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IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 18th March, 2017

IASbaba’s Daily Current Affairs – 18th March 2017 Archives HEALTH CARE TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders National Health Policy 2017 Introduction Health is one of basic need of any emerging nation. Especially basic and fundamental health care is a determinant in a nation’s growth and progress. It is in this background that a policy document is necessary to guide resource mobilization, allocation and prioritization. Issue: The National Health Policy 2017, which the Centre announced this week after a nudge from the Supreme Court last year, faces the challenging task of ensuring affordable, quality medical care to every citizen. With a fifth of the world’s disease burden, a growing incidence of non-communicable diseases such as diabetes, and poor financial arrangements to pay for care, India brings up the rear among the BRICS countries in health sector performance. Against such a laggardly record, the policy now offers an opportunity to systematically rectify well-known deficiencies through a stronger National Health Mission. Among the most glaring lacunae is the lack of capacity to use higher levels of public funding for health. Rectifying this in partnership with the States is crucial if the Central government is to make the best use of the targeted government spending of 5% of GDP by 2025, up from 1.15% now. Although a major capacity expansion to produce MBBS graduates took place between 2009 and 2015, and more initiatives were announced later, this is unlikely to meet policy goals since only 11.3% of registered allopathic doctors were working in the public sector as of 2014, and even among these, the number in rural areas was abysmally low. More health professionals need to be deployed for primary care in rural areas. Availability of trained doctors and nurses would help meet the new infant mortality and maternal mortality goals, and build on the gains from higher institutional deliveries, which exceeded 80% in recent years. Health care sector specific issues Contracting of health services from the private sector may be inevitable in the short term, given that about 70% of all outpatient care and 60% of inpatient treatments are provided by it. But this requires accountability, both on the quality and cost of care. No more time should be lost in forming regulatory and accreditation agencies for healthcare providers at the national and State levels as suggested by the expert group on universal health coverage of the Planning Commission more than five years ago. Without such oversight, unethical commercial entities would have easy backdoor access to public funds in the form of state-backed insurance. It should also be mandatory for all health institutions to be accredited, and to publish the approved cost of treatments, in order to remove the prevailing asymmetry of information. For the new policy to start on a firm footing, the Centre has to get robust health data. Currently this is fragmented because inputs from multiple sources and sample surveys are not reconciled, and the private sector is often not in the picture. To reduce high out-of-pocket spending, early deadlines should be set for public institutions to offer essential medicines and diagnostic tests free to everyone. This was estimated in 2011 to require a spending increase of only 0.4% of GDP, which is within the 2.5% that the Centre is talking about. Conclusion: A policy document is important for any sector to be effectively handled and planned keeping future priorities in mind. Health care has long desired a holistic policy. Though there are lacunae a start in right direction will help correct necessary problems. Connecting the dots: National Health Policy 2017 is a step in the right direction. Discuss the policy critically in view of the rural health parameters of India and global SDGs.   ENVIRONMENT  TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Conservation, environmental pollution and degradation, environmental impact assessment Saving the waste water too March 22nd is celebrated as World Water Day every year to spread awareness among the general public and focus on its importance in sustainable development. This year, 24th World Water Day is celebrated with the theme ‘Waste Water’ It is easily observed that in any discourse about water, waste water is less talked about as against normal water supply. Though waste water is the one that is generally wasted, it is an important resource too. Waste water as a resources in an economy requires safe management as it is an efficient investment in human health and the ecosystem. Waste water Sources: domestic, industrial, commercial, agricultural, surface run-off or storm water, and sewer inflow. Uses- once treated, it can be recycled and/or reused for drinking purposes, in industry, in the artificial recharge of aquifers, in agriculture, in the rehabilitation of natural ecosystems etc. Threat of Untreated waste water when used for agricultural crops is high as it is often polluted with urban waste containing a mix of chemical and biological pollutants and also high levels of pathogens from excreta. This generally affects human health. Hence, waste water should be treated or WHO guidelines should be followed for restricted use of ‘untreated water’. For example, In WTO guidelines, it is prescribed that irrigation should be discontinued with untreated waste water for a few days before harvesting of crops in order to allow pathogens to die in sunlight. Facts Globally, 10% of waste water is treated. In India, about 69% India’s water is untreated and 39% of actual operating capacity does not meet the regulatory standards (CPCB 2009). Here, waste water is discharged directly into water bodies, overloaded rivers, lakes and the ground with toxic chemicals and wastes. This leads to continuous poison of water resources and supplies. When this toxins find their way to plants and animals, they cause severe ecological toxicity at various levels, including in the human food chain. Strategies for waste water development Ganga receives, in its journey, roughly 500 million litres per day (MLD) of partly treated or untreated industrial effluents from over 700 grossly polluting industries, and about 3,000 MLD waste water from urban bodies. This shows the pressure on the river to survive itself because of such organic load. Thus, unless the waste water is treated and discharged, rivers of India like Ganga, will continue to be conveyors of contaminants as against the popular notions of them of being ‘life giving streams’. Inclusive smart cities India’s strategy for its new path of development focuses sharply on the development of smart cities as drivers of GDP growth. In this, recycling of waste water is crucial to the growth of smart cities. Such recycling is happening in some of proposed smart cities such as Bengaluru, where tertiary treatment of waste water enables the supply of water to airports, parks, industries and construction sites at suitable user fees. The fresh water supply is limited and along with the growing demand and depleting groundwater levels, the recycling and reuse of waste water opens up big business opportunities. One of the best international examples in urban water recycling is Yokohama in Japan where more than 99% of Yokohama’s population is connected to sewers. It considers its waste water precious and is being supplied to various locations of the city. Waste water business opportunities The waste water treatment market is unorganised and a sizeable portion is dominated by small and medium-sized domestic players. This market is mainly dominated by municipal segments. There are varied estimates on the size of business opportunities in India’s water sector. With about 26 billion litres of water going untreated daily, the investment opportunities in this segment are estimated to be in the range of $400 million, assuming a four-year completion cycle of the operating system. The enforcement of regulatory standards for waste water from industries and municipalities is expected to enhance the size of the waste water market as markets for waste water treatment are expected to grow in value and volume. In India, there is policy support for recycling and reuse of waste water. The National Water Policy 2012 recognises that “recycle and reuse of water should be the general norm”. Conclusion India’s demand for water is going to increase in all sectors, given continuing economic growth and improving lifestyles. The available water supply is finite, and its spatial and temporal variations are well known. The recurring drought incidences also demand availability of water during scarcity. By 2050, it is estimated, India will be water-scarce in terms of per capita availability of water per year. Adding to it, climate change will affect the variability of water supply in many countries, including India. The target of National Water Mission of India to improve efficiency by 20% in all sectors is difficult to achieve unless water is conserved, recycled and reused. Water is a state subject according to constitution and the centre comes in picture only when there is regulation of inter-State river waters. Thus, recycling and reuse of water comes into the States’ and local bodies’ domain. The governments, at the Centre as well as in the States, should give incentives to various players in this regard. Also, the regulatory norms for maintenance of waste water standards should be strictly enforced. A combination of these instruments will enhance the progress of recycling and reuse of waste water, which is crucial to India’s development. Connecting the dots: What is waste water? What are different means to recycle it? Critically examine India’s waste water management plans. MUST READ No country for baby girls Hindu   Rivals and partners Indian Express   Who’s afraid of campus politics ? Indian Express   Weak medicine Indian Express   Sustaining exports Business Line   Profits, so that planet and people benefit Business Line  

