In News

The Reserve Bank recently released the 25th issue of the Financial Stability Report (FSR).

About the Report

• The Report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system.
• The Financial Stability Report (FSR) is published biannually and includes contributions from all the financial sector regulators.

Key Highlights of the Report

Sources:

• Financial Stability Report June 2022:

In News

The Goods and Services Tax (GST) Council in its 47th meeting has undertaken a series of rate changes.

About the News

• The Goods and Services Tax (GST) Council in its 47th meeting undertook a series of rate changes as part of correction of inverted duty structure, withdrawal of certain exemptions in what could be a precursor for an overall tweaking of tax slabs and rate rationalisation in future.

Changes announced by the GST Council:

• GST exemption has been withdrawn from ‘pre-packaged and labelled’ retail packs which will include food items such as curd, lassi, puffed rice, wheat flour, buttermilk.

• • Such food items will now be , at par with branded items.
  • But items sold loose or unlabelled shall continue to remain exempt.
• Refund of accumulated input tax credit will not be allowed on goods such as edible oil and coal.
• Correction of inverted duty structure translates into a rate hike for household items such as LED lamps, printing/drawing ink, power driven pumps, Tetra Pak to 18 per cent from 12 per cent, for solar water heaters, finished leather to 12 per cent from 5 per cent and for cut and polished diamonds to 1.5 per cent from 0.25 per cent.
• Among services, 18 per cent GST will be levied for issue of cheques.
• Mandatory generation of e-way bills by states for intra-state transportation of gold and precious stones with minimum threshold of Rs 2 lakh has also been approved.
• Exemptions were also withdrawn for room rents: a 12 per cent GST will now be levied on hotel rooms with rent up to Rs 1,000 a day and a 5 per cent GST will be levied on hospital room rent above Rs 5,000 per day (excluding ICU).
• GST rate has been cut for ostomy/ orthopaedic appliances from 12 per cent to 5 per cent and transport of goods and passengers by ropeways from 18 per cent to 5 per cent (with input tax credit).

Need for such Changes

• Since the introduction of GST in July 2017, several rate revisions have been undertaken affecting the revenue stream which got worsened by the pandemic.
• Rate rationalisation measures are also important given that the guaranteed compensation mechanism to states for 5 years for revenue losses arising due to GST implementation.
• Despite an uptick in GST revenues, states with a heavy dependence on compensation may find FY23 to be a challenging year.
• There are also concerns regarding disputes and revenue leakage which have led to withdrawal of exemptions of pre-packaged items.
  • Some companies were seen to be misusing the provision of exempting unlabelled food items by not registering them.
• The rate cuts on over 350 items out of total 1,211 items in the five broad categories of zero, 5%, 12%, 18% and 28% under GST were estimated to have resulted in a revenue loss of about Rs 70,000 crore in a year.

Impact on consumers

• Rate hikes for daily-use items such as LED lamps and packaged food items such as wheat flour, paneer, curd, lassi are expected to result in price hikes by companies and are expected to add to inflationary concerns.
• A tax rate of 12% for hotels below the tariff of Rs 1,000/day is expected to affect the tourism segment in non-metro cities.
• The overall retail inflation rate based on Consumer Price Index, however, is unlikely to get affected sharply as the weightage of these items is low in the index.

Source:

• Explained: Tax rate changes decided by the GST Council
• GST Council Decides To Rationalise Tax Rates On Certain Goods And Services: FM

Image source:

• GST: Rate changes and relief

In News

India’s Foodgrains Buffer Stock has been depleting of late.

Trends in Buffer Stock in India

• Depletion of Stock: Our buffer stocks have been well above required levels. The surplus was used for the free foodgrain scheme during the pandemic.

• • However, such distribution, and higher global wheat prices are beginning to deplete the wheat buffer.
• External Factors: The Russia-Ukraine war boosted international foodgrain prices, tempting farmers to sell produce to private traders for export, leading to lower buffer stocks.
  • Thus, the government might not be in a position to continue with the free grain scheme. Depleted buffer stocks could also strain the public distribution system.
• Also, limited buffer stock limits the ability to stabilize the price level of food grains, that too at a time when food inflation is rising.

About Buffer Stocks

• Buffer stock is generally maintained for essential commodities like wheat, rice and pulses to provide food security through the public distribution system, and ensure that everyone has access to sufficient food for sustenance.
• It also ensures there are no food shortages during emergencies such as drought and floods, and helps the government run its welfare programmes.
• They also help the government in facilitating and maintaining price stability and keep food inflation at low levels. In case of a food price rise due to poor market supply, the government releases buffer stocks to bring down prices.

