India’s Emerging Twin Deficit Problem
India’s Emerging Twin Deficit Problem Why in news? The Finance Ministry report highlights two key areas of concern for the Indian economy – the fiscal deficit and the current account deficit. What is optimistic in the report? Stagflation– The world is looking at a distinct possibility of widespread stagflation but India is at low risk of stagflation, owing to its prudent stabilization policies. Economic growth– The economic growth outlook is likely to be affected by Russia-Ukraine conflict owing to the trade disruptions export bans surge in global commodity prices inflation However, in India, the economic activities sustained in the first two months of the current financial year. It is a good sign for India that continues to be the quickest growing economy among major countries in 2022-23. What is the concern with the fiscal deficit? Fiscal Deficit– The fiscal deficit is essentially the amount of money that the government has to borrow in any year to fill the gap between its expenditures and revenues. The fiscal deficit calculations are based on two components — income and expenditure. As per the CGA report, fiscal deficit for 2021-22 was pegged at 6.71 % of the GDP. Impact– Higher levels of fiscal deficit imply the government eats into the pool of investible funds in the market which could have been used by the private sector for its own investment needs. The report states that as government revenues take a hit following cuts in excise duties on diesel and petrol, a risk to the budgeted level of gross fiscal deficit has emerged. Recommendations Trim revenue expenditure (or the money government spends just to meet its daily needs) Rationalize non-capex expenditure What is the issue with current account deficit (CAD)? Current account deficit- The current account essentially refers to two specific sub-parts. Import and Export of goods (Trade account) Import and export of services (Invisibles account) If a country imports more goods than it exports, it is said to have a trade account deficit whereas it earns a surplus on exporting more services than importing. If the net effect of a trade account and the invisibles account is a deficit, then it is called a current account deficit or CAD. Impact– A widening CAD tends to weaken the domestic currency because a CAD implies more dollars or foreign currencies are being demanded than rupees. The report stated that costlier imports such as crude oil and other commodities will not only widen the CAD but also put downward pressure on the rupee. A weaker rupee will, in turn, make future imports costlier. FPI continuously pulling out money from the Indian markets due to higher interest rates in the western economies will also hurt the rupee and further increase CAD. References https://indianexpress.com/article/explained/everyday-explainers/indias-emerging-twin-deficit-problem-explained-7982895/ https://www.investopedia.com/terms/f/fiscaldeficit.asp#:~:text=A%20fiscal%20deficit%20is%20a,spent%20in%20excess%20of%20income. https://www.economicsdiscussion.net/budget/3-types-of-budget-deficits-and-their-measures-micro-economics/753 Quick facts Glossary Inflation- Inflation is the rate of increase of the overall price level of goods and services in an economy. Stagflation- Stagflation describes a combination of high inflation and economic stagnation as reflected by a slow growth rate and high unemployment. Budgetary deficit- It is the excess of total expenditure (both revenue and capital) over total receipts (both revenue and capital). Revenue deficit- It is excess of total revenue expenditure of the government over its total revenue receipts. Revenue deficit = Total revenue expenditure – Total revenue receipts Fiscal deficit- It is defined as excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. Fiscal deficit = Total expenditure – Total receipts excluding borrowings Primary Deficit- It is defined as fiscal deficit of current year minus interest payments on previous borrowings. Primary deficit = Fiscal deficit-Interest payments
The Hindu Analysis 22-06-2022
1. A wish list for reform in India’s higher judiciary Page 6. GS 2, Judiciary, Constitution. It is generally assumed that the senior most judge of the Supreme Court should be the Chief Justice of India, but we may pause to consider whether this is what the law mandates, and whether it is wholly wise. As to the first, the Constitution mandates no such thing. Article 124 merely states that the President will appoint every judge of the Supreme Court, and this includes the Chief Justice, and each of these judges shall hold office until they attain the age of 65 years. The requirement about appointing the senior most judge to be the CJI is a sleight of hand devised in the Second Judges case (1993) and the consequent Memorandum of Procedure which is an obvious and naked usurpation of the President’s power and a blatant attempt to rewrite the Constitution. It has no constitutional legitimacy. 2. Progress without limits Page 6. GS 3, Growth and Development, Technology. The Union Cabinet last week cleared the decks for the first auction of radio spectrum to facilitate the roll-out of 5G telecommunication services. The Government has underscored that its primary motivation is to boost digital connectivity, a laudable objective given that the rapid growth of wireless telephony has perceptibly helped improve the delivery of services such as mobile banking, online education and telemedicine. 