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Type: Explained

These Newscards correspond to the explained section of various newspapers. They become immensely important for both prelims and mains and special attention needs to be paid to them

  • GST collections up 12.54% in February 2024

    gst

    In the news

    • India’s GST revenues saw a robust growth of 12.54% in February, exceeding ₹1.68 lakh crore.
    • This marked the fourth-highest monthly collection since GST’s inception.

    Why discuss this?

    • The Goods and Services Tax (GST) system in India has been a pivotal component of the country’s tax structure since its implementation in July 2017.
    • Analyzing the trends and performance of GST revenues offers insights into the economic health and growth trajectory of the nation.

    Gross Revenues Overview

    • Yearly Comparison: The fiscal year 2023-24 witnessed a noteworthy increase, reaching ₹18.4 lakh crore, indicating an 11.7% rise from the previous year.
    • Yearly Uptick: This year’s growth stands as the third highest since the implementation of GST.
    • Domestic Transactions: Revenues from domestic transactions surged by 13.9%.
    • Imported Goods: Revenue from goods imports also saw a notable increase, rising by 8.5%.

    State-wise Breakdown

    • Overall Collection Analysis: After accounting for refunds, February’s GST collection amounted to ₹1.51 lakh crore, indicating a substantial 13.6% growth from the previous year.
    • State Variability: States exhibited diverse performances, with some experiencing declines while others exceeded national growth averages.
    • Declining Revenues: Five states witnessed contractions, with Mizoram and Manipur showing significant decreases.
    • Outperforming States: Twelve states, including Jammu and Kashmir, Assam, and Maharashtra, surpassed the national average growth rate.

    Compensation Cess Details

    • Components of GST Intake: February’s gross GST intake included CGST, SGST, and IGST, amounting to ₹84,098 crore.
    • Cess Collections: Compensation cess collections amounted to ₹12,839 crore, with additional revenue from imported goods.
    • Revenue Distribution: The Central government allocated substantial sums to CGST and SGST from IGST collections.
    • Revenue Allocation: After regular distributions, CGST received ₹73,641 crore, while SGST received ₹75,569 crore.

    About Goods and Services Tax (GST)

    • Definition: GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
    • Legislation: The GST Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017. It is a single domestic indirect tax law for the entire country.
    • Tax Structure: It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
    • Taxation Points: Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.

    Components of GST

    • CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra).
    • SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra).
    • IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu).

    Advantages of GST

    • GST has mainly removed the cascading effect on the sale of goods and services.
    • Removal of the cascading effect has impacted the cost of goods.
    • Since the GST regime eliminates the tax on tax, the cost of goods decreases.
    • Also, GST is mainly technologically driven.
    • All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes.

    Issues with GST

    • High operational cost.
    • GST has given rise to complexity for many business owners across the nation.
    • GST has received criticism for being called a ‘Disability Tax’ as it now taxes articles such as braille paper, wheelchairs, hearing aid etc.
    • Fuels are not under GST, which goes against the ideals of the unification of commodities.

    Try this PYQ from CSP 2015:

    Q. All revenues received by the Union. Government by way of taxes and other receipts for the conduct of Government business are credited to the:

    (a) Contingency Fund of India

    (b) Public Account

    (c) Consolidated Fund of India

    (d) Deposits and Advances Fund

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  • RBI updates the Framework related to Regulatory Sandbox scheme

    Why in the News?

    Recently, there have been significant updates made to the guidelines for the Regulatory Sandbox (RS) scheme by the RBI.

    What is the Regulatory Sandbox (RS) scheme?

    • Regulatory Sandbox (RS) scheme involves live testing of new financial products or services in a controlled regulatory environment with potential relaxations for testing purposes.
    • It allows regulators, innovators, financial service providers, and customers to test new financial innovations, collecting evidence on benefits and risks.
    • It facilitates the development of innovation-friendly regulations, enabling the delivery of low-cost financial products.
    • It enables Dynamic Regulatory Environments that adapt to emerging technologies

    What is the objective behind this decision of RBI?

    • Through this decision, RBI aims to encourage responsible innovation in financial services and ensure compliance with digital personal data protection norms.
      • This new adopted framework will enable on-tap proposals, replacing the previous structure where RBI presented the challenges to a cohort of technology firms and required them to devise solutions within a specified time frame.
    • Secondly, through this decision, the central bank (RBI) remains committed to supporting innovation and technology in the financial sector.
      • For example, recenty, the Paytm Payments Bank, due to its failure to comply with RBI norms, stifled innovation.

    Key Highlights of the RBI’s Updated guidelines on Regulatory Sandbox scheme:

    • Framework Alignment with Digital Personal Data Protection Act: The updated framework requires sandbox entities to ensure compliance with provisions of the Digital Personal Data Protection Act, 2023.
    • Diverse Range of Target Applicants: The target applicants for entry to the RS are fintech companies, including startups, banks, financial institutions, any other company, Limited Liability Partnership (LLP) and partnership firms, partnering with or providing support to financial services businesses.
    • Digital Personal Data Protection Norms Compliance: Under the updated guidelines, participating entities will have to comply with digital personal data protection norms.
    • Origins of Regulatory Sandbox Framework: The RBI had issued the ‘Enabling Framework for Regulatory Sandbox’ in August 2019, after wide ranging consultations with stakeholders.

     What is the Significance of Regulatory Sandbox?

