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GS Paper: Government Scheme/Policies

  • Model Prisons Act 2023 to replace British-era Law

    prison

    Central Idea: The Ministry of Home Affairs (MHA) has prepared the ‘Model Prisons Act 2023’ to replace the outdated Prisons Act of 1894.

    Model Prisons Act, 2023

    • The focus of the new act is to reform and rehabilitate inmates and overhaul prison administration.
    • The Bureau of Police Research and Development (BPR&D), a think tank on policing subjects, was tasked with reviewing the laws and preparing a new draft.

    Salient Features of the Act

    • The model act includes provisions for the punishment of prisoners and jail staff for using prohibited items such as mobile phones in jails.
    • It establishes and manages high-security jails, open jails (open and semi-open), and provisions for protecting society from hardened criminals and habitual offenders.
    • The act provides legal aid to prisoners and includes provisions for parole, furlough, and premature release as incentives for good conduct.

    Need for a New Prisons Act

    • Outdated laws: The existing laws, including the Prisons Act of 1894, the Prisoners Act of 1900, and the Transfer of Prisoners Act of 1950, are outdated and need to be updated.
    • Better prison administration: The MHA found several gaps in the existing act and emphasized the need for a correctional focus in prison administration.
    • Prisoners’ rehab: The existing Prisons Act of 1894 lacks a focus on reform and rehabilitation of prisoners.
    • Use of technology: The act also incorporates the use of technology in prison management and emphasizes the physical and mental well-being of prisoners.

    Review and Integration of Existing Laws

    • Along with the Prisons Act of 1894, the Prisoners Act of 1900 and the Transfer of Prisoners Act of 1950 have also been reviewed by the MHA.
    • Relevant provisions from these acts have been assimilated into the Model Prisons Act 2023.
    • State governments and union territory administrations are encouraged to adopt the model act in their jurisdictions, with necessary modifications and the repeal of the existing three acts.

    Focus Areas of the Model Act

    • Segregation of prisoners: The act emphasizes security assessment and segregation of prisoners, individual sentence planning, and grievance redressal.
    • Prison development board: It proposes the establishment of a prison development board and aims to promote an attitudinal change towards prisoners.
    • Gendered division: The act provides for separate accommodation for women prisoners, transgender individuals, and other specific groups.
    • Technological push: It highlights the use of technology in prison administration, such as video-conferencing with courts and scientific and technological interventions.

    Key Lessons

    • Changing Perspective on Prisons: The statement acknowledges that globally, prisons are now seen as reformative and correctional institutions.
    • Retributive deterrence: Prisons are no longer considered solely as places of retributive deterrence but as institutions where prisoners can be transformed and rehabilitated as law-abiding citizens.

    Considerations for prison reforms in India

    • Overcrowding and Understaffing: Addressing the issue of prison overcrowding by exploring alternatives to incarceration for non-violent offenders, such as diversion programs and community-based sentencing.
    • Legal Aid and Access to Justice: Ensuring that prisoners have access to legal aid and representation to protect their rights and facilitate fair trials. Promoting awareness among inmates about their legal rights and avenues for seeking redress.
    • Prison Healthcare: Enhancing healthcare services within prisons, including mental health support and substance abuse treatment programs.
    • Women and Children in Prisons: Creating gender-responsive policies and separate accommodations for women prisoners, ensuring their safety, privacy, and access to reproductive health services.
    • Community Reintegration: Collaborating with community-based organizations, NGOs, and vocational training institutes to support the reintegration of released prisoners into society.
    • Technology and Digital Solutions: Leveraging technology to improve prison management, record-keeping, and communication systems.

    Conclusion

    • The Model Prisons Act, 2023 emphasizes rehabilitation and recognizes the potential of prisoners to become law-abiding citizens.
    • The act provides a framework for creating a more just and rehabilitative criminal justice system.
    • It focuses on the well-being of inmates and aims to ensure their successful reintegration into society.

     

    Also read:

    PM calls for Prison Reforms and Repeal of Obsolete Laws

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  • Digital Census and Self-enumeration through NPR Update

    Central Idea

    • The article discusses implementation of a digital Census and the option for citizens to self-enumerate through updating their National Population Register (NPR) details online.

    What is the news?

    • Census 2021, the first digital Census, will allow citizens to “self-enumerate” when it is conducted.
    • The government has not announced the date for the Census yet, and a notification from January 2, 2023, indicates that the exercise is postponed until at least September.

    What is National Population Register (NPR)?

    • The NPR is a register that records the usual residents of the country.
    • It is prepared at various levels, including local, sub-district, district, state, and national.
    • The creation of the NPR is governed by the provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity Cards) Rules, 2003.
    • It is mandatory for every usual resident of India to register in the NPR.
    • A usual resident is defined as a person who has resided in a local area for the past 6 months or more, or a person intending to reside for next 6 months or more.

    Differences between NPR and Census

    • The census involves a detailed questionnaire, collecting information such as age, sex, marital status, occupation, religion, and more.
    • The NPR collects basic demographic data and biometric particulars.
    • The census is governed by the Census Act, 1948, while the NPR operates under a set of rules framed under the Citizenship Act, 1955.

