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  • States, freebies and the costs of fiscal profligacy

    Context

    Many states are pursuing the freebie culture, which raises several questions.

    About freebies

    • Why do governments give freebies? The obvious motivation for States in expanding freebies is to use the exchequer to build vote banks.
    • Electoral calculations tempt them to place short-term gains ahead of long-term sustainability.
    • Case in which it is necessary? A certain amount of spending on transfer payments to provide safety nets to the most vulnerable segments of the population is not only desirable but even necessary.
    • What is the problem? The problem arises when such transfer payments become the main plank of discretionary expenditure, the spending is financed by debt, and the debt is concealed to circumvent the FRBM targets.
    • Opportunity cost: The more States spend on transfer payments, the less they have for spending on physical infrastructure such as, for example, power and roads, and on social infrastructure such as education and health, which can potentially improve growth and generate jobs.

    Questioning the logic of freebie culture

    • Sustainability: Is borrowing and spending on freebies sustainable?
    • Best use: Is this the best possible use of public money?
    • Opportunity cost: What is their opportunity cost — what is it that the public are collectively giving up so that the government can fund these payments?
    • Checks and balances: Should not there be some checks on how much can be spent on them?

    Where should government spend the borrowed money?

    • Ideally, governments should use borrowed money to invest in physical and social infrastructure that will generate higher growth, and thereby higher revenues in the future so that the debt pays for itself.
    • On the other hand, if governments spend the loan money on populist giveaways that generate no additional revenue, the growing debt burden will eventually implode.

    But what is the problem with freebies if states are confirming to the FRBM targets?

    • Any analysis of State Budgets by the Reserve Bank of India shows that State finances are in good health and that all of them are conforming to the Fiscal Responsibility and Budget Management (FRBM) targets.
    • This is a misleading picture.
    • Off budget borrowing: Much of the borrowing that funds these freebies happens off budget, beyond the pale of FRBM tracking.
    • The typical modus operandi for States has been to borrow on the books of their public enterprises, in some cases by pledging future revenues of the State as guarantee.
    • Effectively, the burden of debt is on the State exchequer, albeit well concealed.
    • The Comptroller and Auditor General of India (CAG) had in fact pointed out that in respect of some States.
    • Huget cost: The costs of fiscal profligacy at the State level can be huge.
    • The amount States borrow collectively every year is comparable in size to the Centre’s borrowing which implies that their fiscal stance has as much impact on our macroeconomic stability as does that of the Centre.
    • The need, therefore, for instituting more effective checks that can make wayward States fall in line is compelling.

    What are the institutional checks and balances? What are the reasons of their failure?

    • 1] Legislature and opposition: In theory, the first line of defence has to be the legislature, in particular the Opposition, whose responsibility it is to keep the Government in line.
    • But the Opposition does not dare speak up for fear of forfeiting vote banks that are at the end of these freebies.
    • 2] Lag in CAG reports: Another constitutional check is the CAG audit which should enforce transparency and accountability.
    • In practice, it has lost its teeth since audit reports necessarily come with a lag, by when political interest has typically shifted to other hot button issues.
    • 3] The market: The market is another potential check.
    • It can signal the health or otherwise of State finances by pricing the loans floated by different State governments differently, reflecting their debt sustainability.
    • But in practice this too fails since the market perceives all State borrowing as implicitly guaranteed by the Centre, never mind that there is no such guarantee in reality.

    Suggestions

    • 1] Amend FRBM Act for complete disclosure: First, the FRBM Acts of the Centre as well as States need to be amended to enforce a more complete disclosure of the liabilities on their exchequers.
    • Even under the current FRBM provisions, governments are mandated to disclose their contingent liabilities, but that disclosure is restricted to liabilities for which they have extended an explicit guarantee.
    • The provision should be expanded to cover all liabilities whose servicing obligation falls on the Budget, or could potentially fall on the Budget, regardless of any guarantee.
    • 2] Centre should impose conditionalities: Under the Constitution, States are required to take the Centre’s permission when they borrow.
    • The Centre should not hesitate to impose conditionalities on wayward States when it accords such permission.
    • 3] Use of financial emergency provision: There is a provision in the Constitution of India which allows the President to declare a financial emergency in any State if s/he is satisfied that financial stability is threatened.
    • This provision has never been invoked so far for fear that this will turn into a political weapon.
    • But the provision is there in the Constitution for a reason.
    • After all, the root cause of fiscal irresponsibility is the lure of electoral nirvana. It will stop only if the political leadership fears punishment.
    • 4] Course correction by the Centre: The Centre itself has not been a beacon of virtue when it comes to fiscal responsibility and transparency.
    • To its credit, it has embarked on course correction over the last few years.
    • It should complete that task in order to command the moral authority to enforce good fiscal behaviour on the part of States.

