 Good evening aspirants welcome to the hindu news analysis by Shankarase academy for the date 9th of february 2022 these are the list of articles we will be discussing today without wasting time let us start today's discussion look at this editorial article it talks about the critical analysis of the budget allocation towards the agriculture sector see the budget allocation towards the agriculture sector for the financial year 2022-23 has only marginally increased so in this context let us discuss about what is the need for increased government spending on agriculture and we will also see how it will boost farm incomes I have highlighted here the syllabus regarding this editorial article discussion you can go through it now let us start our discussion see India's agricultural orientation index or AOI is poor now let me tell you what is this agriculture orientation index also let me tell you how important this indicator is with respect to the achievement of sustainable development goal to see the AOI is compelled and reported by the food and agriculture organization of the United Nations the AOI for government expenditures is defined as the agriculture share of government expenditure divided by agriculture share of GDP note that here agriculture refers to agriculture forestry fishing hunting etc. the measure is a currency free index since it is calculated as a ratio of these two shares see for this calculation the national government are requested to compel two things firstly the government expenditures is to be calculated according to the international classification of functions of government and secondly the government share of GDP is to be calculated according to the system of national accounts ok now let us see what all comes under government expenditures it includes all outlays or expenses associated with supporting a particular sector in this case it is agriculture sector then it includes compensation of employees and subsidies and grants paid as transfers to individuals or corporations in that sector ok now what all comes under the agriculture share of GDP see it is measured as a ratio of agriculture value added over GDP so it is clear that this value is based on official data reported by countries to the United Nations statistics division that is UN SD now let us see what is indicated through the AOI values see if AOI is greater than one it means a higher orientation towards the agriculture sector that is for higher shares of government spending there is a relative contribution of agriculture to the country's economy if AOI is less than one it means there is a lower orientation to agriculture while an AOI equal to one reflects neutrality in government's orientation to the agriculture sector ok now look at the table given below showing India's AOI data from 2001 to 2018 what can we observe see it is clear that India is still struggling to reach even one in AOI value also look at this table showing the data of Indian government spending provided by Ministry of Finance to the FAO that is utilized for AOI calculation look at this another table in which the government spending of China from 2011 to 2018 is shown see when compared to China Indian government spending on agriculture is low this can be observed from this data given here see this AOI is a stark remainder of the need to attain a key sustainable development goal of higher agriculture growth having seen what the AOI value indicates now let me tell you how relevant it is to show the progress of the country towards the sustainable development goal to mainly the agriculture growth consider the AOI to be equal or greater than one for this first let me give you few examples of government spending on agriculture sector firstly you can say government spending on policies related to soil improvement and soil degradation control then irrigation and reservoir for agriculture use it even includes animal health management livestock research and training in animal husbandry then marine and freshwater biological research afforestation and other forestry projects etc all these are examples of government spending on agriculture sector so when government spending is more in agriculture sector the sector's contribution to GDP will increase this will result in a relative increase in agriculture share on GDP so at that time the AOI would be greater than or equal to one now let me tell you the benefits of government spending on agriculture firstly it benefits by increasing the sector's efficiency productivity and income growth by increasing physical or human capital secondly it benefits by compensating the lack of private sector investment in agriculture activities why the private sector is hesitant to invest they are hesitant because of the presence of market failure in agriculture sector now moving on to the next benefit it benefits the agricultural producers particularly small landholders who are unable to hedge against risk see when faced with crop failures or livestock laws from pest to drought flood infrastructure failure or even severe price changes the government intervention in terms of income redistribution is important for three the agriculture sector gives higher crop yield for example look at this data in the table given as I already said Chinese government spends more than Indian government in agriculture sector hence the yield of China in cereal pulses and vegetable crops is higher than India now let us see some data about current budget allocation towards the agriculture sector look at this table it shows there has been a huge reduction in funds allocation when compared to the revised estimates of 2021-22 see it is due to the reduction in fund allocation towards important schemes like crop insurance and minimum support price for example consider Pradhan Mandiri Anadatta I sanskaran Abhyan that is PM Asha which is an umbrella scheme this scheme is to ensure renumerative prices to the farmers comprises of price support schemes price deficiency payment scheme and even pilot scheme of private procurement and stockist schemes for such a scheme which is essential to