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  • ‘Toolkit’ tweeted by Greta Thunberg

    The Delhi Police filed an FIR on charges of sedition, criminal conspiracy and promoting hatred against the creators of a ‘toolkit’ on farmer protests, which was shared by climate activist Greta Thunberg.

    Q.What do you mean by a social media toolkit? Discuss its potential mis-uses.

    What is a Toolkit?

    • A toolkit is essentially a set of adaptable guidelines or suggestions to get something done. The contents differ depending on what the aim of the toolkit is.
    • For example, the Department for Promotion of Industry and Internal Trade (DPIIT) has a toolkit for the implementation of Intellectual Property Rights (IPR).
    • This includes basics such as the guidelines to follow when investigating IPR violations, applicable laws, and definitions of terms such as counterfeit and piracy.
    • In the context of protests, a toolkit usually includes reading material on the context of the protest, news article links and methods of protest (including on social media).

    Why have they gained prominence?

    • While toolkits have been around for decades, the accessibility of social media has brought them into the spotlight over the past few years.
    • References to toolkits for protesters can be found in the Occupy Wall Street protests of 2011, in the Hong Kong protests of 2019, several climate protests across the world, anti-CAA protests across India.
    • During the Hong Kong protests, toolkits advised participants to wear masks and helmets to avoid being recognised and ways to put out tear gas shells.
    • During the anti-CAA protests, a toolkit suggesting twitter hashtags to use, places to hold protests, and a guide on what to do and carry with you if you are detained by the police were shared on social media.

    Toolkit tweeted by Greta Thunberg

    • The 18-year-old shared a toolkit on Twitter on the anti-farm law protests in India.
    • This came on the heels of singer-businesswoman tweeting a news article on internet curbs near protest sites in and around Delhi.
    • The toolkit tweeted by Thunberg was later deleted, with the activist saying it was being updated by people on the ground in India.
    • The toolkit asked those interested to start a ‘Twitter storm’ to share solidarity photo/video message by social media users.

    It is being speculated that the document was proof that an international conspiracy is being hatched to defame India and the central government over the ongoing farmers’ protest.

    What is the recent apprehension?

    • The police have said that during the inquiry it appears that the toolkit was created by Poetic Justice Foundation.
    • It says the prior action section delineated the action plan for January 26, when violence was seen at several areas as a group of farmers diverted from the set route and started marching towards the Red Fort.
    • The unfolding of events over the past few days, including the violence of 26th January, has revealed copycat execution of the ‘action plan’ detailed in the tool kit.
    • The intention of the creators of the tool kits appeared to be to create disharmony among various social, religious and cultural groups and encourage disaffection and ill-will against the state and the nation at large.

  • Donation reports of only 3.39% registered unrecognized parties available in public domain

    The contribution reports of only 78 (3.39%) of the total 2,301 registered unrecognized political parties are available in the public domain for 2018-19 reports the Association For Democratic Reforms (ADR).

    Classification of Political Parties in India

    (A) National parties

    A registered party is recognised as a national party only if it fulfils any one of the three conditions listed below:

    • A party should win 2% of seats in the Lok Sabha from at least three different states.
    • At a general election to Lok Sabha or Legislative Assembly, the party polls 6% of votes in any four or more states and in addition, it wins four Lok Sabha seats.
    • A party gets recognition as a state party in four states.
    • A party recognised as a National party can be derecognized if it fails to maintain the criteria.

    (B) State parties

    A party has to fulfil any of the following conditions for recognition as a state party:

    • A party should secure at least 6% of valid votes polled in an election to the state legislative assembly and win at least 2 seats in that state assembly.
    • A party should secure at least 6% of valid votes polled in an election to Lok Sabha and win at least 1 seat in Lok Sabha.
    • A party should win a minimum of three per cent of the total number of seats or a minimum of three seats in the Legislative Assembly, whichever is higher.
    • A party should win at least one seat in the Lok Sabha for every 25 seats or any fraction thereof allotted to that State.
    • Under the liberalized criteria, one more clause that it will be eligible for recognition as state party if it secures 8% or more of the total valid votes polled in the state.

  • Privacy concerns over Haryana’s Parivar Pehchan Patra

    Amid concerns over the Parivar Pehchan Patra scheme, the Haryana govt. says enrolment is voluntary. But residents have little choice as the delivery of even birth and death certificates is linked to it.

