the state. The Chakmas/Hajongs shared excellent relations with the neighbours.

Chakmas are recognised as Scheduled Tribes in Assam, West Bengal, Meghalaya, Tripura and Mizoram.

The report said the population of Chakmas and Hajongs was 14,888 during 1964-69 which has increased to 47,471 till 2011, which means a 218 per cent increase in 47 years. In comparison, the population of other non-tribal communities such as Adivasis, Assamese, Nepalese, Muslims, Marwaris and Biharis has increased in the state by 955 per cent during the same period.

2/3rd people of Arunachal Pradesh are the people who are living here from centuries. Rest 1/3rdpopulation are the outsider.

This clearly shows the migration is prominentin Arunachal Pradesh.

 

Disadvantages of Migration in Arunachal Pradesh:

  1. There is a danger on local tradition and culture
  2. Lack of harmony and violence

Advantage of Migration in Arunachal Pradesh:

  1. Availability of cheap labor
  2. Mutual Understanding

The advent of the Europeans in India. Establishment and expansion of British rule in India from 1757 to 1856

Indian trade links with Europe started in through sea route only after the arrival of Vasco da Gama in Calicut, India on May 20, 1498. The Portuguese had traded in Goa as early as 1510, and later founded three other colonies on the west coast in Diu, Bassein, and Mangalore. In 1601 the East India Company was chartered, and the English began their first inroads into the Indian Ocean. At first they were little interested in India, but rather, like the Portuguese and Dutch before them, with the Spice Islands. But the English were unable to dislodge the Dutch from Spice Islands. In 1610, the British chased away a Portuguese naval squadron, and the East India Company created its own outpost at Surat.This small outpost marked the beginning of a remarkable presence that would last over 300 years and eventually dominate the entire subcontinent. In 1612 British established a trading post in Gujarat. As a result of English disappointments with dislodging the Dutch from the Spice Islands, they turned instead to India.

By the beginning of the eighteenth century only two European trading companies of the British and the French were left in India competing for the Indian resources. The Anglo- French rivalry, taking the form of three Carnatic Wars constituted landmarks in the history of British conquest of south India in the eighteenth century. In order to establish their supremacy, it was necessary for the English East India Company to eliminate the French from this region. As a result of Seven Years’ War (1756–1763) in Europe, the French and English settle- ments in India also became involved in open hostilities. In the third Carnatic war, the British East India Company defeated the French forces at the battle of Wandiwash ending almost a century of conflict over supremacy in India. This battle gave the British trading company a far superior position in India compared to the other Europeans.

The French were defeated by Sir Eyre Coote at Wandiwash in January, 1760, and Pondicherry capitulated a year later. The work of Dupleix and Bussy in the South was thus destroyed in 1760–1761; the French possessions in India were, however, restored by the treaty of Paris (1763). This conflict was resolved in the English East India Company’s favour because of its strong navy in India, its progressively increasing military strength and good leadership, the support they received from the Government in England, and the larger resources at its command in Bengal. A part of the fallout of the events in the Carnatic cycle of wars that the weakness of the Indian regional powers (in particular their inability to make naval interventions and the ineffectiveness of large armies of some of their powers against smaller European forces) became manifest and this had grave implications in the political history of the rest of the eighteenth century.

The ‘First Phase’ of British Colonism is generally dated from 1757, when the British East India Company acquired the rights to collect revenue from its territories in the eastern and southern parts of the subcontinent, to 1813, when the Company’s monopoly over trade with India came to an end.

The ‘Second Phase’ is generally seen to have begun with the charter Act of 1813, when the Company lost its monopoly trading rights in India, and ended in 1858, when the British crown took over the direct control and administration of all British territory in India.