3. A new global standard for AI ethics Page 7. GS 3, Technology, Growth and Development. Artificial intelligence (AI) is more present in our lives than ever. From predicting what we want to see as we scroll through social media to helping us understand weather patterns to manage agriculture, AI is ubiquitous. AI algorithms can also be partially credited for the rapidity with which vaccines were developed to tackle COVID-19. The algorithms crunched complex data from clinical trials being undertaken in all corners of the world, creating global collaborations that could not have been imagined even a decade ago. 4. Analysing spectrum auction Page 7. GS 3, Technology, Growth and Development. The Union Cabinet has cleared a mega auction of radio spectrum in various bands for commercial mobile services. Based on the recommendation of the Telecom Regulatory Authority of India (TRAI), the government is planning to auction spectrum in the sub-GHz bands of 600, 700, 800 and 900 MHz; in the mid-bands of 1,800, 2,100, 2,300, 2,500 and 3,300 MHz, and in the high frequency band of 26 GHz. 5. The absurdity of the anti-defection law Page 9. GS 2, Constitution, Polity. The anti-defection law was included in the Constitution to combat the “evil of political defections”. The main purpose was to preserve the stability of governments. The law stated that any MP or MLA would be disqualified from their office if they voted on any motion contrary to the directions issued by their party. 6. 5G to account for 39% of India’s subscriptions by 2027: Ericsson Page 14. GS 3, Technology, Growth and Development. The number of subscriptions to India’s 5G services, which are likely to be rolled out from later this year, is expected to reach about 500 million, or 39% of all subscribers, by 2027, telecom equipment maker Ericsson said in a report on Tuesday. while India presented significant opportunities, it also held challenges for service providers. It pointed out that average revenue per user for telcos remained low despite a recent increase in the price of data. “Moreover, India has some of the highest prices for spectrum in the world, constraining service providers’ ability to invest in infrastructure,” the company said. 7. Nonbank PPI issuers can’t load via credit Page 14. GS 3, Economy. The Reserve Bank has asked nonbank prepaid payment instrument (PPI) issuers not to load their wallets and cards from credit lines or pre-set borrowing limits. PPIs are instruments that facilitate purchase of goods and services, financial services, and remittance facilities, against the value stored therein.
Daily News 22-June-2022
Gaps in Post-2020 Global Biodiversity Framework GS Paper – 3 Environmental Pollution & Degradation, Government Policies & Interventions, International Treaties & Agreements, Important International Institutions. Why in the news? According to a group of environmental scientists, ecologists, and policy specialists, the draught of the Post-2020 Global Biodiversity Framework does not account for the entirety of chemical pollutants that threaten ecosystems worldwide. What are the Framework’s Gaps? Chemical Pollutants: The draught agreement falls short by confining itself to nutrients, pesticides, and plastics, leaving excluded many compounds of great concern and importance, such as persistent and hazardous pollutants like mercury and PFAS (per- and polyfluoroalkyl substances), as well as pharmaceuticals. LNPP Inside Protected Areas: At the moment, LNPP (area where natural processes predominate) comprises approximately 56 percent of terrestrial land, excluding permanent ice and rock. However, just 20% of this land is legally protected. This indicates that, excluding permanent ice and rock, LNPP covers only 11% of the world’s land inside protected zones. The group believes that this is a problem because the post-2020 framework calls for at least 30% of land to be conserved by 2030. LNPP refers to land with little human disturbance and/or ecologically intact vegetation, which provides room and habitat for biodiversity to thrive. What exactly is the Post-2020 Global Biodiversity Framework? About: It is a new framework that will guide global initiatives to preserve and maintain nature and its important services to humanity through 2030. It seeks to elicit immediate and transformative action from governments and all sectors of society in order to contribute to the goals of the Convention on Biological Diversity, its Protocols, and other global biodiversity agreements, procedures, and instruments. The framework is based on a philosophy of change that emphasises the need for immediate policy action at the global, regional, and national levels to reform economic, social, and financial models. Goals and objectives: Four objectives must be met by 2050: To halt biodiversity extinction and decline. By conserving, we can improve and maintain nature’s services to humanity. To ensure that all people benefit fairly and equally from the exploitation of genetic resources. To bridge the gap between existing financial and other implementation resources and those required to accomplish the 2050 Vision. 2030 Action Targets: The framework comprises 21 action-oriented targets for urgent action over the next decade, including: To include at least 30% of the world’s land and sea in protected zones. A 50% reduction in the rate of invasive alien species introduction, as well as controls or elimination of such species to remove or reduce their impacts. Reducing nutrient loss to the environment by at least half, pesticides by at least two-thirds, and plastic trash discharge by at least half. Nature-based contributions to global climate change mitigation efforts of at least 10 GtCO2e (gigatonnes of equivalent carbon dioxide) per year, with no detrimental impacts on biodiversity. Redirecting, reusing, modifying, or eliminating damaging to biodiversity incentives in a reasonable and equitable manner, with a reduction of at least USD 500 billion per year. What are the