18-July-2024-Daily-Current-Affairs

INTERGENERATIONAL EQUITY AS TAX DEVOLUTION CRITERION 

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU 

The distribution of Union tax revenue among States is a crucial and debated topic. The Finance Commission (FC) revisits this distribution formula every five years, prioritizing equity to ensure fair resource allocation among States. 

Intergenerational Fiscal Equity 

• Definition: Ensures equal opportunities and outcomes for every generation, preventing current generation’s decisions from burdening the future. 

Government Revenue: Raised through taxes or borrowing. 

• If financed through borrowing, future generations must bear the repayment burden. 

Intragenerational vs Intergenerational Equity 

Intragenerational Equity: 

• Redistribution of tax revenue among States. 

• Often focuses on balancing high-income and low-income States. 

Intergenerational Equity: 

• Suggested as a factor in tax devolution. 

• Ensures decisions and expenditures today do not burden future generations. 

Current Fiscal Indicators 

Revenue Expenditure: 

• High-income States have lower Revenue Expenditure to GDP ratio (10.9%) compared to low-income States (18.3%). 

• Low-income States rely heavily on Union financial transfers. 

Own Tax Revenues: 

• High-income States finance a significant portion through their own tax revenues. 

• Low-income States finance only a smaller portion through their revenues. 

Addressing Conflicting Issues 

• Indicators: Consider capitation income, population, and area in distribution formula. 

• Reflect actual fiscal situations of States. 

• Ensure fiscal discipline and equity. 

Union and State Finances: 

• Union financial transfers bridge fiscal deficits of low-income States. 

• The balance of power between Union and State taxes influences fiscal behavior and discipline. 

Necessity for a Better Tax Devolution Method 

• Equitable Resource Distribution: Bihar and Uttar Pradesh are less developed and need more funds to build infrastructure and provide basic services. Equitable distribution ensures they receive adequate support. 

• Balanced Development: States like Maharashtra and Gujarat have better industrial infrastructure compared to Northeast states. Effective tax devolution can promote uniform growth, addressing regional disparities. 

• Fiscal Sustainability: Encourages States to generate their own revenues and manage their finances better, reducing dependency on the Union government. Karnataka and Tamil Nadu have shown strong fiscal management, reducing their reliance on central funds. 

• Addressing Specific Needs: Different States face unique challenges such as natural disasters, health crises, or economic downturns. A flexible devolution method can cater to these specific requirements Example: Kerala frequently faces floods and needs additional funds for disaster management and rehabilitation. 

FINANCE COMMISSION 

The Finance Commission plays a crucial role in India’s federal fiscal system. Here’s a breakdown of its details and methods for distributing resources: 

• Article 280: This article empowers the President to constitute a Finance Commission every five years or earlier. It outlines the Commission’s responsibility to recommend the distribution of tax revenue between the central government (Union) and the state governments. 

Functions: 

• Recommend the sharing of net proceeds of specific taxes between the Union and the States. 

• Determine the principles for allocating these shared taxes among states. 

• Suggest measures to augment the Consolidated Fund of a State to improve its financial position. 

• Recommend grants-in-aid for specific purposes to states. 

• Advise on debt liabilities incurred by states. 

Methods for Distributing Money: 

The Finance Commission uses a multi-criteria approach to determine the distribution of funds. Here are some of the common factors considered, although the specific weightage can vary between commissions: 

• Population: Addresses basic needs based on the number of people in each state. 

• Area: Accounts for the additional costs of administration in larger states. 

• Income Tax Disparity: Helps bridge the gap between richer and poorer states. 

• Fiscal Needs: Considers the specific financial requirements of each state for essential services. 

• Tax Effort: Rewards states that efficiently collect their own taxes. 

Challenges: 

• Striking a balance between vertical equity (reducing disparity between center & states) and horizontal equity (ensuring fairness among states). 

• Addressing the dynamic needs of different states. 

• Ensuring data accuracy for various factors. 

Conclusion 

The FC’s role in ensuring fair tax devolution is critical, balancing intragenerational and intergenerational equity. Addressing fiscal inequalities while ensuring future generations are not burdened is essential for sustainable financial governance. 

