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Archives: News

  • Nuclear Diplomacy and Disarmament

    Comprehensive Nuclear-Test-Ban Treaty Organisation (CTBTO)

    Why in the News?

    China has rejected President Trump’s claim of secret nuclear tests, reaffirming its commitment to the CTBT amid renewed U.S. calls for nuclear testing and revived Cold War–style tensions.

    About Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO):

    • Establishment: Formed in 1996 under the Comprehensive Nuclear-Test-Ban Treaty (CTBT) to build and operate a verification regime ensuring compliance with the global ban on nuclear explosions.
    • Headquarters: Vienna, Austria.
    • Mandate: To monitor adherence to the CTBT through a global verification system capable of detecting any nuclear test anywhere in the world.
    • Verification System: Operates the International Monitoring System (IMS) with 337 facilities, including seismic, hydroacoustic, infrasound, and radionuclide stations to detect underground, underwater, or atmospheric nuclear tests.
    • Data Centre: The International Data Centre (IDC) analyses and distributes real-time data to member states, providing early warning of suspicious activities.
    • Preparatory Commission: Functions until the CTBT formally enters into force, maintaining operational readiness and supporting states’ verification capabilities.
    • Scientific Applications: The IMS also contributes to tsunami warning systems, atmospheric research, and disaster response, reinforcing the CTBTO’s global utility beyond disarmament.

    Back2Basics: How are CTBT and NPT related?

    • Comprehensive Nuclear-Test-Ban Treaty (CTBT) and the Nuclear Non-Proliferation Treaty (NPT) are closely linked pillars of the global nuclear arms control regime:
      1. Shared Goal: Both aim to prevent nuclear proliferation and promote disarmament.
      2. Scope Difference: The NPT focuses on stopping the spread of nuclear weapons and promoting peaceful nuclear use; the CTBT bans all nuclear explosions for any purpose.
      3. Chronological Link: The NPT (1970) came first, creating the legal framework for non-proliferation; the CTBT (1996) built on it by prohibiting testing, reinforcing the NPT’s disarmament pillar.
      4. Verification and Compliance: The CTBT adds technical verification through the International Monitoring System, complementing NPT’s safeguards under the IAEA.
      5. Disarmament Pathway: Ratification of the CTBT is often viewed as a key step toward fulfilling Article VI of the NPT, which obliges nuclear powers to pursue disarmament.

    Status of the Treaty and Ratification Gap:

    • Adoption: It was adopted by the UN General Assembly in 1996 and opened for signature on September 24, 1996.
    • Membership: As of 2025, 187 states have signed and 178 have ratified the treaty.
    • Enforcement: It will become legally binding only after 44 specific “Annex 2” states, those with nuclear technology at the time ratify it.
    • Pending Ratifications: Eight critical states have not ratified the treaty- China, Egypt, Iran, Israel, and the United States (signatories but unratified), and India, Pakistan, and North Korea (non-signatories).
    • Recent Setback: In 2023, Russia revoked its ratification, though it continues to observe a testing moratorium, weakening the treaty’s political momentum.
    • Global Compliance: Despite legal limbo, a de facto moratorium on nuclear testing has largely held since the 1990s; only North Korea has violated it with tests since 2006.
    • Significance: The CTBT remains a cornerstone of the global non-proliferation regime, its verification network providing both deterrence and transparency even without formal legal enforcement.
    [UPSC 2015] Consider the following countries:

    1.  China 2. France 3. India 4. Israel 5. Pakistan

    Which among the above are Nuclear Weapons States as recognized by the Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as Nuclear Non-Proliferation Treaty (NPT)?

    (a) 1 and 2 only * (b) 1, 3, 4 and 5 only  (c) 2, 4 and 5 only  (d) 1, 2, 3, 4 and 5

     

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Sessions of the Parliament

    Why in the News?

    The Winter Session of Parliament will be held from December 1 to 19, 2025.

