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  • Explained: One Health Concept

     

    The concept of ‘One Health’ is gaining importance as most of the contagious diseases affecting humans are zoonotic (animal to man origin) in nature. It can be effectively implemented for reducing incidence of emerging zoonotic threats like COVID-19.

    The One Health concept

    • The World Organization of Animal Health, commonly known as OIE (an abbreviation of its French title), summarizes the One Health concept.
    • It says that as “human health and animal health are interdependent and bound to the health of the ecosystems in which they exist”.
    • Circa 400 BC, Hippocrates in his treatise On Airs, Waters and Places had urged physicians that all aspects of patients’ lives need to be considered including their environment; disease was a result of imbalance between man and environment.
    • So One Health is not a new concept, though it is of late that it has been formalized in health governance systems.

    Why accept this model?

    • Of the contagious diseases affecting humans, more than 65% are of zoonotic or animal to man origin.
    • One Health model is a globally accepted model for research on epidemiology, diagnosis and control of zoonotic diseases.
    • One Health model facilitates interdisciplinary approach in disease control so as to control emerging and existing zoonotic threats.
    • Increasing stress on animals due to loss of their habitat would increase scope of zoonotic diseases.

    Why corona is so deadly?

    • Current outbreak of COVID-19 still could not find out the actual source of virus.
    • Even though genomics of the virus has been published ambiguity still exists whether it was from bats, snakes, pangolin, etc.

    Frequent Outbreaks of Zoonotic Diseases

    • Not so long ago, the widespread prevalence of avian influenza in poultry, or bird flu as it commonly became known, created nationwide panic resulting in the culling of millions of poultry birds.
    • It was concern for human health that prompted the extreme reaction and subsequent establishment of protocols; containment of avian influenza is managed quite effectively now.
    • Similarly in 2003, SARS or Severe Acute Respiratory Syndrome emanated suddenly in China and vanished soon.

    Followed by hues and panic

    • These outbreaks culminated emergency response that included extreme measures like travel bans and restrictions.
    • In both cases, panic spread much faster than the virus.
    • Besides drawing a response from governments, these events also brought forth the hitherto forgotten philosophy of One Health.
    • This idea recognizes inter-connectivity among human health, the health of animals, and the environment.

    Why rise in zoonotic outbreaks?

    • As human populations expand, it results in greater contact with domestic and wild animals, providing more opportunities for diseases to pass from one to the other.
    • Climate change, deforestation and intensive farming further disrupt environment characteristics, while increased trade and travel result in closer and more frequent interaction, thus increasing the possibility of transmission of diseases.

    Need for a robust animal health system

    • Private sector presence in veterinary services is close to being nonexistent.
    • Unlike a physician, a veterinarian is always on a house call on account of the logistic challenge of transporting livestock to the hospital, unless they are domestic pets.
    • There could not be a stronger case for reinventing the entire animal husbandry sector to be able to reach every livestock farmer, not only for disease treatment but for prevention and surveillance to minimize the threat to human health.
    • Early detection at animal source can prevent disease transmission to humans and introduction of pathogens into the food chain. So a robust animal health system is the first and a crucial step in human health.

    Conclusion

    • Developing countries like India have a much greater stake in strong One Health systems on account of agricultural systems resulting in uncomfortably close proximity of animals and humans.
    • This builds a strong case for strengthening veterinary institutions and services.
    • Further delay may pave way for emergence of new communicable diseases.

    Way Forward

    • The most effective and economical approach is to control zoonotic pathogens at their animal source.
    • It calls not only for close collaboration at local, regional and global levels among veterinary, health and environmental governance, but also for greater investment in animal health infrastructure.
    • Need of the hour is to scale up such a model across the country and to establish meaningful research collaborations across the world.
    • Health, veterinary, agriculture and life science research institutions and universities can play a lead role.

  • Northern European Enclosure Dam (NEED)

     

    An extraordinary measure to protect 25 million people and important economic regions of 15 Northern European countries from rising seas has been proposed. It is called Northern European Enclosure Dam (NEED) enclosing all of the North Sea.

