Professional Documents
Culture Documents
PINNACLE
By Law Chronicles
February Edition
2021
A report by the Satark Nagrik Sangathan and the Centre for Equity Studies has pointed out
that more than 2.2 lakh Right to information cases are pending at the Central and State
Information Commissions (ICs), which are the final courts of appeal under the RTI Act, 2005.
▪ The report was released on the occasion of completion of the 15 years of Right to
Information (RTI) Act.
Key Points
Unavailability during Covid-19 lockdown: Out of the total 29 ICs that were studied, 21
were not holding any hearings.
o Even the websites of 3 ICs -Bihar, Madhya Pradesh and Nagaland -were not accessible
during the lockdown.
o Websites of 11 commissions out of 29, had no information/notification about the
functioning of the IC during the lockdown.
Reduced Capacity: Of the 29 ICs, two ICs -Jharkhand and Tripura -were found to have no
commissioners for varying lengths of time. They were completely defunct.
o 4 were functioning without a Chief Information Commissioner -Bihar, Goa, Rajasthan
and Uttar Pradesh.
o Under the RTI 2005 act, every commission should have a chief and up to 10
commissioners.
Delays and Backlogs: The assessment found that on average, the CIC takes 388 days
(more than one year) to dispose of an appeal/complaint from the date that it was filed
before the commission.
o The highest number of pending appeals, with over 59,000 cases were in Maharashtra,
followed by Uttar Pradesh and the Central Information Commissions (CIC).
No Penalties: The report found that the Government officials face hardly any
punishment for violating the law.
o Penalties were imposed in only 2.2% of cases that were disposed of, despite previous
analysis showing a rate of about 59% violations which should have triggered the
process of penalty imposition.
3|Page To Join Law Chronicles CLICK HERE!
ECONOMIC SURVEY 2021
Why in News
Recently, the Union Minister of Finance presented the Economic Survey that details the state
of the economy ahead of the government's budget for the fiscal year beginning 1st April, 2021.
Key Points
Recently, the Centre has extended the tenure of the Rohini Commission until 31st July, 2021 to
submit its report on Sub-categorisation of Other Backward Classes (OBCs).
▪ The Rohini Commission was constituted in October 2017 under Article 340 of the
Constitution. At that time, it was given 12 weeks to submit its report, but has been
given several extensions since, the latest one being the 10th.
▪ Article 340 deals with the appointment of a commission to investigate the
conditions of backward classes.
Key Points
The scheme was started with a view to augment the income of the farmers by
providing income support to all landholding farmers’ families across the country, to
enable them to take care of expenses related to agriculture and allied activities as well
as domestic needs. Under the Scheme an amount of Rs.6000/- per year is transferred in
three 4-monthly installments of Rs.2000/- directly into the bank accounts of the
farmers, subject to certain exclusion criteria relating to higher income status.
The entire responsibility of identification of beneficiaries rests with the State / UT
Governments.
Ambit:
The Scheme initially provided income support to all Small and Marginal Farmers’ fami lies
across the country, holding cultivable land upto 2 hectares. Its ambit was later expanded
w.e.f. 01.06.2019 to cover all farmer families in the country irrespective of the size of
their land holdings.
Exceptions:
Affluent farmers have been excluded from the scheme such as Income Tax payers in last
assessment year, professionals like Doctors, Engineers, Lawyers, Chartered Accountants
etc and pensioners pensioners drawing at least Rs.10,000/- per month (excluding
MTS/Class IV/Group D employees).
1. The focus of IMI 3.0 will be on children and pregnant women who missed their
vaccine doses during the COVID-19 pandemic.
Indian Naval Ship (INS) Pralaya arrived at Abu Dhabi, UAE to participate in the NAVDEX 21
(Naval Defence Exhibition) and IDEX 21 (International Defence Exhibition), scheduled from 20
to 25 February 2021.
▪ INS Mysore (an indigenously built guided missile destroyer deployed in the Persian
Gulf) is also participating in the exhibition.
Key Points
• The India-Mauritius CECPA is the first trade agreement signed by India with a country in
Africa.
Key Points
About CECPA :
o It is a kind of free trade pact that aims to provide an institutional mechanism to
encourage and improve trade between the two countries.
o Under this agreement, countries reduce or eliminate the duties on the products. The
countries also give relaxation in the norms to promote the services trade.