Dual or Double Government: This system was introduced in Bengal after the battle of Buxar. As the Diwan of Bengal the Company directly collected its revenue, while the nizamat or the Police and Judicial powers remained with the Nawab.
Subsidiary Alliance system: The Subsidiary Alliance System was used by lord Wellesley to bring the Indian states within the boundary of the British political power. Under this doctrine, Indian rulers under British protection suspended their native armies, instead maintaining British troops within their states. They surrendered control of their foreign affairs to the British. In return, the East India Company would protect them from the attacks of their rivals.
Doctrine of Lapse: It was an annexation policy by the British East India Com- pany, introduced by lord Dalhousie Governor -general of India. Under the doc- trine princely territory under the direct rule of the East India Company would automatically be annexed if the ruler was either incompetent or died without a direct heir.
Charter Acts: The Charter Acts were passed by the British Parliament to govern the activities of the East India Company, endowed it with enormous Commercial privileges and granted them the powers to rule India up to 1858. The Charter Acts issued enabled the East India Company, commercial privileges in several series, for twenty years each. The first Charter Act was granted in 1793, granting the company provision of 20 years. Later the Charter Act was renewed in the year 1813, 1833 and 1853 respectively.

War Year Treaty Gov General Battles et al
Anglo Marathas
First 1775-82 Began: Treaty of Surat

End: Treaty of Salbai

Warren Hastings Battle of Wadgaon
Second 1803-05 Began: treaty of Bassein Lord Wellesley Battle of Assaye
Third 1816-19 Treaty of Gwalior Marquess  of Hastings Battle of Pindari

End of Peshwa rule

Anglo French
First 1746-48 Treaty of Aix-la-Chepelle Reason: Austrian succession in Europe 1746: Battle of Adyar/San Thome
Second 1749-54 War of succession between Nasir Jung (English) and Muzaffar Jung (French) after death of Nizam 1749: Battle of Ambur

Rise of Robert Clive

Third 1758-63 Treaty of Paris Reason: 7 years war in Europe 1760: Battle of Wandiwash (French defeat)
Anglo Mysore
First 1766-69
Second 1780-1784 Treaty of Mangalore Warren Hastings After death of Hyder Ali in 1782 Tipu led the war
Third 1789-92 Treaty of Seringapatnam Cornwallis Defeat of Tipu
Fourth 1799 Wellesley Battle of Seringapatnam. Death of Tipu.
Anglo Sikh War
First 1845-46 Treaty of Lahore Hardinge
Second 1848-49 Dalhousie Final Subjugation of the Sikhs

1806 – Treaty of Raighat – Peace with Holkars

WHITE REVOLUTION IN INDIA

WHITE REVOLUTION IN INDIA

 

  • The package programme adopted to increase the production of milk is known as White Revolution in India.
  • The White Revolution in India occurred in 1970, when the National Dairy Development Board (NDDB) was established to organize the dairy development through the co-operative societies.
  • Varghese Kuerin was the father of White Revolution in India.
  • The dairy development programme through co-operative societies was first established in the state of Gujarat.
  • The co-operative societies were most successful in the Anand District of Gujarat. The co-operative societies are owned and managed by the milk producers.
  • These co-operatives apart from financial help also provide consultancy.
  • The increase in milk production has also been termed as Operation Flood.

Objectives

  1. The procurement, transportation, storage of milk at the chilling plants.
  2. Provide cattle feed.
  3. Production of wide varieties of milk products and their marketing management.
  4. Provide superior breeds of cattle (cows and buffaloes), health service, veterinary treatment, and artificial insemination facilities.
  5. Provide extension service.

 

Achievements

  • Some of the important achievements of the White Revolution are as under:
  1. The White Revolution made a sound impact on rural masses and encouraged them to take up dairying as a subsidiary occupation.
  2. India has become the leading producer of milk in the world.
  3. The import of milk and milk production has been reduced substantially.
  4. The small and marginal farmers and the landless labourers have been especially benefitted from the White Revolution.
  5. To ensure the success of Operation Flood Programme, research centres have been set up at Anand, Mehsana, and Palanpur (Banaskantha). Moreover, three regional centres are functioning at Siliguri, Jalandhar, and Erode. Presently, there are metro dairies in 10 metropolitan cities of the country, beside 40 plants with capacity to handle more than one lakh litres of milk.
  6. Livestock Insurance Scheme was approved in February 2006 and in 2006-07 on a pilot basis in 100 selected districts across the country. The scheme aims at protecting the farmers against losses due to untimely 2. In most of the villages the cattle are kept under unhygienic conditions.death of animals.
  7. To improve the quality of livestock, extensive cross breeding has been launched.
  8. For ensuring the maintenance of disease-free status, major health schemes have been initiated.
  9. The government implemented livestock insurance on pilot basis in 2005-06.