Motivational Articles

Creative Guidance – Life in the waiting – Inspirational & Educative Articles

Life in the Waiting: We know life as a vibrant and active pursuit of dreams and goals. We know life as a journey and adventure. We know life as happiness and suffering. We know life as easy and difficult. We know life in all its varied forms but we usually forget and ignore one of the most important qualities of life; it is the quality of waiting. Life is as much about action and adventure as it is about patience and waiting. When we ignore that it takes time for things to manifest; when we ignore that it takes time and effort to accomplish something; when we ignore that unless we are willing to wait and accept the silence amidst of two activities, we will forget to appreciate and enjoy life. We are so busy running around all the time that we forget to take a simple and beautiful momentary pause to reflect and enjoy the magnificence of life happening within and all around us. Life is a force greater than any other force; it is best enjoyed when one is still and in waiting. Creativity as an unfolding of inner beauty and wisdom happens only in this waiting. The greatest of artists, musicians, singers, dancers, actors, painters know the beauty of waiting and they know how a single moment of absolute silence and stillness in anticipation can bring out a thought that can revolutionize the whole world. There is something magical in the process of waiting. In waiting, the soul finds its true expression. In waiting, the heart finds its true longing. In waiting, life reveals its mystery. In waiting, you attain to your completeness. The more one is willing to wait and experience the joy of waiting, life itself will become the greatest source of entertainment and inspiration. You till the soul, sow a seed of desire, water it with imagination and wait. Wait to see the seed germinate. Wait to see the seed become a plant, and to see the plant become a tree. To see your vision unfold in quite anticipation; to wait for all this to happen is life. Waiting for an inspiration; waiting for a desire to capture your imagination; waiting for something exciting to happen; waiting for love and friendship. Waiting is where life is. Waiting is the whole purpose of life. Take away waiting and life loses all its meaning. What is the purpose of all this running around, if life doesn't allow for a moment of silence to quietly observe what is happening? The most wonderful quality of life is a pause. In this pause, in this waiting is hidden the mystery of life. In this waiting is hidden the mystery of everything. “The articles are a copyright of The Ahamo Movement and IASBABA.”  

