CAO Daily Editorial analysis for UPSC IAS 10th-January, 2018

Current Affairs Only Daily Editorial Analysis for Competitive Exams

10th Jan, 2018


Agriculture needs a reforms package {Agriculture Sector}

(The Hindu)

Unattractive farm income

  • The absurdity of policies features among them.
  • The overriding objective of price stability, over time, has tilted farm policy in favour of the consumer, the numerically larger vote bank.
  • Trade and price controls are highly restrictive, and mostly anti-farmer. The protection afforded to the inefficient fertilizer industry ensures that input costs are high.
  • The farmer is forced to sell in the domestic market where prices tend to be lower than global agricultural prices.

Cause for food prices inflation

Poor management of food stocks


  • The government had been raising MSPs to reduce the gap between low domestic and high global agricultural prices.
  • The launch of the National Food Security Mission and a global food prices crisis necessitated hikes more aggressive than were originally planned.
  • The high MSP ensured that the increase in food grain production in the four-year period, 42 million metric tonnes, was more than double of what had been targeted.

Industrial liberalisation of 1991 

Budget 1991 together with the Industrial Policy of 1991 allowed private sector investment in almost all industrial sectors. The Reserve Bank of India stipulated a floor rate of interest and freed commercial banks to charge interest rates above the floor level based on their perceptions of risk.

The Government extend a similar freedom to term-lending financial institutions.

A case of miscasting {Environment}

(Indian Express)


Ganga cleaning mission

In news

National Mission for Clean Ganga drew flak from a Comptroller and Auditor General (CAG) report, the Centre has decided to infuse military vigour into the programme.


  • It has sanctioned the raising of a Territorial Army Battalion, which will be responsible for the “tasks and activities related to resurrecting the Ganga”.
  • The battalion comprising ex-servicemen will keep tabs on pollution levels, assist the government in enforcing pollution control measures and support the civil administration and police in managing the ghats.

Similar action in past

In the past, the Territorial Army has done well in ecological endeavours such as the rejuvenation of forests.

Stats of the mission

  • According to the National Mission for Clean Ganga website, nearly 12,000 million litres of sewage is generated every day in the Ganga basin. Barely a third of this waste is treated; the rest flows into the river.
  • The volume of muck might actually be even greater because large parts of cities like Haridwar, Varanasi and Kanpur are not even connected to the sewage network

National Mission for Clean Ganga

National Mission for Clean Ganga(NMCG) was registered as a society on 12th August 2011 under the Societies Registration Act 1860.It acted as implementation arm of National Ganga River Basin Authority(NGRBA) which was constituted under the provisions of the Environment (Protection) Act (EPA),1986. NGRBA has since been dissolved with effect from the 7th October 2016, consequent to constitution of National Council for Rejuvenation, Protection and Management of River Ganga

The Act envisages five tier structure at national, state and district level to take measures for prevention, control and abatement of environmental pollution in river Ganga and to ensure continuous adequate flow of water so as to rejuvenate the river Ganga as below;

1. National Ganga Council under chairmanship of Hon’ble Prime Minister of India.
2. Empowered Task Force (ETF) on river Ganga under chairmanship of Hon’ble Union Minister of Water Resources, River Development and Ganga Rejuvenation.
3. National Mission for Clean Ganga(NMCG).
4. State Ganga Committees and
5. District Ganga Committees in every specified district abutting river Ganga and its tributaries in the states.

 Budget 2018: A lower corporate tax rate may not make all happy {Economy}



If the tax rate is lowered and exemptions removed, there will certainly be gainers but the irony is that there could be losers as well

The government’s contention is that if it has to lower the corporate income-tax rate, it will eliminate tax exemptions.

SignificanceA lower tax rate without exemptions will lead to a more equal tax treatment across sectors.

  • A lower tax rate without exemptions will lead to a more equal tax treatment across sectors.
  • Firstly, the services sector suffers an ETR of 30.3% compared to 25.9% for manufacturing. A lower rate will see the services sector, a key driver of economic growth, benefit.
  • Secondly, larger firms pay a much lower ETR compared to smaller companies.
  • If the average tax rate is lowered, say to 25% from the current 34.47%, sectors such as banks and financial institutions, food processing and electronics will benefit, but there are sectors which had a lower ETR than this rate. They could see their tax liability increase.

Effective tax rate

The effective tax rate is the average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate at which their earned income is taxed, and the effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed.


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