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Distribution: yearly

  • India’s Leopard Population rises to 13,874

    leopard

    In the news

    • The Union Minister for Environment, Forest, and Climate Change, released the report on the Status of Leopards in India at New Delhi.

    About Indian Leopard

    • The Indian Leopard (Panthera pardus fusca) is a leopard subspecies widely distributed on the Indian subcontinent.
    • These are the smallest of the big cats.
    • They are known for their ability to adapt to a variety of habitats.
    • They are strong and agile predators that can climb trees and drag their prey up for safety.
    • Conservation Status:
    1. IUCN Red List: Vulnerable
    2. CITES: Appendix I
    3. Wildlife (Protection) Act, 1972: Schedule I

    About the Fifth Cycle of Leopards Estimation

    • The fifth cycle leopard population estimation was conducted by the National Tiger Conservation Authority (NTCA) and Wildlife Institute of India (WII), in collaboration with State Forest Departments.
    • It covered 18 States of India, and focused on about 70% of the animals’ expected habitat.
    • The estimation focused on forested habitats within 18 tiger states, covering major tiger conservation landscapes. Non-forested and high Himalayan regions were excluded.
    • A comprehensive foot survey spanning 6,41,449 km and camera traps at 32,803 locations resulted in 85,488 photo-captures of leopards, providing valuable insights into their distribution and abundance.

    Key Findings

    • Population Estimate: India’s leopard population is estimated at 13,874 individuals, signifying stability compared to the 2018 estimate. Notably, this estimation covers 70% of leopard habitat, excluding areas like the Himalayas and semi-arid regions.
    • Regional Trends: While Central India witnesses a stable or slightly growing population, regions like the Shivalik hills and Gangetic plains experience a decline. Overall, there’s a 1.08% per annum growth in sampled areas.
    • State-wise Distribution:  Madhya Pradesh houses the largest population of leopards in the country – 3907 (2018: 3421), followed by Maharashtra (2022: 1985; 2018: 1,690), Karnataka (2022: 1,879 ; 2018: 1,783) and Tamil Nadu (2022: 1,070; 2018: 868).
    • Habitats: Tiger Reserves or sites with highest leopard population are, Nagarajunasagar Srisailam (AP), followed by Panna (MP), and Satpura (AP).
    • Declining Trends: While Uttarakhand reported a 22% decline in the big cat numbers — reportedly due to poaching and man-animal conflict, Arunachal Pradesh, Assam and West Bengal saw a collective 150% rise to 349 animals.

    Try this PYQ from CSP 2012

    Q. Which one of the following groups of animals belongs to the category of endangered species?

    (a) Great Indian Bustard, Musk Deer, Red Panda and Asiatic Wild Ass

    (b) Kashmir Stag, Cheetal, Blue Bull and Great Indian Bustard

    (c) Snow Leopard, Swamp Deer, Rhesus Monkey and Saras (Crane)

    (d) Lion-tailed Macaque, Blue Bull, Hanuman Langur and Cheetal

     

    [wpdiscuz-feedback id=”fipnp0iluh” question=”Please leave a feedback on this” opened=”1″]Post your response here.[/wpdiscuz-feedback]

  • India’s First Hydrogen Fuel Cell Ferry: A Technological Marvel

    hydrogen

    In the news

    • Prime Minister has unveiled India’s maiden indigenous hydrogen fuel cell ferry, a groundbreaking achievement in the country’s maritime sector.

    About Harit Nauka Initiative

    • In January 2024, the Shipping Ministry unveiled the guidelines for inland vessels.
    • As per the guidelines, all states have to make efforts to use green fuels for 50 per cent of inland waterways-based passenger fleets in the next one decade, and 100 per cent by 2045.
    • This is to reduce greenhouse gas emissions as per the Maritime Amrit Kaal Vision 2047.

