Government

Schemes

JUNE 2022
FINANCIAL INCLUSION IN INDIA AND ITS CHALLENGES
What is Small Savings Scheme?
Economics | GS3: Indian Economy
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Small saving schemes
Mains level : Read the attached story
Economists expect the Centre to raise the
interest rates paid on small savings schemes for
the July to September 2022 quarter.
Small Savings Scheme
• S mall Savings Schemes are a set of savings
instruments managed by the central
government with an aim to encourage
citizens to save regularly irrespective of
their age.
• They are popular as they provide returns
higher than bank fixed deposits, sovereign
guarantee and tax benefits.
How is it managed?
• S ince 2016, the Finance Ministry has been
reviewing the interest rates on small savings
schemes on a quarterly basis.
• All deposits received under various
schemes are pooled in the National Small
Savings Fund.
• The money in the fund is used by the Centre
to finance its fiscal deficit.
What are the different saving schemes?
The schemes can be grouped under
three heads
1.Post office deposits
2.Savings certificates and
3.Social security schemes
WOMEN EMPOWERMENT ISSUES - JOBS,RESERVATION AND EDUCATION
Nanhi Pari Programme
Governance | GS2: Government Scheme/Policies
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Nanhi Pari Programme
Mains level : Not Much
The Nanhi Pari programme was recently
launched by the Northwest Delhi district
administration.
Nanhi Pari Programme
• N
 anhi Pari programme aims to provide a
one-stop solution to parents, eliminating
their need to visit various offices to obtain
documents.
2 GOV T SCHEMES
(1) Post Office Deposits
• U nder this we have the savings deposit,
recurring deposit and time deposits with 1,
2, 3 and 5 year maturities and the monthly
income account.
• The savings account currently pays an
interest of 4% per annum and can be
opened individually or jointly with an initial
investment of Rs 500.
• The recurring deposit that pays 5.8% a year
compounded quarterly matures after 60
months from the date of opening.
• It allows investors to save on a monthly
basis with a minimum deposit of Rs 100
per month.
• Investments under the 5-year time deposit
up to Rs 1.5 lakh further qualifies for benefit
under section 80C of Income Tax Act.
(2) Savings Certificates
• U nder this, we have the National Savings
Certificate and the Kisan Vikas Patra.
• The National Savings Certificate pays interest
at a rate of 6.8% per annum upon maturity
after 5 years. The interest that is earned
is reinvested into the scheme every year
automatically.
• The NSC also qualifies for tax saving under
Section 80C of the income tax act.
• The Kisan Vikas Patra, which is open to
everyone, doubles your one-time investment
at the end of 124 months signifying a return
of 6.9% compounded annually.
• The minimum investment amount is Rs 1000
while there is no upper limit.
• U
 nder the programme, essential services
such as the provision of a birth certificate,
Aadhaar card registration and opening a
bank account for girls are completed and
delivered in government hospitals in the
district before the mother and baby are
discharged.
(3) Social security schemes
• In the third head of social security schemes,
there is Public Provident Fund, Sukanya
Samriddhi Account and Senior Citizens
Savings Scheme.
a. Public Provident Fund
• The Public Provident Fund is a popular saving
option for long term goals like retirement.
• It pays 7.1% a year and qualifies for tax benefit
under Section 80C of the Income Tax Act.
• Upon maturity of the account after 15 years,
it can be extended indefinitely in blocks
of 5 years.
• The accumulated amount and interest
earned are exempt from tax at the time of
withdrawal.
b. Sukanya Samriddhi Account
• The Sukanya Samriddhi Account was
launched in 2015 under the Beti Bachao
Beti Padhao campaign exclusively for a
girl child.
• The account can be opened in the name of a
girl child below the age of 10 years.
• The scheme guarantees a return of 7.6% per
annum and is eligible for tax benefit under
Section 80C of the Income Tax Act.
• The tenure of the deposit is 21 years from
the date of opening of the account and a
maximum of Rs 1.5 lakh can be invested
in a year.
c. Senior Citizen Savings Account
• And finally, the 5-year Senior Citizen Savings
Account can be opened by anyone who is
over 60 years to age.
• It carries an interest of 7.4% per annum
payable quarterly and qualifies for Section
80C tax benefit.
• These time-tested and safe modes of
investments dont offer quick returns, but
are safer when compared to market-
linked schemes.
• T
 he programme will help in getting
registration of baby girls and mothers under
various schemes such as the Sukanya
Samriddhi Account scheme, the Ladli
scheme and Pradhan Mantri Matru
Vandana Yojana at the hospital itself.
Significance of the Programme
• The programme makes the processes for
schemes as simple as possible for all children
and mothers.