    Conclusion

    The state governments, as well as the Central government, need to avoid the freebies that harm financial health and cause long-term harm. For that, there is a need to implement the suggestions mentioned above.

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    Back2Basics: FRBM Act

    • The FRBM is an act of the parliament that set targets for the Government of India to establish financial discipline, improve the management of public funds, strengthen fiscal prudence and reduce its fiscal deficits.
    • It was first introduced in the parliament of India in the year 2000 by Vajpayee Government for providing legal backing to the fiscal discipline to be institutionalized in the country.
    • Subsequently, the FRBM Act was passed in the year 2003.

  • AIR-1, Suggested the Best Books for UPSC Preparation from Zero Level

    IAS preparation does never require reading a book page-to-page. Rather, selective study works far better. ‘Experience is the best source’- So, selection of the best books for UPSC preparation should be done after a talk with senior IAS Mentor.

    Table of Content

    To become an IAS officer, you must sit for Civil Service Exam, conducted by Union Public Service Commission every year. The exam consists of 2 successive stages; Prelims and Mains (written & interview). 

    UPSC-CSE exam is considered the toughest and the most unpredictable exam in the country. To clear it successfully, an aspirant will require two most essential things throughout his journey: 1) Proper Materials and 2) Guidance of Mentors. Before proceeding, it’s better to know that the wrong selection of Materials may cost you your dream of IAS.

    Toppers and teachers mention NCERTs are the foundation of UPSC.

    We aren’t to be book collectors. Because so many different books mean so little time. The number of books should be less so that revision and results are excellent. 

    The Complete Advanced Booklist for UPSC Preparation

    Polity:

    1. Indian Polity For Civil Services Examination. Authored by M Laxmikant.

    Economy:

    1. Indian Economy for Civil Services. Authored by Nitin Singhania

    Ancient & Medieval History:

    1. Ancient and Medieval India. Authored by Poonam Dalal Dahiya.

    Modern Indian History:

    1. A Brief History of Modern India. Spectrum Publication
    2. Indian Struggles for Independence. Authored by Bipin Chandra

    Indian Art and Culture:

    1. Indian Art and Culture. Authored by Nitin Singhania

    Environment and Biodiversity: 

    1. Shankar IAS Book

    Geography: 

    1. Indian Geography. Authored by Majid Hussain or Indian Geography authored by D. R Khullar (Read as per your choice)
    2. Certificate Physical and Human Geography:- GC Leong

    General Science:

    1. General Science Books of class-9 and 10 standard

    Current Affairs:

    1. Read a good newspaper. (The Hindu or Indian Express)
    2. Govt. Schemes- CIVILSDAILY Website
    3. Daily Current Affairs- CIVILSDAILY Website
    4. Civilsdaily YouTube Channel

    The Complete Basic Booklist for UPSC Preparation

    Apart from the advanced books, a candidate ought to cover some basic academic books. Because UPSC sometimes asks direct questions from them.

    For Economy: (New Version)

    1. Macroeconomics NCERT, Class-12th standard
    2. Indian Economic Development, Class-11th standard

    For Ancient History: 

    1. Old NCERT by Satish Chandra (Selective Reading)

    Medieval History: 

    1. Old NCERT by Satish Chandra (Selective Reading) 

    Modern Indian History:

    1. Old NCERT by Bipin Chandra (Selective Reading) 

    Art & Culture: 

    1. An Introduction to Indian Art- Class XI NCERT
    2. Heritage Crafts: Living Crafts Tradition of India- NCERT.

    Geography: (New Version)

    1. Fundamental of Physical Geography- XI NCERT
    2. India: Physical Environment-XI NCERT
    3. Fundamentals of  Human Geography- XII  NCERT
    4. India: People and Economy- XII NCERT 

    Now, the question arises, as many new aspirants do: if such well-known sources are widely available, what will successful candidates do in addition to benefiting from their competitors? What additional resources should be used to overcome the large influx of aspirants? Is there hidden or confidential content that only a few people have access to? Such resources, to be honest, do not exist. 

