Note4Students
From UPSC perspective, the following things are important :
Prelims level: FRBM Act
Mains level: Paper 3- Fiscal consolidation
Context
The fiscal deficit for the year 2022-23 is higher than what was recommended by the Fifteenth Finance Commission. However, if we consider the direction of consolidation, it is towards a reduction in the fiscal deficit.
The budget focuses on capital investment
- This year’s Union budget projects an increase in capex by Rs 3.14 lakh crore, as compared to the budgeted numbers of the previous fiscal.
- Given the economy’s savings-investment profile and macroeconomic uncertainties due to the pandemic, private and household investments are likely to be reactive to the general economic environment.
- Achieving sustainable recovery: For the government, making capital investment in such uncertain times assumes a much higher priority and is equally indispensable for achieving a strong and sustainable recovery from the pandemic.
- Increasing share of government: As per National Accounts data, gross fixed capital formation by the general government (Centre and states) has shown an increase as a percentage of GDP from 3.48 in 2011-12 to 3.82 in 2019-20, while other sectors, particularly households, the share fell from 15.75 per cent to 11.39 per cent during the same period.
- The fiscal stance taken in the post-pandemic budgets for higher capital spending, including the budget of 2022-23, is likely to further enhance the general government share in overall capital formation.
- Important role of the States: it is also important to recognise that two-thirds of the general government’s capital expenditure is undertaken by states and in this context, the announcement of the Rs 1 lakh crore interest-free loans to the states to increase public investment has been a significant step.
- Since states taken together have a higher share in the country’s public capital spending, effective absorption of this additional borrowing facility will be critical for higher public investment.
Three broad trends on Fiscal Consolidation
- 1] Increase in taxes: The increase in taxes by Rs 5.71 lakh crore between 2020-21 (the first year of the pandemic) and 2022-23 shows that the fiscal challenges have eased, but remain present as we navigate economic recovery in uncertain times.
- 2] Reduction in revenue deficit: Between 2020-21 and 2022-23 (BE), the reduction in revenue deficit has been substantial — from 7.3 per cent to 3.8 per cent of GDP.
- 3] Revenue deficit dominates fiscal deficit: Compositionally, revenue deficit continues to be more than 55 per cent of the fiscal deficit and the management of such a deficit has few important considerations for revenue expenditure, that is, interest payments and allocation under various centrally sponsored and central sector schemes.
- Role of CSS in revenue deficit: Aggregate allocation under centrally sponsored and central sector schemes (CSS) as per the 2022-23 (BE) is Rs 3.83 lakh crore and the interest payment cost of the Union government is Rs 9.56 lakh crore.
- Beyond scheme-wise allocations, it is also important to consider CSS allocation as an issue of macro-fiscal management issue at the Union and state level, especially when it is contributing to the high revenue deficit of the central government and binding state resources for matching contribution, thereby increasing states’ deficit.
Understanding the direction of fiscal consolidation
- The fiscal deficit for the year 2022-23 is higher than what was recommended by the Fifteenth Finance Commission.
- However, if we consider the direction of consolidation, it is towards a reduction in the fiscal deficit.
- Though in the medium-term, the fiscal story is about supporting recovery, it is also true that there is no “one-size-fits-all” solution to fiscal consolidation and debt sustainability.
Conclusion
The direction of fiscal consolidation rather than a specific quantified path in an unprecedented time like this is probably the most appropriate consideration.
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From UPSC perspective, the following things are important :
Prelims level: E-Shram Portal
Mains level: Unemployment since the pandemic
Over 2 crore people who have signed up for the Centre’s portal for unorganised sector workers hold a Graduate Degree.
E-Shram
- On August 26, 2021, the Ministry of Labour and Employment (MOLE) launched the E-Shram, the web portal for creating a National Database of Unorganized Workers (NDUW), which will be seeded with Aadhaar.
- It seeks to register an estimated 398-400 million unorganized workers and to issue an E-Shram card.
Issues with E-Shram
(A) Time constraints
- Long process: Given the gigantic nature of registering each worker, it will be a long-drawn process.
- No gestation period: The Government has not mentioned a gestation period to assess its strategy and efficiency.
- No hasty process: Employers are or required their workers to register even. While the Government can appeal to them, any penal measure will hurt the ease of doing business.
(B) Pandemic hides
- Considering the estimated 380 million workers as the universe of registration — debatable as the novel coronavirus pandemic has pushed lakhs of workers into informality.
(C) Data security
- Privacy: One of the vital concerns of e-portals is data security, including its potential abuse especially when it is a mega-sized database.
- No national framework yet: There are also media reports pointing out the absence of a national architecture relating to data security.
- Local server issues: It has been reported that in some states such as Maharashtra, the server was down for a few days.
(D) Structural issue
- Aadhaar seeding: Many workers will not have an Aadhaar-seeded mobile or even a smartphone. Aadhaar-seeding is a controversial issue with political overtones, especially in the North-eastern regions.
- Eligibility: There are several issues concerning the eligibility of persons to register as well as the definitional issues.
- Exclusion: By excluding workers covered by EPF and ESI, lakhs of contract and fixed-term contract workers will be excluded from the universe of UW. Hazardous establishments employing even a single worker will have to be covered under the ESI, which means these workers also will be excluded.
- No benefits for the aged: The NDUW excludes millions of workers aged over 59 from its ambit, which constitutes age discrimination.
(D) Complex identities of workers
- Migration: Many are circular migrant workers and they quickly, even unpredictably, move from one trade to another.
- Mixed work: Many others perform formal and informal work as some during non-office hours may belong to the gig economy, for example as an Uber taxi or a Swiggy employee. They straddle formal and informal sectors.