    Stipulated process for self-enumeration

    • Self-enumeration for the Census will be available only to households that have updated their NPR details online.
    • The Office of the Registrar General of India (ORGI), responsible for the Census, has developed a web-based “self-enumeration (SE)” portal, presently available in English.
    • The mobile-friendly portal, yet to be launched, will allow users to register their mobile numbers in the NPR database, self-enumerate, and fill in Houselisting Operations details.
    • During self-enumeration, the collection of Aadhaar or mobile numbers is mandatory.

    How are NPR and NRC related?

    • According to the Citizenship Rules 2003, the NPR is the initial step in compiling the National Register of Indian Citizens (NRIC/NRC).
    • The NPR was updated in 2015, but new questions were added as part of a trial exercise involving 30 lakh respondents in September 2019.
    • The exercise is seen as a step towards the compilation of the National Register of Indian Citizens (NRC) as per the Citizenship Rules, 2003.

    What about data confidentiality?

    • While similar data is collected through the Census, individual data remains confidential under Section 15 of the Census Act, 1948.
    • Only aggregated data is released at administrative levels.
    • Data collected under the NPR are shared with states and used by the Central government for various welfare schemes at the individual level.

    Way forward

    To ensure the success of the digital Census and self-enumeration process, the government should consider the following:

    • Conduct thorough awareness campaigns to educate citizens about the self-enumeration process and its benefits.
    • Provide multi-language support on the self-enumeration portal to accommodate diverse language preferences.
    • Address concerns regarding data privacy and security to build trust among citizens.
    • Establish a robust support system to assist citizens in case of technical issues or questions during self-enumeration.
    • Regularly update and improve the self-enumeration portal based on user feedback to enhance user experience and ease of use.

     

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  • 25 years of Kudumbashree Scheme

    kudumbashree

    Central Idea: President Droupadi Murmu inaugurated the silver jubilee celebrations of Kudumbashree.

    What is Kudumbashree?

    • Kudumbashree is a poverty eradication and women empowerment program implemented by the State Poverty Eradication Mission (SPEM) in Kerala, India.
    • The program was established in 1997 based on recommendations from a task force appointed by the state government.
    • It was created in the context of devolving powers to the Panchayat Raj Institutions (PRIs) and the People’s Plan Campaign in Kerala.
    • Membership in Kudumbashree is open to all adult women, with one membership allowed per family.
    • In 2011, the Centre recognized Kudumbashree as the State Rural Livelihoods Mission (SRLM) under the National Rural Livelihoods Mission (NRLM).

    Working mechanism

    • Kudumbashree operates through a three-tier structure:
    1. Neighbourhood Groups (NHGs),
    2. Area Development Societies (ADS), and
    3. Community Development Societies (CDS).
    • The community network was gradually expanded to cover the entire state between 2000 and 2002.

    Evolution and Contributions of Kudumbashree

    • Kudumbashree has transformed significantly over the past 25 years.
    • During the Kerala flood, Kudumbashree donated a substantial amount to the Chief Minister’s relief fund, surpassing contributions from tech giants and foundations.
    • The organization was initially conceptualized as an all-women poverty alleviation program.
    • Despite being flood victims themselves, Kudumbashree members showed resilience and contributed generously to help others.

    Role during the COVID-19 Pandemic

    • Kudumbashree played a crucial role in responding to the challenges of the COVID-19 pandemic.
    • They manufactured and distributed masks and sanitisers.
    • The organization set up COVID treatment centres and worked as the nodal agency for COVID management in several local bodies.
    • ‘Janakeeya Hotels’ provided affordable meals to those in need, including those in home quarantine.

    Empowerment and Social Impact

    • Kudumbashree has empowered women and facilitated grassroots planning for employment generation, poverty alleviation, and women’s empowerment.
    • It mobilized women for community activities and increased their participation in local bodies.
    • Kudumbashree’s initiatives include micro-enterprises, agricultural projects, rural development, and compassion programs.
    • The organization has made significant strides in empowering Dalit and tribal women.

    Challenges and Future Directions

    • Critics highlight the need for Kudumbashree to evolve gender perspectives and alternative development models.
    • Despite criticism, Kudumbashree’s contribution to poverty reduction is unparalleled.
    • The organization aims to address gender-based crimes and eliminate social evils.
    • Mental and cultural empowerment are deemed crucial for overcoming the ‘gender paradox’ in Kerala.

    Conclusion

    • Kudumbashree success in reducing poverty is widely recognized.
    • Continued efforts are needed to combat gender-based crimes and challenges.
    • Kudumbashree aims to be a force for positive societal change and women’s empowerment.

     

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  • India’s Pension Reforms: Ensuring Pension Security

    Pension

    Central Idea

    • The issue of government employees’ pension has emerged as a critical political concern, leading several states to consider reverting from the New Pension Scheme (NPS) to the defined-benefit (DB) Old Pension Scheme (OPS). Acknowledging the significance of this matter, the Government of India has established a committee to enhance the NPS.

    What is pension?

    • A pension is a retirement plan that provides a stream of income to individuals after they retire from their job or profession. It can be funded by employers, government agencies, or unions and is designed to ensure a steady income during retirement.