Maintenance of Buffer Stock in India

• Buffer stocks comprise operational stocks to meet monthly distribution requirement under Targeted Public Distribution System and other welfare schemes) and food security stock reserves for meeting procurement shortfalls.
• The procurement (obtained at minimum support price), storage and distribution of wheat and paddy are taken care of by the Food Corp. of India, while coarse grains are procured by state government agencies.
• Besides its own storage capacity, FCI also hires storage capacity from the Central Warehousing Corporation, state warehousing corporations, state agencies and private parties.

Source:

• Should India worry about shrinking foodgrain reserves?

On 4 July 1897, Alluri Sitarama Raju was born. The Prime Minister of Indi has unveiled a 30-foot-tall bronze statue of freedom fighter Alluri Sitharama Raju as part of his visit to Bhimavaram, Andhra Pradesh. Alluri Sitarama Raju is believed to have been born in present-day Andhra Pradesh in 1897 or 1898 and is known for leading guerrilla resistance against the British in the region at a very early age.

At the age of 18, Raju became a sanyasi (hermit) and began going into the hill and tribal areas of the region. Sitarama Raju did not belong to the tribal community but understood the restrictions that the British colonial administration placed on the tribal way of life. Known as the “Rampa Rebellion” or “Manyam Rebellion”, between August 1922 and May 1924, Alluri led a protracted battle against the British in support of the tribal community. In 1986, the Indian Postal Department issued a stamp in his name, featuring the struggle for Independence.

Sources:

• Explained: Who was Alluri Sitharama Raju, whose statue PM Modi unveiled?
• Alluri Sitarama Raju’s heroics need nation’s attention:

• Context: The copy of the first Tamil translation of the Bible, that was stolen from Saraswathi Mahal Library, Thanjavur, has been recently traced by Idol Wing CID Police to London.

• The first Tamil translation of the New Testament was printed in 1715 by Bartholomaeus Ziegenbalg, a missionary.
• He arrived in Tranquebar (Tharangambadi), a tiny Danish colony on the east coast, in Tamil Nadu, as the first Protestant missionary responding to an appeal from the King of Denmark for missionaries.
• He soon set up a printing press and published studies of the Tamil language and Indian religion and culture.
• His translation of the New Testament into Tamil was presented to Tulaji Rajah Serfoji by Schwartz, another missionary.
• After the takeover by the Tamil Nadu government, the antiquarian book became an exhibit in the Saraswati Mahal Museum for public viewing. 

Source:

• First copy of Tamil Bible stolen from Saraswathi Mahal Library traced to London
• 17th Century Tamil Bible Stolen In 2005 Traced to London Museum After 17 Years

Image source:

• https://timesofindia.indiatimes.com/city/trichy/tamil-bible-of-1715-lost-in-tn-traced-to-london/articleshow/92607796.cms

• Context: Spyware ‘Hermit’ is believed to have targeted iPhones and Android devices in Italy and Kazakhstan.
• Hermit is a spyware on the lines of Pegasus by NSO Group.
• Once installed on a device, it can record audio on the device, carry out unauthorised calls, and carry out many unauthorised activitie

• The spyware can steal stored account emails, contacts, browser bookmarks/searches, calendar events, etc. and can also take pictures on the device, steal device information such as details about applications, model, manufacturer, OS, etc.
• It can also download and install APK (the app software files on Android) on a compromised phone.
• The spyware can also upload files from the device, read notifications, and take pictures of the screen.
• The actors targeting the victims work with the target’s ‘Internet Service Provider’ or ISP to disable the target’s mobile data connectivity.
• Once disabled, the attacker would send a malicious link via SMS asking the target to install an application to recover their data connectivity.

Source:

• Explained: What is Hermit, the Pegasus-like spyware that targeted Android, iOS devices?
• Explained: What is Hermit, a Pegasus-like spyware targeting Android, iOS devices?

Image source:

• Fourth time's a charm - OGUsers hacking forum hacked again

• Context: ISRO has recently achieved the feat of successfully launching the PSLV Orbital Experimental Module or ‘POEM’.
• POEM is an experimental mission by ISRO which performsin-orbit scientific experiments during the fourth stage of the Polar Satellite Launch Vehicle (PSLV) launch vehicle as an orbital platform.

