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Subject: Polity

  • Need for fiscal decentralisation

    Covid pandemic has turned the fiscal health of states from bad to worse. This article highlights the role of the Finance Commission as a neutral arbiter in the Centre-state relation in achieving the delicate balance. It has highlighted certain issues that the commission has to consider when it submits its report. So, what are those issues? Read to know…

    Disruption in fiscal consolidation and impact on Centre-state relations

    • Due to COVID, there is a  collapse in general government revenues and the consequent rise in the deficit levels.
    • It has disrupted the glide path of fiscal consolidation.
    • But it has also deepened the faultlines in Centre-state fiscal relations. 
    • The Centre is trying to claw back the fiscal space ceded to the states and assert its dominance over the country’s fiscal architecture.
    • This coupled with the fiscal constraints exposed by the pandemic have made it harder to maintain the delicate balance needed to manage the contesting claims of the Centre and the states

    Why the 15th Finance Commission report is critical for decentralisation

    • It will be ironic if the ongoing health crisis that has ended up exposing the limitations of a centralised approach, ends up reversing the trend towards fiscal decentralisation.
    • The Commission’s report will be critical on two counts:
    • First, it will determine how India’s fiscal architecture is reshaped.
    • Second, how Centre-state relations are reset as the country attempts to recover from the COVID-19 shock.

    1. Will the burden of reducing debt/gdp  fall equally on Centre and state?

    • The glide path of fiscal consolidation laid out by the FRBM review committee had envisaged bringing down general government debt to 60 per cent of GDP by 2022.
    • This is unlikely to materialise now.
    • Factoring in the additional borrowings, the debt-to-GDP ratio may well be over 80 per cent this year.
    • Thus the fiscal consolidation roadmap will have to be reworked.
    •  As per its terms of reference, the Finance Commission will lay out the new path to be followed by both Centre and states.
    • But the question is: Will the burden of debt reduction fall equally upon the Centre and states?
    • Or will the Commission allow the Centre to have greater leeway when it comes to fiscal consolidation?

    2. Will the conditional extension of borrowing limit be formalised?

    •  Recently, the Centre eased the states’ budget constraint, allowing them to borrow more this year.
    • But this extra borrowing was conditional upon states implementing reforms in line with the Centre’s priorities.
    • Despite protests, most states are likely to comply with the conditions, to varying degrees.
    • But the issue is: As the hit from the ongoing crisis spreads over multiple years, state governments may want to maintain their expansionary fiscal stance next year as well.
    • Then, will the Finance Commission, in line with its terms of reference, go along with the Centre’s stance and recommend imposing conditions on additional borrowing and formalise this arrangement?
    • It is difficult to see such an arrangement being rolled back once formalised.

    3. GST compensation cess

    • The GST council, in which the Centre effectively has a veto, is yet to clearly spell out its views on the extension of the compensation cess to offset states losses beyond the five-year period.
    • The Commission will have to weigh in on this too.
    • At this time the Centre is struggling to fulfil its promise of assuring states their GST revenues.
    • In such situation, will the Commission argue in favour of extending the compensation period, as states desire, but, perhaps, lowering the assured 14 per cent growth in compensation and linking it to nominal GDP growth?
    • As GST revenue accounts for a significant share of states’ income, how this plays out will also have a bearing on their ability to bring down their debt levels.

    4. Issue of tax devolution

    • In some sense, accepting the recommendations of the 14th Finance Commission was a fait accompli.
    • The terms of reference of the 15th Finance Commission points to the present government’s desire to claw back the fiscal space offered to the states.
    • But is clawing back fiscal space now a prudent approach?
    • A cash-strapped Centre will surely welcome greater say over the diminished resources.
    • And there a strong argument for the Centre to have far greater fiscal space than it currently enjoys.
    • This is partly because the fiscal multiplier of central government capital spending is greater than that by the states.
    • But also the nature of politics may well push in that direction.
    • Centralisation of political power may well lead to demands for centralisation of resources.
    • However, surely fiscal space can be created by a review of the Centre’s own spending programme.

    Need to relook at the Centre’s expenditure priorities

    • Over the past decades, there has been a substantial increase in the Centre’s spending on items on the state and concurrent list.
    •  This shift has occurred even as grants by the Centre to states exceed the former’s revenue deficit.
    • This, as some have pointed out, effectively means that the Centre is borrowing to transfer to states.
    • Surely, a relook at the Centre’s expenditure priorities would create greater fiscal space for it.