    What is Old Pension Scheme (OPS)?

    • The OPS, also known as the Defined Benefit Pension System, is a pension plan provided by the government for its employees in India.
    • Under the OPS, retired government employees receive a fixed monthly pension based on their last drawn salary and years of service.
    • This pension is funded by the government and paid out of its current revenues, leading to increased pension liabilities.

    What is NPS?

    • NPS is a market-linked, defined contribution pension system introduced in India in 2004 as a replacement for the Old Pension Scheme (OPS).
    • NPS is designed to provide retirement income to all Indian citizens, including government employees, private sector workers, and self-employed individuals

    Pension

    Facts for prelims: Key differences between the two pension schemes

    Parameters The Old Pension Scheme(OPS) The New Pension Scheme (NPS)
    Nature of the schemes OPS offer pensions to government employees on the basis of their last drawn salary NPS pays the employees for their investments in the NPS Scheme during their employment.
    Amount of pension derived 50 per cent of the last drawn salary 60% lump sum after retirement and 40% to be invested in annuities for getting a monthly pension
    Benefits in taxes No tax benefits The employee can claim tax deductions of 1.5 lakh under Section 80C of income tax and up to 50,000 on other investments under 80CCD (1b)
    Tax on pension No tax on pension 60% of the NPS Corpus is tax-free while the remaining 40% is taxable
    Option of Investment No option Two choices: Active and Automatic
    Who can avail? Only government employees Any Indian Citizen between 18-65 years.
    Switching Schemes OPS scheme can be switched to NPS NPS scheme cannot be switched back to OPS in general, but central government employees can switch back to OPS  in case of death and disablement of the employee.

    Reasons behind the growing demand for reverting to OPS

    • Stability and Predictability: One of the primary motivations for the demand to return to OPS is the desire for stability and predictability in pension benefits. Under the OPS, employees receive a fixed pension based on their last drawn salary, which is increased periodically to account for inflation. This offers a sense of security and certainty about post-retirement income, ensuring a stable financial future.
    • Market Risk and Annuity Payouts: The NPS, being a market-linked pension scheme, exposes pensioners to market risks. The returns on the pension fund are subject to market fluctuations, which can impact the overall corpus and subsequently affect annuity payouts. This volatility raises concerns among employees who seek a more secure and reliable pension arrangement.
    • Lower Annuity Prospects: With the NPS, pensioners bear the market risk and face the possibility of lower-than-expected annuity amounts. This uncertainty about future pension prospects prompts many employees to advocate for a return to OPS, which offers a predetermined pension amount.
    • Comparisons with Other Pension Systems: Employees often compare the OPS with pension systems in other countries, particularly those in the Organisation for Economic Co-operation and Development (OECD) economies. These comparisons reveal that OPS provides higher pension replacement rates, lower retirement ages, and covers the entire family. Such favorable aspects of OPS generate a perception of better benefits and incentivize employees to demand its reinstatement.
    • Perception of Unsustainability: While the NPS was introduced to address fiscal strains associated with the unfunded OPS, there are concerns about its long-term sustainability. Some argue that OPS can be sustained through effective fiscal management and reform, rather than completely abandoning it. The perception of unsustainability drives the demand for reverting to OPS as a viable alternative.

    Challenges involved in reverting back to OPS

    • Fiscal Sustainability: The OPS operates on a pay-as-you-go (PAYG) system, where present workers finance the retired. With declining birth rates and increased life expectancy, the burden on the future workforce to fund pensions will intensify. The OPS, being an unfunded scheme, poses challenges in maintaining fiscal sustainability in the long run.
    • Demographic Shifts: The dependency ratio is expected to increase substantially, with fewer workers supporting a larger number of retirees. This demographic shift adds to the challenges of sustaining the OPS, as it puts additional strain on the funding mechanism and the ability to meet pension obligations.
    • Inflationary Pressures: The OPS guarantees periodic increases in pension payouts through dearness allowance (DA) adjustments to account for inflation. However, relying on fixed increments tied to DA can pose challenges during periods of high inflation. Ensuring that pension payments keep pace with inflation without compromising fiscal stability can be a complex task for policymakers.
    • Budgetary Constraints: The financial burden of reverting to OPS can put a significant strain on the government’s budget. Pension liabilities already account for a substantial portion of states’ revenue receipts and own revenues. Increasing pension obligations may lead to a reduction in development expenditure or necessitate additional borrowing, potentially exacerbating the issue of public debt.
    • Inter-generational Equity: Maintaining inter-generational equity is a crucial consideration in pension reforms. Reverting to OPS might fulfill the aspirations of current employees, but it can impose a heavy burden on future generations. Striking a balance between providing reasonable pension security for present employees and ensuring the sustainability of the pension system for future generations is a key challenge that needs to be addressed.
    • Economic Factors: The economic environment, including interest rates and investment returns, can impact the financial viability of OPS. Changes in economic conditions, such as low interest rates or inadequate returns on pension fund investments, can strain the financial resources needed to sustain OPS and meet pension obligations.