    • Learning by doing: RS provides empirical evidence on benefits and risks of emerging technologies, enabling regulators to make informed decisions.
    • Testing viability: RS allows testing of product’s viability without large-scale roll-out, enabling modifications before broader market launch.
    • Financial inclusion: RS can improve pace of innovation and technology absorption, leading to financial inclusion and improved financial reach.
    • Evidence-based decision-making: RS reduces dependence on industry consultations for regulatory decision-making.
    • Better outcomes for consumers: RS leads to increased range of products, reduced costs, and improved access to financial services.

    What are the challenges along with Regulatory Sandbox scheme?

    • Flexibility and time: Innovators may face constraints in the sandbox process, but time-bound stages can mitigate this.
    • Bespoke authorizations: Transparent handling of applications and clear decision-making principles can address risks associated with discretionary judgments.
    • Legal waivers: The RBI or its RS does not provide legal waivers.
    • Regulatory approvals: Successful experiments in the sandbox may still require regulatory approvals for wider application.
    • Legal issues: Transparency and clear criteria in the RS framework can mitigate legal issues like consumer losses, ensuring clarity on liability for risks.

    Conclusion: The RBI’s updated Regulatory Sandbox guidelines promote responsible financial innovation. Addressing time constraints and ensuring transparent post-sandbox approvals are vital for fostering a conducive environment for ongoing advancements in the financial sector.

  • Rare Diseases Care in India: Progress, Challenges, and Opportunities

    In the news

    What are Rare Diseases?

    • Global Perspective: Rare diseases are defined by the World Health Organization (WHO) as often debilitating lifelong diseases or disorders with a prevalence of 1 or less, per 1,000 population.
    • National Context: While India lacks a standardized definition, the Organisation of Rare Diseases – India suggests defining a disease as rare if it affects 1 in 5,000 people or less.

    Rare Diseases: Key Facts and Figures

    • India issued its first National Policy on Rare Diseases in March 2021, offering comprehensive strategies for prevention and management.
    • Less than 5% of rare diseases have therapies available in India, yet they affect nearly 1/5th of the population.
    • The Union Government allocated ₹50 lakh per patient for rare diseases treatment, but only approximately 49% of the allocated funds have been utilized.
    • There are approximately 7,000-8,000 rare diseases in India, with new diseases continually being identified and reported.

     

    National Policy on Rare Diseases, 2021: Highlights

    • Comprehensive Approach: This Policy offers a holistic framework encompassing prevention, management, and treatment strategies tailored to the unique needs of patients.
    • Financial Support: Recognizing the financial burden on patients, the policy aims to lower the exorbitant costs of treatment through targeted interventions and support mechanisms.
    • Research Focus: Emphasizing indigenous research, the policy lays the foundation for bolstering research initiatives in the field of rare diseases, fostering innovation and discovery.

    Other Initiatives in India

    • National Hospital-Based Registry: A pivotal component of the policy, the establishment of a national registry of rare diseases promises to provide invaluable epidemiological data, informing targeted interventions and resource allocation.
    • Early Screening and Prevention: The creation of Nidan Kendras aims to enhance early detection and prevention efforts, crucial for improving patient outcomes and reducing disease burden.
    • Capacity Building: Strengthening secondary and tertiary health facilities at Centres of Excellence underscores the commitment to enhancing healthcare infrastructure and service delivery.

    Challenges and Imperatives

    • Defining Rare Diseases: Despite significant progress, India lacks a standardized definition of rare diseases, necessitating clarity to guide policy and resource allocation effectively.
    • Funding Utilization: Concerns arise over the underutilization of allocated funds, highlighting the urgency to streamline resource allocation and enhance accountability mechanisms.
    • Patient Advocacy: Rare diseases patient advocacy groups play a pivotal role in advocating for timely access to treatment and sustainable funding support, urging policymakers and healthcare providers to prioritize patient-centric initiatives.

    Way Forward

    • Sustainable Funding: Ensuring sustainable funding support for rare diseases treatment is paramount to safeguarding patient well-being and fostering equitable access to care.
    • National Registry Implementation: Accelerating the establishment of a hospital-based national registry is imperative to harness the power of data-driven decision-making and advance rare diseases research.
    • Multidisciplinary Care: The creation of comprehensive care centers, coupled with initiatives to support caregivers, represents a crucial step towards enhancing patient outcomes and fostering a supportive healthcare ecosystem.

    Conclusion

    • As India commemorates World Rare Diseases Day, it stands at a pivotal juncture in its journey towards rare diseases care and advocacy.
    • By embracing a collaborative and patient-centric approach, India can surmount existing challenges, paving the way for a future where every individual affected by a rare disease receives the care and support they deserve.

    Try this PYQ from CSP 2014:

    Consider the following diseases

    1. Diphtheria
    2. Chickenpox
    3. Smallpox

    Which of the above diseases has/have been eradicated in India?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1, 2 and 3

    (d) None

     

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  • Cross-Voting in Rajya Sabha Elections

    cross voting rajya sabha

    In the news

    • Recent Rajya Sabha elections in Uttar Pradesh, Himachal Pradesh, and Karnataka have been marred by instances of cross-voting, prompting concerns over the integrity of the electoral process.

    Why discuss this?

    • Understanding the legal framework governing Rajya Sabha elections and the implications of cross-voting is crucial in addressing these concerns and upholding democratic principles.

    Rajya Sabha Elections and Cross-Voting

    • Constitutional Provision: Article 80 of the Constitution mandates the indirect election of Rajya Sabha representatives by the elected members of State Legislative Assemblies.
    • Historical Context: Rajya Sabha elections were traditionally uncontested until 1998, when cross-voting in Maharashtra marked a departure from this trend.

