20th November 2024
Article: 20th November, 2024
Topic: Share of central taxes to states should be hiked to 50%
Relevance: GS Paper: 2 – Governance
Source: Hindustan Times
Context
- M.K. Stalin, the chief minister of Tamil Nadu, advocated raising the states’ portion of the divisible revenue pool to 50% in order to alleviate financial strains and guarantee financial independence.
Highlighted Issues
- The Union government’s increasing levies and cesses are to blame for the present share of 33.16%, which is below the XV Finance Commission’s suggested 41%.
- States’ growing involvement in joint Union-State projects and declining rates of devolution increase the financial load on them.
- Described as punitive for high-performing States, Tamil Nadu’s share of the devolution pool has decreased from 7.93% (IX Finance Commission) to 4.07% (XV Finance Commission).
What is divisible pool of taxes?
- The amount of total tax revenue that is divided between the Union and the states is known as the “divisible pool.”
- The Constitution’s Article 270 lays forth the plan for allocating the Union government’s net tax revenue between the States and the Center.
- Corporation tax, personal income tax, central GST, the center’s portion of the Integrated Goods and Services Tax (IGST), and other taxes are among those that are split between the Union and the states.
- The advice of the Finance Commission (FC), which is established every five years in accordance with Article 280, served as the basis for this division.
- In addition to their tax contribution, states receive grants-in-aid based on the FC’s recommendation.
- However, the Center’s surcharge and cess are not included in the divisible pool.
- Dr. Arvind Panagariya is the chair of the 16th Finance Commission of India, which was established to provide recommendations for the fiscal year 2026–2031.
Mechanism of Allocation
- Vertical Devolution: States should receive 41% of the divisible pool, according to the 15th FC.
- Horizontal Devolution: Determined by factors including tax effort, population (2011 Census), forest cover, income distance, and demographic performance.
Important Concerns
- States’ share of overall tax revenue is limited to 32%, below the suggested 41%, due to cess and surcharge, which make up 23% of the Union’s gross tax receipts but are not included in the divisible pool.
- Revenue Disparity: While less developed states like Uttar Pradesh and Bihar earn more for each rupee paid in central taxes, industrial states receive less than one rupee.
- Southern States’ Decline: Because equity-based factors (income gap, population, and area) are given more weight than efficiency-based criteria, the Southern States’ portion of the divisible pool has been declining over the course of six FCs.
- Variations in Grants-in-Aid: States vary greatly in the grants given for local bodies, sector-specific requirements, and revenue deficits.
Suggested Reforms
- Add Cess and Surcharge: Add a portion of cess and surcharge to the divisible pool and gradually lessen their imposition.
- Boost Productivity Weighting: Give efficiency in horizontal devolution greater weight and include proportional GST contributions as a factor.
- Boost State Involvement: Create a structured system for State participation in the Finance Commission, akin to the GST Council.
Conclusion and Way Forward
- The undeveloped states require assistance, and giving them too much money at the expense of the developed states could hinder the advancement of the country as a whole.
- Reforms in revenue sharing are necessary to strike a balance between equality and federalism, guaranteeing that States maintain their financial independence while contributing to and benefiting from national growth.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. Consider the following statements regarding Finance Commission
1. The president appoints the chairman and the other four members of the Finance Commission.
2. Reappointment is possible for them.
Which of the above statements are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ans: c
Explanation
The president appoints the chairman and the other four members of the Finance Commission.
They serve for however long the president specifies in his order. They are qualified to be reappointed.
The Constitution gives the Parliament the power to decide how the commission’s members should be chosen and what their qualifications should be.
As a result, the Parliament has established the requirements for the commission’s chairman and members.
