TPS 18 DAILY CURRENT AFFAIRS Date:

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1 TPS 18 DAILY CURRENT AFFAIRS Date: Economy Tax- to-gross Domestic Product (GDP) Ratio... Error! Bookmark not defined. National Company Law Tribunal (NCLT)... 2 International Relations Maldives China FTA... 3 Health (Diseases) Trachoma... 3 Environment Narwhals... 4 ECONOMY 1. TAX- to-gross DOMESTIC PRODUCT (GDP) RATIO Bibek Debroy, Chairman, Prime Minister s Economic Advisory Council and Member, NITI Aayog recently opined that tax exemptions must go completely in a bid to improve taxgross domestic product (GDP) ratio and reduce compliance cost. What is Tax-to-GDP Ratio? The tax-to-gdp ratio is the ratio of tax collected compared to national gross domestic product (GDP). When tax revenues grow at a slower rate than the GDP of a country, the tax-to-gdp ratio drops; when tax revenue grows faster than GDP, the ratio increases. For example, if a country has$10 trillion GDP and tax revenue of $2 trillion, its tax-to- GDP ratio is 20%. If its GDP increases to $15 trillion and its tax revenue jumps to $3 trillion, it retains its 20% ratio. In contrast, if GDP increases to $18 trillion and taxes only increase to $3 trillion, the ratio falls to 16.7%, and conversely, if tax revenue climbs to $4 trillion and the GDP rises to $12 trillion, the tax-to-gdp ratio grows to 33.3%. The tax-to-gdp ratio gives policymakers and analysts a metric that they can use to compare tax receipts from year to year. In most cases, because taxes are related to economic activity, the ratio should stay relatively consistent. Essentially, as the GDP grows, tax revenue should grow as well.

2 The Tax-to-GDP Ratio Global Trend Some countries have a high tax-to-gdp ratio; Sweden, for example, had a tax-to-gdp ratio of 35% as of Estonia, on the other hand, had a very low 1% tax-to-gdp ratio in As of 2014, the U.S. tax-to-gdp ratio was 11.7%. The Tax-to-GDP Ratio of India In , India s tax-gdp Ratio was around 6% only. It rose to around 10% in In last few years, the tax-gdp Ratio has increased substantially. The medium-term expenditure framework released by the government of India in August shows tax-to-gdp ratio of India rising 30 basis points each in FY19 and FY20 to 11.6% and 11.9% respectively. What Kind of Questions to Expect? Q. A decrease in tax to GDP ratio of a country indicates which of the following? (2015 Prelims) 1. Slowing economic growth rate 2. Less equitable distribution of national income Select the correct answer using the code given below. (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer (b) 2. NATIONAL COMPANY LAW TRIBUNAL (NCLT) The National Company Law Tribunal (NCLT) on Friday suspended 10 directors of real estate major Unitech citing mismanagement and diversion of funds. What is National Company Law Tribunal (NCLT) National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to companies in India. It is constituted under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June The NCLT has eleven benches, two at New Delhi (one being the principal bench) and one each at Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai. The NCLT will be a single judicial forum to judge all disputes concerning the affairs of Indian companies. The establishment of the National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the following authorities: Company Law Board Board for Industrial and Financial Reconstruction. The Appellate Authority for Industrial and Financial Reconstruction Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts. Powers of NCLT 1. The NCLT has been empowered to exercise the following powers: 2. Most of the powers of the Company Law Board under the Companies Act, All the powers of BIFR for revival and rehabilitation of sick industrial companies;

3 4. Power of High Court in the matters of mergers, demergers, amalgamations, winding up, etc.; 5. Power to order repayment of deposits accepted by Non-Banking Financial Companies as provided in section 45QA of the Reserve Bank of India Act, 1934; 6. Power to wind up companies; 7. Power to Review its own orders. Decisions of the NCLT may be appealed to the National Company Law Appellate Tribunal. The decisions of NCLAT may be appealed to the Supreme Court of India. National Company Law Appellate Tribunal (NCLAT) National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC). NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by Insolvency andbankruptcy Board of India under Section 202 and Section 211 of IBC. NCLAT is also the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI) as per the amendment brought to Section 410 of the Companies Act, 2013 by Section 172 of the Finance Act, 2017, with effect from 26th May, INTERNATIONAL RELATIONS 3. MALDIVES CHINA FTA What is in News? The Maldives in December 2017 signed a crucial free trade deal with China, while endorsing its Maritime Silk Road project. This is Maldives s first FTA with any country, and China s second FTA with any country in South Asia after Pakistan. To Note Maldives transitioned from Least Developed Country (LDC) to Middle-Income Country status on 1st January Maldives and India do not have a Free Trade Agreement. HEALTH (DISEASES) 1. TRACHOMA Union Health and Family Welfare Minister JP Nadda declared India free of Infective Trachoma, which has been a leading cause of infectious blindness among children. What is Trachoma Trachoma is a chronic infective disease of the eye and is the leading cause of infective blindness globally

