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  • 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.

     

     

     

     

  • The $5 trillion arithmetic

    Context

    The Indian government has set itself a big target, namely, that the Indian economy will have an aggregate income or gross domestic product (GDP) of $5 trillion by 2024-25.

    Lack of clarity

    • There is little effort to take it beyond a slogan.
    • When it comes to targets and aims pertaining to the economy, it is important to have-
      • The officials and advisers go beyond the headline.
      • To lay out the details and the road-map for the target.
    • Matter for investors: For international observers and particularly investors, not to see these details creates doubts about professionalism.

    What growth rate is required to reach that target?

    • How long will it take to achieve the target at the present growth rate?
      • In 2018-19, India’s GDP was $2.75 trillion.
      • India’s latest official growth rate happens to be 5 per cent.
      • Target will be reached in 2032-33: Continue in the same fashion to compute the size of the GDP and it becomes clear that the target of $5 trillion will be reached not in 2024-25, but in 2032-33.
    • What is the required rate? Set the target as $5 trillion dollars for 2024-25 the required rate turns out to be 10.48 per cent or, approximately, 10.5 per cent.

    Why 10.5 rate is an ambitious target?

    • The only example of any nation growing for six consecutive years at an average annual rate of over 10.5 per cent was China from 2003 to 2009.
    • Can India achieve this rate?
      • From 1947 till now, India’s economy grew at over 10 per cent only twice — in 1988-89 and 2007-8.
      • Of these, the first may be dismissed because the previous year the economy had grown very slowly, by 3.5 per cent.
    • What we can learn from the past growth rate?
      • The only example to learn from: The only example from which we can learn is the remarkable growth in 2007-8, made all the more remarkable by the fact that India had been growing well for several years, starting from 2003.
      • And from 2005, India was actually growing over 9 per cent.
      • What factors played the role in high growth?
      • This was a period of professional fiscal policy and steady effort at building infrastructure.
      • India’s economy was making big news in the international media and investment poured in.
      • India’s investment-to-GDP rate climbed to an all-time record of 39 per cent.
    • Current investment-to-GDP ratio: Our investment-to-GDP ratio has crashed to 30 per cent and this takes time to re-build.
      • If we can get back to a growth rate of 7 per cent we will be lucky.

    Can inflation make the target achievable?

    • Combination of real growth and inflation can make it possible: Virtually all serious commentators agree that in purely real terms, the $5-trillion target is unreachable.
      • But maybe we can make it by a combination of real growth and inflation.
      • How the combination will work? One way India can get to the target is if alongside say 7 per cent growth, India has inflation of say 3.5 per cent.
      • Then India’s nominal GDP growth rate will be 10.5 per cent.
    • Why the inflation argument is flawed?
      • The five trillion target is in dollar terms.
      • Inflation will lead to depreciation: Typically, if India has higher inflation than the US, the rupee would depreciate vis-à-vis the dollar to account for that.
      • For the sake of pure arithmetic, assume US inflation is zero, India’s inflation is 10 per cent, and India’s real growth rate is 0.
      • In that case, in rupee terms, India’s economy will grow by 10 per cent. But how much will India’s economy grow in dollar terms?
      • The answer is zero.
      • Why is it so? This is because the rupee will typically depreciate by 10 per cent to match the inflation differential, and so the larger GDP of India in rupee terms, when converted to dollars will show no growth.
    • The other possibility of achieving the target?
      • What if the dollar loses value? But this should immediately make it clear that there is another way of getting to the target.
      • This can happen if the US dollar loses value.
      • We can then get to the target of $5 trillion because that will mean less in real terms.

    Conclusion

    There are two routes to achieve the target of $5 trillion: A huge policy initiative to boost real growth or the luck of dollar depreciation. The luck of dollar would mean nothing for us in the real term so the best course of action for the government is to seek the first option and try to achieve it.

  • Permanent Commission to Women in Indian Army

     

    • The Supreme Court brought women officers in 10 streams of the Army on a par with their male counterparts in all respects, setting aside longstanding objections of the government.
    • The case was first filed in the Delhi High Court by women officers in 2003 and had received a favourable order in 2010. But the order was never implemented and was challenged by the government.

    Women in Army: Background of the case

    • The induction of women officers in the Army started in 1992.
    • They were commissioned for a period of five years in certain chosen streams such as Army Education Corps, Corps of Signals, Intelligence Corps, and Corps of Engineers.
    • Recruits under the Women Special Entry Scheme (WSES) had a shorter pre-commission training period than their male counterparts who were commissioned under the Short Service Commission (SSC) scheme.
    • In 2006, the WSES scheme was replaced with the SSC scheme, which was extended to women officers. They were commissioned for a period of 10 years, extendable up to 14 years.
    • Serving WSES officers were given the option to move to the new SSC scheme or to continue under the erstwhile WSES.
    • They were to be, however, restricted to roles in streams specified earlier — which excluded combat arms such as infantry and armoured corps.

    2 key arguments shot down

    • The Supreme Court rejected arguments against a greater role for women officers, saying this violated equality under the law.
    • They were being kept out of command posts on the reasoning that the largely rural rank and a file will have problems with women as commanding officers. The biological argument was also rejected as disturbing.
    • While male SSC officers could opt for permanent commission at the end of 10 years of service, this option was not available to women officers.
    • They were, thus, kept out of any command appointment, and could not qualify for government pension, which starts only after 20 years of service as an officer.
    • The first batch of women officers under the new scheme entered the Army in 2008.

    Arguments by the govt.