ensure MSP based procurement especially in pulses and oil seeds a significant reduction is done in the current budget see it has been deduced from 400 crores in 2021-22 to just 1 crore in 2022-23 budget not only this even for the distribution of pulses to states for welfare schemes the budget allocation has been reduced yes it was 300 crores in the financial year 2021-22 whereas it is only 9 crores in the financial year 2022-23 next take the allocation for rural development it was 5.59 percent in the previous budget and it has been reduced to 5.23 percent so even the allocation towards capital investment mainly those used for the promotion of rural infrastructure and marketing facilities has also decreased in the current budget see let me give you two examples where the author of the article mentions that the government spending will not result in long-term asset generation firstly take the Pradhan Mandiri Kisan Sama Nidhi this is used to provide income support to all land holding farmer families in the country this is to supplement their financial needs for procuring various inputs related to agriculture and allied activities as well as domestic needs secondly consider the Pradhan Mandiri Kisan Mandan Yojana it is used to provide socio security to small and marginal farmers in their old age under two conditions that is when they have no means of livelihood and minimal are no savings to take care of their expenses see in the current budget the fund allocation towards these two schemes has been increased but the author of the article says that it is not going to help for asset generation when seen in the long term okay before concluding this discussion let us see the suggestions given by the author of the editorial see India has to intensify government spending towards agriculture because it is the key to attain sustainable development goal of higher agricultural growth and farm income yes it is the second sustainable development goal so the author suggests that the government should focus on the development of rural infrastructure and rural transportation facilities also a suggested by the national commission on farmers the number of markets should be increased what will be the benefit of these measures see these measures will play a crucial role in enhancing farmers access to market also it will integrate small and marginal farmers into the agricultural supply chain to a greater extent okay this is all about this editorial article in this segment we discussed about the ay that is agriculture orientation index which is an important indicator also we saw how the government spending is benefiting the growth of agriculture sector as well as the overall economy finally we discussed how the current budget allocation is lagging in government spending also we saw few measures suggested by the author to improve agriculture share of GDP with this let us conclude this discussion and take up the next news article look at this news article this article is with reference to the global rating agencies which termed India as the most in-depth emerging market finance secretary TV Somanathan argued that the global rating agencies appears to have adopted double standards in their assessment of emerging economies and developed markets he also added that India has one of the best depth to GDP ratio when compared to united states and Japan this is the crux of the article in this context we will learn about bond yield and how it is related to depth to GDP ratio see a bond is a fixed income instrument that represents a loan made by an investor to a borrower bond yield here is nothing but a return an investor realizes on the bond bonds are also commonly used by government to raise capital in order to fund domestic growth and development projects a bonds yield indicate the expected earnings generated over a particular period of time it is expressed as a percentage or interest rate see when investors by bonds they essentially lend money to the bond issuer in return bond issuer agrees to pay the investor interest on the bond through the life of the bond and repays the face value of the bond upon maturity here the face value of the bond is nothing but the price the issuer pays at the time of maturity the simplest way to calculate the bond yield is to divide its coupon payment by the face value of the bond this is called the coupon rate now let us understand this with an example if a bond has a face value of rupees thousand and if the interest rate is rupees hundred per year then its coupon rate is ten percentage see the bond yield and the bond price have a important but inverse relationship when the bond price is lower than the face value the bond yield is higher than the coupon rate when the bond price is higher than the face value the bond yield is lower than the coupon rate now let us understand this with an example consider there is a 10-year bond with the price of rupees 5000 and a coupon rate of rupees 200 so the yield is 4 percentage suppose the price of the bond increases from 5000 to 5500 due to strong investor demand so the bond now trades at a price of 10 percent above the issue price however the coupon amount remains the same at rupees 200 now the bond yield changes to 3.64 percentage now consider the other scenario suppose the price of the bond decreases from rupees 5000 to rupees 4000 due to lack of investor demand so the bond now trades at a price of 20 percent below the issue price here also the coupon amount remains the same at rupees 200 now the bond yield changes to five percentage okay so when the price of the bond goes up the yield on the bond decreases alternatively when the price of the bond comes down the yield on the bond increases okay now we will understand the relationship between bond yield and depth to GDP ratio see firstly the depth to GDP ratio is the ratio of country's public debt to its gross domestic product okay now the conventional view is that government's debt and deficits have a decisive effect on government bond yields if the government depths as a share of GDP increases then the bond prices will come down