    About Parliamentary Sessions:

    • Parliamentary Sessions are formal periods when the Lok Sabha and Rajya Sabha meet to legislate, deliberate, and hold the government accountable.
    • Each session has several sittings for debates, questions, and lawmaking. Under Article 85(1), the President must summon both Houses so that not more than six months elapse between two sessions.
    • Types of Sessions:
      1. Budget Session (Feb–Mar): Begins with the President’s Address; includes Union Budget presentation and debate.
      2. Monsoon Session (Jul–Aug): Focuses on legislative work and national issues.
      3. Winter Session (Nov–Dec): Reviews policies, finalises pending legislation.
      4. Special Session: Called for urgent or commemorative matters (e.g., emergencies or milestones).

    Key Terms Related to Sessions:

    • Summoning (Art. 85(1)): President summons Parliament on Cabinet Committee advice; at least two sessions yearly, with ≤ six-month gap.
    • Adjournment: Temporary suspension of a sitting; business resumes when House reassembles.
    • Adjournment Sine Die: Ends a sitting without fixing a date for the next meeting; followed by presidential prorogation.
    • Prorogation (Art. 85(2)(a)): Formal end of a session by the President; pending bills do not lapse.
    • Dissolution (Art. 85(2)(b)): Ends the Lok Sabha’s tenure; triggers new elections; pending bills in Lok Sabha lapse.
    • Recess: Period between the prorogation of one session and the start of the next.
    • Lame Duck Session: Last session of an outgoing Lok Sabha before the new one forms.
    • Quorum (Art. 100): Minimum attendance for business—55 in Lok Sabha, 25 in Rajya Sabha.
    • Voting (Art. 100):
      • Voice Vote: Members respond “Aye”/“No.”
      • Division Vote: Contested results recorded electronically.
      • Casting Vote: Presiding officer’s tie-breaking vote.
    [UPSC 2024] With reference to the Parliament of India, consider the following statements:

    1. Prorogation of a House by the President of India does not require the advice of the Council of Ministers.

    2. Prorogation of a House is generally done after the House is adjourned sine die, but there is no bar to the President of India proroguing the House which is in session.

    3. Dissolution of the Lok Sabha is done by the President of India who, save in exceptional circumstances, does so on the advice of the Council of Ministers.

    Which of the statements given above is/are correct?

    Options: (a) 1 only (b) 1 and 2 (c) 2 and 3* (d) 3 only

     

  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    India to join Tropical Forest Forever Facility (TFFF) as an ‘Observer’

    Why in the News?

    At the Leaders’ Summit in Belem, Brazil, preceding the COP30, India has announced its decision to join the Tropical Forest Forever Facility (TFFF) as an Observer.

    About Tropical Forest Forever Facility (TFFF):

    • What is it: A global blended-finance mechanism rewarding Tropical Forest Countries (TFCs) for conserving intact forests through annual conservation-linked payments.
    • Payment Design: Provides $4 per hectare annually for protected forest area, with deductions for deforestation or ecosystem degradation verified via satellite data.
    • Institutional Setup: Managed by a TFFF Secretariat (policy and oversight) and a Tropical Forest Investment Fund (TFIF) (financial operations and investment management).
    • Investment Model: The TFIF channels sponsor contributions into sovereign, corporate, green, and blue bonds, explicitly excluding fossil fuel industries.
    • Community Allocation: 20% of total payments earmarked for Indigenous Peoples and Local Communities (IPLCs) to support sustainable livelihoods and rights-based forest governance.
    • Monitoring Mechanism: Conservation outcomes tracked via satellite and third-party verification systems ensuring full transparency and performance-based accountability.
    • Financial Sustainability: Operates as a budget-neutral model, where investment returns fund long-term conservation payments rather than temporary grants.
    • Initial Pledges: Founding commitments include Brazil ($1 bn), Indonesia ($1 bn), Norway ($3 bn over 10 years), Colombia ($250 mn), Netherlands ($5 mn), Portugal (€1 mn); France, China, and UAE have expressed political support.

    Relation to REDD+ Framework:

    • REDD+ Genesis: Launched in 2008 under the UNFCCC, REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation Plus, providing result-based payments for verified emission reductions.
    • Core Difference: While REDD+ rewards verified carbon reductions, TFFF offers annual standing forest payments, maintaining steady conservation incentives.
    • Approach: REDD+ focuses on carbon metrics and offset markets, whereas TFFF bypasses carbon dependency, offering investment-backed, non-offset finance.
    • Objectives Alignment: Both aim to promote sustainable forest management, biodiversity conservation, and enhanced carbon stock in developing nations.
    • Institutional Partners: REDD+ is jointly administered by FAO, UNDP, UNEP, and implemented in 65+ countries; TFFF aligns with these frameworks through transparency and inclusivity principles.
    • Added Value: TFFF strengthens long-term financial resilience of conservation efforts by combining public and private investments with community-centric benefit-sharing.