Mains Model Questions
Q. How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss. (UPSC PYQ 2018)
| Introduction: Article 280 of the Indian Constitution established the Finance Commission of India, a constitutional authority tasked with suggesting how to divide financial resources between the Union and State governments. The Commission promotes balanced economic development throughout the nation by guaranteeing fiscal federalism and equitable resource distribution. Body: The Finance Commission’s Constitution: Composition: The President of India appoints the chairperson and four additional members to the Finance Commission.Qualifications: The Commission’s members are chosen for their proficiency in administration, finance, and public affairs, guaranteeing that they possess the skills and background needed to handle financial issues.Tenure: The President appoints the Finance Commission every five years or sooner if he sees fit. Usually, the Commission’s recommendations are valid for five years. The freshly established Finance Commission’s Terms of Reference: In November 2017, the 15th Finance Commission was established, with N. K. Singh serving as its chair. Among its terms of reference are: Vertical devolution: Endorsing the division of tax revenue between the federal government and state governments in accordance with the values of efficiency, equity, and openness. Determining the standards for distributing resources across the States while taking into account variables like population, income, area, forest cover, and fiscal capability is known as horizontal devolution. Grants-in-Aid: recommending guidelines for allocating grants-in-aid to states, alleviating revenue shortfalls, and satisfying local government needs.Fiscal consolidation: Making recommendations for federal and state fiscal consolidation policies that support long-term macroeconomic stability and fiscal restraint. Incentives based on performance: suggesting performance-based rewards for states that show advancements in fields including sustainable development, education, health, and ease of doing business. Disaster management: Evaluating how the goods and services tax (GST) has affected the Union’s and the States’ financial standing and suggesting disaster management strategies, especially in view of the rising number of natural disasters. Conclusion: The Commission encourages collaboration between the several tiers of government and balanced economic development by attending to the financial demands of the Union and State governments. The newly established Finance Commission’s mandate reflects the changing financial environment and current issues, emphasizing the need for fiscal discipline, performance-based incentives, and effective disaster management. |
Article: 20th November, 2024
Topic: Role of CAG and Audit Diwas
Relevance: GS Paper: 2 – Governance
Source: PIB
Context
- The Speaker of the Lok Sabha stated on Audit Diwas (November 16) that the Comptroller & Auditor General (CAG) has been instrumental in promoting accountability, openness, and sound governance throughout the nation.
About the Comptroller and Auditor General (CAG)
- It is a constitutional body tasked with auditing the federal and state governments’ financial statements.
- The President of India appoints the Comptroller and Auditor General of India (CAG) through a warrant signed by him.
- The Comptroller and Auditor General of India (CAG) takes an oath or affirmation before the President of India before assuming office.
- The CAG is in office for six years or until they turn sixty-five, whichever comes first.
- The President of India can dismiss the CAG for the same reasons and in the same way as a Supreme Court judge.
The Constitution’s mandate
- Article 148: Creates the CAG position, which is filled by the President and serves for six years or until the age of sixty-five. Removal ensures independence by adhering to the procedure for Supreme Court judges.
- Article 149: Specifies the responsibilities and authority of the CAG to examine the financial statements of public corporations, states, and unions as decided by Parliament.
- Article 150: Requires that Union and State accounts be kept in a format that the President specifies based on the CAG’s recommendation.
- Article 151: Demands that the President or Governor deliver the CAG’s audit reports to Parliament or State Legislatures.
Tasks and Accountabilities:
- Government Accounts Audit: The CAG examines the financial records of public sector organizations as well as the federal and state governments.
– Financial, compliance, and performance audits are all included. - Reporting to the Legislature: The President or the Governor receives audit reports from the CAG and presents them to the State Legislature or Parliament.
- Advisory Role: The CAG assists in the creation of policies aimed at enhancing financial management and accountability as well as providing financial advice to the government.
CAG: Fixing Accountability and Ensuring Transparency
- Public Project Irregularities: The CAG’s reports have exposed significant cost increases and financial mismanagement in significant infrastructure projects.
– The Dwarka Expressway, for example, saw its construction costs soar from ₹18 crore per kilometre to ₹250 crore per km. - Money Misallocation: The CAG has called attention to the money being diverted from welfare programs.
