Article 110 of the Constitution of India pertains to the definition and procedure of passing a Money Bill in the Parliament. According to this article, a Money Bill exclusively contains provisions dealing with all or any of the following matters:

1. The imposition, abolition, remission, alteration, or regulation of any tax.
2. The regulation of the borrowing of money by the Government of India, including the giving of any guarantee by the Indian government for the purpose of securing a loan or the repayment of any money borrowed by it.
3. The custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund.
4. The appropriation of moneys out of the consolidated Fund of India.
5. The declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure.
6. The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State.

A Money Bill can only be introduced in the Lok Sabha (House of the People), and it cannot be introduced in the Rajya Sabha (Council of States). The Rajya Sabha can only make recommendations on a Money Bill, and the Lok Sabha can either accept or reject these recommendations. The Rajya Sabha cannot amend a Money Bill, and if it is not returned by the Rajya Sabha within 14 days, it is deemed to have been passed by both houses

The decision regarding whether a bill is a Money Bill or not rests with the Speaker of the Lok Sabha (House of the People) in the Indian parliamentary system. As per Article 110 of the Indian Constitution, the Speaker is responsible for certifying whether a bill is a Money Bill or not.

Here is the process involved:

• Introduction in Lok Sabha: A bill is introduced in either the Lok Sabha or the Rajya Sabha. If it is introduced in the Lok Sabha and the Speaker is of the opinion that it exclusively deals with matters listed in Article 110, it may be certified as a Money Bill.

• Certification by the Speaker: The Speaker examines the provisions of the bill and determines whether it falls within the definition of a Money Bill as specified in Article 110. If the Speaker certifies it as a Money Bill, the bill is deemed to be so.

• Presentation to Rajya Sabha: After the Speaker's certification, the Money Bill is sent to the Rajya Sabha for its recommendations. However, the Rajya Sabha's powers regarding a Money Bill are limited. It can only make recommendations, and the Lok Sabha is not bound to accept them.

• President's Assent: Once the Lok Sabha passes the Money Bill, it is sent to the President for assent. The President's role is mostly formal, and the President cannot withhold assent to a Money Bill. If the President gives assent, the Money Bill becomes law

3. Formation of Northern Ireland

Northern Ireland's origins trace back to centuries of conflict and colonial rule, culminating in its establishment as a distinct region within the United Kingdom.

Early Settlement and Religious Conflict

Northern Ireland was historically part of the Ulster province, situated to the north of present-day Ireland. Tensions between Protestants and Catholics in the region date back to the 17th century, exacerbated by King James I's policy of encouraging Protestant migration to Ulster from England and Scotland. These tensions reflected broader religious conflicts engulfing Europe during this period.

Colonial Rule and Resistance

Under English rule, Ireland faced increasing resistance, particularly following the devastating Potato Famine of 1845, which exacerbated sectarian and religious divisions. The desire for independence intensified, leading to the Easter Rising of 1916, where Irish Republicans, notably the Irish Republican Army (IRA), rebelled against British colonial rule amidst the backdrop of World War I.

Establishment of Northern Ireland

Following a protracted struggle, the Anglo-Irish Treaty of 1921 granted Ireland independence from England but resulted in the partition of the island. Given the Protestant majority in Ulster, six of Ireland's 32 counties remained part of the United Kingdom, forming Northern Ireland. This division reflected the religious and sectarian demographics of the region, with Northern Ireland predominantly Protestant and the rest of Ireland predominantly Catholic.

Legacy and The Troubles

The partition of Ireland laid the groundwork for decades of conflict, notably the 30-year civil war known as "The Troubles" (1968-1998), characterized by violence and strife between Republicans (predominantly Catholic) and Unionists (predominantly Protestant). The Troubles claimed thousands of lives and entrenched divisions within Northern Ireland's society.

5. About the Good Friday Agreement

The Good Friday Agreement stands as a distinctive peace accord, addressing key demands from both Republican and Unionist factions while aiming to foster reconciliation in Northern Ireland.

Core Components

• Shared Governance: Central to the agreement is the principle of power-sharing, ensuring that the Northern Ireland government is formed by representatives of both Republicans and Unionists, with equal participation in governance.
• Reunification Referendum: The agreement allows for the possibility of Northern Ireland's reunification with Ireland through a referendum, granting citizens the right to determine their political future.
• Dual Nationality: Individuals in Northern Ireland are afforded the opportunity to claim Irish, British, or both nationalities, reflecting the diverse identities within the region.
• Border Abolishment: The agreement aimed to dismantle border checks between Northern Ireland and Ireland, promoting the free movement of people throughout the UK and Ireland.