Multiple Choice Question: 

1. Consider the following statements with regard to the Finance Commission of India:

1. It is a statutory body established under an Act of Parliament. 

1. It is constituted every seven years by the President of India. 

1. It recommends the principles governing the grants-in-aid to the states by the Centre. 

Which of the statements given above is/are correct? 

1. 1 only 

1. 2 and 3 only 

1. 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, not a statutory body. 

The Finance Commission is constituted by the President of India every five years, or earlier if needed. 

One of the core functions of the Finance Commission is to recommend the principles governing the grants-in-aid provided by the Centre to the states. 

CHOOSING THE RIGHT TRACK TO CUT POST-HARVEST LOSSES 

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU 

India ranks second in global agricultural production but faces significant post-harvest losses due to inadequate infrastructure and inefficiencies. Addressing these challenges is crucial for ensuring food security and enhancing farmer incomes. 

Post-Harvest Losses in India 

• Annual post-harvest losses: ₹1,52,790 crore. 

• Highest losses in perishables: eggs, fish, meat (22%), fruits (19%), vegetables (18%). 

Causes: 

• Inadequate transportation and storage. 

• Delays in getting produce from farms to markets. 

Logistical Challenges 

• Transportation: 97% of fruits and vegetables transported by road. High dependency on Indian Railways for grains. 

• Storage: Lack of cold storage facilities. Inefficiencies in handling and processing. 

Initiatives by Indian Railways 

• Freight Operations: Truck-on-train service for perishables. Special trains for milk and cattle feed during COVID-19. 

• Kisan Rail: Connecting production regions to consumption areas. Example: Nashik farmers benefitting from rail transport. 

How to Reduce Post-Harvest Losses 

Improved Storage: 

• Fact: Up to 40% of grain can be lost due to poor storage. 

• Good Practice: Use airtight containers like metal silos or hermetic bags to minimize moisture and pest problems. (e.g., Purdue University [research on hermetic bags]) 

Smarter Handling: 

• Fact: Rough handling during harvest and transport damages fruits and vegetables. 

• Good Practice: Train farmers on proper harvesting techniques and provide proper packaging to minimize bruising. (e.g., FAO – Food and Agriculture Organization) 

Cooling It Down: 

• Fact: Heat accelerates spoilage, especially for perishable items. 

• Good Practice: Invest in solar-powered cold storage facilities, especially in developing countries. (e.g., International Institute of Refrigeration) 

Market Connections: 

• Fact: Lack of access to markets leads to produce going to waste. 

• Good Practice: Develop better market linkages between farmers and consumers, reducing travel time and spoilage. (e.g., IFAD – International Fund for Agricultural Development) 

Conclusion 

Improving the integration of agricultural logistics with Indian Railways can significantly reduce post-harvest losses, benefiting both farmers and consumers. Continued investment in infrastructure and innovative solutions are essential for minimizing losses and ensuring sustainable agricultural growth in India. 

THE PROBLEMS WITH SUB-CASTE RESERVATIONS 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: THE HINDU 

The Supreme Court’s decision on sub-caste reservations for SC/STs highlights a complex issue with legal and academic implications. Dr. B.R. Ambedkar advocated for legal safeguards and economic measures to uplift untouchables, which included ownership of capital assets and education. 

              

Academic and Legal Grounds 

Ambedkar’s Vision: 

• Proposed legal safeguards against caste discrimination. 

• Advocated for economic empowerment through capital asset ownership and education. 

Current Government Measures: 

• Legal safeguards, reservation in public jobs, education, and legislature. 

• Focus on the untouchable community as a whole, not specific sub-castes. 

Economic and Educational Empowerment 

• Enhance capabilities of untouchables to seek education and secure jobs. 

• Empowerment through ownership of land, business, and education. 

Challenges with Sub-Caste Reservations: 

• Potential for some sub-castes lagging due to lower education and capital assets. 

• Importance of focusing on economic empowerment of individuals. 

The Problem of Low Participation 

Ownership of Capital Assets: 

• Address low participation by improving ownership of capital assets and education. 

• Policy should focus on individual empowerment, not sub-caste based reservations. 

Reservations Impact: 

• Legal and economic measures should be complementary. 

• Sub-caste reservations may not address the underlying issues of low income and education. 

Recent Commission on Sub-Categorization: Rohini Commission.  