 

Problems and Prospects

  1. Collection of milk from the remote areas is expensive, time consuming, and not viable economically.
  2. In most of the villages the cattle are kept under unhygienic conditions.
  3. There are inadequate marketing facilities. The marketing infrastructure needs much improvement.
  4. The breeds of cattle is generally inferior.
  5. The extension service programme is not effective.

 

ARUNACHAL PRADESH : AGRICULTURE

 

Agriculture is the main source of earning of Arunachal Pradesh. The state gets as much as 500 centimeters of rainfall and this accounts for the large number of rivers and lakes in the region apart from extensive forests which have induced the people to adopt the ‘Jhum’ form of cultivation in which a select area of the forests is burnt and used for cultivation. In the following years the farmers shift to another forest plot which leads to the cultivation being called shifting cultivation. About 53% of the total cultivated area is under Jhum and the rest under permanent cultivation. Due to good rain rice the major crop. Other important crops are maize, millet, wheat, pulses, potato, oil seeds and sugarcane. Ecological conditions of Arunachal Pradesh are congenial for the growth of horticulture. Besides this there are plenty of oranges, guavas, pineapples, lemon, litchi, papaya, and temperature fruits like apple, plum, pear, peach, cherries, walnut, almonds are grown.  Various steps were taken to diversify the agriculture economy by encouraging the cultivation of cash crops like potatoes, and horticulture crops like apple, oranges, guavas, and pineapples, etc. Many important projects such as Regional Seed Foundation Potato Farm at Tawang, Regional Apple Nursery at Dirang, and State Horticulture Farm at Sheragaon were set up with the help of North-Eastern Council to boost agro-horticulture activities. Apart from these Gramsevak Training Centre and farmers Training Centre located at various parts of the state impart training in scientific methods of rural development and agriculture respectively. In this way pre-agricultural level of technology in 1950 is now firmly established in the world of hybrid varieties, genes and biotechnology.

MAIN CROPS IN ARUNACHAL PRADESH : Major variants of cereals produced in Arunachal Pradesh are Paddy, maze, millet. The major kinds of fruits produced are almonds, walnuts, papayas, peaches, kiwis, lemons, oranges, pineapple, litchi, banana etc. The major types of vegetables produced in Arunachal Pradesh are Cucumbers, brinjals, pumpkin, sweet potato, ginger, chillies, spices like cardamom, cinnamon and cloves.

 

CHALLENGES OF AGRICULTURE IN ARUNACHAL PRADESH

(1 ) Shifting Cultivation ( jhum ) : Shifting cultivation (jhum) is an age-old practice popularly adopted by the hill tribes. In Arunachal pradesh aprrox. 50 % agriculture is under the jhum cultivation . This practice has numerous harmful effects on soil and climate. It ultimately affects crop production and economy of hill people. Moreover, shifting cultivation has other ill effects such as loss of forest cover, loss of wild habitat of many species of plants and animals, loss of bio- diversity, soil erosion, enhanced run-off, depleting ground water resources, siltation of water harvesting structures, drying up o f natural streams, non rainy season, non availability of fuel wood and fodder etc.

(2) Infrastructure : An effective infrastructural facility is necessary for increasing agricultural productivity. For the modernization of agriculture through technological innovations, the most essential components of infrastructure are rural electrification, transport and communication, marketing facility and education. Rural electrification is the most important infrastructure for the development of agriculture. But the progress of rural electrification in Arunachal pradesh has been extremely meager. A bulk of the villages in the hill districts are not connected with electrification.

Agricultural productivity is determined to a great extent by the proximity of a market centre to the farms and cheaper and easier transport. The farm output in a remote place may be abundantly produced. But the surplus output, if it cannot be transported easily to the markets has little value in monetary terms, and therefore, the agriculture of that place is less efficient than that in another place situated near a market centre. In a hilly region like Arunachal pradesh connectivity is a big challenge .

(3) Irrigation : Inadequate irrigation facility is one of the important reasons for low agricultural production in the state of Arunachal pradesh. Though excessive rainfall occasionally causes devastating floods in the state, co-existence of both flood and drought is not rare.

