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DAILY CURRENT AFFAIRS, 13 DECEMBER 2024

RETAIL INFLATION

 

1. Context

India’s retail inflation cooled slightly to 5.5% in November from a 14-month high of 6.2% in October, but remained significantly elevated for rural consumers at 5.95%, while dropping to 4.8% for their urban counterparts.

2. What is Inflation?

  • It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
  • In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
  • Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.

3. Retail Inflation

Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.

4. How Inflation is measured?

  • In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
  • The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
  • On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
  • Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India. 

5. What is the Inflation Target?

  • Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
  • Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
  • On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
  • Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

6. Monetary Policy Committee (MPC)

  • The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
  • It was created to bring transparency and accountability in deciding monetary policy.
  • MPC determines the policy interest rate required to achieve the inflation target.
  • The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
  • The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.

7. What Caused the drop in Inflation?

  • Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
  • The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
  • With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
  • Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.

8. Recent Measures by the Government

To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.

For Prelims & Mains

 

For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation

For Mains: 
 1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements:  (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct? 
A. 1 and 2 only    B.  2 and 3 only     C. 1 and 3 only     D. 1, 2 and 3
 
 
2. Concerning the Indian economy, consider the following: (UPSC 2015)
  1. Bank rate
  2. Open Market Operations
  3. Public debt
  4. Public revenue

Which of the above is/are component(s) of Monetary Policy?

(a) 1 only   (b) 2, 3 and 4    (c) 1 and 2     (d) 1, 3 and 4

 

3. An increase in Bank Rate generally indicates: (UPSC 2013)

(a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
 

4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 

1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

A. 1 only      B.  1 and 2 only      C. 3 only      D. 2 and 3 only

 
5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only        B. 2 only           C. Both 1 and 2         D.  Neither 1 nor 2
 
 
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
 
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015) 
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
 
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only     B.  2 only        C. 2 and 3 only        D. 1, 2 and 3
 
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
 
 
Source: The Hindu
 

GRADED RESPONSE ACTION PLAN(GRAP)

 

1.Context

The Supreme Court allowed the relaxed levels of stage two of Graded Response Action Plan (GRAP) in the National Capital Region (NCR) to continue after being assured that pollution was largely under control

2.What is a Graded Response Action Plan (GRAP)

In 2014, when a study by the WHO found that Delhi was the most polluted city in the world, panic spread in the center and the state government. Approved by the supreme court in 2016, the plan was formulated after several meetings that the Environmental Pollution (Prevention and Control) Authority (EPCA) held with state government representatives and experts. The result was a plan that institutionalized measures to be taken when air quality deteriorates.
The plan was notified by the Ministry of Environment, Forests & Climate change in 2017.
GRAP works only as an emergency measure.
 
It institutionalized measures to be taken when air quality deteriorates.
1. The plan is incremental- therefore, when the air quality moves from 'poor' to 'very poor, the measures listed under both sections have to be followed.
2. It prevents PM10 and PM2.5 levels from going beyond the 'moderate' national AQI category.
 
Authorities from both Haryana and UP had informed EPCA at the time that they would put in the required measures by winter 2020 for the supply of electricity from the grid.

3.Has GRAP Helped?

  • The biggest success of GRAP has been in fixing accountability and deadlines.
  • For each action to be taken under a particular air quality category, executing agencies are marked.
  • In a territory like Delhi, where a multiplicity of authorities has been a long-standing impediment to effective governance, this step made a crucial difference.

4.Measures that are taken in other states

  • one criticism of the EPCA, as well as GRAP, has been the focus on Delhi. While other states have managed to delay several measures, citing a lack of resources, Delhi has always been the first to have stringent measures enforced.
  • When the air quality shifts from poor to very poor, the measures listed under both sections have to be followed since the plan is incremental in naturality reaches the severe+ stage, GRAP talks about shutting down schools and implementing the odd-even road-space rationing scheme. 