• • The PSLV is a four-stage rocket where the first three spent stages fall back into the ocean,and the final stage (PS4)-after launching the satellite into orbit-ends up as space junk.
  • However, in PSLV-C53 mission, the spent final stage will be utilised as a “stabilised platform” to perform experiments (this is the first time to be put to use that way).
• POEM has a dedicatedNavigation Guidance and Control (NGC) system for attitude stabilization, which stands for controlling the orientation of any aerospace vehicle within permitted limits.
• POEM carries six payloads including two from Indian Space Start-ups, Digantara, and Dhruva Spaceenabled through IN-SPACe and NSIL.
• It will derive its power from solar panelsmounted around the PS4 tank, and a Li-Ion battery. It will navigate using Four Sun Sensors, a Magnetometer, Gyros & NaVIC.
• It also carries dedicated control thrusters using Helium gas storage and is enabled with a telecommand feature.

Source:

• Explained: What is ISRO’s ‘POEM’ platform?
• ISRO’s ‘POEM’ platform

Image source:

• India’s PSLV blasts off with 20 satellites

• Context: Odisha is gearing up to claim geographical indications (GI) registry of Kai Chutney.
• Weaver ants are use as ingredient to make the Kai Chutney. Weaver ants (Oecophylla smaragdina), are abundantly found in Mayurbhanj throughout the year.
• They construct nests with leaves of host trees.

• Larval and adult stages of the ants are preferred and are either eaten raw or turned into “chutney” by mixing them with spicy ingredients.
• This savoury food item, rich in valuable proteins, calcium, zinc, vitamin B-12, iron, magnesium, potassium, sodium, copper, fiber and 18 amino acids, is known to boost the immune system and keep diseases at bay.
• This food helps the locals get rid of flu, common cold, whooping cough, to increase appetite, enhance vision and eyesight naturally without corrective eye wear and to treat joints pain, stomach diseases, etc.
• Applied under food category, the GI tag of Kai Chutney would help develop a structured hygiene protocol in its preparation for standard wider use.
• GI labels enhance the reputation and value of local products and support local businesses.

Source:

• With GI tag, Mayurbhanj’s superfood ‘ant chutney’ set to find more tables
• With GI tag, Mayurbhanj’s superfood ‘ant chutney’ set to search out extra tables

Image source:

• With GI tag, Mayurbhanj’s superfood ‘ant chutney’ set to find more tables

Essence: Reports suggest that the government of India is planning to ban rice export and authors make a case to convey that this may not be the best option if targeting inflation is the goal. Cereal groups contribute only 6.6 percent in India’s inflation figure and hence such steps have limited utility.

India is world’s largest rice exporter and in FY 22 export price of common rice was less than the Minimum Support Price. Author suggests that India should impose an export tax which will at least help government fund subsidies given to farmers, even though it won't provide respite from high inflation. Export ban is not a solution.

Why should you read this article?

• To develop critical understanding of the decision to ban exports of cereals.
• To understand some of the solutions which can help the government deal with inflation without resorting to export bans.

Source:

• Why rice and wheat bans aren’t the answer to inflation

Essence: The article raises concerns about police interrogation techniques that, in some instances, result in custodial deaths. The article goes on to explain how various technical solutions, such as artificial intelligence (AI), machine learning (ML), etc., may prove to be a panacea for averting fatalities in custody. However, there are certain moral and legal issues with these technologies that might be dangerous. Therefore, the technology is a limited instrument that cannot end fatalities committed while under their care. While it could offer comfort and transparency. The article further suggests that the formulation of a multi-pronged strategy by the decision-makers including legal enactments, technology, accountability, training, and community interactions might be the way ahead.

Why should you read this article?

• To comprehend the problems pertaining to the custodial deaths in India.
• To comprehend how technology may help in preventing custodial deaths besides, understanding the limitations of technology.
• To know the potential solutions to this problem.

Source:

• Technology is no panacea for custodial deaths:

Background

• A small plantation area christened Sarojini Vana (Sarojini Forest) in Odisha’s Bonai Forest Division has been named after Sarojini Mohanta, as a tribute to her.
• Sarojini has gone beyond the call of duty to create a forest on a denuded patch of land in just two years.

About Sarojini’s work

• Bonai is a mining affected region in the State. The Forest Division received funds under the District Mineral Foundation programme to raise a small forest on the denuded patch.
• Mohanta was deployed to look after the plantation area.

• The land had murrum soil (a type of laterite soil). Trees hardly grow in these types of soil. She actively participated in digging pits for each sapling and filled them up with vermi-compost. She made sure that all saplings were watered regularly.
• Mohanta would know which plant would die if it wasn’t watered immediately.
• The dedication made all the difference. In a span of two years, over 3,000 fruit-bearing and forest species of trees have begun thriving on the land she tends.

Quote: “Genius is one percent inspiration, ninety-nine percent perspiration.”  ― Thomas A. Edison

Source:

• Small forest in Odisha named after the woman who watches over it: