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GS Paper: GS2

  • Sri Lanka at the UN Rights Council

    Sri Lanka is facing another UNHRC resolution for its war crimes that took place during the military campaign against the Liberation Tigers of Tamil Eelam (LTTE).

    UNHRC report on Sri Lanka

    • The report warned that Sri Lanka’s failure to address human rights violations and war crimes committed in the past had put the country on a “dangerous path”.
    • It rose that this could lead to a “recurrence” of policies and practices that gave rise to the earlier situation.
    • It flagged the accelerating militarization of civilian governmental functions, a reversal of important constitutional safeguards, political obstruction of accountability, intimidation of civil society, and the use of anti-terrorism laws.
    • The shrinking space for independent media and civil society and human rights organisations are also themes in the report.

    Try this question:

    Q.The triangulation in the ties between Sri Lanka, China and Pakistan is an emerging threat in the Indian Ocean Region. Discuss.

    The Resolution 30/1

    • The resolution 30/1 launched in 2015 deals with promoting reconciliation, accountability and human rights in Sri Lanka.
    • It extended an opportunity to make good on its promises for justice and offered extensive support to accomplish that objective.

    Sri Lanka’s intention

    • It is more than Sri Lanka has failed to – and doesn’t intend to — take the necessary, decisive, and sustainable steps necessary to achieve domestic justice and reconciliation.
    • Sri Lanka has officially sought India’s help to muster support against the resolution, which it has described as “unwanted interference by powerful countries”.

    Where India comes in

    • The UNHRC is scheduled to hold an “interactive” session on Sri Lanka where the report was to be discussed, and member countries were to make statements. India is expected to make a statement too.
    • Country-specific resolutions against Sri Lanka have regularly come up at the UNHRC in the last decade.
    • New Delhi voted against Sri Lanka in 2012 and abstained in 2014. It was spared the dilemma in 2015 when Sri Lanka joined resolution 30/1.
    • With elections coming up in Tamil Nadu, and PM declaring on a recent visit that he was the first Indian leader to visit Jaffna, Sri Lanka has begun reading the tea leaves.
    • Whichever way it goes, the resolution is likely to resonate in India-Sri Lanka Relations and for India internally, in the run-up to the Assembly elections in Tamil Nadu.

  • President’s Rule in Puducherry

    The Union Cabinet has approved a proposal by the Home Ministry to dissolve the Puducherry Assembly and impose President’s Rule in the Union Territory.

    Try this question from CSP 2017:

    Q.Which of the following is not necessarily the consequences of the proclamation of the President’s Rule in a State?

    1. Dissolution of the State Legislative Assembly
    2. Removal of the Council of Ministers in the State
    3. Dissolution of the local bodies

    Select the correct answer using the code given below

    (a) 1 & 2 only

    (b) 1 & 3 only

    (c) 2 & 3 only

    (d) 1, 2 & 3

    What is President’s Rule?

    • President’s rule is the suspension of state government and imposition of direct central government rule in a state.
    • This is achieved through the invocation of Article 356 of the Constitution by the President on the advice of the Union Council of Ministers.
    • Under Article 356, this move can be taken “(1) If the President, on receipt of the report from the Governor of the State or otherwise, is satisfied that a situation has arisen in which the government of the State cannot be carried on in accordance with the provisions of this Constitution…”

    How long President’s Rule can last?

    • A proclamation of President’s Rule can be revoked through a subsequent proclamation in case the leader of a party produces letters of support from a majority of members of the Assembly and stakes his claim to form a government.
    • The revocation does not need the approval of Parliament.
    • Any proclamation under Article 356 —which stands for six months — has to be approved by both Houses in the Parliament session following it.
    • This six-month time-frame can be extended in phases, up to three years.

    Conditions for Prez Rule

    • Where after general elections to the assembly, no party secures a majority, that is, Hung Assembly.
    • Where the party having a majority in the assembly declines to form a ministry and the governor cannot find a coalition ministry commanding a majority in the assembly.
    • Where a ministry resigns after its defeat in the assembly and no other party is willing or able to form a ministry commanding a majority in the assembly.
    • Where a constitutional direction of the Central government is disregarded by the state government.
    • Internal subversion where, for example, a government is deliberately acting against the Constitution and the law or is fomenting a violent revolt.
    • Physical breakdown where the government willfully refuses to discharge its constitutional obligations endangering the security of the state.

    Notable judgements: The S.R. Bommai Case

    Bommai v. Union of India (1994) was a landmark judgment of the Supreme Court of India, where the Court discussed at length provisions of Article 356 of the Constitution of India and related issues.