    Practice question for mains:

    Q.What is Parivar Pehchan Patra (PPP) recently rolled out by Haryana Govt.? How it is beneficial compared to the Aadhaar?

    What is Parivar Pehchan Patra (PPP)?

    • It is an 8-digit Unique Identity Card number meant for each family to enable smooth and automatic delivery of several citizen-centric services.
    • The government will establish the scheme-wise eligibility of a particular family using this 8-digit code according to the information available in the PPP of the family.
    • The benefits, according to the schemes, shall automatically be transferred to the family using the same code.
    • PPP will ensure that not a single beneficiary is left out from the government benefits that they are entitled to.

    How is PPP different from the Aadhaar card?

    • The PPP, mathematically, is an integral number of Aadhaar.
    • While Aadhaar represents an individual as a unit, a PPP represents a family as a unit. Most of our government schemes are structured around the family.
    • It is not structured around an individual.
    • For example, ration eligibility is there for the family but the family can split it into various members as long as they are above 18 years and say they are separating entitlements for all individuals.

    Will it be mandatory for every family of Haryana to get PPP?

    • No, it will not be mandatory for every family of the state to obtain a PPP.
    • But, PPP is mandatory for families availing benefits under government schemes.
    • Also, whenever a family wants to avail any government scheme, it will have to first get a PPP to be eligible.

    The logic behind

    • Haryana officials said although there is a union government’s Aadhaar card, it contains individual’s details and does not cater to the entire family as a unit.
    • In certain circumstances, it may not be possible for a state government to keep track of all the families residing in the state.
    • Although the ration card system is there, it is not updated and does not contain adequate family records.
    • With the PPP, it will be easier for the state government to maintain a complete database of all the state dwellers.

    How would it work?

    • To begin with, the government has already linked PPP with three social security schemes – old age Samman allowance, divyang pension, and the widow and destitute women pension scheme.
    • For instance, when a family member turns 60, they will automatically get a message through the software and will automatically start getting benefits of the old-age pension if they meet the required criteria.
    • Similarly, the teenagers will get messages on turning 18 years old and shall become eligible for various government schemes that will be notified to them through the software.

  • Denmark’s artificial energy island project

    The Danish government has approved a plan to build an artificial island in the North Sea as part of its effort to switch to green energy.

    The Energy Island concept provides an innovative solution for countries like India grappled with the scarcity of land required for RE projects!

    What is Energy Island?

    • An energy island is based on a platform that serves as a hub for electricity generation from surrounding offshore wind farms.
    • The idea is to connect and distribute power between Denmark and neighbouring countries.

    What is the Danish project?

    • Denmark has already entered into agreements with the Netherlands, Germany and Belgium to begin the joint analysis of connections in the energy island.
    • The project is being called the largest construction project to be undertaken in Denmark’s history with an estimated cost of DKK 210 billion.
    • In June 2020, the Danish Parliament decided to initiate the construction of two energy islands, which will export power to mainland Denmark and neighbouring countries.
    • One of these islands will be located in the North Sea and the second island, called the island of Bornholm, will be located in the Baltic Sea.
    • The artificial island will be located about 80 km into the North Sea and the majority of it will be owned by the Danish government.

  • What are Government Securities (G-Secs)?

    The RBI has said that it would allow retail investors and other small investors direct access to its government securities trading platform.

    What are G-Secs?

    • These are debt instruments issued by the government to borrow money.
    • The two key categories are:
    1. Treasury bills (T-Bills) – short-term instruments which mature in 91 days, 182 days, or 364 days, and
    2. Dated securities – long-term instruments, which mature anywhere between 5 years and 40 years

    Note: T-Bills are issued only by the central government, and the interest on them is determined by market forces.

    Why G-Secs?

    • Like bank fixed deposits, g-secs are not tax-free.
    • They are generally considered the safest form of investment because they are backed by the government. So, the risk of default is almost nil.
    • However, they are not completely risk-free, since they are subject to fluctuations in interest rates.
    • Bank fixed deposits, on the other hand, are guaranteed only to the extent of Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

    Who can invest in Corporate Bonds and Government Securities?

    • Pension Funds: Pension funds can also invest in both corporate bonds and government securities to ensure long-term stability and growth in their investment portfolio. .
    • Retail Investors: Retail investors, including individual investors, can invest in both corporate bonds and government securities.
    • Insurance Companies: Insurance companies can invest in both corporate bonds and government securities as part of their investment portfolio. The search results indicate that insurance companies often invest in a mix of low-risk and high-yield assets, with government securities providing lower risk and corporate bonds offering higher returns.

    Retail investors and G-Secs

    • Small investors can invest indirectly in g-secs by buying mutual funds or through certain policies issued by life insurance firms.
    • To encourage direct investment, the government and RBI have taken several steps in recent years.
    • Retail investors are allowed to place non-competitive bids in auctions of government bonds through their Demat accounts.
    • Stock exchanges act as aggregators and facilitators of retail bids.

    Try this PYQ:

    Consider the following statements:

    1. The Reserve Bank of India manages and services the Government of India Securities but not any State Government Securities.
    2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
    3. Treasury bills offer are issued at a discount from the par value.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 Only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    Why the current proposal?

    • The g-sec market is dominated by institutional investors such as banks, mutual funds, and insurance companies. These entities trade in lot sizes of Rs 5 crore or more.
    • So, there is no liquidity in the secondary market for small investors who would want to trade in smaller lot sizes.
    • In other words, there is no easy way for them to exit their investments.
    • Thus, currently, direct g-secs trading is not popular among retail investors.

    What will the current proposal do?

    • The details are not out yet. However, the RBI’s intention is to make the whole process of g-sec trading smoother for small investors.
    • By allowing people to open accounts in RBI’s e-kuber system, it is hoping to create a market of small investors who will invest in these instruments.

    Why such a move?

    • The RBI is the debt manager for the government.
    • In the forthcoming financial year, the government plans to borrow Rs 12 lakh crore from the market.
    • When the government demands so much money, the price of money (i.e., the interest rate) will move up.
    • It is in the government’s and RBI’s interest to bring this down.
    • That can only happen by broadening the base of investors and making it easier for them to buy g-secs.

  • [pib] Hathkargha Samvardhan Sahayata (HSS) Yojana

    The Ministry of Textiles introduced the technology up-gradation scheme called Hathkargha Samvardhan Sahayata (HSS) Yojana.

    Much recently, in the budget, the Mega Investment Textiles Parks (MITRA) Scheme was launched.

    HSS Yojana

    • This scheme is introduced as an up-gradation scheme under National Handloom Development Programme (NHDP) and Comprehensive Handloom Cluster Development Scheme (CHCDS) in 2015-16.
    • It aims to provide upgraded looms/accessories to handloom weavers to improve the quality of the fabric and enhance productivity.
    • Under the scheme, the Union Govt bears 90% of the cost of looms/accessories.
    • It is designed for all the weavers, including SC/ST/OBC and women.
    • The performance of this scheme will be evaluated by independent third-party agencies.

  • [pib] MCA21 Version 3.0

    The Ministry of Corporate Affairs (MCA) will launch data analytics-driven MCA21 Version 3.0.

    What is MCA 21?

    • MCA21 is an e-Governance initiative of Ministry of Corporate Affairs (MCA) that enables easy and secure access of the MCA services to the corporate entities, professionals and citizens of India.
    • It is the first Mission Mode e-Governance project of GoI.

    Try this PYQ:

    Q.Which one of the following is not a feature of Limited Liability Partnership firm?

    (a) Partners should be less than 20

    (b) Partnership and management need not be separate

    (c) Internal governance may be decided by mutual agreement among partners

    (d) It is a corporate body with perpetual succession

    MCA21 3.0

    • MCA21 V3 is a technology-driven forward-looking project, envisioned to strengthen enforcement, promote Ease of Doing Business, enhance the user experience, and facilitate seamless integration and data exchange among Regulators.
    • The project will have Micro-services architecture with high scalability and capabilities for advanced analytics.
    • It will have additional modules for e-Adjudication, e-Consultation and Compliance Management.
    • Aligned with global best practices and aided by emerging technologies such as AI and ML, MCA21 V3 is envisioned to transform the corporate regulatory environment in India.

    Components of MCA21 V3

    • E-Scrutiny: MCA is in process of setting up a Central Scrutiny Cell which will scrutinise certain Straight Through Process (STP) Forms filed by the corporates on the MCA21 registry and flag the companies for more in-depth scrutiny.
    • E-adjudication: E-adjudication module will provide a platform for conducting online hearings with stakeholders and end to end adjudication electronically.
    • E-Consultation: To automate and enhance the current process of public consultation on proposed amendments and draft rules etc., e-consultation module of MCA21 v3 will provide an online platform.
    • Compliance Management System (CMS): CMS will assist MCA in identifying non-compliant companies/LLPs, issuing e-notices to the said defaulting companies/LLPs etc.

  • [pib] Startup India Seed Fund Scheme

    Startup India Seed Fund Scheme (SISFS) has been approved for the period of next four years starting from 2021-22.

    Seed Fund Scheme

    • The scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
    • 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India.
    • The scheme is expected to support about 3600 startups.

    Q.Discuss various inherent non-policy challenges to Start-ups in India.(150W)

    What is Seed Funding?

    • Seed funding or seed-stage funding is a very early investment which aims at helping a business grow and generating its own capital.
    • Also referred to as seed money or seed capital, investors often get an equity stake in exchange for the capital invested.
    • The investors can themselves be the founders and use their savings as seed money for their new company — also known as bootstrapping.

    Why Seed Funding matters?

    • It is a fact that starting a new business and lifting it up off the ground is a huge ask for most entrepreneurs and it only gets tougher with capital constraints.
    • Seed funding helps get things started before the business earns any revenue.
    • It is an effective solution for startups and growing businesses as it provides the much-needed early monetary support.
    • It can cover everything from infrastructure costs, marketing and development costs as well as the cost of initial hiring. Investment is the fuel of any business and seed funding is the first drop of this fuel.
    • As seed money becomes much-needed cash reserve or working capital, not having it is one of the main reasons for failure.

    Various options for Seed Funding

    • Crowdfunding
    • Corporate seed funds
    • Incubators Accelerators
    • Angel investors
    • Personal Savings
    • VC Funding
    • Angel Funds or Angel Networks

  • The reason that India cannot afford to go on a debt binge

    The article discusses the challenges associated with the Budget with a high fiscal deficit.

    Change in government’s stance

    • India’s economy has suffered more than most from the covid pandemic and so have its people.
    • Its economic contraction has put pressure on its government, like so many others, to respond.
    • Until this week, government’s response had been relatively restrained.
    • The government implied that any welfare-promoting and growth-enhancing measures had to stand on a solid macro-economic foundation.
    • The federal budget for the next financial year, 2021-22, with the fiscal deficit for the current fiscal at 9.5% of gross domestic product (GDP) has changed that optimistic narrative.
    • The government has effectively abandoned its long-term commitment to bring the deficit down to close to 3% of GDP, pitching instead for a gentle descent to 4.5%—six years from now.

    Implications of high fiscal deficit

    • Once the covid pandemic retreats, India might end up with a debt-to-GDP ratio of about 90%, compared to the low 70s at present.
    • It would be saddled with a permanently elevated fiscal deficit and a financial system bogged down by high levels of bad debt.
    • Consumer price inflation has topped the Reserve Bank of India’s target zone of 2%-6% since the covid lockdown began last year.
    • Unlike the US or China, countries in India’s position—which have neither a reserve currency nor strong growth momentum—cannot grow rapidly while exploding their debt.
    • They can’t afford to ignore rating agencies because of their supposed bias, or cock a snook at bond markets and just run the currency presses instead.
    • They need to grow in order to reduce their debt. That’s a very different dynamic.
    • India isn’t so attractive that it can expect vast sums of investment to arrive even if its macro-economic numbers look bad and its sovereign rating is junk.
    • We don’t have a history of deflation, we aren’t hitting the zero lower bound.
    • It’s quite the opposite; we have an economy prone to sustained high inflation.
    • India is not in a position in which it could build really productive assets using sustained deficit.
    • This is still a developing economy, which especially in bad times should tread carefully rather than throw caution to the winds.

    Rationale behind high spending

    • The government is hoping that increased spending will help India grow out of this predicament.
    • The only way India can pull itself out of this jam is if private investment pours into the country, financing projects that push up the country’s potential growth rate.
    • Yet the government, already monopolizing domestic financial savings, seems to want to go to war with global markets as well.

    Consider the question “Fiscal deficit figures for FY21 marks the end of India’s departure from the path of fiscal consolidation. Discuss the challenges posed by such high fiscal deficit to the Indian economy.

    Conclusion

    India’s greatest strength had been his commitment to fiscal responsibility. The path of fiscal adventurism could end up leaving India’s macroeconomy vulnerable.