    Pension

    Way ahead: Building sustainable and inclusive pension systems

    • Comprehensive Reform: Governments should undertake comprehensive reforms which may involve revisiting the pension architecture, introducing alternative pension models, and exploring hybrid schemes that combine elements of defined-benefit and defined-contribution systems. Reforms should be guided by a thorough analysis of demographic trends, fiscal constraints, and economic conditions.
    • Adequate Funding Mechanisms: Pension systems must establish robust funding mechanisms to ensure that pension obligations can be met. This may involve setting up dedicated pension funds, implementing sound investment strategies, and establishing appropriate contribution rates for both employees and employers.
    • Strengthening Pension Governance: Effective governance is crucial for the success of pension systems. Governments should strengthen the regulatory framework, improve transparency, and enhance accountability in the management of pension funds. Establishing independent oversight bodies and adopting international best practices can help ensure the integrity and efficiency of pension governance.
    • Promoting Financial Literacy: Financial literacy programs should be implemented to educate individuals about the importance of retirement planning, investment strategies, and the risks and benefits associated with different pension options. Empowering individuals with financial knowledge will enable them to make informed decisions and take an active role in securing their retirement income.
    • Encouraging Voluntary Savings: Governments should encourage voluntary retirement savings programs to complement the mandatory pension schemes. Providing incentives, such as tax benefits or matching contributions, can incentivize individuals to save for retirement beyond the mandatory contributions. Voluntary savings options, such as individual retirement accounts or employer-sponsored plans, can offer individuals greater flexibility and control over their retirement savings.
    • Flexibility and Portability: Pension systems should adapt to the changing nature of work and support individuals with diverse employment patterns. Portable pension accounts that allow individuals to carry their accumulated benefits across jobs can ensure continuity of retirement savings. Flexibility in pension payout options, such as lump sum withdrawals or phased withdrawals, can accommodate different financial needs and preferences of retirees.
    • Social Safety Nets: To address the needs of vulnerable populations, social safety nets should be incorporated into pension systems. These safety nets can provide minimum income guarantees or targeted assistance for individuals with limited or interrupted work histories, low-income earners, and those facing economic hardships in retirement.

    Conclusion

    • Amidst the debate between NPS and OPS, it is crucial to devise a pension system that ensures security without compromising fiscal sustainability and inter-generational equity.

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    Must read:

    Contributory Guaranteed Pension Scheme (CGPS): A Considerable Alternative

     

  • Gaps in Aadhaar-enabled Payment System (AePS) abused by Cybercriminals

    aadhaar

    Central Idea

    • Scammers are using silicone thumbs to operate biometric POS devices and ATMs, draining users’ bank accounts.
    • Incidents of Aadhaar-linked fingerprint misuse and unauthorized withdrawals have been reported.

    What is AePS?

    Details
    What is it? Enables online financial transactions using Aadhaar authentication, eliminating the need for OTPs and other details.
    Supported transactions Cash deposit, withdrawal, balance inquiry, and fund transfer can be done with just the bank name, Aadhaar number, and fingerprint.
    Default activation AePS may be enabled by default for most bank account holders when Aadhaar is linked to their account.
    Mandatory linking for benefits and subsidies Users seeking benefits or subsidies under Aadhaar Act schemes must link their Aadhaar number with their bank account.

    Issues AePS

    • Data breaches: These have been reported, although UIDAI denies breaching Aadhaar data.
    • Information Leak: Criminals can obtain Aadhaar numbers from photocopies and soft copies, using Aadhaar-enabled payment systems to breach user information.

    Securing Aadhaar

    • Regulation: UIDAI proposes regulations to prevent sharing of Aadhaar details without redaction.
    • New two-factor authentication: This combines finger minutiae and image capture for fingerprint liveness.
    • Locking Aadhaar Online: Aadhaar can be locked using the UIDAI website or the myAadhaar app. Locking generates a 16-digit VID code needed for unlocking.
    • Zero Liability: Customers’ entitlement to zero liability arises if unauthorized transactions are reported to the bank within three working days.

    Way forward

    • Immediately lock Aadhaar biometric information if suspicious activity occurs.
    • Inform banks and authorities promptly to initiate necessary actions.
    • Timely reporting ensures the possibility of returning money transferred fraudulently.
    • Regularly check bank accounts for any suspicious activity and inform the banking institution promptly.

     

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  • [pib] Meri LiFE Mera Swachh Shehar Campaign launched

    life

    Central Idea: The Union Ministry for Housing and Urban Affairs has launched the ‘Meri LiFE, Mera Swachh Shehar’ campaign.

    Meri LiFE Mera Swachh Shehar

    • The campaign focuses on waste management and promotes the principles of Reduce, Reuse, and Recycle (RRR).
    • It aims to create awareness and encourage individuals to adopt sustainable daily habits for environmental protection.
    • The campaign strengthens citizens’ commitment to reducing, reusing, and recycling under Swachh Bharat Mission-Urban 2.0.
    • It aligns with Mission LiFE’s objective of adopting sustainable daily habits for environmental conservation.

