SIXTH ECONOMIC CENSUS

The Sixth Economic Census (EC) is scheduled to be conducted during Oct, 2012- June,13 in all the States and Union Territories of the country in collaboration with States/UT Governments.
The Sixth EC proposes to provide up to date information on number of establishments and number of persons employed therein, activity wise, of all the sectors (excluding crop production, plantation, public administration, defense and compulsory social security) of the country including its distribution at all-India, State, district, and at village/ward levels for comprehensive analysis of the structure of the economy (macro, micro, regional Levels).
Scope and coverage of economic census
The Sixth Economic Census is being conducted in all the States/UTs. All economic activities (agricultural and non-agricultural), except those involved in crop production and plantation, public administration, defense and compulsory social security, related to production and/or distribution of goods and/or services other than for the sole purpose of own consumption were covered.
However, as were done in earlier censuses, the following activities are being kept out of the purview of the Sixth Economic Census:
(i) Establishments of shelter-less and nomadic population, which keep on moving from place to place and camp either without shelter or with makeshift shelter.(ii) Establishments engaged in some activities like smuggling, gambling,   beggary, prostitution, etc.(iii) Domestic servants, whether they work in one household or in a number of households, drivers, etc. who undertake jobs for others on wages.(iv) All wage-paid employees of casual nature.(v) Household members engaged in household chores.(vi) Persons doing different types of jobs depending on the availability of work e.g. loading, unloading, helping a mason or a carpenter, doing earthwork for a contractor.(vii) Household members working for other households and earning some money which is insignificant.(viii) Households in which none of the members is engaged in any gainful activity i.e. households depending on remittance, rent, interest, pension etc.
Main objectives of the Sixth Economic Census are as under:
a) To provide detailed information on operational and economic variables, activity wise, of all the establishments(excluding crop production, plantation, public administration, defence and compulsory social security)  of the country including its distribution at all-India, State, district, and village/ward levels for comprehensive analysis of the structure of the economy (macro, micro, regional Levels) and for benchmark purposes;b) To provide similar data at lower geographical levels like tehsils /villages in case of rural areas and wards in case of urban areas for decentralized planning required under 73rd and 74th Constitutional Amendments;c) To generate information on number of exporting establishments, employing 10 or more workers,  activity wise and area wise in operation;d) To provide information on number of workers working in establishments, activity wise and area wise in operation;e) To provide information on number of workers working in unorganised sector (i.e. establishments employing less than ten workers);f) To provide updated Directory of Establishments employing 10 or more workers for local level planning purposes; andg) To provide an up to date frame (list) from which samples could be drawn for collecting detailed information.
The activities being covered in the Sixth Economic Census have a share of about 86 % in total GDP of the country.

Socio Economic and Caste Census 2011

For the success of any targeted approach, the identification of the real beneficiaries is of paramount importance. Thus the Central Government has decided to conduct a Socio Economic and Caste Survey of the national population in the year 2011. The Socio Economic and Caste Census would be carried out by the respective State Government with the financial and technical support of the Government of India. It was launched on 29th June 2011 in Hazemora Block in West Tripura.

The SECC, 2011 has the following three objectives:

1. To enable households to be ranked based on their socioeconomic status. State Governments can then prepare a list of families living below the poverty line.
2. To make available authentic information that will enable caste-wise population enumeration of the country.
3. To make available authentic information regarding the socioeconomic condition, and education status of various castes and sections of the population.

The SECC, 2011 will be conducted through a comprehensive programme involving the Ministry of Rural Development, Ministry of Housing and Urban Poverty Alleviation, The Office of the Registrar General and Census Commissioner, India and the State Governments. 

The process is as follows:

• Each Collector/District Magistrate will formulate a District/ Town Plan and a Communication Plan.
• 24 lakh Enumeration Blocks (EB) will be used for the SECC, 2011- each Enumeration Block has roughly 125 households. These are the same Enumeration Blocks that were formed during the Census 2011. The enumerators will be provided copies of the layout maps and Abridged House List prepared during Census 2011. This will ensure complete coverage of the area.
• Enumerators will be trained to conduct the SECC, 2011.
• Each Enumerator will be assigned 4 Enumeration Blocks, and every 6 Enumerators will be assigned to one Supervisor.
• Enumerators will visit every household identified in the Enumeration Block and canvas the questionnaire. They will also reach out to homeless populations (eg. people living in railway stations, roadsides etc.
• A data entry operator will accompany each Enumerator.
• The data will be captured directly on an electronic handheld device (a tablet PC). The hand held device will have the scanned images of the forms filled up for National Population Register (NPR). This will also ensure complete and accurate coverage.
• The information (held in the tablet PC) will be read out to the respondent, who will verify it. A printed acknowledgement slip, signed by the Enumerator and Data Entry Operator will be given to the respondent.
• Collected data will be verified in the Panchayat.
• After all the information is collected from an Enumeration Block, a draft publication list will be prepared for verification.
• Within a week of publication of the draft list, the list will be read out at the Gram Sabha in all rural areas.
• Any person can file claims/objections and information furnished before designated officers for this purpose. The draft list will be made available at the Gram Panchayat, Block Development\Office, Charge Centre and District Collector’s Offices.
• The list will also be uploaded on the NIC/State Government/ MoRD/MoHUPA websites.

This exercise will help better target government schemes to the right beneficiaries and ensure that all eligible beneficiaries are covered, while all ineligible beneficiaries are excluded. 

Enumeration under SECC 2011 has been completed in 2,339,926 enumeration blocks (EBs) comprising 94.26 per cent of the total EBs of all the states as on 31 December 2012. The government has constituted an Expert Committee under the chairpersonship of Professor Abhijit Sen, Member Planning Commission, to examine the SECC indicators and the data analysis and recommend appropriate methodologies for determining classes of beneficiaries for different rural development programmes. It will consult states, experts, and civil society organizations while arriving at these methodologies.