Implementation Challenges

Despite the agreement's provisions, tensions from the conflict persist in Northern Ireland. The power-sharing mechanism has encountered obstacles, leading to the suspension of the Assembly on multiple occasions:

• 2000: The Assembly was suspended.
• 2001: Another suspension occurred.
• 2002-2007: Unionist withdrawal from the executive led to further instability.
• 2017-2020: Stormont faced another collapse.

Recent Challenges

In February 2022, the government once again collapsed as Unionists withdrew over disagreements regarding border controls between the UK and Northern Ireland, underscoring ongoing tensions and the fragile nature of the peace process.

• The appointment of Michelle O’Neill as Northern Ireland's first Nationalist First Minister marks a significant shift in the region's political dynamics, with implications for the potential reunification with Ireland. Despite O’Neill's optimistic outlook, the road to reunification faces hurdles.
• Ms O’Neill's assertion of being in a "decade of opportunity" hints at the possibility of a reunification referendum within the next ten years. This sentiment reflects the growing aspirations among Nationalists for Northern Ireland to join Ireland.
• However, the UK government, in a published paper, expressed scepticism about the feasibility of a united Ireland, citing recent polling data. This stance suggests that the UK does not see a realistic prospect of a reunification referendum leading to Northern Ireland's incorporation into Ireland.
• Similarly, Irish Prime Minister Leo Varadkar, while supportive of the idea of a united Ireland in principle, emphasized that the question of reunification is not an immediate priority. This cautious approach indicates that the Irish government is not actively pursuing reunification at present.

7.  The Way Forward

Northern Ireland stands at a crossroads, with opportunities for progress alongside persistent challenges. Navigating the complexities of power-sharing, Brexit-related tensions, and the aspiration for reunification requires sustained dialogue, compromise, and a commitment to the principles of peace and reconciliation embodied by the Good Friday Agreement.

Source: The Hindu

MINIMUM SUPPORT PRICE

1. Context

The Govt has proposed a solution involving cooperative societies like NAFED entering into five-year contracts with farmers, ensuring purchases at MSP without quantity limitations

2. What is the Minimum Support Price (MSP)?

• MSP is the minimum price a farmer must pay for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
• The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
• After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
• The Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.

The minimum support price (MSP) is set for 23 crops every year. They include:

• 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
• 5 pulses (chana, tur/arhar, moong, urad, and Masur)
• 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and Enigerseed) and
• 4 commercial crops (sugarcane, cotton, copra, and raw jute).

3. How MSP is Calculated?

• MSP, presently, is based on a formula of 1.5 times the production costs.
• The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
• A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
• A2+FL includes A2 plus an imputed value of unpaid family labour.
• C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
• Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.

4. The issue with the calculation of MSP

• To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
• For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
• The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.

5. Key Points about the Farmer's Demand

• After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
• They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
• Legalising MSPs would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
• At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
• The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
• Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.

6. The rationale behind the demand for legislation of MSP

• Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
• Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.

7. Challenges associated with MSP

• Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reform laws.
• MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
• High Input Costs: The input costs have been rising faster than sale prices, squeezing the meagre income of the small farmers and driving them into debt.
• Lack of Mechanism: No mechanism guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
• Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.

 

For Prelims: Minimum Support Price, Rabi Crops, WTO, Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India For Mains: 1. Explain the concept of Minimum Support Price (MSP) in India. How is MSP determined, and what is its role in ensuring fair prices for agricultural produce? (250 Words)

 

 

Previous Year Questions   1. Consider the following statements: (UPSC CSE 2020) 1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. 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: D   2. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020) (1) Minimum Support Price (2) Government’s trading (3) Government’s stockpiling (4) Consumer subsidies Select the correct answer using the code given below: (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4   Answer: D   3. In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020) (1) Fixing Minimum Support Price for agricultural produce of all crops (2) Computerization of Primary Agricultural Credit Societies (3) Social Capital development (4) Free electricity supply to farmers (5) Waiver of agricultural loans by the banking system (6) Setting up of cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6   Answer: C   4. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015) (a) Cabinet Committee on Economic Affairs (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee   Answer: A

 

FINANCIAL BILL VS MONEY BILL 

1. Context 

Even as a five-judge bench of the Supreme Court struck down the electoral bonds scheme as unconstitutional on Thursday, it saved one aspect of the challenge for another day and a larger bench – the issue of the government using the money Bill route to bring in the laws that introduced the electoral bonds.