    Objectives of the Campaign

    • The campaign involves setting up RRR Centres where citizens can contribute items such as clothes, shoes, books, toys, and plastic for reuse or recycling.
    • The collected items will be refurbished or transformed into new products, aligning with the vision of a circular economy.
    • The RRR approach empowers craftsmen, recyclers, Self Help Groups, entrepreneurs, and startups to convert waste into various products.

    Key initiatives: RRR Centres and Circular Economy

    • The RRR Centres to be launched nationwide will serve as one-stop collection centers for various unused or used items.
    • Citizens, institutions, and commercial enterprises can deposit plastic items, clothes, shoes, books, and toys at these centers.
    • The collected items will be refurbished for reuse or transformed into new products, promoting the government’s vision of a circular economy.

    Back2Basics: Lifestyle for the Environment (LiFE)

    • The LiFE movement was introduced by India during the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow in 2021.
    • It aims to promote an environmentally conscious lifestyle that emphasizes mindful and deliberate utilization rather than mindless and wasteful consumption.
    • The movement seeks to replace the prevailing “use-and-dispose” economy with a circular economy characterized by conscious and deliberate consumption.
    • The objective of the LiFE Movement is to leverage the power of social networks to influence social norms related to climate change.
    • It plans to create and nurture a global network of individuals known as ‘Pro-Planet People’ (P3) who are committed to adopting and promoting environmentally friendly lifestyles.
    • Through the P3 community, the mission aims to establish an ecosystem that supports and sustains environmentally friendly behaviours.

     

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  • Declining Allocations for Welfare Schemes: Neglecting India’s Social Fabric

    Central Idea

    • The Union Budget of the current year has faced widespread criticism for its dwindling allocations towards welfare schemes, undermining the importance of social spending in the post-COVID-19 recovery phase. Over the years, central allocations for welfare schemes and sectors ensuring basic rights have steadily decreased as a proportion of GDP. This alarming trend raises concerns about the government’s commitment to addressing crucial issues such as child malnutrition, hunger, and education.

    Key Welfare Programs

    • Saksham Anganwadi and Poshan 2.0: These programs aim to address child malnutrition and hunger. Starting from 2021-22, the Anganwadi program (Integrated Child Development Services – ICDS) was merged with POSHAN Abhiyaan and a nutrition scheme for adolescent girls.
    • Mid-Day Meal (MDM) Scheme: The MDM scheme provides nutritious meals to approximately 12 crore children in schools. The program has shown positive outcomes, including improved attendance, learning outcomes, and reduced stunting among children.
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): MGNREGA guarantees 100 days of employment per rural household and plays a vital role in providing income support to rural households.
    • National Food Security Act (NFSA): NFSA aims to provide subsidized grains to over 80 crore people, ensuring food security.
    • National Social Assistance Programme (NSAP): NSAP provides pensions and monetary assistance to vulnerable sections such as the elderly, widows, and disabled individuals below the poverty line.
    • PM Matru Vandana Yojana (PMMVY): The scheme provides conditional cash transfers to women in the unorganized sector, aiming to cover all eligible women and births as per the NFSA mandate

    Concerns regarding their resource allocations

    • Saksham Anganwadi and Poshan 2.0: The allocation for these programs has decreased from 0.13% of GDP in 2014-15 to 0.07% in 2023-24. This decline in budgetary support raises concerns about the programs’ ability to effectively address child malnutrition and hunger.
    • MDM Scheme: The budget allocation for the MDM scheme has decreased by 50% as a share of GDP, from 0.08% in 2014-15 to 0.04% in 2023-24. This reduced allocation poses challenges in providing nutritious meals to children and improving their overall health outcomes.
    • MGNREGA: The MGNREGA expenditure as a share of GDP has declined from 0.26% in 2014-15 to 0.20% in 2023-24. This decrease in allocation raises concerns about the program’s ability to provide sufficient employment opportunities to rural households.
    • National Food Security Act : The expenditure on NFSA as a share of GDP has decreased from 0.94% in 2014-15 to 0.65% in 2023-24. This reduction in allocation poses challenges in ensuring food security for a significant population.
    • National Social Assistance Programme (NSAP): The allocation for NSAP as a share of GDP has declined from 0.06% in 2014-15 to 0.03% in 2023-24. This decrease raises concerns about the adequacy of pensions and monetary assistance provided to vulnerable sections.
    • PM Matru Vandana Yojana: The PMMVY budget falls significantly short of the required amount, hindering its effectiveness in providing adequate maternity benefits.

    Why these is distress among the working class?

