11-June-2024-Daily-Current-Affairs

SPECIAL CATEGORY STATUS FOR ANDHRA 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

The demand for Special Category Status (SCS) for Andhra Pradesh has resurfaced in the political landscape following the 2024 Lok Sabha elections. This issue, rooted in the state’s bifurcation in 2014, involves complex financial and political dimensions. 

Background of SCS Demand 

• Andhra Pradesh was bifurcated in 2014, creating Telangana. 
• The then Prime Minister Manmohan Singh promised SCS for five years in the Rajya Sabha. 
• This promise was supported by BJP leader M. Venkaiah Naidu. 

Policy Shifts: 

• The Narendra Modi-led NDA government sidelined the SCS issue. 
• Andhra Pradesh was deemed unqualified for SCS based on norms and the dissolution of the Planning Commission in 2014. 
• The 14th Finance Commission equated SCS with general category status. 

Qualifications for SCS 

• Majority tribal population. 
• Low population density. 
• Hilly terrain and proximity to international borders. 
• Socio-economic and industrial backwardness. 
• Inadequate state finances. 

Current SCS States: 

• Includes Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, among others. 

• Special Package vs. Special Category Status 

Special Package (SP): 

• Agreed by Andhra’s CM Chandrababu Naidu in 2014, included funding for Polavaram project, tax concessions, and special assistance. 
• Criticized by opposition parties as inadequate. 

Political Dynamics: 

• Naidu’s acceptance of SP was seen as a betrayal. 
• In 2018, he left the NDA alliance and moved a no-confidence motion. 
• Current Scenario and Political Context 

Financial Challenges: 

• Andhra Pradesh faces a significant revenue deficit and increasing debt. 
• Development projects, including the new capital Amaravati, require funding. 

Political Leverage: 

• With TDP part of the NDA again and the alliance lacking a clear majority, Andhra Pradesh aims to leverage this situation to secure SCS. 

Key Committees and Commissions 

Fifth Finance Commission (1969) 

• Role: Introduced the concept of Special Category Status. 
• Criteria: Focused on states with socio-economic disadvantages, hilly terrain, low population density, and strategic international borders. 

Fourteenth Finance Commission (2013-2014) 

Recommendations: 

• Suggested doing away with the SCS for new states. 

• Proposed increased tax devolution to states from 32% to 42%. 
• Introduced revenue deficit grants to help states facing fiscal challenges. 

Impact on Andhra Pradesh: 

• The commission’s recommendations led to the denial of SCS for Andhra Pradesh post-bifurcation. 

NITI Aayog 

• Formation: Replaced the Planning Commission in 2015. 
• Role: Acts as a policy think-tank and advisor to the government on strategic and long-term policies, including those impacting states seeking SCS. 
• Position on SCS: Has been involved in discussions and evaluations of state demands, including Andhra Pradesh’s case. 

Andhra Pradesh Bifurcation and Financial Aid 

• Act: Andhra Pradesh Reorganisation Act, 2014. 
• Promises: Included various financial aids and special packages instead of SCS. 
• Chief Minister Chandrababu Naidu: Initially accepted a special package which included funding for Polavaram project, tax concessions, and special assistance, later seen as inadequate by opposition parties. 

15th Finance Commission 

• Chairman: N.K. Singh 
• Observation: Stated that the 14th Finance Commission did not rule out SCS, leaving the decision to the Union Government. 

Multiple Choice Question: 

1. Consider the following statements regarding the Finance Commission of India:

1. The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. 

1. The Finance Commission’s recommendations are binding on the government. 

1. The Fourteenth Finance Commission recommended an increase in the share of states in the net proceeds of the Union tax revenues from 32% to 42%. 

Which of the statements given above is/are correct? 

1. 1 and 2 only 

1. 2 and 3 only 

1. 1 and 3 only 

1. 1, 2, and 3 

ANSWER – C 

EXPLANATION 

The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. 

The Finance Commission’s recommendations are not binding on the government; they are advisory in nature. 