Types of Trade Agreements
Free Trade Agreement (FTA):
o A free trade agreement is an agreement in which two or more countries agree to
provide preferential trade terms, tariff concession etc. to the partner country.
o India has negotiated FTA with many countries e.g. Sri Lanka and various trading blocs
as well e.g. ASEAN.
Preferential Trade Agreement (PTA):
o In this type of agreement, two or more partners give preferential right of entry to
certain products. This is done by reducing duties on an agreed number of tariff lines.
o Tariffs may even be reduced to zero for some products even in a PTA. India signed a
PTA with Afghanistan.
Comprehensive Economic Partnership Agreement (CEPA):
o Partnership agreement or cooperation agreement are more comprehensive than an
FTA.
o CEPA covers negotiation on the trade in services and investment, and other areas of
economic partnership.
o India has signed CEPAs with South Korea and Japan.
Comprehensive Economic Cooperation Agreement (CECA):
India-Mauritius CECPA
About:
▪ It is a limited agreement that will cover only select sectors. It will cover Trade
in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT),
Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, etc.
▪ Benefit to India:
▪ More than 300 domestic goods from agriculture, textiles, electronics and other
sectors will get market access at concessional customs duties in Mauritius.
▪ Indian service providers will have access to around 115 sub-sectors from the 11
broad service sectors, such as professional services, computer related services,
research & development, other business services, etc.
Benefit to Mauritius:
▪ It will benefit from preferential market access into India for its 615
products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral
water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and
apparel.
▪ India has offered around 95 sub-sectors from the 11 broad services
sectors, including professional services, R&D, other business services,
telecommunication, environmental, health, etc.
▪ Negotiation on Automatic Trigger Safeguard Mechanism (ATSM):
▪ India and Mauritius have also agreed to negotiate an Automatic Trigger Safeguard
Mechanism (ATSM) for some highly sensitive products within two years of the
signing of the agreement.
▪ ATSM protects the country from any sudden or dramatic increase in imports.
▪ Under this mechanism, if the imports of a product are rising alarmingly, then after
reaching a certain threshold, India can impose safeguard duties on imports from
Mauritius automatically. The same provision applies to Mauritius as well against
Indian imports.
India had extended a ‘Special Economic Package’ of USD 353 million to Mauritius in
2016. The New Mauritius Supreme Court building project is one of the projects
implemented under this package. This was jointly inaugurated by both the countries in
2020.
India and Mauritius have jointly inaugurated the Phase-I of the Metro Express
Project and the 100-bed state of the art ENT hospital project in Mauritius, also built
under the special economic package.
According to the International Trade Centre (ITC), in 2019, the main import partners of
Mauritius were India (13.85%), China (16.69%), South Africa (8.07%), and UAE (7.28%).
The bilateral trade between India and Mauritius has registered a growth of
233% from USD 206.76 million in the Financial Year (FY) 2005-06 to USD 690.02 million
in FY 2019-20.
Mauritius was the second top source of Foreign Direct Investment (FDI) into India
in 2019-20.
India and Mauritius signed a USD 100 million Defence Line of Credit agreement
Mauritius would get a Dornier aircraft and an Advanced Light Helicopter Dhruv on
lease which would build its maritime security capabilities.
The two sides also discussed the Chagos Archipelago dispute, which was an issue of
sovereignty and sustainable development before the United Nations (UN).
o In 2019, India voted at the UN General Assembly in support of the Mauritian
position on the issue. India was one of the 116 countries that voted demanding that
the UK end its “colonial administration” from the group of islands.
India delivered 1,00,000 Covishield vaccines to Mauritius.
Recently, in a bid to fuel broadband internet proliferation across the country, the Government
of India launched PM WANI (Prime Minister Wi-Fi Access Network Interface) Scheme. The
scheme aims to bring large scale deployment of Wi-Fi hotspots through the country to drive up
connectivity options and improve digital access.
The scheme envisages setting up of public Wi-Fi networks and access points by local Kirana and
neighbourhood shops through public data offices (PDO will be set up on the lines of Public Call
Offices (PCOs)) that will not involve any licence, fee or registration.
Apart from, Public Wi-Fi being a low-cost option to reach unserved citizens and grow the
economy, it can revolutionise the tech world and significantly improve Wi-Fi availability across
the length and breadth of India.
New Wave of Internet Users: PM WANI will be able to connect a new wave of users not
just to commercial and entertainment options, but also to education, telehealth and
agriculture extension, and bring greater accountability to the government by boosting
transparency and interactivity.
