REGULATORY STRUCTURE AND GOVERNANCE REFORMS
The Comptroller and Auditor General (CAG) of India is a constitutional authority responsible for auditing and overseeing the financial affairs of the Government of India, as well as state governments and public-sector organizations. The CAG is a crucial institution in India's system of checks and balances, ensuring transparency, accountability, and fiscal discipline in the management of public funds.
Here are key aspects of the Comptroller and Auditor General (CAG) of India:
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Constitutional Status: The CAG is a constitutional authority as per Article 148 to 151 of the Indian Constitution. Article 148 provides for the appointment and conditions of service of the CAG.
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Appointment: The CAG is appointed by the President of India. The appointment is made on the advice of the Prime Minister, who consults with the Speaker of the Lok Sabha (the lower house of India's Parliament) and the Chairman of the Rajya Sabha (the upper house of India's Parliament).
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Independence: The CAG is expected to operate independently and autonomously. Once appointed, the CAG can only be removed from office through a complex impeachment process, ensuring protection from political interference.
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Audit Functions: The primary role of the CAG is to audit the accounts of the Union government and state governments. This includes the examination of financial statements, revenue collection, expenditure, and compliance with laws and regulations.
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Types of Audits: The CAG conducts several types of audits, including financial audits, compliance audits, performance audits, and special audits. Performance audits assess the effectiveness of government programs and policies.
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Reports to Parliament: The findings of the CAG are presented to Parliament in the form of audit reports. These reports are submitted to the President, who then lays them before Parliament. The reports are examined by the Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU).
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Role in Accountability: The CAG plays a pivotal role in holding the government accountable for its financial management. Through its audits and reports, it highlights financial irregularities, inefficiencies, and areas where corrective action is needed.
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Value Addition: CAG reports often lead to discussions and debates in Parliament, leading to corrective measures, policy changes, and improved governance. They contribute to enhancing transparency and accountability in government operations.
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State Audits: Apart from auditing the Union government's accounts, the CAG also oversees financial matters in state governments and Union Territories, adding to its comprehensive role in fiscal accountability.
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International Role: The CAG of India is also a member of the International Organization of Supreme Audit Institutions (INTOSAI), which facilitates cooperation and exchange of knowledge among audit institutions worldwide
The Central Bureau of Investigation (CBI) is India's premier federal investigative agency. It operates under the jurisdiction of the Ministry of Personnel, Public Grievances, and Pensions, Government of India. The CBI is responsible for investigating a wide range of cases, including those related to corruption, economic offenses, special crimes, and cases with national and international ramifications. Here are key aspects of the Central Bureau of Investigation (CBI):
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Establishment: The CBI was established on April 1, 1963, by a resolution of the Ministry of Home Affairs. It was initially set up to investigate cases related to bribery and corruption involving central government employees.
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Legal Basis: The legal framework for the CBI's functioning is primarily provided by the Delhi Special Police Establishment Act, 1946. Under this act, the CBI can investigate cases in the Union Territories and for states that consent to its jurisdiction.
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Jurisdiction: The CBI primarily has jurisdiction over cases that involve central government employees, employees of public sector undertakings, and cases referred to it by the central government. It can also investigate cases in states with the consent of the concerned state government or orders from the courts.
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Functional Divisions: The CBI is divided into various functional divisions, including the Anti-Corruption Division, Economic Offenses Division, Special Crimes Division, and Special Units for specific types of cases, such as the Special Investigation Team (SIT) for high-profile cases.
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Autonomy: The autonomy of the CBI has been a subject of debate over the years. While it is meant to be an autonomous investigative agency, there have been instances of political interference in its functioning, which has raised concerns about its independence.
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Leadership: The CBI is headed by a Director who is typically a senior Indian Police Service (IPS) officer. The Director is appointed by the Appointments Committee of the Cabinet (ACC), which consists of the Prime Minister, the Chief Justice of India, and the Leader of the Opposition in the Lok Sabha.
