Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to the Devolution of funds;
Why in the News?
Recently, Tamil Nadu hosted the Sixteenth State Finance Commission, highlighting the need for fair resource allocation to performing states and addressing fiscal imbalances between the Union and states.
What are the primary challenges faced by State Finance Commissions?
- Vertical Fiscal Imbalance: There is a significant disparity in revenue-raising capabilities between the Union and state governments. The Union holds greater powers to generate revenue, while states bear most of the expenditure responsibilities. This imbalance has led to insufficient funds for states to meet developmental needs.
- Inequitable Resource Distribution: Despite efforts to achieve equitable redistribution through vertical and horizontal devolution, actual outcomes often fall short of expectations.
- For instance, the Fifteenth Finance Commission’s effective devolution was only 33.16% of the Union’s gross tax revenue, despite a declared share of 41%.
- Inadequate Devolution: The increasing reliance on cess and surcharges by the Union government has further constrained the financial resources available to states. This trend undermines the intended fiscal autonomy that states require to implement local schemes effectively.
- Demographic and Urbanization Challenges: Progressive states like Tamil Nadu face unique challenges related to ageing populations and rapid urbanisation, which strain their fiscal capacities while necessitating increased investment in infrastructure and services.
How can compliance with constitutional mandates be improved?
- Strengthening Legal Frameworks: Ensuring that SFCs operate within a robust legal framework that mandates transparency and accountability can enhance compliance with constitutional directives. This includes clearer guidelines on resource allocation and devolution processes.
- Public Disclosure: Mandating public disclosure of financial data and project details in accessible formats can foster greater transparency and allow for citizen engagement in governance, thereby ensuring that SFCs adhere more closely to their constitutional roles.
- Participatory Budgeting: Encouraging participatory budgeting practices can help align state financial decisions with local needs, ensuring that resources are allocated in a manner that reflects constitutional mandates for equitable development across regions.
What reforms are necessary to enhance the effectiveness of SFCs?
- Revising Devolution Principles: A reassessment of the principles governing vertical and horizontal devolution is essential to create a fairer distribution system that recognizes both the needs of less-developed states and the contributions of high-performing states like Tamil Nadu.
- Augmenting State Resources: Increasing the share of gross central taxes allocated to states from 41% to at least 50% could provide states with greater fiscal autonomy, allowing them to fund locally relevant initiatives effectively.
- Focus on Growth Incentives: Developing a progressive resource allocation methodology that rewards high-performing states can stimulate economic growth while ensuring that less-developed states also receive adequate support for their development needs.
- Addressing Urbanization Needs: Specific reforms aimed at addressing urbanization challenges—such as earmarking funds for infrastructure development—will be crucial for progressive states experiencing rapid urban growth.
Conclusion: State Finance Commissions must address fiscal imbalances, enhance devolution principles, and prioritise growth incentives to empower states. This is vital for achieving Sustainable Development Goals (SDGs) through equitable and inclusive development.
Mains PYQ:
Q Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (UPSC IAS/2013)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Oilfields in India;
Why in the News?
The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024, aimed at boosting domestic petroleum and mineral oil production while encouraging private investment to reduce reliance on imports.
What is the Oilfields Bill?
- The Oilfields Bill amends the Oilfields (Regulation and Development) Act of 1948, which originally governed both oil and mineral operations. The amendment seeks to delineate the regulation of petroleum from mining activities, aligning it more closely with contemporary needs in the oil and gas sector. By doing so, it aims to boost domestic production and reduce reliance on imports.
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What are the major proposed changes?
- Definition of Mineral Oils: The Bill expands the definition of “mineral oils” to include naturally occurring hydrocarbons such as crude oil, natural gas, coal bed methane, and shale gas/oil. However, it explicitly excludes coal, lignite, and helium from this definition.
- Introduction of Petroleum Leases: The Bill replaces references to “mining leases” with “petroleum leases,” defining these leases as agreements for various activities including exploration and production of mineral oils. Existing mining leases will remain valid under this new framework.
- Decriminalization of Offences: The Bill removes criminal penalties for violations of the Oilfields Act, replacing them with financial penalties. For instance, violations that previously could lead to imprisonment will now incur fines up to ₹25 lakh, with additional daily penalties for ongoing violations.
- Central Government Powers: The Bill empowers the central government to create rules regarding the granting and regulation of petroleum leases, including aspects like environmental protection and dispute resolution mechanisms.
- Encouragement of Private Investment: It includes provisions aimed at attracting private investment into the sector by ensuring stable lease terms and clarifying regulatory frameworks.
What are the criticisms and concerns?
- Impact on State Rights: Critics, including members from the DMK party, argue that the Bill undermines state rights regarding taxation on mining activities. They fear that redefining leases could shift regulatory power away from states to the central government, potentially affecting state revenue from royalties.