  • The unmet health challenge

    The article analyses the allocation for the health sector in the Budget and highlights the need for more allocations.

    Need to increase spending on health

    • The Economic Survey argues for the need to increase public spending on healthcare to 2.5-3 per cent of the GDP — it’s about 1.5 per cent currently.
    • The Survey points out that there is not much difference in terms of outcomes and quality between healthcare services in the private sector and such services in public centres.
    • The Economic Survey, therefore, calls for strengthening the National Health Mission (NHM) along with Ayushman Bharat.
    • NHM was initiated in 2005-06 to strengthen public health services.
    • The Ayushman Bharat provide social insurance, thereby financing private sector services with public funds. 
    • The Economic Survey makes a strong pitch for greater regulation of health services in the private sector.

    Break-up of allocation in Budget on health (and well being)

    • The finance minister described “health and well-being” as one of the pillars of the budget in her budget speech and announcing a 137 per cent increase in allocations for it.
    • She placed healthcare, water and sanitation and nutrition as the key components of this pillar.
    • However, the figures in the budget documents reveal a different story.
    • There is an absolute increase of 9.6 per cent in allocations for the Department of Health and Family Welfare that includes NHM and Ayushman Bharat.
    • A 26.8 per cent increase for the Department of Health Research and 40 per cent increase for the AYUSH Ministry do not add up to much since each of them are only 3-4 per cent of the total health budget.
    • A Finance Commission grant of Rs 13,000-crore and Rs 35,000-crore for COVID-19 vaccination are one-time allocations and, therefore, do not strengthen the overall system.
    • The core health service and research ministries (H&FW and AYUSH) have together received only an 11 per cent increase.
    • Even in COVID times, the health services get only 2.21 per cent of the total central budget — down from 2.27 per cent in the 2020-21 budget.
    • Computing for inflation, the increase in allocation for health services alone disappears and actually becomes negative.
    • Water and sanitation received a 179 per cent increase from Rs 21,518 crore to Rs 60,030 crore already earmarked for the flagship schemes, Swachh Bharat and Jal Jeevan Mission.
    • But allocation for nutrition decreased by 27 per cent, with the “new” Poshan 2.0 merely combining the poorly performing Supplementary Nutrition Programme and Poshan project.
    • Added together, health, water and sanitation and nutrition make up the claimed 137 per cent increase in allocation to “health” services — with a real decline in healthcare and nutrition.

    Pradhan Mantri Atma Nirbhar Swasthya Yojana (PMANSY)

    • Finance Minister also announced a new scheme, the Pradhan Mantri Atma Nirbhar Swasthya Yojana, to support the almost 29,000 health and wellness centres in the country.
    • The scheme also envisages the creation of public health laboratories and critical care hospital blocks and virology institutes.

    Concerns with PMANSY

    • PMANSY has an announced allocation of Rs 64,180 crore over six years, but it does not find a place in the present budget documents.
    • But these additional activities could have been slotted in the NHM.
    • Since 2014, the allocation for NHM has been on the wane.
    • Therefore, even the marginal 1.33 per cent increase (from Rs 27,039 crore to Rs 30,100 crore) is a demonstration of the government’s realisation that public services do matter.
    • The allocations of about Rs 10,000-Rs 11,000 crore each year for the PMANSY is not enough for making the public services capable of “universal health coverage”.
    • The High-Level Expert Group on Universal Health Coverage had estimated that by 2020, we need a 114 per cent increase in sub-centres and primary health centres, 179 per cent increase in community health centres and a 230 per cent increase in sub-district and district hospitals.
    • Getting anywhere close to this requires doubling of real allocations every year over a five-year period to reach something like 10 per cent of the budget.
    • In the present budget, it declines to a mere 2.21 per cent.

    Way forward

    • If such public provisioning for universal health coverage can’t be done, then effective low-cost rationalised service system options have to be designed.
    • Insurance schemes only create the mirage of affordability of health services while adding to peoples’ expenses.
    • Community and public services are indisputably the most cost-effective for any society.

    Consider the question “Examine the benefits of the idea of health and well being under which health, water and sanitation and nutrition are clubbed together.”

    Conclusion

    Water and sanitation are meaningful for health, but not if it only inflates the allocation to “Health and Wellbeing”. What we need is the real increase in spending on health.