    Explained: Rajya Sabha Election Process

    Legal Provisions and Precedents

    • Open Ballot System: An amendment to the Representation of the People Act, 1951 in 2003 introduced open ballot voting for Rajya Sabha elections, aimed at curbing cross-voting.
    • Tenth Schedule (Anti-Defection Law): Introduced in 1985, this Schedule disqualifies legislators who voluntarily give up party membership or vote against party instructions. However, it does not apply to Rajya Sabha elections.
    • Court Rulings: The Supreme Court, in cases such as Kuldip Nayar versus Union of India (2006), upheld the open ballot system while clarifying that voting against party candidates in Rajya Sabha elections does not invoke disqualification under the Tenth Schedule.

    Current Challenges and Legal Remedies

    • Cross-Voting Impact: Instances of cross-voting undermine the democratic process and erode electoral integrity.
    • Judicial Intervention: The Supreme Court may initiate suo moto proceedings or review existing judgments to address the issue of cross-voting.
    • Disqualification Criteria: Voting against party lines in Rajya Sabha elections may be considered voluntary defection, warranting disqualification under the Tenth Schedule.

    Way Forward

    • Upholding the Intent: Instances of cross-voting undermine the transparency aimed at by the open ballot system, raising questions about the effectiveness of existing mechanisms.
    • Judicial Intervention: The Supreme Court’s commitment to safeguarding democracy provides hope for addressing cross-voting issues through suo moto Public Interest Litigation or appeals against disqualification rulings.
    • Revisiting Precedents: There is scope for the court to reinterpret its previous rulings in light of evolving circumstances, potentially aligning the consequences of cross-voting with the principles of the Tenth Schedule.
    • Deterrent Measures: Clarifying that cross-voting may constitute grounds for disqualification under the Tenth Schedule could serve as a deterrent against future instances.

    Conclusion

    • Upholding the principles of free and fair elections requires addressing the challenge of cross-voting in Rajya Sabha elections.
    • Judicial intervention and enforcement of existing laws are essential to safeguarding the integrity of the electoral process and preserving democratic norms.

    Try this PYQ from CSP 2020:

    Rajya Sabha has equal powers with Lok Sabha in

    (a) the matter of creating new All India Services

    (b) amending the Constitution

    (c) the removal of the government

    (d) making cut motions

     

    [wpdiscuz-feedback id=”tescdtxw4r” question=”Please leave a feedback on this” opened=”1″]Post your responses here.[/wpdiscuz-feedback]

  • On Irregularities in Vertical Devolution

    On Irregularities in Vertical Devolution

    Introduction

    • Recent agitations and concerns raised by state governments highlight critical issues in the practice of fiscal federalism in India.
    • Kerala and Karnataka governments, supported by others, have underscored the urgency for the 16th Finance Commission (FC) to address vertical and horizontal inequalities in devolution

    Also read:

    Explained: Financial Devolution among States

    Trends in Vertical Devolution

    • Shrinking Divisible Pool: Historically, the divisible pool consisted mainly of income taxes and excise duties shared with states. However, recent changes have seen the exclusion of certain taxes, like corporation taxes, from the divisible pool, reducing the share available for states.
    • Expansion of Cesses and Surcharges: Despite the GST implementation, new cesses and surcharges continue to be introduced, contributing to the exclusion of an increasing share of gross tax revenue from net proceeds, impacting vertical devolution.
    • Conflicting Data: Discrepancies in government-released information on the quantum of cesses and surcharges have raised concerns about transparency and accurate reporting, which are vital for assessing the true extent of vertical devolution challenges.

    Financial Implications

    • Collection Trends: Disaggregated data analysis reveals a significant rise in the collection of cesses and surcharges over the past decade, with amounts not shared with states but retained solely by the Union government, exacerbating the vertical devolution imbalance.
    • Cumulative Collection: Cumulatively, substantial amounts have been collected as cesses and surcharges, depriving states of their rightful share and necessitating corrective measures to address historical wrongs in vertical devolution.

    Challenges in Tied Transfers

    [A] Nature of Transfers:

    • Central Schemes: The requirement for state contributions to centrally sponsored schemes and central sector schemes places a financial burden on states, undermining their fiscal autonomy and perpetuating a patron-client relationship with the Union government.
    • Conditionalities: Grants provided to states often come with conditionalities, such as labelling requirements, further limiting states’ flexibility in utilizing funds according to their specific needs.
    • Loan Nature: Most capital transfers to states are in the form of loans, adding to states’ debt burdens and constraining their financial freedom.

    [B] Impact on Federal Dynamics:

    • Centralizing Tendency: Imposed conditionalities and the reliance on centrally sponsored schemes reinforce a centralizing tendency, eroding the principles of cooperative fiscal federalism and undermining states’ autonomy in fiscal matters.
    • Substitution of Untied Transfers: The substitution of untied transfers with centrally sponsored schemes introduces rigidity in Union-State relations, hindering effective collaboration and diluting the spirit of cooperative federalism envisioned in the Indian federal structure.

    Scrutiny by Comptroller and Auditor General (CAG)

    • Non-Transfer of Funds: Instances of non-transfer or short transfer of collected amounts, as highlighted by the Comptroller and Auditor General (CAG), raise concerns about the effective utilization of funds and the transparency of financial management practices.
    • Consequences:
      1. Defeat of Collection Logic: The failure to transfer cesses and surcharges to the designated reserve funds undermines the intended purpose of their collection, leading to inefficiencies and potential misappropriation of funds.
      2. Ruse for Fund Diversion: The discrepancies in fund transfers raise suspicions regarding the true intent behind cesses and surcharges, with indications that they may serve as a means to divert funds away from the divisible pool for other government expenditures.

