Despite being worth $181.9 trillion in 2022, cross-border payments still have inefficiencies prompting the G-20 to focus on improving them for economic growth.
Present Status of the Global Cross-Border Payments Market
The cross-border payments market was valued at approximately $181.9 trillion in 2022 and is projected to reach $356.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.3% from 2023 to 2032.
The growth is driven by increasing globalization, the rise of e-commerce, and technological innovations in the financial sector. The demand for faster, more secure, and transparent payment solutions is compelling banks and fintech companies to enhance their offerings.
The market includes various channels such as bank transfers, money transfer operators, and card payments, with a significant share coming from business-to-business (B2B) transactions.
Difference Between Old and New Systems
Cross-Border Payment
Features
Challenges
Old System
Cross-border payments relied on manual processes involving letters of credit, checks, and extensive documentation.
It faced challenges such as high transaction costs, slow processing times, and limited access due to regulatory burdens.
New System
Incorporates technological advancements such as blockchain, digital wallets, and instant payment systems.
Example:peer-to-peer transactions and interlinked payment infrastructures
challenges around scalability, security, regulation and standardization.
Challenges to Cross-Border Payments
High Costs: Transaction fees remain a significant barrier, with various financial institutions imposing different charges that complicate cost-effectiveness.
Low Speed: Processing times can vary greatly, often taking several days due to intermediary banks and regulatory checks, which can frustrate users seeking rapid transactions.
Limited Access: Many individuals and businesses still face obstacles in accessing cross-border payment services, particularly in underbanked regions.
Insufficient Transparency: Users often lack clarity regarding fees, processing times, and the overall transaction process, leading to mistrust and reluctance to engage in cross-border transactions.
Regulatory Compliance: Navigating diverse legal frameworks across jurisdictions complicates transactions, with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations adding layers of complexity.
Way forward:
Adoption of Emerging Technologies: Leveraging blockchain, digital currencies, and AI can streamline processes, reduce transaction costs, and enhance transparency, making cross-border payments faster and more accessible.
Regulatory Harmonization and Collaboration: Promoting global regulatory alignment and fostering collaboration between financial institutions and governments can simplify compliance, improve transaction efficiency, and broaden access to underbanked regions.
The Union Cabinet approved the Unified Pension Scheme (UPS) for 23 lakh central government employees.
About Unified Pension Scheme (UPS):
Explanation
Implementation Date
Effective from April 1, 2025.
Eligibility
Central government employees with at least 10 years of service.
Assured Pension
50% of average basic pay over the last 12 months prior to retirement for employees with 25+ years of service.
Proportionate benefits for 10-25 years of service.
Assured Minimum Pension
₹10,000 per month for employees with at least 10 years of service.
Assured Family Pension
60% of the pension that the employee was drawing before their death.
Inflation Protection
Pensions indexed to inflation;
Dearness Relief (DR) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Government Contribution
18.5% of basic pay and DA, increased from 14% under the National Pension System (NPS).
Employee Contribution
10% of basic pay and DA (same as under NPS).
Lump Sum Payment on Superannuation
One-tenth of the last drawn monthly pay (including DA) for every 6 months of completed service, in addition to gratuity.
Option to Choose
Employees can choose between UPS and NPS starting from the upcoming financial year; the choice is final once made.
Beneficiaries
Initially benefits 23 lakh central government employees;
May extend to 90 lakh if adopted by state governments.
Difference from NPS
Unlike the market-dependent NPS, UPS provides a guaranteed pension amount, a minimum pension, increased government contribution, fixed family pension, and a lump sum payment at superannuation.
Significance of the UPS
Financial Security: Guarantees a pension and family pension for stable post-retirement income.
Minimum Pension: Ensures at least ₹10,000 per month for retirees, supporting lower-income employees.
Inflation Protection: Indexes pensions to inflation, maintaining purchasing power over time.
Increased Benefits: Raises government contribution to 18.5%, enhancing employee retirement benefits.
Flexibility: Allows choice between UPS and NPS based on personal financial needs.
Family Support: Provides 60% of the pension to the spouse if the employee passes away.
Employee Welfare: Aligns with government goals to improve employee welfare and post-retirement life quality.
PYQ:
[2017] Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only.
(b) Persons of age from 21 to 55 only.
