1.

Why do we need a Finance Commission and what is its

basic function?
In any country with a federal system of government, there is a division of
both functions as well as responsibilities between the federal or Central
government and the states. In India, this division is spelt out in the
Constitution. Consequently, we have what is known as a Central list, a State
list and, in the case of a few items where there is some unavoidable overlap,
the Concurrent list.
Once a government is charged with specific responsibilities, it must have
access to resources if it is to discharge these properly. Consequently, sharing
of resources based on a constitutional division of functions and
responsibilities is a critical element in a federal system.
The need for sharing arises because there is always a mismatch between
the responsibilities of the federating units and their ability to raise resources.
Moreover, from the point of view of both equity as well as administrative
efficiency, there are certain kinds of taxes that are best raised at the Central
or federal level. Income tax, for example, is a tax that is typically levied at
the Central level because otherwise it becomes far too cumbersome to
administer.
Transfer of resources from the Centre to the federating units is, therefore,
a common phenomenon in all federal countries. India is no exception. The
only difference is that unlike many other countries, our Constitution—under
Article 280—specifically provides for the setting up of a Finance
Commission every five years.
The basic function of the Finance Commission is to make
recommendations to the President (the Chairman and members of the
Commission are appointed by the President on the advice of the
government) regarding sharing of the taxes and the principles regarding
grants-in-aid. The need for grants-in-aid arises because even after tax
devolution, there are some states that continue to have a revenue deficit.
2. You’ve been appointed as the branch manager of a bank in a
remote place where credit offtake is minimal and so are
developmental activities. What are the three steps you will take to
reverse the situation?
Firstly, I would meet the local heads of the villages and will try to gauge
the cause of such major bottlenecks. Generally, in rural areas development
comes to a standstill owing to illiteracy and apathy of the official machinery.
I will call my senior officials from the cities in a measure to build up
confidence.
 Secondly, I would form a co-ordination committee comprising my
subordinates, the local chiefs and preferably teachers of local schools. The
committee will target the farmers and tradesmen of the area and tell them
how bank credits can help them make major changes in their earnings. The
committee will also educate these people as to how local moneylenders
exploit them and keep them permanently imprisoned in a debt trap.
Thirdly, this committee will target the educated but unemployed youths of
the village. To open up fresh avenues of employment before them, I would
organise vocational workshops in the villages and accordingly make
provisions for disbursal of loans to the rural youths.
3. The government’s decision to allow the sale of shares of
disinvested PSUs to domestic investors at a discount is a step in
the right direction. Give two arguments in support of and two
against it.
Support:
I. It is a commonplace knowledge that despite such a huge population
Indian stock markets are dominated by domestic financial institutions and
foreign institutional investors (FIIs) and domestic investors play only
marginal role. The main reason being: small investors with their limited
purchasing capacity fail to corner bulk of profitable chips. The direct offer of
reputed PSU shares to them will be the most juicy incentive for them and
they will aggressively make moves in the market. This may also trigger an
upswing in the fortune of the stock market which often goes under a spell of
gloom for the simple reason that it has become the function of FIIs’ whims
and fancies owing to their large volume capacity.
II. Such a move will send right signals in the international market.
Disinvestment — sale of PSU shares — is generally carried out in the
international market for the simple reason that they fetch higher prices there.
The contrary exercise of a substantial offering in the local market will
project Indian economy as a stronger entity which can respond to its own
demands without relying much on the assistance of external sector.
Against:
I. This is yet another populist exercise and is far away from economic
rationality. The offering at a discount of PSU shares in the domestic market
means collection in low volumes. This can rip apart the government’s target
of accruals through disinvestment and may shoot up its budgetary deficit.
II. The main interest of foreign investors in a GDR issue is the attached
possibility to acquire the company, at least partly, in the coming years. It is
the projection of having a say in the management of the company on the
sales block which makes foreign investors to go for these issues. The low-
volume equity offering can fail to attract their attention leading to a situation
where the government may find its target going haywire.
4. You have been invited to deliver a lecture at a seminar titled
“Swadeshi vs Videshinomics”. And you are supposed to speak in
favour of the latter assumption. What are the three points you
would highlight?
Firstly, I would take up the issue of globalisation. After the end of the cold
war, it is the economy or rather integration of global economies which has
almost become key to the international equations. In such a scenario, India
simply can’t afford to keep itself aloof. The experience of past four decades
clearly shows that swimming against the tide in the name of socialism has
not taken us anywhere.
Secondly, I would concentrate on the rich benefits of economic
integration. It is the commonplace knowledge that technologies used for
economic activities in India are generally outdated. And an integration with
the global economies will instil a sense of awareness for the utility of state-
of-the-art technologies in the minds of Indian enterpreneurs as in an open
environment they will find it difficult to compete with technologies of the
past.