Enabler for Digital India: The scheme would enable small shopkeepers to provide Wi-Fi
service. This will boost incomes as well as ensure youth gets seamless internet
connectivity.
o It can also strengthen the Digital India mission.
Cutting The Red Tape: Through PM WANI, the government is hoping that by cutting
through layers of bureaucracy and eliminating licences and fees, it can make it easy even
for a tea shop owner to register online as a service provider, opening up new income
avenues.
Domino Effect on Economy: According to the TRAI report, public Wi-Fi system on the
WANI architecture can lead to a 10% rise in net penetration which in turn can lead to a
1.4% increase in GDP.
Bridging the Digital Divide: PM WANI can result into a rapid scale-up of the Internet in
rural India, which will be transformative, given the low level of penetration — 27.57
subscribers per 100 population in 2019.
17 | P a g e To Join Law Chronicles CLICK HERE!
o Wi-fi linked to broadband fibre service can be the fastest route to bridging the
existing gap.
Low-Cost Alternative: Upcoming mobile technologies such as 5G may provide good
quality data, but they involve high investment in the new spectrum, connectivity
equipment and regular subscriber fees.
o The WANI system offers a way forward to connect low revenue consumers.
Security Risks: A public WiFI network has several security issues. That’s because several
people access the network at the same time on the same spot.
o Thus public Wi-Fi is at a high risk of sending out confidential data (like passwords,
pins etc.) over the network.
Low Speed: As public WiFI network is usually accessed by several people at the same
time, it results in a considerable loss of bandwidth resulting in a slow network speed
o It is due to this fact, Google and Facebook’s attempts to provide public Wi-fi got shut
down earlier this year.
Cheap Mobile Data: As per TRAI in 2019, India now has among the cheapest mobile data
per GB in the world, with mobile data prices having reduced by 95% in the last five years.
o As 4G has become cheap and widely accessible, is there still a need to drive Wi-Fi in
this manner, rather than the “leapfrogging” of technology that people have
frequently talked about in the context of India
Recently, at the Afghanistan 2020 Conference, India has announced about 150 projects worth
USD 80 million.
Afghanistan’s President, officials from the United Nations (UN) and the European
Union (EU) officials, besides representatives of other countries, attended the conference.
Also, the USA has decided to reduce its troop presence in Afghanistan to about 2,500 by
January 2021.
Key Points
Recently, the Union Minister of Science and Technology informed that the human spaceflight
module of Gaganyaan will be launched after the second unmanned mission planned in 2022-
23.
It was initially envisaged that the Rs. 10,000 crore Gaganyaan mission aims to send a
three-member crew to space for five to seven days by 2022 when India completes 75
years of independence.
o First unmanned mission is planned in December 2021.
It has been delayed due to the Covid-19 induced lockdown.
Key Points
About
o Gaganyaan is a mission by the Indian Space Research Organisation (ISRO).
o Under the Gaganyaan schedule:
▪ Three flights will be sent into orbit.
▪ There will be two unmanned flights and one human spaceflight.
o The Gaganyaan system module, called the Orbital Module will have three Indian
astronauts, including a woman.
o It will circle Earth at a low-earth-orbit at an altitude of 300-400 km from earth for 5-7
days.
Payloads
o The payload will consist of:
▪ Crew module - spacecraft carrying human beings.
▪ Service module - powered by two liquid propellant engines.
o It will be equipped with emergency escape and emergency mission abort.
Launch
Recently, the World Sustainable Development Summit, the annual flagship event of The
Energy and Resources Institute (TERI) was held.
▪ The theme of the 2021 Summit was ‘Redefining our common future: Safe and
secure environment for all’.
▪ TERI is a non-profit research institute, established in 1974. It conducts research
work in the fields of energy, environment and sustainable development for India
and the Global South.
Key Points
The latest data from the National Family Health Survey-5 (NFHS-5) shows India doesn’t
need a two-child policy: experts.
Supporting findings:
Key data:
The Total Fertility Rate (number of children born per woman) has decreased a cross
14 out of 17 States and is either at 2.1 children per woman or less.
This also implies that most States have attained replacement level fertility, i.e., the
average number of children born per woman at which a population exactly replaces
itself from one generation to the next.
