Consolidated Fund of India Current Affairs - 2020

Status Paper on Government Debt released

On May 22, 2020, the Ministry of Finance released Status Paper on Government Debt 2018-19. According to the report, the overall debt of centres and states declined by 68.7% in March 2018 to 68.6% in 2019.

Highlights

The Status Paper on Government Debt is being produced by the Ministry of Finance since 2010. Current debt of India stands at Rs 1.3 crore crore.

Key Findings of paper

The debt of central government dropped marginally from 45.8% in 2017-18 to 45.7% in 2019, The external debt was 2.7% of GDP. The Average Interest Cost of the centre remained unchanged in the year 2018 to 2019. Around 94% of centre’s liabilities were of domestic debts.

The tenure of the longest security was 37 years.

Government Debt

The Government Debts are classified as internal debt and external debt. The Internal Debts include non-marketable and marketable debt. External debt refers to debt borrowed from all the sources outside the country.

Government Liabilities are classified into liabilities in public account and debt contracted against Consolidated Funds of India.

COVID-19: President Ram Nath Kovind to donate 30% of his salary for a year

The President Ram Nath Kovind recently announced that he is to donate 30% of his salary to aid the GoI in the fight against COVID-19. The Rashtrapti Bhavan will also follow set of restrictions under the instruction of the President to save money and aid the fight. This is being done to set an example to economize expenditure and save money to fight against COVID-19

Highlights

Apart from the salary cut, domestic tours and programmes of the president will also be cut. This will help in social distancing restrictions and also will help to minimize expenditure. Also, the president will minimize his at home ceremonies by decreasing his guest lists, reducing food menu and also by using lesser flowers and decorative items. The repair and maintenance works of Rashtrapati Bhavan are to be minimized.

Salary of the president

The Union Budget 2018 increased the salaries of president and vice president of the country. Currently, the salary of president of India is 5 lakhs per month. Before the raise, it was Rs 1.5 lakhs per month. Also, the vice president salary was increased from Rs 1.10 lakhs to Rs 4 lakhs. The salaries of state governors were also increased to Rs 3.5 lakhs. All the raises were introduced by the Union Budget 2018

Article 59

The article says that the emoluments and allowances of the President of India shall not be reduced during his term of office. But in this case, the President is offering it as donation at his will and the salary is not being cut.

The article also empowers the President to use his official residence without rent.