    Remember: despite having all the books, toppers could not be toppers without the guidance of mentors. Their smart preparation, persistence in their studies, self-confidence, thirst for success, initiative to achieve goals, and patience set them apart.

  • India’s new West Asia approach is a welcome break with past diffidence

    Context

    The first summit this week of I2U2, which brings together India, Israel, the United Arab Emirates and the United States – is exploratory in nature.

    I2U2 forum

    • Following the Abraham Accords between Israel and the UAE, I2U2 was founded in October 2021 to address marine security, infrastructure, and transportation challenges in the region.
    • It was known as the ‘International Forum for Economic Cooperation’at the time. At that time, UAE had referred to the new grouping as the ‘West Asian Quad’.
    • I2U2 seeks to empower the partners and encourages them to collaborate more closely, resulting in a more stable region.
    • India is seen as a large consumer market as well as a large producer of high-tech and highly sought-after items in the United States.
    • This has led India to enhance its relationship with Israel without jeopardising its ties with the UAE and other Arab states.

    How I2U2 matters to India

    • India can contribute to peace and prosperity in the region: The initiative signifies the US bet that India can contribute significantly to peace and prosperity in the region.
    • West Asian engagement: It also underlines a new political will in Delhi to break the old taboos on India’s West Asian engagement.
    • Consolidation of  India’s Middle East Policy: The I2U2 marks the consolidation of a number of new trends in India’s Middle East policy that acquired greater momentum in the past few years.
    • What stands out sharply in India’s new thinking in the Middle East is that the summit involves three countries that Delhi had traditionally kept a safe political distance from.

    India-Israel relations

    • Although India was one of the first countries to extend recognition to Israel in 1950, Jawaharlal Nehru held back from establishing full diplomatic relations with the Jewish state.
    •  PV Narasimha Rao reversed that policy in 1992 but he did not travel to Israel nor did he receive an Israeli prime minister.
    • Atal Bihari Vajpayee of the BJP, which had a more empathetic view of Israel, hosted Israeli PM Ariel Sharon in 2003.
    • While the relationship steadily expanded, there was ideological reluctance in Delhi to give the partnership a political profile.
    • In the past few years India imparted a political character to the Israel ties.
    • No backlash from the Arab countries: There was little negative reaction to the more open pursuit of India’s ties with Israel.
    • The problem was never with the Middle East but Delhi’s ideological preconceptions that distorted India’s view of the region.
    • Turkey, now a champion of political Islam, had diplomatic ties with Israel since 1949.
    • Egypt normalised ties in 1980.
    • Under the Abrahamic accords promoted by the Trump Administration, the UAE, Bahrain, Sudan and Morocco set up formal ties with Israel in 2020.

    India’s relations with the Arab countries

    • India’s engagement with Israel was matched by effort to deepen India’s ties with the Arab world.
    •  During his first visit to Israel in 2018, Prime Minister Mode also became the first Indian PM to visit Palestine.
    • Even more important has been the transformation of India’s relations with the Gulf Kingdoms, especially the UAE and Saudi Arabia.
    • India’s traditional preference in the Arab world was for engaging the republics.
    • Engagement with monarchies: Delhi remained wary of engagement with the monarchies, telling itself that they were pro-Pakistan.
    •  No Indian PM visited Saudi Arabia between 1982 and 2010 and UAE between 1981 and 2015.
    • After 2015 India developed strong ties with these governments without a reference to Pakistan.
    • Despite Delhi’s ideological posturing, the Middle East had long ceased to be a political priority for India.
    • In contrast with the past, recently the prime minister has travelled four times to the UAE alone, negotiated a free trade agreement with it, and has ambitious plans for the transformation of bilateral relations.
    • The UAE has also backed India’s 2019 constitutional changes in Kashmir and is ready to invest in the union territory.