    What the Finance Commission can do?

    • Any attempt to shift the uneasy balance in favour of the Centre will strengthen the argument that this government’s talk of cooperative federalism serves as a useful mask to hide its centralising tendencies.
    • As a neutral arbiter of Centre-state relations, the Finance Commission should seek to maintain the delicate balance in deciding on contesting claims.
    • This may well require giveaways especially if states are to be incentivised to push through legislation on items on the state and concurrent list.
    • The fiscal stress at various levels of the government necessitates a realistic assessment of the country’s macro-economic situation, the preparation of a medium-term roadmap, as well as careful calibration of the framework that governs Centre-state relations.
    • At this critical juncture, the Finance Commission should present the broad contours of the roadmap.
    • Though it could request for another year’s extension to present its full five-year report citing the prevailing uncertainty.

    Consider the question “COVID pandemic has put the States in the dire fiscal position. What we need is more of the fiscal decentralisation now.” In light of this, along with other factors, elaborate on the role 15th Finance Commission could play in this regard.

    Conclusion

    Finance Commission has to play an important role in achieving the delicate balance in the conflicting domain of finance by addressing the concerns of both the players.

  • Ninth Schedule of Indian Constitution

     

    read:

    [Burning Issue] SC judgement on Reservation not being a Fundamental Right

  • Reservation not fundamental right: SC refuses to hear pleas by TN parties

    What did the Hon’ble Supreme Court rule?

     

    • Article 16 (4) and 16 (4-A) are in the nature of enabling provisions, vesting a discretion on the State Government to consider providing reservations, if the circumstances so warrant.
    • It is settled law that the State Government cannot be directed to provide reservations for appointments in public posts.
    • Similarly, the State is not bound to make reservations for Scheduled Castes and Scheduled Tribes in matters of promotions.
    • The judgment added that it is for the State Government to decide whether this was necessary.

    What do the precedents say?

    • There are several major Supreme Court judgments that have, in the past, ruled that Articles 15(4) and 16(4) does not provide a fundamental right per se.
    • A five-judge apex court bench, as early as 1962 in the R. Balaji v. the State of Mysore had ruled that Article 15(4) is an “enabling provision”, meaning that “it does not impose an obligation, but merely leaves it to the discretion of the appropriate government to take suitable action, if necessary”.
    • The court was hearing a challenge to an order passed by the erstwhile state of Mysore reserving 68 percent of seats in engineering and medical colleges for educationally and socially backward classes and SCs and STs.
    • Five years later, in 1967, another five-judge bench in A. Rajendran v. Union of India reiterated this position, holding that the government is under no constitutional duty to provide reservations for SCs and STs, either at the initial stage of recruitment or at the stage of promotion.
    • Article 16(4), it said, does not confer any right on the citizens and is an enabling provision giving discretionary power to the government to make reservations.
    • The position went on to be reiterated in several other decisions, including the nine-judge bench ruling in Indra Sawhney v. Union of India (1992) and the five-judge bench decision in M Nagaraj v. Union of India (2006).

    What does the judgment mean?

    • Reservations are not rights: The latest judgment is a reminder that affirmative action programs allowed in the Constitution flow from “enabling provisions” and are not rights as such.
    • Not a new legal position: This legal position is not new. Major judgments- these include those by Constitution Benches-note that Article 16(4), on the reservation in posts, is enabling in nature.
    • The state is not bound to provide reservation: In other words, the state is not bound to provide reservations. But if the state provides reservations, it must satisfy the following two criteria-
      • For the backward class: It must be in favor of sections that are backward.
      • Inadequately represented: And inadequately represented in the services based on quantifiable data.

    Consequences of this judgment

    • Possibility of the unequal system: Some may even read into this an inescapable state obligation to extend reservation to those who need it, lest its absence renders the entire system unequal.
    • Possibility of perceptible imbalance: For instance, if no quotas are implemented and no study on backwardness and extent of representation is done, it may result in a perceptible imbalance in social representation in public services.

    Why reservation needed?

    • To correct the historical injustice faced by backward castes in the country.
    • To provide a level playing field for backward section as they can not compete with those who have had the access of resources and means for centuries.
    • To ensure adequate representation of backward classes in the services under the State.
    • For advancement of backward classes.
    • To ensure equality as basis of meritocracy i.e all people must be brought to the same level before judging them on the basis of merit.