    Northern European Enclosure Dam (NEED)

    • The scientists have proposed the construction of two dams of a combined length of 637 km — the first between northern Scotland and western Norway.
    • It would be 476 km and with an average depth of 121 m and maximum depth of 321 m; the second between France and southwestern England, of length 161 km, and average depth of 85 m and maximum depth of 102 m.
    • A/c to scientists, separating the North and Baltic Seas from the Atlantic Ocean is considered to be the “most viable option” to protect Northern Europe against unstoppable sea level rise (SLR).
    • They have also identified other regions in the world where such mega-enclosures could potentially be considered, including the Persian Gulf, the Mediterranean Sea, the Baltic Sea, the Irish Sea, and the Red Sea.

    The rationale behind

    • The concept of constructing NEED showcases the extent of protection efforts that are required if mitigation efforts fail to limit sea level rise.
    • While NEED may appear to be “overwhelming” and “unrealistic”, it could be “potentially favourable” financially and in scale when compared with alternative solutions to fight SLR, the research argues.
    • The researchers classify the solutions to SLR into three categories of taking no action, protection, and managed retreat — and submit that NEED is in the second category.
    • While managed retreat, which includes options such as managed migrations, may be less expensive than protection (NEED), it involves intangible costs such as national and international political instability, psychological difficulties, and loss of culture and heritage for migrants.
    • NEED, the paper says, will have the least direct impact on people’s daily lives, can be built at a “reasonable cost”, and has the largest potential to be implemented with the required urgency to be effective.

    Viability of NEED

    • The researchers have estimated the total costs associated with NEED at between €250 billion and €550 billion.
    • They referred to the costs of building the 33.9-km Saemangeum Seawall in South Korea and the Maasvlakte 2 extension of the Rotterdam harbour in the Netherlands as examples,
    • If construction is spread over a 20-year period, this will work out to an annual expense of around 0.07%-0.16% of the GDP of the 15 Northern European countries that will be involved.
    • Also the construction will “heavily impact” marine and terrestrial ecosystems inside and outside the enclosure, will have social and cultural implications, and affect tourism and fisheries.

  • Aditya L1 Mission

     

    NASA’s Parker Solar Probe launched on August 12, 2018 has completed its fourth close approach — called perihelion very recently, whizzing past at about 3.93 lakh km/h, at a distance of only 18.6 million km from the Sun’s surface.

    Aditya L1: Exciting ahead

    • The ISRO is preparing to send its first scientific expedition to study the Sun.
    • Named Aditya-L1, the mission, expected to be launched early next year, will observe the Sun from a close distance, and try to obtain information about its atmosphere and magnetic field.
    • ISRO categorizes Aditya L1 as a 400 kg-class satellite that will be launched using the Polar Satellite Launch Vehicle (PSLV) in XL configuration.
    • The space-based observatory will have seven payloads (instruments) on board to study the Sun’s corona, solar emissions, solar winds and flares, and Coronal Mass Ejections (CMEs), and will carry out round-the-clock imaging of the Sun.
    • Aditya L1 will be ISRO’s second space-based astronomy mission after AstroSat, which was launched in September 2015.

    What is L1?

    • L1 refers to Lagrangian/Lagrange Point 1, one of five points in the orbital plane of the Earth-Sun system.
    • Lagrange Points, named after Italian-French mathematician Josephy-Louis Lagrange, are positions in space where the gravitational forces of a two-body system (like the Sun and the Earth) produce enhanced regions of attraction and repulsion.
    • These can be used by spacecraft to reduce fuel consumption needed to remain in position.
    • The L1 point is home to the Solar and Heliospheric Observatory Satellite (SOHO), an international collaboration project of NASA and the European Space Agency (ESA).
    • The L1 point is about 1.5 million km from Earth, or about one-hundredth of the way to the Sun.

    But why is studying the Sun important?

    • Every planet, including Earth and the exoplanets beyond the Solar System, evolves — and this evolution is governed by its parent star.
    • The solar weather and environment, which is determined by the processes taking place inside and around the sun, affects the weather of the entire system.
    • Variations in this weather can change the orbits of satellites or shorten their lives, interfere with or damage onboard electronics, and cause power blackouts and other disturbances on Earth.
    • Knowledge of solar events is key to understanding space weather.
    • To learn about and track Earth-directed storms, and to predict their impact, continuous solar observations are needed.
    • Every storm that emerges from the Sun and heads towards Earth passes through L1, and a satellite placed in the halo orbit around L1 of the Sun-Earth system has the major advantage of continuously viewing the Sun without any occultation/eclipses.

    Why are solar missions challenging?

