Current Affairs Quiz- 59 (2/3/2016)

1. 1. Question

   2 points
   It is estimated that the incidence of renal failure is of the order of 2.2 lakh patients a year in India. With reference to Budget 2016-17, which of the following statements is/are correct?

   1. Dialysis services will be provided in all Government district hospitals under Public-Private-Partnership mode
   2. Certain parts of dialysis equipment will be exempt from basic customs duty

   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
   Solution: c.

   “Shri Nadda stated that the ‘National Dialysis Services Programme’ under which dialysis services will be provided in all district hospitals under the PPP mode will bring relief to a large section of the population. He stated that the proposal to exempt certain parts of dialysis equipment from basic customs duty, excise/CVD and SAD is a step in the right direction.”

   http://www.thehindu.com/opinion/editorial/the-health-net-should-cover-all/article8300771.ece

2. 2. Question

   2 points
   The ‘Raisina Dialogue’ seeks to

   •  a) Engage in an intensive debate on current and future security challenges in the Indian Ocean Region
   •  b) Explore prospects and opportunities for Asian integration as well as Asia’s integration with the larger world
   •  c) Be a platform for a frank and open exchange of ideas, opinions and views among the myriad political parties of India
   •  d) Gather officials and professionals of the SAARC nations in order to enhance South Asian nations’ cooperation and economic integration
   Solution: b.

   “The conference, attended by speakers from 40 countries, is being seen as the Indian government’s attempt to rival conferences around the world that attract global players such as the Shangri-La dialogue in Singapore, and the Munich Conference on national security.”

   “The Raisina Dialogue is envisioned as India’s flagship conference of geopolitics and geo-economics. It is designed to explore prospects and opportunities for Asian integration as well as Asia’s integration with the larger world. It is predicated on India’s vital role in the Indian Ocean Region and how India along with its partners can build a stable regional and world order. The 2016 conclave will focus on Asia’s physical, economic, digital connectivity and fostering common global spaces with an emphasis on Asia.”

   http://www.thehindu.com/news/national/india-kicks-off-raisina-dialogue/article8301235.ece

3. 3. Question

   2 points
   The ‘Shangri-La’ dialogue is

   •  a) A Security summit
   •  b) A Trade summit
   •  c) A Tax dialogue
   •  d) A Women’s summit
   Solution: a.

   “The conference, attended by speakers from 40 countries, is being seen as the Indian government’s attempt to rival conferences around the world that attract global players such as the Shangri-La dialogue in Singapore, and the Munich Conference on national security.”

   http://www.thehindu.com/news/national/india-kicks-off-raisina-dialogue/article8301235.ece

4. 4. Question

   2 points
   Consider the following statements:

   1. Employees’ Provident Fund (EPF) contributions have, prior to Budget 2016-17, been Exempt-Exempt-Exempt (EEE)
   2. The EEE status is also available for Public Provident Fund and life insurance policies

   Which of the statements above is/are correct?

   •  a) 1 Only
   •  b) 2 Only
   •  c) Both 1 and 2
   •  d) Neither 1 nor 2
   Solution: c.

   The latest Economic Survey deals with the concept of EEE as well as EPF, in detail.

   EPF has so far been EEE, or Exempt-Exempt-Exempt. What does this mean?

   “EEE means that the investment in the EPF is tax-free at all the three stages of investing, interest accumulation, and withdrawal. The EEE status is also available to Public Provident Fund, equity linked savings schemes and life insurance policies.”

5. 5. Question

   2 points
   Which of the following statements about the EPF is/are incorrect?

   1. All workers must involuntarily contribute at least 12 per cent of their basic salary to it
   2. It is an example of a ‘subsidy’ for the rich

   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
   Solution: a.

   “More precisely, those who, when they first started working, had a basic salary below a certain threshold (which moved from R6,500/month to R15,000/month in September 2014) must contribute to EPF while those with initial salaries above the threshold may choose whether or not to contribute.”

   “While mandatory for the poor, many rich people choose to contribute to EPF as well, though it seems they do so primarily for tax reasons. In many ways, the EPF is an example of a subsidy for the rich. EPF contributions have an EEE status—Exempt, Exempt, Exempt— meaning that contributions, interest earned and withdrawals are all exempt from tax.”

   Page 150, Economic Survey 2016-17, Volume 1 (The Survey explains in detail about the case of the EPF, relevant especially now because of the changes on its EEE status)

   http://indianexpress.com/article/explained/simply-put-where-the-tax-on-provident-fund-pinches-and-how/

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   Additional reference for Question 1, Quiz 58 (March 1): See GRAPHIC