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  • Fifteenth Finance Commission has increased proportion of grants conditional on reforms

    The article highlights the crucial recommendations made by the 15th Finance Commission and also explains the importance of conditions for grants from the Centre to push the state for reforms.

    Crucial recommendations by 15th Finance Commission

    • The Fifteenth Finance Commission’s report for the period 2021-22 to 2025-26 outlines some crucial recommendations for state governments.
    • These recommendations cover tax devolution, grants from the Centre, and the guidelines for the borrowings that they are permitted to incur over the medium-term.
    • The commission has recommended that 41 per cent of the government’s divisible pool of taxes be transferred to state governments.

    Horizontal devolution formula

    • The horizontal devolution formula specifies each state’s share in the overall pie.
    • The 15th FC was required to use the states’ population as per the 2011 Census — a highly contentious change.
    • It has also introduced a demographic performance criterion.
    • Additionally, it has also introduced a new criterion –tax effort.
    • Tax effort is measured by the ratio of the three-year average of per-capita own tax revenues and per-capita gross state domestic product (GSDP).
    • The net result of the change in criteria is that the share of 10 states in the divisible pool has declined.
    • Karnataka is the biggest loser, while Maharashtra is the biggest gainer.

    Grants from the Centre conditioned on reforms in states

    • Another major set of the commission’s recommendations pertain to grants from the Centre.
    • In a major shift, the 15th FC has sharply increased the proportion of grants whose receipt is conditional on specified reforms being undertaken.
    • 57 per cent of the 15th FC-recommended grants accepted so far by the GoI are conditional, relative to just 17 per cent for the 14th FC (including J&K).

    What are the conditions

    1) Setting up of State Finance Commission (SFC) and applicability of SFC’s recommendations for 5 years only

    • Constitution requires state governments to set up State Finance Commissions (SFC).
    • The 15th FC has asserted that the mandate of any given SFC is intended to be applicable only for five years.
    • It revealed that only 15 states have set up their fifth or sixth SFCs, whereas several states have not moved beyond their second or third SFC.
    • Accordingly, a staggering 84 per cent of the Rs 4.4 trillion grants for local bodies recommended by the 15th FC are conditional on the states setting up SFCs for the coming five-year period, and acting on their recommendations by March 2024.

    2) Availability of online accounts

    • Another entry-level condition for availing grants by rural and urban local bodies pertains to the timely availability of their accounts online from 2021-22 onwards.

    3) Notiflying floor rate for property tax

    • For the receipt of grants by the urban bodies, states are required to notify a floor rate for property tax by 2021-22, and demonstrate consistent year-wise improvement from 2022-23 onwards.
    • This will complement the conditions set previously by SEBI for ULBs to become eligible to raise municipal bonds.

    Changes in limit on net borrowings of state governments

    • The commission has recommended that the normal limit for net borrowings of state governments be fixed at 4 per cent of GSDP in 2021-22.
    • This will ease to 3.5 per cent by 2022-23, thereafter reverting to the erstwhile 3 per cent limit till 2025-26.
    • The additional borrowing space of 0.5 per cent of GSDP for states is conditional on the completion of power sector reforms.

    Prospect of huge gaps in states’ revenue in the future

    • The states’ fiscal arithmetic will alter in 2022-23 with the GST compensation set to cease at the end of June 2022 as things stand today.
    • The ensuing drop in grants, combined with the tapering of the front-loaded revenue deficit grants is likely to leave a big gap in some states’ revenues.

    Consider the question “What are the conditions laid down by the 15th Finance Commission on the states for the central grants? How these conditions could benefit the states?”

    Conclusion

    The question is whether this revenue gaps will force the states to move on both the power sector reforms, which have proven challenging in the past, and the municipal reforms, so that their resource availability may be enhanced.

  • Demand for Greater Tipraland

    Tripura royal scion Pradyot Kishore Manikya has recently announced his political demand for a new state called ‘Greater Tipraland’.

    Try this:

    Q.New-age ethnic politics in North East is driving demands for separate statehood movements in India. Discuss.