    India’s Role and Climate Record:

    • Emission Reduction Record: From 2005–2020, India cut emission intensity by 36%, achieving 50% non-fossil installed power capacity ahead of 2030 goals.
    • Carbon Sink Achievement: Between 2005–2021, India added 2.29 billion tonnes CO equivalent through expanded forest and tree cover.
    • NDC Commitments: India’s updated Nationally Determined Contribution (to 2035) targets deeper emission cuts and enhanced carbon sink creation.
    • Strategic Importance: Strengthens South–South cooperation and India’s advocacy for equitable climate responsibility within global negotiations.
    [UPSC 2025] Which one of the following launched the ‘Nature Solutions Finance Hub for Asia and the Pacific’?

    (a) The Asian Development Bank (ADB)*

    (b) The Asian Infrastructure Investment Bank (AIIB)

    (c) The New Development Bank (NDB)

    (d) The International Bank for Reconstruction and Development (IBRD)

     

  • Historical and Archaeological Findings in News

    Piprahwa Relics of Buddha

    Why in the News?

    The sacred Piprahwa relics of Lord Buddha have reached Thimphu, Bhutan, as a goodwill gift from India for the Global Peace Prayer Festival (GPPF).

    About the Piprahwa Relics:

    • Discovery: Unearthed in 1898 by William Claxton Peppe, a British engineer, at Piprahwa (Siddharthnagar, Uttar Pradesh), near the Nepal border.
    • Historical Significance: Identified as ancient Kapilavastu, capital of the Shakya republic, where Prince Siddhartha (Buddha) lived before renunciation.
    • Findings at the Site: A buried stupa yielded a large stone coffer containing:
      • Bone fragments believed to be Buddha’s relics
      • Caskets made of soapstone and crystal
      • A sandstone coffer
      • Over 1,800 ornaments: pearls, rubies, sapphires, gold sheets
    • Legal Custody:
      • The British Crown claimed the relics under the Indian Treasure Trove Act, 1878.
      • Most artifacts were transferred to the Indian Museum, Kolkata.

    Stupas with Buddha’s Relics:

    • After the Buddha’s death (Mahaparinirvana), his cremated relics were divided among 8 kingdoms and a Brahmin named Drona, who coordinated their distribution.
    • Each recipient built a Stupa to enshrine their share of the relics, creating important pilgrimage sites and early centers of Buddhist worship.
    • The 9 stupas were in Rajagriha, Vaishali, Kapilavastu, Allakappa, Ramagrama, Vethadipa, Pava, Kushinagar, and Pippalivana.
    • Emperor Ashoka (3rd century BCE) redistributed the relics from these stupas into thousands of new stupas across his empire.
    • The stupa at Ramagrama is unique because it is believed to remain untouched and still holds the original relics.
    • A typical early Buddhist stupa included a hemispherical mound (anda), a square railing (harmika), a central pillar (yashti) with umbrellas (chatra), and a path for circumambulation (pradakshinapatha).
    [UPSC 2023] With reference to ancient India, consider the following statements:

    1. The concept of Stupa is Buddhist in origin.

    2. Stupa was generally a repository of relics.

    3. Stupa was a votive and commemorative structure in Buddhist tradition. How many of the statements given above are correct?

    Options: (a) Only one (b) Only two* (c) All three (d) None

     

  • Direct Benefits Transfers

    Pradhan Mantri Ujjwala Yojana  (PMUY)

    Why in the News?

    New Delhi CM has announced expanding Ujjwala Yojana to families using traditional stoves or coal heaters to improve air quality and promote clean cooking.