     

    Hydrogen Fuel Cell Ferry: Key Features

    • Design: The 24-meter-long catamaran ferry accommodates up to 50 passengers in its air-conditioned area, constructed with high-quality fiberglass reinforced plastic.
    • Manufacture: Manufactured by Cochin Shipyard Limited (CSL), the vessel will revolutionize water transportation and contribute to India’s green mobility initiatives.
    • Propulsion: Powered by a 50-kW Proton-Exchange Membrane (PEM) fuel cell and Lithium-Ion Phosphate batteries, the vessel operates with zero emissions and minimal noise, offering enhanced energy efficiency.
    • Energy Source: Hydrogen fuel, stored in five cylinders onboard, fuels the vessel’s propulsion system, supplemented by a 3-kW solar panel for additional energy generation.

    Operational Mechanism

    • Hydrogen Fuel Cells: The vessel utilizes hydrogen fuel cells to generate electricity by harnessing the chemical energy of hydrogen, emitting only pure water as a byproduct.
    • Continuous Operation: Unlike conventional batteries, hydrogen fuel cells do not require recharging, ensuring continuous operation with uninterrupted fuel and oxygen supply.

    Indigenous Development

    • Collaborative Effort: Cochin Shipyard Limited spearheaded the vessel’s construction, incorporating indigenous hydrogen fuel cell systems developed by KPIT Technologies and Council of Scientific and Industrial Research Labs.
    • Early Mover Advantage: India’s pioneering hydrogen fuel cell ferry underscores the nation’s commitment to green technology and positions it as a frontrunner in maritime sustainability.

  • Synthesis of Gold Nanoparticles from Roen Olmi Mushroom

    gold

    In the news

    • Researchers in Goa have successfully synthesized gold nanoparticles from a wild mushroom species known as Roen Olmi, which is widely consumed as a delicacy in the coastal state.

    About Roen Olmi Mushroom

    • Species: Roen Olmi belongs to the Termitomyces species and is found growing on termite hills.
    • Local Name: Locally known as “roen olmi” in Goa, it is a popular edible wild mushroom enjoyed by the locals, especially during the monsoon season.
    • Habitat: Endemic to the Western Ghats, Roen Olmi mushrooms thrive in the thick forest cover and high humidity prevalent in the region.
    • Ecological Significance: These mushrooms play a crucial role in forest and grassland ecosystems by converting 50% of dead plant material into nutrient-rich soil. They also possess antioxidant and antimicrobial properties.
    • Cultural and Medicinal Value: Roen Olmi mushrooms are valued not only for their nutritional attributes but also for their ethno-medicinal significance in indigenous communities across Asia and Africa.

    Implications and Future Directions

    • Economic Impact: The breakthrough has significant economic implications, especially in the biomedical and biotechnological sectors, where the demand for gold nanoparticles is expected to rise.
    • Environmental Sustainability: Unlike conventional methods that employ toxic chemical agents, the use of Roen Olmi mushrooms offers an eco-friendly approach to mass-producing gold nanoparticles.
    • Local Community Benefits: The researchers advocate for the conservation and sustainable use of this valuable resource, emphasizing the importance of sharing benefits with the local community in accordance with the Nagoya Protocol.

    Try this PYQ from CSP 2021

    In the nature, which of the following is/are most likely to be found surviving on a surface without soil?​

    1. Fern​
    2. Lichen​
    3. Moss​
    4. Mushroom​

    Select the correct answer using the code given below.​

    (a) 1 and 4 only​

    (b) 2 only​

    (c) 2 and 3 only​

    (d) 1, 3 and 4 only​

     

    [wpdiscuz-feedback id=”rtx1arxcff” question=”Please leave a feedback on this” opened=”1″]Post your responses here.[/wpdiscuz-feedback]

  • PM inaugurates Naval Base and Airstrip in Agalega Island, Mauritius

    Agalega Island

    In the news

    • PM Modi in collaboration with his Mauritian counterpart Pravind Jugnauth, inaugurated a series of projects on Mauritius’ Agalega Island.

    Agalega Island: A Strategic Location

    • Agaléga are two outer islands of Mauritius located in the Indian Ocean, about 1,000 kilometers north of Mauritius island.
    • The islands have a total area of 2,600 ha (6,400 acres).
    • Notable settlements include Vingt Cinq on the North Island and Sainte Rita on the South Island, serving as primary hubs for residents and economic activities.

