SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    What is the meaning of "JAM number trinity" mentioned in the Economic Survey 2014-15?

    A)  A mechanism for targeted and less distortive way of supporting poor.

    B)  A balance between the budget deficit, revenue deficit and capital deficit.

    C)  A balance between current account deficit, capital deficit and fiscal deficit

    D)  A fiscal policy having a short, medium and long term goals.

    Correct Answer: A

    Solution :

    [a] Eliminating or phasing down subsidies is neither feasible nor desirable unless accompanied by other forms of support to cushion the poor and vulnerable and enable them to achieve their economic aspirations. The JAM Number Trinity - Jan Dhan Yojana, Aadhaar and Mobile numbers - allows the state to offer this support to poor households in a targeted and less distortive way. The government is pinning its hopes on these three modes of identification to deliver direct benefits to India's poor. Until now, the government has operated a multitude of subsidy schemes to ensure a minimum standard of living for the poor. These take convoluted routes to deliver affordable products or services to them. So, we have the MGNREGA, operated through the panchayats, which pays minimum wages to rural workers. The Centre and States supply rice, wheat, pulses, cooking oil, sugar and kerosene at heavily subsidised prices through the PDS. Then, sectors such as power, fertilisers and oil sell their products to people below market prices. Such subsidies cost the exchequer quite a bit. Yet, as they make their winding way through the hands of intermediaries, leakages, corruption and inefficiencies eat away large parts. This is where the government hopes that the JAM trinity can help. With Aadhaar helping in direct biometric identification of disadvantaged citizens and Jan Dhan bank accounts and mobile phones allowing direct transfers of funds into their accounts, it may be possible to cut out all the intermediaries.

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