- Gig workers: Even though MOLE has included gig workers in this process, it is legally unclear whether the gig/platform worker can be classified first as a worker at all.
(E) Other impediments
- Dependence on States: The central government will have to depend on the state governments for this project to be successful.
- Lack of coordination: In many States, the social dialogue with the stakeholders especially is rather weak or non-existent. The success of the project depends on the involvement of a variety of stakeholders apart from trade unions.
- Corruption: There is also the concern of corruption as middle-service agencies such as Internet providers might charge exorbitant charges to register and print the E-Shram cards.
Benefits: No immediate carrot
- Workers stand to gain by registration in the medium to long run.
- But the instant benefit of accident insurance up to ₹0.2 million to registered workers is surely not an attractive carrot.
- The main point of attraction is the benefits they stand to gain during normal and crisis-ridden periods such as the novel coronavirus pandemic now which the Government needs to disseminate properly.
Way forward
- E-Shram is a vital system to provide hitherto invisible workers much-needed visibility.
- It will provide the Labour Market Citizenship Document to them.
- The govt should go one step further for triple linkage for efficient and leakage-less delivery of all kinds of benefits and voices to workers/citizens: One-Nation-One-Ration Card (ONOR), E-Shram Card (especially bank account seeded), and the Election Commission Card.
- Last but not least, registrations cannot be a source of exclusion of a person from receiving social assistance and benefits.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aksai Chin
Mains level: Paper 2- Border conflict with China
Context
In a recent television interview, the Indian Army Chief, General M.M. Naravane, argued that “out of the five or six friction points (in Ladakh), five have been solved”.
Friction points in Ladakh
- ‘Friction point’ are the points of Chinese ingress into hitherto India-controlled territory in Ladakh, where this control is exercised by the Army and the Indo-Tibetan Border Police (ITBP) through regular patrols to the claimed areas.
- These ‘friction points’ are Depsang, Galwan, Hot Springs, Gogra, North bank of Pangong Tso, Kailash Range and Demchok.
- By asserting that only one of the friction points is remaining to be resolved — Hot Springs or PP15, Army Chief implicitly ruled out Depsang as an area to be resolved.
- This attempt to delink the strategically important area of Depsang from the ongoing Ladakh border crisis is worrying.
Significance of Depsang
- Depsang is an enclave of flat terrain located in an area the Army classifies as Sub-Sector North (SSN), which provides land access to Central Asia through the Karakoram Pass.
- The Army has always identified Depsang plains as where it finds itself most vulnerable in Ladakh, devising plans to tackle the major Chinese challenge.
- SSN’s flat terrain of Depsang, Trig Heights and DBO — which provides direct access to Aksai Chin — is suited for mechanised warfare but is located at the end of only one very long and tenuous communication axis for India.
- China, in turn, has multiple roads that provide easy access to the area.
- This leaves SSN highly vulnerable to capture by the PLA, with a few thousands of square kilometres from the Karakoram Pass to Burtse, likely to be lost.
- Nowhere else in Ladakh is the PLA likely to gain so much territory in a single swoop.
- SSN lies to the east of Siachen, located between the Saltoro ridge on the Pakistani border and the Saser ridge close to the Chinese border.
- On paper, it is the only place where a physical military collusion can take place between Pakistan and China — and the challenge of a two-front war can become real in the worst-case scenario.
- If India loses this area, it will be nearly impossible to launch a military operation to wrest back Gilgit-Baltistan from Pakistan.
Dangers of delinking Depsang
- Invalidation of Indian claims: The biggest danger of delinking Depsang from the current border crisis in Ladakh, however, is of corroborating the Chinese argument, which invalidates the rightful Indian claim over a large swathe of territory.
- In sparsely populated areas like Ladakh, with limited forward deployment of troops, the only assertion of territorial claims is by regular patrolling.
- By arguing that the blockade at Y-junction predates the current stand-off — a ‘legacy issue’ that goes back years — the Chinese side can affirm that Indian patrols never had access to this area and thus India has no valid claim on the territory.
Conclusion
As was demonstrated by China in the aftermath of the 1962 War, there should be no holding back in painstakingly asserting one’s claims when it comes to safeguarding the territory.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Chandrayaan-3
Mains level: Not Much
ISRO plans to execute the Chandrayaan-3 mission in August this year.
What is Chandrayaan-3 Mission?
- The Chandrayaan-3 mission is a follow-up of Chandrayaan-2 of July 2019, which aimed to land a rover on the lunar South Pole.
Chandrayaan-2: A quick recap
- Chandrayaan-2 consisted of an Orbiter, Lander and Rover, all equipped with scientific instruments to study the moon.
- The Orbiter would watch the moon from a 100-km orbit, while the Lander and Rover modules were to be separated to make a soft landing on the moon’s surface.
- ISRO had named the Lander module as Vikram, after Vikram Sarabhai, the pioneer of India’s space programme, and the Rover module as Pragyaan, meaning wisdom.
Utility of the Orbiter
- The Orbiter part of the mission has been functioning normally. It is carrying eight instruments.
- Each of these instruments has produced a handsome amount of data that sheds new light on the moon and offers insights that could be used in further exploration.
Inception of Chandrayaan 3
- The subsequent failure of the Vikram lander led to the pursuit of another mission to demonstrate the landing capabilities needed for the Lunar Polar Exploration Mission proposed in partnership with Japan for 2024.
Its design
- The lander for Chandrayaan-3 will have only four throttle-able engines.
- Unlike Vikram on Chandrayaan-2 which had five 800N engines with a fifth one being centrally mounted with a fixed thrust.
