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DAILY CURRENT AFFAIRS, 02 FEBRUARY 2024

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)

1. Context

With allocation of ₹86,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the budget for the scheme for the financial year 2024-25 has been hiked by ₹26,000 crore in comparison with the 2023-24 Budget estimates, though it is the same as the revised estimates for the ongoing financial year (2023-24). So, the net gain for the rural employment scheme could be zero or even negative.
 

2. About the National Level Monitoring (NLM) report

  • The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
  • The report is based on field visits and interviews with stakeholders at the grassroots level.
  • The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
  • The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.

The NLM report typically identifies the following areas:

  • The coverage of rural development programs
  • The quality of implementation of rural development programs
  • The impact of rural development programs on the lives of rural people

The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.

 

3. The findings of the NLM report

  • In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
  • In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
  • In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
  • The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
  • The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
 

4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.

4.1. Mandate and Goals

  • The mandate of MGNREGA is to provide employment and ensure food security for rural households.
  • The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
  • The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity. 

4.2. Core Objectives 

  •  The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
  • The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
  • MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
  • The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.

4.3. Key Stakeholders 

  • Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
  • Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
  • The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
  • The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
  • Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.

4.4. Role of Gram Sabha and Gram Panchayat

  • The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
  • The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.

4.5. Issues with MGNREGA

  •  Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
  •  There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
  • Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
  • Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
  • Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
  • Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.

5. Conclusion

MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.

 

For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G), 
For Mains: 
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
 
 
 
Previous Year Questions
 
Prelims

1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011)

(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household

Answer: D

2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)

  1. Deprivation of education, health, assets and services at household level
  2. Purchasing power parity at national level
  3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

(a) 1 only             (b) 2 and 3 only         (c) 1 and 3 only             (d) 1, 2 and 3

Answer: A

3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

(a) 1 and 2 only         (b) 2 only                     (c) 1 and 3 only                (d) 1, 2 and 3

Answer: C

4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)

  1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
  2. By strengthening ‘self-help groups’ and providing skill development
  3. By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipment free of cost to farmers

Select the correct answer using the codes given below:

(a) 1 and 2 only          (b) 2 only                        (c) 1 and 3 only              (d) 1, 2 and 3

Answer: B 

5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017)

A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
 
Answer: A
 
Mains
 
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
 
Source: indianexpress
 

HOUTHIS

 
 
1. Context

EU member states want to launch a Red Sea naval mission by mid-February to protect ships from attacks by Yemen’s Iran-backed Houthi militia and could decide its command structure

Yemen's Houthi army emerges as a major threat to Israel and US | Semafor

2. Who are Houthis?

  • "The Houthis, a prominent clan affiliated with the Zaidi Shia sect, have their origins in Yemen's northwestern Saada province. The Zaidis constitute approximately 35 percent of Yemen's population.
  • For over a thousand years, the Zaidis held dominion over Yemen until their overthrow in 1962, leading to a protracted civil war that extended until 1970.
  • During the 1980s, the Houthi clan began a resurgence of the Zaidi tradition in response to the rising influence of the Salafists, who received support from the state.
  • In 2004, the Houthis initiated an insurgent movement against the Yemeni government, adopting the name of Hussein Badreddin al-Houthi, a prominent political, military, and religious leader who was assassinated by Yemeni security forces in September of that year. Subsequent years witnessed ongoing conflict between the Houthis and Yemen's Sunni-majority government.
  • In 2012, Ali Abdullah Saleh, who had served as Yemen's president since 1990 and earlier as the president of pre-unified North Yemen from 1978, was compelled to resign in the wake of the Arab Spring protests. He was succeeded by his vice-president, Abd Rabbu Mansour Hadi.
  • In 2015, Saleh allied himself with the Houthis against Hadi, resulting in the insurgency capturing Sana'a. President Hadi fled to Aden and later sought refuge in Saudi Arabia, where he continues to reside for the most part.
  • However, in 2017, Saleh severed his ties with the Houthis and joined forces with their adversaries, including the Saudis, the UAE, and President Hadi. In December of that year, Saleh was assassinated."
3. How did the UAE and Saudi Arabia get involved in the war?
  • "In March of 2015, shortly after Hadi's removal from power, a coalition consisting of nine nations and led by Saudi Arabia, with logistical and intelligence support provided by the United States, initiated an aerial campaign against the Houthi forces.
  • These airstrikes aimed to bolster Hadi's troops, who were attempting to retake control of Sana'a from the Houthi faction. Nonetheless, at the core of this intervention was the underlying power struggle in the region, pitting Saudi Arabia against Iran.
  • Both Riyadh and Western nations believed that the Houthi group received military and financial backing from the Iranian regime.
  • Saudi Arabia, due to its extensive 1,300-kilometer border with Yemen, initially asserted that the conflict would conclude within a few months.
  • However, progress by the coalition has been limited, resulting in a prolonged stalemate, with the Houthi faction retaining control over Sana'a and a dire humanitarian crisis unfolding in Yemen.
  • Since 2015, the nature of the conflict has constantly evolved, with various factions switching allegiances among the Saudi-supported Popular Resistance Committees, Iran-backed groups, and an array of Islamist militants, including those associated with al-Qaeda and the Islamic State."

 
4.Way Forward
More than the UAE, it is Saudi Arabia that has been in the crosshairs of the Houthis. Since 2015, they have repeatedly fired missiles and mortar at Saudi military and civilian facilities including airports and oil facilities, and killed many Saudi soldiers. Over the last year, the two sides have been engaged in a tense battle to capture the Marib province, which is the government’s only remaining stronghold in northern Yemen, and houses vast oil and gas infrastructure.
 
Source: Indianexpress
 

BRICS

 

1. Context

Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates have confirmed they are joining the BRICS bloc after being invited last year

2. BRICS

  • The BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, has evolved from an economic consortium to a multifaceted geopolitical force.
  • Emerging economies with considerable potential, these countries together form a collective that challenges traditional power dynamics and fosters cooperation in an increasingly interconnected world.

