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Here are the topics covered for 03 Feb 2024:
GS-2: India-UAE
GS-3: Blue Economy 2.0,Interim Budget, Environmental Regulatory Bodies
Facts For Prelims: Lakhpati Didi Scheme, Digital Detox
India-UAE
Context
- The Indian Union Cabinet has approved the ratification of the Bilateral Investment Treaty (BIT) with the UAE to improve the confidence of investors to increase foreign investments.
What is BIT?
- A Bilateral Investment Treaty (BIT) is a reciprocal agreement safeguarding investments between two countries.
- The BIT with the UAE aims to boost investments, particularly in sectors like real estate and renewable energy.
- UAE ranks fourth as an investor in India for FY23, reflecting strengthened economic ties.
- The treaty ensures mutual protection for investments made in both India and the UAE.
India’s BIT
- From 1991 to 2015, India signed Bilateral Investment Treaties (BITs) with 83 countries based on the Model BIT text of 1993.
- In response to a surge in international arbitration cases under existing BITs, a new Model BIT text was adopted by the Union Cabinet in 2015.
- Notices of Termination were issued to 77 countries based on the 1993 Model as of September 2021.
- The Model text of 2015 is now used for (re)negotiations of BITs and investment chapters of FTAs/Economic Partnership Agreements.
Blue Economy 2.0
Context
- The recent Interim Budget emphasized on promoting climate resilient activities for a \’blue economy\’ for sustainable growth.
About Blue Economy
- The World Bank defines the blue economy as the sustainable use of ocean resources for economic growth, improved livelihoods, and job creation while preserving the health of the ocean ecosystem.
- Pillars of the blue economy include fisheries, aquaculture, maritime transport, renewable energy from the sea, coastal tourism, and marine biotechnology.
Difference Between Blue Economy 1.0 and 2.0
| Blue Economy 1.0 | Blue Economy 2.0 |
| Resource Exploitation | Sustainable Resource Use |
| Traditional industries, oil & gas | Innovation, sustainability |
| Emphasis on economic growth | Balance economy, environment, society |
| Challenge of environmental damage, resource depletion | The challenge of transition, technology, equity, and cooperation |
Interim Budget
Context
- The Union Finance Minister recently unveiled the Union Budget for the upcoming fiscal year (2024-25) in Parliament.
Key Takeaways in the Budget
- The Union Budget for the fiscal year 2024-25 has increased to ₹11.1 lakh crore, constituting 3.4% of the GDP.
- Capital expenditure (excluding grants in aid) represents 23.31% of the total expenditure.
- The estimated total expenditure for 2024-25 is ₹47.66 lakh crore, showing a 6.1% rise from the revised estimates of the previous fiscal year.
- The budget estimates a fiscal deficit of 5.1%, a decrease from the revised estimates of 5.8% in the last fiscal year.
Taxation Reform
- Direct tax collections have tripled in the last decade, accompanied by a 2.4 times increase in return filers.
- Tax rates have been reduced and rationalized, with no tax liability for income up to Rs 7 lakh under the new tax scheme.
- Introduction of Faceless Assessment and Appeal for enhanced efficiency and transparency.
- GST has unified the indirect tax regime, alleviating compliance burdens.
- 94% of industry leaders view the GST transition positively, with 80% reporting supply chain optimization.
- The GST tax base has more than doubled, and the average monthly gross GST collection is nearly Rs 1.66 lakh crore.
- States have benefited from SGST revenue, exhibiting higher tax buoyancy post-GST.
- Customs: Import release time was significantly reduced at various ports and cargo complexes.
About Interim Budget
- An interim budget is a temporary presentation by the government during an election year when a full budget may be impacted by potential executive changes post-election.
- Also referred to as a \’Vote on Account,\’ it lacks constitutional provision.
- Annual budgets, presented on February 1st, provide a comprehensive plan for the fiscal year, encompassing revenue, expenditures, and policy announcements.
- Interim budgets serve to fund essential government operations until the new government unveils its complete budget after elections.
- They prioritize sustaining ongoing schemes and vital public services during the transitional period.
Environmental Regulatory Bodies
Context
- The Supreme Court has issued new guidelines for Environmental Regulatory Bodies to ensure the effective functioning of environmental bodies to uphold the Environmental Rule of Law.
New Guidelines
- Clearly define the composition and service conditions of the bodies and their members.
- Establish a reliable and transparent source of finances.
- Clearly demarcate the mandate and role of the entities.
- Notify rules, regulations, and guidelines in regional languages, whenever feasible.
- Conduct regular and systematic audits of the functioning.
- Specify norms for public hearings, the decision-making process, etc.
Central Empowered Committee (CEC)
- Initially formed as an ad hoc body following the Supreme Court\’s order in TN Godavarman vs Union of India (1996).
- In September 2023, the Union Ministry of Environment, Forest, and Climate Change (MoEFCC) officially recognized CEC as a permanent statutory body under the Environment (Protection) Act, of 1986.
- Primary functions include monitoring the implementation of Supreme Court orders related to environmental issues.
- Its jurisdiction extends across the entire nation.
Facts For Prelims
Lakhpati Didi Scheme
- Launched in December 2023, this initiative aims to financially empower women in rural areas and promote their entrepreneurial spirit.
- The key features include targeting women members of existing or newly formed Self-Help Groups (SHGs) in rural areas, with participants required to be active SHG members.
- Necessary documents include a domicile certificate, Aadhar card, ration card, proof of income, and bank details.
- The initiative provides interest-free loans of Rs. 5 lakh per SHG for initiating or expanding income-generating activities.
- It also includes skill development programs tailored to local needs and market potential, along with efforts to connect SHGs with markets through fairs, exhibitions, and digital platforms.
Digital Detox
- Karnataka Government, in collaboration with All India Game Developers Forum (AIGDF) and NIMHANS, announced the Digital Detox Initiative.
- Digital Detox refers to a deliberate reduction in the time spent online on electronic devices such as mobiles and laptops.
- The initiative aims to promote responsible gaming through awareness, Digital Detox centers for personalized guidance, and community connection via workshops.
- The need for Digital Detox is driven by mental health challenges, decreasing attention spans, and strained real-world connections resulting from overdependence on technology.