- Additionally, the Chandrayaan-3 lander will be equipped with a Laser Doppler Velocimeter (LDV).
Back2Basics: Chandrayaan-1 Mission
- The Chandrayaan-1 mission was launched in October 2008 was ISRO’s first exploratory mission to the moon, in fact to any heavenly body in space.
- The mission was designed to just orbit around the moon and make observations with the help of the instruments onboard.
- The closest that Chandrayaan-1 spacecraft came to the moon was in an orbit 100 km from its surface.
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From UPSC perspective, the following things are important :
Prelims level: Definition of Forests
Mains level: Not Much
The Union Ministry of Environment, Forest & Climate Change has informed about the criteria used to define forest in India.
Defining Forests universally
- As per the Conference of Parties (CoP) 9-Kyoto Protocol, the forest can be defined by any country depending upon the capacities and capabilities of the country.
- Forest- Forest is defined structurally on the basis of
- Crown cover percentage: Tree crown cover- 10 to 30% (India 10%)
- Minimum area of stand: area between 0.05 and 1 hectare (India 1.0 hectare) and
- Minimum height of trees: Potential to reach a minimum height at maturity in situ of 2 to 5 m (India 2m)
India’s definition of Forests
The definition of forest cover has clearly been defined in all the India State of Forest Report (ISFR) and in all the International communications of India.
- The forest cover is defined as ‘all land, more than one hectare in area, with a tree canopy density of more than 10 percent irrespective of ownership and legal status.
- Such land may not necessarily be a recorded forest area. It also includes orchards, bamboo and palm’.
Classification of forest cover
In ISFR 2021 recently published has divided the forest cover as:
- Inside Recorded Forest Area: These are basically natural forests and plantations of Forest Department.
- Outside Recorded Forest Area: These cover mango orchards, coconut plantations, block plantations of agroforestry.
Back2Basics: Forest Classification in India
The Forest Survey of India (FSI) classifies forest cover in 4 classes.
- Very Dense forest: All lands with tree cover (including mangrove cover) of canopy density of 70% and above.
- Moderately dense forest: All lands with tree cover (including mangrove cover) of canopy density between 40% and 70%.
- Open forests: All lands with tree cover (including mangrove cover) of canopy density between 10% and 40%.
- Scrubs: All forest lands with poor tree growth mainly of small or stunted trees having canopy density less than 10%.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ramsar Convention, Coringa WLS
Mains level: Not Much
Godavari Estuary in Coringa Wildlife Sanctuary (CWS) is facing due ignorance despite meeting all nine criteria of Ramsar Convention.
Godavari Estuary
- The estuary, including 235.70 sq. km Coringa Wildlife Sanctuary (CWS), is one of the rarest eco-regions on the earth.
- It is also home to India’s second-largest mangrove cover after the Sundarbans.
- The CWS is inhabited by 115 endangered fishing cats (Prionailurus viverrinus), Olive Ridley turtles, Indian smooth-coated otter, and saltwater crocodiles.
What are the nine criteria laid out by Ramsar Convention?
- Criterion 1: “it contains a representative, rare, or unique example of a natural or near-natural wetland type found within the appropriate biogeographic region.”
- Criterion 2: “it supports vulnerable, endangered, or critically endangered species or threatened ecological communities.”
- Criterion 3: “it supports populations of plant and/or animal species important for maintaining the biological diversity of a particular biogeographic region.”
- Criterion 4: “it supports plant and/or animal species at a critical stage in their life cycles, or provides refuge during adverse conditions.”
- Criterion 5: “it regularly supports 20,000 or more waterbirds.”
- Criterion 6: “it regularly supports 1% of the individuals in a population of one species or subspecies of waterbird.”
- Criterion 7: “it supports a significant proportion of indigenous fish subspecies, species or families, life-history stages, species interactions and/or populations that are representative of wetland benefits and/or values and thereby contributes to global biological diversity.”
- Criterion 8: “it is an important source of food for fishes, spawning ground, nursery and/or migration path on which fish stocks, either within the wetland or elsewhere, depend.”
- Criterion 9: “it regularly supports 1% of the individuals in a population of one species or subspecies of wetland-dependent non-avian animal species.”
Back2Basics: Ramsar Convention
- The Convention on Wetlands of International Importance (better known as the Ramsar Convention) is an international agreement promoting the conservation and wise use of wetlands.
- It is the only global treaty to focus on a single ecosystem.
- The convention was adopted in the Iranian city of Ramsar in 1971 and came into force in 1975.
- Traditionally viewed as a wasteland or breeding ground of disease, wetlands actually provide fresh water and food and serve as nature’s shock absorber.
- Wetlands, critical for biodiversity, are disappearing rapidly, with recent estimates showing that 64% or more of the world’s wetlands have vanished since 1900.
- Major changes in land use for agriculture and grazing, water diversion for dams and canals, and infrastructure development are considered to be some of the main causes of loss and degradation of wetlands.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: AI
Mains level: Paper 3- Climate cost of AI
Context
While there is an allure to national dreams of economic prosperity and global competitiveness, underwritten by AI, there is an environmental cost.
Issues with AI
- Unfair race for dominance in AI: A few developed economies possess certain material advantages right from the start, they also set the rules.
- They have an advantage in research and development, and possess a skilled workforce as well as wealth to invest in AI.
- Inequality in terms of governance: We can also look at the state of inequity in AI in terms of governance: How “tech fluent” are policymakers in developing and underdeveloped countries?
- What barriers do they face in crafting regulations and industrial policy?
- At the same time, there is an emerging challenge at the nexus of AI and climate change that could deepen this inequity.