    • The judgement attempted to curb blatant misuse of Article 356 of the Constitution of India, which allowed the President’s rule to be imposed over state governments.
    • Article 356 (1) has been deliberately drafted in a narrow language by the Founding Fathers so that political parties in the Centre does not misuse it to subvert federalism, it had noted.
    • The President has to be convinced of or should have sufficient proof of information with regard to or has to be free from doubt or uncertainty about the state of things indicating that the situation in question has arisen.
    • The court had stated that although the sufficiency or otherwise of the material cannot be questioned, the legitimacy of inference drawn from such material is “certainly open to judicial review”.

    What was its verdict?

    • The judgment had explained that in a multi-party political system, chances are high that the political parties in the Centre and the State concerned may not be the same.
    • Article 356 cannot be used for the purpose of political one-upmanship by the Centre.
    • Hence there is a need to confine the exercise of power under Article 356[1] strictly to the situation mentioned therein which is a condition precedent to the said exercise,” the court had said.

    Fouling factors

    The imposition of President’s Rule in a state would be improper under the following situations:

    • Where a ministry resigns or is dismissed on losing majority support in the assembly and the governor recommends imposition of President’s Rule without probing the possibility of forming an alternative ministry.
    • Where the governor recommends imposition of President’s Rule without allowing the ministry to prove its majority on the floor of the Assembly.
    • Maladministration in the state or allegations of corruption against the ministry or stringent financial exigencies of the state.
    • Where the state government is not given prior warning to rectify itself except in case of extreme urgency leading to disastrous consequences.
    • Where the power is used to sort out intra-party problems of the ruling party.

    Back2Basics: Puducherry

    • Puducherry is a union territory formed out of four territories of former French India, namely Pondichéry (Pondicherry; now Puducherry), Karikal (Karaikal), Mahé and Yanaon (Yanam), excluding Chandannagar.
    • It is named after the largest district, Puducherry.
    • The areas of Puducherry district and Karaikal district are bound by the state of Tamil Nadu, while Yanam district and Mahé district are enclosed by the states of Andhra Pradesh and Kerala, respectively.
    • It is entitled by a special constitutional amendment act of 1962 to have an elected legislative assembly and a cabinet of ministers, thereby conveying partial statehood similar to the UT of Delhi.
    • It is administered by a Lieutenant Governor.

  • [pib] International Commission on Large Dams (ICOLD)

    The International Commission on Large Dams (ICOLD) Symposium was inaugurated by the Minister for Jal Shakti.

    What is the news?

    • ICOLD in collaboration with Central Water Commission (CWC) has organised a Symposium on “Sustainable Development of Dams and River Basins”.
    • The symposium is being organised to provide an excellent opportunity to Indian Dam Engineering Professionals and Agencies to share their experiences, ideas and latest developments.

    Try this PYQ:

    Q.Which one of the following pairs is not correctly matched?

    Dam: Lake River

    (a) Govind Sagar: Satluj

    (b) Kolleru Lake: Krishna

    (c) Ukai Reservoir: Tapi

    (d) Wular Lake: Jhelum

    About ICOLD

    • The ICOLD is an international non-governmental organization dedicated to the sharing of professional information and knowledge of the design, construction, maintenance, and impact of large dams.
    • It was founded in 1928 and has its central office in Paris, France.
    • It consists of 100 member national committees which have a total membership of about 10,000 individuals.
    • The official languages of the commission are English and French.

    Key initiatives: World Register of Dams

    For the purpose of inclusion in the World Register of Dams, a large dam is defined as any dam above 15 metres in height OR any dam between 10 and 15 metres in height that meets at least one of the following conditions:

    • the crest length is not less than 500 metres
    • the capacity of the reservoir formed by the dam is not less than one million cubic metres
    • the maximum flood discharge dealt with by the dam is not less than 2 000 cubic metres per second
    • the dam had especially difficult foundation problems
    • the dam is of unusual design

  • Pakistan- Sri Lanka Relations

    Pakistani PM is in Colombo on a two-day visit for ways and means to enhance trade and connectivity with Sri Lanka.

    What is the news?

    • Pakistan PM’s visit has attracted a fair amount of controversy because of a cancelled invitation to address the Sri Lankan parliament.
    • India too granted permission for using its airspace for the Pakistani PM’s aircraft.

    Try this question:

    Q.The triangulation in the ties between Sri Lanka, China and Pakistan is an emerging threat in the Indian Ocean Region. Discuss.