(c) All State Government employees joining the services after the date of notification by the respective State Governments.
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004.
Pali, Persian, Prakrit, and Farsi (Persian) as per the National Education Policy-2020.
Criteria for Classical Language Status
– High Antiquity: Recorded history of 1500-2000 years.
– Valuable Heritage: Possesses ancient literature and texts.
– Originality: Unique literary tradition, not borrowed from other languages.
– Distinctness: Language and literature distinct from modern forms.
Promotion of Classical Languages
– International Awards: Two major awards for scholars in classical Indian languages.
– Centre of Excellence: For studies in classical languages.
– Professional Chairs: UGC requested to create chairs in Central Universities.
The Eighth Schedule
Lists 22 official languages, governed by Articles 344(1) and 351 of the Constitution. Includes Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Odia, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu, and Urdu.
The recent brutal rape and murder case in Kolkata has sparked widespread calls for the death penalty for the accused.
The Justice J.S. Verma Committee, formed in response to the 2012 Delhi gang rape, recommended against the death penalty for rape, even in the rarest of rare cases, arguing that it would be a regressive step.
About Justice J.S. Verma Committee Recommendations
Recommendations on
Explanation
Rape
• It recognized rape as a Crime of Power, not just passion.
• Expand definition to include all forms of non-consensual penetration.
• Remove marital rape exception; marriage should not imply automatic consent. (European Commission of Human Rights in C.R. vs U.K)
Sexual Assault
• Broaden definition to include all non-consensual, non-penetrative sexual acts.
• Penalty: Up to 5 years of imprisonment or fines.
Verbal Sexual Assault
• Criminalize unwelcome sexual threats.
• Punishable by up to 1 year in prison or fines.
Sexual Harassment at Workplace
• Include domestic workers under protections.
• Replace internal complaint committees with Employment Tribunals.
• Employers to compensate victims of sexual harassment.
Acid Attacks
• Propose a 10-year minimum punishment, separate from grievous hurt.
• Establish a compensation fund for victims.
Women in Conflict Areas
• Review AFSPA; exclude government sanction for prosecuting sexual offenses by armed forces.
• Appoint special commissioners to monitor offenses.
Trafficking
• Comprehensive anti-trafficking laws beyond prostitution.
• Protective homes for women and juveniles overseen by High Courts.
Child Sexual Abuse
• Define ‘harm’ and ‘health’ in the Juvenile Justice Act to include both physical and mental aspects.
Death Penalty
• Opposed chemical castration and death penalty for rape.
• Recommend life imprisonment.
Medical Examination of Rape Victims
• Ban the two-finger test; victim’s past sexual history should not influence the case.
Reforms in Case Management
• Set up Rape Crisis Cells, increase police accountability, allow online FIR filing.
• Encourage community policing and increase police personnel.
Union Cabinet’s Decision on the Death Penalty
The Union Cabinet, while clearing an ordinance on sexual assault in 2013, chose NOT to adopt the committee’s recommendation against the death penalty.
Key amendments included:
Section 376A: Death penalty for rape leading to the death of the victim or reducing her to a persistent vegetative state.
Section 376E: Death penalty for repeat offenders.
2018 Amendments: Death penalty for gang rape of a victim under 12 years (Section 376DB) and life imprisonment for rape of a victim under 16 years (Section 376DA).
The Bharatiya Nyaya Sanhita (BNS) includes similar provisions for rape, with specific sections detailing the punishment, including the death penalty for certain cases.
PYQ:
[2014] We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace.
Recent studies have provided deeper insights into the mechanics of Sonoluminescence, particularly the conditions under which light is emitted from collapsing bubbles in liquids.
What is Sonoluminescence?
Sonoluminescence is a phenomenon in which small gas bubblesin a liquid emit short bursts of light when exposed to intense sound waves.
The light is produced when thebubble undergoes rapid compression and expansion.
This is due to the alternating high- and low-pressure phasesof the sound waves, causing the gas inside to heat up and emit light.
This phenomenon was discovered in 1934 by two German engineers while they were studying sonar technology, which uses sound waves to detect objects underwater.
They noticed that when a tiny bubble in a liquid was hit by strong sound waves, it emitted a brief flash of light.
Mystery behind Sonoluminescence
Although the general mechanism is understood, the exact details of how the light is produced remain a mystery.