    About Pradhan Mantri Ujjwala Yojana (PMUY):

    • Overview: Introduced in 2016 by the Ministry of Petroleum and Natural Gas to provide clean cooking fuel (LPG) to poor and rural households.
    • Objective: Replace traditional cooking fuels like firewood, dung, and coal with LPG, improving women’s health, reducing indoor pollution, and promoting clean energy.
    • Target and Beneficiaries: Initially aimed to provide 8 crore LPG connections to deprived households by March 2020, with each connection issued in the name of an adult woman from the household.
    • Financial Support: Government provides ₹1,600 per connection, covering the security deposit, first refill, and stove (hotplate)– all free of cost.
    • Subsidy Entitlement: Beneficiaries eligible for up to 12 LPG cylinder subsidies per year (each of 14.2 kg).
    • Eligibility Criteria:
      • Adult woman from a poor household without an existing LPG connection.
      • Must belong to SECC 2011, SC/ST, PMAY, AAY, Forest Dweller, Most Backward Class, or Tea/Ex-Tea Garden Tribe categories.
      • Others can apply under “poor household” category by submitting a 14-point self-declaration.
    • Application Process: Available both online and offline through oil marketing companies.
    • Ujjwala 2.0: Announced in August 2021 to expand coverage by 1 crore new LPG connection, especially targeting migrant workers and urban poor.
      • Financial Assistance: Continued ₹1,600 per connection support with a free stove and first gas cylinder; subsequent refills paid by users.

    Achievements:

    • LPG Coverage Growth: Expanded national LPG coverage from 62% (2016) to 99.8% (April 2021).
    • Employment Generation: Created ~1 lakh jobs in the LPG distribution and logistics network.
    • COVID-19 Relief: Provided 14 crore free refills to PMUY households under the Pradhan Mantri Garib Kalyan Package (PMGKP).
    • Environmental Impact: Significant decline in biomass stove dependence, improving air quality and reducing household emissions.
  • Electoral Reforms In India

    [8th November 2025] The Hindu Op-ed: A wider SIR has momentum but it is still a test case

    PYQ Relevance

    [UPSC 2024] Examine the need for electoral reforms as suggested by various committees with particular reference to the “One Nation-One Election” principle.

    Linkage: The Special Intensive Revision (SIR) ensures clean, verified, and inclusive voter rolls, a prerequisite for implementing “One Nation-One Election”. Both aim to reduce electoral fragmentation and enhance institutional credibility in India’s democracy.

    Mentor’s Comment

    The Election Commission of India (ECI) has initiated the Special Intensive Revision (SIR) of electoral rolls across multiple States and Union Territories, the first such nationwide exercise after 21 years. This is a technical yet politically sensitive process, central to the integrity of India’s democratic machinery. The SIR’s rollout tests administrative preparedness, inclusivity, and transparency ahead of major elections, including those in Bihar. This article decodes the why, what, and how of the SIR, examining its implications for governance, political participation, and electoral legitimacy, all crucial themes for UPSC GS Paper II (Polity & Governance).

    Why in the News

    The Election Commission of India launched the Special Intensive Revision (SIR) on November 4, 2025, across nine States and three Union Territories, following its implementation in Bihar. This is the first SIR in 21 years and only the ninth in India’s 75-year electoral history.

    It marks a significant institutional reform aimed at updating 51 crore voter records of nearly half of India’s electorate across 321 constituencies and 1,843 Assembly segments. Given that the Bihar SIR was a test case plagued by logistical, legal, and political complexities, the pan-India rollout serves as a stress test for India’s electoral infrastructure and citizen inclusion mechanisms.

    Introduction

    The Special Intensive Revision (SIR) represents the most comprehensive voter list update since the early 2000s. It aims to eliminate duplications, include new electors, and ensure clean, verified rolls before upcoming elections. However, the process faces challenges related to citizenship verification, migration, and state-level customisation, revealing both the strengths and vulnerabilities of India’s electoral architecture.

    What is the Special Intensive Revision (SIR)?

    1. Definition: A systematic, state-wise verification and revision of electoral rolls conducted by the Election Commission of India (ECI).
    2. Objective: To ensure accuracy, transparency, and inclusivity in voter registration, enabling free and fair elections.
    3. Scale: Covers 51 crore electors across 321 constituencies involving 5.33 lakh polling stations and 7.64 lakh booth-level agents.
    4. Timeline: Draft roll on December 9, 2025; final roll on February 7, 2026.
    5. Precedent: First SIR in 21 years, after the last comprehensive revision in 2004.

