World Wildlife Day is celebrated every year on 3 March to raise global awareness about the importance of flora and fauna. 

Establishment:
World Wildlife Day was established by the United Nations in 2013, following a proposal by Thailand to dedicate a day for wildlife conservation awareness.

UN Declaration:
On 20 December 2013, the UN General Assembly officially declared 3 March as World Wildlife Day, with the first celebration held in 2014.

Significance of the Date:
The date was chosen because, on 3 March 1973, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was signed.

About CITES

CITES is a global international agreement aimed at ensuring that international trade in wild animals and plants does not threaten their survival in the wild. It plays a key role in protecting endangered species from over-exploitation.

Convention on International Trade in Endangered Species (CITES) – 

CITES Appendices (Levels of Protection)

World Wildlife Day 2025 Theme

The theme for World Wildlife Day 2025 is:

“Wildlife Conservation Finance: Investing in People and Planet”

The theme highlights the importance of mobilising financial resources to support wildlife conservation, while ensuring benefits for both local communities and the global ecosystem.

The 16th Finance Commission (FC) has retained the States’ share of tax devolution at 41%, giving it a form of “semi-permanence”, while introducing performance-based horizontal distribution and proposing a ‘grand bargain’ to merge cesses and surcharges into the divisible pool.

Highlight: The Commission seeks to balance fiscal consolidation with cooperative federalism, but some recommendations have sparked debate over equity and state autonomy.

Key Recommendations

1. Vertical Devolution and the ‘Grand Bargain’

• States’ share of the divisible tax pool remains at 41%, unchanged from the 15th FC.

• To address concerns over rising cesses and surcharges (outside the divisible pool), the FC proposed a ‘grand bargain’: states accept a smaller share of a larger divisible pool if the Centre merges most levies into shareable taxes.

Highlight: This is a major step toward rationalising non-shareable levies while maintaining fiscal space for states.

2. Horizontal Devolution

The Commission shifted focus toward rewarding economic performance with the following revised formula:

Highlight: Introduction of GDP contribution rewards richer states, shifting some weight away from equity-oriented criteria.

3. Grants-in-Aid (Rs 9.47 Lakh Crore)

• Local Bodies (Rs 8 Lakh Cr): Rural Rs 4.4 Lakh Cr, Urban Rs 3.6 Lakh Cr.

  • Includes Urbanisation Premium Grant (Rs 10,000 Cr) for rural-urban transition.

  • Special Infrastructure Grants (Rs 56,100 Cr) for wastewater management.

• Disaster Management (Rs 2.04 Lakh Cr): Cost-sharing 90:10 for northeastern/Himalayan states, 75:25 for others.

Highlight: Grants are conditional on proper local governance, audited accounts, and functioning State Finance Commissions.

4. Fiscal Roadmap and Reforms

• Fiscal Deficit: Centre target 3.5% of GDP by 2030–31; States 3% of GSDP.

• Off-Budget Borrowings: Recommended end of off-budget liabilities in fiscal deficit calculations.

• Power Sector: Encouraged privatisation of DISCOMs.

• Subsidies: Rationalise unconditional cash transfers (now 20.2% of total subsidy).

• Public Sector Enterprises (PSEs): Closure of 308 inactive state PSEs recommended.

• Transparency: Annual disclosure of CAG-certified net tax proceeds to clarify divisible pool size.

Highlight: Strong focus on fiscal discipline, efficiency, and transparency.

Key Issues and Criticisms

1. Status Quo vs. Growing Imbalances: States’ share retained at 41%, ignoring calls to raise it (~50%), potentially limiting untied revenues for states.

2. Unchecked Cesses & Surcharges: No curbs on non-shareable levies, shrinking the effective divisible pool.

3. Rewarding Rich States: ‘Contribution to GDP’ favors industrialized states, reducing equity for poorer or geographically constrained states.

4. Discontinuation of Revenue Deficit Grants: Particularly affects hill, northeastern, and structurally deficit states.

5. Conditional Fiscal Discipline: Caps on state deficits, DISCOM privatization, and subsidy rationalisation limit state flexibility.

6. Equity Gap: Major losing states include UP, Bihar, West Bengal, MP, Odisha, and several northeastern states, while richer states gain.

Highlight: Populous and economically weaker states risk being trapped in fiscal constraints, widening regional disparities.

Suggested Steps to Strengthen Fiscal Federalism

1. Enhance Vertical Transfers: Increase states’ share above 41% and cap cesses/surcharges to restore predictability.

2. Phased Transition: Introduce a Floor Guarantee to prevent absolute declines below 15th FC levels.

3. Balance Equity with Efficiency: Retain progressive criteria (income distance, forest cover) while rewarding social and revenue performance.

4. Empower Local Bodies: Strengthen PRIs/ULBs through matching grants and real taxation powers.

5. Strengthen Federal Dialogue: Reactivate Inter-State Council (Article 263) meetings for resolving fiscal disputes.

Conclusion

The 16th Finance Commission navigated a complex federal landscape by retaining the 41% vertical share and introducing performance incentives.
However, failure to curb cesses, discontinuation of revenue deficit grants, and tilt toward richer states have raised concerns over fiscal equity.
Balancing performance-based incentives with equalisation and state autonomy remains the core challenge for India’s fiscal federalism.