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)

Various Development Programmes

S.No.	Development Programmes	Year of Beginning	Objective/Description
1	Housing and Urban Development Corporation	1970	Loans for the development of housing and provision of resources for technical assistance.
2	Members of Parliament Local Area Development Scheme (MPLADS)	1993	To sanction Rs. 1 Crore per year to every member of Parliament for various development works in their respective areas through DM districts.
3	Scheme for Infrastructural Development in Mega Cities (SIDMC)	1993	To provide capital through special institutions for water supply, sewage, , drainage, urban
4	Scheme of Integrated Development of Small and Medium Towns	Sixth five year plan	To provide resources and create employment in small and medium towns for for prohibiting the migration of population from rural areas to big cities.
5	District Rural Development Agency (DRDA)	1993	To provide financial assistance for rural development.
6	National Slum Development Programme	1996	Development of Urban Slums.
7	Integrated Rural Development Programme (IRDP)	1980	All-round development of the rural poor through a program of asset endowment for self employment.
8	Development of Women and Children in Rural Areas (DWCRA)	1982	To provide suitable opportunities of self employment to the women belonging to the rural families who are living below the poverty line.

National Health Programmes In India

S.No.	National Health Programmes	Year of Beginning	Objective/Description
1	National Cancer Control Programme	1975	Primary prevention of cancers by health education regarding hazards of tobacco consumption and necessity of genital hygiene for prevention of cervical cancer, etc.
2	National Program of Health Care for the Elderly (NPHCE)	2010	To provide preventive, curative and rehabilitative services to the elderly persons at various level of health care delivery system of the country, etc.
3	National Program for Prevention and Control of Deafness (NPPCD)	----	To prevent the avoidable hearing loss on account of disease or injury, etc.
4	District Mental Health Program (NMHP)	1982	To ensure availability and accessibility of minimum mental health care for all in the foreseeable future, particularly to the most vulnerable and underprivileged sections of population.
5	National Cancer Registry Programme	1982	To provide true information on cancer prevalence and incidence.
6	National Tobacco Control Program	2007	Preventing the initiation of smoking among young people, educating, motivating and assisting smokers to quit smoking, etc.
7	National Leprosy Eradication Program	started in 1955, launched in 1983	To arrest the disease activity in all the known cases of leprosy.
8	Universal Immunization Program (UIP)	1985	To achieve self-sufficiency in vaccine production and the manufacture of cold-chain equipment for storage purpose, etc.
9	National Vector Borne Disease Control Program	----	For the prevention and control of vector borne diseases

Eradication Of Child Labor Programmes

S.No.	Child Labor Programme	Year of Beginning	Objective/Description
1	Child Labor Eradication Programme	1994	To shift child labor from hazardous industried to schools.
2	National Authority for the Elimination of Child Labour (NAECL)	1994	Laying down the policies and programs for the elimination of child labour, especially in the hazardous industries, etc.
3	National Child Labour Project Scheme (NCLP)	1998	Establishment of special schools for child labour who are withdrawn from work.
4	Education Department and District Primary Education Program (DPEP)	1994	To revitalise the primary education system and to achieve the objective of universalisation of primary education for young children.
5	International Programme for Elimination of Child Labor (IPEC)	1991	To contribute to the effective abolition of child labor in India
6	National Commission for the Protection of Child Rights (NCPCR)	2007	To protect, promote and defend child rights in the country.
7	National Policy on Child Labour	1987	General development programmes benefiting children wherever possible. Project-based approach in the areas of high concentration of child labourers.