5.Actions under GRAP

Severe+ or Emergency
(PM 2.5 OVER 300 300 µg/cubic metre or PM10 over 500µg/cu. m. for 48+ hours)
  • Stop construction work.
  • Stop entry of trucks into Delhi.
  • Introduce odd/even schemes for private vehicles and minimize exemptions.
  • Taskforce to decide any additional steps including shutting schools to stop.

Severe
(PM 2.5 OVER 250µg/cu. m. or PM10 over 430 µg/cu. m. )
  • Maximize power generation from natural gas to reduce generation from coal.
  • Close brick kilns, hot mix plants, and stone crushers.
  • More frequent mechanized cleaning of roads and sprinkling of water.

Very Poor
(PM2.5 121-250 µg/cu. m. or PM10 351-430 µg/cu.m. )
  • Increase bus and metro services.
  • Stop the use of diesel generator sets.
  • Enhance parking fee by 3-4 times.
  • Apartment owners discourage burning fires in winter by providing electric heaters during winter.
  • Advisories to people with respiratory and cardiac conditions to restrict outdoor movement.

Moderate to Poor
(PM2.5 61-120 µg/cu. m. or PM10 101-350 µg/cu. m.)
  • Close/enforce pollution control regulations in brick kilns and industries.
  • Heavy fines for garbage burning.
  • Mechanized sweeping on roads with heavy traffic and water sprinkling.
 

For Prelims and Mains

For Prelims: Graded Response Action Plan, National Capital Region (NCR),Environmental pollution(prevention control)Authority (EPCA).
For Mains:
1. What is GRAP? What is the Delhi-NCR action plan as air pollution increases? (250 words). 
 
 
 
SOURCE: The Indian Express
 

COASTAL REGULATION ZONE 

 
 

1.Context

The Comptroller and Auditor General (CAG) of India has highlighted significant delays, violations, and lapses in the enforcement of the Coastal Regulation Zone (CRZ) Notification, 2011, in Tamil Nadu

2.Coastal regulation Zone (CRZ)

 

The Coastal Regulation Zone (CRZ) refers to the coastal stretches of India and their associated ecosystems, including the shorelines, estuaries, creeks, bays, and rivers influenced by tidal action. To regulate human activities in these sensitive areas and protect coastal ecology, the Ministry of Environment, Forest, and Climate Change (MoEFCC) introduced the CRZ Rules under the Environment Protection Act, 1986.
The states are also supposed to frame their own coastal zone management plans by the central Rules.

3.The CRZ Rules 

  • CRZ Rules govern human and industrial activity close to the coastline, to protect the fragile ecosystems near the sea.
  • The Rules, mandated under the Environment Protection Act, 1986, were first framed in 1991.
They sought to restrict certain kinds of activities, like large constructions, setting up of new industries, storage or disposal of hazardous material, mining or reclamation and bunding, within a certain distance from the coastline.
 
  • The basic idea is: because areas immediately next to the sea are extremely delicate, home to many marines and aquatic life forms, both animals and plants and are also threatened by climate change, they need to be protected against unregulated development.
In all CRZ Rules, the regulation zone has been defined as the area up to 500 m from the high-tide line.
Several kinds of restrictions apply, depending on criteria such as the population of the area, the ecological sensitivity, the distance from the shore and whether the area had been designated as a natural park or wildlife zone.

4.1991 Rules 

  • Despite several amendments, states found the 1991 Rules to be extremely restrictive.
  • They complained that if applied strictly, the Rules would not allow simple things like building decent homes for people living close to the coast and carrying out basic developmental works.
  • The 1991 Rules also created hurdles for showpiece industrial and infrastructure projects such as the POSCO steel plant in Odisha and the proposed Navi Mumbai airport in the first decade of the new century.

5.Evolution of Rules 

  • The Centre notified fresh CRZ Rules in 2011, which addressed some concerns.
  • An exemption was made for the construction of the Navi Mumbai airport. (The POSCO Project had failed to take off due to other reasons).
  • Projects of the Department of Atomic Energy plans to set up nuclear power plants near the coast were exempted.