Climate impact of AI
- The climate impact of AI comes in a few forms: The energy use of training and operating large AI models is one.
- In 2020, digital technologies accounted for between 1.8 per cent and 6.3 per cent of global emissions.
- In November 2021, UNESCO adopted the In November 2021, UNESCO adopted the Recommendation on the Ethics of Artificial Intelligence, calling on actors to “reduce the environmental impact of AI systems, including but not limited to its carbon footprint.” , calling on actors to “reduce the environmental impact of AI systems, including but not limited to its carbon footprint.”
Inequitable access to resources
- Both global AI governance and climate change policy (historically) are contentious, being rooted in inequitable access to resources.
- Developing and underdeveloped countries face a challenge on two fronts:
- 1] AI’s social and economic benefits are accruing to a few countries.
- 2] Most of the current efforts and narratives on the relationship between AI and climate impact are being driven by the developed West.
Way forward
- Assess technology-led priorities: Governments of developing countries, India included, should also assess their technology-led growth priorities in the context of AI’s climate costs.
- It is argued that as developing nations are not plagued by legacy infrastructure it would be easier for them to “build up better”.
Consider the question “How Artificial Intelligence technologies could transform the world as we know it? What are the concerns with it?
Conclusion
It may be worth thinking through what “solutions” would truly work for the unique social and economic contexts of the communities in our global village.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Criminal laws mentioned
Mains level: Need for reforming criminal justice system
The Central government has initiated the process for comprehensive amendment of criminal laws in India in consultation with all stakeholders
Criminal Laws in India
Indian criminal laws are divided into three major acts:
- Indian Penal Code, 1860: It is a comprehensive code intended to cover all substantive aspects of criminal law.
- Code of Criminal Procedure, 1973: CrPC defines the rules with which substantive laws can be enforced.
- Indian Evidence Act, 1872: It contains a set of rules and allied issues governing the admissibility of evidence in the Indian courts of law.
Other laws
Besides these major acts, special Criminal Laws are also passed by the Indian Parliament which includes:
- Narcotic Drugs and Psychotropic Substances Act
- Prevention of Corruption Act
- Food Adulteration Act
- Dowry Prohibition Act
- The Defence of India Act, etc.
Issues with these laws
- Colonial ideas prevail in the code.
- Some laws don’t reflect the aspirations of India’s liberal Constitution
- It does not recognize the individual agency of citizens of free India
- Too many laws promote patriarchal attitudes, biased against women
- Sedition laws are misused by the state
- Tech crimes, cyber crimes, sexual offenses need to be defined
- Risk of excessive policing, which leads to harassment of people.
- Need to harmonize statute books with court rulings, which have often expanded the rights of people.
- Some provisions are disadvantageous for the underprivileged who are trapped in jail for long but favour the powerful, who get bail very easily
- Influence of media trials on the judiciary while using the IPC.
Why amend them?
- The evolution of criminal laws is a continuous process.
- They need to be made in accordance with the contemporary needs and aspirations of people.
- Malimath Committee has called for reform in India’s criminal justice system.
Progress made to date
- The entire procedure is a long-drawn-out one and no time limit can be fixed or given for this legislative process.
- Legislation of such laws is a complex and lengthy exercise given the spectrum of divergent views of stakeholders.
- The Home Ministry is seeking suggestions from various stakeholders and judicial luminaries in this regard.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Collegium system, NJAC
Mains level: Collegium system
The Supreme Court Collegium headed by Chief Justice N.V. Ramana has recommended to the Centre the names of six judicial officers for appointment as judges of the Delhi High Court.
What is Collegium System?
- The Collegium of judges is the Indian Supreme Court’s invention.
- It does not figure in the Constitution, which says judges of the Supreme Court and High Courts are appointed by the President and speaks of a process of consultation.
- In effect, it is a system under which judges are appointed by an institution comprising judges.
- After some judges were superseded in the appointment of the CJI in the 1970s, and attempts made subsequently to effect a mass transfer of High Court judges across the country.
- Hence there was a perception that the independence of the judiciary was under threat. This resulted in a series of cases over the years.
Evolution: The Judges Cases
- First Judges Case (1981) ruled that the “consultation” with the CJI in the matter of appointments must be full and effective.
- However, it rejected the idea that the CJI’s opinion, albeit carrying great weight, should have primacy.
- Second Judges Case (1993) introduced the Collegium system, holding that “consultation” really meant “concurrence”.
- It added that it was not the CJI’s individual opinion, but an institutional opinion formed in consultation with the two senior-most judges in the Supreme Court.
- Third Judges Case (1998): On a Presidential Reference for its opinion, the Supreme Court, in the Third Judges Case (1998) expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues.
The procedure followed by the Collegium
Appointment of CJI
- The President of India appoints the CJI and the other SC judges.
- As far as the CJI is concerned, the outgoing CJI recommends his successor.
- In practice, it has been strictly by seniority ever since the supersession controversy of the 1970s.
- The Union Law Minister forwards the recommendation to the PM who, in turn, advises the President.
Other SC Judges
- For other judges of the top court, the proposal is initiated by the CJI.
- The CJI consults the rest of the Collegium members, as well as the senior-most judge of the court hailing from the High Court to which the recommended person belongs.
- The consultees must record their opinions in writing and it should form part of the file.
- The Collegium sends the recommendation to the Law Minister, who forwards it to the Prime Minister to advise the President.
For High Courts
- The CJs of High Courts are appointed as per the policy of having Chief Justices from outside the respective States. The Collegium takes the call on the elevation.