suggestions? A broader range of chemical contaminants must be targeted for policies and actions to be implemented under the post-2020 global biodiversity framework. Countries from all around the world have decided to form an intergovernmental science-policy panel on chemicals and waste in order to combine existing information and inform policymakers. Chemical contaminants prevalent in every ecosystem on the planet, including distant Arctic, Antarctic, and Himalayan ecosystems, should drive new biodiversity framework negotiators to include these as threats to global biodiversity. Protecting biodiversity is critical for food supply; there should be a net gain of at least 5% in the area, connectedness, and integrity of natural systems by 2030 and 15% by 2050 to support healthy and resilient populations of all species. Changing diets, raising crop and livestock productivity, and limiting agricultural land expansion would all contribute to meeting global biodiversity, food security, and climate mitigation targets by 2050. What is the Biological Diversity Convention? Since 1993, the Convention on Biological Diversity (CBD) has been in existence as a legally enforceable convention to conserve biodiversity. It has three key goals: Biological diversity preservation. The long-term utilisation of biological diversity components. The equal and fair distribution of the advantages derived from the use of genetic resources. It has been ratified by nearly all countries (notably, the US has signed but not ratified). The CBD Secretariat is headquartered in Montreal, Canada, and is run by the United Nations Environment Programme. The Parties (Countries) to the Convention on Biodiversity (CBD) convene on a regular basis, and these gatherings are known as Conferences of Parties (COP). The Cartagena Protocol on Biosafety, a supplementary agreement to the Convention, was adopted in 2000. It went into effect on September 11, 2003. The Protocol aims to conserve biological variety from the threats posed by live changed organisms as a result of modern biotechnology. The Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Resulting from Their Utilization (ABS) was adopted at the COP10 meeting in Nagoya, Japan in 2010. It went into effect on October 12, 2014. It applies not only to CBD-covered genetic resources and the benefits derived from their use, but also to traditional knowledge (TK) linked with CBD-covered genetic resources and the benefits derived from their use. Along with the Nagoya Protocol on Genetic Resources, the COP-10 created a ten-year framework for all countries to take action to conserve biodiversity. Officially titled as the “Strategic Plan for Biodiversity 2011-2020,” it established a set of 20 ambitious yet feasible biodiversity targets known as the Aichi Targets. In order to give effect to the CBD rules, India established the Biological Diversity Act in 2002.
Bangladesh’s Rohingya Problem
Bangladesh’s Rohingya Problem What is the issue? Five years after Bangladesh took in thousands of Rohingya driven out of Myanmar, the refugee population is exploding with serious security implications. What is Rohingya issue? The Rohingya are an ethnic Muslim group who reside predominantly in Rakhine state and speak a Bengali dialect. They are not recognised by the Myanmar government as an official ethnic group and are therefore denied citizenship under the 1982 Citizenship Law. It is claimed that there were no Rohingyas in Myanmar before the British brought ‘Bengalis’ to Burma. But, there is sufficient evidence to show that the Rohingyas pre-existed the British-engineered migration during the British occupation of the Arakan State in 1823. Even those who arrived in Burma post-1823 could not go back to Bangladesh now given that they have no citizenship claims there. This effectively makes them a stateless people. They are often said to be the world’s most persecuted minority. What about the involvement of Bangladesh in this issue? Bangladesh has been at the forefront in aiding and providing food and shelter for the refugees and trying to create the conditions in Myanmar for their safe return. Since 2017, more than 700,000 Rohingya, fled as the country’s military launched a campaign of terror against the community, including torture, gangrape, mass executions, and the razing of Rohingya villages. The Forcibly Displaced Myanmar Nationals (Rohingya refugees) settled in the Kutupalong camp in Bangladesh (the world’s largest refugee camp) and underwent dramatic expansion. What is the status of repatriating of refugees in Bangladesh? According to UNHCR, the United Nations Refugee Agency, there were 926,486 registered Rohingya refugees in Bangladesh as of May 31 2022. In the camps, a sharp increase in their population is witnessed due to peace, absence of violent persecution, assurance of food and medical care, etc. In 2017, Bangladesh and Myanmar signed a repatriation agreement but the two sides had not agreed on a concrete process or on a deadline for completion of the repatriation. In 2018, 2,260 Rohingya were identified for repatriation but the attempt failed as they refused to return to Myanmar without assurances for their safety. A tripartite virtual meeting was mediated by China in 2021, but the the Myanmar military staged a coup and put the repatriation process on ice. When China and Russia supported Myanmar on a UNGA resolution on human rights violations against the Rohingya in 2020, India abstained from the vote. What are the current issues with the Rohingyas? Population- The annual rate of growth of population in Bangladesh is 1%, while the population of the Rohingya is growing at 6 or 7 %. Costs- The massive Rohingya population is putting an enormous burden on resources and the