3. Formation and Evolution

  • BRICS was officially established in 2006, with the objective of fostering economic growth, development, and cooperation among member nations.
  • Over time, it has transformed into a platform for addressing a broader spectrum of global challenges, encompassing political, security, and social concerns alongside economic issues.

4. Geopolitical Relevance

  • Counterbalance to Western Influence: BRICS serves as a counterweight to the dominance of Western powers. The coalition's diverse representation from different regions empowers non-Western countries to assert their interests on the global stage.
  • Global South Unity: BRICS resonates with many countries in the Global South that seek a voice in international affairs. It presents an alternative to the traditional Western-dominated institutions, offering a platform for collaboration and advocacy.

5. Economic Cooperation and Growth

  • Economic Powerhouses: Collectively, BRICS nations account for a substantial portion of the world's population and GDP. Their economic potential has led to discussions on reforming global financial institutions to better reflect contemporary realities.
  • Intra-BRICS Trade: Trade among BRICS members has grown significantly. Initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) bolster financial cooperation and stability within the group.

6. Geopolitical Challenges and Opportunities

  • Diverse Interests: As BRICS expands and diversifies, differing geopolitical interests may arise, potentially leading to internal divisions. However, this diversity also presents opportunities for creative solutions to global challenges.
  • Diplomatic Outreach: BRICS engages with other regional and international organizations, strengthening its influence. The expansion of the group's membership underscores its growing geopolitical relevance.

7. India's Role and Beyond

  • India's Diplomacy: India has played an active role within BRICS, emphasizing issues such as counter-terrorism, cybersecurity, and climate change. Its strategic partnerships contribute to the coalition's expansion and its influence in shaping its direction.
  • Global Impact: BRICS expansion into a broader coalition incorporating West Asian countries like Egypt, Iran, Saudi Arabia, and the UAE signifies a deliberate shift towards greater global political relevance. This expansion highlights BRICS' adaptability to changing geopolitical dynamics.

8. BRICS New Members Dynamics

  • Unanimous Decisions: BRICS decisions require unanimous agreement, reflecting collective decision-making.
  • Geopolitical Partnerships: While Russia and China confront West-related challenges, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
  • China's Expansion Drive: China spearheads BRICS expansion, prioritizing membership growth.
  • Inclusion of Iran: China and Russia's influence is seen in Iran's inclusion, showcasing their collaboration.
  • Mediation Efforts: China's role reconciles rivals Saudi Arabia and Iran within the alliance.
  • Saudi Arabia's Shift: Saudi Arabia's entry signifies a move towards an independent foreign policy, diverging from the US alliance.
  • Global Significance for Russia and Iran: BRICS membership elevates Russia and Iran's global partnerships, challenging Western dominance.

9. Implications for India

  • Strategic Role: India played a lead role in drafting BRICS membership criteria, demonstrating its strategic influence within the alliance.
  • Expanded Influence: The inclusion of new members who are strategic partners of India enhances its influence within BRICS.
  • Geopolitical Balancing: BRICS expansion allows India to navigate between its ties with the West and its position within this non-Western coalition.
  • Global Advocacy: With more representation and diverse members, India can push for UN reforms and increased Global South representation.
  • Diplomatic Challenges: India might need to exert more effort to assert its influence in an alliance with a wider range of members and potential competing interests.
  • Economic Opportunities: Collaboration with economically strong members like China can lead to enhanced trade and investment prospects for India.
For Prelims: BRICS, Global South Unity, Western Influence, New Development Bank (NDB), and Contingent Reserve Arrangement (CRA).
For Mains: 1. Discuss the Implications of BRICS' Expansion for India's Geopolitical Positioning and Influence within the Alliance.
2. Analyze India's Role in Shaping BRICS' Membership Criteria and Its Strategic Significance in the Expanded Coalition.
 

Previous year Questions

1. With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC 2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
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
Answer: B
 
2. With reference to BRIC countries, consider the following statements: (UPSC 2010)
1. At present, China's GDP is more than the combined GDP of all three other countries.
2. China's population is more than the combined population of any two other countries.
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
Answer: A
 
3. The 'Fortaleza Declaration', recently in the news, is related to the affairs of  (UPSC 2015)
A. ASEAN
B. BRICS
C. OECD
D. WTO
Answer: B
Source: The Hindu
 
ALIGARH MINORITY UNIVERSITY (AMU)
 
 
 
 
 
1. Context 
 
The Aligarh Muslim University (AMU) on Wednesday rejected the argument that it had surrendered its denominational character upon its founding in 1920. Senior Advocate Rajeev Dhavan appearing for the University told a 7-judge Constitution bench presided by Chief Justice of India D Y Chandrachud that “the AMU Act 1920 read as a whole along with the statement of objects and reasons and the preamble, clearly reflect on the denominational nature of AMU”
 

2. Understanding 'Minority Character' in Educational Institutions
 
Constitutional Framework
Article 30(1) within Part III of the Constitution confers a fundamental right upon religious and linguistic minorities, allowing them to establish and administer educational institutions of their choice. The subsequent Clause 2 emphasizes the State's obligation to maintain 'equality of treatment' in providing aid to all educational institutions, regardless of their minority status. This right extends across all levels of education, ranging from primary schools to professional institutions.
Exemptions and Privileges
Educational institutions enjoying minority status, as outlined in Article 30, receive certain exemptions and privileges. Notably, they are exempt from implementing reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) in both admissions and employment. Furthermore, these institutions have the authority to reserve up to 50% of seats for students from their specific community. They also possess greater control over the employment of staff compared to non-minority institutions.
Demographic Determination
In the T.M.A. Pai Foundation case of 2002, the Supreme Court provided clarity on the definition of a 'minority.' It emphasized that the determination of minority status should be based on the demographic composition of the concerned State rather than the national population. This ensures a contextual understanding of minority identity within the specific region rather than a uniform national criterion.
 