The Fourteenth Finance Commission recommended increasing the share of states in the net proceeds of Union tax revenues from 32% to 42%. 

WHAT ARE THE POWERS OF THE SPEAKER, WHY IS THE POST CRUCIAL FOR BJP, ITS ALLIES 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

As the 18th Lok Sabha convenes, the post of Speaker is in focus, with key allies of the BJP in the NDA, TDP, and JD(U), vying for the position. The Speaker, elected by a simple majority, plays a pivotal role in parliamentary democracy, influencing the legislative process and maintaining order in the House. 

Constitutional Mandate 

• Article 93: Provides for the election of Speaker and Deputy Speaker. 
• Term: Ends with House dissolution, resignation, or removal. 
• Removal: Requires a 14-day notice for a no-confidence motion under Article 94. 

Presiding and Maintaining Order: 

• Chair Sessions: The Speaker presides over all Lok Sabha sessions, ensuring orderly debates and discussions. 
• Enforce Rules & Maintain Decorum: They uphold the rules of procedure and conduct, maintaining decorum and punishing unruly behavior. 

• Adjourn House: The Speaker can adjourn proceedings or suspend meetings if a quorum (minimum attendance) isn’t met. 

Regulation and Interpretation: 

• Final Interpreter: The Speaker has the final say on interpreting the Constitution, parliamentary rules, and precedents within the House. 
• Decide Agenda: They control the agenda, deciding which matters are discussed in each session. 
• Casting Vote: In case of a tie in voting, the Speaker holds the deciding vote. 

Financial Matters: 

• Money Bill Certification: The Speaker certifies a bill as a “money bill,” a special category with faster passage procedures. Their decision on this is final. 

Other Important Powers: 

• Disqualification: The Speaker decides on the disqualification of a member based on defection (switching parties). 
• Joint Sitting: They preside over joint sittings of both houses (Lok Sabha & Rajya Sabha) when required. 
• Recognition: The Speaker plays a role in recognizing the Leader of the Opposition in the Lok Sabha. 
• Secret Sitting: They can permit a secret session of the House at the government’s request. 

Questions and Records: 

• Decides admissibility of questions. 
• Controls publication of proceedings and can expunge unparliamentary remarks. 

Voting: 

• Can use voice vote or division as per the Rules of Procedure. 
• Has a casting vote in case of a tie, usually in favor of the government. 
• No-Confidence Motion 
• Role: Critical in maintaining government accountability. 

• Example: Speaker Sumitra Mahajan’s handling of no-confidence motions in 2018. 

Conclusion 

The Speaker’s role is crucial for the functioning of the Lok Sabha, affecting both the ruling party and the opposition. The position’s impartiality and authority in conducting the House, deciding on questions, handling no-confidence motions, and disqualifying members under the anti-defection law underscore its significance in India’s parliamentary democracy. 

Multiple Choice Question: 

Consider the following statements about the Speaker of the Lok Sabha: 

1. The Speaker can be removed from office through a simple majority vote in the Lok Sabha. 

1. The Speaker has the power to appoint and dismiss ministers. 

1. The Speaker can vote in the Lok Sabha proceedings like any other member. 

Which of the statements given above is/are correct? 

1. 1 only 

1. 2 only 

1. 3 only 

1. None of the above 

ANSWER – D 

EXPLANATION 

The Speaker can be removed through a resolution passed by a majority of the members present and voting in the Lok Sabha. 

The Speaker does not have any role in appointing or dismissing ministers. This is the prerogative of the Prime Minister. 

While the Speaker presides over the House, they can only vote in case of a tie. 

INFLOWS INTO EQUITY MFS TOUCH RECORD HIGH OF ₹34,697 CR IN MAY 

TOPIC: (GS3) ECONOMY – SOURCE: INDIAN EXPRESS 

In May 2024, inflows into equity mutual funds (MFs) in India reached a record high of ₹34,697 crore. This surge was primarily driven by higher investments in sectoral/thematic funds. 

