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

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

    Crucial recommendations by 15th Finance Commission

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

    Horizontal devolution formula

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

    Grants from the Centre conditioned on reforms in states

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

    What are the conditions

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

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

    2) Availability of online accounts

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

    3) Notiflying floor rate for property tax

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

    Changes in limit on net borrowings of state governments

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

    Prospect of huge gaps in states’ revenue in the future

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

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

    Conclusion

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

  • Carbon Watch: India’s first app to assess one’s carbon footprint

    Chandigarh became the first state or UT in India to launch Carbon Watch, a mobile application to assess the carbon footprint of an individual.

    Carbon Footprint

    • A carbon footprint is the total greenhouse gas (GHG) emissions caused by an individual, event, organization, service, or product, expressed as carbon dioxide equivalent.
    • It corresponds to the whole amount of greenhouse gases (GHG) produced to, directly and indirectly; support a person’s lifestyle and activities.
    • Carbon footprints are usually measured in equivalent tons of CO2, during the period of a year, and they can be associated with an individual, an organization, a product or an event, among others.
    • The GHGs whose sum results in a carbon footprint can come from the production and consumption of fossil fuels, food, manufactured goods, materials, roads or transportation.

    Note: An ecological footprint, as explained earlier compares the total resources people consume with the land and water area that is needed to replace those resources. A carbon footprint also deals with resource usage but focuses strictly on the greenhouse gases released due to burning of fossil fuels.

    How does the app Carbon Watch work?

    • As a person downloads the application, they will need to fill details in four parts — Water, Energy, Waste Generation and Transport (Vehicular movement).
    • In the category of Water, the person will be required to inform about the consumption of water.
    • In the Energy category, the details regarding the electricity units consumed every month at the house, monthly bill etc and usage of solar energy will have to be furnished.
    • In the Waste category, the individual will need to inform about the waste generated on their part and their family.
    • In the transport section, the individual will have to inform about the mode of transport used by four-wheeler, two-wheeler or bicycle.

    Try this PYQ:

    As a result of their annual survey, the National Geographic Society and an international polling firm GlobeScan gave India top rank in Greendex 2009 score. What is this score?

    (a) It is a measure of efforts made by different countries in adopting technologies for reducing the carbon footprint

    (b) It is a measure of environmentally sustainable consumer behavior in different countries

    (c) It is an assessment of programs/schemes undertaken by different countries for improving the conservation of natural resources

    (d) It is an index showing the volume of carbon credits sold by different countries

  • Demand for Greater Tipraland

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

    Try this:

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

    What is Greater Tipraland?

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

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

    Try this MCQ:

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

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

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    NAFLD

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

    Why such a move?

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

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

    One Nation One Standard

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

    Main objectives:

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

    Why such a move?

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

    Try this PYQ:

    Consider the following statements:

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

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2


    Back2Basics: Bureau of Indian Standards (BIS)

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

    Union Minister for MSME has inaugurated 50 artisan-based SFURTI clusters, spread over 18 States.

    SFURTI is an off-track scheme compared to other HRD schemes with Hindi acronyms. Similar is the SPARSH scheme for philately.

    SFURTI Scheme

    • Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is an initiative by the Ministry of MSME to promote Cluster development.
    • Khadi and Village Industries Commission (KVIC) is the Nodal Agency for the promotion of Cluster development for Khadi.
    • Under the Scheme, the MSME Ministry supports various interventions including the setting up of infrastructure through Common Facility Centers (CFCs), procurement of new machinery, design intervention, improved packaging and marketing etc.

    Types of clusters

    • SFURTI clusters are of two types i.e., Regular Cluster (500 artisans) with Government assistance of up to Rs.2.5 crore and Major Cluster (more than 500 artisans) with Government assistance up to Rs.5 crore.
    • The scheme focuses on strengthening the cluster governance systems with the active participation of the stakeholders so that they are able to gauge the emerging challenges and opportunities and respond to them.
  • Is UPSC GS Paper 1 your Achilles heel? |A detailed Analysis and Strategy by Sajal sir | Fill Samanvaya for free on-call mentorship

    UPSC by design is an exam that should take just one attempt to crack it. Any further attempt after that must be just to improve your rank. And to accomplish this feat you must perform extremely well in GS mains papers.