    Change in India’s approach to the region

    • India-US ties: For political Delhi, the US and Western policies in the region were a main part of the problem.
    • The immediate focus of Nehru’s policy after independence was to actively oppose US moves in the region in the name of promoting an “area of peace”.
    • That policy had no lasting impact as many regional countries sought active economic, political, and security cooperation with the US and the West.
    • The I2U2 then marks a big break from the anti-Western tradition in India’s approach to the region.
    • Negotiating the terms of joint engagement: In the past, standing up to the West in the Middle East was part of India’s approach, India now is prepared to confidently negotiate the terms of a joint engagement.

    Conclusion

    India’s participation in the West Asian Quad brings Delhi in line with other major powers– including Europe, China, and Russia – to try and engage all parties in the region. The I2U2 sets the stage for a new and dynamic phase in India’s relations with the Middle East.

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    Back2Basics: Abraham Accords

    • The Israel–UAE normalization agreement is officially called the Abraham Accords Peace Agreement.
    • It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) on August 13, 2020.
    • The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalize its relationship with Israel as well as the first Persian Gulf country to do so.
    • Concurrently, Israel agreed to suspend plans for annexing parts of the West Bank.
    • The agreement normalized what had long been informal but robust foreign relations between the two countries.

  • 12th July 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1         Modern Indian history from about the middle of the eighteenth century until the present – significant events, personalities, issues.

    GS-2       Effect of policies and politics of developed and developing countries on India’s interests.

    GS-3        Indian Economy

    GS-4        Ethics & Human Interface

    Question 1)

     

    Q.1 What were the prominent causes behind the recurring tribal movements in the 19th century? Also, discuss the limitations of these movements. (10 Marks)

     

    Question 2)

    Q.2 How does lack of self-reliance in defense technology and manufacturing influence India’s foreign policy options? Suggest the way forward. (10 Marks)

    Question 3)

    Q.3 What are the reasons for the high prevalence of scams in the banking industry in India? What are the implications of such scams for the economy? Suggest the way forward. (10 Marks)

    Question 4)  

    Q.4 While it may seem restrictive, anonymity is one of the greatest strengths of the civil services. Comment in the context of growth of social media in recent times. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 
    CLICK HERE To join Daily AWE

  • RBI sets up system to settle International Trade in Rupees

    RBI has decided to put in place an additional arrangement of international trade for invoicing, payment, and settlement of exports / imports in INR.

    • Banks acting as authorised dealers for such transactions would have to take prior approval from the regulator to facilitate this.
    • All exports and imports under the invoicing arrangement may be denominated and invoiced in Rupee.
    • Exchange rate between the currencies of the two trading partner countries may be market determined.
    • Exporters and importers can now use a Special Vostro Account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees.
    • These accounts can be used for payments for projects and investments, import or export advance flow management, and investment in Treasury Bills subject to Foreign Exchange Management Act, 1999 (FEMA).
    • Also, the bank guarantee, setting-off export receivables, advance against exports, use of surplus balance, approval process, documentation, etc., related aspects would be covered under FEMA rules.

    Nostro and Vostro Accounts

    • Nostro and vostro are terms used to describe the same bank account; the terms are used when one bank has another bank’s money on deposit.
    • They are used to differentiate between the two sets of accounting records kept by each bank.
    • Nostro comes from the Latin word for “ours,” as in “our money that is on deposit at your bank.”
    • Vostro means “yours,” as in “your money that is on deposit at our bank.”

    Why such move?

    • The rupee is at a historic low against the dollar.
    • The mechanism is meant to facilitate trade with countries under sanction.
    • Payments had become a pain point for exporters immediately after the Russia-Ukraine war broke out, especially after Russia was cut off from the SWIFT payment gateway.
    • As a result of the trade facilitation mechanism, we see easing of payment issues with Russia.
    • The move would also reduce the risk of forex fluctuation specially looking at the Euro-rupee parity.
    • We see this as a first step towards 100% convertibility of rupee.
    • It will also help stabilize rupee.

    What does the change mean for exports?

