Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Suitability of Maldives model of development for the Lakshadweep
The article highlights the issues with development model sought to be pursued in Lakshadweep.
Background of Island Development Authority’
- A specially constituted Island Development Authority (IDA) for the island territories of India, chaired by no less than the former Prime Minister, Rajiv Gandhi.
- IDA had in 1988, approved a framework for the development of India’s island territories.
- IDA sought an environmentally sound strategy for both island groups hinges on better exploitation of marine resources coupled with much greater care in the use of land resources.
- Deliberations of the IDA wanted that Lakshadweep, with its land ownership constitutionally protected, be opened to international tourism.
Issues with following Maldives model for development of Lakshadweep
- Recently, the Administrator, Lakshadweep, introduced a slew of draft legislation that will have a wide-ranging impact on the islands.
- One such legislation is the Lakshadweep Development Authority Regulation 2021 with intentions to develop Lakshadweep like neighbouring Maldives, “a renowned international tourist destination”.
- Rejecting the Maldives model, the plan for Lakshadweep required that the industry had to be people-centric and enrich the fragile coral ecology.
- Today, long lines and refrigeration have aided the expansion of the fishing sector but income disparities have grown.
- Indiscriminate trawling endangers the coral, as experienced in the Maldives and now banned there.
- The Government recognises the need to develop policies for enhancing employment opportunities, environment-friendly management of fisheries, sanitation, waste disposal and widening access to drinking water, with the youth, having acquired a modern education, preferring salaried jobs over pursuing traditional occupations.
Conclusion
What Lakshadweep needs is a clear policy must include conservation and natural resource management arrived at after wide consultation, eminently possible within the existing infrastructure of the Union Territory, and also taking into account climatic compulsions.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Impact of second Covid wave on States' fiscal health
The article gives the overview of the impact of second Covid wave on the fiscal health of the States.
Impact of first Covid wave on fiscal health of states
- The analysis of the fiscal data for all states with the exception of Goa, Manipur, Meghalaya and Sikkim reveal a grim picture.
- The aggregate revenue deficit for 24 state governments soared to Rs 4 trillion as per the revised estimates (RE) for 2020-21, up from a modest budgeted amount of Rs 353 billion.
- And, despite a 16 per cent cut in capital spending, the fiscal deficit of these states deteriorated to Rs 8.7 trillion in 2020-21 (RE), up from the budgeted estimate of Rs 6.0 trillion.
How states had projected ambitious decline in revenue deficit
- The budgets for the ongoing fiscal year, had projected an ambitious, decline in the aggregate revenue deficit to Rs 1.2 trillion, lower than the pre-Covid-19 level of Rs 1.3 trillion in 2019-20.
- This has benefitted from the considerable expansion in their revenue receipts this year, forecasted at 24.7 per cent, compared to a moderate 12.4 per cent increase in their aggregate revenue expenditure.
- This anticipated shrinking of the revenue deficit has allowed states to plan for a substantial expansion in their capital expenditure and net lending pegged at 34.1 per cent.
- This anticipated shrinking also allowed the States to attempt a modest correction in their budgeted fiscal deficit, bringing it down to Rs 7.6 trillion in 2021-22 from Rs 8.7 trillion in 2020-21 (RE).
Fiscal concerns over second Covid wave
- The second wave of Covid-19 infections and its spread to rural areas has fanned fiscal concerns.
- The curtailed consumption of discretionary items and contact-intensive services will dampen the growth of states’ own tax revenues this year.
- Moreover, lower mobility during the regional lockdowns will constrain tax revenues that states earn on fuels.
- The data for the generation of GST e-way bills confirms that the staggered imposition of the localised lockdowns has had an adverse impact on economic activity since April.
- This will result in a sequential slowdown in GST collections that will be reported in the subsequent two months.
- Nevertheless, the GST collections is likely to nearly double to Rs 1.7 trillion in the first quarter of this year, up from Rs 0.9 trillion over the same period last year, boosted by the record-high collections in April,
- That reflected healthy economic activity in March.
The shortfall and way forward
- States’ own tax collections is estimated to trail their budget estimates as they were drawn up before the second wave.
- For this year, state GST collections would be at Rs 6.1 trillion, falling below their projected revenues of Rs 8.7 trillion.
- This indicates a GST compensation requirement of Rs 2.65 trillion — only 38 per cent of which may be met through the expected GST compensation cess collections.
- Following the meeting of the GST Council, the Finance Minister has indicated that a back-to-back loan of Rs 1.58 trillion will be provided to the states.
- If the tranches of this loan start flowing to the states soon, it will alleviate their anticipated revenue crunch over the next two months.
- Already, there has been a sharp rise in the size of the upcoming State Development Loan auction to Rs. 19,550 crore, relative to the modest average size of around Rs. 7,400 crore seen so far in the first eight auctions held in FY2022.
Conclusion
In any case, the capital spending budgeted by certain state governments this year appears to be optimistic. Moreover, localised restrictions imposed during the last two months are expected to have constrained activity.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Blockchain technology
Mains level: Paper 3- Adopting and regulating cryptocurrencies
The article highlights the need for coherent cryptocurrency policy and avoid missing the benefits offered by the technology.