Women Empowerment Programmes

S.No.	Women Empowerment Programmes	Location	Year Of Estb.
1	Support to Training and employment Programme for Women (STEP)	2003-04	To increase the self-reliance and autonomy of women by enhancing their productivity and enabling them to take up income generaion activities.
2	Rashtriya Mahila Kosh (RMK)	1993	To promote or undertake activities for the promotion of or to provide credit as an instrument of socio- economic change and development through the provision of a package of financial and social development services for the development of women.
3	Rashtriya Mahila Kosh	1993	To facilitate credit support or micro-finance to poor women to start income generating activities such as dairy, agriculture, shop-keeping, vending, handicrafts etc.
4	Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG) – ‘Sabla’	2010	It aims at empowering Adolescent girls of 11 to 18 years by improving their nutritional and health status, up gradation of home skills, life skills and vocational skills.
5	Central Social Welfare Board (CSWB)	1953	To promote social welfare activities and implementing welfare programmes for women and children through voluntary organizations.
6	Rashtriya Mahila Kosh - (National Credit Fund for Women)	1993	It extends micro-finance services through a client friendly and hassle-free loaning mechanism for livelihood activities, housing, micro-enterprises, family needs, etc to bring about the socio-economic upliftment of poor women.
7	Indira Gandhi Matritva Sahyog Yojana (IGMSY)	----	To improve the health and nutrition status of pregnant, lactating women and infants
8	SwayamSiddha	2001	At organizing women into Self-Help Groups to form a strong institutional base.
9	Short Stay Home for Women and Girls (SSH)	1969	To provide temporary shelter to women and girls who are in social and moral danger due to family problems, mental strain, violence at home, social ostracism, exploitation and other causes.
10	Swadhar	1995	To support women to become independent in spirit, in thought, in action and have full control over their lives rather than be the victim of others actions.
11	Support to Training and Employment Programme for Women (STEP)	1986	To mobilise women in small viable groups and make facililies available through training and access to credit, to plovide training for skill upgradation, etc.
12	Development of Women and Children in Rural Areas (DWCRA)	1982	To improve the socio-economic status of the poor women in the rural areas through creation of groups of women for income-generating activities on a self-sustaining basis. The
13	Tamil Nadu Corporation for Development of Women	1983	Aims at the socio-economic empowerment of women

Employment Generation Programmes

S.No.	Employment Generation Programme	Year of Beginning	Objective/Description
1	Employment Guarantee Scheme of Maharashtra	1972	To assist the economically weaker sections of the rural society.
2	Crash Scheme for Rural Employmement (CSRE)	1972	For rural employment
3	Training Rural Youth for Self-Employment (TRYSEM)	1979	Program for Trainingrural youth for self employment.
4	Integrated Rural Development Programme (IRDP)	1980	All-round development of the rural poor through a program of asset endowment for self employment.
5	National Rural Employment Program (NREP)	1980	To provide profitable employment opportunities to the rural poor.
6	Rural Landless Employment Guarantee Program (RLEGP)	1983	For providing employment to landless farmers and laborers.
7	Self-employment to the Educated Unemployed Youth (SEEUY)	1983	To provide financial and technical assistance for self-employment.
8	Self-Employment programme for Urban Poor (SEPUP)	1986	To provide self employment to urban poor through provision of subsidy and bank credit.
9	Jawahar Rozgar Yojana	1989	For providing employment to rural unemployed.
10	Nehru Rozgar Yojana	1989	For providing employment to urban unemployed.
11	Scheme of Urban Wage Employment (SUWE)	1990	To provide wages employment after arranging the basic facilities for poor people in the urban areas where population is less than one lakh.
12	Employment Assurance Scheme (EAS)	1993	To provide employment of at least 100 days in a year in village.
13	Swarnajayanti Shahari Rozgar Yojana (SJSRY)	1997	To provide gainful employment to urban unemployed and under employed poor through self employment or wage employment.
14	Swarna Jayanti Gram Swarozgar Yojana (SYGSY)	1999	For eliminating rural poverty and unemployment and promoting self employment.
15	Jai Prakash Narayan Rojgar Guarantee Yojana (JPNRGY)	Proposed in 2002-03 budget	Employment guarantee in most poor distt.
16	National Rural Employment Guarantee Scheme	2006	To provide atleast 100 days wage employment in rural areas.
17	Sampoorna Grameen Rozgar Yojana	2001	To provide wage employment and food security in rural areas and also to create durable economic ans social assets.
18	Food for Work Programme	2001	To give food thrugh wage employment in the drought affected areas in eight states. Wages are paid by the state governments partly in cash and partly in foodgrains.
19	Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)	2005	To create a right based framework for wage employment programmes and makes the government legally bound to provide employment to those who seek it.
20	Prime Minister’s Employment Generation Programme (PMEGP)	2008	To generate employment opportunities in rural as well as urban areas through setting up of new self-employment ventures/projects/micro enterprises.

