(FREE) UPSC Current Affairs 2024 PDF

Current Affairs for IAS Exams - 01 June 2014

Focus of Budget 2014

Union Finance Minister Arun Mr. Jaitley has begun budget meetings with Ministry officials ahead of his first budget likely to be presented to Parliament in July.
The UPA government’s interim budget estimates presented in Parliament in February had put the Centre’s total borrowings requirement for 2014-15 at Rs. 5,96,083 crore or 4.6 per cent of the Gross Domestic Product (GDP).
Interest payments on borrowings to fund past expenditure were estimated at Rs 4,27,011 crore or 43.3 per cent of the total tax revenues. Subsidies were estimated at Rs. 2,55,708 crore or 26 per cent of the budgeted tax revenues.
In fact, the UPA government’s interim budget estimates showed that 80 per cent of the Centre’s net tax revenues would go towards interest payments, subsidies and pensions of government employees. In other words, the Interim budget estimates provide barely 20 per cent of the tax revenues for spending on governance and development by the new government.

The Reserve Bank of India’s credit policy review, will be the first after the new government has taken charge. It is also the second bi-monthly policy for the current year (2014-15). The RBI has switched to the system of reviewing credit policy once in two months from the earlier once in 45 days or so following the recommendation recommendation of the Urjit Patel committee.
Fortunately, very few expect the government to interfere, certainly not so soon after taking office. Moreover, there has been a positive message from the meeting RBI Governor Raghuram Rajan had with new Finance Minister Arun Jaitley on May26. In this very first meeting with a senior government official, Mr. Jaitley has listed out his priorities — price stability, stimulate growth and fiscal consolidation — and said he is keenly aware of the need to do a tough balancing act in reconciling the several policy oblectives.
India’s inflation problems are structural in nature. The RBI cannot influence supply-side factors, which are responsible for food inflation. Supply side pressures on prices will be felt when investment picks up consequent on the new government’s initiatives.
Balance sheet problems of public sector banks are another reason standing in the way of lower interest rates. The combination of bad and restructured loans means little room for banks to lower interest rates.
The policy document will stress the obvious point that inflation is a problem for the government and the RBI.

A top Chinese Army General slammed the United States and Japan for “provoking” China, a day after U.S. Defence Secretary Chuck Hagel had accused Beijing of “destabilising” the region.
At the conference, Japanese Prime Minister Shinzo Abe also hit out at China over the disputes, pledging support to Vietnam and the Philippines. Mr. Abe said Japan would supply naval patrol vessels to both countries and boost its security presence in the region.
People’s Liberation Army Deputy Chief of General Staff Wang Guanzhong blasted Mr. Hagel and Mr. Abe, saying they were “singing notes in chorus”.
The PLA official was particularly aggrieved by the Japanese leader’s speech, which did not directly mention China but warned of “elements that spawn instability” in the region.

President Barack Obama is welcoming the release of the lone U.S. solider held in Afghanistan, Sgt. Bowe Bergdahl.
Sgt. Bergdahl was turned over by the Taliban in exchange for the release of five Afghan detainees who were held at the U.S. prison at Guantanamo Bay, Cuba.
Mr. Obama says the U.S. “does not ever leave our men and women in uniform behind.”

People belonging to the economically-weaker sections in Egypt may soon reap the benefits of a welfare model like the Amma Canteen, if Mr. Rezk(from Egypt) and his team carry their inspiration home.
Amma Canteens sell idli for Re. 1 , sambar rice, pongal and curry leaf rice for Rs. 5, and curd rice for Rs. 3.
The team visited Amma Canteens in the city and studied various aspects pertaining to the facilities.
The officials will recommend adoption of the scheme in Egypt shortly.
The U.S. uses food stamps for the welfare of the poor, but this facility is way better, Mr. Rezk added.

Secret payments of more than $5 million to key football officials won Qatar the needed numbers in the executive committee (Exco) of the Fédération Internationale de Football Association (FIFA) to host the World Cup in 2022.
A special investigation reveals that “millions of documents” leaked by a FIFA insider to the newspaper “expose how Qatar’s astonishing victory in the race to secure the right to host the 2022 tournament was sealed by a covert campaign by Mohammad bin Hammam, the country’s top football official.”
At the centre of this scandal is Mohammad bin Hammam, a Qatari construction billionaire and football official, who plotted and funded the operation that won Qatar the bid.
Mr. Bin Hammam is accused of hosting lavish parties and junkets for the African football association presidents; putting £ 1.6 m into the bank account of the Exco member from Trinidad and Tobago; making payments to the Oceania Exco member; and channelling FIFA funds to the football association of Ivory Coast in return for that country’s Exco member’s support for Qatar.