23-July-2024-Daily-Current-Affairs

A GREEN WEALTH TAX IN BUDGET 2024 

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU 

The Indian government is set to introduce a green wealth tax in the Budget 2024, aimed at addressing critical issues such as unemployment and inequality.  

This initiative, part of the Indian Green Deal (IGD), seeks to leverage wealth tax revenues to fund green energy, infrastructure, and the care economy. 

Purpose and Goals: 

• Address unemployment and inequality. 

• Prioritize employment generation. 

• Ensure economic stability through sustainable development. 

Components of IGD: 

• Green Energy: Investment in sustainable energy sources. 

• Infrastructure: Development of essential infrastructure. 

• Care Economy: Funding for health and education sectors. 

Current Scenario: 

• Significant rise in inequality and income among the elite. 

• Increased consumption leading to higher carbon emissions. 

Financial Projections: 

• Wealth Inequality: Levying a wealth tax to address inequality. 

• Funding Allocation: 50% to care economy, 30% to infrastructure, and 20% to green energy. 

• Employment Generation: Expected creation of 8 million jobs, equivalent to 8.2% of the Indian labor force. 

Implementation Strategy: 

• Levying wealth tax to raise funds. 

• Utilizing GDP as a base for calculations. 

• Ensuring a balance between expenditure and generated wealth. 

Conclusion 

The introduction of a green wealth tax in Budget 2024 presents an opportunity to tackle climate change and socio-economic issues simultaneously. This strategic move aims to create a sustainable future for India, addressing inequality and unemployment through targeted investments in green energy, infrastructure, and the care economy. 

A CASE FOR REGULATING GIG-BASED WORK 

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

Karnataka’s draft bill aims to regulate the gig economy by introducing fair contracts and income security for platform workers.  

This initiative addresses key issues faced by gig workers who lack the benefits of traditional employment. 

Addressing Myths in Gig Work: 

• Myth 1: Gig workers would have no bosses and be partners, which proved untrue as algorithms and managers dictate their work. 

• Myth 2: Gig work offers flexible work arrangements. In reality, workers have little control and face strict conditions. 

• Myth 3: Part-time nature of gig work. Many gig workers depend on these jobs for their primary income. 

Challenges Faced by Gig Workers: 

• Algorithmic Control: Work hours, task allocation, cancellations, and ratings are controlled by algorithms, leading to job insecurity. 

• Lack of Benefits: Gig workers lack social security, minimum wage protections, and occupational safety measures. 

• Data Misuse: Personal data of workers is used to monitor their work performance, often leading to exploitation. 

Karnataka’s Bill Provisions: 

• Fair Contracts: Mandates transparent and fair contracts for gig workers. 

• Income Security: Ensures a stable income through mandated social security benefits. 

• Worker Rights: Empowers gig workers with rights similar to traditional employees. 

India’s Stance: 

• Progressive measures are being endorsed at national and state levels, with states like Rajasthan leading the way in implementing protective laws for gig workers. 

GIG ECONOMY IN INDIA 

Gig Worker: An individual performing work outside traditional employer-employee relationships. 

• Types: Independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers. 

Size of the Gig Economy 

• Current Workforce: 77 lakh workers in 2020-21. 

• Future Projections: Expected to reach 2.35 crore workers by 2029-30. 

Skill Distribution: 

• Medium-skilled: 47% 

• High-skilled: 22% 

• Low-skilled: 31% 

Demographics and Income 

• Median Age: 27 years. 

• Average Monthly Income: Rs 18,000. 

• Primary Earners: 71% are sole breadwinners. 

• Household Size: Average of 4.4 members. 

Improving Living Standards 

• Fiscal Incentives: Tax breaks and startup grants for businesses employing a significant number of women. 

• Retirement Benefits: Policies offering retirement plans and insurance for contingencies. 

• Income Support: Assured minimum earnings and paid sick leave. 

Rajasthan Act 2023: 

• Establishes a board for registration and welfare. 

• Provides a social security fund through transaction fees. 

• Offers a platform for collective bargaining and grievance redress. 

 

Conclusion 

The regulation of gig-based work through Karnataka’s draft bill is a significant step towards ensuring fair treatment and security for gig workers. By addressing myths and challenges, and introducing necessary provisions, the bill aims to create a more equitable and secure environment for platform worker 

WOMEN-LED DEVELOPMENT IN INDIA: RISING FEMALE LABOUR FORCE PARTICIPATION 

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

India is transitioning towards women-led development, with significant efforts being made to enhance female labour force participation (FLFP) and empower women.  