    Argument Against Reservation

    • Reservation in state services led to divisions and enmity among government employees, vitiating the atmosphere at workplace.
    • Eradication, not perpetuation of caste was the objective of the reservation policy but Caste Based Reservation only perpetuate the notion of caste in society.
    • Reservation was introduced to ensure that the historically underprivileged communities were given equal access to resources but irrespective of the economic progress they continue to remain socially disadvantaged.
    • Reservation destroys self-respect, so much so that competition is no longer on to determine the best but the most backward.
    • Reservations are the biggest enemy of meritocracy which is the foundation of many progressive countries.
    • It has became a tool to meet narrow political ends through invoking class loyalties and primordial identities.
    • The dominant and elite class within the backward castes has appropriated the benefits of reservation and the most marginalised within the backward castes have remained marginalised.
    • Reservation has become the mechanism of exclusion rather than inclusion as many upper caste poors are also facing discrimination and injustice which breeds frustration in the society.

    Way forward

    • Meanwhile, calls for reform and ret­hinking reservation policies get louder; one question is whether there’s a need to continue with reservation and if benefits have reached targets.
    • The challenge for India is that while many sections of the society remain disadvantaged, political action has resulted in the relative discrimination within reserved groups.
    • As the reservation pie grows larger, in effect, it becomes a method of exclusion rather than inclusion.
    • It is time that India has to make a critical assessment of its affirmative action programs.
    • Simplification, legislative sunsets, and periodic reviews should be important principles in the redesign.

  • Vamsadhara River Water Dispute

    Andhra Pradesh  and Odisha CM recently held talks to iron out all differences with regard to the sharing of Vamsadhara River waters.

    Note all major rivers over which inter-state disputes exist say Narmada, Mahadayi, Cauvery, Krishna, etc. Observe their flow and the area swept.

    Also, refer your atlas to check the complicated border sharings between Chhatisgarh, AP/Telangana and Odisha.

    Vamsadhara River

    • River Vamsadhara is an important east-flowing river between Rushikulya and Godavari, in Odisha and Andhra Pradesh.
    • The river originates in the border of Thuamul Rampur in the Kalahandi district and Kalyansinghpur in Rayagada district of Odisha.
    • It runs for a distance of about 254 kilometres, where it joins the Bay of Bengal at Kalingapatnam, Andhra Pradesh.
    • The total catchment area of the river basin is about 10,830 square kilometres.

    The dispute

    • Andhra Pradesh wants to build the Neradi bridge across the river which will be possible only after Odisha’s consent.
    • Odisha argues that the flood flow canal would result in drying up the existing river bed and consequent shifting of the river affecting the groundwater table.
    • Odisha also raised the issue of scientific assessment of available water in Vamsadhara at Katragada and Gotta Barrage, Andhra Pradesh and the basis for sharing the available water.

    Back2Basics: Interstate River Water Disputes

    • River waters use/harnessing is included in states jurisdiction. However, article 262 of the Constitution provides for the adjudication of inter-state water disputes.
    • Under this, Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
    • The President of India may also establish an interstate council as per Article 263 to inquire and recommend on the dispute that has arisen between the states
    • The Parliament has enacted the two laws, the River Boards Act (1956) and the Inter-State Water Disputes Act (1956).
    • Under this, Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
    • The Inter-State Water Disputes Act empowers the Central government to set up an ad hoc tribunal for the adjudication of a dispute between two or more states in relation to the waters of an inter-state river or river valley.
    • The award of the tribunal is final and binding on the parties to the dispute.
    • Neither the Supreme Court nor any other court is to have jurisdiction in respect of any water dispute which may be referred to such a tribunal under this Act.

  • Central Administrative Tribunal (CAT) bench for the UT of J&K and Ladakh

    The union govt. has inaugurated the 18th Bench of Central Administrative Tribunal (CAT) for the Union Territories of Jammu and Kashmir and Ladakh.

    Try this question from our AWE initiative:

    “The Central Administration Tribunal which was established for redressal of grievances and complaints by or against central government employees nowadays is exercising its powers as an independent judicial authority.” Explain. (10 Marks)

    What is Central Administrative Tribunal (CAT)?

