Citizenship and Related Issues

Explained: Doctrine of ‘Presumption of Constitutionality’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Doctrine of ‘Presumption of Constitutionality’

Mains level: Read the attached story

Recently the Supreme Court declined urgent hearing on a plea seeking to declare the CAA as constitutional and said that there was already a “presumption of constitutionality” to a law passed by Parliament.  CJI has said that the court’s role was to examine the validity, and not declare a law constitutional.

Doctrine of Presumption of Constitutionality

  • The term ‘presumption of constitutionality’ is a legal principle that is used by courts during statutory interpretation — the process by which courts interpret and apply a law passed by the legislature, such as Parliament.
  • In the 1992 Supreme Court case ‘ML Kamra v New India Assurance’, Justice K Ramaswamy said: “The court ought not to interpret the statutory provisions, unless compelled by their language, in such a manner as would involve its unconstitutionality.
  • The legislature of the rule making authority is presumed to enact a law which does not contravene or violate the constitutional provisions.
  • Therefore, there is a presumption in favour of constitutionality of a legislation or statutory rule unless ex facie it violates the fundamental rights guaranteed under Part III of the Constitution.
  • If the provisions of a law or the rule is construed in such a way as would make it consistent with the Constitution and another interpretation would render the provision or the rule unconstitutional, the Court would lean in favour of the former construction. ” (“ex facie” meaning ‘on the face’)

When does this apply?

  • It is a cardinal principle of construction that the Statute and the Rule or the Regulation must be held to be constitutionally valid unless and until it is established they violate any specific provision of the Constitution.
  • Further it is the duty of the Court to harmoniously construe different provisions of any Act or Rule or Regulation, if possible, and to sustain the same rather than striking down the provisions out right.
  • The presumption is not absolute, however, and does not stand when there is a gross violation of the Constitution.

Limitations to the doctrine

  • A three-judge Bench in ‘NDMC v State of Punjab’ (1996) spoke of the limitations to the doctrine.
  • The Bench observed that the Doctrine is not one of infinite application; it has recognised limitations.
  • The Court has consistently followed a policy of not putting an unnatural and forced meaning on the words that have been used by the legislature in the search for an interpretation which would save the statutory provisions.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Explained: The fundamentals of the Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Fundamentals as mentioned in the newscard

Mains level: Fundamentals of Indian Economy

PM Modi highlighted the strong absorbent capacity of the Indian economy while referring to certain fundamentals. He emphasized the strength of these basic fundamentals in absorbing the shocks of ongoing economic slowdown.

What are the ‘fundamentals of an economy’?

  • The PM has reiterated a phrase of reassurance — underscoring the strong fundamentals of the Indian economy — that has been often used by policymakers in the past when the economy is seen to be faltering.
  • When one talks about the fundamentals of an economy, one wants to look at economy-wide variables such as the overall GDP growth, the overall unemployment rate, the level of fiscal deficit, the valuation of a country’s currency against the US dollar, the savings and investment rates in an economy, the rate of inflation, the current account balance, the trade balance etc.
  • There is intuitive wisdom in looking at these “fundamentals” of an economy when it goes through a tough phase.
  • Such an analysis, when done honestly, can give a sense of how deep the strain in an economy run.
  • It can answer the question whether the current crisis just an exaggerated response to a sectoral problem or is there something more “fundamentally” wrong with the economy that needs urgent attention and “structural” reform.
  • To be sure about the broader health of the economy, one looks at the broader variables. That way, one reduces the chances of getting the diagnosis wrong.

Their relevance

  • The first advance estimates of national income for the current financial year, released earlier in the week, found that nominal GDP was expected to grow at just 7.5% in 2019-20.
  • This is the lowest since 1978. Real GDP is calculated after deducting the rate of inflation from the nominal GDP growth rate.
  • So, if for argument sake, the inflation for this financial year is 4%, then the real GDP growth would be just 3.5%.
  • Just for perspective, the Union Budget presented in July 2019 expected a real GDP growth of 8% to 8.5% and a nominal GDP growth of 12% to 12.5%, with a 4% inflation level.

So, what is the current state of the fundamentals?

The data on most variables that one may call as fundamentals of the Indian economy are struggling.

