#upscquotes #essay #GSI #GSII #GSIV

Syllabus: #GSII- Government Policies and Interventions

Highlights:
1. The EU is implementing a carbon border adjustment mechanism (CBAM) to tax imports from countries without carbon pricing, aiming to address climate change. Developing countries, like India, reliant on EU exports, are concerned about its impact on trade.

2. The article brings attention to the EU's apparent hypocrisy in implementing CBAM while struggling to meet its own environmental targets. It urges India to formulate a carbon pricing strategy that reflects its development priorities.

3. Suggested policy responses:
👉India may challenge the tax at the WTO for being discriminatory.
👉India should create its own innovative pricing policy
👉By aligning carbon pricing with its development goals, India can seek equivalence with CBAM based on common but differentiated responsibility.

#keywords: Carbon border adjustment mechanism (CBAM),Carbon leakage, Fit for 55 Agenda, Common but differentiated responsibility

Syllabus: #GSII- Government Budgeting.

Highlights:
1. The article addresses India's fiscal deficit and public debt concerns, worsened by the COVID-19 pandemic. The high deficits and debt have implications for the economy and future generations.
2. The burden of large deficits and debt affects the allocation of resources for essential sectors like education, healthcare, and infrastructure.
3.Fiscal consolidation is crucial, and technology-driven improvements in tax administration may help increase tax revenues.
4. Suggestion:
👉Rethinking the role of the state by reducing interference in market activities and encouraging disinvestment.
👉Cash transfers over subsidies for redistribution
👉Enforcing fiscal responsibility rules for better economic stability.

#keywords: Tax-GDP ratio, Fiscal Responsibility and Budget Management, Green transition, Fiscal consolidation, Financial repression

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