    • Several countries including Sri Lanka and some in Africa and Latin America are facing forex shortage.
    • As such, the new mechanism will help India promote its exports.
    • It will also help buy discounted crude oil from Russia, which now accounts for 10% of all imported crude.

    Will the move help narrow trade deficit?

    • The gap between India’s exports and imports widened to record highs.
    • This puts pressure on the current account deficit, which some economists estimate would nearly double to more than 3% of GDP in FY23.
    • RBI’s decision may not benefit the external account immediately, but over the medium term, demand for dollars may come down.
    • This is partly because opening of new vostro accounts between banks may take some time.

    Back2Basics: Currency Convertibility

    • Convertibility is the ease with which a country’s currency can be converted into gold or another currency through global exchanges.
    • It indicates the extent to which the regulations allow inflow and outflow of capital to and from the country.
    • Currencies that aren’t fully convertible, on the other hand, are generally difficult to convert into other currencies.
    • Having a convertible currency allows a government to pay for goods and services in a currency that may not be the buyer’s own.

    Convertibility of Rupee

    • In order to face the serious current account deficit in the balance of payments, the Government of India introduced the partial convertibility of rupee from March 1, 1992.
    • This was an inevitable move for the expeditious integration of Indian economy with that of the world.
    • Under this system, 60 per cent of the exchange earnings were convertible in rupees at market-determined exchange rate and the remaining 40 per cent were at the officially determined exchange rate.
    • Current account convertibility relates to the removal of restrictions on payments relating to the international exchange of goals, services and factor incomes.
    • Capital account convertibility refers to a similar liberalization of a country’s capital transactions such as loans and investment, both short term and long term.

     

    A bit difficult, but pls take an effort to try this PYQ from CSP 2020:

    If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?

    1. Not depending on short-term foreign borrowings
    2. Opening up to more foreign banks
    3. Maintaining full capital account convertibility

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 1 and 2 only

    (c) 2 only

    (d) 1, 2 and 3

     

    [wpdiscuz-feedback id=”3pp3us2fwp” question=”Please leave a feedback on this” opened=”1″]Post your answers here. Detailed explanation will be provided.[/wpdiscuz-feedback]

     

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  • Parliamentary Committee opposes Mediation Bill

    The Parliamentary Standing Committee on Law and Justice has recommended substantial changes to the Mediation Bill.

    Mediation Bill, 2021

    • Mediation is a voluntary dispute resolution process.
    • It is an informal, confidential, flexible, and non-binding process in which an impartial person called a “mediator” helps the parties to understand the interests of everyone involved, and their practical and legal choices.
    • The Bill requires persons to try to settle civil or commercial disputes through mediation before approaching any court or tribunal.
    • Agreements resulting from mediation will be binding and enforceable in the same manner as court judgments.

    Key features of the Bill

    (1) Pre-litigation mediation

    • Parties must attempt to settle civil or commercial disputes by mediation before approaching any court or certain tribunals.
    • Even if they fail to reach a settlement through pre-litigation mediation, the court or tribunal may at any stage refer the parties to mediation if they request for the same.

    (2) Disputes not fit for mediation

    • The Bill contains a list of disputes which are not fit for mediation.
    • These include disputes: (i) relating to claims against minors or persons of unsound mind, (ii) involving criminal prosecution, and (iii) affecting the rights of third parties.
    • The central government may amend this list.
    • It will apply to mediations conducted in India: (i) involving only domestic parties, (ii) involving at least one foreign party and relating to a commercial dispute (i.e., international mediation).

     (3) Mediation process

    • Mediation proceedings will be confidential, and must be completed within 180 days (may be extended by 180 days by the parties).
    • A party may withdraw from mediation after two sessions.
    • Court annexed mediation must be conducted as per the rules framed by the Supreme Court or High Courts.

    (4) Mediators

    • Mediators may be appointed by: (i) the parties by agreement, or (ii) a mediation service provider (an institution administering mediation).
    • They must disclose any conflict of interest that may raise doubts on their independence.
    • Parties may then choose to replace the mediator.