  • Growth rate — both nominal and real — has decelerated sharply; now trending at multi-decade lows. Gross Value Added, which maps economic growth by looking at the incomes-generated is even lower; and its weakness in across most of the sectors that traditionally generated high levels of employment.
  • Inflation is up but the consolation is that the spike is largely due to transient factors.
  • However, a US-Iran type of conflagration could result is a sharp hike in oil prices and, as such, domestic inflation may rise in the medium term.
  • Unemployment is also at the highest in several decades.According to some calculations, between 2012 and 2018, India witnessed a decline in the absolute number of employed people — the first instance in India’s history.
  • Fiscal deficit, which is proxy for the health of government finances, is on paper within reasonable bounds but over the years, the credibility of this number has come into question. Many, including the CAG, has opined that the actual fiscal deficit is much higher than what is officially accepted.
  • Bucking the trend, the current account deficit, is in a much better state but trade weakness continues as do the weakness of the rupee against the dollar; although on the rupee-dollar issue, a case can be made that the rupee is still overvalued and thus hurting India’s exports.
  • Similarly, while the benchmark stock indices have run up, and grabbed all attention, the broader stock indices like the BSE500 have struggled.

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Goods and Services Tax (GST)

Explained: Voting at the GST Council

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GST Council

Mains level: Functioning of the GST Council

  • Breaking the tradition of consensus-based decisions in its 37 earlier meetings, the GST Council voted for the first time in its 38th meeting held on December 18.

GST Council voting rules

  • As per The Constitution (One Hundred and First Amendment) Act, 2016, in case of a voting, every decision of the GST Council has to be taken by a majority of not less than three-fourths of the weighted votes of the members present.
  • The vote of the central government has a weightage of one-third of the total votes cast, and the votes of all the state governments taken together have a weightage of two-thirds of the total votes cast in that meeting.
  • As of now, out of the total 30 states and UTs (excluding J&K), 20 are ruled by the NDA.
  • This essentially means that a vote in the Council could largely be an academic exercise — unless a number of the BJP’s allies switch sides.

Impacts of imbibing Voting

  • With the precedent of voting now established, consensus at the Council could be challenged again in the future.
  • The rules of voting in the GST Council are such that the odds are stacked in favour of the Centre in the normal course.
  • However, in case of a vote, any disagreements within the ruling coalition at the Centre may bring its support below the three-fourths majority that is needed for the passage of a decision.

Way Forward

  • Differences of opinion are likely to crop up on proposals to raise rates, especially of the lower slabs, in the future — a concern that made most states rule out an immediate rate hike in the last Council meeting, even as they were in agreement over a broader overhaul of the GST structure.
  • So far, even if states voiced their differences over a proposal in the Council, all decisions had been taken by consensus in the meetings of the GST Council.
  • With a departure from the consensus approach having been made, there could be more instances of voting exercises going forward — especially as revenue-raising measures come up in future meetings.

Back2Basics

GST Council

  • The GST Council is a federal body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
  • It is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
  • The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
  • The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

How is the GST Council structured?

  • The Goods and Services Tax (GST) is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.
  • According to the article, GST Council will be a joint forum for the Centre and the States. It consists of the following members:
  1. The Union Finance Minister will be the Chairperson
  2. As a member, the Union Minister of State will be in charge of Revenue of Finance
  3. The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.

Terms of reference

  • Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as, the goods and services will be subject or exempted from the Goods and Services Tax.
  • They lay down GST laws, principles that govern the following:
  1. Place of Supply
  2. Threshold limits
  3. GST rates on goods and services
  4. Special rates for raising additional resources during a natural calamity or disaster
  5. Special GST rates for certain States

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Explained: First Advance Estimates (FAE)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GDP, GNP, GVA etc.

Mains level: First Advance Estimates

The First Advance Estimates (FAE) were recently released by the Ministry of Statistics and Programme Implementation (MoSPI).

The First Advance Estimates and their significance

  • The First Advance Estimates (FAE) extrapolate a variety of data, such as the Index of Industrial Production (IIP), the financial performance of listed companies, first advance estimates of crop production etc., for the first 7 to 8 months to arrive at the annual figure.
  • The significance of the FAE is that this is the final bit of official data before the government presents its next Budget.
  • The sector-wise Estimates are obtained by extrapolation of indicators like-
  1. IIP of first 7 months of the financial year,
  2. financial performance of Listed Companies in the Private Corporate sector available upto quarter ending September, 2019
  3. 1st Advance Estimates of Crop production,
  4. accounts of Central & State Governments, information on indicators like Deposits & Credits, Passenger and Freight earnings of Railways, Passengers and Cargo handled by Civil Aviation, Cargo etc., available for first 8 months of the financial year”.

Estimates for 2018-19

  • It estimated India’s GDP will grow by just 5 per cent in the current financial year (2019-20). Last financial year, 2018-19, the Indian economy grew at 6.8 per cent.
  • The gross value added (GVA), which maps the economic activity from the income side as against the GDP which maps it from the expenditure side, is expected to grow by 4.9 per cent in 2019-20 as against 6.6 per cent in 2018-19.