Key Points
Mission Innovation:
o Formation:
▪ Mission Innovation was announced on 30th November 2015, on the sidelines of
the Paris Climate Agreement to undertake ambitious measures to
combat climate change.
o Membership:
▪ It is a global initiative of 24 countries and the European Union to accelerate
global clean energy innovation.
o Principle:
▪ Commitment by all members to seek to double their clean energy innovation
investments over five years in selected priority areas.
▪ Each member according to its own priorities, policies, processes, and laws
independently determines the best use of its funding and defines its own
Research & Development priorities and path to reach the doubling goal.
▪ In many cases, MI members prioritise parts of their whole energy innovation
budget within their baseline.
o Objectives:
▪ Enhance the public sector investment to a substantial level.
▪ Increased private sector engagement and investment.
▪ Increase international collaboration.
▪ Raising awareness of the transformational potential of innovation.
26 | P a g e To Join Law Chronicles CLICK HERE!
o Innovation Challenges (IC):
▪ Innovation challenges are a major part of the mission innovation that is aimed
at leveraging research, development, and demonstration (RD&D) in technology
areas that could ultimately result in effective ways to reduce greenhouse gas
emissions, increasing energy security, and creating new opportunities for clean
economic growth.
▪ There are 8 innovation challenges under the mission innovation:
• IC1 – smart grids, IC2 – Off-grid access to electricity, IC3 – Carbon capture,
IC4 – Sustainable biofuels, IC5 – Converting sunlight, IC6 – Clean energy
materials, IC7 – Affordable cooling and heating of buildings, IC8
– Renewable and clean hydrogen.
▪ The first phase has shown that work done under ICs have mobilized in a relatively
short period, relying on members' leadership and voluntary efforts to advance IC
objectives.
▪ These resources have dramatically accelerated the availability of the advanced
technologies that will define a future global energy mix which is clean,
affordable, and reliable.
Mission Innovation 2.0:
o To achieve the shared goal of accelerating innovation, all the members have agreed
to develop a second phase (2.0) that includes:
▪ An enhanced Innovation Platform building on current activities to strengthen
the global clean energy innovation ecosystem and to accelerate learning.
▪ New public-private innovation alliances – Missions – built around ambitious and
inspirational goals backed by voluntary commitments that can lead to tipping
points in the cost, scale, availability, and attractiveness of clean energy solutions.
Indian Initiatives Aligned with the Mission:
o Clean Energy International Incubation Centre:
▪ To support the start-up innovation ecosystem, the Clean Energy International
Incubation Centre established by the Department of Biotechnology, India under
a Public Private Partnership model has played a crucial role.
o Increased Solar Capacity:
▪ India has increased solar installed capacity by 13 times and expanded its non-
fossil fuel-based power generation to 134 Gigawatts, about 35% of total power
generation.
27 | P a g e To Join Law Chronicles CLICK HERE!
• The National Solar Mission (a part of the National Action Plan on Climate
Change) helped India to increase its solar capacity.
▪ India has embarked on an ambitious target of having 450 Gigawatts of
renewable energy by 2030.
o Biofuels:
▪ India is also working to considerably increase the proportion of the biofuel blend
in petrol and diesel:
• Ethanol Blending Programme (EBP): It aims at blending ethanol with
petrol, thereby bringing it under the category of biofuels and saving millions
of dollars by cutting fuel imports.
• The 2018 Biofuel Policy has the objective of reaching 20% ethanol-blending
and 5% biodiesel-blending by the year 2030.
▪ Five Centres of excellence in Bioenergy supported by Department of
Biotechnology in India are working on both fundamental and translational
research for advanced bio-fuels like biobutanol, biohydrogen and biojet fuels.
o Ujjwala Yojana:
▪ Pradhan Mantri Ujjwala Yojana (PMUY) which is the world’s most extensive
clean cooking fuel programme was launched in 2016 and is implemented by the
Ministry of Petroleum and Natural Gas through its Oil Marketing Companies.
▪ Through PMUY, initially, 5 crores below poverty line (BPL) households were
targeted for providing deposit free LPG connections to BPL households by
31st March, 2019. This target has been achieved.
▪ India has released around 150 million connections so far.
o Avoided Emission Framework for a sustainable future:
▪ India and Sweden under a partnership have developed an Avoided Emission
Framework for a sustainable future.
▪ Under this partnership, eight companies have been selected to demonstrate an
initial 100 million tons of potential CO2 emission reduction by 2030.
Iran and the International Atomic Energy Agency (IAEA) have agreed to temporary measures
to offset Iran's decision to restrict access to inspectors.