Thirdly and most importantly, I would take up the issue of external debt
situation of the country. The country’s total short-term and long-term debts
comprise a huge amount. Now, the question is: will it be possible for the
country to generate such a colossal sum through its internal strengths? The
answer is a pointblank No. Such a sum could only be generated by creating
more business opportunities externally and for that ‘videshinomics’ is a
more pragmatic idea.
5. You have been appointed as the head of the small sector
units section of a business council and asked to prepare a
blueprint for the growth of small scale industries to be forwarded
to the government. What will be the three highlighting points of
your recommendation?
Firstly, I would emphasis on the creation of a special fund for SSIs. It is
common knowledge that most of the functioning small units in the country
are working with outdated machinery and in the face of the opening up of
several sectors, they are becoming non-competitive owing to production of
cheap, quality products. The funds created will be used to provide long-term
finances to the sick units.
Secondly, I would seek the countrywide expansion of the small sectors’
base through the initiation of the Central as well as state governments. A
substantial part of the funds will be utilised by the government to open up
new units in remote rural areas laced with modern machinery, and after a
brief training, these units will be handed over to a group of people on an
equal partnership basis. The partial ownership will make the group members
more responsible and therefore, competitive.
Thirdly, I would recommend the creation of specific export unit zones
comprising only small industries. The government will have to take the
responsibility of exports and the returns should be deposited to a fund for the
future growth of such enterprises. Furthermore, the government can create
several sub-units within such a zone and provide monetary incentives to the
best performing group. This will instil a sense of competition within the
zone, leading to a better performance.
6. You’ve been invited to speak in a seminar on “power sector
reforms”. What are the three suggestions you would make to seek
a turnaround of the sector?
Firstly, I would ask the government to control the transmission and
distribution (T&D) loss, which is among the highest in the world. This is
primarily because of the large-scale theft of electricity across the country. I
will ask the government to ensure that strict actions are taken against the
culprit.
Secondly, I will ask the government to take power completely out of the
subsidy list. Even the state governments should not be allowed to use power
as a subsidised commodity. Such an arrangement leads not only to huge
losses but also acts as a deterrent to any future investment. And this could be
devastating when the country needs to increase its power production by over
hundred per cent in the next ten years to cope up with the rise in demand.
Thirdly, I will suggest the government to look at nuclear energy as an
alternative source of power production. Though a little expensive, it takes
care of environmental pollution. And with many developed countries like
France using it as the main source of power, India too should follow suit.
7. Every year the government announces a hike in the
dearness allowance of the Central government employees. How
far is the move justified, given the ongoing privatisation? Give
two reasons in support of it and two against it.
For:
Firstly, the hike in dearness allowance is directly linked to the inflation
factor. The calculation is based on the increase in inflation in last one year.
The dearness allowance hike, therefore, is a right move as it helps millions
of employees to match their expenses with increasing inflation.
Secondly, such a move always helps the government in presenting a
human face. In India, despite a decade-old reforms process, all the basic
services are still under the control of the government departments. In such a
scenario, it becomes imperative for the government to announce such
monetary incentives to keep the morale of its huge workforce high.
Against:
Firstly, a step of this kind simply shows the government’s hypocritical
approach. On the one hand, it talks of reducing government’s role in
managing the state of affairs. On the other, it goes on to pamper a huge
workforce by giving such monetary incentives. While incentives are
important to keep public or private enterprises afloat, they should be
performance-based rather than being based upon illogical factors like
inflation. Government enterprises are already overstaffed with productivity
level much below the desired capacity. A step of this kind is only fraught
with populist elements where all necessity of fiscal prudence is given a go-
by.
Secondly, the Central govern-ment’s decision to hike dearness allowance
of its large number of employees will have an indirect multiplier impact on
the states. The state government employees, who are much larger in number,
will soon demand a parity treatment with Central government employees.
And the state governments will concede. The ultimate result is the
expenditure of thousands of crores of rupees in something which will not
result in even a minuscule enhancement in productivity. At a time when the
country is entering into a new millennium, it is imperative to take steps
aimed at changing the mindset, chimed more to the tenets of competition
rather than to the ones set in complacency. Thousands of crores spent on
development projects will yield more in the long term.
8. You have been appointed as the head of a committee constituted by
the government to make suggestions for the improvement of health
facilities in the country. What are the three suggestions you would
make?
(i) The healthcare mechanism in the country is absolutely pitiable.
According to a statistics, 20 per cent of the Indian population do not have
access to a hospital or dispensary within 10 km of their vicinity. My first
recommendation would be to create a special budgetary fund to establish at
least dispensaries in these remote places. The programme which should be
implemented with the assistance of the state governments will have a strict
timeframe attached to it—say a maximum period of two years.