    Significance of New Airstrip and the Base

    • India’s Strategic Presence: The inauguration of a new airstrip and jetty underscores India’s commitment to strengthening its influence in the southwestern Indian Ocean, aligning with its broader strategic objectives.
    • Economic Impetus: Agalega Island’s strategic location facilitates trade and connectivity in the Indian Ocean region, enhancing economic opportunities for Mauritius and neighboring countries.
    • Trade Security: With a significant portion of India’s trade traversing the Indian Ocean, the development of infrastructure on Agalega Island contributes to safeguarding trade routes and ensuring maritime security.

    Benefits for Mauritius

    • Developmental support: Historically a slave plantation, North Agalega Island reflects the legacy of colonial exploitation, with its main town, Vingt Cinq, evoking the brutality of slavery.
    • Strategic boost: India’s development initiatives aim to ameliorate conditions for the island’s inhabitants, alongside bolstering Mauritian Defence Force operations.

    India’s Strategic Imperative

    • Counterbalancing Chinese Influence: India’s developmental endeavors on Agalega Island serve as a proactive measure to counter China’s expanding ‘String of Pearls’ strategy, safeguarding its regional interests and sovereignty.
    • Enhanced Security Infrastructure: By upgrading security infrastructure, including facilities for surveillance and monitoring, Mauritius strengthens its security apparatus, contributing to overall regional stability and resilience.
    • Regional Cooperation: The projects on Agalega Island are aligned with India’s Security and Growth for All in the Region (SAGAR) policy initiative, aimed at fostering regional development and security cooperation among Indian Ocean Rim countries.

  • Context Windows in AI Conversations

    In the news

    • In conversations with AI chatbots like ChatGPT, the text the AI can “see” or “read” at any given moment is determined by its context window.
    • The context window, measured in tokens, defines the amount of conversation the AI can process and respond to during a chat session.

    What are Context Windows?

    • Tokens: Basic units of data processed by AI models, tokens represent words, parts of words, or characters.
    • Tokenisation: The process of converting text into vectors (format suitable) for input into machine learning models.
    • Example: For English text, one token is roughly equivalent to four characters. Thus, a context window of 32,000 tokens translates to around 128,000 characters.

    Importance of Context Windows

    • Recall and Understanding: Context windows enable AI models to recall information from earlier in the conversation and understand contextual nuances.
    • Generating Responses: They help AI models generate responses that are contextually relevant and human-like in nature.

    Functioning of Context Windows

    • Sliding Window Approach: Context windows work by sliding a window over the input text, focusing on one word at a time.
    • Scope of Information: The size of the context window determines the scope of contextual information assimilated by the AI system.

    Context Window Sizes

    • Advancements: Recent AI models like GPT-4 Turbo and Google’s Gemini 1.5 Pro boast context window sizes of up to 128K tokens and 1 million tokens, respectively.
    • Benefits: Larger context windows allow models to reference more information, maintain coherence in longer passages, and generate contextually rich responses.

    Challenges and Considerations

    • Computational Power: Larger context windows require significant computational power during training and inference, leading to higher hardware costs and energy consumption.
    • Repetition and Contradiction: AI models with large context windows may encounter issues such as repeating or contradicting themselves.
    • Accessibility: The high resource requirements of large context windows may limit access to advanced AI capabilities to large corporations with substantial infrastructure investments.

    Conclusion

    • Context windows play a vital role in enabling AI chatbots to engage in meaningful conversations by recalling context and generating relevant responses.
    • While larger context windows offer benefits in terms of performance and response quality, they also pose challenges related to computational resources and environmental sustainability.
    • Balancing these factors is essential for the responsible development and deployment of AI technologies.

  • Melanochlamys Droupadi: New Sea Slug specie named after President Murmu

     

    President Draupadi Murmu

    In the news

    • The Zoological Survey of India (ZSI) announced the discovery of a new marine species, Melanochlamys droupadi, named after the esteemed President of India, Droupadi Murmu.