because the investor will no longer be willing to invest in the government bonds and so the bond yield will increase and if the government debts as a share of GDP decreases then bond yields will decline so the finance secretary said that the bond yields spiking was a normal response to an expanded borrowing program and it is very common in a well-run and efficient market like India now before concluding this discussion let us do a quick recap in this discussion first we saw what is a bond a bond is a fixed income instrument that represents a loan made by an investor to a borrower next we saw what is bond yield see a bond yield is nothing but a return an investor realizes on a bond it is expressed in percentage okay then we saw what is the face value of the bond the face value of the bond is nothing but the price the issuer of the bond pays at the time of the maturity of the bond after that we saw what is coupon rate coupon rate is nothing but the ratio of annual coupon payment and bond face value then we saw what is the relationship between bond price and bond yield here if the price of the bond increases the bond yield decreases and when the price of the bond decreases the bond yield will increase so the bond price and the bond yield are inversely proportional finally we saw about the relationship between bond yield and the government depth to GDP ratio here if the depth to GDP ratio increases the bond yield increases and when the depth to GDP ratio decreases the bond yield decreases so depth to GDP ratio and the bond yield are directly proportional that's all regarding this article now let us conclude this discussion and we will move on to the next news article discussion look at this news article it states that the Tamil Nadu assembly yesterday unanimously re-adopted a bill returned by the governor the bill seeks to do away with need for admissions to undergraduate medical courses in the state the bill was previously adopted on last september and it was returned by the governor of Tamil Nadu and now for the first time in its 70 year history the Tamil Nadu assembly has re-adopted a bill returned by the governor without amendments okay this is the crux of the article in this context we will learn about the relationship between state legislature and the governor in terms of the ordinary bill see the governor from time to time summons each houses of the state legislature to meet article 173 of the constitution states that the minimum gap between two sessions of the state legislature cannot be more than six months that is the state legislature should meet at least twice a year okay now coming to the ordinary bills the ordinary bill can be introduced in either house of the state legislature that is it can originate from state legislative assembly or from state legislative council okay an ordinary bill is a bill that is concerned with any matter other than financial subjects it can be introduced either by a minister or by a private member every bill after it is passed by the assembly or by both the houses in case of bicameral legislature is presented to the governor for his assent there are four alternatives before the governor they are firstly he may give his assent to the bill secondly he may withhold his assent to the bill thirdly he may return the bill for reconsideration of the house or houses of the legislature finally he may reserve the bill for the consideration of the president okay see if the governor gives his assent to the bill the bill becomes an act and it is placed on the statute book if the governor withholds his assent to the bill the bill ends and does not become an act and the governor can return the bill for reconsideration also but if the bill is passed by the house with or without amendments and presented to the governor for his assent the governor must give his assent to the bill okay thus the governor enjoys only a suspensive veto in this case we have also seen that the governor can reserve the bill for the consideration of president right now what are all the scenario in which the governor can reserve the bill for the consideration of president firstly when the bill passed by the state legislature endangers the position of the state high court in this condition the governor must reserve the bill okay governor can also reserve the bill in the cases mentioned in the table just go through it now when the bill is reserved by the governor for the consideration of the president the president may either give his assent to the bill or withhold his assent to the bill he can also return the bill for reconsideration of the house or houses of the state legislature when the bill is returned the house or the houses have to reconsider it within a period of six months now the bill has to be presented again to the presidential assent after it is passed by the house or the houses with or without amendments note here that it is not mentioned in the constitution whether it is obligatory on the part of the president to give his assent to such a bill or not okay so this news article stated that the Tamil Nadu assembly has passed the same bill again so the Tamil Nadu governor cannot reject it for the second time the governor has to give his assent or he can reserve the bill for the consideration of president that's all regarding this article now we will move on to the next news article look at this news article this article is with reference to the consultation paper which was released by the telecom regulatory authority of india troy in november 2021 the consultation paper aims to discuss about the modalities for auction of 5g spectrum including pricing and quantum this is the crux of this article in this context we will learn about troy in plin's perspective see the entry of private service providers in telecom industry brought an inevitable need for an independent regulation thus troy was established in 1997 by an act of parliament called the telecom regulatory authority of india act 1997 so troy is a statutory body okay it aims to regulate telecom services including fixation or revision of tariffs which was earlier