3. Background of the Aligarh Muslim University Minority Status Case

 

In 1877, Sir Syed Ahmed Khan, a prominent Muslim reformer, established the Muhammadan Anglo-Oriental College (MAO College) in Aligarh to address educational gaps among Muslims while preserving Islamic values. The Aligarh Muslim University Act of 1920 (AMU Act) was enacted to amalgamate the MAO College and the Muslim University Association into the Aligarh Muslim University (AMU).

Amendments and Changes

In 1951, the AMU Act underwent amendments that eliminated compulsory religious education for Muslims and the exclusive Muslim representation mandate in the University Court. Subsequent changes in 1965 further redistributed powers among various bodies, including the executive, with the President of India nominating members to the governing body.

Legal Dispute Initiation (1967)

The legal dispute originated in 1967 when the Supreme Court, in the case of S. Azeez Basha versus Union of India (UOI), reviewed the amendments from 1951 and 1965. The petitioners argued for the Muslim right to manage AMU, given its establishment by Muslims. However, a five-judge Supreme Court bench upheld the amendments, contending that AMU was neither established nor administered by the Muslim minority, emphasizing the Act's enactment through Central legislation.

Nationwide Protests and Amendments (1981)

This ruling sparked widespread protests, leading to the amendment of the AMU Act in 1981 to affirm the university's minority status. This acknowledgement was a response to the protests and a recognition of the historical context of Muslim involvement in the establishment and administration of AMU.

Reservations and Legal Challenges (2005-2006)

In 2005, AMU reserved 50% of postgraduate medical seats for Muslim candidates. However, the Allahabad High Court, in Dr Naresh Agarwal vs UOI (2005), declared the reservation policy ultra vires, leading to an appeal by the UOI and the University to the Supreme Court in 2006. However, in 2016, the UOI withdrew from the appeal, refusing to acknowledge the University's minority status. Consequently, the University is currently pursuing the case independently.

 

4. Current Status of the Aligarh Muslim University Case in the Supreme Court

The Supreme Court is currently deliberating on two pivotal issues within the Aligarh Muslim University (AMU) case — the criteria for determining the minority status of an educational institution and whether an institution established under a statute can be accorded such status.

Petitioners' Argument

The petitioners advocate for AMU's entitlement to minority status, emphasizing its historical context and the Muslim community's role in its establishment. They contend that statutory regulations or State aid, as provided to AMU, do not negate its minority character. The reliance on the T.M.A Pai Foundation verdict is asserted to support the argument that legislative acts merely 'incorporated' the university, preserving its distinct 'establishment' by the minority community under Article 30.

Government's Stand

The Union of India (UOI) is aligning with the S. Azeez Basha verdict, asserting that AMU does not qualify for minority status. Solicitor General Tushar Mehta argues that AMU, having surrendered its rights to the British government and assumed a secular character with the 1920 Act, should not be considered a minority institution. However, the Chief Justice of India (CJI) interjected, asserting that the political inclination of AMU does not impact its minority status.

 

5. The Way Forward

 

The judgment in this case holds significant implications, as it is poised to set a precedent that will influence the rights and legal recognition of all minority institutions. The Supreme Court's decision will establish a framework for determining minority status in educational institutions and clarify the impact of statutory incorporation on such status.

 
For Prelims: Aligarh Muslim University, Minorities, Article 30
For Mains: 
1. Analyze the role of the judiciary in upholding the rights of minorities in India. Discuss the challenges and limitations faced by the judicial system in addressing such sensitive issues. (250 Words)
 
 
Previous Year Questions
 
1. Who founded Aligarh Muslim University? (UPSSSC Forest Guard 2018)
 
A. Syed Ahmed Khan    B. Mohammad Ali     C. Jauhar Muhammad Iqbal  D. Syed Ameer Ali Answer: A
 
2. In India, if a religious sect/community is given the status of a national minority, what special advantages it is entitled to? (UPSC 2011)
1. It can establish and administer exclusive educational institutions.
2. The President of India automatically nominates a representative of the community to Lok Sabha.
3. It can derive benefits from the Prime Minister's 15-Point Programme.
Which of the statements given above is/are correct?
A. 1 only      B. 2 and 3 only          C. 1 and 3 only           D. 1, 2 and 3
 
Answer: C
 
3. Which of the following Articles of the Constitution of India specifies the right of minorities to establish and administer educational institutions? (Delhi Police Constable 2020) 
A. Article 29         B. Article 27         C. Article 28           D. Article 30
 
Answer: D
 
4. Which minorities are mentioned in article 30 of the Indian Constitution? (SSC CGL 2022)
A. Linguistic and religious
B. Religious, cultural and linguistic
C. Cultural and linguistic
D. Religious and cultural
 
Answer: 1-A, 2-C, 3-D, 4-A
 
 
 
Source: The Hindu
 

FINANCE COMMISSION

1. Context

After the appointment of Arvind Panagariya as Chairman of the 16th Finance Commission, the government has now announced the appointment of three full-time members and one part-time member of the Commission.

2. Evolution of India's Fiscal Federalism: Pre-Reform vs. Post-Reform

2.1 Pre-Reform Period:
  • Finance Commission recommendations held less significance.
  • Centre had alternative methods to compensate states and show favoritism.
  • Plan financing and PSU investments are used as tools for compensation and favoritism.
2.2 Post-Reform Period:
  • Fresh PSU investments were reduced significantly.
  • Planning Commission was abolished in 2014, shifting greater responsibility to the Finance Commission.
  • Finance Commission is now the primary architect of India's fiscal federalism.
  • Increased responsibility and influence of the Finance Commission in shaping fiscal policies.

3. Challenges in Horizontal Distribution Formula in India's Fiscal Federalism

  • Proportion of Tax Pool: Centre currently allocates 41% of its tax pool to the states. States may demand an increase in this proportion. Limited room for a further increase due to the Centre's expenditure needs and borrowing constraints.
  • Population Figures: Contentious issue in the previous Finance Commission (2017). Terms of reference mandated the use of 2011 population figures instead of 1971 figures. Southern states, which had successfully stabilized population growth rates, protested this change as a "penalty for good performance".
  • Revenue Deficit Grants: Finance Commission awards revenue deficit grants to states in deficit after tax devolution. Intended to ensure a minimum level of service provision. Concerns raised about it becoming a perverse incentive for states to rely on compensation rather than rising revenues independently.
  • Balancing Fiscal Incapacity and Irresponsibility: Finance Commissions historically struggled to distinguish between fiscal incapacity and irresponsibility. Attempted to tweak the distribution formula to support deficit states without penalizing responsible states. Criticisms of every formula as inefficient or unfair due to the inherent challenge of giving more to one state without giving less to another.

4. Increasing Cesses and Surcharges

  • Centre's reliance on levying cesses and surcharges instead of raising taxes has grown.
  • Tamilnadu Government's white paper revealed that the proportion of cesses and surcharges in the Centre's total tax revenue nearly doubled from 10.4% in 2011-12 to 20.2% in 2019-20.
  • The Centre benefits from this practice as it can retain the entire revenue raised through surcharges, unlike sharing taxes with states.
  • Since the constitutional amendment in the year 2000, understanding has been breached, which intended limited use of cesses and surcharges.
  • States perceive this as a denial of their rightful share of national tax revenue.

5. Addressing the Issue:

  • The forthcoming Finance Commission should utilize its leverage to address this concern.
  • Establish guidelines for reducing routine usage when cesses and surcharges can be levied.
  • Propose a formula to cap the amount raised through cesses and surcharges.
  • Ensuring a fair and equitable distribution of revenue among the Centre and states.

6. Government spending on Freebies

  • Issue of Freebies: Government spending on freebies is a significant concern, with all political parties engaging in it to varying degrees. Blaming specific parties for this practice is unproductive; addressing the issue is the priority.
  • Considerations for Poor Country: In a poor country like India, it may seem harsh to argue against safety nets for the poor. However, the country's economic constraints necessitate caution regarding freebies.
  • Fiscal Responsibility and Budget Management (FRBM) Act: The FRBM Act was intended to limit populist spending but has been bypassed through creative debt-raising methods. Defining freebies is challenging, and any attempt to regulate them can be seen as infringing on the elected governments' sovereignty.
  • Guidelines for Freebie Spending: The forthcoming Finance Commission should take decisive action for long-term fiscal sustainability. Lay down guidelines to regulate spending on freebies, considering the country's financial well-being. Such measures are necessary to ensure restraint and avoid bankruptcy risks.
  • Prime Minister's Stance: After the Karnataka election, the Prime Minister expressed concerns about unsustainable guarantees offered by political parties. The Prime Minister should lead by example in state assembly elections, prioritizing good governance over the allure of freebies. This will provide confidence to the Finance Commission to establish mechanisms for restraining freebies and promote responsible governance.

7. Finance Commission

  • The Finance Commission is a constitutional body in India that is appointed by the President every five years. Its primary function is to make recommendations on the distribution of financial resources between the central government and the state governments.
  • The Commission assesses the needs and requirements of both levels of government and recommends the sharing of tax revenues, grants-in-aid, and other financial resources. The Finance Commission also addresses issues related to fiscal federalism, including the principles governing the distribution of resources, the allocation of grants to states, and measures to improve fiscal management.
  • It takes into account various factors such as population, income disparities, tax efforts, infrastructure requirements, and socio-economic indicators while formulating its recommendations.
  • The recommendations of the Finance Commission are crucial in ensuring a fair and equitable distribution of resources, promoting balanced regional development, and addressing the financial needs of the states.
  • The Commission's reports and recommendations are submitted to the President, who then lays them before both houses of Parliament for consideration and implementation.
For Prelims: Finance Commission, Fiscal Federalism, Fiscal Responsibility and Budget Management (FRBM) Act, Cesses, Surcharges, Freebies, Populus Schemes, and Revenue deficit grants.
For Mains: 1. How does the Fiscal Responsibility and Budget Management (FRBM) Act aim to address populist spending, and why has it been ineffective? (250 words)
 

Previous year Question

1. With reference to the Finance Commission of India, which of the following statements is correct? (UPSC 2011)
A. It encourages the inflow of foreign capital for infrastructure development.
B. It facilitates the proper distribution of finances among the Public Sector Undertaking.
C. It ensures transparency in financial administration.
D. None of the statements (a), (b), and (c) given above is correct in this context.
Answer: D
 
2. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? (UPSC 2015)
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below. 
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: A
Source: The Hindu
 

INTERIM BUDGET 2024: HIGHLIGHTS 

 
 
 
 
1. Context 
 
 
Recently, Finance Minister Nirmala Sithatraman finished her interim Budget speech within an hour. While many say that there aren’t any major changes. 
 
 
2. About Interim Budget or Vote on Account
 
A vote on account, commonly referred to as an interim Budget, involves the government seeking Parliament's approval to cover expenditures during the initial four months of the fiscal year (April-March). This encompasses essential financial obligations such as salary disbursements and the continuation of existing programs across different sectors. Notably, there are no modifications to the taxation structure during this interim period. This arrangement persists until a new government assumes office and presents a comprehensive Budget, which is then revised for the entire fiscal year.

The practice of presenting a vote on account in India before a new government forms serves several crucial purposes:

  • With elections often held close to the start of the fiscal year, there's limited time for a new government to formulate and garner parliamentary approval for a full budget. The vote on account provides a temporary spending plan to ensure essential government functions continue uninterrupted.
  • Introducing a full budget before the new government takes charge would be seen as imposing the previous regime's policies on the incoming one. The vote on account avoids this by maintaining the status quo, allowing the new government to present a revised budget reflecting its own priorities and vision later.
  • Without a spending plan, the government would face financial difficulties, potentially impacting public services and causing economic disruption. The vote on account bridges this gap, ensuring continuity and stability during the transition period.
  • Since India's independence in 1947, the vote on account has become a well-established convention. This continuity provides predictability and facilitates smooth financial management during government changes.
 
3. The Key Highlights of the Interim Budget

3.1. Housing

  • The government plans to launch a new housing scheme specifically targeting "deserving sections of the middle class" currently living in rented accommodations, slums, chawls, or unauthorized colonies. This scheme aims to empower them to purchase or build their own homes, potentially improving their living standards and financial security.
  • To promote renewable energy and environmental sustainability, the government intends to enable one crore households to generate and utilize up to 300 units of free electricity per month through rooftop solarization. This initiative aligns with the Prime Minister's vision expressed during the historic consecration of Ram Mandir in Ayodhya, aiming for a cleaner and more self-sufficient future.
  • Recognizing the growing demand for housing in rural areas, the PM Awas Yojana (Grameen) will be expanded to construct two crore additional houses in the next five years. This initiative addresses the needs of families and communities, fostering rural development and improved living conditions.

3.2. Healthcare

  • The government announced a new vaccination program for girls aged 9-14 years against Human Papillomavirus (HPV), which can cause cervical cancer. This proactive step aims to safeguard the health of young women and reduce future cancer risks.
  • To address the shortage of medical professionals, the government plans to create more medical colleges by leveraging existing hospital infrastructure within various departments. This strategy aims to increase the number of qualified doctors and improve healthcare accessibility.
  • The "Saksham Anganwadi and Poshan 2.0" initiative will see further acceleration, focusing on upgrading Anganwadi centres, crucial for providing healthcare and nutrition services to young children and pregnant mothers.
  • The U-WIN platform for managing immunization programs and the Mission Indradhanush immunization drive will be rolled out swiftly. This initiative aims to strengthen and expand immunization coverage, preventing childhood diseases and promoting public health.
  • The government extends healthcare coverage under the Ayushman Bharat scheme to all ASHA workers, Anganwadi Workers, and Helpers. This move provides them with much-needed health insurance and financial protection.

3.3. Agriculture and Related Sector 

  • The government plans to expand the application of Nano DAP, a fertilizer using nanotechnology, across various crops and agro-climatic zones. This aims to improve nutrient absorption and potentially increase crop yields.
  • A strategic plan will be formulated to achieve "atmanirbharta" (self-sufficiency) in oilseeds, focusing on mustard, groundnut, sesame, soybean, and sunflower. This initiative aims to reduce reliance on imported oils and boost domestic production.
  • A comprehensive program to support dairy farmers will be developed, leveraging the success of existing schemes like the Rashtriya Gokul Mission and National Livestock Mission. This aims to improve dairy farmers' income and increase milk production.
  • The implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be intensified to:
  1. Increase aquaculture productivity from 3 to 5 tons per hectare.
  2. Double fish exports to ₹1 lakh crore.
  3. Generate 55 lakh employment opportunities.
  • Five integrated aquaparks will be set up, combining fish farming with agriculture, potentially promoting sustainable and resource-efficient food production.

3.4. Empowering Women

  • The Finance Minister acknowledged the significant role of Self-Help Groups (SHGs) in empowering rural women, highlighting their contribution to socio-economic transformation. This recognition underscores the government's awareness of the vital role SHGs play in women's financial independence and community development.
  • The government aims to ambitiously increase the target of the "Lakhpati Didi" scheme from 2 crore to 3 crore women. This scheme empowers rural women by providing skill development training and facilitating their transition into entrepreneurs, aiming for an annual income of at least 1 lakh rupees. The expansion signifies the government's commitment to fostering women's economic participation and self-reliance on a larger scale.

3.5. Youth And Technology
  • The budget aims to empower the "tech-savvy youth" by establishing a massive ₹1 lakh crore corpus offering 50-year interest-free loans. This initiative provides young entrepreneurs with access to long-term, low-cost financing to fuel their innovative ventures.
  • The long repayment tenure (50 years) and low/zero interest rates offer significant benefits:
  1. Young entrepreneurs can focus on investing in their businesses without worrying about high loan repayments.
  2. The favourable loan terms allow for more experimentation and innovation.
  3. Access to larger funds can support more ambitious and impactful ventures.
  • A separate scheme that focuses on strengthening "deep-tech" technologies for defence purposes. This initiative aligns with the "atmanirbharta" (self-sufficiency) goal, aiming to:
  1. Promote research and development in critical areas like artificial intelligence, robotics, and cyber security.
  2. Foster domestic innovation and production of advanced defence equipment.
  3. Equip the armed forces with cutting-edge technologies to enhance their capabilities.
 
3.6. Infrastructure Development

The government has announced a significant increase in infrastructure spending for the next year, highlighting its commitment to developing this crucial sector. 

  • The outlay for infrastructure development is being increased by 11.1% to a whopping ₹11,11,111 crore, representing 3.4% of the GDP. This substantial investment aims to accelerate infrastructure growth and improve connectivity across the nation.
  • Three major railway corridor programs will be implemented:
  1. Energy, mineral and cement corridors aim to improve transportation efficiency for key industrial resources, boosting economic activity in these sectors.
  2. Port connectivity corridors will enhance connectivity between ports and hinterlands, facilitating smoother movement of goods and promoting international trade.
  3. High-traffic density corridors will address congestion in high-traffic areas, improving overall logistics and reducing travel time.
  • Multimodal Connectivity projects identified under the PM Gati Shakti initiative prioritize multimodal connectivity, ensuring seamless movement of goods and people across different modes of transportation (road, rail, air, waterways).
  • The expansion of Metro rail networks and the NaMO Bharat program in large cities will focus on transit-oriented development (TOD). This approach integrates public transport with urban planning, promoting sustainable and livable cities.