Chief Economic Adviser V. Anantha Nageswaran highlighted these developments, emphasizing the government’s commitment to gender equality and economic inclusion. 

Budgetary Allocations and Gender Budgeting: 

• Increased Allocations: There has been a 218.8% increase in budgetary allocation for schemes promoting the welfare and empowerment of women. 

• Gender Budget: The share of the Gender Budget in the total Union Budget has risen to 6.5% in the financial year 2025, the highest since the inception of Gender Budgeting in 2006. 

Challenges and “Motherhood Penalty”: 

• Drop in FLFP: Women in India face a significant drop in labour force participation during childbearing years, often referred to as the “motherhood penalty.” 

Rural and Urban FLFP Trends: 

• Rural Women: According to the Economic Survey, rural women have been driving the increase in FLFP, which rose from 23.3% in 2017-18 to 37% in 2022-23. 

• Urban Women: Although lower than rural areas, urban FLFP has also shown improvement, reaching 25.4% in 2022-23. 

Skilling and Employment Initiatives: 

• Skill Development Schemes: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has increased women’s participation in training programs from 42.7% in 2015-16 to 52.3% in 2023-24. 

• Jan Shikshan Sansthan (JSS): Women constitute about 82% of the total beneficiaries in vocational training institutes. 

• National Skill Training Institutes: Participation of women in these institutes increased from 9.8% to 13.3%. 

Financial Inclusion: 

• Bank Accounts: The Pradhan Mantri Jan Dhan Yojana has facilitated the opening of 52.3 crore bank accounts, with women holding 55.6% of these accounts. 

Care Economy: 

• Public Investment: Direct public investment in the care sector, equivalent to 2% of GDP, has the potential to generate 11 million jobs, with 70% of these jobs likely going to women. 

• Global Models: Countries like Australia, Argentina, Brazil, and the U.S. are highlighted as models for developing a robust care economy. 

Economic Impact of the Care Sector: 

• Job Creation: The care sector is identified as one of the fastest-growing sectors globally, with investments expected to create 475 million jobs by 2030. 

• Dual Benefits: Enhancing the care sector increases FLFP and creates a promising sector for output and job creation. 

Conclusion 

India’s shift towards women-led development and increasing female labour force participation is evident through significant budgetary allocations, skilling initiatives, and financial inclusion efforts. These measures are aimed at overcoming the challenges faced by women and ensuring their active participation in the economy. The focus on the care economy further underscores the potential for job creation and economic growth, driving India towards a more inclusive and equitable future. 

Multiple Choice Question 

1. With reference to the Periodic Labour Force Survey (PLFS), consider the following statements:

1. The PLFS provides data on both rural and urban areas of the country. 

1. The unemployment rate as per PLFS is higher than that of the National Sample Survey (NSS). 

1. The PLFS collects data on both employment and unemployment. 

Which of the above statements 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: 

PLFS covers both rural and urban areas, providing a comprehensive picture of the labour force. 

The unemployment rate as per PLFS is generally lower than that of NSS due to different methodologies and definitions used. 

PLFS collects data on both employment and unemployment, making it a valuable source for analysing labour market trends. 

MGNREGS JOB DEMAND AND RURAL DISTRESS 

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

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims to alleviate poverty by providing rural employment. However, the Economic Survey indicates that MGNREGS job demand is not a true indicator of rural distress. 

Variation in Scheme Performance: 

• Significant differences exist in MGNREGS outcomes across states. 

• Tamil Nadu, with less than 1% of the poor population, utilized nearly 15% of MGNREGS funds in 2023-24. 

• Kerala, with only 0.1% of the poor population, used almost 4% of total funds. 

Employment Generation: 

• Tamil Nadu and Kerala generated 51 crore person-days. 

• Bihar and Uttar Pradesh, despite having 45% of the poor population, accounted for 17% of funds and 53 crore person-days. 

Correlation Analysis: 

• The correlation coefficient between state-wise poverty index and person-days generated was only 0.3. 

• Indicates that MGNREGS fund usage and employment are not proportional to poverty levels. 

Factors Influencing Demand: 

• State’s institutional capacity and varying minimum wages significantly affect MGNREGS demand. 