AP SOCIO ECONOMIC SURVEY 2012-13

  

BUDGET 2013-14 PRACTICE QUESTIONS

1)Pavan Kumar Bansal represents, which of the following Constituencies?
1. Amritsar 
2. Ahmedabad 
3. Chandigarh 
4. Sangrur

2)Which of the following state has been bought into the railway net work for the first time?   
1. Manipur 
2. Assam
3. Tripura 
4. Arunachal Pradesh

3)A8ording to Railway Budget Freight earning to go by?
1. 7% 
2. 8%
3. 9% 
4. 10%

4)Which of the following is true?
1. Steep increase in input costs have been met with hike in Freight rates
2. Indian Railways is aware of the problems of the IRCTC website, and will create a next generation e-ticketing system by end of this year, Bansal said.
3. Aadhar can be helpful for Railways in much respect, from booking tickets to tracking pension of rail employees.
4. All the above

5)Railway Minister has said that a special luxury coach, with the best of ameneties, will run, in selected trains and named it as?
1. Anubhuti 
2. Safety
3. Vikas 
4. Samardh

6)The amount allocated by Planning commi-ssion (budgetary support to Railways)?
1. 3.19 lakhs 
2. 4.19 lakhs
3. 5.19 lakhs 
4. 6.19 lakhs

7)Which of the following is true about Indian Railways?
1. Railways were first introduced to India in 1853 from Bombay to Thane.
2. In 1951 the systems were nationalized as one unit, the Indian Railways
3. Indian Railways is the worlds ninth largest commercial or utility employer
4. All the above

8)The Rail Neer Bottling plants would be set up in
1. Vijayawada, Mumbai, Lalitput, Bilaspur, Patna, Ahmedabad
2. Ahmedabad, Jaipur, Vijayawada, Nagpur, Lalitpur, Bilaspur
3. Bilaspur, Vijayawada, Kolkata, Nanded, Lalitpur, Jaipur
4. Nanded, Kolkata, Vijayawada, Ludhiana, Lalitpur, Jaipur

9)Which of the following is/are true as per new Railway budget?
1. Year hike of 5% of charges proposed for 10 years
2. In future, ticket charge may be indexed to fuel price
3. Train protection warning in automatic systems will be introduced
4. All the above

10)How much percentage of RPF vacancies reserved for women?    
1. 10% 
2. 15% 
3. 20% 
4. 25%

11)Which of the following is true about recent General Budget 2013-14?
1. The total expenditure for 2013-14 is the Rs 16, 65, 297
2. The plan expenditure is the Rs 5, 55, 322 crore
3. Non-plan expenditure Rs 11, 09, 975crore
4. All the above

12)Which of the following is true?
1. Chidambaram presented the his eighth Annual budget in Parliament, second highest by any other in the country
2. It was 82nd Budget, which includes interim and special-situation budgetary proposals
3. Former Prime Minister Morarji Desai presented budget for 10 times.
4. All the above

13)How much is allocated for Nirbhaya fund?
1. Rs 800 crore 
2. Rs 900 crore 
3. Rs 1000 crore 
4. Rs 1100 crore

14)How many private radio FM stations will be covered in this financial year?
1. 289 
2. 290 
3. 291 
4. 292

15)The first Independent India’s budget was presented by? 
1. Morarji Desai 
2. Shankumham chetty 
3. Deshmukh 
4. Nehru

16)Income limit for tax saving Rajiv Gandhi Equity Savings scheme is raised to Rs 12 lakh from?
1. Rs 8 lakh 
2. Rs 9 lakh
3. Rs 10 lakh 
4. Rs 11 lakh

17)Which of the following is true?
1. Rs 532 crore to make post offices part of core banking
2. Proposal to launch inflation indexed bonds or inflation indexed national security certificates to protect savings from inflation
3. India’s first women’s bank as a PSU proposed, Rs 1000 crore working capital announced
4. All the above

18)How much amount is allocated for Drinking water and Sanitation?
1. Rs 80, 194 crore 
2. Rs 81, 194 crore
3. Rs 82, 194 crore 
4. Rs 83, 195 crore

19)In which of the following place an Institute for agricultural Bioteechnology will be set up?
1. Patiala 
2. Ahmedabad
3. Ranchi 
4. Patna

20)As per Economic Survey the India’s economy expected to grow between 6.1% to
1. 6.5% 
2. 6.6% 
3. 6.7% 
4. 6.8%

21)Inflation expected to fall between 6.2% and by March?
1. 6.6% 
2. 6.7% 
3. 6.8% 
4. 6.9%

22)As per survey report, which of the following sector amounted for the largest share?
1. Health 
2. Sports
3. Education 
4. Employment

23)A8ording to survey, the food inflation mainly driven by
1. Cereal Prices 
2. Subsidies 
3. Oil 
4. None of these

24)As per Economic Survey, which of the following is true about Indian Tourism?
1. The Indian tourism sector needs an urgent image makeover and higher investment in infrastructure, including through Public-Private Partnership
2. Global tourist arrivals are expected to increase by 43 million every year on an average from 2010 to 2030.
1. Only 1 correct 
2. Only 2 correct
3. Both correct 
4. Both wrong

