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  • [Burning Issue] Cyber security threats to India

    [Burning Issue] Cyber security threats to India

    Context

    • On November 23, 2022, the premier medical institute in the country, the All India Institute of Medical Sciences New Delhi (AIIMS) was crippled by a major cyber-attack.
    • A few days later, another premier hospital, Safdarjung hospital also witnessed a cyber attack. In the past also, witnessed several cyber attacks on its critical infrastructure assets.
    • In this context, this edition of the Burning Issue will analyze the issue of cyber security and threats to India.

    What is cyberspace?

    • A global domain within the information environment consisting of the interdependent network of information technology infrastructures, including the Internet, telecommunications networks, computer systems, and embedded processors and controllers.

    The situation of Cyber Connectivity in India

    • 3rd highest internet users: India ranks 3rd in terms of the highest number of internet users in the world after the USA and China, the number has grown 6-fold between 2012-2017 with a compound annual growth rate of 44%.
    • Rapid digitalization under progress: India has witnessed rapid digitalization in almost all spheres of public life. There is greater and easy access to financial services even for rural populations. Missions like Make in India and Digital India are creating a positive ripple effect across the economy.

    What are Cyber Security Threats?

    • Cyber Security is protecting our cyberspace (critical infrastructure) from attack, damage, misuse and economic espionage.
    • Cyber Intrusions and Attacks have increased dramatically over the last decade, exposing sensitive personal and business information, disrupting critical operations, and imposing high costs on the economy.
    • While traditional businesses are adopting e-platforms to widen their reach, new businesses based solely on new technologies like social, mobile, analytics and cloud (SMAC) are growing at breakneck speed. The Internet of Things (IoT)1, where interconnected devices could monitor various aspects of professional and personal life using internet-based technology, is fast becoming a reality.
    • Although smart devices connected to the internet will make lives simpler, they are also likely to expose individuals and organizations to cyber threats.
    • Cyber-attacks can vary in nature and include scenarios – such as the introduction of malicious software like trojans, worms, viruses and spyware; password phishing; and denial-of-service attacks intended to crash websites.
    • Any successful cyberattack on a critical asset such as a power grid will have a multiplier effect, crippling communications, and transportation and even endangering the health and safety of citizens.

    Cyber security situation in India

    • Top 10 spam-sending countries: India secures a spot amongst the top 10 spam-sending countries in the world alongside the USA.
    • One of the most affected countries: India was ranked among the top five countries to be affected by cybercrime, according to a 22 October report by online security firm Symantec Corp.
    • India witnessed over 18 million cyber-attacks and threats, at an average of nearly 200,000 threats every day, in the first three months of 2022, according to the cyber security firm, Norton.

    Famous examples of Cyber-Attacks in India

    • In May 2021, the national airline Air India reported a cyber-attack in which the data of 4.5 million of its customers across the world, was compromised.
    • In October 2019, there was an attempted cyber-attack on the Kudankulam Nuclear power plant.
    • In February 2022, a suspected ransomware attack briefly knocked out the management information system (MIS) at Jawaharlal Nehru Port Container Terminal (JNPCT), one of five marine facilities in India’s top container gateway of JNPT (Nhava Sheva).

    Impacts of Cyber Security Breaches

    • Compromise integral defense systems: Tactical teams trained in cyber warfare have been deployed to attack critical infrastructure to compromise integral defence systems and infrastructure. 
    • Huge ransom demands: A growing number of miscreants are holding large companies ransom through systemic attacks and ransomware. Recently, in India, a large power company’s operations were compromised due to a ransomware attack.
    • Increases risk of fraud, data breaches: These incidents increase an organization’s risk of fraud, intellectual property theft, network incapacitation and damage to brand and corporate reputation – all of which can have far-reaching and expensive consequences.