    Deviations from Finance Commission (FC) Recommendations

    [A] Assessment of Union Government’s Claims:

    • Retention of Gross Tax Revenue: While the retention of a portion of gross tax revenue by the Union government has a basis in constitutional provisions, the failure to adhere to FC recommendations on sharing net proceeds raises questions about the government’s commitment to equitable fiscal federalism.
    • Failure in Net Proceeds Sharing: Analysis of the share of central taxes devolved to states against FC-stipulated percentages reveals consistent underperformance by the Union government, indicating a significant deviation from FC recommendations.

    [B] Quantitative Analysis:

    • Shortfalls: Comparisons of actual devolutions with FC-recommended shares highlight substantial shortfalls, amounting to significant cumulative amounts over the years, representing a systemic failure in achieving equitable distribution of resources among states.
    • Cumulative Impact: The cumulative amounts not devolved to states underscore the magnitude of the fiscal imbalance and the urgent need for corrective measures to rectify historical injustices in vertical devolution.

    Way Forward: Reform Agenda for the 16th Finance Commission

    [A] Corrective Measures

    • Compensations to States: Addressing historical wrongs in vertical devolution requires compensatory measures to ensure fair resource distribution among states and rectify past imbalances.
    • Accurate Reporting: Mandating accurate reporting of “net proceeds” in budget documents is essential for transparency and accountability in fiscal management, enabling stakeholders to assess the true extent of resource allocation.
    • Addressing Shortfalls: Providing lump sum untied grants to states to offset past shortfalls in devolution is crucial to restoring states’ fiscal autonomy and promoting cooperative federalism.

    [B] Legislative Action:

    • Limiting Cesses and Surcharges: Enacting legislation to impose strict limits on the collection of cesses and surcharges, with provisions for automatic expiry and prevention of rechristening, is necessary to prevent misuse and ensure transparency in revenue generation.

    Conclusion

    • The stance of the 16th Finance Commission on vertical devolution is pivotal for the survival of fiscal federalism in India, requiring decisive action to address existing challenges and uphold the principles of cooperative federalism.
  • Row over Karnataka Temple Bill

    temple

    In the news

    • The Karnataka government’s recent move to amend the law governing the taxation of Hindu temples sparked significant debate and controversy.
    • It aims to overhaul the existing framework, particularly in terms of income allocation and management.

    Proposed Changes in Temple Taxation

    The Karnataka Hindu Religious Institutions and Charitable Endowments (Amendment) Bill, 2024 aimed to modify several provisions in the existing law:

    • Income Allocation: The proposed change sought to divert 10% of the gross income of temples earning over Rs 1 crore annually to a common pool for temple maintenance. Section 19 of the Act outlines the purposes for which the common fund may be utilized, including religious studies, temple maintenance, and charitable causes.
    • Shift in Calculation: This change would shift from the previous norm of allocating 10% of the net income of temples with earnings over Rs 10 lakh annually.
    • Dedicated Common Pool: Additionally, 5% of the income of temples earning between Rs 10 lakh and Rs 1 crore annually would have been dedicated to the common pool.
    • Priests Welfare: The Congress government proposed utilizing the enhanced funds to support lower-income temples, provide assistance to ailing priests, and offer scholarships to priests’ families.

    Additional Amendments Proposed:

    • Committee of Management: The Bill proposed including a member skilled in Vishwakarma Hindu temple architecture and sculpture within the committee of management for temples.
    • Authority of Rajya Dharmika Parishat: It granted the Rajya Dharmika Parishat the power to appoint the chairman of temple management committees.
    • Infrastructure Oversight: The Bill mandated the creation of district-level and state high-level committees to oversee infrastructural projects facilitating temple pilgrimage.

    Criticism and Opposition

    • Interference into Religious Matters: BJP leaders accused the government of attempting to “rob” Hindu temples and questioned the selective targeting of Hindu institutions.
    • Questioning Motives: Concerns were raised regarding the selective taxation of Hindu temples, prompting questions about the government’s intentions.

    Constitutional Insights into the Issue

     

    The proposed Bill, which aimed to divert a percentage of temple income to a common pool, raised concerns about government interference in temple finances, potentially infringing on these constitutional rights under:

    • Article 25: Ensures individuals’ freedom to profess, practice, and propagate religion, subject to public order, morality, and health.
    • Article 26: Grants religious denominations autonomy to manage their religious affairs and establish institutions for religious and charitable purposes.

    Comparison with Other States

    • Telangana’s Model: Similar to Karnataka, Telangana also mandates temple contributions towards a common good fund, utilized for temple maintenance and related expenses.
    • Kerala’s Devaswom Boards: Kerala’s temples are managed by state-run Devaswom Boards, each with its own budget and administrative laws, overseen by government-appointed nominees.

    Issues with the Bill

    • Government Interference: The appointment of members from Hindu and other religions to temple management committees raises concerns about state involvement in temple affairs.
    • Contradiction to Secularism: Perceived as contradicting the principle of secularism advocating for a separation of religion and state involvement in religious matters.
    • Conflict with Autonomy: Opposition to the diversion of temple income for a common pool fund highlights concerns about encroachment on religious autonomy and financial mismanagement by the state.

    Conclusion

    • The Karnataka temple bill controversy underscores the complex interplay between governance, religion, and finance.
    • While intended reforms aimed to enhance temple infrastructure and support, differing interpretations and political alignments led to its rejection.
    • As states grapple with temple management, a balance between tradition, governance, and public welfare remains a constant challenge.