25)Which of the following is true as per Economic survey, tabled in the parliament?
1. As per 12th Five Year Plan approach paper, Indias travel and tourism sector is estimated to create 78 jobs per million rupees of investment compared to 45 jobs per million rupees in the manufacturing sector
2. As per Tourism Satellite A8ount (TSA) data 2009-10, the contribution of tourism to Indias GDP was 6.8 per cent (3.7 per cent direct and 3.1 per cent indirect) and its contribution to total employment generation was 10.2 percent
3. At present Indian Tourism has a paltry share of 0.64 per cent in world tourist arrivals
4. All the above

26)Who among the following is the Chief advisor to the Finance Minister?
1. Rangarajan 
2. Raghuram Rajan
3. Kaushik Basu 
4. Shome

27) The Economic Survey says that the Fiscal Deficit in Financial Year 2013, to be contained at? 
1. 5.1% 
2. 5.2% 
3. 5.3% 
4. 5.4%

28)Fiscal Consolidation road map says that deficit at 3% by Financial year?    
1. 2014 
2. 2015 
3. 2016 
4. 2017

ANSWERS:

1) 3 2) 4 3) 3 4) 4 5) 1 6) 3 7) 4 8) 2 9) 4 10) 1 11) 4 12) 4 13) 3  14) 1 15) 2 16) 3 17) 4 18) 1 19) 3 20) 3  21) 1 22) 3 23) 1  24) 3 25) 4 26) 2 27) 3 28) 4

SUMMARY OF ECONOMIC SURVEY 2012-13

Indian economy is likely to grow between 6.1% to 6.7%  in 2013-14 as the downturn is more or less over and the economy is looking up. Following the slowdown induced by the global financial crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6 per cent and 9.3 per cent respectively in 2009-10 and 2010-11, but due to a combination of both external and domestic factors, the economy decelerated growing at 6.2% and an estimated 5% in 2011-12 and 2012-13 respectively. The Economic Survey 2012-13, presented by the Finance Minister Shri P. Chidambaram in the Lok Sabha predicts that the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economy’s outlook for 2013-14. While India’s recent slowdown is partly rooted in external causes, domestic causes are also important. The slowdown in the rate of growth of services in 2011-12 at 8.2%, and particularly in 2012-13 to 6.6 percent from the double-digit growth of the previous six years, contributed significantly to slowdown in the overall growth of the economy, while some slowdown could also be attributed to the lower growth in agriculture and industrial activities. But despite the slowdown, the services sector has shown more resilience to worsening external conditions than agriculture and industry. For improved agricultural growth, the survey underlines the need for stable and consistent policies where markets play an appropriate role, private investment in infrastructure is stepped up, food price, food stock management and food distribution improves, and a predictable trade policy is adopted for agriculture. FDI in retail allowed by the government can pave the way for investment in new technology and marketing of agricultural produce in India. Fast agricultural growth remains vital for jobs, incomes and food security.

The survey points out that the priority for the Government will be to fight high inflation by reducing the fiscal impetus to demand as well as by focusing on incentivizing food production through measures other than price supports. But unlike the previous year, when food inflation was mainly driven by higher protein food prices, this year the pressure has been coming mainly from cereals. On the Balance of Payments and External Position, the survey highlights that with net exports declining, India’s balance of payments has come under pressure. Moreover, in the current fiscal, foreign exchange reserves have fluctuated between US$ 286 billion and US$ 295.6 billion, while the rupee remained volatile in the range of Rs 53.02 to Rs 54.78 per US dollar during October 2012 to January 2013.

The survey had a special chapter focusing on jobs. The future holds promise for India provided we can seize the “demographic dividend” as nearly half the additions to the Indian labour force over the period 2011-30 will be in the age group 30-49. India is creating jobs in industry but mainly in low productivity construction and not enough formal jobs in manufacturing, which typically are higher productivity. The high productivity service sector is also not creating enough jobs. As the number of people looking for jobs rises, both because of the population dividend and because share of agriculture shrinks, these vulnerabilities will become important. Because good jobs are both the pathway to growth as well as the best form of inclusion, India has to think of ways of enabling their creation.

The survey calls for a widening of the tax base, and prioritization of expenditure as key ingredients of a credible medium term fiscal consolidation plan. This along with demand compression and augmented agricultural production should lead to lower inflation, giving the RBI the requisite flexibility to reduce policy rates. Lower interest rates could provide an additional fillip to investment activity for the industry and services sectors, especially if some of the regulatory, bureaucratic, and financial impediments to investment are eased. On financial sector reform, it takes note of the high level of gross NPAs (non-performing assets) of the banking sector which increased from 2.36 percent of the total credit advanced in March 2011 to 3.57 percent of total credit advanced in September 2012. The survey suggests that revival of growth will help contain NPAs, but more attention will have to be paid to whether projects are adequately capitalized up front given the risks. Expenditure on social services also increased considerably in the 12^th Plan, with the education sector accounting for the largest share, followed by health. In the 11^th Plan period nearly 7 lakh crore rupees has been spent on the 15 major flagshipprogrammes. A number of legislative steps have also been taken to secure the rights of people, like the RTI, MGNREGA, the Forest Rights Act, AND THE Right to Education. However, the survey notes that there are pressing governance issues like programme leakages and funds not reaching the targeted beneficiaries that need to be addressed. Direct Benefit Transfer (DBT) with the help of the Unique Identification Number (Aadhaar) can help plug some of these leakages. With the 12^thPlan’s focus on ‘environmental sustainability’, India is on the right track. However, the challenge for India is to make the key drivers and enablers of growth-be it infrastructure, the transportation sector, housing, or sustainable agriculture-grow sustainably.                

            Dr. Raghuram G. Rajan, Chief Economic Adviser, Ministry of Finance writes in an introduction to the Survey that these are difficult times, but India has navigated such times before, and with good policies it will come through stronger. Slowdown is a wake-up call for increasing the pace of actions and reforms. The way out lies in shifting national spending from consumption to investment, removing the bottlenecks to investment, growth, and job creation, in part through structural reforms, combating inflation both through monetary and supply side measures, reducing the costs for borrowers of raising finances and increasing the opportunities for savers to get strong real investment returns.

