Rethink the emerging dynamics of India’s fiscal federalism

Indian Federalism:

1. A ‘holding together federation’ with a built-in unitary bias.
2. Dual Polity: Separate independent Govts at Centre & States.
3. Written Constitution: Powers of Centre & States clearly marked out in the form a written book.
4. Division of Powers: Powers divided into Union (100 subjects), State (61 subjects) & Concurrent (52 subjects) Lists.
5. Supremacy of Constitution: All organs of Govt at Centre & States operate within jurisdiction provided by Const. Centre can’t step over States.
6. Rigid Constitution: Provisions regarding Federal Structure of Country are difficult to amend, requiring Special Majority + Consent of States.
7. Independent Judiciary: To protect & enforce Supremacy of Constitution.
8. Bicameralism: Rajya Sabha is a permanent representation of States.
9. Federal System was adopted due to the large size of the Country & Socio-cultural diversity.

Recent changes in the Federal-Fiscal landscape:

1. Paradigm shift from a planned economy to a market-mediated economic system
2. The transformation of a two-tier federation into a multi-tier fiscal system following the 73rd and 74th Constitutional Amendments
3. Abolition of the Planning Commission and its replacement with NITI Aayog
4. Passing of the Fiscal Responsibility and Budget Management (FRBM) Act
5. Goods and Services (GST) Act with the GST.
6. The extensive use of cess and surcharges which affect the size of the divisible pool.

Issues with India’s Fiscal federalism:

1. India’s intergovernmental transfer system is failing on the aspect of ‘equity-orientation’.
   • The top 1% earners in India captured less than 21% of the total income in the 1930s which dipped to 6% in the early 1980s, but rose to 22% during the liberalisation era.
   • The tax exemptions, tax concessions and other revenues forgone has disproportionately favoured the rich and have reduced the size of the divisible pool.
2. Several pieces of central legislation have imposed extra burden on the States.
   • For instance, central acts such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, The Right of Children to Free and Compulsory Education Act 2009, the National Food Security Act 2013.
3. The functional and financial responsibilities of the Panchayat Raj Institutions and municipalities has not been clearly demarcated with the passing of 73rd and 74th Constitutional Amendments.
4. The absence of a uniform financial reporting system comprising all levels of government, placing the third tier properly on the fiscal federal map of India is a major deficit.
   • Though the Constitution refers to the third tier as ‘institutions of self-government’ policymakers, experts have referred to it has ‘local bodies.’

What has to be done?

1. ‘Equity-oriented’ intergovernmental transfer system should be the norm.
   • Equity should be the main concern of the 16th Finance Commission.
   • HDI can be used as a strong candidate in the horizontal distribution of tax devolution.
   • Article 246 and the Seventh Schedule has to be revisited regarding division of powers, functions and responsibilities for a variety of reasons.
2. A new local list which specifies the functional and financial responsibilities of the Panchayat Raj Institutions and municipalities has to be carried out.
3. The third tier of government has to be properly placed on the fiscal federal map of India by devising uniform financial reporting system that includes,
   • Standard budgeting rules for all tiers
   • Introduction of the accrual-based accounting system.
4. Need to review the off-Budget borrowing practices of both the Union and the States, as they are unscrutinised and unreported. All extra-budgetary transactions have to be brought to the public domain.
   • It is a Universal norm that all income and expenditure transactions should fall under some Budget head or the other.
   • State public sector undertakings and special purpose vehicles raise resources from the markets, but their servicing burden often falls on the State government.
   • In many cases the government being the ultimate guarantor, the burden of repaying the debt also falls on the State.
   • States are disciplined through Article 293(3) by the Union through the FRBM Act, the Union often escapes such controls.
   • The National Small Saving Fund (NSSF) has been liberally utilised for extra-budgetary financing of central public sector undertakings and central ministries by way of loans which is not reflected in the Union fiscal deficits.
   • The borrowing space of States is restricted, the Union escapes such discipline.

