[Mission 2022] Insta– QUED ( Questions from Editorials ) 31 March 2022

Solution: a)

Gross domestic product (GDP) is the single standard indicator used across the globe to indicate the health of a nation’s economy: one single number that represents the monetary value of all the finished goods and services produced within a country’s borders in a specific period.

Only newly produced goods are counted. Transactions in existing goods, such as second-handed cars, are not included as these do not involve the production of new goods.

GDP considers only marketed goods.

Much of the work done by women at home taking care of the children, aged, chores etc. which is called care economy is outside the GDP.

Solution: c)

A buyback is a mechanism through which a listed company buys back shares from the market.

It can be done either through open market purchases or through the tender offer route. 

Under the open market mechanism, the company buys back the shares from the secondary market while under tender offer, shareholders can tender their shares during the buyback offer. In a tender offer, the company fixes a fixed price for the buyback and investors can tender their shares by placing a bid with the broker. 

Both Institutional investors and retail shareholders take part in a buy back offer.

Solution: a)

The Harmonized Commodity Description and Coding System, also known as the Harmonized System of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.

HS codes are used by Customs authorities, statistical agencies, and other government regulatory bodies, to monitor and control the import and export of commodities.

The Harmonised System is a six-digit identification code. It is developed by the World Customs Organization (WCO).

It is known as “universal economic language” for goods. It is a multipurpose international product nomenclature.

Solution: c)

Article 267 of the Constitution mandates formation of a corpus under Contingency Fund of India to deal with any emergency situation. 

It is placed at the disposal of the President, who releases the funds on request of the Union Cabinet at a time when there is a crisis, such as a natural disaster.

Any expenditure incurred from this fund requires a subsequent authorisation from the Parliament. And the corpus has to be replenished with the same amount later.

The Union finance ministry holds the fund on behalf of the President. And the fund size is enhanced from time to time by the government. In 2005, the corpus of the fund was raised from Rs 5 crore to Rs 500 crore.

The government enhanced the Contingency Fund of India from Rs 500 crore to Rs 30,000 crore through the Finance Bill 2021.

The fund can be increased through a Finance Bill when the Parliament is in the session. Or through Ordnance if the House is not in session and situation warrants. Withdrawal from the fund takes place with the approval of the Secretary of Department of Economic Affairs, in terms of the Contingency Fund of India Act, 1950.

Solution: d)

How is President’s rule imposed in a state?

Article 356 of the Constitution of India gives the President of India the power to impose this rule on a state on the advice of the Union Council of Ministers. There are some conditions that the President has to consider before imposing the rule:

a) If the President is satisfied that a situation has arisen in which the government of the state cannot be carried on in accordance with the provisions of the Constitution.

b) The state government is unable to elect a leader as chief minister within a time prescribed by the Governor of that state.

c) There’s a breakdown of a coalition leading to the chief minister having a minority support in the House, and the CM fails to prove majority in the given period of time.

d) Loss of majority in the Assembly due to a vote of no-confidence in the House.

e) Elections postponed on account of situations like natural disasters, war or epidemic.