3.7. Environment and Green Energy
 
  • The budget announces the provision of viability gap funding for tapping into the offshore wind energy potential, emphasizing sustainable and clean energy sources.
  • A forward-looking initiative aims to establish a coal gasification and liquefaction capacity of 100 MT by the year 2030, aligning with the commitment to reduce reliance on traditional energy sources.
  • Financial assistance will be extended to facilitate the procurement of biomass aggregation machinery, promoting the utilization of biomass for energy generation.
  • A phased approach towards the mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be instituted, emphasizing the transition to cleaner energy alternatives.
  • The budget emphasizes support for the electric vehicle ecosystem, covering both manufacturing and charging infrastructure. This initiative aims to accelerate the adoption of electric vehicles for a more sustainable transportation system.
  • A payment security mechanism will be introduced to encourage the greater adoption of electric buses in public transport networks, contributing to reduced emissions and enhanced environmental sustainability.
  • To promote green growth, a new scheme for bio-manufacturing and bio-foundry will be launched. This initiative focuses on leveraging biological processes for manufacturing and fostering bio-based industries.
  • The budget introduces Blue Economy 2.0, encompassing a scheme for restoration and adaptation measures, coastal aquaculture, and mariculture. This integrated and multi-sectoral approach aims to enhance the sustainable use of ocean resources while addressing environmental concerns.

3. 8. Tourism

The budget outlines a focused strategy to revitalize and promote domestic tourism in India, with several key initiatives:

  • States will be encouraged to comprehensively develop iconic tourist destinations, encompassing branding and marketing them on a global scale. This aims to attract international tourists and enhance the overall tourism experience.
  • A framework for rating tourist centres based on the quality of facilities and services will be established. This will ensure transparency and encourage continuous improvement, leading to a more attractive and satisfying tourist experience.
  • Long-term, interest-free loans will be provided to states on a matching basis to finance the development of these iconic tourist centres. This financial assistance will act as a catalyst for infrastructure improvement and attract private investment.
  • Recognizing the potential of island destinations, projects for port connectivity, tourism infrastructure, and amenities will be undertaken on various islands, including Lakshadweep. This aims to diversify the domestic tourism landscape and offer unique experiences to travellers.

3. 9. FDI

The budget speech mentioned two key points regarding Foreign Direct Investment (FDI) in India:

  • The government emphasized the significant increase in FDI inflow during 2014-23, highlighting it as a "golden era" with USD 596 billion received, doubling the inflow compared to 2005-14. This achievement suggests that India has become a more attractive destination for foreign investors in recent years.
  • The government expressed its commitment to attracting further foreign investment through:
  1. Negotiating bilateral investment treaties aims to create a more stable and predictable investment environment for foreign companies, potentially reducing risks and encouraging investment.
  2. The "First Develop India" approach emphasizes attracting FDI that aligns with India's development priorities, potentially leading to technology transfer, job creation, and infrastructure development.

3. 10. Population Growth and Demographic Changes

To comprehensively address the challenges posed by population growth and demographic changes, the government is set to establish a high-powered committee. This committee will undertake an extensive consideration of the issues at hand, aiming to formulate effective strategies and policies to navigate and manage the evolving demographic landscape.
 

3. 11. Reforms in the States
 
The budget's proposal to offer states a ₹75,000 crore, 50-year interest-free loan for reforms marks a significant step towards incentivizing positive change at the state level. 
  • The loan provides states with much-needed financial resources to undertake significant reforms, potentially overcoming budgetary constraints that often impede progress.
  • The 50-year loan term offers flexibility and reduces pressure on immediate repayment, allowing states to invest in long-term reforms with lasting impact.
  • The loan is likely tied to specific reform initiatives identified by the central government or mutually agreed upon. This ensures the funds are directed towards desired outcomes.

3. 12. Revised Estimates 2023-24

The revised estimates for the 2023-24 financial year offer insights into the government's updated projections for revenue, expenditure, and fiscal deficit. 

  • Revenue
  1. Total receipts excluding borrowings are estimated at ₹27.56 lakh crore, exceeding the budget estimate. This suggests stronger revenue collection, potentially due to better economic performance or improved tax administration.
  2. Tax receipts are expected to reach ₹23.24 lakh crore, highlighting positive growth in tax collection.
  3. Revenue from other sources like dividends and asset sales is also expected to be higher than initially projected.
  • Total expenditure is revised to ₹44.90 lakh crore, indicating higher spending than initially planned. This could be due to unforeseen circumstances, increased spending on specific programs, or adjustments in accounting practices.
  • Despite the higher expenditure, the revised fiscal deficit stands at 5.8% of GDP, which is lower than the budgeted 6.4%. This improvement is attributed to the higher revenue collection and potentially reflects the government's commitment to fiscal consolidation.
 

3. 13. Budget Estimates 2024-25
  • The government commits to adhering to the path of fiscal consolidation with a projected fiscal deficit of 5.1% of GDP for 2024-25, slightly lower than the revised estimate of 5.8% for 2023-24.
  • The popular scheme of providing a 50-year interest-free loan for capital expenditure to states continues, with a total outlay of ₹1.3 lakh crore in 2024-25. This aims to boost infrastructure development at the state level.
  • The total expenditure is estimated to grow by 6.1% to ₹47.66 lakh crore compared to the revised estimate for 2023-24. This indicates increased government spending across various sectors. Total receipts excluding borrowings are also projected to rise by 11.5% to ₹30.80 lakh crore. This suggests optimism about revenue collection, potentially driven by economic growth or tax reforms.
  • Tax receipts are estimated to reach ₹26.02 lakh crore, indicating continued focus on tax collection while potentially avoiding major changes in tax rates.