    Why Was a Nationwide SIR Needed?

    1. Electoral Gaps: Regular annual updates failed to address mass migration, duplication, and exclusion errors.
    2. Bihar Experience: The Bihar SIR revealed outdated rolls, multiple entries, and dead voters, pushing ECI to extend the process nationwide.
    3. Inclusivity Goals: To bring marginalised and mobile populations (e.g., migrants, first-time voters) into the democratic fold.
    4. Supreme Court Concerns: Emphasised the need for ‘clean and transparent’ electoral rolls as foundational to electoral legitimacy.

    How is the SIR Different from Regular Roll Revision?

    1. Depth of Verification: Involves door-to-door enumeration and mandatory document verification.
    2. Decentralised Accountability: Booth Level Officers (BLOs) given fixed time frames for inclusion/exclusion decisions.
    3. Transparency Mandate: The term ‘document’ must be entered for each elector to ensure traceability.
    4. Technological Integration: ECI uses data analytics and cross-verification to detect duplication or absence.
    5. Flexibility: Though standardised nationally, procedures vary by State due to differing local challenges and citizenship laws (e.g., Assam).

    How Does the SIR Strengthen Electoral Legitimacy?

    1. Authenticity of Rolls: Builds a citizen-owned voter base, verified through both local and digital checks.
    2. Political Party Engagement: Booth-level agents of political parties ensure collective scrutiny and confidence in the system.
    3. Institutional Collaboration: States are required to provide dedicated staff and avoid officer transfers during the process.
    4. Error Minimisation: Reduction in ‘zero appeals’ cases, i.e., disputes over wrongful exclusions/inclusions.
    5. Legal Sanction: Backed by Supreme Court validation, strengthening constitutional trust in the ECI.

    What Are the Remaining Challenges?

    1. State-Specific Complexities: Tamil Nadu, Kerala, and West Bengal express concerns over exclusion of eligible voters.
    2. Administrative Burden: Requires massive coordination across 21,000+ officers and State governments.
    3. Social Sensitivities: Citizenship verification in Assam and border districts remains politically charged.
    4. Public Trust Deficit: Needs sustained communication to avoid alienation of first-time or marginalised voters.
    5. Past Precedent: The Bihar experience showed that data errors and delayed grievance redress erode legitimacy.

    Conclusion

    The Special Intensive Revision marks a transformative shift in India’s electoral administration. While it reflects institutional momentum and transparency, its success depends on ground-level execution, inter-state coordination, and public confidence. The SIR is both a logistical challenge and a democratic opportunity, a crucial test for the ECI’s credibility in ensuring a clean, inclusive, and verifiable electoral base.

  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    Climate change is driven by human need and greed

    Introduction

    Climate change has long been discussed in terms of rising temperatures and carbon emissions, but historian Sunil Amrith reframes it as a moral and historical crisis. His work The Burning Earth explores how human ambition, industrialisation, and inequality have shaped the Anthropocene. The interview highlights that solving the crisis requires not just technology, but a transformation in values, governance, and global justice.