4 How it is caused? It is caused by infection with the bacterium Chlamydia trachomatis. It is caused by poor environmental and personal hygiene and inadequate access to water and sanitation. Infection spreads through personal contact (via hands, clothes or bedding) and by flies that have been in contact with discharge from the eyes or nose of an infected person. Its impact It affects the conjunctiva under the eyelids and repeated infections cause scarring leading to in-turning of the eyelashes and eyelids. This further causes damage to the cornea and subsequently blindness. Blindness from trachoma is irreversible. Where it is found in India? It is found affecting the population in certain pockets of the states like Gujarat, Rajasthan, Punjab, Haryana, Uttar Pradesh as well as the Nicobar Islands. Why important now? Active trachoma infection has been eliminated among children in all the survey districts with overall prevalence of only 0.7 per cent. This is much below the elimination criteria of infective trachoma as defined by the WHO. Active trachoma is considered eliminated if the prevalence of active infection among children below 10 years is less than 5 per cent The National Trachoma Prevalence Survey The National Trachoma Prevalence Surveys and the Trachoma Rapid Assessment Surveys were conducted by Dr. Rajendra Prasad Centre for Ophthalmic Sciences, AIIMS, New Delhi in collaboration with National Program for Control of Blindness & Visual Impairment and Union Health Ministry from 2014 to The report was released by the Minister. SAFE Strategy by WHO The elimination strategy for Trachoma by WHO is encapsulated by the acronym "SAFE": Surgery for advanced disease, Antibiotics to clear C. trachomatis infection, Facial cleanliness and Environmental improvement to reduce transmission. What Kind of Questions to Expect? 1. Consider the following diseases: (2014 Prelims) 1. Diphtheria 2. Chickenpox 3. Smallpox Which of the above disease has/ have been eradicated in India? (a) 1 and 2 only (b) 3 only (c) 1, 2 and 3 (d) None Answer (b) ENVIRONMENT 1. NARHWALS What is Narwhal? The narwhal is a pale-colored porpoise found in Arctic coastal waters and rivers. It is nick-nmed as the unicorn of the sea

5 The Narwhal (Monodon monoceros) and the Beluga Whale (Delphinapterus leucas) are the only two species in the cetacean family Monodontidae. It is categorized as Least Concern in IUCN Red list. Narhwal Tusks These legendary animals have two teeth. In males, the more prominent tooth grows into a swordlike, spiral tusk up to 8.8 feet long. The ivory tusk tooth grows right through the narwhal's upper lip. Scientists are not certain of the tusk's purpose, but some believe it is prominent in mating rituals, perhaps used to impress females or to battle rival suitors. Females sometimes grow a small tusk of their own, but it does not become as prominent as the male's. Inuit people hunt the narwhal for their long tusks and their skin, an important source of vitamin C in the traditional Arctic diet. Narwhals exhibit an alarming response to human-caused stress that may lead to brain damage according to study in the journal Science. When fearful, narwhals swim away fast and deep, allowing their heart rates to drop from 60 beats per minute to three or four. During such escape dives, narwhals needed 97 per cent their oxygen supply and often exceeded their aerobic dive limit, or depletion of oxygen stores in the muscles, lungs, and blood, followed by anaerobic metabolism, The study has cautionary implications for narwhals and other whales, dolphins and marine life affected by human activities like shipping, seismic exploration and drilling for oil. Although narwhals are not endangered, they are increasingly coming in contact with humans as the planet warms and ice melts in their Arctic habitat. Narwhals natural escape response to avoid killer whales and other threats usually involves a slow descent or ascent into an area where predators can t follow. Unlike threats from predators like killer whales, noise from sonar or a seismic explosion is difficult to escape

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