vested in the central government the headquarters of troy is located in new delhi okay troy consists of a chairperson two whole time members and two part time members and all of them are appointed by the government of india troy's mission is to create and nurture conditions for growth of telecommunications in the country so that it will enable india to play a leading role in the emerging global information society one of the main objective of troy is to provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition in pursuance of above objective troy has issued from time to time a large number of regulations orders and directives these regulations or orders provide the required direction to the evolution of indian telecom market these directions orders and regulations issued over a wide range of subjects including tariffs interconnection and quality of service as well as governance of the authority note that the recommendations made by troy are not binding on the central government see the troy act was amended by an ordinance in 2000 this led to the establishment of telecommunications dispute settlement and appellate tribunal that is tdsat this tdsat took out the adjudicatory and disputes function from troy tdsat was set up to adjudicate any disputes between a licensor and licensee between two or more service providers or between a service provider and a group of consumers okay it hears and disposes the appeal against any direction decision or order of that's all regarding this news article now we will move on to the next news article look at this news article this news article talks about the direction of the supreme court the supreme court directed the indian institute of technology medras to charge the students belonging to the overseas citizens of india category the same fees as the indian counterpart now in this context let us discuss about the eligibility of overseas citizens of india and the exception and the benefits provided to them we know that the indian constitution does not allow dual citizenship that is we cannot hold indian citizenship and a foreign citizenship simultaneously okay then who are considered as overseas citizens of india see a foreign national who falls under any of these shall be considered as overseas citizens of india on registration note here that the foreigner has to be ordinarily indian resident to be eligible to apply for oca registration in india okay here ordinarily resident means a person staying in a particular country or in india for a continuous period of six months okay other than the above mentioned who else can apply for oca card see besides the above mentioned there are some criteria for spouses firstly the spouse of a foreign origin of an indian citizen can apply for oca card secondly spouse of foreign origin of a oca card holder can also apply for overseas citizenship of india okay here the condition is that their marriage should have been registered and subsisted for a continuous period of not less than two years see this should be immediately preceding the presentation of the application okay now let us see who are all not eligible for oca card firstly person who is a citizen of pakistan bangladesh or other such countries mentioned by the central government are not eligible for oca card secondly if either of the applicant's parents or grandparents or great grandparents is or had been a citizen of pakistan bangladesh or any other such country mentioned by the central government are also not eligible for oca card thirdly foreign nationals on tourist visa missionary visa and mountaineering visa are not eligible for oca card see the oca scheme was introduced through a citizenship amendment act of 2005 this is done to provide registration of persons of indian origin as overseas citizens of india know that a pao or a person of indian origin is a person who was an indian national or any of his or her parents was an indian national and is presently holding another country citizenship or nationality that is he or she is holding a foreign passport it must be clear that oca card does not amount to dual citizenship okay now let us see the benefits enjoyed by these oca card holders firstly they can enjoy multiple entry with lifelong visa to visit india okay however to undertake research work in india they must require a special permission not only research work for all of these they need to acquire a special permission or permit secondly they are exempted from registration with the foreign regional registration officer or foreigners registration officer for any length of stay in india thirdly they are on par with nrs in financial economic and educational fields but there is an exception here in case of acquisition of agricultural or plantation properties they are not in par with nrs who are nrs see an nr is an indian citizen who is ordinarily residing outside india and holds an indian passport okay fourthly they will be treated on par with nrs in matters of inter-country adoption of indian children finally they are treated on par with indian citizens for tariffs in airfares in domestic sector in india also the entry fee for visiting national parks or wildlife sanctuaries national monument etc they will be treated on par with indian citizens okay now let us see what all oca cannot enjoy firstly overseas citizens of india shall not be entitled to the rights conferred on the indian citizen under article 16 of the constitution what is article 16 see it is with regard to equality of opportunity in matters of public employment secondly they do not have political rights for example they do not have any voting rights for lokshaba or rajashiva or legislative assembly or legislative council elections thirdly they cannot hold constitutional posts such as president vice president judges of supreme court or high court etc that's all about this news article before concluding this discussion let us do a quick recap see in this discussion we saw who are considered as the overseas citizens of india then we saw who are not eligible for overseas citizens of india card then we saw the benefits enjoyed