    (5) Mediation Council of India

    • The central government will establish the Mediation Council of India.
    • The Council will consist of a chairperson, two full-time members (with experience in mediation or ADR), three ex-officio members (including the Law Secretary, and the Expenditure Secretary), and a part-time member from an industry body.
    • Functions of the Council include: (i) registration of mediators, and (ii) recognising mediation service providers and mediation institutes (which train, educate, and certify mediators).

    (6) Mediated settlement agreement

    • Agreements resulting from mediation (other than community mediation) will be final, binding, and enforceable in the same manner as court judgments.
    • They may be challenged on grounds of: (i) fraud, (ii) corruption, (iii) impersonation, or (iv) relating to disputes not fit for mediation.

    (7) Community mediation

    • This may be attempted to resolve disputes likely to affect the peace and harmony amongst residents of a locality.
    • It will be conducted by a panel of three mediators (may include persons of standing in the community, and representatives of resident welfare associations).

    Issues highlighted by the Parliamentary Committee

    • Compulsion: The panel cautioned against making compulsory pre-litigation mediation.
    • Scope for Delay: Making pre-litigation mediation mandatory may actually result in delaying of cases.
    • Judicial intervention: The provision to give higher courts the power to frame rules for mediation was also questioned.
    • Narrower scope: The members questioned the non-applicability of the provisions to non-commercial disputes involving the Government and its agencies.
    • No bar of experienced professionals: The MCI, established to regulate the profession of mediators, may not have representation of practising mediators with adequate experience.
    • Prior approval from centre: The MCI requires prior approval from the central government before issuing regulations related to its essential functions.  It is not clear why such prior approval is required.
    • Domestic conduct of mediation: The Bill applies to international mediations only if they are conducted in India and not outside.

    Why need a law on Mediation?

    • Fast: Because the amount of time necessary for the parties and therefore the Mediator to organize for the mediation is significantly way less as that needed for trial or arbitration, a mediation of dispute can occur relatively early.
    • Flexible: There exists no set formula for mediation. Different Mediators employ different styles. Procedures are often modified to satisfy the requirements of a specific case.
    • Cost Efficient: Because mediation generally requires less preparation, is very less formal than trial or arbitration, and may occur at an early stage of the dispute.
    • Brings Parties Together: Parties can save and sometimes rebuild their relationship like during a family dispute or commercial dispute.
    • Convenient: The parties can control the time, location, and duration of the proceedings to large extent. Scheduling isn’t subject to the convenience of courts.
    • Creative: Resolutions that aren’t possible through arbitration or judicial determination could also be achieved.
    • Confidential: What’s said during mediation are often kept confidential. Parties wishing to avoid the glare of publicity can use mediation to stay their disputes low-key and personal
    • Control: The parties control the result of the mediation and either party has the advantage of terminating the mediation, if it’s felt that it’s not within the interest of the said party.

     

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  • In news: Pardoning Power of the President

    The Supreme Court has held that the Centre was “bound to advise” the President to remit the life sentence of gangster Abu Salem in the 1993 Mumbai blasts case on his completion of 25 years of his jail term.

    What did the SC say?

    • On the appellant completing 25 years of his sentence, the Central government is bound to advise the President for the exercise of his powers under Article 72 of the Constitution.
    • The Centre could itself consider remission on the completion of 25 years’ sentence in terms of Sections 432 and 433 of the Code of Criminal Procedure.

    What is Pardon?

    • A pardon is a government/executive decision to allow a person to be absolved of guilt for an alleged crime or other legal offense as if the act never occurred.

    Why need Pardon?

    • Pardons can be granted when individuals are deemed to have demonstrated that they have “paid their debt to society”, or are otherwise considered to be deserving of them.
    • Pardons are sometimes offered to persons who were either wrongfully convicted or who claim that they were wrongfully convicted.
    • Pardons are sometimes seen as a mechanism for combating corruption, allowing a particular authority to circumvent a flawed judicial process to free someone that is seen as wrongly convicted.

    What is the Article 72?

    • Article 72 says that the president shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offense.
    • There are five different types of pardoning:
    1. Pardon: means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
    2. Commutation: means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
    3. Reprieve: means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
    4. Respite: means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
    5. Remission: means changing the quantum of the punishment without changing its nature, for example reducing twenty year rigorous imprisonment to ten years.

