21-December-2024-Daily-Current-Affairs

RBI REPORT ON STATE FINANCES

TOPIC: (GS3) ECONOMY: THE HINDU

The Reserve Bank of India’s (RBI) report on state finances highlights significant progress in fiscal consolidation post-COVID-19. While states have reduced their fiscal deficit and debt-to-GDP ratio, challenges such as power sector losses and rising subsidies remain critical concerns.

Positive Developments

• Debt and Deficit Reduction: States reduced their debt-to-GDP ratio from 31% in 2020-21 to 28.5% by March 2024. The fiscal deficit fell from 4.1% of GDP in 2020-21 to 2.9% in 2023-24.
• Increased Capital Expenditure: Capital outlay improved from 2.1% of GDP in 2020-21 to 2.6% in 2023-24. Budget estimates for 2024-25 indicate a further rise to 2.8%.

Areas of Concern

• Power Sector Losses: Power distribution companies (discoms) recorded cumulative losses of ₹6.5 lakh crore by 2022-23, equivalent to 2.4% of GDP.
• Rising Subsidies: States’ spending on subsidies, including farm loan waivers and free services, has surged.

• For example, income transfer schemes for women in 14 states collectively cost ₹2 lakh crore (0.6% of GDP). Such expenditures limit funds for productive investments.

• Contingent Liabilities: State guarantees increased from 2% of GDP in 2017 to 3.8% by March 2023. This adds financial risks to state budgets.

Recommendations

• Debt Consolidation: States with high debt levels, such as Punjab, Bihar, Kerala, and West Bengal, should adopt a transparent and time-bound roadmap for debt reduction.
• Next-Generation Fiscal Rules: Introduce flexible fiscal policies to address economic shocks while ensuring medium-term fiscal sustainability.

Capital Expenditure (CapEx)

Capital expenditure refers to money spent by the government or an organization to create or improve long-term assets like infrastructure, buildings, machinery, or equipment. These expenses are investments meant to generate benefits in the future.

Example:

• When the government builds a highway, it is a capital expenditure. The highway will be used for many years and help in economic growth by improving transportation.
• For an individual, buying a house or a car would be capital expenditure.

Contingent Liabilities

Contingent liabilities are potential obligations or debts that the government or an organization might have to pay in the future if certain events happen. These are not actual liabilities yet but could become one.

Example:

• If the government guarantees a loan for a power company, and the company fails to repay, the government has to pay the loan. Until the company defaults, it is a contingent liability.
• For an individual, if you co-sign a friend’s loan and they fail to repay it, you’ll be responsible for paying the loan.

Fiscal Deficit

Fiscal deficit occurs when the government’s total expenditure is more than its total revenue (excluding borrowing). It indicates how much the government needs to borrow to cover its expenses.

Formula:
Fiscal Deficit = Total Expenditure – Total Revenue (excluding borrowing)

Example:

• If the government spends ₹100 crore on schools, hospitals, and salaries but earns only ₹80 crore through taxes and other revenues, the fiscal deficit is ₹20 crore.

Conclusion

The RBI report underscores the need for prudent fiscal management by states. While progress has been made, addressing power sector inefficiencies, reining in subsidies, and implementing robust fiscal rules are essential to achieve long-term fiscal sustainability.

CLIMATE CHANGE AND BIODIVERSITY LOSS

TOPIC: (GS3) ENVIRONMENT: THE HINDU

The Nexus Report by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) examines the interconnectedness of global challenges like climate change, biodiversity loss, food insecurity, water scarcity, and health risks. It underscores the need for integrated strategies to address these crises effectively.

Key Highlights

Interlinked Challenges

• Climate change, biodiversity loss, hunger, and other global challenges are deeply interconnected.
• Addressing these issues separately can lead to unintended negative consequences and inefficiencies.

Economic Costs

• Unsustainable economic activities harm biodiversity, food production, and water resources, with unaccounted costs ranging from $10-25 trillion annually.
• Over 50% of the global GDP depends on nature, and its deterioration affects productivity and economic stability.

Role of IPBES

• Similar to the Intergovernmental Panel on Climate Change (IPCC), IPBES evaluates existing knowledge on biodiversity and ecosystems.
• Its findings inform global agreements like the Kunming-Montreal Global Biodiversity Framework, which aims to protect 30% of land, freshwater, and oceans by 2030.