- Legal Challenges: There are concerns that framing petroleum operations under a different legal category could lead to conflicts with existing judicial rulings that affirm state powers over mining taxes. A recent Supreme Court ruling emphasized that states have exclusive rights to tax mining activities.
- Environmental Concerns: Opposition members have raised alarms about the potential environmental impacts of allowing greater private sector involvement in petroleum extraction. They advocate for prioritizing public sector companies like ONGC over private entities.
Way forward:
- Balanced Federal Approach: Establish a collaborative mechanism between the Centre and states to address concerns over taxation and royalties, ensuring equitable revenue sharing while maintaining clear regulatory roles.
- Sustainable Exploration Framework: Mandate robust environmental safeguards and prioritize public sector leadership alongside private investment to balance economic growth with ecological preservation.
Mains PYQ:
Q “In spite of adverse environmental impact, coal mining is still inevitable for Development”. Discuss. (UPSC IAS/2017)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Hornbill Festival
Why in the News?
This year’s edition of the Hornbill Festival has sparked a significant public debate regarding the relaxation of Nagaland’s liquor prohibition law, a subject that has been contentious for over three decades.
What is Hornbill Festival?
- The Hornbill Festival is a celebration held every year from 1 – 10 December, in Kohima, Nagaland.
- The festival was first held in the year 2000.
- It is named after Indian hornbill (Buceros bicornis), the large and colourful forest bird which is displayed in the folklore of most of the state’s tribes.
- Festival highlights include the traditional Naga Morungs exhibition and the sale of arts and crafts, food stalls, herbal medicine stalls, flower shows and sales, cultural medley – songs and dances, fashion shows etc.
- It is a platform for showcasing the major cultural festivals of 14 recognised Naga tribes, each with its unique traditions and practices.
- About Great Indian Hornbill:
- IUCN Status: Vulnerable (upgraded from Near Threatened in 2018), CITES: Appendix I
- Known as great pied hornbill, it is one of the largest hornbill species.
- Can live up to 50 years in captivity.
- Primarily fruit-eating, but also preys on small mammals, reptiles, and birds.
- Revered in many tribal cultures and rituals due to its size and colour.
- Found mainly in India, especially in the Western Ghats and Nilgiris.
- Nilgiris North Eastern Range supports some of the highest densities of nesting birds.
- Known as ‘forest engineers’ or ‘farmers of the forest’, they play a key role in seed dispersal of tropical trees, indicating the health and balance of their forest ecosystems.
What is the Nagaland Liquor Total Prohibition (NLTP) Act 1989?
- The NLTP Act is a law enacted by the Government of Nagaland that prohibits the production, sale, and consumption of alcohol in the state.
- The Act is one of the most stringent liquor prohibition laws in India, and its core features are as follows:
- Key Features of NLTP Act 1989:
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- Complete Ban on Alcohol: The NLTP Act bans the production, sale, and consumption of all forms of alcoholic beverages, including beer, wine, and spirits. This includes both local (like rice beer) and commercial alcohol.
- Exceptions: There are some exceptions under the law, such as alcohol being allowed for medical or scientific purposes and in certain regulated settings, like special licenses for non-local tourists during specific events (e.g., the Hornbill Festival).
- Support from Religious Groups: The Act has received strong support from Christian church bodies, which constitute a majority in the state, as they view alcohol consumption as morally unacceptable and harmful to community life.
Role of Alcohol in the Hornbill Festival:
- The Hornbill Festival is often seen as an exception to the state’s liquor prohibition.
- Thutse (local rice beer) is traditionally consumed during the festival, and according to academic Theyiesinuo Keditsu, the Hornbill Festival is the only time in the year when the state permits the open sale and consumption of alcohol, including Thutse.
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PYQ:
[2016] In which of the following regions of India are you most likely to come across the ‘Great Indian Hornbill’ in its natural habitat?
(a) Sand deserts of northwest India
(b) Higher Himalayas of Jammu and Kashmir
(c) Salt marshes of western Gujarat
(d) Western Ghats |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Library Mission
Why in the News?
The Union Minister for Culture and Tourism has provided information regarding the National Mission on Libraries (NML) Scheme in Rajya Sabha.
About National Mission on Libraries (NML):
| Establishment |
Launched in 2012 by the Ministry of Culture to implement National Knowledge Commission (NKC, 2005) recommendations on library and information sciences development. |
| Objectives |
To modernize public libraries, create a digital database, enhance library staff competence, and promote equitable library access, especially in backward areas. |
| Structural Mandate |
Nodal Agency: Raja Rammohun Roy Library Foundation (RRRLF), Kolkata to oversee and coordinate efforts. (It is an autonomous body under the Ministry of Culture.)