    Central Ideas and Dimensions

    1. Human Ambition and the Roots of the Climate Crisis
      1. Moral Dimension: Amrith draws from Mahatma Gandhi’s dictum, “The world has enough for everyone’s need but not enough for everyone’s greed.” Industrialisation, driven by greed rather than necessity, transformed humanity’s relationship with nature.
      2. Historical Continuity: Post-industrial societies viewed nature as a source of endless exploitation; colonised nations inherited these extractive systems.
      3. Colonial Legacy: European colonial powers intensified extraction in Asia and Africa, embedding global inequalities in resource use and emissions.
    2. Industrialisation and Technological Faith: A Limited Solution
      1. Technological Optimism: Many assume industrial progress can “fix” climate problems through innovation and decarbonisation.
      2. Historical Warning: Industrialisation was never morally neutral; it was driven by moral ambition and economic expansion.
      3. Inequality in Transition: The Global South is now being asked to decarbonise rapidly despite having contributed less to historical emissions.
      4. Example: The ‘Green Transition’ narrative often benefits rich economies while transferring economic burdens to poorer ones.
    3. Climate Change as a Political, not Merely Technical, Problem
      1. Political Process: Climate negotiations are shaped by historical responsibility and inequality in emission shares.
      2. Distribution of Responsibility: Developed countries hold disproportionate responsibility, yet developing countries bear heavier adaptation costs.
      3. Injustice of Geography: Those least responsible like communities in the Global South face the worst climate impacts.
      4. Global Debate: The question of who should pay and who should adapt is as pressing as the question of how to reduce emissions.
    4. Humanities and the Ethics of Climate Discourse
      1. Beyond Science: Amrith calls for humanities’ involvement, history, anthropology, and moral philosophy, to interpret climate change as a human story.
      2. Changing Relationship with Nature: Understanding industrialisation’s moral and emotional roots can help reshape our relationship with the planet.
      3. Broader Lens: Integrating social, cultural, and ethical frameworks prevents oversimplified “technological salvation” narratives.
    5. The Limits of Techno-fixes and the Role of Human Values
      1. Bill Gates’ View: Technology can solve climate change even if temperatures rise by 1.5°C.
      2. Amrith’s Counterpoint: Even if emissions stopped tomorrow, warming would continue due to locked-in carbon cycles.
      3. Moral Reorientation: Sustainable future demands restraint, compassion, and fairness, not mere efficiency or profit.
      4. Systemic Realisation: Human welfare, not human power, should guide policy; prosperity cannot be measured by GDP alone.

    Conclusion

    Amrith’s argument reframes the climate crisis as a mirror to human civilization reflecting not just carbon levels, but our collective morality. The path ahead demands ethical reawakening, equitable governance, and historical responsibility, not just green technology. Climate change is not a scientific failure; it is a civilizational test of whether humanity can outgrow its own greed.

    PYQ Relevance

    [UPSC 2017] ‘Climate Change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change?
    Linkage: Climate change is a recurring UPSC theme in GS 3 and Essays. This article adds depth by linking human greed and moral failure to India’s climate vulnerability, especially in Himalayan and coastal regions.

  • Goods and Services Tax (GST)

    Where states stand on revenue collections, before and after GST

    Introduction

    Introduced in 2017, the Goods and Services Tax (GST) replaced multiple indirect taxes at both Central and State levels, including excise duty, service tax, and VAT, creating a unified national tax framework. The recent data released by the Central Government for October 2025 indicates a 4.6% year-on-year increase in total revenue collection to ₹1,95,936 crore. However, the state-wise analysis has revealed an emerging concern: while some states have achieved strong revenue growth, others are struggling to reach even pre-GST revenue-to-GDP ratios.

    Why in the News

    The latest data on GST revenue collection highlights contrasting fiscal trajectories across Indian states. Despite record-high GST collections nationally, several states’ tax-to-GDP ratios remain lower than before 2017, indicating a possible erosion of state fiscal autonomy. The issue has gained attention because:

    1. Sixteen states and Union Territories now earn a smaller share of revenue from GST than pre-GST taxes.
    2. The aggregate revenue from subsumed taxes has declined from 6.1% of GDP in 2015-16 to 5.5% in 2023-24.
    3. The average GST-to-GDP ratio over the past seven years is 2.6%, below the pre-GST average of 2.8%.
    4. This reversal is significant as it questions the efficacy of India’s largest tax reform and the viability of fiscal federalism under GST.

    How did GST Change the Tax Landscape?

    1. Unified Tax Framework: GST subsumed indirect taxes such as excise duty, VAT, and service tax under a single national structure, simplifying compliance.
    2. Revenue Flow Shift: Revenue previously collected by states under independent taxes now flows through a shared GST mechanism, altering fiscal control.
    3. Increased Central Dependence: States became dependent on GST compensation cess and Centre’s transfers for revenue stability, altering fiscal autonomy.
    4. Short-term Gains: Initially, GST led to better compliance and formalization, resulting in short-term revenue surges.

    How Are States Performing After GST?