    Try this Question from CS Mains 2018:

    Q.How the Indian concept of secularism different from the western model of secularism? Discuss. (10)

     

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  • Criminals of Politics: Analysis of Rajya Sabha Candidates by ADR

    In the news

    • The Association for Democratic Reforms (ADR) and the National Election Watch has found that 36% of the newly elected Rajya Sabha candidates have declared criminal cases against themselves.

    Context:

    • Increase in Serious Crimes: 17% of total candidates face serious criminal charges, including with cases related to attempted murder, underscoring the gravity of the situation.
    • Biased Representation: Approximately 21% of the candidates are billionaires, with assets exceeding Rs 100 crore, reflecting the significant wealth amassed by certain individuals in the political arena.
    • Prevailing disparities: The majority (76%) of candidates belong to the 51-70 age group, with only 19% being women, reflecting gender disparities in political representation.

    Why does Criminality persist in Indian politics?

    • Political Patronage: Criminals seek political backing to sustain their illicit activities, while politicians rely on criminals for funding, muscle power, and electoral support.
    • Protracted Legal Processes: Lengthy court proceedings, averaging around 15 years, coupled with declining conviction rates, allow criminals to evade justice and continue their political careers.
    • Legal Ambiguity: Pending cases become a shield for tainted candidates, who exploit the “law will take its own course” narrative to deflect scrutiny.
    • Electoral Advantage: Candidates with criminal records may have higher chances of winning elections, incentivizing parties to field them despite ethical concerns.
    • Limited Scrutiny: Despite legal mandates for candidates to disclose criminal cases, voters often lack the awareness or resources to scrutinize this information effectively.
    • Vote Bank Dynamics: Parties exploit caste, religious, or regional loyalties, prioritizing short-term gains over candidate integrity.

    Impacts of Criminality in Indian politics:

    • Corrosive Effects: The fusion of crime and politics has corrosive effects on the governance. The nexus between crime and politics can exacerbate corruption and weaken governance structures. When politicians with criminal backgrounds hold office, there is a higher likelihood of corruption, misuse of power, and a lack of transparency in decision-making processes, all of which can have detrimental effects on the economy.
    • Undermining Democracy: Allowing criminals in politics undermines the development of a healthy democracy that India’s freedom fighters fought for. The impact extends to the provision of public goods. Research findings suggest that the effects are concentrated in less developed and more corrupt Indian states, indicating that the presence of criminal politicians hinders the effective delivery of public goods and services to constituents.
    • Economic Growth: While criminal candidates may win elections in the short term, their presence can hinder the long-term development of a robust democracy. The election of criminally accused politicians leads to lower economic growth in their constituencies. Studies show a 22% point lower yearly growth in the intensity of night-time lights, which serves as a proxy for economic activity, following the election of such politicians.

    Measures Taken to Address Criminalization in Politics

    [A] Legislative Interventions

    • Representation of the People Act, 1951: Sections 8(1), 8(2), and 8(3) establish grounds for disqualification of individuals convicted of certain offenses, barring them from contesting elections.
    • Conduct of Election Rules, 1961: Mandates candidates to file affidavits disclosing pending criminal cases and convictions, enhancing transparency in electoral processes.
    • Chapter IX A of Indian Penal Code: Defines and penalizes electoral offenses such as bribery and undue influence, deterring criminal activities in elections.

    [B] Establishment of Special Courts

    • Judicial Mechanisms: Special courts dedicated to expediting criminal cases against legislators and parliamentarians help ensure timely justice and accountability.
    • Tackling Impunity: Targeted prosecution of political figures accused of criminal activities reduces impunity and strengthens the rule of law.

    [C] Vohra Committee Report (1993)

    • Comprehensive Analysis: The Vohra Committee investigated the political-criminal nexus, highlighting its extent and proposing strategies to combat this menace.
    • Policy Recommendations: Recommendations from the report informed policy decisions aimed at disrupting criminal networks operating within political structures.

    [D] Election Commission Initiatives

    • Affidavit Reforms: Election Commission directives mandate candidates to declare criminal records, financial assets, and educational qualifications, empowering voters with crucial information.
    • Moral Code of Conduct: Effective enforcement of ethical standards during elections minimizes the influence of criminal elements and promotes fair electoral practices.

    Major Judicial Interventions

    Background Key Outcome Significance
    Union of India vs. Association for Democratic Reforms (2002) Challenged lack of transparency in electoral processes regarding candidates’ records. Supreme Court mandated Election Commission to compel candidates to disclose criminal, financial, and educational details. Empowered voters with vital information for informed choices, fostering accountability in elections.
    Ramesh Dalal vs. Union of India (2005) Imposed disqualification criteria for convicted candidates. Supreme Court ruled sitting MPs/MLAs would be disqualified if convicted and sentenced to imprisonment for two years or more. Established stringent disqualification criteria to deter candidates with criminal backgrounds, enhancing integrity of elected representatives.
    Lily Thomas vs. Union of India (2013) Addressed interpretation of Section 8(4) of the Representation of the People Act, 1951. Supreme Court declared Section 8(4) unconstitutional, disqualifying legislators convicted and sentenced to two years or more. Closed loopholes allowing convicted legislators to retain seats, reinforcing accountability and integrity in the political system.
    People’s Union for Civil Liberties vs. Union of India (2013) Addressed voters’ rights to reject candidates with criminal backgrounds through NOTA. Supreme Court ruled voters could reject all candidates using NOTA in electronic voting machines (EVMs). Introduced NOTA as a voting option, empowering voters to express dissatisfaction with criminalized politics, and promoting cleaner elections.