    • What makes a solar mission challenging is the distance of the Sun from Earth (about 149 million km on average, compared to the only 3.84 lakh km to the Moon).
    • More importantly the super hot temperatures and radiations in the solar atmosphere make it difficult to study.
    • NASA’s Parker Solar Probe has already gone far closer — but it will be looking away from the Sun.
    • The earlier Helios 2 solar probe, a joint venture between NASA and space agency of erstwhile West Germany, went within 43 million km of the Sun’s surface in 1976.

    Problem of Heat

    • The Parker Solar Probe’s January 29 flyby was the closest the spacecraft has gone to the Sun in its planned seven-year journey so far.
    • Computer modelling estimates show that the temperature on the Sun-facing side of the probe’s heat shield, the Thermal Protection System, reached 612 degrees Celsius, even as the spacecraft and instruments behind the shield remained at about 30°C, NASA said.
    • During the spacecraft’s three closest perihelia in 2024-25, the TPS will see temperatures around 1370°C.

    Hurdles for Aditya L1

    • It will stay much farther away, and the heat is not expected to be a major concern for the instruments on board. But there are other challenges.
    • Many of the instruments and their components for this mission are being manufactured for the first time in the country, presenting as much of a challenge as an opportunity for India’s scientific, engineering, and space communities.
    • One such component is the highly polished mirrors which would be mounted on the space-based telescope.
    • Due to the risks involved, payloads in earlier ISRO missions have largely remained stationary in space; however, Aditya L1 will have some moving components, scientists said.

  • In news: 1946 Royal Indian Navy Mutiny

     

    Seventy-four years ago on February 18, 1946, some 1,100 Indian sailors or “ratings” of the HMIS Talwar and the Royal Indian Navy (RIN) Signal School in Bombay declared a hunger strike, triggered by the conditions and treatment of Indians in the Navy.

    RIN Mutiny

    • A “slow down” the strike was also called, which meant that the ratings would carry out their duties slowly.
    • The morning after February 18, somewhere between 10,000-20,000 sailors joined the strike, as did shore establishments in Karachi, Madras, Calcutta, Mandapam, Visakhapatnam, and the Andaman Islands.
    • One of the triggers for the RIN strike was the arrest of a rating, BC Dutt, who had scrawled “Quit India” on the HMIS Talwar.
    • The day after the strike began, the ratings went around Bombay in lorries, waving the Congress flag, and getting into scraps with Europeans and policemen who tried to confront them.

    Their demands

    While the immediate trigger was the demand for better food and working conditions, the agitation soon turned into a wider demand for independence from British rule. The protesting sailors demanded:

    • release of all political prisoners including those from Netaji Subhas Chandra Bose’s Indian National Army (INA),
    • action against the commander for ill-treatment and using insulting language,
    • revision of pay and allowances to put RIN employees on a par with their counterparts in the Royal Navy,
    • demobilisation of RIN personnel with provisions for peacetime employment,
    • release of Indian forces stationed in Indonesia, and better treatment of subordinates by their officers

    Upsurge of nationalism

    • The RIN strike came at a time when the Indian nationalist sentiment had reached fever pitch across the country.
    • The winter of 1945-46 saw three violent upsurges: in Calcutta in November 1945 over the INA trials; in February 1946, also in Calcutta, over the sentencing of INA officer Rashid Ali; and, in that same month, the ratings’ uprise in Bombay.
    • This chain of events led to the “mounting fever of excitement affecting the whole political climate”.
    • Soon, ordinary people joined the ratings, and life came to a virtual standstill in both Bombay and Calcutta. There were meetings, processions, strikes, and hartals.
    • In Bombay, labourers participated in a general strike called by the Communist Party of India and the Bombay Students’ Union. In many cities across India, students boycotted classes in solidarity.
    • The response of the state was brutal. It is estimated that over 220 people died in police firing, while roughly 1,000 were injured.

    Significance of the events

    • The RIN revolt remains a legend today. It was an event that strengthened further the determination among all sections of the Indian people to see the end of British rule.
    • Deep solidarity and amity among religious groups was in evidence, which appeared to run counter to the rapidly spreading atmosphere of commuanal hatred and animosity.
    • However, communal unity was more in the nature of organisational unity than a unity among the two major communities.
    • Within months, India was to be devoured by a terrible communal conflagration.