Scientists are still exploring the precise processes that cause the gases inside the bubble to ionize and emit light at such high temperatures.
Examples of Sonoluminescence
Controlled Experiments: In laboratory settings, scientists create sonoluminescence by trapping a bubble in a liquid and subjecting it to high-frequency sound waves.
Pistol Shrimp: When the shrimp (marine creature with a specialized claw) snaps its claw shut, it shoots out a jet of water that moves so fast it creates a low-pressure bubble. The bubble then collapses, producing a loud sound, intense heat, and sometimes a brief flash of light.
PYQ Relevance: Q Judicial Legislation is antithetical to the doctrine of separation of powers as envisaged in the Indian Constitution. In this context justify the filing of a large number of public interest petitions praying for issuing guidelines to executive authorities. (UPSC IAS/2020) Q What are the continued challenges for Women in India against time and space? (UPSC IAS/2019) Q An apparel manufacturing company having a large number of women employees was losing sales due to various factors. The company hired a reputed marketing executive, who increased the volume of sales within a short span of time. However, some unconfirmed reports came up regarding his indulgence in sexual harassment at the work place. After sometime, a woman employee lodged a formal complaint to the management against the marketing executive about sexually harassing her. Faced with the company’s indifference in not taking cognizance of her grievance, she lodged an FIR with the Police. Realizing the sensitivity and gravity of the situation, the company called the women employee to negotiate. In that she was offered a hefty sum of money to withdraw the complaint and the FIR and also give in writing that the marketing executive is not involved in this case. Identify the ethical issues involved in this case: what options are available to the women employee? (UPSC IAS/2019)
Mentor comment: India faces significant challenges regarding sexual harassment and violence against women, deeply rooted in societal norms and systemic issues. Despite legislative measures like the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act of 2013, the prevalence of sexual violence remains alarmingly high. Justice K. Hema Committee report, released by the Kerala government on August 19, 2024, highlights severe issues of sexual exploitation and gender discrimination faced by women in the Malayalam film industry. Initially submitted in 2019, the report reveals a culture of harassment, including the “casting couch” phenomenon, where women are pressured to exchange sexual favors for roles. It also addresses inadequate facilities and the absence of basic rights for women in the industry.
Let’s learn!
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Why in the news?
The Justice K. Hema Committee report has sparked significant public debate and led to calls for reforms, including the establishment of an Internal Complaints Committee to address issues of sexual exploitation and gender discrimination faced by women effectively.
What does the Report say on Culture of Assault?
On Sexual Assault and Consent: Instances of sexual assault are not isolated events but are rooted in societal practices that undermine women’s autonomy and consent.
The National Crime Records Bureau reported 31,516 cases of rape in India in 2022, indicating a significant prevalence of sexual violence against women.
The Justice Hema Committee report emphasizes that rape is a manifestation of a culture that views women as objects rather than individuals with rights.
On Workplace Harassment: The Vishaka guidelines established in 1997 aimed to protect women from workplace harassment, leading to the Sexual Harassment of Women at Workplace Act, 2013, which mandates the formation of Internal Complaints Committees (ICC).
The report argues that ICCs are inadequate for the film industry due to potential biases and influence from abusers, advocating for an independent government forum to address these issues.
Lack of registration of crimes vs. Question on the Principle of Survivor Anonymity:
Nipun Saxena vs Union Of India (2018): The SC explained the importance of penalization of the disclosure of the name and the identity of the survivors of sexual offenses as mandated in Section 228A of the IPC, which is now reiterated in Sect 72 and 73of the BNS.
The provision’s objective is to protect survivors from hostile discrimination and future harassment.
Puttaswamy Judgement (2017): The Right to Privacy is integral to the Right to Life under Article 21 of the Constitution. Further, our criminal justice system initiates prosecution against the accused on behalf of the victim but it becomes quite difficult to prove a crime without the victim’s cooperation.
Right to Livelihood: Survivors fear potential retaliation from the abuser and the rest of society, in terms of refusal to give them work, and being branded as ‘problem-makers’.
CASE STUDY – #MeToo Movement:The accusations against Harvey Weinstein in 2017 sparked the global #MeToo movement, highlighting issues of sexual harassment and assault in various industries.