    • The government put forth other arguments before the Supreme Court to justify the proposal on the grounds of permanent commission, grants of pensionary benefits, limitations of judicial review on policy issues, occupational hazards, reasons for discrimination against women and rationalization on physiological limitations for employment in staff appointments.
    • The apex court has rejected these arguments, saying they are “based on sex stereotypes premised on assumptions about socially ascribed roles of gender which discriminate against women”.
    • It has also said that it only shows the need “to emphasise the need for change in mindsets to bring about true equality in the Army”.

    Implications of the judgement

    • The SC has done away with all discrimination on the basis of years of service for grant of PC in 10 streams of combat support arms and services, bringing them on a par with male officers.
    • It has also removed the restriction of women officers only being allowed to serve in staff appointments, which is the most significant and far-reaching aspect of the judgment.
    • It means that women officers will be eligible to tenant all the command appointments, at par with male officers, which would open avenues for further promotions to higher ranks for them.
    • It also means that in junior ranks and career courses, women officers would be attending the same training courses and tenanting critical appointments, which are necessary for higher promotions.

    Way Forward

    • The implications of the judgment will have to be borne by the human resources management department of the Army, which will need to change policy in order to comply.
    • But the bigger shift will have to take place in the culture, norms, and values of the rank and file of the Army, which will be the responsibility of the senior military and political leadership.
    • After the Supreme Court’s progressive decision, they have no choice but to bite the proverbial bullet.

  • RBI’s accounting year

    The Reserve Bank of India (RBI) is aligning its July-June accounting year with the government’s April-March fiscal year in order to ensure more effective management of the country’s finances.

    • Accordingly, the next accounting year will be a nine-month period which starts from July 2020 and ends on March 31, 2021. Thereafter, all the financial years will start from April every year, the RBI said.
    • The Bimal Jalan Committee on Economic Capital Framework (ECF) of the RBI had proposed a more transparent presentation of the RBI’s annual accounts and change in its accounting year from July to June to April to March from the financial year 2020-21.

    How did the RBI’s July-June accounting year come to be?

    • When it commenced operations on April 1, 1935, with Sir Osborne Smith as its first Governor, the RBI followed a January-December accounting year.
    • On March 11, 1940, however, the bank changed its accounting year to July-June.
    • Now, after nearly eight decades, the RBI is making another switch: the next accounting year will be a nine-month period from July 2020 to March 31, 2021, and thereafter, all financial years will start from April, as it happens with the central and state governments.

  • State of India’s Birds 2020 (SoIB) Assessment

     

    State of India’s Birds 2020 (SoIB) assessment was recently released.

    Highlights of the report

     

     

    • The SoIB was produced using a base of 867 species (among 1,333 birds ever recorded in India), and analysed with the help of data uploaded by birdwatchers to the online platform, eBird.
    • Adequate data on how birds fared over a period of over 25 years (long-term trend) are available only for 261 species.
    • Current annual trends are calculated over a five-year period.

    Alarming declines

    • The SoIB assessment raises the alarm that several spectacular birds, many of them endemic to the sub-continent, face a growing threat from loss of habitat due to human activity, widespread presence of toxins including pesticides, hunting and trapping for the pet trade.
    • Diminishing population sizes of many birds because of one factor brings them closer to extinction because of the accelerated effects of others, the report warned.
    • Over a fifth of India’s bird diversity, ranging from the Short-toed Snake Eagle to the Sirkeer Malkoha, has suffered strong long-term declines over a 25-year period.
    • More recent annual trends point to a drastic 80% loss among several common birds.

    Various species mentioned

    • Of 101 species categorised as being of High Conservation Concern — 59 based on range and abundance and the rest included from high-risk birds on the IUCN Red List.
    • Endemics such as the Rufous-fronted Prinia, Nilgiri Thrush, Nilgiri Pipit and Indian vulture were confirmed as suffering current decline.
    • And all except 13 had a restricted or highly restricted range, indicating greater vulnerability to man-made threats.
    • Peafowl, on the other hand, are rising in numbers, expanding their range into places such as Kerala, which is drying overall, and areas in the Thar desert where canals and irrigation have been introduced. Stricter protection for peacocks under law also could be at work.

  • SUTRA PIC India Programme

     

    The government has unveiled SUTRA PIC programme to research on ‘indigenous’ cows.

    SUTRA PIC

    • SUTRA PIC stands for Scientific Utilization Through Research Augmentation-Prime Products from Indigenous Cows.
    • To be funded by multiple scientific ministries, the initiative, SUTRA PIC, is led by the Department of Science and Technology (DST).
    • It has the Department of Biotechnology, the CSIR, the Ministry for AYUSH (Ayurveda, Unani, Siddha, Homoeopathy) among others and the Indian Council of Medical Research as partners.
    • It has five themes:
    1. Uniqueness of Indigenous Cows,
    2. Prime-products from Indigenous Cows for Medicine and Health,
    3. Prime-products from Indigenous Cows for Agricultural Applications,
    4. Prime-products from Indigenous Cows for Food and Nutrition,
    5. Prime-products from indigenous cows-based utility items

    Aims and objectives

    The proposals under this theme aim to:

    • perform scientific research on the complete characterization of milk and milk products derived from Indian indigenous cows;
    • scientific research on nutritional and therapeutic properties of curd and ghee prepared from indigenous breeds of cows by traditional methods;
    • development of standards for traditionally processed dairy products of Indian-origin cow

    Other facts

    • In 2017, SEED constituted a National Steering Committee (NSC) for ‘Scientific Validation and Research on Panchgavya (SVAROP)’.
    • Panchgavya is an Ayurvedic panacea and is a mixture of five (pancha) products of the cow (gavya) — milk, curd, ghee, dung and urine.
    • Its proponents believe it can cure, or treat a wide range of ailments.

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