9 PM Daily Brief -30 June 2016

30-june

Brief of newspaper articles for the day bearing
relevance to Civil Services preparation

What is 9 PM brief?


GS PAPER 2


[1]Heavy military presence in Sri Lanka’s North and East: UN

The Hindu

Issue

  • Concerns raised by the United Nations High Commissioner for Human Rights in the Northern and Eastern Provinces of Sri Lanka.

Key points

  • On the process of the military shifting its structures and resettlement, there is lack of transparency.
  • And the process is increasingly feeding frustration and disenchantment, particularly amongst victims and the IDP [internally-displaced persons] community.
  • The government has not moved fast enough with tangible measures to build confidence among victims and minority communities.
  • There are anxieties that the full promise of governance reform, transitional justice and economic revival, risks stalling or dissipating.

Road ahead

  • According to UN, the international participation would be a necessary guarantee for the credibility, independence and impartiality of the process in the eyes of victims, given the magnitude and complexity of the alleged international crimes.
  • But the Sri Lankan government had repeatedly stated its preference against the involvement of foreign judges.

[2]Cinemas, malls may soon be open 24×7

The Hindu

Context

Union govt. Is considering a new  Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill, 2016 which would enable places like malls, restaurants, banks etc to be open 24 hours and each day in a year.

Analysis

  • This law excludes those factories which have work related to printing, banking insurance, theatres etc.- which are not covered under the Factories Act, 1948.
  • Any other unit employing more than 10 workers will come under this law.
  • Under the law , women will be allowed to work in night shifts if shelter, restroom and transportation is provided.
  • This model bill provides for 5 paid holidays apart from national holidays
  • However, the implementation of this law depends on the state govt. It may chose to implement it, not to implement it or make changes as deemed fit to the law.

Conclusion

By allowing such businesses to remain open 24X7 it is a win-win for both enterprises as well as consumers. Consumers can have round the clock access to the services while enterprises can generate round the clock revenues.

Also, this would help in creation of more skilled jobs and solve the problem of underemployment


GS PAPER 3


[1]Cabinet clears 23.5% hike in pay for Central govt. Staff    +  Prudently ahead

The Hindu                                                                                                                 Indian Express

Issue

  • 7th Pay commision

Highlights of Seventh Pay Commission’s recommendations

  • Minimum pay of Rs 18,000 has been recommended against the existing Rs 7,000 per month
  • Rs 2,25,000 per month is the maximum pay for apex scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level
  • Based on the minimum pay, a fitment factor of 2.57 is being proposed to be applied uniformly for all employees
  • The hikes will come with the August paychecks and be paid with effect from January 1, 2016.
  • The arrears for the six months will be disbursed during the current financial year (2016-17) itself.
  • Compression ratio of 1:3.12 signifies that the pay of a Class I officer on direct recruitment will be three times the pay of an entrant at the lowest level.
  • The rate of annual increment is being retained at 3 per cent
  • The commission has recommended abolishing 52 allowances altogether
  • Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances
  • The total financial impact in the FY 2016-17 is likely to be ₹1,02,100 crore
  • Gratuity ceiling doubled from Rs 10 lakh to Rs 20 lakh and housing loan allowance hiked from Rs 7.5 lakh to Rs 25 lakh
  • Two dates of increments in place of existing one – 1st January and 1st July
  • Ex-gratia lump sum compensation and military service pay increased
  • Existing rates of monthly contribution towards Group Insurance to continue
  • Grade Pay & Pay Band structure to be replaced by Pay Matrix, comprising 19 Levels
  • Total annual burden of pay, pensions and arrears of 7th Pay Commission recommendations stands at Rs 1,02,100 crore.

Analysis

  • The fifth and sixth pay commissions had narrowed the gap between salaries paid in the private and government sector and now the seventh has also  moved further in the same direction.
  • Yet, the hike — at around 14 per cent — is the lowest in 70 years.
  • That the latest pay hikes are much lower than those in the past is welcome.
  • It limits the inflationary impact of the pay revisions.
  • The government should be commended for not falling prey to  populism especially at a time when the consumer price inflation remains high.
  • As a result, the increased payout is expected to bump up overall growth, by placing more money in the hands of the consumers, but will also have a relatively mild impact on the overall inflation. However, the total additional outgo of over Rs 1 lakh crore, around 0.7 per cent of the GDP, will have an impact on the fiscal deficit for the current financial year.
  • The only way for the government to hold on to its promise of meeting fiscal deficit targets is to compromise on the capital expenditure.
  • The government faces a tough choice: It cannot afford to increase salaries and pensions, which are part of the revenue expenditure, without either reducing the capital expenditure, which is important to promote growth, or taking a hit on the fiscal deficit.

Road ahead

  • Concerns about the affordability of such pay hikes, especially during a period of economic stress, should not be divorced from the long-ignored need for a more efficient and accountable workforce.

[2]Centre buffing package for leather sector to boost jobs

The Hindu

Issue

  • The Government is considering a special package to boost leather industry.

Key points

  • India accounts for about 10 per cent of the world’s leather production, and is the world’s second largest producer of leather garments and footwear.
  • Despite advantages of low cost of labour and production, India faces major competition in overseas markets from countries such as China.
  • The Centre is planning a special package, incorporating labour reforms, subsidies and duty incentives, for the leather sector to boost investment, jobs and exports.
  • The package may include higher subsidy for setting up of mega leather clusters to create world-class infrastructure, and for upgradation or installation of Common Effluent Treatment Plants.
  • Now there is huge interest from buyers in America and they want to give large orders, for which we need to set up larger factories with more machinery like in China to increase our output.
  • So, this package will give the much needed boost to the sector.

[3]Private firms can now bid for mine permits

The Hindu

Context

Union government has approved the National Mineral Exploration Policy which allows the auctioning of exploration permits to private sector.

Analysis

  • With this policy, private players will be allowed exploration of minerals on the basis of a revenue sharing model.
  • Even earlier also private players were allowed in exploration of minerals but the blocks were allotted administratively to them and not auctioned. Thus, many a times the blocks went to those who might not be able to exploit them fully.
  • In the first phase , 100 blocks identified by Geological Survey of India would be open for auctioning. A bidder quoting the minimum revenue share would win the block

Conclusion

This move will help boost India’s mineral exploration which is in a poor state right now. Only 10% of the total 8 lakh square km area has been explored. Also, auctioning the blocks would mean that better revenue is appropriated and better players come up for exploration.

 

 


Comments

4 responses to “9 PM Daily Brief -30 June 2016”

  1. Krishna Avatar
    Krishna

    Yes bro. Thanks a lot. Forum IAS. Keep it up

  2. Thank You,
    We are glad you think this way. We will always strive harder to improve ourselves every passing day 🙂

  3. Rudraa Kumar Avatar
    Rudraa Kumar

    Totally agree with u.?

  4. gc reddy Avatar
    gc reddy

    Your daily current affairs is better than that provided by insights or other websites. Keep it up. I hope you format it better, provide better analysis/background and continue the good work so that this becomes the preferred choice for people looking for daily current affairs updates.

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