Key Components:
1. National Virtual Library of India (NVLI): Digital resources, census of libraries, and reading habit studies.
2. Model Libraries: 6 Ministry libraries, 35 state central libraries, 35 district libraries, and 629 district libraries with network connectivity.
3. Library Survey: A survey of 5,000 libraries for infrastructure, resources, and usage data.
4. Capacity Building: Training programs for improving skills and knowledge of library staff. |
PYQ:
[2015] India’s Traditional Knowledge Digital Library (TKDL) which has a database containing formatted information on more than 2 million medicinal formulations is proving a powerful weapon in country’s fight against erroneous patents. Discuss the pro and cons of making the database available publicly available under open source licensing. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Mission on Cultural Mapping (NMCM)
Why in the News?
The Union Minister for Culture and Tourism has provided details of the National Mission on Cultural Mapping in the Rajya Sabha.
About National Mission on Cultural Mapping (NMCM):
| Details |
- Launched by: Ministry of Culture, Government of India.
- Implemented by: Indira Gandhi National Centre for the Arts (IGNCA).
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| Aims and Objectives |
- Document India’s cultural heritage, including art forms, artists, crafts, and performing arts.
- Mapping of 6.5 lakh villages across India; Initial stages will focus on Bihar.
- IT-enabled platform to store and manage cultural data. Web portal and mobile app (Mera Gaon Meri Dharohar).
Mera Gaon Meri Dharohar (MGMD):
- Part of NMCM, by the Ministry of Culture and IGNCA.
- Purpose: Documents India’s villages, focusing on culture, history, and traditions.
- 7 Categories: Covers Arts & Crafts, Ecology, Scholastic Traditions, Epics, History, Architecture, and unique features.
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| Features |
- Raise awareness about cultural heritage’s role in economic development and national unity.
- Create National Register of Artists and Art Practices.
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PYQ:
[2018] Safeguarding the Indian Art Heritage is the need of the moment. Discuss. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ratapani Wildlife Sanctuary; Madhav National Park
Why in the News?
- Ratapani Wildlife Sanctuary in Madhya Pradesh has become India’s 57th tiger reserve after receiving approval from the Union Ministry of Environment, Forest, and Climate Change.
- Madhav National Park also received approval to be declared a tiger reserve, which will make it India’s 58th tiger reserve after the official notification.
About Ratapani Tiger Reserve and Madhav Tiger Reserve:
|
Ratapani TR |
Madhav TR |
| Location |
- Raisen district, Madhya Pradesh, Vindhya Range, 50 km from Bhopal;
- 824 sq km (318 sq mi) total area.
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- Shivpuri district, Madhya Pradesh, near the Madhav National Park;
- 354.85 sq km (137.3 sq mi) total area.
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| History |
- Established as Wildlife Sanctuary in 1976.
- Designated as Tiger Reserve on 2 Dec 2024
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- It was initially a national park.
- Designated as Shivpuri National Park in 1956.
- Renamed as Madhav National Park in 1959 after Madho Raj Scindia, Maharaja of Gwalior.
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| Flora and Fauna |
- Biome: Dry and moist deciduous forests, 55% covered with teak.
- Fauna: Tigers, leopards, spotted deer, sloth bear, wild boar, sambar, jackals, wild dogs.
- Water Bodies: Barna Reservoir, Ratapani Dam, seasonal streams.
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- Biome: Dry deciduous forests with significant scrub and grasslands.
- Fauna: Tigers, leopards, spotted deer, sloth bear, wild boar, sambar, jackals, wild dogs.
- Water Bodies: Sindh River, Pitakhal Lake, and seasonal streams.
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Why and when did the first Tiger Reserve come up in India?
- A tiger reserve is a protected area created under the Project Tiger initiative launched in 1973 by the Indian government to protect tigers and their natural habitats.
- A TR is administered by the National Tiger Conservation Authority.
- These reserves are a part of the conservation efforts to ensure the survival of tigers, preserve biodiversity, and maintain ecological balance.
- The first TR in India was the Corbett Tiger Reserve in Uttarakhand, established in 1973. It was also the first national park to be part of the Project Tiger initiative.
- Key Features of a Tiger Reserve:
- Core Area: A core area is designated as a national park or sanctuary, where human activity is restricted to protect the wildlife.
- Buffer Area: Surrounding the core area, the buffer zone consists of a mix of forest and non-forest land, used for controlled human activity while ensuring wildlife conservation. These buffer zones serve as transitional areas for wildlife, providing essential corridors for movement.
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PYQ:
[2020] Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”?
(a) Corbett
(b) Ranthambore
(c) Nagarjunsagar-Srisailam
(d) Sunderbans |
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