• Parents would not have to go from here
to there, trying to avail themselves of the
essential schemes.
• Apart from ensuring that schemes reach
target beneficiaries and protecting the
interests of girl children, the programme also
aims to promote institutional deliveries.
RURAL DISTRESS, FARMER SUICIDES, DROUGHT MEASURES
Extending the Aspirational
District Programme (ADP)
Governance | GS2: Government Scheme/Policies
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Aspirational Districts Programme (ADP)
Mains level : Not Much
The PM has hoped to extend the Aspirational
District Programme (ADP) to block and
city levels.
Aspirational Districts Programme (ADP)
• L aunched in January 2018, the
Transformation of Aspirational Districts
initiative aims to remove this heterogeneity
through a mass movement to quickly and
effectively transform these districts.
• The broad contours of the program are
Convergence (of Central & State Schemes),
Collaboration (of Central, State level
Prabhari Officers & District Collectors), and
Competition among districts driven by a spirit
of mass Movement.
• With States as the main drivers, this program
will focus on the strength of each district,
identify low-hanging fruits for immediate
improvement, measure progress, and rank
districts.
Behind the name
• P M then negated the idea of naming any
scheme based on their backwardness.
• Rather the name Aspirational presents a
more affirmative action-based execution of
the scheme.
Selection of districts
• A total of 117 Aspirational districts have
been identified by NITI Aayog based upon
composite indicators.
• The objective of the program is to monitor
the real-time progress of aspirational districts
based on 49 indicators (81 data points) from
the 5 identified thematic areas.
Weightage has been accorded to these
districts as below:
• H ealth & Nutrition (30%)
• E ducation (30%)
• Agriculture & Water Resources (20%)
• Financial Inclusion & Skill Development (10%)
• B asic Infrastructure (10%)
Strategy of the ADP
The core Strategy of the program may be
summarized as follows.
• M aking development a mass movement in
these districts
• Identify low hanging fruits and the strength
of each district, to act as a catalyst
• for development.
• M easure progress and rank districts to spur a
sense of competition.
• D
 istricts shall aspire to become States best to
Nations best.
Features of the ADP
• It has transformed into a Jan Andolan.
• The ADP is different in trying to monitor the
improvement of these districts through real-
time data tracking.
• The programme seeks to develop
convergence between selected existing
central and state government programmes.
• D istrict performance in the public domain
and experience building of the district
bureaucracy is another notable feature.
• The programme is targeted, not towards
any single group of beneficiaries, but rather
towards the population of the district
as a whole.
What makes this program special?
The program reflects what has become
of the development project in India under
neoliberalism, especially after the end
of planning.
• L ong overdue sectors have been given
more emphasis.
• I t is not a tailor-made program with
one-size-fit strategy. More onus has
been laid on the districts. It has a district-
intervention strategy.
• I t works on the principle of SWOT
(strength, weakness, opportunity and
threats) model and comparison with national
best parameters for effective resource
management.
• It is the most reviewed programme by the
Prime Minister.
• A general idea behind the idea is that a
good work never goes un-noticed. It is duly
appreciated on social media as well as by the
officials.
Programmatic Strengths
• A key strength of the ADP is the collection
of baseline data and follow-ups at regular
intervals.
• S ustaining this effort would create a robust
compilation of statistics for use by both
researchers and policy-makers.
• In doing this, the government also brings
much-needed attention to human
development and a willingness to meet the
Sustainable Development Goals (SDGs).
• Incremental progress being made in the
chosen districts as reflected in the rankings.
• The programme also claims to be non-
partisan and unbiased and geared towards
all-India growth.
• The selection of districts indeed suggests that
the programme has not favored any bias
either regional, political or any other.
• The programme seeks convergence of
central and state schemes anchored around
specific activities.
Issues with the programme
• Using the case of Bihar, they argue that the
programmes selection of districts itself is
problematic.
• In fact, it actually excludes the most
backward districts because per capita
income, the most basic measure of
development, has not been considered.
• There seems to be some ambiguity around
the issue of whether the programme is
concerned only with improved access or also
with the quality of service provided.
• The indicators used are not defined
relationally, rather they are static human
development indicators that do not see
people mired in dynamic social relations.
• It is also accused that the state is not making
any new or focused public investment
(except for possible use of Flexi-funds)
into these districts, on the other hand, it is
moralizing about their inability to improve
(through rankings).
• The programme is carrying the burden of
proving the governments developmental
work without addressing any of the
fundamental issues around achieving
equitable development.
• Yet, the NITI Aayog justifies the overall
approach as capitalizing on low-
hanging fruit.
Way forward
• The program has been able to make
difference in the lives of citizens of India,
in education, health, nutrition, financial
inclusion, skill development and this has
made a difference to some most backward
and most geographically far-flung districts of
the nation.