Drivers of the GDP

There are four main drivers of the GDP:

  • One, the private consumption expenditure – that is the expenditure that you and I make in our personal capacity. This category has grown by just 5.7 per cent in 2019-20 while it grew by 8 per cent last financial year.
  • The second driver is the expenditure made by the Government. This grew by 10.5 per cent, which is higher than the rate of growth (9.2 per cent) in the last financial year.
  • But the most disappointing number is the deceleration in business investments in the economy.
  • This driver, which is the key to sustainable long-term growth, grew by less than 1 per cent; last financial year it grew by 10 per cent.
  • This shows that while the private consumption demand is tepid, businesses have completely turned off the tap on new investments despite the government making a once-in-generation cut in corporate taxes.

Performance in terms of GVA

  • The GVA data provides a detailed picture. Given that the overall GVA has decelerated sharply, almost all sectors have witnessed slower growth in economic activity.
  • Only “Public Administration, Defence and Other Services,“ which essentially measures how the government did, grew by 9.1 per cent.
  • All other sectors saw a GVA growth that was slower than the average growth in the last financial year.
  • The worst performing sectors are ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’ and ‘Construction’, which are expected to see a GVA growth of 2.8 per cent, 1.5 per cent, 2.0 per cent and 3.2 per cent respectively.

Back2Basics

Real vs. Nominal GDP

  • GDP is the total market value of all goods and services produced in the economy during a particular year, inclusive of all taxes and subsidies on products.
  • The market value taken at current prices is the nominal GDP.
  • The value taken at constant prices — that is prices for all products taken at an unchanged base year (2011) — is the real GDP.
  • In simple terms, real GDP is nominal GDP stripped of inflation.
  • Real GDP growth thus measures how much the production of goods and services in the economy has increased in actual physical terms during a year.
  • Nominal GDP growth, on the other hand, is a measure of the increase in incomes resulting from rise in both production and prices.

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Wetland Conservation

India’s policies for ‘Urban Lakes’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Urban lakes in India

Mains level: Wetland conservation in India

Context

  • Historically, cities were built along waterways or lakes.
  • Over time, human settlements near water bodies and lakes have transformed the natural environment into the towns and cities we see today.
  • Urban lakes are an important part of city ecosystems as they play a major role in providing environmental, social and economic services.

Famous Urban Lakes in India

Carambolim (Goa), Chilika (Odisha), Dal (Jammu and Kashmir), Deepor Beel (Assam), Khabartal (Bihar), Kolleru (Andhra Pradesh), Loktak (Manipur), Naini (Uttrakhand), Nalsarovar (Gujarat), and Vembanad (Kerala)

Threats to these Lakes

These lake ecosystems are presently endangered due to anthropogenic disturbances caused by Urbanisation as they have been heavily degraded due to pollution from disposal of untreated local sewage or due to encroachment, resulting in shrunken lakes.

Why conserve them?

  • Lakes in urban areas provide us with prime opportunities for recreation, tourism and domestic purposes.
  • They hold historical and traditional values and at places are a source of water supply for a municipality.
  • Appropriate lake function can ease the impact of floods and droughts by storing large amounts of water and releasing it during shortages.
  • Lakes also help in replenishing groundwater level as they are essential receptors for groundwater recharge, positively influencing water quality of downstream watercourses and preserving the biodiversity and habitat of the surrounding area.
  • Lakes in urban areas are also used as a source of water for industries, irrigation and agriculture.

Defining Urban Lakes

  • There is no specific definition for ‘urban lakes’ in India.
  • According to the National Lake Conservation Plan (NLCP), a water body having a minimum depth of three metres, spread over more than 10 hectares, and having no or very little aquatic vegetation, is considered as a lake.

The definition provided by NLCP is based on broad hydrological and morphometry criteria of a lake:

  • The apparent definition of urban lakes seems to those located entirely within city limits (census town) and directly surrounded by urban developments, with some recreation facilities limited to the shoreline area (parks, playgrounds).

OR

  • The lakes which are predominantly affected by urban human populations and their drainage basin is dominated by urbanisation, rather than geology, soils or agriculture. Such lakes are situated only partially within city limits, or attached but not necessarily surrounded, entirely by city development.