– In one case, money intended for the National Social Assistance Programme (NSAP) was diverted to support other government initiatives, which had an effect on the intended recipients. Calls for more stringent adherence to budget allocation standards have resulted from it. - Unusualities in the Healthcare System: According to the Ayushman Bharat—Pradhan Mantri Jan Arogya Yojana (PMJAY) audit, ₹6.97 crore was paid out to treat patients who were listed as deceased.
– These disparities highlight the necessity of strong oversight procedures in order to stop financial wrongdoing.
Principal Issues
- Growing Intricacy of Audits: The CAG’s audits must change to account for new, harder-to-detect types of corruption and maladministration as public administration and financial management grow more intricate.
- Technological Developments: Using cutting-edge technology like data analytics and artificial intelligence can improve audit procedures, but there are drawbacks as well.
- Preserving Independence: The CAG’s capacity to promote accountability is largely dependent on its independence.
- Capacity Building: Another major difficulty for the CAG is increasing and sustaining the workforce’s capacity.
- Public Perception and Trust: The efficacy of the CAG depends on preserving public confidence in its conclusions. Any impression of inefficiency or prejudice has the potential to undermine trust in the organization.
Way Forward: Fortifying the CAG
- Adoption of Emerging technology: To improve its audit procedures and guarantee more openness, the CAG has aggressively embraced emerging technology, such as artificial intelligence.
- International Cooperation: By winning re-election as the external auditor for a number of international organizations, like the World Health Organization and the International Labour Organization, the CAG has increased its visibility throughout the world.
- These positions demonstrate the CAG’s dedication to maintaining the highest standards of honesty and professionalism in auditing procedures.
- To work together on public sector audits, the CAG has inked a number of Memorandums of Understanding (MoUs) with other nations. Recent deals with Saudi Arabia, Kenya, and the Seychelles are among them.
- Institutional backing: In order for the CAG to successfully carry out its constitutionally mandated job, there have been calls for it to get sufficient institutional backing.
- Ensuring the CAG’s independence and giving it the authority to carry out thorough audits free from excessive intervention are key components of strengthening the agency.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. Consider the following statements regarding Comptroller and Auditor General (CAG)
1. The President of India appoints the CAG.
2. The CAG of India’s main duty is to oversee the country’s budget.
3. The Cabinet is the CAG’s ultimate boss.
Which of the above statements are correct?
- 1 only
- 2 only
- 1 and 2
- 1, 2, 3
Ans: a
Explanation
The CAG is appointed by the President of India for a period of six years or until the age of sixty-five, whichever comes first, in accordance with Article 148 of the Indian Constitution.
Auditing the financial statements of the Union and State governments, government-owned businesses, and other organizations that get funding from the government is the CAG’s main duty. Ensuring that public money are spent effectively and for the intended purposes is the CAG’s duty. The Parliament is the body to which the CAG of India reports.
Mains Model Questions
Q. The Comptroller and Auditor General of India is “probably the most important officer in the Constitution of India,” according to Dr. B.R. Ambedkar’s well-known statement. Do you agree?
