Consider the following statements vis-à-vis Operating Ratio:

1. Higher the value of operating ratio, more efficient the organization is.
2. Railway has decided to improve its operating ratio from 95% in 2017-18 to 98% in 2018-19.

Choose the correct answer from the code given below:

A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2

Answer: D

Explanation:

Operating Ratio (OR) conveys how efficient the system/ organization is. Lower the OR, more efficient the system is.

What does an OR Value of 95% mean?
It means that the organization is spending Rs. 95 to earn Rs. 100. Hence a low value of OR is always preferable.

Purpose of the Question:
In the recent budget, Ministry of Railway has decided to improve its OR from 98.4% in 2017-18 to 96.2% in 2018-19 and further to 95% in 2019-20.

Source: The Hindu

Question:

Consider the following statements vis-à-vis ‘Government e-Marketplace’ (GeM):

1. Government e-Marketplace is a 100 percent government owned company setup under the aegis of Ministry of Finance.
2. It is mandatory for Government ministries/ agencies to purchase the common use goods and services from GeM.
3. Only Central and State Government Ministries/ Departments can procure goods from GeM.

Choose the correct answer from the code given below:

A. 2 only
B. 1 and 3 only
C. 1, 2 and 3
D. 1 and 2 only

Answer: A

Explanation:
• Government e-Marketplace is a 100 percent government owned company setup under the aegis of Ministry of Commerce and Industry for procurement of common use goods and services by Central/ State Government ministries/ departments, CPSEs, autonomus bodies and local bodies too. Hence, statement 3 is incorrect.
• The purchases through GeM by Government users have been authorized and made mandatory by Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
Purpose of the Question:
GeM has launched Womaniya on GeM, an initiative to enable women entrepreneurs and women self-help groups to sell handicrafts and handloom, accessories etc. directly to various Government ministries, departments and institutions.
Source: PIB

1. At the central level, Corporate Tax and Income Tax are subsumed under the GST.
2. IGST would come into picture when there is an inter-state transfer of goods and services
3. At the state level, VAT, Central Sales Tax, Octroi etc. is subsumed under the GST.

Choose the correct answer from the code given below:

A. 1 and 3 only
B. 3 only
C. 2 and 3 only
D. All of the above

Answer: C

Explanation:

At the central level, following taxes are being subsumed under GST:
• Central Excise Duty
• Additional Excise Duty
• Service Tax
• Countervailing Duty
• Special Additional Duty of Customs

At the state level, following taxes are being subsumed under GST:
• State VAT/Sales Tax
• Entertainment Tax
• Central Sales Tax
• Octroi and Entry Tax
• Purchase Tax
• Luxury Tax
• Taxes on lottery, betting and gambling

GST subsumes Indirect Tax and not the Direct Tax, so Income Tax and Corporate Tax are not subsumed under the GST as they are direct tax. Hence, statement 1 is incorrect.
IGST would come into picture when there is an inter-state transfer of goods and services (u/a 269A(1)). IGST rate would be roughly equal to the sum of CGST and SGST.
Purpose of the Question:
In a recent meeting of GST Council, the exemption limit for GST Compliance has been increased from Rs. 20 lakh to Rs. 40 lakh for General category states and from Rs. 10 lakh to Rs. 20 lakh for North Eastern and Hilly states.

Source: The Hindu

Question:

Consider the following statement vis-à-vis recent merger of Vijaya Bank, Bank of Baroda & Dena Bank?

1. This merger is the outcome of ‘Alternative Mechanism’ panel which was set up under N. R. Narayanmurthy.
2. Bank of Baroda will be the Transferor bank while Vijaya Bank and Dena Bank will be the transferee bank.
3. The merged entity will become the third largest bank of the country.

Choose the correct answer from the code given below:

A. 3 only
B. 1 and 3 only
C. 1, 2 and 3
D. None of the above

Answer: A

Explanation:
The recent merger of the three banks will lead to creation of the third largest entity after SBI and ICICI Banks in India. The Bank of Baroda is the largest of the three banks and will be the transferee bank while Vijaya Bank and Dena Bank will be the Transferor Bank. Hence, statement 2 is incorrect.
How this Merger idea came up?
Streamlining of the banks and their merger was first mooted by Narasimham committee in 1998, but the present merger is the outcome of ‘Alternative Mechanism Panel’ headed by Shri Arun Jaitley which proposed to merge a weak bank with two strong banks.

Source: Livemint