    • Low Wages and Income Inequality: Many workers, particularly those in the informal sector, earn low wages that are insufficient to meet their basic needs. Income inequality further exacerbates the disparity between the wages of the working class and the higher-income groups, leading to financial distress.
    • Lack of Job Security: Many working-class individuals, especially those in the informal economy, face precarious employment conditions without job security or benefits. Uncertainty regarding employment continuity, lack of social protection, and limited access to formal labor rights contribute to their distress.
    • Limited Access to Social Protection: A significant portion of the working-class lacks access to adequate social protection mechanisms, such as health insurance, pension schemes, and unemployment benefits. This leaves them vulnerable to economic shocks and reduces their resilience in times of crises.
    • Declining Real Wages: Despite economic growth, the growth in real wages has not kept pace, resulting in stagnation or minimal growth in purchasing power for many workers. This phenomenon limits their ability to improve their living standards and contributes to distress.
    • Exploitative Working Conditions: The working class often faces exploitative working conditions, including long working hours, unsafe work environments, lack of breaks, and limited rights to collective bargaining. These conditions can negatively impact physical and mental well-being, contributing to distress.
    • Lack of Skill Development and Upward Mobility: Limited opportunities for skill development and upward mobility can trap workers in low-wage jobs with limited prospects for advancement. This lack of upward mobility can lead to frustration and distress among the working class.
    • Inadequate Social Services: Insufficient access to quality healthcare, education, and affordable housing places an additional burden on the working class. The lack of affordable and accessible services exacerbates their financial stress and limits their ability to meet essential needs.

    Way Ahead

    • Prioritize Social Spending: The government should prioritize social spending, especially in the post-COVID-19 recovery period, to ensure adequate resources for welfare schemes. Allocating sufficient funds to programs addressing child nutrition, working class welfare, social assistance, and education is essential to uplift vulnerable sections of society.
    • Increase Budget Allocations: The budget allocations for child nutrition and hunger programs, such as Saksham Anganwadi and Poshan 2.0, and the mid-day meal scheme need to be increased to effectively tackle malnutrition and improve children’s health outcomes. Adequate funding will ensure the successful implementation and expansion of these programs.
    • Strengthen MGNREGA and NFSA: Recognizing the importance of MGNREGA and NFSA in providing rural employment and food subsidies, the government should prioritize and enhance the budget allocations for these schemes. This will support the livelihoods of the rural population and alleviate poverty and distress.
    • Focus on Wage Growth: To address the distress among the working class, there should be a focus on policies that promote wage growth. This can be achieved through skill development programs, labor reforms, and measures to improve the employment ecosystem, ensuring better wages and improved livelihoods.
    • Enhance Social Security Programs: The government should consider increasing allocations for social security programs, such as the National Social Assistance Programme (NSAP), to provide adequate support to the elderly, widows, and disabled individuals. Raising the pension amounts and expanding the coverage will help alleviate financial hardships among vulnerable sections of society.
    • Allocate Sufficient Funds for Education and Healthcare: Given the importance of education and healthcare, the government should allocate adequate funds for school education and healthcare infrastructure. This will help improve access to quality education, reduce dropout rates, and ensure affordable and accessible healthcare for all.
    • Improve HDI and Social Indicators: To uplift India’s Human Development Index (HDI) rank and address rising malnutrition levels, it is crucial to increase social expenditure in proportion to the country’s GDP growth. This can be achieved by redirecting revenue foregone due to tax concessions and adopting efficient fiscal management practices.
    • Strengthen Monitoring and Evaluation: Effective monitoring and evaluation mechanisms should be put in place to ensure that allocated funds are utilized efficiently and reach the intended beneficiaries. Regular assessment of the impact and outcomes of welfare schemes will help identify areas of improvement and enable evidence-based policy decisions.

    Facts for prelims

    Prevalence of Iron deficiency anemia in India

    • Iron deficiency anemia is a significant public health concern in India. According to the National Family Health Survey (NFHS-5) conducted in 2019-2020, the prevalence of anemia among women aged 15-49 years is 53%, while among children aged 6-59 months, it is 41%.
    • Iron deficiency anemia affects both rural and urban populations, with higher rates observed in certain regions and vulnerable groups such as pregnant women and young children.

    What is Iron deficiency anemia?

    • It is a common type of anemia that occurs when there is a lack of iron in the body. Iron is an essential mineral needed for the production of hemoglobin, a protein in red blood cells that carries oxygen to tissues throughout the body.
    • When iron levels are insufficient, the body is unable to produce enough healthy red blood cells, leading to a decrease in oxygen-carrying capacity and resulting in symptoms such as fatigue, weakness, pale skin, shortness of breath, and difficulty concentrating.
    • Iron deficiency anemia can be caused by inadequate dietary intake of iron, poor iron absorption, chronic blood loss, or certain medical conditions.

    Conclusion

    • The decline in allocations for welfare schemes in the Union Budget raises concerns about the government’s commitment to social development, impacting crucial areas such as child nutrition, working-class welfare, and access to education and healthcare. To foster inclusive growth, there is an urgent need to prioritize social expenditure, increase budget allocations, and address the pressing issues facing vulnerable sections of society.

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    Also read:

    A reality check on Nutrition programs

     

  • Indian Sludge Shows High Fertilizer Potential: First Study Reveals

    Central Idea: The article discusses the results of an analysis of the sludge found in Indian sewage treatment plants (STP) that were set up to treat polluted water from the Ganga under National Mission for Clean Ganga.