2. About Finance Bill and Money Bill

• A Finance Bill is a type of Financial Bill that deals with revenue and expenditure matters.
• A Money Bill, as defined in Article 110, exclusively pertains to specific subjects like taxes, borrowing, and expenditure from the Consolidated Fund of India.
• The President's recommendation is required to introduce a Finance Bill that deals with matters specified in Article 110(1) (a) to (f), and it can only be introduced in the Lok Sabha.

3. Difference Between Money Bills and Financial Bills

• Origin: Money Bills can only be introduced in the Lok Sabha, while ordinary Financial Bills can be introduced in either House.
• President's Recommendation: Money Bills require the President's recommendation for introduction, while ordinary Financial Bills do not need such recommendation.
• Rajya Sabha's Role: For Money Bills, the Rajya Sabha has a recommendatory role and must return the Bill with recommendations within 14 days. The Lok Sabha can reject these recommendations. In contrast, ordinary Financial Bills can be rejected or amended by the Rajya Sabha.
• Joint Sitting: A joint sitting of both Houses can be summoned by the President to resolve differences over an ordinary Bill, but no such provision exists for Money Bills.

4. Court's Views on Money Bills

• In November 2019, a five-judge Constitution Bench struck down amendments to the 2017 Finance Act, passed as a Money Bill, for altering the structure and functioning of tribunals.
• The court directed the formulation of fresh norms for appointing tribunal members.
• The court referred the issue of whether the amendments could have been passed as a Money Bill to a seven-judge bench for consideration.

5. Doubts Over Aadhaar Act Passed as a Money Bill

• The 2018 verdict upholding the 2016 Aadhaar Act, passed as a Money Bill, came under scrutiny.
• The Bench expressed doubts over the correctness of the previous ruling and its application to the present case.
• CJI Chandrachud, a dissenting judge in the 2018 Aadhaar ruling, criticized the government for passing the Act as a Money Bill, calling it a "fraud on the Constitution."
• Petitions seeking a review of the Aadhaar Act ruling are still pending in the Supreme Court.

6. The Way Forward

• Understanding the distinctions between Money Bills and other Financial Bills is crucial in the Indian legislative process.
• While Money Bills have a restricted role for the Rajya Sabha, other Financial Bills require agreement from both Houses.
• The Supreme Court's recent views on the Aadhaar Act and the Finance Act have added further complexity to the discussion on the appropriate use of the Money Bill route for specific legislation.

For Prelims: Money Bill, Financial Bill, Aadhaar Act, Lok Sabha, Rajya Sabha, Finance Act, Supreme Court,  For Mains:  1. What are the constitutional safeguards in place to prevent misuse of the Money Bill? Critically assess the mechanisms to ensure that only appropriate bills are categorized as Money Bills. (250 Words)

 

 

Previous Year Questions   1. Regarding Money Bill, which of the following statements is not correct? (UPSC 2018) 1.  A bill shall be deemed to be a money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax. 2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India. 3. A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India. 4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.   Answer: 3   2. Consider the following statements: (UPSC 2018)  1. Aadhaar card can be used as a proof of citizenship or domicile. 2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority. 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: D   3. Consider the following statements: (UPSC 2015) 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha cannot vote on the Demands for Grants. 3. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?  A. 1 only           B. 1 and 2 only        C. 2 and 3 only              D. 1, 2 and 3   Answer: B   4. With reference to the Indian judiciary, consider the following statements: (UPSC 2021) 1. Any retired judge of the Supreme Court of India can be called back to sit and act as a Supreme Court judge by the Chief Justice of India with the prior permission of the President of India. 2. A High Court in India has the power to review its own judgement as the Supreme Court does. 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: C

 

 Source: The Indian Express

 

HUMAN AND ANIMAL CONFLICT

 

 

 

1. Context

 

The increased area under cultivation, changing cropping patterns, significant increase in the population of animals due to conservation efforts, and movement of livestock and humans in wildlife habitats during odd hours are the main reasons for the rise in human-wildlife conflict incidents

 

2. What is a Human and Animal Conflict?

 

Human-animal conflict refers to the interactions and conflicts that arise between humans and wildlife when their interests and activities overlap. This conflict often occurs when human activities and development encroach upon natural habitats, leading to increased contact and competition for resources between humans and animals. The consequences of human-animal conflict can be detrimental to both parties and may include economic losses, damage to property, injury, and loss of life for both humans and animals.

Common scenarios of human-animal conflict include:

• Crop Raiding: Wild animals may enter agricultural fields and damage crops, leading to economic losses for farmers.

• Livestock Predation: Predatory animals may attack and kill domesticated animals, such as cattle, sheep, or poultry, causing financial losses for livestock farmers.

• Urban Encroachment: As human populations expand and urban areas expand into natural habitats, animals may find themselves in close proximity to human settlements, leading to conflicts over space and resources.

• Road Accidents: Animals crossing roads, especially in areas near forests or wildlife habitats, can lead to collisions with vehicles, resulting in injuries or fatalities for both humans and animals.

• Attacks on Humans: In some cases, wild animals may perceive humans as a threat and may attack, leading to injuries or fatalities.

• Conservation Challenges: Human-animal conflict can pose challenges for wildlife conservation efforts, as negative interactions with humans may lead to retaliation against wildlife, posing a threat to endangered species

3. What are the reasons for the increase in human-wildlife conflict?

 

Experts attribute the surge in incidents of human-wildlife conflict to various factors, including the expansion of cultivated areas around wildlife habitats, alterations in cropping patterns, a notable rise in the populations of animals like elephants and tigers resulting from conservation initiatives, and the movement of livestock and humans into wildlife habitats during unconventional hours. Additionally, there has been a significant upturn in the populations of prolific breeders such as wild boars and peacocks.

Notably, the increased frequency of conflicts involving elephants is primarily attributed to habitat depletion and fragmentation caused by human activities. Furthermore, the invasion of alien species has diminished the availability of food and water, while the cultivation of monoculture species like eucalyptus and acacia has adversely impacted plant biodiversity

4. Kerala State vs Human and Animal Conflict

• Approximately 30% of Kerala's land area is covered by forests. Given the relatively small size of the state, with an average width of approximately 70 km and a population exceeding 3.46 crore, numerous densely populated human settlements are situated in close proximity to protected forest regions.
• Additionally, many agricultural plantations are located near wildlife habitats, particularly in hilly areas, including the heavily forested eastern part of the state. While this geographical arrangement inevitably results in human-animal conflict, Kerala has experienced a notable surge in such incidents in recent years.
• Residents living near the fringes of forests have suffered substantial financial losses to their livelihoods, primarily due to frequent raids by elephants and wild boars. Since 2015, over 600 people in Kerala have lost their lives in conflicts with animals.
• This has triggered protests among affected villagers, some of which have escalated into open confrontations between protesters and officials from the State Forest department
• According to a study conducted by the State Forest department, Kerala experienced human-wildlife conflicts in 1,004 areas.
• The study documented more than 48,000 incidents of crop damage from 2013-14 to 2018-19. Among the 35 forest and wildlife divisions in the state, Nilambur north (94), Wayanad south (92), and Wayanad north (70) forest ranges reported the highest numbers of major conflict locations.
• The State recorded the highest number of incidents involving wild elephants, accounting for 14,611 occurrences between 2013-14 and 2018-19. Other contributors to these incidents include wild boars (5,518), bonnet macaques (4,405), and snakes (2,531).
• Elephants, bonnet macaques, and wild boars have caused significant damage to farmers living in forest fringe areas. Herbivores like sambar, spotted deer, and gaur have also played a considerable role in crop damage.
• The study reported a total of 814 livestock animals, including cattle, buffalo, and goats, being killed or injured in such attacks, with tigers preying on 420 of these animals

5.What are the reasons for the increase in human-wildlife conflict?

