AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Andhra Pradesh BIEAP AP Inter 2nd Year Economics Study Material 1st Lesson Economic Growth and Development Textbook Questions and Answers.

AP Inter 2nd Year Economics Study Material 1st Lesson Economic Growth and Development

Essay Questions

Question 1.
Explain the characteristic features of developed countries.
Answer:
The developed countries are also referred to as high-income countries, industrialized countries, and advanced countries. USA, UK, France, Germany, Canada, and Japan are some of the developed countries.
1) High per capita income: The income per head per year is called per capita income.
The main feature of the developed countries is high per capita income.
The per capita GNI of developed countries is far higher than the per capita GN1 of developing countries like India and China. In the year 2012 the per capita GNI of the U.S.A ($ 50.120) at the official exchange rate was nearly 33 times and at purchasing power parity ($ 50.610) was 13 times that of India ($ 1.530). So there is high differences in the per capita incomes of developed and developing countries.

2) Importance of Non-agricultural sectors: The developed economies are non¬agriculture in nature. The industry and service sectors are well developed in these economies. The contribution of these sectors to income and employment generation is very high when compared to the agriculture sector.
The developed countries are industry and service sector-oriented whereas the developing countries still depend on the agriculture sector. In the USA the proportion of people engaged in agriculture sector is just 1.6 percent and its contribution to GDP is 1.3 percent.

3) Abundance of capital and technology : The most important feature of developed countries is high rate of capital formation and wide spread use of modem and sophisticated technology. As the developed countries are high income countries their capacity to save is also very high. The banking system and financial institutions efficiently mobilize the savings.

4) Low level of unemployment: The unemployment in the developed countries is caused by the shortage of effective demand. The unemployment in these economies is cyclical and frictional.
The rate of unemployment is marginal and the skills and mobility of labour are higher in the developed countries.

5) Better quality of life : A better quality of life is ensured in the developed countries due to the effective social security system, better compliance of pollution standards, availability of safe drinking water, well organized health care system and sanitation. The expenditure on education, research, training, skill formation and health is more in these countries.

AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Question 2.
India is a developing country – Discuss.
Answer:
The nature of the Indian economy is underdeveloped before the advent of planning. The pace of development has quickened since 1951. The following facts will prove that Indian economy is passing through a crucial phase of economic development.
1) National income trends : Over the four and half decades of economic planning, the economy registered significant advance. In 1950 – ’51 India’s net national product at factor cost at 1980 – ’81 prices was ₹ 40,454 crores. Since then it had increased to ₹ 91,71,045 crores in 2013 – ’14 from 4,71,619 crores in 1990 – ’91.

2) Rise in per capita income : A rise in per capita income is considered to be a better index of growth than the growth of net national product. In 1950 – ’51 India’s percapita net national product at 1980 – ’81 prices was ₹ 1,127. Since then it has raised by $ 1,070 to $ 1,530 in 2011.

3) Changing sectoral distribution of domestic product : An important index of development is a stealy decline in the contribution of agriculture and allied activities to gross domestic product. In 1950 – ’51 the share of agriculture and allied activites in the gross domestic product was 56.5%. The output of agriculture sector is 13.9%, secondary is 26.2% and tertiary sector is 59.9% in 2013 – ’14.

4) Occupational distribution of population : In India the occupational distribution of population has not changed significancy during plan period. In India where agriculture and allied activities accounted for 68.8% of work force in 1991 as against 72.1% in 1951. It is 48.9% in primary sector 24.3% in industrial sector 26.8% in tertiary sector in 2011.

5) Growth of production : The index of agriculture production increased by 100%. There is now in evidence much larger area under irrigation greater use of fertilisers and of improved agricultural practices. Indian agriculture has been greatly stabilised by the adoption of modem technology in farming.

6) Growth of basic capital goods industries : During British rule the share of basic and capital goods industries in the total industrial production was nearly one-fourth. From 1956, a large number of basic and heavy industries have been set up to make the country’s industrial structure strong.

7) Expansion in social overhead capital: Infrastructural facilities often referred to as economic and social overhead Indian planners were fully aware of the link between infrastructural facilities and general economic development. Their development can also be assured for better human-living. Tremendous amount of. progress achieved in the transport, banking, irrigation, education and communications. There has been a spectacular progress in the field of education and public health. The rate of literacy increased to 52% of population.

8) Science and Technology: For rapid economic progress, the application of science and technology to all economic and non-economic activities has become essential. 1958 the science policy resolution was adopted to provide positive incentives for the development and utilisation of science and technology in nation building activities. Our achievements in nuclear energy and in space technology have put India in the small select company of scientifically most developed countries.

AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Question 3.
Explain the features of developing countries with special reference to India. [A.P. Mar. 18, 17, 16]
Answer:
Developing economies are distinguished from developed economies on the basis of their per capita income. Most of the economies are agarian in nature and their present rate of capital formation is low and inadequate to meet the requirements of their development.

According to United Nations ‘The countries which have real per capita income less than a quarter of the per capita income of the United States are developing countries”.
The following are the characteristic features of developing countries with special reference to India.
1) Low per capita income : One of the basic features of developing countries is low per capita income. The low income and middle income countries combined together are called developing countries.
The per capita G.N.I. of India has increased from $ 1,070 to $ 1,530 (2011) entered into the group of lower middle income countries.

2) Scarcity of capital :,The rate of capital formation is low in most of the developing countries. In the most of developing countries the saving rates range between 15 to 20%.
According to C.S.O estimates the growth of gross domestic saving was 27-9% and capital formation was 24% in the year 2011 – ’12.

3) Unemployment: Wide spread unemployment is one of the important features of developing countries. In India unemployment is due to the deficiency of capital. There is disguised unemployment in rural areas. Around 60% of the population is depending on agriculture for employment. The planning commission estimated that there was a back logo of 37 million unemployed at the beginning of 11th plan and it was expected that 82 million by the end of the plan.

4) Demographic characteristics : The developing countries are facing the problem of heavy population. They are successfully reducing the mortality rates by improving the medical facilities but failed to control the birth rates, this led to population explosion. India is also facing the problem of heavy population. It’s population was 1210 million in 2011 and it increased to 1278 million in 2015.

5) Predominance of agriculture : One of the basic features of developing countries is that they are predominantly agrarian economies. The share of agriculture in G.D.P is between 20 to 30%.

According to Indian economic survey 2013 – 14, 54.6% of the working population is engaged in the agriculture sector and it contributes 13.9% of the G.D.P.

6) High incidence of poverty: The another important feature of developing countries is the prevalence of mass poverty. The people in these countries suffer from low level of income, malnutrition, ill health and illiteracy.

India is also facing the problem of poverty. As per Tendulkar committee reports, the planning commission has updated the poverty line. Based on this; The percentage of population living below the poverty line was 29.8% in 2009 – 10.

7) Income inequalities : The most important feature of developing economies is the disparities in income and wealth. Compared to the developed countries, the income inequalities are larger in the developing countries.

According to 68th round of NSSO for the year 2011 – ’12 the monthly per capita consumption expenditure of the poorest 10% of the rural population rise by 11.5% in 2011 – ’12 compared with the 66th round for the year 2009 – TO. In urban areas, the growth was 17.2% and 30.2% respectively over the same period.

8) High density of population: The density of population is veiy high in the developing countries due to the large size of population. The density of population of the world was 50 per sq.km in 2011. It is in India was 382 per sq.km in 2011, where it was 3 in Australia, 33 in USA, 145 in China etc.

9) Low quality of life : The quality of life in the developing countries is very low in comparison with developed countries. These countries people suffer from malnutrition, high population, safe drinking water and lack of sanitation etc. The life expectancy at birth is below 65 years.

10) Technical backwardness: In the developing countries the production techniques backward due to lack of research and development. These countries use labour intensive technique because high population and capital deficiency.

Indian economy is also technically backward. Modem and traditional techniques are used side by side in different sectors of the economy. It has affected the productivity in the economy.

11) Dual economy: Economists talk of various types of dualism existing in developing economies. They are
(a) Social dualism
(b) Technological dualism
(c) Financial dualism.

Indian economy also characterised by the dualism, the product and factor markets in India are divided with different degree of imperfections. Technological dualism is existed in India. There prevailed two kinds of economic sectors i.e., organised and unorganised sectors. The industrial sector uses the modem technology and agriculture sector still follows old method of production.

12) Price instability : The price instability is also basic feature of the developing countries. In India there is continuous price instability because of shortage of essential commodities and gap between consumption and production.

Short Answer Questions

Question 1.
Differentiate between economic growth and development.
Answer:
The terms of Economic Growth and Economic Development are used synonymously, there exists some differences.

According to C.P. Kindle Berger “Economic growth means more output and economic development implies more output and changes in the technological and institutional arrangements by which it is produced”.

According to United Nations expert committee “Development concerns not only man’s material needs but also the improvement of the social conditions of his life. Development is therefore not only economic growth, but growth plus change social, cultural, institutional and economic”.

The following are the main differences between Economic Growth and Economic Development.

Economic growth

  1. Economic growth refers to an increases in a country real output, of goods and services.
  2. Economic growth is a single dimensional phenomenon.
  3. Economic growth is mainly related to developed countries.
  4. It is a narrow concept.
  5. It does not require governmental intervention.
  6. It denotes quantitative changes in the economy.
  7. Economic growth does not indicate the distribution of income and wealth in the economy.
  8. Economic growth can be compared with the physical growth of a person.
  9. It can be measured.

Economic development

  1. Economic development refers to not only economic growth but also progressive changes in the social economic structure of a country.
  2. Economic development is a multi dimensional phenomenon.
  3. Economic development is generally related to developing countries.
  4. It is a wider concept.
  5. It is not possible to achieve economic development without the intervention of the government.
  6. It denotes qualitative changes in the economy.
  7. Economic development indicates the distribution of income and wealth in the economy.
  8. Economic development is like overall improvement of a person. (Both physical as well as intellectual).
  9. It cannot be measured.

AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Question 2.
Explain the determinants of economic development.
Answer:
Economic development is a complex process. It is influenced by both economic and non-economic factors. Broadly the factors determine economic development are classified as follows.
AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development 1
1) Natural resources : The development of any country on the availability of natural resources. Jacob Viner, WilliamJ.Baumol and W.A. Lewis attached great importance to natural endowments of a country for its development. The availability of quality and quantity or size of the natural resources can induce the development of agriculture and industrialisation.

2) Economic factors :
(a) Capital formation: Economic development depends on capital formation. Capital formation depends on savings. It enlarges a country’s capacity to produce goods. Capital formation helps the formation of sound infrastructure.

(b) Marketable surplus : Marketable surplus raises the incomes in the rural areas which in turn stimulates the demand for goods and services. So the development of other sectors in an economy depends on the marketable surplus.

(c) Foreign trade : Foreign trade helps the countries to increase the production of goods and services through division of labour and specialisation. It will expand the output and employment in the economy. It also facilitates the developing countries to import capital, technology from the developed countries.

3. Non-economic factors :
(a) Human resources : Population is an important factor in economic development. If a country can manage to use its man power properly. But in case, human resources remain either unutilised or underutilised it will be a burden on the economy.

(b) Technical progress : Technology plays an important role in the economic development. The use of modem and sophisticated, technology enhances the productivity and production is all sectors of the economy. It minimizes the cost of production.

Political freedom : Majority of the developing countries were under the British rule in the past. After they got independence all these countries have initiated planning strategy to achieve faster economic development. Hence political freedom is necessary to take strong and independent decisions regarding the development process.

Social organisation : Development process requires the active participation of all sections of people in a country experiences suggest that the defective social organisation helped the rich to gamer the benefits of development. This has led to wide spread disparities among the people.

Corruption : The rampant corruption at various levels in the developing countries has become a negative factor in the process of development.
The factors like tax evasion, misappropriation of public funds and connivance of the officials are the major hindrances in the way of development.

Desire to develop : The development process in any country depends on the people desire to develop. According to Richard T. Gill “Economic development is not a mechanical process. It is a human enterprise. It’s outcome will depend on the skill, quality and attitudes of the people”.

Very Short Answer Questions

Question 1.
Economic growth.
Answer:
Economic growth refers to an increase in a country’s real output of goods and services. It related to developed countries.

AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Question 2.
Economic development.
Answer:
Economic development refers to not only economic growth but also progressive changes in the socio-economic structure of a countiy.

Question 3.
Per capita income.
Answer:
The income per head per year is called per capita income. It is obtained by dividing the national income with population of the country.
Per capita income = \(\frac{\text { National income }}{\text { Population }}\)

Question 4.
Planning commission’s definition of a developing country.
Answer:
“An under developed economy is characterised by the existence, in greater or lesser degree of unutilised or underutilised man power on the one hand and of unexploited resources on the other”.

Question 5.
Human capital.
Answer:
Expenditure on education, training, skill formation research and improvement in health is called human capital.

AP Inter 2nd Year Economics Study Material Chapter 1 Economic Growth and Development

Question 6.
World Bank’s classification of world countries.
Answer:
The World Bank in its world development report (2014) classified the countries on the basis of Gross National Income (G.N.I) per capita. Countries are divided into

  1. Low income countries : With G.N.I per capita of $ 1.045 and below.
  2. Middle income countries : With G.N.I per capita ranging between $ 1.046 and $ 12.746. The Middle income countries are again divided into
    a) Lower middle income countries with G.N.I per capita ranging between $ 1.046 and $4.125.
    b) Upper middle income countries with G.N.I per capita ranging between $ 4.126 and $ 12.746.
  3. High income countries : With G.N.I per capita of $ 12.747 or more

Question 7.
Dual Economy. [A.P. Mar. 17, 16]
Answer:
An economy where both technically advanced and technically primitive sectors exist side by side is called as dual economy.

AP Inter 2nd Year Commerce Study Material Chapter 5 Consumer Protections

Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 5th Lesson Consumer Protections Textbook Questions and Answers.

AP Inter 2nd Year Commerce Study Material 5th Lesson Consumer Protections

Essay Answer Questions

Question 1.
Explain the composition and jurisdiction of the state commission.
Answer:
The state commission settles consumer disputes at the state level. The state commission is headed by the judge of a high court and comprises other members not less than two and not more than as prescribed, one of whom shall be a woman.

The state commission shall have jurisdiction to entertain consumer complaints where the value of goods and services for which the compensation claimed exceeds ₹ 20 lakhs and less than ₹ 1 crore. The state commission is empowered to call for the records and pass appropriate orders in respect of any consumer dispute within the state jurisdiction. The state commission is empowered to transfer any complaint pending before on the district forum to another district forum within the state. The state commission has circuit Benches.

In case the aggrieved party is not satisfied with the order of the state commission, he can appeal to the national commission within 30 days of passing the order.

Question 2.
Describe the rights of a consumer as per CPA 1986.
Answer:
Although business man is aware of his social responsibilities even then we come across many cases of consumer protection. Hence Government of India provided following six rights to all the Consumers under Consumer Protection Act.
1) Right to safety:
According to this right, the consumers have right to be protected against the marketing of goods and services which are hazardous to life and property. The right is important for safe and secure life.

2) Right to information :
According to this right, the consumer has right to get information about the quality, quantity, purity standard and piece of goods or services. The producer must supply all the relevant information at a suitable place.

3) Right to choice :
According to this right, every consumer has a right to choose the goods or services of his or her likings. The supplier should not force the consumer to buy a particular brand only. Consumer should be free to choose the most suitable product from his view point.

4) Right to consumer education:
According to this right, it is the right of the consumer to acquire knowledge and skill to be informed to customer. It is easier for the literate consumers to know their rights and take actions.

5) Right to seek redressal:
According to this right, the consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation. The right assures justice to consumer against exploitation.

6) Right to heard / Right to represent:
According to this right, the consumer has the right to represents himself or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has a right to be heard.

AP Inter 2nd Year Commerce Study Material Chapter 5 Consumer Protections

Question 3.
What are the responsibilities of a consumer?
Answer:
Various efforts have been made by government or non – government organisations to protect the interest of consumer, but exploitation of consumer will stop only when the consumer will come forward to safeguard his own interest. Consumer has bear the following responsibilities.

1) Be quality conscious :
To put to stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the quality of the products they buy. They should look for the standard quality certification marks like ISI, Agmark, Wool mark, Ecomark, Hallmark, etc. While making the purchases.

2) Beware of misleading advertisements :
The advertisement often exaggerates the quality of the products. Hence the consumers should not rely on the advertisement and carefully check the product or ask the users before making a purchase.

3) Responsibility to inspect a variety of goods before making selection :
The consumer should inspect a variety of goods before buying the goods and services. For this purpose, he / she should compare their quality, price, durability, after sales service etc.

4) Collect proof of transaction :
The consumer should insist a valid documentary evidence (Cash memo / invoice) relating to purchase of goods or availing of any services and preserve it carefully. Such proof of purchase is required for filing a complaint. In case of durable goods the manufacturers generally provide the warrantee / guarantee card with the product. It is the duty of the consumers to obtain these documents and ensure that these are duly sighed, stamped and dated. The consumer must preserve them till the warrantee / guarantee period is over.

5) Consumers must aware of their rights:
The consumers must aware of their rights as stated above and exercise them while buying goods and services. For example, it is the responsibility of a consumer to insist on getting all information about the quality of the product and ensure himself / herself that it is free from any kind of defect.

6) Complaint for genuine grievances:
As a consumer, if you are dissatisfied with the product, you can ask for redressal of yoifr grievances. In this regard, you must file a proper claim with the company first. The manufacturer / company do not respond, then you can approach the forums. But your claim must state actual loss and the compensation claim must be reasonable. At no cost fictious complaints should be filed otherwise the forum may penalise you.

7) Proper use of product / service :
It is expected from consumers that they use and handle the product / service properly. It has been noticed that during guarantee period, people tend to reckless use of the product, thinking that it will be replaced during guarantee period. This practice should be avoided.

Question 4.
Explain the redressal mechanism available to consumers under the Consumers Proction Act, 1986.
Answer:
The judicial machinery set up under Consumer Protection Act (C.RA) 1986 consists of consumer courts (Forums) at the District, State and National levels. These are known as District Forum, State consumer disputes redressal commission (State Commission) and National consumer disputes redressal commission (National Commission).

1. District forum :
This is established by the state government in each of its districts.
a) Composition :
The district forum consists of a chairman and two other members one of whom shall be a woman. The district forms are headed by the person of the rank of a District Judge.

b) Jurisdiction:
A written complaint can be filed before the district forum where the value of goods or services and the compensation claimed does not exceed ₹ 20 lakhs.

c) Appeal:
If a consumer is not satisfied by the decision of the District Forum, he can challenge the same before state commission, within 30 days of the order.

2. State commission:
This is established by the state governments in their respective states.
a) Composition :
The state commission consists of a president and not less than two and not more such number of members as may be prescribed, one of whom shall be a woman. The commission is headed by a person of the rank of High Court Judge.

b) Jurisdiction :
A written complaint can be filed before the state commission where the value of goods or services and the compensation claimed exceeds ₹ 20 lakhs but does not exceed ₹ 1 Crore.

c) Appeal :
In case the aggrieved party is not satisfied with the order of the state commission he can a appeal to National Commission within 30 days of passing the order.

3. National Commission :
The national commission was constituted in 1988 by the central government; It is the apex body in the three tier judicial machinery set up by the government for redressal of consumer grievances. Its office is situated Janpath Bhawan in New Delhi.

a) Composition :
It consists of a president and not less than four and not more than such members as may be prescribed, one of whom shall be a woman. The National Commission is headed a sitting or retired judge of supreme court.

b) Jurisdiction:
All complaints pertaining to those goods or services and compensation whose value is more than ₹ 1 Crore can be filed directly before the National Commission.

c) Appeal:
An appeal can be filed against the order of the National Commission to the supreme court within 30 days from the date of order passed.

Question 5.
Who can file a complaint, what complaints can be filed, where to file the complaint, how to tile the complaints redressal of grievances under the Consumer Protection Act 1986?
Answer:
For redressal of consumer grievances a complaint must be filed with the appropriate form.

Who can complaint?
The following persons can file a complaint under Consumer Protection Act 1986.
a) a consumer.
b) Any recognised voluntary consumer association whether the consumer is a member of that association or not;
c) The central or any state government;
d) One more consumers where there are numerous consumers having same interest;
e) Legal heir or representative in case of death of consumer what complaints can be filed?

What complaints can be filed?
A consumer can complaint relating to any one or more of the following;
a) An unfair trade practice or a restrictive trade practice adopted by any trader or service provider;
b) Goods bought by him or agreed to bought by him suffer from one more defects ;
c) Services hired or availed of or agreed to be hired or availed of, suffer from deficiency in any respect;
d) Price charged in excess of the price
i) fixed by or under law for the time being in force
ii) displayed on the goods or the package
iii) displayed in the price list or
iv) agreed between the parties and
e) goods or services which are hazardous or likely to be hazardous to life and safety when used.

Where to file a complaint?
If the value of goods and services and the compensation claimed does not exceed ? 20 lakhs, the complaint can be filed in the district forum ; If it exceeds ₹ 20 lakhs but does not exceed ₹ 1 crore, the complaint can be filed before the State Commission ; and if it exceeds ₹ 1 Crore, the complaint can be filed before the National Commission.

How to file a complaint?
A complaint can be made in person or by any authorised agent or by post. The complaint can be written on a plain paper supported by documentary evidence in support ’of the allegation contained in the complaint. The complaint should clearly specify the relief sought. It should also contain the nature, description and address of the complaint as opposite party, and so also the facts relating to the complaint and when and where it arose.

Very Short Answer Questions

Question 1.
Give the meaning of consumer.
Answer:
Under the Consumer Protection Act 1986, The word consumer has been defined separately for the purpose of goods and services.

For the purpose of goods, a consumer is one who buys any goods for consideration and any user of such goods other than the person who actually buys it, provided such use is made with the approval of buyer.

For the purpose of services, a consumer is one who has any service or services for consideration ; and any benificiary of such services provided the service is availed with the approval of the person who had hired the service for a consideration.

AP Inter 2nd Year Commerce Study Material Chapter 5 Consumer Protections

Question 2.
What is consumerism?
Answer:
Consumerism is defined as a social force designed to protect consumer interest in the market place by organising consumer pressure on business. By consumerism we mean the process of realising the rights of the consumer as enrises in the Consumer Protection Act, 1986 and ensuring right standards for the goods and services for which one makes payment.

Question 3.
What is meant by consumer protection?
Answer:
Consumer protection means safe guarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from redressal of their grievances. The most common business malpractices are sale of adulterated, spurious, substandard and duplicate goods, false and under weighting, hoarding and black marketing, charging more than MRP Price etc. .

Question 4.
District Forums.
Answer:
The state government in each district establishes District forum by notification. The district forum consists of a president nominated by the state government. The forum also comprises two other members who shall have atleast 10 years of experience in dealing problems of economics, law commerce and industry. Every member of the form shall have tenure of 5 years or 65 years whichever is earlier. The District collector acts as the chairman of the District Forum. The District forum shall have jurisdiction to entertain consumers complaints where the value of goods and services which the compensation claimed, should ₹ 20 lakhs.

Question 5.
State commission.
Answer:
The state commission settles the consumer dispute at state level. The state commission is headed by the judge of High Court and comprised of other members not less than two and not more than such members as prescribed. The state commission is empowered to call for the records and appropriate orders in respect of any consumer dispute within the state jurisdiction. The state commission shall have jurisdiction to entertain consumer complaints where the value of goods and services for which compensation claimed exceeds ₹ 20 lakhs.

Question 6.
National commission.
Answer:
National commission operates at National level. It settle the consumer disputes at in the country. The National Commission has a President, who should be a serving or retained Supreme Court Judge the commission also comprises other members of not less than four. The president and all the members of the commission are appointed by central government. The National Commission shall have jurisdiction to entertain consumers complaints where the value of goods and services and compensation exceeds ₹ 1 crore.

AP Inter 2nd Year Commerce Study Material Chapter 5 Consumer Protections

Question 7.
Who is consumer? In the opinion of Mahatma Gandhi.
Answer:
Mahatma Gandhi, the father of nation, attached great importance to what he described as the ‘poor consumer’, who according to him should be the principle benificiary of the consumer movement. He said “A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work; he is the purpose of it. He is not an outsider to our business ; he is a part of it. We are not doing him a favour by serving him ; he is doing us a favour by giving an opportunity to do so.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 4th Lesson Financial Markets Textbook Questions and Answers.

AP Inter 2nd Year Commerce Study Material 4th Lesson Financial Markets

Essay Answer Questions

Question 1.
What is meant by financial market? Briefly explain its functions and classification.
Answer:
A financial market is a broad term describing any market place where buyers and sellers participate in the trade of financial assets such as equities, bonds, currencies and derivatives. Investors have access to a large number of financial markets and exchanges representing a vast range of financial products. Some of these markets have always been open to private investors; Others remained the exclusive domain of major international banks and financial professionals until the very end of the twentieth century.

Specifically, financial markets play an important role in the allocation of scarce resources in an economy by performing the following four important functions.

1. Mobilisation of savings and channelling them into most productive uses :
A financial market facilitates the transfer of savings from savers to investors. It gives savers to choice different investments and thus helps to channelise surplus funds into most productive use.

2. Facilitating price discovery:
It is known that the forces of demand, supply help to establish a price for a commodity or service in the market. In the financial markets, house holds are suppliers of funds and business firms represent the demand. The interaction between them helps to establish a price for the financial asset which is being traded in that particular market.

3. Providing liquidity to financial assets :
Financial markets facilitate easy purchase and sale of financial assets. In doing so, they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Holders of assets can readily sell their financial assets through the mechanism of their financial market.

4. Reducing cost of transaction :
Financial markets provide valuable information about securities being, traded in the market. It helps to save time, effort and money that both buyers and sellers of a financial assets would have to otherwise spend to try and find each other. The financial market is thus, a common platform where buyers and sellers can meet for fulfilment of their individual needs.

Financial markets are basically classified, on the basis of the maturity of financial instruments traded.in them, into money market and capital market. The financial instruments with a maturity of less than one year are traded in the money market and with long maturity are traded in the capital market. Furthur, money market is classified primarily into call money market, acceptance market, bill market, collateral loan market, whereas capital market may include both primary market and secondary market.

Question 2.
What is capital market? What is its importance?
Answer:
The term capital market refers to facilities and institutional arrangements through which long term funds, both debt and equity are raised and invested. It consists of series of channels through which savings of the community are made available for industrial and commercial enterprises. The capital market consists of development banks, commercial banks and stock exchanges. The process of economic development is facilitated by the existence of a well organised capital market. In fact, economic growth can be achieved through the development of the financial system. It is essential that financial institutions are sufficiently developed and that market operations are free,, fair, competitive and transparent.

Importance of capital market:
1. Act as a link between savers and investors :
Capital market plays an important role in mobilising the savings and diverting them into productive investment. In this way, it is transferring financial resources from surplus and wasteful areas to deficit and productive areas.

2. Encourage savings :
In the undeveloped countries, there are low savings and those can save often invest their savings in unproductive areas and conspicuous consumption in the absence of a capital market. With the development of a capital market, the financial institutions provide wide, range of instruments which encourages people to save.

3. Encouragement to investors :
Various financial assets like shares, bonds etc., encourage people to put their investment in the industry or lend to government. This can be facilitated by the existence of capital market.

4. Stability in prices :
The capital market tends to stabilise the value of stocks and securities. In the process of stabilisation, it is providing capital to the borrowers at a lower interest rate and discourage investment in speculative and unproductive areas.

5. Promotes economic growth :
The balanced economic growth is possible in any country with, the proper allocation of resources among the’ industries. The capital market not only reflects the general condition of the economy, but also smoothens and accelerate the process of economic growth.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Question 3.
Distinguish between capital and money market.
Answer:
Distinction between capital market and money market.

Points of distinction Capital Market Money Market
1. Participants The participants in the capital market are development banks and investment companies. The central bank and commercial banks are major participants.
2. Instruments The main instruments traded in the capital market are equity shares, preference shares, bonds, debentures etc. The main instruments are shortterm debt instruments such as treasury bills, trade bills, commercial paper and certificates of deposits.
3. Investment outlay Investment in the capital market does not necessarily require a huge financial outlay. The value of units of securities is generally low. In the money market, transaction entail huge sums of money as the instruments are quite expensive.
4. Period It is a market for long term funds for more than one year. It is a market for short term funds for a period not exceeding one year.
5. Liquidity outlay Capital market securities are considered liquid investments because they are marketable in the stock exchanges. Money market instruments, on the other hand, enjoy a higher degree of liquidity as there is formal agreement for this.
6. Safety Capital market instruments are riskier both with respect to returns and principal repayment. But the money market is generally much safer with a minimum risk of default. This is due to the shorter duration of investing and also to financial soundness of the issues.
7. Expected return The investment in capital mar­ket generally yield higher re­turns for investors than the money market. The returns in the money market investments are low when compared with capital markets.
8. Regulator SEBI regulates the institutions and procedures. Reserve Bank of India regulates the market.

Question 4.
Define stock exchanges and explain its functions. [A.P. Mar. 17]
Answer:
According to securities contracts Act 1956, a stock exchange is defined as “an association, organisation, or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities”. .

Functions of stock exchange :
1. Ready and continuous market: The stock exchange provides a ready and continuous market for securities. The exchange provides a regular market for trading securities.

2. Protection to investors :
The stock exchange protects the interest of the investors through the enforcement pf rules. The rules of the securities contracts (Regulation) Act, 1956 also govern the dealings on stock exchanges.

3. Provides the information to assers the real worth of the securities :
The value of securities is made properly on the stock exchange. This is made by taking into consideration various factors such as present and future competition in securities, financial and general economic conditions. The stock exchange publishes the quotation of different securities on the faith of these quotations every investor knows the worth of his holdings at any time.

4. Provides liquidity of investment:
The stock exchange is a market for existing securities. This market is continuously available for the conversion of securities into cash and vice-versa. Persons who are not in need of hard cash can dispose off their securities easily.

5. Helps in raising capital:
There is always demand for additional capital from the existing concerns. The demandis met through the issue of shares. Stock exchange provides a ready market for such shares.

6. Raising public debt:
The increasing government’s role in economic development has necessiated the raising of huge amounts and stock exchange provides a plat form for raising public debt.

7. Listing of securities :
The company which wants its shares to be traded on stock exchange should list their securities by applying to the stock exchange authorities giving all the details regarding capital structure, management etc.

8. Encourage savings habit:
Stock exchange creates the habit of saving and investing among the members in the public. It leads to investment of their funds in corporate and government securities. In this way it contributes to the capital formation.

9. Economic barometer:
The pulse of the market can be known by its stock indices. The prevailing economic conditions effect the share prices. So, stock exchanges can be called as economic barometer.

10. Improve the company’s performances :
In stock exchanges only those securities are traded which are listed. The stock exchanges exercises influence over the management of the company.

Question 5.
Explain the objectives and functions of SEBI.
Answer:
The Securities Exchange .Board of India (SEBI) was established by the Government of India in April 1988 as interim administrative body to promote orderly and healthy growth of securities market and for investors protection. The SEBI was given a statutory status in 1992 Jan through an ordinance.

Objectives of SEBI:
The following are the objectives of SEBI.

  1. To regulate stock exchanges and the securities market to promote their orderly functioning.
  2. To protect the rights and interests of the investors, particularly individual investors by guiding and educating them.
  3. To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
  4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc. with a view to making them competitive and professional.

Functions of SEBI:
SEBI was enturusted with the twin task of both regulation and development of the securities market. It has certain protective functions.

A. Regulatory functions:

  1. Registration of brokers, sub-brokers and other players in the market.
  2. Registration of collective investment schemes and mutual funds.
  3. Regulation of stock brokers, portfolio exchanges, underwriters and merchant bank¬ers and the business of stock exchange and any other securities market.
  4. Regulation of takeover bids by companies.
  5. Calling for information by undertaking inspection, conducting enquiries and au¬dits of stock exchanges and intermediaries.
  6. Levying fee or other charges for carrying out the purposes of the Act.
  7. Performing and exercising such power under securities contracts (Regulation) Act 1956, as may be delegated by the Government of India.

B. Development Functions :

  1. Training for intermediaries of the securities market.
  2. Conducting research and publishing information useful to all market participants.
  3. Under taking measures to develop the capital markets by adapting a flexible ap-proach.

C. Protective functions:

  1. Prohibition of fraudulent and unfair practices like making misleading statements, manipulations, price rigging etc.
  2. Controlling insider trading and imposing penalties for such practices.

Short Answer Questions

Question 1.
What are the different components of money market?
Answer:
The following are the basic components of money market.
1. Call Money Market:
It is an important sub market of Indian money market. It is also known money at call and money at short notice. It is also called as Inter bank loan market. In this market money is demanded for extremely short period. The duration of such transaction is from few hours to 15 days. It is basically located in industrial and commercial locations such as Mumbai, Calcutta, Delhi etc. These transactions help stock brokers and dealers to fulfill theif financial requirements. The rate at which money is made available is called as a call rate. The rate is fixed by the market forces such as demand for and supply of money.

2. Acceptance market:
A market consisting primarily of short term instruments of credit typically used by exporters in getting paid more quickly for their exported goods.

3. Bill market:
Bill market is meant for short term bills. It includes commercial bills and treasury bills. It helps the government by marketing of treasury bills and helps other sectors also.

4. Collateral Load Market:
It is an important section of the money market, which takes the form of loans, O.D.S and Cash credits. These advances are covered by collaterates like government securities, gold, silver, stocks and merchandise etc.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Question 2.
Explain the various money market instruments. .
Answer:
The following are some of the important money market instruments.

1. Treasury bills :
A treasury bill is basically an instrument of short term borrowings by the Government of India maturing is less than one year. They are also known as zero coupon bonds issued by RBI on behalf of Central Government to meet its short term requirements of funds. The purchase price is less than face value. At maturity the government will pay full face value.

2. Commercial paper:
Commercial paper is a short term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and credit worthy companies to raise short-term funds at lower rates of interest than market rates. It is usually has a maturity period of 15 days to one year. It is sold at discount and redeemable at par. The original purpose of commercial paper was to provide short term funds for seasonal and working capital needs. Companies use this instrument for the purpose such as brige financing.

3. Call money :
Call money is a short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter bank transactions. Commercial banks have to maintain a minimum cash balance known as cash reserve ratio. Call money is a method by which banks borrow from each other to be able to maintain the cash reserve ratio. The interest rate paid on call money loans is known as the call rate. It is highly volatile rate that varies from day-to-day and sometimes even from hour-to-hour also.

4. Certificate of deposit:
Certificate of deposit are unsecured, negotiable, short¬term instruments in bearer form, issued by commercial banks and developed financial institutions. They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high. They help to mobilise a large amount of money for short periods. The return on the certificate is higher than the treasury bills because it assumes a higher level of risk.

5. Commercial bill:
A commercial bill is a bill of exchange used to finance the working capital requirements of business firms. It is a short, negotiable, self liquidating instrument which is used to finance the credit sales of firms. The seller draws a bill on the buyer.

When it is accepted, it is called trade bill and becomes marketable instrument. These bills can be discounted with a bank if the seller needs funds before the bill natures. When trade bill accepted by a commercial bank, it is known as commercial bill.