• Formation: Established in October 2017 under Article 340 of the Constitution. 

• Purpose: Examine the issue of unequal distribution of reservation benefits among castes within the Other Backward Classes (OBCs) category. 

• Goal: To ensure a more equitable system for OBC reservations. 

Status: 

• Submitted its report in September 2023 after facing delays due to the need for caste-based data. 

• Report details haven’t been made public yet. 

• The government is expected to review and decide on implementation. 

Key Points  

• The commission recommended a “scientific approach” for sub-categorization within OBCs. 

• There have been discussions about dividing OBCs into sub-categories with different reservation quotas based on their socio-economic status. 

• The concept of sub-categorization is debated, with some arguing it might create further divisions within OBCs. 

• The Commission for Sub-Categorization of OBCs (Other Backward Classes) was established to examine the issue of sub-categorization. 

• Focus on creating more equitable distribution of reservation benefits among OBCs. 

National vs. State Specific: 

• The commission operates on a national level, addressing sub-categorization across India. 

Conclusion 

For a more equitable and effective reservation system, policies should focus on enhancing economic and educational opportunities for individuals. Addressing the core issues of ownership of capital assets and education will ensure true empowerment and better utilization of reservation benefits. 

Multiple Choice Question: 

1. The Government of India recently constituted a commission to examine the sub-categorization of which of the following social groups?

1. Scheduled Castes 

1. Scheduled Tribes 

1. Other Backward Classes (OBCs) 

1. Economically Weaker Sections (EWS) 

Answer: C 

EXPLANATION: 

The Government of India constituted a commission to examine the sub-categorization of Other Backward Classes (OBCs). This commission, known as the Rohini Commission, was established to address the unequal distribution of benefits among the various OBC communities. The aim is to ensure a more equitable distribution of reservation benefits within the OBC category by identifying sub-groups that are relatively disadvantaged and ensuring they receive appropriate support. The commission’s work is critical in promoting social justice and improving access to opportunities for all sub-categories within the OBCs. 

POLITICAL REPRESENTATION OF WOMEN IN INDIA 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: THE HINDU 

The representation of women in political institutions has been a significant issue globally. Despite various efforts, achieving substantial gender parity in parliaments remains a challenge.  

Current Status 

Global Comparison: 

• UK: Recent elections saw 263 women MPs (40%) in the House of Commons. 

• South Africa: National Assembly has 45% women representation. 

• USA: House of Representatives includes 29% women. 

• India: Women’s representation in the Lok Sabha and State Legislative Assemblies ranges between 5% and 14%, averaging around 9%. 

Historical Context: 

• Universal Suffrage: Achieved early in the UK (1928), USA (1920), and New Zealand (1893). 

• India: Granted voting rights to women from its first general elections in 1952. 

Measures for Improvement 

• Constitutional Amendments: 73rd and 74th Amendments (1992/1993), Mandated reservation of one-third of seats for women in Panchayats and Municipalities. 

• 106th Constitutional Amendment (September 2023): Provided for one-third reservation of seats for women in the Lok Sabha and State Legislative Assemblies. 

Challenges: 

• Voluntary Quotas: Political parties’ voluntary quotas have not significantly improved women’s representation. 

• Opposition: Arguments against quotas include perceived unfair advantages and concerns about the competence of women candidates. 

Necessity for Women’s Representation 

• Inclusive Governance: Diverse perspectives in policy-making. Enhanced focus on issues like healthcare, education, and social justice. 

• Global Ranking: India ranks 143rd in the ‘Monthly ranking of women in national parliaments’ by the Inter-Parliamentary Union as of April 2024. 

• Development Goals: Improved representation aligns with global gender equality goals, ensuring balanced and equitable development. 

Conclusion 

Enhancing women’s political representation in India is crucial for achieving a balanced and inclusive political landscape. While constitutional amendments like the 106th provide a structured approach, the real challenge lies in effective implementation and societal acceptance. It is essential to continue efforts towards gender parity in political institutions to foster comprehensive development and governance. 

DECLINE IN CHILDHOOD IMMUNIZATION IN 2023 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY– SOURCE: INDIAN EXPRESS 

The WHO and UNICEF recently reported a slight decline in childhood immunization coverage in 2023 compared to 2022, as measured by the WUENIC (World Health Organization and UNICEF Estimates of National Immunization Coverage). 