Growing dominance of cryptocurrencies
- Created by Satoshi Nakamoto in 2008, Bitcoin is the most popular cryptocurrency.
- It is a fully decentralised, peer-to-peer electronic cash system that didn’t need the purview of any third-party financial institution.
- The Bitcoin, which traded at just $ 0.0008 in 2010, commanded a market price of just under $65,000 this April.
- Many newer coins were introduced since Bitcoin’s launch, and their cumulative market value touched $ 2.5 trillion this May.
- Within a span of just over a decade, their value has surpassed the size of economies of most modern nations.
- The “cryptomarket” grew by over 500 per cent, even while the pandemic unleashed global economic carnage not seen since the Great Depression.
- China’s recent crackdown on cryptocurrency had far-reaching consequences.
- An astounding trillion US dollars were wiped out from the global cryptomarket within a span of 24 hours.
- This kind of volatility mentioned above has always been a concern for regulators and investors alike.
India’s approach
- Law enforcement and taxation agencies have called for a ban, expressing concerns over cryptocurrencies being used as instruments for illicit activities, including money laundering and terror funding.
- In 2018, the Reserve Bank barred our financial institutions from supporting crypto transactions — but the Supreme Court overturned it in 2020.
- Yet, Indian banks still block these transactions, and the government has circulated a draft bill outlawing all cryptocurrency activities, which has been under discussion since 2019.
- The Reserve Bank has announced the launch of a private blockchain-supported official digital currency, similar to the digital Yuan.
- India is increasingly mimicking China’s paradoxical attempt to centralise a decentralised ecosystem.
- India is trying to decouple cryptocurrencies from their underlying blockchain technology, and still derive benefit.
- Unfortunately, this is impractical, and shows a lack of understanding of this disruptive innovation.
- The funds that have gone into the Indian blockchain start-ups are less than 0.2 per cent of the amount the sector raised globally.
- The current central government approach makes it near-impossible for entrepreneurs and investors to acquire much economic benefit.
Need for regulation
- Regulation is definitely needed to prevent serious problems, to ensure that cryptocurrencies are not misused, and to protect unsuspecting investors from excessive market volatility and possible scams.
- However, regulation needs to be clear, transparent, coherent and animated by a vision of what it seeks to achieve.
- India has not been able to tick these boxes, and we’re in danger of missing out in the global race altogether.
Way forward
- Any new regulations made in this sector should prevent the misuse of these digital assets without hindering innovation and investments.
- Provisions have to be made to route the value extracted from these networks transparently into our financial system.
- Regulatory uncertainties over India’s position on cryptocurrency highlights the need for clear-headed policy-making.
Consider the question “India was a late adopter in all the previous phases of the digital revolution be it the semiconductors, the internet or smartphones. Do you think the same is happening again in India’s adoption of cryptocurrencies and blockchain technology?”
Conclusion
We are currently on the cusp of the next phase, which would be led by technologies like blockchain. We have the potential to channel our human capital, expertise and resources into this revolution, and emerge as one of the winners of this wave. All we need to do is to get our policymaking right.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Onset of Monsoon, ITCZ, etc.
Mains level: Factors that influence the onset of south-west monsoons, Indian Monsoon
- The monsoon’s arrival over Kerala has been delayed to June 3, according to an update by the India Meteorological Department (IMD).
- Private weather forecast agency, Skymet, however, said that the monsoon had arrived.
- This was because two of the three criteria — as defined by the IMD — had been met.
- Currently, IMD’s own data indicated that except for the OLR, the other criteria were met. Thus, there is an element of subjectivity in arrival.
What are those criterias defined by IMD?
- Rain-bearing westerlies being at a minimum depth and speed;
- At least 60% of the available 14 stations in Kerala and coastal Karnataka, reporting rainfall of 2.5 mm or more for two consecutive days after May 10;
- A certain degree of clouding, indicated by a parameter called ‘outgoing long wave radiation’ (OLR), being below 200 W/square meter.
What is meant by ‘Outgoing Long Wave Radiation’ (OLR)?
- Outgoing Long-wave Radiation (OLR) is electromagnetic radiation of wavelengths from 3–100 μm emitted from Earth and its atmosphere out to space in the form of thermal radiation.
- It is also referred to as up-welling long-wave radiation and terrestrial long-wave flux, among others.
- The flux of energy transported by outgoing long-wave radiation is measured in W/m.
- In the Earth’s climate system, long-wave radiation involves processes of absorption, scattering, and emissions from atmospheric gases, aerosols, clouds and the surface.
- Over 99% of outgoing long-wave radiation has wavelengths between 4 μm and 100 μm, in the thermal infrared part of the electromagnetic spectrum.
Factors responsible for south-west monsoon formation:
- Intense heating of Tibetan plateau during summer months.
- Permanent high pressure cell in the South Indian Ocean (east to north-east of Madagascar in summer).
Factors that influence the onset of south-west monsoons:
- Above points +
- Subtropical Jet Stream (STJ).