Need for Structural Reforms:
Acknowledgment of Challenges: The report aims to empower Indian women by raising awareness about workplace discrimination.
The findings in the Hema Committee report should lead to significant structural reforms in the Malayalam film industry, with government leadership being crucial.
Comprehensive Solutions Required: Issues such as inadequate sanitation and workplace bias must be thoroughly studied and addressed to improve conditions for women.
The report emphasizes the unique difficulties faced by women in lower-tier roles in the film industry, beyond just lead actresses.
Animesh Pradhan, Age 24, Attempt: 1st, UPSC-CSEAIR 2. A graduate of NIT Rourkela, working as a full-time employee in Indian Oil Corp., he cleared UPSC CSE on his first attempt at the age of 24. He lost his father at an early age and was left with his Mother and elder sister. Unfortunately, his Mother passed away 40 days ago and couldn’t see her Son’s success and cherish it. His sister got married in January last year. He is a very committed, humble, and diligent student with high professional skills in managing work and studies.
AIR 2, Animesh Pradhan at Civilsdaily Delhi Centre Today
Schedule a 1-1 call with Civilsdaily’s Mentorfor focused UPSC Prep
With all the lows in life, he came with the hope that one day, his mother would see him becoming an IAS officer. Even though one wish in these two remained unachieved, wherever his mother is, her wishes will be with him, and if there is heaven at all, she might be celebrating this in that heaven.
AIR 2, Animesh Pradhan On Call With Civilsdaily Mentor Showing His Gratitude
We hope he achieves much more success and wish him enough grit to achieve whatever he wants in life. We expect him not to stop here and make this a mere small achievement in his list of aspirations.
Why Civilsdaily Mentorship and Programs Are Unique?
Element No. 1: The System
The first element of the powerful mentorship program at CD is – The System.
The system is the method that is used during the program. One of the first surprising elements of a Civilsdaily program is that we do an early assessment of the current stage of aspirants. This is done in 10+ dimensions. Along with that, you get a lot of study material in advance. Unlike other courses that give you average content when the course begins, you get high-quality content for UPSC Prep well in advance. The reason for this is simple: The Mentor is not around to create “shock and awe”. Instead, the element that really helps learning is the “safe zone”. When aspirants get the material in advance, it gives them time to learn and absorb it. And then, when the initial assessments happen in the form of mock tests, the aspirant is able to apply the learning.
One big reason we fail to learn and progress in UPSC Prep is that we do not have time to practice and attempt mocks.
No one is around to correct our mistakes. All we get is an endless stream of information, and mastery over exam is further away than ever. The notes themselves need design: lots of examples, relevance to PYQs, and easy-to-read language. The syllabus content needs to be broken up into consumable chunks. It’s design, design and more design. Check our atomic and flash notes, and you will understand what we mean. A well-constructed system is the first element of the program at CD but by no means the most important.
Trying to cope with breathless content all at once is extremely intimidating for the aspirants. When you’re in a Civilsdaily Mentorship program, you get the content well in advance. There’s no need to create “shock and awe” while mentoring. You learn better when you know and own the content, using the course to practice and get better at it instead.
Element No. 2: The Group
A journey of a thousand miles can be really intimidating without a group because UPSC -CSE requires MCQ and answer writing aptitude, which requires constant practice. When you work alone, it’s easy to give up or get distracted. A group is what gets you ahead. But how do you get a group that’s focused, smart, and helpful? Do such groups even exist?
There’s a saying in Africa: If you want to go quickly, go alone. If you want to go far, go with a group. And yet, not any group will do, will it? You’ve been in Telegram groups before, and the terms “kind, helpful and smart” don’t come to mind, do they?
The one thing that will amaze you at Civilsdaily is how much you come to rely on your group. At first, many aspirants assume that their progress is a lonely journey. They learn what’s required, do their mocks, and when the course is done, they get to the finish line.
And yet habit-creation reveals something entirely different.
Snagging a bad habit is relatively easy. The moment you have to build a “good habit,” it’s a lot harder to stay motivated—unless, of course, you have a group.
The aspirant groups at the Civilsdaily course are brilliant, focused and helpful.
It almost seems hard to find such an active, helpful bunch of people. And the reason why you’ll find this level of camaraderie here, is because of several reasons. But the biggest reason of all is because we’re selective.