    Steps taken to bolster cyber security infrastructure in India

    • Legal framework: There are two legislations: The Information Technology Act 2000, provides the legal framework for addressing cybercrimes and cyberattacks. Criminal countermeasures include the use of this Act along with the Indian Penal Code.
    • Administrative: The Ministry of Electronics and Information Technology (MeitY) is responsible for cyber security. The Computer Emergency Response Team, CERT-IN, an office within MeitY, is the nodal agency for dealing with cyber security threats. CERT-IN also augments the security-related defence of the Indian Internet domain.
    • Institutional: Several other government agencies are involved in dealing with cyber security and allied issues. The National Security Council Secretariat is the central coordinating body for cybersecurity and internet governance. The National Critical Information Infrastructure Protection Center (NCIIPC) focuses on cyber threats to critical information infrastructure and has been successful. The Cyber and Information Security Division (C&IS) of the Ministry of Home Affairs, is also concerned with cybersecurity and cybercrime
    • Policy: India’s National Cyber Policy, 2013 is up for an overhaul and a new National Cybersecurity policy will be announced in the near future.
    • Coordination with states: The Indian Cybercrime Co-ordination Centre (I4C) established by the Ministry of Home Affairs, acts as a nodal point in the response against cybercrime by coordinating with state police forces across the country. It also co-ordinates the implementation of mutual legal assistance treaties (MLAT) with other countries.
    • Intelligence wing: The National Technical Research Organisation (NTRO) is a technical intelligence agency under the National Security Advisor in the Prime Minister’s Office. The NCIIPC works within the NTRO.
    • Improved rankings: With continuous efforts at improvement, India has moved up 37 places to be ranked 10th in the Global Cybersecurity Index 2020 (GCI), according to a report by the International Telecommunication Union (ITU)

    What more can be done: The Way Forward

    • Private sector participation: Companies like Mastercard which have decades of global expertise in managing such risks and creating architecture that mitigate them can help build and strengthen cybersecurity systems.
    • Active roles of governments: Governments, both at the state and central level as well as industry will need to play an active role in spreading awareness and training individuals.
    • Strengthening the trifecta of policy, infrastructure and awareness: A large part of India’s population is digitally literate but unaware of basic security measures. As India embarks on its Techade of growth and global leadership, the trifecta of policy, infrastructure and awareness will be imperative to ensure that digital growth does not come at the cost of compromised cybersecurity.
    • A whole-of-nation approach must be followed: This requires a comprehensive national risk assessment in line with the criticality of Indian assets and capabilities of the adversaries. It must be done by engaging stakeholders and creating a trusted information-sharing mechanism.
    • A clear governance structure for organizations: mandated with cybersecurity and cyber crisis management, with a proper mandate clarifying the roles and responsibilities of different bodies, should be established to take stock of existing policies practices and capabilities.
    • Creating a massive information-sharing mechanism: Stakeholders Including different state and central government departments, law enforcement and even corporates should also be engaged through a wide consultation and information-sharing mechanism to create baseline security benchmarks, and test them by organizing regular security drills, thereby augmenting incident response capabilities.
    • Promote PPP model: The government must act as a facilitator and create a public-private partnership and lay adequate stress on user awareness and education. Most importantly, privacy and security should be balanced while handling cybercrime and fostering R&D to maintain a position of dominance in cyberspace.
    • International cooperation: India must be a part of international cooperation efforts to promote responsible behavior in cyberspace. The country is still not a signatory to several conventions including the Budapest Convention. The two-decade-old Budapest Convention can be updated and made more democratic by taking into account the concerns of the developing world, where the majority of the world’s future consumers are from.

    Conclusion

    • As cybersecurity will continue to remain a potent factor in India’s digital ecosystem, all stakeholders must focus on a collaborative approach to develop formidable solutions that can create safer digital spaces.
    • The role of policymakers will be equally crucial as they can help the industry in catalyzing innovation and bringing new solutions to the market at a faster pace and with enhanced agility.
  • SC offers to find solution to ‘deceitful conversions’

    The Supreme Court said that- acts of charity or good work to help a community or the poor should not cloak an intention to religiously convert them as payback.

    What did the SC say?

    • Conversion on the basis of a voluntarily felt belief in the deity of a different faith is different from belief gained through allurement.
    • The court said it would examine such veiled intentions behind religious conversions through allurement by offering food, medicines, treatment, etc.

    What is Religious Conversions?

    • Religious conversion is the adoption of a set of beliefs identified with one particular religious denomination to the exclusion of others.
    • It is one of the most heated issues in the society and politics which can be defined as the adoption of any other religion or of a set of beliefs by the exclusion of other i.e. renouncing one religion and adopting another.
    • There are various reasons for which people do convert their religion like:
    1. Voluntary Conversions i.e. conversions by free choice or because of change of beliefs.
    2. Forceful Conversions i.e. conversions by coercion, undue influence or inducement.
    3. Marital Conversions i.e. conversions due to marriage.
    4. Conversion for convenience i.e. social mobility

    Constitutional ambiguity over conversions

    • The question whether ‘right to convert’ comes under the ambit of ‘right to propagate any religion’ holds fundamental importance to determine the constitutionality of anti-conversion laws.
    • Article 25 talks about the term “propagate” which means to promote or transmit or merely a freedom of expression.

    Why is this getting prominence in India?

    Selective persecution and religious marginalization is often debated in India due to religious conversions for:

    1. Ghar Wapsi
    2. Inter-faith Marriages (often termed as Love Jihad)

    What about Incentivised Conversions?

    • There are many cases of incentivized conversions for the poor sections of society in exchange for a dignified social life.

    For them, the solution lies in addressing the root issues:

    1. Ending discrimination
    2. Providing high-quality and free education to the poor and disenfranchised
    3. Improving access and quality of free health facilities and medicines
    4. Improving nourishment and
    5. Providing adequate employment opportunities to all

    How has Parliament handled anti-conversion bills?

    After independence, Parliament introduced a number of anti-conversion bills which were not enacted for want of majority approval.

    • In post-Independent India, the first Indian Conversion (Regulation and Registration) Bill, 1954, which sought to enforce “licensing of missionaries and the registration of conversion.”
    • This was followed by the introduction of the Backward Communities (Religious Protection) Bill, 1960, “which aimed at checking conversion of Hindus to ‘non-Indian religions’.
    • Non-India religions included Islam, Christianity, Judaism and Zoroastrianism,.
    • The Freedom of Religion Bill in 1979, which sought “official curbs on inter-religious conversion.”

    Conclusion

    • Religious conversion gives new identity to the communities converted which in turn leads to social mobility.
    • Hence, anti-conversion amount to discrimination and a violation of the right to equality.
    • However, inter-faith marriages should not be pre-conditioned with religious conversion.
    • This certainly raises concerns for the majority of society.
    • Also mass conversions for the sake of revivalism should also not be promoted in any ways.

     

     

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  • Exit Polls and their Regulation in India

    poll

    As voting for Gujarat elections ended, exit polls are out on the news channels.

    What are Exit Polls?

    • An exit poll asks voters which political party they are supporting after they have cast their votes in an election.
    • In this, it differs from an opinion poll, which is held before the elections.
    • An exit poll is supposed to give an indication of which way the winds are blowing in an election, along with the issues, personalities, and loyalties that have influenced voters.
    • Today, exit polls in India are conducted by a number of organisations, often in tie-ups with media organisations.
    • The surveys can be conducted face to face or online.

    Issues with exit polls

    • Accuracy: Some common parameters for a good, or accurate, opinion poll would be a sample size that is both large and diverse, and a clearly constructed questionnaire without an overt bias.
    • Politicization: Political parties often allege that these polls are motivated, or financed by a rival party.
    • Manipulation for popularity: Critics also say that the results gathered in exit polls can be influenced by the choice, wording and timing of the questions, and by the nature of the sample drawn.

    History of exit polls in India

    • In 1957, during the second Lok Sabha elections, the Indian Institute of Public Opinion had conducted such a poll.

    Rules governing exit polls in India

    • In India, results of exit polls for a particular election are not allowed to be published till the last vote has been cast.
    • The issue of when exit polls should be allowed to be published has gone to the Supreme Court thrice in various forms.
    • Currently, exit polls can’t be telecast from before voting begins till the last phase concludes.

    Need of such polls

    • Popular opinion: Polls are simply a measurement tool that tells us how a population thinks and feels about any given topic.
    • Specific viewpoint: Polls tell us what proportion of a population has a specific viewpoint.
    • Opportunity to express: Opinion polling gives people who do not usually have access to the media an opportunity to be heard.

    Issues with such polls (in context of elections)

    • Authenticity: Critics have often questioned their authenticity.
    • Manipulation of voters: This largely manipulates voting behavior.
    • Sensationalization by media: The media, on the other hand, invariably opposes the idea of a ban as seat forecasts attract primetime viewership.
    • Ridiculing the public mandate: The exit polls largely disrespect public opinions inciting confusion regarding the election mandate.

    Why does it persist in India?

    Ans. Exercise of Free Speech

    • The opposition to the ban in India is mainly on the ground that freedom of speech and expression is granted by the Constitution (Article 19).
    • What is conveniently forgotten is that this freedom is not absolute and allows for “reasonable restrictions” in the same article.

    Limited restrictions that we have in India

    • RP Act: The Indian Penal Code and Representation of the People Act, 1951 do contain certain restrictions against disinformation.
    • Restrictions on A19: While the Constitution allows for reasonable restrictions on freedom of expression, its mandate to the ECI for free and fair elections is absolute.
    • Supreme Court interpretations: The Supreme Court (SC), in a series of judgments, has emphasized this requirement.
    • Basic structure doctrine: It considers free and fair elections is the basic structure of the Constitution (PUCL vs Union of India, 2003; NOTA judgment, 2013).

    How does it impact the election process?

    • Prevalence of paid news in India: Having seen “paid news” in action, it apprehends that some opinion polls may be sponsored, motivated and biased.
    • Opacity: Almost all polls are non-transparent, providing little information on the methodology.
    • Propaganda: Subtle propaganda on casteist, religious and ethnic basis as well as by the use of sophisticated means like the alleged poll surveys create public distrust in poll process.
    • Disinformation: With such infirmities, many “polls” amount to misinformation that can result in “undue influence”, which is an “electoral offense” under IPC Section 171 (C). It is a “corrupt practice” under section 123 (2) of the RP Act.
    • Betting: The polling agencies manipulate the margin of error, victory margin for candidates, seat projections for a party or hide negative findings.

    Way forward

    • Independent regulator: Ideally a body like the British Polling Council would be a viable option. India could set up its own professional, self-regulated body on the same lines say Indian Polling Council.
    • Mandatory disclosure: All polling agencies must disclose for scrutiny the sponsor, besides sample size, methodology, time frame, quality of training of research staff, etc.

     

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  • OBC Sub-Categorization Panel’s Report in ‘Final Stages’

    After more than five years of its formation, the commission for the sub-categorization under Justice Rohini of the Other Backward Classes (OBC) is now in the final stages of finishing its task.

    Why in news?

    • The commission is expected to come up with a formula to further classify the nearly 3,000 caste groups and preparing a report on it.
    • This is perceived as crucial development before next Lok Sabha elections.

    OBCs and their sub-categorization

    • OBCs are granted 27% reservation in jobs and education under the central government.
    • In September 20202, a Constitution Bench of the Supreme Court reopened the legal debate on the sub-categorization of SCs and STs for reservations.
    • The debate arises out of the perception that only a few affluent communities among over 2,600 included in the Central List of OBCs have secured a major part of this 27% reservation.

    Need for sub-categorization

    • The argument for sub-categorization — or creating categories within OBCs for reservation — is that it would ensure “equitable distribution” of representation among all OBC communities.
    • To examine this, the Rohini Commission was constituted on October 2, 2017.
    • At that time, it was given 12 weeks to submit its report but has been given several extensions since, the latest one being the 10th.
    • Before the Rohini Commission was set up, the Centre had granted constitutional status to the National Commission for Backward Classes (NCBC).

    What are the Commission’s terms of reference?

    It was originally set up with three terms of reference:

    1. To examine the extent of inequitable distribution of benefits of reservation among the castes or communities included in the broad category of OBCs with reference to such classes included in the Central List;
    2. To work out the mechanism, criteria, norms and parameters in a scientific approach for sub-categorization within such OBCs;
    3. To take up the exercise of identifying the respective castes or communities or sub-castes or synonyms in the Central List of OBCs and classifying them into their respective sub-categories.

    The fourth term of reference was added on January 22, 2020, when the Cabinet granted it an extension:

    1. To study the various entries in the Central List of OBCs and recommend correction of any repetitions, ambiguities, inconsistencies and errors of spelling or transcription.

    Why so many extensions are being given?

    • This was added following a letter to the government from the Commission on July 30, 2019.
    • In process of preparing the sub-categorized central list of OBCs, the Commission has noted several ambiguities in the list as it stands now.
    • The Commission is of the opinion that these have to be clarified/rectified before the sub-categorized central list is prepared.

    What progress has it made so far?

    • In its letter to the government on July 30, 2019, the Commission wrote that it is ready with the draft report (on sub-categorization).
    • Following the latest term of reference given (on January 22, 2020) to the Commission, it is studying the list of communities in the central list.

    How smooth has its work been?

