[Mission 2022] QUIZ – 2021: Insights Current Affairs Quiz, 2 September 2021

Solution: a)

Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on the directions of the central government. Such borrowings are used to fulfil the government’s expenditure needs.

But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.

Comptroller and Auditor General report of 2019 points out, this route of financing puts major sources of funds outside the control of Parliament. “Such off-budget financing is not part of the calculation of the fiscal indicators despite fiscal implications,” said the report.

The government can ask an implementing agency to raise the required funds from the market through loans or by issuing bonds. In the Budget presentation for 2020-21, the government paid only half the amount budgeted for the food subsidy bill to the Food Corporation of India. The shortfall was met through a loan from the National Small Savings Fund.

Public sector banks are also used to fund off-budget expenses. For example, loans from PSU banks were used to make up for the shortfall in the release of fertiliser subsidy.

Solution: a)

In India, the Genetic Engineering Appraisal Committee (GEAC) is the apex body that allows for commercial release of GM crops. In 2002, the GEAC had allowed the commercial release of Bt cotton. More than 95 per cent of the country’s cotton area has since then come under Bt cotton. Use of the unapproved GM variant can attract a jail term and fine under the Environmental Protection Act, 1989.

Solution: b)

Freedom of navigation (FON) is a principle of customary international law that ships flying the flag of any sovereign state shall not suffer interference from other states, apart from the exceptions provided for in international law. In the realm of international law, it has been defined as “freedom of movement for vessels, freedom to enter ports and to make use of plant and docks, to load and unload goods and to transport goods and passengers. This right is now also codified as Article 87(1)a of the 1982 United Nations Convention on the Law of the Sea. Not all UN member states have ratified the convention.

Solution: c)

The Inclusive Wealth Report (IWR) is a biennial effort led by the UN Environment to evaluate the capacities and performance of the nations around the world to measure sustainability of economy and wellbeing of their people.

A country’s inclusive wealth is the social value (not dollar price) of all its capital assets, including natural capital, human capital and produced capital.

Solution: a)

Lampedusa is the largest island of the Italian Pelagie Islands in the Mediterranean Sea.