[Mission 2024] QUED ( Questions from Editorials ) 30 June 2023 – INSIGHTSIAS

Correct

Solution: c)

 

The PM-PRANAM scheme was aimed at saving the soil and promote sustainable, balanced use of fertilizers and it involved the participation of State governments. The Centre would incentivise those States which would adopt alternative fertilizers with the subsidy that was saved by reducing the use of chemical fertilizers.

 

Source

Correct

Solution: a)

 

The pricing of sugarcane is governed by the statutory provisions of the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act (ECA), 1955. Prior to 2009-10 sugar season, the Central Government was fixing the Statutory Minimum Price (SMP) of sugarcane and farmers were entitled to share profits of a sugar mill on 50:50 basis. As this sharing of profits remained virtually unimplemented, the Sugarcane (Control) Order, 1966 was amended in October, 2009 and the concept of SMP was replaced by the Fair and Remunerative Price (FRP) of sugarcane.

 

The centre’s decision on Fair and Remunerative Price (FRP) of sugarcane is based on the recommendation of Commission for Agricultural Costs and Prices (CACP).

 

Source

Correct

Solution: a)

 

Only statement 2 is correct.

 

The current account deficit or CAD is a key indicator of a country’s external sector. When the value of the goods and services that a country imports exceeds the value of the products it exports, it is known as the current account deficit. Together with the fiscal deficit, which is the amount of money that the government has to borrow in any year to fill the gap between its expenditures and revenues, the two make up the ‘twin deficits’ that are considered the enemies of the stock market and investors.

 

If the current account – the country’s trade and transactions with other countries – shows a surplus, that indicates money is flowing into the country, boosting the foreign exchange reserves and the value of the rupee against the dollar. These are factors that will have ramifications on the economy and the stock markets, as well as on returns on investments by people.

 

CAD narrowed to $1.3 billion, or 0.2 per cent, of the GDP in the January-March quarter of FY2023 – from $16.8 billion or 2 per cent of GDP in the preceding quarter. In Q4 FY2022, CAD was $13.4 billion, or 1.6 per cent of GDP.

 

Remittances, which are the second largest major source of external financing after service export, also contributed to narrowing the CAD. During the quarter, private transfer receipts, mainly representing remittances by Indians employed overseas, increased to $28.6 billion, up 20.8 per cent from their level a year ago.

 

Source

Correct

Solution: a)

 

Only statement 1 is correct.

 

A current account deficit is not always detrimental to a nation’s economy—external debt may be used to finance lucrative investments. Both government and private payments are included in the calculation of CAD.

 

When the current account deficit is lower, less money is needed to finance the gap. It is also treated as a sign of the resilience of the economy.

 

Source

Correct

Solution: c)

 

The G20 was formed in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular. Its aim was to secure global financial stability by involving middle-income countries. Its prominent members are: Australia, Brazil, China, France, Germany, India, Japan, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the EU.