(ii) The government would also be asked to initiate a programme for the
training of medical workers. Under this programme, young men from
different remote pockets will be picked up and trained to take care of at least
the common diseases. This will ensure that even in the absence of a
foolproof medical arrangement, people living in remote areas will have
somebody amidst them to advise them about their diseases.
(iii) Trained practitioners normally avoid serving in remote areas. I will
recommend the government to come out with a clause whereby anybody
coming out of the government-owned medical colleges will have to serve for
the first two years in a medically ill-equipped place. Failing which his/her
degree will be invalidated. The provision would be stringent, no doubt. But
it may lead to a turnaround in the medical care system in the country.
9. “Politicians facing the charges of corruption should be
debarred from contesting elections.” Give two points in favour of
and two against the viewpoint.
I am against the viewpoint because
(i) It would not be wise and reasonable to debar politicians from
contesting elections on account of corruption charges unless he or she is
proved guilty by the court of law. Sadly, politics has become a dirty game
today, where it is common these days to throw mud over one another’s and
frame false charges to tarnish one another’s image. Personal rivalry and ego
come out in public. So, there are extreme chances of the charges of
corruption against individual politicians being fabricated and intentional.
(ii) People are supreme in a democracy like ours and they should have the
sole right to decide who their representative should be. So, instead of
debarring politicians facing the charges of corruption, let their fate be
decided by the people during elections. Tainted politicians will themselves
be voted out of power and people will never accept them as their
representatives.
I am in favour of the viewpoint because
(i) Politicians who get elected are there to serve the people and should
work for their welfare instead of indulging in malpractices and looting the
public money. Politicians facing corruption charges should not be given the
chance to exploit their position and power again and again by contesting and
winning elections. Once they are charged with corruption, they must be kept
away from leading public life forever.
(ii) If such a thing happens, it will cleanse the field of politics from all dirt
and make it a prestigious area to work in. Not only will it sound like a
warning bell to all the scamsters and frauds, it will also keep the politicians
on the right track. It will send a message in the corridors of power — ‘be
honest or get out.’ In future politicians will have to think twice before
indulging in malpractices.
10. Some people feel that education in India should be made free.
Give two points in favour of and two against the view.
I am in favour of the view because
(i) As we all know that illiteracy is bottleneck to development, providing
education free of cost to all will mean achieving the target of hundred per
cent literacy in coming years and thus ushering in an era of development in
the country as well. It will ultimately place our country as a developed
nation before the world and people of India will lead a happy life.
(ii) If education is made free in India it will check the growth of child
labour to a large extent and also bring in social equality. Today poor people
who are not able to afford education for their children are forced to keep
them out of school and colleges. These children from poor families work in
factories and as domestic servants. Free education will attract them towards
schools and colleges where poor and rich both can study at same place and
gain suitable employment later on.
I am against the view because
(i) In our country the Government is already facing financial crunch and is
striving for ways to raise its income from various resources. And in such
condition if education is made free it will bring enormous burden on the
state exchequer. Also other vital areas like health, defence, poverty
alleviation programmes etc will suffer and government will not be able to
justice with them either.
(ii) Education is already much cheaper in India as compared to the many
Western nations. Government is giving various kinds of grants and subsidy
in this area. It makes some sense if the poor people are given free education
but giving it free for the rich segment also does not sound reasonable. In this
case government will have to impose additional taxes on the people to meet
educational expenses which will never be welcomed by the tax-payers.
11. “Kashmir problem has dragged on for long now, so it
would be better on the part of India to give up its claim over
Kashmir and free the region from its hold.” Place your views
either in support of or against the statement in not less than three
points.
I am against the statement because
(i) Kashmir has been a part of our country for decades now. India’s pride
and prestige is attached with it. Since 1947, the year when India gained
freedom and Pakistan was created, India has guarded the region against the
nefarious designs of the latter. Pakistan has tried its level best to snatch
Kashmir from India. It has forced wars on us on several occasions but has
been defeated every time. Its proxy war and insurgency still continues but
Indian military has successfully combated its evil intention every time. So,
giving up our claim over Kashmir will be like surrendering to Pakistan.
 (ii) Kashmir has been called the heaven on earth and it is a glory for the
Indians. Kashmir is attached to the sentiment of every true Indian. If India
gives up its claim on Kashmir due to any reason and under any
circumstance, it will never be acceptable to the citizens. Their sentiments
will be hurt and they will certainly revolt against such step.
(iii) The most dire consequence of such step will be giving air to
secessionist movement in the country. We have seen the trouble in Punjab
where there was demand for Khalistan. The secessionist movements still
continue in our north-eastern states. So, nothing which breaks our country
and is seen as an attack on our sovereignty can be justified. India stands on
the spirit of unity and it must remain intact. Kashmir is a part of India and
must remain with it at any cost.