 

• Experts attribute the escalation in human-wildlife conflict incidents to several factors, including the expansion of cultivated areas surrounding wildlife habitats, alterations in cropping patterns, a notable rise in the populations of animals like elephants and tigers resulting from conservation efforts, and the movement of livestock and humans into wildlife habitats during unconventional hours.
• Additionally, there has been a significant upturn in the populations of prolific breeders such as wild boars and peacocks.
• However, the increased frequency of conflicts involving elephants can be traced to habitat depletion and fragmentation caused by human activities. Furthermore, the presence of invasive alien species has diminished the availability of food and water. The cultivation of monoculture species like eucalyptus and acacia has also had adverse effects on plant biodiversity

6.What are the proposed solutions and why are they not effective?

 

• Elephant-resistant trenches and solar-powered fences are commonly employed in Kerala and are generally deemed effective, provided they receive proper maintenance. However, there are several areas where these protective measures have not been implemented.
• Additionally, nearby residents often break these fences to allow their cattle to graze in the forests, and elephants themselves may damage the fences using their legs and tusks.
• In a master plan costing ₹620 crores to address this issue, the Forest department proposes the installation of elevated power fences that are beyond the reach of elephants.
• Furthermore, as part of the State government's new eco-restoration policy, the Forest department aims to plant suitable indigenous vegetation (wild mango, wild gooseberry, and wild jackfruit) in the forests to ensure food security for wild animals and discourage them from entering agricultural lands.
• Complementary measures include establishing early warning systems that utilize drones and human observers to track the movement of elephants and other dangerous animals, allowing people to avoid areas where they have been spotted. However, the widespread implementation of such warning mechanisms is lacking in Kerala.
• On the contrary, these measures are not effective against wild boars. Despite Kerala's request to declare wild boars as vermin still pending with the Centre, the State government has recently granted local bodies the authority to cull wild boars that pose threats to agricultural crops or human life.
• Other alternatives include capturing and neutering the boars or relocating them to forests where predators like tigers and leopards are present

7.How is human-animal conflict connected to the ESZ norm?

 

Human-animal conflict is connected to the concept of Ecologically Sensitive Zones (ESZ) norms through the need to establish buffer areas around protected areas, wildlife habitats, and other ecologically sensitive zones. ESZ norms are guidelines and regulations aimed at minimizing human disturbances and activities that could negatively impact biodiversity and ecosystems in designated areas. These zones are established to create a buffer between human settlements and wildlife habitats, reducing the chances of conflict between humans and animals.

Here's how human-animal conflict is connected to ESZ norms:

• Buffer Zones: ESZ norms often define buffer zones around national parks, wildlife sanctuaries, and other ecologically sensitive areas. These buffer zones act as a transitional space to mitigate the impacts of human activities on wildlife and vice versa.

• Land Use Planning: ESZ norms include regulations related to land use planning around protected areas. By controlling and guiding developmental activities in these zones, there is an attempt to minimize disturbances to wildlife and their habitats, consequently reducing the likelihood of conflict.

• Wildlife Corridors: ESZ norms may address the creation and preservation of wildlife corridors, which are crucial for the movement of animals between different habitats. Ensuring the connectivity of habitats helps in preventing isolated populations, which can lead to increased interactions and conflicts with humans.

• Conservation Measures: ESZ norms may include measures to conserve and restore natural habitats. By maintaining the integrity of these habitats, the likelihood of wildlife straying into human-dominated landscapes in search of food or suitable habitat is reduced.

• Community Engagement: Some ESZ norms encourage community engagement and participation in conservation efforts. Involving local communities in wildlife conservation can lead to better understanding and cooperation, reducing conflicts by promoting coexistence

 

Previous Year Questions   1.Consider the following statements in respect of Trade Related Analysis of Fauna and Flora in Commerce (TRAFFIC): (UPSC CSE 2017) TRAFFIC is a bureau under United Nations Environment Programme (UNEP). The mission of TRAFFIC is to ensure that trade in wild plants and animals is not a threat to the conservation of nature. Which of the above statements is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer: (b)

 

Source: The Hindu

 

16TH FINANCE COMMISSION

1. Context

Dr Arvind Panagariya, the Chairman of the 16th Finance Commission, speaks to Harikishan Sharma on the economy and the reform agenda he would like to see implemented by the new government

2. Finance Commission

• The Finance Commission is a crucial constitutional body in India responsible for the distribution of financial resources between the central government and the state governments.
• It plays a vital role in maintaining fiscal federalism by ensuring a fair and equitable distribution of financial revenues and grants-in-aid among the various tiers of government.
• The Finance Commission is set up every five years, or at such earlier intervals as the President of India may decide, as per Article 280 of the Indian Constitution.
• It consists of a Chairman and four other members, each appointed by the President. These members are experts in the fields of economics, finance, and public administration.