RSTV Video

The Big Picture - Supreme Court Order on National Anthem

Supreme Court Order on National Anthem Archives TOPIC: General Studies 2 Structure, organization and functioning of the Executive and the Judiciary In a new clarification by the SC on its national anthem order, it has said that the audience need not stand up when the national anthem is played as a part of the movie. It has also clarified that it is not compulsory to sing the national anthem while it is being played. Arguments for the order Respect for national identities is an obligation upon people. People should commit themselves to national interest, unity, integrity and security. Thus, it is responsibility of judiciary to defend and protect constitution if it is needed in its opinion. It has been frequently said that DPSPs and FDs are not binding on government and people as well as are non-justiciable. Yet, many of their provisions today are a part of law or a separate law and are implemented. Even here, judiciary had an important role to play. For example, there is no need of any external state intervention in routine but when people are not performing duties they are expected to, state can intervene. When it became a known fact that more and more senior citizens were being neglected, ill treated and thrown out of houses, a legislation (Maintenance and Welfare of Parents and Senior Citizens Act, 2007) was passed which mandated taking care of senior citizens. Hence, this was not state’s rigidity to intervene but a part of moral and cultural values. Arguments against the order It is not in judiciary’s sphere to pass orders on issues such as playing of national anthem and rules related to it. Singing National anthem is a personal feeling and should not be dictated as part of judicial order. Patriotism comes from within and cannot be forced. One has to respect symbols of own’s country and its institutions such as emblem, anthem etc. by themselves and not be forced upon. Such orders give rise to vigilantes who are looking for issues to create nuisance in name of culture and nationalism. There may be people who may not be able to stand up. Instead of asking them reason or allowing them to behave as per their will, they are taken to task. Many instances of such kind have been reported. Cinema is for entertainment and not to learn lessons. Had such an order passed for schools, it would have been acceptable as well as commendable as students are being imbibed with national spirit. Some other dimensions The issue of singing national anthem and showing patriotism should not go to court as how does one show love towards the country? People can bring glory to the nation by working for its development, excelling in their field be it science, arts, music etc. It cannot be expressed by state dictating when to do what. That kind of patriotism is fascism, aggressive nationalism. India’s nationalism is inclusive which has brought people together naturally and not through orders. Thus, nobody has the right to decide what is in national interest unless it is explicitly harming integrity, unity and security of nation. Another issue is national anthem remains national anthem, wherever played. Hence, it has to be respected. There cannot be two sets of rules when national anthem is played at two different times. The basic issues is, judiciary cannot say when nationalism has to be shown. FDs are to be enforced by the citizens of India. If the audience has non-citizens, will they be forced to stand up? These things bring unnecessary complications. Conclusion In every society, there are some non-negotiable which includes patriotism including respect for national anthem. But way to express are different. Playing national anthem at special occasions generate a feeling which is inexpressible but playing it at court’s order does no good. Freedom of speech also includes freedom of not to speak and no one can be compelled to speak. As a nation, India has progressed a lot. The constitution is still growing and emerging as a tool for resolution of disputes and is working well. Hence, the elements which aim to destroy the nation through petty issues and petty aims should be dealt with firmly. If nationalism is needed to be imbibed in the hearts of citizens of India, more focus should be given to spreading the nationalism visible during national mass movement for independence. Here, nationalism was even then when people with completely different point of view came and worked together for India’s independence. That is how nationalism is preached. In the best interest of freedom of speech and expression, the order needs to be reviewed. This is an interim order. Final decision will be taken after taking into considerations and discussions in media and intelligentsia and opinion of common man. Connecting the dots: Critically analyse SC’s order on national anthem. In your opinion, is this a case of judicial interference or judicial overreach? Give reasons. Related article: A case of forced patriotism and judicial over-reach

IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 17th March, 2017

IASbaba’s Daily Current Affairs – 17th March 2017 Archives NATIONAL TOPIC: General Studies 2 Indian Constitution‐ historical underpinnings, evolution, features, amendments, significant provisions and basic structure. Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Separation of powers between various organs dispute redressal mechanisms and institutions. Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies. Goa’s conundrum and options Introduction Indian constitution is an ideal document. It doesn’t specify many clear provisions but leaves it to healthy precedents that can develop over time. Governor’s office being an important constitutional office has much discretion. It has been a matter of debate since long time. Issue: The legal challenge of the Congress in the Supreme Court against the BJP’s claim to form the government in Goa brings to fore a vacuum in the Constitution. In the case of a hung legislature, is the Governor bound to follow the constitutional convention to call upon the single largest party to form the government and prove its majority in the House? Or, as the court endorsed on Wednesday, can a political rival cobble together a post-poll alliance to form a majority that overcomes the single largest party and form the government? The Manohar Parrikar government came to power on a first-come-first-appointed basis despite the fact that the BJP came second in the Assembly elections. The Governor did not consult the single largest party, the Congress, before giving Mr. Parrikar the green signal. The SC, in turn, said the Congress did wrong by not staking its claim to form the government. It had shown no proof to the Governor that it had the requisite numbers to prove a majority in the House. The debacle exposes the fact that there are no specific guidelines in the Constitution on who the Governor should invite to form a government in a State where rival parties with narrow majorities engage in a face-off. Constitutional Conventions and Precedents: The constitutional convention of inviting the single largest party in the case of a fractured mandate has been outlined by the Sarkaria Commission recommendations, which were affirmed by a Constitution Bench of the SC in Rameshwar Prasad v Union of India in 2005. The Commission report specifically dealt with the situation where no single party obtained absolute majority. It provided the order of preference the Governor should follow in selecting a Chief Minister in such a fluid situation: An alliance of parties that was formed prior to the elections. The single largest party staking a claim to form the government with the support of others, including independents. A post-electoral coalition of parties, with all the partners in the coalition joining the government. A post-electoral alliance of parties, with some of the parties in the alliance forming a government and the remaining parties, including independents, supporting the government from outside. It is clear that the leader of the party which has an absolute majority in the Assembly should be called upon by the Governor to form a government. However, if there is a fractured mandate, then the Commission recommends an elaborate step-by-step approach and has further emphasised that the Governor should select a leader who, in his/her judgement, is most likely to command a majority in the Assembly. Conclusion: Sarkaria Commission and the following verdicts of Supreme Court had ample directions to handle cases with special circumstances as such. However each time political play and circumstances give differing orientations. The idea should be to establish a stable and formidable government. Connecting the dots: Critically analyse the misuse of governor’s discretionary powers even though Sarkaria Commission’s recommendations have clear guidelines.   NATIONAL TOPIC: General Studies 2 Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies. Credibility of EVMs- intact or tampered with? Background In 1977, the Election Commission of India first mooted the idea of introduction of EVMs. The reason was to overcome certain problems associated with use of ballot papers and taking advantage of development of technology so that voters cast their votes correctly and removing the possibilities of invalid votes totally. In 1988, Representation of the People Act, 1951 was amended and a new section 61A was inserted empowering the Commission to use voting machines. It came into effect in 1989. Central Government appointed the Electoral Reforms Committee in January, 1990 consisting of representative of several recognized National and State Parties. A further technical committee was formed to evaluate EVMs. The expert committee concluded that EVMs were a secure system and should be brought into use from 1990 itself. Since 2000, EVMs have been used in 107 General Elections to State Legislative Assemblies and 3 General Elections to Lok Sabha held in 2004, 2009 & 2014. EVMs are tamper proof A combination of safeguards- Software and technical, administrative, independent technical watchdog oversight, and judicial scrutiny- ensures machines are safe. Technical strength The task of making the machines has been given exclusively to two central public sector undertakings, BEL (Defence PSU) and ECIL (Atomic energy PSUs), which are entrusted with developing high security defence equipment. The software used is burnt into a one-time programmable/masked chip, so that it cannot be altered or tampered with. The machines are not networked either by wire or by wireless with any other machine or system, thus removing possibility of data corruption by hacking. The software development team is separate from the production team. Samples of EVMs from