6. Collateral loan :
Commercial banks provides loans against the government securities and bonds.

Question 3.
Explain the capital market instruments.
Answer:
The following are the capital market instruments.
1. Secured Premium Notes (SPN):
It is a secured debenture redeemable at premium issued along with a debenture warrant, redeemable after a notice period, say four to seven years. The warrants attached to SPN gives the’holder a right to apply and get allotted equity shares, provided the SPN is fully paid.

2. Deep discount bonds :
A bond that sells at a significant discount and redeemable at par at the time of maturity. They are designed to meet the long term funds requirements of the issuer and investors who are not looking for immediate return and can be sold with a long maturity of 25 – 30 years.

3. Equity shares with detachable warrants:
A warrant is issued by a company entitling the holder to buy a given number of shares at a stipulated price during a specified period. The warrants are separately registered with stock exchange and traded separately.

4. Fully convertible debentures with interest:
This is a debt instrument that is fully converted into equity shares over a specified period. The conversion can be in one or several phases. When the instrument is pure debt instrument, interest is paid to the investor. After conversion, interest payments peases on the portion that is converted.

5. Sweat equity shares :
These equity shares are issued by the company to employees or directors on favourable terms, in recognition of their services. Sweat equity usually takes the form of giving options to employees to buy the shares of the company, so they become part owners and participate in the profits, apart from earning salary.

6. Disaster bonds :
Also known as catastrophe or CAT bonds. Disaster bonds is a high yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophy. It has a special condition which states that if the issuer (Insurance or Reinsurance Company) suffers a loss from a particular pre-defined catastrophy, then issues obligation pay interest and/or repay the principle is either deferred or completely forgiven.

7. Foreign currency convertible bonds :
A convertible bond is a mix between a debt and equity instrument. It is bond having a regular coupon and principal payments and also take the advantage of any large price appreciation in stock, due to equity side of the bond.

8. Derivatives:
A derivative is a financial instrument whose value and characteristics denend on characteristics and value of some underlying asset, typically commodity, bond,r, currency, index etc.

Question 4.
Distinction between Primary and Secondary market.
Answer:
The following are the differences between primary market and secondary market.

Primary Market (New issue market) Secondary Market (Stock Exchange)
1. There is sale of securities to investors by new companies or new issues by existing companies. 1. There is trading of existing shares only.
2. Securities are sold by the company to the investor directly or through an in termediary. 2. Ownership of existing securities is exchanged between investors. The company is not involved at all.
3. The flow of funds is from savers to investors i.e. The primary market directly promotes capital formation. 3. Enhances encashment (liquidity) of shares i.e. The secondary market indirectly promotes capital formation.
4. Only buying of securities takes place in the primary market. Securities cannot be sold there. 4. Both the buying and selling of securities can take place on the stock exchange.
5. Prices of securities are determined and decided by the management of the company. 5. Prices are determined by demand and supply of the security.
6. There is no fixed geographical location. 6. Located at specified places.

Question 5.
What do you know about BSE and NSE? [A.P. Mar. 17]
Answer:
Bombay Stock Exchange :
The first stock exchange was established as ‘Native Share and Stock Brokers Association’ at Bombay in 1875, the predecessor of the present day Bombay Stock Exchange (BSE). BSE is located in Dalai street, Mumbai, which is Asia’s first stock exchange and one of India’s leading exchange groups. Over the past 140 years, BSE has facilitated the growth of Indian corporate sector by providing it an efficient capital raising platform. In 1956, the BSE became the first stock exchange to be recognised by the Indian Government under the securities contracts Regulation Act, 1956. It is 4th largest stock exchange in Asia and the 9th largest in the world. More than 5000 companies are listed in BSE making it World No. 1 exchange in terms of listed securities.

National Stock Exchange (NSE) :
The most important development in the Indian Stock market was the establishment of the National Stock Exchange (NSE). It is the latest and most modem technology driven exchange. It was incorporated on 27th November 1992 and was recognised as stock exchange in April 1993. It started operations in 1994, with trading on the whole sale debt market segment. It launched capital market segment in Nov. 1994 as trading plantform for equities and the futures and options segment in June 2000 for various derivative instruments. NSE has been able to take the stock market to the door step of the investors. It has provided a nation-wide screen based automated trading system with high degree of transparency and equal access to investors irrespective of geographical location.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Question 6.
Briefly explain about depository and dematerialisation.
Answer:
Depository:
Just like a bank keeps money in safe custody for customers, a depository is also like a bank and keeps all securities in electronic form on behalf of the investor. In the depository, a securities account can be opened, all shares can be deposited, they can be withdrawn / sold at any time and instruction to deliver or receive shares on behalf of investor can be given. It is a technology driven electronic storage system. It has no paper work relating to share certificates, transfer forms etc. All transactions of the investors and settled with greater speed, efficiency and all securities are entered in a book entry made.

Dematerialisation:
All trading in securities is now done through computer terminals. Since all systems are computerised, buying and selling of securities are settled through an electronic book entry form. This is mainly done to eliminate problems like theft, fake / forged transfers, transfer delays and paper work associated with share certificates or debentures held in physical form.

In this process securities held by the investor in physical form are cancelled and the investor is given an electronic entry or number so that he can hold it as an electronic balance in an account. The process of holding securities in an electronic form is called dematerialisation. For this the investor has to open a demat account with an organisation called depository. In fact, now all initial public offers are issued in dematerialised form.

Question 7.
What is index? Explain any two popular indices in our country.
Answer:
A stock market index is a barometer of market behaviour. It measures overall market sentiment through a set of stocks that are representative of the market. It reflects market direction and indicate day-to-day fluctuations in stock prices. An ideal index number must represent changes in the prices of securities and reflect price movement of typical shares for better market representation. If the index rises, it indicates that the market is doing well and Vice-Versa. In Indian market the BSE – SENSEX and NSE – Nifty are important indices.

SENSEX (Sensitive Index) :
SENSEX is the bench mark index of the BSE. The BSE sensex is also called the BSE-30. Scince the BSE has been the leading exchange of the Indian secondary market, the sensex has been an important indicator of the indian stock market. It is most frequently used indicator while reporting on the state of the market. The SENSEX, launched in 1986 is made up of 30 of the most actively traded stocks in the market. They represent 13 sectors of the economy and’are leaders in their respective industries. The index with a base year of 1978-79, the value base year was 100.

NIFTY:
NIFTY is an index of NSE, which computed from performance of top stocks from different sectors listed in NSE. NIFTY stands for National Stock Exchanges Fifty. It consists of 50 companies from 24 different sectors. The companies which form index of nifty may vary from time to time based on many factors considered by NSE. The base year for index is 1995 – 96 with the base value as 1000.

Very Short Answer Questions

Question 1.
Financial Market.
Answer:
A financial market is a broad term describing any market place where buyers and sellers participate in the trade of financial assets such as equities, bonds, currencies and derivatives.

Question 2.
Classification of financial market.
Answer:
Financial markets are basically classified on the basis of maturity of financial instruments traded in them, into money market and capital market. The financial instruments with a maturity of less than one year are traded in money market and with longer maturity are traded in the capital market.

Question 3.
Money Market.
Answer:
The money market is a market for short term funds which deals in monetary assets whose period of maturity is up to one year. The market facilitates raising of short-term funds for meeting temporary shortage of cash and obligations and deployment of excess funds for earning returns.

Question 4.
Capital Market.
Answer:
The term capital market refers to facilities and institutional arrangements through which longterm funds, both debt and equity are raised and invested. It consists of series of channels. Through which savings of the community are made available for industrial and commercial purposes.

Question 5.
Primary Market.
Answer:
It is also known as the new issue market. It deals with new securities being issued for the first time. The essential function of primary market is to facilitate the transfer of investible funds from savers to entrepreneurs.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Question 6.
Secondary Market.
Answer:
It is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter into the market. It provides liquidity and marketability to existing securities.

Question 7.
Treasury Bills.
Answer:
A treasury bills is an instrument of short term borrowing by Government of India maturing in less than one year. These are issued by RBI on behalf of Goyemment to meet its short term requirements. The purchase price is-less than face value and at maturity govt, will pay full face value.

Question 8.
Commercial Papers.
Answer:
Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and credit worthy companies to raise short-term funds at lower rates of interest than market rates.

Question 9.
Certificate of Deposit.
Answer:
Certificates of deposits are unsecured, negotiable short-term instruments in bearer form, issued by commercial banks and developed financial institutions. They can be issued to individuals, corporations during periods of tight liquidity when deposit growth of banks slow and demand for credit is high.

Question 10.
OTCEI.
Answer:
The Over The Counter Exchange of India (OTCEI) is a company incorporated under companies Act, to provide small and medium companies to access to the capital market for raising finance in a cost effective manner. It is also meant to provide investors with a convenient, transparent and efficient avenue for capital market investment.

Question 11.
Dematerialisation. [A.P. Mar. 17]
Answer:
It is a process where securities held by investor in the physical form are cancelled and the investor is given an electronic entry so that he can hold it as an electronic balance in an account. This process of holding securities in an electronic form is called dematerialisation. ‘

Question 12.
Depository.
Answer:
Just like a bank keeps money is safe custody for customers, a depository keep securities in electronic form on behalf of investors. In the depository a securities account is opened and all shares deposited and sold at any time, an instruction to deliver and receive shares on behalf of investors given.

Question 13.
SENSEX. [A.P. Mar. 17]
Answer:
BSE sensex is called BSE-30. Since BSE has been the leading exchange of the Indian secondary market, SENSEX is an important indicator of the Indian Stock Market. SENSEX which was launched in 1986 is madeup of 30 of the most actively traded stocks in the market.

AP Inter 2nd Year Commerce Study Material Chapter 4 Financial Markets

Question 14.
NIFTY.
Answer:
NIFTY stands for National Stock exchange 50. It is an index computed from the performance of top stocks from different sector listed in NSE. NIFTY consists of 50 companies from 24 different sectors. The companies which form index of NIFTY may vary from time to time based on many factors Considered by NSE.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 3rd Lesson Business Services Textbook Questions and Answers.

AP Inter 2nd Year Commerce Study Material 3rd Lesson Business Services

Essay Answer Questions

Question 1.
Define banking. Explain the functions of banking.
Answer:
The word Bank is derived from the French word ‘Bancus’ means a bench. According to Banking Regulation Act of 1949, banking is defined as “Accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise”.

The basic functions of banks are classified as primary functions and secondary functions.

A) Primary functions:
i) Accepting Deposits :
Bank accept various types of deposits, such as

Fixed deposits :
Fixed deposits are also called as time deposits or term deposits. In this deposit amount cannot be withdrawn until the maturity. Interest rate is also high.

Current Deposits :
Current accounts bears no interest companies, institutions, government and business men hold the current account. The greatest advantage of having current account is that there is no restriction on the withdrawls.

Savings Deposits :
The aim of these accounts is to encourage small savings from the public. Certain restrictions are imposed on the depositors regarding the number of withdrawals and the amount to be withdrawn in a given period of time.

Recurring deposits :
The purpose of these accounts is to encourage regular savings particularly by the fixed income group. Generally money is deposited in these accounts on monthly instalments for a fixed period. It is repaid to the depositors along with interest on maturity.

ii) Advancing of Loans :
Lending is carried out purely on profit motive. Banks lend the amount which is mobilised through the deposits. The different forms of lending are :

Loans :
A specified amount sanctioned by bank is called a ‘Loan’. A loan is granted against the security of property or personal security. The loan may be repaid in lumpsum or in instalments. The loan may be classified into i) Demand loan ii) Term loan. Demand loan is repayable on demand. It is repayable at short notice. Medium and long term loans are called term loans. It is granted for more than year and repayment is done on longer period.

Cash credit:
Cash credit is an arrangement where by the bank agrees to lend money to the borrower upto a certain limit. The amount is credited to the borrowers account. The borrower draws the money as and when he needs. Interest will be charged only on the amount actually drawn. Banks may impose commitment charges on unutilised portion.

Overdraft:
Banks grants overdraft to current account holders by which he is allowed to draw an amount in excess of the balance held in his account. Interest is charged on the overdrawn amount.

Discounting of bills of exchange :
A holder of a bill of exchange may be in urgent need of cash before the due date. He may sell or discount the bill with the bank. He will receive lesser amount than the actual amount. On maturity, the bank gets it payment from the debtor.

B) Secondary Functions :
These services include agency services and general utility services.

1. Agency services :
Banks perform some agency services on behalf of their customers.

  • Banks helps their customers in transferring funds from one place to another place through cheques, drafts etc.
  • Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes etc.
  • Banks undertake to purchase and sale of various securities like shares, bonds, debentures etc., on behalf of their customers.
  • Banks preserve the wills of their customers and execute them after death.

2. General utility services :
These services are

  • Letters of credit are issued by the banks to their customers certifying their credit worthiness.
  • Banks issue travellers cheques to help to travel without fear of theft or loss of money.
  • Banks provide safe deposit locker facilities to the public at selected branches.
  • Accepting or collecting foreign bills of exchange.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 2.
Discuss the principles of insurance. [A.P. Mar. 17]
Answer:
Insurance means protection against risk of loss. It provides compensation against any loss or damage due to the happening of an event. It is a contract between the two parties by which one of them undertake to indemnity the other person against a loss which may arise due to some events.

Principles of insurance :
1. Insurable interest:
A person cannot enter into a contract of insurance unless he has insurable interest in the subject matter of insurance. It is essential feature of insurance. Without this insurable interest, the contract of insurance will be treated as a wager or gambling contract. A person has insurable interest on his own life or the life of his wife and a creditor has insurable interest in the debtor.

2. Utmost good faith :
Insurance is based on the principle of utmost good faith. It means both the parties of the contract must disclose all the facts relating to the subject matter of insurance. If the insured does not disclose all material facts, the contract between them is void.

A person who had suffered from T.B. in the past had not disclosed it in the proposal form. Later on the insurer comes to know of this fact. He may declare the contract as void.

3. Indemnity :
This is the chief principle of insurance. Indemnity means security against risk of loss. Under this principle, the insured gets only the loss suffered from the insurer but not profits out of the contract of insurance. The principle of indemnity applies to contracts of fire and marine insurances only, but not to life insurance contracts.

4. Contribution :
Sometimes, goods are insured with more than one company. It is double insurance. The insured can get compensation only for the total loss from all insurance companies put together, but not total loss from each company. The insurance companies will pay the compensation on prorata basis.

5. Subrogation :
According to this principle, the insurer after compensating the loss of insured, the right of ownership of the damaged goods is shifted from insured to insurance company. Ex : Mr. X owns a scooter worth ₹ 36,000 and it was insured with a insurance company for full value. Later it was met with an accident and damaged beyond repairs. The insurance company paid the full value as compensation. Then all the rights on the scooter will pass on to insurance company.

6. Causa proxima :
According to this principle, the loss is caused by nearest and direct factor, then only the insurer will have to bear the loss. Ex : Biscuits in a ship are insured and are destroyed because of the sea water entered through a hole made by the mouse in the bottom of the ship and water entered into the ship. The nearest and direct cause is sea water. Hence, the insurer will have to bear the loss.

7. Mitigation of loss :
It is duty of the insured to take necessary steps to minimise the loss happened due to some event. He should not act carelessly and negligently at the time of loss to the insured property.

Question 3.
Define Life Assurance Policy. What are the kinds of life assurance policies?
Answer:
A life insurance contract may be defined as “a contract whereby the insurer, in consideration of premium paid either in lumpsum or in periodical instalments, undertakes to pay an annuity or a certain sum of money, either on the death of the insured or the expiry of certain number of years”.

Kinds of life assurance policies:
The following are some of the popular life assurance policies.
1) Whole life policy :
Under this policy the premium is paid through out the life of the insured. The sum assured is payable only after the death of the assured. The premium payable is low and it is meant for the family.

2) Endowment policy:
This policy is taken up for a specific period called endowment period. The policy will mature at the end of the specified period or at the attainment of particular age or on the death of insured, whichever is earlier. This policy offers the advantage of both protection and investment.

3) With or without profits policies :
When the policy is insured with profits, the policy holders share the profits of the company. The profit is called Bonus. The amount of the policy and bonus is paid on the maturity of the policy. When the policy is insured without profits, the insured does not share any profits and the amount of policy only is paid on maturity.

4) Joint life policies:
A policy may be taken jointly on the lives of two or more persons. On the death of any one person, the policy is paid to other surviving policy holder as the case may be. This type of policy may be taken by husband and wife.

5) Convertible whole life policy :
The policy is insured for whole life policy with a provision to convert it into endowment policy after a specified period. The conversion is done at the request of the assured. The rate of premium is increased after conversion.

6) Janata policy:
Janata policy was introduced by life insurance corporation of India in May 1957. This policy was introduced for the benefit of lower income group people. It can be issued for a term of 5,10, 15, 20 and 25 years subject to the condition that it should mature at the age of 60 years. No loans are granted on such policies.

7) Annuity policy :
Under this policy, the insured would deposit a lumpsum amount with the insurance company. The amount of policy would be paid to the insured for a specified number of years or until the death of the insured.

8) Children endowment policy:
This policy is taken by a person for his / her children to meet the expenses of their education or marriage. The agreement states that a certain sum will be paid by the insurer when the children attain a particular age.

9) Group insurance policy :
Members of a family or the employees of a business concern can take this insurance policy.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 4.
What do you understand by the word Transport? Discuss the benefits and limitations of Transport.
Answer:
Transport is the physical means of moving goods and persons from one place to another. Transport creates place utility of goods by moving them from different centres of production to the places of consumption. Goods are now produced thousand miles away from places where the consumer resides. Transportation only help the business men to reach consumer. Not only does transport give place utility, but it also renders time utility in various ways. Transportation, in simple language can be defined as “a means through which goods are transferred from one place to another”.’

Benefits or Functions of transport:
1. Movement of goods:
The first and important function of transport is the movement of goods. The raw materials have to move from their sources to the factory. The manufactured goods have to move from the factory to the consuming areas.

2. Transport enhances mobility of labour and capital :
An efficient network of transport services encourages the movement of people from one place to another labour can migrate to the place where they can get better job opportunities which reduces exploitation of labour.

3. Creation of place utility:
It moves goods from places where they are abundant to the places where they are scarce and thus creates place utility.

4. Specialisation and division of labour :
Transportation facilitates optimum utilisation of natural resources of a country. For example, petroleum resources of Arab countries, watches of Switzerland etc.

5. Creation of time utility :
With the advancement of technology, transportation time is being shortened. So, it creates time utility.

6. Stability in prices :
Goods can be transported from the place where the goods are abundant, to the places where scarcity exists. In this way, prices are equalised throughout the country.

7. Contribution to national income :
The transportation also contributes national income of a nation. For example, our railways.

8. Economies of large scale production :
Transport has helped the development of large scale industries. Transport procure raw material, labour and sells the finished goods.

9. Improve standard of living :
Availability of wide variety of goods at reasonable prices improves standard of living.

10. National defence :
Transport strengthens the national defence transport system. During war period, all the personnel, material and equipment can be moved rapidly to the boarder areas.

Limitations of transport :
1. Cottage and small scale industries lost their glory :
With the development of transport, labour is showing interest to work in big factories. This has led to shortage of workers in tiny and small scale industries.

2. Accidents :
Improvement in transport facility has given rise to new problem viz. accidents.

3. High urbanisation:
Improved means of transport has helped in creating big cities, which have further resulted into concentration of population in these cities. This has given rise to many new problems such as housing, health and pollution.

Question 5.
Describe the road transportation. Explain the kinds of roads in India. [A.P. Mar. 17]
Answer:
Road transport is the oldest form of transport. The Indian road network is one of the largest in the world. Road transport plays an important role in trade and commerce. Road transport is very good for short distance. Door – to – door collection and delivery is possible in road transport. It is most suitable for perishable goods. In road transport both men and animals are used to carry goods and people.

Modes of road transport are bullock carts, Tonga, rickshaws and motor vehicles such as jeeps, buses, motor vans, trucks and other vehicles. Road transport is suitable for the goods such as paper goods, clothing, computers, livestock, cement etc.

Indian roads are classified into three types – National highway, State highway, District and Rural roads.

a) National highway:
These roads are meant for inter state transport and movement of defence men. These also connect the state capitals and major cities. The National Highway Authority of India (NHAI) has the responsibility of development, maintenance and operation of national highways. The national highways have a road length of about 65,000 kms or 2% of the length of the total road system but they carry nearly 40% of goods and passenger traffic.

b) State highways:
These are constructed and maintained by state government. They connect the state capital with district head quarters and other important towns. State highways constitute 4% of total road length in the country.

c) District roads :
These roads are the connecting link between district head quarters and the other important roads of the district. The account for 14 % of the total road length of the country.

d) Rural roads :
These roads provide link to the rural areas. There are about 80% of total length in India are categorised as rural roads.

e) Boarder roads :
These roads are in the northern and northern – eastern boundary of the country. The Boarder Road organisation constructs and maintains boarder roads. They construct roads in high altitude areas and undertakes snow clearance.

f) International highways :
There are meant td promote harmonious relationship with the neighbouring countries by providing effective links with India.

Question 6.
Explain the warehouse concept and its significance.
Answer:
The term warehousing is a combination of two terms, ‘ware’ and ’housing’. The word ware refers to goods. Therefore, warehousing can be defined as the ‘ place suitable for preserving the goods and warehousing is the activity involving storage of goods. In common parlance warehouse means a godown. Warehousing facilitates other marketing functions such as assembling, grading and transportation.

Warehousing performs two important functions with regarding to finished goods. They are movement function and storage function. Movement function refers to the receipt of the products from the manufacturing plant, their transfer into warehouse and transferring them to common carriers on their way to consumers. The storage function is performed by retaining storing products in the warehouse until they are sold because production and consumption cycles differ. Warehousing functions creates time utility at minimum cost.

Significance :

  1. Some commodities are produced in a particular season only. To ensure their off – season availability, warehousing is needed.
  2. Some products are produced throughout the year but their demand is seasonal. Warehousing is important in such cases.
  3. For the companies which opt for large scale production and bulk supply, warehousing is unavoidable factor.
  4. Warehousing help companies to ensure quick supply of goods in demand.
  5. Production of goods and their movement of goods are important for the companies for continuous production of goods.
  6. Warehousing is also important for price stabilisation. For necessary goods, the Government store them in the warehouse and control its supply in the market as per the price fluctuations.
  7. Another important need of warehousing is for bulk breaking.

Short Answer Questions

Question 1.
Define services and goods.
Answer:
Services are those separately identifiable, essentially intangible, activities that provide satisfaction of wants and are not necessarily linked to the sale of a product or other services. Services are intangible as they are not seen or touched. Service is inconsistant, since there is no standard tangible product. Service is the simultaneous activities of production and consumption. Services cannot be stored for future. Service is the participation of the customer in the service delivery process.

Goods are physical objects and are homogeneous in nature. They are tangible. Ex: Medicine Different customers get standardised demands fulfilled. Ex: Mobile phones. There will be separation of production and consumption. Ex : Purchasing ice cream from a store. Goods can be kept in stock. Ex : Train journey ticket. Involvement at the time of delivery is not possible. Ex : Manufacturing a vehicle.

Question 2.
What are the advantages of E-Banking?
Answer:
E-Banking brings certain advantages.
1. It reduces costs :
The cost of banking transactions is considerably reduced. It increases the profitability of the banks.

2. Prompt in services :
There is high degree of personalisation and fast and flexible execution. Thus E-Banking prompt service and there is greater customer satisfaction.

3. Anywhere and any time banking :
It is 24 hours in a day and 7 days in a week banking service. Bank account can be accessed from anywhere. So the customer can obtain information his account and conduct transactions from his home or office.

4. Cashless banking :
Handling of cash is not necessary in E-Banking.

5. Global coverage :
It provides global network coverage of bank services. NRIs can monitor their bank account in Indian banks, from abroad.

6. Central data base :
The data base of each branch is centralised. Customer can deposit, withdraw or remit money from any branch of his bank.

7. Internet banking helps banks to reduce the workload of their branches, such as generation of statements, balance of enquiry etc.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 3.
What is Mobile Banking? What are the services can be obtained through mobile banking?
Answer:
The delivery of bank services to customers through mobile (cell) phone is called mobile banking. When compared to telephone banking the scope of mobile banking is more and effective also. Mobile banking can take the form of SMS banking, GSM SIM Toolkit and WAP.

a) SMS banking :
Short messages are sent to the customers mobile phones. SMS messages can be used for both passive and active banking operations. A client automatically receives information about his account balance after a certain operation is performed.

b) GSM SIM Tool kit :
The GSM SIM Toolkit service can be only be used from a mobile phone supporting this technology. GSM SIM Toolkit is a software that evolves arbitrary changes in the mobile phone menu. Mobile phones now on the market support GSM SIM Tool kit after buying a special sim card and activating the permanent bank branch. The client can use this service.

c) WAP (Wireless Application Protocol) :
WAP is often compared to web pages although it is simplified. Unlike pages appearing on computer monitor, WAP presents it output on a small mobile phone. WAP Banking is not very popular. Only few banks are providing this service. .

Question 4.
What are the facets of electronic banking?
Answer:
The following are the different facets of E-Banking.
1. ATM :
ATM is popularly known as Any Time Money Machine. The customer gets cash fast, withdrawal, transfer, payment of bills or cash deposit through ATM.

2. Tele banking (home banking) :
Customers can perform number of transactions from their telephone such as checking the balance in the accounts, transfer funds from one account to another, pay certain bills and order statements or cheque book etc.

3. E-mail banking :
Customers may communicate with bank by electronic mail or E-mail. The most frequently used service is sending account statement periodically to the clients mail box.

4. Network banking or online banking:
Internet or online banking is a facility provided by banks to enable the user to execute bank related transactions through internet. The people sitting at home can transact business and they need not visit bank.

5. Mobile banking:
The delivery of bank services to a customer through mobile (cell) phone is called mobile banking.

Question 5.
Explain the term Insurance? Explain the functions of Insurance.
Answer:
The method of sharing of risk through economic cooperation is called insurance. Insurance may described as a social device to reduce or eliminate risk of loss to life and property. Insurance renders valuable services to commerce as well as to the society. Insurance covers many risks and uncertainties in the world of business and act as a boon to business firms.

Functions of Insurance :
1. Providing certainty :
Insurance provides payment of the risk of loss. There are uncertainties of happening of time and amount of loss. Insurance removes these uncertainties and the assured receives payment of loss. The insurer charges premium for providing certainty.

2. Protection:
The second function of insurance is to provide protection from probable chances of loss. Insurance cannot stop the happening of a risk or event but can compensate the losses arising out of it.

3. Risk sharing:
On the happening of a risk event, the loss is shared by all the persons exposed to it. The share is obtained from every insured member by way of premiums.

4. Assist in capital formation:
The accumulated funds of the insurer received by way of premium payments made by the insured are invested in various income generating schemes.

Question 6.
Explain the costs and benefits of Insurance.
Answer:
The following are the benefits of Insurance :
i) Provides certainly :
Insurance helps the insured to convert his uncertainties into certainities by entering into contract of insurance. The payment of premium by insured enables to reduce the risk.

ii) Distribution of losses :
Insurance helps to distribute losses of any uncertain events among the large number of insurer’s. It enables to transfer the risks and spreads the financial loss of insured members over the whole insurers.

iii) Provides security:
It provides security to the insured against the risk of uncertain events. The insurance company guarantees the insured to compensate or indemnify the loss on the occurrence of an event in consideration for payment of premium.

iv) Generates capital :
Insurance reduces financial risks and losses by providing facilities of capital investment in various organisations.

v) Increases efficiency :
Insurance reduces the risk and increases the efficiency in business. It provides security for business community which in turn paves the way for growth and diversification of industry.

vi) Earns foreign exchange :
Insurance provides security to the international traders, shippers and banking institutions, thus paves the way for expansion of foreign trade. The increased foreign trade activities lead to securing foreign exchange which makes the country to become economically strong.

vii) Social security :
Insurance acts as an instrument to fight against evils of poverty, unemployment, disease, old age, sickness, disability, accidents, fire and similar other calamities of nature.

viii) Promotes thrift:
Insurance encourages the people to go for savings. It alter the people in their spending habits and makes them to save a certain sum of money regularly.

Costs of disadvantages of Insurance :
i) Sharing of loss:
The loss of one person should be shared by all other policy holders. But the sharing of loss is opposed by many people as their return on investment is reduced.

ii) Real value of money :
The maturity value of the policy after the specific period may be more but the real value of money is going to be less.

iii) Lack of confidence :
Many of the investors, who propose to save their money, prefer banks and other financial institutions. It is due to lack of confidence in the insurance companies and its policies.

Question 7.
What are the advantages of Life insurance policies?
Answer:
In life insurance contract the policy amount is definitely, it is a question of time. The policy may mature during the life time of the assured or it may be paid on his death.

Advantages of life assurance policies :
1. Encourages savings:
The insured has to pay premium to insurance company every year. Otherwise, the policy will be cancelled. So, the insurance is helpful in creating the habit of saving money.

2. Exemption from income tax :
The amount paid as premium on a life insurance policy is allowed as deduction from income for calculating income tax.

3. Protection:
Life insurance provides protection to the family members if the policy holder dies suddenly. Life insurance builds a fund for the benefit of the dependents.

4. Credit facilities :
Insured can get loans against their policies to meet emergency needs. Life Insurance Corporation itself gives a loan against the policy to the insured at a lower rate of interest.

5. Surrender:
The life insurance company can surrender the life policy if the insured is unable to continue it. The insurance company can return some premium known as’surrender value’.

6. Meets the future needs:
An insurance policy can be helpful in providing funds for marriage and educational needs of insured children.

Question 8.
Explain the characteristics of marine Insurance.
Answer:
Marine insurance is a contract whereby the insurer agrees to indemnify the insured against marine losses.

The following are the characteristics of Marine Insurance.
1. Fundamentals of general contract:
Marine insurance must have the fundamentals ieraj insurance i.e. insurable interest, utmost good faith, indemnity, subrogation, contribution, warranties, causa proxima etc.

2. Consideration :
Marine insurance is a contract between the insured and insurer. Hence, insured is under an obligation to pay certain amount periodically to the insurer in consideration for accepting risk.

3. Coverage for insurance:
In marine insurance, cargo ship and freight can be insured. It covers large number of risks such as sinking of the ship, burning of the ship, standing of the ship, collision of ships, sea decoits etc.

4. Mode of insurance :
In marine insurance, the insurance may be for a single journey or number of journeys or for specific period of time. Insurance must be renewed once the specific condition is lapsed.

5. Indemnify the losses :
In marine insurance, the insurers guarantees to indemnify the losses caused by sea perils only.

6. Condition for compensation :
In marine insurance the insured is compensated only when the loss is occurred to ship or cargo. It also includes third party insurance.

Question 9.
Define Fire Insurance. Explain characteristics.
Answer:
According to Asbury, Fire insurance is defined as “It is a contract of insurance by which the insurer agrees for consideration to indemnify the insured upto a certain extent and subject to certain terms and conditions against loss or damage by fire which may happen to the property of the insured during a specified period”.

Features of fire insurance :
1. Contract of indemnity:
The fire insurance contract is a contract of indemnity and insured cannot claim more than the value of goods lost or damaged by fire or the amount of policy whichever is less.

2. Lawful consideration :
There must be consideration in fire insurance contract. The consideration is paid by the insured, which is called premium. Thus the essential element of fire insurance contract is premium received from the insured.

3. Insurable interest:
The insured must have insurable interest in the property or goods insured against fire. He must have insurable interest at the time of taking the policy and also at the time when the loss occurs and claim is filed for compensation.

4. Claim over residue :
The scrap or damaged goods after the fire accident automatically pass on to the insurer after the payment of claim under fire insurance.

5. Cause of accident:
The loss must be the out come of fire or ignition. No other reason for loss of property is accepted for settlement of claim.

6. Utmost good faith:
In fire insurance contract, both insured and insurer must have utmost good faith on each other.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 10.
Briefly state the advantages and disadvantages of road transportation.
Answer:
Advantages of Road transport: The following are some of the merits of Road transport.
1. Low capital:
It requires lesser capital for constructing roads. Roads are maintained by government and local authorities.

2. Low maintenance :
The maintenance charges of the road carriers are much less than the cost of railways.

3. Flexible :
Road transport is flexible. The route and timing can be adjusted to the individual requirements.

4. Suitable for short distance :
It is more economical and quicker for carrying goods and people over short distance.

5. Door-to-door delivery:
Road transport provides door-to-door delivery service for industries. Goods can be loaded at sellers doors and unload at buyers door.

6. Service to rural areas :
Exchange of goods between villages and towns are made possible by road transport.

7. Feeder to other modes of transport:
All the movement of goods begin and ultimately end by making use of roads.

8. High speed :
Road transport reduces the effective duration of the transit.

Disadvantages :
1. Less reliable :
Road vehicles are less reliable for long distance to travel because of the breakdowns and road congetions.

2. Accidents and breakdown :
There are more chances of accidents and breakdown in case of motor transport.

3. Lesser speed :
The speed of motor transport is comparatively slow.

4. Limited carrying capacity :
Load carrying capacity of road transport is limited.

5. More expensive :
The road is more expensive than railway transport for long distance travel.

6. Instable rates:
The rates charged by the road carriers are not stable. They need to charge with market.

Question 11.
State various advantages and disadvantages of Railway transportation.
Answer:
Advantages of railway transport:

  1. Railway transport facilitate long distance travel and transport bulky and heavy goods.
  2. It is quick and more regular form of transport because it helps in the transportation of goods with speed and certainty.
  3. It helps in the industrialisation process of a country by easy transportation of coal and raw materials at cheaper rates.
  4. It helps in the quick movement of goods from one place to another at the time of emergencies like famines and scarcity.
  5. It encourages mobility of labour and thereby provides a great scope for employment.
  6. Railway is the safest form of transport. The chances of breakdown and accidents of railways are less as compared to other modes of transport.
  7. The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic which can be easily be increased by adding more wagons.

Disadvantages :

  1. The railways require a large investment of capital. The cost of construction, maintenance* and overhead expenses are very high as compared to other modes of transport.
  2. Railway transport is not flexible. The routes and timings cannot be adjusted to the individual requirements.
  3. Rail transport cannot provide door-to-door service as it is tide to a particular track.
  4. Railway transport is unsuitable and uneconomical for short distance and small tariff of goods.
  5. It involves much time and labour for booking and taking delivery of goods through railways.

Very Short Answer Questions

Question 1.
ATM.
Answer:
ATM means Automatic Teller Machine. An ATM is an unmanned device located on or off the bank premises. The operation mechanism is that ATM is inserted into ATM, the terminal reads and transmits the tape data to a processor which activate the account. It works 24 hours a day, 7 days a week. ATM are being used to withdraw, deposit and transfer of funds.

Question 2.
Online Banking.
Answer:
It is also called as internet banking. It is a facility provided by banks that enable the user to execute bank related transactions through internet. People sitting at home can transact business.

Question 3.
Tele Banking.
Answer:
Customers can perform a number of transactions from their telephone such as they can check balances and statement information, transfer funds from one account to another, pay certain bills and order statements, cheque book etc.