12. Many people think that democracy has failed to deliver in
this country and the system of governance must be changed. Give
two points in favour of and two against the viewpoint.
I am in favour of the viewpoint because
(i) Democracy has been in our country for more than five decades now
ever since India gained freedom. But it is sorry to say that when we take
stock of the development in key areas like health, education, employment
and family welfare, the result is still far from satisfactory. Unemployment,
poverty, illiteracy etc haunt us and we are still a developing nation. The
system of governance has certainly failed to bear the desired results.
(ii) Our forefathers had dreamt of a democratic pattern of governance
based purely on the concept of public service and development. Honesty and
moral integrity was the essential part of the life of our political leaders and
people’s say carried weight for their representatives. But the scene has
worsened over the years as corruption and malpractices have seeped in the
system. Scams are a daily story. Political leaders are more concerned for
their own benefits. Therefore, some other alternative must be thought of.
I am against the viewpoint because
(i) When we look around the world we see more and more countries
adopting a democratic pattern of governance over the years. The super
power of the world, the US, has democracy and has achieved much
progress. So, it seems to be the best form of governance today and it would
be improper to replace it with any other system.
(ii) It is not wise to throw the baby out with the bathwater. Democracy
has not failed to deliver but the caretakers of the system have failed to
deliver in this country. So, it is for the media, judiciary and mainly the
citizens to expose the corrupt politicians and bureaucrats and drive them out
of power. If democracy consists of clean people running the system of
governance, nothing is better than that.
13. “We should invite foreign investment in the area of
education.” Give two points in favour of and two against the
perception.
I am in favour of the perception because
(i) Foreign investment in our education sector will bring great financial
relief to the government. Education is a key area which needs huge
expenditure on the part of the government. And the government is already
facing paucity of funds. In this era of globalisation when foreign investment
is taking place in areas like science and technology, health, industry and
infrastructure, education should not remain isolated.
(ii) Foreign investment will ensure quality education, both in
humanitarian and technical institutions. Research and training
programmmes, which need advanced equipment and expertise, will get a
boost. It will grant foreign expertise to our students and make them more
knowledgable and competent in order to gain employment in foreign
countries also.
I am against the perception because
(i) Education should not be put in the same line as industry, infrastructure
and other such areas. It is not a commercial area which needs foreign
investment and influence. As it is the internal matter and responsibility of
our government, resources should be generated within the country to meet
the expenses. By welcoming foreign investment in education, we shall be
inviting direct interference from foreign investors to twist and turn the
contours of education in our country.
(ii) Foreign investment in education has no social objective behind it. It
will certainly make education much expensive and will go out of the reach
of the poor section of the society. While the advantaged class will be able to
afford it, the disadvantaged class will be left out. It will be expensive and
elite education and will defeat the government’s social objective of
“education to all”.
14. “Any kind of political interference in the functioning of the
bureaucracy must be stopped in the larger interest of the nation.”
Give two points in favour of and two against the statement.
I am in favour of the statement because
(i) In our country the role and responsibility of the bureaucracy in
ensuring all-round development is crucial. It is assigned with the task of
implementing various welfare and developmental schemes which take the
nation on the path of peace, progress and prosperity. An kind of political
interference or pressure with an ulterior motive thus hits the pace of
development and people’s welfare.
(ii) It has been observed in recent years that political interference in the
functioning of bureaucracy has grown beyond limits. It has resulted in
rampant corruption prevailing everywhere. Honest and dedicated
bureaucrats are forced by dishonest politicians to obey their unfair
commands. If they resist they are shown the door. Many bureaucrats fall in
the trap and indulge in corrupt practices only with the politicians. So, if this
open loot of public money has to be checked, political interference in the
functioning of bureaucracy should be stopped.
I am against the statement because
(i) It is quite sad to admit that bureaucracy in India still functions on the
British pattern. It is often charged with red-tapism and high-handedness in
terms of its dealing with the common people. So, adhering to the norms and
principles of democracy, some amount of political interference in the
functioning of bureaucracy is necessary to make it liberal and responsive to
the public.
(ii) Politicians are directly answerable to the common people. It is their
duty to look after the well-being of their voters and the developmental works
in their region. So, they have to interfere in the functioning of bureaucracy if
officials do not do their task properly and people are deprived of the benefit
of developmental schemes.

15. “For a predominantly agricultural country like India,

industrialisation has to now become the key to its economic
development.” Give at least three points supporting the cause of
this statement.