- High Court judges are recommended by a Collegium comprising the CJI and two senior-most judges.
- The proposal, however, is initiated by the Chief Justice of the High Court concerned in consultation with two senior-most colleagues.
- The recommendation is sent to the Chief Minister, who advises the Governor to send the proposal to the Union Law Minister.
Does the Collegium recommend transfers too?
- Yes, the Collegium also recommends the transfer of Chief Justices and other judges.
- Article 222 of the Constitution provides for the transfer of a judge from one High Court to another.
- When a CJ is transferred, a replacement must also be simultaneously found for the High Court concerned. There can be an acting CJ in a High Court for not more than a month.
- In matters of transfers, the opinion of the CJI “is determinative”, and the consent of the judge concerned is not required.
- However, the CJI should take into account the views of the CJ of the High Court concerned and the views of one or more SC judges who are in a position to do so.
- All transfers must be made in the public interest, that is, “for the betterment of the administration of justice”.
Loopholes in the Collegium system
- Lack of Transparency: Opaqueness and a lack of transparency, and the scope for nepotism are cited often.
- Judges appointing Judge: The attempt made to replace it with a ‘National Judicial Appointments Commission’ was struck down by the court in 2015 on the ground that it posed a threat to the independence of the judiciary.
- Criteria: Some do not believe in full disclosure of reasons for transfers, as it may make lawyers in the destination court chary of the transferred judge.
Way ahead
- In respect of appointments, there has been an acknowledgment that the “zone of consideration” must be expanded to avoid criticism that many appointees hail from families of retired judges.
- The status of a proposed new memorandum of procedure, to infuse greater accountability, is also unclear.
- Even the majority opinions admitted the need for transparency, now Collegiums’ resolutions are now posted online, but reasons are not given.
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From UPSC perspective, the following things are important :
Prelims level: Delimitation of constituencies
Mains level: Delimitation in Jammu and Kashmir
The J&K Delimitation Commission is likely to get a second extension of its term this month.
What is Delimitation and why is it needed?
- Delimitation is the act of redrawing boundaries of an assembly or Lok Sabha seat to represent changes in population over time.
- This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
- The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
- Aside from changing the limits of a constituency, the process may result in a change in the number of seats in a state.
Delimitation in J&K
- Assembly seats in J&K were delimited in 1963, 1973 and 1995.
- Prior to August 5, 2019, carving out of J&K’s Assembly seats was carried out under the J&K Constitution and Jammu and Kashmir Representation of the People Act, 1957.
- Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India.
- However, the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
- There was no census in the state in 1991 and hence no Delimitation Commission was set up by the state until 2001 census.
Why is it in the news again?
- After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
- On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
- As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.
Factors considered during Delimitation
- The number of districts had increased from 12 to 20 and tehsils from 52 to 207 since the last delimitation.
- The population density ranged from 29 persons a square km in Kishtwar to 3,436 persons a square km in Srinagar.
- The remoteness of the place, inaccessibility etc are also considered during the exercise.
Concerns raised over Delimitation
- Jammu vs. Kashmir: Concerns had been expressed over how the delimitation process may end up favoring the Jammu region over Kashmir in terms of the seats.
- Under-representation of Ladakh: Arguments have been made on how Ladakh has been underrepresented, with demands for statehood/sixth schedule.
- Non-proportionate reservations: It is argued that seats for STs should’ve been divided in both Jammu province & Kashmir province, as the ST population is almost equal.
Do not forget to answer this PYQ in the comment box:
Q.With reference to the Delimitation Commission, consider the following statements:
- The orders of the Delimitation Commission cannot be challenged in a Court of Law.
- When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot affect any modifications in the orders.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Post your answers here:
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From UPSC perspective, the following things are important :
Prelims level: Virtual Digital Assets
Mains level: Taxing crypto assets
Recently, The Central Board of Direct Taxes (CBDT) issued detailed guidelines on the Tax Deducted at Source (TDS) rule for Virtual Digital Assets (VDAs) such as cryptocurrencies .
What are Virtual Digital Assets?
- To define the term “virtual digital asset”, a new clause (47A) is proposed to be inserted into section 2 of the Act.
- A virtual digital asset is proposed to mean any information or code or number or token (not being Indian currency or any foreign currency):
- Generated through cryptographic means or otherwise
- Providing a digital representation of value that is exchanged with or without consideration with the promise or representation of having inherent value
- Functions as a store of value or a unit of account and includes its use in any financial transaction or investment, but not limited to, investment schemes
- Can be transferred, stored, or traded electronically.
- Non-fungible token (NFT) and; any other token of similar nature are included in the definition.
Why tax them?
- Popularity: Virtual digital assets have gained tremendous popularity in recent times and the volumes of trading in such digital assets have increased substantially.
- Growing market: Further, a market is emerging where payment for the transfer of a virtual digital asset can be made through another such asset.
- Increased transactions: There has been a phenomenal rise in such transactions and the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.
- Prevalence of gifting: The gifting of virtual digital assets is also a popular mode of exchange.
Key takeaways from the FM’s speech
- The bill provides for the definition of virtual digital assets which is wide enough to cover emerging digital assets including NFT, assets in metaverse, cryptocurrencies, etc.
- This recognition of digital assets under income tax is NOT akin to granting legal status.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MGNREGS
Mains level: Not Much
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers are still waiting for almost ₹3,360 crore in pending wage payments, with the largest pending payments in West Bengal, Uttar Pradesh and Rajasthan.
What is MGNREGA?
- The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
- This is labour law and social security measure that aims to guarantee the ‘Right to Work’.
- The act was first proposed in 1991 by P.V. Narasimha Rao.