by the oca card holders the benefits include multiple entry lifelong visa to visit india exception from registration with the foreigners regional registration officer or the foreigners registration officer for any length of stay in india on part treatment with nrs in financial economic and educational fields with exception of acquisition of agricultural or plantation properties on part treatment with nrs in the matters of inter-country adoption of indian children and finally on part treatment with indian citizens for tariffs in airfares in domestic sector in india then we saw the benefits which the oca cannot enjoy here we saw that oca cannot claim rights conferred on indian citizen under article 16 of the constitution oca do not enjoy any political rates and they cannot hold constitutional post like president vice president judges of supreme court or high court etc okay with this we have come to the news article discussion session now let us take up the practice prelims question we have five practice prelims question today let's see them one by one look at the first question this question is in regards to bond yield two statements are given we have to find the incorrect statements here see in our discussion we saw two relations right in case of bond price and bond yield both are inversely proportional so when the bond price goes up bond yield will decrease so statement one is correct next in our discussion we saw that government depth to GDP ratio is directly proportional to bond yield so if the government depth to GDP ratio increases bond yield will increase so the second statement is also correct since in the question they are asking us to find the incorrect statements the correct answer here is option D neither one nor two now moving on to the second question this question is in regards to Troy in our discussion we saw that Troy is established by Troy act of 1997 so Troy is a statutory body okay now let us take up the second option Troy consists of a chairman and four full-time members see option B is wrong okay because Troy consists of a chairman and two full-time members and two part-time members okay so since option B is wrong option D cannot be answered that is all of the above cannot be answered so anyway let us see option C also it says option C says Troy is headquartered in Mumbai actually Troy is headquartered in New Delhi okay so the correct answer for this question is option A it is a statutory body now let us take up the third question this question is in regards to state legislature in India it is a two statement question we have to find the correct statements let us take up the first statement minimum gap between two sessions of the state legislature cannot be more than six months this statement is correct because article 174 of the constitution states that the maximum gap between two sessions of the state legislature cannot be more than six months that is state legislature should meet at least twice a year now let us take up the second statement when a bill returned is presented again to the presidential assent after it is passed by the house or houses of the state legislature with or without amendments the president must give his assent this statement is incorrect because when the bill is returned by the president the house has to reconsider it within a period of six months now the bill has to be presented again to the presidential assent after it is passed by the house or houses with or without amendments it is not mentioned in the constitution whether it is obligatory on the part of the president to give his assent to such a bill or not so statement two is incorrect since statement one is correct and statement two is incorrect the correct answer here is option a one only now let us take up the fourth question see in this question two agricultural schemes are given we have to find the correct one okay let us take up the first statement Pradhan Mandir Kisan Samanidhi can be used to supplement financial needs related to both agricultural and domestic needs see this statement is correct because we saw that Pradhan Mandir Kisan Samanidhi provides income support to all land holding farmers families in the country also it will supplement their financial needs for procuring various inputs related to agriculture and allied activities as well as domestic needs now let us take up the second statement Pradhan Mandir Kisan Mandan provides social security to all the farmers in their old age this statement is incorrect because Pradhan Mandir Kisan Mandan Yojana provides social security to small and marginal farmers in their old age also note that it is provided only when they have no means of livelihood and minimal or no savings to take care of their expenses so since statement one is correct and statement two is incorrect the correct answer here is option a one only now let us take up the last practice problems question this question is in reference to overseas citizen of India that is OCI two statements are given we have to find the correct statements let us take up the first statement they can cast their vote only for Lok Sabha election see this statement is incorrect because OCI card holders have no political rights like voting rights etc so they cannot vote in gaining Indian election like Lok Sabha election state legislature election etc okay now let us take up the second statement a foreigner who is ordinarily an Indian resident can only apply for OCA registration see this statement is correct yes a foreigner who is ordinarily an Indian resident can only apply to OCA registration see ordinarily a resident here means a person staying in a particular country in this case India continuously for a period of six months okay so since statement one is incorrect and statement two is correct the correct answer here is option b two only the main question based on today's discussion is here write your answers and post it in the comment section if you like today's video like comment and share it with your friends and for more updates regarding UPSC preparation subscribe to Shankara's academy youtube channel thank you