Nexus Report Findings

• Synergistic Approaches: Integrated strategies can address multiple challenges simultaneously. Examples include restoring carbon-rich ecosystems like forests and mangroves, promoting sustainable diets, and managing biodiversity to reduce disease risks.
• Balancing Priorities: Actions like increasing food production or protecting ecosystems must avoid creating new problems, such as stress on land and water resources.
• Actionable Solutions: Over 70 response options provide positive outcomes across various challenges. Strategies include sustainable consumption, pollution reduction, ecosystem restoration, and nature-based solutions.

Transformative Change Needed

• New Approaches: Current methods to tackle ecological decline have failed. Transformative strategies should focus on equity, justice, inclusion, reciprocal human-nature relationships, and adaptive learning.
• Economic Opportunities: Immediate action can generate over $10 trillion in business opportunities and 400 million jobs by 2030 through sustainable, nature-positive models. Delays in action significantly increase costs.

Conclusion

The Nexus Report emphasizes that an integrated, synergistic approach to addressing climate change, biodiversity loss, and other global challenges is essential. Immediate transformative actions can deliver economic, ecological, and social benefits while preventing further decline in natural ecosystems.

WINTER SESSION OF THE 18TH LOK SABHA: PRODUCTIVITY AND CHALLENGES

TOPIC: (GS2) INDIAN POLITY: INDIAN EXPRESS

The first winter session of the 18th Lok Sabha, ending on December 20, 2024, was marked by low productivity and heightened conflict between the government and the Opposition.

Decline in Parliamentary Productivity:

• Rajya Sabha recorded only 40% productivity, functioning for 43 hours and 27 minutes.
• Lok Sabha operated at 5% efficiency, reflecting reduced time for legislative work.

Contentious Issues

• Scuffles broke out, leading to police complaints on the penultimate day.
• Opposition moved a no-confidence motion against the Vice-President and Rajya Sabha Chairman, which was rejected.
• Misinterpretation of remarks by Home Minister Amit Shah and allegations about foreign interference in Indian politics added to the discord.

Legislative Business

• Out of the 16 scheduled Bills, only a few were passed:
• Bharatiya Vayuyan Vidheyak, 2024 for the civil aviation sector.

The Lok Sabha passed the:

• Banking Laws (Amendment) Bill (protecting public sector banks).
• Railways (Amendment) Bill (ensuring passenger and staff safety).
• Disaster Management (Amendment) Bill (enhancing fund transparency for natural disasters).
• Key Bills introduced included the Constitution (129th Amendment) Bill and the Union Territories Laws (Amendment) Bill aimed at simultaneous elections, referred to a Joint Committee.
• External Affairs Updates: Statements on India-China relations were made by External Affairs Minister S. Jaishankar in both Houses.

Challenges Identified:

• Increasing disruptions and personal barbs overshadowed serious debates.
• Important discussions on supplementary grants and reforms were sidelined.

Recommendations:

• Focus on restoring parliamentary decorum and promoting constructive debates.
• Ensure legislative priorities are addressed to uphold democracy’s effectiveness.

Conclusion

The session highlighted the pressing need for Parliament to prioritize productivity and respectful dialogue over partisan conflicts. Enhanced collaboration is crucial to address the nation’s legislative and developmental goals.

SIGNIFICANCE OF THE SILIGURI CORRIDOR AND ROLE OF THE SSB

TOPIC: (GS3) SECURITY: THE HINDU

Union Home Minister Amit Shah recently emphasized the strategic importance of the Siliguri Corridor, a narrow stretch linking Northeast India with the rest of the country. At the 61st Raising Day of the Sashastra Seema Bal (SSB) in Siliguri.

Strategic Importance of Siliguri Corridor

Vital Link Between Northeast and Mainland India:

• The Siliguri Corridor, also called the “Chicken’s Neck,” is a narrow stretch of land connecting India’s northeastern states to the rest of the country.
• It ensures economic, cultural, and logistical connectivity, making it crucial for national integration.