environment, besides creating conditions for criminal activity and friction in local society. Impact on India– It carries serious social and security implications for the sensitive Northeast India. The Rohingya issue has also been the cause of tensions between India and Bangladesh in the past and continues to carry that potential. Increase in crimes– Crime such as kidnapping for ransom, petty theft, and dacoity are increasing. Organised crimes– Cox’s Bazar (a refugee camp location) occupies a key place on the Bay of Bengal, and some Rohingya have been found to be involved in drugs trade and human trafficking. Recruitment hub for extremists– The Rohingya often has little education, and many are angry and desperate, and vulnerable to radical Islamist ideology. References https://indianexpress.com/article/explained/bangladesh-rohingya-issue-migration-kutupalong-refugees-camp-7977773/ https://thediplomat.com/2022/02/bangladesh-and-myanmar-resume-talks-on-rohingya-repatriation/
Daily News 21-June-2022
Table of Contents: GS Paper 2: 1. India gives emergency visas for 111 Afghan Hindus, Sikhs 2. Election Commission wants people to run from one seat 3. India and Bangladesh should work on river management 4. What west Seti Power Project can mean for India-Nepal ties GS Paper 3: 1. Major outcomes achieved at WTO 2. A major revamp for Bank Board Bureau GS Paper 4: 1. Mahodiya, the location of the Panchayat Series, real and reel life are not that far apart. Facts for Prelims: 1. Rukmini Krishna Yatra 2. Juneteenth 3. Kausani (Uttrakhand) 4. Chess Olympiad Games 5. Bad Banks 6. Surety Bond 7. Black Swan Event 8. Operation Sankalp India gives emergency visas for 111 Afghan Hindus, Sikhs GS Paper 2 Syllabus: Effect of policies and politics of developed and developing countries on India, protection of people. Context: The Union Home Ministry granted emergency visas to 111 Hindus and Sikhs from Afghanistan, hours after Saturday’s terror attack at a gurdwara in Kabul. All had applied for visas in September 2021, but the applications were cleared only after the Islamic State in Khorasan Province (ISKP), a terrorist group, attacked the gurdwara. e-emergency X-Misc Visa To facilitate and fast-track urgent applications for entry to India. e-Emergency X-Misc Visa is granted to foreigners who are not covered in the available categories of visa but need to visit India urgently due to a family emergency. Such a single-entry visa is issued by Indian Missions/Posts for an appropriate period of time. The facility is available to all Afghans irrespective of their religion. The (initial) validity of this visa would be six months. Insta Links What is an electronic visa (e-visa)? Click here Practice Questions: Q. The e-visa system is an innovation introduced by the government in 2014. Discuss the process and current status of e-visas. Q. Consider the following statements: The visas are granted by the Ministry of External Affairs(GOI). e- Emergency X-Misc Visa is available to Afghan Sikhs and Hindus only. Which of the statements given above is/are correct: a. 1 only b. 2 only c. Both 1 and 2 d. Neither 1 nor 2 Ans: (d)June 20, 2022 /20 June CA, Today Article Election Commission wants people to run from one seat GS Paper 2 Syllabus: Appointment to various constitutional posts, powers, functions and responsibilities of various constitutional bodies. Context: The Election Commission has made a fresh push for amending the law to bar people from contesting more than one seat. It said that if it cannot be done, then a hefty fine should be imposed on those vacating one of the constituencies and forcing a bypoll. The Legislative Department is the nodal agency in the government to deal with issues related to the EC. Background: As per Section 33(7) of the RPA (Representation of the People Act), 1951, one candidate can contest from a maximum of two constituencies. Issues: One-Act Negates another: Since no Candidate can represent two Constituencies, the idea of this system appears to be illogical and ironic. By-election Strains Public Exchequer: After sacrificing one of the Constituencies, a by-election is automatically triggered immediately after the general election. Voters Lose Interest: Repeated elections are not only unnecessary and costly, but they will also cause voters to lose interest in the electoral process. Recommendations of the Election Commission: The Election Commission recommended amending Section 33(7) to allow one candidate to contest from only one seat. It has done so in 2004, 2010, 2016 and 2018. A system should be devised wherein if a candidate contested from two constituencies and won both, then he or she would bear the financial burden of conducting the subsequent by-election in one of the constituencies. Election Laws (amendment) Act 2021 De-Duplication of Electoral Roll: It provides for amendment of section 23 of the Representation of People’s Act, 1950, enabling the linking of electoral roll data with the Aadhaar ecosystem. This aims to curb the menace of multiple enrolments of the same person in different places. This will help in stopping bogus voting and fraudulent votes. This linking is in consonance with the 105th report of the Department Related Parliamentary Standing Committee on Personnel, Public Grievances and Law and Justice. Multiple Qualifying Dates: The citizens get voting rights when they turn 18. However, many are left out of the electoral rolls even after turning 18. This is because, in the system, 1st January is the qualifying date. Four qualifying dates will be declared for updating the voting rolls to include those who have turned 18 — the first day of the months of January, April, July and October. Bringing Gender Neutrality: The language for registration