    About Melanochlamys Droupadi

    • Geographical Origin: Melanochlamys droupadi was first sighted off the shores of Digha in West Bengal and Udaipur in Odisha, marking its exclusive habitat.
    • Distinctive Features: Characterized by its short, blunt cylindrical body and smooth dorsal surface adorned with two unequal shields, this species showcases unique anatomical traits.
    • Morphological Identification: The species was meticulously examined for morphological, anatomical, and molecular characteristics, confirming its taxonomic classification within the Melanochlamys genus.
    • Physical Attributes: It is a small invertebrate reaching up to 7 mm in length, exhibits a brownish-black hue with a striking ruby red spot.
    • Biological nature: It is hermaphroditic (possessing both male and female reproductive organs, structures, and tissue) and predominantly inhabits intertidal zones along sandy beaches.

    Habitat and Reproduction

    • Ecological Niche: The species is typically found in the intertidal zone, leaving distinctive crawl marks along sandy beaches.
    • Reproductive Cycle: Reproduction occurs primarily between November and January, marking a critical phase in the species’ life cycle.

    Distribution and Taxonomy

    • Indo-Pacific Realm: While species of the Melanochlamys genus are predominantly found in temperate regions of the Indo-Pacific Ocean, Melanochlamys droupadi stands out as a truly tropical species.
    • Research Insights: A study conducted by ZSI researchers sheds light on the species’ behavior, highlighting its unique ability to secrete transparent mucus, forming a protective sheath against sand grains.

  • [pib] Establishment of International Big Cat Alliance (IBCA)

    In the news

    • The Union Cabinet, chaired by Prime Minister, has approved the establishment of the International Big Cat Alliance (IBCA) with headquarters in India.

    About the International Big Cat Alliance (IBCA)

    • Objective: The IBCA aims to spearhead efforts towards the protection and conservation of the 7 major big cats: tiger, lion, leopard, snow leopard, puma, jaguar, and cheetah.
    • Funding: The Government of India has pledged an initial support of Rs. 150 crore for the first five years. Additionally, the alliance will explore contributions from bilateral and multilateral agencies, financial institutions, and donor agencies to augment its corpus.
    • Membership: Membership to the alliance will be open to 96 “range” countries, which are nations containing the natural habitat of the seven big cats.
    • Activities: The alliance’s activities will include advocacy, partnership building, knowledge dissemination through an e-portal, capacity building, eco-tourism promotion, and financial resource mobilization.

    Governance Structure

    • Composition: The governance structure of IBCA includes a General Assembly comprising all member countries, a Council of elected member countries, and a Secretariat.
    • Appointment: The General Assembly appoints the Secretary General of IBCA upon the recommendation of the Council.
    • Framework: The alliance’s governance framework, drafted on the lines of the International Solar Alliance (ISA), will be finalised by the International Steering Committee (ISC).

    India’s Role in Big Cat Conservation

    • Big Cat Diversity: India is home to five of the seven major big cats: tiger, lion, leopard, snow leopard, and cheetah.
    • Conservation Efforts: India has undertaken significant conservation efforts, as reflected in the increase in tiger and lion populations. For instance, India now hosts about 70% of the world’s tiger population, and the Asiatic lion population in Gir National Park has shown steady growth.
    • Cheetah Reintroduction: Cheetahs, once extinct in India since 1952, have been reintroduced into the wild. Eight cheetahs were imported from Namibia and released into the Kuno National Park in Madhya Pradesh in November 2022.

  • Ex-SC Judge Justice A M Khanwilkar appointed Lokpal Chairperson

    In the news

    • Former Supreme Court judge Justice Ajay Manikrao Khanwilkar has been appointed as the chairperson of Lokpal, the anti-corruption ombudsman of India.
    • Justice Khanwilkar retired from the Supreme Court in July 2022, bringing a wealth of judicial experience to his new role.