What is the care protocol for babies in India?

Why in the News?

Recently, a former British nurse Lucy Letby was sentenced to life in prison after being held guilty in the worst child serial killer case in the history of the U.K.

• Letby was convicted of murdering 7 babies and trying to kill 6 others between June 2015 and June 2016.
• The infants were killed by injecting them with air, force-fed milk or poisoned with insulin.

What are patient safety provisions in India?

1. As per the Union Health Ministry, Patient safety is defined as “the freedom for a patient from unnecessary harm or potential harm associated with provision of healthcare” and its forms a fundamental element of public healthcare.
2. Patients in India are protected under multiple layers of law but they are largely fragmented. 
   1. Idea of patient safety is enshrined in the Hippocratic Oath of medical professionals.
   2. The Consumer Protection Act deals with medical negligence and deficiency of services.
   3. Clinical Establishment Act deals with the legal rights of the patients.
   4. National Pharmaceutical Pricing Authority and Drugs Controller General of India à drafts mechanisms to ensure protection of patients’ rights in terms of medication, devices and hospitalisation charges.

How is neonatal safety maintained in India?

1. India registers 2.6 crore child births annually.
2. There are no exclusive rules for neonatal care and safety, or protection against external harm in hospitals in India.
3. Provisions and checks are in place to handle issues like inadvertent mix-up of babies at birth and abduction in the hospital set-up.
4. A comprehensive framework with provisions for the safety and wellbeing of neonates are in place to minimise potential risks., which includes,
   1. Trained healthcare staff to counsel parents and provide emotional support to ensure the safety and development of neonates.
   2. Adequate staffing to closely monitor each baby’s condition and respond swiftly to any concerns. 
   3. Availability of proper equipment for respiratory support, temperature regulation and monitoring vital signs.
   4. Regular training and continuing medical education for healthcare staff to maintain high-quality neonatal care and uphold safety standards.

Issues faced by the Neonates:

1. WHO reports that children face the greatest risk of death in their first 28 days of birth.
   1.  47% of all under-five deaths occurred in the newborn period with about 1/3^rd dying on the day of birth and close to 3/4^th dying within the first week of life, in 2019.
   2. Infants who die within the first 28 days of birth suffer from conditions and diseases associated with
      1. Lack of quality care at birth
      2. Lack of skilled care and treatment immediately after birth and in the first days of life.
      3. Pre-term birth
      4. Intrapartum-related complications (birth asphyxia or lack of breathing at birth),
      5. Infections
      6. Birth defects
2. The Infant Mortality Rate (IMR) in India is 26.6 deaths per 1,000 live births in 2023 which is a 3.89% decline from 2022.

What has to be done to minimise neonatal deaths in India?

1. Midwife-led continuity of care (MLCC) has to be provided to women from the start of pregnancy to post-delivery phase.
   • Women who receive MLCC through professional midwives, educated, and regulated to internationals standards, are 16% less likely to lose their baby and 24% less likely to experience pre-term birth.
2. Seeking prompt medical care by families
   • In the cases of danger signs like feeding problems, or reduced activity of newborns, difficult breathing, a fever, fits or convulsions, jaundice in the first 24 hours after birth, yellow palms and soles at any age, or if the baby feels coldà medical attention has to be sought immediately.
3. Registration of the births of newborns and timely vaccination of the child according to national schedules.
4. Newborns has to provided with additional attention and care during hospitalisation and at home to minimise their health risks.

After Chandrayaan-3, what are ISRO’s plans?

Why in the News?

India became the 4^th country to have soft-landed a robotic instrument on the moon and the 1^st to land in the moon’s south polar region, by the touch down of Chandrayaan-3 on Aug 23, 2023.

What are ISRO’s focus areas?