Child Welfare Programmes

S.No.	Child Welfare Programmes	Year of Beginning	Objectives/Description
1	Integrated Child Development Services (ICDS)	1975	It is aimed at enhancing the health, nutrition and learning opportunities of infants, young children (O-6 years) and their mothers.
2	Creche Scheme for the children of working mothers	2006	Overall development of children, childhood protection, complete immunisation, awareness generation among parents on malnutrition, health and education.
3	Reproductive and Child Health Programme	1951	To provide quality Integrated and sustainable Primary Health Care services to the women in the reproductive age group and young children and special focus on family planning and Immunisation.
4	Pulse Polio Immunization Programme	1995	To eradicate poliomyelitis (polio) in India by vaccinating all children under the age of five years against polio virus.
5	Sarva Shiksha Abhiyan	2001	All children in school, Education Guarantee Centre, Alternate School, ' Back-to-School' camp by 2003; all children complete five years of primary schooling by 2007 ; all children complete eight years of elementary schooling by 2010 ; focus on elementary education of satisfactory quality with emphasis on education for life ; bridge all gender and social category gaps at primary stage by 2007 and at elementary education level by 2010 ; universal retention by 2010
6	Kasturba Gandhi Balika Vidyalaya	2004	To ensure access and quality education to the girls of disadvantaged groups of society by setting up residential schools with boarding facilities at elementary level.
7	Mid-day meal Scheme	1995	Improving the nutritional status of children in classes I – VIII in Government, Local Body and Government aided schools, and EGS and AIE centres.Encouraging poor children, belonging to disadvantaged sections, to attend school more regularly and help them concentrate on classroom activities. Providing nutritional support to children of primary stage in drought-affected areas during summer vacation.
8	Integrated programme for Street Children	1993	Provisions for shelter, nutrition, health care, sanitation and hygiene, safe drinking water, education and recreational facilities and protection against abuse and exploitation to destitute and neglected street children.
9	The National Rural Health Mission	2005	Reduction in child and maternal mortality, universal access to public services for food and nutrition , sanitation and hygiene and universal access to public health care services with emphasis on services addressing women's and children's health universal immunization, etc.

Anti Poverty Programmes

S.No.	Anti Poverty Programmes	Year of Beginning	Objective/Description
1	Antodaya Yojana	1977	To make the poorest families of the village economically independent (only in Rajasthan)
2	Swarnajayanti Gram Swarozgar Yojana (SGSY)	1999	Assistance is given to the poor families living below the poverty line in rural areas for taking up self employment.
4	Sampoorna Gramin Rozgar Yojana (SGRY)	2001	Providing gainful employment for the rural poor.
6	Employment Assurance Scheme	1993	To provide gainful employment during the lean agricultural season in manual work to all able bodied adults in rural areas who are in need and desirous of work, but can not find it..
7	Pradhanmantri Gramodaya Yojana (PMGY)	2000	Focus on village level development in 5 critical areas, i.e. primary health, primary education, housing, rural roads and drinking water and nutrition with the overall objective of improving the quality of life of people in rural areas.
8	National Rural Employment Guarantee Scheme (NREGS)	2006	To provide legal guarantee for 100 days of wage employment to every household in the rural areas of the country each year, To combine the twin goals of providing employment and asset creation in rural areas
9	Swarnajayanti Shahari Rozgar Yojana (SJRY)	1997	It seeks to provide employment to the urban unemployed lying below poverty line and educate upto IX standard through encouraging the setting up of self employment ventures or provision of wage employment.
10	Antidaya Anna Yojana	2000	It aims at providing food securities to poor families.
11	National Housing Bank Voluntary Deposit Scheme	1991	To utilize black money for constructing low cost housing for the poor.
12	Integrated Rural Development Programme (IRDP)	1980	All Round development of the rural poor through a program of asset endowment for self employment.
13	Development of Women and Chidren in Rural Areas (DWCRA)	1982	To provide suitable opportunities of self employment to the women belonging to the rural families who are living below the poverty line.
14	National Social Assistance Programme	1995	To assist people living below the poverty line.
15	Jan Shree Bima Yojana	2000	Providing insurance security to people below poverty line.
16	Jai Prakash Narayan Rojgar Guarantee Yojana	Proposed in 2002-03 budget	Employment Guarantee in most poor districts.
17	Shiksha Sahyog Yojana	2001	Education of Children below poverty line.

A.P. SOCIO ECONOMIC SURVEY 2011-12

INDIAN ECONOMY PRACTICE QUESTIONS

1. As per advance estimates of CSO for the year 2011-12, the GDP growth rate has been estimated at—

(A) 7.6%
(B) 6.9%
(C) 6.4%      
(D) 6.1%

2. The primary sector growth in advance estimate for 2011-12 was2.5% which was......in 2010-11 (Quick Estimates).

(A) 5.4%
(B) 6.4%
(C) 7.0%       
(D) 7.3%

3. 'Sensitive Sector' as defined by RBI includes—

(A) Capital Market
(B) Real Estate
(C) Commodities
(D) All of the above

4. PMEAC has revised its GDP growth estimates for 2011-12 to 7-1% and projected GDP growth for 2012-13 at—

(A) 7-0%-7-4%
(B) 7-5%-8-0%
(C) 8-l%-8-3%
(D) 8-5%

5. The newly launched CPI-based inflation for January 2012 on point to point basis is 7-65%. This inflation has the base year—

