The Prayas ePathshala

Exams आसान है !

Q1. What do you understand by the term ‘Twin Deficit’ (250 words)

Paper & Topic: GS III à Indian Economy

Model Answer:

Background:

In its “Monthly Economic Review,” the finance ministry issued a warning about the recurrence of the twin deficit problem in the economy. It said that increasing commodity prices and a rise in the price of subsidies would cause both the fiscal deficit and the current account deficit to increase (CAD).
Furthermore, it marks the first occasion when the administration has talked publicly about the possibility of financial slippage in the current fiscal year.

Report on ‘Twin Deficit’:

The possibility of widespread stagflation is being thought about by everyone.
India is not at significant risk of stagflation, nevertheless, thanks to its cautious stabilization efforts.
Significant foreign investment has been leaving Indian financial markets over the past eight months. Things have gotten worse due to a dismal GDP growth forecast.
A black swan event consisting of a combination of shocks has a 5% chance of causing outflows under portfolio investments of 7.7% of GDP and a contraction of short-term trade credit of 3.9 percent of GDP (GDP).

Way Forward:

The dual deficit problem, especially the growing current account deficit, may compound the impact of higher import costs and depreciate the rupee, escalating external imbalances.
Very soon
Cut back on expenditure and income (or the money government spends just to meet its daily needs).
Boosting domestic output while cutting back on imports of non-essential items
Prudent Fiscal Policy: The government should rationalize its capital and revenue expenditure plans and strive for a balanced budget in order to avoid fiscal slippage.

Q2. What are the Constitutional Provisions related to Governor? (250 words)

Paper & Topic: GS II à Indian Parliament

Model Answer:

Article 153 mandates that each State have a governor.
A single person may hold the office of governor in two or more states.
A Governor is someone the President nominates from the Central Government.
It is stated that the Governor plays two roles.
He is required by the state’s constitution to follow the advice of his Ministerial Council (CoM).
He plays a crucial role in facilitating communication between the Union Government and the State Government.
Certain requirements are listed for the governor’s post in Articles 157 and 158.
The governor has the power to grant pardons, amnesties, etc (Article 161).
A CoM, which is headed by the CM, assists and advises the Governor in carrying out his duties with a few exclusions for discretion. (Art. 163)
The Governor appoints the Chief Minister and all other Ministers (Article 164).
A bill passed by the Legislative Assembly is either signed by the Governor, vetoed by him or her, or reserved for the President’s consideration (Article 200).
The ordinances may be issued by governors in particular circumstances (Article 213).