08 March 2024

DAILY CURRENT AFFAIRS ANALYSIS

1 – Panchayati Raj Institutions’ Financial Situation: GS II – Government Policies and Interventions

Context:

• The Reserve Bank of India (RBI) has produced a paper titled ‘Finances of Panchayati Raj Institutions’ for the fiscal year 2022–2023, which provides insight into the financial dynamics of Panchayati Raj Institutions (PRIs) in India.

Which aspects of the report stand out the most?

Composition of Revenue:

• Just 1% of panchayat revenue comes from taxes.
• The majority of their income is derived from grants given by the States and the Centre.
• According to data, state and central government grants account for 15% of total revenue and provide for 80% of the total.

Revenue Information Statistics:

• Panchayats reported a total revenue of Rs 35,354 crore for the fiscal year 2022–2023.
• Their own tax revenue amounted to just Rs 737 crore. Taxes on professions and trades, land revenue, stamps and registration fees, property taxes, and service taxes are some of the ways that panchayats might raise funds.
• A total of Rs 1,494 crore was received in non-tax revenue, mostly from interest payments and Panchayati Raj initiatives.
• Notably, the Central government gave panchayats grants of Rs 24,699 crore, while state governments gave them grants of Rs 8,148 crore.

Income for Every Panchayat:

• Only Rs 21,000 in personal tax revenue and Rs 73,000 in non-tax revenue were earned by each panchayat on average.
• On the other hand, the State government provided more than Rs 3.25 lakh each panchayat, while the Central government gave out almost Rs 17 lakh per panchayat.

State Revenue Distribution and Differences Across States:

• The portion of each State’s own money that panchayats receive is still quite little.
• For instance, panchayat revenue receipts make up just 0.1% of the state’s total revenue in Andhra Pradesh but 2.5% in Uttar Pradesh—the highest percentage among all the states.
• The average money earned each panchayat varies greatly between states.
• With average income per panchayat of more than Rs 60 lakh and Rs 57 lakh, respectively, Kerala and West Bengal are in the forefront.
• In the states of Assam, Bihar, Karnataka, Odisha, Sikkim, and Tamil Nadu, the revenue exceeded Rs 30 lakh per panchayat.
• With less than Rs 6 lakh in average revenue per panchayat, states like Andhra Pradesh, Haryana, Mizoram, Punjab, and Uttarakhand have much lower revenue levels.

RBI’s recommendations:

• The RBI recommends encouraging more decentralisation and giving local authorities more authority. It promotes actions to improve Panchayati Raj’s financial sustainability and autonomy.
• The study underlined that by implementing open budgeting, financial restraint, community engagement in development priorities, employee training, and stringent monitoring and assessment, PRIs may improve resource use.
• It also emphasised how important it is to increase public knowledge of PRI functions and promote citizen involvement in order to have successful local administration.

Why Do Panchayats Have Problems with Funding?

• The PRI’s ability to impose taxes and cesses is restricted. The State Government does not provide them with much money. Moreover, they typically hesitate to raise the required funds out of concern for losing the public’s favour.
• PRIs might not have the ability or know-how to bring in money on their own from different sources like fees, tolls, rent, etc.
• They also encounter difficulties in making good and efficient use of the monies because of inadequate planning, oversight, and accountability systems.
• Panchayats are unable to independently mobilise resources when higher tiers of government retain too much financial authority and function devolution. Restricted fiscal decentralisation is detrimental to community empowerment and local governance.

What Effects Does the Financial Dependency of Panchayats Have?

• Reliance on outside money invites intervention from higher government levels.
• Panchayats are forced to employ private monies due to State governments’ delayed fund releases.
• A few areas have also complained that important programmes are not being funded, which has an effect on how well they operate.
• According to a March 2023 report by the Standing Committee on Rural Development and Panchayati Raj, 19 of the 34 State/UTs were not provided with any funding for the FY23 Rashtriya Gramme Swaraj Abhiyan initiative.

 

• A Panchayati Raj Institution: What Is It?

