Current Affairs for IAS Exams – 25 December 2016

:: National ::

PM assures more tough decision for growth

• The government will not shy away from difficult decisions such as demonetisation, PM said brushing aside criticism by saying it was an acknowledgement of the rapid pace of growth and development under the NDA 's watch.

• The Prime Minister's re-marks assume significance following a spurt in criticismof the Centre's demonetisation policy, particularly from leading global publications such as The Economist, The Wall Street Journal and Forbes.

• Mr. Modi also assured the nation that the pain of the honest Indian would ease at the end of the 50-day period after the demonetisation drive and problems of the corrupt would increase.

• The Prime Minister said the country was ready and with him to take the battle against corruption and black money to a decisive end. Mr. Modi urged the corrupt to come back to the fold of normal life and lead a life of “peace and dignity.”

• Dismissing criticism, Mr. Modi said that while developed as well as emerging markets were facing a slow-down, India remains a bright spot and its growth is projected to remain among the highest in the world.

Chief of Army staff reviewed the situation in Manipur

• The Chief of the Army Staff, General Dalbir Singh, reviewed the security situation in strife-torn Manipur during a visit to North-east India.

• Gen. Singh was informed about the volatile situation in the State in the wake of a pro-longed economic blockade enforced by the United Naga Council, throwing life out of gear.

• The blockade is in protest against the State government’s decision to create new districts.

• Gen. Singh., who demits office at the end of December, visited Assam to review the security situation.

• Mr. Rijiju assured Chief Minister OkramIbobi Singh that all possible assistance will be extended to Manipur.

• The Minister said 150 companies of Central police forces had been deployed in the State to maintain law and order and another seven additional companies were be-ing sent.

PM says country has moved forward very fast (Register and Login to read Full News)

:: International ::

UNSC vote against settlements in Palestinian territory

• Israel scrambled to contain the fallout from the UN Security Council vote to halt settlements in Palestinian territory after lashing out at U.S. President Barack Obama over the “shameful” resolution.

• The council passed the measure on Friday after the United States abstained, enabling the adoption of the first UN resolution since 1979 to condemn Israel over its settlement policy.

• By deciding not to veto the move, the U.S. took a rare step that deeply angered Israel, which accused Obama of abandoning its closest West Asia ally in the waning days of his administration.

• The text was passed with support from all remaining members of the 15-member council, with applause breaking out in the chamber.

• The landmark vote came despite intense lobbying efforts by Israel and calls from U.S. President-elect Donald Trump to block the text.

• While the resolution contains no sanctions, Israel is concerned it couldwiden the possibility of prosecution at the International Criminal Court (ICC).

• They are also worried it could encourage some countries to impose sanctions against Israeli settlers and products produced in the settlements.

• The U.S. has traditionally served as Israel's diplomatic shield, protecting it from resolutions it opposes. But the Obama administration has grown frustrated with settlement-building in the WestBank, which Israel hasoccupied for nearly 50 years.

• Settlements are built on land the Palestinians view as part of their future state and seen as illegal under international law.

:: Business and Economy ::

PM says Low taxes from financial market

• PM flagged low taxes paid by those who profit from financial markets, some of which could be on account of illegal activities and fraud, and a perception that derivatives instruments for managing risks are, in fact, dominating the market direction.

• Mr. Modi said, “Those who profit from financial markets must make a fair contribution to nation-building through taxes. For various reasons, the tax contribution from those who make money from the markets is low.”

• Apart from fraud, Mr. Modi said that the structure of tax laws that allow low or zero tax rates for certain types of financial income may also be responsible for market participants' low contribution to the ex-chequer and said there was a need to review this situation in a fair and transparent way.

• He also urged the SEBI to work on linking the spot agriculture markets with the commodity futures that are now under its watch so that derivatives become useful for farmers as well.

• For perception that derivatives are dominating the markets, the Mr. Modi said this was akin to the “tail wagging the dog” and asked the SEBI to ensure its focus remains on providing capital for projects that benefit the vast majority of population.

• “Today, most of our infra-structure projects are financed by the govt or through banks. The use of capital markets for financing infra projects is rare. For infra projects to succeed, it is necessary to get borrowings of long-term nature,” PM said.

• He also asked the Department of Economic Affairs and the SEBI to target the issuance of municipal bonds by at least ten cities in a year's time, to finance Smart City projects.

PM says demonetisation will help people switch from dead assets to financial markets (Register and Login to read Full News)

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