production batches are regularly checked by the quality assurance group which is an independent group within BEL and ECIL. Administrative alertness fool-proof protective custody at all stages — from storing the machines in the strong room (the warehouse) to moving them to the polling stations, through three levels of checks and three mock polls. Political party representatives are always present to witness and certify the entire process. Videography of entire process is done to make it proof-worthy. A mock poll is also conducted on day of poll in presence of candidates or their authorised agents to demonstrate that the EVM is working properly. Any defective machine is immediately replaced and the poll begins. After poll, EVMs are taken under heavy armed escort to the strong room and party agents are encouraged to follow the movement and put their seals on the locks of the strong room and keep 24×7 vigil. Technical watchdog An independent Technical Advisory Committee of five professors of top IITs is present. ECI does not take a single technology decision without their scrutiny and approval. Judicial scrutiny The issue of possible tampering of EVM has been raised before various High Courts since 2001. It includes- Madras High Court-2001, Delhi High Court-2004, Karnataka High Court- 2004, Kerala High Court-2002 and Bombay High Court (Nagpur Bench)-2004 All the above High Courts have gone into all aspects of the technological soundness and the administrative measures involved in the use of EVMs at elections in India and held that the EVMs in India are credible, reliable and totally tamperproof. The Karnataka High Court went to the extent of commenting that “this (ECI-EVM) invention is undoubtedly a great achievement in the electronic and computer technology and a national pride”. Even the SC appreciated the tamper-roof EVMs and pressed on introducing VVPAT. Comparison with EVMs of other countries ECI-EVM and EVMs used by foreign countries said to be misplaced and ‘misguided’ by ECI Most of the systems used in other countries are Computer based with internet connectivity. Hence, these could be vulnerable to hacking. Whereas ECI-EVM is a fully standalone machine without being part of any network and with no provision for any input. The software in the ECI-EVM chip is one time programmable (OTP) and burnt into the chip at the time of manufacture. Nothing can be written on the chip after manufacture. Thus the ECI-EVMs are fundamentally different from the voting machines. Comparing with countries discarding EVMs Germany and the Netherlands banned EVMs for lack of transparency. Italy felt e-voting results could be fudged. In the US, California and many other states have banned EVMs without a paper trail. However, the size of the electorate at all these places is a fraction of the size in India — and the time, energy and expenses of going the same way here are not comparable. To make it more fool-proof: The allegations on ECI-EVMs have time and again been initiated and debated. Every political party has questioned the EVMs at one point or another. When they win, all is well and if not, criticising EVMs is the easiest way out. In 2009, ECI in an extraordinary step, invited the sceptics to demonstrate the alleged fallibility of EVMs. The outcome was that none of the persons could demonstrate any tamperability of the ECI-EVM. This time the stake holders involved should instead ask the court to seal the machines about which suspicions were raised. These EVMs can be checked in the presence of the political parties and issue can be sorted. Increase use of VVPAT which cross checks election results with vote slips. Voter Verifiable Paper Audit Trail (VVPAT) In 2010, ECI in consultation with political parties, considered to explore use of Voter Verifiable Paper Audit Trail (VVPAT) with a view to enhance transparency. In VVPAT, a paper slip is generated bearing name and symbol of the candidate along with recording of vote in Control Unit. This paper is then deposited in the ballot box. So, every voter can see whether her vote has been registered correctly. In case of any dispute, paper slip could be counted to verify the result being shown on the EVM. It was approved by ECI in 2013. In June 2014, ECI proposed to implement VVPAT at every polling station in the next General Election to Lok Sabha due in 2019. Even SC has permitted the ECI to implement VVPATs in phase manner with funds sanction from government. In Goa elections in 2017, VVPAT was employed in all 40 LACs. Conclusion The EVM tampering news is spreading like a wildfire as media is continuously highlighting it and not ECI’s views. The parties who have lost elections are demanding ballot vote which is a regressive move as well as degradation of ECI as an independent institution. Public faith and trust in the electoral system is of paramount importance and must not be allowed to be shaken. If there are allegations, ECI should be more loud to deny that and let people trust its ability to conduct free and fair election. No doubt, the EVM tampering allegations and suspicions have been raised before. ECI should now focus on conducting 2019 general elections with VVPAT. It must speed up the production of the requisite number of machines and demand required funds from government. Connecting the dots: Examine the role of ECI in conducting free and fair elections in the nation. MUST READ Leaving no one behind Hindu   Are injectable contraceptives advisable? Hindu   Roads To Nowhere Indian Express   By way of preface Indian Express   Job creation is vital for a new India Livemint   Protecting India’s environment Livemint   Preparing for drought Business Line   The note ban: Who won, who lost Business Line  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 139]