Following are the points:
(i) The conditions for indus- trialisation are favourable in India. We have
vast manpower and enough resources which can be utilised for the economic
benefit of our country. Through industrialisation not only will we be able to
create employment opportunities for the masses but also their living standard
will increase. Industrial development alone can provide a continuing and
secure basis for a rapid growth of income.
(ii) In recent times we have seen that beyond certain limits, the demands
of the people are usually for industrial products alone. The income elasticity
of demand for the manufactured goods is high and that of agriculture
products low. So, industrialisation would certainly bear desired results on
this front also by catering to the choice and demands of the people.
 (iii) The income elasticity of export goods of agricultural countries like
ours is low, while the income elasticity of import goods is high. The
disparities in elasticities point to the difficulty of earning adequate foreign
exchange. The solution can be industrialisation. Such industries may be
established as are in the nature of import-substitutes so that the gap between
the elasticities of imports and exports is bridged.
16. “All kind of development is environmentally destructive,
therefore it must be stopped for the sake of mankind.” Give two
arguments in favour of and two against the opinion.
I am in favour of the opinion because
(i) We all know where our environment lies today after the onslaught of
industrialisation and scientific and technical advancement in the name of
unmindful development. Pollution has become the most dreaded word today.
Degeneration and destruction of our ecology in the name of development
have brought about the ill-effects of pollution in the atmosphere, water and
on the ground. We are all affected by pollution and if the environment is not
saved in time, mankind will cease to exist very soon.
(ii) In the name of development we have cleared our forests for setting
industries, poisoned the rivers with untreated chemicals and effluents have
flown in it. Millions of people have been displaced from their native places
for the sake of big dams and factories. So, mankind cannot be compensated
anyway in such a scenario. Hence, stop development for people at the cost of
people.
I am against the opinion because
(i) Development is a continuous process which goes on with the passage
of time. When the entire world is on the path of rapid development in
different areas we cannot apply brakes on it. We have to devise methods of
development that create the least pressure on our environment but we cannot
afford to become static and suffer the handicaps that our ancestors had to
bear for want of proper development of infrastructure, social services etc.
(ii) If development has destroyed environment, it is not always the case
that it is inevitable. Mostly, the culprit has been our neglect. But with so
much of environmental awareness, industrialists are now turning ethical. It is
a better idea to replenish the environment than bringing development to a
standstill.
17. “We should not allow free electricity to farmers as is the practice
in some states.” Give two points in favour of and two against the
statement.
I am in favour of the statement because
 (i) Nothing comes without cost behind it, so nothing should be given for
free to any segment of the society. We have had enough of subsidies and
free quota and items for certain privileged sections for decades. Such
practices have only taken the nation backward so far. It hampers the
development of the country in key areas. Our economy cannot afford
continuous freebies like these without a check.
(ii) Such steps like allowing free electricity or subsidies on various items
to farmers is the result of vote-politics in our country. Keeping a certain
segment of society on support system for long not only creates lethargy
among them but also kills the spirit of competition. Due to such practices
farmers have also started demanding government help at every step. This is
not a progressive mentality and has resulted in the backwardness of
agriculture.
I am against the statement because
(i) We must not forget that India is a land of farmers where more than 70
per cent of its population reside in villages and agriculture is their main
occupation. Agriculture sector has been the mother of our economy but in
recent years it has remained neglected due to government’s faulty policies.
Also, ever-changing monsoon pattern, drought, flood etc have hit the
agriculture sector hard. Today it is in dire state and if we need to revive this
sector, supporting steps like free electricity to farmers is always welcome.
(ii) Giving free electricity to farmers is not so big an issue to calls for
serious debate. It is the prerogative of the state governments to draw and
implement policies for people’s welfare. When the government announces
tax benefits for salaried class or certain facilities for the business class or
sportspersons, no one raises a question but when the schemes for the benefit
of the rural community involved in farming are announced, it becomes a
problem. It is not fair.
18. “As per the need of the time, we should allow reservations in
jobs in the private sector for the backward classes and
communities.” Give two arguments in favour of and two against
the statement.
I am in favour of the statement because
(i) Reservations have always been a legitimate instrument for social
change in India. Any kind of step that is taken to ensure the welfare of the
weaker sections of the society is welcome. Reservations in jobs in the
private sector will certainly uplift the status of the backward classes and
communities in the society. Being in dire state they are in desperate need for
such supporting steps.
 (ii) We can see that vacancies in the government sector has virtually
dried up. Not only has the number of vacancies gone down, but also an
apparent step for minimising the staff strength is being taken. So, we have to
allow reservations in jobs in the private sector for the backward classes and
communities. If the private sector gets different kinds of facilities and
privilages from the government, they must share this social responsibility
also.
