Black Money Laundering,GSAT 16,Green Diesel,Parchments,DNA Sequencing,Revenue Deficit,Fiscal Deficit,Current Account Deficit

1. Some important facts regarding black money laundering.

(a) According to a report released in December 2013 by Global financial integrity, 60 percent of black money that is produced in India and other developing countries is due to corporate tax evasion.

(b) Finance Ministry in 2012 observed that 60 percent of international trade carried out in India is done by subsidiaries and associated enterprises of Multi National Companies and they minimize their tax liability by shifting tax jurisdiction from high tax slab area to low tax slab area.

(c) A recent report presented by OECD (Organization for Economic Cooperation and Development) says that multinational corporations tend to minimize their tax liability by internal complex financial structures such as using internal loans, selling equities at lower prices etc.

(d) Recently in the case of black money of India stashed abroad, the Switzerland’s ambassador has said that if India wants to get information regarding money in Swiss banks it would have to present proof of fraud. This has made evident the disadvantage of not having a proper functioning monetary scheme in India to curb fraudulent financial transactions domestically. 

2. Who will distribute the funds to the states after Planning Commission is abolished - In the aftermath of the abolition of Planning Commission. It is said that Finance Commission will do the job of allocating development funds to the state but for doing that finance Commission has to be made a permanent body and for that amendment of the Constitution has to be done.

For Centrally sponsored programs and schemes which currently stands at 60, centre allocates around 2% of our GDP for the states from the tax revenues it earns.

3. Update on GSAT 16 -  Currently PSLV of India can launch communication satellites weighing up to 2.2 tons. The foreign launch of GSAT-16 which weighed 3.2 tonnes was Rs. 560 crore.

The latest in line, Geostationary Satellite Launch Vehicle Mark III which can carry communication satellites of 4 tonnes is scheduled to be tested around 18 December 2014. If this proves to be a successful launcher for India it will cut down launching costs considerably. 

4. What is Green Diesel- It is a sustainable biofuel which causes reduction in carbon emissions by 50 to 90 percent and it is made from waste cooking oils, vegetable oils and animal fats.

The combined production capacity of the US, Europe and Asia of green diesel is around 800 million gallons which is capable of meeting huge energy demands worldwide. Green diesel is already in use in ground operations but now its use has been started in aeroplanes by mixing it in small quantity with petroleum jet fuel. (Normally 15% Green Diesel to 85% petroleum fuel)

5. Parchments also known as materials made from animals skins – A lot of written material of the time of 17th and 18th century are lying in libraries all over the World. The leaflets of these works are parchments so with the help of advanced genetic sequencing techniques the DNA of these leaflets will be analysed to trace agricultural development across the previous centuries.

6. Ques. What is DNA Sequencing? (Source Wikipedia)

Ans. It is the process of determining the peruse order of nucleotides with a DNA molecule. It includes those methods and technology which are used to determine the order of the 4 bases – Cytosine, Guanine, Thymine, Adenine in a strand of DNA.

This technique has accelerated the growth and progress of medical and biological research and discovery all over the World.

7. Difference between Revenue deficit, Fiscal deficit and CAD (Current Account Deficit)- 

Current account deficit occurs when imports exceeds exports. In Current account net income such as interests and dividends, as well as transfers like foreign aid are included.

Fiscal deficit= when Government spending is greater than govt. collection.

Revenue deficit -

Case A. Collection = 4 lakh crores Expenditure = 3 lakh crores Saving = 1 lakh crores

Case B. Collection = 3.75 lakh crores Expenditure = 3.5 lakh crores Saving = 25000 crores 

So in both cases above the difference in saving is Rs. 75000 crores which is the Revenue deficit. 

8. What is fiscal consolidation?

Ans. Creating financial policies and strategies in such a manner which will reduce deficit as well as reduce accumulation of debt obligation. Deficit is for a year and summation of deficits of previous years lead to debt. So fiscal consolidation overall aim is the improve financial condition of the country’s economy.