| Introduction: Article 148 of the Indian Constitution establishes the Comptroller and Auditor General of India as an autonomous office. It is an essential constitutional body in charge of monitoring the Indian government’s accountability and financial soundness. The principal architect of the Indian Constitution, Dr. B.R. Ambedkar, highlighted the crucial role of the CAG by saying that it is perhaps the most significant officer under the Indian Constitution. Body: CAG as Possibly the Most Significant Office under the Indian Constitution: Guardian of the Public Purse: The CAG ensures that public money is used effectively, efficiently, and for the intended purposes by auditing the accounts of the Union government, state governments, union territories with legislative assemblies, and public sector undertakings.Independence and Impartiality: The CAG can function independently of the executive and other departments of government because it is appointed by the President of India and can only be removed following a procedure like to that of a Supreme Court judge. Head of Indian Audit and Accounts Department: The CAG is in charge of the Indian Audit and Accounts Department, which is essential to maintaining financial accountability and encouraging openness at all governmental levels.Certification of Net Proceeds: In accordance with Article 279, the CAG determines and certifies the net proceeds of any tax or duty. In this instance, his certificate is definitive. Conclusion: As a result, Dr. B.R. Ambedkar’s assertion that the CAG is crucial to the Indian Constitution is accurate. Encouraging confidence in the government’s financial management system and preserving the integrity of public finances depend on upholding the CAG’s independence, power, and position. |
Article: 20th November, 2024
Topic: One Day One Genome Initiative
Relevance: GS Paper: 3 – Science & Technology
Source: PIB
Context
- The “One Day One Genome” campaign was launched by the Department of Biotechnology (DBT) and the Biotechnology Research and Innovation Council (BRIC).
About
- The project intends to make the completely annotated genomes of rare bacterial species that are found in India publicly available.
- Information about the scientific and industrial uses of bacteria will be provided through infographics, genome assembly details, and comprehensive graphical summaries.
Microorganisms’ Function in Ecosystems
- Impact on the Environment: It contributes to soil formation, biogeochemical cycles, and pollutant degradation.
– It helps maintain planetary homeostasis and produce methane. - Agriculture: It helps with pest management, nutrient cycling, and nitrogen fixation.
- Human Health: The body’s symbiotic microbes outnumber human cells and protect against infections.
– They also help with immunity, mental health, and digestion.
Genome Sequencing
- It is the process of figuring out the entire genome’s DNA sequence, including all of the genes and non-coding areas.
- It entails determining the precise arrangement of the four nucleotide bases that comprise DNA: adenine, cytosine, guanine, and thymine.
The Importance of Sequencing the Genome
- Scientific Progress: Makes it possible to identify beneficial microbial characteristics for long-term improvements.
- Public Awareness: Promotes a deeper comprehension of the diversity of microbes and their uses.
- Industrial Potential: Aids in the study of bioactive compounds, illness prevention, and enzyme creation.
Way Ahead
- By furthering microbial research in India, the One Day One Genome project will open the door for biotechnology and sustainable development discoveries.
- The project supports international initiatives to use biodiversity for societal benefit by revealing the hidden potential of microorganisms.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. With reference to agriculture in India, how can the technique of ‘genome sequencing’, often seen in the news, be used in the immediate future? (UPSC PYQ 2017)
1. Genome sequencing can be used to identify genetic markers for disease resistance and drought tolerance in various crop plants.
2. This technique helps in reducing the time required to develop new varieties of crop plants.
3. It can be used to decipher the host-pathogen relationships in crops.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: d
Explanation
Finding the arrangement of DNA nucleotides, or bases, in a genome—the arrangement of As, Cs, Gs, and Ts that make up an organism’s DNA—is known as genome sequencing.
The human genome contains more than 3 billion of these genetic letters.
Crop plants’ genetic markers for drought and disease resistance can be found by genome sequencing.
One method that will help with genetic engineering and shorten the time needed to create new crop plant kinds is genome sequencing.
It is useful for figuring out the host-pathogen dynamics in crops.