    1. Diverse Outcomes: According to PRS Legislative Research, state-level GST revenues continue to trail the pre-GST levels as a share of GSDP.
    2. Declining Tax-to-GDP Ratio: Aggregate revenue from subsumed taxes fell from 6.1% (2015-16) to 5.5% (2023-24).
    3. Below-Average GST Performance: The seven-year average GST-to-GDP ratio (2.6%) is lower than the pre-GST average (2.8%).
    4. Top Performers: Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Haryana have shown robust post-GST growth in tax collection.
    5. Lagging States: J&K, Punjab, Chhattisgarh, Madhya Pradesh, and Odisha recorded revenue decline from subsumed taxes as a percentage of GSDP.

    Which States Have Been Worst Affected?

    1. Northeastern States: Mizoram, Nagaland, Sikkim, Meghalaya, and Manipur saw an improvement in tax-to-GSDP ratios.
    2. Northern and Central States: Jammu & Kashmir, Punjab, Madhya Pradesh, Chhattisgarh, and Odisha saw a decline in subsumed tax revenues.
    3. Urban-Rural Divide: Industrial and service-oriented states benefited, while agrarian and resource-dependent states witnessed fiscal compression.
    4. GST Compensation End: After 2022, when the GST compensation guarantee ended, fiscal stress intensified for states heavily reliant on the compensation mechanism.

    What Does the Data Reveal About Fiscal Federalism?

    1. Centre-State Revenue Imbalance: 20 out of 36 states/UTs now collect less than 40% of their revenue from GST, deepening fiscal asymmetry.
    2. Medium-term Fiscal Impact: The 15th Finance Commission projected a GST-to-GDP ratio of 7%, but current data reflects underperformance.
    3. Long-term Fiscal Risks: Declining state revenue autonomy may affect social spending and capital expenditure, widening regional disparities.
    4. Compliance Inefficiency: Multiple tax slabs, refund delays, and compliance burdens continue to affect smaller states’ GST efficiency.

    Conclusion

    The GST has achieved its unification objective but has not yet ensured revenue equity across states. While high-compliance, industrial states have benefited, smaller and agrarian states remain fiscally strained. The data underscores the need for recalibrating the GST architecture, simplifying slabs, improving IT infrastructure, and enhancing fiscal transfers, to align with the spirit of cooperative federalism and fiscal balance.

    PYQ Relevance

    [UPSC 2019] Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.

    Linkage: It evaluates the impact of GST on Centre-State revenue balance and indirect tax structure post-2017.

  • [pib] National Social Assistance Programme (NSAP)

    Why in the News?

    PIB has provided an update regarding the progress of National Social Assistance Programme (NSAP).

    About National Social Assistance Programme (NSAP):

    • Overview: Launched on 15 August 1995, NSAP is a Centrally Sponsored Scheme under the Ministry of Rural Development.
    • Objective: To provides financial and food security to individuals living below the poverty line (BPL), fulfilling the Directive Principles of State Policy (Article 41) by supporting the elderly, widows, persons with disabilities, and families suffering the loss of a breadwinner.
    • Coverage: It operates across rural and urban India, covering over 3.09 crore beneficiaries.
    • Components of NSAP:
      1. Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Provides ₹200/month to citizens aged 60–79 and ₹500/month to those 80+, with States adding top-up support.
      2. Indira Gandhi National Widow Pension Scheme (IGNWPS): Offers ₹300/month to widows aged 40–79 and ₹500/month for those 80+.
      3. Indira Gandhi National Disability Pension Scheme (IGNDPS): Extends ₹300/month to persons aged 18–79 with severe disabilities; ₹500/month for those 80+.
      4. National Family Benefit Scheme (NFBS): Grants a one-time ₹20,000 to BPL families on the death of a breadwinner aged 18–59.
      5. Annapurna Scheme: Supplies 10 kg of free food grains/month to senior citizens eligible for IGNOAPS but not receiving pension.

    Implementation and Monitoring Framework:

    • Selection: Eligible beneficiaries identified by Gram Panchayats and Urban Local Bodies.
    • Disbursement: About 94% through Direct Benefit Transfer (DBT) to bank or post office accounts; cash-at-doorstep allowed in special cases.
    • Monitoring: Each State/UT appoints a Nodal Secretary; quarterly progress reports are mandatory, and failure to submit can lead to withholding of funds.
    • Transparency Measures: Integration with Public Financial Management System (PFMS) ensures real-time tracking, Aadhaar linkage, and prevention of duplication.

