03 February 2020 Current Affairs for UPSC IAS Exam

Read Daily Current Affairs of 3rd February 2020 for UPSC Civil Services (IAS) Prelims and Mains Exam 2020.

Read Current Affairs Notes of 3rd February 2020 for UPSC Civil Services Prelims and Mains Examination 2020. Highlighting all National and International contemporary issues important from the exam point of view.

GS-3, Prelims

Topic: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Booster Short

• Union Finance Minister Smt. Nirmala Sitharaman in her second budget speech expounded upon three themes:
  • Aspirational India (a better life for all)
    • Focus on education and skills, rural development, wellness, water and sanitation, etc.
  • Economic development for all (yielding more space for the private sector)
    • Focus on infrastructure development and new economic policies.
  • Creating a caring society
    • Focus on women and child development, environment, culture and tourism.
• The speech added that these three themes are flowers in a bouquet which need to be help with following two hands:
  • First hand of corruption-free governance
  • The second hand of clean and sound financial sector

GS-3, Prelims

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Breaking it down

Following picture shows the share of expenditure in each sector as allocated in the new budget:

GS-3, Prelims

Topic: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

FinMin opt-in income tax scheme to boost demand

• Budget 2020-2021 proposed a personal income tax regime with reduced rates for those earning up to Rs. 15 lakhs.

• It is aimed at increasing consumption demand and offering relief to middle-class taxpayers.
• The reduced rates will be for those who will give up exemptions, those who wish to avail the exemptions will have to pay the tax at previous rates.
• Tax practitioners have noted that the new tax rates will be attractive for non-salaried taxpayers or those who don’t avail any exemptions as of now.

GS-3, Prelims

Topic: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

FM proposes taxpayer’s charter to boost trust

• Finance Minister proposed a ‘taxpayer’s charter’: will boost trust between citizens and authorities, will improve efficiency of tax administration.
• She said that a fair and efficient tax administration is necessary for, both, ease of living and ease of doing business.
• The charter will list taxpayer’s rights and that would be incorporated in the Income Tax Act too.
• The Central Board of Direct Taxes (CBDT) will be mandated to adopt this charter, through suitable amendments.

GS-3, Prelims

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Government bites the fiscal deficit bullet

• In the wake of lower tax collections and a slowing economy, the government has allowed its fiscal deficit to go up to 3.8% of the GDP for the current financial year, compared with 3.3% projected in the previous year’s budget.
• The deviation of 0.5% has been taken up according to the Section 4(3) of the Fiscal Responsibility and Budget Management (FRBM) Act that provides for such deviation in estimated fiscal deficit on account of structural reforms in the economy “with unanticipated fiscal implications”.
• The fiscal deficit target for next year is estimated at 3.5% of the GDP.

GS-3, Prelims

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Govt. to sell part of its stake in LIC via IPO

• Government is planning to sell a part of its stake in Life Insurance Corporation of India (LIC) through Initial Public Offer (IPO).
• It is a crucial plan for the government for meeting its ambitious disinvestment target for the financial year 2020-21: to raise 2.1 lakh crore rupees through disinvestment compared to 1.5 lakh crore rupees in the current financial year.
• To disinvest LIC the government will first have to change the LIC Act as it says that ‘the capital of insurance behemoth will be wholly subscribed by the Government of India’.
• LIC is the largest company managed by assets under management and its listing could turn out to be the biggest IPO domestically.

GS-3, Prelims

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Insurance cover on deposits raised to Rs. 5 lakhs

• First time since 1993, the government has decided to increase the insurance cover for bank deposits to Rs. 5 Lakh from Rs. 1 Lakh.

• The announcement came following the Punjab and Maharashtra Cooperative Bank crisis: depositors are facing restrictions on deposit withdrawals.
• The increase in Insurance cover will give a big comfort to depositors.
• The Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase the Deposit Insurance Coverage for a depositor.
• DICGC insure all bank deposits such as:
  • Savings
  • Fixed
  • Current
  • Recurring

GS-3, Prelims

Topic: Conservation, environmental pollution and degradation, environmental impact assessment.

2,130 Kerala islands now under CRZ cover

• 2,130 backwater islands of Kerala, including Maradu, have been brought under the cover of Coastal Regulation Zone (CRZ): imposing curbs on development activities at these places.
• No new development activity will be given permission in here in an area between the High Tide Line (HTL) and 50 metres towards the landward side, which is the CRZ area of these islands.
• The HTL is the line on the land up to which the highest water line reaches during the spring tide.
• The islands of Ernakulam district where major CRZ violations were reported and have now come under the CRZ cover include:
  • Mulavukad
  • Chendamangalam
  • Kothad
  • Pizhala
  • Kadamakudy
• The number of islands on the list from other districts are as follows:
  • Alappuzha:474 islands
  • Kollam:184 islands
  • Thiruvananthapuram: 43 islands
• For the first time the islands of Kerala have been drawn up into such list.
• The list was prepared by National Centre for Earth Science Studies, Thiruvananthapuram, for the Kerala Coastal Zone Management Authority.

GS-3, Prelims

Topic: Current events of national and international importance.

New Mascot for National Games

• The 36^th National Games will be held in Goa between October 20 and November 4 this year.
• Goa’s State bird, the flame throated bulbul, also called Rubigula was chosen as the mascot.
• 12,000 athletes from 36 States and Union Territories are expected to participate in 37 disciplines across 24 venues in Goa.

GS-1, Prelims

Topic: History of India and Indian National Movement.

Haryana Harrapan site to create jobs

• The Union Budget announced the development of Harrapan site at Hisar’s Rakhigarhi village, into an iconic site and develop it into a National Museum.
• Rakhigarhi is the largest Harappan site in Indian sub-continent: spread across 500 hectares.
• The development of the site will help prevent encroachment by the locals, as Rakhigarhi village is settled exactly on top of the site.
• Developing Rakhigarhi as an iconic site would increase tourism:create jobs for the locals.
• Other than Rakhigarhi following sites will also be developed into national museums:
  • Hastinapur in Uttar Pradesh
  • Shivsagar in Assam,
  • Dholavira in Gujarat
  • Adichanallur in Tamil Nadu