(4) Fertilizers : Irrigation and fertilizers are intimately related. Fertilizers are unusable without assured supply of sufficient water. In the same way, without the use of fertilizers, irrigation remains less effective. The use of HYY seeds also requires application of suitable doses of fertilizers. In fact, irrigation effects all the component elements of agricultural output growth. The hill zone of Assam has a very low level of fertilizer consumption.

(5) Agricultural Credit : As agriculture lies at the mercy of monsoon with uncertainty of production prevailing at all times, and as the bank’s traditional credit principles and rules are different for the illiterate farmers to understand and follow, a psychological barrier exists between the banks and the cultivators.

NEW AGRICULTURE STRATEGY

Top priority to be accorded on increasing farmers income:     The new policy would accord top priority to increasing the incomes of farmer’s. This is necessary in view of the topographic disadvantages, communication bottleneck that hindetrs other income generating activities.  The Policy, therefore, emphasizes all income generating activities like Cash crop, Floriculture, Fruit culture, Fish and Pig rearing, Agro-processing and so on along with all other activities that are considered necessary for the purpose.

Addressing problems related to Shifting Cultivation : Special emphasis to be given on shifting cultivation, ensuring better land management, introducing improved cultivation in slop land through Agro-forestry, Horticulture and encouraging other household activities. The programme is to be designed in such a way that there would be simultaneous thrust in weaning the Jhum farmers towards better cultivation.

In this regard observations of S.P. Shukla Commission Report on “Transforming the Northeast” (march 1997) pertaining to Jhum Farming is worth noting :

“Hill farming in the Northeast is largely under Jhum though there are some excellent terraces in certain states and expanding patches of wet rice cultivation. Jhum farming is becoming less productive with a shrinking Jhum cycle and has caused erosion and forest regression in certain areas. Not all Jhumias resettlement schemes have worked well; nor can jhuming be ended all at one. The problem needs to be tackled sensitively as Jhum cultivation is also a way of life. •   “The ICAR has evolved a three-tier hill farming package combining forestry, Horticulture or tree farming and terraced cultivation as one moves down the hills. Jhum improvement is advocated by others and can be carried further through appropriate R&D. Nagaland has pioneered an excellent method of upgrading Jhum by interposing a strong and increasing component of agro-forestry through assisted tree planting of selected fast growing economic timber, the menu being a producer of meticulous exercise in bio-diversity mapping, documentation and breeding of plant material for Widespread propagation. ”

Location specific strategy development: Efforts would be made to formulate an area specific differentiated strategy taking into account the agronomic, climatic, socio-economic practices as well as the resource worthiness of the farmer. Special emphasis will be made for introducing the newly developed H.Y.V. seeds, improved planting material, adoption of new technology and mechanized farming.


Convergence of allied activities: There would be a shift from the commodity approach to system approach in Agriculture. All the land based activities like that of Agriculture, Sericulture, Live Stocks, Fish rearing etc. would be given a new dimension and synergetic functional assignment. The ultimate objective is to create conditions which would help the farming community to maximize incomes. The policy will aim at avoiding duplication of programmes/works by different functionaries, as far a possible. Towards that end, there will be regular monitoring and evaluation of all schemes implemented by Agriculture and allied Departments through appropriate mechanism.

 

Technology Transfer : Importance will be accorded to identify new location specific and economically viable improved species of Agriculture, Horticulture, Livestock and Fish etc. Accordingly motivational aspect of Agriculture Extension would receive due attention. The entire extension system will be revitalized. Innovative and decentralized institutional change will be introduced to make extension system responsible and accountable. Development of human resources through capacity building and skill upgradation of Extension functionaries will receive due attention.

Supply of Inputs : Adequate and timely supply of inputs such as seed, fertilizer, pesticides, Agri-tools and implements, credit at reasonable rate to farmers will be provided by the Govt. and other institutions, subject to availability of resources and funds. Grater emphasis will be given to increase the consumption of such inputs for acheiving the targetted increase per unit area productivity. As far as possible use of organic manure/compost will be encouraged to avoid ill effects of inorganic fertilizers. Soil health card, quality testing of inputs like fertilizer, chemicals etc, will be introduced and supply of spurious inputs will be checked. On farm management of water, increasing the area under irrigation through the use of surface water and sub-surface water will receive added attention.

 

Facilitate private investment in Agriculture:  Efforts would be made to create conditions that encourages participation of the private enterprises in the establishment of Agro-based industries. An incentive package and guideline would be finalized ensuring participation of private sector & financial institutions in the Agricultural sector as a whole NABARD will have to play a major role in channelising investment . To meet local credit needs of farmers, Rural Credit Banks are to be set up.

 

Peoples participation : The new policy would encourage formation of “Self Help Group” , village committees at different levels . The village committee would be vested with the task of maintaining and managing the assets created so far like irrigation channel, terraces market shed etc.

Marketing infrastructure: Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage, and transportation etc. with a view to reduce the post harvest losses and ensuring a better return to the grower . Direct marketing and procurement by a notified State level procurement agency, as and when required with storage facilities of different items will be made available to the production areas. Upgradation and dissemination of market intelligence will receive particular attention. Efforts will be made to strengthen the market infrastructure.

Agro – processing : Setting up of Agro – processing units in production areas will be given due priority . To reduce post harvest wastage, effort would be made to add values specially to agricultural and horticultural produce by setting up small processing units. The small farmers Agricultural business consortium ( SFAC) will be activated to cater to the need of farmer entrepreneurs. Tea will be brought under Agriculture sector, but for processing it may be under industries Sector.

 

The Department of Agriculture, Govt of Arunachal Pradesh is initiating to step up production and productivity of crops with the following schemes under State Plan Program under 3 (Three) major Heads of development:

(1) Crop Husbandry
(2) Agriculture Research & Education
(3) Agriculture Marketing & Quality Control

 

 

 

 

Crops Husbandry

 

Following programmes are covered under Crop Husbandry to enhance the food production and cash crops in the State:-

  1. State Food Security Programme
    II. Integrated Nutrient Management (INM)
    III. Integrated Pest Management (IPM).
    IV. Seed Production Programme through Govt. Agriculture Farms
    V. Chief Minister’s Agricultural Mechanization Programme
    VI. Strengthening of HRD Institution & Agriculture Programme
    VII. Cash Crops Development Programme
    VIII. Major repairs and renovation of assets (Buildings)
    IX. Promotion of Agriculture
    X. Agriculture Employment Generation Programme
    XI. Up gradation of10 (Ten) Nos. of Laboratories.

 

Agriculture research and education


The Department seeks to provide adequate stress on research by reorganizing the existing structure and pooling the existing manpower to deal effectively aiming at generating research output for the extension functionaries. Efforts are also intended to take up Research Programme on improving the productivity and generating data that suggest steps required to minimize the ill effect of Jhumming. A documentary film on Paddy-cum-Fish-Culture is also proposed for wide publicity and brings awareness to the farmers in other Districts.

Education is also an Integral part of developing the human resources in the field of Agriculture. In this Programme in which students are proposed to be sent for higher studies leading to B. Sc. (Agri.) etc. The expenditure on their stipend/Book grants etc. are to be borne by the Department.

 

Agriculture Marketing & Quality Control

 

Over the years there has been a significant increase in the production of crops like Potato, Ginger, Mustard, Vegetable, Sugarcane, Chilly & Maize in the State. The farmers are now facing the new challenge for disposal of these commodities and are deprived of the remunerative prices. All these commodities are considered as surplus and providing appropriate market avenues to the farmers is the real challenge at present to the Department.

 

 

 

Centrally Sponsored Schemes

 

The following Centrally Sponsored Schemes are being implemented in the State:-

National Food Security Mission (NFSM)
National Food Security Mission (NFSM) Rice was launched during the year 2012-13 In the State under Central sector scheme with 100% allocation from Govt. of India tiII 2014- 15.

During the year 2014-15, NFSM- Pulses and (NFSM) Coarse cereals were included by Govt. of India. The main objective of the scheme is to:

  1. Increase the production of Rice, Pulses and Coarse cereals through expansion and productivity enhancement in a sustainable manner in the identified Districts of the State.
    II. Restoring soil fertility and productivity at the individual farm level and
    III. Enhancing farm level economy (i.e. farm profits) to restore confidence amongst the farmers.

During the year 2015-16, the Govt. of India has changed the funding pattern as 50:50 (Central & State share)

 

National Mission on Oilseed & Oil Palm (NMOOP)
During the last few years, the domestic consumption of edible Oils has increased substantially and has touched the level of 10.90 million tonnes in 2011-12 and is likely to increase further. With per capita consumption of vegetable oils at the rate of 16 kg / year/person for a projected population of 1276 million, the total vegetable oils demand is likely to touch 20.4 million tonnes by 2017. A substantial portion of our requirement of edible oil is met through import of Palm oil from Indonesia and Malaysia.

Basic features & objectives
National Mission on Oilseed & Oil Palm (NMOOP) envisages increase in production of vegetable oils from oilseeds, Oil Palm and TBOs from 7.06 million tonnes (average of 2007 – 08 to 2011-12) to 9.51 million tonnes by the end of 12th Plan (2016.17).

National Mission for Sustainable Agriculture (NMSA)
National Mission for Sustainable Agriculture is one of the 8 Eight) Mission outline under National Action Plan on Climate Change (NAPCC) aim at promoting sustainable Agriculture through a series of adoption measures focusing on improved crop seeds, livestock and Fish culture, water use efficiency, integrated pest disease and Nutrient Management, improve Farm practices and livelihood diversification through integrated farming system approach.

Main objectives


  1. To make Agriculture more productive, sustainable, remunerative & climate resilient by promoting local specific integrated/composite farming systems.
    II. To conserve natural resources through appropriate soil & moisture conservation measures.
    III. To adopt comprehensive soil health management practices based on soil fertility map, soil test based application of macro & micro nutrient, judicious use of fertilizer etc.
    IV. To optimized utilization of water resources through efficient water management to expend coverage for achieving more crops per drop.
    V. To develop capacity of farmers and stake holders.
    VI. To establish an effective inter & intra Departmental / ministerial coordination for accomplishing key deliverables of NMSA.

 

Sub Mission on Agriculture Extension (SMAE)
The aim of the Sub-Mission of Agriculture Extension (SMAE) is to restructure and strengthen agricultural extension to enable delivery of appropriate technology and improved agronomic practices to farmers. This is envisaged to be achieved by a judicious mix of extensive physical outreach and interactive methods of information dissemination, use of ICT, popularization of modern and appropriate technologies, capacity building and institution strengthening to promote mechanization, availability of quality seeds, plant protection etc. and encourage aggregation of Farmers into Interest Groups (FIGs) to form Farmer Producer Organizations (FPOs).

In order to overcome systemic challenges being faced by the Extension System, there is a need for a focused approach in mission mode to disseminate appropriate technologies and relevant information to larger number of farmer households through inter personal and innovative methods of technology dissemination.

 

Rashtriya Krishi Vikash Yojana (RKVY)
Concerned by the slow growth in Agriculture and allied sectors, the National Development Council in its meeting held on 29th May 2007, had resolved to launch an Additional Central Assistant Scheme (ACAS) known as Rashtriya Krishi Vikash Yojana (RKVY) during the year 2007-2008 to Incentives the State Government to draw up strategic plans for natural resource issues and available technologies into accounts to enhance the public investment in Agriculture and allied sectors with a commitment to achieve 4% annual growth in Agriculture and allied sectors during 11th Five Year Plan.

Budgeting- Different types of Budgeting, Budgetary Control, Responsibility Accounting, Social Accounting, Different types of Deficits- Budgetary, Fiscal & Revenue Deficit.

 

 

Table of Content:-

Budgeting-

  1. Different types of Budgeting
  2. Budgetary Control
  3. Responsibility Accounting
  4. Social Accounting

Different types of Deficits-

  1. Budgetary
  2. Fiscal
  3. Revenue Deficit

 



Budgeting

Budgeting is the process of estimating the availability of resources and then allocating them to various
activities of an organization according to a pre-determined priority. In most cases, approval of a budget also
means the approval to various spending units to utilize the allocated resources. Budgeting plays a criucial role in the socio-economic development of the nation.

Budget is the annual statement of the outlays and tax revenues of the government of India together with the laws and
regulations that approve and support those outlays and tax revenues . The budget has two purposes in general :
1. To finance the activities of the union government
2. To achieve macroeconomic objectives.