(A) 2004
(B) 2006
(C) 2008       
(D) 2010

6. The new Chairman of FICCI (Federation of Indian Chambers of Commerce and Industry) who took charge in January 2012 is—

(A) Harsh Mariwala
(B) R.V.Kanoria
(C) Naina Lai Kidwai
(D) Siddharth Birla

7. As per advance estimates of CSO, the estimated growth rate in tertiary (service) sector for 2011-12 is—

(A) 8-6%
(B) 9-0%
(C) 9-4%      
(D) 9-8%

8. Which of the following sector show the negative growth in the advance estimates of CSO for the year 2011-12 ?

(A) Mining and Quarrying
(B) Agriculture and Fisheries
(C) Manufacturing
(D) Electricity, Gas and Water supply

9. Which organisation is meant to ensure exports from India ?

(A) EXIMBank
(B) ECGC
(C) Ministry of Commerce
(D) None of the above

10. Which of the following is considered lending for promotion of exports ?

(A) Packing Credit
(B) Overdraft
(C) Cash Credit Account
(D) Bill Discounting

11. Which of the major port in India celebrated its Golden Jubilee in January 2012 ?

(A) Kolkata/Haldia Port
(B) ParadeepPort
(C) Vishakhapatnam Port
(D) KandlaPort

12. As per India State of Forest Report 2011, the State having the maximum forest area is—

(A) Arunachal Pradesh
(B) Rajasthan
(C) Madhya Pradesh
(D) Uttar Pradesh

13. India State of Forest Report 2011 puts forest area in the country at—

(A) Below 25%
(B) Between 25% and 27%
(C) Between 27% to 30%
(D) Above 30%

14. At the end-December 2011, the teledensity in the country stood at—

(A) 72.38%
(B) 76.86%
(C) 79.03%
(D) 80.76%

15. As per the changed import duty structure on gold and silver, the import duty on gold and silver will be charged at.................respectively of the value of the imported metal.

(A) 1.5% and 5%
(B) 2.0% and 6%
(C) 1.5% and 6%
(D) 2.5% and 6%

16. As per the status of end-December 2011, which of the following company holds the maximum share in telephone services ?

(A) Vodafone
(B) BhartiAirtel
(C) Reliance
(D) BSNL

17. Which type of bank account can be opened by a Non-Resident Indian (NRI) in India ?

(A) Current Account
(B) Fixed Deposit Account
(C) Savings Account
(D) Locker Account

18. 'HUNGAMA' report of Nandi Foundation is related to—

(A) Hunger and Malnutrition
(B) 2-G Spectrum Scam
(C) Tax-evasion
(D) Black Money deposited in foreign banks

19. 'Trust Card' has been launched by an organisation to make consumer's payment more easier. The organisation is—

(A) Delhi Metro
(B) ICERT
(C) BSNL
(D) BhartiAirtel

20. The Sixth Economic Census of commercial units was/will be done in the year—

(A) 2011
(B) 2012
(C) 2013       
(D) 2014

21. As per the HUNGAMA report, the percentage of underweight (malnourished) children younger than five years in India is—

(A) 65%
(B) 54%
(C) 42%
(D) 31%

22. As per the second advance foodgrains estimates for 2011-12, foodgrains production during 2011-12 is estimated at—

(A) 246-46 MT
(B) 250-42 MT
(C) 254-68 MT
(D) 262-32 MT

23. As per final estimates, wheat and rice production in 2010-11 stood at—

(A) 86-87 MT and 95-98 MT respectively
(B) 95-98 MT and 86-87 MT respectively
(C) 88-31 MT and 102-75 MT respectively
(D) 86-87 MT and 102-75 MT respectively

24. The Fourth Rail Coach Manufacturing Factory (The first in India to be built on PPP model) is being made in—

(A) Andhra Pradesh
(B) Kerala
(C) Karnataka
(D) Tamil Nadu

25. In which of the following currencies, India has decided to make payment to buy crude oil from Iran ?

(A) US Dollar
(B) Indian Rupee
(C) Pound Sterling
(D) Euro

Answers

1.  (B) 2.  (C) 3.  (D) 4.  (B) 5.  (D)
6.  (B) 7.  (C) 8.  (A) 9.  (B) 10. (A)
11. (B) 12. (C) 13. (A) 14. (B) 15. (C)
16. (B) 17. (B) 18. (A) 19. (C) 20. (B)
21. (C) 22. (B) 23. (A) 24. (B) 25. (B)

INDIA CENSUS REPORT

ANDHRA PRADESH CENSUS REPORT

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