• ADP is aligned to the principle of leave no
one behindthe vital core of the SDGs. Political
commitment at the highest level has resulted
in the rapid success of the program the
report said.
• UNDP has recommended revising a few
indicators that are slightly close to reaching
their saturation or met by most districts like
electrification of households as an indicator
of basic infrastructure.
www.civilsdaily.com 3
MGNREGA SCHEME
Group wants new order on
MGNREGA workers revoked
Polity | GS2: Government Scheme/Policies
Note4Students | From UPSC perspective, the following things are important :
Prelims level : MGNREGA
Mains level : Read the attached story
Certain groups has asked to discontinue
manual attendance for Mahatma Gandhi
National Rural Employment Guarantee Scheme
(MGNREGS) work sites with more than
20 workers and use a mobile phone-based
application.
What is MGNREGA?
• The MGNREGA stands for Mahatma Gandhi
National Rural Employment Guarantee
Act of 2005.
• This is labour law and social security measure
that aims to guarantee the Right to Work.
• The act was first proposed in 1991 by P.V.
Narasimha Rao.
Features of the scheme
• M
 GNREGA is unique in not only ensuring
at least 100 days of employment to
the willing unskilled workers, but also in
INDIAN ARMY UPDATES
What is Agnipath Scheme?
Security Issues | GS3: Various Security Forces, Agencies & Their Mandates
Note4Students | From UPSC perspective, the following things are important :
Prelims level : Agnipath Scheme
Mains level : Not Much
4 GOV T SCHEMES
ensuring an enforceable commitment on
the implementing machinery i.e., the State
Governments, and providing a bargaining
power to the labourers.
• The failure of provision for employment
within 15 days of the receipt of job
application from a prospective household
will result in the payment of unemployment
allowance to the job seekers.
• E mployment is to be provided within 5 km
of an applicants residence, and minimum
wages are to be paid.
• Thus, employment under MGNREGA is a
legal entitlement.
What is so unique about it?
• M
 GNREGA is unique in not only ensuring
at least 100 days of employment to the
willing unskilled workers, but also in
ensuring an enforceable commitment on
the implementing machinery i.e., the State
Governments, and providing a bargaining
power to the labourers.
• The failure of provision for employment
within 15 days of the receipt of job
application from a prospective household
will result in the payment of unemployment
allowance to the job seekers.
• Any Indian citizen above the age of 18 years
who resides in rural India can apply for the
NREGA scheme. The applicant should have
volunteered to do unskilled work.
• Employment is to be provided within 5 km
of an applicants residence, and minimum
wages are to be paid.
• Thus, employment under MGNREGA is a
legal entitlement.
Answer this PYQ in the comment box:
Q.Among the following who are eligible to
benefit from the Mahatma Gandhi national
rural employment guarantee act?
(a) Adult members of only the scheduled caste
and scheduled tribe households. 
(b) Adult members of below poverty line (BPL)
households. 
(c) Adult members of households of all
backward communities. 
(d) Adult members of any household.
Defence Minister announced the Agnipath
scheme for the recruitment of youth in the
armed forces for four years.
Agnipath Scheme
• This will be the only form of recruitment
of soldiers into the three defence
services from now.
• The scheme aims at strengthening national
security and for providing an opportunity to
the youth to serve in the armed forces.
• Recruits under the scheme will be known as
Agniveers.
• After completing the four-year service, they
can apply for regular employment in the
armed forces.
• They may be given priority over others
for various jobs in other government
departments.
• The move is expected to decrease the
average age profile of armed forces
personnel from the current 32 to 24-26 years
over a period of time.
Working of the scheme
• The process of recruitment will commence
in 90 days with a planned intake of 46,000
young men and women this year.
• Enrolment to all three services will be
through a centralized online system, with
special rallies and campus interviews at
recognized technical institutes.
• R
 ecruitment will be carried out on an All
India All Class basis with the eligibility age
ranging from 17.5 to 21, with medical and
physical fitness standards in accordance with
existing norms.
Payouts of the Agniveers
• The Agniveers will receive an annual package
of 4.76 lakh in the first year to 6.92 lakh in the
fourth year, apart from risk and hardship and
other allowances as applicable.
• U nder the Seva Nidhi package, they
will receive about 11.71 lakh, including
contribution and interest, on completion
of service.
• T he recruits will have to contribute 30% of
their monthly emoluments to Seva Nidhi,
with a matching contribution made by the
government.
• There will be no entitlement to gratuity and
pension benefits under the scheme.
• However, the Agniveers will be provided a
non-contributory life insurance cover of 48
lakh during their service.
www.civilsdaily.com 5