    What is Greater Tipraland?

    • ‘Greater Tipraland’ is essentially an extension of the ruling tribal partner Indigenous Peoples Front of Tripura – IPFT’s demand of Tipraland, which sought a separate state for tribals of Tripura.
    • The new demand seeks to include every tribal person living in an indigenous area or village outside the Tripura Tribal Areas Autonomous District Council (TTAADC) under the proposed model.
    • However, the idea doesn’t restrict to simply the Tripura tribal council areas but seeks to include ‘Tiprasa’ of Tripuris spread across different states of India like Assam, Mizoram etc. as well.
    • It seeks to include even those living in Bandarban, Chittagong, Khagrachari and other bordering areas of neighbouring Bangladesh.
  • What are Non-Alcoholic Fatty Liver Diseases (NAFLD)?

    The Union Govt has integrated the Non-alcoholic fatty liver disease (NAFLD) in the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke.

    Try this MCQ:

    Q.A Company marketing food products advertises that its items do not contain trans-fats. What does this campaign signify to the customers?

    1. The food products are not made out of hydrogenated oils.
    2. The food products are not made out of animal fats/oils.
    3. The oils used are not likely to damage the cardiovascular health of the consumers.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    NAFLD

    • NAFLD is the abnormal accumulation of fat in the liver in the absence of secondary causes of fatty liver, such as harmful alcohol use, viral hepatitis, or medications.
    • According to doctors, it is a serious health concern as it encompasses a spectrum of liver abnormalities.
    • It can cause non-alcoholic fatty liver (NAFL, simple fatty liver disease) to more advanced ones like non-alcoholic steatohepatitis (NASH), cirrhosis and even liver cancer.

    Why such a move?

    • NAFLD is emerging as an important cause of liver disease in India.
    • Epidemiological studies suggest the prevalence of NAFLD is around 9% to 32% of the general population in India with a higher prevalence in those with overweight or obesity and those with diabetes or prediabetes.
    • Researchers have found NAFLD in 40% to 80 % of people who have type 2 diabetes and in 30% to 90% of people who are obese.
    • Studies also suggest that people with NAFLD have a greater chance of developing cardiovascular disease.
    • Cardiovascular disease is the most common cause of death in NAFLD.
  • [pib] One Nation One Standard Mission

    It’s time to embark on Mission “One Nation One Standard” and make India the leader in setting global benchmarks in setting standards, highlighted the Food and Consumer Affairs Minister.

    One Nation One Standard

    • The purpose of setting standards and enforcing them is not to bring back “inspection raj” but to ensure that quality products are made available to consumers.
    • The Bureau of Indian Standards (BIS), the only national body that frames standards, has come out with more than 20,000 standards for various products and services so far.
    • Besides this, there are about 50-odd agencies that have framed about 400 standards in the country.
    • There are multiple standards in the country for a single product/service. The new mission is to converge such standards with the BIS.

    Main objectives:

    • No one should feel the need to go abroad to get the quality certification.
    • Lab testing in India should be of world standards. Modern equipment and the latest technologies would be used there.

    Why such a move?

    • Having uniform national standards will help in making it mandatory for more products.
    • The government proposes to set Indian standards in line with the global benchmarks, just like other countries enforce their standards on imported products.
    • The Centre, through this move, wants foreign goods coming into India to comply with Indian standards.

    Try this PYQ:

    Consider the following statements:

    1. The Standard Mark of the Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
    2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2


    Back2Basics: Bureau of Indian Standards (BIS)

    • BIS is the National Standards Body of India working under the aegis of the Ministry of Consumer Affairs, Food & Public Distribution.
    • It is established by the Bureau of Indian Standards Act, 1986 which came into effect on 23 December 1986.
    • The organisation was formerly the Indian Standards Institution (ISI), set up under the Resolution of the Department of Industries and Supplies in September 1946.
    • The ISI was registered under the Societies Registration Act, 1860.
    • A new Bureau of Indian standard (BIS) Act 2016 has been brought into force with effect from 12 October 2017.
    • The Act establishes the Bureau of Indian Standards (BIS) as the National Standards Body of India.
  • Voice vote as constitutional subterfuge

    The article discusses the issue of undermining of the upper house by passing the certain bills through voice vote and use of money bill route.