6.Shailesh Nayak Committee

  • After even these Rules were found inadequate, however, the Environment Ministry 2014 set up a six-member committee under then Earth Sciences Secretary Shailesh Nayak to give suggestions for a new set of CRZ Rules. The committee submitted its report in 2015.
  • Simultaneously, the Chennai-based National Centre for Sustainable Coastal Management defined a new high-tide line along India's entire coastline to remove ambiguities.
  • Separately, the Survey of India defines a hazard line along the coasts to be used mainly for disaster management planning.

7.2018 CRZ Rules 

Based on these and other inputs, the Environment Ministry issued fresh CRZ Rules in December 2018, which removed certain restrictions on buildings, streamlined the clearance process and aimed to encourage tourism in coastal areas.

The Current situation 

In January, the government notified new CRZ Rules with the stated objectives of promoting sustainable development and conserving coastal environments.
 
CRZ-III (Rural) 
For the so-called CRZ-III (Rural) areas, two separate categories have been stipulated.

CRZ-IIIA

In the densely populated rural areas (CRZ-IIIA) with a population density of 2,161 per sq km as per the 2011 Census, the no-development zone is now 50 m from the high-tide level, as against the 200 m stipulated earlier.

CRZ-IIIB

  • The CRZ-IIIB category (rural areas with population density below 2, 161 per sq km) continues to have a no-development zone extending up to 200 m from the high-tide line.
  • The new Rules have a no-development zone of 20 m for all islands close to the mainland coast and all backwater islands on the mainland.

8.Cases in Kerala

  • There have been cases of courts in Kerala ordering the demolition of resorts or apartments for violating CRZ norms earlier.
  • But stakeholders have either obtained stays or have got relief in the Supreme Court.
  • In 2014, a Single Bench of Kerala High Court ordered the demolition of a waterfront residential complex of DLF in Kochi
    A Division Bench cancelled the demolition order but fined the builder Rs 1 crore.
  • After KCZMA appealed, the Supreme Court in January 2018 upheld the verdict of the Division Bench.
  • In 2013, the High Court ordered a Rs 350 crore resort in Alappuzha pulled down.
  • The order was stayed by the Supreme Court.
  • Kochi's Lakeshore Hospital was in the Dock for violating CRZ norms.
  • But in 2003, the project got a breather from the High Court, which dismissed a public interest plea that had come after the construction had been completed.
  • Some 26 resorts and hotels on Thiruvanathapuram's Kovalam beach have been served notices for violations of CRZ Rules.
  • In the Kochi Municipal Corporation area, 35 violations have been reported.

For Prelims & Mains

For Prelims: Coastal Regulation Zone Rules, Shailesh Nayak Committee, CRZ violations in Kerala.
For Mains: Define CRZ rules and Critically analyse them (250 words)
 
Source: The Indian Express 

URBAN LOCAL BODIES

 
 
 
 
 
1. Context
 
 
Urban local governments (ULGs) function as units of decentralised local self-governance, and are responsible for delivering civic services at the first mile, ensuring quality of life for citizens. The 74th Constitutional Amendment Act (CAA) was introduced in 1992 to codify this role of ULGs
 
 
2. About Urban Local Bodies (ULBs)
 

Urban Local Bodies (ULBs) in India are institutions of local self-government that are responsible for the administration of urban areas. These bodies play a crucial role in local governance and are instrumental in the development and management of cities and towns.

The Evolution of Urban Local Bodies in India
 
  • Ancient Roots: The seeds of ULBs were sown in India's ancient past. Cities like Pataliputra and Mohenjo-daro thrived under councils or committees of citizens who oversaw public order, trade, and essential services like water and sanitation. These early forms of local governance laid the foundation for future ULBs.
  • Colonial Legacy: The British Raj brought a formal system of local self-government to India, with elected municipal councils established in major cities. Madras (now Chennai) became the first with its municipal corporation in 1688. While this system offered a framework, it often lacked autonomy and true democratic representation.
  • Post-Independence Evolution: After India's independence, the ULB system continued, but with significant modifications. The Constitution, through the 74th Amendment in 1992, cemented their status as a distinct tier of government, empowering them with greater autonomy and mandating their establishment through state-specific laws.
  • Modern-Day ULBs: Today, ULBs play a multifaceted role in urban India. Their functions encompass crucial areas like urban planning and development, waste management, ensuring clean water supply, and managing efficient transportation systems. This diverse portfolio underscores the importance of ULBs in driving sustainable urban growth and enhancing citizen well-being.