PM constitutes National Committee on Direct Cash Transfers

The Prime Minister has constituted a coordination committee called the National Committee on Direct Cash Transfers, as a mechanism to coordinate action for the introduction of direct cash transfers to individuals under the various government schemes and programmes.

            The National Committee chaired by the Prime Minister will have as its members eleven Cabinet Ministers, two Ministers of State with independent charge, the Deputy Chairman Planning Commission, the Chairman UIDAI, the Cabinet Secretary with the Principal Secretary to the PM as the convenor. The Prime Minister may invite any other Minister/Officer/Expert to any meeting of the Committee.

The National Committee on Direct Cash Transfers would engage in the following tasks:

a) Provide an overarching vision and direction to enable direct cash transfers of benefits under various government schemes and programmes to individuals, leveraging the investments being made in the Aadhaar Project, financial inclusion and other initiatives of the Government, with the objective of enhancing efficiency, transparency and accountability.

b) Determine broad policy objectives and strategies for direct cash transfers.

c) Identify Government programmes and schemes for which direct cash transfers to individuals can be adopted and suggest the extent and scope of direct cash transfers in each case.

d) Coordinate the activities of various Ministries/ Departments/ Agencies involved in enabling direct cash transfers and ensure timely, coordinated action to ensure speedy rollout of direct cash transfers across the country.

e) Specify timelines for the rollout of direct cash transfers.

f) Review the progress of implementation of direct cash transfers and provide guidance for mid-course corrections.

g) Any other related matter.

 The National Committee on Cash Transfers will be assisted by an Executive Committee on Direct Cash Transfers chaired by the Principal Secretary to PM and the Secretaries of the concerned Ministries and the DG UIDAI. The Secretary Planning Commission will be the convenor.

The Executive Committee on Direct Cash Transfers would engage in the following tasks:

a) Identify and propose for the consideration of the National Committee on Cash Transfers such Government programmes and schemes for which direct cash transfers to individuals can be adopted and suggest the extent and scope of direct cash transfers in each case.

b) Ensure the preparation of and approve strategies and action plans for the speedy rollout of direct cash transfers in areas agreed to and in line with the timelines laid down by the National Committee on Cash Transfers.

c) Coordinate the activities of various Ministries/ Departments / Agencies involved in enabling direct cash transfers to ensure that the architecture and framework for direct cash transfers is in place for rolling out direct cash transfers across the country.

d) Review and monitor the rollout of direct cash transfers and undertake mid-course corrections as and when necessary.

e) Any other related matter entrusted by the National Committee on Cash Transfers or relating to direct cash transfers.

            The Chairman may invite any other Officer/Expert to any meeting of the Executive Committee as may be necessary. The National Committee and the Executive Committee would be serviced by the Planning Commission, which may obtain assistance as required from any Ministry/Department/Agency of the Government in this task. The Planning Commission will designate an officer of the rank of Joint Secretary in the Planning Commission to coordinate and service the work of the National Committee and Executive Committee.

            In order to finalise the operational and implementation details relating to the design and implementation of the direct cash transfer system, and for ensuring a smooth roll-out of direct cash transfers in an orderly and timely fashion, Mission Mode Committees will be constituted.

These will be:

a) Technology Committee to focus on the  technology,  payment architecture and IT issues.

b) Financial Inclusion Committee to focus on ensuring universal access to banking and ensuring complete financial inclusion.

c) Implementation Committees on Electronic Transfer of Benefits at the Ministry/ Department level to work out the details of cash transfers for each department such as data bases, direct cash transfer rules and control and audit mechanisms.

The notifications for these three committees will be issued in due course.

The composition of the National Committee on Direct Cash Transfers is as follows:

1.      Prime Minister                                              -        Chairperson

2.      Finance Minister

3.      Minister of Communications & IT

4.      Minister of Rural Development

5.      Minister of Social Justice & Empowerment

6.      Minister of Human Resource Development

7.      Minister of Tribal Affairs

8.      Minister of Minority Affairs

9.      Minister of Health & Family Welfare

10.    Minister of Labour & Employment

11.    Minister of Petroleum & Natural Gas

12.    Minister of Chemicals & Fertilizers

13.    Deputy Chairman, Planning Commission

14.    Minister of State (i/c) of Food & Public Distribution

15.    Minister of State (i/c) of Women & Child Development

16.    Chairman, UIDAI

17.    Cabinet Secretary

18.    Principal Secretary to PM                                -        Convenor

Shome Panel Report on GAAR

The Government had constituted an Expert Committee on General Anti Avoidance Rules (GAAR) to undertake stakeholder consultations and finalise the GAAR guidelines as well as a roadmap for implementation. The Committee, chaired by Dr. Parthasarathi Shome, has submitted its draft report after analysis of the GAAR provisions and noting the concerns expressed by various shareholders. The draft report has recommended certain amendments in the Income-tax Act, 1961; guidelines to be prescribed under the Income-tax Rules, 1962; circular to clarify GAAR provisions along with illustrations; and other measures to improve tax administration specifically oriented towards GAAR matters. The terms of reference of the Committee are: a) Receive comments from stakeholders and the general public on the draft GAAR guidelines which have been published by the Government on its website. b) Vet and rework the guidelines based on this feedback and publish the second draft of the GAAR guidelines for comments and consultations. c) Undertake widespread consultations on the second draft GAAR guidelines. d) Finalize the GAAR guidelines and a roadmap for implementation and submit these to the government. Highlights of the Recommendations: a) Recommendations for amendments in the Income-tax Act, 1961 • The implementation of GAAR may be deferred by three years on administrative grounds. GAAR is an extremely advanced instrument of tax administration – one of deterrence, rather than for revenue generation – for which intensive training of tax officers, who would specialize in the finer aspects of international taxation, is needed. Hence GAAR should be deferred for 3 years. But the year, 2016-17, should be announced now. In effect, therefore, GAAR would apply from 2017-18. • Abolish the tax on gains arising from transfer of listed securities, whether in the nature of capital gains or business income, to both residents as well as non-residents. • The Act should be amended to provide that only arrangements which have the main purpose (and not one of the main purposes) of obtaining tax benefit should be covered under GAAR. An arrangement shall be deemed to be lacking commercial substance, if it does not have a significant effect upon the business risks, or net cash flows, of any party to the arrangement apart from any effect attributable to the tax benefit that would be obtained.‖ • As regards constitution of the Approving Panel(AP),  the Committee recommends that – The Approving Panel should consist of five members including I. Chairman; II. The Chairman should be a retired judge of the High Court; III. Two members should be from outside Govt. and persons of eminence drawn from the fields of accountancy, economics or business, with knowledge of matters of income-tax; and IV. Two members should be Chief Commissioners of income tax; or one Chief Commissioner and one Commissioner. The Approving Panel should be a permanent body with a secretariat.  It should have a two year term. A decision of the AP should occur by a majority of members. b) Recommendations under Income tax Rules • The GAAR provisions should be subject to an overarching principle that – (1) Tax mitigation should be distinguished from tax avoidance before invoking GAAR. • A monetary threshold of Rs 3 crore of tax benefit (including tax only, and not interest etc) to a taxpayer in a year should be used for the applicability of GAAR provisions. In case of tax deferral, the tax benefit shall be determined based on the present value of money. c) Other recommendations The Committee has made following recommendations in respect of tax administration:- • The administration of Authority for Advance Ruling (AAR) should be strengthened so that an advance ruling may be obtained within the statutory time frame of six months. • Shall not invoke GAAR where the taxpayer submits a satisfactory undertaking to pay tax along with interest in case it is found that GAAR provisions are applicable in relation to the remittance during the course of assessment proceedings; or • To minimize the deficiency of trust between the tax administration and taxpayers, concerted training programmes should be initiated for all AO‘s placed, or to be placed, in the area of international taxation.

BSE joins UN's Sustainable Stock Exchanges global initiative

The Bombay Stock Exchange Ltd (BSE) announced that it has joined the Sustainable Stock Exchanges (SSE) initiative.

The SSE initiative was launched by UN Secretary-General Ban Ki-moon and UNCTAD Secretary-General Supachai Panitchpakdi in 2009 at UN headquarters in New York City.

The BSE has been the first amongst global peers to join five other leading exchanges that have publicly committed to promoting sustainable investment practices.

Other exchanges include the Brazilian stock exchange BM & FBOVESPA, Egyptian Exchange (EGX), Istanbul Stock Exchange (ISE), Johannesburg Stock Exchange (JSE) and NASDAQ OMX made a commitment towards improving sustainability at the Sustainable Stock Exchanges 2012 global dialogue in Rio de Janeiro earlier this year.

BSE is also credited with launching the first-ever live Carbon Index BSE-GREENEX in India, earlier in 2012. The index measures the performances of companies in terms of carbon emissions.

"BSE is committed to working with investors, companies and regulators in playing a transformative role towards enhancing sustainability in Indian capital markets.

The initiative aims at exploring how exchanges can work together with stakeholders to enhance corporate transparency and performance on ESG (environmental, social and corporate governance) issues besides encouraging responsible long-term approaches to investment.

Cabinet likely to approve 12th Five Year Plan (2012-17)

The union cabinet  approve the 12th Five Year Plan (2012-17) that seeks an average annual economic growth of 8.2 percent and identifies infrastructure, health and education as thrust areas.

The growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view of the current slowdown in the economy and adverse international situation.

During the 11th Plan period, the average annual growth was 7.9 percent. A full Planning Commission chaired by Prime Minister Manmohan Singh September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore.

The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period "critical to achieve inclusive growth".

Highlights of 12th Five Year Plan (2012-17):

• Average growth target has been set at 8.2 percent
• Areas of main thrust are-infrastructure, health and education
• Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation.
• During the 11th Plan period, the average annual growth was 7.9 percent
•  A full Planning Commission chaired by Prime Minister Manmohan Singh on September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore
• The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period
• Agriculture in the current plan period grew at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent
• On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population.
•  According to commission Deputy Chairperson Montek Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised.
• The outlay on health would include increased spending in related areas of drinking water and sanitation.
• The commission had accepted Finance Minister P. Chidambaram's suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period
• After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister

Agriculture

Agriculture in the current plan period has grown at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent.

Infrastructure

The document stresses the importance of infrastructure development, especially in the power sector, and removal of bottlenecks for high growth and inclusiveness. It also sets targets for various economic and social sectors relating to poverty alleviation, infant mortality, enrolment ratio and job creation.

Poverty

On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population.

Health and Education

According to commission Deputy Chairperson Montek Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised.

The outlay on health would include increased spending in related areas of drinking water and sanitation.

The commission had accepted Finance Minister P. Chidambaram's suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period.

Direct cash transfers would bring down the government's subsidy burden as the money would go directly to the "genuine" beneficiaries and "plug leakages" in the implementation of these schemes.

After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister.

India ranked 111th in economic freedom list

India ranks very low at 111th position in terms of economic freedom, behind countries like China, Nepal and Bangladesh, a global study has claimed in a worldwide index of 144 nations.