    • The Central Administrative Tribunal had been established under Article 323 – A of the Constitution for adjudication of disputes and complaints with respect to recruitment and conditions of service.
    • It aims to provide speedy and inexpensive justice to the aggrieved public servants.
    • It adjudicates for the persons appointed to public services and posts in connection with the affairs of the Union or other authorities under the control of the Government.
    • In pursuance of Article 323-A, the Parliament has passed the Administrative Tribunals Act in 1985.
    • The act authorizes the Central government to establish one Central Administrative Tribunal and the state administrative tribunals.

    Composition of the CAT

    • The CAT is a specialist body consisting of Administrative Members and Judicial Members who by virtue of their specialized knowledge are better equipped to dispense speedy and effective justice.
    • A Chairman who has been a sitting or retired Judge of a High Court heads the Central Administrative Tribunal.
    • There are now 18 Benches and 21 Circuit Benches in the CAT all over India.

    Its functioning

    • It exercises jurisdiction only in relation to the service matters of the parties covered by the Administrative Tribunals Act, 1985.
    • The Tribunal is guided by the principles of natural justice in deciding cases and is not bound by the procedure, prescribed by the Civil Procedure Code.
    • Under Section 17 of the Administrative Tribunal Act, 1985, the Tribunal has been conferred with the power to exercise the same jurisdiction and authority in respect of contempt of itself as a High Court.

    Independence of working

    • The conditions of service of the Chairman and Members are the same as applicable to a Judge of High Court as per the Administrative Tribunals (Amendment) Act, 2006.
    • The orders of CAT are challenged by way of Writ Petition under Article 226/227 of the Constitution before respective High Court in whose territorial jurisdiction the Bench of the Tribunal is situated.

  • Taking care of finances of local governments

    This article makes some suggestions to improve local finance and argues that the extant fiscal illusion is a great deterrent to mobilisation.

    Advantageous position in handling disasters

    • In terms of information, monitoring and immediate action, local governments are at an advantage, and eminently, to meet any disaster such as COVID-19.
    • While increasing the borrowing limits of the state form 3.5% of GDP to 5%, there was a recognition that local governments should be fiscally empowered immediately.
    • This is a valid signal for the future of local governance.

    4 challenges posed by Covid and addressing them collectively

    • COVID-19 has raised home four major challenges:1) economic, 2) health, 3) welfare/livelihood 4) resource mobilisation.
    • These challenges have to be addressed by all tiers of government in the federal polity, jointly and severally.

    Local government empowerment: 5 critical areas

    • 1) Own revenue is the critical lever of local government empowerment.
    • But the several lacunae that continue to bedevil local governance have to be simultaneously addressed.
    • 2) The new normal demands a paradigm shift in the delivery of health care at the cutting edge level.
    • 3) The parallel bodies that have come up after the 73rd/74th Constitutional Amendments have considerably distorted the functions-fund flow matrix at the lower level of governance.
    • 4) There is yet no clarity in the assignment of functions, functionaries and financial responsibilities to local governments.
    • Functional mapping and responsibilities continue to be ambiguous in many States.
    • Instructively, Kerala attempted even responsibility mapping besides activity mapping.
    • 5) The critical role of local governments will have to be recognised by all.

    Let’s look into resource mobilisation issue: 3 Heads

    • A few suggestions for resource mobilisation are given under three heads: 1) local finance, 2) Members of Parliament Local Area Development Scheme-MPLADs, 3) the Fifteenth Finance Commission (FFC).

    1. Local finance

    • Property tax collection with appropriate exemptions should be a compulsory levy and preferably must cover land.
    • The Economic Survey 2017-18 points out that urban local governments, or ULGs, generate about 44% of their revenue from own sources as against only 5% by rural local governments, or RLGs.
    • Per capita own revenue collected by ULGs is about 3% of urban per capita income while the corresponding figure is only 0.1% for RLGs.
    • There is a yawning gap between tax potential and actual collection, resulting in colossal underperformance.
    • When they are not taxed, people remain indifferent.
    • LGs, States and people seem to labour under a fiscal illusion.
    • In States such as Uttar Pradesh, Bihar and Jharkhand, local tax collection at the panchayat level is next to nil.
    • Property tax forms the major source of local revenue throughout the world.
    • All States should take steps to enhance and rationalise property tax regime.
    • A recent study by Professor O.P. Mathur shows that the share of property tax in GDP has been declining since 2002-03.
    •  The share of property tax in India in 2017-18 is only 0.14% of GDP as against 2.1% in the Organisation for Economic Co-operation and Development (OECD) countries.
    • If property tax covers land, that will hugely enhance the yield from this source even without any increase in rates.