The Budget contains the financial statements of the government embodying the estimated receipts and expenditure for one financial year, ie.  it is a proposal of how much money is to be spent on what and how much of it will
be contributed by whom or raised from where during the coming year.


 


Different types of Budgeting

Economists throughout the globe have classified the budgets into different types based on the process and purpose of the budgets, which are as follows:-

1- The Line Item Budget

line-item budgeting was introduced in some countries in the late 19th centuary. Indeed line item
budgeting which is the most common form of budgeting in a large number of countries and suffers from
several drawbacks was a major reform initiative then. The line item budget is defined as “the budget in which the individual financial statement items are grouped by cost centers or departments .It shows the comparison between the financial data for the past  accounting or budgeting periods and estimated figures for the current or a future period”In a line-item system, expenditures for the budgeted period are listed according to objects of
expenditure, or “line-items.” These line items include detailed ceilings on the amount a unit would
spend on salaries, travelling allowances, office expenses, etc. The focus is on ensuring that the agencies
or units do not exceed the ceilings prescribed. A central authority or the Ministry of Finance keeps a
watch on the spending of various units to ensure that the ceilings are not violated. The line item budget approach is easy to understand and implement. It also facilitates centralized
control and fixing of authority and responsibility of the spending units. Its major disadvantage is that it
does not provide enough information to the top levels about the activities and achievements of
individual units.

2 – Performance Budgeting

a performance budget reflects the goal/objectives of the organization and spells out performance targets. These targets are sought to be achieved through a strategy. Unit costs are associated with the strategy and allocations are accordingly made for achievement of the objectives. A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes. However, performance budgeting has a limitation – it is not easy to arrive at standard unit costs especially in social programmes which require a multi-pronged approach.

3- Zero-based Budgeting

The concept of zero-based budgeting was introduced in the 1970s. As the name suggests, every budgeting cycle starts from scratch. Unlike the earlier systems where only incremental changes were made in the allocation, under zero-based budgeting every activity is evaluated each time a budget is made and only if it is established that the activity is necessary, are funds allocated to it. The basic purpose of Zero-based Budgeting is phasing out of programmes/ activities which do not have relevance anymore. However, because of the efforts involved in preparing a zero-based budget and institutional resistance related to personnel issues, no government ever implemented a full zero-based budget, but in modified forms the basic principles of ZBB are often used.

4- Programme Budgeting and Performance Budgeting

Programme budgeting in the shape of planning, programming and budgeting system (PPBS) was
introduced in the US Federal Government in the mid-1960s. Its core themes had much in common with
earlier strands of performance budgeting.
Programme budgeting aimed at a system in which expenditure would be planned and controlled by the
objective. The basic building block of the system was classification of expenditure into programmes,
which meant objective-oriented classification so that programmes with common objectives are
considered together.
It aimed at an integrated expenditure management system, in which systematic policy and expenditure planning would be developed and closely integrated with the budget. Thus, it was too ambitious in scope. Neither was adequate preparation time given nor was a stage-by-stage approach adopted. Therefore, this attempt to introduce PPBS in the federal government in USA did not succeed, although the concept of performance budgeting and programme budgeting endured.


 


Budgetary Control

Budgetary control refers to how well managers utilize budgets to monitor and control costs and operations in a given accounting period. In other words, budgetary control is a process for managers to set financial and performance goals with budgets, compare the actual results, and adjust performance, as it is needed.

Budgetary control involves the following steps :

(a) The objects are set by preparing budgets.

(b) The business is divided into various responsibility centres for preparing various budgets.

(c) The actual figures are recorded.

(d) The budgeted and actual figures are compared for studying the performance of different cost centres.

(e) If actual performance is less than the budgeted norms, a remedial action is taken immediately.

The main objectives of budgetary control are the follows:

1. To ensure planning for future by setting up various budgets, the requirements and expected performance of the enterprise are anticipated.

3. To operate various cost centres and departments with efficiency and economy.

4. Elimination of wastes and increase in profitability.

5. To anticipate capital expenditure for future.

6. To centralise the control system.

7. Correction of deviations from the established standards.

8. Fixation of responsibility of various individuals in the organization.

 


 


Responsibility Accounting

Responsibility accounting is an underlying concept of accounting performance measurement systems. The basic idea is that large diversified organizations are difficult, if not impossible to manage as a single segment, thus they must be decentralized or separated into manageable parts.