The annual ranking, titled 'Economic Freedom of the World: 2012', is topped by Hong Kong, followed by Singapore, New Zealand, Switzerland (8.24) and Australia in the top-five.

The index has been prepared by Canada-based public policy think-tank, Fraser Institute, in cooperation with independent institutes in 90 nations and territories, and claims to measure the degree to which the policies and institutions of countries support economic freedom.

India's ranking has fallen from 103rd last year, while Hong Kong has retained its top slot, the report said.

Canada is ranked sixth on the list, while others in the top-ten include Bahrain, Mauritius, Finland and Chile. The countries with lowest level of economic freedom are -- Myanmar, Zimbabwe, Republic of Congo and Angola.

India shares its 111th position with two other countries, Iran and Pakistan, while those ranked lower include Guyana, Syria and Nigeria.

India has scored an overall rating of 6.26 in the economic freedom index as against an average global scrore of 6.83.

In the economic freedom index, China is at 107th position with a score of 6.35, Bangladesh at 109th with a score of 6.34 and Nepal is at 110th position (6.33).

The report said that Hong Kong offers the highest level of economic freedom worldwide, with a score of 8.90 out of 10, followed by Singapore (8.69), New Zealand (8.36), Switzerland (8.24), Australia and Canada (each 7.97), Bahrain (7.94), Mauritius (7.90), Finland (7.88) and Chile (7.84).

"Governments around the world embraced heavy-handed regulation and extensive spending in response to the US and European debt crises, reducing economic freedom in the short term and prosperity over the long term," the report noted.

"But the slight increase in this year's worldwide economic freedom score is encouraging. Impressively, all five continents are represented in the global top 10," it added.

The report noted that on an average, the poorest 10 per cent of people in the freest nations are nearly twice as rich as the average population of the least free countries.

Interestingly, the US, which is considered a champion of economic freedom among large industrial nations, continues its protracted decline in the global rankings. This year, the US plunged to its lowest-ever ranking of 18th, after being ranked at as high as second position in 2002.

The decline is attributed to higher spending and borrowing on the part of the US government.

The rankings and scores of other major economies include -Japan (20th), Germany (31st), Korea (37th), France (47th), Italy (83rd), Mexico (91st), Russia (95th) and Brazil (105th).

FDI in multi-brand retail and aviation

India opened its retail, aviation, broadcasting and power sectors to foreign supermarkets on September 14, a major economic reform that has been stalled for months by political gridlock and came as part of a package of measures aimed at reviving growth.
Foreign direct investment (FDI) in India's largely unorganised retail sector will help curb inflationary pressure by easing supply side constraints and revive economic growth, analysts said.
However, some experts have the opinion that it could hamper firms hoping to set up shop in the world's second-most populous country.

key aspects of the policy:
States to decide on implementation
Individual state governments will decide whether to allow foreign supermarket chains to enter. The Congress party-led government hopes this will take the sting out of opposition from regional parties who say the policy will destroy jobs.
Opponents of the reform include Mamata Banerjee, the chief minister of West Bengal and the most powerful ally in Prime Minister Manmohan Singh's government.
FOR: Delhi, Assam, Maharashtra, Andhra Pradesh, Rajasthan, Uttarakhand, Haryana, Jammu & Kashmir, Manipur, Daman & Diu and Dadra and Nagar Haveli are in support of the UPA government’s move.
AGAINST:  Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha have formally stated their opposition.
Sourcing from small companies
Foreign retailers will have to source almost a third of their manufactured and processed goods from industries with a total plant and machinery investment of less than USD 1 million. Supermarket chains will certify compliance with this themselves.
The government will reserve the first right to procure food produce from farmers before companies do, in order to provide stocks for its food subsidy schemes for poor households.
Minimum investments
Foreign retailers will have to invest a minimum of USD 100 million, and put at least half of their total investment into so-called 'back-end' infrastructure, such as warehousing and cold storage facilities.
This requirement has to be met within three years of a retailer setting up shop.
The aim is to meet one of the key justifications for opening the supermarket sector to foreign players -- revamping the country's crumbling infrastructure and unclogging bottlenecks.
The bottlenecks fan inflation, which has proved a major headache for the government and the Reserve Bank of India.
Policymakers argue opening the sector will help ease prices for a country where hundreds of millions live in dire poverty.
Big cities
Foreign retailers will only be allowed to set up shop in cities with a population of more than 1 million. In states where there are no cities with such a big population, individual state governments can choose where to allow foreign chains to open.
Critics of the new retail policy, including from opposition parties and domestic traders, say opening the doors to the likes of Wal-Mart will wipe out the country's small, family-run neighbourhood stores and trigger mass unemployment.
By restricting foreign firms to cities, the government hopes the supermarkets will become accessible to the country's swelling middle class, while protecting the livelihoods of shopkeepers in smaller towns and rural areas.

Indian Economy: FACTBOX
According to the latest Central Statistical Organisation (CSO) data, the Indian economy grew at a sluggish 5.5 percent in the April-June 2012 period as compared to 8 percent in the corresponding quarter of the previous year.
The GDP growth had slumped to a nine-year low of 5.3 percent in the quarter ended March.
The decision to push forward the reform process has come at a time when business sentiments have taken a beating, GDP growth is near decade low, inflation remained stubbornly high and the government was criticised for "policy paralysis".
India an ideal FDI destination
A recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010–2012. India has seen an eightfold increase in its FDI in March 2012.
As per the data, the sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and hardware.
Mauritius, Singapore, US and UK were among the leading sources of FDI for India.
According to Ernst and Young, foreign direct investment in India in 2010 was USD 44.8 billion, and in 2011 experienced an increase of 13 percent to USD 50.8 billion.