Question 4.
Mobile Banking. [A.P. Mar 17]
Answer:
This type of service is provided free of cost to all the customers. Under this the customer can access his bank account on the mobile screen for the services such as checking the balance, ordering a demand draft, stop payment or viewing last five transactions. To avail this facility the customer requires to have a mobile phone with WAN facility.

Question 5.
Electronic Banking.
Answer:
The concept of E-banking will enable anyone to transact with bank from anywhere such as home or office at any time convenient to him, which can be beyond the banking hours. Electronic banking is banking with the use of electronic tools and facilities and through electronic delivery channels.

Question 6.
Differentiate Insurer and Insured.
Answer:
The party who agrees to pay money on the happening of an event is called insurer. The party who seeks protection against the risk by paying premium is called insured.

Question 7.
What is premium?
Answer:
It is the money which is paid periodically by the insured to the insurer in consideration for which the insurer gives protection to the insured.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 8.
Define Insurance.
Answer:
Insurance is the pooling of fortuitous losses by transfer of such risks to insurers, who agrees to indemnify insured for such losses, to provide other precuniary benefits on the occurrence or to render service connected with the risk”.

Question 9.
Re-Insurance.
Answer:
Insurance company undertakes the risk according to its capacity. If a company undertakes more risks than its capacity, then it tries to share the risks with some other insurance company. When insurance company insurer complete or part of the risk with other insurance company, then it is called re-insurance.

Question 10.
Double Insurance.
Answer:
When more than one insurance policy is taken on the same subject matter, it is called double insurance. In life insurance, any number of policies can be taken by the insured upon his life. He can collect full amount on all the policies. But this is not the case with fire and marine insurance. He is entitled to the compensation of the actual loss only.

Question 11.
What is subrogation?
Answer:
According to this principle, the insurer after compensating the loss of insured, the right of ownership on damaged goods is shifted from insured to insurer, i.e., insurance company.

Question 12.
What is proximate cause?
Answer:
According to this principle, the loss is caused by nearest and direct factor, then only the insurer will have to bear the loss. The principle is useful in deciding the actual cause of loss when number of causes have contributed for occurrence of loss.

Question 13.
What is insurable Interest?
Answer:
A person cannot enter into contract of insurance unless he has insurable interest. It is essential feature of insurance. Without the insurable interest the contract of insurance will be treated as a gambling contract. A person has insurable interest on own life or life of his wife.

Question 14.
Endowment polity.
Answer:
This policy is taken up for a specific period. The policy will mature at the expiry of specific period or attainment of particular age or on the death of the insured whichever is earlier.

Question 15.
Whole life policy.
Answer:
This policy runs throughout the life of the insured. The sum assured under this policy is payable only after the death of the insured. The premium is low and it is meant to protect the family. The insured will have to pay the premium throughout his life even at the old age when he is not earning.

Question 16.
Name the subject matters of marine insurance.
Answer:
Subject matter of marine insurance are

  1. Cargo or the goods on transhipment
  2. Hull
  3. Freight

Question 17.
What is cargo insurance?
Answer:
The cargo while being transported by ship is subject to many risks. These may be at ports i.e., risk of theft, loss of goods on voyage etc. Thus an insurance policy can be issued to cover against such risk to cargo.

Question 18.
What is freight insurance?
Answer:
If the cargo does not reach the destination due to damage or loss in transit, the shipping company is not paid freight charges. Freight insurance is for reimbursing the loss of freight to the shipping company i.e., insured.

Question 19.
Essential of fire insurance.
Answer:
Essentials of fire insurance are :

  1. It is a contract of insurance.
  2. There must be consideration.
  3. The object of the contract should be indemnify the assured for the loss caused by damage or destruction of property by fire.

Question 20.
National Highway.
Answer:
National highways are meant for internal transport. These roads also connect state capitals, major cities etc. The National Highway Authority has the responsibility of development, maintenance and operation of the national highways. These roads encompass a road length of about 65,000 kms.

Question 21.
Pipe Lines.
Answer:
Pipe line transport is used for the movement of liquid commodities. Crude oil, natural gas and other petroleum products are transported through pipe lines. Pipe lines offer continuous movement at a relatively low cost. They fuel are efficient, dependable and involves less losses and damage. It can be operated all around the clock (24 x 7).

Question 22.
Bonded warehouse.
Answer:
Bonded warehouses are owned and operated by port trust authorities. It is located near the port. It is a place where importers store goods till customs duties are paid or goods are re-shipped to other destination without being brought into the country.

Question 23.
Two significance of warehouse.
Answer:
Advantages of warehouses.

  1. It serves the business men who have very limited space.
  2. Some warehouses indirectly offer financial assistance.

Question 24.
Cash credit.
Answer:
A cash credit is an agreement where by a bank agrees to lend money to the borrower upto a certain limit. The amount is credited to the account of the borrower. The borrower draws money as and when he needs. Interest is charged on the amount actually drawn.

Question 25.
Bill discounting.
Answr:
The holder of a bill or drawer may be in urgent need of cash before the due date. In such circumstances, he can sell or discount the bill to the bank at lesser amount than the actual.

AP Inter 2nd Year Commerce Study Material Chapter 3 Business Services

Question 26.
Recurring deposit.
Answer:
In Recurring deposit, the depositor is required to deposit a fixed amount of money every month for a specific period. After the completion of the specific period, the consumer gets back the deposited amount along with the cumulative interest accrued on the deposit.

AP Inter 2nd Year Commerce Study Material Chapter 2 Domestic and International Trade

Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 2nd Lesson Domestic and International Trade Textbook Questions and Answers.

AP Inter 2nd Year Commerce Study Material 2nd Lesson Domestic and International Trade

Essay Answer Questions

Question 1.
What is trade? Explain different types of trade.
Answer:
Trade means buying and selling goods or services between two persons or two business organisations or two countries. Trade is broadly classified into two types.

  1. Domestic trade
  2. Foreign or international trade.

1. Domestic trade :
Buying and selling of goods take place between the individuals of the same country. The buyer and seller live in the same country. It is also called as

Home trade or internal trade on the basis of the scale of operations, internal trade can be classified into two types. They are

i) Wholesale trade
ii) Retail trade.

i) Wholesale trade:
Buying and selling goods in relatively large quantities is called ‘wholesale trade’. A perspn who is involved in wholesale trade is called wholesaler. A wholesaler buys goods in large quantities from the manufacturers and sells in relatively smaller quantities to the retailers. So, he is the connecting link between producers and the retailers.

ii) Retail trade :
Retailing means the sale of goods in small quantities to the consumers. A person engaged in retail trade is called a retailer. Retailers buys goods from wholesalers and sells them in relatively smaller quantities to the final consumers. Retailers established link between wholesalers and consumers.

2. Foreign trade or International trade :
The trade takes place between nations is international trade. So, goods or services exchanged between the traders of two nations is called foreign trade.
Foreign trade can be divided into three types. They are :

i) Import trade
ii) Export trade
iii) Entrepot trade.

i) Import trade :
The term import is derived from the conceptual meaning as to bring in the goods and services in the port of the country. When purchases are made from another country, goods are said to be imported from that country to the buyer’s country. For example, China has most modem technology for producing electronic products cheaply. So our country is importing those products.

ii) Export trade :
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of the country. When the goods are sold to a trader in another country, goods are said to be exported to that country by the seller country. For example, India is a major exporter of tea to another countries.

iii) Entrepot trade :
When goods are imported into a country, not for consumption in that country, but for exporting them to a third country, it is known as ‘Entrepot trade’. For example, India importing oil seeds from USA and exporting the same to Malaysia.

Question 2.
What is international trade? Various types of international trade? [A.P Mar. 17]
Answer:
The trade that takes place between nations is international trade. The exchange of goods and services between the traders of two nations is international trade. International trade involves the exchange of not only goods but also currencies between nations. International trade is the process of transferring goods produced by one country for the mers in another country.
Senior Inter

The international trade can be divided into three types. They are :

  1. Import trade
  2. Export trade
  3. Entrepot trade.

1) Import trade :
The term import is derived from the conceptual meaning as to bring in the goods and services into the port city of the country. When purchases are made from another country, goods are said to be imported from that country to the buyer’s country. For example, Japan has the most modem technology for producing the electronic products cheaply, so we import these products to our country.

2) Export trade :
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of the country. When goods are sold to a trader in another country, goods are exported to that country by the seller’s country. For example, India is a major exporter of tea because of fertile land in Assam and Darjeeling, so we export tea products to another countries.

3) Entrepot trade :
When goods are imported into a country, not for consumption in that country, but for exporting them to a third country, it is known as ‘Entrepot trade’.
e.g.: India importing wheat from U.S aftd exporting the same to SriLanka.

AP Inter 2nd Year Commerce Study Material Chapter 2 Domestic and International Trade

Question 3.
What is international trade? Explain its importance.
Answer:
The trade that takes place between the countries is called international trade. The exchange of goods and services between the traders of two countries is international trade. International trade involves not only the exchange of goods but also currencies between nations. International trade is the process of transferring goods produced in one country for the consumers pf another country. This is also called as Foreign trade or External trade. Due to globalisation development of means of communication and transport, the international trade has opened the way to huge imports and exports.

Importance of international trade:
Foreign trade becomes necessary to every country because no country is capable of producing everything for the consumption of its people and the development of its economy. Hence foreign trade is necessary on the following grounds.

  1. Different countries of the world have different natural resources. But some countries may not possess such mineral wealth. Therefore, one country has to depend on some other country for natural resources which results in need of foreign trade.
  2. Some countries are more suitably placed to produce some goods more economically due to availability of raw materials, labour, technical know-how etc. Than the other countries. In such case, foreign trade is needed to import goods from those countries where they can be produced cheaply instead of producing goods at higher cost.
  3. It is not possible for any country to produce all her needs. Production of different commodities require different climatic conditions. For example Cuba can produce sugar, Egypt can produce cotton etc. Foreign trade among these countries helps all these countries to get all their requirements.
  4. International trade has reduced inequalities and facilitated growth of economy in different countries.
  5. International trade lowers the prices of goods and services all over the world.
  6. International trade promotes increased international understanding, exchange of ideas and culture and world peace.
  7. In the era of globalisation, no economy in the world can remain cut off from the rest of the world. Therefore, every country has to depend upon some other country or other.

Question 4.
Distinguish between Home trade and Foreign trade.
Answer:
Home trade :
A trade which is carried on within the country is known as Internal trade or Home trade or Domestic trade. The home trade takes place within the geographical boundaries of a nation.

Foreign trade :
A trade which is carried on with other countries is known as foreign trade or external trade or international trade. Foreign trade refers to buying and selling of goods and services between the countries.

The following are the differences between Home trade and Foreign trade.

Home trade Foreign trade
1. Trade Trade carries with in country. Trade carried with other countries.
2. Currency It does not involve any exchange of currency. It involves exchange of currencies.
3. Restrictions It is not subjected any restrictions. It is subject to many restrictions.
4. Risk Transport cost and risks are less. Transport cost and risks are more.
5. Nature It consists of sales, transfer or exchange of goods within the country. It involves import and export of goods.
6. Transport of goods The movement of the goods depends on internal transport system.
e.g.: Roads, Railways.
The movement of goods takes place usually by sea wherever possible.
7. Specialisation It helps to derive benefits of specialisation within the country. It helps all trading countries to derive the benefits of specialisation.
8. Volume of trade The volume of trade depends upon the size of population, volume of production, development of banking facilities. There are restrictions imposed on free entry of goods and duties and taxes are to be paid.
9. Suitable It facilitates movement of goods from point of production to the areas where they are consumed. It facilitates countries to specialise in the production of goods for which they have maximum advantage.

Question 5.
Explain the limitations and problems of international trade.
Answer:
The exchange of goods and services between the nations is called international trade. It has certain limitations and problems. The following are the limitations of international trade.

  1. Economic interdependence is gained from international trade. In case of war. or any other political dead lock, it creates a crisis.
  2. Industrialisation of developing countries may be adversely affected by unrestricted imports.
  3. Foreign trade leads to unhealthy competition among the countries, creating rivarly between them.
  4. The concept of comparative cost principle which lead to rigid specialisation in a few countries may create many difficulties.
  5. International trade may lead to lopsided or partial development at the cost of neglect of certain sectors of the economy.

Problems of Foreign trade :
1) Currency problems:
Payment between the countries create complications because every country has its own currency. To avoid losses in transactions the rate of exchange has to be carefully determined.

2) Legal problems:
Laws and customs regulations are affecting the import and export trade because every country has its own laws, customs regulations. These regulations stand in the way of smooth inflow and outflow of goods.

3) Credit problems :
The exporter has to take special steps to ascertain the credit worthiness of the buyer as there is no direct contact between the exporter and importer.

4) Greater risk :
In foreign trade goods are to be exported to long distances. So exporting the goods creates greater risk.

5) Time gap :
In foreign trade there is a wide gap between the time when the goods are despatched and the time when the goods are received and paid.

Question 6.
What is SEZ? Explain their objectives.
Answer:
Special Economic Zones (SEZ) is a geographical region that has economic laws that are more liberal than a country’s economic laws. The main aim of the SEZ is to attract larger foreign investments. It is intended to make SEZs as engines for economic growth. The SEZ Act was passed by parliament in May 2005. A SEZ Act is specifically described as duty free enclave deemed to be a foreign territory for the purpose of trade operations. Objectives : The following are the objectives of special economic zones.

  • To create employment opportunities.
  • To generate additional economic activity.
  • To promote export of goods and services.
  • To develop infrastructural facilities.
  • To promote investment from domestic and foreign sources.
  • To import capital goods and raw materials duty free.
  • To create foreign territory for the purpose of trade operations and tariffs.
  • To allow 100% foreign direct investment for developing township.
  • To exempt import duties and service tax.
  • To get wide range of income tax benefits.

AP Inter 2nd Year Commerce Study Material Chapter 2 Domestic and International Trade

Question 7.
Explain the main advantages of SEZs. [A.P. Mar. 17]
Answer:
Special economic zones is a new incarnation of export processing zone. The main aim of the special economic zone is to attract large foreign investments. Special economic zones acts like an engine for economic growth. The SEZ Act was passed by parliament in May 2005. Special economic zones aims to create employment opportunities and infrastructure facilities along with promotion of exports. Special economic zones aimed at importing capital goods and raw materials duty free.

Advantages :
The following major benefits can be attributed to Special Economic Zones (SEZ).
i) Employment generation :
Special Economic Zones considered to be highly effect tools for job creation.

ii) Economic development :
India can be made as tranformed economy if special economic zones are implemented properly, because special economic zones are engines for economic development.

iii) Growth of labour intensive manufacturing industry :
Establishment of special economic zones may lead to faster growth of labour intensive manufacturing and service industry in the country.

iv) Balanced regional development:
Special economic zones are beautifully crafted initiatives for achieving balanced regional development.

v) Capacity building :
Special economic zones are necessary for stronger capacity building.

vi) Export promotion :
Special economic zones induce dynamism in the export performance of a country by eliminating a) Distortions resulting from tariffs and other trade barriers, b) The corporate tax system and excessive bureaucracy.

Question 8.
Describe the criticism labeled against SEZs.
Answer:
The following are the disadvantages of SEZ.

1) Special economic zones are criticised on many grounds. The first major criticism against special economic zone is forcible acquisition of agricultural land. This displaces many people from their traditional livelihood and employment sources such as farming, fishing etc. SEZs are encouraging real estate speculation. Small and marginal farmers, weaving and livestock rearing communities are away from their professions due to SEZs.

2) The special economic zones are not only dispossessing people from resources but also from democracy and governance. There has been a criticism regarding the governance model of special economic zones and their accountability. The problem of special economic zone is that there would be no democratic local governance institutions.

3) Special economic zones are also criticised for payment of meager and inadequate compensation and rehabilitation measures to the displaced. There are several environmental and health problems in the establishment of special economic zones. The SEZ Act is completely on environmental concerns.

4) Special economic zones are to be established in backward areas for bringing balanced regional development. But it has not happened. Majority of the units are located nearer to larger cities.

Question 9.
What are the incentives provided in the APSEZs?
Answer:
Andhra Pradesh Special Economic Zone (APSEZ), a multi-product SEZ is designated as duty free enclave and treated as foreign territory for trade operations, duties and tariff. It serves as a global gateway for industrial growth and offers world class infrastructure and support services, it also offers attractive financial and tax incentives and procedural ease for facilitating foreign direct investment.

The Government of Andhra Pradesh is encouraging new entrepreneurs by offering various following incentives.

  1. Exemption from duties and excise.
  2. 50% of new capital i.e. invested in last 5 years.
  3. Avial international funds and interest rates.
  4. Reimbursement of duty paid on fumance oil, procured from domestic companies to SEZ units as per the rate of drawback notified by the Directorate General of Foreign Trade.
  5. Commodity hedging by SEZ units are permitted.
  6. FU11 freedom for subcontracting abroad.
  7. Job work on behalf of domestic exporters for direct export is allowed.
  8. In house customs clearance.
  9. 100% F.D.I
  10. Benefits from A.R Industrial Policy 2010- 2015.
  11. Stamp duty waiver.
  12. Vat, Sales tax, Octroil etc. Exemptions.
  13. Electricity subsidy.
  14. Single window clearance system at state level.
  15. Lowest industrial power tariff amongst the industrially progressed states in the

Short Answer Questions

Question 1.
Define wholesaler?
Answer:
Wholesale trade means buying and selling the goods in relatively large quantities or in bulk and the traders who engaged in the wholesale trade are called wholesalers. A wholesaler buys goods in large quantities from manufacturers and sells them in small lots to retailers or industrial users. A wholesaler is the first intermediary and serves as a link between producers and retailers.

Question 2.
Who is retailer?
Answer:
Trader who is engaged in retail trade is called retailer. A retailer is the last link in the chain of distribution of goods. He is an intermediary between the wholesaler and consumers. He purchases goods from wholesaler and sells in very small quantities to ultimate consumers. His activities are generally confined to the locality in which his shop is located. Big departmental stores, super bazar, hawkers and other small shopkeepers are examples of retailers.

Question 3.
What is meant by internal trade?
Answer:
A trade which takes place within the country is known as internal or domestic trade.

Buying and selling of goods takes place within the boundaries of the same country. Trade goods are carried from one place to another place through railways and roadways. Payment for goods and services is made in the currency of the home country. There is wide chance of the goods available and it involves transaction between producers, middlemen and consumers.

Question 4.
What is import trade?
Answer:
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of the country. When purchases are made from another country, goods are said to be imported from that country to the buyer’s country.

For example :
Chaina has the most modem technology for producing electronic products cheaply and India is importing these products.

AP Inter 2nd Year Commerce Study Material Chapter 2 Domestic and International Trade

Question 5.
What is meant by SEZ?
Answer:
Special Economic Zones (SEZ) is a geographical region that has the economic laws that are more liberal than country’s economic laws. The main aim of SEZ is to attract large foreign investments. It is intended to make SEZ as engines for economic growth. The SEZ Act was passed by the Parliament in May 2005. A SEZ is specifically described as duty free enclave deemed to be a foreign territory for the purpose of trade operations.

AP Inter 2nd Year Commerce Study Material Chapter 1 Entrepreneurship

Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 1st Lesson Entrepreneurship Textbook Questions and Answers.

AP Inter 2nd Year Commerce Study Material 1st Lesson Entrepreneurship

Essay Answer Questions

Question 1.
Explain the characteristics of entrepreneurs.
Answer:
The following are some of the important characteristics that every successful entrepreneur must possess.
1) Innovation:
Innovation is an important characteristic of an entrepreneur in modem business. The entrepreneur makes arrangements for introducing innovations that help in increasing production on the one hand and reducing costs on the other.

2) Risk-taking :
Risk-taking is another feature of an entrepreneur. He has to pay for all the other factors of production in advance. There are chances that he may be rewarded with a handsome profit or he may suffer a heavy loss. Therefore, risk bearing is the final responsibility of an entrepreneur.

3) Decision making :
An entrepreneur has to take decisions with regard to the establishment of a business its management and coordination of various resources. Every activity of the business requires decision-making. The entrepreneur has to take decisions every day which have an impact on the working of the enterprise.

4) Leadership :
An entrepreneur has to be a leader because he is such a person who organise direct, control the functions of the organisation. His personality will influence the working of his subordinates who can praise and appreciate him. An entrepreneur in his role as a leader, not only guide and counsels his persons but he motivates them to achieve goals quickly and efficiently.

5) Organisation of production :
Art entrepreneur procures various factors of production like land, labour, capital, raw materials etc. For manufacturing a product or brining out a service. He assess the viability of different production process and selects one which is most suitable.

6) Planning :
An entrepreneur is the person who plans each and everything in the business. A planning is a process which involves thinking before doing an entrepreneur decides the following : What to do? When to do? How to do? Who do a particular task?

7) Work hard :
Willingness to work hard distinguishes a successful entrepreneur from an unsuccessful one. Most of the successful entrepreneurs work hard endlessly, especially in the beginning and the same becomes their whole life.

8) Desire for high achievement and highly optimistic :
The entrepreneurs should have strong desire to achieve high goals in business. The successful entrepreneurs are not disturbed by present problems and are optimistic for future that situation will become favourable to business in future.

9) Independence :
The successful entrepreneurs do not like to be guided by others and like to be independent in the matters of their business.

10) Foresight:
The entrepreneurs should have a good foresight i.e., they visualize the likely changes take place in market, consumer attitude, technological developments etc., and take timely action accordingly.

Question 2.
Explain the functions of entrepreneurs. [A.P. Mar. 17]
Answer:
An entrepreneur performs all the functions necessary right from the generation of an idea and upto setting up an enterprise. The following are the functions of entrepreneur.

1) Formation of new producing organisation :
The function of an entrepreneur is to rationally combine the factors of production into a new producing organisation.

2) Decision making :
An entrepreneur as a decision maker takes various decisions regarding ascertaining the objective of the enterprise, sources of finance, product mix, pricing policies, promotion strategies, appropriate technology or new equipment.

3) Innovation:
Innovation is the main function of an entrepreneur. Innovation means doing new things or doing of things that are already being done in a new way. An entrepreneur puts science and technology to economic use. Innovative entrepreneurs are essential for rapid industrialisation and economic development.

4) Management:
An entrepreneur performs managerial functions such formulation of production plans, providing raw materials, physical facilities, production facilities, organizing and managing sales.

5) Risk bearing :
An entrepreneur undertakes the responsibility for loss that may arise due to unforeseen contingencies in future. He guarantees interest to creditors, wages to labour and rent to land holders.

6) Supervision, control and direction :
J.S.Mill mentions superintendence, control and direction as entrepreneurial functions. Supervision involves assembling the means, turnout maximum output at minimum cost and supervise the work. The entrepreneur has to regulate and control the flow of goods, the use of finance and machinery. He also has to control and direct the activities of the employees.

7) Planning:
Planning is the first step in the direction of setting up of an enterprise. The entrepreneur prepares a scheme of the proposed project in a formal systematic approach. The authorities, if satisfied fully with the requirements, grants legal sanction of the project.

According to Kilby, an entrepreneur performs the following major four functions.

  1. Exchange functions
  2. Administrative functions
  3. Management and control functions
  4. Technological functions

AP Inter 2nd Year Commerce Study Material Chapter 1 Entrepreneurship

Question 3.
Explain the types of entrepreneurs.
Answer:
Entrepreneurs can be found among various sections of the society viz., farmers, artisoris, workers etc. In a study of American Agriculture, Danhof has classified entrepreneurs into four categories. They are :
a) Innovating entrepreneurs
b) Adoptive or initiative entrepreneurs
c) Fabian entrepreneurs and
d) Drone entrepreneurs.

a) Innovating entrepreneurs :
Schumpeter’s entrepreneur was of this type. He introduces new products, new methods of production and open new markets. The entrepreneurs are aggressive in nature. Innovating entrepreneurs experiments and converts attractive possibilities into practice.

b) Adaptive or initiative entrepreneur:
Entrepreneur of this type are found in under-developed countries. This type of entrepreneurs instead of innovating new things, they just adopt the successful innovations innovated by others. However, some of the innovations made by others, may not suit the needs of underdeveloped countries. In such cases, the initiative innovators may make some changes in the innovations made by innovative entrepreneur so as to suit their requirements.

c) Fabian entrepreneur:
These entrepreneurs neither fall in innovative entrepreneur category nor in adoptive entrepreneur category. These are very cautions people. These entrepreneurs are regid and fundamental in approach. They follow the foot steps of their successors. They are shy to introduce new methods and ideas. Fabian entrepreneurs are no risk takers.

d) Drone entrepreneur :
Drone entrepreneurs are lazy in adopting new methods, but Drone entrepreneurs are more rigid than Fabian entrepreneurs. They resist changes. They are laggards. They may close down their business but they dont adopt for changes. Drone entrepreneurs refuse to adopt changes.

Question 4.
Explain the relation between entrepreneur and entrepreneurship. [A.P. Mar. 17]
Answer:
Entrepreneur is the person, entrepreneurship is the process and enterprise is the creation of the person and output of the process. Though the term entrepreneur is often used interchangeably with entrepreneurship, yet they are conceptually different. The relationship between the two is just like the two sides of the same coin.

The following points highlights the relationship between entrepreneur and entre-preneurship.

  1. Entrepreneur is a person : Entrepreneurship is a process.
  2. Entrepreneur is organiser : Entrepreneurship is the organisation.
  3. Entrepreneur is innovator : Entrepreneurship is innovation.
  4. Entrepreneur is risk bearer : Entrepreneurship is risk bearing.
  5. Entrepreneur is motivator : Entrepreneurship is motivation.
  6. Entrepreneur is creator : Entrepreneurship is the creation.
  7. Entrepreneur is visualiser : Entrepreneurship is vision.
  8. Entrepreneur is the leader : Entrepreneurship is leadership.
  9. Entrepreneur is imitator : Entrepreneurship is imitation.

Question 5.
Explain the role of entrepreneurship in economic development.
Answer:
The role of entrepreneurship in economic development varies from economy to economy depending upon its material resources, industrial climate and the responsiveness of the political system to the entrepreneurial functions. India is a developing economy aims to decentralise industries to mitigate the regional imbalances in levels of economic development.

Small-scale entrepreneurship in such industrial structure plays an important role to achieve balanced regional development. It is clearly believed that small scale industries provide immediate large scale employment, ensure a more equitable distribution of national income and facilitate an effective resource mobilisation of capital and skills which might otherwise remain unutilised.

Role of entrepreneurship in economic development:

  1. Entrepreneurship promotes capital formation by mobilising the idle savings of the public.
  2. It provides large scale employment and helps to reduce unemployment problem.
  3. Entrepreneurship promotes balanced regional development.
  4. It helps to reduce concentration of economic power.
  5. Entrepreneurship stimulates the equitable distribution of wealth, income and even political power in the interest of the country.
  6. Entrepreneurship encourages effective resource mobilisation of capital and skill which might otherwise remain unutilised and idle.
  7. It also induces backward and forward linkages which stimulate the process of economic development.
  8. Entrepreneurship also promote country’s export trade. It is an important ingradient to economic development.

Question 6.
Explain the opportunities for entrepreneurship in Andhra Pradesh.
Answer:
Andhra Pradesh, with its rich and abundant natural resources base as well as diverse agricultural and forest wealth provides tremendous opportunities for entrepreneurs in the state. The various opportunities for entrepreneurs in A.P. are as follows.

1) Information technology:
Government of A.P. has declared Information Technology (IT) industry as an essential service under the Essential Services Maintenance Act and the industry have been exempted from power cuts. It aims to transform the state into a knowledge society and make available the benefits of IT to all citizens, especially those in rural areas. People with innovative ideas would be encouraged to set up their own IT and IT enabled services units in the state.

2) Automobiles :
A broad base of automotive equipment manufacturers and a large pool of highly trained, skilled and disciplined man power make Andhra Pradesh the desired location for automobile industries. There are more than 100 automotive component manufacturing companies in the state. The industry is highly potential and there is a plenty of demand for automobile components, hence the entrepreneurs in the state may grab the opportunities.

3) Drugs and pharmaceuticals:
The state offers excellent opportunities for the growth of pharmaceutical industry due to availability trained and skilled manpower, good infrastructure as well as research and development facilities. Hyderabad accounts for around one-third of Indias total bulk production, is considered as the drug capital of the country. It provides plenty of opportunities for entrepreneurs as govt, taken a decision for the establishment of pharma city near Visakhapatnam.

4) Mines and Minerals:
Andhra Pradesh is the second largest store house of minerals resources in India. It includes vast deposits of coal, limestone, slabs, oil and natural gas,, manganese, iron ore etc. A wide range of these minerals use in fertilisers, ceramics, abrasives, glass, foundry, oil well drilling filters and pigments. Besides the state has immense potential of untapped and under tapped minerals and provides opportunities for entrepreneurs.

5) Agriculture and Forestry :
Agriculture is the main occupation for the people in A.R Rice is the major crop in the state. Other important crops are lower bajra, pulses, cluster etc. Entrepreneurs may have many opportunities to establish units based on these products. Entrepreneurs make use of recently announced industrial policy of A.R and explore the possibilities of establishing agro based units.

6) Tourism:
A.P is truly a land of beauty and it represents Indian culture and heritage. Beaches, wild life and forests, forts, historical monuments, national parks, holy temples with architectural beauty. It provide many opportunities to entrepreneurs to start ventures related to tourism services.

7) Fisheries:
The state has stretched over the coastal area of Bay of Bengal. A vast coastal area is the main reason for sea food. The aqua culture around the coastal proved to be a rich source for sea food, which occupies a major share in exports from the state. The entrepreneurs may examine the various opportunities and explore the possibilities of setting units based on the sea foods and export the same.

Short Answer Questions

Question 1.
Explain the meaning of entrepreneur.
Answer:
The word entrepreneur is derived from the French verb ‘entrepredre’, which means to undertake. An entrepreneur may be referred to such a single person or group of persons who promote a new enterprise by collecting various factors of production and bearing the risks arising out of such venture.

AP Inter 2nd Year Commerce Study Material Chapter 1 Entrepreneurship

Question 2.
Write one definition of entrepreneur.
Answer:
According to Peter F.Drucker an entrepreneur is one who “searches for change, responds to it and exploits opportunities and the innovation is the specified tool of an entrepreneur”.

Question 3.
Write one definition of entrepreneurship.
Answer:
In a conference on entrepreneurship held in United States, the term entrepreneurship was defined as “Entrepreneurship is an attempt to create value through recognition of business opportunity, the management of risk-taking appropriate to the opportunity and through the-communication and management skills to mobilise human, financial and material resources necessary to bring a project to function”.

Question 4.
Explain the any one characteristic of an entrepreneur. [A.P. Mar. 17]
Answer:
The following are the some of the important characteristics that every successful entrepreneur must possess.

1) Innovation:
Innovation is an important characteristic of an entrepreneur in modem business. The entrepreneur makes arrangements for introducing innovations which help in increasing production on the one hand and reducing costs on the other.

2) Risk-taking :
Risk taking is another feature of an entrepreneur. He has to pay to all the other factors of production in advance. There are chances that he may be rewarded with a handsome profit or he may suffer a heavy loss. Therefore, the risk bearing is the final responsibility of an entrepreneur.

Question 5.
Explain the any one function of an entrepreneur.
Answer:
An entrepreneur performs all the functions necessary right from the generation of an idea and upto setting up an enterprise. The following are the functions of entrepreneur.

Decision making :
An entrepreneur as a decision maker takes various decisions regarding the following :

  1. Ascertaining the objective of the enterprise
  2. Sources of finance
  3. Product mix
  4. Pricing policies
  5. Promotion strategies
  6. Appropriate technology or new equipments etc.

AP Inter 2nd Year Commerce Study Material Chapter 1 Entrepreneurship

Question 6.
Write the types of entrepreneurs. [A.P. Mar. 17]
Answer:
Entrepreneurs are classified into four types. They are :

  1. Innovating entrepreneurs.
  2. Initiative entrepreneurs.
  3. Fabian entrepreneurs.
  4. Drone entrepreneurs.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 13th Lesson Recent Developments in Andhra Pradesh and India Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 13th Lesson Recent Developments in Andhra Pradesh and India

Long Answer Questions

Question 1.
Describe the Formation of Andhra Pradesh State.
Answer:
The Desire of Formation of Andhra Pradesh is not a new one. Sri C.R. Reddy expressed his feeling of formation of Andhra Pradesh by virtue of their Telugu speaking on the eve of his guest lecture of convocation of Osmania University in 1938 later Proi. Mamidipudi Venkata Rangaiah expressed this view in an article.

1) Role of Communist Party:
The Credit of the development of concept of Visalandhra has goes to communists of Andhra. They got thumping majority in 1952 general elections both in Andhra and Telangana regions the formation of Visalandhra was also included in their election manifesto to they used to promote the feeling among the people by establishment of Andhra State in 1953, October 1st the politics has gone through the regions of Andhra and Telangana towards the formation of Visalandhra.

2) First Visalandhra Mahasabha :
In 1949, November 26 the first Visalandhra mahasabha was held at Vijayawada under the leadership of Sri Ayyadevara Kaleswara Rao.

3) Second Visalandhra Mahasabha:
In 1954, June 13 and 14 the second Visalandhra Mahasabha was held at Hyderabad led by Sri. Sri.

4) Fazal Ali Commission:
In the wake of formation of separate Andhra the Keralites, Kamatakas used to agitate for separate states. The Marathas’had also joined with them N.V Gadgil advised Nehruji, it is inevitable to the formation of linguistic state, unless and otherwise the congress party eould not survive in South India. By following this advice on 22nd December, 1953 the Indian government has announced the formation of State Reorganization Commission (SRC) under the chairmanship of Fazal Ali, Besides him H.N.,Kunzru and K.M. Phanikkar were other members. The committee had submitted its report to the union government on 30th September, 1955.

The contmittee in its report observed and examined merits and demerits by forming Visalandhra and it also studied deeply the formation of separate, Telangana and its positive arguments by mentioning positive and Negative views the committee advised it is better to make an agreement like Sri Bagh which was held in the case of formation of separate Andhra State which does not create any obstructions for development of Telangana and will not create any harm to job opportunities and to protect the interests of Telangana people then the Visalandhra can be formed in addition to the above the Telangana Legislators has to approve the resolution with 2/3 majority who were elected in 1952.

5. Gentlemen’s Agreement :
In order to clear the doubts among the people of Telangana that the Visalandhra may obstruct their interests, the gentlemen’s Agreement look place on 20th February, 1956 at Delhi basing on the recommendations of Fazal Ali Commission. It was attended by Sri Bezawada Gopala Reddy the then Chief Minister of Andhra State, and his Colleagues Sarvasri Neelam Sanjeeva Reddy, Gouthu Lanchanna, Alluri Satyanarayana Raju from Andhra Region.