Key Points
About:
o Iran will stop the implementation of the voluntary measures as envisaged in
the 2015 nuclear deal, as of 23rd February 2021.
o However, Iran will continue to implement fully and without limitation
its Comprehensive Safeguards Agreement with the IAEA as before.
▪ Under a comprehensive safeguards agreement, the IAEA has the right and
obligation to ensure that safeguards are applied on all nuclear material in the
territory, jurisdiction or control of the State for the exclusive purpose of verifying
that such material is not diverted to nuclear weapons or other nuclear explosive.
o No access will be given to the IAEA beyond safeguards of the Non-Proliferation
Treaty.
o Iran would deny the IAEA real-time access to footage from surveillance
cameras installed at some sites and, if sanctions are not lifted within three months,
delete it.
Significance of the Deal:
o It certainly seems likely to defuse a mounting sense of crisis surrounding Iran's
nuclear activities and efforts to breathe new life into the 2015 nuclear deal.
o It significantly reduces the impact of a new Iranian law, passed in 2020, which would
have seriously hampered the IAEA's ability to do its work.
2015 Nuclear Deal:
Recently, Poland has invited India’s Prime Minister while he will be visiting Portugal for
the European Union-India summit (May 2021), and Cornwall, United Kingdom to attend
the G7 grouping where India is a special invitee (June 2021).
Poland is also negotiating with India for a travel bubble arrangement to resume direct
flights suspended due to Covid-19 pandemic.
o Creating a travel bubble involves reconnecting countries or states which have
shown a good level of success in containing the Covid-19 pandemic domestically.
o Such a bubble would allow the members of the group to restart trade ties with
each other and open travel and tourism.
Key Points
Background:
o India and Poland diplomatic relations were established in 1954, leading to the
opening of the Indian Embassy in Warsaw in 1957.
o The two countries shared common ideological perceptions, based on their opposition
to colonialism, imperialism and racism.
o During the Communist era of Poland (1944 to 1989), bilateral relations were close
and cordial, with regular high level visits, coupled with planned trade and economic
interactions by state trading organizations, underpinned by the rupee clearing
arrangements.
o The relationship continued to remain close after Poland chose the democratic path
in 1989.
o A cordial political relationship has emerged in the current century, particularly after
Poland joined the European Union in 2004, and became one of India’s key economic
partners in Central Europe.
Economic & Commercial Relations:
o Export
Recently, the government has notified Information Technology (Intermediary Guidelines and
Digital Media Ethics Code) Rules 2021.
▪ These new rules broadly deal with social media and over-the-top (OTT) platforms.
▪ These rules have been framed in exercise of powers under section 87 (2) of
the Information Technology (IT) Act, 2000 and in supersession of the
earlier Information Technology (Intermediary Guidelines) Rules 2011.
Key Points
Background:
o 2018:
▪ The Supreme Court (SC) had observed that the Government of India may frame
necessary guidelines to eliminate child pornography, rape and gangrape
imageries, videos and sites in content hosting platforms and other applications.
o 2020:
▪ An Ad-hoc committee of the Rajya Sabha laid its report after studying the
alarming issue of pornography on social media and its effect on children and
society as a whole and recommended for enabling identification of the first
originator of such contents.
▪ The government brought video streaming over-the-top (OTT) platforms under
the ambit of the Ministry of Information and Broadcasting.
New Guidelines for Social Media/Intermediaries:
o Categories of Social Media Intermediaries:
▪ Based on the number of users, on the social media platform intermediaries have
been divided in two groups:
• Social media intermediaries.
• Significant social media intermediaries.
For the first time, the government, under the ambit of the Information Technology
(Intermediary Guidelines and Digital Media Ethics Code) Rules 2021, has brought in
detailed guidelines for digital content on both digital media and Over The Top (OTT)
platforms.
1. While all the rules have been framed and notified under the existing Information
Technology (IT) Act, the administrative powers for regulation of OTT and digital news
sharing platforms shall be under the Ministry of Information and Broadcasting (I&B).
Composition: This body will be headed by a retired judge of the Supreme Court, a High
Court, or an independent eminent person from the field of media, broadcasting,
entertainment, child rights, human rights or other relevant fields.
Powers: This self-regulatory body also has “censuring” powers in case of any
incriminating content.