• Higher wage rates in states like Haryana, Kerala, Tamil Nadu, and Karnataka contribute to higher fund usage. 

Administrative Efficiency: 

• Efficiency in registering demand and managing the scheme varies by state. 

• Despite mandates, only ₹90,000 was released as unemployment allowance in FY24 and ₹7.8 lakh in FY23. 

Conclusion 

The Economic Survey suggests that MGNREGS job demand reflects state administrative efficiency and wage rates rather than rural distress. There is a need to re-evaluate MGNREGS as a tool for poverty alleviation to ensure it effectively addresses rural poverty 

Multiple Choice Question 

1. Which of the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is/are correct?

1. MGNREGA aims to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. 

1. The wages under MGNREGA are determined by the central government and are uniform across all states. 

1. MGNREGA includes provisions for the creation of durable assets and strengthening the livelihood resource base of the rural poor. 

Select the correct answer using the code given below: 

1. 1 only 

1. 1 and 3 only 

1. 2 and 3 only 

1. 1, 2, and 3 

ANSWER: B 

EXPLANATION: 

MGNREGA provides at least 100 days of guaranteed wage employment per financial year to every household whose adult members volunteer for unskilled manual work. 

Wages under MGNREGA are determined by the state governments, not uniformly by the central government. 

The act includes provisions for creating durable assets and strengthening the livelihood resource base of the rural poor. 

CLIMATE CHANGE: REASSESSING GLOBAL TEMPERATURE TARGETS 

TOPIC: (GS3) ENVIRONMENT – SOURCE: INDIAN EXPRESS 

India’s Economic Survey has recently proposed a departure from the global emphasis on meeting specific temperature thresholds, such as the 1.5- or 2-degrees Celsius targets set by the Paris Agreement. This shift advocates for a more balanced approach to addressing climate change, focusing on improving immediate human welfare rather than solely striving to limit global temperature rise. 

Critique of Global Temperature Targets 

• Flawed Focus: The Economic Survey criticizes the excessive focus on meeting global temperature targets, arguing it risks the economic welfare of developing countries. 

• Hulme’s Perspective: Citing Professor Mike Hulme, it suggests that global temperature is an inadequate measure for assessing the complex interplay between climate, human welfare, and ecological integrity. 

• Historical Context: The Survey highlights that historical energy transitions have taken 50-60 years, indicating that rapid changes as currently demanded are unprecedented and unrealistic. 

Challenges for Developing Countries 

• Economic Burden: The demands for rapid energy transitions impose significant costs on developing nations, which are often seen as unfair. 

• Overconsumption: The Survey argues that current strategies replace one form of energy with another without addressing overconsumption, particularly in developed countries. 

• Lifestyle Adjustments: It calls for more sustainable lifestyle changes rather than merely swapping energy sources or adopting new technologies. 

Conclusion 

The Economic Survey advocates for a shift in climate policy, emphasizing immediate improvements in human welfare and addressing consumption patterns. This approach suggests a more pragmatic and equitable strategy for managing climate change, considering the diverse needs and capabilities of different countries. 

Multiple Choice Question: 

1. Which of the following statements regarding the increase in global temperatures is/are correct?

1. The increase in global average temperature is primarily due to the natural variability of the Earth’s climate. 

1. The global average temperature has increased by about 1 degree Celsius above pre-industrial levels. 

1. The Paris Agreement aims to limit the increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit the temperature increase to 1.5 degrees Celsius. 

Select the correct answer using the code below: 

1. 1 and 2 

1. 2 and 3 

1. 1 and 3 

1. 1, 2, and 3 

ANSWER: B 

EXPLANATION: 

the increase in global temperatures is largely attributed to human-induced factors, such as greenhouse gas emissions, rather than natural variability. 

the global average temperature has indeed increased by about 1 degree Celsius above pre-industrial levels. 

The Paris Agreement’s goal is to limit the temperature rise to well below 2 degrees Celsius and to pursue efforts to limit it to 1.5 degrees Celsius. 

EU CARBON BORDER ADJUSTMENT TAX (CBAM): IMPACT ON INDIA 

TOPIC: (GS2) INTERNATIONAL RELATIONS – SOURCE: TIMES OF INDIA 

The European Union’s proposed Carbon Border Adjustment Tax (CBAM) is drawing criticism for being protectionist and counter to the principles of the Paris Agreement. The Economic Survey of India highlights concern about the potential negative impacts on developing countries, particularly India. 