    Sajal sir here in this video will help you analyze the UPSC Mains 2020 GS paper 1, explain the changing trend and discuss the strategy for UPSC Mains 2021.

    He also talked about Smash Mains 2021 in the video. For Smash Mains 2021 send your last mains scorecard and evaluated mock test copies to sajal@civilsdaily.com


    Samanvaya: 1-to-1 mentorship for IAS 2021-22

    UPSC IAS preparation is not just about memorizing and information gathering. Neither is it about mindlessly picking up random NCERTs, standard books or spending 5 hours on the Hindu.

    Last month we had a discussion with around 1900 students who were not able to clear prelims even after more than 2 attempts. Many were stuck on mains.

    But why? Even after taking multiple attempts, covering the full syllabus, or taking tests?

    Lack of direction, no guidance, inability to make required necessary changes in their preparation, and an absence of a well-defined strategy were issues common to all. What issues are you facing? Tell us.

    Fill the Samanvaya form for a free on-call mentorship session. We’ll call you within 24 hours.

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  • [Burning Issue] Climate Resilient Agriculture

    India is witnessing a historic mass mobilization of farmers against three new farm laws. The country’s government maintains that these laws are the cure for a longstanding agrarian crisis. While this claim has been analysed from several angles, the environmental angle has often been overlooked. This is no small oversight since the agrarian crisis in India is underpinned by strong environmental vulnerabilities, including those associated with climate change.

    India’s Agriculture: A Backgrounder  

    Agriculture in India is a livelihood for a majority of the population and can never be underestimated.

    Despite the fact that it accounts for as much as a quarter of the Indian economy and employs an estimated 60 per cent of the labour force, it is considered highly inefficient and incapable of solving the hunger and malnutrition problems. Despite progress in this area, these problems have continued to frustrate India for decades.

    (1) Legacy issues

    • Agriculture is the primary source of livelihood for about 58 per cent of India’s population.
    • Most of them have been facing several major constraints such as input supply, credit availability, proper transport, and market facility, etc.

    (2) Land Crunch

    • India accounts for only 2.4 per cent of the global land.
    • The average size of landholding per state is 1.08 hectares, according to the latest agricultural census.
    • Farmers in half the Indian states are marginal (with land less than 1 ha); the remaining are small farmers (landholdings of 1-2 ha).

    (3) Population explosion

    • India’s population touched 1.38 billion in 2020 —17.7 per cent of the world’s population — according to global population data.
    • The country’s population has increased 3.35 times since Independence; by 2027, it will surpass China to become the most populated country in the world.

    What holds Indian farmers on a backfoot always?

    Major constraints in Indian agriculture are:

    • Farming for subsistence makes the scale of the economy in question with a majority of smallholdings.
    • Low-access of credit and the prominent role of unorganised creditors affecting decisions of farmers in purchasing of inputs and selling of outputs
    • Less use of technology, mechanisation and poor productivity for which the first two points are of major concern
    • Very less value addition as compared to developed countries and negligible primary-level processing at farmers level.
    • Poor infrastructure for farming making more dependence on weather, marketing and supply chain suitable for high-value crops.

    Climate Change and Agriculture

    • One of the critical challenges for a country’s food security is climate change and its impact in form of extreme weather events.
    • The predicted 1-2.5 degrees Celsius temperature rise by 2030 is likely to show serious effects on crop yields.
    • High temperatures may reduce crop duration, permit changes in photosynthesis, escalate crop respiration rates and influence pest population.
    • Climate change accelerates nutrient mineralization, hampers fertilizer use efficiency (FUE) and hastens the evapotranspiration in soil.

    Agri sub-sectors and climate change

    (1) Foodgrains

    • Cultivation practices are completely based on climatic situations.
    • For example, in India, an increase in temperature by 1.5°C and a reduction in the precipitation of 2 mm can reduce the rice yield by 3 to 15 per cent.

