In Today’s News:
- Eight core sectors – contraction
- Fiscal deficit increases further.
- India Climate Change Knowledge portal launched.
1. Eight core sectors – contraction
The combined Index of Eight Core Industries stood at 124.2 in October 2020, which declined by 2.5 (provisional) percent as compared to the Index of October 2019.
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).
Click here to view the official press release.
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.
2. Fiscal deficit increases further
The fiscal deficit increased to Rs.9.53 lakh crore at the end of October month which is in other words almost 120% of the budget target for this fiscal year. The lockdown has majorly impacted business and in turn, led to poor revenue realization.
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.
3. India Climate Change Knowledge portal launched.
Hon’ble Minister of Environment, Forest and Climate Change Shri. Prakash Javadekar launched the India Climate Change Knowledge Portal. The portal will have all the major steps the Government is taking at both national and international levels to address the climate change issues.
Prelims GS – Environment
India Climate change Knowledge portal:
- The portal will be a “single point Information resource” which provides information on the different climate initiatives taken by various Line Ministries enabling users to access updated status on these initiatives.
- The portal captures sector-wise adaptation and mitigation actions that are being taken by the various line Ministries in one place including updated information on their implementation.
- The knowledge portal will help in disseminating knowledge among citizens about all the major steps Government is taking at both national and international levels to address climate change issues.
The eight major components included in the knowledge portal are:
- India’s Climate Profile
- National Policy Framework
- India’s NDC goals
- Adaptation Actions
- Mitigation Actions
- Bilateral and Multilateral Cooperation
- International Climate Negotiations
- Reports & Publications
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