Record Inflows: 

• Equity MF inflows rose 83% from April 2024’s ₹18,917.09 crore to ₹34,697 crore in May. 
• This marks the 39th consecutive month of positive equity inflows since March 2021. 

Contributions and Trends 

• Highest inflows at ₹19,213.43 crore. 
• Flexi cap funds followed with ₹3,155.07 crore. 

Role of RBI in Regulating Microfinance 

The Reserve Bank of India (RBI) plays a pivotal role in regulating microfinance institutions (MFIs) to ensure their proper functioning and protect the interests of borrowers. Key regulatory aspects include: 

• Registration and Certification: MFIs must register with the RBI and comply with its guidelines. 
• Prudential Norms: The RBI sets norms for capital adequacy, provisioning requirements, and asset classification to ensure financial stability. 
• Interest Rate Cap: The RBI regulates interest rates to prevent exploitation of borrowers. 
• Customer Grievance Redressal: Establishing mechanisms to address complaints and disputes between borrowers and MFIs. 

Relation with State Governments 

• Policy Support: Implementing policies that support the growth of microfinance, such as interest rate subsidies or loan guarantees. 
• Regulation: Some states have their own laws to regulate money lending and microfinance activities. 
• Awareness Programs: Conducting financial literacy and awareness programs to educate borrowers about microfinance benefits and risks. 
• Infrastructure Development: Providing necessary infrastructure to support microfinance operations, especially in rural areas. 

Strengthening Microfinance 

• Regulatory Reforms: Simplifying regulatory requirements to facilitate easier access to finance. 

• Capacity Building: Training and development programs for MFI staff to enhance their skills in financial management and customer service. 
• Technological Integration: Promoting the use of digital platforms for loan disbursements, repayments, and other services to reduce operational costs and increase efficiency. 
• Credit Information Systems: Establishing robust credit information systems to track borrowers’ credit history and reduce the risk of over-indebtedness. 
• Financial Inclusion Programs: Expanding financial inclusion initiatives to cover more remote and underserved areas. 
• Policy Interventions: Introducing targeted subsidies or incentives for MFIs to encourage lending to priority sectors like agriculture and small businesses. 

Conclusion 

The record inflows into equity MFs reflect investor confidence, supported by political stability and global economic momentum. The share of equity schemes in the overall MF industry AUM has grown significantly, indicating robust investor interest in equity markets. 

Multiple Choice Question: 

1. The Reserve Bank of India Act, 1934, empowers the RBI to:

1. Directly regulate the stock market. 

1. Issue directions to the Government on fiscal policy. 

1. Grant licenses to all commercial banks in India. 

1. Manage the public debt of the Government of India. 

ANSWER – D 

EXPLANATION 

Stock market regulation is primarily done by the Securities and Exchange Board of India (SEBI). 

The RBI advises the government, but doesn’t issue direct directions on fiscal policy. 

While RBI plays a crucial role, it’s not the sole authority for granting licenses to commercial banks. 

The RBI is responsible for managing the public debt of the Government of India. This includes issuing government bonds and managing their redemption. 

WHAT MODI 3.0 MEANS FOR NEW INDIA 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

The re-election of PM Narendra Modi marks a significant milestone in Indian democracy, symbolizing maturity and the evolution of governance. Modi’s tenure has seen substantial institutional and economic development, focusing on inclusive governance and socio-economic upliftment through various initiatives. 

Leadership and Governance 

• Weberian Concept: Modi embodies Max Weber’s concept of “charismatic authority,” leading with a distinctive and influential style. 
• Strengthening Nationalism: Under Modi, the BJP has reinforced the idea of one nation, instilling a deep sense of patriotism. 

Popularity and Influence 

• Rural Appeal: Modi’s popularity in rural India surpasses even the BJP’s symbol, emphasizing his personal influence. 
• “Modi Guarantee”: Stability, development, and progress have been central to Modi’s appeal, securing public trust and faith. 