Focus areas of ISRO:

1. Gaganyaan
   • A human spaceflight mission in which astronauts are trained.
   • Modified Launch Vehicle Mark-3 (LVM-3) rocket are being tested for certification that they are safe to carry humans.
2. Reusable Launch Vehicle Technology Demonstrator (RLV-TD)
   • A launch vehicle to be used for multiple missions is undergoing tests.
   • They are unlike the existing rockets each of which can be used only for one mission.
   • This launch vehicle resembles NASA Space Shuttle, that can use heavy-duty engines and lift up to 20,000 kg to low-earth orbit
   • It is capable of launching heavier and more sophisticated space missions in future.

3. SCE-200
   • A powerful engine which uses highly refined kerosene as the fuel and liquid oxygen as the oxidiser.
   • It is intended to power the next generation of ISRO rockets
   • It is currently undergoing tests.
4. Small Satellite Launch Vehicle (SSLV)
   • A rocket smaller than the Polar Satellite Launch Vehicle (PSLV)
   • It is intended to carry lighter satellites into low-earth orbit with a shorter turnaround time between launches
   • This is currently undergoing developmental flights.

Upcoming missions of ISRO:

1.  Aditya L1 spacecraft
   • A scientific mission to study the sun in greater detail that is expected to be launched in September this year.
   • It is planned to be launched onboard a PSLV rocket.
2. Two flights of the modified LVM-3 will be tested for the Gaganyaan mission’s crew escape system. 
3. Launch of XPoSat satellite to study X-rays streaming through outer space.
4. Launch of third developmental flight of the SSLV.
5. Launch of NISAR satellite, built jointly by ISRO and NASA at a cost of $1.5 billion, is planned in January 2024.
   • The satellite will study natural processes on the earth’s surface for 3 years in radar frequency.
   • Contains state-of-the-art setup
6. Launch of Gaganyaan G1 and G2 flights:
   • A human-rated LVM-3 rocket will be flown without a crew
7. Launch of the GSAT-20 communications satellite.
8. Launch of payloads for other space agencies, companies or institutes.
9. Working on the development of safer and more energy-efficient rocket fuel such as methalox propellant (methane plus liquid oxygen).
10. Quest for development of an electric propulsion system for satellites, that will be lighter than chemical propellants and being beneficial to a satellite’s lifespan.
11. ISRO is expected to launch the European Space Agency’s PROBA-3 satellites in 2024.
12. ‘Shukrayaan’ mission to Venus has been planned.
13. ISRO in collaboration with the Japan Aerospace Exploration Agency (JAXA) is developing systems for Lunar Polar Exploration (LUPEX) mission
    • It is a natural extension of the Chandrayaan-3 mission.
    • It shall consist of a lander and a rover to extend studies of the moon’s south polar region.
    • It shall have sophisticated systems such as drill to extract subsurface samples for further analysis.
    • Developed in such a way to demonstrate ‘night survival’ i.e., to endure -180 degrees Celsius during the night day (14 earth days) in the moon.
    •  The launch vehicle and the rover will be provided by JAXA and the lander by ISRO.

How wastewater can help tackle water shortages

Why in the News?

Water shortages are causing tensions in Europe as it is experiencing severe heat and drought due to lack of rainfall in 2023.

• In Spain, water reserves have dropped to 41% leading to severe crop losses and water restrictions in place in some regions.
• Human-induced climate change has led to increased heat waves and drought.
• Demand for the resource is growing with industry and agriculture leading to more groundwater extraction.

Who uses the most water?

1. Europe’s Industries use 50% of its water resources, followed by Agriculture (40%) and Households (10%).
2. Water scarcity impacts 11% of all citizens in the EU.
3. In 2022, some nuclear power plants in France were switched off because river water used for cooling them was too warm.
4. In Norway, Dry summer reduced hydropower generation output.
5. Households are forced to use-restrictions due to water scarcity.

What can be done?