    Sri Lanka- Pakistan Relations

    • For Colombo, the visit holds much value. It comes at a fraught time for the government on the international stage.
    • Imminently, it is bracing to be hauled over the coals at the UN Human Rights Commission for withdrawing from resolution 30/1 of September 2015, under which it committed to carrying out war crime investigations.
    • To make matters worse, the Islamic world is appalled by Sri Lanka’s tight rules for the cremation and not burials of Muslims who have died of COVID-19.
    • The rule created a storm in Sri Lanka, with community leaders convinced that this is nothing but an extension of the state’s persecution of Muslims.

    Why Pakistan?

    (1) Trade ties

    • Pakistan is Sri Lanka’s second-largest trading partner in South Asia after India.
    • Sri Lanka and Pakistan have a free trade agreement dating back to 2005.
    • Pakistan’s top exports to Sri Lanka are textiles and cement.
    • Sri Lanka’s top exports to Pakistan are tea, rubber and readymade garments.

    (2) Cultural ties

    • In addition to trade cooperation, Pakistan invokes cricket and Buddhism, topics that most Sri Lankans share a deep connection with.
    • Over the last decade, Pakistan has also been projecting its ancient Buddhist sites to promote cultural ties with Sri Lanka.

    (3) Defence ties

    Defence ties are a strong pillar of Sri Lanka- Pakistan bilateral relationship.

    • During the 1971 war, Pakistan Air Force jets refuelled in Sri Lanka.
    • India pulled back the peacekeeping forces in 1990, it provided no active defence support to the Sri Lankan military.
    • Sri Lanka turned to Pakistan for arms, ammunition as well as training for its fighter pilots.
    • Gotabaya, who was defence secretary at the time, visited Pakistan in 2008 to make a request for emergency assistance with military supplies.
    • Earlier this month, Sri Lanka participated in Pakistan’s multi-nation naval exercise Aman.

    India’s observations and concerns

    • As Sri Lanka’s closest neighbour with strong, all-encompassing ties, even if these are sometimes problematic, India has not perceived Pakistan as a serious rival in Sri Lanka so far.
    • Sporadically, the Indian security establishment has voiced concerns about Pakistan’s role in the radicalization of people, especially in Eastern Sri Lanka.
    • Funds have poured in for new mosques from some West Asian countries, and the effect that this could have in India.

    Emerging threats from the ‘Triad’

    • There is now a new wariness about triangulation in the ties between Sri Lanka, China and Pakistan in defence co-operation, though it has not been publicly expressed.
    • In 2016, India put pressure on Sri Lanka to drop a plan to buy the Chinese JF-17 Thunder aircraft made in Pakistan and co-produced by the Chinese Chengdu Aircraft Corporation.
    • The most recent threat was from excluding India from the Colombo Terminal Project.

  • NITI Aayog’s Draft National Policy on Migrant Workers

    Spurred by the exodus of 10 million migrants from big cities during the Covid-19 lockdown, the NITI Aayog has prepared a draft national migrant labour policy.

    Highlights of the Policy

    • The draft describes two approaches to policy design:
    1. To focus on cash transfers, special quotas, and reservations
    2. To enhance the agency and capability of the community and thereby remove aspects that come in the way of an individual’s own natural ability to thrive

    A rights-based approach

    • The policy rejects a handout approach, opting instead for a rights-based framework.
    • It seeks to remove restrictions on the true agency and potential of the migrant workers.
    • The goal a/c to the document should not be to provide temporary or permanent economic or social aids”, which is “a rather limited approach”.
    • Migration, the draft says, should be acknowledged as an integral part of the development and government policies should not hinder but…seek to facilitate internal migration.

    Issues with existing law

    • The 2017 report argued that specific protection legislation for migrant workers was unnecessary.
    • Migrant workers aren’t yet integrated with all workers as part of an overarching framework that covers regular and contractual work.
    • The report discussed the limitations of The Inter-State Migrant Workers Act, 1979, which was designed to protect labourers from exploitation by contractors by safeguarding their right to non-discriminatory wages.
    • It mentions that the Ministry of Labour and Employment should amend the 1979 Act for “effective utilization to protect migrants”.

    Restructuring the institutions

    The NITI draft lays down institutional mechanisms to coordinate between Ministries, states, and local departments to implement programmes for migrants.

    • Nodal agency: It identifies the Ministry of Labour and Employment as the nodal Ministry for implementation of policies, and asks it to create a special unit to help to converge the activities of other Ministries.
    • Resources centre: This unit would manage migration resource centres in high migration zones, a national labour Helpline, links of worker households to government schemes, and inter-state migration management bodies.
    • Migration corridors: On the inter-state migration management bodies, it says that labour departments of source and destination states along major migration corridors, should work together through the migrant worker cells.
    • Labour officers from source states can be deputed to destinations – e.g., Bihar’s experiment to have a joint labour commissioner at Bihar Bhavan in New Delhi.
    • Role for Panchayats: Alongside the long-term goal, policies should promote the role of panchayats to aid migrant workers and integrate urban and rural policies to improve the conditions of migration.
    • Migration management: Panchayats should maintain a database of migrant workers, issue identity cards and passbooks, and provide “migration management and governance” through training, placement, and social-security benefit assurance, the draft says.