    About Lokpal

    • Establishment: Lokpal is a statutory body established under the Lokpal and Lokayuktas Act of 2013.
    • Mandate: It is tasked with investigating allegations of corruption against certain public functionaries and related matters.
    • Organisational Structure:
    1. The Lokpal comprises a chairperson and a maximum of 8 members.
    2. The chairperson must be a former Chief Justice of India, a former Supreme Court judge, or an eminent person meeting eligibility criteria.
    3. Half of the members must be judicial members, either former Supreme Court judges or former Chief Justices of High Courts.
    4. At least 50% members must be from SC / ST / OBC / Minorities and women.
    5. Members serve a term of 5 years or until they turn 70, whichever is earlier.
    • Perks and Benefits: The salary, allowances, and other conditions of service for the chairperson are equivalent to those of the CJI, while members receive benefits similar to Supreme Court judges.

    Appointment Process:

    • The President of India appoints the chairperson and members based on the recommendation of a selection committee.
    • The selection committee includes the PM as Chairperson, the Speaker of Lok Sabha, the Leader of Opposition in Lok Sabha, the Chief Justice of India or a nominated judge, and one eminent jurist.

    Jurisdiction:

    • Lokpal has jurisdiction to investigate allegations of corruption against Prime Ministers, Union Ministers, Members of Parliament, and officials of the Union Government.
    • It extends to individuals associated with government-funded entities and those receiving substantial foreign contributions.

    Exceptions for Prime Minister:

    • Lokpal cannot probe allegations against the PM related to certain sensitive areas like international relations, security, public order, atomic energy, and space without the approval of at least 2/3rds of its members.
    • A full Lokpal bench must consider initiating inquiries into complaints against the PM.

    Powers of Lokpal:

    • Lokpal exercises superintendence over and provides directions to the Central Bureau of Investigation (CBI) in corruption cases.
    • It can authorize the CBI for search and seizure operations linked to such cases.
    • The Lokpal’s Inquiry Wing possesses powers akin to a civil court.
    • It can recommend the transfer or suspension of public servants implicated in corruption allegations.
    • Lokpal is empowered to prevent the destruction of records during preliminary inquiries and confiscate assets obtained through corruption.

    Reporting and Accountability

    • Annually, Lokpal submits a report on its activities to the President, which is then presented to both Houses of Parliament for scrutiny.

    Try this PYQ from CS Mains 2013

    Q.‘A national Lokpal, however strong it may be, cannot resolve the problems of immorality in public affairs’. Discuss.

  • Cannabis Use: Implications for Psychiatry

    cannabis

    In the news

    • Cannabis (Cannabis sativa) has long intrigued psychiatrists due to its impact on mood and cognition, prompting research into its potential therapeutic applications for conditions like schizophrenia and mood disorders.

    Do you know?

     

    • The Narcotic Drugs and Psychotropic Substances Act, 1985 regulates cannabis by defining it under Section 2(iii) of the act.
    • Cannabis, also known as hemp, includes various forms such as charas (resin), ganja (flowering or fruiting tops), and any mixture or drink prepared from these forms.
    • However, interestingly, bhang, a preparation of cannabis, is NOT covered under this act and remains beyond its purview.
    • Bhang is permitted for production and sale by many States as it falls outside the definition of cannabis under the NDPS Act.

    What is Cannabis?

    • Cannabis, also known as marijuana, weed, pot, or ganja, is a genus of flowering plants that belongs to the Cannabaceae family.
    • It is primarily known for its psychoactive properties due to the presence of compounds such as tetrahydrocannabinol (THC).
    • This THC interacts with the brain’s cannabinoid receptors, resulting in various effects including relaxation, euphoria, altered perception of time, and increased appetite.
    • The plant contains over 100 different cannabinoids, with THC and cannabidiol (CBD) being the most well-known and studied.

    Why discuss this?

    • Researchers at the University of British Columbia initiated a clinical trial to explore the efficacy of cannabidiol (CBD) in treating bipolar depression, offering promise for addressing depressive episodes in bipolar disorder.
    • While delta-9-tetrahydrocannabinol (THC) is the primary psychoactive compound in cannabis, CBD has garnered attention for its potential antipsychotic and neuroprotective effects.