Sri Burgula Ramakrishna Rao the then Chief Minister of Hyderabad state and his colleagues Savasri K.V. Ranga Reddy, Marri Chenna Reddy, J.V. Narsinga Rao from Telangana Region, They had signed on the Agreement which contains the follows aspects. ‘

  1. The administrative expenditure of the state shall be contributed in proportion of both Andhra and Telangana. The surplus of Telangana should be confined for its development up to five years and it may be extended for another five years at the request of Telangana legislators.
  2. The educational opportunities which are in Telangana shall be provided for them only more development is to be extended. Technical education and seats in Universities shall be allocated up to 1/3 for Telangana students.
  3. The Vacancies arise in Future shall be allocated to both Regions in proportion to their population.
  4. 12 years of Residency is must for Andhra people to get job in Telangana.
  5. Regional Development council shall be constituted for over all development of Telangana.
  6. In Council of ministers there shall be 60% from Andhra and 40% from Telangana respectively there must be one Muslim from Telangana part.
  7. If the chief minister is belongs to Andhra Region, the deputy chief minister must be from Telangana Region and vise-versa. At least 2 port folios must be given to Telangana out of Home, Finance, Revenue, Planning, Development, Commerce and Industry.

Decks had been cleared for formation of Visalandhra in the wake of gentle men’s agreement. The state Reorganization Bill was introduced in both houses of parliament on 16th March, 1956.

On 5th April, 1956 the bill was approved by the Andhra legislative assembly by the following amendments.

  1. The Name of the state should be Andhra Pradesh.
  2. The capital and the high court must be set up at Hyderabad.
  3. The general elections shall be held for the entire Andhra Pradesh in 1962.
  4. The legislative council with 72 members should be setup.

→ On 13 April, 1956 the bill was approved by the Hyderabad state legislative assembly.
→ On 25th August, 1956 the bill was approved by Rajya Sabha and later by Lok Sabha.
→ On 31st August, the president of India gave his assent to the bill.
→ On 1st November, 1956 on the eve of Diwali the first linguistic state of Andhra Pardesh was formed.
→ C.M. Trivedi was the first governor.
→ Neelam Sanjeev Reddy was the first chief minister.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Question 2.
Examine the causes that led to Bifurcation of Andhra Pradesh.
Answer:
The movement for separate Telangana state was revived with the creation of Chattisgarh, Jharkhand and Uttarakhand in 2000. This time, the political movement was spear headed by the Telangana Rashtra Samithi (TRS). Andhra Pradesh was the first state to be formed on the linguistic basis. But even after co-existence of 57 long years, the sense of same language has failed to keep the people of the state united.

The rationale behind the agitation for Telangana is not merely .’Economic Backwardness’ but the culmination of grievances such as intentional neglect of the region in water sharing, funds allocation, employment opportunities and even cultural discrimination. These claims may or may not pass the test of rationality. But, once a section of people start exhibiting their serious apprehensions and inconveniences to, live with their counterparts in other regions, it is difficult to sustain unity.

Causes that led to Bi-furcation :

  1. The congress party entered into an alliance with TRS in 2004 elections.
  2. The congress led UPA government promised that the decision on separate Telangana state will be taken at an appropriate time by getting consensus of all the political parties through the presidential address to the parliament during its first session on the eve of formation of 14th Lok Sabha. ,
  3. The U.P.A government constituted a cabinet sub-committee headed by Sri Pranab Mukhaijee to have wider consultations with all the political parties regarding credtion of separate Telangana. Sri Raghuvams Prasad Singh (RJD) and Sri Dayanidhi Maran (DMK) were the other two members.
  4. The Ruling party showed little interest in creating Telangana state. By the year 2009 when general elections are due, the congress party had gone back on its promise.
  5. During 2009 elections the Telugu Desam, CPI and CPM parties entered into electoral alliance with TRS by forming the grand Alliance that they are in favour of separate State of Telangana.
  6. In the Wake of Hunger Strike of Sri K. Chandra Sekhar Rao, the TRS supreme and with the intensification of agitation for separate Telangana. Home Minister Chidambaram said in December 2009, that is serious about Telangana.
  7. The government of India constituted a committee for consultations on the situation in Andhra Pradesh on 3rd February 2010. It was headed by Justice B.N. Sri Krishna. It examined two main issues namely, (i) the demand for separate statehood Telangana (ii) keeping the state united in the present form, Andhra Pradesh. The Committee submitted its report on 30 December, 2010 to the Ministry of Home Affairs.

The Sri Krishna Committee solicited suggestions and views from political parties, social organizations and other stakeholders. The Committee’s report contained six options. They are mentioned as follows.

  1. Maintaining the status quo.
  2. Bifurcation of the state into Seemandhra and Telangana. Each state is to develop its own capital. Hyderabad is to be converted into a Union Territory.
  3. Dividing A.P. into two states – one of Rayala Telangana with Hyderabad as its Capital and the second one of the coastal Andhra Pradesh.
  4. Dividing Andhra Pradesh into Seemandhra and Telangana with enlarged Hyderabad metropolis’as a separate Union Territory. It will be linked geographically to Guntur district in coastal Andhra via Nalgonda district in the south east and via Mahaboob Nagar district in the south to Kumool district in Rayalaseema.
  5. Bifurcation of the State into Telangana and Seemandhra as per existing boundaries with Hyderabad as capital of Telangana and Seemandhra to have new capital.
  6. Keeping the State united and providing for creation of statutorily empowered Telangana Regional Council for socio-economic development and political development of Telangana region.
  7. Telangana leaders rejected the recommendations of the Committee and insisted on the formation of Telangana state with Hyderabad as its capital, Protests in Telangana continued in the form of strikes, hunger strikes, suicides, giving petitions and roses to public officials and boycotting the public events. .
  8. The UPA coordination committee agrees to the division of Andhra Pradesh on July 30, 2013.
  9. Andhra Pradesh Reorganization Bill, 2014 was passed by the Parliament in February 2014 amidst pandemonium in the Parliament. The Seemandhra region was in turmoil.
  10. The Bill was attested by the President on March 1st 2014.
  11. The New 29th state of Telangana was created on 2nd June, 2014 with 119 members of Legislative Assembly and 40 members of Legislative Council, 17 members in the Lok Sabha and 7 members in Rajya Sabha.
  12. The Residuary state of Andhra Pradesh would-have 175 MLA’s, 58 MLC’s, 25 MP’s in Lok Sabha and 11 MP’s in Rajya Sabha. There would be a common High Court and the expenditure would be apportioned between the two states. Hyderabad will remain the common capital under the Governor’s supervision for not more than ten years. Later in May 2015 a nfew capital city for Andhra Pradesh was announced with ‘Aitiaravati’. The capital city would stretch to the parts of Guntur and Krishna districts of the new state.

Question 3.
Define Human Right? Describe the structure of National Human Rights Commission of India.
Answer:
Introduction :
People are human so they are entitled to human rights. Human Rights determine standards to states and governments to protect the vulnerable Individuals and groups against oppression.

Definition:

  1. Section 2(d) of the protection of Human Rights Act, 1993 defines Human Rights as “Rights relating to life, Liberty, Equality and dignity of the Individual, guaranteed by the constitution or embodied in the International covenants and enforceable by the courts in India”.
  2. According to UNO Human Rights are freedom to all irrespective of place, sex, religion, language etc.

As per the U.N. Declaration of human rights, the government of India too steps for its implementation. In 1993, it appointed National Human Rights Commission and also passed Human Rights Act in 1998.

Composition:
National human rights commission is a multi-member body. It consists of four members, headed by the former chief justice of the Supreme Court. There will be a Supreme Court judge (or former Judge). A high court judge (or former high court chief justice) and two other members who actively participated in the human rights activities. The chairman of scheduled castes, scheduled tribes, minorities commissions, chairperson of national women commission act as the ex-officio members of the commission. There will be a General Secretary having the status of Secretary general in the commission.

Appointment:
The chairman as well as members of the commission are appointed by the President of India.

Tenure :
The Chairman and members shall hold their office for five years or until the super annuation age of 70, years which ever is earlier.

Functions :
The following are some of the important functions of national human rights commission.

  1. The national human rights commission makes enquiry into the cases of violation of human rights by the public authorities.
  2. It enquires into the cases of human rights violation as permitted by the judicial organizations.
  3. It review the various legislative measures in regard to the implementation of human rights.
  4. It makes suggestions for averting terrorist operations affecting human rights.
  5. It makes research into the matter of human rights.
  6. It takes steps for creating awareness of human rights among the people.
  7. It gives encouragement to voluntary organizations in the mutters of preserving human rights.

Question 4.
Explain about the Right to Information Act.
Answer:
The Right to Information act 2005 is an act of the parliament “to provide a setting out the practical regime of right to information of citizens”. The act applies to all states and Union territories of India except to Jammu and Kashmir. According to the act all the citizens have the right to seek information from any quarter which under the control of the public authority. The idea’is tq give transparency, accountability and disclosure in Government administration.

The act specifies that citizens have a right to –

  • Request any information.
  • Obtain copies of documents.
  • Inspect document works and records,
  • Takes certified samples of materials of work.

Process :
Under the act all authorities covered must appoint their information officer (PIO). Any person may submit request to the PIO for information in writing. If the request has been made to the PIO the reply is to be given within thirty days of receipt.

If information is not provided within this period it is treated deemed refusal. This is a fee of Rs. 10 filling the request Rs. 2 for page of information Rs. 5 each hour of after the first hour. Persons Below the Poverty Line (BPL) are exempted from the fee payment. However he or she should submit a proof in support of his or her claim for belonging to the section below poverty line.

Exclusions :
IB, RAW, CBI, Directorate of revenue Intelligency, Central Economic Intelligency, Bureau, Narcotics Control Bureau, BFS, CRPF, ITBP, Dadra and Nagar Haveli and Special branch, Laksha Dweep Police for that information relating to all allegation of human right violation could be given but only with the approval of Central (or) state information commission.

The following exempt from disclosure section (8) Eight:
→ Information disclosure of which would prejudicially effect the sovereignty and integrity of India.
→ Information which has been expressly forbidden to be published by any court of law or tribunal or disclosure of which may constitute contempt of court. Information the disclosure of which would cause the breach of privilege of parliament (or) state legislature.
→ Information whjch would impact the process of investigation or apprehension of prosecution of offenders.
→ The administrator appointed under Article 239 of the constitution.

The central information commission :
The central information commission consisted of one chief commissioner, number of CIC not exceeding ten. All the commissioners shall be appointed by the president of India. Head quarter is in Delhi.

The state information commission :
The state information commission consisted of one chief commissioner and not more than ten. Information commissioners appointed by the state.

The central information commission or state information commission as the case may be shall while inquiring into any matter have the same powers as or vested in a civil court.

Short Answer Questions

Question 1.
Describe the formation of Andhra State. [Mar. 18, 16]
Answer:
During Vandhemataram movement, the senior congressmen of Andhra Region, Sri Bhoga Raju Pattabhi Seetha Ramaiah, Mutnuri Krishna Rao, Konda Venkatappiah and Tanguturi Prakasam Met at Machilipatnam and discussed about formation of an Integrated Andhra state by uniting the regions of Andhra, Rayalaseema and Telangana. In the Madras State, There are 58% of Telugu areas and 40% of Telugu people were remained backward.

This created the feeling of separate state of Andhra among them strongly. In 1912 the joint session of Godavari, Krishna and Guntur was held at Nidadavole under the chairmanship of Sri Vemavarapu Ramadas and passed a Resolution for formation of separate Andhra State.

1) The First Andhra Mahasabha, Bapatla 1913:
In 1913 at Bapatla of Guntur district, the First Andhra Mahasabha was held which was presided by Sri B.N.Sarma. It was attended by 800 delegates and 2000 Audience.

2) The Second Andhra-Mahasabha, Vijayawada 1914 :
On 11th April of 1914 the second Andhra Mahasabha was held at Vijayawada which was presided by Sri Nyapathi Subba Rao, Sri Ayyadevara Kaleswara Rao of Vijayawada was its Convener. It was attended by 1600 delegates.

3) The Third Andhra Mahasabha, Visakhapatnam 1915 :
In 1915, May the third Andhra Mahasabha was held at Visakhapatnam under the chairmanship of Sri Panagallu Raja Rama Rayanim. It pass two resolutions.

  1. Formation of separate Andhra State, Inevitable
  2. Teaching in mother tongue up to secondary school level

The Nagpur congress session in 1920 has declared officially by accepting the doctrine of linguistic states. It has Recoginsed 21 languages on that basis the separate Pradesh congress was launched. Article 52 of Indian council Act of 1919 which was made on the Report of Montague – Chelmsford stated that the government may accept the proposal of separate’Andhra State if such resolution is passed by majority in the state legislature.

In 1926, the Andhra university was established with a view to provide higher education to Andhra people due to sincere efforts by the then education minister, Sri Anem Parasuram Pathro.

In 1932, under the chairmanship of Sri Kadapa Kotireddy, The separate Andhra Mahasabha was held at Madras. Sri Kasinadhuni Nageswara Rao Pantulu and Prominent leaders of Andhra and Rayalaseema were participated.

4) Sri Bagh Pact :
On 14th November, 1937 at Madras in the residence of Sri Kasinadhuni Nageswara Rao panthulu namely “Sri Bagh” the meeting of leaders of Andhra and Rayalaseema was held.

Leaders from Andhra regio,n were Dr. Bhoga Raju, Pattabhi Seetha Ramaiah, Konda Venkatappaiah, Mahboob Alibegh, Desi Raju Hanumantha Rao, Mullapudi Pallam Raju and Kasinadhuni Nageswara Rao Pantulu.

Leaders from Rayalaseema were Sri Kadapa Kotireddy, Seetha Rami Reddy, Subbu Rami Reddy, T.N.Rama Krishna Reddy, Pappuri Ramachari and Varadachari.

On 30th march, 1938 Konda Venkatappaiah introduced a Resolution in Madras Assembly and it was seconded by Kadapa Koti Reddy. The then chief minister addressed the house on resolution. Later it was passed by the house unanimously.

In 1938 The Andhra Mahasabha was held which was presided by Dr. Sarvepalli Radha Krishna and discussed about capital.

The First Andhra Mahasabha, Bapatla 1913
The Second Andhra Mahasabha, Vijayawada 1914
The Third Andhra Mahasabha, Visakhapatnam, 1915
Sri Bagh Pact
Events that led to the formation of Andhra State.
J.VR Report
Hunger Strike of Swami Seetharam
Hunger Strike fast un to death of Potti Sreeramulu
Waanchu Committee 1953

5) J.VR Report:
The Jaipur congress session appointed three men committee which consists of Jawaharlal Nehru, Vallabhaipatel and Pattabhi Seetha Ramaiah, Popularly Known as JVP Committee to re consider the Separate state demand. The committee submitted report in 1949 April Stating that the separate state can be formed upon a condition that the Andhra people has to set a side the desire of Madras city.

6) Hunger Strike of Swami Seetha Ram :
With a view to get easy and speedy formation of separate Andhra State by over coming of all hurdles Sri Swami Seetha Ram (Sri Gollapudi Seetha Ram Sasthri) Started hunger strike on 15th August, 1952 at Guntur Town hall it was continued for 36 days.

7) Hunger Strike Fast un to death of Potti Sreeramulu:
For the Separate state hood of Andhra Potti Sreeramulu has started fast un to death on 19th October, 1952 at the Residence of Maharshi Bulusu Sambamurthy and it was later named as “Yagnasala”.

Under these circumstances on 9th December 1952 the union government announced that the government would consider the issue of Separate Andhra state if the Andhra people will agree for separate Andhra apart from Madras By that time Fast un to death of Potti Sreeramulu has gone to 52nd day on 15th December 1952 at 11.39 p.m. Potti Sreeramulu Possess away.

8) Waanchu Committee 1953 :
In Jan, 1953 the Government of India has appointed Justice Waanchu, the chief Justice of Rajasthan High Court to study the formation of separate Andhra state soon after the receipt of Waanchu report prime minister Nehru announced that the Andhra state will be formed on 18th October, 1953 and furtherly he stated it is the responsibility of Andhra Legislators to decide the capital, which has to be set up in Andhra region except Madras.

Formation of Andhra State:
The government of India appointed C.M.Trivedi as special officer to look into the New state formation activities. The separate state of Andhra was officially formed with “Kumool’ as its capital on 18th October, 1953 as announced earlier.

New Andhra State Consists of 11 Andhra districts Viz, Srikakulam, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Nellore, Chittoor, Kadapa, Anantapur and Kurnool.

High court was set up at Guntur on 4th July, 1954 Justice Koka Subba Rao was the first chief justice C.M.Trivedi was the First Governor of Andhra state.

“Tanguturi Prakasam Panthulu” was the first thief minister. Prime Minister Jawaharlala Nehru launched the Andhra State on 1st October, 1953. The people through out the state had Celebrated it as great event and Festival.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Question 2.
Examine the Factors that led to Jai Andhra Movement
Answer:
Jai Andhra Movement (1972) was a sequal to the Telangana agitation (1969) which demanded only “Mulkis” should be appointed to the posts in Telangana including Hyderabad city. The ‘Mulki’ issue had a long history behind it. As early as in 1969, the Nizam State of Hyderabad issued a farman laying down that only ‘Mulkis’ are eligible for public appointments in the state. ‘Mulki’ was defined as one who was bom in the State of Hyderabad or resided there continuously for fifteen years and had given an affidavit that he or she has abandoned the idea of returning to his or her native place.

Even after the formation of Andhra Pradesh, the Mulki rules continued to be in force in the Telangana region. As these rules stood in the way of the people of Andhra region to compete for the posts, their validity was challenged in the High Court. The High Court struck down Mulki rules. On an appeal by the state government, the Supreme Court declared that the Mulki rules were valid and were in force. The judgement created a great political crisis in the state. The people of Andhra region felt that they were reduced to the status of second class citizens in their own state capital. They have an agitation demanding separation of Andhra region from Andhra Pradesh.

As the agitation continued, President Rule was imposed in the state (1973) and a political settlement was arrived at with the initiative from the Central Government. A ‘Six Point formula’ was agreed upon by the leaders of two regions to prevent any recurrence of such agitations in future. It included, among others the following two points.

  1. The abolition of Mulki rules and the Telangana Regional Committee.
  2. The establishment of a Central University at Hyderabad to augment educational facilities.

Question 3.
What are the Initiative under taken by NHRC?
Answer:
The National Human Rights Commission (NHRC) is a statutory body. It was established on October 12th, 1993. The NHRC is the guardian of Human Rights in the country, i.e., the Rights relating to life, liberty, equality and dignity of the Individuals guaranteed by the constitution.

Initiatives under taken by NHRC :

  1. The enquire into any violation of human rights.
  2. To intervene in any proceeding involving allegation of violation of human rights pending before a court.
  3. To visit jails and detention places to study the living conditions of inmates and make recommendations thereon.
  4. To review the constitutional and other legal safeguards for the protection of human rights and recommended measures for their effective implementation.
  5. To review the factors including acts of terrorism that inhibits the enjoyment of human rights and recommend remedial measures.
  6. To study treatises and other international instruments on human rights and make recommendations for their effective implementation.
  7. To undertake and promote research in the field of human rights.
  8. To spread human rights literature among the people and promote awareness of the safeguards available for the protection of human rights.
  9. To encourage the efforts of NGO’s working in the field of human rights.
  10. To recommend to the concerned authorities to make payment of compensation or damage to the victims. .

Question 4.
Why are Human Rights commissions necessary at the National and State Level?
Answer:
People are human so they are entitled to Human Rights. Human rights determine standards to states and governments to protect the vulnerable individuals and groups against oppression.

The Human Rights Protection Act, 1993 facilitates not only the creation of National Human Rights Commission but also a State Human Rights Commission at the state level. At present 23 states in India have constituted the State Human Rights Commission and Andhra Pradesh is one among them. The main objective of State Human Rights Commission is to inquire into violation of human rights only in respect of subjects mentioned in the State List and concurrent List of the 7th schedule of Constitution.

The National Human Rights Commission is the guardian of human Rights in the country i.e. the rights relating to life, liberty equality, and dignity of the individuals guaranteed by the constitution.

Whereas the State Human Rights Commission is the guardian of human rights in the state.

Question 5.
What are the Powers and Functions of Information Commissions? [Mar. 17]
Answer:
The following are the powers and functions of information commissions both at central and state levels.

1. The Central Information Commission/State Information Commission (CIC/SCIC) has a duty to receive complaints from any person-

  • Who was not been able to submit an information request because a PIO has not been appointed?
  • Who has been refused information that was requested?
  • Who has received no response to his/her information request within the specified timelimits;
  • Who thinks the fees charged are unreasonable;
  • Who thinks the information given is incomplete or false or misleading; and
  • Any other matter relating to obtaining information under this law.

2. Power to order inquiry if there are reasonable grounds.
3. The Central Information Commission / State Information Commissions (CIC/SCIC) will have powers of Civil Court such as –

  • Summoning and enforcing attendance of persons, compelling them to give oral or written evidence on oath and to produce documents or things.
  • Requiring the discovery and inspecition of documents.
  • Receiving evidence on affidavit.
  • Requisitioning public records or copies from any court or office.
  • Issuing summons for examination of witnesses or documents.
  • Any other matter which may be prescribed.

4. All records covered by this law (including those covered by exemptions) must be given to Central Information Commission / State Information Commission (C.IC / SCIC) during inquiry for examination.

5. Power to secure compliance of its decisions from the Public Authority includes

  • Providing access to information in a particular form.
  • Directing the public authority to appoint a PIO / APIO where none exists.
  • Publishing information or categories of information.
  • Making necessary changes to the practices relating to management, maintenance and destruction of records.
  • Enhancing training provision for officials on RTI.
  • Seeking an annual report from the public authority on compliance with this law.
  • Require it to compensate for any loss or other detriment suffered by the applicant.
  • Impose penalties under this law.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Question 6.
How is the Central Information Commission Constituted?
Answer:
The Central Information Commission (CIQ is constituted by the central government through a Gazette Notification.

Composition:
The Central Information Commission consists of one Chief Information Commissioner (CIC) and 10 other information Commissioners (IQ.

The Commission shall have its head quarters in Delhi. Other offices may be established in other parts of the country.

Appointment:
The Chief Information Commissioner and Information Commissioners will be appointed by the president of India, basing on the recommendations of the appointment committee headed by the Prime Minister.

Eligibility (or) Qualifications :
The persons who wish to be appointed as chief information commissioner and information commissioner must possess the following

Qualifications:

  • He must be person of eminence in public life with wide knowledge and experience in law, science and Technology, Social service management, Journalism, Mass media or Administration and governance.
  • He shall not be a member of either union or State Legislature
  • He shall not hold any other office of profit
  • He shall not be connected with any political party
  • He shall not carrying on any business or pursuing any profession.

Tenure :
The Chief Information Commissioner and Information Commissioners shall remain in office for a period of 5 years or till they attains the age of 65 years, which ever is earlier.

Salary :
The salary of CIC and i.e will be the same as that of the chief Election Commissioner and the Election Commissioner.

The Commission will exercise its powers without being subjected to directions by any other authority.

Question 7.
What is the Time Limit to get the Information?
Answer:
Any citizen of the country can seek information from any agency subject to certain limitations. The applicant should submit an application to the Public Information Officer (PIO) or Assistant PIO or who is the officer to give information to a person, who seeks information under this Act, accompanied by a nominal fee (usually Rs. 10/-) in the form of demand draft / banker cheque / Indian Postal Order / Court Fee stamp. Persons below the poverty line (BPL) are exempted from the fee payment. However he / she should submit a proof in support of his or her claim for belonging to the section below poverty line.

Information is to be provided by the PIO / asst. PIO within 30 days if life and liberty is involved, the information should be furnished within 48 hours where third party is involved it is to be provided within 40 days. If the information is not forthcoming within the stipulated period, first appeal can be made to the head of the department. After a reasonable gap, the second appeal can be made to Information Commission. For refusing to furnish information or for unreasonable delay or for providing false information, a penalty of Rs. 250/- a day can be levied up to a maximum of Rs. 25000/-, and the employee can be prosecuted.

Question 8.
What are the different options suggested by Sri Krishna Committee regarding the status of Andhra Pradesh State? [Mar- 18, 16]
Answer:
The government of India constituted a Committee for consultations on the situation in Andhra Pradesh on 3rd February, 2010 headed by Justice B.N.Sfi Krishna. It Examined two main issues namely :

  • The demand for separate statehood of Telangana.
  • Keeping the state united in the present form, Andhra Pradesh.

The Committee submitted its report on 30 December, 2010 to the union home ministry.
The committee’s report contained the following six options.

  1. Maintaining the status quo.
  2. Bifurcation of the state into Seemandhra and Telangana. Each state is to develop its own capital. Hyderabad is to be converted into a union Territory.
  3. Dividing A.P into two states – one of Rayala Telangana with Hyderabad as its capital and the second one of the coastal Andhra Pradesh.
  4. Dividing Andhra Pradesh into Seemandhra and Telangana with Hyderabad metropolis as a separate union Territory. It will be linked geographically to guntur district in coastal Andhra via Nalgonda district in the south East and via Mahaboob Nagar district in the South to Kumool district in Rayalaseema.
  5. Bifurcation of the state into Telangana and Seemandhra as per existing boundaries with Hyderabad as capital of Telangana and Seemandhra to have new capital.
  6. Keeping the state united and providing for creation of statutorily empowered Telangana Regional council for Socio-economic development and political development of Telangana Region.

Very Short Answer Questions

Question 1.
Gentlemen Agreement.
Answer:
In order to clear the doubts among the people, of Telangana that the Visalandhra may obstruct their interest, the gentlemen’s agreement took place on 20th February, 1956 at Delhi basing on the recommendations of Fazal Ali Commission. It was attended by Sri Bezawada Gopala Reddy the then Chief Minister of Andhra State, and his colleagues Sarvasi Neelam, Sanjeeva Reddy, Gouthu Lanchanna, Alluri Satyanarayana Raju from Andhra region.

Sri Burgula Ramakrishna Rao the then Chief Minister of Hyderabad State and his colleagues Savaging K.VRanga Reddy Marri Chenna Reddy, J.V.Narsinga Rao from Telangana Region. They had signed on the Agreement.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Question 2.
JVP Committee. [Mar. 18, 16]
Answer:
The Jaipur Congress session appointed three men committee which consist of Jawaharlal Nehru, Vallabhaipatel and Pattabhi Seetha Ramaiah popularly known as JVP Committee to reconsider the separate state demand. The committee submitted report in 1949 April stating that the separate state can be formed upon a condition that the Andhra people has to set a side the desire of Madras city.

Question 3.
Sri Bagh Pact.
Answer:
When the Andhra movement was in full swing the leaders of Rayalseema and Andhra met at the residence of Sri Kasinadhuni Nageswara Rao Panttulu on 14th November, 1937 popularly known as “Sree Bagh” the following leaders were participated in the meeting.

The meeting was held in a peaceful atmosphere. The following were the chief provisions of the pact.

  1. The centres of Andhra universities will be established one at waltair and another , at Rayalaseema.
  2. Giving importance to the development of Rayalaseema.
  3. Equal representation in the assembly for all the districts.
  4. To set up either new capital or high court in Rayalaseema.

Question 4.
Fazal Ali Commission.
Answer:
On 22nd December 1953 the Indian government has announced the formation of States Re-organization Commission (SRC) under the chairmanship of Fazal Ali, besides him H.N Kunzty and K.M Phanikkar were other members. The committee had submitted its report to the union government on 30th September 1955.

Question 5.
Criteria to be followed to be appointed as the chairperson of NHRC. [Mar. 17]
Answer:
The Chairperson of the NHRC is appointed by the president of India, on the recommendations of a six (6) member committee consisting of further a sitting judge of the supreme court or a sitting chief justice of High Court can be appointed only after consultation with the chief justice of India. This high level and politically balanced committee, together with the statuatory requirements relating to the qualifications of the chairperson.

Question 6.
Procedure to be considered for the appointment of chairperson and members of the state HRC.
Answer:
The Chairman and members of state HRC are appointed by. the concerned state governor on the recommendations of a committee consisting of the chief minister as its head, the speaker of the legislative assembly. In the case of a state having legislative council, the chairman of the council and the leader of the opposition in the council would also be the members of the Committee. The sitting judge of a High Court or a sitting District judge can be appointed as members only after consulation with the chief justice of the high court of the concerned state.

Question 7.
Human Rights Commission as a civil court.
Answer:
The Human Rights Commission has the powers of a civil court under the code of civil procedure, 1908 in respect of-summoning and enforcning the attendance of witness; discovery and production of any document; receiving evidence on affidavits, requisitioning any public record or copy there of from any court or office ; issuing commissions for the examination of witnesses or documents and request of public record as listed under section 13 of the Act.

It has authority to grant interim relief.
It can recommend payment of compensation for the damages.

Question 8.
The Jurisdiction of NHRC on Armed forces.
Answer:
The National Human Rights Commission (NHRC) has limited role, powers, and Jurisdiction with respect to the violation of Human Rights by the Armed force. It has no power to punish the violation of Human Rights. The Commission’s Role is an advisory, Recommendatory. The government considers the cases forwarded by it.

Question 9.
Public Information Officer (PIO).
Answer:
Under the Right to Information Act, 2005 all authorities covered must appoint their information officer. Such an officer is called as Public Information Officer (PIO). In All Administrative Units PIO’s are designated to furnish information to any citizen. Any person may submit request to the PIO for information in writing.

AP Inter 2nd Year Civics Study Material Chapter 13 Recent Developments in Andhra Pradesh and India

Question 10.
What is Information?
Answer:
Information is any material in any form. It includes Records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, log books, contracts, reports, papers, samples, models and data material in any electronic form.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 12th Lesson Political Parties Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 12th Lesson Political Parties

Long Answer Questions

Question 1.
Write an essay on the major National Political Parties in India.
Answer:
India is the largest democratic country in the world. Political parties in India are classified into two types.

  1. All India Parties (or) National Parties and
  2. Regional Parties

1. National Parties :
A political party which participates in four or more states in Lok Sabha elections and secures 6% of valid poled votes plus 4 Lok Sabha- seats can be recognized as National Party by the Election Commission of India.

At present there are 6 major National parties in India they are :

  1. Indian National Congress (INC)
  2. Bharatiya Janata Party (BJP)
  3. Communist Party of India (CPI)
  4. Communist Party of India Marxist (CPM)
  5. Bahujan Samaj Party (BSP) .
  6. Nationalist Congress Party (NCP)

1. Indian National Congress (INC):
Indian National Congress is the oldest All India Political Party in our country. It was founded by A.O. Hume, a British Civil Servant on 28th December 1885. Womesh Chandra Banerjee was its first President. This party has played a prominent role in the Indian National movement agairist the Britishers and ultimately secured Independence. After Independence, the Congress kept on dominating the Indian Political science. It became the ruling party at the union and in majority of the Indian States upto March 1977.

Again it came to power during 1980-89 and 1991-1996. Between 1996 – 2004 it acted as a recognised opposition party at the centre. In 2004, it came to power at the centre as a major partner in United Progressive Alliance (UPA). It was the first congress led coalition at the centre. Again in 2009 general elections the congress led UPA, Secured Majority and formed government at centre with its allies.

2. Bharatiya Janata Party (BJP):
Bharatiya Janata Party is one of the All India Parties in India. It was founded in February 1980. It has been playing an active role in Indian Politics. It remained in power at the centre during 1998 – 2004. The party has remained as a major partner in the NDA government at the centre in the 13th Lok Sabha. The party remained as the main opposition party in the 14th and 15m Lok Sabha. Now it is in power at the centre under the leadership Sri Narendra Modi’, the Prime Minister of BJP led NDA government since 2014, May.

3. Communist Party of India (CPI) :
Revolutionary leaders and great intellectuals like M.N. Roy were very much fascinated by the Great October Revolution in Russia. Accordingly, the Communist P«arty of India was established on Dec. 26, 1925. Its main aims were to unify the workers, to fight against the colonial rule, to bring about a revolution through class war etc.

The party’s support was more concentrated in Andhra Pradesh, Telangana, West Bengal, Bihar and Kerala.

4. Communist Party of India Marxist (CPI(M)) :
The split in the Communist Party of India in 1964 at the Vijayawada session led to the birth CPI Marxist party. The extremists headed by Puchallapalli Sundarayya, Nambudripad, Jyoti Basu etc., formed the Marxist party. In fact there is not much difference in the ideology between the two parties. They differ only in the means. Of the CPI has moderate and rightist nature CPI (M) has extremist and leftest in nature. If the CPI is pro-Russia and CPI (M) is pro-China. The CPI(M) has a strong presence in the states of Kerala, West Bengal and Tripura.

5. Bahujan Samaj Party (BSP) :
Bahujan Samaj Party is a National Party in our country. It was founded by Kanshi Ram in 1984. The Bahujan Samaj Party – a party dominated by Dalits is the outcome of the merger of employees federation and Dalit Shoshit Samaj Samiti. Kanshi Ram was the torch bearer of this party and Mayawati its beacon light. Mayawati has been described as the guiding angel of the BSP and in fact its savior. The Scheduled Castes, Tribes, educationally and socially downtrodden classes, employees and workers of these classes are the members of this party. After the death of its mentor Kanshi Ram, Mayawati has become the savior of the party in all respects. The BSP has considerable hold in the U.P.

6. Nationalist Congress Party (NCP) :
The Nationalist Congress Party (NCP) is a Centre to Centre left political party primarily based in the states of Maharastra, Kerala and Meghalaya. NCP was formed on 25 May 1999, by Sharad Pawar, P.A. Sangma and Tariq Anwar after they were expelled from the Indian National Congress (INC) on 20th May 1999, for disputing the right of Italian – bom Sonia Gandhi to lead the party. Sharad Pawar is its president. It was an ally of congress led UPA government during 2004 to 2014.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Question 2.
Explain the various types of Parties and estimate the role of Regional Parties in India.
Answer:
There are four types of Political Parties in the modem democratic states. They are:

  1. Reactionary Parties
  2. Conservative Parties
  3. Liberal Parties, and
  4. Radical Parties

The Reactionary Parties are those which are clinging to the old socio-economic and political institutions. The Conservatives believe in the status quo. The Liberal Parties aim at reforming the existing institutions. The Radical Parties aim at establishing a new order by overthrowing the existing institutions. Parties are also again classified on the basis of ideologies. The political scientists have placed the radical parties on the left, the liberal parties in the Centre and the reactionary and conservative parties on the right. In other words, they are described as the leftist parties’, ‘centrist parties’ and ‘rightist parties’.

After India became independent many political parties came into existence. Among these are some national parties, while some are regional parties D.M.K. in Tamil Nadu, Telugu Desam in A.P., National Conference in Jammu and Kashmir, Kranti Ranga in Karnataka and Assam Gana-Parishad in Assam have come into existence and have flourished as regional parties.

Reasons for the rise of regional parties :
Regional parties have been playing a vital role in the Indian politics. These regional parties have come into existence due to the causes mentioned here under.

Causes for the promotion of regional parties :

1) Regional parties based on regional issues :
India is a vast country with a great diversity. The Governments that came to power after Independence have not attempted to eliminate the economic imbalances and the differences between the different regions. Regional parties have come into existing basing on a problem in a certain region. In Tamil- Nadu at first D.K. and later D.M.K, have come into existence basing on the issues of preservation of Tamil culture, language issue and opposition to the imposition of Hindi.