    Final nail in the coffin

    • This revolt was different from the other revolts in the sense that, after 1857 it was the first time that the British realized that the Royal Indian forces were no more obedient to the British commands and were in concurrence with the overall defiant nationalist sentiments prevailing in the entire country.
    • Mutinies are usually confined to a particular station, establishment or ship. However, this was the first instance when the entire service joined the revolt.
    • Most striking feature was that it was directed against the British government and not against superior officers – not a single officer, British or Indian, was harmed.
    • Fearless action by the masses was an expression of militancy in the popular mind. Revolt in the armed forces had a great liberating effect on the minds of people.
    • It displayed that the armed forces no longer obeyed the British authority rather it was the nationalist leaders who held sway over them. The RIN revolt was seen as an event marking the end of British rule.

    Aftermath

    • The leaders realized that any mass uprising would inevitably carry the risk of not being amenable to centralized direction and control. Besides, now that independence and power were in sight, they were eager not to encourage indiscipline in the armed forces.
    • It was immediately after this revolt that PM Atlee dispatched the Cabinet Mission to India, so it is also inferred that the mutiny hastened the process of transfer of power to India.
    • It is also important to mention that the revolt came to an end after the nationalist leaders, Sardar Patel and Mohammad Ali Jinnah on receiving a request to intervene by the British, issued a statement calling upon the mutineers to surrender.

  • Specie in news: ‘World’s largest’ subterranean fish

     

    Systematic exploration of the Meghalayan caves has been underway for almost 30 years and hundreds of kilometres of cave passages have been explored and mapped. In a cave in a remote forested area of Meghalaya’s Jaintia Hills a research expedition found large specie of a subterranean fish (occurring under the earth’s surface).

    About the fish

    • The blind fish was over 40 cm. It has not been named so far.
    • It is nearly five times the mean length (85mm/8.5 cm) for all known subterranean fish to date.
    • The only other species exceeding 300mm (30 cm) in length are eel-like Synbranchidae with nothing like the bulk of the new fish.
    • The 250-known subterranean (occurring under the earth’s surface) fish species around the world measure only around 8.5 cm on average.
    • The specialists say that possibly one (or more) populations of these fish became isolated deeper in the caves and over generations became adapted to the dark, losing their eyes in the process.

    Closest resemblance

    • The experts feel that the fish species is very similar to the Golden Mahseer or the Tor Putitora, one of the most famous game fish of the Himalayan rivers.
    • Unique characters that distinguishes it from the Golden Mahseer is the lack of pigmentation, a lack of eyes and of course, its subterranean habitat – being locked in caves.
    • There are ‘normal’ Golden Mahseer in the area too but there is not much surface water (at least in the dry winter months) so fish end up in the cave pools and underground rivers.

    Features of Subterranean ecosystems

    • Subterranean ecosystems are considered extreme, high-stress environments characterised by darkness, truncated food webs and food scarcity.
    • Despite this, they harbour exceptional vertebrate and invertebrate taxa (21,000+ species), many of which are evolutionarily unique, and relics of ancient fauna given their long-term isolation.
    • Many cave fish show different adaptations – some don’t have eyes, some have reduced eyes, some don’t have fins, some have weird body shapes.

  • 19th February 2020| Daily Answer Writing Enhancement

    Important Announcement: In the month of February, we will be covering UPSC Mains GS questions of 2019. This will give you real time experience of attempting GS questions of UPSC Mains.

     

    Question 1)

    Explain how the foundations of the modern world were laid by the American and French Revolutions. (15 Marks)

    Question 2)

    “The reservation of seats for women in the institution of local self-government has had a limited impact on the patriarchal character of the Indian political process”. Comment. (15 marks)

    Question 3)

    What are the reformative steps taken by the government to make food grain distribution system more effective? (15 Marks)

    Question 4)

    “Where there is righteousness in the heart, there is beauty in the character. When there is beauty in the character, there is harmony in the home. When there is harmony in the home, there is order in the nation. When there is order in the nation, there is peace in the world.” – A.P.J. Abdul Kalam. What does this quotation mean to you? (10 marks)

    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

  • May the Force be strengthened

    Context

    The functioning of the CRPF needs to be revisited.