Geopolitical Significance:

• The corridor is located near international borders with China, Bhutan, Nepal, and Bangladesh, making it strategically vital for India’s defence and border management.
• Its proximity to the contentious Doklam Plateau heightens its importance in countering potential threats from China.

Transportation and Trade Hub:

• The corridor serves as a key route for trade and transit, facilitating goods and services between northeastern states and other regions of India.
• It also supports India’s Act East Policy, enhancing connectivity with Southeast Asia.

Key Points

• Importance of the Siliguri Corridor: The Siliguri Corridor, located between the Mahananda and Teesta rivers, serves as a critical link connecting the Northeast with mainland India. Its security is crucial for maintaining connectivity and national integration.
• SSB’s Role in Border Security: The SSB guards a 2,450-km border with Nepal and Bhutan, ensuring peace along India’s boundaries with these friendly nations. The presence of SSB personnel boosts confidence in safeguarding this vital region.
• Contribution to Internal Security: The SSB has been instrumental in curbing left-wing extremism in Bihar and Jharkhand, leading to the elimination of Naxalite threats in these states.
• Promoting Cultural Integration: Unique initiatives by the SSB focus on fostering a strong bond between the nation and border communities, enhancing trust and cooperation.
• Infrastructure Development: Amit Shah inaugurated eight new infrastructure projects for the SSB to strengthen its operational capabilities across the country.

SASHASTRA SEEMA BAL (SSB)

The Sashastra Seema Bal (SSB) is one of India’s Central Armed Police Forces under the Ministry of Home Affairs. It is primarily responsible for guarding India’s borders with friendly neighbouring countries.

Key Details

Formed in 1963 after the Indo-China War. Initially called the Special Service Bureau. More than 90,000 personnel actively serving.

• Headquarters: Located in New Delhi.

Primary Duties:

• Border Security: Guards the 2,450-km border with Nepal and Bhutan.
• Internal Security: Assists in tackling issues like Naxalism and other internal threats.
• Disaster Relief: Provides support during natural calamities.

Role in Peaceful Borders:

• Ensures smooth relations with neighboring countries (Nepal and Bhutan).
• Promotes cooperation and cultural integration in border regions.

Recent Achievements:

• Played a significant role in eliminating left-wing extremism in Bihar and Jharkhand.
• Enhances regional security by deploying personnel in challenging terrains.

Conclusion

The Siliguri Corridor’s strategic importance cannot be overstated, and the SSB’s multifaceted role in securing borders, combating internal threats, and promoting cultural harmony is commendable. These efforts ensure regional stability and national security.

UNDERSEA CABLE EXPANSION TO BOOST INDIA’S DIGITAL CONNECTIVITY

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: INDIAN EXPRESS

India’s undersea cable network is expanding with two new submarine cable systems, the India Asia Xpress (IAX) and India Europe Xpress (IEX), are set to strengthen India’s digital infrastructure, enhance Internet links to Asia and Europe.

New Submarine Cable Systems

• India Asia Xpress (IAX): Connects Chennai and Mumbai to Singapore, Thailand, and Malaysia in Asia.
• India Europe Xpress (IEX): Links Chennai and Mumbai to France, Greece, Saudi Arabia, Egypt, and Djibouti in Europe and West Asia.
• Combined, these cables span over 15,000 kilometers and are owned by Reliance Jio, with investment from China Mobile.

Strengthening Digital Connectivity

• These systems add to the multiple cables already landing in Mumbai and Chennai, reflecting rising Internet traffic.
• Ensures resilience against physical damages or cyberattacks, crucial for maintaining uninterrupted services.

Strategic Implications

• India’s proactive role enhances its geopolitical standing in regions like the Bay of Bengal and the South China Sea.
• It addresses concerns about submarine cable disruptions, as highlighted by previous incidents affecting global connectivity.

Domestic and Regional Impact

• Despite challenges like Bangladesh pausing bandwidth sharing plans, India’s Northeast remains well-served by fiber networks laid on Power Grid lines, offering robust connectivity for the region.
• India’s active participation in global forums like the International Advisory Body for Submarine Cable Resilience emphasizes its commitment to digital stability.

Conclusion

India’s new undersea cable systems not only improve digital connectivity with Asia and Europe but also position the country as a strategic player in global Internet infrastructure. This development aligns with India’s focus on digital resilience, economic growth, and regional influence.

