Daily Quiz: UPSC Prelims Marathon – November 27, 2018

Macroeconomic Vulnerability Index which adds up rate of inflation, current account deficit and  fiscal deficit of a country is quite helpful in comparing countries across years. In developing countries the MVI is determined by various structural conditions which expose an economy to financial shocks. There are broadly two approaches to understand Macroeconomic vulnerability of a country.

The sequence of these decreasing order of Liquidity is:

1. Currency
2. Demand deposits with the banks
3. Savings deposits with the banks
4. Time deposits with the banks

Direct tax is a tax directly payed by an individual or organistion to the imposing entity. Example of direct tax are-

1. Corporation
2. Tax
3. Securities transaction  
4. Banking cash transaction  
5. Fringe benefits tax
6. Wealth tax
7. Interest tax.

Fringe benefit tax is applied to employees, for the expense made for providing services to the employees, which cannot otherwise accounted individually Interest tax is direct tax imposed on interest accrued in specific cases. However, it was abolished in March 2000. Securities transaction tax is a tax applied in the transaction of stock market, during a transaction. It’s applied both on buyers as well as seller. Indirect taxes are levied on entity such as seller and paid by another such as tax paid by the buyer in a retail setting. Examples of Indirect tax – 1. Union Excise duty 2. Custom duty 3. Service tax

An economy in which no activity is conducted with outside economics. A closed economy is self-sufficient , meaning that no imports are brought in and no exportsare sent out. The goal is to provide consumers with everything that they need from within the economy’s borders. A  closed economy is the opposite of an open economy, in which a country will conduct trade with outside regions.

Soil Health Card scheme was launched in 2015 in Rajasthan. The card informs farmers about nutrients status of the soils along with the recommendation on appropriate dosage of nutrients to improve soil health and fertility.  The card will be issued once in every 3 years to a farm so that nutrients deficiency can be regularly detected and improved. This scheme is being implemented in collaboration with State Governments with 50:50 fund sharing pattern.

Against the backdrop of robust macro-economic stability, the year 2016was marked by two major domestic policy developments, the passage of the Constitutional amendment, paving the way for implementing the transformational Goods and Services Tax (GST), and the action to demonetise the two highest denomination notes. The GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth; it is also a bold new experiment in the governance of India’s cooperative federalism.

The Ministry of Railways had appointed a High Level Safety Review Committee under the chairmanship of Dr. Anil Kakodkar to review the safety of the Indian Railways and recommend improvements. Ratan Tata head Indian Railways’ innovation committee. The Ministry has set aside a sum of Rs 50 crore for providing innovation grants to employees, start-ups and growth oriented small businesses to support internal and external innovation. The initiative would be administered by an Innovation Committee comprising reputed investors, representatives from National Academy of Indian Railways, Railway Board and ‘Kayakalp’ headed by Ratan Tata. A program management structure will be put in place to manage this initiative.