Current Affairs for SSC CGL Exams - 31 December 2016

:: National ::

India’s international counter-terror campaign suffered a setback from China

India’s international counter-terror campaign suffered a setback with China again blocking its attempt to blacklist Pakistan-based terror leader Masood Azhar at the U.N.
China’s action stopped the counter terror committee of the U.N. Security Council Taliban/al Qaeda Sanctions Committee from designating the Jaish-e- Mohammad leader, which India called a “surprising” move.
Chinese Foreign Ministry Spokesperson, said, “when it comes to the listing matter of the U.N. Security Council 1267 Committee, we believe it should conform with relevant Security Council resolutions and the Committee’s rules of procedure.”
India began the campaign to blacklist Masood Azhar after the Pathankot attack on January 2.
Subsequently India highlighted the contradiction that the UNSC 1267 Committee had banned Jaish-e-Mohammed in 2001 while leaving out Mr Azhar and therefore, should proscribe him as well.
However, China blocked India’s attempts to list Masood Azhar in the agenda of the 1267 Committee earlier this year, neutralising India’s campaign.
China’s blockade also cast a shadow on India’s plans to bring an international convention against terrorism under the aegis of the United Nations.
The attempt to blacklist Masood Azhar will remain part of India’s multilateral agenda and India will continue to campaign for the need to place him on the list of international terrorists.

Demonetisation of old notes to end today

The Reserve Bank of India, meanwhile, has asked banks to put together data on how much of the demonetised currency returned to the system by December 30.
Union Finance Minister Arun Jaitley said the record number of search and seizure operations carried out by the Income-Tax department were ample proof that the decision to demonetise the high-value currency notes was on the mark.
Mr. Jaitley also said the cash crunch faced by people due to the lack of adequate currency in banks had eased as gauged by thinner queues at banks.
Though he refused to commit to a time line for lifting the withdrawal caps of Rs. 24,000 a week imposed on bank account holders.
The Prime Minister’s address to the nation on New Year’s Eve could hold some goodies for the common man, days before the Election Commission announces poll dates for upcoming elections.

Demonetisation have no immediate impact on the railway and aviation sectors

While the Centre’s move to scrap old Rs. 500 and Rs. 1,000 currency notes did not have an immediate impact on the railway and aviation sectors, the toll collection on national highways took a hit.
115 toll projects of the National Highways Authority of India (NHAI) operated by private players lost an estimated Rs. 1,100 crore over a 24-day period.
Following demonetisation, the Centre had withdrawn toll collection at 365 toll plazas on the national highways from November 9 to December 2 midnight. The move resulted in significant liquidity stress for most of the road projects.
The NHAI plans to provide immediate relief to the developers by covering 90 per cent of the interest cost and operational and maintenance expenses for the period when toll collection was suspended.
However, demonetisation helped the Indian Railways to exceed its target of passenger bookings for November.
The number of passengers rose by seven per cent to 7.09 crore against the Railways’ target of 6.6 crore passengers in November.
Railways’ passenger earnings grew 11 per cent to Rs. 3,802 crore in November against a six per cent dip in passenger revenues witnessed in the same month last year. However, freight earnings reduced by 1 per cent to Rs. 9,014 crore.
Domestic air traffic growth continued to be robust in November and increased by 22.45 per cent to 89.66 lakh compared to the previous month. In October, the passenger traffic had risen by 23.20 per cent to 86.72 lakh.
Global aviation consultant CAPA said traffic growth remained strong in December, and, although there was “no visible impact” as yet of demonetisation, growth may be impacted in the next financial year.

:: Business and Economy ::

Economist believe demonetisation has reduced economic momentum

The Centre’s decision to withdraw high value banknotes couldn’t have come at a worse time for the recovering Indian economy as the cash crunch that resulted from the sudden demonetisation crimped all-round demand.
Starting 2016 on a relatively weak base with gross value added (GVA) growth at 6.9 per cent and GDP growth at 7.2 per cent in December 2015 — economic momentum recovered towards the middle of the year.
GDP growth in March accelerated to 7.9 per cent and GVA growth rose to 7.4 per cent.
Although the upsurge hit a hurdle in June, with GDP growth for the second quarter of FY17 falling to its slowest rate in six quarters at 7.1 per cent.
A good monsoon and an imminent pick-up in demand seemed to have placed the economy in a sweet spot for higher growth, investments and, possibly, job creation.
The Centre's move to withdraw high value currency notes in November altered that script, though the government is confident that deferred consumption will still spur growth once the initial shock of the move is absorbed.
On the infrastructure side, the main sticking point — non-performing assets — remains a problem independent of the effect of demonetisation, with banks not willing to lend for such projects.
The index of industrial production on average contracted by 0.1 per cent over the January-to-October period, with private investment faring very poorly and any growth in the index being mostly driven by consumption.
The index reached its lowest level in the year in July, when it contracted 2.55 per cent. The best performance was in the preceding month, when the index grew 2.18 per cent.
Retail inflation slowed significantly over the year, while the contraction in wholesale prices reversed.
This meant that the growth rates of the Consumer Price Index and the Wholesale Price Index converged — coming the closest to each other in November, when the CPI grew at 3.6 per cent and the WPI at 3.15 per cent.
Growth in gross value added has been slowing since the fourth quarter of the previous financial year (quarter ended March 2016), when it was 7.4 per cent.
GVA growth for the second quarter of this financial year was 7.1 per cent, which is the lowest it has been since the quarter ended December 2015.
That was before the demonetisation announcement, which economists said would dampen growth in the last two quarters of the fiscal.
The current account deficit has contracted sharply over the last two years, with the amount touching $3.4 billion in September 2016, down from $10.9 billion in September 2014.
The CAD touched a more than two-year low in the quarters ended March and June, coming in at just $300 million.

Finance ministry told banks to review the lending rates

Lending rates may fall sharply from the beginning of January as the finance ministry has told banks to review interest rates as huge sums of cash have been deposited in the banks in the wake of demonetisation.
According to bankers, at a meeting with the finance ministry officials, the latter suggested lenders should review the marginal cost of funds-based lending rate (MCLR) and pass the benefit to customers.
MCLR is the benchmark rate to which all the loan rates are linked.

Last date for Direct Tax Dispute Resolution Scheme extended to January 31

The Centre extended the last date for availing the Direct Tax Dispute Resolution Scheme to January 31, 2017 from the earlier deadline of December 31, 2016.
The scheme, announced by Finance Minister Arun Jaitley in the 2016-17 Budget and begun on June 1, is aimed at releasing about Rs. 5.16 lakh crore, which is locked in about 2.6 lakh pending direct tax cases.
Extension of the scheme is welcome as the stakeholders, post December 31, would be able to better focus on this.
It will be helpful if a campaign for enhancing awareness on this is undertaken to get better response.