Overall Immunization Coverage: 

• The global immunization coverage dipped from 95% in 2022 to 93% in 2023. 

• This coverage is higher than the 87% and 88% seen in 2020 and 2022, respectively, but lower than the 2023 global average of 89%. 

DPT Vaccine Coverage: 

• 1.6 million children received zero doses of the DPT (diphtheria, pertussis, tetanus) vaccine in 2023, up from 1.1 million in 2022. 

• This is an improvement from 2.73 million zero-dose children in 2021 but worse than the 2019 figure of 1.4 million. 

Global Under-Vaccination: 

• 2.7 million additional children were either unvaccinated or under-vaccinated in 2023 compared to pre-pandemic levels. 

• The coverage of the third dose of the DPT vaccine was 91% in 2023, a slight decrease from the previous year’s 93%. 

Comparative Statistics: 

• The immunization coverage in 2023 was 85%, higher than the 84% average during the pandemic but lower than the 91% in 2019. 

• In absolute terms, 2.04 million children were under-vaccinated in 2023, slightly lower than the 2.11 million in 2019. 

Expert Opinion: 

• Experts suggest the slight decline in vaccination numbers is not alarming but indicates a need to intensify efforts. 

• Strategies should target reaching 70% coverage easily and aim beyond 90% with specific efforts for migratory populations and seasonal challenges. 

Major Government Programs: 

Universal Immunization Programme (UIP): 

• Ministry: Ministry of Health and Family Welfare (MoHFW) 

• Age Groups: 0-2 years and pregnant women 

• Diseases: Diphtheria, Pertussis, Tetanus, Polio (inactivated and oral), Measles, Rubella, Japanese Encephalitis, Hepatitis B, Rotavirus, Meningitis, Haemophilus influenzae type b (Hib), Pneumococcal disease (PCV) 

• Data: As of 2021, India’s full immunization coverage is around 76.1%, with efforts underway to reach 90%. (https://main.mohfw.gov.in/?q=Major-Programmes/universal-immunization-programme-uip) 

Mission Indradhanush: 

• Launched: 2014 

• Goal: To significantly increase full immunization coverage, especially in low-coverage areas. 

• Focus: Reaching out to unvaccinated or partially vaccinated children. 

Intensified Mission Indradhanush 4.0 (IMI): 

Launched: 2017 

Focus: Further strengthening Mission Indradhanush strategies. 

Conclusion 

While there was a minor decline in childhood immunization coverage in 2023, it highlights the need for continued and intensified efforts to reach and maintain high vaccination rates, especially in light of global health targets. 

Multiple Choice Question: 

4. Consider the following statements regarding Mission Indradhanush 4.0

1. It focuses on specific districts with low immunization rates. 

1. It focused on reaching children who were either unvaccinated or partially vaccinated. 

1. It was launched by the Ministry of Women and Child Development. 

Which of the statements given above is/are correct? 

1. 1 only 

1. 2 and 3 only 

1. 2 only 

1. 1 and 3 only 

ANSWER: C 

EXPLANATION: 

Mission Indradhanush aimed for full immunization coverage for seven specific vaccine-preventable diseases, not all of them. It focuses on specific districts with low immunization rates. 

This was a core focus of the mission to identify and immunize children who missed out on complete vaccination. 

Mission Indradhanush was launched by the Ministry of Health and Family Welfare. 

STATE OF INDIA’S INFORMAL ECONOMY 

TOPIC: (GS3) ECONOMY – SOURCE: INDIAN EXPRESS 

The informal economy in India, encompassing small and medium enterprises, household proprietary and partnership establishments, plays a crucial role in the nation’s economic output and employment. Recent data from the Annual Survey of Unincorporated Enterprises (ASUSE) highlights significant challenges and trends within this sector. 

Job Losses: 

• Over the last seven years, 16.45 lakh jobs have been lost in the non-farm informal economy. 

• Informal manufacturing establishments were the worst affected, with a 15% decline in workers. 

Enterprise Dynamics: 

• The number of unincorporated enterprises increased by 16.56 lakh to 6.50 crore in 2022-23 from 6.33 crore in 2015-16. 