At the third tier, the government has equipped itself with overriding powers in the form
of “oversight mechanism”. An inter-ministerial committee will perform this function
and it will largely have the same powers as the collective self-regulatory body of the
OTTs.
The new guidelines place more onus on nearly all such companies which provide a
platform to host, share, view or modify content, while also including for the first time,
entities which are in the business of either creating or distributing news online under
the ambit of an online intermediary.
Safe harbour provisions:
The government has made social media intermediaries more liable for the content being
shared on their platform by following due diligence, failing which the “safe harbour
provisions” will not be applicable to them.
1. These safe harbour provisions have been defined under Section 79 of the IT
Act, and protect social media intermediaries by giving them immunity from legal
prosecution for any content posted on their platforms.
Fair opportunity:
Social media companies have been asked to give users a chance for explanation and a
fair opportunity to be heard before removing access to their accounts.
The Union Minister for Finance & Corporate Affairs presented the Union Budget 2021 -22
in Parliament, which is the first budget of this new decade and also a digital one in
the backdrop of unprecedented COVID-19 crisis.
Laying a vision for AatmaNirbhar Bharat, this is an expression of 130 crore Indians who
have full confidence in their capabilities and skills.
Budget 2021 comes in the backdrop of the optimism of the economy turning the tide
from an estimated 7.7% contraction in 2020-21.
However, the construction of the six pillars, which was expected to be on the current
year’s enhanced expenditures, seems to be a bit misplaced, with very little increase in
the overall expenditure of the government.
The fiscal arithmetic provides evidence of this as the total expenditure for 2020-21 is
stated as Rs.34,50,305 crore in the revised estimates, with a capital expenditure at
Rs.4,39,163 crore.
The Budget estimates for 2021-22 states the total expenditure at Rs.34,83,236 crore.
This means an additional spending of just Rs.32,931 crore, which is less than even 1% in
a year of income contraction for a vast majority of the population.
The Economic Survey projects India’s real GDP growth to be 11% in 2021-22, which
is arrived by an implicit assumption of 4.4% inflation and a nominal GDP growth of
15.4%.
This double-digit growth projection is on a very low base and it is important to highlight
the fact that even if these numbers are realised, this growth path would entail a real
GDP growth of 2.4% over the absolute level of 2019-20.
41 | P a g e To Join Law Chronicles CLICK HERE!
This means that the Indian economy would take two years to reach and surpass pre -
COVID-19 levels.
This echoes the intensity of the abnormal times for the economy — which requires non-
standard policy responses, and which was the expectation from Budget 2021.
However, the big bet for growth and employment generation, capital expenditure,
increases by 26% but still accounts for only 15% of the total expenditure.
This increase in capital expenditure, which is expected to be channelised via the
infrastructure push, in turn bears two risks at the moment.
1. First, there is the risk of delay in completion, which leads to cost overruns.
2. Second, as the life cycle of these projects is long, an inventory of funding needs to
the ready in the pipeline.
Thus, the immediate multiplier effects to lift the aggregate demand in the economy
might not emanate as quickly as expected.
Sector-specific targeted proposals, barring production-linked incentives for industry are
few as agriculture and the micro and small industries segment which shores up demand
with their consumption multipliers seem to have been accorded lower priority.
There are no radical reform proposals for the agriculture sector, with no
announcements with regard to bringing urea under the nutrient-based subsidy
regime or rationalising the Public Distribution System issue prices of food grains.
In fact, the recent growth performance of the sector has led the Finance Minister not
to have any increase in cash transfers under the Pradhan Mantri Kisan Samman Nidhi
Scheme (PM-KISAN) from the existing Rs.6,000 per year.
Manufacturing growth, which is expected to be a catalyst in pushing the economy
toward the $5-trillion economy goal (by 2025), would depend entirely on how
private investments pick up.
While the textile sector is the focal point to push employment and industrialisation ,
a lack of concrete policies towards export promotion at a time when the exchange
rate is appreciating and a pedalling with tariffs to increase protection is
frequent, might undermine the competitiveness of manufacturing exports.
42 | P a g e To Join Law Chronicles CLICK HERE!
The creation of a development finance institution addresses one the three issues that
infrastructure provisioning faces in the economy.
While the financing part can be addressed to some extent by this new entity, the
other two execution risk and regulatory issues are still left wide open.
This new institution can be seen as the first step toward cleaning up the financial
sector as the amount set aside for the recapitalisation of public sector banks looks
short of the requirement.