of ‘wives of service voters’ will now be replaced by ‘spouse’. This will make the laws more “gender-neutral”. Service voters are those serving in the armed forces, armed police forces of a state serving outside it and government employees posted outside India. Insta Links: To read RPA 1951: Click here Practice Questions: Q. Critically analyze the provisions of the Election Law(Amendment) Act, 2021. (10M) Q. With reference to Election Laws(Amendment) Act, 2021, consider the following statements: The language for “wives of service voters” will be replaced by the spouse. There will be four qualifying dates for updating voter rolls which include the first day of months of January, March, June and October. Which of the statements given above is/are correct? a. 1 only b. 2 only c. Both 1 and 2 d. Neither 1 nor 2 Ans: (a)June 20, 2022 /20 June CA, Today Article India and Bangladesh should work on river management GS Paper 2 Syllabus: India and neighbourhood- relations Context: At the seventh round of the India-Bangladesh Joint Consultative Commission, External Affairs Minister extended India’s assistance in the management of the annual flood in Bangladesh. Collaborations agreed on: Artificial Intelligence, startups, fintech and cybersecurity. Joint Statement: Two countries remain focused on the “importance of safe, speedy, and sustainable return of forcibly displaced persons from Rakhine State Myanmar, currently being sheltered by Bangladesh”. Reasons for recent floods in Bangladesh: Climate Change Skewed Rainfall Pattern:80% of the precipitation takes place in the monsoon months from June to September Trans-National Rivers from India example: Bharmaputra, Teesta etc. Unplanned Development Insta Links To read about
The Hindu Analysis 21-06-2022
Kerala to give ‘maximum’ water to T.N. Page 5. GS 2, Inter-State Water Disputes, Polity. Steps will be taken to provide maximum water to Tamil Nadu from Siruvani Dam considering the water shortage faced by Coimbatore city, Kerala Chief Minister Pinarayi Vijayan has said. At the centre of job creation Page 7. GS 2,3; Employment, Human Resources, Growth and Development. The creation of employment is indeed a problem and can no longer be hidden from the public discourse. The private sector, especially modern sectors such as the service and manufacturing sectors, which are dominated by multinational companies, have not created many jobs. Even if the Information Technology sector or the modern gig economy have created jobs, these are either very high-skilled jobs or low-skilled ones. Also, the government in the Nehruvian scheme of development occupied an important place in the labour market. Resurrecting a dead law Page 7. GS 2,3; Judiciary, Technology. Section 66A of the Information Technology Act, 2000, which the Supreme Court had declared unconstitutional in 2015 in Shreya Singhal v. Union of India for having a “chilling effect on free speech”, is in talks. As part of the ongoing negotiations at the United Nations for a proposed international treaty on combating cybercrime, India made a formal submission for criminalising “offensive messages”. Dutch disease Page 9. GS 3, Economy. Dutch Disease in economics refers to a phenomenon wherein a country witnesses uneven growth across sectors due to the discovery of natural resources, especially large oil reserves. According to the concept, when a country discovers natural resources and starts exporting them to the rest of the world, it causes the exchange rate of the currency to appreciate significantly and this, in turn, discourages the exports from other sectors while encouraging the import of cheaper alternatives. While the idea was first proposed by economists Peter Neary and Max Corden in 1982, the term ‘Dutch disease’ was first coined by The Economist in 1977 to describe the decline of the manufacturing industry in the Netherlands. Solving the Sterlite problem Page 9. GS 3, Growth and Development, Resources. Sterlite Copper of Thoothukudi in Tamil Nadu has become a moral issue after the police firing on protesters resulted in the deaths of 13 people in May 2018. Sterlite’s product, copper, is a strategic metal. Important applications are energy, electrical equipment and electronics. Copper production provides strategic balance and price stability. The shuttering of the Sterlite plant quickly made India, a copper exporter, an importer. However, distrust of Sterlite is so much that many people now credit good rains to the shuttering of the plant. The community complains that Sterlite did not employ enough local people and did not give enough contracts for local businessmen. Therefore, the corporate group needs to act responsibly and take the people along with it if it wants to conduct its business. Shah flags importance of data protection Page 10. GS 3, Cyber Security. Union Home Minister said that forces inimical to India had constituted “cyber armies” to launch cyberattacks against India but the Home Ministry was ready to thwart any such attempt. Mr. Shah said crimes such as malware attacks, phishing, attack on critical infrastructure and child pornography were not new and these were going to only increase in the future. The number of cybercrimes registered in 2012 was 3,377 and in 2020, it had increased to more than 50,000 cases and by 2025, the crime rate was projected to go up by 231%. India faces near-term challenges: Finance Ministry Page 14. GS 3, Economy. India is facing near-term challenges in managing its fiscal deficit, sustaining economic growth, reining in inflation and containing the current account deficit but the country is relatively better placed to weather these headwinds compared with other nations, the Finance Ministry said in its monthly economic report.