    Understanding the Cannabinoid System

    • Receptor Mechanisms: The human cannabinoid system, comprising CB1 and CB2 receptors, plays a crucial role in modulating various bodily functions, including pain, memory, and appetite, with THC exerting acute effects on motor control and memory.
    • Endo-cannabinoid System (ECS): The ECS, governed by endogenous molecules, regulates neurotransmitter activity, influencing mood and cognitive processes.

    Therapeutic Applications  

    • Medical Uses: THC and synthetic cannabinoids are utilized to stimulate appetite, alleviate nausea, and manage pain associated with conditions like HIV-AIDS and cancer.
    • Addiction and Withdrawal: Debate surrounds the addictive potential of THC, with animal studies suggesting addictive responses and withdrawal symptoms upon cessation of heavy use.

    Psychiatric Implications

    • Mood Effects: Cannabis’ impact on mood is multifaceted, with reports suggesting associations with depression and bipolar disorder, although rigorous scientific scrutiny is lacking.
    • Psychotic Risks: Individuals with psychotic illnesses, including schizophrenia, exhibit heightened susceptibility to cannabis-induced psychotic symptoms, with youth cannabis use potentially advancing the onset of schizophrenia in genetically vulnerable individuals.

    Policy Considerations

    • Global Trends: The global trend toward legalizing medical and recreational cannabis underscores the need for informed policymaking to mitigate risks, particularly for vulnerable populations such as children and individuals with mental illnesses.
    • Decriminalization Debate: Broader debates on decriminalization necessitate measures to prevent commercialization and ensure safeguards against misuse, emphasizing protection for vulnerable segments of society.

    Conclusion

    • Navigating the complexities of cannabis necessitates a balanced approach, leveraging its therapeutic potential while addressing associated risks through evidence-based policymaking and clinical interventions.

    Back2Basics: Narcotic Drugs and Psychotropic Substances Act, 1985

    • The NDPS Act is a comprehensive law that consolidates and amends the existing laws relating to narcotic drugs and psychotropic substances in India.
    • The Act prohibits the manufacture, cultivation, possession, sale, purchase, transport, storage, or consumption of drugs without permission from appropriate authorities.
    • Violations are punishable with rigorous imprisonment for a minimum of 10 years and a fine.
    • Lesser punishments are mandated for illegal possession in small quantities for personal consumption.
    • The Act also provides for the forfeiture of property derived from, or used in, illicit traffic in narcotic drugs and psychotropic substances.
    • Drugs covered include:
    1. Narcotic Drugs: Coca leaf, cannabis (hemp), opium, poppy straw, and their manufactured goods.
    2. Psychotropic Substances: Any substance that modifies the mind, including amphetamine, methaqualone, diazepam, alprazolam, ketamine, etc.
    3. Other substances: Cocaine, morphine, diacetylmorphine, or any other narcotic drug or any psychotropic substance as may be specified on this behalf by the Central Government.
  • On Irregularities in Vertical Devolution

    On Irregularities in Vertical Devolution

    Introduction

    • Recent agitations and concerns raised by state governments highlight critical issues in the practice of fiscal federalism in India.
    • Kerala and Karnataka governments, supported by others, have underscored the urgency for the 16th Finance Commission (FC) to address vertical and horizontal inequalities in devolution

    Also read:

    Explained: Financial Devolution among States

    Trends in Vertical Devolution

    • Shrinking Divisible Pool: Historically, the divisible pool consisted mainly of income taxes and excise duties shared with states. However, recent changes have seen the exclusion of certain taxes, like corporation taxes, from the divisible pool, reducing the share available for states.
    • Expansion of Cesses and Surcharges: Despite the GST implementation, new cesses and surcharges continue to be introduced, contributing to the exclusion of an increasing share of gross tax revenue from net proceeds, impacting vertical devolution.
    • Conflicting Data: Discrepancies in government-released information on the quantum of cesses and surcharges have raised concerns about transparency and accurate reporting, which are vital for assessing the true extent of vertical devolution challenges.