 

• The Panchayati Raj Institutions (PRIs) were granted constitutional status by the 73rd Constitutional Amendment Act, 1992. This act also established a system of elections, a uniform structure consisting of three tiers of PRIs, and the reservation of seats for women, Scheduled Caste, and Scheduled Tribes. Additionally, the act devolved funds, functions, and functionaries to the PRIs.
• Panchayats function at three different levels: district level (zila parishads), block council (panchayat samithis), and village level (gramme sabhas).
• The Indian Constitution’s Article 243G grants state legislatures the ability to grant Panchayats the necessary powers to operate as institutions of self-government.
• Provisions have been created under Article 243H, Article 280(3)(bb), and Article 243-I of the Constitution for the financial empowerment of Panchayats.
• State legislatures have the authority to provide Panchayats the authority to impose, collect, and allocate taxes, charges, tolls, and fees under Article 243H. In accordance with restrictions and limitations, it also permits them to transfer these taxes, charges, tolls, and fees to Panchayats.
• According to Article 280(3)(bb), the Central Finance Commission is responsible for recommending to the President, based on recommendations from the State Finance Commission, the steps that should be taken to increase the State’s Consolidated Fund and augment the resources of the Panchayats within the State.
• The Governor shall establish state financial commissions every five years in accordance with Article 243-I. These commissions have the responsibility of examining panchayat financial standing and recommending the governor on the following:
• principles that govern how taxes, tariffs, tolls, and other fees are allocated among the several tiers of panchayats and the state, as well as their respective percentages.
• actions to strengthen the financial standing of panchayats.
• any further financial matters that the governor refers.
• Investigating all issues pertaining to the Panchayati Raj and its Institutions is the Ministry of Panchayati Raj. The creation date was May 2004.

 

Source à The Hindu

 

2 – Credit System to Be Introduced by CBSE:

 

GS II

 

Education related issues

 

• Context:

 

• As part of its intention to adopt creditization, as advocated by the National Education Policy (NEP), 2020, the Central Board of Secondary Education (CBSE) is preparing major changes to the academic structure of Classes 9, 10, 11, and 12.

 

• By establishing a cohesive framework that closes the gap between general education and vocational education, this action seeks to completely transform the educational system.

 

• The Credit System: What Is It?

 

• About: In education, the credit system is a way to measure and evaluate how much knowledge a student has learned.
• It gives various courses or learning activities numerical values, or credits, according to the time and effort needed to finish them and show that the learner has mastered the material.
• Objectives of Creditization in Line with NEP 2020: NEP 2020 proposes that Creditization establish academic equivalency between general and vocational education, hence enabling mobility between the two education systems.
• The National Credit Framework (NCrF), developed in 2022 by the University Grants Commission, the higher education authority, was created to put this into practice.
• A single credit framework known as NCrF is used to integrate training and skill development into higher education and the classroom.
• A student’s credits will be digitally saved in the Academic Bank of Credits and available via a Digilocker account that is connected to it.
• In 2022, the CBSE established a subcommittee to consider changes to the current academic framework to bring it into compliance with NCrF, with the aim of implementing this in its affiliated schools.

 

• What Amendments Was the CBSE Subcommittee Looking to Make?

 

• Notional Learning: 1,200 notional learning hours, or 40 credits, would be earned by students over the course of an academic year.
• The amount of time that an average student needs to complete a given task is referred to as hypothetical learning.
• In order to guarantee that students receive 1,200 learning hours annually and pass, subjects are allotted set hours.
• Curriculum Structure for Classes 9 and 10: Students must complete 10 topics in these classes, which consist of three languages and seven core disciplines.
• Hindi, Sanskrit, or English are examples of Indian languages that must make up at least two of the three languages.
• The social sciences, science, math and computational thinking, art education, physical education and well-being, vocational education and environmental education are the seven core courses.
• Curriculum Structure for Classes 11 and 12: Students in Classes 11 and 12 are expected to study six subjects, consisting of two languages and four core subjects and an elective.
• There must be at least one Indian language.

 

• Micro-credentials: What Are They?

 

• About: Micro-credentials are short learning exercises that have verified learning objectives and are available in physical, online, or hybrid formats at three different levels: basic, intermediate, and advanced.
• They serve lifelong learners who might not pursue official degree programmes, such as working professionals.
• Providers and Usage: Micro-credentials are provided by a number of organisations, including edX, Coursera, and Atingi. They are being offered by numerous universities throughout the world, and it is anticipated that more institutions will follow suit.
• Comparison with Formal Degrees: Undergraduate degrees, which are considered macro-credentials and take several years of study, are not the same as micro-credentials.
• Micro-credentials give credit for achieving certain competencies, whereas conventional degrees employ “credits” based on time spent in lectures, labs, etc.
• Potential: The need for micro-credentials is rising in India as a result of the NEP 2020’s emphasis on skill-based education and companies’ need to hire qualified workers.
• Higher education institutions (HEIs) in India ought to think about incorporating them into their curricula and harmonising them with the current academic frameworks.