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Role: The CBI's primary role is to investigate and solve complex cases, particularly those involving corruption, economic offenses, fraud, organized crime, and cases with national and international dimensions. It also assists state law enforcement agencies when requested.
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International Cooperation: The CBI collaborates with law enforcement agencies and Interpol to investigate transnational crimes and pursue fugitives abroad. It plays a crucial role in extraditing individuals involved in major cases.
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Challenges: The CBI has faced challenges related to its autonomy, credibility, and the need to maintain transparency in its investigations. Controversies and political pressures have at times affected its image.
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Oversight: The functioning of the CBI is subject to oversight by the Central Vigilance Commission (CVC), which reviews its investigative processes and recommends corrective actions if needed.
The Central Vigilance Commission (CVC) is an independent and apex anti-corruption institution in India. It was established to address issues of corruption, promote transparency, and ensure integrity in government functioning. The CVC operates under the jurisdiction of the Government of India and plays a crucial role in preventing and investigating corruption within various government organizations. Here are key aspects of the Central Vigilance Commission (CVC):
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Establishment: The Central Vigilance Commission was established on February 11, 1964, through a resolution of the Government of India. It was later given statutory status with the enactment of the Central Vigilance Commission Act, 2003.
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Legal Basis: The CVC derives its powers and functions from the Central Vigilance Commission Act, 2003. This act provides a legal framework for the CVC's functioning, powers, and responsibilities.
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Mandate: The primary mandate of the CVC is to oversee and promote integrity, transparency, and accountability in the functioning of central government organizations, public sector enterprises, and public servants.
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Independence: The CVC is intended to function independently and autonomously. The Central Vigilance Commissioner and the Vigilance Commissioners are appointed by the President of India and can only be removed through a process similar to that of a Supreme Court judge, ensuring their independence.
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Structure: The CVC consists of a Central Vigilance Commissioner and up to two Vigilance Commissioners. Together, they form a collegium to make decisions regarding investigations and vigilance matters.
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Functions: The key functions of the CVC include:
- Advising government organizations on policies, procedures, and systems to prevent corruption.
- Conducting inquiries and investigations into allegations of corruption and misuse of office.
- Reviewing vigilance cases and recommending appropriate action.
- Monitoring and overseeing vigilance activities in government departments.
- Assisting law enforcement agencies in corruption-related cases.
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Oversight: The CVC has oversight of the functioning of the Central Bureau of Investigation (CBI) and exercises superintendence over the CBI's anti-corruption investigations. It can also recommend transfers or disciplinary actions against CBI officers.
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Whistleblower Protection: The CVC administers the Public Interest Disclosure and Protection of Informers (Whistleblower Protection) Resolution, which provides protection to whistleblowers who report cases of corruption or misconduct.
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Preventive Vigilance: The CVC promotes preventive vigilance measures within government organizations. It conducts training programs and disseminates best practices to prevent corruption and misconduct.
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Reports and Recommendations: The CVC submits an annual report to the President of India, which is then presented to Parliament. The CVC's recommendations and findings often lead to disciplinary actions, investigations, and policy changes within government departments.
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Challenges: Despite its important role, the CVC has faced challenges related to delays in investigations, the need for more resources, and ensuring its decisions are effectively implemented.
The National Human Rights Commission (NHRC) is an autonomous and independent statutory body in India established to protect and promote human rights. It was established in accordance with the Protection of Human Rights Act, 1993. The NHRC plays a crucial role in safeguarding human rights and addressing violations of these rights in the country. Here are key aspects of the National Human Rights Commission (NHRC):
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Establishment: The NHRC was set up on October 12, 1993, following the enactment of the Protection of Human Rights Act, 1993. It was established in response to India's obligations under various international human rights conventions.
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Mandate: The primary mandate of the NHRC is to promote and protect human rights in India. It is responsible for addressing violations of civil, political, social, and economic rights, as well as violations by both state and non-state actors.
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Independence: The NHRC is designed to function independently and autonomously. The Chairperson and members of the NHRC are appointed by the President of India. They have security of tenure and can only be removed through a process similar to that of a Supreme Court judge, ensuring their independence.
