Daily Practice Sheet 27 September 2021

Declining Vaccine Efficacy
International Taxation Rules Reform
State Bank of India
India must have at least six banks in top 100 global list: Economic Survey
Auto-Debit Norms
Metal-air Batteries
Dal Lake
‘Clinicopathological Profile of Cancers in India: A Report of the Hospital Based Cancer Registries, 2021’
Group of Ministers (GoMs)
Caste based census in India

Farm Income

Asset monetisation

The government is expecting NMP to collect ₹5.96 trillion by leasing several assets to private players over four years ending 2024-25. It is expected to fetch around ₹0.88 trillion in FY22, ₹1.62 trillion in FY23, ₹1.79 trillion in FY24, and ₹1.678 trillion in FY25.
Capital expenditure jumped to ₹4.39 trillion against the Budget target of ₹4.12 trillion in FY21. For FY22, the government plans to spend ₹5.54 trillion — 34.5 per cent higher than the budgeted amount in FY21.
Also, due to shrinking revenue in FY21, the total borrowing of the government was increased 2.3 times — from ₹7.96-lakh crore to ₹18.49-lakh crore in FY21. However, it is expected to decline to ₹15.07 trillion by FY22.
Due to a steep rise in borrowings and capital expenditure, the fiscal deficit that was expected to be 3.5 per cent of GDP has reached 9.5 per cent in FY21. It would be 6.8 per cent of GDP in FY22 as the economy is showing signs of recovery from the effect of Covid-19.
The elephant in the room is rising debt, projected by the government to reach ₹135. 87 trillion by march 2022. The World Bank is projected that it would increase to 87.5 per cent of GDP at the end of 2021-22 and 89.2 per cent at the end of 2022-23. The increased borrowing has raised the interest burden.
The ratio of interest payment to revenue receipts is projected at an all-time high of 45.3 per cent in FY22. Almost half of the revenue is going towards servicing old debts.

Infrastructure:

According to the Task Force on NIP, India will need to spend $4.5 trillion on infrastructure by 2030 to realise the vision of a $5 trillion economy by 2025

GS 2: IR

Identity-based public policy may not be as effective as one based on a universal list approach. [Reference: The Hindu, Indian Express]
Discuss the water cooperation between India and Nepal. [Reference: The Hindu]

GS 3: Economy

How effective are MSP in doubling farmers income? [Reference: Indian Express]
Critically examine the pitfalls of asset monetisation of PSEs. [Reference: Indian Express]
Will bad bank solve the NPA crisis? [Reference: Business Line]