    Historical background and present status of CRPF

    • Crown Representative Police: In the wake of Independence, a contentious administrative issue was over the retention of CRP (Crown Representative Police).
      • The question over the relevance of the force: As the Constitution designated ‘law and order’ as a State subject, the relevance of having a Central police force was questioned by everyone
      • But Deputy Prime Minister and Home Minister Sardar Vallabhbhai Patel argued vehemently and boldly in favour of it.
    • Present-day relevance of the force
      • From having just two battalions as the CRP, the Central Reserve Police Force (CRPF) has now expanded to being a three-and-a-half lakh-strong force.
      • Consisting of specialist wings like-
      • The Rapid Action Force.
      • The COBRA (Commando Battalion for Resolute Action).
      • The Special Duty Group.
      • Largest Paramilitary force: It is the largest paramilitary force in the world and no other security force of the country has seen expansion at such a rapid rate.
    • Importance of the force
      • Security to the country: Providing integrated security to a diverse country of continental size is not an easy task.
      • Immediate solution situation: Resolving certain conflicts requires immediate solutions for which regular armed forces cannot be deployed.
      • Peacekeeper of the nation: For the reason cited above, we require paramilitary forces, and the CRPF is the most sought-after one because of its flexibility and versatility.
      • The force has earned its place as the ‘peacekeeper of the nation’.

    Problems faced by the CRPF

    • A year after Pulwama attack, it is time for the nation to take a relook at the main agency dealing with conflicts in different territorial zones. The following 3 are the major concerns of the force.
    • 1. Pressure taking its toll: The frequent movements lock, stock and barrel are taking its toll.
      • There are increasing cases of suicides and fratricides.
      • The anguish caused because of prolonged periods of duty away from one’s family members adds to the pressure experienced the soldiers having their fingers constantly on the trigger guard.
    • What is being done or needs to be done to address the problem?
      • 100-days leave: Though the Home Minister recently stated that CRPF jawans would get to spend 100 days with their families every year, considering the present levels of commitment, 100 days of leave is an impossible dream for a soldier.
      • Need to revisit the decision of assigning exclusive operations: An easier way out here would be to revisit the government’s decision on tasking specific Central Paramilitary Forces exclusively with certain operations.
      • It should be compulsory for recruits to all Central Police Forces to be deployed to anti-insurgency roles during their first 15 years of service.
      • They can be shifted, in the next 10 years, to border duties.
      • The last phase of their career should be in static duties.
    • 2. Rehabilitation of retired personnel
      • Care of welfare and morale: As the Force is deployed to the last man, the welfare and morale of the soldiers need to be taken care of.
      • No rehabilitation policy: A large number of personnels are taking voluntary retirement, but there is no rehabilitation policy.
    • What is being done or needs to be done to address the problem?
      • The creation of a Welfare and Rehabilitation Board has not made any impact. Provision of canteen facilities, without tax exemption, hardly gives the soldiers any relief.
      • Another demand that needs to be considered is that of One Rank, One Pension scheme.
    • 3. Leadership issue
      • It is high time the Force develops home-grown leadership.
      • Elements like healthy work culture, ethos and regimentation are very crucial for any armed force and they are best guarded by officers born on the cadre.
    • Steps taken to address the issue
      • The long-overdue Non-Functional Financial Upgradation (NFU) materialised only after the judicial intervention.
      • However, the top leadership- made up of IPS officers on deputation- is reluctant to implement it.

    Conclusion

    The first anniversary of the Pulwama attacks should enable all stakeholders to devise ways and means to plug the loopholes and address the system failures in a Force that still remains the most formidable in internal security matters.

     

  • [Burning Issue] 15th Finance Commission and its recommendations (Part II)

     

     

    Key recommendations in the first report (2020-21 period) include:

     

    Devolution of taxes to states

    • The share of states in the centre’s taxes is recommended to be decreased from 42% during the 2015-20 period to 41% for 2020-21.
    • The 1% decrease is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the central government.
    • The individual shares of states from the divisible pool of central taxes are provided in table in the annexure.

    Why need devolution formula?

    • The Finance Commission is required to recommend the distribution of the net proceeds of taxes of the Union between the Union and the States (commonly referred to as vertical devolution), and the allocation between the States of the respective shares of such proceeds (commonly known as horizontal devolution).
    • The FC determines the States’ aggregate share in the divisible pool and its horizontal devolution among the States.