Mains Model Questions
Q. What is Genome sequencing? Discuss about the importance of genome sequencing in relation to the coronavirus outbreak.
| Introduction: The process of figuring out an organism’s genome’s whole DNA sequence is called genome sequencing. Humankind could gain from advances in human genome sequencing, particularly in the areas of healthcare and illness prevention. Body: The importance of sequencing a genome Epidemic origin: Researchers can better grasp the structure of DNA or RNA by using genome sequencing. We can learn more about the origins and modes of transmission of specific viruses, such SARS-CoV-2, by sequencing their genomes. Stop the spread: Sequencing helps determine whether the strain is changing. Understanding genetic changes can aid in stopping their spread. For example, scientists already know how many mutations occur on average in a month in the case of COVID-19, how long it takes for it to incubate, and how long it takes for instances to occur in a chain transmission. Healthcare: The diversity of the nation’s population is reflected in the genome-sample collection participants. It will be beneficial in the following ways: The first clear application would be in personalized medicine, which predicts illnesses and adjusts therapy based on a patient’s genetic makeup. Numerous genes, which vary from one group to another, interact with the environment to cause a number of diseases. Establishing a connection between diseases and each person’s distinct genetic composition requires the sequencing of the human genome. For example, heart attacks are typically the result of cardiovascular disease in South Asians. It is thought that public health interventions can be more precisely targeted if these propensities can be linked to differences among genomes. Improved comprehension of illnesses like cancer: Although genes may make some people insensitive to specific medications, genome sequencing has demonstrated that cancer can also be viewed from a genetic perspective rather than as an organ disease. Drug efficacy: Information about the effectiveness of drugs or the negative effects of drug use can be gained by genome sequencing, which is another benefit. Western-developed medications that are marketed in India are expensive and might not work on Indian genes. For the development of next-generation medicine, mapping India’s genomic landscape is essential. The way ahead: Training: More labs should be enlisted for sequencing, and more doctors should be trained to evaluate gene data. For quicker analysis, more doctors must be trained to research medical genetics. Data security: Because genetic data is sensitive, every attempt should be made to reduce the possibility of data breaches and to preserve public confidence in organizations that collect, store, and use this type of data. The use of blockchain technology to secure genetic data is a workable and viable way to create such a trustworthy and secure database. Cooperation: A coordinated and cooperative effort is required to strike a balance between the privacy of individuals and the sharing of genomic data. A framework that is sufficiently transparent to outline the objective of the gathered genetic data and the duration for which it will be stored in the database. Conclusion: Given the advantages of genome sequencing, it will aid in the treatment of previously incurable diseases and improve our understanding of the human body and its functions. Even though there are certain problems and difficulties, they can be managed and fixed. |
Article: 20th November, 2024
Topic: High-performance buildings
Relevance: GS Paper: 3 – Sustainable development
Source: The Hindu
Context
- At the vanguard of environmentally friendly building practices are high-performance buildings, or HPBs.
About
- Over the course of their lives, buildings worldwide consume around 40% of all energy, mostly for operational purposes.
- In India, buildings are responsible for almost 30% of the country’s energy consumption and 20% of its carbon emissions, according to the Bureau of Energy Efficiency.
- Roughly 28% of energy-related carbon emissions are caused by this substantial energy consumption.
What are High Performance Buildings?
- These structures are designed to meet strict requirements in a number of areas, including resource efficiency, air quality, water conservation, and energy use, while also taking long-term operational and financial sustainability into account.
- Energy Efficiency: Compared to traditional buildings, HPBs are made to use a lot less energy.
- Sustainability: They reduce their influence on the environment, deploy water-saving technologies, and integrate sustainable materials.
- Adaptability and Resilience: HPBs are made to be resilient to climate challenges and flexible in response to shifting environmental conditions.
Need
- Improving the energy and carbon efficiency of buildings is essential since they contribute significantly to global emissions, particularly in rapidly expanding cities.
- Inaction might lead to unmet climate targets, increased reliance on fossil fuels, and increased energy use.
- This issue is growing even more pressing since 600 million people are predicted to live in cities in India by 2030.
Importance
- Savings on costs: lower operating expenses as a result of less maintenance and use of water and energy.
- The Solution of Urbanization: In order to help India transition to a low-carbon, sustainable economy, HPBs provide proactive solutions for the country’s fast urbanization.
- Better Health and Productivity: People who live in HPBs usually have more comfortable and high-quality indoor air, which boosts productivity and reduces health problems.
- Environmental Impact: By using less resources, cutting down on waste production, and lowering carbon emissions, HPBs help create a more sustainable environment.