    Other 2 options for raising finances

    • 1) Land monetisation and betterment levy may be tried in the context of COVID-19 in India. To be sure, land values have to be unbundled for socially relevant purposes.
    • 2) Municipalities and even suburban panchayats can issue a corona containment bond for a period of say 10 years.
    • We are appealing to the patriotic sentiments of non-resident Indians and rich citizens.
    • Needless to say, credit rating is not to be the weighing consideration.
    • That the Resurgent India Bond of 1998 could mobilise over $4 billion in a few days encourages us to try this option.

    2) MPLADS

    • The suspension of MPLADS by the Union government for two years is a welcome measure. The annual budget was around ₹4,000 crore.
    • The Union government has appropriated the entire allocation along with the huge non-lapseable arrears.
    • MPLADs, which was avowedly earmarked for local area development, must be assigned to local governments, preferably to panchayats on the basis of well-defined criteria.

    3) Fifteenth finance commission-FFC

    • A special COVID-19 containment grant to the LGs by the FFC to be distributed on the basis of SFC-laid criteria is the need of the hour.
    • The commission may do well to consider this.
    • The local government grant of ₹90,000 crore for 2020-2021 by the FFC is only 3% higher than that recommended by the Fourteenth Finance Commission.
    • Building health infrastructure and disease control strategies at the local level find no mention in the five tranches of the packages announced by the Union Finance Minister.

    Suggestions related to grants

    • The ratio of basic (i.e. with no conditions) to tied (with condition)grant is fixed at 50:50 by the commission.
    • In the context of the crisis under way, all grants must be untied  for freely evolving proper COVID-19 containment strategies locally.
    • The 13th Finance Commission’s recommendation to tie local grants to the union divisible pool of taxes to ensure a buoyant and predictable source of revenue to LGs (accepted by the then Union government) must be restored by the commission.

    Consider the question “The stable source of revenue for the local government bodies whether from their own sources or in the form of grants should lie at the heart of efforts to empower them. Comment.”

     Conclusion

    COVID-19 has woken us up to the reality that local governments must be equipped and empowered. Relevant action is the critical need.

    B2BASICS:

    73rd and 74th Amendment Acts, 1993

    • It’s been 25 years since decentralized democratic governance was introduced in India by the 73rd and 74th Constitution Amendments, which came into force on April 24 and June 1, 1993, respectively.
    • The 73rd Amendment to the Constitution (Part IX) has given constitutional status to the Panchayats, and has provided it with a substantial framework. It envisions the Panchayats as the institutions of local self-governance and also the universal platforms for planning and implementing programmes for economic
      development and social justice.
    • The creation of lakhs of “self-governing” village panchayats and gram sabhas, with over three million elected representatives mandated to manage local development, was a unique democratic experiment.
    • Article 243A gives constitutional recognition to the Gram Sabha as a body consisting of persons registered in the electoral rolls relating to a village comprised within the area of the Panchayat at the village level.
    • The 74th Amendment Act provided for the constitution (Part IXA) of three types of municipalities in urban areas depending upon the size and area.
    • The Constitution provides for a complete institutional mechanism including reservation for women and formation of State Finance Commissions (SFCs) for local democracy.

  • Gairsain to be Uttarakhand new Summer Capital

    The Uttarakhand Governor has given her assent for declaration of Bhararisen (Gairsain) in Chamoli district as its summer capital.

    Practice question:

    Q. Discuss the feasibility of having multiple administrative capitals for some states in India.

    Gairsain

    • Gairsain is situated at the eastern edge of the vast Dudhatoli mountain range, located almost at the centre of the state, at a distance of approximately 250 kilometres from Dehradun.
    • It is easily accessible from both the Garhwal and the Kumaon divisions, and in a way, acts as the bridge between the two regions.
    • The state Assembly is located in Dehradun, but sessions are held in Gairsain as well.

    Why Gairsain is held as summer capital?

    • Gairsain was best suited to be the capital of the mountainous state as it was a hilly region falling on the border of Kumaon and Garhwal regions.
    • Even when Uttarakhand was carved out as a separate state from UP on November 9, 2000, statehood activists had contended that Gairsain was best suited to be the capital.
    • But it was Dehradun in the plains that were named the temporary capital. The issue is largely political.