 

• What Else Are the Key Elements of NEP 2020?

 

• About: “India becoming a global knowledge superpower” is the stated goal of NEP 2020. This is only the third significant revision to India’s educational framework since independence.
• The two previous education laws were introduced in 1986 and 1968.

 

• Principal Elements:

 

• Ensuring universal access to education from pre-primary to Grade 12 is the goal of ensuring universal quality education.
• For kids ages three to six, high-quality early childhood care and education are prioritised.
• new pedagogical and curriculum framework: presents the 5+3+3+4 new framework.
• encourages the blending of academic and professional courses, extracurricular and curricular activities, and the arts and sciences.
• Establishes the National Assessment Centre, PARAKH, as part of assessment reforms and equity.
• It asks for Special Education Zones for underprivileged areas and populations, as well as a special fund for gender inclusion.
• Establishes the National Educational Technology Forum (NETF) to facilitate the integration of technology in education.
• Financial Coordination and Investment: Seek to raise public education spending to 6% of GDP.
• bolsters the Central Advisory Board of Education in order to improve attention on quality and cooperation.
• ‘Light but Tight’ regulation is also supported by it.
• Targets for the Gross Enrollment Ratio (GER): By 2030, the GER is expected to reach 100% in preschool through secondary education.
• is to achieve 50% GER in higher education—including vocational education—by 2035.
• advocates for a multifaceted, all-encompassing education with several access and exit points.

 

Source à The Hindu

 

3 – India’s Aspiring Advancement in Deep Tech:

 

GS II

 

Science and Technology related issues

 

• Context:

 

• The Finance Minister announced a Rs 1 lakh crore fund during her Interim Budget address with the goal of providing long-term, low-cost, or interest-free financing for R&D projects.
• Additionally, she promised to launch a new programme to improve deep-tech defence capabilities, implying that later this year, a more comprehensive policy to assist deep-tech businesses in a variety of industries will be unveiled.

 

• Deep Tech: What Is It?

 

• A class of startup companies known as “deep tech” or “deep technology” creates new products based on concrete engineering innovation or scientific advancements.
• Artificial Intelligence, advanced materials, blockchain, biotechnology, robotics, drones, photonics, and quantum computing are just a few examples of the deep tech industries that are rapidly transitioning from basic research to commercial applications.

 

• Features of Deep Technology:

 

• Impact: The deep tech discoveries create new markets or upend established ones since they are so radical. Deep tech innovations frequently transform lives, economies, and society.
• Time & Scale: Deep technology development takes far longer than shallow technology development (such as the development of websites and mobile apps) to mature and become marketable.
• Capital: For research and development, prototyping, hypothesis validation, and technological development, deep tech frequently needs a large amount of early-stage capital.

 

• Why Is Deep Tech Important?

 

• Overcoming Global Challenges: Deep tech has the potential to be extremely important in solving many of the world’s most pressing problems, such as hunger, epidemics, climate change, energy access, mobility, and cyber security. These developments present encouraging answers to urgent environmental and societal problems.
• Scientific Progress: Advanced technology and science, including biotechnology, artificial intelligence, quantum computing, and other areas, are referred to as “deep tech.” Developments in these fields push the limits of human knowledge and comprehension, producing innovations that are advantageous to society as a whole.
• Economic Growth and Competitiveness: By promoting innovation, producing high-value jobs, and encouraging entrepreneurship, investments in deep tech promote economic growth. Deep tech innovators are able to compete more successfully in the global economy and draw in talent, funding, and cooperative prospects.
• Disaster Management: The preparation and reaction to disasters are aided by deep tech solutions. Predictive models driven by artificial intelligence, for instance, can more accurately predict natural disasters like earthquakes and hurricanes, allowing authorities to more effectively deploy resources and evacuate people that are at risk.
• Counterterrorism: The development of sophisticated surveillance systems, biometric identification methods, and predictive analytics tools is made possible by deep tech and is crucial to the fight against terrorism.
• These tools assist in dismantling terrorist networks, identifying and following those engaged in extremist activities, and averting such attacks.