    Ways to stem migration

    • Even as it underlines the key role of migration in development, the draft recommends steps to stem migration.
    • The draft asks source states to raise minimum wages to bring a major shift in the local livelihood of tribal that may result in stemming migration to some extent.
    • The absence of community building organisations (CBO) and administrative staff in the source states have hindered access to development programmes, pushing tribals towards migration, the draft says.
    • The “long term plan” for CBOs and panchayats should be to “alleviate distress migration policy initiatives” by aiming “for a more pro-poor development strategy in the sending areas.

    The importance of data

    • The draft calls for a central database to help employers “fill the gap between demand and supply” and ensures “maximum benefit of social welfare schemes”.
    • It asks the Ministries and the Census office to be consistent with the definitions of migrants and subpopulations, capture seasonal and circular migrants, and incorporate migrant-specific variables in existing surveys.
    • Both documents see limited merit in Census data that comes only once a decade.
    • It asked the National Sample Survey Office to include questions related to migration in the periodic labour force survey and to carry out a separate survey on migration.

    Preventing exploitation

    • The policy draft describes a lack of administrative capacity to handle issues of exploitation.
    • State labour departments have little engagement with migration issues, and are in “halting human trafficking mode”, the draft says.
    • The local administration, given the usual constraints of manpower, is not in a position to monitor.
    • This has become the breeding ground for middlemen to thrive on the situation and entrap migrants which leads to potential exploitation and trafficking.

    Specific recommendations

    • The draft asks the various ministries to use Tribal Affairs migration data to help create migration resource centres in high migration zones.
    • It asks the Ministry of Skill Development and Entrepreneurship to focus on skill-building at these centres.
    • The Ministry of Education should take measures under the Right to Education Act to mainstream migrant children’s education, to map migrant children, and to provide local-language teachers in migrant destinations.
    • The Ministry of Housing and Urban Affairs should address issues of night shelters, short-stay homes, and seasonal accommodation for migrants in cities.
    • The National Legal Services Authority (NALSA) and Ministry of Labour should set up grievance handling cells and fast track legal responses for trafficking, minimum wage violations, and workplace abuses etc.

  • Intensified Mission Indradhanush (IMI) 3.0

    States and UTs have started the implementation of the Intensified Mission Indradhanush 3.0, a campaign aimed to reach those children and pregnant women who have been missed out or been left out of the routine immunisation.

    Do not get confused with the Mission Indradhanush for Public Sector Banks launched in 2015. It aims at revamping the functioning of the Public Sector Banks to enable them to compete with the Private Sector Banks.

    Intensified Mission Indradhanush (IMI) 3.0

    • IMI 3.0 is aimed to accelerate the full immunization of children and pregnant women through a mission mode intervention.
    • The campaign is scheduled to have two rounds of immunisation lasting 15 days (excluding routine immunisation and holidays).
    • It is being conducted in pre-identified 250 districts/urban areas across 29 States/UTs in the country.
    • Beneficiaries from migration areas and hard to reach areas will be targeted as they may have missed their vaccine doses during the pandemic.

    About the Mission Indradhanush

    • Mission Indradhanush seeks to drive towards 90% full immunisation coverage of India and sustain the same by the year 2020. It was launched in December 2014.

    Aims and objectives

    • It aims to immunize all children under the age of 2 years, as well as all pregnant women, against eight vaccine-preventable diseases.
    • The diseases being targeted are diphtheria, whooping cough, tetanus, poliomyelitis, tuberculosis, measles, meningitis and Hepatitis B.
    • In 2016, four new additions have been made namely Rubella, Japanese Encephalitis, Injectable Polio Vaccine Bivalent and Rotavirus.
    • In 2017, Pneumonia was added to the Mission by incorporating the Pneumococcal conjugate vaccine under Universal Immunisation Programme

    Try this question from CSP 2016:

    Q.‘Mission Indradhanush’ launched by the Government of India pertains to:

    (a) Immunization of children and pregnant women

    (b) Construction of smart cities across the country

    (c) India’s own search for the Earth-like planets in outer space

    (d) New Educational Policy

  • [pib] PM-KISAN Scheme Completes Two Years

    The PM-Kisan scheme, launched with an aim to ensure a life of dignity and prosperity for farmers has completed two years of successful implementation.