FOREIGN DIRECT INVESTMENT IN INDIA

• 51 percent FDI in multi-brand retail

• 49 percent FDI in civil aviation 

• FDI cap in broadcasting raised from 49 percent to 74 percent

• Sale of equities in four PSUs including Hindustan Copper Ltd (9.59 percent), Nalco (12.15 percent), Oil India Ltd (10 percent) and MMTC (9 percent) 

• Foreign investment in power exchanges

• Delhi, Assam, Maharashtra, Andhra Pradesh, Rajasthan, Uttarakhand, Haryana, Jammu & Kashmir, Manipur, Daman & Diu and Dadra and Nagar Haveli are in support of the UPA government’s move

• Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha have formally stated their opposition

GAAR Report submitted by the Shome Committee to the Finanace Ministry

The GAAR report was submitted on 1 September 2012 to the finance minister of India by the Shome Committee constituted by the Central Board of Direct Taxes, after the approval of Prime Minister of India. The committee in its report has tried to create a balance in between the investors being invited to the country and protection of the tax base from tax avoidance and evasion, using aggressive tax planning. The major findings of the GAAR’s committee to create a balance in between the investors and chances of tax avoidance and evasion includes:
1. Tax Evasion, Tax Mitigation and Tax Avoidance
2. Overcharging Principle Applicability of GAAR
3. Monetary Threshold
4. Arm’s Length Test
5. Test to Misuse or Abuse the Provisions of Act
6. Factors for determination of Commercial Substance
7. Grandfathering of existing Investments
8. GAAR will not override the CBDT circular 789 of 2000 with respect to the tax-treaty in between India and Mauritius
9. GAAR will not be applicable at places where so ever anti-avoidance provisions are in existence in the treaty of tax and any type of anti-avoidance rule exists in the Act
10. Impermissible Avoidance arrangements
11. Tax abolition in cases of gains that rises out by the transfer of listed securities
12. Foreign Institutional Investors
13. Corresponding adjustments
14. Implementation of the Onus on the revenue authority
15. Tax Withholding
16. Definition of the term Connected Person
17. Constitution of approval panel
18. Time limit for GAAR provisions
19. AAR to pass ruling within 6 months
20. Prescription of Statutory forms
21. Implementation issue
22. Reporting requirements

The committee in its findings has stated that the GAAR guidelines should be introduced in the country at the time of economic stability. Hence, it has recommended the postponement of its implementation by 3 years. Committee’s recommendation also states about the implementation of the findings with complete spirit and has laid emphasis on transition period of the taxpayers and preparedness of the administrators. To provide clarity on GAAR’s applicability provisions in different situations 27 illustrations were made and are mentioned under different conditions like:
1. Tax Mitigation- GAAR can’t be invoked
2. Tax Avoidance- SAAR is applicable hence GAAR is not invoked
3. Court Approved Amalgamations or demergers
4. Tax Avoidance- GAAR invoked
5. Tax Evasion can directly be dealt of law without invoking the GAAR
Following the Finance Act 2012, the introduction of the General Anti-Avoidance Rules (GAAR) was done into the Income Tax Act, 1961. The committee briefly analysed the provisions of GAAR as per the inputs available from stakeholders and following the recommendations made the amendments in the Act were made for finalization of the guidelines for the Income Tax Rules, 1962.

Shome’s Committee:
The expert committee on GAAR (General Anti-Avoidance Rules) was constituted under the Chairmanship of Dr. Parthasarsthi Shome with members, namely Shri N. Rangachary (Former Chairman of IRDA and CBDT), Dr. Ajay Shah (Prof. NIPFP) and Shri Sunil Gupta (Joint Secretary-Tax Policy and Legislation, Department of Revenue) for undertaking the consultations of stakeholders and finalization of guidelines for GAAR. The main objective of the committee was to get feedbacks from the stakeholders and prepare new guidelines or to amend the previous guidelines after examining the things finely.The committee was constituted by the Central Board of Direct Taxes after being approved by the Prime Minister of India.

The committee formed referred to following terms:
• To receive feedback from both public and stakeholders on the Guideline of GAAR mentioned on the website of Government of India.
• To rework on the guidelines following the feedback received and examining the same and then publish the same in form of second draft
• To find out and finalise, guidelines along with an road-map for implementation of GAAR and submit it to the government

Analysis of the GAAR provisions:
The provisions for the GAAR are mention in Chapter X-A (Section 95 to 102) of the Act. Presented provisions allow the authority of tax, despite of containing anything in the Act with clear declaration on the arrangements made for assesses (estimated value, nature or extent of amount of the fine) that has entered into the impermissible avoidance arrangement to face the consequences with regard to the tax liability determined by the arrangement.

Schemes for Capacity Building and Employment in Rural Areas

Rashtriya Gram Swaraj Yojana (RGSY)

The Rashtriya Gram Swaraj Yojana is a Centrally Sponsored Scheme being implemented by the Ministry of Panchayati Raj with the objective of assisting efforts of the State Governments for training and capacity building of elected representatives of Panchayati Raj Institutions.  Funding of the scheme is applicable only for the non-BRGF districts.  The scheme focuses primarily on providing financial assistance to the States/UTs for Training & Capacity Building of elected representatives (ERs) and functionaries of Panchayati Raj Institutions (PRIs). Assistance is provided for Distance Learning infrastructure for the ERs and Functionaries of the PRIs including Satellite based training infrastructure. In respect of Hill States and States in the North Eastern Region, assistance is also given for capital expenditure on establishment of Panchayat Resource Centres/ Panchayat Bhawans at Block/Gram Panchayat levels. The scheme has a small component of Infrastructure Development under which the construction and renovation of Panchayat Ghars in all the States is funded. The scheme is demand driven in nature and provides for funding on 75:25 sharing basis between the Central and State Governments concerned. Assistance under the Training component is also given to Non-Governmental Organizations (NGOs), where the central assistance may be 100% and such proposals are required to be forwarded with the recommendations of the State Government concerned.