I am against the statement because
(i) The most sacred underlying principle of private enterprise is profit
motive. That is how one of the greatest capitalist economies of the world,
the United States of America, was built. To be able to be profitable in
today’s competitive marketplace, a business needs to be unfettered by
regressive ideas like job reservations. It will certainly stifle competition and
bring the economy to ruin.
(ii) Reservations have done no good to our society so far. The policy
having been in existence for years has not been able to bring equality in
society or wipe out poverty. This step, if taken, will do nothing but only
divide our society and create tension or result in clashes among different
castes and communities. It is unfair to snatch the opportunity of employment
from one caste or community and hand it over to another.
19. “Lack of higher education among most of our political leaders is
responsible for the ills and problems our nation is facing today.
So, only people with proper educational background should be
given the chance to contest elections and govern the nation.” Give
two points in favour of and two against the viewpoint.
I am in favour of the viewpoint because
(i) When we see the live telecast of the proceedings in parliament or the
legislative assemblies, which is haunted by cheap arguments and personal
attacks and unruly scenes, it becomes evident which direction our elected
leaders are taking this nation in. Precious time meant for discussion on
policy matters and other crucial issues and on which crores of public money
is spent is wasted.
(ii) Our elected leaders whose educational background is not sound find
it difficult to do justice to their duties and responsibilities of taking the
nation ahead. They have little knowledge about the process of development
as their vision and understanding is limited. They are the least concerned
about the advancement of science and technology around the world and its
application in various areas of development. Their ignorance hampers the
progress of the nation.
I am against the viewpoint because
 (i) It is quite unfair to hold the less educated politicians responsible for
the ills and problems our nation is facing today. It is a charge against nearly
half of the population of India that is illiterate. On the contrary, it has been
seen that whereas highly educated politicians remain confined to their air-
conditioned offices discussing on policy matters, less educated politicians
work for grass root development.
(ii) Denying the right to contest elections to illiterate or less educated
people is against the spirit of our constitution. In a country where seventy
per cent of its population live in villages, having agriculture as their main
occupation, it is not fair to debar them from contesting elections or
governing the nation only on the ground of education. Intellectuals and well-
educated politicians cannot wipe out the problems of rural India, as we have
seen during all these years.
20. If India has to attain 100% literacy it will have to focus
primarily on the rural areas. So, suggest three effective steps for
improving literacy in our rural areas.
Following are the steps:
(i) First and foremost, the condition of primary education must be
improved in our villages, which are otherwise in a grim situation. Primary
schools operating without roofs or in damaged buildings sans proper
infrastructure is a common sight in the rural areas. Also, inadequate number
of teaching staff adds to the chaos. Such conditions make an adverse impact
on the delivery of primary education which is the backbone of literacy. To
give literacy a boost, especially in the rural areas, we will have to address
the problems surrounding primary education.
(ii) It has been seen in our rural areas that there is a trend of child labour.
Poverty being the reason, most of the families in villages have to work all
together for their livelihood and even children are not spared. They are
forced to support their family. In such condition they have neither the will
nor the way to go to schools. So, child labour is a bottleneck to improvement
of literacy and it has to be checked at any cost. People in rural areas must be
counseled to change their mindset and send their children to schools.
(iii) It is a common perception in our country that where lectures don’t
work incentives do. In our villages even the adult population consisting of
farmers, labourers, weavers etc can be attracted towards literacy classes by
providing them certain incentives. If we create interest for literacy among
the elders, they will certainly want their children educated along with
themselves. Even in schools concepts like free meals and dresses can attract
children.
 21. “We should stop participating in international sports events
like the Olympics, Commonwealth Games or Asian Games.” Give
two arguments in favour of and two against the opinion.
I am in favour of the opinion because
(i) The results after participating in such events itself are an indication of
where we stand at the international level in the world of sports. We cannot
tolerate negative performance of the sportspersons from our country at the
international meets in a continuous manner. Year after year the same poor
show continues. So, instead of bringing disgrace to our nation it would be
better if we skip such events.
(ii) As is the example of the recent Olympics before us, we see nothing
but wastage of public money in any such sports event. These meets bring a
picnic-like opportunity for politicians and bureaucrats apart from a large
number of sportspersons who form the contingent. Crores of rupees are
spent by the government over their journey and stay. It serves no purpose for
the country as nothing comes out of it.
I am against the opinion because
(i) It would be naive if we think of keeping ourselves away from
international sports events. This escapist attitude will serve no purpose and
instead bring a disrepute to the name of our country. Not all the countries
that participate in mega sports events bag medals but there is the spirit of
competing that counts. So, we must join the race and forget about the rest.
(ii) Participating at the world level sports events gives our sportspersons
an opportunity to compete with the best. They get a wider platform and
larger audience where their skills, stamina and nerves are put on trial. They
get to know about the latest equipment, techniques and happenings going
around in the world of sports. So, they get rich experience and immense
benefit from being a part of such events.