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Structure: The NHRC is composed of a Chairperson and members, including retired judges of the Supreme Court and High Courts, civil servants, and individuals with expertise in human rights. The composition is intended to be diverse and representative.
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Functions: The NHRC performs a wide range of functions, including:
- Investigating complaints of human rights violations, either initiated by the Commission or filed by individuals.
- Conducting inquiries, fact-finding missions, and on-the-spot investigations.
- Recommending compensation and relief to victims of human rights violations.
- Reviewing and monitoring the implementation of government policies and programs related to human rights.
- Promoting human rights education and awareness.
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Advisory Role: The NHRC provides advice and recommendations to the government on policy matters related to human rights, legal reforms, and other issues aimed at promoting and protecting human rights.
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Reports and Recommendations: The NHRC submits annual and special reports to the President of India and Parliament, highlighting its findings, recommendations, and actions taken. These reports often lead to policy changes and improvements in human rights protection.
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Public Awareness: The NHRC conducts awareness programs, seminars, and workshops to promote human rights education and sensitize government officials, law enforcement agencies, and the public about human rights issues.
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Challenges: Despite its significant role, the NHRC has faced challenges related to the need for more resources, timely action on recommendations, and ensuring the effective implementation of its decisions.
1.2 Lokpal and rise of Ombudsman era
The Lokpal and the rise of the Ombudsman era are significant developments in the realm of government accountability and anti-corruption measures, particularly in India and other countries around the world. Let's explore these concepts in more detail:
Lokpal:
- The term "Lokpal" is derived from the Sanskrit words "lok" (people) and "pal" (protector or caretaker). It refers to an anti-corruption ombudsman institution established to investigate and address complaints of corruption and misconduct by public officials, including politicians and bureaucrats.
- The idea of a Lokpal in India was first proposed by activist Anna Hazare and his team during their anti-corruption movement in 2011. They demanded the creation of a powerful and independent anti-corruption body to tackle the pervasive problem of corruption in the Indian government and public administration.
- The Lokpal Act was passed by the Indian Parliament in 2013, and the Lokpal was finally established in 2019. The Lokpal is an independent body with the authority to investigate corruption cases against high-level government officials, including the Prime Minister, Ministers, Members of Parliament, and senior bureaucrats.
- The Lokpal is expected to provide a mechanism for citizens to file complaints against public officials and to conduct investigations into these complaints. It aims to enhance transparency and accountability in government and reduce corruption.
Ombudsman Era:
- The term "ombudsman" has its origins in Sweden and is derived from the Swedish word "ombudsman," which means "representative" or "agent." An ombudsman is an independent authority or official responsible for investigating and addressing complaints and grievances from the public against government agencies or officials.
- Ombudsman institutions have been established in many countries worldwide to ensure government accountability and protect the rights of citizens. These institutions can have different names depending on the country, such as "Ombudsman," "Public Protector," or "Citizen's Advocate."
- The ombudsman's role typically includes investigating complaints related to administrative malpractice, abuse of power, violation of rights, and corruption within the government. They can recommend corrective actions, advocate for transparency and fairness, and promote good governance.
- Ombudsman institutions are known for their independence from the government they oversee, which is crucial for their effectiveness in holding public officials accountable.
The Lokpal in India is a specific instance of the broader global trend of establishing ombudsman institutions. These entities play a vital role in promoting transparency, accountability, and integrity within governments and public administrations, ultimately helping to curb corruption and protect citizens' rights. The rise of the Ombudsman era reflects a global commitment to strengthening mechanisms for government oversight and accountability.
1.3 State and operational effectiveness of Local governments in India
The state and operational effectiveness of local governments in India can vary significantly across different states and regions due to a complex interplay of historical, political, administrative, and socioeconomic factors. Local government bodies in India are primarily responsible for administering various aspects of governance at the grassroots level. They play a crucial role in implementing government policies, delivering public services, and promoting local development.