    Way Forward

    • Decriminalization Legislation: Enact laws to prevent individuals facing serious criminal charges from contesting elections, ensuring that those with criminal backgrounds are barred from political office.
    • State Funding of Elections: Introduce state funding of elections to reduce the influence of money and muscle power, thereby minimizing the role of criminals in financing political campaigns.
    • Enhanced Voter Awareness: Educate voters about the detrimental effects of criminalization in politics and provide easily accessible information about candidates’ backgrounds to enable informed decision-making.
    • Empowering Election Commission: Grant Election Commission broader regulatory powers to enforce inner-party democracy, regulate party finances, and curb the influence of criminals in political parties.
    • Continued Judicial Oversight: Uphold the judiciary’s role in safeguarding electoral integrity by delivering landmark judgments that reinforce accountability, transparency, and ethical conduct among elected representatives.
    • Strict Enforcement of Disqualification Criteria: Ensure strict implementation of disqualification criteria for convicted politicians, irrespective of their appeals or legal maneuvers.

    Try this question from CS Mains 2017:

    Q. Young people with ethical conduct are not willing to come forward to join active politics. Suggest steps to motivate them to come forward. (150 Words, 10)

     

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  • Why sustainable funding matters for India’s ‘Science Power’ ambition?

    In the news

    • National Science Day is commemorated on Feb 28 every year to commemorate the birth anniversary of Sir CV Raman.

    About National Science Day 2024

    • Theme: “Science for Sustainable Development” underscores India’s commitment to leveraging science and technology for long-term socio-economic progress.
    • Key Driver: Science and technology play pivotal roles in India’s journey toward achieving developed nation status by 2047, aligning with global sustainability goals.

    The Current Scenario: R&D Spending in India

    • Low Expenditure: India’s expenditure on research and development (R&D) stands at a mere 0.64% of GDP, a concerning figure for a nation aspiring for technological advancement.
    • Stagnant Growth: Despite calls to double R&D spending, India’s allocation for fundamental research has seen a decline in recent years, highlighting the need for enhanced investment in scientific endeavours.

    science

    Comparative Analysis with Developed Nations

    • Global Benchmarks: Developed nations typically allocate 2-4% of their GDPs to R&D, showcasing a stark contrast to India’s minimal spending. Moreover, even Nations like South Korea have shown significant growth in R&D expenditures, averaging 10.9% annually over 2000–10 and 7.8% for 2010–19.
    • Private Sector Contribution: In economically advanced countries, the private sector contributes significantly to R&D investment, unlike India, where public funding dominates. In leading economies, the corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD), while in India, its share is only 37%. This disparity highlights the need for increased private sector investment in R&D in India.

    What is the significance of Sustainable Funding for India’s ‘Science Power’ Ambition?

    • Low Corporate Sector Investment: The primary reason for India’s low R&D expenditure is the inadequate investment by the corporate sector. While leading economies see two-thirds of R&D funding coming from corporations, in India, this share is only 37%. Increasing corporate investment in R&D is essential to boost innovation and technological progress.
    • Underestimation of GERD Data: There is evidence suggesting that India’s Gross Expenditure on R&D (GERD) data may be underestimated. The current method of data collection relies on surveys and secondary sources like annual reports and databases like Prowess. However, this method may not capture all R&D-performing enterprises, leading to incomplete statistics
    • Foreign Investment Discrepancy: Foreign multinational corporations (MNCs) play a significant role in R&D spending in India. However, the latest statistics indicate that foreign MNCs’ R&D spending in India is only about 10% of what U.S. firms report spending in the country. Encouraging higher foreign investment in R&D can contribute to India’s scientific growth.
    • Challenges in Data Collection: Collecting accurate data from the private corporate sector poses a challenge due to factors like firms’ reluctance to disclose information and the limitations of existing databases like DSIR and Prowess. Enhancing data collection methods is crucial to obtaining a comprehensive picture of R&D activities in the country.

    Challenges Faced by India in Achieving ‘Science Power’ Ambition:

    • Limited Research Workforce: India faces a shortage of high-quality universities and appropriate job opportunities for graduates, which impedes the expansion of its research workforce. To enhance scientific capabilities, there is a critical need to establish more top-tier educational institutions and create avenues for skilled professionals in the field.
    • Bureaucratic Hurdles: The bureaucratic red tape in India poses a significant challenge to research and innovation. Delays in fund disbursement, lengthy recruitment processes, and administrative inefficiencies hamper the pace of scientific advancements. Streamlining administrative procedures and enhancing efficiency are essential to foster a conducive environment for research.
    • Lack of International Collaboration: India has relatively low levels of international collaboration compared to other developing nations, limiting its exposure to global scientific advancements and partnerships. Strengthening ties with international counterparts can facilitate knowledge exchange, technology transfer, and collaborative research initiatives.
    • Inadequate Funding: India’s R&D expenditure as a percentage of GDP is significantly lower than other emerging nations like China and Brazil, as well as established economies like the United States and Europe. Insufficient funding limits the capacity for research and innovation, hindering India’s progress in the scientific domain.
    • Infrastructure and Technological Challenges: The development of cutting-edge technologies such as artificial intelligence and semiconductor manufacturing requires robust infrastructure and technological capabilities. India’s limited investment in science and technology, coupled with bureaucratic hurdles and outdated procurement systems, hinders the adoption of global best practices and impedes research progress.