3. Mandate and Functions

• The primary objective of the Finance Commission is to make recommendations to the President regarding the distribution of the net proceeds of taxes between the Union (central government) and the states, and the allocation of resources among the states.
• It also suggests measures to improve the financial position of the states, if necessary. The Commission's recommendations are aimed at addressing regional imbalances and ensuring the overall economic development of the country.

4. The specific functions of the Finance Commission include

• Tax Revenue Sharing: The Commission reviews the trends in revenue collections and recommends the percentage of the divisible pool of taxes that should be shared with the states. The divisible pool includes taxes like income tax, corporate tax, and excise duty.
• Grants-in-Aid: Besides the devolution of taxes, the Finance Commission also suggests grants-in-aid to states to support their financial requirements for various developmental projects and schemes.
• Debt Relief: The Commission may recommend measures to provide relief to states facing a high burden of debt, thereby promoting fiscal discipline.
• Macro-Fiscal Management: It examines the overall financial situation of the country and suggests measures to maintain macroeconomic stability.
• Any Other Matter: The President may also refer specific matters to the Commission for examination and recommendations.

5. Process of Working

• The Finance Commission follows a consultative process while formulating its recommendations.
• It seeks input from various stakeholders, including the central and state governments, local bodies, financial experts, and economists.
• The Commission examines historical data, financial indicators, and the needs of states to arrive at a comprehensive and objective assessment.
• After conducting detailed studies and consultations, the Commission submits its report to the President.
• The recommendations of the Finance Commission are ordinarily binding in nature, and both the central and state governments are expected to implement them. However, their acceptance depends on the discretion of the central government.

6. Importance

• The Finance Commission is crucial in maintaining the federal structure of India and ensuring that all states receive adequate financial support for their development.
• By promoting equitable distribution of resources, helps in reducing regional disparities and fostering balanced economic growth across the country.
• The Commission's recommendations also play a vital role in shaping the fiscal policies of both the central and state governments.

7. Recommendations of the Previous Finance Commission

13th Finance Commission Recommendations:

• Increase the number of court working hours using existing infrastructure.
• Enhance support to Lok Adalats.
• Provide additional funding to State Legal Services Authorities to enhance legal aid for the marginalized.
• Promote the use of Alternative Dispute Resolution (ADR) mechanisms.
• Enhance the capacity of judicial officers and public prosecutors through training programs.
• Support the creation of a judicial academy in every state for training purposes.
• Allocate funds for the setting up of specialized courts.

14th Finance Commission's Recommendations:

• Raised states' share in the divisible pool of central taxes to 42%
• Revised to 41% after the number of states reduced to 28
• The withdrawal of Planning Commission grants helped manage the situation

15th Finance Commission Recommendations:

• Gather quantifiable data on the level of various services available in different states.
• Collect corresponding unit cost data to estimate cost disabilities among states.
• Fill gaps in statistical data through the efforts of the Ministry of Statistics.

8. Need for realistic expectations regarding  the following 16th Finance Commission

• Acknowledging Implementation Challenges: Recognize the challenges and complexities involved in implementing Finance Commission recommendations, such as coordination issues, administrative capacity, and resistance to change. This understanding will help shape realistic expectations and strategies for addressing these challenges.
• Strengthening Implementation Mechanisms: Focus on improving the implementation mechanisms and processes. This includes enhancing coordination and cooperation between the Union and state governments, strengthening administrative capacity at all levels, and streamlining the implementation of conditionalities to facilitate smoother execution.
• Robust Monitoring and Evaluation: Establish effective monitoring and evaluation mechanisms to track the progress and outcomes of implemented reforms. Regular assessment will help identify implementation gaps and provide opportunities for course correction and improvement.

For Prelims: Finance Commission, Article 280, Fiscal Consolidation, Fiscal Federalism, and Alternative Dispute Resolution (ADR) mechanism. For Mains: 1. Discuss the Role and Challenges of the Finance Commission in Promoting Fiscal Federalism and Ensuring Equitable Resource Distribution in India. (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   3. Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? (UPSC 2012) 1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design. 2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend. 3. Devolution of a specified share of central taxes to local bodies as grants 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: C

 Source: The Hindu