1. Treated wastewater of industrial and domestic use can be used for irrigation which could protect valuable freshwater supplies.
   • Wastewater can be used 6 times more compared to current levels in the EU.
2. New EU regulations on minimum requirements for water reuse for agricultural irrigation has been put into force.
   • It stipulates that communal and industrial wastewater must be processed after use by farmers of all EU member states.
   • Processing and reusing water can replace 20% of irrigation needs in Spain and Portugal and 40% needs in France, Italy and Greece, all of which uses groundwater for irrigation.
3. Certain factors to be considered in the EU wastewater regulation:
   • Use of industrial and communal wastewater for irrigation can be counterproductive if water processing plants fails to filter out all pollutants that can contaminate soil and plants.
   • The water levels in the river could drop if too little processed water from industry and municipalities is fed back into them.
   • Cost factor involved in procuring recycled water that will directly incentivise/disincentivise farmers to use it for agriculture.
4. Shifting to less water-intensive crops like millet and wheat from rice and maize.
   • Italy forms Europe’s largest rice-growing area where farmers use water from Po River and also depend on winter snowfall in the Alps.
   • Winter wheat, a crop plant that is less water dependent and grows early and already ripens in early summer.
   • Crops such as legumes like lentils and chickpeas can withstand heat and don’t need much water.
   • Use of efficient drip irrigation in the place of large-scale water sprinklers.
5. Maintenance of pipes that shuttle the resource to homes and businesses to check for leaks and broken pipes.
   • About 60% of Bulgaria’s water disappears through leaks and for Italy it stands at 40%
   • These countries invest least amount of money per citizen to fix leaky water infrastructure.

BRICS Expansion

Why in the News?

Recently at the 15^th BRICS summit, the five-member grouping of BRICS decided to expand by the inclusion of 6 more countries in a move to strengthen its claim of being a ‘voice of the Global South’.

BRICS:

1. BRICS consists of Brazil, Russia, India, China, and South Africa.
2. In the Johannesburg Summit, BRICS has agreed to extend membership to 6 other countries:
   • Iran
   • The United Arab Emirates (UAE)
   • Saudi Arabia
   • Argentina
   • Egypt
   • Ethiopia
3. BRICS currently represents ~40% of the world’s population and more than a 25% of the world’s GDP.
4. With the inclusion of new member states, it will represent almost 50% the world’s population, and also include 3 of the world’s biggest oil producers- Saudi Arabia, the UAE and Iran.

Expansion of BRICS membership:

1. BRICS is driven by two basic impulses:
   • An anti-US sentiment is simmering currently in the world where all countries are looking for a grouping to use that sentiment to gather together.
   • Growing consensus for multipolarity has led countries of the Global South to be in a platform to express their solidarity.
2. The Anti-US sentiment has been a driving force.
   1. 1. With the onset of Ukraine war, west has grouped together as one bloc and Russia-China partnership on the other.
      2. The expanded membership has turned it into an aspiring bloc to challenge the western geopolitical view.
      3. It can emerge as a counterweight to Western-led fora like G7 and the World Bank.

• • • iv. Russia regards the expansion could reduce its isolation due to sanctions keep its beleaguered economy afloat by co-opting for Global South.

2. 1. 5. Russia wants to dilute opposition to its illegal occupation of Ukrainian territory.
3. Expansion of membership has been driven mainly by China.
   • Membership to Iran will lead to strengthening of China-Russia imprint as the former has strained relationship with the west and adds the anti-US axis,
   • The membership of two regional rivals- Saudi and Iran is followed by a peace deal brokered by China between Tehran and Riyadh, recently.
4. Saudi Arabia, a traditionally US ally has been falling out in the recent times and the BRICS membership is in line with that.
5. Argentina which is facing a severe economic crisis currently will hope for financial aid from BRICS.
6. Inclusion of Saudi Arabia and the UAE could bring new investment and trade opportunities.
7. Egypt’s strategic location along with the newly discovered gas fields can leverage BRICS in the economic and geopolitical arena.