 

• How do deep tech startups in India fare right now?

 

• India has a growing technology culture and a sizable pool of highly skilled scientists and engineers. This establishes the nation as a leader in the creation and use of deep-tech solutions.
• By the end of 2021, India had more than 3,000 deep-tech start-ups experimenting with cutting-edge technologies including robotics, artificial intelligence, machine learning (ML), the Internet of Things, big data, quantum computing, etc.
• Deep-tech start-ups in India raised USD 2.7 billion in venture capital in 2021, and they currently make up over 12% of the nation’s whole startup ecosystem, according to NASSCOM.
• India’s deep tech ecosystem has expanded by 53% over the past ten years, matching the growth of developed nations like the US, China, Israel, and Europe.
• Of India’s deep-tech start-ups, 25–30% are based in Bengaluru, with Delhi-NCR (15–20%) and Mumbai (10–12%) following.

 

• India has the capacity to make a major contribution to the development of deep tech by encouraging early adoption, the sharing of intellectual property, the creation of local expertise, and independence.
• This may result in technology exports, entrepreneurship, the growth of a skilled labour force, and spin-off technologies.
• Deep-tech startups are becoming more noticeable in a variety of industries, from sustainable energy and climate action to cold chain management and drone delivery.

 

• How is the government creating a deep tech startup ecosystem?

 

• Mobility, battery storage, and quantum technology are just a few of the disruptive technological fields in which the government has been aggressively supporting research and innovation.
• Examples of such initiatives are the National Quantum Mission and the National Mission on Transformative Mobility and Battery Storage.

 

• Creation of Policy Frameworks:

 

• A set of regulations designed to create a supportive atmosphere for businesses engaged in deep technology was completed in 2023. Currently seeking government approval, the National Deep Tech Startup Policy (NDTSP) is being called.
• The Office of the Principal Scientific Adviser and the Department for Promotion of Industry and Internal Trade worked together to create this policy.
• The Policy’s Goals: The NDTSP is made to help technology startups with the unique obstacles they face and to give them a level playing field on which to compete and work together internationally.
• Important Focus issues: To meet its goals, the NDTSP identifies a number of important issues that need to be addressed, including:
• Long-Term Funding Opportunities: Establishing systems to provide deep tech firms with ongoing funding to help them succeed.
• The Intellectual Property Rights Regime aims to protect intellectual property by creating a framework that is both robust and simple. This will encourage innovation and confidence among businesses.
• Tax Incentives: Offering tax breaks to encourage deep tech companies to invest in research and development.
• Establishing laws that guarantee safety and compliance while fostering the expansion of deep tech companies is known as creating a conducive regulatory framework.
• Establishing industry standards and certifications is a crucial step towards guaranteeing the quality and dependability of deep tech goods and services.
• Talent nurturing is the process of making investments in the training of highly qualified individuals and cultivating a talent pool that supports deep tech innovation.
• Industry-Academia Collaboration: Encouraging information sharing and cooperation by establishing connections between research centres, industry, and educational institutions.
• The NDTSP seeks to establish a strong and long-lasting ecosystem that stimulates innovation and expansion in the deep tech startup scene by tackling four important areas.
• Implementation of the National Research Foundation (NRF): The National Research Foundation (NRF) was founded by the government with the goal of fostering collaborations amongst various industries to enhance research.
• It is projected that donations from the private sector will provide for approximately 70% of the NRF’s budget, which comes to Rs. 50,000 crore over five years.

 

• What difficulties do deep tech projects face?

 