Given the emphasis on start-ups and one-person companies, the stress on the
financial system in the coming years is likely to increase as these firms are more
prone to the cycles in the economy.
The growth push of the Budget subsumes the welfare implications, which is the
hallmark of the ‘new welfarism’ model of the present government.
Both employment and demand generation are left largely to the vagaries of growth
cycles.
While extending the social security benefits to gig economy workers is a welcome
move, the lack of a concerted plan to tackle urban unemployment might prove cos tly,
given the demographic profile and pace of urbanisation of the country.
The Budget sets out some grand plans and does not provide the precise mechanisms
to achieve those.
However, it does attempt to spell out some institutional changes in major areas such
as tax administration and provides a push to public sector research and
development.
The digital push to Census operations might be a long-term investment towards
publishing vital data about the economy, quickly and in time.
Importantly, the Budget is candid on the fiscal deficit numbers and sets out a slow fiscal
glide path.
Conclusion:
The Minister for Finance said that Budget proposals will further strengthen the Sankalp
of Nation First, Doubling Farmer’s Income, Strong Infrastructure, Healthy India, Good
Governance, Opportunities for youth, Education for All, Women Empowerment, and
Inclusive Development among others.
Additionally, also on the path to fast-implementation are the 13 promises of Budget
2015-16-which were to materialize during the AmrutMahotsav of 2022, on the 75th year
of our Independence. They too resonate with this vision of AatmaNirbharta.
There has to be a strong economic recovery which will require to be nurtured especially
in supporting the critical pillars of consumption to sustain the recovery momentum.
15 Finance Commission
th
The Finance Commission (FC) is a constitutional body, that determines the method and
formula for distributing the tax proceeds between the Centre and states, and among the
states as per the constitutional arrangement and present requirements.
Under Article 280 of the Constitution, the President of India is required to constitute a
Finance Commission at an interval of five years or earlier.
The 15th Finance Commission was constituted by the President of India in November
2017, under the chairmanship of NK Singh. Its recommendations will cover a period of five
years from the year 2021-22 to 2025-26.
Key Points
Criticism
Population:
o The population of a State represents the needs of the State to undertake
expenditure for providing services to its residents.
o It is also a simple and transparent indicator that has a significant equalising impact.
Area:
o The larger the area, greater is the expenditure requirement for providing comparable
services.
Forest and Ecology:
o By taking into account the share of dense forest of each state in the aggregate dense
forest of all the states, the share on this criteria is determined.
Income Distance:
o Income distance is the distance of the Gross State Domestic Product (GSDP) of a
particular state from the state with the highest GSDP.
o To maintain inter state equity, the states with lower per capita income would be
given a higher share.
Demographic Performance:
o It rewards efforts made by states in controlling their population.
47 | P a g e To Join Law Chronicles CLICK HERE!
o This criterion has been computed by using the reciprocal of the total fertility ratio of
each state, scaled by 1971 population data.
▪ This has been done to assuage the fears of southern States about losing some
share in tax transfers due to the reliance on the 2011 Census data instead of the
1971 census, which could penalise States that did better on managing
demographics.
o States with a lower fertility ratio will be scored higher on this criterion.
▪ The Total Fertility Ratio in a specific year is defined as the total number of children
that would be born to each woman if she/they were to pass through the
childbearing years bearing children according to a current schedule of age-specific
fertility rates.
Tax Effort:
o This criterion has been used to reward states with higher tax collection efficiency.
o It has been computed as the ratio of the average per capita own tax revenue and the
average per capita state GDP during the three-year period between 2016-17 and 2018-
19.
1) RIGHT TO INFORMATION
2) ECONOMIC SURVEY 2021
3) SUB CATEGORISATION OF OBC
4) PM KISAN SCHEME
5) INDRADHANUSH 3.0
6) NAVEDEX AND IDEX 21
7) CECPA
8) PM WANI SCHEME
9) SHAHTOOT DAM IN AFGHANISTAN
10) GAGANYAAN MISSION
11) WORLD SUSTAINABLE DEVELOPMENT
SUMMIT 2021
12) GUJRAT 2 CHILD POLICY
13) MISSION INNOVATION 2.0
14) IAEA - Iran Deal over Nuclear Inspections
15) INDIA POLAND RELATION
16) NEW IT RULES 2021
17) REGULATION ON OTT AND DIGITAL CONTENT
18) UNION BUDGET
19) 15TH FINANCE COMMISION