- Tropical Easterly Jet (African Easterly Jet).
- Inter Tropical Convergence Zone.
Factors that influence the intensity of south-west monsoons:
- Strengths of Low pressure over Tibet and high pressure over southern Indian Ocean.
- Somali Jet (Findlater Jet).
- Somali Current (Findlater Current).
- Indian Ocean branch of Walker Cell.
- Indian Ocean Dipole.
Factors responsible for north-east monsoon formation:
- Formation and strengthening of high pressure cells over Tibetan plateau and Siberian Plateau in winter.
- Westward migration and subsequent weakening of high pressure cell in the Southern Indian Ocean.
- Migration of ITCZ to the south of India.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bell of Faith’ scheme
Mains level: Old age security
The ‘Bell of Faith’ scheme will now be implemented for senior citizens staying alone in villages. Scheme to cover 250 houses in city in the first phase.
What is the ‘Bell of Faith’ scheme all about?
- It is a safety project conceived under Kerala’s Community Policing Scheme.
- It will help elderly citizens attract the attention of their neighbours using a loud, remote-controlled alarm in emergencies.
- It has been under implementation in Kerala since 2018.
- A welfare fund of ₹3.5 crore sanctioned by the State government would be used for the initiative that gives preference to those staying alone in their houses.
- In the first phase, around 250 houses selected by the local Janamaithri scheme coordinators will be covered under the scheme
Significance of the Project:
- It sets an example for community participation to ensure the well-being and safety of the elderly.
- It can be of great support for the aged during the COVID-19 pandemic as many live in fear for their health.
- The electronic bells, installed free of cost with wireless control mechanism, will help senior citizens in quickly seeking the support of neighbours during emergencies.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: ECOWAS
Mains level: Not much
West African leaders were due to meet in Ghana to discuss a response to Mali’s second coup in nine months.
- Since 1960, when Mali gained independence from France, there have been five coups — and only one peaceful transition from one democratically elected president to another.
- But on Monday, soldiers detained transitional President Bah Ndaw and Prime Minister Moctar Ouane, releasing them on Thursday while saying that they had resigned.
Recent coup
- Nine months ago, President Ibrahim Boubacar Keita was overthrown in the wake of mass anti-government protests.
- Last week, the announcement of a new cabinet was made that excluded two key military leaders. Following this, the army has detained the President and the Prime Minister.
About ECOWAS
- The Economic Community Of West African States (ECOWAS) is a regional group of fifteen countries, founded in 1975 via the treaty of Lagos.
- Mission: To promote economic integration in “all fields of economic activity, particularly industry, transport, telecommunications, energy, agriculture, natural resources, commerce, monetary and financial questions, social and cultural matters.
- Vision: Creation of a borderless region where the population has access to its abundant resources and is able to exploit same through the creation of opportunities under a sustainable environment.
- ECOWAS can be divided into two sub-regional blocs:
- West African Economic and Monetary Union – established in 1994
- West African Monetary Zone (WAMZ) – established in 2000
- ECOWAS is meant to be a region governed in accordance with the principles of democracy, rule of law and good governance.
- The member countries of ECOWAS comprises: Benin, Burkina Faso, Cape Verde, Cote d’ Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sierra Leone, Senegal and Togo.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Goan liberation from Portuguese
Mains level: Decolonization in India
On 18 December 1961, the Indian government took military action against the Portuguese rule in Goa culminating in the liberation of Goa and its merger with the Indian Union.
About Goa
- Goa is located on the southwestern coast of India within the region known as the Konkan, and geographically separated from the Deccan highlands by the Western Ghats.
- Capital: Panji.
- Official Language: Konkani which is one of the 22 languages from the Eight Schedule.
- Borders: It is surrounded by Maharashtra to the north and Karnataka to the east and south, with the Arabian Sea forming its western coast.
History:
- Portugal conquered Goa in 1510 and made it a colony.
- In 1950, the Indian government, in a bid to start diplomatic measures to free Goa, asked the Portuguese government to start negotiations for the independence of Goa. However, Portugal refused.
- The Goan movement was supported by Indian independence leaders like Jawaharlal Nehru, Subhas Chandra Bose, Dr. Ram Manohar Lohia and Dr. Rajendra Prasad.
- Dadra and Nagar Haveli was annexed by India in 1954 with the support of the United Front of Goans, the Azad Gomantak Dal and the National Movement Liberation Organisation.
- The commander of the Indian forces was Major-General K.P. Candeth. The operation for Goa liberation was codenamed “Operation Vijay”.
- After the fall of Goa, Portugal terminated all diplomatic relations with India and only in 1974 Portugal recognise Goa as a part of India and resume diplomatic relations.
- The USSR had steadfastly supported India in this matter and also vetoed a resolution condemning the Indian invasion in the UN Security Council.
Geography:
- The highest point of Goa is Sonsogor.
- Goa’s seven major rivers are the Zuari, Mandovi, Terekhol, Chapora, Galgibag, Kumbarjua canal, Talpona and the Sal.
- Most of Goa’s soil cover is made up of laterites.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now