Optimize IAS
  • Home
  • About Us
  • Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Friday Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
    • Public Administration Answer Writing
    • LAQSHYA 2021 OPTIMA – Daily Net Practice
  • PROVEN STRATEGY
    • Prelims Strategy
    • Mains Strategy
    • Interview Strategy
    • Sunday Success Sutra
  • LAQSHYA 2021 OPTIMA
  • Resources
    • DPS Compilation
    • DPN Compilation
    • Friday Factly Compilation
    • Sunday Essay Sadhna Compilation
    • Toppers Notes
      • PSIR Notes
      • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Contact Us
  • Home
  • About Us
  • Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Friday Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
    • Public Administration Answer Writing
    • LAQSHYA 2021 OPTIMA – Daily Net Practice
  • PROVEN STRATEGY
    • Prelims Strategy
    • Mains Strategy
    • Interview Strategy
    • Sunday Success Sutra
  • LAQSHYA 2021 OPTIMA
  • Resources
    • DPS Compilation
    • DPN Compilation
    • Friday Factly Compilation
    • Sunday Essay Sadhna Compilation
    • Toppers Notes
      • PSIR Notes
      • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Contact Us

Non-lapsable Defence and Internal Security Modernisation Fund

  • February 14, 2021
  • Posted by: admin1
  • Category: DPN Topics
No Comments
Print Friendly, PDF & Email

 

 

Non-lapsable Defence and Internal Security Modernisation Fund

Subject: Security

Context: The 15th Finance Commission (FC) recommended Non-lapsable Defence and Internal Security Modernisation Fundin its report to ensure continuity in fund support.

Concept:

  • The 15th FC has recommended ₹1.5 lakh crore be shifted from the Consolidated Fund of India over five years.
  • The commission has suggested this to come from Gross revenue receipts and not Gross tax revenue, thus not impacting divisible pool of tax or cess, surcharge or defence tax.
  • It is to fix mismatch between the procurement cycle and the financial allocations for defence on an annual basis.
  • To provide stability on availability of resources for meeting capital expenditure for Defence and thus strengthening security.
  • Apart from the Consolidate Fund it will be boosted by monetisation of idle assets of the defence ministry (It holds huge parcel of land and other assets)

Other focus areas of 15th FC:

Focus of 15th FC has been on equity, need and efficiency as well as continuity and stability:

  • Continuity of the 41% share (factoring in J&K’s change in status)
  • New criteria of demographic management by assigning a 12.5% weightage, and if States still suffered, mitigation by a revenue deficit grant which covers many of the States like Andhra Pradesh, Kerala and Telangana
  • Percentages assigned to different weights at more or less what they were, with very marginal change by increasing the forest cover criteria
  • Reprioritization of the expenditure pattern: Ex- Specific treatment of the resources to urban local bodies towards improving health infrastructure of primary health centers and district hospitals keeping threat of pandemic in mind
  • Flexibility in fiscal deficit target: Fiscal deficit target for states saw one percentage point more — 4% instead of the 3% of GSDP, and an additional 0.5% for undertaking power sector reforms
  • If any of the States have to undertake fresh borrowing on account of liabilities arising out of the GST compensation cess, that would be over and above the flexibility
  • New fiscal consolidation plan, a new debt trajectory, formation of a new inter-governmental body to look into Central govt fiscal target with aim to achieve targets in medium term
Non-lapsable Defence and Internal Security Modernisation Fund Security
Print Friendly, PDF & Email
Loading

Recent Posts

  • Quiz 2021: Prelims Power Play 13 April 2021 April 13, 2021
  • Daily Prelims Notes 13 April 2021 April 13, 2021
  • NHRC April 13, 2021
  • INDEX OF INDUSTRIAL PRODUCTION April 13, 2021
  • SHANTIR OGROSENA April 13, 2021
  • REGEN COV April 13, 2021
  • REFUGEES & ILLEGAL IMMIGRANTS April 13, 2021
  • CHIEF ELECTION COMMISSIONER April 13, 2021
  • NEW YEAR FESTIVALS IN INDIA April 13, 2021
  • INDUSTRIAL & MEDICAL OXYGEN April 13, 2021

About

If IAS is your destination, begin your journey with Santosh Sir. I have the distinction of clearing all 6 UPSC CSE Prelims with huge margins.

I mastered the art of clearing UPSC CSE Prelims and in the process devised an unbeatable strategy to ace Prelims which many students struggle to do 

My Initiative

  • Daily Practice Sheets
  • Daily Prelims Notes
  • Friday Factly
  • Prelims Power Play
  • Sunday Essay Sadhna

My Proven Strategy

  • Interview Strategy
  • Mains Strategy
  • Motivational
  • Prelims Strategy

Contact us

Contact@optimizeias.com

Search