    (2) Horticulture

    • High temperature causes moisture stress situation, directing to sunburn and cracking symptoms in fruit trees like apricot, apples and cherries.
    • The temperature increase at the ripening stage causes fruit burning and cracking in litchi plantation.

    (3) Animal husbandry

    • Dairy breeds are more prone to heat stress than meat breeds.
    • An increase in metabolic heat production breeds leads to higher susceptibility to heat stress; while the low milk giving animals are resistant.
    • Poultries, no doubt, are severely sensitive to temperature-associated problems, particularly heat stress.

    (4) Fisheries

    • Increasing environmental temperature may cause seasonal betterment in the growth and development of fishes.
    • But it also enhances the dangers to the populations living away from the thermal tolerance zone.

    Burden on Agriculture

    (1) Food Security

    • Nearly 14 per cent of the population (189.2 million) is still undernourished in India, according to the State of Food Security and Nutrition in the World, 2020 report.
    • The Global Hunger Index 2020 placed India at the 94th position among 107 countries.
    • Food production must double by 2050 to match the country’s population and income growth.

    (2) Demand for nutrition

    • Changing demand due to an increase in incomes, globalisation and health consciousness is affecting and going to affect more the production in future. 
    • Demand for fruits and vegetables, dairy products, fish and meat is going to increase in future.

    (3) Trend for processed food

    • Researches, technology improvements, protected cultivation of high-value greens and other vegetables will be more.
    • There will be more demand for processed and affordable quality products.

    (4) Technology intensiveness

    • More competition will be there among private companies giving innovative products, better seeds, fertilizers, plant protection chemicals, customised farm machinery and feed for animals.
    • There would be a requirement of cost-effective ways at competitive prices giving more returns on investment by farmers.

    One point solution: Climate-resilient agriculture

    What is Climate-Resilient Agriculture?

    Climate-resilient agriculture (CRA) is an approach that includes sustainably using existing natural resources through crop and livestock production systems to achieve long-term higher productivity and farm incomes under climate variabilities.

    Why CRA?

    Most countries have been facing crises due to disasters and conflicts; food security, however, is adversely affected by inadequate food stocks, basic food price fluctuations, high demand for agro-fuels, and abrupt weather changes.

    • CRA practice reduces hunger and poverty in the face of climate change for forthcoming generations.
    • It can alter the current situation and sustain agricultural production from the local to the global level, especially in a sustainable manner.
    • Improved access and utilization of technology, transparent trade regimes, increased use of resources conservation technologies, an increased adaptation of crops and livestock to climatic stress are the outcomes.

    Strategies and technologies in CRA

    (1) Tolerant crops

    • Patterns of drought may need various sets of adaptive forms.
    • To reach deficient downpour conditions, early maturing and drought-tolerant cultivars need to be developed.

    (2) Tolerant breeds in livestock and poultry

    • Local or indigenous breeds have the notion to forage for themselves. Indigenous breeds have unique characters that are adapted to very specific eco-systems across the world.
    • They are resistant to droughts, thermo-regulation, ability to walk long distances, fertility and mothering instincts, ability to ingest and digest low-quality feed, and resistance to diseases.
    • These breeds may not be highly productive in terms of meat or milk production, but are highly adaptive to the unpredictable nature and have low resource footprints.

    (3) Water management

    • Water-smart technologies like a furrow-irrigated raised bed, micro-irrigation, rainwater harvesting structure, cover-crop method, greenhouse, etc. can support farmers to decrease the effect of variations of climate.
    • Hence, many researches across the world have been focusing their efforts on the design, development of cost-effective and environmentally friendly water-conserving devices to enhance water use efficiency.

    (4) Agro-advisory

    • Response farming is an integrative approach; it could be called farming with advisories taken from the technocrats depending on local weather information.
    • The success of response farming, viz., decreased danger and enhanced productivity has already been taken in Tamil Nadu and many other states.