    • A hurdle for the Commission has been the absence of data for the population of various communities to compare with their representation in jobs and admissions.
    • On August 31, 2018, then Home Minister had announced that in Census 2021, data of OBCs will also be collected, but since then the government has been silent on this.
    • Many groups of OBCs have been demanding the enumeration of OBCs in the Census.

    What have its findings been so far?

    • In 2018, the Commission analyzed the data of 1.3 lakh central jobs given under OBC quota over the preceding five years and OBC admissions to central higher education institutions.
    • The findings were: 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified as OBCs; 24.95% of these jobs and seats have gone to just 10 OBC communities.
    • 983 OBC communities — 37% of the total — have zero representation in jobs and educational institutions; 994 OBC sub-castes have a total representation of only 2.68% in recruitment and admissions.

     

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  • What Ambedkar said about Buddhism ‘being better than Marxism’

    While his views on Buddhism being superior to other religions are well-known, Ambedkar also believed the Buddha’s path to be superior to the popular religion-rejecting philosophy, Marxism.

    Marxist view of religion

    • Marx saw religion as a conservative force that prevented social change by creating false consciousness.
    • Marx once said- “Religion is the opium of the people. It is the sigh of the oppressed creature, the heart of a heartless world, and the soul of our soulless conditions.”
    • The end goal of Marxism is to achieve a classless society throughout the world.

    How Dr. Ambedkar compared Buddhism to Marxism?

    • Ambedkar has compared Buddhism with Marxism, saying that while both strive for the same end of a just and happy society.
    • The means propounded by Buddha are superior to those of Marx.
    • It is just simple that Marx was modern and Buddha ancient.
    • If the Marxists keep back their prejudices and study the Buddha and understand what he stood for I feel sure that they will change their attitude, Ambedkar writes.

    Similarities between the two

    • In showing the similarities between Buddhism and Marxism, Ambedkar first condenses the basic philosophy of both into neat bullet points.
    • For Buddhism, Dr. Ambedkar lists key points:
    1. The function of Religion is to reconstruct the world and to make it happy and not to explain its origin or its end;
    2. That private ownership of property brings power to one class and sorrow to another;
    3. That it is necessary for the good of Society that this sorrow be removed by removing its cause; and
    4. All human beings are equal.
    • Of Marx, he says all that is left “is a residue of fire”:
    1. The function of philosophy is to reconstruct the world and not to waste its time in explaining the origin of the world;
    2. That private ownership of property brings power to one class and sorrow to another through exploitation;
    3. That it is necessary for the good of society that the sorrow be removed by the abolition of private property.”

    How abolition of private property works under Buddhism?

    • Dr Ambedkar says Buddhism’s commitment to abolishment of private property is apparent in how its ‘Bhikshus’ give up all worldly goods.
    • He says the rules for Bhikhshus owning property or possessions are “far more rigorous than are to be found in communism in Russia.”
    • To establish a happy and fair society, the Buddha had laid down a path for believers.
    • The means adopted by the Buddha were to convert a man by changing his moral disposition to follow the path voluntarily.

    Key difference: Violent means

    • The means adopted by the Communists are equally clear, short and swift. They are (1) Violence and (2) Dictatorship of the Proletariat.
    • It is now clear what are the similarities and differences between Buddha and Karl Marx.
    • The differences are about the means. The end is common to both.
    • The driving force of India’s Constitution also says Buddha was a democrat.
    • As to Dictatorship, the Buddha would have none of it. He was born a democrat and he died a democrat, Ambedkar writes.

     

    Try this PYQ:

    Q. Karl Marx explained the process of class struggle with the help of which one of the following theories?

    (a) Empirical liberalism.

    (b) Existentialism.

    (c) Darwin’s theory of evolution.

    (d) Dialectical materialism.

     

    Post your answers here.

     

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  • What is First Loss Default Guarantee (FLDG) System?

    Two months after the RBI issued guidelines on digital lending, banks, NBFCs and fintech players are still awaiting clarity on many aspects, including the First Loss Default Guarantee (FLDG) system.

    What is FLDG System?

    • FLDG is an arrangement between a fintech company and regulated entity (RE), including banks and non-banking finance companies, wherein the fintech compensates the RE to a certain extent if the borrower defaults.
    • Under this, the fintech originates a loan and promises to compensate the partners up to a pre-decided percentage in case customers fail to repay.
    • The bank/NBFC partners lend through the fintech but from their own books.
    • FLDG helps expand the customer base of traditional lenders but relies on the fintechs underwriting capabilities.
    • FLDG is also seen as a validation of the fintechs underwriting capabilities for loans disbursed.