In Punjab, Akali Dal was set up for the formation of a Punjabi Suba to safeguard the special status of Kashmir, National Conference was founded. Due to excessive intervention of the centre in Andhra Politics and the self-respect of Andhra Telugu Desam party come into existence and captured power in 1983. As regional parties have given prominence to the solution of the local issues, they have been reaping the sympathy of the people. So within a short time regional parties have flourished. ’

2) Failure of the Congress in solving regional issues :
The regional parties have flourished due to the failure of the Congress in solving regional issues. The Congress party has not taken regional disparities into account. It has not also tried to solve them in time and in a faetful way. D.M.K in Tamil Nadu became powerful on account of the language problem and the imposition of Hindi to which Tamilians are opposed. On account of the Centre’s frequent intervention in A.P Politics and disregard in selling up Central Government Industries Telugu Desam became powerful. In all the regions where regional parties have been formed, the failure of the Congress in solving regional issues is clearly seen.

3) Economic disparities between the states :
The Central Government has not implemented schemes to remove the economic disparties between the regions of the country and to ensure economic well being of all the regions. As economic disparties between the different states grew, the protests and agitations gave rise to the birth of the regional parties. With the vast economic resources at it’s disposal the centre did not attempt to remove the economic disparties. Economic inequalities are the main causes behind political agitations or movements. The frustration at the different provincial level gave rise to the rise and development of regional parties.

4) Individuality of regional leaders and their influence :
The individuality and influence of the regional leaders can be said to be one of the factors for the rise of regional parties. May parties have been founded only by leaders who have individuality and influence. These have been able to secure popularity.
Ex : Sri M.G. Ramachandran has founded the A.I.A.D.M.K. and Sri N.T. Rama Rao founded the Telugu Desam party. The strength behind these regional parties is derived from one individual. So, the party workers in a disciplined manner exhibit their allegiance to their leader; By this factor only regional parties have been thriving.

5) Electoral agreements or adjustments :
Where the regional parties are strong the national parties for their existence have been making electoral alliances with the regional parties. After the elections depending on the results these national parties have been joining the ministry or lending support from outside. So.these regional parties have been flourishing.

These factors have been responsible for the growth of regional parties in India.

Question 3.
Write an essay on “One Party Dominance” in India.
Answer:
Indian National Congress is the oldest All India Political Party in our country. It was founded by A.O. Hume, a British Civil Servant on 28th December 1885. Womesh Chandra Baneijee civil was its first president. This party has played a prominent role in the Indian National movement against the Britishers and ultimately secured independence. After independence, the Congress kept on dominating the Indian Political Science. It became the ruling party at the union and in majority of the Indian States. The Role of the Congress party was so great that India was often described as a single dominant Party System.,

Support Base :
During the freedom struggle, the Indian National Congress enjoyed the support of all sections of society, particularly the middle class and the new intellectual Elite. After independence it enjoyed a remarkable popular support among the masses. The congress has always tired to identify itself with the poor of India. Garibi Hatao has been its popular slogan.

During 1947 – 67 the congress ruled the union and almost all the states of the union. In 1967 it suffered a set back when in several states non-congress parties came to power. Its leaders Jawaharlal Nehru, Lai Bahadur Sastri and Indira Gandhi have acted as the Prime Ministers in succession from 1947 to 1977. In 1977 elections the Congress lost its power because of misrule and authoritarian rule during the emergency from 1975 to 1977. In 1980 and 1984 it came back to power under the leadership of Mrs. Indira Gandhi and Rajiv Gandhi. In 1991 elections congress formed government under the prime ministership of P.V. Narasimha Rao, after the assasination of Rajiv Gandhi.

The destruction of the controvercial Babri Masjid during Rao’s rule proved to be a great curse to the party. The economic reforms initiated in this period were not openly acknowledged. In 1996 election the party failed to win. In 14th and 15th Lok Sabha elections Under the leadership of Mrs. Sonia Gandhi the congress led UPA, won the majority and formed government at the centre under the Prime Minister of Dr. Manmohan Singh. In 15th Lok Sabha election the UPA contested with the Slogan “Jai ho”

Short Answer Questions

Question 1.
What is Political Party? Explain its characteristics and functions. [Mar. 16]
Answer:
Political Parties are the life blood of democracy. Political parties mould public opinion and create an order out of the choos of individual opinion. In general sense, political party is an organized group of citizens having the purpose of controlling the government through shared interest, by replacing some of its members in public office.

Political parties are defined by various political scientists in different ways. Some of them are given below :
1) Gilchrist:
“Political party as an organized group of citizens who profess to share the same political views and who acting as a political unit try to control the Government”.

2) Leacock :
“A political party is a more or less organized group of citizens who act together as a political unit”.
Characteristic of Political Parties : The following are the important characteristics of political parties. .

  1. A party should consist of a group of persons of common interest and shared values.
  2. A party should have its own ideology and programme.
  3. It should capture power only by constitutional means through elections.
  4. It should endeavour to promote the national interest and national welfare.

Functions of Political Parties: The following are the main functions of political parties.
1) They articulate and aggregate social interests of people :
Parties express public expectations and demands of social groups to the political system. Parties put forward different policies and programmes for the welfare of people. These political parties are articulate and aggregate the people’s demands and channelize into political system for policies.

2) Political recruitment :
Political parties perform the recruitment function in the political system. Parties recruit leaders, train them and then make them ministers to run the government in the way they want By this recruiting function, they provide leadership to the country.

3) Means of public opinion :
They raise and highlight the people’s problems and issues. Political parties may agitate and launch movements for the solution the problems faced by people. Political parties demand the government for welfare policies their- programmes will reflect the opinion of the people.

4) They promote political Socialization and participation of citizens:
Political parties create a link between citizens and the political system ; they enable political participation of individuals and groups with the prospect of success. They educate the citizens and prepare them for their adult roles are us citizens and voters.

5) Making laws :
When parties come to power, they make laws for the country. Irrespective of their personal options. Opposition parties also participate in the discussion and debates and suggest the changes in the policies and programmes of the government.

6) Role of opposition :
Parties that lose in elections play the role Of opposition to the parties in power by criticizing the government for its failures or wrong policies. They can evaluate the performance of the ruling party and inform to the public about the merits and demerits of the policies and acts made by it.

7) Access to government machinery and welfare Schemes :
For an ordinary citizen, it is easy to approach a local party leader than a government officer. That is why they feel close to parties ever when they do not fully trust them. Parties have to be responsive to people’s needs and demands.

8) They contribute legitimacy to the political system:
In establishing the connection between citizens social groups and the political system, the parties contribute in anchoring the political order in the consciousness of the citizens and in social forces.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Question 2.
What do you know about Party System? Give a note on types of Party System.
Answer:
Party System :
Party System is a modem phenomenon which has less than 200 years of age. Parties and party system emerged in Europe, North America and Japan around the third decade of the 19th century.

The party system refers to complex social and political processes individual leaders, societal associations, political groups and organizations and their interaction and inter-relationships. These interaction patterns are governed by constitutions, statues, rules regulations and institutions.

Rajini Kothari has argued in his book “Politics in India” that the party system evolved from an identifiable political centre. This political centre, curved during the nationalist movement, comprised of the political elite sharing common socio – economic background i.e., educated, urban, upper-caste people belonging mainly to middle and upper classes.

Types of party system:
There are different types of party system which are discussed below. They are classified into a single party system, Bi-party system and Multiparty system.

Single party system :
In a single party system only one political party is in existence. The other political parties are not allowed to function. It is possible that the dissension and grouping may exist with in the same political party viz.., Nazi Party in Germany Fascist Party in Italy, Communist Party in China and in former USSR.

Bi-party System :
Under Bi-party system, two major political parties are in working in a political system, one forms the government and the other functions as opposition, political power in such cases alternate between the two major political parties, viz., the labour and the conservative parties in U.K. or Republican and Democratic parties in U.S.A.

Multi Party System:
In multi party system there are more than two parties operating in a political system. But in practice they are aligned with either the ruling party or the opposition party. This type of party system is in existence in India, France, Sweden and Norway etc.

Question 3.
Write briefly the characteristics of Indian party system.
Answer:
Political parties are essential for the success of Democracy. They acts as agencies of public opinion and link between the government and the people. Modem democracy is unthinkable in the absence of political parties.

Characteristics (or) Features of India party system: The Indian party system has the following characteristics (or) features.

1. Multi – Party System:
The continental size of the country, the diversified character of Indian Society, the adoption of universal adult franchise, the peculiar type of political process and other factors have given rise to a large number of political parties. In fact, India has the largest number of political parties in the world. At present there are 6 National parties, 64 State Parties and 1737 registered – unrecognized parties in the country. Further, India has all categories of parties – leftist parties, centrist parties, rightist parties, communal parties, non-communal parties and so on. Consequently, the hung Parliament, hung Assemblies and coalition governments have become a common phenomena in Indian. Political System.

2. One Party Dominance System :
In spite of the multi-party system, the political scence in India was dominated for a long period by the Congress party. Hence, Rajani Kothari, an eminent political scientist, preferred to call the Indian Party System as ‘one party dominance system’ or the ‘Congress System’.

3. Lack of Clear Ideology :
Except the BJP, CPI and CPM, all other parties do not have a clear-out ideology. They are ideologically close to the each, other. They have close resemblance in their policies and programmes. Almost every party advocates democracy, secularism, socialism and Gandhism. More than this, every party has only one consideration i.e., power capture.

4. Personality Cult:
Quite often the parties are organized around an eminent leader who becomes more important than the party and its ideology. Parties are known by their leaders rather than by their manifesto. It is a fact that the popularity of the Congress was mainly due to the leadership erf Nehru, Indira Gandhi and Rajiv Gandhi. Similarly, the AIADMK in Tamil Nadu and TDP in Andhra Pradesh got identified with M.G. Ramachandran and N.T. Rama Rao respectively. In Tamil Nadu, after M.G. Ramachandran, Jayalalitha became the icon of the party for this culture. Hence, it is said that “there are political personalities rather than political parties in India”.

5. Traditional Factors :
A large number of parties in India are formed on the basis of religion, caste, language, culture, race and so on. For example Shiv Sena, Muslim League, Hindu Maha Sabha, Akali Dal, Bahujan Samajwadi Party, Gorkha League etc., work for the promotion of communal and sectional interests and thereby undermine the general public interest.

6. Emergence of Regional Parties :
Another significant feature of the Indian Party System is the emergence of a large number of regional parties and their growing role. They have become the ruling parties in various states like BJD in Orissa, DMK and AIADMK in Tamil Nadu, Akali Dal in Punjab, AGP in Assom, National Conference in J & K, JD(U) in Bihar and so on.

These regional parties have come to play a significant role in the national politics due to coalition governments at the Centre. In 1984 elections, the TDP emerged as the largest opposition party in the Lok Sabha and played a decisive role in national politics. In one context, i.e., during the NDA Government when Vajpayee was the Prime Minister at the Centre, Nara Chandra Babu Naidu played a ‘King Maker’ role at the centre.

7. Factions and Defections:
Factionalism, defections, splits, mergers, fragmentation, polarization and so etc., have been important aspects of the functioning of political parties Dais, two Communist parties, two Congresses and so on.

8. Lack of Effective opposition :
In the last 63 years, an effective strong, organized and a viable national opposition could never emerge except in flashes. The opposition parties have no unity and very offen adopt mutually conflicting positions with respect to the ruling party.

Question 4.
Write a note on Congress Party In India.
Answer:
Indian National Congress is the oldest All India Political Party in our country. It was founded by A.O. Hume, a British Civil Servant on 28th December 1885. Womesh Chandra Baneijee was its first president. This party has played a prominent role in the Indian National movement against the Britishers and ultimately secured Independence. After Independence, the congress kept on dominating the Indian political scence. It became the ruling party at the union and in majority of the Indian states up to March 1977.

  • Jawaharlal Nehru was the Prime Minister from 1946 to 1964.
  • Lai Bahadur Shastri was the Prime Minister from 1964 to 1966.
  • Smt. Indira Gandhi was the prime minister from 1966 to 1977.
  • Again it came to power during 1980 to 1989, again Smt. Indira Gandhi became the Prime Minister from 1980 to 1984 October, 31st, the day on which she was assassinated.
  • Rajeev Gandhi was the Prime Minister from 1984 to 1989.
  • It became the Ruling party during 1991 to 1996 under the stewardship of Sri. P. V Narasimha Rao.
  • Between 1996 to 2004 it acted as a recognized opposition party at the centre.
  • In 2004 it came to power at the centre as a major partner in united progressive Alliance (UPA).
  • Again in 2009 general elections the Congress led UPA secured majority and formed government at centre with its allies.
  • Dr. Manmohan Singh was the Prime Minister from 2004 to 2014.

Policies:
The Indian National Congress, during the pre-independence era has worked with a single point programme, called Swaraj. After achieving independence it was committed to implementation of the policies like secularism, socialism, international peace, equality and Justice. It has the following policies :

  1. The party aims to eradicate poverty, unemployment, economic inequalities, discrimination, exploitation etc.
  2. It strives to achieve full employment, optimum production, promotion of cottage and small scale industries, provatization, globalization and liberalization programmes in the industrial sector.
  3. It stafids for world peace and security and has belief in the policy of noninterference, non-alignment, friendly relations with all countries and to end racial apartheid in international sphere.
  4. It dedicates itself to the implementation of land reforms rescuing farmers in times of natural calamities, provision of credit at lower rates of interest, marketing and warehousing facilities in agricultural sector.
  5. It abides by the values of democracy and decentralisation of authority in political field.

Party organization :
Its constitutions was first formulated at Nagpur session (1920). Now, let us know something about its organization.
1. All India Congress Committee (AICC) :
It consists of about 425 members. It meets annually. It decides all the policies of the party. It occupies the highest place in the organization.

2. Congress working committee (CWC) :
It consists of 21 members including the president. It is called the High command of the party. It includes the Prime Minister and all senior leaders of the party. It takes all important decisions and implements them with the approval of AICC.

3. Parliamentary Board :
It consists of president and seven senior members. It takes decisions regarding the appointment and removal of Chief Ministers, selection of candidates.

4. Central Election Committee (CEC) :
It selects candidates to contest elections at the state and national level.

5. Pradesh Congress Committee (PCC) :
Every state has its own RC.C. It selects candidates to contest Assembly elections. At the lower level, it has District, Mandal and village committees. In reality, it acts as a centralized organisation.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Question 5.
Explain briefly about Bharatiya Janata Party. [Mar. 18]
Answer:
Bharatiya Janatha Party is one of the All India Parties in India. It was established on April 6, 1980. Earlier it was known as Bharatiya Jan Sangh founded by shyam Prasad Mukherjee on October 21, 1951. DeenadayalTJpadhyaya, Atal Bihari Vaj Payee, Lai Krishna Advani, Murali Manohar Joshi, Jana Krishna Murthy, Kushbhav Thakre and Venkaiah Naidu acted at it’s presidents.

Although initially unsuccessful, winning only two seats in the 1984 general election, it grew in strength on the back of the Ram Janmabhoomi and Babri Majid issue. Following victories in several state elections and better performances in national elections, the BJP became the largest party in the Parliament in 1996; however, it lacked a majority in the lower house of Parliament, and its government lasted only 13 days. After the 1998 general election, the BJP-led coalition known as the National Democratic Alliance (NDA) formed a government under Prime Minister Atal Bihari Vajpayee for a year.

Following fresh elections, the NDA government, again headed by Vijpayee, lasted for a full term in office ; this was the first non-Congress government to do so. In the 2004 general election, the BJP led NDA suffered an unexpected defeat, and for the next ten years the BJP was the principal Opposition party. Long time Gujarat Chief Minister Narendra Modi, a principal campaigner and charismatic leader of the party, led it to a landslide victory in the 2014 general elections. Since that election, Narendra Modi leads the NDA government as Prime Minister with the alliance of 13 states owned parties.

Sri Amith Shah is the present President of the party.

The party had spread its influence in Madhya Pradesh, Chattisgarh, Jarkhand, Rajsthan, Gujarat, Himachal Pradesh, Delhi etc.

Policies:
Bharatiya Janatha Party favours a strong unitary state in place of the present quasi-federation. It has the following policies.

  1. The party is committed to adopt the principles of nationalism, democracy, value based politics, national integration, positive secularism and Gaiidhian socialism.
  2. It strives to implement five concepts, namely Suraksha, Sucharita, Swadeshi, Somrastha and Suvajya.
  3. It aims at the construction of Ram temple at Ayodhya, abrogation of Article 3 to and implementation of Uniform Civil code.
  4. It also aims at adopting electoral reforms.
  5. It believes in the implementation of Swadeshi and Swabhiman policies.
  6. It also aims at the adoption of a practical non-aligned policy in foreign affairs. It favours settlement of all disputes with the neighbouring states through dialogue and discussion. It strongly believes in the utilization of nuclear energy and arms for achieving peace and prosperity. It demands more democratization of the United Nations Organisation by expanding the membership of the security council.
  7. It favours the continuation of the economic reforms initiated by the earlier governments through the policies of liberalization, privatization and globalization.
  8. It vehemently opposes dynastic rule, assigning top executive offices and strongly supports decentralization of power and empowerment of women.

Question 6.
Estimate the significance of Regional Parties in India. [Mar. 17]
Answer:
In India’s federal democratic polity, regional and local parties would continue to have relevance and appeal, especially for certain dominant social and economic interests. The growing presence of regional parties is, undoubtedly, the most outstanding aspect of political I development in India over the past few years.

Till 1967, there was only one party ruling the nation that was ‘Congress Party’, but after 1967 a lot of other political parties came to the forefront along with power and started, to play an imperative and persuasive role in government. With the regional parties coming to the forefront the development of the state’s responsibility has gone to the regional parties as opposed to the Central Government taking care in the initial stages. Regional parties are playing a major role in influencing decisions and thought process in the government planning process and decisions.

After 1996, several regional parties have been emerging as key players in national politics in India. As partners of the NDA, 23 regional parties shared power at the Centre during 1999 and 2004. Some of the regional parties are ruling the states – AIADMK, TDP, JDU, BJD, UDF, NCP, SAD etc. All this reflects the continued and continuously growing importance of regional parties in the Indian politics.

During 1999 to 2004 the BJP, and several regional parties shared power at the Centre as constituents of the BJP led National Democratic Alliance (NDA). Later, the Congress led UPA was in power and in it along with Congress, several regional and local parties shared the power. The present BJP led NDA government is also a coalition government supported by several regional and local parties including Telugu Desam Party.

Question 7.
Write a note on Telugu Desam Party in Andhra Pradesh.
Answer:
Telugu Desam party is a prominent regional party in Andhra Pradesh. It was founded on March 29,1982 by N.T. Rama Rao, a popular Cine Star. It has achieved landslide victory in the A.R state Legislative Assembly elections held in December 1982. N.T.Rama Rao acted as the Chief Minister of Andhra Pradesh thrice – 1983, 1984 and 1994. There was a first split in the party in August 1984. N. Bhaskara Rao, a cabinet Minister quit the party and started a new party called Telugu Desam party (Democratic) and formed the ministry with the support of congress – I.

Consequently, Telugu Desam Party and some other parties launched agitation under the name of ‘Restoration of Democracy’. N.T. Rama Rao was reinstated as the Chief Minister by the then Governor, S.D. Sharma on the intervention of president Zail Singh. The party has lost its power in 1989. Assembly elections and has served as the main opposition in the state Legislative Assembly. It came to power again by winning majority seats in 1994 and 1999 elections. The party has undergone yet another split in August 1995 under the leadership of N. Chandra Babu Naidu and got recognition by the Election commission as the real one.

The party has joined as a partner in the United Front Ministry (1996-98) at the centre. It has extended its support from outside to the Union government led by National Democratic Alliance ministry (1999-2004). The party has continued in power in Andhra Pradesh between 1994 and April 2004. In the Andhra Pradesh general elections, 2004 and 2009 the Congress Party captured the power. The Telugu Desam Party gained a few more Assembly seats in 2009 elections than the 2004 election. In 14th Assembly General Elections held in 2014, the Telugu Desam Party under the leadership of Nara Chandra Babu Naidu got 102 seats out of 174 Seats and formed the government.

Sri N. Chandrababu Naidu became the first Chief Minister of bifurcated Andhra Pradesh in 2014.

Policies :
Following are the main policies of Telugu Desam Party.

  1. Provision of essential commodities at subsidised prices to the people living below poverty line (BPL).
  2. Construction of houses for the poor.
  3. Empowerment of women.
  4. Adoption of e-governance.
  5. Provision of education to every child between the age group of 6 -15.
  6. Promotion of welfare of the scheduled castes, scheduled tribes and other weaker sections.
  7. Administration at the doorsteps of the common man.
  8. Provision of better Civil amenities to the poor.
  9. Adopting secular policy.
  10. Support to economic reforms such as liberalization, privatization and globalization.

Question 8.
Estimate the conditions helped for the emergence of Telangana Rastriya Samithi Party.
Answer:
Telangana Rashtra Samithi (TRS) is a regional party which was established in the year 2001 in the integrated state of Andhra Pradesh by Sr. K. Chandra Sekhar Rao.

Conditions helped for the emergence of TRS :
i) Telangana state hood struggle is one of the longest people’s movement in the country. The six decade struggle, which began in early 1950s has reached its goal in February, 2014.

ii) The first statehood movement of 1950s led to the State Reorganization Commission recommending the Telangana state (then called Hyderabad State) in 1955 itself. Due to the political conditions that prevailed in Telangana then it had merged with Andhra State to form Andhra Pradesh.

iii) State in November, 1956. In May 1971, Telangana Praja Samithi headed by Marri Chenna Reddy won 10 of the Parliament seats in Telangana region. But, very soon, Chenna Reddy merged his party with Congress Party.

iv) While the statehood aspirations were alive in people it took sometimes before they found the right platform to intensify the agitation. In mid 1990s, several peoples organizations started organizing meeting on the statehood issue.

v) Sri Kalvakuntla Chandrashekar Rao (KCR), Who was the Deputy Speker of A.P State Assembly, had started background work on Telangana issue in early 2000. On 17th May, 2001, K.Chandra Sekhara.Rao announced the launch of Telangana Rashtra Samithi party. Prof. Jayashankar, ‘the ideologue of statehood movement extended his support to K.Chandra Sekhar Rao.

From then on wards it has been demanding separate state hood for Telangana Region. It contested in 2004 elections being an ally of congress party both for Lok Sabha as well as state legislative Assembly. In that elections T.R.S has won 5 Lok Sabha seats and 26 Assembly seats. It joined the Congress governments both at the centre and the state. Later, owing to certain political differences it came out from the government both at the centre and the state. In 2009 General elections. It contested to both Lok Sabha and Assembly being an ally of Grand Alliance with TDP CPI and CPM. It got 2 Lok Sabha seats and 10 Assembly seats.

On Nov 29th, 2009 K. Chandra Sekhara Rao had announced an indefinite hunger strike demanding statehood to Telangana, The movement spread like wildfire with students, employees, peoples’ organizations plunging into it. In the next 10 days, the whole of Telangana region came to a standstill. As K: Chandra Sekhara Rao’s health was deteriorating very fast on December 9th 2009, the UPA government announced that the process of statehood for Telangana would be initiated.

But within two weeks, the UPA backtrack on this issue. KChandra Sekhara Rao then brought all political forces in Telangana region together to form the Telangana JAC an umbrella body of several organizations and parties under the chairmanship of Prof. Kodandaram. TRS cadre and leaders actively participated in several agitations and protests launched by Telangana’ Joint Action Committee (TJAC).

After four years of peaceful and powerful protests, the UPA government started the statehood process in July 2013 and concluded by passing the statehood bill in both Houses of Parliament in February 2014. After the separate statehood of Telangana, in 2014 general elections of the state, TRS party won the majority of seats and formed the government headed by K. Chandra Sekhar Rao as its first Chief Minister.

Very Short Answer Questions

Question 1.
Functions of a Political Party.
Answer:
Functions of a Political Party:
The following are the main functions of Political Parties :

  1. They articulate and aggregate social interests of people
  2. Political recruitment
  3. Means of public opinion
  4. They promote political socialization and participation of – citizens
  5. Making laws
  6. Role of opposition
  7. Access to government machinery and welfare schemes
  8. They contribute legitimacy to the political system.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Question 2.
Types of Party System. [Mar. 17]
Answer:
There are different types of party system which are discussed below. They are classified into a single party system, Bi-Party system and Multi-Party System.

1. Single party system :
Single party system only one political party is an existence.
Ex: Nazi party in Germany, Fascist party in Italy, Communist party in China and in former USSR.

2) Bi-Party System:
Under Bi-party system, two major political parties are in working in a political system; one forms the government and the other functions as opposition.
Ex : Viz, the labour and the conservative parties in UK or republican and democratic parties in U.S.A.

3) Multi party System:
In Multi-party system there are more than two parties operating in a political system.
Ex : This type of party system is in existence in India, Sweden, Norway, France etc.

Question 3.
National Parties. [Mar. 18]
Answer:
A political party which participates in four or more states in Lok Sabha elections and secures 6% of valid polled votes plus 4 Lok Sabha seats can be recognised as National Party by the election commission of India. At present there are 6 National Parties in India. Indian National Congress, BJP, CPI, CPM, BSP, NCP

Question 4.
Regional Parties. [Mar. 16]
Answer:
A political party which participates in state Assembly elections and secures 6% of valid polled votes and 2 Assembly seats can be recognised as a regional party.
Ex : TDP in Andhra Pradesh, DMK and AIADMK in Tamil Nadu, AGP in Assom, National conference in J & K, Akalidal in Punjab, BJD in Odissa etc.

Question 5.
DMK. (Draviuda Munnetra Khajagam)
Answer:
The term ‘Dravida Munnetra Kazhagm’ means Tamilian Development Party’. It was the product of South Indian Association (1916) and Justice Party (1917). E.V Ramaswamy Naicker was its founder. This party has opposed Vehemently.
a) The dominance of upper castes.
b) Vedas.
c) Puranas and
d) All religious ceremonies conducted by the priests.

When Ramaswamy Naicker refused to honour the national flag and the India constitution, C.N. Annadurai opposed his decision and seeded from the parent institution Dravida Kazhagm (DK) and formed the present Dravida Munnetra Kazhagam (DMK) on September 17, 1949.

Question 6.
AIADMK.
Answer:
All India Anna Dravida Munnetra Khazagam is a Prominent Regional Party in Tamil Nadu and Pondichery. It was established by Tamil Cine Star M.G. Ramachandran in October, 1972. M.G.R becameThe Chief Minister of Tamil Nadu in 1977 and continued in that office till his death in 1987. After his death Film Star Miss Jayalalitha became its general Secretary. She led the government in Tamil Nadu .during 1991 – 96 and again in 2001 and 2002. In 2011 state Assembly elections the party came to power. Jayalalitha became the Chief Minister for the third term on 16th May, 2011.

Question 7.
One Party Dominance.
Answer:
In the post independence politics of the country. The role of the Congress party was so great that India was often described as a single dominant party system. The congress was the party of consensus and its strategy was all inclusive. It was often described as a miniature Indian Society which reflected all the essentials in the nation. From First General Elections of 1952 to the present 16th Loksabha general elections of 2014. The Congress party was in power at the centre for 52 years out of 62 years. It shows that the Congress party dominating the political scence of our country.

Question 8.
Multi Party System. [Mar. 16]
Answer:
In Multi party system there are more than two parties operating in a political system.
Ex : This type of party system is in existence in India, France, Sweeden etc.

Question 9.
Bahujana Samaj Party. (BSP) [Mar. 18]
Answer:
It is a dominant party in India. It was established by Kanshi Ram in 1985 a retired civil servant. It’s main motto was the preservation and promotion of the interests of down trodden sections in the society. It vehemently opposes the preaching of many and practices of upper castes in society. That is why it always opposed in B.J.P. It’s strength in the Thirteen Lok Sabha, stood at 14. This party came to power in U.R Thrice under the leadership of Mayavathi. Mayavathi is the present President of this party.

AP Inter 2nd Year Civics Study Material Chapter 12 Political Parties

Question 10.
Nationalist Congress Party. (NCP)
Answer:
The Nationalist Congress Party (NCP) is a centre to centre left political party primarily based in the states of Maharastra, Kerala and Meghalaya. NCP was formed on 25 May 1999, by sharad pawar. P. A. Sangma and Tariq Anwar after they were expelled from the Indian National Congress (INC) on 20th May 1999, for disputing the right of Italian – bom Sonia Gandhi to lead Party. Sharad pawar is its president. It was an ally of Congress led UPA government during 2004 to 2014.

AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 11th Lesson Elections and Representation Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 11th Lesson Elections and Representation

Long Answer Questions

Question 1.
Write an essay on the Election System in India.
Answer:
Elections are very important for political system of modem democratic states. Modem democratic states have representative government. People participate in the process of government through their elected representatives. The election system is a political device through which the modern state creates among its citizens a sense of involvement and participation in public affairs.

Features of Indian Election System :
The following features of the Indian Election system highlight its well structure nature.

1. Direct Election of Representatives:
The Constitution provides for a direct election of the representatives of the people. Members of the Lok Sabha, the State Legislative Assemblies, Municipalities and Village Panchayatas are directly elected by the people. These legislative bodies are the real centres of people’s power in the Indian democratic system.

2. Indirect Election for some Institutions :
However, the Constitution also provides for an indirect election in respect of the Rajya Sabha, State Legislative Councils and the President and the Vice President of India. These are elected indirectly and in accordance with a system of proportional representation vote.

3. Universal Adult Franchise :
The constitution provides for a uniform Franchise to all the citizens. The right to vote was granted to all the citizens of 18 years of age without any discrimination on the basis of caste, religion, gender, education, property and place of birth. All the citizens whose names appear in the electoral lists, are eligible to exercise their vote in elections.

4. Reservation of seats for SCs and STs :
With a view to safeguard the interests of the people belonging to the Scheduled Castes and Scheduled Tribes, the Constitution provided the reservation of seats for them. Article 330 of the Constitution provides the reservation of seats to these classes in the Lok Sabha and Article 332 lays down this provision in respect of elections to every state Assembly. In the reserved constituencies, persons belonging to SC and ST only can contest in the elections.

5. Provision for Nominations :
The Constitution, under its Article 337, lays down that the President may, if he is of the opinion that the Anglo-Indian community is not adequately represented in the Lok Sabha, nominate not more than two members of the community to the Lok Sabha. Likewise, the Governor can also nominate not more than one person from this Anglo – Indian community to the State Legislative Assembly.

6. Regular revision of Electoral Rolls:
The Election Commission revises and prepares the electoral rolls enumerating the names of the eligible voters for every ten years. Besides this, the Election Commission can order the revision of electoral rolls before any election. Provision also exists for a regular annual revision of electoral lists. Only those persons whose names appear in the electoral rolls of the constituency can exercise their franchise on the Election Day.

7. Territorial and Single Member Constituencies :
Indian Election System provides for the creation of single-member territorial constituencies. All the voters living in a particular and defined territory constitute one constituency. Each territorial constituency elects one representative. Each state is divided into as many territorial constituencies as is the number of seats of its Legislative Assemblies and Parliamentary Constituencies and each constituency elects one representative.

8. Delimitation of Constituencies :
After every census the boundaries of the constituencies are delimited. This work is done by a three member Delimitation Commission. This commission can change the boundaries of constituencies, and its decision is final. This cannot be challenged before any court of law.

9. Secret Ballot:
Secret voting enables the voters to exercise their votes in accordance with their wishes and opinions. Special steps are taken in elections for maintaining secrecy and for checking impersonation in voting. This system is essential for making elections free and fair.

10. Introduction of Voting Machines :
The Election Commission has introduced the using of electronic voting machines (EVMs) for casting of votes by people and counting of votes in India.

11. Relative Majority of Votes System :
In the election, the candidate who secures more votes than every other contestant in his constituency is declared elected as representative to the Lok Sabha or the State Legislative Assemblies. In this system, valid votes are taken into consideration for counting.

12. Independent Machinery for the conduct of Elections in India:
According to the Article 324 of the Constitution, the conduct of elections in India is the responsibility of the Election Commission. It is the Constitutional body which is conducting the elections freely, fairly, impartially and independently.

AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation

Question 2.
Explain the Functions of Election Commission in India.
Answer:
Article 324(1) of the constitution provides the Election Commission to supervise and conduct the elections to parliament, state legislatures, the offices of the Preside ans the Vice-President of India.

Composition :
The Election Commission of India consists of the Chief Election Commissioner and Two other Commissioners.

Appointment :
The Chief Election Commissioner and other commissioners are appointed by the president of India.

Tenure :
The Chief Election Commissioner and other commissioners hold office for a period of 6 years or until they attain the age of 65 years whichever is earlier.

Removal:
The Chief Election Commissioner and other commissioners can be removed by the president on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority either on the ground of proved misbehaviour or in capacity.

Salary and Allowances :
The Chief Election Commissioner and two other commissioners shall receive salary and Allowances which are similar to that of a Judge of the Supreme Court.

Powers and Functions of Election Commission:
The Constitution of India in its Articles 324-328 enumerates the powers and functions of the Election Commission. These can be mentioned here under.

  1. It prepares all periodically revised electoral rolls.
  2. It makes every effort to ensure that the voters’ list is free of errors like non-existence of names of registered voters or existence of names of that non-eligible or non¬existent.
  3. It notifies the dates and schedules of election and scrutinizes nomination papers.
  4. During this entire process, the Election Commission has the power to take decisions to ensure a free and fair poll.
  5. It can postpone or cancel the election in the entire country or a specific State or constituency on the grounds that the atmosphere is vitiated and therefore, a free and fair election may not be possible.
  6. The Commission also implements a model code of conduct for parties and candidates. It can order a re-poll in a specific constituency.
  7. It can also order a recount of votes when it feels that the counting process has not been fully fair and just.
  8. The Election Commission accords recognition to political parties and allots symbols to each of them.
  9. It advices the President whether elections can be held in a state under President’s rule in order to extend the period of emergency after one year.
  10. It advices the Governor on matters relating to the disqualifications of the,members of Stage Legislature.

Question 3.
What is Representation? How many types of representative systems are there in India?
Answer:
Representation:
In Democracy people elect members to the Legislatures. The elected members are the representatives of the people. They represent the people in the Legislature. This process is called representation.