    Passing of the Bill by voice vote

    • The Karnataka Prevention of Slaughter and Preservation of Cattle Bill was passed by the State’s Legislative Council by voice vote without any division.
    • The law was passed by the Council despite the lack of a majority.
    • There was no division vote based on actual voting as is usual and as the Opposition members had demanded.

    A new legislative precedent

    • Similar process was followed to pass the controversial farm laws (by the Rajya Sabha) in September 2020.
    • The pandemonium in the House caused by heated interventions by the Opposition was used as a pretext to resort to a voice vote.
    • The laws passed with a voice vote seem like a new template for bypassing the constitutionally envisaged legislative process.
    • Another process repeatedly used over the last few years to bypass the Upper House of Parliament is the Money Bill route.
    • The Aadhaar Bill was passed in this manner.
    • Other controversial laws such as those pertaining to electoral bonds, retrospective validation of foreign political contributions and the overhaul of the legal regime relating to tribunals have also been carried out through the Money Bill route.

    The Rajya Sabha’s role

    • The Lok Sabha is seen as directly representing the will of the people, and the Rajya Sabha as standing in its way.
    • The countervailing function of the Upper House is rarely seen as legitimate.
    • The Rajya Sabha has historically stopped the ruling party from carrying out even more significant legal changes.
    • The Rajya Sabha is imperfect, partly because of constitutional design.
    • And partly because obviously undesirable practices, such as members representing States they have no affiliation to, have been allowed to flourish.

    Importance of bicameralism

    • The very questioning of the monopoly of the Lower House to represent the ‘people’ makes bicameralism desirable, argues legal philosopher Jeremy Waldron.
    • In India, the fact that the Rajya Sabha membership is determined by elections to State Assemblies leads to a different principle of representation, often allowing different factors to prevail than those in the Lok Sabha elections.
    • John Stuart Mill had warned about a single assembly becoming despotic and overweening, if released from the necessity of considering whether its acts will be concurred in by another constituted authority.
    • The other merit of bicameralism is significant in a Westminster system like India, where the Lower House is dominated by the executive.
    • The Rajya Sabha holds the potential of a somewhat different legislative relation to the executive, making a robust separation of powers possible.

    Consider the question “Examine the importance of bicameralism in India. Why passage of certain bills as money bill is causing controversies?”

    Conclusion

    The important role played by the upper house needs to be recognised and respected in the legislative processess.

  • Why does India need Conclusive Land Titling?

     

    Land ownership in India

    • In India, land ownership is determined through various records such as sale deeds that are registered, property tax documents, government survey records, etc.
    • Land ownership is broadly defined by access to a land title.  Land Title is a document that determines the ownership of land or immovable property.
    • Having a clear land title protects the rights of the titleholder against other claims made by anyone else to the property.

    What is the news?

    • In 2020, even as laws for farm reform and labour code reform were being enacted, the government’s think tank, NITI Aayog, took steps to initiate land reforms.
    • A Model Bill on Conclusive Land Titling was sent to States and Union Territories last June seeking their comments.
    • In September, after many States failed to send in their feedback, the Centre warned that their agreement would be presumed.

    What is Conclusive Land Titling?

    • In a conclusive titling system, the government provides guaranteed titles and compensation in case of any ownership disputes.
    • Achieving this will require shifting to a system of registered property titles (as opposed to sale deeds) as the primary evidence of ownership, and having clear and updated land records.

    How does the current system work?

    • India currently follows a system of presumptive land titling.
    • This means that land records are maintained, with information on possession, which is determined through details of past transactions.
    • Ownership, then, is established on the basis of current possession. Registration of land is actually a registration of transactions, such as sale deeds, records of inheritance, mortgage and lease.
    • Holding registration papers does not actually involve the government or the legal framework guaranteeing the ownership title of the land.

    What will change in the new system?