    Way forward

    • Sustainable funding: India is committed in making progress towards becoming a developed country by 2047 through sustainable means, including R&D funding.
    • Streamline bureaucracy: India needs to streamline its bureaucratic processes to enhance efficiency and reduce delays in funding and project approvals.
    • Increase R&D spending: India aims to increase its Gross Expenditure on R&D (GERD) to 2% of GDP, which is a national goal for some time.
    • Improve infrastructure and technology: India needs to improve its infrastructure and technological capabilities to drive innovation and research progress.
    • Increase in International collaboration: India aims to increase its international collaboration to facilitate knowledge exchange, technology transfer, and collaborative research initiatives.

    Conclusion

    • As India commemorates National Science Day under the theme of sustainable development, addressing the imperative of sustainable funding for science emerges as a critical priority.
    • By fostering a conducive ecosystem for R&D investment and optimizing budget utilization, India can pave the way for transformative scientific advancements and sustainable socio-economic progress.

    Back2Basics: CV Raman and Raman’s Effect

    Details
    Birth Chandrasekhar Venkata Raman born in Tiruchirappalli, Madras Presidency on 7 November 1888.
    Appointment in IISc Appointed as Director of Indian Institute of Science (IISc) in Bangalore in 1933, served until retirement in 1948.
    Initial Research Published first research paper, “Unsymmetrical diffraction bands due to a rectangular aperture”, in 1906 while still a graduate student.
    Raman Effect Discovered phenomenon where light changes wavelength and frequency upon traversing transparent material, known as Raman Effect.
    Acoustics Worked on theory of transverse vibration of bowed string instruments, studied acoustics of various musical instruments including Indian ones.
    Colour of Sea Water Conducted observations on sea water using spectroscope,

    Concluded blue color not due to Rayleigh scattering, studied water color attribution.

    Spectroscopic Behaviour Investigated behavior of crystals spectroscopically, studied composition and characteristics of diamonds and colorful materials.
    Angular Momentum Discovered light photons have angular momentum, shifted to atoms that absorb them.
    Scientific Institutions Established Raman Research Institute in Bengaluru in 1949, became its first director.
    Awards and Recognition Awarded Nobel Prize in Physics in 1930 for work on scattering of light and discovery of Raman Effect, first Indian and Asian to win Nobel in sciences.

    Elected member of Royal Society of London in 1924.

    Honored with India’s highest civilian award, Bharat Ratna, in 1954.

    Received Lenin Peace Prize, Franklin Medal, and Hughes Medal in 1930.

  • 200 Years of Kittur Uprising: Commemorating Rani Chennamma

    kittur

    Introduction

    • In 1824, a fleet of 20,000 British soldiers attempted to invade the former princely state of Karnataka, positioning themselves at the foothills of the Kittur fort.
    • However, Rani Chennamma, the Queen of Kittur, led a valiant resistance, marking one of the earliest woman-led anti-colonial struggles in India.

    Kittur Uprising: Historical Context

    • Background: Rani Chennamma’s rebellion against the British East India Company in 1824 is celebrated as a significant event in Karnataka’s political history.
    • Revolt Catalyst: The Company’s refusal to recognize Shivalingappa, adopted as the successor of Kittur under the ‘doctrine of lapse’, triggered the conflict.
    • Military Confrontation: Rani Chennamma led the Kittur army in a fierce battle against the British forces, resulting in the death of British official John Thackery.

    Doctrine of Lapse

    • Introduced by Lord Dalhousie in 1848, the Doctrine of Lapse aimed at expanding British territories in India.
    • The policy was based on the principle that a princely state without a suitable heir should become part of the British Empire.
    • Applied to princely states where the ruler died without a natural or legally adopted male heir, enabling the British to annex those states.
    • The policy was seen as illegitimate by many Indian rulers and played a role in the Indian Rebellion of 1857.
    • Several states annexed due to this Doctrine, include Satara (1848), Jaitpur (1849), Sambalpur (1849), Udaipur (1850), Jhansi (1853), and Nagpur (1854).
    • Prior to the Doctrine of Lapse, princely states had a traditional practice of selecting an heir from a group of candidates known as bhajans.
    • The policy was abandoned in 1859, two years after the end of the Company Rule in India.

    Legacy of Rani Chennamma

    • Political Leadership: Rani Chennamma’s role as an astute administrator and seasoned stateswoman is highlighted in historical records.
    • Popular Perception: Despite her contributions, Rani Chennamma’s significance in national consciousness emerged later, as Karnataka became a state much later than other regions.
    • Historical Interpretation: Folklore and local traditions fondly remember Rani Chennamma’s bravery and resilience, portraying her as a protector and guardian in Kannada lavanis or folk songs.

    Post-Rebellion Period

    • Imprisonment and Death: Following the British capture of Kittur Fort in 1824, Rani Chennamma and her family were imprisoned. She passed away in captivity in 1829.
    • Historical Records: Historians emphasize Rani Chennamma’s commitment to serving her people, even during her imprisonment, as evidenced by her efforts to support her family and people.

    Commemoration and Contemporary Relevance

    • Naanoo Rani Chennamma Campaign: Social groups across India are organizing a national campaign on February 21, commemorating Rani Chennamma’s rebellion.
    • Campaign Objectives: The campaign aims to mobilize women against patriarchal, anti-democratic, and casteist forces, invoking Rani Chennamma’s memory as a symbol of resistance and empowerment.
    • Political Significance: The campaign underscores the need for gender equality, representation, and social justice, drawing inspiration from Rani Chennamma’s legacy of courage and leadership.
  • Should India have regional benches of the Supreme Court?

    Why in the News?

