PRS Capsule- February 2023 | 30 Mar 2023

Key Highlights of PRS

• Governance
  • 2023-24 Union Budget
  • Approval of New Scheme
  • Discontinuation of Schemes
  • Law and Justice
• Economy
  • Macroeconomic Development
  • UPI Facility Extended to International Travellers
• Biodiversity & Environment
  • Draft Amendments to the Offshore Areas Mineral Act, 2002
  • Draft Rules for Utilising Crop Residue in Power Generation

Governance

2023-24 Union Budget

What are the Key Highlights of the Budget?

• Expenditure: The government proposes to spend Rs 45,03,097 crore in 2023-24, which is an increase of 7.5% over the revised estimate for 2022-23.
• Gross & Domestic Product (GDP) Growth: The government has estimated a nominal GDP growth rate of 10.5% in 2023-24 (i.e., real growth plus inflation).
  • Nominal GDP is estimated to grow at 15.4% in 2022-23, as per the First Advance Estimate.
• Deficits: Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised estimate of 6.4% in 2021-22.
  • The revenue deficit in 2023-24 is targeted at 2.9% of GDP, lower than the revised estimate of 4.1% in 2022-23.
• Tax Proposals in the New Regime: The number of tax slabs has been reduced from six to five, and income will be taxed at higher levels.
• Policy Proposals: The scheme providing 50-year interest-free loans to state governments will also be available in 2023-24, with an outlay of Rs 1.3 lakh crore.
  • An Agriculture Accelerator Fund will be set up to encourage agri-startups in rural areas.

Approval of New Scheme

What is Vibrant Village Programme?

• Cabinet approves centrally sponsored schemeVibrant Village Programme
  • The Vibrant Village Programme aims to provide comprehensive development of villages on the northern border with China.
  • Under the scheme, funds will be provided for the development of essential infrastructure and the creation of livelihood opportunities.

What are the Key Features of the Scheme?

• Outcomes:
  • improving connectivity with all-weather roads
  • ensuring access to drinking water
  • focusing on solar and wind energy
  • improving access to the internet and mobile connectivity
  • setting up Health and Wellness Centres.
• Vibrant Village Action Plan: The district administration, with the help of the Gram Panchayat, shall create action plans for the village.
  • The scheme shall not overlap with the Border Area Development Programme.
• Growth Centres: The scheme will identify and develop local economic drivers and growth centres. These growth centres shall promote social entrepreneurship, skill development for youth and women, traditional knowledge systems, and the “one village-one product” through community-based organisations.
  • Such organisations include Self Help Groups (SHGs), cooperatives, and Non-Governmental Organisations (NGOs).

Discontinuation of Schemes

What are Naya Svaera and Nayi Udaan Schemes?

• Naya Savera Scheme:
  • ‘Free Coaching and Allied Schemes’ (Naya Savera) aimed to empower students from minority communities to prepare for competitive examinations.
• Nayi Udaan Scheme:
  • The second scheme is the ‘Support for Students Clearing Prelims Conducted by UPSC, SSC, State Public Service Commissions’ (Nayi Udaan) provided financial support for students who had cleared preliminary examinations for the mentioned examinations.
• Reason:
  • Two schemes that provided students from minority communities assistance with competitive examinations have been discontinued. They have been discontinued to keep in line with the National Education Policy, 2022 (NEP).
    • The NEP states that the existing structure of examinations will be reformed to eliminate the need for coaching classes.

Law and Justice

What was the Reason to Extend the Term of the Law Commission?

• The Cabinet approved the extension of the 22^nd Law Commission’s term up to August 31, 2024.
• The reason for the extension was due to the recent appointment of the Chairperson and members of the 22^nd Law Commission in November 2022.

Economy

Macroeconomic Development

• The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) increased the policy repo rate (the rate at which RBI lends money to banks) from 6.25 to 6.5%.

UPI Facility Extended to International Travellers

• The RBI has announced a facility to enable international travellers to make local payments using the Unified Payments Interface (UPI) while they are in India.
  • Initially, the facility will be extended to travellers from G-20 countries arriving at select international airports.
• Real-time payment linkage between UPI and PayNow (Singapore’s fund transfer service) was also launched.
  • UPI PayNow is an instant cross-border person-to-person payment facility.

Biodiversity & Environment

Mining

Draft Amendments to the Offshore Areas Mineral Act, 2002

• The draft amendments seek to encourage private participation to explore and mine mineral resources and harness the full potential of these resources.

Environment

Draft Rules for Utilising Crop Residue in Power Generation

• The Ministry of Environment, Forest, and Climate Change released the draft Agro Residue Utilisation by Thermal Power Plants Rules, 2023.
• The Rules will apply to all thermal power plants which fall within the jurisdiction of the Commission for Air Quality Management in the National Capital Region and Adjoining Areas (Uttar Pradesh, Haryana, Rajasthan, and Punjab).