    What are the other examples of multiple capital cities?

    • Several countries in the world have implemented the concept.
    • In Sri Lanka, Sri Jayawardenepura Kotte is the official capital and seat of the national legislature, while Colombo is the de facto seat of the national executive and judicial bodies.
    • Malaysia has its official and royal capital and seat of the national legislature at Kuala Lumpur, and Putrajaya is the administrative centre and seat of the national judiciary.
    • Among Indian states, Maharashtra has two capitals– Mumbai and Nagpur (which holds the winter session of the state assembly).
    • Himachal Pradesh has capitals at Shimla and Dharamshala (winter).
    • The former state of Jammu & Kashmir had Srinagar and Jammu (winter) as capitals (remember Darbar Move).

    Also read:

    https://www.civilsdaily.com/news/concept-of-three-capitals-in-andhra-pradesh/

  • Article 1 of the Indian Constitution

    The Supreme Court has ordered that a plea to change India’s name exclusively to ‘Bharat’ be converted into a representation and forwarded to the Union government for an appropriate decision.

    Note:

    Whenever such articles are in news, make sure to revise entire Part. Like in this case Part I –  Articles 1, 2, 3 and 4. See the B2b section.

    What is the issue?

    • The petition seeks an amendment to Article 1 of the Constitution, which says “India, that is Bharat, shall be a Union of States…”
    • It wants ‘India’ to be struck off from the Article.

    Article 1 of the Constitution

    • Article 1 in the Constitution states that India, that is Bharat, shall be a Union of States.
    • The territory of India shall consist of: The territories of the states, The Union territories and Any territory that may be acquired in future.

    The names of the States and the Unions have been described in the First Schedule. This schedule also holds that there are four Categories of State and territories – Part A, Part B, Part C and Part D.

    • Part A – includes the nine provinces which were under British India
    • Part B – princely states consisted of this category
    • Part C – centrally administered five states
    • Part D – Andaman and Nicobar Islands

    Abolishing of these schedules

    • In the seventh amendment of the Constitution in 1956, the distinction between Part A and Part B states was abolished.
    • Subsequently, states were reorganized on a linguistic basis.
    • As a result, several new states were formed, eg. Haryana, Goa, Nagaland, Mizoram etc. At present, there are 28 States and 8 UTs (corrected).

    Debate over name change

    • Bharat and India are both names given in the Constitution. India is already called ‘Bharat’ in the Constitution”.
    • The petition says that India is a name of foreign origin. The name can be traced back to the Greek term ‘Indica’.
    • The word ‘Bharat’ is closely associated with our Freedom Struggle as the cry was ‘Bharat Mata ki Jai’.
    • Chauvinists argue that the name change will ensure citizens to get over the colonial past and instil a sense of pride in our nationality.

    What 2016 ruling has to say?

    • The apex court had dismissed a similar petition in 2016.
    • Then CJI T.S. Thakur orally remarked that every Indian had the right to choose between calling his country ‘Bharat’ or ‘India’.
    • CJI said that the Supreme Court had no business to either dictate or decide for a citizen what he should call his country.

    Back2Basics

    Article 2

    • Article 2 states that the parliament may, by law, admit new states into the Union of India or establish new states on terms and conditions it deems fit.
    • For e.g. the addition of the State of Sikkim by the 35th (1974) and 36th (1975) constitutional amendments.

    Article 3

    • Article 3 empowers the parliament to form a new state by separation of a part of the territory of an established state or to unite two or more states or parts of states or by uniting any territory to a part of any state.
    • This article provides that area of any state can reduced or increased and alter the boundaries or change the name of a state.
    • Even though the state boundaries are subject to change, their area cannot be acquired by a foreign state.
    • There is also a saving clause in the article to protect the rights of the state.
    • The first condition is that no bill for the purpose can be introduced in either house except on the recommendation of the President of India.
    • Second, whether the proposal contains the alternation of the area, boundaries or name of the state mentioned, it has to refer by President to the Legislatures of concerned states, for expressing opinions.
    • Such opinion has to be expressed within a period specified by the President. In any case, the views expressed do not bind the decisions of either the President or the Parliament

    Article 4

    • This article specifies that the laws provided in article 2 and 3, admission/establishment of new states and alteration of names, areas and boundaries etc. of established states, are not to be considered amendments of the Constitution under article 368.
    • It means these can be passed without resorting to any special procedure and by a simple majority.