• High Risk and Long-Term Return on Investment: Deep tech initiatives often take years or even decades to reach the market and start making money. They also frequently demand a large upfront investment in research and development. Because of this, traditional investors find them less appealing because they choose shorter-term, lower-risk projects.
• Scarcity of Specialised Talent: Highly qualified and experienced researchers, engineers, and entrepreneurs are needed for deep tech ventures, yet they are in great demand and short supply. Deep tech firms may find it challenging and expensive to find and retain such personnel, particularly in emerging countries.
• Lack of Market Readiness: Adoption and scalability of deep tech projects may be restricted by ethical, social, governmental, or environmental hurdles. Additionally, as their solutions can be complicated and foreign, they might need to persuade stakeholders and potential consumers of the worth and viability of their offerings.
• India’s Research Funding Shortage: In India, research funding is inadequate even with a 2% GDP allocation target. Although R&D investment has increased in absolute terms, its share of GDP has decreased and is at only 0.65%, much less than the 1.8% global average.
• This lack of funding makes India less competitive with scientifically developed countries and indicates a worrying pattern of declining funding for important research initiatives.
• Scepticism in the Scientific Community: The scientific community continues to be sceptical in spite of government attempts. Many question the effectiveness of supporting research only through the private sector. They contend that hopes for private investment may be unduly high and that government funding is still essential.
• Financial Inadequacy: The government emphasises innovation, yet the budget increases for important departments are small. Some agencies experience funding cuts, such as the Department of Space and the Council for Scientific and Industrial Research (CSIR).
• Bureaucratic Obstacles: In the event that funds are available, their effective disbursement is frequently hampered by delays and bureaucratic obstacles. Research development is hampered by complex administrative procedures that lead to funding suspensions for projects.

 

• The Way Ahead:

 

• Boost the Function of Public-Private Partnerships in Research Funding: New government programmes point to a move in the direction of encouraging private sector partnerships as a means of supporting R&D spending. Acknowledging the constraints of relying solely on public support, measures are being taken to improve industry, research, and educational body collaboration.
• Assure Best Use of Resources: The Rs 1 lakh crore corpus is meant to serve as a seed investment for private sector and startup companies involved in R&D.
• But care must be taken to make sure the money is used appropriately and released on time—funds must also be exhausted.
• Enhancing intellectual property rights: To safeguard their discoveries and obtain a competitive advantage, deep tech businesses depend on their intellectual property (IP). The government can help deep tech businesses with IP-related issues by raising awareness of the issue and streamlining the registration and enforcement processes.
• Academic institutions and the corporate sector may both support and incentivize deep tech startups’ IP generation and commercialization.
• Developing human capital and a talent pipeline: Academic institutions, industry, and government may cooperate to raise the standard and volume of deep tech training and education while also expanding the chances for deep tech talent to interact, cooperate, and share knowledge.
• The government might also make it easier for foreign talent with profound tech to migrate to India and work there by offering them greater privileges and incentives.

 

• Along with efforts to strengthen deep-tech capabilities, the government’s announcement of a Rs 1 lakh crore fund for R&D marks a turning point in India’s innovation journey. But there are still obstacles along the way that require close attention.

 

Source à The Hindu

 

4 – Himalayas of Hindu Kush:

 

GS I

 

Geography related issues

 

• Context:

 

• A warning has been issued by the International Centre for Integrated Mountain Development (ICIMOD), which is urging “bold action” and “urgent finance” to stop the natural collapse of High Mountain Asia.

 

• One of the planet’s most biodiverse areas, the Hindu Kush Himalaya (HKH), was described as a “biosphere on the brink.”

 

• What is the Himalayan Hindu Kush?

 

• One of the greatest expanses of ice and snow outside of the Arctic and Antarctica, the Himalayan Mountains of Himalaya (HKH) stretches over 3500 kilometres and passes across eight countries: Afghanistan, Bangladesh, Bhutan, China, India, Nepal, Myanmar, and Pakistan.
• This region is home to 4 out of the 36 global hotspots for biodiversity.
• The Himalaya, Indo-Burma, Southwest Chinese Mountains, and Central Asian Mountains
• Asia’s “Water Tower”: This structure goes by this name. From HKH, at least 12 rivers spread out across the Asian continent in all directions:
• The Arabian Sea and the Bay of Bengal are reached via the Indus, Ganga, and Brahmaputra.
• Syr Darya and Amu Darya in the direction of the deceased Aral Sea
• Tarim heading towards Taklamakan
• The Yellow River heading towards the Bohai Gulf
• Yangtze River heading towards the East China Sea
• The South China Sea and the Mekong River
• The Irrawaddy, Salween, and Chindwin flowing towards the Andaman Sea

 

• Increasing Climate Risk: It is estimated that the rate of warming in the HKH region is about twice as high as the average rate seen in the Northern Hemisphere.
• Degradation of the Ecosystem: According to reports, 70–80% of the area’s native habitat has already been gone, and by 2100, that percentage might rise to 80–87%.
• Human Vulnerability: The HKH region is home to about 241 million people, of which a sizable percentage suffer from malnutrition and food insecurity.

 

Source à The Hindu