In Today’s News:
- UNSC Resolution 2593
- Fiscal deficit
- Core sector
1. UNSC Resolution
By terms of resolution 2593 (2021), adopted by a vote of 13 in favor with two abstentions (Russian Federation and China), the 15-member UNSC organ demanded that Afghan territory not be used to threaten or attack any country and reiterated the importance of combating terrorism in Afghanistan.
Courtesy: UNSC Press Release.
Prelims GS – International Relations
- UN Security Council has the responsibility of maintaining peace and security in the world.
- It is one of the 6 principal organs of the UN.
- UNSC has 15 members. i.e. 5 permanent members and 10 non-permanent members.
- Each member has one vote.
- 5 permanent members are:
- the United Kingdom and
- the United States.
- These 5 permanent members have the power to veto any resolution in UNSC.
- 10 non-permanent members are elected by the UN General Assembly for a two-year term.
- 10 non-permanent members seats are distributed on a regional basis as given below:
- 5 for African and Asian States
- 1 for the Eastern European States
- 2 for Latin American and the Caribbean States
- 2 for Western European and other states.
- India will need the vote of 2/3rd members of the UN General Assembly to become a non-permanent member for a two-year term.
- India has won the non-permanent member seat of the United Nations Security Council by securing 184 votes out of 192 votes.
- India has a term of two years starting from January 2021 in the UNSC.
- India has already been a non-permanent member of the UNSC for seven terms. So, this is not the first time. (Important point for Prelims)
Mains GS2 – International Relations
India’s agenda in UNSC as a non-permanent member:
- India can use its term as a non-permanent member to enhance its position as a responsible and constructive member of international society.
- It should emphasize and strengthen multilateralism in UNSC meetings.
- India should try to make progress on the elimination of weapons of mass destruction in a non-discriminatory manner.
- India should highlight the UN Charter and promote the State’s sovereignty and should prevent the interference of outside countries in the domestic affairs of the States.
- Thus, India should use this opportunity to enhance the country’s reputation.
For more information on UNSC, click here to view the official website.
The 13th BRICS summit is going to be held on 9th September under the chairmanship of India.
Prelims GS – International Relations
- BRICS refers to Brazil, Russia, India, China, and South Africa.
- It was the Russian side that initiated the creation of BRICS.
- On 20 September 2006, the first BRICS Ministerial Meeting was held at the proposal of Russian President Vladimir Putin on the margins of a UN General Assembly Session in New York. Foreign ministers of Russia, Brazil, and China and the Indian Defence Minister took part in the meeting. They expressed their interest in expanding multilateral cooperation.
- On 16 May 2008, Yekaterinburg hosted a Meeting of BRICS Foreign Ministers on the initiative of Russia. After the meeting, a Joint Communique was issued, reflecting common stances on topical global development issues.
- On the Russian initiative on 16 June 2009, Yekaterinburg hosted the first BRIC Summit.
- At the Fortaleza Summit (2014), in Brazil, important institutions were created: the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). (Note: UPSC Prelims Question 2015)
- BRICS represents about 42% of the population, 27% of GDP, 30% of the territory, and 18% of the global trade.
- The 13th BRICS Summit is going to be held under India’s Chairship in 2021.
- It will be the third time that India will be hosting the BRICS Summit after 2012 and 2016.
Click here to know more about BRICS
3. Fiscal Deficit
As per data released by the Controller General of Accounts on 31.8.2021, the Fiscal deficit of the Union Government stood at 21.3% of the budget estimates at the end of July.
Prelims GS – Economic Development
- A fiscal deficit is a shortfall in a government’s income compared with its spending.
- Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
- A fiscal deficit occurs when the government’s expenditure exceeds the receipts.
Fiscal deficit= Total expenditure – Total receipts except for borrowings.
- The Finance Minister identified the fiscal deficit for FY 2019-20 at 3.8%(RE) and pegged it at 3.5% (BE) for FY 2020-21 which is consistent with the government’s abiding commitment to macroeconomic stability as part of Medium Term Fiscal Policy cum Strategy Statement 2020-21.
- Section 4(2) of the FRBM Act provides for a trigger mechanism for a deviation from the estimated fiscal deficit on account of structural reforms in the economy with unanticipated fiscal implications.
- Therefore, a deviation of 0.5%, consistent with Section 4(3) of the FRBM Act, both for RE 2019-20 and BE 2020-21 was taken by the Government.
FRBM Act 2003:
- FRBM Act is an Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.
- “Fiscal deficit” means the excess of total disbursements, from the Consolidated Fund of India, excluding repayment of the debt, over total receipts into the Fund (excluding the debt receipts), during a financial year.
Click here to view the FRBM act.
4. Core Sector
The combined Index of Eight Core Industries stood at 134.0 in July 2021, which increased by 9.4 percent (provisional) as compared to the Index of July 2020.
Click here to view the Courtesy: PIB release.
Prelims GS – Economic Development
Index of Eight Core Industries:
- Eight Core Industries comprises of the following industries:
- Crude Oil
- Natural Gas
- Refinery Products (Petroleum)
- The Index of Eight Core Industries is released by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry. (Note: UPSC Prelims Question expected)
- In the index of eight core industries, Refinery products have the highest weight followed by Electricity and Steel.
- The Eight Core Industries comprise 40.27 % of the weight of items included in the Index of Industrial Production (IIP).
Index of Industrial Production: (IIP)
- Index of Industrial Production is an index that tracks manufacturing activity in various sectors of the economy.
- The three broad sectors of IIP:
- Besides these, the Index of eight core industries constitutes 40.27% of the weight of items in IIP.
- IIP data is compiled and released monthly by the Central Statistical Organisation, Ministry of Statistics, and Programme Implementation.
Click here for Daily current affairs for the UPSC exams on other dates.