  • What is Inner Line Permit (ILP) and what is its CAA context?

    The Supreme Court has declined to stay the operation of a Presidential order which petitioners claimed deprived Assam of the powers to implement the Inner Line system in its districts and limit the applicability of the Citizenship (Amendment) Act.

    Try this:

    Q. The NRC fails to resolve the illegal immigration issue in Assam. Critically Analyse.

    In light of the ongoing pandemic, the fumes of protests over NRC/CAA have somewhat vanished. However, one must not forget the fundamental linkages between the NPR/NRC/CAA/ILP etc.

    The Inner Line

    • A concept drawn by colonial rulers, the Inner Line separated the tribal-populated hill areas in the Northeast from the plains.
    • To enter and stay for any period in these areas, Indian citizens from other areas need an Inner Line Permit (ILP).
    • Arunachal Pradesh, Nagaland and Mizoram are protected by the Inner Line, and lately, Manipur was added.
    • The concept originates from the Bengal Eastern Frontier Regulation Act (BEFR), 1873.

    Its inception

    • The policy of exclusion first came about as a response to the reckless expansion of British entrepreneurs into new lands which threatened British political relations with the hill tribes.
    • The BEFR prohibits an outsider’s — “British subject or foreign citizen” — entry into the are beyond the Inner Line without a pass and his purchase of land there.
    • On the other hand, the Inner Line also protects the commercial interests of the British from the tribal communities.
    • After Independence, the Indian government replaced “British subjects” with “Citizen of India”.
    • Today, the main aim of the ILP system is to prevent settlement of other Indian nationals in the States where the ILP regime is prevalent, in order to protect the indigenous/tribal population.

    How is it connected to the Citizenship Amendment Act?

    • The CAA, which relaxes eligibility criteria for certain categories of migrants from three countries seeking Indian citizenship, exempts certain categories of areas, including those protected by the Inner Line system.
    • Amid protests against the Act, the Adaptation of Laws (Amendment) Order, 2019, issued by the President, amended the BEFR, 1873, extending it to Manipur and parts of Nagaland that were not earlier protected by ILP.

    What is the petition now?

    • The petition was against the Presidential order. It said the order took away the Assam government’s permissive power to implement the ILP.
    • This could have made the CAA inapplicable in these areas, the petition said.
    • The CAA has given fresh legs to the demand.

  • Overseas Citizenship of India (OCI) Visa Issue

    In a bid to allay fears of the OCI cardholders over the temporary suspension of their long-term visas, the Ministry for External Affairs has said the government will soon take an appropriate decision.

    UPSC may ask a statement based question in prelims considering various privileges of the OCI cardholders.

    What is the issue?

    • A large number of Indian citizens whose children are OCI cardholders and several people of Indian-origin having the card are unable to travel to India, even for emergency reasons, because of the temporary suspension of their long-term visa.

    Who is an Overseas Citizen?

    • An OCI is a category introduced by the government in 2005.
    • Persons of Indian Origin (PIOs) of certain categories as specified in the Citizenship Act, 1955 are eligible for being OCI cardholders.
    • Some of the benefits for PIO and OCI cardholders were different until 2015 when the government merged these two categories.
    • The MHA defines an OCI as a person who was a citizen of India on or after January 26, 1950; or was eligible to become a citizen of India on that date; or who is a child or grandchild of such a person, among other eligibility criteria.
    • According to Section 7A of the OCI card rules, an applicant is not eligible for the OCI card if he, his parents or grandparents have ever been a citizen of Pakistan or Bangladesh.

    Privileges to an OCI

    • OCI cardholders can enter India multiple times, get a multipurpose lifelong visa to visit India, and are exempt from registering with Foreigners Regional Registration Office (FRRO) no matter how long their stay.
    • If an individual is registered as an OCI for a period of five years, he/she are eligible to apply for Indian citizenship.
    • At all Indian international airports, OCI cardholders are provided with special immigration counters.
    • OCI cardholders can open special bank accounts in India, they can buy the non-farm property and exercise ownership rights and can also apply for a driver’s license and PAN card.
    • However, OCI cardholders do not get voting rights, cannot hold a government job and purchase agricultural or farmland.
    • They cannot run for public office either, nor can they travel to restricted areas without government permission.

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