Socio-Economic Initiatives 

• GYAN Focus: PM Modi has prioritized growth, youth development, gender equality, and nation-building through initiatives targeting the poor, youth, farmers, and women. 
• Dalit Empowerment: Programs like Panchteerth of Babasaheb Ambedkar have significantly increased support for the BJP among Dalit communities, shifting Dalit politics towards social harmony and unity. 

Economic Progress 

• Make in India: The initiative aims to transform India into a global manufacturing hub, with significant benefits for women, youth, and marginalized communities. 
• Industrialization Impact: The manufacturing boom has created employment opportunities, particularly for marginalized groups, aiding in their socio-economic upliftment. 

Political Stability and Global Engagement 

• Track Record: Modi’s administration is marked by infrastructure development, investment, and innovation, fostering an environment of political stability. 
• Comparison with Nehru: Modi’s era is characterized by assertive and aspirational India, contrasting with the challenges faced during Nehru’s tenure. 

Global Engagement 

• Vishwa Guru: India’s active role in global politics, including hosting the G20 summit and landing a lunar probe, has enhanced its global stature. 
• Public Awareness: The electorate is increasingly aware of India’s global position, making it a significant poll issue for the first time in history. 

Women’s Participation 

• High Turnout: A record 64.95% of women voted, driven by awareness of government schemes and their benefits. 
• Shift in Priorities: Women’s issues have taken precedence over caste and communal considerations in the electoral process. 

Voter Aspirations 

• Consensus Politics: The 2024 elections highlighted the aspirations of voters for inclusive and effective governance. 
• Role of Government: The new era of politics emphasizes the importance of addressing the ideals and interests of marginalized communities. 

Conclusion 

The re-election of PM Modi ushers in a new phase of Indian politics marked by stability, development, and inclusive growth. With a focus on socio-economic upliftment and global engagement, Modi’s leadership continues to shape India’s future, reflecting the aspirations of a diverse and evolving electorate. The government’s commitment to consensus and inclusion promises a transformative impact on the nation’s governance and development. 

WORLD OCEANS DAY 

TOPIC: (GS3) ENVIRONMENT – SOURCE: DOWN TO EARTH 

World Oceans Day is celebrated annually on June 8 to raise awareness about the importance of oceans and their role in sustaining life on Earth. 

It aims to highlight the critical need for ocean conservation and sustainable management practices. 

About World Oceans Day: 

• Significance: Oceans cover over 70% of the Earth’s surface and play a crucial role in regulating the climate, providing food, oxygen, and supporting marine biodiversity. 
• Human Livelihoods: Oceans are vital for human livelihoods, supporting industries such as fishing, tourism, and shipping, which contribute to global economies. 
• Theme: The theme for the 2024 World Oceans Day is “Awaken New Depth,” emphasizing the exploration and conservation of ocean depths. 
• Global Collaboration: The event promotes global collaboration for sustainable ocean management to address challenges like pollution, overfishing, and climate change. 
• Awareness and Education: World Oceans Day encourages public awareness and education about ocean conservation through various activities and initiatives. 
• History: The concept of World Oceans Day was first proposed at the 1992 Earth Summit in Rio de Janeiro and officially recognized by the United Nations in 2008. 

Conclusion: 

World Oceans Day serves as a reminder of the critical importance of oceans to life on Earth and the urgent need for collective action to protect and preserve them for future generations. 

OPERATION BLUESTAR 

TOPIC: (GS3) SECURITY – SOURCE: TIMES OF INDIA 

Operation Bluestar was a significant military operation ordered by Prime Minister Indira Gandhi in June 1984 to eliminate Sikh separatists who had occupied the Golden Temple complex in Amritsar, Punjab. 

About Operation Bluestar: 

• Context: The operation was launched to root out militant Sikh separatists led by Jarnail Singh Bhindranwale, who sought to establish a sovereign state called Khalistan for Sikhs. 
• Objectives: The primary objective was to regain control of the Golden Temple complex while minimizing civilian casualties and restoring law and order. 