    Financial Implications

    • Collection Trends: Disaggregated data analysis reveals a significant rise in the collection of cesses and surcharges over the past decade, with amounts not shared with states but retained solely by the Union government, exacerbating the vertical devolution imbalance.
    • Cumulative Collection: Cumulatively, substantial amounts have been collected as cesses and surcharges, depriving states of their rightful share and necessitating corrective measures to address historical wrongs in vertical devolution.

    Challenges in Tied Transfers

    [A] Nature of Transfers:

    • Central Schemes: The requirement for state contributions to centrally sponsored schemes and central sector schemes places a financial burden on states, undermining their fiscal autonomy and perpetuating a patron-client relationship with the Union government.
    • Conditionalities: Grants provided to states often come with conditionalities, such as labelling requirements, further limiting states’ flexibility in utilizing funds according to their specific needs.
    • Loan Nature: Most capital transfers to states are in the form of loans, adding to states’ debt burdens and constraining their financial freedom.

    [B] Impact on Federal Dynamics:

    • Centralizing Tendency: Imposed conditionalities and the reliance on centrally sponsored schemes reinforce a centralizing tendency, eroding the principles of cooperative fiscal federalism and undermining states’ autonomy in fiscal matters.
    • Substitution of Untied Transfers: The substitution of untied transfers with centrally sponsored schemes introduces rigidity in Union-State relations, hindering effective collaboration and diluting the spirit of cooperative federalism envisioned in the Indian federal structure.

    Scrutiny by Comptroller and Auditor General (CAG)

    • Non-Transfer of Funds: Instances of non-transfer or short transfer of collected amounts, as highlighted by the Comptroller and Auditor General (CAG), raise concerns about the effective utilization of funds and the transparency of financial management practices.
    • Consequences:
      1. Defeat of Collection Logic: The failure to transfer cesses and surcharges to the designated reserve funds undermines the intended purpose of their collection, leading to inefficiencies and potential misappropriation of funds.
      2. Ruse for Fund Diversion: The discrepancies in fund transfers raise suspicions regarding the true intent behind cesses and surcharges, with indications that they may serve as a means to divert funds away from the divisible pool for other government expenditures.

    Deviations from Finance Commission (FC) Recommendations

    [A] Assessment of Union Government’s Claims:

    • Retention of Gross Tax Revenue: While the retention of a portion of gross tax revenue by the Union government has a basis in constitutional provisions, the failure to adhere to FC recommendations on sharing net proceeds raises questions about the government’s commitment to equitable fiscal federalism.
    • Failure in Net Proceeds Sharing: Analysis of the share of central taxes devolved to states against FC-stipulated percentages reveals consistent underperformance by the Union government, indicating a significant deviation from FC recommendations.

    [B] Quantitative Analysis:

    • Shortfalls: Comparisons of actual devolutions with FC-recommended shares highlight substantial shortfalls, amounting to significant cumulative amounts over the years, representing a systemic failure in achieving equitable distribution of resources among states.
    • Cumulative Impact: The cumulative amounts not devolved to states underscore the magnitude of the fiscal imbalance and the urgent need for corrective measures to rectify historical injustices in vertical devolution.

    Way Forward: Reform Agenda for the 16th Finance Commission

    [A] Corrective Measures

    • Compensations to States: Addressing historical wrongs in vertical devolution requires compensatory measures to ensure fair resource distribution among states and rectify past imbalances.
    • Accurate Reporting: Mandating accurate reporting of “net proceeds” in budget documents is essential for transparency and accountability in fiscal management, enabling stakeholders to assess the true extent of resource allocation.
    • Addressing Shortfalls: Providing lump sum untied grants to states to offset past shortfalls in devolution is crucial to restoring states’ fiscal autonomy and promoting cooperative federalism.

    [B] Legislative Action:

    • Limiting Cesses and Surcharges: Enacting legislation to impose strict limits on the collection of cesses and surcharges, with provisions for automatic expiry and prevention of rechristening, is necessary to prevent misuse and ensure transparency in revenue generation.

    Conclusion

    • The stance of the 16th Finance Commission on vertical devolution is pivotal for the survival of fiscal federalism in India, requiring decisive action to address existing challenges and uphold the principles of cooperative federalism.