- Enhanced Market Value: Because of their positive effects on the environment and human health, these buildings are frequently more desirable to renters, have better resale values, and are more aesthetically pleasing.
Difficulties
- High Cost: Because innovative materials, energy-efficient systems, and sustainable design elements are more expensive, high-performance buildings frequently demand a larger initial investment.
- Complexity of System Integration: It might be difficult to design and integrate different high-performance systems.
- Specialist Maintenance: Because of the complexity of sophisticated systems, HPBs frequently need specialist maintenance and operating procedures.
- Barriers imposed by regulations and codes may cause unexpected issues during construction or delay the implementation of high-performance building practices.
- Lack of Awareness: It might be difficult to successfully execute continuous education and engagement to ensure that occupants comprehend and accept sustainable building characteristics.
Conclusion
- The need for new construction rises with the size of cities, and if nothing is done, the sector’s carbon footprint will sharply expand.
- Therefore, using low-carbon and energy-efficient building techniques is essential to achieving climate goals and fostering sustainable urban growth.
- An essential component of attaining and maintaining sustainable living is HPBs, which are designed to use less energy, preserve resources, and resist erratic weather conditions.
Also Read Topics & Concepts:
Prelims Practice Questions
Q. Consider the following statements regarding High Performance Buildings (HPB)
1. HPBs are structures created to enhance occupant well-being while lowering energy consumption, greenhouse gas emissions, and operating expenses.
2. By using climate-adaptive designs, these buildings reduce their energy and water usage, which helps with both climate adaptation and mitigation.
Which of the above statements are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ans: c
Explanation
HPBs are structures created to enhance occupant well-being while lowering energy consumption, greenhouse gas emissions, and operating expenses.
By using climate-adaptive designs, these buildings reduce their energy and water usage, which helps with both climate adaptation and mitigation.
Given that 39% of worldwide energy-related CO2 emissions come from the construction sector, HPBs address both urban and climatic issues.
Mains Model Questions
Q. “Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. (UPSC PYQ 2021)
| Introduction: The nation’s basic infrastructure facilities serve as the cornerstone for development. The economy functions at unsatisfactory levels and stays far from its potential and frontier growth trajectory when there is insufficient infrastructure. Body: Infrastructure spending is necessary for faster and more equitable economic growth. Employment Creation: The labor-intensive nature of infrastructure development, such as building roads, buildings, railroads, etc., increases employment opportunities in both the formal and informal sectors, hence boosting domestic demand.Multiplier effect: Because capital expenditures have a multiplier of 2.45, they would stimulate supply and demand, accelerating economic growth and creating additional job possibilities.The National Infrastructure Pipeline (NIP) for FY 2019–25 seeks to enhance citizens’ quality of life by delivering top-notch infrastructure.Increased connectedness: Investments in infrastructure result in increased connectivity both within and between regions, which raises interdependence and economic integration. Increased trade and commerce may result from this, which could spur economic expansion. Logistic Cost: Developing top-notch ports, inland waterways, railroads, and highways will reduce logistical costs, boost exports, and increase competitiveness. Farmer’s Income: By concentrating on expanding irrigation infrastructure as well as storage, processing, and marketing infrastructure, infrastructure investments would be crucial to guaranteeing a doubling of farmers’ income.Inclusive growth: By giving underprivileged or underserved communities access to healthcare, education, and other social services, infrastructure investment can also help promote more inclusive growth.Productivity gains: Because infrastructure investments facilitate the seamless movement of products and services, lower transaction costs, and improve the effectiveness of manufacturing processes, they also result in higher productivity. Conclusion: India’s capacity to directly and indirectly achieve several SDGs is largely dependent on its infrastructure. Therefore, in order to establish a solid basis for a really Aatmanirbhar Bharat, a number of projects, including NIP, Gati Shakti, NMP, NaBFID, etc., must be executed effectively in the future. |