The Situation of Government Jobs
The Situation of Government Jobs Why in news? The PM has ordered a million central government posts to be filled in mission mode over the next 18 months. What is the current picture of employment in India? The unemployment rate is defined as the percentage of unemployed persons in the labour force. Battered by demonetisation, pandemic and subsequent lockdowns, the Indian economy has started showing some signs of revival now. PLFS data– The annual report of the Periodic Labour Force Survey for July 2020 to June 2021 showed that the unemployment rate eased to 4.2% from 4.8% in 2019-20. The unemployment rate was higher for males in rural areas than females. In urban areas, the situation is quite opposite as unemployment rate was higher for females than males. The labour force participation rate (LFPR), or those working or seeking or available for work in the labour force, was the highest in four years at 39.3% in 2020-21. CMIE data– However, according to the Centre for Monitoring Indian Economy (CMIE) data, the unemployment rate in the country stands at 7.83% in April 2022. India is still far behind the US, China and others in public sector employment. PLFS is launched by National Statistical Office (NSO) since 2017 whereas CMIE is a leading business information company that was established in 1976, primarily as an independent think tank. What is the current strength of the Centre’s human resources? The Union Budget 2022-23 estimated the strength of central government employees at 34.65 lakh as on March 1, 2022. According to the Annual Report of the Department of Expenditure (2019-20), approximately 21.75% of the sanctioned posts were vacant as on March 1, 2020. The Indian Railways is the biggest government employer with 12.52 lakh employees as of March 1, 2020. Almost 92% of the central government’s manpower is employed by Railways (almost 40%) Home Affairs (almost 30%) Defence (Civil) (nearly 12%) Department of Posts (almost 5.50%) Department of Revenue (more than 3%) Also, a large number of employees have been hired on contract as per the recommendations especially of the last two Pay Commissions. What are the major recruitment bodies? The UPSC and SSC are the two main recruiters of central government personnel. UPSC makes Group A and Group B recruitments. SSC recruits for all Group B (Non-Gazetted) and Group C (Non-Technical) posts in central Ministries/ Departments and their attached and subordinate offices among others. Twenty one RRBs recruit mainly Group C personnel for Railways. The Institute of Banking Personnel Selection (IBPS) is engaged to recruit for nationalised and Regional Rural Banks. Does the government’s 18 month deadline make sense? Lack of framework– The move doesn’t appear to have any framework for recruitment in the various ministries and departments (except the Agnipath scheme in the armed forces). Concerns with the deadline– The 18-month deadline raises suspicion about the feasibility in achieving the target. No clear idea– The vacancies of the right kind in government/PSUs need to be identified and the skill-sets necessary in a candidate to fill these should be clearly defined. Expenditure burden– An ill-considered addition to the workforce will end up creating a burden for future governments, shrinking room for development expenditure. What is the need of the hour? The government should examine the feasibility of replacing the system of permanent employment with a liberal contractual system, based on periodic performance-based reviews. With technology offering solutions to replace humans in monotonous jobs, the government should gradually move towards recruiting only for the skilled jobs in its ranks. This is the only possible way forward to keep its salaries and pensions bills in check even while adding to the workforce. References https://indianexpress.com/article/explained/govt-job-india-unemployment-explained-7972367/ https://www.thehindubusinessline.com/opinion/editorial/job-at-hand/article65530233.ece https://indianexpress.com/article/explained/fall-in-unemployment-rate-in-2020-21-labour-survey-what-it-means-7971285/ https://www.business-standard.com/article/economy-policy/india-s-unemployment-rate-rose-to-7-83-in-april-shows-cmie-data-122050201088_1.html
The Hindu Analysis 20-06-2022
1. India gives emergency visas for 111 Afghan Hindus, Sikhs Front Page. GS 2, 3; Citizenship, Population related Issues, IR, Growth and Development, Govt Policies and Interventions. The Union Home Ministry granted emergency visas to 111 Hindus and Sikhs from Afghanistan, hours after Saturday’s terror attack at a gurdwara in Kabul. All had applied for visas in September 2021, but the applications were cleared only after the Islamic State in Khorasan Province (ISKP), a terrorist group, attacked the gurdwara on Saturday killing two persons including a Sikh granthi, a member representing the community said. 2. The EPI may rankle but India can recast policies Page 6. GS 3, Growth and Development, Environment, Conservation. The latest Environmental Performance Index (EPI) placing India last among all 180 assessed countries has naturally touched a raw nerve. The assessment with an emphasis on climate change mitigation, has become controversial for prioritising the flow of greenhouse gases from countries while reducing the emphasis on the stock of carbon dioxide from industrialised countries that is warming the globe. The EPI report estimates that China, India, the United States, and Russia are expected to account for over 50% of global residual greenhouse gas emissions by 2050. 3. Revisiting social justice under the Dravidian model Page 6. GS 1,2; Society, Polity. Davidian politics in Tamil Nadu has played a significant role in democratising the public space for wider participation. As emphasised by the Chief Minister of Tamil Nadu recently, social justice has been the integral part of the Dravidian development model. Social justice principles in Tamil Nadu were initially emphasised and propagated by Periyar, who fought for community-based representation while fighting the evils of the caste system. 