IASbaba Daily Current Affairs Quiz [Day 139] Click here to get all the Tests– Archives Q.1) Madhur Gupta Committee is concerned with Education Policy Women Policy Child Policy None of the above Q.2) Consider the following statements about Trade Infrastructure for Export Scheme (TIES) The scheme replaces a centrally sponsored scheme – Assistance to States for creating Infrastructure for the Development and growth of Exports (ASIDE) The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ Authorities and Apex Trade Bodies recognised under the EXIM policy of Government of India; are eligible for financial support under this scheme. The Central Government funding will be in the form of grant-in-aid, normally not more than the equity being put in by the implementing agency or 50% of the total equity in the project. Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.3) Consider the following statements about United Nations Economic and Social Commission for West Asia (ESCWA) It is one of the five regional commissions created by the United Nations in order to fulfil the economic and social goals set out in the Charter by promoting cooperation and integration between countries in each region of the world The report titled 'Israeli Practices Toward the Palestinian People and the Question of Apartheid' was released by ESCWA ESCWA report concludes that Israel has established an apartheid regime that systematically institutionalizes racial oppression and domination of the Palestinian people as a whole Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) The Genetic Engineering Appraisal Committee is constituted under the Food Safety and Standards Act, 2006 Geographical Indications of Goods (Registration and Protection) Act, 1999 Environment (Protection) Act, 1986 Wildlife (Protection) Act, 1972 Q.5) Consider the following statements about Kyrgyzstan It is a land locked country in Central Asia It is bordered by Kazakhstan, Uzbekistan and Tajikistan only Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Download the Solution- Click here All the best IASbaba

RSTV Video

The Big Picture - Will Budget 2017 Boost Indian Economy?