STRENGTHENING INDIA-SRI LANKA TIES: SECURITY AND DEVELOPMENTAL COOPERATION

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

Sri Lankan President Anura Kumara Dissanayake (AKD) visited India, where discussions focused on enhancing security assurances and fostering economic cooperation. This visit highlights the evolving bilateral relationship between India and Sri Lanka amid regional and domestic priorities.

Security and Regional Stability:

• AKD reassured India that Sri Lanka’s territory would not be used for activities harmful to India’s security.
• This statement reassures India amidst concerns over Chinese naval presence in Sri Lankan waters, signaling Sri Lanka’s alignment with India’s security interests.
• Notably, the joint statement did not address the Tamil minority issue, which remains a sensitive subject for Sri Lanka, particularly with regard to the 13th Amendment and war crime investigations.

Domestic Confidence and Sovereignty:

• With a strong electoral mandate, AKD approached the talks with confidence, focusing on national unity and sustainable development.
• His domestic agenda includes an anti-corruption drive to project an image of a “Clean Sri Lanka,” enhancing his political standing.
• AKD avoided addressing issues of Tamil reconciliation, focusing more on development over New Delhi’s concerns.

Strengthening Economic and Development Cooperation:

• The joint statement emphasized areas of mutual benefit such as renewable energy projects, housing initiatives, and enhancing digital connectivity, including the integration of India’s Aadhaar and UPI systems.
• Collaborative projects include the development of energy hubs in Trincomalee and offshore wind energy, contributing to Sri Lanka’s sustainable economic growth.

Enhancing Connectivity:

• Both countries prioritized the improvement of physical connectivity, including new passenger ferry services and port rehabilitation efforts.
• Defence cooperation was also a key topic, with discussions on joint military exercises, maritime surveillance, and platform-sharing to enhance Sri Lanka’s security.
• The Colombo Security Conclave mechanism, focused on maritime and cyber security, is vital for strengthening bilateral ties.

India’s Concerns with Sri Lanka:

• Rising Chinese Influence: China’s involvement in projects like the Colombo airport has raised concerns in India regarding unequal competition in Sri Lanka’s economic sector.
• Security Threats: The presence of Chinese naval vessels in Sri Lankan waters is a significant security concern for India.
• Strategic Interests: India is concerned about safeguarding its interests, especially with its financial contributions to Sri Lanka’s economic recovery.
• Minority Exclusion: India is concerned about the marginalization of Tamil and Muslim communities in Sri Lanka’s governance.
• Fishing Disputes: Ongoing tensions over maritime disputes, particularly around Katchatheevu Island, affect India-Sri Lanka relations.
• Tamil Issue: India remains concerned about Sri Lanka’s progress in resolving the Tamil issue and implementing the 13th Amendment for devolution of power.

Conclusion:

India-Sri Lanka relations are poised for continued growth through enhanced security and economic collaboration. Both nations remain committed to strategic cooperation, despite ongoing challenges.

JAM TRINITY AND DIGITAL REVOLUTION: A DECADE OF FINANCIAL INCLUSION AND TRANSPARENCY

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The JAM Trinity, comprising Jan Dhan Yojana (PMJDY), Aadhar, and Mobile, has transformed India’s financial and welfare systems. By facilitating direct benefit transfers (DBT) and promoting digital transactions.

Key Components of the JAM Trinity:

Jan Dhan Yojana (PMJDY):

• Over 54 crore bank accounts have been opened under PMJDY, with ₹2.39 lakh crore in deposits.
• 66% of the accounts are in rural and semi-urban areas, and 39% are held by women.
• 02 crore RuPay cards have been issued to account holders.
• The World Bank highlights India’s achievement in financial inclusion, reaching its goals in just 6 years compared to 47 years without digital infrastructure.

• Aadhar: Aadhar provides unique identification to Indian citizens, facilitating targeted delivery of government welfare benefits. It enables seamless Direct Benefit Transfers (DBT) to individuals’ bank accounts.
• Mobile: Mobile phones enable easy access to banking services, ensuring digital transactions and broader financial inclusion.