    Recent Update (2024–25):

    • NSAP disbursed funds of ₹6,143.92 crore (IGNOAPS), ₹2,150.03 crore (IGNWPS), ₹243.74 crore (IGNDPS), and ₹394.29 crore (NFBS & Annapurna).
    • 2.5 crore+ beneficiaries have Aadhaar-linked accounts ensuring transparent payments.
    • Budget for 2025–26: ₹9,652 crore, with IGNOAPS receiving the largest share (₹6,645.9 crore).
    • Digital Life Certification (DLC) mobile app launched in July 2025, enabling Aadhaar-based verification and reducing manual procedures.
    • The programme continues to serve as a core pillar of India’s social safety net, enhancing welfare delivery and inclusion through digitisation, DBT, and Aadhaar authentication.
  • Electoral Reforms In India

    Disclosure of Election Finance

    Why in the News?

    A recent report by the Association for Democratic Reforms (ADR) revealed that over half of registered unrecognised political parties (RUPPs) linked to Bihar have failed to comply with mandatory financial disclosure norms for FY 2023–24.

    Key Findings of ADR Report:

    • Non-Compliance: Over 59% of registered unrecognised political parties (RUPPs) linked to Bihar failed to file either their audit reports or donation statements for FY 2023–24, violating Election Commission of India (ECI) norms.
    • Scope: Of 275 RUPPs reviewed, 184 were from Bihar and 91 from other states. Only 67 parties (24.36%) disclosed both audit and contribution reports.

    Political Funding in India:

    • Overview: Political funding refers to financial resources raised by political parties or candidates to sustain organisational operations and election campaigns.
    • Purpose: Ensures participation in democratic processes, electoral competitiveness, and mass outreach.
    • Sources of Funding:
      • Individuals: Citizens contribute voluntarily; deductions under Section 80GGB (Income Tax Act).
      • Corporates: Donations governed by Section 182 (Companies Act, 2013).
      • State Support: Indirect subsidies (media access, tax exemption) allowed; direct funding prohibited.
      • Electoral Trusts (2013): Channel corporate contributions transparently.
      • Electoral Bonds (2018): Introduced donor anonymity; struck down by Supreme Court (2024) for violating transparency and citizens’ right to information.

    Legal Framework for Political Funding:

    • Representation of the People Act, 1951 (RPA): Governs election conduct, contributions, and maintenance of accounts.
    • Income Tax Act, 1961:
      • Section 13A: Exempts tax only for parties maintaining audited accounts and disclosing donations.
      • Section 80GGB/GGC: Offers tax benefits to individual and corporate donors.
    • Companies Act, 2013:
      • Section 182: Limits corporate donations to 7.5% of average net profits of the last three years.
      • Mandates annual disclosure of political contributions.
    • Election Commission Guidelines: Mandate submission of audited accounts and contribution reports above ₹20,000.

    Mechanisms Governing Political Funding Disclosure:

    • Disclosure Requirements:
      • Under Section 29C (RPA, 1951): Political parties must disclose donations above ₹20,000 to the ECI annually.
      • Under Sections 77–78 (RPA, 1951): Candidates must submit true election expenditure accounts within 90 days (Lok Sabha) or 75 days (Assembly).
      • Violations invite disqualification up to three years (Section 10A).
    • Transparency Gaps:
      • Over 60% of party income from “unknown sources”, mainly due to inadequate enforcement and loopholes.
      • Frequent delays, incomplete disclosures, and absence of independent audits persist.
    • Judicial Oversight:
      • Supreme Court judgments (e.g., PUCL v. Union, 2003) and 2024 ruling on Electoral Bonds strengthened citizens’ right to know funding sources.
    • Reform Recommendations:
      • Bring political parties under the Right to Information (RTI) Act.
      • Lower disclosure threshold from ₹20,000 to ₹2,000.
      • Establish National Election Fund for equitable, state-audited funding.
      • Ensure real-time digital reporting and independent third-party audits.
    [UPSC 2021] Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India?

    Options: (a) Diversion of resources to the purchase of real estate and investment in luxury housing

    (b) Investment in unproductive activities and purchase of precious stones, jewelry, gold, etc.

    (c) Large donations to political parties and the growth of regionalism

    (d) Loss of revenue to the State Exchequer due to tax evasion*

     

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