These decentralized parts are divided as : 1) revenue centers, 2) cost centers, 3) profit centers and 4) investment centers.

  1. revenue center (a segment that mainly generates revenue with relatively little costs),
  2. costs for a cost center (a segment that generates costs, but no revenue),
  3. a measure of profitability for a profit center (a segment that generates both revenue and costs) and
  4. return on investment (ROI) for an investment center (a segment such as a division of a company where the manager controls the acquisition and utilization of assets, as well as revenue and costs).

Advantages:-

  1. It provides a way to manage an organization that would otherwise be unmanageable.
  2. Assigning responsibility to lower level managers allows higher level managers to pursue other activities such as long term planning and policy making.
  3. It also provides a way to motivate lower level managers and workers.
  4. Managers and workers in an individualistic system tend to be motivated by measurements that emphasize their individual performances.

In India the budget is prepared from top to bottom approach and responsible accounting would not only improve the efficiency of Indian budgetary system but also will help in performance analysis.


Social Accounting

Social accounting is concerned with the statistical classification of the activities of human beings and human institutions in ways which help us to understand the operation of the economy as a whole.

Social accounting is the process of communicating the social and environmental effects of organizations’ economic actions to particular interest groups within society and to society at large

The components of social accounting are production, consumption, capital accumulation, government transactions and transactions with the rest of the world.

The uses of social accounting are as follows:

(1) In Classifying Transactions

(2) In Understanding Economic Structure

(3) In Understanding Different Sectors and Flows

(4) In Clarifying Relations between Concepts

(7) In Explaining Movements in GNP

(8) Provide a Picture of the Working of Economy

(9) In Explaining Interdependence of Different Sectors of the Economy

(10) In Estimating Effects of Government Policies

(11) Helpful in Big Business Organisations

(12) Useful for International Purposes

(13) Basis of Economic Models


 


Budgetary Deficit

Budgetary Deficit is the difference between all receipts and expenditure of the government, both revenue and capital. This difference is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. The budgetary deficit was called deficit financing by the government of India. This deficit adds to money supply in the economy and, therefore, it can be a major cause of inflationary rise in prices.

Budgetary Deficit of central government of India was Rs. 2,576 crores in 1980-81, it went up to Rs. 11,347 crores in 1990-91 to Rs. 13,184 crores in 1996-97.

The concept of budgetary deficit has lost its significance after the presentation of the 1997-98 Budget. In this budget, the practice of ad hoc treasury bills as source of finance for government was discontinued. Ad hoc treasury bills are issued by the government and held only by the RBI. They carry a low rate of interest and fund monetized deficit. These bills were replaced by ways and means advance. Budgetary deficit has not figured in union budgets since 1997-98. Since 1997-98, instead of budgetary deficit, Gross Fiscal Deficit (GFD) became the key indicator.


 


Fiscal Deficit
  • The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government and thus amounts to all the borrowings of the government . While calculating the total revenue, borrowings are not included.
  • The gross fiscal deficit (GFD) is the excess of total expenditure including loans net of recovery over revenue receipts (including external grants) and non-debt capital receipts. The net fiscal deficit is the gross fiscal deficit less net lending of the Central government.
  • Generally fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure. Capital expenditure is incurred to create long-term assets such as factories, buildings and other development.
  • A deficit is usually financed through borrowing from either the central bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds.

 


Revenue Deficit
  • Revenue deficit is concerned with the revenue expenditures and revenue receipts of the government. It refers to excess of revenue expenditure over revenue receipts during the given fiscal year.
  • Revenue Deficit = Revenue Expenditure – Revenue Receipts
  • Revenue deficit signifies that government’s own revenue is insufficient to meet the expenditures on normal functioning of government departments and provisions for various services.
  • In India social expenditure like MNREGA is a revenue expenditure though a part of Plan expenditure.
  • Its targeted to be 2.9% of GPD in the year 2014-15, though the fiscal revenue and budget management act specifies it to be zero by 2008-09

 

 

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