Types of Representative systems in India:
Many methods are in practice for electing the representatives of Legislative bodies in India. They may be explained under the following heads :

i) Direct Method :
This is widely practiced and easy method. The voter takes part in the election directly and casts his vote to the condidate of his choice. The elected representatives serve for a fixed term.
Ex : The members of Lok Sabha and State Legislative Assemblies are being elected through this method.

ii) In Direct Method :
In this method the voters elect their representatives indirectly. Accordingly, first voters (Primary electors) elect the Intermediatoiy electors known as secondary Electors. These secondary electors in turn, elect the Representatives on behalf of the first voters. The sequence is
Voters → Intermediatory voters → Representatives
Or
Primary voters → Secondary voters Representatives
(Members of Electoral College)

Ex: In India, voters elect the members of Legislative Assemblies in the states, who in turn, elect the members of Upper house, Popularly known as the RAJYA SABHA in the centre in accordance with the provisions, Rules and Regulations in force. They also elect the members of Legislative council and form a part and parcel of electoral college for electing the President of India.

iii) Territorial Representation:
Under Territorial Representation, the country will be divided into geographical units called “Constituencies”. Voters in every constituency elect their representatives in periodically held elections, i.e., for every five years.
Ex : a) Representatives of Local bodies.
b) Members of State Legislative Assemblies and
c) Members of Lok Sabha

iv) Functional Representation:
Under this method people are divided into functional groups, such as for example Doctors, Lawyers, Engineers, Teachers, Graduates, Capitalists, Workers etc. representatives from each functional group will be returned to legislative bodies. It is hoped that these representatives will ventilate all the problems related to their occupations.
Ex: In India

  • The president of India nominates 12 members to the Rajya Sabha having special knowledge or practical experience in respect of matters such as literature, science, arts and social service.
  • 1/3 of the total members of the state legislative council shall be elected by the electorate consisting of the members of local bodies such as Municipalities, Zillaparishads etc.
  • 1/12 of the total members of state legislative council are elected by the electorate consisting of university graduates.
  • 1/12 of the total members of state legislative council are elected by the electorate consisting of secondary school teachers or those in higher educational institutions.
  • 1/6th of the total members of state legislative council are nominated by the governor on the basis of their special knowledge in literature, science, arts, co-operative movement or social service.

v) Proportional Representation :
Under this system each party gets representation strictly in Accordance with its voting strength, it means majority of electors would have majority of the representatives, but a minority of electors would have minority of representatives. There are two methods in proportional representation. These are
A) Single Transferable Vote System :
The election of President, Vice President and members of Rajya Sabha etc. in India is based on this system.
The main features of this system are

  1. Each voter will have only one vote.
  2. But the voter has to distribute this vote according to his preference (First preference, second preference etc).
  3. The condidate to be declared elected should secure the required QUOTA of votes.
  4. Provision for transfer of votes.

QUOTA :
Under this system as stated above, A candidate in order to be declared elected need not secure majority votes. But he requires only quota of votes. For determining quota, two methods are followed.
A) Hare and Andrae method of fixing quota :
AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation 1
Ex:
Number of votes cast – 14000
Number of seats vacant – 14
Quota – 1400 votes

B) Drop method:
AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation 2

Question 4.
Do you think that Indian Election System needs to be Reformed.
Answer:
The overall health of a representative form of Government depends, to a very large extent, on the fairness and effectiveness of the electoral process. In order to strengthen the foundatipns of our democratic polity, several reforms need to be undertaken in the electoral system. The system should provide equal opportunities to all citizens and help to build an egalitarian society. This would call for a careful review and reforms of existing features governing legislative, administrative and institutional dimensions of the electoral system in the country.

Within the broad framework of the existing constituency system of elections, geographies delimitation, multi-party system with right to individual to contest, the main issues that need to be examined include plugging loopholes in the present Representation of People Act and Anti-Defection Act.

The various committees and commissions which were appointed to examine our electoral system, election machinery as well as election process have recommended various reforms that have to be introduced in our electoral system. These can be mentioned briefly here under.

  1. The donation of companies to the political parties should be strictly banned.
  2. The accounts of the political parties are to be audited by the Election commission periodically.
  3. The number of members of the Election commission shall be raised.
  4. The limit on election expenditure of the candidates must be proper, practical and realistic.
  5. The announcement of new policies, projects and programmes by the party in power during elections should be banned.
  6. The members of the election commission should be appointed by the president on the advice of the prime minister, leader of the opposition in the Lok Sabha and the chief justice of India.
  7. The government should meet the election expenditure of the candidates.
  8. The election commission should be authorised to invalidate the election of a candidate if it was proved that he had used government machinery during elections.
  9. Notification should be issued to the voters and electronic voting machines should be introduced after fool-proof arrangements.
  10. The candidate who secures 51 percent of the polled votes shall be declared as winner.

Short Answer Questions

Question 1.
Write a Short Note on Electoral Functions.
Answer:
The electoral functions are different for the individual voter and for the political system. For the individual voter, elections may be regarded as a means of political participation and to some extent, of policy choice, although for many voters. Even in democratic societies, elections may be a customary at to which little significance is attached. For the political system, elections are important devices for assuring legitimacy and for system maintenance and support building. Hence, the electoral functions may be considered into four broad categories. They are :
a) Political choice
b) Political participation
c) Support-building and system – maintenance, and
d) Linkage functions.

a) Political choice :
The elections may be used or interpreted as a plebiscite, a referendum, or a mandate. They are the instruments for choosing the leaders and also determining the will of the people. They are devices for controlling political leaders. Control of leaders involves some degree of control of governmental choice and policies. They provide the means for the peaceful and orderly transfer of power.

b) Political participation :
The major electoral function is to provide opportunities and channels for political participation. This function of elections is a central one as political participation is essential in the democratic system. The participation strengthens the democratic system.

c) Support-building and system – maintenance :
The elections support the political system by providing legitimacy, political stability, integration and identification. The elections, are therefore a contributing rather than a controlling factor of a political system. Rosenau uses the term support-building as function of elections and hence, all other functions could be subsumed under it.

d) Linkage functions :
Elections are important agencies of political communication between the people and the government in the sense of political linkages. They provide a chance for the people to have more direct contact with their leaders.

AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation

Question 2.
Discuss the Election process in India.
Answr:
The electoral process in India is operationalized in several stages which can be explained as under.
1. Delimitation of Constituencies :
The first step of conducting the elections can be described as the delimitation of constituencies which is done by a Delimitation Commission appointed after every census by the President. This happens for every 10 years. Generally, a constituency which elects a member of the Lok Sabha consists of six or seven State Legislative Assembly constituencies. The decisions of the Delimitation commission are final and cannot be challenged in any court.

2. Recognition of Political Parties :
Political parties have to be registered with the Election Commission. According to certain criteria, set by the Election Commission regarding the length of political activity and success in elections, parties are categorized by the Commission as National or State parties, or simply declared registered-unrecognized parties. National parties are given a symbol that is for their use only, throughout the country. State parties have the sole use of a symbol in the state in which they are recognized as such Registered- unrecognized parties can choose a symbol from a selection of ‘free’ symbols.

3. Photo Identity Cards :
In an attempt to improve the accuracy of the electoral roll and prevent electoral fraud, the Election Commission ordered the making of photo identity cards for all voters in the country in Aug, 1993. To take advantage of latest technological innovations, the Commission issued revised guidelines for Election Photo Identity Card (EPIC) Program in May 2000.

4. Electoral Rolls :
An important step in the conduct of elections is to get prepared constituency-wise electoral rolls which record the names of the eligible voters. The electoral rolls are revised after each census, before every election or after regular intervals.

5. Notification and Appointment of Returning Officers :
When general elections are to be held, the President of India sends a communication to the Election Commission and the latter, after consulting Central and State Governments, announces the poll calendar, i.e., the dates for filing the nomination papers, scrutiny of nomination papers and withdrawal of nominations by the candidates. The Election Commission then appoints Returning Officers for various constituencies. The Regional Election Commissioners help the Election Commission in the smooth conduct of elections.

6. Filing of Nomination Papers :
The candidates who wish to contest in the elections have to file their nomination papers with the Returning Officer in their respective I constituencies. Such candidates must submit their nominations in a given formats prescribed by the Election Commission. If the contestant is a party candidate, the name has to be proposed by a voter and seconded by another voter. In the case of non-party contestant, the candidate has to be subscribed by 10 registered electors of the constituency as proposers.

7. Scrutiny of Nominations :
After the last date for the filing of the nominations, all the nomination papers are duly scrutinized by the Returning Officers in the presence of the candidates or his nominee. The scrutiny is conducted for determining whether the nomination papers have been filed properly, the candidates possess the required qualifications, and they have complied with all rules and regulations. Later, the Returning Officer decides all cases and notifies the names of those candidates whose nomination papers are found in order.

8. Withdraw of Nominations:
After scrutiny, the candidates are allowed to voluntarily withdraw their nominations within a fixed date and time as fixed by the Election Commission. For this purpose a candidate has to apply in writing to the Returning Officers.

9. Election Campaign :
The next stage in the electoral process involves the election campaign. The contestants and parties get engaged in the election campaign. Each party issues an Election manifesto which states its policies, programmes and promises.

10. Electronic Voting Machines (EVMs) :
An electronic voting machine is a simple electronic device used to record votes in place of ballot papers and boxes which were used earlier in conventional voting system. The advantages of the EVM over the traditional ballot paper system are given here.
a) It eliminates the possibility of invalid and doubtful votes.
b) It makes the process of counting of votes much faster than the conventional system.
c) It reduces to a great extent the quantity of paper used, thus saving a large number of trees.
d) It reduces cost printing as only one sheet of Ijallot papers required for each polling station.

11. Polling of Votes:
Polling personnel are appointed and polling booths are set up in different localities. Each polling booth, on an average caters to about a more than thousand voters. The voting is a secret one.

12. Supervising Elections by Observers :
The Election Commission appoints a.lafge number of Election Observers to ensure that the campaign is conducted fairly, and that people are free to vote as they choose. Election Observers keep a check on the amount that each candidate and party spends on the election.

13. Media Coverage:
In order to bring as much transparency as possible to the electoral process, the media are encouraged and provided with facilities to cover the election.

14. Counting of votes and Declaration of Results :
After the process of polling of votes, on a fixed day and time, the Returning Officer and his staff members open the voting machines in the presence of the agents. Then each candidate verifies his votes polled recorded in the EVM. A candidate who gets more valid votes than the other contesting candidate in very constituency is declared elected. These results declared on the basis of relative majority of vote victory system. The Returning Officer makes an announcement of the results in this regard.

15. Election Petitions :
Any elector or candidate can file an election petition if he or she thinks there has been malpractice during the election. An election petition is not an ordinary civil suit, but treated as a contest in which the whole constituency is involved. Election petitions are tried by the High Court of the state concerned and if upheld can even lead to the restaging of the election in that constituency.

Question 3.
Write a short note on composition and Functions of Election Commission. [(AP. Mar. 16) Mar. 18]
Answer:
Composition :
The Election Commission of India consists of the Chief Election Commissioner and two other commissioners. They are appointed by the President of India.

Functions of Election Commission :

  1. It prepares all periodically revised electoral rolls.
  2. It makes every effort to ensure that the voters’ list is free of errors like non-existence of names of registered voters or existence of names of that non-eligible or non-existent.
  3. It notifies the dates and schedules of election and scrutinizes nomination papers.
  4. During this entire process, the Election Commission has the power to take decisions to ensure a free and fair poll.
  5. It can postpone or cancel the election in the entire country or a specific State or constituency on the grounds that the atmosphere is vitiated and therefore, a free and fair election may not be possible.
  6. The Commission also implements a model code of conduct for parties and candidates. It can order a re-poll in a specific constituency.
  7. It can also order a recount- of votes when it feels that the counting process has not been fully fair and just.
  8. The Election Commission accords recognition to political parties and allots symbols to each of them.
  9. It advices the President whether elections can be held in a state under President’s rule in order to extent the period of emergency after one year.
  10. It advices the Governor on matters relating to the disqualifications of the members of State Legislature.

Question 4.
What is Representation? What do you know about Territorial Repre-sentation.
Answer:
Representation:
In democracy, people elect members to the Legislatures. The elected members are the representatives of the people. They represent the people in the Legislature. This process is called representation.

Territorial Representation :
In the territorial or geographical representation system, the total electorate of the country is divided into territorial units called constituencies which elect one or more representatives. The constituencies are more or less equal in size and population. All voters living in a particular Constituency take part in the election of representatives. Where one representative is elected from a constituency it is known as a single-member constituency. Where more than one representative is elected, it is known as multi-member constituency. Most of the modem states, including India, have followed single¬members constituencies for the elections to the lower houses of the legislature.

Question 5.
Estimate the pros and cons of FPTP system in India.
Answer:
In our country we have been following a special method of elections. The entire country is dividend into 550 constituencies, each constituency elects one representative and the candidate who secures the highest number of votes in that constituency is declared elected. It is important to note that in this system whoever has more votes than all other candidates is declared elected.

The winning candidate need not secure a majority of votes. This method is called the First Past the Post system (FPTP). In the election race, the candidate who is ahead of others, who crosses the Wining post first of all, is the winner. This method is also- called the Plural System. This is the method of election prescribed by the Constitution.

In India this FPTP System is popular and successful because of its simplicity. The entire election system is extremely simple to understand even for common voters who may have no specialized knowledge about politics and elections. There is also a clear choice presented to the voters at the time of elections. Voters may either give greater importance to the party or the candidate or balance the two.

The FPTP system generally gives the largest party or coalition some extra bonus seats, more than their share of votes would allow. Thus, this system makes it possible for parliamentary government to function smoothly and effectively by facilitating the formation of a stable government. Finally, the FPTP System encourages voters from different social groups to come together to win an election in a locality. Above all, the FPTP System has proved to be simple and familiar to the ordinary voters. It has helped larger parties to win clear majorities at the centre and state levels.

Question 6.
Write a Note on the Electoral Reforms. [Mar. 17]
Answer:
The Electoral Reforms will ensure the free and fair elections in the country. The successful functioning of Indian democracy depends on the electoral reforms.

Some Electoral Reform proposed :

  1. The donation of companies to the political parties should be strictly banned.
  2. The accounts of the political parties are to be audited by the Election commission periodically.
  3. The number of members of the Election commission shall be raised.
  4. The limit on election expenditure of the candidates must be proper, practical and realistic.
  5. The announcement of new policies, projects and programmes by the party in power during elections should be banned.
  6. The membersof the election commission should be appointed by the president on the advice of the prime minister, leader of the opposition in the Lok Sabha and the chief justice of India.
  7. The government should meet the election expenditure of the candidates.
  8. The election commission should be authorised to invalidate the election of a candidate if it was proved that he had used government machinery during elections.
  9. Notification should be issued to the voters and electronic voting machines should be introduced after fool-proof arrangements.
  10. The candidate who secure 51 percent of the polled votes shall be declared as winner.

Question 7.
What is meant by proportional representation system.
Answer:
Under this system each party gets representation strictly in accordance with its voting strength. It means majority of electors would have majority of the representatives, but a minority of electors would have minority of representatives.

There are two methods in proportional representation. These are

A) Single Transperable Vote System :
The election of President, Vice President and members of Rajya Sabha etc in India is based on this system.

The main features of this system are.

  1. Each voter will have only one vote.
  2. But the voter has to distribute this vote according to his preference (First preference, second preference etc.).
  3. The candidate to be declared elected should secure the required QUOTA of votes.
  4. Provision for transper of votes.

QUOTA :
Under this system as stated above, A candidate in order to be declared elected need not secure majority votes. But he requires only quota of votes. For determining quota, two methods are followed :
A) Hare and Andrae method fixing Quota :
AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation 1
Ex:
Number of votes Cast = 14000
Number of seats-vacant =14
Quota = 1400 votes

B) Drop method :
AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation 3

Very Short Answer Questions

Question 1.
Relations between democracy and elections.
Answer:
Elections are the Central institution of democratic representative governments. In democracy, elections are periodic. Elected officials are accountable to the people, and they must return to the voters at prescribed intervals to seek their mandate to cantinue in office. This means that officials .in a democracy must accept the risk of being voted out of office. In democratic system the elections are also indusive.

The definition of citizen and voter must be large enough to include a large proportion of the adult population. Democratic elections are definitive. They determine the leadership of the government. Subject to the laws and constitution of the country, popularly elected representatives hold the reins of power.

Question 2.
Electronic voting machines. [Mar. 18, 16]
Answer:
An Electronic voting machine is a simple electronic device used to record votes in place of ballot papers and boxes which were used earlier in conventional voting system. The advantages of the EVM over the traditional ballot paper system are give below.

  • It eliminates the possibility of invalid and doubtful votes.
  • It makes the process of counting of votes much faster that the conventional system.
  • It reduces to a great extent the quantity of paper used, thus saving a large number of trees.
  • It reduces cost printing as only one sheet of ballot papers required for each polling station.

AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation

Question 3.
Territorial Representation.
Answer:
In the territorial or geographical representation system, the total electorate of the Country is divided into territorial units called constituencies which elect one or more representatives. The constituencies are more or less equal in size and populatiqn. All voters living in a particular constituency take, part in the election of representatives. Where one representative is elected from a constituency it is known as a single-member constituency.

Where more than one representative is elected, it is known as multi-member constituency. Most of the modem states, including India, have followed single. Members constituencies for the elections to the lower houses of the legislature.

Question 4.
Functional Representation. [Mar. 17]
Answer:
It is based on occupation. People engaged in the same kind of occupation have more things in common than people living in the same locality. Doctors, farmers, industrial workers, traders, journalists, lawyers, teachers etc., have more in common than those who live as neighbours. One man cannot represent all traders, Hence, representation should be on functional basis. A legislature representing such different occupational groups would be a proper forum where different interests would be projected and pleaded for. But it is not possible to provide representation to each and every occupation which are innumerable in number and the classification of profession is a touch task.

Question 5.
Composition of Election commission of India.
Answer:
Article 324 of the constitution has made the following provisions with regard to the composition of election Commission. Since its inception 1950 and till 15th Oct, 1989, the election commission functioned as a single member body consisting of the Chief Election Commissioner. On 16th October, 1989 the President of India appointed two more election Commissioners to cope up with the increased work of the Election Commission. Thereafter, the Election Commission started functioning as a multimember body consisting of 3 Election Commissioners.

Question 6.
Electoral Reforms.
Answer:
The various commitees and commissions have recommended various reforms that have to be introduced in our electoral system, election machinery and election process. These can be mentioned briefly here under.

  1. Lowering of voting age
  2. Deputation to Election commission
  3. Electronic voting machines
  4. Prohibition on the sale of liquor
  5. Number of proposers

Question 7.
Election offences.
Answer:
Some of the electoral offences as given below.

  1. Promoting enmity between classes or grounds of religion, race, community or language.
  2. Convening, holding or attending any public meeting during 48 hours before the end of poll.
  3. Causing disturbance at election meetings.
  4. Printing of election pamphlets, posters etc., without printers / publishers names and addresses.
  5. Violation of maintenance of secrecy of vote.
  6. Influencing of voting by officials connected with conduct of elections and police personnel.
  7. Disorderly conduct and disturbance in or near a polling station, indulging use of loud speakers etc.
  8. Canvassing within 100 meters of a polling station on the day of poll.
  9. Misconduct at the polling station or failure to obey the lawful direction of the presiding officer.
  10. Illegal hiring or procuring of vehicles for conveying voters to and from polling stations.
  11. Unlawful removal of ballot papers / EVMs from the polling stations.
  12. Booth capturing.

Question 8.
Corrupt practices in elections.
Answer:
Following are some important corrupt practices during the elections. They are.

  1. Briling a person to induce him/her to stand or not to stand as a candidate.
  2. Interference with free exercise of anybody’s electoral right.
  3. Threat with injury of any kind, including social ostracism, excommunication, divine displeasure or spiritual censure.
  4. Appeal on grounds of religion, caste, community or Language or the use of religious or national symbols.
  5. Publication of false statement about personal character and conduct of any
  6. Hiring or procuring of vehicles for free conveyance of voters.
  7. Incurring of election expenditure by a candidate in excess of the prescribed limit.
  8. Booth capturing.

Question 9.
Role of the Election Commission in India. [Mar. 17]
Answer:
Over the years, the Election Commission of India has emerged as an independent authority which has asserted its powers to ensure fairness in the election process. It has acted in an importial and unbaised manner in order to protect the sancity of the electoral process. The record of EC also shows that every improvement in the functioning of institutions does not require legal or constitutional change.

It is widely agreed that the Election Commission is more independent and assertive now than it was till twenty five years ago. This is not because the powers and constitutional protection of the Election commission have increased. The Election Commission has started using more effectively the powers it always had in the constitution.

In the past sixty five years, sixteen Lok Sabha Elections have been held. Many more state assembly elections and bye-elections have been conducted by the Election Commis-sion.

AP Inter 2nd Year Civics Study Material Chapter 11 Elections and Representation

Question 10.
Representation.
Answer:
In democracy people elect members to the legislatures. The elected members are the representatives of the people. They represent the people in the legislature. This process is called representation.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 10th Lesson Local Governments in India Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 10th Lesson Local Governments in India

Long Answer Questions

Question 1.
Explain the Functions of Panchayati Raj Institutions in India.
Answer:
Rural Governments in India after Independence were set up on the recommendations of the Balwant Raj Mehta Committee (1957) Earlier the new constitution (1950) made a reference of these bodies in Article 40 of the Directive Principles of State Policy.

The Rural Local Governments or Panchayati Raj Institutions are known by several names such as democratic decentralized institutions, local self-government institutions, three-tier democratic bodies, grass root level democratic agencies, etc. The Word Panchayati Raj denotes the name of local self-governments in rural in India.

At present Panchayati Raj Institutions in India are constituted on the basis of the Constitution (Seventy-Third Amendment) Act, 1992. Normally all the states in India (excepting those whose population is less than 20 lakhs) provided three-tier system in the rural areas. The nomenclature, however, could differ from state to state. These relate to

  1. Village Panchayats.
  2. Panchayat Samithi (Mandal Parishads) and
  3. Zilla Parishads

1) Village Panchayat:
Village (or) Gram Panchayat is the lowest tier in the Panchayat Raj System. Normally there will be a village panchayat for a minimum population of 250.

Composition of Gram Panchayat
Every Gram Panchayat comprises four organs, namely ;
i. Panchayat ii. Sarpanch, iii. Panchayat Secretary and iv. Garm Sabha.

Essential Functions :
Essential functions have to be carried out by the Gram Panchayat without fail. These include the following items.

  • Construction, repair and maintenance of roads and other public places.
  • Construction/repair and maintenance of drainage canals.
  • Construction and maintenance of burial grounds.
  • Erection and maintenance of electric polls.
  • Maintenance of birth and death registers.
  • Conducting vaccinations for controlling rabbis and other contagious diseases.
  • Provision of drinking water facilities.
  • Constructions, repair and maintenance of footpaths, causeways, culverts, public parks, play grounds.
  • Manufacture and sale of manures.
  • Maintenance of cattle farms and so on.

Discretionary Functions :
Gram Panchayat performs these functions subject to the availability of financial resources. These include the following.

  • Construction and maintenance of rest houses.
  • Construction and maintenance of primary schools, dispensaries, libraries, reading rooms, market places etc.
  • Establishment and maintenance of maternal and child welfare centers.
  • Mobilizing voluntary labour for community development works.
  • Publicizing the modem methods of cultivation.
  • Implementation of land reforms and so on.

2) Mandal Parishad :
Mandal parishad is the intermediate tier in the Panchayat Raj System.

Composition :
Every Mandal Parishad comprises four organs namely,

  1. Mandal Parishad
  2. Mandal Parishad President
  3. Mandal Parishad Development Officer and
  4. Mandal Mahasabha

Functions of Mandal Parishad :
Mandal Parishad performs the following functions.

  1. It takes steps for implementing various community development programmes.
  2. It makes arrangements for providing amenities like dispensaries, drinking water, vaccination and non-choking gas stoves.
  3. It implements several programmes like community educations communications, cooperation, cottage industries, women welfare, social welfare etc.
  4. It takes steps for raising production in agricultural sector through the provision of superior quality seeds, manures, pesticides, latest technology etc.
  5. It implements programmes for improving the health and strength of cattle by furnishing improved fodder, artificial insemination centers, cattle grazing etc.

3) Zilla Parishad :
Zilla Parishad is the upper tier of the Panchayat Raj System. There will be a Zilla Parishad in every district. Zilla Parishad is the superior local body at the district level and has the corporate status. It is known as Zilla Panchayat in Gujarat, Zilla Vikasparishat in Timil Nadu and Mahakum Council in Assom, District Development Council in Karnataka.

Composition :
Zilla Parishad comprises six organs, namely ;

  • Zilla Parishad
  • Zilla Parishad Chairman
  • Zilla Mahasabha
  • Chief Executive Officer
  • Standing Committees and
  • District Collector

Functions of Zilla Parishad :
Zilla Parishad performs the following functions

  1. It approves the annual budget of the Mandal Parishads in the District.
  2. It allocates the grants sanctioned by the union and state governments among the Mandal Parishads. ,
  3. It takes steps for implementing the directives of the union and state governments.
  4. It acts as the supervising and coordinating agency of various programmes of Mandal Parishad in the district.
  5. It conducts statistical surveys as per the guidelines of various union and state governments.
  6. It maintains secondary schools in the district.
  7. It renders advice to the union and state governments on financial matters of the Village Panchayats and Mandal Parishads.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 2.
Describe the various types of Urban Local Governments in India. [Mar. 17]
Answer:
As per the 74th Constitution Amendment Act, eight types of Urban Local Bodies are existing in India. They are mentioned as follows:

  1. Municipal Corporation
  2. Municipality
  3. Nagar Panchayat
  4. Notified Area Committee
  5. Town Area Committee
  6. Cantonment Board
  7. Township
  8. Port Trust
  9. Special Purpose Agency.

These may be explained as follows :
1. Municipal Corporation:
Municipal Corporation is an important category of urban local government. It is the highest local government institution working in each large urban area. It is constituted by a special Act of the State Government. The first Municipal Corporation was setup in the former presidency town of Madras in 1687. It was followed by similar Corporations in Bombay and Calcutta. The state government can declare the transformation of a Municipality into a Municipal Corporation when the population is at least three lakhs and annual income is four crores rupees.

Composition:
The number of members of each Municipal Corporation is determined on the basis of the population of the city concerned by the law passed by the state legislature. Every Municipal Corporation consists of four organs, namely (i) Corporation Council, (ii) Mayor, (iii) Commissioner and (iv) Standing Committees.

2. Municipalities :
Municipalities are a type of urban local bodies functioning below the level of Municipal Corporation and above that of the Nagar Panchayat / Notified Area. Normally, Municipalities are constituted for a population of 20,001 and above of when annual income is above Rs.60 lakhs. They are also constituted when annual income is above 20 lakhs acquiring from Trade Licenses, Profession taxes and non-agricultural sectors. Sometimes Panchayats are upgraded as Municipalities on the basis of population density and employment opportunities.

Municipalities are classified into five grades basing on their annual income. They are :

  1. Selection Grade Municipalities – Annual income over and above Rs. 4 Crores.
  2. Special Grade Municipalities – Annual income varying between Rs. 3 and 4 Crores.
  3. First Grade Municipalities – Annual income varying between Rs. 2 and 3 Crores:
  4. Second Grade Municipalities – Annual income varying between Rs. 1 and 2 Crores.
  5. Third Grade Municipalities – Annual income below Rs. One crore.

Composition :
There are four organs in every Municipality, namely, (i) Municipal Council, (ii) Municipal Chairman, (iii) Municipal Commissioner and (iv) Standing Committees.

3. Nagar Panchayat:
Nagar Panchayats are created for transitional areas (the area which is fast changing from a rural to an urban area) or for a very small urban area. For this purpose, several factors are taken into consideration; the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance of the area and some others.

Composition:
The strength of the members of Nagar Panchayat is fixed by the State Legislature from time to time. They are directly elected by the people of the area on the basis of adult franchise. For the purpose of election, the areas of Nagar Panchayat is divided into wards and each ward elects one member. Besides the elected members, the Member of the State Legislative Assembly (M.L.A) representing that area is also the ex-officio member of Nagar Panchayat. Every Nagar Panchayat elects one President and one Vice-President amongst its members. They are elected by all the elected members. The President presides over its meettings.

4. Notified Area Committee :
This is constituted either for a fast developing town or an area not fulfilling the conditions for the creation of Municipality. As it is created through a special notification of the state government, it is known as Notified Areas Committee. It does not possess statutory position. It will have a Chairman and some members who are nominated by the state government. Its functions are more or less same as9 that of a Municipality.

5. Town Area Committee :
Town area committee is setup by an act of State Legislature. It fulfils the public needs of a small town. It will have a chairman and members nominated by the state government. It performs limited functions like street lighting, drainage etc. Its authorities take steps for improving the conditions of the people living in the town area.

6. Cantonment Boards :
Cantonment Boards are established in India under the Cantonment Act of 1924. At present there are 62 Cantonment Boards in India. These bodies take steps for improving the conditions of civilian population and military personnel in their jurisdiction. There are three types of Cantonment Boards in India. They are created by an Act of the defense ministry. Each Board comprises some members belonging to the elected, nominated and ex-officio categories. There will be a General Officer on Command (GOC) for every Cantonment Board.

7. Township :
Township is established by the public sector undertakings to provide basic civic amenities to its personnel. It has no elected members. There will’ be a Town Administrator for every Township, He is appointed by the concerned ministry of union government. Its services are meant not for the general public but for the personnel working in the public sector undertakings.

8. Port Trust:
Port Trust is setup in the areas where port personnel are in considerable- member. It manages the affairs of ports. It takes proper steps for protecting the interests of personnel in the port areas. The union government constitutes port affairs committee. The committee comprises both nominated and elected members.

9. Special Purpose Agencies :
These agencies are meant for tackling some special issues faced by the people. They perform some peculiar functions for the people residing in municipalities and other notified urban areas. They are established by the special Acts of state legislature. Sometimes they came into vogue through a special order of the state government. Housing Board, Water Supply, Undertakings, Electricity Generation and Distributions Grids, Urban Development Authorities etc., are some examples of these Agencies.

Question 3.
Mention briefly the main provisions of the 73rd Constitution Amendment Act.
Answer:
The Union Government headed by the Prime Minister P.V Narasimha Rao strongly felt the need for immediate grant of Constitutional status to the Panchayat Raj Institutions. It introduced a Bill to that effect in the Parliament in September 1991. Later, the bill was referred to a joint select committee which studied the former and submitted its report in July 1992.

The bill was accepted by the Parliament and the same was referred to the state legislatures for their approval. As majority state legislative assemblies accepted the Bill, it became an Act in the name of the Constitution (Seventy Third Amendment) Act, The Act came into force from April 24, 1993.

The Act reinserted Part IX which was deleted by the Constitution (Seventh Amendment) Act, 1956 and added a new Schedule, namely 11th schedule. The Act deals with Articles 243 to 243 (O) of the Indian Constitution.

Salient features
The 73rd Constitutional Amendment Act of 1992 has the following salient features:

  1. The Act defined clearly certain terms like District, Gram Sabha, Panchayat, Village etc.,
  2. It constituted a Gram Sabha for every village which acts as the legislative body at the village level.
  3. It made obligatory for every state to implement three tire system of Panchayat Raj i.e., Panchayat at the Village, intermediate and district levels.
  4. It insisted every state legislature to make laws for the composition of Panchayat on uniform basis. It further specified direct elections to panchayat based on territorial constituencies. It provides right to vote to the chairpersons of Panchayat and other members whether directly elected or not.
  5. It provided reservation in every Panchayat for Schedule Castes and Schedule Tribes in proportion to their population to the total population in the Panchayat area and women not less than 1/3rd of the total seats (Andhra Pradesh Government enhanced the Women Reservation up to 50%).
  6. It specified the duration of Panchayat as five years and insisted on holding elections before the expiration of the term or in case of dissolution within six months.
  7. It prescribed the eligibility and disqualifications of the candidates in local government.
  8. It provided for the creation of a Finance Commission for local bodies.
  9. It provided for auditing the accounts of the Panchayats by the state account and audit officers.
  10. It also provided for State Election Commission for conducting elections to the local bodies.
  11. It stated that union territories shall follow the directives of the President of India in constituting or abolishing Panchayats.
  12. It mentioned some exemptions to the states having administrative councils in scheduled areas.
  13. It provided for special Tribunals for solving election disputes.

Question 4.
Explain briefly the important provisions of 74th Constitution Amendment Act.
Answer:
The Constitution (Seventy Fourth Amendment) Act, 1992 was approved by the Parliament in December, 1992. It was regarded as a progressive step in strengthening the urban local bodies in India. It provided a common framework for the effective functioning of these bodies. The Act came into force on June 1, 1993.

Main Provisions :

  1. The Act gave Constitutional status to the urban local bodies in India for the first time. It introduced a new part in the Constitution, namely part IX-A.
  2. It incorporated the 12th schedule in the Constitution.
  3. It listed out 18 subjects under the jurisdiction of urban local bodies.
  4. It gave definitions of various terms concerning the urban local bodies. It constituted metropolitan area for urban areas having a population of ten lakhs or more.
  5. It provided for the Constitution of various urban local bodies such as Municipal Corporation, Municipal Council, Nagar Panchayat etc. The Act authorized the state governments to designate and demarcate the urban local bodies as and when necessary.
  6. It specified the composition of the Municipalities. It declared that the elected members of the Legislative Assembly and the Lok Sabha of the concerned area will act as ex-officio members of the Municipalities. It also authorized and members of Legislative Council and the Rajya Sabha as members of Municipalities subject to their voting enumeration in the respective areas.
  7. It authorized the state legislature to make legislation for the composition of ward committees in Municipalities.
  8. It provided for reservation of some seats in urban local bodies for Scheduled Castes and Scheduled Tribes in proportion to their population in municipal areas. It also enabled one – third reservation for women in municipal areas and to the offices of Chairman / Chairperson of Municipalities on rotation basis.
  9. It prescribed the uniform term for 5 years for Municipalities. It also clarified that elections shall be held within the six months after its dissolution.
  10. It specified that the persons who are disqualified to become members of Legislative Assembly shall also become disqualified as members of Municipality. It also prescribes 21 years of age for becoming a member of Municipality.
  11. It empowered the state legislature to make laws enabling the Municipalities to impose and collect taxes, allocate funds and receive Grant-in-aid from the state government.
  12. It enabled the state government to appoint the State Finance Commission for every five years for making recommendations (to the Governor) on the principles for distribution of Grants-in-aid among the urban local bodies.
  13. It allowed the state legislature to make legislation for the audit of the accounts of urban local bodies.
  14. It provided for the appointment of State Election Commission to conduct, supervise, direct and control the elections to the urban local bodies.
  15. It also enabled the state legislature to create a district planning committee in each district for consolidating the plan activities.
  16. It provides for the establishment of metropolitan planning committees state.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 5.
Estimate the Powers and Functions of the District Collector. [Mar. 18, 16]
Answer:
Power and Functions of District Collector: The District Collector enjoys vast power and performs several functions as the head of the district administration. These may be explained as follows :

A) The Collector as District Revenue Officer :
The Collector is the Chief District Revenue Officer. He, in that capacity, serves as the chief guide to the farmers in the district by fulfilling several obligations. His revenue functions include various activities such as collection of land revenue, sanction of agricultural loans to farmers, rescuing the farmers in times of natural calamities by assessing the loss incurred by them, rendering assistance to the union and state authorities in emergency relief measures etc.

B) The Collector as District Magistrate:
The Collector acts as the District Magistrate. He will have supervision over the activities of the district police personnel. He sees that law and order conditions in the district are normal. For this purpose he will be assisted by a large number of police personnel. The district superintendent of police and other police officers owe responsibility to the Collector in matters such as supervision over police personnel prisons etc,. The Collector can inspect the police stations in the district. He is empowered to issue prohibitory orders on the occasion of breakdown of law and order. He can issue firing orders when all peaceful efforts failed in the restoration of normal.

C) The Collector as Chief Coordinator :
The District Collector acts as the chief co-ordinator of various government departments in the district. He acts as the chief counsel and co-ordinator of the departments such as agriculture, irrigation, co-operation and labour affairs. The heads of these departments shall oblige and implement the suggestions and guidelines of the collector in the district. Even though these heads formulate their policies independently, they are answerable to the District Collector in their discharge of their obligations.