    • The basic objective of a horizontal devolution is to enable the States to provide basic public goods and services with equivalent tax effort. Achieving this may entail:
      1. filling up the vertical fiscal gap of the States;
      2. providing horizontal equity (by providing higher share to poorer regions);
      3. equalizing the fiscal capacities of States (revenue equalization);
      4. providing for cost differentials in States for basic public service (expenditure equalization); and
      5. ensuring that the States have enough incentives to mobilise own revenue and spend them appropriately in an efficient manner.

    Various criteria used

    Criteria 14th FC

    2015-20

    		 15th FC

    2020-21
    Income Distance 50.0 45.0
    Population (1971) 17.5 –
    Population (2011) 10.0 15.0
    Area 15.0 15.0
    Forest Cover 7.5 –
    Forest and Ecology – 10.0
    Demographic Performance – 12.5
    Tax Effort – 2.5
    Total 100 100

     

    Income distance: Income distance is the distance of the state’s income from the state with the highest income.  The income of a state has been computed as average per capita GSDP during the three-year period between 2015-16 and 2017-18.  States with lower per capita income would be given a higher share to maintain equity among states.

    New criteria ‘Demographic performance’: The Terms of Reference (ToR) of the Commission required it to use the population data of 2011 while making recommendations.   Accordingly, the Commission used only 2011 population data for its recommendations.

    The Demographic Performance criterion has been introduced to reward efforts made by states in controlling their population.   It will be computed by using the reciprocal of the total fertility ratio of each state, scaled by 1971 population data.   States with a lower fertility ratio will be scored higher on this criterion.  The total fertility ratio in a specific year is defined as the total number of children that would be born to each woman if she were to live to the end of her child-bearing years and give birth to children in alignment with the prevailing age-specific fertility rates.

    Forest and ecology: This criterion has been arrived at by calculating the share of dense forest of each state in the aggregate dense forest of all the states.

    Tax effort: This criterion has been used to reward states with higher tax collection efficiency.   It has been computed as the ratio of the average per capita own tax revenue and the average per capita state GDP during the three-year period between 2014-15 and 2016-17.

     

    Grants-in-aid

    In 2020-21, the following grants will be provided to states:

    (i) Revenue deficit grants,

    (ii) Grants to local bodies, and

    (iii) Disaster management grants

    The Commission has also proposed a framework for sector-specific and performance-based grants.  State-specific grants will be provided in the final report.

    Revenue deficit grants: 

    • In 2020-21, 14 states are estimated to have an aggregate revenue deficit of Rs 74,340 crore post-devolution.
    • The Commission recommended revenue deficit grants for these states.

    Special grants:

    • In case of three states, the sum of devolution and revenue deficit grants is estimated to decline in 2020-21 as compared to 2019-20.
    • These states are Karnataka, Mizoram, and Telangana.

     Sector-specific grants: 

    • Sector-specific grants for the following sectors will be provided in the final report: (i) nutrition, (ii) health, (iii) pre-primary education, (iv) judiciary, (v) rural connectivity, (vi) railways, (vii) police training, and (viii) housing

    Performance-based grants:

    Guidelines for performance-based grants include: (i) implementation of agricultural reforms, (ii) development of aspirational districts and blocks, (iii) power sector reforms, (iv) enhancing trade including exports, (v) incentives for education, and (vi) promotion of domestic and international tourism.  The grant amount will be provided in the final report.

    Grants to local bodies: 

    • The total grants to local bodies for 2020-21 has been fixed at Rs 90,000 crore, of which Rs 60,750 crore is recommended for rural local bodies (67.5%) and Rs 29,250 crore for urban local bodies (32.5%).
    • This allocation is 4.31% of the divisible pool.   This is an increase over the grants for local bodies in 2019-20, which amounted to 3.54% of the divisible pool.
    • The grants will be divided between states based on population and area in the ratio 90:10. The grants will be made available to all three tiers of Panchayat- village, block, and district.

    Disaster risk management:  

    • The Commission recommended setting up National and State Disaster Management Funds (NDMF and SDMF) for the promotion of local-level mitigation activities.
    • The Commission has recommended retaining the existing cost-sharing patterns between the centre and states to fund the SDMF (new) and the SDRF (existing).
    • The cost-sharing pattern between centre and states is (i) 75:25 for all states, and (ii) 90:10 for north-eastern and Himalayan states.