Impact and Significance:

• Financial Inclusion: PMJDY is India’s largest financial inclusion program, covering over 54 crore citizens. DBT has eliminated intermediaries, ensuring quicker and more accurate delivery of welfare benefits.
• Transparency and Reduction in Corruption: Fake beneficiaries have been eliminated, preventing misappropriation of ₹2.75 lakh crore. Digital payments through UPI reached ₹200 lakh crore in FY 2023-24, positioning India as a global leader in digital finance.

Challenges and Bottlenecks:

• Technological Barriers: Despite progress, some rural areas still face issues with mobile and internet connectivity, hindering full participation in the JAM ecosystem.
• Digital Literacy: Low digital literacy, particularly in rural regions, limits the ability of many citizens to fully engage with digital services.
• Data Privacy Concerns: Widespread data collection through Aadhar and mobile phones has raised concerns about the privacy and security of personal data.

Way Forward:

• Expand Digital Infrastructure: Increased investment in mobile and internet infrastructure is crucial, especially in rural areas, to bridge the digital divide.
• Promote Digital Literacy: Government initiatives to enhance digital literacy among marginalized populations will ensure more inclusive participation in financial programs.
• Strengthen Data Protection Laws: Strengthening data privacy regulations will help maintain public trust and ensure security in the digital ecosystem.

Conclusion:

The JAM Trinity has revolutionized India’s financial landscape by improving accessibility, transparency, and reducing corruption. Continued focus on expanding digital infrastructure, enhancing digital literacy, and safeguarding data privacy will ensure sustained progress in financial inclusion.

DECLINE IN BIRD SPECIES AT ASSAM’S BORDOIBAM-BILMUKH BIRD SANCTUARY

TOPIC: (GS3) ENVIRONMENT: THE HINDU

A recent study conducted at the Bordoibam-Bilmukh Bird Sanctuary (BBBS) in Assam highlights a significant decline in bird species over the past 27 years. The sanctuary has witnessed a 72% reduction in its avian diversity, mainly due to human activities and habitat degradation.

Key Findings of the Study:

• The study, covering 2022-2024, recorded only 47 bird species, compared to 167 species in 1997.
• Earlier surveys also showed a decline: 133 species in 2011 and 120 species in 2017-2018.
• Decline in bird populations has been linked to overfishing, poaching, and agricultural activities near the wetland.

Factors Contributing to Decline:

• Overfishing: Reduces aquatic resources for birds, impacting their food supply.
• Poaching: Illegal hunting has affected species like the lesser whistling duck and yellow-footed green pigeon.
• Agricultural Encroachment: Expansion of farming near the sanctuary disrupts natural habitats.
• Habitat Degradation: The destruction of wetlands and water bodies affects bird populations and food chains.

Ecological Consequences:

• The decline in bird species disrupts local food chains and migratory patterns.
• Nutrient cycles in the ecosystem are also slowing down due to the reduction in biodiversity.

Conservation Status of Assam:

• Assam is home to about 950 bird species, including 17 endemics.
• The state has 55 Important Bird and Biodiversity Areas (IBAs), which are vital for its avian populations.

Conclusion:

Immediate conservation efforts are needed to protect habitats and curb human activities to restore the biodiversity of the Bordoibam-Bilmukh Bird Sanctuary.

CALYPTOCEPHALLELA GAYI

TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS

Calyptocephallela gayi, commonly known as the Helmeted Water Toad, is a unique species of frog native to Chile. This fascinating amphibian is considered a “living fossil” because it has existed since the time of dinosaurs. Unfortunately, its population is now under threat due to climate change and human activities.

Key Features

• One of the largest frogs in the world, it grows up to 30 cm in length and weighs up to 1 kg.
• Females are larger, reaching up to 32 cm, while males grow to about 15.5 cm.
• It has a broad head, large mouth, and a robust body.

Habitat and Distribution

• Found in aquatic habitats like lakes, rivers, and ponds.
• Native to the lowlands of Chile, up to an elevation of 500 meters.

Conservation Status

• Listed as Vulnerable by the IUCN.

Threats

• Climate change and habitat destruction.
• Environmental degradation and pollution have significantly reduced their population.

The Helmeted Water Toad is an irreplaceable part of Chile’s biodiversity, and urgent conservation efforts are needed to protect its shrinking population.