3. 14. Direct taxes 
 
  • Over the past decade, direct tax collections have witnessed an impressive threefold increase. Simultaneously, the number of return filers has surged to 2.4 times the previous figure, indicating a substantial expansion in the taxpayer base.
  • The introduction of a new tax scheme has elevated the tax exemption threshold, eliminating tax liability for individuals with an income of up to Rs. 7 lakh. This significant increase from Rs. 2.2 lakh in the financial year 2013-14 aims to provide relief to a broader segment of taxpayers.
  • The presumptive taxation threshold for retail businesses has been raised from Rs. 2 crores to Rs. 3 crores, offering a more favourable taxation framework. Additionally, the eligibility threshold for professionals under presumptive taxation has been increased from Rs. 50 lakh to Rs. 75 lakh.
  • In a move to boost economic growth, the corporate tax rate has been reduced from 30 per cent to 22 per cent for existing domestic companies. Furthermore, certain new manufacturing companies now enjoy a reduced tax rate of 15 per cent.
  • The age-old jurisdiction-based assessment system has undergone a transformative shift with the introduction of Faceless Assessment and Appeal. This modernized approach enhances efficiency, transparency, and accountability in the tax assessment process.
  • Introducing updated income tax returns, a new Form 26AS, and prefilling of tax returns have streamlined the tax filing process, making it more accessible and user-friendly for taxpayers.
  • The average processing time for returns has been substantially reduced from 93 days in the year 2013-14 to a mere ten days in the current year. This improvement ensures faster and more efficient processing of refunds, benefiting taxpayers.

3. 15. Indirect Taxes

The budget speech emphasized several positive developments in India's indirect tax system, particularly regarding the Goods and Services Tax (GST)

  • The speech highlighted that GST has reduced the compliance burden on trade and industry. This suggests that businesses are finding it easier to comply with the new tax regime compared to the previous system.
  • The tax base of GST has more than doubled since its implementation, indicating that more businesses are now registered under the system. This potentially leads to wider tax collection and increased revenue.
  • The average monthly gross GST collection has almost doubled to Rs. 1.66 lakh crore. This significant increase in revenue suggests the effectiveness of the GST system in generating income for the government.
  • States' SGST revenue, including compensation released to states, has achieved a buoyancy of 1.22 in the post-GST period. This indicates that states are receiving their share of GST revenue effectively and consistently, contributing to their financial stability.
  • The speech also mentioned that steps were taken in Customs to facilitate international trade. This suggests efforts to streamline customs procedures and reduce trade barriers, potentially boosting India's international trade competitiveness.
 

3. 16. Tax Proposals
  • The budget maintains stability in tax rates, with no alterations in the existing tax structure for both direct and indirect taxes, including import duties. This approach aims to provide consistency and predictability to taxpayers and businesses.
  • Resolution of Outstanding Direct Tax Demands:
  1. A significant step towards easing the tax compliance landscape involves the withdrawal of outstanding direct tax demands. This pertains to petty, non-verified, non-reconciled, or disputed direct tax demands, some dating as far back as 1962.
  2. Direct tax demands up to Rs. 25,000 for the period up to the financial year 2009-10 and up to Rs. 10,000 for financial years 2010-11 to 2014-15 will be withdrawn. This initiative aims to provide relief to taxpayers and streamline the resolution of long-standing tax issues.
 
 
4. The Way Forward
 
The Interim Budget 2024 focuses on various initiatives across sectors like housing, healthcare, agriculture, youth development, infrastructure, and environment. While maintaining stability in tax rates, it offers some relief through the withdrawal of outstanding small tax demands. This budget sets the stage for the full budget to be presented by the new government after the elections.
 
 
For Prelims: Interim Budget
For Mains: 
1. Critically analyze the key economic priorities as reflected in the Interim Budget 2024. Do you think these priorities adequately address the current challenges faced by the Indian economy? Justify your answer. (250 Words)
2.  The Interim Budget 2024 emphasizes infrastructure development and fiscal consolidation. Discuss the potential impact of these policies on India's economic growth and sustainability. (250 Words)
3. The Interim Budget 2024 proposes to maintain existing tax rates. Do you think this approach is appropriate in the current economic scenario? What alternative tax policies could be considered to promote economic growth and social welfare? (250 Words)
4.  How can the government effectively balance economic development with environmental protection? Suggest policy frameworks and implementation strategies to achieve this balance.  (250 Words)
5. The budget highlights the Blue Economy 2.0 initiative. Examine the potential of the ocean economy for India's development while emphasizing the need for sustainable and responsible utilization of ocean resources. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements: 
The Parliamentary Committee on Public Accounts (UPSC 2013)
1. consists of not more than 25 members of the Lok Sabha.
2. scrutinizes appropriation and finance accounts of the Government.
3. examines the report of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3
 
 
2. With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc., conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC 2018)
A. Committee on Government Assurances
B. Committee on Subordinate Legislation
C. Rules Committee
D. Business Advisory Committee
 
 
3. According to the Representation of the People Act, 1951, in the event of a person being elected to both houses of Parliament, he has to notify within ______ days in which house he intends to function. (Delhi Police Constable 2020) 
A. 22       B. 10        C.  20            D. 15
 
Answer: 1-B, 2-B, 3-B
 
Source: The Indian Express

DIRECTOR GENERAL OF POLICE (DGP)

 
 
 
1. Context
 
Recently, The Uttar Pradesh government appointed Director General (Law and Order) Prashant Kumar as its acting Director General of Police (DGP). He replaces Vijay Kumar, who too was an acting DGP, and is, in fact, the fourth such in a row over the past 20 months.
 

2. What is ‘acting’ DGP?

An "acting" DGP, or Director General of Police, is someone who temporarily holds the position of the head of a state or union territory's police force in India. An acting DGP is not appointed through the usual selection process and their tenure in the position is meant to be short-term, until a permanent DGP is chosen. This can last for weeks, months, or even longer, depending on the circumstances.

Reason for appointment: Several reasons can lead to the appointment of an acting DGP:

  • Retirement of the previous DGP: If the regular DGP retires, an acting DGP might be appointed until a new permanent head is selected and officially takes over.
  • Transfer or removal of the previous DGP: If the previous DGP is transferred to another position or removed due to performance issues or other reasons, an acting DGP may be chosen temporarily.
  • Delay in selecting a new DGP: Sometimes, the process of selecting a new permanent DGP can take longer than expected, leading to the appointment of an acting DGP in the interim.