    Issues with FLDGs

    • A report by an RBI-constituted working group on digital lending has laid down risks of FLDG agreements with unregulated entities.
    • The other concern is that FLDG costs are often passed on to customers.

     

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  • 5th Dec| Daily Answer Wars| CD Warzone

    Topics for Today’s question:

    GS-3          Issues related to direct and indirect farm subsidies and minimum support prices.

    Question)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WARS (DAW)?

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

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    Question of the day: What do you mean by the Minimum Support Price (MSP)? Critically analyse the efficacy of MSP in achieving its objectives? (15 Marks- 250 words)

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  • Healthy tax collection and the challenge of effective utilization

    collection

    Context

    • Notwithstanding the likely slowdown in economic momentum in the second half of the year, the Union government’s tax collections are on track to surpass its budgeted target by a significant amount this year.

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    collection

    The current status Union government’s tax collection

    • Gross tax collections have already touched the target: Data released by the Controller General of Accounts last week shows that gross tax collections have already touched 58 per cent of the full year’s target, growing by 18 per cent in the first seven months (April-October) of the current financial year.
    • Healthy growth in corporate tax collection: Under the broad rubric of taxes, direct tax collections have grown by a robust 26 per cent in the first seven months of the financial year, with healthy growth being seen across both corporate and income tax collections.
    • Higher than the nominal GDP growth: While the pace of direct collections has eased during July-October when compared to the first quarter, it continues to be higher than nominal GDP growth in the second quarter.
    • Healthy indirect tax collection: On the indirect tax side, GST collections continued to witness healthy growth, recording an increase of 11 per cent in November.

    collection

    Memory shot in short: Types of Direct Taxes

    • Income Tax: Depending on an individual’s age and earnings, income tax must be paid. Various tax slabs are determined by the Government of India which determines the amount of Income Tax that must be paid. The taxpayer must file Income Tax Returns (ITR) on a yearly basis. Individuals may receive a refund or might have to pay a tax depending on their ITR. Penalties are levied in case individuals do not file ITR.
    • Wealth Tax: The tax must be paid on a yearly basis and depends on the ownership of properties and the market value of the property.
    • Estate Tax: It is also called Inheritance Tax and is paid based on the value of the estate or the money that an individual has left after his/her death.
    • Corporate Tax: Domestic companies, apart from shareholders, will have to pay corporate tax. Foreign corporations who make an income in India will also have to pay corporate tax.
    • Capital Gains Tax: It is a form of direct tax that is paid due to the income that is earned from the sale of assets or investments

    What the Healthy tax collection imply?

    • Higher devolution to states: Higher tax collections at the level of the central government imply that devolution to states will be higher than the budgeted amount of Rs 8.16 lakh crore. The months of August and November have in fact witnessed double instalments as the Centre has stepped up devolution.
    • States can increase fiscal expenditure: Along with the interest free loan scheme extended by the Centre, higher devolution implies that states have considerable fiscal room to increase capital expenditure. However, this has not been the case so far. Capex by states has been rather muted.
    • Provides comfort to governments fiscal arithmetic: As per recent statements by revenue secretary Tarun Bajaj, the government is now hopeful of exceeding the budgeted target by nearly Rs 4 lakh crore. With its spending also likely to surpass earlier expectations by a considerable margin, higher tax collections will provide some comfort to the government’s fiscal arithmetic.

    collection

    Challenges on the expenditure side

    • Increased subsidy bills: On the expenditure side, the Union government is facing a massive increase in its subsidy bill.
    • Spending is more than actual budget: Actual spending on the food and fertilizer subsidy and also on LPG will be significantly higher than what has been budgeted for. This is likely to make the fiscal situation challenging.
    • Effective utilization is necessary: Considering that the central government has maintained the momentum on its capital spending, growing by around 60 per cent in the first seven months of the year, the overall general government fiscal impulse will depend on how effectively states are able to utilise the extra space available to them.

    Conclusion

    • Calls for increasing spending to support the economy during this uncertain period will only gain traction as the budget approaches. The government must however resist the temptation. It should stick to the glide path of fiscal consolidation.

    Mains Question

    Q. In a time of possible economic slowdown, India’s tax collection is on a healthy path. Discuss what good tax collection means for economy?

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