    • On the other hand, under a conclusive land titling system, land records designate actual ownership.
    • The title is granted by the government, which takes the responsibility for accuracy.
    • Once a title is granted, any other claimant will have to settle disputes with the government, not the titleholder.

    Why is conclusive land titling needed?

    • The main advantage is that a conclusive system will drastically lower litigation related to land.
    • According to a 2007 World Bank study on ‘Land Policies for growth and poverty reduction’, land-related disputes accounted for two-thirds of all pending court cases in India.
    • A NITI Aayog study on strengthening arbitration estimated that disputes on land or real estate take an average time of 20 years in the courts to be resolved.

    A move for EODB

    • Right now, because land titles are based on transactions, people have to keep the entire chain of transaction records, and a dispute on any link in that chain causes ambiguity in ownership.
    • Once conclusive titling is in place, investors who want to purchase land for business activities will be able to do so without facing the constant risk that their owners may be questioned and their entire investment may go to waste.
    • Land disputes and unclear titling also create hurdles for infrastructure development and housing construction, leading to costly delays and inefficiency.

    Multiple benefits

    • In cities, urban local bodies depend on property taxes that can be levied properly only if there is clear ownership data available.
    • In rural areas, the need is even more acute. Access to agricultural credit is dependent on the ability to use the land as collateral.
    • Without being able to prove their ownership of land and access formal credit from banks, small and marginal farmers are often left at the mercy of unscrupulous moneylenders.

    What does the model Bill propose?

    • The Bill circulated by the NITI Aayog in 2020 calls for Land Authorities to be set up by each State government, which will appoint a Title Registration Officer (TRO),
    • TRO will prepare and publish a draft list of land titles based on existing records and documents.
    • This will be considered a valid notice to all potential claimants interested in the property, who will have to file their claims or objections within a set period of time.
    • If disputing claims are received, the TRO will verify all the relevant documents and refer the case to a Land Dispute Resolution Officer (LDRO) for resolution.

    Major hurdles

    • The biggest challenge is that land records have not been updated for decades, especially in rural and semi-urban areas.
    • Land records are often in the name of the grandparents of the current owner, with no proof of inheritance.
    • Unless they are based on updated records, conclusive land titles could create even more problems.
    • Comprehensive village-level surveys with community involvement are a necessary precursor to the land titling process.
    • Relying on current records or even satellite imagery will not provide the same accuracy as actual, on-the-ground, local surveys.
  • Ramani Judgement

     

    Why the Ramani judgement matters

    • The verdict went beyond a mere refusal to convict Ramani for criminal defamation.
    • The verdict vindicated Ramani by accepting Ramani’s truth as a defence to the charge of defamation.
    • The verdict urged society to “understand that sometimes a victim may for years not speak up due to mental trauma,” and underlined that a woman has a right to speak up about the abuse, even after decades.
    • It pointed out that since sexual harassment typically takes place in private, women’s testimonies cannot be dismissed as untrue or defamatory simply because they are unable to provide other witnesses to back their allegations.
    • Institutional mechanisms have systemically failed to protect women or provide justice, the verdict reasoned.
    • Therefore, survivors are justified in sharing their testimonies on media or social media platforms as a form of self-defence.

    Right to dignity

    • The Ramani verdict points out that sexual abuse violates the constitutionally recognised rights to dignity (Article 21) and equality (Articles 14 and 15), and that (a man’s) right to reputation cannot be protected at the cost of (a woman’s) right to dignity. 
    • The Ramani verdict is a huge moral vindication of the #MeToo movement and will serve to deter powerful men from using the defamation law to silence survivors.

    Problem of institution

    • Sexual harassment is a problem of institutions rather than of individuals alone.
    • The world over, employers deploy sexual harassment as a means to discipline and control women workers.
    • In India and Bangladesh, at least 60 per cent of garment factory workers experience harassment at work.
    • In Guangzhou, China, a survey found that 70 per cent of female factory workers had been sexually harassed at work, and 15 per cent quit their jobs as a result.
    • For factory workers, domestic workers, street vendors, sanitation and waste workers, construction workers, sex workers, labour laws or laws against sexual harassment exist only on paper.

