Daily Current Affairs MCQ: 6th September 2024 - UPSC MCQ

Statement-I correctly identifies Valley Fever as an illness caused by a fungus found in specific regions. Valley Fever is caused by the fungus Coccidioides, which is primarily found in certain geographical areas mentioned in the statement. This statement aligns with the known facts about Valley Fever.
However, Statement-II is incorrect. Valley Fever is not a contagious disease that easily spreads from person to person through respiratory droplets. It is primarily contracted by inhaling fungal spores present in the soil of endemic regions, as described in Statement-I. The disease is not typically spread through person-to-person contact like respiratory droplets, as indicated in Statement-II.

Vertical Fiscal Imbalance (VFI) in India highlights the significant dependence of States on transfers from the Union government to fulfill their financial obligations, as revenue receipts collected by States are considerably less than their expenditure responsibilities. This imbalance underscores the asymmetrical financial relationship between the Union and the States, where States manage a significant portion of expenditure but collect a smaller share of revenue, leading to reliance on transfers from the Union government for financial stability.

1. Statement 1 is incorrect: INTERPOL is not part of the United Nations. It operates independently as its own organization.

2. Statement 2 is correct: The General Secretariat of INTERPOL is indeed located in Lyon, France.

3. Statement 3 is incorrect: INTERPOL itself does not issue international arrest warrants. Instead, it issues Red Notices, which are requests to locate and provisionally arrest an individual pending extradition based on a valid national arrest warrant.

Therefore, only statement 2 is correct. Hence, the correct answer is Option C: 2 Only.

Statement 1: The 14th Finance Commission indeed increased the tax devolution from the centre to States from 32% to 42%. This was a significant move aimed at enhancing the financial autonomy of the States.

Statement 2: The 15th Finance Commission recommended that the share of States in central taxes for the 2021-26 period be set at 41%. This included a 1% adjustment for the new Union territories of Jammu & Kashmir and Ladakh.

Statement 3: This statement is incorrect. Article 275 of the Indian Constitution provides for grants-in-aid to certain States which are in need of assistance, rather than mandating the division of net tax proceeds. The division of net tax proceeds between the Union and the States is addressed by the Finance Commission under Article 280 of the Constitution.

Therefore, the correct answer is Option B: 1 and 2 Only.

- Statement 1 is incorrect. The inaugural India-Singapore Ministerial Roundtable (ISMR) took place in September 2022 in New Delhi, not in August 2024 in Singapore. The second ISMR occurred in Singapore in August 2024.

- Statement 2 is correct. The UPI-Paynow Linkage indeed represents a significant development in cross-border Fintech collaboration, making Singapore the first country to implement this P2P payment system with India.

- Statement 3 is correct. In FY 2023-24, Singapore emerged as the largest source of Foreign Direct Investment (FDI) into India, with equity inflows amounting to USD 11.774 billion.

Therefore, the correct answer is Option C.

Statement-I correctly describes the purpose of a Blue Notice issued by Interpol, which aims to find, identify, or gather information about a person of interest in a criminal case. This type of notice is indeed utilized for such investigative purposes within the scope of Interpol's activities.
Statement-II accurately portrays the role of the Public Accounts Committee (PAC) of India. The PAC's primary function is to examine the government's spending and ensure that the money allocated by Parliament is being utilized appropriately. By reviewing financial accounts and reports, the PAC scrutinizes the government's financial activities to ensure transparency and accountability.
Therefore, both statements are factually correct, and Statement-II explains the role of the PAC as outlined in Statement-I.

The UPI-Paynow Linkage represents a significant development in cross-border Fintech collaboration, with Singapore being the first country to implement this Person-to-Person (P2P) payment system with India. This initiative facilitates seamless financial transactions between individuals in both countries, showcasing a strong collaboration in the financial technology sector.

Statement-I correctly highlights that India's Vertical Fiscal Imbalance (VFI) is larger and increasing compared to other federal systems, as noted by the 15th Finance Commission. This imbalance signifies a significant dependency of States on transfers from the Union government due to the disparity between revenue expenditure and revenue receipts.
Statement-II accurately states that the 14th Finance Commission indeed raised the tax devolution from the center to States from 32% to 42%. However, this statement does not directly explain the larger VFI in India compared to other federal systems. The increase in tax devolution, while significant, is not the sole reason for the observed vertical fiscal imbalance in India.

The primary purpose of the Public Accounts Committee (PAC) in India is to review and oversee the government's spending. It is responsible for examining the money coming in and going out of the Government of India, especially focusing on spending bills and ensuring that the money allocated by Parliament is spent appropriately. The PAC plays a crucial role in scrutinizing the government's financial accounts and ensuring transparency and accountability in financial matters related to the government's expenditures.

1. Article 280: Mandates the formation of a Finance Commission every five years. - Correct. Article 280 of the Indian Constitution mandates the President to form a Finance Commission every five years or sooner if necessary.

2. Article 275: Provides for grants-in-aid to the States. - Correct. Article 275 of the Indian Constitution provides for grants-in-aid to the States, as recommended by the Finance Commission, to meet the costs of developmental schemes.

3. Income Distance: Measures the difference between a State’s per capita income and the national average. - Correct. Income Distance is a criterion used by the Finance Commission to measure the difference between a State's per capita income and the average per capita income of all States, ensuring poorer States receive more funds.

4. Demographic Performance: States are rewarded for controlling population growth through indicators like fertility rates. - Correct. Demographic Performance considers indicators such as fertility rates, infant mortality rates, and sex ratios to reward States for controlling population growth.

All four pairs are correctly matched.