     

    Recommendations on fiscal roadmap

    Fiscal deficit and debt levels: 

    • The Commission noted that recommending a credible fiscal and debt trajectory roadmap remains problematic due to uncertainty around the economy.
    • It recommended that both central and state governments should focus on debt consolidation and complies with the fiscal deficit and debt levels as per their respective Fiscal Responsibility and Budget Management (FRBM) Acts.

    Off-budget borrowings: 

    • The Commission observed that financing capital expenditure through off-budget borrowings detracts from compliance with the FRBM Act.
    • It recommended that both the central and state governments should make full disclosure of extra-budgetary borrowings.
    • The outstanding extra-budgetary liabilities should be clearly identified and eliminated in a time-bound manner.

    Statutory framework for public financial management: 

    The Commission recommended forming an expert group to draft legislation to provide for a statutory framework for sound public financial management system.   It observed that an overarching legal fiscal framework is required which will provide for budgeting, accounting, and audit standards to be followed at all levels of government.

    Tax capacity: 

    • In 2018-19, the tax revenue of state governments and central government together stood at around 17.5% of GDP.
    • The Commission noted that tax revenue is far below the estimated tax capacity of the country.  Further, India’s tax capacity has largely remained unchanged since the early 1990s.
    • In contrast, tax revenue has been rising in other emerging markets.
    • The Commission recommended: (i) broadening the tax base, (ii) streamlining tax rates, (iii) and increasing capacity and expertise of tax administration in all tiers of the government

    GST implementation: 

    • The Commission highlighted some challenges with the implementation of the Goods and Services Tax (GST).
    • These include: (i) large shortfall in collections as compared to original forecast, (ii) high volatility in collections, (iii) accumulation of large integrated GST credit, (iv) glitches in invoice and input tax matching, and (v) delay in refunds.
    • The Commission observed that the continuing dependence of states on compensation from the central government for making up for the shortfall in revenue is a concern.
    • It suggested that the structural implications of GST for low consumption states need to be considered.

    Other recommendations

     

    Financing of security-related expenditure:

    • The ToR of the Commission required it to examine whether a separate funding mechanism for defence and internal security should be set up and if so, how it can be operationalised.
    • In this regard, the Commission intends to constitute an expert group comprising representatives of the Ministries of Defence, Home Affairs, and Finance.
    • The Commission noted that the Ministry of Defence proposed following measures for this purpose:

    (i) setting up of a non-lapsable fund, (ii) levy of a cess, (iii) monetisation of surplus land and other assets, (iv) tax-free defence bonds, and (v) utilising proceeds of disinvestment of defence public sector undertakings.

     

    Challenges before 15th FC

     

     

    Even as the work of the Commission was in a fairly advanced stage, designed towards submitting the report by the stipulated date, there were new developments which impacted the recommendations of the XV-FC.

    First was the enactment of the Jammu and Kashmir Reorganization Act, 2019, leading to the creation of two new UTs. The FC needs to closely examine how best the needs of the UT of J&K can be addressed keeping in view all relevant factors.

    Second, the global scenario is unpredictable and experiencing a synchronised slowdown. After successive downward revisions, the IMF forecast global growth for 2019 at 3 per cent, which is the lowest since the global financial crisis of 2008-09, with further downside risk.

    Third, like many other countries, India too is going through a period of economic sluggishness. The growth in real GDP is expected to slow down from 7.2 per cent in 2017-18 to around 6 per cent estimated for 2019-20.

    Fourth, weak revenue collections, driven by slowing activity as well as teething problems in implementing some of the newly introduced structural reforms, have elevated the fiscal risks. With real economic growth at a seven-year low, combined with relatively low inflation, growth has been weak in nominal terms as well, leading to a weak tax base.

     

    Criticisms

    • The population parameter used by the Commission has been criticised by the governments of the southern states.
    • The previous FC used both the 1971 and the 2011 populations to calculate the states’ shares, giving greater weight to the 1971 population (17.5%) as compared to the 2011 population (10%).
    • The use of 2011 population figures has resulted in states with larger populations like UP and Bihar getting larger shares, while smaller states with lower fertility rates have lost out.
    • The combined population of the Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan and Jharkhand is 47.8 crore.
    • This is over 39.48% of India’s total population and is spread over 32.4% of the country’s area, as per the 2011 Census.
    • On the other hand, the southern states of Tamil Nadu, Kerala, Karnataka and undivided Andhra Pradesh are home to only 20.75% of the population living in 19.34% of the area, with a 13.89% share of the taxes.
    • This means that the terms decided by the Commission are loaded against the more progressive (and prosperous) southern states.