    Conclusion

    The women who spoke were unanimous that individual complaints were not an option, they needed unions to fight collectively. Women workers fighting sexual harassment, need more support and attention.

  • Big tech regulation and problems

    Article highlights the issues with the growing dominance of social media giants and challenges involved in regulating them.

    Issues to consider

    1) Conflict of interest

    • Many of the big tech companies were not, as they claimed, mere platforms.
    • This is because they began to curate and generate their own content, creating possible conflicts of interest.

    2) Monopoly power

    • There is a suspicion that big tech companies were acquiring more monopoly power leading to lack of free competition.
    • There is a conjunction of technology and finance here.
    • The more companies were valued, the more they needed monopoly rent extraction to be able to justify those valuations.

    3) Lack of accountability in algorithms

    • There was an irony in an opaque algorithm being the instrument of a free, open and equitable society.

    4) Mixed implications for distribution of wealth

    • While the companies had immense economic impact, their distributive implications were more mixed.
    • They empowered new players, but they also seem to destroy lots of businesses.
    • These companies themselves became the symbol of inequality of economic and political power.

    5) Lack of accountability and standards in regulating free speech

    • Big tech companies set themselves up almost as a sovereign power.
    • This was most evident in the way they regulated speech, posing as arbiters of permissible speech without any real accountability or consistency of standards.
    • The prospect of a CEO exercising almost untrammelled authority over an elected president only served to highlight the inordinate power  these companies could exercise.

    6) Effects of big tech on democracy and democratisation

    •  The social legitimacy of California Libertarianism came from the promise of a new age of democratic empowerment.
    • But as democracies became more polarised, free speech more weaponised, and the information order more manipulated, greater suspicion was going to be cast on this model.
    • All democracies are grappling with this dilemma.

    Big tech in Indian context

    • India will justifiably worry about its own economic interests.
    • India will be one of the largest bases of internet and data users in the world.
    • The argument will be that this should be leveraged to create iconic Indian companies and Indian value addition.
    • India can create competition and be more self-reliant in this space.
    • Pushing back against big tech is not protectionism, because this pushback is to curb the unfair advantages they use to exploit an open Indian market.
    • India can also justifiably point out that in China keeping out tech companies did not make much of a difference to financial flows or investment in other areas.

    The real challenge

    • It will be important to distinguish between regulations that are solving some real problems created due to Big tech, and regulation that is using this larger context to exercise more control.
    • It will be easier to address those issues if the government showed a principled commitment to liberty, commitment to root out crony capitalism, an investment in science and technology commensurate with India’s challenges, and a general regulatory independence and credibility.

    Consider the question “What are the challenges posed by the dominance of social media giants? Suggest the measures to deal with these challenges.”

    Conclusion

    We should not assume that just because big tech is being made to kneel, the alternative will be any better.

  • No role in State’s quota decisions: Centre tells SC

    The Centre has told the Supreme Court that it has no role in the choices made by the Tamil Nadu government with regard to the provision of reservation for specific castes or communities in state government jobs and admissions.

    Reservation being an all-time contested issue is a less inevitable topic for mains. However, we can expect some of the thought triggering questions such as – “Reservation is hardly capable of striking a balance between social inclusion and merit. Critically comment. (250 W)”

    OR

    Essay topic like- “Meritocracy is unrealized without an egalitarian society” are ready to raid your mind.

    Issue over 69%

    • The Centre was responding to a petition challenging the constitutionality of the Tamil Nadu Backward Classes, SCs and STs Act of 1993, which provides 69% reservation in the State.
    • The petitioner contends that the TN has acted “outside its competence” by identifying and classifying socially and educationally backward classes (SEBCs).
    • It is too far in excess of the 50% limit on quota laid down by a nine-judge Bench of the Supreme Court in its judgment in the Indira Sawhney Case (1992).

    Indira Sawhney Case

    In the famous Mandal case (Indra Sawhney Case, 1992), the scope and extent of Article 16(4), which provides for reservation of jobs in favour of backward classes, has been examined thoroughly by the Supreme Court.

