Today in History (January 31^th,1958)

The US launched the first Earth satellite.

Let’s Revise

Q.1) Who was recently honored with the Padma Shri for her contributions to Goa’s liberation movement?
a) Vaman Sardesai
b) Libia Lobo Sardesai
c) Lt. Gen. J.N. Chaudhuri
d) Liang Wenfeng
Answer: b)
Explanation: Libia Lobo Sardesai, a 100-year-old freedom fighter, was awarded the Padma Shri for her significant contributions to Goa’s liberation movement.

Q.2) Which underground radio station did Libia Lobo Sardesai run to support Goa’s liberation?
a) Voice of Freedom of Goa
b) Radio Goa
c) Goa Liberation Broadcast
d) Voice of India
Answer: a)
Explanation: Libia Lobo Sardesai, along with her partner Vaman Sardesai, ran the underground radio station ‘Voice of Freedom of Goa’ from 1955-1961 to counter Portuguese propaganda.

Q.3) What is DeepSeek recently seen in news?
a) It is a Chinese-made music streaming app.
b) It is an AI-powered chatbot created by a Chinese company.
c) It is a social media platform developed in China.
d) It is an educational tool for students.
Answer: b)
Explanation: DeepSeek is an AI-powered chatbot created by a Chinese company. It competes globally with AI models like ChatGPT.

Q.4) Which of the following is a unique feature of the DeepSeek AI chatbot?
a) It is less practical than other AI models.
b) It uses the latest and most expensive chips.
c) It includes a censorship layer reflecting China’s control over information.
d) It focuses only on Western cultures and languages.
Answer: c)
Explanation: DeepSeek’s base model includes a censorship layer, likely reflecting China’s tighter control over information.

Q.5) What was Operation Vijay?
a) A diplomatic mission by India to gain support for Goa’s liberation.
b) A military operation that led to Goa’s liberation in 1961.
c) The economic blockade of Goa by India in 1954.
d) A peacekeeping mission to end the Portuguese rule in India.
Answer: b)
Explanation: Operation Vijay was a military operation launched by India on December 17, 1961, which resulted in the surrender of Portuguese forces and Goa’s liberation.
Understanding Budget in India-Part-1

Summary of Today’s News

BUDGET AND CONSTITUTIONAL PROVISIONS

• Budget is a statement of the estimated receipts and expenditure of the Government in a financial year.
• Word budget is nowhere mentioned in the constitution. In Article 112 of the Indian Constitution, it is referred to as the Annual Financial Statement.
HISTORY OF BUDGET
Pre Independence:
• Budget was first introduced on 7th April, 1860,
• two years after the transfer of Indian administration from East-India Company to British Crown.
• The first Finance Member, who presented the Budget, was James Wilson.
• Mr. Liaquat Ali Khan, member of the interim Government presented the budget of 1947-48.
Post-Independence:
• India’s first Finance Minister Sh. R.K. Shanmukham Chetty, presented the first Budget on 26th November, 1947.

THE BUDGET CONTAINS:
• Estimates of revenue and capital receipts,
• Ways and means to raise the revenue,
• Estimates of expenditure,
• Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year, and
• The economic and financial policy of the coming year, i.e., taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects.

COMPONENTS OF BUDGET

REVENUE BUDGET– consists of:
1. Revenue Receipts are receipts which do not have a direct impact on the assets and liabilities of the government. It consists of the money earned by the government through tax (such as excise duty, income tax) and non-tax sources (such as dividend income, profits, and interest receipts).
2. Revenue Expenditure is the expenditure by the government which does not impact its assets or liabilities. For example salaries, interest payments, pension, and administrative expenses.
CAPITAL BUDGET– It includes:

A) Capital Receipts indicate the receipts which lead to a decrease in assets or an increase in liabilities of the government i.e
1. Money earned by selling assets (e.g. disinvestment from public enterprises).
2. Money received in the form of borrowings or repayment of loans by states.

B) Capital expenditure includes:
1. The long-term investments by the government on creating assets such as roads and hospitals
2. The money given by the government in the form of loans to states or repayment of its borrowings

MAJOR BUDGET DOCUMENTS
• Annual Financial Statement (under Article 112) ,
• Demands for Grants (under Article 113),
• Money Bill (under article 110)
• Fiscal Policy Statements mandated under FRBM Act –
• Macro-Economic Framework Statement.
• Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement.
IMPORTANT CONSTITUTIONAL PROVISIONS RELATED TO BUDGET
1. Article 109 -Special procedure in respect of Money Bills
2. Article 110- Definition of Money Bills
3. Article 112 -Annual Financial Statement
4. Article 113 -Procedure in Parliament with respect to Estimates.
5. Article 114 -Appropriation Bills
6. Article 115 -Supplementary, Additional or Excess Grants.
7. Article 116 -Vote on account, Vote of credit and Exceptional Grant
8. Article 117 -Special provisions as to Financial Bills
9. Article 150 -Form of accounts of the Union and of the States
10. Article 151 -Audit reports
11. Article 265 -Taxes not to be imposed except by authority of law
12. Article 266 -Consolidated Funds and Public Accounts of India and of the States
13. Article 267 -Contingency Fund
14. Article 275 -Grants from the Union to certain States
15. Article 280 -Finance Commission
16. Article 281 -Recommendations of the Finance Commission
17. Article 292 -Borrowing by the Government of India