Here are some key points regarding the state and operational effectiveness of local governments in India:
- Varied State Laws and Structures: India is a federal country with a division of powers between the central government and states. As a result, the structure, powers, and functions of local governments can differ from one state to another. Some states have well-defined and empowered local government structures, while others may have weaker systems.
- Three-Tier System: India follows a three-tier system of local government, consisting of Panchayats at the village, intermediate, and district levels (Gram Panchayats, Panchayat Samitis, and Zila Parishads) in rural areas, and Municipalities and Municipal Corporations in urban areas. Each tier has its own set of responsibilities and functions.
- Devolution of Powers and Finances: The effectiveness of local governments often depends on the extent to which powers, responsibilities, and financial resources are devolved to them. The 73rd and 74th Constitutional Amendments in 1992 mandated the devolution of certain powers to Panchayats and Municipalities. However, the actual devolution varies by state, and some states have been more proactive in empowering local bodies than others.
- Operational Challenges: Local governments in India face various operational challenges, including inadequate funding, lack of skilled personnel, bureaucratic hurdles, and political interference. These challenges can hinder their ability to deliver essential services effectively.
- Participation and Representation: Effective local governance also depends on the active participation of citizens and the representation of marginalized communities. In some cases, there may be issues related to the inclusivity and representation of women, Scheduled Castes, Scheduled Tribes, and other disadvantaged groups in local bodies.
- Capacity Building: Building the capacity of local government officials and representatives is crucial for improving their operational effectiveness. Training programs, workshops, and knowledge sharing initiatives can enhance their ability to plan and implement development projects.
- Technology and Transparency: The adoption of technology and digital platforms can enhance the transparency and efficiency of local government operations. E-governance initiatives and online platforms for citizen engagement can facilitate better service delivery and governance.
- Accountability and Oversight: Mechanisms for accountability and oversight are essential to prevent corruption and ensure that local governments are functioning effectively. This includes audits, public hearings, and vigilance committees.
- Best Practices: Some states in India have been recognized for their successful models of local governance. For example, Kerala is often cited for its effective decentralized planning and local government institutions.
The state and operational effectiveness of local governments in India is a dynamic and evolving process. While there have been significant reforms to empower local bodies, there is still a need for consistent efforts to strengthen their capacity, increase transparency, and ensure that they can effectively serve the needs of their communities. The effectiveness of local governments can vary from state to state, and ongoing reforms and improvements are essential for inclusive and sustainable local development.
1.4 Corporate Governance in India- Why is it so critical
Corporate governance in India, like in any other country, is critically important because it serves as the foundation for the efficient and ethical functioning of businesses and corporations. It plays a pivotal role in ensuring that companies are managed and operated in a manner that safeguards the interests of various stakeholders, including shareholders, employees, customers, creditors, and the broader society. Here are several reasons why corporate governance is so critical in India:
- Protection of Shareholder Rights: Corporate governance mechanisms ensure that shareholders, who are the owners of the company, have their rights protected. This includes the right to receive timely and accurate financial information, the right to vote on important matters, and the right to hold the board and management accountable for their actions.
- Attracting Investment: Strong corporate governance practices instill confidence in domestic and foreign investors. When investors believe that their investments will be managed transparently and with integrity, they are more likely to invest in Indian companies, which can boost economic growth and development.
- Financial Stability: Well-governed companies are less prone to financial irregularities, fraud, and mismanagement. This contributes to financial stability within the organization and reduces the risk of financial crises that can have broader economic repercussions.
- Ethical Business Practices: Corporate governance promotes ethical behavior within companies. It discourages corrupt practices, bribery, and unethical conduct, which is essential for maintaining public trust and the reputation of Indian businesses both domestically and internationally.
- Long-Term Sustainability: Good corporate governance encourages a focus on long-term sustainability rather than short-term gains. Companies that prioritize sustainability are more likely to thrive in the long run, benefiting not only their shareholders but also the broader economy and society.
