Ethical principles can be applied to resolve conflicts within personal relationships by helping individuals navigate complex situations and make decisions that prioritize the well-being of all parties involved. Here are some ways to apply ethical principles to resolve conflicts:

1. Respect for autonomy: Recognize the autonomy and dignity of each person involved in the conflict. Respect their right to make their own decisions and have their own opinions, even if you disagree.
2. Fairness and justice: Strive for fairness and justice in the resolution process. Avoid favoritism, bias, or manipulation, and ensure that each person’s voice is heard.
3. Honesty and transparency: Communicate openly and honestly about your concerns, feelings, and needs. Be transparent about your intentions and actions, and avoid hiding information or manipulating others.
4. Empathy and compassion: Put yourself in others’ shoes and try to understand their perspectives. Show compassion and understanding, even when you disagree.
5. Non-judgmental listening: Listen actively and without judgment to the other person’s concerns. Avoid criticizing or blaming, and instead focus on understanding their feelings and needs.
6. Open-mindedness: Approach conflicts with an open mind, willing to consider different perspectives and solutions. Be flexible and willing to compromise when possible.
7. Responsibility: Take responsibility for your actions and their consequences. Acknowledge your mistakes, apologize when necessary, and work to repair any harm caused.
8. Accountability: Hold yourself accountable for your actions and commitments. Follow through on your promises and take ownership of your part in the conflict.
9. Dialogue and negotiation: Engage in respectful dialogue with the other person, focusing on finding a mutually beneficial solution. Be willing to negotiate and compromise to find a resolution that works for all parties.
10. Seek mediation or counseling: If the conflict is severe or ongoing, consider seeking the help of a mediator or therapist who can facilitate a constructive conversation.

The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003, to introduce transparency and discipline in India’s fiscal management systems. It marked a turning point in fiscal reforms, binding the government through an institutional framework to pursue a prudent fiscal policy. Objectives of FRBM Act, 2003:

• The central government needs to ensure Inter-generational equity.
• Long-term macroeconomic stability by achieving sufficient revenue surplus.
• Removing fiscal obstacles to monetary policy.
• Effective debt management by limiting deficits and borrowing.
• To give the Reserve Bank of India (RBI) flexibility to deal with inflation in India.
• To introduce a more equitable distribution of India’s debt over the years.

The FRBM Act has the following key features:

• The Act mandates the central government to take appropriate measures to reduce the fiscal deficit and revenue deficits to originally eliminate the revenue deficit by 2009 and thereafter build up an adequate revenue surplus.
• If the fiscal and revenue deficits are not achieved through tax revenues, the necessary adjustment has to come from a reduction in expenditure.
• The actual deficits may exceed the targets specified only on grounds of national security or natural calamity or such other exceptional grounds as the central government may specify.
• The central government shall not borrow from the Reserve Bank of India except by way of advances to meet temporary excess of cash disbursements over cash receipts.
• The Reserve Bank of India must not subscribe to the primary issues of central government securities from the year 2006-07.
• Measures to be taken to ensure greater transparency in fiscal operations.
• The central government to lay before both Houses of Parliament three statements
  • Medium-term Fiscal Policy Statement,
  • The Fiscal Policy Strategy Statement,
  • The Macroeconomic Framework Statement along with the Annual Financial Statement.
• A quarterly review of the trends in receipts and expenditure concerning the budget be placed before both Houses of Parliament.

These targets were put off several times. The Act was reviewed in 2016 by the NK Singh Committee, which suggested targeting the debt-to-GDP ratio instead and bringing it down to 60% by 2023 (comprising 40% for Centre and 20% for states). It also recommended reducing the fiscal deficit from 3.5% (2017) to 2.5% by 2023 and advocated rather for a fiscal range with an ‘escape clause’ to accommodate countercyclical issues and situations of emergencies.

Goods and Services Tax (GST) is an indirect tax that came into effect on 1st July 2017 by replacing many indirect taxes in India such as the excise duty, VAT, services tax, etc. Goods and Service Tax (GST) is levied on the supply of goods and services and is a destination-based tax that is levied on every value addition.