D) The Collector as District Electoral Officer :
The Collector acts the chief district electoral officer. He serves as the main agent of the Election Commission of India for conducting elections to the various representative bodies in the district. He takes steps for conducting the elections in fair and impartial manner. These include preparation of electoral list and its modification, hearing public grievances on voters list, registration of new voters, appointing returning officers assistant returning officers etc.

E) The Collector as the Chief Census Officer:
The Collector acts as the chief census officer in the district. He on behalf of the union and state governments, takes steps for holding census operations in the district for every ten years. He also sees that the statistical data regarding the number of milch cattle, trees and domesticated animals in the district is collected properly. He also compiles such other information as required by the higher ties in regard to the construction of houses for the poor, family welfare, women erment, rural infrastructure etc.

F) The Collector as Permanent invitee of Local Bodies :
The District Collector is a permanent invitee to the meetings of Panchayat Raj and urban local bodies in the district. He acts as a main link between the union and state governments and district local bodies on various matters. He participates in the normal/emergency meetings of Zilla Parishad and mandal parishads in the district. He sends confidential reports to the state government on the nature of functioning of these bodies. He conducts the meeting meant for considering the no confidence motion against the Zilla Parishad chairman.

Other Functions :
This District Collector also performs the following functions.

  1. Matters concerning the welfare of Ex-servicemen.
  2. Provision of irrigation facilities.
  3. Supervision over sub treasuries.
  4. Co-ordinating the activities of various government departments.
  5. Supervising the training programmes for Junior Officers.

Role of District Collector in Local Government:
The District Collector plays a crucial role in the affairs of local governments in the district. He serves as the friend, philosopher and guide to the common men living in the district. He also serves as a link between people and local bodies in the district. Normally the common men seek guidance and solace from the Collector in times of natural calamities and other unforeseen contengencies.

The Collector makes recommendations to the state government in regard to the working of the local bodies in the district. His valuable remarks are required for constituting new gram panchayats and mandal parishads in the district. The entire administrative, revenue, police, health, educational and agricultural personnel working in rural areas depend to a great extent upon the advice and suggestions forwarded by the Collector on may occasions.

He sees that the farmers in the district receive sufficient agricultural inputs such as fertilizers, water, rural credit, marketing facilities etc. He supervises the activities of village extension officers and sees that the farmers receive various types of assistance for carrying on their agricultural, operations smoothly. He also sees that all persons below poverty line will receive, ration and pension facilities.

The fact that the Collector heads more than one hundred committees at the district level demonstrates his role in district affairs. He, like the Chief Minister at the state level, will have tremendous influence and powers in the district. Many programmes of union and state governments like National Rural Employment Guarantee Scheme (NREGS), Pradhan Mantri Gram Sadak Yojana (PMGSY), Janani Suraksha Yojana (JSY), Aam Admi Bima Yojana (AABYj, Rural Landless Employment Guarantee Programme (RLEGP). Prime Ministers Employment Generation Programme (PMEGP).

The union and state governments, rely on the District Collector in tackling the financial, political and cultural matters of the people living in local areas, They nominate the District Collector as the chairman, co-ordinator or secretary of the above programmes at the district level. People regard the Collector as a repository of authority functioning independently with dedicated spirit. Eventhough some states like Gujarath and Maharashtra relieved the Collector from the perspective.

Short Answer Questions

Question 1.
Write briefly about the Historical background of Local Governments in India.
Answer:
Historical Background: Local governments in India have a long historical background. The Rigveda, the oldest of four Vedas, mentioned two institutions namely, Sabha and Samithi which performed several administrative and political functions at community level. They were the effective administrative state structures at local levels in ancient period. They relate to village panchayats and caste panchayats . Which managed the administrative and judicial affairs of a village community. These institutions continued for several years even without the effective support of the ruling classes of the time. Many eminent writers like Megasthanes, Kautilya and Fahien have cited the existence of these bodies in their writings.

In medieval period, village panchayats flourished during the chola dynasty in South India. The cholas were renowned for their patronage of the local bodies. However, the local governments of the present form is attributed to the efforts of some British officers at higher levels. They developed these bodies to promote the colonial interests. Lord Mayo’s Resolution (1870) and Lord Rippon’s Resolution (1882) paved the way for the progress of these institutions in India. Earlier the East India Company established the Municipal Corporation of Madras in 1688 with the consent of Emperor George II.

Some Mayor courts wefe set up in Madras in 1726 for collecting taxes and administering, justice. The Regulating Act of 1773 paved the way for the establishment of local governments at Calcutta (Kalkota), Madras and Bombay (Mumbai). Lord Rippon, the Governor General of India moved the famous resolution for devolving financial and administrative powers to the local governments. His resolution is known as the Magnacarta of Local Governments in India.

He was described as the father of local self-governments in India. Later on the successive British rulers in India have initiated many steps for providing more authority to the local bodies. Some of the notable legal enactments are Bengal Municipalities Act, 1884; Bengal Local Governments Act, 1885; Bengal Village self-government Act, 1919 etc. The Royal Commission on Decentralization headed by Sir Charles Hobhouse (1906) offered valuable suggestions for setting up of village panchayats, constitution of district boards, entrusting primary obligations to municipalities etc. The Government of India Act, 1919 introduced diarchy at state level. It gave impetus to the local governments. It empowered the Indian ministers to take decisions in regard to the maintenance of local bodies.

The Government of India Act, 1935 assigned the provincial governments with the obligation of making the local bodies energetic and efficient. It placed the subject of ‘Local Self Government’ under Entry 12 of the provincial governments. Consequently many provincial governments passed Acts delegating the local governments the powers of administration including criminal justice to the panchayats. Prominent leaders of national movement like Mahatina Gandhi supported the cause of local governments.

Question 2.
Explain the advantages of Local Government.
Answer:
Definition:
Local Government is defined in many ways by different political scientists. Some of them are cited below :

According to Sidgewick “Local government consists of certain subordinate bodies which have defined powers of making rules and regulations within their prescribed area of administration.” Prof. Finer. H defined that “the Local Government means authority to determine and execute measure within a restricted area inside and smaller than the whole state.” In the words of Duane Lockard “Public Organization authorized to decide and administer a large range of public policies within its small territory”.

Advantages- of Local Governments? Local governments have the following advantages :

  1. Local government institutions provide extensive range of service to the people.
  2. They lead to efficiency of administration at local as well as state and national level.
  3. They lead to economy in administration.
  4. They cultivate spirit of self – help and self – dependence.
  5. They promote spirit of liberty among people.
  6. The Local Governments facilitate the ventilation of people’s grievances and provide effective solution to local problems.
  7. They ensure the participation of the people in the formulation and implementation of development programmes at grass root level.

Question 3.
What are the Functions of Panchayat Secretary?
Answer:
Every Panchayat shall have a full time Secretary who is an officer of the government. He shall draw his salary and allowances from the Panchayat fund as per government rules. He will be iri charge of the office of the Panchayat. He will work under the direct supervision of the Panchayat Sarpanch.
Powers and Functions of the Panchayat Secretary.

Panchayat at Secretary performs the following functions. They are :

  • Preparation of budget and annual administration report.
  • Preparation of monthly / quarterly statements of accounts.
  • Maintenance of cash book.
  • Keeping all records of the Panchayat in safe custody.
  • Allotment of duties to the staff posted in Gram Panchayat.
  • Submission of application for grant-in-aid and maintain grant-in-aid register:
  • Visit the work sites and assess the work in progress.
  • Attend to complaints relating to developmental works etc.

Question 4.
What do you know about Gram Sabha?
Answer:
Gram Sabha :
There will be a Gram Sabha in every Panchayat. It comprises all the adult citizens who have been entitled to vote. It meets at least twice a year usually after Rabi and Kharif crops are harvested. It discusses and approves the administrative and audit reports. It identifies the beneficiaries of development schemes. It takes steps for mobilizing voluntary labour for community welfare programmes.

In many states Gram Sabhas are known with the same name. However, they are called Panchayats in Bihar and Palisabhas in Odisha. The Union Government declared the year 2009 – 2010 as the year of Gram Sabha on the eve of golden jubilee celebrations of village Panchayat. It directed the state governments to make arrangements for convening Gram Sabha on April 14 of every year. (Second one in the month of October)

Question 5.
Write a brief note on Mandal Parishad.
Answer:
Mandal Parishad is the intermediate tier in the Panchayat Raj System. It is set up according to the statutes of state government. In different states, the Panchayat Samiti has been given different names. Tamil Nadu calls them Panchayat Union Council, in Karnataka as the Taluka Development Board, in Gujarat as the Taluka Panchayat. However, the most popular name happens to be the Panchayat Samithi. 4
Composition
Every Mandal Parishad comprises four organs namely,

  1. Mandal Parishad
  2. Mandal Parishad President
  3. Mandal Parishad Development officer and
  4. Mandal Mahasabha

Question 6.
Explain the composition of Zilla Parishad.
Answer:
Composition
Zilla Parishad comprises six organs, namely ;

  1. Zilla Parishad
  2. Zilla Parishad Chairman
  3. Zilla Mahasabha
  4. Chief Executive Officer
  5. Standing Committees and
  6. District Collector

i) Zilla Parishad :
Zilla Parishad is the legislative wing at the district level. It comprises various types of members, i.e., elected, co-opted and ex-officio members. District level authorities like the District Collector, Chairmen of District Co-operative Central Bank, District Co-operative Marketing Society and Zilla Grandhalaya Samastha participate in the meetings as permanent invitees. Besides, the Members of State Legislative Assembly and Lok Sabha participate in the meetings as ex – officio members.

ii) Zilla Parishad Chairman :
The Chairman, being the political head, presides over the meeting of Zilla Parishad. He is elected by the elected members of Zilla Parishad, i.e., ZPTCs, MPs, MLAs and MLCs of the district concerned. The Chairman presides over the ordinary and special meetings of the Zilla Parishad. He conducts the meetings with dignity.

He permits the members for moving resolutions, allocates time for discussion and conducts voting on the resolutions. He also presides over the meetings of Zilla Mahasabha and some standing committees. He acts as a link between Zilla Parishad and the State Government. He-will have administrative control over the Z.P. Chief Executive Officer in the implementation of various resolutions. –

iii) Zilla Mahasabha :
There will be a Zilla Mahasabha in every Zilla Parishad. It comprises a chairman and some other members of Zilla Parishad. It serves as an advisory body to the Zilla Parishad. The Zilla Parishad Chairman presides over its meetings. The Chief Executive Officer attends its meetings in Ex-officio capacity. It performs three important functions, namely

  1. Examining the annual budget and audit reports of Zilla Parishad
  2. Administrative report of the previous year and
  3. Other matters of Zilla Parishad.

iv) Chief Executive Officer (C.E.O):
There will be a Chief Executive Officer in every Zilla Parishad. He is appointed by the state government and responsible to the State Government and Zilla Parishad in exercise of his powers and functions. He serves as the administrative head of Zill Parishad.

v) Standing Committees:
There are seven Standing Committees in Zilla Parishad. They render advice to the Zilla Parishad on several matters like planning, finance, agriculture, rural development, women, social welfare, education, health etc. The Chief Executive Officer prepares the agenda of the meeting and decides the venue of the standing committees on the advice of Zilla Parishad Chairman.

vi) The District Collector :
The District Collector participates in Zilla Parishad and standing committee meetings as a permanent invitee.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 7.
Elucidate various Urban Local Bodies in India.
Answer:
As per the 74th Constitution Amendment Act, eight types of Urban Local Bodies are existing in India. They are mentioned as follows :

  1. Municipal Corporation
  2. Municipality
  3. Nagar Panchayat
  4. Notified Area Committee
  5. Town Area Committee
  6. Cantonment Board
  7. Township
  8. Port Trust
  9. Special Purpose Agency,

1) Municipal Corporation:
Municipal Corporation is an important category of urban local government. It is the highest local government institution working in each large urban area. It is constituted by a special Act of the State Government. The first Municipal Corporation was setup in the former presidency town of Madras in 1687. It was followed by similar Corporations in Bombay and Calcutta. The state government can declare the transformation of a Municipality into a Municipal Corporation when the population is at least three lakhs and annual income is four crore rupees.

2) Municipalities :
Municipalities are a type of urban local bodies functioning below the level of Municipal Corporation and above that of the Nagar Panchayat / Notified Area. Normally, Municipalities are constituted for a population of 20,001 and above or when annual income is above Rs. 60 lakhs. They are also constituted when annual income is above 20 lakhs acquiring from Trade Licenses, Profession taxes and non-agricultural sectors. Sometimes Panchayats are upgraded as Municipalities on the basis of population density and employment opportunities.

3) Nagar Panchayat:
Nagar Panchayats are created for transitional areas (the area which is fast changing from a rural to an urban area) or for a very small urban area. For this purpose, several factors are taken into consideration; the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance of the area and some others.

4) Notified Area Committee :
This is constituted either for a fast developing town or an area not fulfilling the conditions for the creation of Municipality. As it is created through a special notification of the state government, it is known as Notified Areas Committee. It does not possess statutory position. It will have a Chairman and some members who are nominated by the state government. Its functions are more or less same as that of a Municipality.

5) Town Area Committee :
Town area committee is setup by an act of State Legislature. It fulfils the public needs of a small town. It will have a chairman and members nominated by the state government. It performs limited functions like street lighting, drainage etc. Its authorities take steps for improving the conditions of the people living in the town area.

6) Cantonment Boards :
Cantonment Boards are established in India under the Cantonment Act of 1924. At present there are 62 Cantonment Boards in India. These bodies take steps for improving the conditions of civilian population and military personnel in their jurisdiction. There are three types of Cantonment Boards in India. They are created by an Act of the defense ministry. Each Board comprises some members belonging to the elected, nominated and ex-officio categories. There will be a General Officer on Command (GOC) for every Cantonment Board.

7) Township :
Township is established by the public sector undertakings to provide basic civic amenities to its personnel. It has no elected members. There will be a Town Administrator for every Township. He is appointed by the concerned ministry of union government. Its services are meant not for the general public but for the personnel working in the public sector undertakings.

8) Port Trust:
Port Trust is setup in the areas where port personnel are in considerable member. It manages the affairs of ports. It takes proper steps for protecting the interests of personnel in the port areas. The union government constitutes port affairs committee. The committee comprises both nominated and elected members.

9) Special Purpose Agencies :
These agencies are meant for tackling some special issues faced by the people. They perform some peculiar functions for the people residing in municipalities and other notified urban areas. They are established by the special Acts of state legislature. Sometimes they came into vogue through a special order of the state government. Housing Board, Water Supply, Undertakings, Electricity Generation and Distributions Grids, Urban Development Authorities etc., are some examples of these Agencies.

Question 8.
What do you know about the Municipalities?
Answer:
Municipalities are a type of urban local bodies functioning below the level of municipal corporation and above that of the Nagar Panchayat. Normally Municipalities are constituted for a population of 20,001 and above or when annual income is above Rs. 60 lakhs.
Municipalities are classified into five grades basing on their annual income. They are :

  1. Selection Grade Municipalities – Annual income over and above Rs. 4 Crores.
  2. Special Grade Municipalities – Annual income varying between Rs. 3 and 4 Crores.
  3. First Grade Municipalities – Annual income varying between Rs. 2 and 3 Crores.
  4. Second Grade Municipalities – Annual income varying between Rs. 1 and 2 Crores.
  5. Third Grade Municipalities – Annual income below Rs. 1 Crore.

Composition :
There are four organs in every Municipality, namely, (i) Municipal Council, (ii) Municipal Chairman, (iii) Municipal Commissioner and (iv) Standing Committees

The structure, powers and functions of these may be explained as under:

i) Municipal Council:
Municipal Council is the deliberative body of the Municipality. It consists of some (i) elected, (ii) co-opted and (iii) ex-officio members. Registered voters in the municipal area elect the first category of members. They are called councillors. The elected members will in turn elect the second category of members. They are called co¬opted members. The District Collector and the Municipal Commissioner; The members of the Lok Sabha and State Legislative Assembly of the area,concerned are called as the ex¬officio members.

Normally the Council meets once in a month. The Municipal Commissioner prepares the agenda of the Municipal Council after consulting the Municipal Chairman. Some seats in the Municipal Council are reserved for Scheduled Castes, Scheduled Tribes, Backward Classes and women. Municipal Council considers the matters relating to the Municipality.

ii) Municipal Chairman :
Municipal Chairman is the political head of the Municipal Council. He is elected by the councillors. He is the first citizen of the Town. The Chairman conducts the meetings of the Municipal Council. All the correspondence of the Municipality shall be carried on in his name.

iii) Municipal Commissioner :
Municipal Commissioner is the administrative head of the Municipality. He is responsible for discharging his functions in the Municipal Council and the State Government.

iv) Standing Committees :
Every Municipality consists of some standing committees. These Committees act as advisory bodies to the Municipality on matters of finance, works, health, education, women welfare, and welfare of the backward classes etc. Municipal Chairman presides over the meeting of these committees. The standing committees establish a liaison with the routine administrative matters of the Minicipality.

Functions of Municipality: Every Municipality, like that of the Municipal Corporation, performs two types of functions, namely (i) essential and (ii) discretionary.

Essential Functions
Essential functions of the Municipality include the following:

  1. Maintenance of birth and death registers.
  2. Establishment and maintenance of elementary, upper primary and secondary schools.
  3. Provision of purified drinking water and street lights.
  4. Maintenance of public health and sanitation.
  5. Construction and maintenance of roads and buildings.
  6. Safeguarding and preserving municipal properties etc.

Discretionary Functions
A Municipality performs the following discretionary functions.

  1. Reclamation of unhygienic places.
  2. Maintenance of parks, museums, gardens, rest houses, regarding rooms etc.
  3. Maintenance of child, women welfare and maternity centers.

Sources of Income
Every Municipality has the following five sources of income.

  1. Taxes collected from people
  2. Fees and duties
  3. Income in the form of rent from markets and buildings.
  4. Public borrowings and grants and
  5. Public contributions.

Question 9.
Write any three Functions of District Collector?
Answer:
1. Revenue Administration :
Revenue administration is a traditional function of the- Collector, (a) The Collector makes arrangements for the collection of land revenue (b) He hears the difficulties of the farmers on land revenue matters (c) He receives petitions from the farmers and tries to settle their problems (d) He collects land revenue. In this respect, he is assisted by officials of revenue department like Revenue Divisional Officers, Mandal Revenue Officers, Revenue Inspectors etc., (e) He is responsible for Land reforms, Land acquisition etc. (f) He recommends remissions of Land revenue during famines or other calamities, (g) He maintains land revenue records and agricultural statistics of the district.

2. District Magistrate:
The Collector acts as the District Magistrate. In that capacity, he

  • Issues orders for the maintenance of law and order in the district.
  • Disposes petitions and complaints from the private individuals and the Government.
  • Imposes prohibitory orders during disturbances.
  • Supervises Subordinate Courts.
  • Take steps for the provision of better facilities to prisoners.
  • Inspects police stations ….etc.

3. As a District Election Officer:
District Collector is the returning officer for elections to Parliament and State Legislature within the district. It is his responsibility to coordinate the election work at district level and conduct the polls freely and peacefully.

Thus the Collector plays a key role in district administration. He is considered as the friend, philosopher and guide of the people in the district.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 10.
Estimate the Role of a District Collector.
Answer:
The fact that the Collector heads more than one hundred committees at the district level demonstrates his role in district affairs. He not only presides over such meetings but also takes steps for implementing the decisions taken there of. He visits various mandals and villages in the district for about twenty days in every month and supervises the development of local bodies at the field level. He, like the chief minister at the state level, will have tremendous influence and powers in the district.

Many programmes of union and state governments like National Rural employment Guarantee Scheme (NREGS), Pradhan Mantri Gram Sadak Yojana (PMGSY), Janani Suraksha Yojana (JSY), Aam Admi Bima Yojana (AABY), Rural Landless Employment Guarantee Programme (RLEGP). Prime Ministers Employment Generation Programme (PMEGP), Valmiki Ambedkar Awas Yojana (VAMBAY), National Rural Health Mission (NRHM), Mid-Day Meal (MDM) scheme etc, depend upon the dynamic leadership of the district collector.

The union and state governments, rely on the District Collector in tackling the financial, political and cultural matters of the people living in local areas. They nominate the District Collector as the chairman, co-ordinator or secretary of the above programmes at the district level. People regard the Collector as a repository of authority functioning independently with dedicated spirit.

Even though some states like Gujarath and Maharashtra relieved the Collector from the perspective of development functions, even today it is popularly felt about the prominence of the Collector due the popular confidence and credibility. The people of North India prefer to address the District Collector as their maa- baap (mother and father).

Question 11.
Explain the concept of Smart village.
Answer:
The concept of Smart Village is the recent development in Panchayat Raj System in A.P inaugurated by the Chief Minister of Andhra Pradesh Nara Chandrababu Naidu in 2015. Andhra Pradesh is committed to achieve holistic, inclusive and sustainable development of the state. The state has a vision “Swarnaandhra Vision 2029” to be a developed State and to be among the best three states in the country. To realize this vision, the government has adopted the mission based approach to create the social and economic infrastructure; has initiated campaigns to create awareness seeking participation of the stakeholders.

A ‘Smart Village / Ward’ displays sustainable and inclusive development with all sections of its community enjoying a high standard of living. This is achieved when the village/ward excels in the following indicators :

  1. Every household has vibrant livelihood opportunities and or micro-enterprise.
  2. Home for all – with access to toilet, safe- drinking water, and power.
  3. Open defecation free.
  4. 100% institutional deliveries.
  5. No maternal deaths.
  6. No infant deaths within one year of birth.
  7. Malnutrition free (children below 5 years of age).
  8. Zero school drop outs of boys and girls up to 12th class.
  9. No girl-child marriages (girls below 18 years of age).
  10. Functional toilet, portable water, electricity available in Anganwadi Centres, School, health centre, GP Building / ward.
  11. Gram Sabha / Ward Sabha held four times a year with 2/3rd attendance.
  12. Every village household has a functional bank account/Prime Minister Jan Dhan Bank Account.
  13. Every farm has soil health card and diversification with livestock, trees, etc.
  14. Gram Panchayat / Ward has it own dynamic development plan prepared by community participation.
  15. The Village has green trees all over its geographic boundaries.
  16. The Village has functional water conservation and harvesting structure.
  17. The Village has functional grievance redressal system.
  18. The Village has functional Village Information Centre, Village Computer Lab, and Mee-Seva Centre. .
  19. The Village has telecom/intemet connectivity.
  20. The Village has functional solid/liquid waste management system.

Very Short Answer Questions

Question 1.
Rural Local Government.
Answer:
Rural Local Governments or Panchayati Raj institutions in India, signifies the system of Rural Local Governments. They serve as the backbone of India’s political culture. These institutions are of three types, popularly known as three tier system.

  1. Gram Panchayats
  2. Mandal Parishads and
  3. Zilla Parishads .

Question 2.
The Constitution (Seventy Third Amendments) Act, 1992.
Answer:
The Union Government headed by the Prime Minister P. V Narasimha Rao strongly felt the need for immediate grant for constitutional status to the panchayat raj institutions. It introduced a bill to that effect in the Parliament in September 1991. After the bill was reffered to a joint select committee in July 1992. The bills was accepted by the Parliament and the same reffered to the State Legislatures for their approval. It become an act in the name of Seventy Third Amendment Act, 1992.

Question 3.
Gram Sabha.
Answer:
There will be a Gram Sabha in every Panchayat. it comprises all the adult citizens who have been entitled to vote. It meets at least twice a year. It discusses and approves the administrative and audit reports. It identifies the beneficiaries of development schemes. It takes steps for mobilizing voluntary labour for community welfare programmes. The Union Government directed the state governments to make arrangements for convening Gram Sabha on April 14 of every year. (Second one in the month of October).

Question 4.
Zilla Parishad.
Answer:
Zilla Parishad is the upper tier of the Panchayat Raj System. There will be a Zill Parishad in every district, zilla Parishad is the superior local body at the district level and has the corporate status.
Zilla Parishad comprises six organs, namely;

  • Zilla Parishad
  • Zilla Parishad Chairman
  • Zilla mahasabha
  • Chief Executive Officer
  • Standing Committees and
  • District Collector

Question 5.
M.P.D.O. [Mar. 18, 16]
Answer:
Mandal Parishad Development Officer (MPDO) is the administrative head of Mandal Parishad the plays a crucial role in the administrative affairs of the Mandal Parishad. He prepares the agenda of the parishad meetings and participates in the meeting and renders advice to the members on several matters of the Mandal Parishad. He prepares the annual budget of the Mandal Parishad. He takes steps for the effective working of the Mandal Parishad.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 6.
Mandal Parishad.
Answer:
Mandal Parishad is the intermediate tier in the Panchayat Raj System. It is set up according to the statutes of state Government.
Every Mandal Parishad comprises four organs namely

  1. Mandal Parishad
  2. Mandal Parishad President
  3. Mandal Parishad Development Officer and
  4. Mandal Mahasabha

Question 7.
Zilla Mahasabha.
Answer:
There will be a Zilla Mahasabha in every Zilla Parishad. It comprises a chairman and some other members of Zilla Parishad. It serves as an advisory body to the Zilla Parishad.

The Zilla Parishad Chairman presides over its meetings in ex-officio capacity. It performs three important functions namely.

  1. Examining the annual budget and audit reports of Zilla Parishad.
  2. Administrative report of the previous year..
  3. Other matters of Zilla Parishad.

Question 8.
Zilla Parishad Standing Committees.
Answer:
There are seven standing committees in Zilla Parishad. They render advice to the Zilla Parishad on several matters like planning, finance, agriculture, rural development, women social welfare, education, health etc. The Chief Executive Officer prepares the agenda of the meeting and decides the venture of the standing committees on the advice of Zilla Parishad Chairman. The District collector participates in Zilla Parishad and standing committees meetings as a permanent invitee.

Question 9.
Zilla Parishad Chief Executive Officer.
Answer:
There will be a Chief Executive Officer in every Zilla Parishad. He is appointed by the state government and responsible to the State Government and Zilla Parishad in exercise of his powers and functions. He serves as the administrative head of Zilla Parishad.

He plays a key role in preparing the annual budget and agenda for the general meetings of the Zilla Parishad in consultation with Zill Parishad Chairman. He will have administrative control over the personnel, assets and records of the zilla parishad. He takes necessary steps for implementing the decisions of zilla parishad, zilla mahasabha and standing committees.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 10.
Municipal Council.
Answer:
Municipal council is the deliberative body of the Municipality. It consists of some i) Elected ii) co-opted and iii) ex-officio members. Registered voters in the municipal area elect the first category of members. They are called councillors. The elected members will in turn elect the second category of members. They are called co-opted members. The District collector and the municipal commissioner; the members of the Lok Sabha and State Legislative Assembly of the area concerned are called as the ex-officio members. Normally the. Council meets once in a month. Municipal council considers the matters relating to the Municipality.

Question 11.
Nagar Panchay at.
Answer:
Nagar Panchayats are created for transitional areas (the area which is fast changing from a rural to an urban area) or for a very small urban area. For this purpose, several factors are taken into consideration; the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic important of the area and some others.

Question 12.
Notified Area Committee.
Answer:
This is constituted either for a fast developing town or an area not fulfilling the conditions for the creation of Municipality. As it is created through a special notification of the state government, it is known as notified areas committee, It does not possess statutory position. It will have a chairman and some members who are nominated by the state government. Its functions are more or less same as that of a municipality.

Question 13.
Cantonment Boards.
Answer:
Cantonment Boards are established in India under the Cantonment Act of 1924. At present there are 62 Cantonment Boards in India. These bodies take steps for improving the conditions of civilian population and military personnel in their jurisdiction. There are three types of Cantonment Boards in India. They are created by an Act of the defense ministry. Each Board comprises some members belonging to the elected, nominated and ex-officio categories. There will be a General Officer on Command (GOC) for every Cantonment Board.

Question 14.
Town Area Committee.
Answer:
Town area Committee is setup by an act of state Legislature. It fulfils the public needs of a small town. It will have a chairman and members nominated by the state government. It performs limited functions like street lighting, drainage etc. Its authorities take steps for improving the conditions of the people living in the town area.

Question 15.
Township.
Answer:
Township is established by the public sector undertakings to provide basic civic amenities to its personnel. It has no elected members. There will be a Town Administrator for every township. He is appointed by the concerned ministry of union government. Its services are meant not for the general public but for the personnel working in the public sector under takings.

Question 16.
Port Trust.
Answer:
Port Trust is setup in the areas where port personnel are in considerable member. It manages the affairs of ports. It takes proper steps for protecting the interests of personnel in the port areas. The union government constitutes port affairs committee. The committee comprises both nominated and elected members.

Question 17.
Collector as the District Revenue officer.
Answer:
The collector is the Chief District Revenue Officer. He in that capacity, serves as the chief guide to the farmers in the district by fulfilling several obligations. His revenue functions include various activities such as collection of land revenue, sanction of agricultural loans to farmer, rescusing the farmers in times of natural calamities by assessing the loss to incurred by them, rendering assistance to the union and state authorities in emergency relief measures etc.

Question 18.
Collector as Chief Electoral Officer in the district
Answer:
The collector acts as the chief district electoral officer. He serves as the main agent of the election commission of India for conducting elections to the various representative bodies in the district. He makes arrangements for conducting the elections in fair and impartial manner. These include preparation of electoral list and its modification, hearing public grievances on voters list, registration of new voters issue of voter IDS, appointing returning officers, assistant returning officers etc.

Question 19.
Smart Village.
Answer:
The concept of smart village is the recent development in Panchayat Raj System in A.P inaugurated by the Chief Minister of A.P to achieve holistic, inclusive and sustainable development of the state. The state has a vision “Swamandhra vision 2029″. To realize this vision, the Government has adopted the mission based approach to create the social and economic infrastructure; has adopted initiated campaigns to create awareness seeking participation of the share holder.

A smart village / ward” displays sustainable and inclusive development with all sections of its community enjoying a high standard of living.

AP Inter 2nd Year Civics Study Material Chapter 10 Local Governments in India

Question 20.
Smart City.
Answer:
A “Smart city” is an urban region that is highly advanced in terms of overall infrastructure sustainable real estate, communications and market viability. It is a city where information technology is the principal infrastructure and the basis for providing essential services to residents. They benefit everybody including citizens businesses, the government and the environment.

Smart cities are those that are ables to attract investments. Good infrastructure, simple and transparent online processes that make it easy to establish an enterprise and run it efficiently are important features of an investor friendly city.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 9th Lesson Union-State Relations Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 9th Lesson Union-State Relations

Long Answer Questions

Question 1.
Explain the brief of the Union-State Relations in India.
Answer:
Centre – State relations is the most important aspect of a federal polity. They are incorporated in part – XI and part – XII of our Constitution. Articles 245 – 300 deals with the center-state relations. Our Constitution clearly defined the Union – State relations for avoiding conflicts between the Centre and States and for establishing cooperative federation.

We may study the Union – State relations under three heads. They are :

  1. Legislative relations (Articles 245 – 255)
  2. Administrative relations (Articles 256 – 263)
  3. Financial relations (Articles 264 – 300)

1. Legislative relations (Articles 245 – 255):
Our Constitution divided the subjects of legislation into three lists, namely ; i) Union list ii) State list iii) Concurrent list. These are explained below.
i) Union list:
At present the Union list comprises 100 subjects. The subjects included in this list are of national importance. The Parliament has exclusive jurisdiction to make laws for the whole or any part of the territory of India with regard to items included in the Union list. Defence, Foreign affairs, War and Peace, Posts and Telegraphs, Currency and Coinage, Banking, Insurance, Audit and Accounts, Supreme Court and High Courts, U.P.S.C., All India Services etc.

ii) State list:
This list comprises of 62 items. These items are of local importance. The State Legislatures have jurisdiction to make laws with regard, to items included in the State list. Law and Order, Police, Prisons, Public Health and Sanitation, Agriculture, Forests, Fisheries, Land revenue, State Public Services, Libraries etc., are included in the State list.

iii) Concurrent list:
This list contains 52 subjects. Both the Union Parliament and the State Legislature can make laws on these subjects. However, in case of conflict between the laws of the Central Government and the State Government, the laws of the former will prevail. Criminal law and procedure, Civil law and procedure, Preventive detention, Marriage and Divorce, Population Control, Forests etc., are included in the Concurrent list.

Residuary Powers:
Items not included in any of the three lists are termed as Residuary Powers. The Union Parliament is empowered to make laws on these matters.

Parliament’s authority over the State matters :
The Union Parliament has special powers to make legislation on the matters of State list under the following special circumstances.

  1. It has the power to enact legislation on the State matters during the proclamation of emergency. Such a law is in vogue so long as the emergency is in vogue.
  2. It has power to make laws on any particular item of State list when two or more State Legislatures, request the former to make legislation through a resolution. Such a law applies to the respective States.
    The above matters prove that the Union has more powers oyer the States in legislative matters.

2. Administrative relations (Articles 256 – 263) :
Article 256 – 263 of part XI deal with Administrative relationship between the Centre and States. They are explained below :

  1. The executive power of the States is to be so exercised as to ensure compliance with the laws of Parliament.
  2. The Union Government has powers to issue directions to the States for the Construction and maintenance of the means of Communication, declared to be of national or military importance.
  3. The Union Government can also give directions to the States regarding the measures to be taken for the protection of Railways within the boundaries of the State.
  4. The Constitution vests the President with the power to establish an Inter – State Council.
  5. During the national emergency, the federal structure is transformed into a unitary one and all the executive authority of the State is exercised by the Union etc.

3. Financial relations (Articles 264 – 300) :
The Financial relations between the Centre and the States are defined in part XII of the Constitution (Articles 264 – 300). They are explained below:

  1. There are 12 sources of income for the Union Government and 19 sources for the State Government respectively.
  2. Some taxes like stamp duty, customs duty on pharmaceuticals are imposed by the Union Government. The State Governments collect and utilise the proceeds.
  3. A part of income from Railway fares is allotted to the State Governments.
  4. The Finance Commission makes recommendation to the President on the matters of allotting financial resources.
  5. The Union Government sanctions grants to the States for the completion of certain special projects.
    It is clear that the States do not possess adequate financial resources to meet their requirements.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Question 2.
Discuss the three lists of Union – State Relations.
Answer:
The Constitution of India makes three fold distribution of legislative powers between the Union and States. List-I (the Union List), List-II (the State List) and List-Ill (the Concurrent List)

The Union List:
The Legislative relations have been divided between the Union and States in a unique way. The Union list is a longest list. In the beginning of the constitution it consists of 97 subjects. This list has at present 100 subjects. The Union Parliament has exclusive power to make laws with respect to any of the matters enumerated in the Union List.

The subjects in this list include Defence, atomic energy, matters related to the UN, Foreign Affairs, diplomatic representation, treaties with foreign states, war and peace, citizenship, Railways, National Highways, airways, shipping, regulation and control of air traffic, post and Telegraph, Telephones, currencies, commerce and Banking, Interstate Trade, Insurance, foreign loans, patents, weights waters, Union Public Service Commission, All India Services, election to Parliament etc. The laws made on these subjects are applicable to all the State and to all the citizens equally.