    Recently, the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice informed the Lok Sabha that the Law Ministry has accepted its recommendation to establish regional benches of the Supreme Court across India.

    About the Supreme Court:

    • The Supreme Court of India has three jurisdictions under the Constitution: original, appellate, and advisory.
    • The Supreme Court serves as a Constitutional Court as well as a Court of Appeal. The Court sits in benches of varying sizes, as determined by the Registry on the directions of the Chief Justice of India (CJI).

    About SC Constitution Benches:

    • Constitution Bench typically comprises of five, seven, or nine judges who deliberate on a specific issue related to constitutional law.
    • Article 130 says that “the Supreme Court shall sit in Delhi or in such other place or places, as the Chief Justice of India may, with the approval of the President, from time to time, appoint.” It shows that the Supreme Court Rules give the Chief Justice of India the power to constitute Benches.
    • Article 145(3) of the Constitution provides for the setting up of a Constitution Bench.
      • Under Article 143, a minimum of five judges need to sit for deciding a case involving a “substantial question of law as to the interpretation of the Constitution”, or for hearing any reference, which deals with the power of the President to consult the Court.

     View of Supreme Court on setting of regional benches

    • Recently, CJI D.Y. Chandrachud announced his intent to create Constitution Benches of varied strengths as a permanent feature of the Court.
    • The Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice had earlier noted that the demand for having regional benches of the Supreme Court is about ‘access to justice,’ which is a Fundamental Right under the Constitution. However, the Supreme Court previously has been continuously rejecting the idea.
    • During 2019, former Chief Justice Ranjan Gogoi supported the view, but minimal progress was made during his tenure. In contrast, during the 74-day tenure of former Chief Justice U.U. Lalit, 25 Constitution Bench matters were listed before five-judge benches.

    Recommendations by the Law Commissions on the setting of regional benches:

    • 10th Law Commission (95th Report), 1984: The Supreme Court of India should consist of two Divisions, namely (a) Constitutional Division, and (b) Legal Division”, and that “only matters of Constitutional law may be assigned to the proposed Constitutional Division”.
    • 11th Law Commission (125th Report), 1988: Recommended for splitting the (Supreme) Court into two halves deserves to be implemented.
    • 18th Law Commission (229th Report), 2009: Recommended that “a Constitution Bench be set up at Delhi to deal with constitutional and other allied issues”, and “four Cassation Benches be set up in the Northern region/zone at Delhi, the Southern region/zone at Chennai/Hyderabad, the Eastern region/zone at Kolkata and the Western region/zone at Mumbai to deal with all appellate work arising out of the orders/judgments of the High Courts of the particular region”.

    The Union Government today said the setting up of the Regional Benches of the Supreme Court in different parts of the country is under examination of the Constitutional Bench of the Supreme

    Significance of Regional Benches in India:

    • High Pendency of Cases: In the Supreme Court, a little more than 80,000 cases are currently pending adjudication out of which 60,000 cases are civil. This cannot be alleviated only through usual methods and is highly dependent upon the efforts and efficiency of the Chief Justice.
    • Insufficient Case Disposal Rates: In 2023, the Supreme Court witnessed a 31% increase in the disposal of cases compared to 2022.
      • However, such a disposal rate is negligible when compared to the total pendency of cases.
    • Democratization of Justice: The setting up of regional benches would also lead to greater opportunities and the democratization of the Bar.
      • For example, there was lots of opposition when the jurisdiction of the Tis Hazari Court was divided into different district courts. However, 10-15 years down the line, a vibrant District Bar in Saket, Rohini, and Karkardooma can be seen.
    • Access to Justice for All: People are reluctant to accept arbitrary actions of the state and its agencies and are increasingly approaching courts of law. The outcome of such cases demands further adjudication by the Supreme Court. Also, it becomes difficult for people living in States far away from Delhi to agitate their cause.
    • Importance of Litigant Presence: It is easy to say that the presence of a litigant is not required in appellate forums but the reality is that every litigant wishes to visit his lawyer and witness court proceedings involving his case.
    • Boosting Judicial System with More Judges: The establishment of regional benches will increase the number of judges as well as lawyers resulting in a much-needed boost to our judicial system.

    Challenges associated with regional benches:

    • Status issues:
      • Dilution of sacrosanct nature: Critics argue that the idea of setting up regional benches will lead to Balkanization of the Supreme Court and lessen the binding force of the decisions of the Supreme Court.
      • Territorial Interference: India being diverse country, have emerging diverse views in judiciary too. Hence, the newly formed regional benches can create conflict of interest by interfering in the territorial jurisdiction of the HCs which may adversely affect our justice system.
    • Implementation issues:
      • Rectifying the imbalances: Major of the cases filed in Apex court, arise from nearby High Courts in north India, this imbalance cannot be rectified by using this solution.
      • Frivolous Petitions: If Justice is that easily accessible considering geographical aspect, there is a possibility of numerous frivolous petitions being filed.

    Way Forward:

    • Need for Enhancing Judicial Infrastructure: Some broader judicial reforms are needed to address the systemic issues such as judicial backlog, delay in justice delivery, and judicial vacancies, which are crucial for improving the overall functioning of the legal system.
      • Explore the use of technology, such as video conferencing and virtual courtrooms, to enhance access to justice and facilitate remote adjudication of cases, especially in remote or underserved areas.
    • Need a balanced approach: The debate on regional benches for the Supreme Court involves considerations of accessibility, case management, and judicial efficiency. While proponents see it as vital for access, opponents emphasize potential drawbacks. Striking a balance necessitates thorough evaluation and careful implementation of reforms.