Will Budget 2017 boost Indian Economy? Archives TOPIC: General Studies 3 Government Budgeting. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Union Budget 2017-18 is considered one of the toughest budget in recent years with demonetisation in background, pain of common man and economy in general. The expectation of windfall gains from budget underlined high hopes from union finance minister. But the government was required to balance between fiscal prudence and need to give push to growth. The FM did not have much elbow room to make unrealistic targets due to limited fiscal space. On revenue side, the GST had been announced and so there was no point in increasing indirect taxes. Hence the status quo was maintained. Post demonetisation, there was no chance of being adventurous on direct taxes either. On expenditure side, share of government money going in salaries, pensions, interest on debts rose to 80% from 72% due to addition of railways in union budget. Thus, introducing new schemes had very little space. Under these circumstances, the government played a balancing act. It has increased allocation where effect would be the maximum — impacted sectors due to demonetisation and dealing with increase in aggregate growth which is hurting economy. The economic survey talked about growth between 6.75-7.5%. This range shows the flexibility in economic environment. It should be noted that the economic growth was not encouraging even before demonetisation. The fixed capital formation to GDP ratio was 26.5%. It is the lowest level of investment rate since 2004-05 where it touched the peak of 38%. With this investment rate, fast growth is not possible. Increasing the investment The economy is facing Twin Balance Sheet problem: Banks have huge bad loans Companies have huge debts Unless this is solved, more investment is not possible. This year’s budget as a proportion to GDP shrank, which is currently 12.6% whereas last year it was 13.4%. Out of government expenditure, 14% is capital expenditure which is higher compared to last two years. But capital expenditure as a proportion to GDP has come down to 1.81% from 1.86% earlier. The routes for private sector investment have to be opened. It can’t happen if banks don’t lend. The budget has not done much to solve the twin balance sheet problem. It has just given Rs. 10000 crore to banks to recapitalise. However, the caveat in the speech is that if need is there, government will fund more. World has huge savings which is now looking for profitable deployments. The question is if India can generate confidence that if money is invested in India, high returns will be provided. This calls for standard governance reporting norms etc. and not big bang budget announcements. This will give confidence to people that the project they will invest will give stable returns. Enhancing capacity development Also, Higher allocation to infrastructure investment is needed. Transport infrastructure needs more investment. Concern is that budget has followed route which depends on government execution abilities. If government fails to perform, the investments will be affected. For example, last year, national highways allocation had revised estimate 10,000 crore less than the budget estimate because NHAI did not have the capacity to spend that money. This year the allocation increased to Rs. 64000 crore but EPC model and not PPP model has been adopted. PPP model failed because the growth in the economy was slowed down, the traffic on highway was not as expected and hence the collection was not as expected. Government needs to revive those to augment the inability to spend the money. In railways, the operating ratio is 94.9%. This leaves only 5% for capital investments. Even this year, government gave them Rs. 55000 crore. But it is not able to reap the benefits of higher allocation which is visible from the fact that railways were also enabled to borrow from LIC fund apart from budget. But it didn’t draw a single penny due to its inability to spend capital amount efficiently and without fear of 5Cs- Court, CIC, CVC, CBI and CAG. The difficult implementation Allocating resources is fine, but ministries and departments need to spend them wisely. Thus, real issue is implementation. For instance, DMIC is talked about since last 10 years, yet it is nowhere near complete. There are other big infrastructural projects which haven’t seen light of the day because of environmental clearances, corruption, land acquisition issues, community opposition etc. Earlier, government decided to do these projects through PPP model but PPP was going sick and there were rise in NPAs due to various reasons. Thus government shifted to EPC model. For this also, large number of private contracting companies available need to go to bank and take up the projects. But if they have NPAs, banks will not lend them. This cycle needs to be broken somewhere which has become a big headache. Revive investments In this budget, private sector won’t do much as capacity utilisation is low (70%) and falling further due to demand contraction. The private sector investments will not suddenly take off. This arises the need of public investment but budget doesn’t allocate much here either. Budget gives incentives to promote investment consumption with Tax concession to SMEs having revenues less than Rs 50 crore been given a cut in corporate tax rate to 25%, from 30% earlier. However, if demand is not there, the industry will not be able to survive. So market to generate demand has to be created. The fiscal space was not much there to make drastic changes. Because of fragile environment, indian economy cant afford to have a high fiscal deficit as it might trigger outflow of funds and depreciate economy. Thus, there is a need of something like bad banks to boost private investments. Land availability is a major constraint on developing infrastructure- PPP model or government projects, it needs to address the ever growing need of infrastructure. Agricultural development not attracting private funding in large way. If there is lack of demand, it will be difficult to sustain or increase growth and employment. Most of the employment is in unorganised sector and thus any changes there will affect other extents of economic growth. With regards to black money, not much hope should be hinged on the increase in tax collection in year 2017-18. The tax collection incentives, IDS etc. will show its effect only in 2018-19. Hence, no drastic increase in tax collection is bound to occur. Black money is widely used in election and thus focus should be to eliminate it from such sphere. For this, there has been proposed introduction of electoral bonds which may serve to put a break on black money. Conclusion When one looks at an economy, budget shouldn’t be looked at in silos. Its entire ecosystem has to be looked at. There is a need of conducive environment where investment is convenient, people feel stable and secure. Many parts of budget attempt to be reform oriented- agriculture, education, wealth, hence it is going to take time. The mature economy is the one where the budget announcement doesn’t impact much to the nature of economy. Demonetisation and GST have been big policy decisions that have taken place to impact the economy outside budget decisions. Such approach can be continued for broader change possibilities. The budget is expected to make the economy tread a new as well as cautious path for the year post demonetisation. Key words: EPC model:  EPC is a model of contract between the government and private sector players for public infrastructure building .Under this system the entire project is funded by the government. Under EPC model the contractor is legally responsible to complete the project under some fixed predetermined timeline and may also involve scope for penalty in case of time overrun. In EPC as all the clearances, land acquisition and regulatory norms have to be completed by the government itself and the private players do not have to get itself involved in these time taking procedures. PPP model: In PPP funding and all other necessary clearances were responsibility of private players. With low financial availability, delay in project clearance and slow global economy private players were showing little interest in investment in PPP projects. In PPP delays have caused huge number of stuck projects. The private contractors now want to exit these projects as there has been no progress for a long time this has caused the build up of non-performing assets (NPAs) of banks which are now under stress. In EPC as government is funding, no such issues arises there. The shift to EPC model is definitely a better option since the risk will not be borne by the private player. The risk will be borne by the government, which is better at handling it. Fixed capital formation to GDP ratio: Gross fixed capital formation includes spending on land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; the construction of roads, railways, private residential dwellings, and commercial and industrial buildings.

IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 16th March, 2017

IASbaba’s Daily Current Affairs – 16th March 2017 Archives ENVIRONMENT TOPIC: General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment The inter-related security Water, energy and food are essential for human well-being, poverty reduction and sustainable development. Global projections indicate that demand for freshwater, energy and food will increase significantly over the next decades under the pressure of population growth and mobility, economic development, international trade, urbanisation, diversifying diets, cultural and technological changes, and climate change. The prime concern currently has been- achieving food, water and energy security. By 2050, India is expected to be the world’s most populous country with 1.7 billion people. Also it shall be world’s second largest economy with a GDP of $42 trillion (in PPP terms). This puts the food estimate in 2050 at 333 million tonnes, which can be achieved by increasing annual food production by 30%. In addition to it, more than 880 GW of new power generation capacity would be required by 2040. These gigantic statistics determine the need of a paradigm shift in managing the resources better. The interlinked FEW In many ways, food, energy and water (FEW) are interlinked with complex and dynamic interactions. Any vulnerability in one of these directly translates into vulnerabilities of the others. For instance, agriculture and food production is the largest consumer (about 80%) of freshwater resources in India. Irrigation is primarily dependent on groundwater extraction, which requires electricity. Simultaneously, poor agricultural practices have lead to inefficient use of energy and water. Given that 60% of India’s total power production capacity is thermal power, energy production is water-intensive. In fact, 50% of industrial water used in India is for energy production. There are other major issues as well, such as the increasing water pollution due to industrial effluents or fertiliser run-offs and erratic weather patterns. The problems faced here are carry forward in the food crops being produced which has presence of unhygienic components due to bad water and excess fertilisers. Thus, making decisions without considering the impact of one on the other has limited positive impact. This can be seen in power subsidies in agriculture with overuse of ground water. Now rising water stress has raised doubts over sustenance of agriculture. Thus, managing FEW independently is no longer a wise option and they should be seen collectively in an environment. Holistic approach A holistic approach would reduce negative externalities and trade-offs, build synergies and increase overall resource-use efficiency and improve productivity. ‘Climate smart agriculture’ in several States has demonstrated the possibility of saving water and energy while raising yields in a cost-effective manner. For example, a technique of rice cultivation without flooding the fields, has benefited farmers in Andhra Pradesh, Tripura, West Bengal, among several others, with a higher yield while requiring 30 to 50% less water. The Integrated Watershed Development Programme launched by the Government in 2008 and led by NABARD, played an important role in recharging groundwater as well as achieving crop yield improvement in several States. Revised tariff, metering systems and improving technical efficiency of pumps is the best solution to use them for groundwater pumping. This will result in less dependency of farmers on energy subsidies and sustainable groundwater level. Such examples can boost the cases for integrated approach of having food-water-energy security. Adopting energy and resource-efficient technologies and processes in manufacturing and agriculture could be the best possible areas to begin with. Here, the role of industrial and financial sectors towards such integrated approach is vital in the face of growing competition to access limited resources. Sector-wide adoption of risk assessment tools and reporting structures linked to resource use, such as natural capital accounting, would be essential. Also, there is need for enterprises, investors and lenders to push for greater adoption of such frameworks. Investors and financial institutions can play a catalytic role in promoting the FEW nexus approach for project design and development, and mainstreaming it across the economy. IASbaba’s views The effective management of food, energy and water, three crucial elements in the economy, is necessary for India to achieve its developmental objectives. The Water-Energy-Food Nexus describes the complex and inter-related nature of global resources systems It is about balancing different resource user goals and interests – while maintaining the integrity of ecosystems. Often decisions on how to intervene are made without cross-sectoral coordination, targeting sector-specific optima and, thereby, resulting in risks and uncertainties across sectors and scales. The synergistic approach towards managing FEW as an inter-dependent ecosystem provides this opportunity and would support India’s shift towards a low-carbon economic growth trajectory. Connecting the dots: What do you understand by food-water-energy nexus? Do they provide for new solutions to growing demand for security in each sector? Analyse.   NAXALISM AND INTERNAL SECURITY  TOPIC: General Studies 3 Linkages between development and spread of extremism. Role of external state and non‐state actors in creating challenges to internal security Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, [NP]; basics of cyber security; money laundering and its prevention. Security challenges and their management in border areas; linkages of organized crime with terrorism. Various Security forces and agencies and their mandate Sukma Killings Introduction Internal security is a grave threat for a country like India. Especially with diverse society and regional imbalances along with divisions based on ideologies it is important that India counters the threat effectively. Recent killings of security forces have been disturbing and a part of long running history. Issue: It would be tempting, but dangerous, to see the deadly ambush by Maoists in Chhattisgarh’s Sukma district on Saturday as just a desperate act of a fading insurgent group. It must, instead, serve as a wake-up call for the security forces to beef up their standard operating procedures, especially intelligence-gathering capabilities, in the Maoist heartland in central India. Twelve personnel of the Central Reserve Police Force were killed in Sunday’s attack, and four others sustained injuries. A road-opening party of the CRPF’s 219 battalion was ambushed about 450 km from the State capital Raipur. The insurgents used improvised explosive devices, country-made mortars and arrows mounted with explosive heads, and made off with some weapons and radio sets of the force. Home Minister Rajnath Singh told the Lok Sabha that extremist groups were restless because of the “unprecedented success of the forces against them” in 2016, especially in Chhattisgarh where there was a 15% drop in left-wing extremist incidents. However, the precision and scale of the attack are an indication that the Maoists continue to hold formidable sway in Sukma, their long-time stronghold. In 2013 they ambushed a convoy of Congress leaders in Sukma district, killing more than 25 persons, including former Union Minister V.C. Shukla. Long history of ambushes: There have been periodic Maoist attacks in the region. It is estimated that over the last two decades at least 15,000 people have been killed in Maoist-related violence. More than 3,000 of them were security personnel. And while violence is down from its peak in 2009-10, in 2016 official estimates put the toll at 213 civilians, 65 security force personnel and 89 Maoists. The government has over the past decade taken a patchy approach to bringing the so-called “red corridor” under its writ. The only presence of the state consistently visible across the region has been of the security forces, not of the civil administration. Counter-insurgency operations by the security forces have often been undermined by poor intelligence, flagging alertness of the security forces and the absence of a multi-layered political strategy. The Maoists do not survive merely on ideology; They have a well-oiled machinery providing protection to various interest groups in the absence of a robust state responsive to the security and welfare needs of the civilian population. Conclusion: Ultimately, any fight against non-state actors will be effective only when the state puts forward its combined might to exhibit what it can and indeed what it must provide to the people. The solution should be holistic and long term oriented. Connecting the dots: Internal security is a grave threat to the nation as said by a former prime minister. Critical discuss a rational and holistic solution to the issue of maoist and naxal violence in India. MUST READ Crimes of apartheid Hindu   How EVMs work, why many parties have suspected they can be rigged Indian Express   Not Just By Jobs And Mobiles Indian Express   Human Rights rankings: no perfect company Livemint   The road to digital India Livemint   Jallikattu, Neduvasal and fizzy cola Business Line   How to decarbonise our energy systems Business Line  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 138]

IASbaba Daily Current Affairs Quiz [Day 138] Click here to get all the Tests– Archives Q.1) Consider the following statements Central Institute for Cotton Research (CICR) has developed what is reported to be the shortest-duration cotton variety in the world, named ‘Yugank’ One of the main reasons for repeated failure of dryland cotton crop is its long duration The fibre quality will be better for shorter-duration cotton It will be available in both Bt and non-Bt forms Select the correct statements 1, 2 and 3 1, 3 and 4 2, 3 and 4 All of the above Q.2) Trans-Asia Connectivity Conference is organised by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) United Nations Development Programme Shanghai Cooperation Organization (SCO) Russian Railways and Turkish State Railways Q.3) Consider the following statements about The Enemy Property (Amendment and Validation) Bill, 2016 The bill amends the Enemy Property Act, 1968 Inheritance law will not be applicable on Enemy Property. The law only applies on heirs of enemy property and the tenants of that property will be governed by the Tenancy Act Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) Union Of India & Another vs Raja Mohammed Amir Mohammad Khan is concerned with Muslim petition law Passive euthanasia 9th schedule of the Indian constitution None of the above Q.5) The world’s first fluorescent frog has been discovered in Guatemala Argentina Chile Ecuador Download the Solution- Click here All the best IASbaba

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