State List:
Under normal circumstances the State Legislature has exclusive powers to make laws with respect to any of the matters enumerated in the State List. It consists of 66 subjects of provincial importance. After the 42nd Amendment, this number was reduced to 62 subjects. The State Legislatures have exclusive power to make laws on matters enumerated in this list.

Some of the important subjects included in the State list are law and order, justice, jails, police, agriculture, irrigation, public health, local self government, pilgrimages, libraries, fisheries, markets and fairs and land revenue etc. These laws are only applicable to the individuals or institutions within that state only.

The Concurrent List:
Both the Parliament and the State Legislatures are authorized to make laws over the subjects included in this list. There are 47 subjects of local and national importance. After the 42nd Amendment Act, 1976, their number was increased to 52. Both the Union and State Governments may enact laws on these matters. But the Union law prevails upon the laws of the States in case of conflict between the two.

Some of the subjects under the Concurrent List are – forests, protection of wild animals and birds, population control and family planning, education including technical and medical education, criminal law and procedure, marriage and divorce, trusts and trustees, adulteration, trade unions, electricity, press and newspapers and weights and measures except establishment of standards etc.

The Union Parliament is empowered to amend and repeal the laws made by the States or any subjects mentioned in the concurrent List. It has power exclusively to make any law with respect of any subject not enumerated in the Concurrent List or State List. But under certain special circumstances the Union Government is empowered to abolish the powers of the states over the subjects included in the State List.

Residuary Powers :
The powers which are not included in any of the above lists are called Residuary Powers. They are assigned to the union government.
Ex: The power of the Parliament to impose taxes on the services sector of the economy.

Short Answer Questions

Question 1.
Discuss the Administrative Relations between the union and the States in India. [Mar. 18, 16]
Answer:
Articles 256 to 263 in Part XI of our Constitution deal with the administrative relations between the Union and States. They are discussed under the following heads : (a) during emergencies, (b) in normal times.

In normal times :
In normal times, our Constitution has devised techniques of control over the states by the Union to ensure that the State Governments do not interfere with the legislative and executive policies of the Union. The Union Government exercises its influence over the State Governments in the following ways. The Union Government is empowered to issue directions to the State Governments in the following matters :

  • To ensure due compliance with the Union laws in the implementation of the State laws.
  • To ensure that the exercise of the executive power of the State does not impede the implementation of the Union laws.
  • The ensure the Constitution and the Maintenance of the means of communication of military or national importance.
  • To ensure protection of Railways within the state.
  • To devise and execute schemes for the welfare of the tribal communities as mentioned in the directions.
  • To secure the provisions of the adequate facilities for the instruction in the tongue at the primary stage to linguistic minorities.
  • To ensure the development of Hindi language.
  • To entrust certain functions of the Centre to the State and ifs officers and the Centre will meet the additional expenditure involved in carrying out such functions.
  • To issue directions to the State for the welfare of the Schedule Castes and scheduled Tribes.
  • The State Governments have to see that the laws made by the Parliament and other laws prevalent in the State are properly executed. The Union Government is empowered to give directions to the States for this purpose,
  • The Parliament can frame rules regarding the settlement of disputes between two States with regard to the use of water and boundaries.
  • The President is empowered to constitute an Inter-State Council to advise the State in settling their disputes.
  • The personnel belonging to All India Services working in the State are governed by the rules, regulations, and service conditions laid down by the Central government only. They can be removed only by that government.
  • The Central Government dispatches the central resource power to the States for tackling any situation of disturbances affecting law and order conditions in the State.
  • The Union can impose President Rule in any State if there is a breakdown of the Constitutional machinery in the State.
  • The Election Commission, an independent Constitutional body constituted by the Central Government conduct elections of the Union and State legislatures.
  • The Parliament can empower to make grant in aid to any State which is in need of such assistance.

During Emergencies :
During the operation of a national emergency, the Union Government will work as a powerful body. The state governments are brought under its complete control. However, they can’t be suspended by the union. When the President rule is imposed in a state the President can assume to himself the functions of the state government. He can assign such functions to the Governor. During the financial emergency, the union can direct the states to observe canons of financial propriety. The President can issue directions including the reduction of salaries of persons serving in the state government and the High Court Judges.

Question 2.
What are the Financial Relations between the union and the states? Explain.
Answer:
Articles 268 and 293 in Part – XII of the Constitution deal with the Centre – State financial relations. The relations between the Centre and the States can be discussed under the following heads :

1) Taxes and Duties levied by the Centre :
There are certain taxes which are exclusively assigned to the Union. These include customs and exports duties, income tax, excise duties on tobacco, jute cut corporation tax, taxes on the capital value of the assets, estate duty in respect of property other than agricultural land, railways, post and telegraphs, telephones, wireless, broadcasting and other forms of communications, foreign exchange, currency and coinage etc.

2) Taxes and duties levied and used by the State :
Certain items of revenue fall under the exclusive jurisdiction of the State. There are land revenue, taxes on goods and passengers carried by road or inland water, taxes on the consumption or sale of electricity and toll tax, duty on alcoholic liquors for human consumptions, taxes on entertainment, amusement, betting, gambling etc.

3) Taxes levied by the Union but collected and appropriated by States :
Revenue from the following items is collected and appropriated by the States. These include Stamp duties on bill of exchange, cheques, promissory notes, bills of lending, transfer of shares, excise duties on medical and toilet materials, opium etc.

4) Taxes levied and collected by the Union but assigned to States :
The taxes on certain items are levied and collected by the Union but exclusively allotted to the States. These are : railway freight and fares, terminal taxes on good or passengers carried by rail, sea or air, estate duty in respect of property other than agricultural land.

5) Taxes levied and collected by the Union and distributed among the Union and the States :
There are certain items, on which the taxes are levied and collected by the Union but shared with the States. Such items are : tax on income other than agricultural income, excise duties on items other than medical and toilet materials.

6) Union Government grants-in-aid and loans to the States :
The Union Government makes special provisions by two other means.

i. Grants -in-aid :
The Union Government provides grants-in-aid (which are not paid back) to the States for different purposes. These grants are generally given for the purpose of financing development programmes for promoting the welfare of Scheduled Castes, Scheduled Tribes and Backward Classes or budget deficit or for helping the States during natural calamities like drought, floods, earthquakes etc. The States of Assam, Bihar and Orissa are given special grants-in-aid in lieu of export duty on the export of jute goods produced in these States.

ii. Advancement of central loans :
Besides grants in aid, the Union Government may advance loans to the State Governments and also give security to the loans by the Union Government within the provisions of the Constitutions.

7) Financial Relations between Union and States during Financial Emergency :
During the proclamation of Financial Emergency, the President can give financial directions to the States. The President can suspend the grant-in-aid to the States. During such an emergency the States are left only with revenues available under the State List and the other resources Can be controlled as per the wishes of the Centre. The President can issue directions to reduce the salaries and other allowances of the government employees including the judges.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Question 3.
Examine the Legislative Relations between the Union and the States.
Answer:
Articles 245 to 255 in Part XI and Chapter I of the Indian Constitution deal with the legislative relations between the Union and the States. The Constitution of India makes three fold distributions of legislative powers between the union and the States viz.

  1. The union list
  2. The state list and
  3. The concurrent list.

They can be explained in the following way.

The Union List:
The Legislative relations have been divided between the Union and States in a unique way. The Union list is a longest list. In the beginning of the constitution it consists of 97 subjects. This list has at present 100 subjects. The Union Parliament has exclusive power to make laws with respect to any of the matters enumerated in the Union List.

The subjects in this list include Defence, atomic energy, matters related to the UN, Foreign Affairs, diplomatic representation, treaties with foreign states, war and peace, citizenship, Railways, National Highways, airways, shipping, regulation and control of air traffic, post and Telegraph, Telephones, currencies, commeirce and Banking, Interstate Trade, Insurance, foreign loans, patents, weights waters, Union Public Service Commission, All India Services, election to Parliament etc. The laws made on these subjects are applicable to all the State and to all the citizens equally.

State List:
Under normal circumstances the State Legislature has exclusive(powers to make laws with respect to any of the matters enumerated in the State List. It consists of 66 subjects of provincial importance. After the 42nd Amendment, this number was reduced to 62 subjects. The State Legislatures have exclusive power to make laws on matters enumerated in this list. Some of the important subjects included in the State list are law and order, justice, jails, police, agriculture, irrigation, public health, local self government, pilegrimages, libraries, fisheries, markets and fairs and land revenue etc. These laws are only applicable to the individuals or institutions within that state only

The Concurrent List:
Both the Parliament and the State Legislatures are authorized to make laws over the subjects included in this list. There are 47 subjects of local and national importance. After the 42nd Amendment Act, 1976, their number was increased to 52. Both the Union and State Governments may enact laws on these matters. But the Union law prevails upon the laws of the States in case of conflict between the two.

Some of the subjects under the Concurrent List are – forests, protection of wild animals and birds, population control and family planning, education including technical and medical education, criminal law and procedure, marriage and divorce, trusts and trustees, adulteration, trade unions, electricity, press and newspapers and weights and measures except establishment of standards etc.

The Union Parliament is empowered to amend and repeal the laws made by the States or any subjects mentioned in the Concurrent List. It has power exclusively to make any law .with respect of any subject not enumerated in the Concurrent List or State List. But under certain special circumstances the Union Government is empowered to abolish the powers of the states over the subjects included in the State List.

Residuary Powers :
The powers which are not included in any of the above lists are called Residuary Powers. They are assigned to the union government.
Ex: The power of the Parliament to impose taxes on the services sector of the economy.

Question 4.
Explain the composition, Powers and Functibns of the Finance Commission.
Answer:
Composition :
Article 280 of the Indian Constitution deals with the composition, powers and functions of the Finance Commission. TKe President of India constitutes a Finance Commission, a quasi-judicial body with Chairman and four members. The Chairman as well as the members is appointed by the President for a period of five years. They are eligible for reappointment. The constitution authorizes the Parliament to decide the qualifications of the members and Chairman of the Commission.

Accordingly, the Parliament has specified the qualification of the Chairman and other members of the Commission. The Commission makes recommendations to the President on the distribution of financial resources between the Union and States. The Chairman should be a person having experience in the field of public affairs of the Union or the States. The other four members of the Finance Commission should be appointed from amongst the following fields.

a) A high Court judge or one qualified to be appointed as such.
b) A person having special knowledge of the finances and accounts of the government.
c) A person havihg wide experience in financial matters and administration.
d) A person having special knowledge of Economics.

Powers and Functions :
The Finance Commission review the financial relations between the Centre and States from time to time and makes recommendations to the President of India in the following matters

  • It makes recommendations as to what proportion of the central taxes is to be distributed among the State.
  • To determine the principles that should govern the grants-in-aid of the revenues of the State out of the Consolidated Fund of India.
  • It also makes recommendations regarding the continuance or modifications of agreements entered into by the Union Government with any state.
  • It makes suggestions on any other matter referred to the Commission by the President in the interest of financial stability.
  • The functions of Finance Commission have been enlarged by 73rd and 74th Constitutional Amendment, which makes it the duty of the Commission to suggest measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayat and Municipalities in the States.
  • It also holds discussions With the higher officials and prominent leaders on administrative and’political affairs, and invites suggestions from the heads of various financial institutions in the country for sound financial stability.

The Finance Commission submits its report to the President of India, which is generally accepted by the Central Government. The President may or may not accept all or few of the recommendations of the Commission. These recommendations are applicable for a period of five years.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Question 5.
Evaluate the Recommendations of the Sarkaria Commission. [Mar. 18, 16]
Answer:
The Union Government appointed a three – member Commission on Centre-State relations under the Chairmanship of R.S.Sarkaria, a retired judge of the Supreme Court. B.Sivaraman, S.R.Sen and Rama Subrahmaniam were appointed as other members. The Commission was asked to overhaul and review the working of existing arrangements between the Union and States in all spheres as and recommend such changes and measures as may be appropriate. It was initially given one year time to complete its work; but its term was extended four times. The final report was submitted on October, 27,1987 and the summary was later officially released in January, 1988.

The Sarkaria Commission made 247 recommendations to improve the Centre – State relations. The important recommendations are mentioned below :

  1. A permanent Inter-State Council called the Inter-Governmental Council should be set up under Article 263.
  2. Article 356 (President’s Rule) should be used very sparingly in extreme cases as a last resort when all the available alternatives fail.
  3. The institution of All India Services should be further strengthened and some more such services should be created.
  4. The residuary powers of taxation should continue to remain with the Parliament, while the other residuary powers should be placed in the Concurrent List.
  5. When the President withholds his assent to the State bills, the reasons should be communicated the State Government.
  6. The National Development Council (NDC) should be renamed and reconstituted as the National Economic and Development Council (NEDC).
  7. The zonal councils should be constituted afresh and reactivated to promote the spirit of federalism.
  8. The Union should have powers to deploy its armed forces, even without the consent of States. However, it is desirable that the States should be consulted.
  9. The Centre should consult the States before making a law on a subject of the Concurrent List.
  10. The procedure of consulting the Chief Minister in the appointment of the State Governor should be prescribed in the Constitutional itself.
  11. The net proceeds of the Corporation tax may be made permissibly shareable with the States.
  12. The Governor cannot dismiss the Council of Ministers so long as it commands a majority in the assembly.
  13. The Governor’s term of five years in a State should not be disturbed except for some extremely compelling reasons.
  14. No commission of enquiry should be set up against a State Minister unless a demand is made by the Parliament.
  15. The surcharge on income tax should not-be levied by the Centre except for a specific purpose and or a strictly limited period.
  16. The present division of functions between the Finance Commission and the Planning Commission is reasonable and should continue.
  17. Steps should be taken to uniformly implement the three language formula in its true spirit.
  18. No autonomy for radio and television but decentralization in their operations.
  19. No change in the role of Rajya Sabha arid the Centre’s power to reorganize the States.
  20. Giving powers to the Municipalities to issue tax free bonds.

The Union Government has implemented 180 ( out of 247) recommendations of the Sarkaria Commission. The most important is the establishment of the Inter – State Council in 1990 but it has not served the purpose.

Very Short Answer Questions

Question 1.
Any three relations between Union and States.
Answer:
The Union and State Relation in India are divided into three heads. They are

  1. Legislative
  2. Administrative and
  3. Financial Relations.

Question 2.
Union List
Answer:
The union list is a longest list. It consists of 100 subjects. The Union Parliament has exclusive power to make laws on these subjects like Defence, Foreign Affairs, Railways, Airways, Banking, Insurance etc.

Question 3.
Administrative Relations during emergencies.
Answer:
During the operation of a national emergency, the Union Government will work as a powerful body. The state governments are brought under its complete control. However, they can’t be suspended by the union. When the President rule is imposed in a state the President can assume to himself the functions of the state government. He can assign such functions to the Governor. During the financial emergency, the union can direct the states to observe canons of financial propriety. The President can issue directions including the reduction of salaries of persons serving in the state government and the High Court Judge.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Question 4.
Legislative Power between the Union and the States.
Answer:
Articles 245 to 255 in part XI and chapter I of the Indian constitution deal with the legislative relations between the union and the states.

The constitutions of Indian makes three fold distributions of legislative powers between the union and states. List -I (The Union List), List -II (The State List) and List – III (the concurrent List).

Question 5.
Residuary Powers.
Answer:
The powers which are not included in any of the above lists are called residuary powers. They are assigned to the union government. Ex: The power of the Parliament to impose taxes on the services sector of the Economy.

Question 6.
Any two extra constitutional devices of Union Government.
Answer:

  1. National Institute for transforming India (NITI Ayog)
  2. National Development Council
  3. National Integration Council
  4. Inter – State Council

Question 7.
NiTIAayog. [Mar. 17, 18]
Answer:
The NITI Aayog (National Institute for Transforming India) is tasked with the role of formulating policies and directions for the government. It’s governing council will consist of the Chief Ministers of all the states in Indian Union and the Lieutenant Governors of the Union Territories.

Question 8.
National Development Council.
Answer:
National Development council was setup in 1952. It is as another extra-constitutional and extra-legal body to associate the states in the formulation of the plans. The Prime Minister is the ex-officio chairman of National Development Council. It consists of all the members of the Union Cabinet, Chief Ministers of all the states and the lieutenant governors of the Union Territories.

Question 9.
National Integration Council.
Answer:
National Integration Council was setup in 1961. The Council was directed to examine the issues like communalism, Casteism, Regionalism, Linguistic and narrow mindedness affecting National Integration. It makes necessary recommendations in the above matters.

Question 10.
Any three tension areas in Union – States Relations.
Answer:
Generally in Indian Political System the following areas created tensions between the union and states.

  1. Use of Article 356 in the states.
  2. Discrimination in financial allocation to the states.
  3. Appointment of enquiry commission against the Chief Ministers.
  4. Demand for State Autonomy.

Question 11.
Punchchi Commission.
Answer:
The UPA government setup a Commission on Centre – State Relations in April 28th 2007 under the Chairmanship of Madan Mohan Punchchi, a retired Chief Justice of India. The Commission was required to look into the issues of centre-state relations keeping in view the sea-change that have taken place in Indian polity since the Sarkaria Commission had last looked at the issue of Union State relations over decades ago. The commission submitted its report to the government in April 20, 2010.

AP Inter 2nd Year Civics Study Material Chapter 9 Union-State Relations

Question 12.
Union – State Relations.
Answer:
Union – State Relations is the most important aspect of a Federal Polity. They are in corporated in part XI and part XII of our constitution. Article 245 to 300 deals with the union – state Relations. Our Constitution clearly defined the union state relations for avoiding conflicts between the union and states and for establishing co-operative Federation.

The Constitution of India provides for systematic division of powers between the union and states in all spheres namely Legislative, Administrative and Financial.

AP Inter 2nd Year Civics Study Material Chapter 8 State Judiciary

Andhra Pradesh BIEAP AP Inter 2nd Year Civics Study Material 8th Lesson State Judiciary Textbook Questions and Answers.

AP Inter 2nd Year Civics Study Material 8th Lesson State Judiciary

Long Answer Questions

Question 1.
Explain the powers and functions of the High Court.
Answer:
The constitution of India provides for a High Court for each state. But the 7th Amendment Act, of 1956 authorized the Parliament to establish a common High Court for two or more states and a Union Territory.

Articles 214 to 231 in Part-VI of the constitution deal with the organization, qualifications, appointment, independence, jurisdiction, powers, and procedures, etc., of the High Court.

Composition :
Every High Court consists of a Chief Justice and such other judges as the President may from time to time deem it necessary to appoint.

Appointment of Judges :
The Chief Justice of High Court is appointed by the President after consultation with the Chief Justice of India and the Governor of the concerned state. The other judges of High Court are appointed by the President with the consultation of the Chief Justice of High Court of the concerned State. In case of a common High Court for two or more States, the Governors of concerned States are cpnsulted by the President. ,

Qualifications of Judges :
A person to be appointed as a judge of High Court should possess the following qualifications.
a) He should be a citizen of India.
b) He should have held judicial office in the territory of India for atleast 10 years, or
c) He should have been an advocate of a High Court or of two or more such courts for 10 years period. However, the Constitution has not prescribed a minimum age for appointment as a judge of a High Court.

Salaries and Allowances :
The salaries, allowances, privileges, leave and pension of the judges of a High Court are determined by the Parliament from time to time. The Judge of a High Court gets a salary of ₹ 80,000/-per month and the Chief Justice gets ₹ 90,000/-. They are also entitled to get other allowances and are provided with free accommodation and other facilities like medical, car, telephone etc.

The salaries and allowances cannot be reduced except under financial emergency. The salaries and allowances are drawn from the Consolidated Fund of the State. Their retired Chief Justice and other judges are entitled to 50% of their last drawn salary as monthly pension.

Tenure :
Every Judge of a High Court including Chief Justice holds office until he attains the age of 62 years. The Judges including the Chief Justice will take oath in the presence of the Governor of the concerned State. He can resign for his office when he desire so by writing to the President to that effect.

Method of removal:
A Judge of a High Court can.be removed by the President on the grounds of proved misbehaviour or incapacity. The method of removal of a Judge of the High Court shall be the same as that of a Judge of the Supreme Court.

Powers and Functions of the High Court:
The following are the powers and functions of the High Court.

1) Original Jurisdiction:
Every High Court in India has original jurisdiction in regard to matters of admiralty, will, marriage, divorce, company laws, contempt of court and certain revenue cases. Every High Court is empowered to issue directions, orders or writs for the enforcement of any of the Fundamental Rights. Every High Court is empowered to settle disputes relating to election of members of Parliament and State Legislatures.

Under Article 226, the High Court is empowered to issue writs for enforcing Fundamental Rights. The High Court issue writs like Habeas-corpus, Certiorari, Mandamus, Quo-warranto and Injunction,for protecting the Fundamental Rights of the Indian Citizens.

2) Appellate Jurisdiction :
Every High Court hears appeals against the judgement rdinate courts. The appellate Jurisdiction of the High Court extends to both riminal Cases.

a) Civil Cases :
An appeal to the High Court on the civil side is either a first appeal or a second appeal. In civil cases, appeal to the High Court lies from the decision of a District Court. Appeals can also be made from the subordinate courts directly provided the dispute involves a value of more than ₹ 5,00,000/- (or) a question of fact of law. When a court subordinate to the High Court decides an appeal differing from the decision of an inferior court, a second appeal can be made to the High Court.

b) Criminal Cases :
In Criminal cases, it hears the appeals in which the accused has been sentenced to more than seven years imprisonment by the Sessions Judge. All cases involving capital punishment awarded by the Sessions Court come to High Court as appeals. Its approval is necessary for the imposition of death sentences by the District Sessions Judge. It also hears cases involving the interpretation of the Constitution.

3) Court of Record :
The State High Court acts as a Court of Record. It records all its decisions and judgements. Such records are of great significance. They carry evidentary value. They are taken as Judicial precedents to the Judges and Advocates in legal matters.

4) Power of Judicial Review :
The State High Court possesses the power of judicial review like the Supreme Court. It is the power of High Court to examine the constitutionality of legislature enactments and executive orders of both the Central and State Governments. On examination, if they are found to bp violated of the Constitution (Ultra Vires), they can be declared as illegal, unconstitutional and invalid (null and void) by the High Court. Consequently, they cannot be enforced by the government.

5) Power of Certification :
High Court certifies certain cases which can go to the Supreme Court. That appeals which go to Supreme Court depend up on the issue of a certificate by the High Court.

6) Advisory functions :
The High Court is consulted by the State Governor in the matters of appointment, posting and promotion of District Judges and in the appointment of personnel to the Judicial Services of the State (Other than District Judges). It deals with the matters of posting, promotion, grant of leave, transfers and discipline of the members of the Judicial Service of the State. It also, renders advice to the subordinate courts in the matters of public interest or of legal importance.

7) Administrative functions :
The High Court exercises certain administrative functions within its territorial jurisdictions.

  • Under Article 227, every High Court has the power of supervision over all Courts and Tribunals functioning in its territorial jurisdiction except Military Courts or Tribunals in the State.
  • It ensures the proper working of these courts. It exercises the power to make and issue general rules and regulations for securing the efficient working of the court.
  • The High Court can transfer any case from one court to another court under Article 228 and can even transfer the case itself and decide the same.
  • The High Court has the power to investigate or enquire into the records or other connected documents for any court subordinate to it.
  • It appoints its administrative staff and determines the salaries and allowances and other conditions of the personnel working in subordinate courts.
  • It is empowered to withdraw any case involving the interpretation of the constituion and dispose of the case itself.
  • The High Court is the Highest Court of Justice in the State. All other Courts and Tribunals (except Military Courts and Tribunals) in State function under the direct supervisions and control of the State High Court.

Other functions :
a) The High Court acts as the District Court where its head quarters are located.

b) The Chief Justice of the High Court acts as the Governor on the direction of the President tentatively whenever the vacancy arises in that office.

c) The High Court can admit Public Interest Litigation like the Supreme Court of India.

AP Inter 2nd Year Civics Study Material Chapter 8 State Judiciary

Question 2.
Write an essay on the District Level Courts.
Answer:
The state judiciary consists of a High Court and a hierarchy of Subordinate Courts also known as District Courts. The District Courts play an important role in judicial administration at the district level. The courts consist of District Judge and other Judges. They fullfill their obligations at the District, Town and Major Village levels. They hear civil and criminal cases. They are subject to the authority and control of the State government in administrative matters and to the State High Court in judicial matters.
There are two types of subordinate courts in a State namely :

  1. Civil Courts and
  2. Criminal Courts.

1) Civil Courts :
The Civil Courts deal with civil suits regarding the matter like marriages, divorce, inheritance, business etc. There will be District Civil Courts at the District Level. The District Judge acts as its head. He exercises control and supervision over other civil courts in the district.

There are some senior civil judge courts below the rank of the district civil courts. There are some other junior civil judge courts in addition senior civil judge court. Judicial officers of subordinate courts are given here under :

  1. Principal District Judge
  2. Family Court Judge
  3. SC & ST Act Court Judge
  4. Senior Civil Court Judge
  5. Junior Civil Court Judge

The Principal District Court admits the cases pertaining to an amount of Rupees 10 Lakhs and above worth of poverty and deliver the judgements. The Principal District Judge is appointed through direct as well as indirect recruitment (By promotion).

The Family Courts are presided by judicial officers of the cadre of District Judges. This court takes up cases under Hindu Marriage Act relating to divorce, ordering interim maintenance, ordering custody of children etc. In order to protect Scheduled Caste and Scheduled Tribes rights and to implement SC & ST Act strictly, there is a court for the entire district.

There are some courts namely Senior Civil Judge Courts which deal with the cases of property worth rupees above one lakh and below 10 lakhs and deliver the judgements.

Cases pertaining to property worth below one lakh will be taken up by Junior Civil Judge Court and the Judgements are delivered. There are some Nyaya Panchayats, Grama Kacheries, Adalati Panchayats and so on at the lowest level in the district to deal with local legal issues.

2) Criminal Courts :
The Sessions Court is the highest criminal court in the district. The Sessions court acts as the superior court at the district level in handling the criminal matters. The Sessions Judge delivers judgements according to the provisions mentioned in the Indian penal code and the criminal procedure code. The following judges deal with at the district level.
They are :

  1. District Sessions Judge
  2. Senior Assistant Sessions Judge
  3. Junior Civil Judge
  4. Special Judicial Magistrate

The Principal District Judge will act as District Sessions Judge, who deals with the cases relating to murder and motor vehicles act violation cases and delivers the judgement and imposes life imprisonment or death sentences which are to be confirmed by the State High Court. The Senior Assistant Sessions Judge will impose an imprisonment of five to seven years, depending on the nature of the Case.

If there is a Junior Civil Judge Court for the entire town the court acts as a civil as well as a criminal court and take up the cases and deliver judgement and impose imprisonment below three years. There are Second Class Magistrate Courts which deliver the judgement by imposing fine up to rupees five hundred or a sentence of one year or both.

Special Judicial Magistrate Courts will be established in every town which takes up petty cases and deliver the judgement by imposing fines below ₹ 500/- and impose imprisonment below six months.

Short Answer Questions

Question 1.
Explain briefly the composition of High Court.
Answer:
The Constitution of India provides for a High Court for each state. But the 7th Amendment Act, 1956 authorised the Parliament to establish a common High Court for two or more states and a Union Territory. *

Composition :
Every High Court shall consist of a Chief Justice and some other Judges. The President of India may appoint them from time to time. Besides, the President has the power to appoint Additional Judges for a temporary period not exceeding two years as an acting Judge, where a permanent Judge of a High Court is temporarily absent or unable to perform his duties.

Such judges hold office until the permanent Judge resumes his office. The number of Judges varies from 5 in Gauhati High Court to 48 in the Allahabad High Court. Our Constitution does not specify the exact strength of High Court judges and leaves it to the discretion of the President. Accordingly, the President determines the strength of a High Court from time to time depending upon its workload.

Question 2.
Write any two powers and functions of the State High Court. [Mar. 18, 16]
Answer:
The following are the two powers and functions of the High Court.
1) Original Jurisdiction:
Every High Court in India has original jurisdiction in regard to matters of admiralty, will, marriage, divorce, company laws, contempt of court and certain revenue cases. Every High Court is empowered to issue directions, orders or writs for the enforcement of any of the Fundamental Rights. Every High Court is empowered to settle disputes relating to election of members of Parliament and State Legislatures. The High Courts of Bombay, Calcutta and Madras possess original jurisdiction in Civil as well as Criminal cases arising within the presidency towns.

They are authorized to hear Civil Cases involving property of the value of ₹ 20,000/- or more. They enjoy exclusive privileges and authority in this regard. In fact this power of High Court was m vogue before independence. It has been retained in the new Constitution. The other High Courts also enjoy the same jurisdiction as was available to them before independence.

Under Article 226, the High Courts is empowered to issue writs for enforcing Fundamental Rights. The High Court issue writs like Habeas-corpus, Certiorari, Mandamus, Quo-warranto and Injunction for protecting the Fundamental Rights of the India Citizens.

2) Appellate Jurisdiction :
Every High Court hears appeals against the judgement of the subordinate courts. The appellate Jurisdiction of the High Court extends to both Civil and Criminal Cases.

a) Civil Cases :
An appeal to the High Court on the civil side is either a first appeal or a second appeal. In civil cases, appeal to the High Court lies from the decision of a District Court. Appeals can also be made from the subordinate courts directly provided the dispute involves a value of more than ₹ 5,00,000/- (or) a question of fact of law. When a court subordinate to the High Court decides an appeal differing from the decision of an inferior court, a second appeal can be made to the High Court.

b) Criminal Cases :
In Criminal cases, it hears the appeals in which the accused has been sentenced to more than seven years imprisonment by the Sessions Judge. All cases involving capital punishment awarded by the Sessions Court come to High Court as appeals. Its approval is necessary for the imposition of death sentences by the District Sessions Judge. It also hears cases involving the interpretation of the Constitution.

Question 3.
Explain the Administrative functions of the High Court
Answer:
The High Court exercises certain administrative functions within its territorial jurisdictions.

  1. Under Article 227, every High Court has the power of supervision over all Courts and Tribunals functioning in its territorial jurisdiction except Military Courts or Tribunals in the State.
  2. It ensures the proper working of these courts. It exercises the power to make and issue general rules and regulations for securing the efficient working of the court.
  3. The High Court can transfer any case from one court to another court under Article 228 and can even transfer the case itself and decide the same.
  4. The High Court has the power to investigate or enquire into the records or other connected documents of any court subordinate to it.
  5. It appoints its administrative staff and determines the salaries and allowances and other conditions of the personnel working in subordinate courts.
  6. It is empowered to withdraw any case involving the interpretation of the Constitution and dispose of the case itself.
  7. The High Court is the Highest Court of Justice in the State. All other Courts and Tribunals (except Military Courts and Tribunals) in State function under the direct supervision and control of the State High Court.

AP Inter 2nd Year Civics Study Material Chapter 8 State Judiciary

Question 4.
Explain the powers and functions of District Court.
Answer:
There will be District Civil Courts at the District Level. The District Judge acts as its head. He exercises control and supervision over other civil courts in the district.

There are some senior civil judge courts below the rank of the district civil courts. There are some other junior civil judge courts in addition senior civil judge courts. Judicial officers of subordinate courts are given here under :

  1. Principal District Judge
  2. Family Court Judge
  3. SC & ST Act Court Judge
  4. Senior Civil Court Judge
  5. Junior Civil Court Judge

The Principal District Court admits the cases pertaining to an amount of Rupees 10 Lakhs and above worth of property and deliver the judgements. The Principal District Judge is appointed through direct as well as indirect recruitment (By promotion).

The Family Courts are presided by judicial officers of the cadre of District Judges. This court takes up cases under Hindu Marriage Act relating to divorce, ordering interim maintenance, ordering custody of children etc. In order to protect Scheduled Caste and Scheduled Tribes rights and to implement SC & ST Act strictly, there is a court for the entire district. .

There are some courts namely Senior Civil Judge Courts which deal with the cases of property worth rupees above one lakh and below 10 lakhs and deliver the judgements.

Cases pertaining to property worth below one lakh will be taken up by Junior Civil Judge Court and the Judgements are delivered. There are some Nyaya Panchayats, Grama Kacheries, Adalati Panchayats and so on at the lowest level in the district to deal with local legal issues.

Question 5.
Discuss the powers and functions of State Advocate General. [Mar. 17]
Answer:
Every State in Indian Union shall have an Advocate General, an official corresponding to the Attorney-General of India. He performs similar functions for the State that of the Attorney-General of India. He is the highest law officer in the State.

Appointment:
The Advocate General is appointed by the Governor of the State under the Article 165 of the Constitution. A person to be appointed as Advocate General must possess the following qualifications.

  1. He should be a citizen of India.
  2. He must have held a judicial office for ten years or an advocate of a High Court for ten years.
  3. He must be a person who is qualified to be appointed a judge of a High Court.

Tenure and Removal :
The Constitution of India did not mention the tenture of Advocate General. Further, the Constitution does not contain the procedure and grounds for his removal. He holds office during the pleasure of the Governor. He may be removed by the Governor at any time. He may also quit his office by submitting his resignation to the Governor. Conventionally, he resigns when the government resigns or is replaced, as he is appointed on the advice of the government.

Salary :
His remuneration is not fixed by the Constitution. He receives such remuneration as the Governor may decide from time to time.

Powers and functions :
As the highest law officer of the State Government, he exercises the following powers and functions.

  • He advises the State Government upon such legal matters which are referred to him by the Governor.
  • He performs such other duties of a legal character that are assigned to him by the Governor.
  • He discharges the functions and conferred on him by the Constitution.
  • He appeared before any court of law within the State.
  • He has a right to speak and to take part as member in the proceedings of the house (s) but no right to vote.
  • He can also attend any of the Standing Committee meetings of State Legislature.

Very Short Answer Questions

Question 1.
Appointment of High Court Judges. [Mar. 18, 17]
Answer:
The Chief Justice of High Court is appointed by the President after consultation with the Chief Justice of India and the Governor of the concerned State. The other judges of High Court are appointed by the President with the consultation of the Chief Justice of High Court of the concerned State. In case of a common High Court for two or more States, the Governors of concerned States are consulted by the President.

Question 2.
Qualifications of High Court Judges. [Mar. 16]
Answer:
A person to be appointed as judge of High Court should possess the following qualifications.

a) He should be a citizen of India.
b) He should have held a judicial office in the territory of India at least 10 years, or
c) He should have been an advocate of a High Court or of two or more such courts for 10. years period. However, the constitution has not prescribed a minimum age for appointment as a judge of a High Court.

Question 3.
High Court as a Court of Record.
Answer:
The State High Court acts as a court of Record. It records all its decisions and judgements. Such records are of great significance. They carry evidentary value. They are taken as Judicial precedents to the judges and Advocates in legal matters.

AP Inter 2nd Year Civics Study Material Chapter 8 State Judiciary

Question 4.
Advisory functions of High Court.
Answer:
The High Court is consulted by the State Governor in the matters of appointment, posting and promotion of District Judges and in the appointment of personnel to the Judicial Services of the State (Other than District Judges). It deals with the matters of posting, promotion, grant of leave, transfers and discipline of the members of the Judicial Service of the State. It also renders advice to the subordinate courts in the matters of public interest or of legal importance.