4. Petty patents can boost R&D Page 7. GS 3, Economy, Growth and Development, Innovation and Technology. Innovative activity is the key driver of competitiveness and economic growth. In that context, India’s rank of 46 in WIPO’s Global Innovation Index (GII) 2021, up from 81 in 2015, is encouraging. This finding corroborates an earlier one by UNCTAD in its Digital Economy Report 2021 where India was seen as exceeding expectations. While these findings are encouraging, India, which aspires to emerge as one of the largest economies of the world, needs to move up further in the innovation rankings, for building self-reliance in technology, especially in the context of the incipient digital revolution. China occupies the 12th rank in GII, ahead of Japan at 13th. This shows that it is possible to move up the ladder with sustained effort. 5. Indian interests at the WTO Ministerial Conference Page 8 GS 2,3; Global Groupings, IR, Growth and Development. On June 17, member countries of the WTO wrapped up the Ministerial Conference’s twelfth outing (MC12) securing agreements on relaxing patent regulations to achieve global vaccine equity; ensuring food security, according subsidies to the fisheries sector and continuing moratoriums relevant to eCommerce, among others. Together they constitute the “Geneva Package.” Negotiators could not reach agreements on issues such as permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access. 6. Auctioning 5G spectrum bands Page 8. GS 2,3; Govt Policies and Interventions, Technology, Growth and Development. The Union Cabinet gave its nod for the auction of spectrum that can be used to offer 5G services, at its meeting held on June 14. A total of 72 Ghz of spectrum with a validity period of 20 years will be put on sale towards the end of July. The two issues that the industry has highlighted with regards to the upcoming auctions are high reserve prices for the spectrum and direct allotment of spectrum to enterprises for setting up captive private networks. 5G is expected to form the backbone of emerging technologies such as IoT and machine to machine communications, thereby supporting a much larger range of applications and services, such as tele-surgery and real time data analytics. 7. Agniveer to have distinct rank and insignia Page 10. GS 2,3; Govt Policies and Interventions, Employment, Human Resources, Growth and Development. On discharge after completion of four years, Agniveers will be paid a Seva Nidhi package to enable them to return to society for pursuing employment in other sectors, both the Indian Army and the IAF said, which would approximately be ₹11.71 lakh. “Agniveers will not be eligible for any kind of pension or gratuity, neither will they be eligible for Ex-servicemen Contributory Health Scheme (ECHS), Canteen Stores Department (CSD) facilities, Ex-Serviceman status and other related benefits,” the terms state. “Agniveers will be barred from disclosing classified information gained during service to any unauthorised person or source under Official Secrets Act, 1923.”
Daily News 20-June-2022
WEB 5.0 GS Paper – 3 IT & Computers Why in the news? Former Twitter CEO Jack Dorsey has revealed his concept for a new decentralised web platform called Web 5.0, which aims to give individuals “control over data and identity.” It is being developed by The Block Head, a Bitcoin business unit founded by former Twitter CEO Evan Williams. The World Wide Web (WWW) is the major tool that billions of people use to interact with one another as well as read and write information. From Web 1.0 to Web 5.0, there has been evolution. What are the Key Features of Different Web Versions? The initial iteration of the worldwide digital communications network is known as Web 1.0. It is frequently referred to as the “read-only” Internet since it is comprised of static web pages that only allow for passive involvement. Web 2.0, The “read and write” Internet was the next stage in the growth of the web. Users may now communicate with servers and other users, birthing the social web. This is the internet as we know it today. Web 3.0 is a developing phrase that refers to the next generation of the Internet – a “read-write-execute” web built on decentralisation. It refers to a digital world constructed on blockchain technology, in which people can connect with one another without the necessity for a middleman. It will be powered by Artificial Intelligence and machine learning, which will allow machines to comprehend information in the same way that humans do. Web 5.0: It is still in its early stages, as it is being developed by Dorsey’s Bitcoin business subsidiary, The Block Head (TBH). Web 5.0 aims to “create an additional decentralised web that puts one in control of one’s data and identity.” Web 5.0 is a combination of Web 2.0 and Web 3.0 that will enable users to “own their identity on the Internet” and “manage their data.” Both Web 3.0 and Web 5.0 envision an Internet free of censorship – whether from governments or big tech – and free of significant outages. It’s about transforming an individual’s “control of identity” and providing users control over their own data; for example, it’s entirely up to the user whether to save his data anonymously encrypted on the decentralised blockchain or to sell that data to vendors for monetization and advertising. What are the Problems with Web 5.0? There are few consequences for this technology in the near future because it is still a concept in its early stages, and no one knows how it will turn out. How the sovereign government would allow this decentralised platform free of government intrusion could lead to conflict between the government and Web 5.0 supporters. There is still uncertainty about how the system will work, who will regulate it, and what safety scenarios exist for vulnerable people such as women, children, and the elderly. The Way Forward Both the government and the promotional sides require a proper blueprint and policy. The effectiveness in the real world must be evaluated. Individual privacy should be prioritised over the necessity for personal data security. It should not become yet another instrument for venture capitalists to manipulate the platform for their personal gain, making a mockery of the political system in the process. The government should establish a regulatory authority to oversee these new and emerging technologies.