Issues with the definition

  • One of the obstacles for effective protection of these interlinked lakes in cities is the lack of a clear definition of an ‘urban lake’ in the Indian context.
  • The definition provided under the guideline of NLCP acknowledges only broad hydrological criteria to define a water body as a lake.
  • This definition ignores the fact that the water depth and spread keep changing every year, depending on various environmental factors.
  • In fact, there are very few urban lakes that fit into this definition since most of them occupy a small area (<10 ha), are seasonal and shallow.

Various policy measures

Water (Prevention and Control of Pollution) Act in 1974

  • Planning interventions for water bodies started as early as 1927.
  • In the Water (Prevention and Control of Pollution) Act in 1974, directions were given to control the flow of sewage and industrial effluents into water bodies.

Ramsar Convention

  • The need for lake conservation was felt when India became a signatory to the Ramsar Convention on Wetlands, 1982.
  • The Convention called for the conservation and wise use of wetlands (including water bodies).
  • Twenty-six Ramsar sites, covering an area of 689,000 ha, were identified in India.

National Wetland Conservation Programme

  • The Indian government operationalised the Programme in closed collaboration with concerned state governments during 1985-86 under the MoEFCC notification.
  • Recognising the importance of lakes, the Ministry launched NLCP, a centrally sponsored scheme exclusively aimed at restoring the water quality and ecology of lakes in different parts of the country.
  • Under the programme, 115 wetlands were identified, which required urgent conservation and management initiatives.
  • The selection of lakes was on hydrological (Lake size over 10 acres or 3 acres if of religious and cultural importance and lake depth more than three metres), scientific and administrative criteria.
  • The scheme was approved by the Union government during the Ninth Plan (June 2001) as 100 per cent central grant.
  • From 100 per cent central funding, the costs are now shared according to a ratio of 70:30 between the Union and the concerned state government.

Repair, Renovation and Restoration of Waterbodies’ Scheme

  • In continuation with the NLCP, the Centre had launched this Scheme in 2005,
  • The objectives of the scheme were comprehensive improvement and restoration of traditional waterbodies, including increasing tank storage capacity, ground water recharge, etc.

National Plan for Conservation of Aquatic Eco-systems (NPCA)

  • Later, in 2016, the National Lake Conservation Plan was merged with National Wetlands Conservation Programme to form NPCA.
  • The principal objectives of NPCA are holistic conservation and the restoration of lakes and wetlands through an integrated and multidisciplinary approach with a common regulatory framework.
  • All lakes that were a part of NLCP, were brought under this scheme, and are being restored till date.

Why Urban Lakes still needs more attention?

  • Even after 26 years of pollution abatement works, only ten per cent of waste water generated in the country is treated.
  • The rest collects as cess pools or is discharged into the 14 major, 55 minor and several hundred other rivers.
  • It is quite clear that the overall status of quality of water in rivers, lakes and its links to groundwater has not been adequately addressed.
  • Out of the 43 Indian guidelines passed by the central and state government, 41 per cent of those talk about conservation and restoration of waterbodies but only 10 per cent exactly describe the conservative measure.
  • Only 22 per cent of the guidelines are on subjects related to policies to be adopted by state government, urban local bodies etc.
  • This clearly identifies the missing links and marks the future prospects that India should adopt for the preparation of better and sustainable lake management plans.

Need for a comprehensive Lake Management Plan

  • ‘Lake management planning’ is an approach for different stakeholders to come together with a common interest in improving and protecting their lake.
  • Focusing on planning process rather than quick-fix solutions makes lake rejuvenation a manageable process.
  • Moreover, it guides how time and resources are utilised, keeping future sustainability of the lake in account.  It includes:
  1. Encourages partnerships between concerned citizens, special interest groups, government body and water resources management practitioners
  2. Identifies the concerns regarding the catchment/watershed of the lake
  3. Sets realistic goals, objectives, and (short, medium and long-term) actions, and identifies needed funds and personnel.

Conclusion

  • Under the Jal Shakti mission and AMRUT, the revival /rejuvenation of water bodies is in piecemeal approach, with short-term measures like beautification, enhancing recreational activities, addressing immediate solid waste dumping into waterbody etc.
  • Although cities have initiated to work towards water bodies’ rejuvenation, the long-term approach is still missing.

Way Forward

  • Since a lake is a reflection of its catchment area, it is essential to first understand the significant changes or trends concerning the primary land uses within the catchment area / watershed draining into the lake.
  • There is no approach which defines the planning process for preparation of short, medium and long-term action plans for lake rejuvenation, considering its watershed area.
  • It is essential to have a document with clear understanding of the lake’s watershed area, with specific goals, objectives, producing time-bound action plans.
  • Conservation of Lakes and wetlands through an integrated and multidisciplinary approach with a common regulatory framework should be carried out.

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