Overview of CBAM 

CBAM is a tariff mechanism proposed by the EU to apply to energy-intensive goods like iron, steel, and aluminium imported into the EU. It aims to level the playing field for European manufacturers by compensating for differences in carbon pricing between the EU and exporting countries. 

Implementation: Scheduled to take effect on January 1, 2026. 

Concerns Raised by the Economic Survey 

• Protectionism: The Economic Survey argues that CBAM represents a form of protectionism, potentially disadvantaging developing countries with less stringent emission norms. 

• Contradiction to Paris Agreement: It is seen as conflicting with the “Common but Differentiated Responsibilities” principle of the Paris Agreement, which acknowledges that while all countries need to address climate change, their responsibilities and capacities vary. 

Impact on India 

• Economic Effects: India is among the top eight countries that will be adversely affected. In 2022, 27% of India’s exports of iron, steel, and aluminium, valued at $8.2 billion, were directed to the EU. 

• Challenges: India must navigate both climate change mitigation and the economic implications of such protectionist measures. 

Conclusion 

The CBAM is criticized for its potential to disrupt trade for developing nations like India, contravening the spirit of international climate agreements and imposing additional burdens on economies already grappling with climate-related challenges. 

BROWN DWARFS 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY – SOURCE: TIMES OF INDIA 

Researchers have utilized the James Webb Space Telescope to closely examine the atmospheric conditions on pairs of brown dwarfs, providing new insights into these unique celestial bodies. 

Brown Dwarfs: 

• Definition: Brown dwarfs are objects larger than planets but smaller than stars. 

• Size: Their size ranges between that of a giant planet like Jupiter and a small star. 

• Formation: Brown dwarfs accumulate material similarly to stars, not like planets. 

• Atmosphere: They can have clouds made of hot silicate particles, much hotter than the water clouds on Earth. 

• Composition: They retain lighter elements (hydrogen and helium) more effectively than planets and have low metal content. 

• Nuclear Fusion: Brown dwarfs lack the mass to sustain nuclear fusion in their cores, which is why they are often called “failed stars.” 

James Webb Space Telescope (JWST): 

• Launch: JWST was launched in 2021 as a collaborative project of NASA, ESA (European Space Agency), and CSA (Canadian Space Agency). 

• Features: It has a large infrared telescope with a 6.5-meter primary mirror. 

• Orbit: Unlike the Hubble Space Telescope, JWST orbits the Sun, approximately 5 million kilometers from Earth at the second Lagrange point (L2). 

• Objective: JWST is designed to observe farther across the cosmos and look further back in time than any previous telescope. 

• Purpose: One of its main goals is to identify the first stars that formed in the early Universe. 

ROGUE WAVES 

TOPIC: (GS1) GEOGRAPHY – SOURCE: THE HINDU 

Researchers have developed a new tool to predict the emergence of rogue waves, which are unusually large and unpredictable waves at sea. 

About Rogue Waves: 

• Also Known As: Freak waves. 

• Nature: Rogue waves are relatively rare, large, and spontaneous ocean surface waves. Their heights are significantly larger than the maximum wave height expected for a given sea state. 

• Formation: 

• Formed from the coincidental stacking of multiple wind-driven wave crests passing through a single point. 

• Can also arise from a combination of waves. 

• Characteristics: 

• Rogue waves can tower to heights greater than twice the size of nearby waves. 

• They may move in the same direction, the opposite direction, or at oblique angles to the prevailing wind and wave motion. 

• Distribution: 

• Observed all over the world’s oceans. 

• Studied in the Mediterranean Sea, the Pacific, the Atlantic, and parts of the Indian Ocean. 

• Unpredictability: 

• Very unpredictable and often come unexpectedly from directions other than prevailing wind and waves. 

• Not restricted to the open ocean but also observed in near-shore areas. 

Impacts: 

• Appearance: Look like “walls of water,” often steep-sided with unusually deep troughs. 

• Hazards: 

• Dangerous to ships at sea, capable of capsizing vessels or washing crew members overboard. 

• Powerful enough to damage oil-drilling platforms and lighthouses. 

• Cause damage to coastal structures and pose danger to small fishing boats. 

Conclusion 

The development of predictive tools for rogue waves is crucial for maritime safety, helping to mitigate the risks these formidable natural phenomena pose to vessels, offshore structures, and coastal areas.