Thursday, 3 March 2016

March 3, 2016: Aadhaar Bill introduced as a Money Bill in Lok Sabha, 5/20 rule in aviation policy

March 3, 2016: Aadhaar Bill introduced  as a Money Bill in Lok Sabha, 5/20 rule in aviation policy

General Studies: Daily Capsule

Curtain Raiser –News Update (March 3, 2016)
Govt tables bill in Lok Sabha to give statutory status to Aadhaar:
Finance Minister introduced the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 in the Lok Sabha, which seeks to make the use of Aadhaar mandatory for availing government subsidies but at the same time tries to address concerns regarding privacy and protection of personal information.
The bill has been tabled as a money bill in Lok Sabha. The bill will provide statutory backing to Aadhaar. 
Features of a Money Bill:
--- Money bills can be introduced only in the Lok Sabha
--- The Rajya Sabha cannot make amendments to a money bill passed by the Lok Sabha and can only make recommendations
---  The Rajya Sabha also has to return money bills to the Lok Sabha within 14 days from the date of their receipt, thus ensuring a time-bound process
--- Such bills also cannot be referred to a joint committee of Parliament
What is a Money Bill?:
--- Under Article 110 (1) of the Constitution, a Bill is deemed to be a Money Bill if it contains provisions dealing with six specific matters [Article 110 (1)(a) to (1)(f)] broadly related to imposing, abolishing or regulating a tax; regulating government borrowings; the Consolidated and Contingency Funds of India; and “any matter incidental to any of the matters specified in (the previous six) sub-clauses… [Article 110(1)(g)]”. The expression “incidental to” makes the definition of a Money Bill comprehensive.
--- If any question arises whether a Bill is a Money Bill or not, Article 110(3) says, “the decision of the Speaker of the House of the People thereon shall be final”.

5/20 Rule and New Aviation Policy:
New Aviation Policy will decide the fate of 5/20 rule.
What is 5/20 rule?:
--- The rule says an airline needs to fly five years in the domestic market and have a fleet of 20 aircraft before it can fly abroad.
Who want 5/20 rule to stay:
--- Incumbent airlines IndiGo, SpiceJet, Jet Airways and GoAir
Who want 5/20 rule to go:
--- The two new Tata airlines Vistara and AirAsia India.
Union Cabinet approved the 5/20 rule in December 2004

Deciphering Budget speech:

M. Govinda Rao writes in his article titled ‘Wait for the good days got longer’ in the Hindu dated March 3, 2016: “Although the fiscal deficit is proposed to be capped at 3.5 per cent, there is additional borrowing by the special purpose vehicles for infrastructure and that includes Rs. 31,300 crore to be mobilized by National Highways Authority of India, Power Finance Corporation, Rural Electrification Corporation, Indian Renewable Energy Development Agency and National Bank for Agriculture and Rural Development.”

The Budget speech reads:

To augment infrastructure spending further, Government will permit mobilization of additional finances to the extent of Rs. 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of Bonds during 2016-17.”

What is Public Sector Borrowing Requirement?:

--- Amount a government needs to borrow to cover its expenditure
--- A government principally raises its money by taxes and excise duties
--- If it has to spend more than the amount covered by these sources, it must raise the rest by borrowing
--- To do this, it issues short-term and long-term stocks and bonds, on which it pays interest
--- These loans form part of the national debt.

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