Powers and responsibilities: Although not officially appointed, an acting DGP usually holds all the powers and responsibilities of a regular DGP. They oversee the state police force, make key decisions, and are accountable for maintaining law and order.

Currently, several states and union territories in India have acting DGPs, including Uttar Pradesh, which recently appointed its fourth acting DGP in a row. This practice raises concerns about transparency and stability in police leadership, and ongoing debates surround the use of acting DGPs versus appointing permanent heads through established procedures.

 

3. Who selects state DGP?

The selection process for a state DGP in India involves a collaboration between the state government and the Union Public Service Commission (UPSC):

State Government

  • Initiates the process by sending a list of five senior Indian Police Service (IPS) officers to the UPSC.
  • These officers must be eligible for promotion to the DGP rank based on seniority, service record, and experience.
  • Cannot directly appoint the DGP.

UPSC

  • Establishes an empanelment committee chaired by the UPSC Chairman.
  • Other members include the Union Home Secretary, the State Chief Secretary, the State DGP, and a Central Armed Police Force head nominated by the Ministry of Home Affairs.
  • Reviews the list of five officers and selects a panel of three based on merit and seniority.
  • Sends the panel back to the state government.

Final Selection

  • The state government must choose one of the three officers shortlisted by the UPSC.
  • They cannot bypass the panel and appoint someone else.
  • The chosen officer becomes the new DGP.

 

4. What is the minimum tenure of DGP?

There seems to be some confusion regarding the minimum tenure of DGPs in India. The situation is a bit complex due to different guidelines and interpretations

Officially stated minimum tenure

  • According to Section 6 of the Police Act, 1861, the Director General of Police (DGP) should have a minimum tenure of one year, subject to their normal date of superannuation.
  • However, this provision provides exceptions for transfers before the tenure ends under specific circumstances like proven misconduct, promotion, or public interest contingencies.

Emphasis on longer tenure

  • While the law states one year, several Supreme Court judgements and guidelines issued by UPSC highlight the importance of a minimum tenure of two years to ensure stability and continuity in police leadership.
  • The UPSC encourages states to choose DGPs with at least two years remaining in service and considers this factor during the selection process.

Current situation

  • In 2020, the Supreme Court issued guidelines emphasizing the need for stability and continuity in police leadership. As a result, two years became the recommended minimum tenure for DGPs.
  • The UPSC, responsible for DGP selection, also revised its guidelines in 2023 to align with the two-year minimum. This further strengthens the recommendation.
  • However, it's important to note that these are recommendations and not legally binding. Some states, like Punjab, have passed their own legislation aiming for independent appointment processes, potentially without the two-year minimum.
 

5. What role does the Supreme Court play in police reforms?

The Supreme Court of India plays a crucial role in police reforms, acting as a key driver for change and accountability. 

Issuing Directives

  • In 2006, the court issued a set of seven landmark directives based on the recommendations of police commissions. These directives focused on:
    • Reducing political interference: Establishing state security commissions and transparent appointment processes for DGPs.
    • Improving accountability: Setting up Police Complaints Authorities to investigate serious misconduct and ensuring minimum tenure for senior officers.
    • Enhancing professionalism: Separating investigation and law-and-order functions, and improving training and service conditions.

Monitoring Implementation: The court actively monitors the implementation of its directives through periodic hearings and status reports from state governments. It has held states accountable for non-compliance, sometimes even issuing contempt notices.

Highlighting Issues: The court takes suo motu (on its own motion) cognizance of issues related to police brutality, custodial deaths, and other human rights violations. It brings these issues to national attention and directs investigations or reforms as needed.

Interpreting Laws: The court interprets existing laws like the Criminal Procedure Code and the Police Act to ensure they are applied fairly and uphold fundamental rights.

Examples of Impact: The court's directives have led to the establishment of Police Complaints Authorities in most states, although their effectiveness varies. It has also influenced police training and recruitment practices, with a focus on human rights and community policing.

Challenges and Limitations

  • Despite the court's efforts, full implementation of its directives remains a challenge due to:
    • Resistance from state governments: Some states are reluctant to relinquish control over the police or invest in necessary reforms.
    • Lack of resources: Implementing reforms often requires funding for infrastructure, training, and personnel, which may be constrained.
    • Social and political complexities: Addressing issues like political interference and deep-rooted biases within the police system requires sustained efforts at various levels.
 
6. The Way Forward
 
The challenges in police leadership transition, the ambiguity in tenure guidelines, and the ongoing efforts by the Supreme Court underscore the need for comprehensive reforms in police administration. Striking a balance between stability and accountability remains crucial for ensuring effective law enforcement and safeguarding citizens' rights.
 
 
For Prelims: Director General of Police, Union Public Service Commission, Police Act, 1861
For Mains: 
1. Discuss the current selection process for state DGPs in India, highlighting the roles of the state government and the UPSC. Do you think this process guarantees merit-based appointments? What improvements, if any, would you suggest? (250 words)
 
Previous Year Questions
 
1. The Union Public Service Commission of India has been established under the Article ______ . (MP Patwari 2017) 
A. 315         B.  234            C. 421           D. 56
 
 
2. Read the following statements with reference to the Indian Councils Act (1861) and choose the correct option: (CGPSC 2022) 
(i) As a result of this Act, total members of the Executive Council of Governor-General became 7
(ii) For legislative work, the number of additional members could be a minimum of 6 and a maximum of 12
(iii) No differentiation was made between State and Central subjects
Which of the above statements is/are true?
A. (i), (ii) and (iii)     B.  (ii) and (iii)       C.  (i) and (iii)          D. Only (i)
 
Answers: 1-A, 2-B
 
Source: The Indian Express
 

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