    • Though the Court has rejected the additional reservation of 10% for poorer sections of higher castes, it upheld the constitutional validity of a 27% reservation for the OBCs with certain conditions.
    • The advanced sections among the OBCs (the creamy layer) should be excluded from the list of beneficiaries of reservation.
    • No reservation in promotions; reservation should be confined to initial appointments only. Any existing reservation in promotions can continue for five years only (i.e., upto 1997).
    • The total reserved quota should not exceed 50% except in some extraordinary situations. This rule should be applied every year.
    • The ‘carry forward rule’ in case of unfilled (backlog) vacancies is valid. But it should not violate the 50% rule.

    What did the Centre say in the TN case?

    • The inclusion or exclusion of any caste/community in the State List of SEBCs is the subject matter of the State government, and the Government of India has no role in the matter.
    • It referred to the Constitution (102nd Amendment) Act of 2018, which details the difference in the procedure for inclusion or exclusion of castes and communities in the State List for SEBCs and the Central List.

    Identifying SEBC

    • The power to identify and specify SEBCs lies with Parliament only with reference to the Central List.
    • The State governments may have separate State Lists of SEBCs for providing reservation for recruitment to State services or admissions in State government educational institutions.
    • Under the newly-inserted Article 342A of the 102nd Amendment Act of 2018, the President notifies the SEBCs in a State after consultation with the Governor.
    • The castes or communities included in such State Lists may differ from those included in the Central List.

    A case for TN

    The senior advocate appearing for Tamil Nadu said the State’s case should be heard separately. The filed affidavit said:

    • India is an amalgam of States with varied population, size, history, culture and social fabric.
    • The circumstances and facts prevailing in Tamil Nadu are not the same or similar to those in any other State.
    • Tamil Nadu is a pioneer in the implementation of reservation in public employment and education. The policy of reservation has been in practice since 1921 in this State.
    • Factual variations contributing to the grant of reservation need to be reckoned with differently for different States while deciding the question on its validity.
    • The State argued that its law was protected under the Ninth Schedule of the Constitution from judicial review.
    • Section 4 of the 1993 Act provides 30% reservation to the Backward Classes, 20% for the Most Backward Classes and de-notified communities, 18% for the SCs and 1% for the STs.
  • Mission ‘Lal Lakir’

    The Punjab state cabinet has approved the implementation of mission ‘Lal Lakir’.

    Try this MCQ:

    Q.The SVAMITVA Scheme sometimes seen in the news is related to:

    Urban Employment/ Land records management/ Child Adoption/ None of these

    Mission ‘Lal Lakir’

    • ‘Lal Lakir’ refers to land that is part of the village ‘abaadi’ (habitation) and is used for non-agriculture purposes only.
    • The mission is aimed at facilitating villagers to monetize property rights and availing benefits provided by government departments, institutions and banks in all villages across the state.
    • As no record of rights is available for such properties within the ‘Lal Lakir’, the same cannot currently be monetized as per the real value of the property and no mortgages can be created on such properties.
    • There are households within the ‘Lal Lakir’, which do not own property other than the areas within the ‘Lal Lakir’, and are thus at a disadvantage.

    An extension to SVAMITVA

    • Under the mission, the right of record of properties within ‘Lal Lakir’ in the villages of the state will be prepared with the cooperation of the government of India under the SVAMITVA scheme.
    • SVAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas.
    • This will enable mapping the land, households, habitation and all other areas falling within ‘Lal Lakir’.
    • It will go a long way in improving the living standard of villagers and boosting their self-esteem.

    Back2Basics: SVAMITVA

    • SVAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas.
    • Under the scheme, the latest surveying technology such as drones will be used for measuring the inhabited land in villages and rural areas.
    • The mapping and survey will be conducted in collaboration with the Survey of India, State Revenue Department and State Panchayati Raj Department under the Ministry of Panchayati Raj.
    • The drones will draw the digital map of every property falling in the geographical limit of each Indian village.
    • Property Cards will be prepared and given to the respective owners.