The Agnipath Scheme for Armed Forces
The Agnipath Scheme for Armed Forces What is the issue? Massive protests demanding the rollback of the Agnipath scheme is continuing across the country. How are candidates recruited to the service at present? Short Service Commission (SSC)- SSC officers are presently inducted under the 10+4 scheme. Here, the officer serves for 10 years and can either opt out of service or extend the service by 4 years. They can resign at any time during the 4 year period. Permanent Commission (PC)– A Permanent Commission means a career in the service till retirement. The Supreme Court directed the government to ensure that women officers, irrespective of their years of service, are granted PC in the army. What is Agnipath Scheme about? Tour of Duty, or Agnipath, is a scheme under which the forces will recruit soldiers for short-term and long-term on an ‘All-India All-Class’ basis. Aim- To reduce the salaries and pensions to divert resources for military modernisation. Eligibility- Those between the ages 17.5 and 21 years will be eligible to apply. The required educational qualification will be Class 10-12, depending on the service and assigned role. Recruitment- The Centre will recruit Agniveers and the induction process will repeat every six months. The recruitment of women will depend on the requirements of their respective services. Training- The training will go on for a maximum of six months, post which an Agniveer will be deployed for the remaining three and a half years. Selection process- An online centralised system will be used for enrolment of Agniveers and the selection will be the exclusive jurisdiction of the armed forces. Permanent enrolment- After completing 4 years of service, Agniveers will be eligible to apply for permanent enrolment in the armed forces. Up to 25% of them will be selected on an objective basis and enrolled as regular cadre. They will have to serve for a further minimum of 15 years. Adequate re-employment opportunities will be created for the rest 75% who will move out of the services and return to society. Pension– Agniveers will not be eligible for any pensionary or gratuity benefits under the scheme. Exemption– The scheme does not apply to defence officers for whom there is a provision called Short Service Commission or SSC. Currently, the Army recruits young people under the SSC for an initial tenure of 10 years, extending up to 14 years. What benefits will be extended to Agniveers? Salary– The Agniveers will receive an annual package of Rs. 4.76 lakh in the first year to Rs. 6.92 lakh in the fourth year. Allowances– In addition to monthly salary, these recruits will be paid allowances for travel and uniform. Honours and Awards- They will also be entitled to honours, and awards as per existing guidelines. Seva Nidhi– Agniveers will contribute 30% of their salaries to a fund that will be matched by the government. This fund will accrue interest, and at the end of the four years, each soldier will get Rs.11.71 lakh as a lump sum tax-free amount, which includes interest accumulated on the absolute amount. Leaves- An Agniveer will be granted 30-day annual leave while sick leave will be based on medical advice. Insurance cover- The Agniveers will be provided non-contributory life insurance cover of Rs. 48 lakh during their service in the armed forces. How is the Tour of Duty different from conscription? Conscription refers to the mandatory of youth in the national armed forces. Countries that follow the practice of conscription include Israel, Norway, North Korea, and Sweden. However, ToD is not compulsory but provides an opportunity for India’s youth to experience military life without having to join the armed forces on a long-term basis. What is the need for such a scheme? Military exposure– Agnipath scheme or Tour of Duty exposes a larger section of Indian population to the military way of life and gives them a wider exposure. Disciplined workforce– It provides the nation with a large pool of disciplined workforce, with varied skill sets. Beyond regional outlook– This scheme will make citizens rule-abiding and raise them above narrow regional and sectarian outlook, besides enhancing their physical fitness levels. Reservists- The trained workforce can also act as reservists in times of national emergency. Address personnel shortage– This recruitment model has been conceptualised to address personnel shortages, including officers. Employment – It has been proposed as a means to generate increased employment opportunities, with the goal of ensuring that 40% of the personnel are recruited through this medium. What are the mounting criticisms against the scheme? In the Union Budget 2022-23, Rs 5.25 lakh crore were allocated to defence. Of this, defence pensions added up to Rs 1.19 lakh crore. Slashing the expenditure– The reform is criticised for its move to slash the growing salary and pension bills of the three services. Diluting the professionalism– The scheme has been accused of diluting the professionalism of the armed forces. Reduced efficiency– The process will result in mixed units that will lack cohesion and regimentation, which will reduce their effectiveness. Against induction of women– There is also a criticism that with the induction of women in all trades, a unit’s fighting efficiency and rigour will reduce. Political militias– There is an apprehension that the youthful population with military training could create political militias, if they cannot find suitable employment avenues. Lack of reservation– Reservation for former Agniveers in jobs in both central government and state governments is lacking. Suspension of recruitment– Already the recruitment process was suspended for the last two years due to COVID. References https://www.thehindu.com/news/national/agnipath-scheme-eligibility-recruitment-salary-benefits-soldiers-army-navy-air-force/article65529801.ece https://theprint.in/opinion/tour-of-duty-will-expose-youth-to-military-life-dont-let-bureaucracy-fail-it-like-note-ban/996888/ https://www.business-standard.com/article/current-affairs/military-life-without-joining-armed-force-what-is-tour-of-duty-scheme-122061400130_1.html