We only let people in if they pass our filters.
We also will not have overloading of any kind. Our program accepts limited aspirants. You simply will not see the ocean full of aspirants you see on other courses. Finally, we break up the groups into even smaller groups of six or seven aspirants. We keep it small and focused. This gets you closer to the finish line. In short, you go far.
Without practice, mastery of this exam is difficult. Without daily and weekly practice, you have a “decay problem.” Other courses will give you content and mocks once a month and won’t provide any kind of mentor feedback. This is a recipe for disaster. You won’t know if you are making any progress at all.
That’s not how we run our programs.
When you’re a part of the Civilsdaily Mentorship program, whether you’re a beginner or veteran, you have a schedule that is unique to you and your requirements for the duration of the program. As you’d expect, all this is designed with “tiny increments” in mind, but it is the daily and weekly practice that keeps away the decay.
And everything is enriched with a 1:1 mentor call.
Your Mentor checks your preparation and works with you to ensure progress—there is no exception. This enables you to learn bit by bit instead of being dumped with endless content that you might never use in an exam. When you consider all three elements: the system, the group, and the daily and weekly practice, you are able to create a habit. This habit leads to success in exam.
Any new subject or mock can be a little unnerving when you don’t get regular practice. Our program is designed to help you learn layer by layer, and it involves small steps done daily. That way, if you press the “wrong button,” we can learn from the mistake, fix it, and move ahead at an even pace.
This attention to detail is what makes the Civilsdaily Mentorship Program among the best. But you’ll find that out for yourself.
To explore our Mentorship and schedule a pre-enrollment call, Fill this Mentorship Form (Free for the next 24 hours) to connect with our mentors.
The heart of the Civilsdaily platform is the Foundation Program and Ultimate Assessment Program (UAP). For years, aspirants have enrolled here because they couldn’t find such depth and passion towards quality content and Mentorship anywhere. Their search inevitably ends at Civilsdaily. Enrollment in these programs and Mentorship also makes us accountable to aspirants for the value they get.
In the past few years, we’ve worked quietly in the background with hundreds of aspirants; many now serve as IAS, IPS, IFS, and more. We are very proud of what we’ve achieved. Here are some of the recent rankers who show us gratitude.
Fill up This Mentorship Form (Free for the next 24 hours) to connect with our mentors.
Q The quality of higher education in India requires major improvement to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of technical and higher education in the country? Discuss. (UPSC IAS/2015)
Q Professor Amartya Sen has advocated important reforms in the realms of primary education and primary health care. What are your suggestions to improve their status and performance? (UPSC IAS/2016)
Q National Education Policy 2020 conforms with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement. (UPSC IAS/2020)
Q The Right of Children to Free and Compulsory Education Act, 2009 remains indadequate in promoting incentive-based system for children’s education without generating awareness about the importance of schooling. Analyse. (UPSC IAS/2022)
Mentor comment: The consistently high pass rates, variations across boards, impact on higher education, and CBSE’s own concerns have kept the topic of mark inflation in the news spotlight, with calls for urgent exam reforms to restore credibility to the system. The perception of mark inflation has led to increased demand for entrance exams for college admissions. It also forces colleges to raise cut-offs, making it harder for diligent students to get admitted. The Former Education secretary Anil Swarup had attempted to abolish CBSE’s marks moderation policy in 2017 to check inflation but faced opposition from stakeholders. Experts argue that ending moderation and reforming exams is crucial to address the issue.
Let’s learn!
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Why in the News?
The Central Board of Secondary Education (CBSE) recently issued an advisory to its affiliated schools, urging them to reevaluate practical exam assessment procedures.
A significant variation was detected between theory and practical marks for over 50% of students in around 500 CBSE schools.
Present status of School Boards in India:
Indian school boards face allegations of inflating marks for classes 10 and 12.
• High Pass Percentages: Evidence includes high pass rates—85% for class 10 and 82% for class 12 in 2023. • Students scoring above 60%: Approximately 61% of class 10 students and 56% of class 12 students scored over 60%. • Mark Compression: High clustering of marks at the top is referred to as mark compression, related to mark inflation.
What are the impacts of such marks inflation?