Features of the scheme
- MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
- The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
- Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
- Thus, employment under MGNREGA is a legal entitlement.
Tap to read more about MGNREGS:
[Burning Issue] Reorienting MGNREGA in times of COVID
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Free speech and press
The India Press Freedom Report, 2021was recently released by the Rights and Risks Analysis Group (RRAG).
India Press Freedom Report, 2021: Key Highlights
- Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Tripura topped the list of States and Union Territories where journalists and media houses were targeted in 2021.
- It is followed by Delhi (8), Bihar (6), Assam (5), Haryana and Maharashtra (4 each), Goa and Manipur (3 each), Karnataka, Tamil Nadu and West Bengal (2 each), and Andhra Pradesh, Chhattisgarh and Kerala (1each).
- While J&K recorded the maximum attacks by State actors, Tripura had the most cases of attacks by non-State actors, the analysis of data showed.
Significance of the report
- The widespread attacks on the press freedom are an indicator of the continuing deterioration of civic space in the country.
- It represents the status of free speech exercised in our country.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sultanpur National Park
Mains level: NA
Homestays would soon be allowed in the villages around Sultanpur National Park in Gurugram to promote tourism and provide an opportunity for the visitors to catch a glimpse of rural life in Haryana.
Sultanpur National Park
- Sultanpur NP is located at Sultanpur village on Gurugram-Jhajjar highway, 15 km from Gurugram, Haryana and 50 km from Delhi.
- It was a bird sanctuary, ideal for birding and bird lookers. Its area covers approximately 142.52 hectares.
- Migratory birds start arriving in the park in September. Birds use the park as a resting place till the following March-April.
- During summer and monsoon months the park is inhabited by many local bird species.
- In April 1971, the Sultanpur Jheel inside the park (an area of 1.21 sq. km.) was accorded Sanctuary status under section 8 of the Punjab Wildlife Preservation Act of 1959.
- The status of the park was upgraded to National Park under the Wildlife (Protection) Act, 1972 in July 1991.
Why must we remember it?
- It is one of the few NPs in the small state of Haryana.
- Another NP in Haryana is Kalesar National Park.
Important Fauna at the Park
- Mammals: Blackbuck, Nilgai, Hog deer, Sambar, Leopard etc.
- Birds: Siberian Cranes, Greater Flamingo, Demoiselle Crane etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Poshan Shakti Nirman
Mains level: Paper 2- Low allocation for social sector
Context
India continues to rank poorly in various global indices that reflect the quality of life, human capital or human development in the country. In this context, it was expected that the current Budget would see an expansion in government spending on the social sector.
Need for greater spending on social sector
- In Human Development Index, India ranks 131 out of 189 countries and on the Global Hunger Index, it ranks 101 out of 116 countries.
- The pandemic over the last two years has had a severe impact on the health, education and food security of the poor and informal sector workers.
- The country has been experiencing increasing inequality over the last couple of decades.
Marginal increase in allocation for school education
- In the budget, the government announced that it will expand its ‘one class, oneTVchannel’ scheme instead of announcing enhanced allocations for schools the government announced that it will expand its ‘one class, oneTVchannel’ scheme instead of announcing enhanced allocations for schools so that they can reopen with vigour.
- The budget for school education at ₹63,449 crore is a slight improvement over last year’s ₹54,873 crore (2021-22 budget estimates, BE) and a mere increase of 6% in nominal terms compared to 2020-21 BE of ₹59,845 crore.
- After rechristening the school mid-day meal scheme as Pradhan Mantri Poshan Shakti Nirman, simply called PM Poshan, the allocation for the scheme has reduced from ₹11,500 crore last year to ₹10,233 crore this year.
Low allocation for health
- Despite repeated statements about strengthening the public health system, the overall budget for the Department of Health and Family Welfare at ₹83,000 crore has gone up by only 16% over the BE for 2021-22 and by less than ₹1,000 crore compared to the RE for 2021-22, which is ₹82,921 crore.
- However, by including water and sanitation in the budget for health, there is an increase being shown in health spending as a proportion of GDP.
- Also, even though the budget for the Jal Jeevan Mission has increased from ₹50,000 crore to ₹60,000 crore, only 44% of the allocated funds to the Department of Water and Sanitation for 2021-22 has been spent as on end December 2021.
No indication of plan to extend the PMGKAY
- 60% of the population are covered by ration cards currently under the National Food Security Act.
- Those who were eligible benefited from the additional free foodgrains that they have been given under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
- However, the food subsidy (BE) for 2022-23 at ₹2.06 lakh crore is only enough to cover the regular NFSA entitlements.
- The indication is that there is no plan to extend the PMGKAY.
- The food subsidy RE for 2021-22 is ₹2.86 lakh crore.
Other schemes
- Budgets for important schemes such as Saksham Anganwadi, maternity entitlements and social security pensions are around the same as the allocations for last year.
- The allocation for MGNREGA at ₹73,000 crore also does not reflect the increased demand for work or thethe pending wages of ₹21,000 crore.
Continued negligence
- The resources allocated for crucial government schemes in the fields of health, education, nutrition, and social protection have remained stagnant or show negligent increase.
- In fact, the budgets for these schemes have been declining in real terms since 2015.
- The World Social Protection Report 2020-22, brought out by the International Labour Organization, shows that the spending on social protection (excluding health) in India is 1.4% of the GDP, while the average for low-middle income countries is 2.5%.
Conclusion
This continued negligence does not bode well for inclusive development in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CBDC, Cryptocurrency
Mains level: Digital Rupee: Prospects and challenges
The Union Finance Minister has announced the launch of the Digital Rupee — a central bank digital currency (CBDC) — 2022-23 onwards.