    PM-KISAN

    • Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year.
    • This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs. 2,000 each.
    • This programme will be entirely funded by the Government of India.

    Note: Aadhaar was made optional for availing the first instalment (December 2018 – March 2019). But now it is mandatory.

    Exclusion categories

    The following categories of beneficiaries of higher economic status shall not be eligible for benefit under the scheme.

    1. All Institutional Landholders
    2. Farmer families in which one or more of its members belong to the following categories
    • Former and present holders of constitutional posts
    • Former and present Ministers/ MP/MLAs/Mayors /Chairpersons of District Panchayats
    • All serving or retired officers and employees of Central/ State Government Ministries (Excluding Multi Tasking Staff /Class IV/Group D employees)
    • All superannuated/retired pensioners whose monthly pension is ₹10,000/-or more (Excluding Multi Tasking Staff / Class IV/Group D employees) of the above category
    • All Persons who paid Income Tax in the last assessment year
    • Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out the profession by undertaking practices.

    Do you know?

    West Bengal is yet to implement the PM-KISAN scheme while the farmers have completed their registrations!

  • China-Taiwan conflict

    The article underscores the centrality of Taiwan in the realms of semiconductor production and how that dominant spills over in geopolitics.

    Silicon shield of Taiwan

    • Taiwan’s security situation has been worsening amidst mounting economic, political and military pressure from China.
    • Any Chinese attack on Taiwan that disrupts the flow of semiconductors would produce significant challenges not only for the US but also China that relies on semiconductor supplies from Taiwan.
    • That factor appears to be preventing the crisis from boiling over into a full-scale war that could draw the US and Japan into it.
    •  It is Taiwan’s so-called “silicon shield”.

    Taiwan’s dominance in semiconductor industry

    • Taiwan is the world’s leading producer of semiconductors and other electronic components.
    • The Taiwan Semiconductor Manufacturing Company (TSMC) has more than 55 per cent of the global market share in the production of high-end custom-made chips.
    • Of the two rival companies that have survived, US-based Intel is in trouble and Korea’s Samsung has challenges of its own.
    •  There will be no generation of data without the semiconductors.
    • It might be more accurate to say that “semiconductors are the new oil” and their production is increasingly dominated by Taiwan and the TMSC.

    Geopolitics over Taiwan

    • As its economic heft and political salience rose in the 21st century, China has ratcheted up pressure on countries that have diplomatic relations with Taiwan.
    • China has also compelled international organisations to push Taiwan out of their activities, even when Taiwan had much to contribute.
    • Amidst the deterioration of US-China relations in recent years, President Donald Trump was far more supportive of Taiwan than his recent predecessors.
    • The Biden team has also signalled continuity with Trump’s Taiwan policies.
    • All indications are that Washington will continue to seek some technological decoupling and diversification of sensitive supplies away from China.
    • Taiwan will inevitably be the key element in the American quest for resilient supply chains in the digital domain.

    Opportunity for India

    • Taiwan’s position as a semiconductor superpower opens the door for more intensive strategic-economic cooperation between Delhi and Taipei.
    • Part of the problem is that India’s strategic community continues to view Taiwan as an adjunct to India’s “One-China policy”.
    • India’s policy oscillates between keeping needless distance with Taipei when ties with Beijing are warm and remembering it when Sino-Indian ties enter a freeze.
    • This changed in the early 1990s, when it began to engage with Taiwan, but the policy remained a restricted one.
    • In the last few years, though, there has been a steady expansion of bilateral engagement.
    • Trade has increased from about $1 billion in 2001 to about $7 billion in 2018.
    • India has made a special effort to woo Taiwanese companies that are moving some of their production away from China.
    • India is yet to tap into the full range of commercial and technological opportunities possibilities with Taiwan.
    • This is particularly true of semiconductor production.

    Way forward

    • Delhi must begin to deal with Taiwan as a weighty entity in its own right that offers so much to advance India’s prosperity.
    • Delhi does not have to discard its “One-China policy” to recognise that Taiwan is once again becoming the lightning rod in US-China tensions.

    Consider the question “India needs to explore the opportunities in relationship with Taiwan even as it pursues and sticks to its One China policy. Comment.

    Conclusion

    As Taiwan becomes the world’s most dangerous flashpoint, the geopolitical consequences for Asia are real. Although Delhi has embraced the Indo-Pacific maritime construct, it is yet to come to terms with Taiwan’s critical role in shaping the strategic future of Asia’s waters.

  • 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.