Outcomes of the 15^th BRICS Summit:

1. Call for Global South to foster beneficial economic growth
2. Sustainable development
3. Reform of multilateral systems such as the UN Security Council
4. Commitment to uphold the international law as per the UN Charter 
5. Commitment to peaceful resolution of differences and disputes through dialogue and inclusive consultation. 
6. Pitched for increasing the use of local currencies, alternative financial arrangements and alternative payment systems to reduce the dependency on the US dollar.

MCQ:

Consider the following statements about BRICS:

1. All decisions in BRICS are taken by Consensus.
2. Iran, Argentina and Nigeria have joined as the new members of the BRICS.
3. The New Development Bank (NDB) is an initiative of BRICS.

How many among the above statements are incorrect?

1. Only 1
2. Only 2
3. Only 3
4. None

Ans: a)

The BRICS takes unanimous decisions i.e., All decisions in BRICS are taken by Consensus of all members of the grouping. Therefore, statement 1 is correct.

Nigeria is not a member of BRICS. The new members shall include- Iran, Saudi Arabia, UAE, Argentina, Egypt and Ethiopia. Therefore, statement 2 is incorrect.

The New Development Bank (NDB) is an initiative of BRICS set up through an agreement signed in 2014 and started operations in 2015. The bank intends to mobilise resources for infrastructure and sustainable development projects in Emerging Markets and Developing Countries (EMDCs). Therefore, statement 3 is correct.

Omega Fatty acids

1. Polyunsaturated fatty acids (PUFA) or called as “essential” fatty acids are Omega-3 and Omega-6.
2. They play in controlling two key body processes:
   1. Blood clotting
   2. Inflammation.
3. It prepares the body to fight back infection and injury but for prolonged periods can also cause severe damage and chronic illnesses.
4. Both have to be in right ratio to maintain good health.
5. Omega-3:
   1. Reduces the formation of molecules and substances that lead to inflammation.
   2. Fish-eating communities had lesser prevalence of heart attacks because of omega-3.
   3. Reduces triglycerides, increases HDL and keeps blood platelets from clumping together.
   4. Three types of Omega-3:
      1. ALA (alpha linolenic acid)
      2. DHA (Docosahexaenoic acid)
      3. EPA (Eicosapentaenoic acid). 
   5. A maximum of 3 grams can be consumed in a day.
6. Omega-6:
   1. They are found in walnuts, safflower oil, peanut butter and avocado oil.
   2. Helps to stimulate skin and hair growth, maintain bone health, regulate metabolism and maintain the reproductive system.
   3. A maximum of 11 to 20 grams a day can be consumed a day.
7. High amounts of Omega-6 PUFA and a very high Omega-6/Omega-3 ratio can promote the pathogenesis of many diseases.

Seethakali Folk art

1. A Dravidian dance drama primarily performed by Dalit artists belonging to the Veda and Pulaya communities of Kerala, first performed some 150 years back.
2. It presents minuscule episodes of the Ramayana at every homestead, portions from vanayatra (exile to the forest) to Sita’s andardhanam (descend into the earth). 
3. It is performed during the festival days starting with Atham star till the 28th day after Onam and they go from one house to another performing this art.
4. Seethakali songs were orally passed on from one generation to the next.
5. The art form is a blend of songs, storytelling and fast movements while ganjira, manikatta, chiratta and kaimani are among the accompaniments.
6. The props and instruments used during performances are all made of natural materials like bamboo and palm leaves.
7. Currently, in Kerala, there is only one registered Seethakali performing group – Perinad Seethakali Sangham.

Picoflare jets

1. Picoflare jets are small jets of charged particles that are expelled intermittently from the corona of the Sun, at supersonic speeds.
2. They could emanate from coronal holes where the sun’s magnetic field stretches into the space.
3. The picoflare jets could supply energy and plasma to the solar wind (a continuous stream of charged particles flowing outwards from the Sun’s corona).
4. It forms a component of space weather within the heliosphere.
5. The picoflare jets have been observed by the Solar Orbiter spacecraft of NASA.