22. Suggest three effective measures to check the incidents of
crime against women which are on the rise, especially in our big
cities.
Following are the suggested measures:
(i) First and foremost, women should develop a sense of security among
themselves. Especially in our schools and colleges, girls should always be in
groups and avoid any contact with strangers. They should also know some
art of self-defence like karate and boxing. They must build some inner
strength and confidence to face any eventuality with courage. Such attitude
will bear positive results in checking crime against women.
(ii) Dowry has been seen as one of the oldest and principle causes of
crime against women. Burning of wives, their physical and mental torture
and related incessant agony are found in the cases related to dowry.
Therefore, this social evil has to be driven away at any cost. Legal measures
against dowry must be made much stringent and harsh so that this trend does
not continue anymore in our society.
(iii) Last but not the least, we can observe that nowadays the widespread
prevalence of pornographic literature, films and music videos hurt the
interest of women. Increase in rape and molestation cases are the direct
result of these. The safety and security of women, especially the youngsters,
is always at risk if such materials are easily available in the market. We must
ban them immediately.
23. “The time has now come that we would have a presidential
form of government in place of the parliamentary form of
government.” Give two points in favour of and two against the
statement.
I am in favour of the statement because
(i) The days of single-party governance are over now. We are witnessing
a disturbing growth of coalition politics. These days when no political party
get the people’s mandate in their favour to rule on their own, all sorts of
compromise and bargain are made to capture power. Political parties with
entirely different ideologies and policies who een fight elections against
each other come under one umbrella to share power. The routine squabbles
among the ruling partners push the national problems on the backburner and
good governance takes a back seat. So, the presidential form of government
is the best option.
(ii) It has been proved beyond doubt that parliamentary government has
resulted in many ills in the system of governance. Criminalisation of
politics, rampant corruption, horse-trading etc are some of the evident
examples that call for am urgent replacement of the system. If we need to
save the nation from the ill-effects of the parliamentary government we have
to switch over to the presidential form of government.
I am against the statement because
(i) Parliamentary governance is truly representative but such is not the
case with the presidential governance. We cannot go against the spirit of our
democracy. In parliamentary goernance people from all segments, castes,
creeds and communities and also from the remote and rural areas get proper
representation. People even from the grassroots have their say in the system.
But in the case of presidential government the scenario is different.
(ii) It is wrong to throw the baby away with the bathwater. Parliamentary
form of government is the best form of governance and more and more
nations have been adopting it. If there is something wrong it has to be
corrected. Vigilant and powerful media, electoral reforms, people’s
awareness etc are some of the aspects which can cleanse the system of dirt.
So, instead of talking of changing the system, why not take steps for its
better functioning?
24. The issue of increase in petroleum prices has been a debated
topic. How are petroleum prices determined in India and how do
deficits occur in oil pool account?
Petroleum prices were determined by means of a complex system known
as the administered price mechanism (APM), which has changed
considerably over the years. The APM started in the early 1970s when prices
of petroleum products were delinked from import prices and was instead
decided according to a cost-plus mechanism with the government fixing
prices and rates of returns. The government then decided to subsidise some
of the petroleum products like LPG, kerosene and diesel by overpricing
products like petrol and aviation turbine fuel (ATF). In other words, instead
of direct subsidy from the budget, the APM provided for a cross-subsidy
system within the petroleum sector. Inflows and outflows were accounted
for through a set of accounts, separate from the budget, called the oil pool
account.
Like every accounting system, there is an inflow and outflow system in
the oil pool account. Products like petrol and ATF provide for the additional
revenue which are then diverted to meet the subsidy bill in the oil pool
account. Every time, the additional revenue collected is more than the
subsidy bill, the oil pool generates a surplus, whereas everytime, the subsidy
bill is higher than the surplus generated, the pool is in a deficit.
25. What is a stock market index and what does its ups and
downs mean? And also elaborate its significance.
Stock market index is like a good thermometer which accurately captures
the overall changes in the stock market. Movements of the index represent
the returns obtained by typical share portfolios in the country.
The ups and downs of an index reflect the changing expectations of the
stock market about future dividends of the country’s corporate sector. When
an index goes up, it is because the stock market thinks that the perspective
dividends will be higher than previously thought. When prospects of
dividends in the future become pessimistic, the index goes down. An ideal
index gives instant-to-instant readings about how the stock market perceives
the future of the corporate sector.
So far as its significance is concerned an index has traditionally been
used as an information source: by looking at it you come to know how the
market is faring. But in recent years, indexes have found direct applications
in finance, in the form of index funds and derivatives. These applications are
now a multi-trilllion dollar industry worldwide. Indexes also serve as a
benchmark for measuring the performance of fund managers.