• Impact on Education Credibility: Both mark inflation and compression undermine the credibility of the education system. • Consequences for Students: These practices hinder student preparedness for higher education and the job market. • Demand for Entrance Exams: The perception of inflated marks has increased demand for higher-education entrance examinations.
What are the current disparities in the Indian School Education System?
Lack of a Standardized Measure: The present examination curriculum pattern makes it difficult to assess the relative academic credentials of students certified by different boards.
For example, in both secondary and higher secondary examinations, the proportion of students securing above 60% was lower than the national average in several states.
However, this does not necessarily mean that students in other states performed better on a comparable scale.
Lack of Corrective Measures: Marks are supposed to reflect a student’s academic knowledge and skills, but comparing them with standardized national-level tests like NEET and JEE is problematic.
These tests are designed as elimination processes for admission to specific higher education programs, and not to evaluate subject knowledge as per the prescribed curriculum.
Moreover, not all class 12 students appear for these entrance exams, and those who do usually undergo special coaching which incurs huge costs.
Lack of Policy Suggestions: The National Achievement Survey (NAS) conducted by NCERT for a sample of students annually is scientifically designed but fails to serve as a benchmark for studying mark inflation.
There is little scope to connect estimated scores with factors like curriculum design, school efficiency, and teaching-learning processes.
Need for Accountability in the System: The current opaque system leads to various issues, necessitating transparency in all processes, from question paper setting to marking and result publication.
What can be done for the System’s Revaluation and Enhanced Accountability?
Establish a standardized system: The govt needs to provide resources outlining how learning outcomes are assessed and marks awarded, including examples.
Further, standardize the procedures for question paper handling, answer book printing, distribution, and collection. Allow students to view their answer scripts post-results and apply for revaluation at a nominal fee.
Need for Technical Intervention: States should establish clear guidelines for question formats and expected answers. Secondly, they need to implement scanning and online evaluation to minimize errors in the marking system.
Updating the curriculum to align with higher educational standards can ensure that students are adequately prepared, reducing the need for inflated marks to reflect competence.
Public Awareness Campaigns: Educating stakeholders about the implications of mark inflation can foster a culture of integrity and accountability in educational assessments.
Collaboration with Educational Institutions: Governments can work with schools and universities to create clear pathways for students, ensuring that grades reflect true academic ability and readiness for further education or the job market.
Conclusion: While the Indian government has managed to make education accessible (SDG 4) for millions of children, the quality of said education remains still poor due to non-transparent examinations. India can attain quality school education in the real sense shortly, but it will require addressing the abovementioned challenges.
The Supreme Court of India denied permission to the parents of Harish Rana, a 32-year-old man in a vegetative state for 11 years, to remove his Ryles tube which is a device used for feeding.
A Ryles tube, also known as a nasogastric (NG) tube, is a medical device used for various purposes related to nutrition and gastric management. It is inserted through the nose, passing through the nasal cavity, down the esophagus, and into the stomach.
Recent Supreme Court Judgment:
The Bench headed by CJI D.Y. Chandrachud observed that the Ryles tube is not a life support system and therefore could not be withdrawn.
This decision has stirred legal and ethical debates, as the Supreme Court’s 2018 judgment permits the withdrawal of life support in terminal cases under the concept of “passive euthanasia.”
Passive euthanasia involves the withdrawal of medical treatment with the intention of hastening the death of a terminally ill patient.
The Supreme Court initially legalized this practice in 2018, allowing patients to create a “living will” to refuse life-sustaining treatment when they are unable to communicate their wishes.
Ethical Challenges:
Question of whether the decision benefits the patient: The judgment raises concerns about whether the decision benefits the patient, as prolonging life in such a condition may increase suffering.
Prolonged suffering: The principle of not causing harm is challenged since keeping the patient in a vegetative state with artificial feeding may lead to prolonged suffering for both the patient and their caregivers.
Against Right to Life and Death: The patient’s rights to a dignified life and death may be compromised which is addressed in various judgments like Common Cause v. Union of India (2018). This judgment recognised the right to die with dignity as part of the right to life under Article 21.
Autonomy: The patient’s right to choose, which is central to the concept of dignity, has been overlooked. The judgment did not consider the wishes of the patient or their family in determining the course of action.
Need for Legal Clarity:
Distinguishing Euthanasia from Withdrawal of Life Support: There is a pressing need to legally clarify the difference between euthanasia and the withdrawal of futile life-sustaining interventions.