• Own-account enterprises increased by nearly 4%, while hired-worker enterprises contracted by 3.2%. 

Sectoral Trends: 

• Manufacturing units decreased by 9.3% to 1.78 crore, with a corresponding fall in employment. 

• Trade sector units contracted by 2%, but employment marginally increased by 0.8%. 

• The services sector saw a 19.1% increase in units and a 9.5% rise in employment. 

Impact of Economic Shocks 

• Demonetisation (2016): Sudden withdrawal of cash significantly impacted the cash-dependent informal sector. 

• GST Implementation (2017): Regulatory compliances and inclusion in the tax net posed challenges for small enterprises. 

• Covid-19 Pandemic (2020): National lockdown severely affected the informal sector, leading to business closures and job losses. 

Employment Decline: 

• 16 out of 34 states/UTs recorded a decline in informal sector workers in 2022-23 compared to 2015-16. 

• The share of informal sector workers increased in most states post-pandemic, indicating economic distress. 

Conclusion 

The informal economy in India has faced significant challenges over the past seven years, marked by job losses and sectoral contractions. Despite an increase in the number of enterprises, the quality of employment has deteriorated, with a shift towards own-account enterprises.  

HEAVY RAINFALL IN INDIA: CAUSES AND IMPACT 

TOPIC: (GS1) GEOGRAPHY – SOURCE: INDIAN EXPRESS 

In July 2024, at least 80% of India received significant rainfall, with heavy spells across various states. This article explores the contributing factors, current rainfall status, and forecast for the monsoon season. 

Factors Contributing to Heavy Rainfall 

• Monsoon Coverage: The monsoon covered the entire country by July 2, with multiple favorable weather systems enhancing rainfall. 

• Monsoon Trough Position: The semi-permanent, low-pressure trough oscillates north-south, affecting rainfall patterns across central, eastern, and peninsular India. 

• Moisture-Laden Westerlies: Continuous influx of moisture-laden westerlies from the Arabian Sea enhances rainfall. 

• Low Pressure Systems: Development of low-pressure systems over the Bay of Bengal and the Odisha coast contributes to increased rainfall. 

Current Rainfall Status 

• The all-India rainfall increased from 242 mm to 305.8 mm by July 17, reaching 97% of the season’s normal. 

• 17 states received normal or above-normal rainfall, while a few states and UTs like Chandigarh, Manipur, Himachal Pradesh, and Punjab recorded deficits. 

Southwest Monsoon Activity: 

• The southwest monsoon will remain active, with expected heavy rainfall in the southern peninsula, Himalayas, and eastern India. 

Potential Impact: 

• Extremely heavy rainfall forecasted for areas such as Madhya Maharashtra, Karnataka, and Kerala. 

• Rainfall activity across large parts of India is expected to subside by early August. 

Conclusion 

Understanding the factors behind heavy rainfall and monitoring current trends and forecasts are crucial for managing the impact on affected regions. The ongoing monsoon season continues to play a vital role in India’s climate and agriculture. 

LATE BLIGHT DISEASE 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY– SOURCE: DOWN TO EARTH 

Late blight, caused by the fungus Phytophthora infestans, is a serious disease affecting potatoes and tomatoes. 

• It spreads through infected plants and related weeds, with airborne spores traveling long distances in storms. 

• Favorable conditions for late blight include cool, wet weather, leading to repeated infection cycles. 

Transmission: 

• Infected transplants and volunteer plants are primary sources of the disease. 

• Airborne spores can travel far and infect plants during storms. 

• Rain deposits spores on plants, causing new infections. 

Symptoms: 

• Infected plants show lesions on leaves, petioles, and stems, appearing dark green to purplish-black. 

• Whitish spore-producing growths appear on the underside of leaves at lesion margins. 

• Potato tubers develop rot up to 15 mm deep, leading to significant crop losses. 

• Secondary fungi and bacteria, particularly Erwinia species, exacerbate tuber rot, causing further damage during storage and transport. 

Management: 

• Timely application of fungicides can manage the disease. 

• Epidemics can spread rapidly, necessitating prompt action once crops are infected. 

Late blight poses a significant threat to potato and tomato crops, causing extensive damage and economic losses. Effective management through vigilant monitoring and timely fungicide use is crucial to mitigate its impact.