                                  

Timeline: 

• June 1-3, 1984: The operation began with the deployment of Indian Army troops around the Golden Temple complex, leading to intense gun battles with Bhindranwale’s followers. 
• June 3-6, 1984: The army intensified its assault, using heavy artillery and tanks, resulting in extensive damage to the complex. 
• June 6, 1984: The operation officially concluded when the Indian Army gained control of the Golden Temple complex. 
• Controversy: Operation Bluestar sparked outrage among Sikhs, who viewed it as an attack on their faith and religious freedom. 
• Casualties: The operation resulted in approximately 400 deaths, including civilians and soldiers, and significant damage to the Akal Takht and other parts of the Golden Temple. 
• Aftermath: The assassination of Prime Minister Indira Gandhi by her Sikh bodyguards in retaliation for Operation Bluestar further escalated tensions between the Sikh community and the Indian government. 

ABYSSAL PLAINS 

TOPIC: (GS1) GEOGRAPHY – SOURCE: INDIAN EXPRESS 

Abyssal plains are fascinating regions of the ocean floor characterized by their flat topography and vast expanses. Recent deep-sea expeditions have revealed a rich diversity of marine life inhabiting these remote and mysterious environments. 

About Abyssal Plains: 

Abyssal plains are flat regions of the ocean floor located at the base of continental rises, typically found at depths greater than 6,500 feet (2,000 meters) below sea level. 

Characteristics: 

• Depth Variation: Abyssal plains exhibit minimal depth variation, usually only 10 to 100 centimeters per kilometer of horizontal distance. 
• Extent: They can span thousands of kilometers, forming extensive plateaus beneath the ocean surface. 
• Location: Abyssal plains are predominantly found in the Atlantic Ocean, with fewer occurrences in the Indian and Pacific Oceans. 
• Coverage: Approximately 40% of the Earth’s ocean floor is covered by abyssal plains, making them one of the most extensive underwater habitats. 
• Composition: The oceanic crust underlying abyssal plains consists mainly of basalt, overlain by layers of sediment deposited by deep ocean currents, marine organisms, volcanic ash, and other materials. 
• Features: Abyssal plains are interspersed with abyssal hills and seamounts, which are underwater volcanic peaks. They are often adjacent to oceanic trenches, where the seafloor plunges dramatically. 
• Marine Life: Recent explorations have uncovered a diverse array of marine species inhabiting abyssal plains, including transparent sea cucumbers, pink sea pigs, and unique sponges, highlighting the ecological significance of these remote environments. 

MOUNT FUJI 

TOPIC: (GS1) GEOGRAPHY – SOURCE: THE HINDU 

Mount Fuji, the iconic peak of Japan, attracts millions of tourists each year, drawn by its majestic beauty and cultural significance. However, the increasing number of visitors has led to concerns about environmental damage and safety issues, prompting local authorities to take action. 

About Mount Fuji: 

Geographic Location: Mount Fuji is located approximately 100 kilometers west of Tokyo on Honshu Island, near the Pacific Coast of Japan. 

Physical Characteristics: 

• Height: Standing at 3,776 meters, Mount Fuji is the tallest peak in Japan and is renowned for its symmetrical cone shape. 
• Geological Formation: It is a stratovolcano characterized by a prominent summit crater and constructed from basaltic lava flows. 
• Active Volcano: While dormant since its last eruption in 1707, Mount Fuji is still considered active by geologists due to its volcanic nature. 

• Snow Cover: Despite its volcanic activity, the summit of Mount Fuji is often covered in snow throughout the year, adding to its scenic beauty. 

Cultural Significance: Mount Fuji holds immense cultural significance in Japan and is considered a sacred symbol in Japanese art, literature, and religion. 

UNESCO World Heritage Site: In 2013, Mount Fuji was designated as a UNESCO World Heritage site, recognizing its cultural and natural importance. 

Tourism Impact: The increasing influx of tourists to Mount Fuji has raised concerns about environmental degradation, safety risks, and overcrowding, prompting local authorities to implement measures to mitigate these issues.