Salient features of the Goods and Services Tax:

• GST is applicable on the ‘supply’ of goods or services as against the concept of the manufacture of goods or on sale of goods or provision of services.
• GST is based on the principle of destination-based consumption taxation as against the principle of origin-based taxation.
• India has a dual GST system with the Centre and the States simultaneously levying tax on a common base. The GST to be levied by the Centre is the Central GST(CGST) and that to be levied by the States is the State GST (SGST).
• An Integrated GST (IGST) is levied on the inter-state supply of goods or services. This is levied and collected by the Government of India and such tax is apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendation of the GST Council.
• Import of goods or services would be treated as inter-state supplies and would be subject to IGST in addition to the applicable customs duties.

Since its implementation in 2017, the GST has achieved the following milestones:

• Widening of India’s tax base: The tax base almost doubled from 66.25 lakhs to 1.28 crores in the last four years (2017-2021).
• Ease of compliance: It brought inefficiencies in indirect tax compliances and reduced the number of indirect tax authorities that businesses needed to interact with.
• Increased logistics efficiency: As per an estimate, it has saved over 50% of logistics effort and transit time of goods movement by eliminating the entry tax, and check-posts (inter-state barriers) and introducing nationwide e-way bills.
• Reduced transaction costs: By eliminating 2% of the additional cost (Central Sales Tax) on all interstate transactions, the GST has significantly reduced the overall transaction cost.
• Increase in transparency: It allows taxpayers to track their compliances online on the GST Portal, and get the basic information about any business by entering the respective PAN or GSTIN, etc, thus increasing transparency in the system.

However, several challenges still need to be addressed, such as:

• Overestimation of GST collection: Actual collection is lower than initial estimations, thereby raising questions on the efficacy of the GST regime.
• Complex tax slabs: A complex slab structure with frequent switching of items between them leads to confusion in the compliance system and unethical profiteering due to fluctuating tax rates.
• Complex and cumbersome filing structure: The current GST return filing structure puts the onus of burden on the taxpayer with requirements of possessing a valid tax invoice/debit note, actual receipt of goods/service by the recipient, etc., making it a complex and cumbersome tax regime.
• Ambiguous and conflicting AAR judgments: Conflicting rulings from various benches of the Appellate Authority for Advance Ruling across different States have led to confusion among taxpayers.
• Tax evasion and tax fraud: GST tax evasion and tax fraud, including the use of fraudulent invoices, fake e-way bills, etc have led to massive losses in revenue collection (approximately Rs. 40,000 crore).

While the government has worked to solve many issues, considerable intervention is still required to bring GST to its full efficiency. The proposal to have a single return will simplify compliance and do away with matching requirements. Such a step will bring out the true sense of ‘One Nation, One Tax’.

National Income Accounting (NIA) refers to methods or techniques used to measure the economic activity of a national economy as a whole. The national income of a nation can be calculated in terms of GDP, GNP, NDP, and NNP. However, the Gross Domestic Product (GDP) is the most acceptable indicator worldwide. GDP refers to the total market value of all the final goods and services produced in an economy in a given period. In India, GDP is estimated by the Central Statistical Office (CSO). Three methods used in its calculation are the added Method (or the Product Method), Income Method, and Expenditure Method.