    Cases as specified by art. 72

    In all cases where the punishment or sentence:

    • is by a court-martial
    • is for an offence against any law relating to a matter to which the executive power of the Union extends
    • is a sentence of death

    Nature of the Pardoning Power

    • The pardoning power of the president is not absolute. It is governed by the advice of the Council of Ministers.
    • This has not been discussed by the constitution but is the practical truth.
    • Further, the constitution does not provide for any mechanism to question the legality of decisions of presidents or governors exercising mercy jurisdiction.
    • But the SC in Epuru Sudhakar Case has given a small window for judicial review of the pardon powers of President and governors for the purpose of ruling out any arbitrariness.
    • The court has earlier held that court has retained the power of judicial review even on a matter which has been vested by the Constitution solely in the Executive.

    Some traditions

    • It is important to note that India has a unitary legal system and there is no separate body of state law.
    • All crimes are crimes against the Union of India.
    • Therefore, a convention has developed that the governor’s powers are exercised for only minor offenses.
    • While requests for pardons and reprieves for major offenses and offenses committed in the UTs are deferred to the President.

    Try this PYQ:

    Who/Which of the following is the custodian of the Constitution of India?

    (a) The President of India

    (b) The Prime Minister of India

    (c) The Lok Sabha Secretariat

    (d) The Supreme Court of India

     

    [wpdiscuz-feedback id=”crdo8vqaam” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • United Nations’ World Population Prospects (WPP)

    The 2022 edition of the United Nations’ World Population Prospects (WPP) was released.

    Why in news?

    • India is projected to surpass China as the world’s most populous country in 2023.

    What is the World Population Prospects?

    • The Population Division of the UN has been publishing the WPP in a biennial cycle since 1951.
    • Each revision of the WPP provides a historical time series of population indicators starting in 1950.
    • It does so by taking into account newly released national data to revise estimates of past trends in fertility, mortality or international migration.

    Main takeaways for the global population

    (1) Slow pace of growth

    • The world’s population continues to grow, but the pace of growth is slowing down.
    • The global population is expected to grow to around 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.
    • In 2020, the global growth rate fell under 1% per year for the first time since 1950.

    (2) Region-wise differential

    • Rates of population growth vary significantly across countries and regions.
    • More than half of the projected increase in global population up to 2050 will be concentrated in just eight countries- Congo, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines and Tanzania.
    • Disparate growth rates among the world’s largest countries will re-order their ranking by size.

    (3) Ageing population

    • The population of older persons is increasing both in numbers and as a share of the total.
    • The share of the global population aged 65 years or above is projected to rise from 10% in 2022 to 16% in 2050.
    • The report suggests measures for ageing population by improving the sustainability of social security and pension systems and by establishing universal health care and long-term care systems.

    (4) Decline in fertility rate

    • A sustained drop in fertility has led to an increased concentration of the population at working ages (between 25 and 64 years), creating an opportunity for accelerated economic growth per capita.
    • This shift in the age distribution provides a time-bound opportunity for accelerated economic growth known as the “demographic dividend”.

    (5) International migration

    • This is having important impacts on population trends for some countries.
    • For high-income countries between 2000 and 2020, the contribution of international migration to population growth (net inflow of 80.5 million) exceeded the balance of births over deaths (66.2 million).
    • Over the next few decades, migration will be the sole driver of population growth in high-income countries.
    • In many of these countries, the outflows were due to temporary labour movements, such as for Pakistan (net flow of -16.5 million), India (-3.5 million), Bangladesh (-2.9 million), Nepal (-1.6 million) etc.

    How reliable is the UN projection, and how do they compare with India’s Census?

    • In India, of course, the Registrar General comes out with a population projection based on the Census.
    • The last such projection was released in 2019 and it was based on Census 2011.
    • The Census projection is slightly lower than the UN projection.
    • Still UN projection is widely acknowledged across the world

    What is the significance of India overtaking China?

    • That India would overtake China has been known for a while.
    • Moreover, in the past, when the world population was still at 5-billion or 6-billion levels, there was a concern about overcrowding.
    • Those concerns no longer exist because the global population is already 8 billion and several countries (including India) have achieved a replacement rate of fertility.
    • The concern now is not about the absolute numbers — India’s population is already 1.4 billion and may go up to 1.6 billion before declining.