- Improving Board Effectiveness: Corporate governance standards emphasize the importance of having an independent and diverse board of directors. This can lead to better decision-making, risk management, and oversight of company operations.
- Access to Capital Markets: Companies with strong corporate governance practices are often more attractive to investors, making it easier for them to raise capital through equity or debt offerings in the capital markets.
- Legal and Regulatory Compliance: Compliance with corporate governance regulations and guidelines helps companies avoid legal and regulatory penalties, protecting them from financial losses and reputational damage.
- Enhancing Transparency: Transparency is a fundamental aspect of corporate governance. When companies disclose information about their financial performance, operations, and risks, it allows stakeholders to make informed decisions and reduces the information asymmetry between insiders and outsiders.
- Social Responsibility: Companies with strong corporate governance practices are more likely to engage in social responsibility initiatives, contributing to the betterment of society by addressing environmental, social, and governance (ESG) issues.
In India, the importance of corporate governance has been recognized through various regulatory measures and guidelines, such as the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) listing regulations. These regulations aim to improve transparency, accountability, and the overall governance framework for companies operating in India.
Corporate governance in India is critical for fostering trust, attracting investment, ensuring ethical conduct, and promoting the long-term sustainability of businesses. It is not only essential for the success of individual companies but also for the overall health and growth of the Indian economy.
2. Police Reforms in India
Police reforms in India have been a subject of discussion and debate for many years due to various issues related to inefficiency, corruption, and human rights violations within the police force. While some progress has been made, comprehensive police reforms remain a challenging and ongoing process.
Here are some key aspects and developments related to police reforms in India:
Historical Background:
Key Areas of Reform:
- Police Accountability: One of the central aspects of police reforms is to establish mechanisms for holding police officers accountable for their actions. This includes setting up independent oversight bodies to investigate complaints of misconduct and abuse of power.
- Modernization and Training: Police forces in India often face challenges due to outdated infrastructure, inadequate training, and a lack of modern technology. Reforms aim to modernize police equipment and improve training programs to enhance the efficiency and effectiveness of the police force.
- Community Policing: Building trust and collaboration between the police and local communities is essential. Initiatives promoting community policing and community engagement are part of the reform agenda.
- Transparency and Accountability: Transparency in police operations, especially in areas like recruitment and promotions, is crucial to minimize corruption and nepotism. Transparency in the use of force and financial operations is also emphasized.
- Police Recruitment and Promotion: Reforms seek to establish a merit-based recruitment and promotion process to ensure that capable and honest officers rise through the ranks.
State-Level Initiatives:
- Police reforms are implemented at the state level in India. Some states have taken more proactive steps than others to initiate changes in their police forces.
- For example, the state of Kerala has introduced community policing initiatives, while states like Rajasthan and Maharashtra have implemented some aspects of police reform.
Challenges and Obstacles:
- Resistance to change within the police force is a significant challenge. Existing power structures and entrenched interests can hinder reform efforts.
- The coordination required between the central government and state governments, as policing is a state subject in the Indian Constitution, can be a challenge in implementing nationwide reforms.
- Budgetary constraints and resource limitations can also impede the modernization and capacity-building efforts of the police force.
Civil Society and Activism:
- Civil society organizations, human rights activists, and legal advocates have played a crucial role in advocating for police reforms in India. They have often used the judicial system to push for change and hold the police accountable for their actions.
Future Prospects:
- The need for police reforms in India remains pressing, and there is continued pressure on both central and state governments to take concrete steps to address the issues plaguing the police force.
- The adoption of technology, such as body cameras and digital evidence management systems, could play a significant role in enhancing transparency and accountability within the police force.
3. Curb on VIP Culture
Equal Treatment Under the Law:
Strict Adherence to Traffic Rules:
Public Transport Usage:
Security Protocols:
Accountability for Misuse:
Public Awareness Campaigns:
Reduce Symbolism:
Public Opinion and Media:
Role Modeling by Leaders:
Legislative Reforms:
Transparency in Government:
E-Governance and Digital Services:
Curtailing the VIP culture requires a comprehensive and sustained effort involving legal, cultural, and societal changes. It is a step toward a more inclusive and accountable governance system where all citizens are treated with fairness and dignity, irrespective of their social or political status.