    About National Mission for Clean Ganga

    Description
    Launch 2014
    Aim Cleaning and rejuvenating the Ganga river
    Interventions Development of sewage treatment infrastructure, riverfront development, and public awareness campaigns
    Approach River basin approach, identifying pollution hotspots and implementing targeted interventions
    Implementing Agency NMCG
    Responsibilities Coordinating efforts across stakeholders, including state governments, municipalities, and civil society organizations
    Objective Improve water quality and ensure ecological and socio-economic sustainability of the Ganga river

     

    Sludge classification

    • India doesn’t yet have standards classifying sludge as class A or B.
    • Treated sludge can be classified as class A or class B, as per the standards of the United States Environment Protection Agency.
    1. Class A sludge: It is safe to be disposed of in the open and useful as organic fertilizer.
    2. Class B sludge: It can be used in restricted agricultural applications, with the edible parts of the crop not exposed to the sludge-mixed soil, and animals and people not come into extensive contact.

    Current sludge disposal practices

    • Currently, those awarded contracts for developing and maintaining STPs under the Namami Ganga Mission are also apportioned land for disposing off sludge.
    • However, the sludge is rarely treated, and during rains, it often makes its way back into rivers and local water sources.

    Study’s findings

    • The sludge analysed after drying fell into the class B category.
    • Nitrogen and phosphorus levels were higher than those recommended by India’s fertilizer standards, but potassium levels of some sludges were less than recommended.
    • The degree of pathogens, as well as heavy metal contamination, was above the recommended fertilizer standards.
    • The calorific value of sludge ranged from 1,000-3,500 kcal/kg, which is lower than the average calorific value of Indian coal.

    Recommendations to improve sludge quality

    • The report recommends storing the sludge for at least three months to kill pathogens and blending it with cattle manure and husk or local soil to reduce heavy metal.
    • However, this would still put it in class B, and converting it into grade A sludge would require far more extensive treatment.

     

     

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  • Contributory Guaranteed Pension Scheme (CGPS): A Considerable Alternative

    Scheme

    Central Idea

    • The debate on pensions is heating up as several state governments announce their reversion to the old pension scheme (OPS). However, economists have frowned upon this move, citing two major reasons. Firstly, since the state has to bear the full burden of pensions, it may become fiscally unsustainable in the long run. Secondly, an unsustainable rise in pension allocation in the budget can come at the cost of other welfare expenditures allocated to the poor and marginalized sections.

    What is mean by pension?

    • A pension is a retirement plan that provides a stream of income to individuals after they retire from their job or profession. It can be funded by employers, government agencies, or unions and is designed to ensure a steady income during retirement.

    What is Old Pension Scheme (OPS)?

    • The OPS, also known as the Defined Benefit Pension System, is a pension plan provided by the government for its employees in India.
    • Under the OPS, retired government employees receive a fixed monthly pension based on their last drawn salary and years of service.
    • This pension is funded by the government and paid out of its current revenues, leading to increased pension liabilities.

    Scheme

    What is the National Pension System (NPS)?

    • The Union government under PM Vajpayee took a decision in 2003 to discontinue the old pension scheme and introduced the NPS.
    • The scheme is applicable to all new recruits joining the Central Government service (except armed forces) from April 1, 2004.
    • On the introduction of NPS, the Central Civil Services (Pension) Rules, 1972 was amended.

    What are two arguments against reverting to the old pension scheme?

    • Fiscal Unsustainability: Since the State has to bear the full burden of pensions, it will become fiscally unsustainable in the medium to long run.
    • Trade-Off with Welfare Expenditure: Such an unsustainable rise in pension allocation in the Budget can only come at the cost of other more pressing welfare expenditures allocated to the poor and marginalized sections.

    The commonality between the two arguments

    • Both arguments assume that the fiscal revenues are fixed, which is not necessarily the case if the government has its priorities right.
    • Both arguments assume that unsustainable rise in pension allocation in the Budget can only come at the cost of other more pressing welfare expenditures allocated to the poor and marginalized sections.

    Scheme

    Why Public sector workers are asking for a guaranteed pension in place of the NPS?

    • Fluctuating pension returns: The NPS is market-based, which means that the pension returns fluctuate according to the returns prevailing in the market. This creates uncertainty and makes it difficult for employees to plan for their post-retirement life.
    • Guaranteed pension: Public sector workers are looking for a guaranteed pension that will provide them with a fixed amount after retirement. This will ensure a stable and predictable post-retirement life for them.
    • Employee contribution: In the new contributory guaranteed pension scheme (CGPS), a large part of the pension will be funded by the employees themselves. This is in contrast to the old pension scheme (OPS) where no contribution was required from the employees.
    • Protection against market fluctuations: The CGPS provides protection to employees against market fluctuations. If the market return happens to be higher than the guaranteed pension, the State gets to pocket the difference. On balance, the additional burden on the CGPS may be marginal compared to the NPS.
    • Burden-sharing: The CGPS ensures that the burden of uncertainty does not fall on employees alone. In the OPS, elite workers gain at the cost of their brethren lower on the income ladder. However, in the CGPS, the burden is only the employer’s contribution part, exactly as in the NPS.