Who will launch the CBDC?
- The Reserve Bank of India will launch the CBDC in the upcoming financial year.
- This follows the government’s plans to launch the CBDC that will be backed by blockchain technology.
What is a CBDC?
- CBDC is a legal tender issued by a central bank in a digital form.
- It is similar to a fiat currency issued in paper and is interchangeable with any other fiat currency.
- One chief difference will be that a Digital Rupee transaction will be instantaneous as opposed to the current digital payment experience.
Features of CBDC
- High-security instrument: CBDC is a high-security digital instrument; like paper banknotes, it is a means of payment, a unit of account, and a store of value.
- Uniquely identifiable: And like paper currency, each unit is uniquely identifiable to prevent counterfeit.
- Liability of central bank: It is a liability of the central bank just as physical currency is.
- Transferability: It’s a digital bearer instrument that can be stored, transferred, and transmitted by all kinds of digital payment systems and services.
What is the need for CBDC?
- Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
- High currency in circulation: India has a fairly high currency-to-GDP ratio.
- Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.
- The growth of cryptocurrencies such as Bitcoin, Ethereum, etc has raised challenges to fiat currencies.
Key benefits offered
- Faster system: CBDC can definitely increase the transmission of money from central banks to commercial banks and end customers much faster than the present system.
- Financial inclusion: Specific use cases, like financial inclusion, can also be covered by CBDC that can benefit millions of citizens who need money and are currently unbanked or banked with limited banking services
- Monetary policy facilitation: The move to bring out a CBDC could significantly improve monetary policy development in India.
- Making of a regional currency: In the cross-border payments domain, India can take a lead by leveraging digital Rupee especially in countries such as Bhutan, Saudia Arabia, and Singapore where NPCI has existing arrangements.
Why is CBDC preferred over Cryptocurrency?
- Sovereign guarantee: Cryptocurrencies pose risks to consumers. They do not have any sovereign guarantee and hence are not legal tender.
- Market volatility: Their speculative nature also makes them highly volatile. For instance, the value of Bitcoin fell from USD 20,000 in December 2017 to USD 3,800 in November 2018.
- Risk in security: A user loses access to their cryptocurrency if they lose their private key (unlike traditional digital banking accounts, this password cannot be reset).
- Malware threats: In some cases, these private keys are stored by technical service providers (cryptocurrency exchanges or wallets), which are prone to malware or hacking.
- Money laundering: Cryptocurrencies are more vulnerable to criminal activity and money laundering. They provide greater anonymity than other payment methods since the public keys engaging in a transaction cannot be directly linked to an individual.
- Regulatory bypass: A central bank cannot regulate the supply of cryptocurrencies in the economy. This could pose a risk to the financial stability of the country if their use becomes widespread.
- Power consumption: Since validating transactions is energy-intensive, it may have adverse consequences for the country’s energy security (the total electricity use of bitcoin mining, in 2018, was equivalent to that of mid-sized economies such as Switzerland).
Way forward
- The launch of CBDCs may not be a smooth affair and still requires more clarity in India. There are still a lot of misconceptions about the concept of digital currency in the country.
- The effectiveness of CBDCs will depend on aspects such as privacy design and programmability.
- There is a huge opportunity for India to take a lead globally via a large-scale rollout and adoption of digital currencies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SEZs, Baba Kalyani Committee
Mains level: SEZ and export promotion
The government has proposed to replace the existing law governing Special Economic Zones (SEZs) with new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.
Why amend SEZ Act, 2005?
- Units in SEZs used to enjoy 100% income tax exemption on export income for the first five years, 50% for the next five years, and 50% of the ploughed back export profit for another five years.
- SEZs now have started losing their sheen after the imposition of minimum alternate tax and the introduction of a sunset clause for the removal of tax incentives.
- The new act will cover all large existing and new industrial enclaves to optimally utilize the available infrastructure and enhance the competitiveness of exports.
- The government will also undertake reforms in customs administration of SEZs with a view to promote ease of doing business.
What are SEZs?
- A Special Economic Zone (SEZ) is an area in which the business and trade laws are different from the rest of the country.
- SEZs are located within a country’s national borders, and their aims include increasing trade balance, employment, increased investment, job creation, and effective administration.
- To encourage businesses to set up in the zone, financial policies are introduced.
- These policies typically encompass investing, taxation, trading, quotas, customs, and labor regulations.
- Additionally, companies may be offered tax holidays, where upon establishing themselves in a zone, they are granted a period of lower taxation.
SEZs in India
- The SEZ policy in India first came into inception on April 1, 2000.
- The prime objective was to enhance foreign investment and provide an internationally competitive and hassle-free environment for exports.
- The idea was to promote exports from the country and realize the need for a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally.
- Subsequently, the SEZ Act 2005, was enacted to provide the umbrella legal framework, covering all important legal and regulatory aspects of SEZ development as well as for units operating in SEZs.
Who can set up SEZs? Can foreign companies set up SEZs?
- Any private/public/joint sector or state government or its agencies can set up an SEZ.
- Yes, a foreign agency can set up SEZs in India.
What is the role of state governments in establishing SEZs?
- A representative of the state government, who is a member of the inter-ministerial committee on private SEZ, is consulted while considering the proposal.
- Before recommending any proposals to the ministry of commerce and industry (department of commerce), the states must satisfy themselves that they are in a position to supply basic inputs like water, electricity, etc.
Are SEZs controlled by the government?
- In all SEZs, the statutory functions are controlled by the government.
- The government also controls the operation and maintenance function in the central government-controlled SEZs. The rest of the operations and maintenance are privatized.