26. “We must bring the agricultural income in the tax net in
our national interest.” Give two points in favour of and two
against the statement.
I am in favour of the statement because
(i) Keeping agricultural income out of the tax net has only helped the big
farmers. Farmers owning several acres of land in our country have hit the
jackpot, particularly after the green revolution of the Sixties. Induction of
high-yielding crop patterns, expansion of dependable irrigation facilities, etc
have ensured their healthy returns. So there is no reason why such affluent
farmers should not be taxed in the same manner in which people with other
sources of income and salaried class are taxed.
(ii) Bringing agricultural income in the tax net will help minimise tax
evasion. As agricultural income is exempted from tax and considered as total
income, taxpayers have adopted an easy method of tax evasion. They have
purchased a few farms. Though the income from such farms is not very high,
they claim that they are deriving high income from their agricultural land.
By this method they show their taxable income as agricultural income and
thus get away from the real income tax.
I am against the statement because
(i) Bringing agricultural income in the tax net will hit the small farmers
and labourers hard. We are quite aware of the fate of small farmers and
agricultural labourers who are dying of starvation in states like Orissa,
Madhya Pradesh, Rajasthan, etc. The miserable condition of such farmers is
often reported in our media. Therefore, it would be an injustice if we put
additional burden on them in the form of tax.
(ii) Agriculture has not remained a lucrative area with handsome returns
any more as it was in the past. The contribution of agriculture to our GDP
has lessened in recent years. Changing weather patterns, uncertain monsoons
resulting in flood and drought, and rising input costs of fertilisers, seeds,
pesticides, insecticides, fuel etc have marred the growth of agriculture.
People from agricultural communities are shifting to other profession. In
such a situation in the place of supporting agriculture if we impose tax upon
it, this will be a negative approach.
27. Our political parties give political colour to every incident
or problem which is unfair. Give two points in favour of and two
against the viewpoint.
I am for the viewpoint because
(i) It has become an ugly trend among our political parties to give
political colour to every incident or issue. Instead of solving the problem, it
aggravates and intensifies it. For instance, in the cases of riots and
communal strifes that have taken place in the past, political parties have only
added fuel to the fire. Instead of controlling the situation and pacifying the
people, they have created rift among communities and made them fight
against each other.
(ii) Political parties politicise every incident or problem to serve their
own purpose. Whether the incident or the problem is the result of natural or
human tragedy, political parties vie with one another to derive maximum
gain. They create obstacles in the way of the ruling party and administration
and care little for the relief and rehabilitation works. Even in the time of
human sufferings they seek their own advantage.
I am against the viewpoint because
(i) Whenever political parties come into the scene after any incident or
problem, they are blamed for giving political colour to it. This perception is
not right. Politics cannot be seen as something separate from our social life.
The objective of politics itself is social service. So, naturally the political
parties will indulge in any incident or problem which our society faces.
(ii) In today’s time nothing is taken care of or noticed if it does not get
proper backing. It is a proverb that even a mother doesn’t feed her child if
he/she doesn’t cry. So, to get media attention and put pressure on the ruling
party and authorities it is necessary to give political backing to any incident
or problem.
28. “If we are really concerned about our wildlife and forest
conservation we must shift the tribal population far away from
the forest areas.” Give two points in favour of and two against the
perception.
I am in favour of the perception because
(i) If we need to save our wildlife and forests we must take some hard
steps like this one. Today illegal hunting and poaching of wild animals and
large-scale felling of trees in our forests is a prime concern for all of us. It
has often been reported that the tribals are directly or indirectly involved in
such activities. They show little care for the law of the land.
(ii) Today we are witnessing a sort of human encroachment upon nature.
Tribals living near or within forest areas are regularly encroaching upon the
forests. They are clearing forests in the name of farming and cultivation,
which is not only posing a great threat to our ecology but also pushing the
wildlife against the wall. Diminishing forest areas give our animals little
space to roam around and lead their natural life.
I am against the perception because
(i) This is an emotional issue which must be dealt with utmost care.
Tribals and forests have an age-old relation and both are interdependent on
each other. Tribal culture and customs are based on forests wildlife—flora
and fauna of nature. Tribals in most cases lead a far different lifestyle from
us even today. If we snatch their natural habitat from them it would be
difficult for them to survive.
(ii) Tribals worship nature. They are the saviours of forests and wildlife.
So, this notion is completely wrong. The government and the business lobby
are responsible for destroying our forests and endangering the wildlife. It is
the tribal forest-dwellers who continue to rebel against forest destruction by
the government and commercial interest. In the past years many tribals have
laid their lives while resisting ecological destruction of their lands and
forests for mining and dams. In states like Orissa and Jharkhand tribals are
regenerating and protecting their forests on their own.