     

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  • What is the Nord Stream 1 Gas Link?

    The Nord Stream 1, Germany’s main source of gas from Russia, was recently shut down for scheduled maintenance work.

    Why in news?

    • There are growing concerns in European countries that Russia would shut down its gas supplies in retaliation against the current sanctions against Moscow.

    What is Nord Stream 1?

    • It is a system of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
    • Nord Stream 1 is a 1,224 km underwater gas pipeline that runs from Vyborg in northwest Russia to Lubmin in northeastern Germany via the Baltic Sea.
    • Two further pipelines under construction running from Ust-Luga to Lubmin termed Nord Stream 2.
    • Majority owned by the Russian energy giant Gazprom, the pipeline is the primary route through which its gas enters Germany.

    Worry for Europe

    • There have been growing concerns that there could be further restrictions to European gas supplies.
    • European countries rely on Russian energy for their cold winters.
    • But now they believe that Russia could weaponized their dependency as a response to their sanction due to the conflict in Ukraine.

    What are Europe’s alternative sources of energy?

    • As an alternative source for energy, European countries have increasingly turned towards the US, from whom they purchase liquified natural gas (LNG) that comes via ships.
    • Since ship-delivered gas ends up being far more expensive, there are also attempts to get non-Russian pipeline gas from Norway and Azerbaijan.
    • While EU countries were earlier seeking to phase out fossil fuels and emphasize renewable forms of energy, many are now returning to coal to deal with the energy crisis.

     

     

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  • LINK INSIDE || Join the Pioneers of the most Successful Mentorship Program live on YouTube with Sajal and Sudhanshu Sir || Session at 3:00 PM Today

    LINK INSIDE || Join the Pioneers of the most Successful Mentorship Program live on YouTube with Sajal and Sudhanshu Sir || Session at 3:00 PM Today

    The Session will start at 3:00 pm Today on our Official YouTube channel. Link will be shared at 2:00 pm today. CLICK TO JOIN

    Dear Aspirants,

      We are delighted to invite you to our Live Session on You Tube with Sajal Sir who scored the highest marks in GS in 2017 mains with Sudhanshu sir who has made Current Affairs along with the Answer Writing like a cake walk that even toppers feel writing mains is like writing Civilsdaily Test Series.

    Click here to join

    Harbingers for Toppers

    Sajal sir is not just the topper of the 2017 GS but also since the inception of our mentorship program he has helped many aspirants to secure a good rank. Many aspirants who were stuck in their mains exam were able to crack the exam because of his guidance.

    The Hindu recognizes our efforts too

    The Hindu is the most popular news paper among the UPSC aspirants. Even the Hindu has recognized our efforts and praised for our successful mentorship.

    Free package worth 5000/- along with a Bumper Surprise

    Registered members will get the free Civilsdaily package worth 5000/- The package will be made available for those who will join the live session at 3:00 pm today. This is not just it but a surprise is also waiting that will be revealed tomorrow during the live session.

    One Year Long Plan

    The hurdle with and aspirant is to plan the whole preparation. Only 10% aspirants can do it successfully. Out of these 10% only 1% can follow the timetable and achieve the mini goals they have set. And these are the aspirants who are actually in the race.
    During the webinar mentors will provide you tips on how to balance your current affairs, general Studies and Optional throughout the year along with how to maintain the consistency. They will help you in different segments such as-

    1. How Toppers’ notes are different from normal or just qualified aspirants.
    2. How toppers allocate their time to Optional, GS and Current Affairs.
    3. When and how they do the answer writing.
    4. When do they start the Prelims preparation.

    Ask Anything from during the live session.

    Each aspirant has his/her own issues where he/she finds himself/herself clueless. You can ask your specific queries during the session.

    Session Timing

    The Session will start at 3:00 pm sharp.
    The session will be on our official YouTube channel. Click to subscribe
    Link for the session will be shared at 2:00 PM.
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    Still you want to talk to a mentor personally?

    No worries you can fill the form and we will connect with you a mentor who can help you regarding your specific queries. Click here to fill the form.

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