    (5) Soil organic carbon

    • Different farm management practices can increase soil carbon stocks and stimulate soil functional stability.
    • Conservation agriculture technologies (reduced tillage, crop rotations, and cover crops), soil conservation practices (contour farming) and nutrient recharge strategies can refill soil organic matter by giving a protective soil cover.
    • Feeding the soil instead of adding fertilizers to the crop without organic inputs is the key point for the long-term sustainability of Indian agriculture.

    GoI moves in this direction

    The convergence of various policy programmes and sectoral plans has been undertaken by the GoI to ensure synergy and effective utilization of existing resources.

    • The National Mission of Sustainable Agriculture was implemented in 2010 under the National Action Plan on Climate Change (NAPCC).
    • It aimed to promote the judicious management of available resources and this was one of the eight missions under NAPCC.
    • The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015 to address the issues of water resources and provide a permanent solution that envisages Per Drop More Crop.
    • The Paramparagat Krishi Vikas Yojana mission was executed to extensively leverage adaptation of climate-smart practices and technologies.
    • To protect soil health, GOI has launched the Soil Health Card scheme with the main objective of analysing cluster soil samples and advocating farmers regarding their land fertility status.
    • Additionally, Neem-Coated Urea was also introduced to minimise the excess addition of urea fertilizers, thereby protecting soil health and supplying plant nitrogen.
    • To encourage farmers with more income benefit and ecosystem protection, programmes such as the National Project on Organic Farming and National Agroforestry Policy was introduced in 2004 and 2014 respectively.

    Way forward

    • The most important pillar of realizing CRA in India is capacity building at all levels.
    • For mobilization and allocation of climate finance, we must follow the principles, such as people’s vulnerability-and livelihood-centred approach, polluter-pays principle and a programmatic approach for implementation of the plans and strategies.
    • Though environmental sustainability is typically a public good, public investments alone will not suffice to effectively address climate change.
    • Achieving climate resilience will require all kinds of professionals, lower and higher, must undergo basic training on how to tackle climate change, from the perspective of each profession and trade.
    • In fact, a whole of society approach is needed—from awareness to education and skill development of all types, with skills, expertise and policy research along with finance, for tackling climate change.

    Conclusion

    • The increase in agriculture-sector expenditure in recent years has been on account of schemes like PM-KISAN, PMFBY, interest subvention and price support and loan waivers, with a focus on providing direct monetary benefits.
    • Apart from efforts aimed at helping the agrarian economy recover, the government should enhance expenditure on agricultural infrastructure.
    • A number of reports have highlighted that farm operations suffered due to infrastructure bottlenecks such as supply chain distortions, non-availability of credit, lack of quality inputs and marketing infrastructure.
    • Instead of cash-based schemes, India needs expenditure enhancing infrastructure for a climate-resilient future.

    References:

    https://theconversation.com/india-protests-farmers-could-switch-to-more-climate-resilient-crops-but-they-have-been-given-no-incentive-154700

    http://www.fao.org/3/nc938en/nc938en.pdf

    https://www.downtoearth.org.in/blog/agriculture/why-india-needs-climate-resilient-agriculture-systems-75381

    https://www.downtoearth.org.in/blog/agriculture/climate-resilient-agriculture-systems-the-way-ahead-75385

     

  • 22nd February 2021| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 23rd February

    GS-1  Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc. 

    GS-4 Attitude.

    Question 1)

    Present the business case for gender equality in our society with suitable illustrations. 10 marks

    Question 2)

    Elaborate on the utility of bicameralism in the India political landscape. What are the implications of the passage of certain bills as Money Bills to bicameralism? 10 marks

    Question 3)

    Expectations should be tempered when we talk of growth next year. As there will be a revival in economic activity on all ends which will probably bear fruit in 2022-23 — FY 2021-22 will be a year of consolidation. In light of this, examine the policy architecture set in by the government and the central bank. 10 marks

    Question 4)  

    What is the main difference between psychological egoism and ethical egoism? Compare and contrast. 10 marks

    home

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

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