Are SEZs exempt from labor laws?
- Normal labor laws are applicable to SEZs, which are enforced by the respective state governments.
- The state governments have been requested to simplify the procedures/returns and for the introduction of a single-window clearance mechanism by delegating appropriate powers to development commissioners of SEZs.
Who monitors the functioning of the units in SEZ?
- The performance of the SEZ units is monitored by a unit approval committee consisting of a development commissioner, custom, and representative of the state government on an annual basis.
What are the special features for business units that come to the zone?
- Business units that set up establishments in an SEZ would be entitled to a package of incentives and a simplified operating environment.
- Besides, no license is required for imports, including second-hand machinery.
How do SEZs help a country’s economy?
- SEZs play a key role in the rapid economic development of a country.
- In the early 1990s, it helped China and there were hopes that the establishment in India of similar export-processing zones could offer similar benefits – provided, however, that the zones offered attractive enough concessions.
- Traditionally the biggest deterrents to foreign investment in India have been high tariffs and taxes, red-tapism, and strict labor laws.
- To date, these restrictions have ensured that India has been unable to compete with China’s massively successful light-industrial export machine.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-DevINE
Mains level: Infra push for NE region
Union Budget 2022-23 provided for a new scheme, Prime Minister’s Development Initiative for North East (PM-DevINE) will be implemented through the North-Eastern Council.
PM-DevINE
- It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the northeast.
- This will enable livelihood activities for youth and women, filling the gaps in various sectors.
- While the Central Ministries may also pose their candidate projects, priority will be given to those posed by the States.
Some of the projects to be implemented are:
- Dedicated Services for the Management of Paediatric and Adult Haemotolymphoid Cancers in North East India, Guwahati
- Construction of Aizawl bypass on western side, gap funding for passenger ropeway system for Pelling to Sanga-Choeling in West Sikkim
- Gap funding for eco-friendly Ropeway (Cable Car) from Dhapper to Bhaleydhunga in South Sikkim
- Pilot project for the construction of Bamboo Link Road at different locations in various districts in Mizoram
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bomb Cyclone, Bombogenesis
Mains level: Not Much
Major cities such as New York and Boston in US are witnessing a “Bomb Cyclone” characterized by the explosive power of rapid drops in atmospheric pressure.
What is Bomb Cyclone?
- A bomb cyclone is a large, intense mid-latitude storm that has low pressure at its center, weather fronts and an array of associated weather, from blizzards to severe thunderstorms to heavy precipitation.
- It becomes a bomb when its central pressure decreases very quickly—by at least 24 millibars in 24 hours.
- When a cyclone “bombs,” or undergoes bombogenesis, this tells us that it has access to the optimal ingredients for strengthening, such as high amounts of heat, moisture and rising air.
Why is it called a bomb?
- Most cyclones don’t intensify rapidly in this way.
- Bomb cyclones put forecasters on high alert, because they can produce significant harmful impacts.
Its etymology
- The word “bombogenesis” is a combination of cyclogenesis, which describes the formation of a cyclone or storm, and bomb, which is, well, pretty self-explanatory.
- This can happen when a cold air mass collides with a warm air mass, such as air over warm ocean waters.
- The formation of this rapidly strengthening weather system is a process called bombogenesis, which creates what is known as a bomb cyclone.
How does it occur?
- Over the warmer ocean, heat and moisture are abundant.
- But as cool continental air moves overhead and creates a large difference in temperature, the lower atmosphere becomes unstable and buoyant.
- Air rises, cools and condenses, forming clouds and precipitation.
Where does it occur the most?
- The US coast is one of the regions where bombogenesis is most common.
- That’s because storms in the mid-latitudes – a temperate zone north of the tropics that includes the entire continental US – draw their energy from large temperature contrasts.
- Along the US East Coast during winter, there’s a naturally potent thermal contrast between the cool land and the warm Gulf Stream current.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAA
Mains level: Paper 2- Pendency of important cases
Context
Unless the Court strives in every possible way to assure that the Constitution, the law, applies fairly to all citizens, the Court cannot be said to have fulfilled its custodial responsibility.
Landmark judgments
- In the last few years, the Indian Supreme Court has delivered some judgments of far-reaching consequence.
- It declared the right to privacy a fundamental right; decriminalized consensual sexual conduct between adults of the same sex; recognized transgender persons as the third gender; and outlawed triple talaq.
- These decisions shore up the belief in republican values like liberty and equality reified in our Constitution.
Important cases pending in the Supreme Court
- Constitutionality of CAA: Many petitions were filed before the Supreme Court challenging the constitutionality of the Citizenship (Amendment) Act, 2019, that provides non-Muslim communities from Bangladesh, Pakistan, and Afghanistan a fast-track route to Indian citizenship.
- More than two years later, the matter continues to languish in the apex court.
- Dilution of Article 370: Innumerable petitions have been filed challenging the Presidential Order of August 5, 2019, that effectually diluted Article 370 of the Constitution.
- To date, the court has done precious little to decide this vexed question of law.
- Constitutionality of 103rd amendment: Petitions challenging the constitutionality of the Constitution(One Hundred and Third Amendment)Act,2019 that provides reservations in public educational institutions and government jobs for economically weaker sections are also languishing in the Supreme Court.
- Challenges to the electoral bond scheme: The Supreme Court has failed to accord proper hearing in the last four years to the constitutional challenge to the electoral bonds scheme.
Conclusion
Unless the Court strives in every possible way to assure that the Constitution, the law, applies fairly to all citizens, the Court cannot be said to have fulfilled its custodial responsibility”.
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