     

     

    References

    https://www.prsindia.org/report-summaries/report-15th-finance-commission-fy-2020-21

    https://en.wikipedia.org/wiki/Fifteenth_Finance_Commission

    https://www.civilsdaily.com/news/recommendations-of-the-15th-finance-commission/

  • 18th February 2020 | Prelims Daily with Previous Year Questions

    [WpProQuiz 370]

  • When Yankee goes home

    Context

    Delhi needs to unlearn some of the assumptions about US policy as it prepares to host Trump next week. While the diaspora is important and could be of some value in dealing with Trump, it can’t override the deeper forces animating American politics.

    Changing America under Trump

    • Restriction on immigration: Trump’s America wants the Americans to come home but is shutting the door on unrestricted immigration from the rest of the world.
      • Domestic critics say America has been a nation of immigrants and Trump is wrong to keep them out.
      • Why the restriction on immigrants? But Trump has much support among the working people who know-
      • Immigration keeps wages low.
      • Helps the capitalist class and-
      • Disrupts the familiar cultural and social landscape.
    • Some want America out
      • Some chancelleries in the world demand that America must go home.
      • The president of the Philippines wants to end Manila’s century-old relationship with the US military.
      • Iran wants America out of the Gulf.
      • Russia and China would like to see the US forces out of Europe and Asia respectively.
      • The world is paying serious attention to the possibility of Yankee going home.

    Downsizing of the US role and how the world is responding?

    • Downsizing
      • In the Gulf, Trump wants the Asian powers to police the vital sea lines of communication.
    • In Europe and Asia, he wants the allies to do more for their own security.
    • How the world is responding?
      • Europe’s response In Europe, France and Germany are now talking about creating new defence capabilities for the European Union amidst the prospect for American security retrenchment.
      • How the Asian countries are responding? In Asia, Japan is debating a larger security role.
      • In the Gulf, America’s Arab allies are scrambling to diversify their security dependence.

    America First policy

    • What is America First policy? The idea of downsizing America’s role, along with the rejection of free trade and open borders, is at the very heart of Trump’s America First policy.
    • Resistance to the policy: To be sure there is deep resistance in the US to these ideas that run counter to America’s post-war internationalism.
      • Wall Street on the East Coast and Silicon Valley on the West Coast along with the old foreign and security policy establishment in Washington all oppose Trump’s America First focus.
    • Widespread support to the policy: Trump’s message, however, resonates across the political divide in the US.
      • Many candidates for the presidential nomination of the Democratic Party agree with Trump’s goal of ending America’s “endless wars” in the Middle East.
      • Many in the working classes, who traditionally supported the Democrats, believe Trump is right in arguing that free trade has hollowed out American industry and eliminated manufacturing jobs.

    How the changes matter for India?

    • Prepare for the changes: America is at an inflection point; India needs to come to terms with the profound changes unfolding in the US.
    • No intervention policy: The Indian political classes castigated the US for excessive interventions in the affairs of other nations.
      • Trump now says such interventions are counterproductive and all nations must strengthen their sovereignty.
    • Critical of globalisation: Indians criticised the US for imposing globalisation on others; the US President is now one of the biggest critics of globalisation.
      • Trump’s America is not the one we have known.
    • India’s sensitivity to the US domestic politics: As India broadened its engagement with America in the last two decades, Delhi has become more sensitive to the US domestic political dynamics.
      • In getting the US to ease off on Kashmir and nuclear issues, Delhi had to look beyond the foreign policy establishment to generate better US appreciation of India’s concerns and interests.
    • Indian diaspora: One of the instruments that came in handy was the mobilisation of the Indian diaspora, it emerged as a key factor in elevating the bilateral relationship in the 21st century.
      • While the diaspora is important and could be of some value in dealing with Trump, it can’t override the deeper forces animating American politics.

    Conclusion

    Delhi’s success with the US will depend on the kind of strategic imagination it can display on trade cooperation, securing Afghanistan after America’s withdrawal, stabilising the Gulf and developing a new global compact on migration that is sensitive to domestic political considerations and yet contributes to the collective economic development.

     

     

     

     

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