Rural Business Hub (RBH)

Rural Business Hub is aimed to eradicate rural poverty and create employment opportunity in rural India. This initiative would give a fillip to village enterprises that add value to economic activities in rural areas.

There is a steady influx of rural people to urban areas in search of employment and economic opportunity.  Also, there is a wide gap between rural and urban areas in terms of public services like health and education, in the quality of life and levels of income.  This gap is perceived to be widening.  The 73^rd Constitutional Amendment, 1992, has mandated Panchayats as Institutions of Self Government, to plan and implement programmes of economic development and social justice.  Government of India has recognized that Panchayati Raj is the medium to transform rural India 700 million opportunities.  There is also a felt need to ensure that the benefits of rapid economic growth, unleashed through the reforms of the last two decades, need to flow to all sections of society, particularly to rural India.

The Ministry of Panchayati Raj has adopted the goal of "Haat to Hypermarket" as the overarching objective of the Rural Business Hubs (RBH), initiative aimed at moving from more livelihood support to promoting rural prosperity, increasing rural non-farm incomes and augmenting rural employment.  RBHs set up in association with Panchayati Raj Institutions (PRIs) could thus constitute the fulcrum of "inclusive growth" - the theme of the 11^th Plan.

Panchayat Mahila Evam Yuva Shakti Abhiyan (PMEYSA)

In order to address the empowerment of EWRs and EYRs in a systematic, programmatic manner, the Ministry of Panchayati Raj, Govt. of India, has launched a new scheme with the approval of the competent authority in the 11th Five Year Plan.  The objective of PMEYSA is to knit the EWRs in a network and through group action, empower themselves, so that both their participation and representation on local governance issues, improves.  PMEYSA aims at a sustained campaign to build the confidence and capacity of EWRs, so that they get over the institutional, societal and political constraints that prevent them from active participation in rural local self governments.

It is a Central Sector Scheme.  The entire amount is funded by the Ministry of Panchayati Raj for organizing the various activities under this scheme.  Fund is released to the State Panchayati Raj Department in two equal installments in the ratio of 50:50.  The balance amount (second installment of 50%) is released only on furnishing of (1) Utilization certificate in respect of funds released and (2) Audited Statement of account on the expenditure (item-wise) incurred by the State Government/SSC.

Agricultural Development Programmes

S.No.	Agricultural Development Programme	Year of Beginning	Objective/Description
1	Intensive Agriculture Development Program (IADP)	1960	To provide loan , seeds , fertilizer tools to the farmers.
2	Intensive Agriculture Area Program (IAAP)	1964	To develop the special harvest.
3	High Yielding Variety Program (HYVP)	1966	To increase productivity of foodgrains by adopting latest varieties of inputs for crops.
4	Green Revolution	1966	To increase the foodrains , specially food production.
5	Nationalization of 4 banks	1969	To provide loans for agriculture , rural development and other priority sector.
6	Marginal Farmer and Agriculture Labor Agency (MFALA)	1973	For technical and financial assistance to marginal and small farmer and agricultural labor.
7	Small Farmer Development Agency (SFDA)	1974	For technical and financial assistance to small farmers.
8	Farmer Agriculture Service Centres (FASC)	1983	To popularize the use of improved agricultural instruments and tool kits.
9	Comprehensive Crop Insurance Scheme	1985	For insurance of agricultural crops.
10	Agricultural and Rural Debt Relief Scheme (ARDRS)	1990	To exempt bank loans upto Rs. 10,000 of rural artisans and weaver.
11	Intensive Cotton Development Programme (ICDP)	2000	To enhance the production, per unit area through (a) technology transfer, (b) supply of quality seeds, (c) elevating IPM activities/ and (d) providing adequate and timely supply of inputs to the farmers .
12	Minikit Programme for Rice, Wheat & Coarse Cereals	1974	To increase the productivity by popularising the use of newly released hybrid/high yielding varieties and spread the area coverage under location specific high yielding varieties/hybrids.
13	Accelerated Maize Development Programme (AMDP)	1995	To increase maize production and productivity in the country from 10 million tonnes to 11.44 million tonnes and from 1.5 tonnes/hectare to 1.80 tonnes/hectare respectively upto the terminal year of 9th Plan i.e. 2001-2002 (revised).
14	National Pulses Development Project (NPDP)	1986	To increase the production of pulses in the country to achieve self sufficiency.
15	Oil Palm Development Programme (OPDP)	1992	To promote oil palm cultivation in the country.
16	National Oilseeds and Vegetable Oils development Board (NOVOD)	1984	The main functions of the NOVOD Board are very comprehensive and cover the entire gamut of activities associated with the oil seeds and vegetable oil industry including – production, marketing, trade, storage, processing, research and development, financing and advisory role to the formulation of integrated policy and programme of development of oil seeds and vegetable oil.
17	Coconut Development Board	1981	To increase production and productivity of coconut To bring additional area under coconut in potential  non-traditional areas To develop new technologies for product  diversification and by-product utilisation To strengthen mechanism for transfer of technologies To elevate the income level of small and marginal farmers engaged in coconut cultivation. To build up sound information basis for coconut industry and market information To generate ample employment opportunities in the rural sector.
18	Watershed Development Council (WDC)	1983	Central Sector Scheme(HQ Scheme)