Significance of national accounting:

• International comparison: National Income Accounting measures the growth rate and development of nations, which can be used to compare the standard of living of different countries.
• Business decisions: It reflects the relative contribution and potential of various sectors of the economy, which guides the business class to plan for future production.
• Policy formulation: It throws light on the distribution of income and resources in the economy, which helps the government in the proper allocation of resources to bring inequality and ensure the development of the nation.
• Policy evaluation: Income accounting identifies specific economic achievements and failures, which help the people of the nation in evaluating the policies of the government.
• Annual budget: It shapes the budgetary policy of the government, including borrowing and tax policy to neutralize the fluctuations of income and employment. The government adopts a deficit or surplus budget to arrest depression or inflation in an economy. The factors affecting the GDP of a country include:
• Natural resources: The geographical location and availability of natural resources like coal, iron and timber etc. affects the level of GDP. Capital: Capital is generally determined by investment that, in turn, depends on other factors like profitability, political stability, etc.
• Labor and entrepreneurship: The quality or productivity of human resources is more important than their number. Manpower planning and education affect the productivity and production capacity of an economy. Technology: This factor is relatively more important for nations with fewer natural resources. The development of technology is determined by the level of invention and innovation in production. Government: Through its policy intervention, the government can provide a favorable business environment for investment in addition to maintaining law and order. Political stability: A stable economy and political system helps in the appropriate allocation of resources. Wars, strikes, and social unrest will discourage investment and business activities.

The GDP as a parameter to judge economic growth is criticized on the fact that parameters like gender inequality, income inequality, and conditions of the poor are not reflected in it. Other indices like the Human Development Index (HDI), Gender Inequality Index (GII), etc. are used to take these parameters into account.

The Non-Cooperation Movement (NCM) of 1920-22, the Civil Disobedience Movement (CDM) of 1930-34 and the Quit India Movement (QIM) of 1942 were the major movements led by Gandhiji in India’s struggle against the British rule. Though led by the same man, it is argued that the QIM differed radically from the earlier Gandhi-led movements, because of the following attributes of the three movements:

• Objectives of the movements: While the main objective of the NCM was Swaraj and that of the CDM was the refusal to obey certain laws, demands, orders, or commands given by the government, the Quit India Movement was less ambiguous in its declared objectives, which were:
  • An immediate end to the British rule over India.
  • Declaration of the commitment of free India to defend itself against all kinds of Imperialism and Fascism.
  • Formation of a provisional government of India after British withdrawal.
  • Sanctioning a civil disobedience movement against the British rule.
• Methods adopted: Both the NCM and CDM were non-violent movements. Gandhiji even ended the NCM when violence occurred at Chauri-Chaura. But during the QIM, Gandhiji was also prepared for riots and violence. Gandhiji wrote in ‘Harijan’ in March 1942 that an armed resistance in self-defence, against a stronger and well-equipped aggressor was to be considered a non-violent act.
• Challenge to the government: Both the NCM and CDM were political campaigns targeted at highlighting the excesses of the British government and asking for reforms. The QIM, however, aimed at complete withdrawal of the British rule in India. In the background of WWII, Gandhiji stressed the need for immediate British withdrawal and gave the slogan of ‘Do or Die’. The emphasis now was not on traditional Satyagraha but on ‘fight to the finish’. It, therefore, represented a challenge to the state machinery.
• Participation: The social base of the NCM and CDM had expanded gradually to accommodate wider popular participation. However, the 1942 movement from the very beginning was a massive uprising to compel the British to withdraw entirely from India.
  • The NCM largely remained an urban-based movement and active participation of women was lacking. Similarly, there was lower participation of industrial workers, Muslims and depressed classes during the CDM.
  • The QIM, on the other hand, was a truly pan-India movement. Not only did the students, government servants and peasants join the revolt, but Gandhiji also gave a call to soldiers, princes and the people of princely states to revolt in order to free India from British rule.
• Repression: Both NCM and CDM were political movements which saw arrests of popular leaders and detentions but the crackdown over the QIM rebellion was unprecedented in its sweep and brutality. The British took advantage of the war-time Emergency powers and used the army against Indians. As many as 57 battalions of British troops had been deployed to crush the agitation.

The Quit India Movement stands apart from the earlier movements in terms of the spirit and enthusiasm that it infused in the ordinary people to support indigenous institutions and structures of power. Though it failed to end the British rule in India, it was a movement that demonstrated the will and reserve of diverse communities of Indians to withstand both the high-handedness of imperial authorities and the elitism of the Indian political class.