Subsidies Current Affairs - 2019
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India’s fiscal deficit in the first eight months of FY2018-19 rose to Rs 7.17 lakh crore, hitting around 115% of the budgeted target for the current financial year, breaching the target of Rs 6.24 lakh crore set by the government for the financial year 2018-19.
Fiscal Deficit is the difference between total revenue and total expenditure of the government. The borrowings are not included while calculating the total revenue. Fiscal Deficit gives an indication about the total borrowings required.
Revenue of the Government
The Government of India had received Rs.8,96,583 crore (49.32% of corresponding BE 18-19 of Total Receipts) up to November 2018. It comprised of Rs. 7,31,669 crore Tax Revenue (Net to Centre), Rs. 1,38,637 crore of Non-Tax Revenue and Rs. 26,277 crore of Non-Debt Capital Receipts. The Non-Debt Capital Receipts consists of Recovery of Loans (Rs.10,467 crore) and Disinvestment of PSUs (Rs. 15,810 crore).
Expenditure of the Government
The expenditure of the government of India was Rs.16,13,208 crore (66.06% of corresponding BE 18-19), out of which Rs.14,21,778 crore is on Revenue Account and Rs.1,91,430 crore is on Capital Account. Rs.3,48,233 crore accounted for Interest Payments and Rs.2,19,046 crore accounted for major Subsidies under revenue account.
The Union Ministry of Heavy Industries and Public Enterprises has withdrawn subsidy given to mild hybrid vehicles under FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) scheme.
Earlier, mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles were given incentives under the FAME India scheme.
What is mild hybrid vehicle?
- A mild hybrid vehicle has an electric motor, which on its own cannot run a vehicle but assists normal engine by using recovered energy stored in a battery and helps save fuel
- It uses the energy generated while applying the brakes and turns it into electric energy which is then stored in a battery. This energy can then be used to turn the starter motor when the car’s start stop system needs it.
- Mild-hybrids are 7-15% more fuel efficient as compared to conventional hybrid systems that can run on pure electric power for short distances too.
About FAME India Scheme
- The FAME India scheme was launched in 2015 under National Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly vehicles in the country.
- It objectives is to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.
- It will also support the hybrid or electric vehicles market development and its manufacturing eco-system in the country in order to achieve self-sustenance in stipulated period.
- It is being administered by the Heavy Industries Ministry. It will provide demand incentives to electric and hybrid vehicles from two-wheeler to buses.
National Electric Mobility Mission Plan (NEMMP) 2020: It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. It has set ambitious target of 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.