Involvement of Medical and Ethical Experts: The decision-making process in such sensitive cases should involve palliative care physicians and ethical experts to ensure that medical and ethical considerations are fully addressed.
Advance Care Planning: Promoting Advance Medical Directives and Advance Care Planning is crucial to empower individuals to have control over their end-of-life decisions, ensuring that their rights to a good quality of life and death are respected.
Systemic Reforms: The judgment highlights the need for systemic reforms to avoid forcing families into legal battles and to ensure that patients’ rights are safeguarded with appropriate legal frameworks.
Conclusion: The recent Supreme Court judgment highlights the urgent need for legal clarity, ethical considerations, and systemic reforms to protect patient rights and ensure dignity in end-of-life decisions.
Mains question for practice:
Q Discuss the need for legal clarity and systemic reforms to uphold the dignity and rights of patients in end-of-life decisions. (150 words) 10M
Most states appear to be opposed to altering the current five primary GST rate slabs: 0%, 5%, 12%, 18%, and 28%.
About Goods and Service Tax (GST):
The Goods and Services Tax (GST) in India was introduced by the Constitutional (One Hundred and First Amendment) Act of 2017. It is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments.
Under GST, the Central (CGST) and state government (SGST) share the authority to levy and collect taxes on goods and services. In the case of Inter-state transactions, Integrated GST (IGST) is applicable.
Essential Features of GST
Multiple Tax Levels: India’s GST system has multiple tax rates, with four primary tax rates (5%, 12%, 18%, and 28%). Additionally, there is a “zero rate” for certain essential goods and services (e.g. exports).
One Nation, One Tax: GST is based on the principles of value-added tax and applies to the supply of goods and services across the nation. It brings uniformity in the tax structure across India, eliminating the cascading effect of taxes.
Destination-Based Tax: This means that the revenue generated from GST is collected by the state where the goods or services are consumed, rather than where they are produced.
Eliminating Cascading Effect: Under the Indian GST system, businesses can claim input tax credit for the GST they paid on their purchases. This ensures that taxes are levied only on the value added at each stage of the supply chain.
Sector-specific Exemptions: Certain sectors, such as healthcare, education, and basic necessities like food grains, are either exempted from GST or have reduced tax rates to ensure affordability and accessibility.
Threshold Exemption: Small businesses with a turnover below a specified threshold (currently, it is 20 lakhs: supplier of both goods & services and 40 lakhs: for supplier of goods (Intra–State) in India) are exempt from GST.
Present Challenges in GST Rates
Complexity and Confusion: The existence of multiple GST slabs creates confusion for businesses and consumers alike. Different rates for similar items lead to complications in compliance and classification, resulting in litigation and disputes.
For instance, the GST on cement is 28%, while essential items like milk are exempt, yet products derived from milk, such as skimmed milk powder, are taxed at 5%.
Anomalies in Taxation: There are notable inconsistencies in the application of GST rates. For example, the taxation of medical and life insurance premiums at 18% is seen as burdensome for individuals seeking financial protection against uncertainties.
Need to simplify the current GST Slabs
Rationalization Proposal: There is a growing consensus among industry experts and some government officials that the GST structure should be simplified to a maximum of three slabs.
This would not only streamline compliance but also reduce the administrative burden on businesses and the government alike.
Economic Stimulus: Simplifying GST rates could potentially stimulate economic activity by lowering indirect tax burdens, encouraging consumption, and ultimately leading to higher tax revenues.
Why are states resisting?
Fear of Revenue Loss: Many states are apprehensive about the implications of changing the GST structure, fearing that it might lead to a decrease in their revenue streams.
Political Considerations: The political landscape also plays a role in the resistance to change. With upcoming elections and the need to maintain fiscal health, state governments may prioritize short-term revenue stability over long-term structural reforms.
Way forward:
Phased Implementation: Start by introducing pilot programs in select states or sectors to test the impact of GST simplification. This approach can help address specific concerns and refine the model before a nationwide rollout.
Revenue Protection Schemes: Develop robust mechanisms to compensate states for any potential revenue losses during the transition. This could involve a formula-based compensation fund or a temporary revenue guarantee.
Mains PYQ:
Q Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? (2020)
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