4. Prison Reforms in India
Prison reforms in India are crucial to addressing various challenges and issues within the criminal justice system and improving the conditions of incarcerated individuals. The goals of prison reform in India include enhancing the rehabilitation of inmates, protecting their human rights, and reducing the likelihood of recidivism.
Here are some key aspects of prison reform in India:
Overcrowding and Infrastructure:
Rehabilitation and Skill Development:
Mental Health and Healthcare Services:
Legal Aid and Access to Justice:
Prison Staff Training:
Rights of Women and Juveniles:
Parole and Early Release Programs:
Use of Technology:
Independent Oversight:
Alternatives to Incarceration:
Legal Reforms:
Public Awareness and Advocacy:
International Standards:
Prison reforms in India are a complex and ongoing process, requiring collaboration between government agencies, civil society organizations, and the judiciary. The aim is to create a more just and humane prison system that not only punishes offenders but also focuses on their rehabilitation and successful reintegration into society, ultimately contributing to safer communities.
5. Improving Governance In Public Systems
Improving governance in public systems is crucial for ensuring transparency, efficiency, accountability, and effectiveness in the delivery of public services. Good governance enhances public trust, promotes economic development, and leads to better outcomes for citizens.
Here are several strategies and approaches to improve governance in public systems:
Strengthening Legal and Regulatory Frameworks:
Transparency and Access to Information:
E-Governance and Digitalization:
Citizen Engagement and Participation:
Accountability and Anti-Corruption Measures:
Merit-Based Recruitment and Promotion:
Training and Capacity Building:
Performance Evaluation and Benchmarking:
Decentralization and Devolution of Powers:
Conflict of Interest Rules:
Whistleblower Protection:
Data Analytics and Evidence-Based Decision Making:
International Best Practices:
Public Service Delivery Improvement:
Legal Aid and Access to Justice:
Sustainability and Environmental Governance:
Improving governance in public systems is an ongoing and dynamic process. It requires commitment from government institutions, civil society organizations, the private sector, and citizens themselves. Sustainable governance reforms can lead to more equitable and inclusive societies that benefit all members of the community.
Previous Year Questions
1. Central Bureau of Intelligence and Investigation is listed in the ----------- list given in the Seventh Schedule of the Constitution of India (SSC CGL 2017)
A. Union
B. State
C. Global
D. Concurrent
Answer (A)
2. Central Vigilance Commission was established on the recommendation of Which one of the following Committees? (NDA 2018)
A. Santhanam Committee
B.Dinesh Goswami Committee
C.Tarkunde Committee
D.Narasimhan Committee
Answer (A)
3. Central Vigilance Commission was set up on the recommendations of---- (UPSC CAPF 2017)
A. First Administrative reforms Commission
B. Gorwala Committee
C. Kripalni Committee
D. Santhanam Committee
Answer (D)
4. The National Human Rights Commission has: (UPSC CAPF 2015)
Select the correct answer using the code given below: A. 1,2,3and 4 B. 1,2 and 3 only C. 1and4only D. 2,3 and 4 only Answer: D Previous year Mains Questions1. The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting a probe within a particular state is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India. (250 Words). 2. Effectiveness of the government system at various levels and people’s participation in the governance system are interdependent” Discuss their relationship in the context of India. 3. For achieving the desired objectives, it is necessary to ensure that the regulatory institutions remain independent and autonomous.” Discuss in the light of the experiences in the recent past. 4. The National Human Rights Commission (NHRC) in India can be most effective when its tasks are adequately supported by other mechanisms that ensure the accountability of a government. In light of the above observation assess the role of NHRC as an effective complement to the judiciary and other institutions in promoting and protecting human rights standards. 5.The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise. (UPSC CSE Mains 2018)
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