    Potential disadvantages of a CGPS

    • Higher contribution burden on employees: Under the CGPS, employees will continue to contribute a fixed percentage of their basic pay towards their pension. This may put a higher burden on them compared to the current system, where their contribution fluctuates based on market returns.
    • Additional administrative burden: Implementing a new pension scheme like CGPS may involve additional administrative burden and costs for the government, which could be challenging to manage efficiently.
    • Uncertainty of market returns: While the CGPS guarantees a fixed pension amount, it does not provide any certainty on the market returns. If the market returns are lower than expected, the government will have to bear the burden of paying the difference between the guaranteed pension and the actual pension.

    Facts for prelims: CGPS vs NPS

    Parameter Contributory Guaranteed Pension Scheme (CGPS) National Pension scheme (NPS)
    Type of Scheme Guaranteed Pension Scheme Market-linked Pension Scheme
    Contributions Made by both employee and employer Made by the employee only
    Pension Amount Guaranteed 50% of the last drawn salary, adjusted for inflation Market-linked, varies according to returns
    Risk Risk is shared by both employee and employer Risk is borne entirely by the employee
    Burden on exchequer Burden is only on the employer’s contribution part Burden is on the entire pension amount
    Upside State gets to pocket the excess if the market return is higher No upside for the State
    Fiscal sustainability Can be sustainable with proper rationalisation of taxes Unsustainable in the medium to long run

    Way ahead

    • The government could consider implementing the Contributory Guaranteed Pension Scheme (CGPS) as an alternative to the New Pension Scheme (NPS) for public sector workers.
    • The CGPS would allow the state to pocket any excess returns from the market, rather than bearing the entire burden of uncertain market returns as in the NPS.
    • The government should consider rationalizing taxes, such as implementing inheritance and wealth taxes, to increase its revenue and reduce its dependence on fixed fiscal revenues.
    • The government should set up a special task force to rationalize pensions and address the issue of pension sustainability in the long run.
    • A possible downside to the CGPS is that it may require a higher contribution from employees, which could affect their take-home pay during their working life. However, this could be addressed by offering tax breaks or other incentives to encourage employees to contribute to the scheme.

    Conclusion

    • The current debate on pensions in India has brought forth the need for a well-designed and sustainable pension scheme that can cater to the needs of public sector workers while being fiscally responsible. The CGPS presents a viable alternative to the OPS and the NPS providing public sector workers with a guaranteed pension after they retire while also being largely funded by the employees themselves. While there may be some challenges in implementing the CGPS, with proper planning and execution, the CGPS could serve as a model for sustainable and equitable pension schemes that can support the growing needs of an ageing workforce in India.

    Mains question

    Q. The debate on pensions is heating up as several state governments announce their reversion to the old pension scheme. Do you think Contributory Guaranteed Pension Scheme (CGPS) presents a viable alternative to the OPS and the NPS?

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    Also read:

    Reversal To Old Pension Scheme (OPS): Potential Impact

  • Top-notch Aspirational Toilets to usher in change

    toilet

    The Ministry of Housing and Urban Affairs has issued a directive to all state governments to ensure that 25% of public toilet seats added in any city or urban unit are “aspirational toilets.”

    What are Aspirational Toilets?

    • The aspirational toilets scheme was launched in September 2022 as part of the Swachh Bharat Mission (SBM) 2.0, with an aim to help make cities open defecation free.
    • A quarter of all new public restrooms in Indian cities will soon have high-end features such as luxurious bath cubicles, touchless flushing, breast-feeding rooms, and automatic sanitary napkin incinerators.
    • These will be indicated as “aspirational toilets” on Google Maps.

    Focus areas for constructing aspirational toilets

    • The focus areas for constructing these luxury toilets will be tourist and religious destinations, as well as iconic cities.
    • High-footfall locations such as markets, railway stations, inter-state bus depots, and national highways will be given priority.
    • Guidelines have been issued to the states for constructing these toilets. It also includes low-height toilets and basins for children.
    • Hand-dryers, paper napkins, and vending machines for sanitary napkins are proposed to be made available.

    Maintenance and funding patterns

    • One of the business models being explored for the maintenance of these toilets is attaching them with other public services such as restaurants, shopping malls, libraries, cinema halls, or even medicine shops, to make them self-sustaining.
    • Experts have cautioned that a proper study must be done on the location and the way these toilets will be maintained before beginning any such project.

    Back2Basics: Swachh Bharat Mission (Urban) 2.0

    Description
    Objective Make all cities in India “garbage-free”
    Period 5 years (1st Oct 2021 – 1st Oct 2026)
    Focus Sustainable solid waste management, sustainable sanitation and treatment of used water, and promoting behavior change through citizen outreach
    Segregation of waste All households and premises required to segregate their waste into “wet waste” and “dry waste”
    Collection of waste Aims to achieve 100% door-to-door collection of segregated waste from each household/premise
    Waste management Aims to achieve 100% scientific management of all fractions of waste, including safe disposal in scientific landfills, remediation of all legacy dumpsites, and the conversion of these sites into green zones
    Sanitation Aims to promote holistic sanitation, with end-to-end solutions, treatment of used water before discharge into water bodies, and maximum reuse of treated used water
    Citizen outreach Aims to create awareness and institutionalize “Swachh” behavior through large-scale citizen outreach
    Institutional capacity Aims to create institutional capacity to effectively implement programmatic interventions to achieve mission objectives