 

The structure of ULBs

 

The structure of ULBs may vary across states, but they generally fall into three main categories:

  • Municipal Corporation: Municipal Corporations are established in larger urban areas. They have a mayor-council form of governance. The mayor is the elected head of the corporation, and the council consists of elected members representing different wards. Municipal Corporations have a wide range of functions, including urban planning, public health, water supply, waste management, education, and infrastructure development.
  • Municipal Council: Municipal Councils are established in smaller urban areas. They have elected members, including a chairperson. The structure may vary, with some councils having a municipal commissioner as an executive head. Municipal Councils perform functions similar to Municipal Corporations but are tailored to the scale and needs of smaller urban areas.
  • Nagar Panchayat: Nagar Panchayats are established for transitional areas, emerging towns, or areas in transition from rural to urban. They have elected members and a chairperson. Nagar Panchayats focus on basic civic amenities and services, and their functions may include sanitation, water supply, and street lighting.
 

3. Constitutional and Legal Provisions Governing Urban Local Bodies (ULBs) in India

 

Constitution of India: Part IXA and 12th Schedule

  • Article 243-P: Deals with the composition of municipalities at the district and metropolitan levels.
  • Article 243-Q: Addresses the reservation of seats for scheduled castes and scheduled tribes in municipalities.
  • Article 243-R: Specifies the duration of municipalities.
  • Article 243-S: Discusses the dissolution of municipalities.
  • Article 243-T: Outlines the powers, authority, and responsibilities of municipalities.
  • Article 243-U: Enlists the functions that municipalities are authorized to perform.
  • Article 243-V: Pertains to the constitution of state finance commissions responsible for reviewing the financial position of municipalities.

State Municipal Acts: Each state in India has its own Municipal Act, providing a comprehensive legal framework for the functioning of ULBs within that state. These acts define the structure, composition, powers, functions, administration, and financing mechanisms of ULBs.

The Metro Railways (Construction of Works) Act, 1978: This Act addresses the construction and maintenance of rapid transit systems in metropolitan cities across India. It establishes provisions for the creation of a Metro Railways Administration tasked with overseeing the construction and operation of these transit systems.

 

4. Functions of Urban Local Bodies in India

 

Basic Amenities and Services

  • Water Supply and Sanitation: Ensuring access to clean drinking water and proper sanitation facilities is a top priority for ULBs. They handle water treatment and distribution, sewerage systems, drainage, and waste management.
  • Public Health: ULBs are responsible for maintaining public health standards through initiatives like immunization programs, healthcare infrastructure development, and disease prevention measures.
  • Street Lighting and Maintenance: ULBs ensure proper lighting and cleanliness of streets, roads, and public spaces for safety and aesthetics.
  • Public Transportation: ULBs may manage public bus systems, rickshaws, and other forms of local transport to provide efficient and affordable mobility options.

Urban Planning and Development

  • Land Use Planning: ULBs prepare and implement master plans for urban development, including zoning regulations, land use allocation, and infrastructure development plans.
  • Building Permits and Construction: ULBs grant building permits, regulate construction activities, and ensure adherence to building codes for safe and sustainable urban development.
  • Parks and Recreation: ULBs create and maintain parks, gardens, playgrounds, and other recreational spaces for the well-being of citizens.
  • Slum Improvement and Redevelopment: ULBs address challenges like slums and urban poverty through improvement programs, infrastructure upgrades, and relocation projects.

Social Welfare and Education

  • Primary Education: ULBs may manage primary schools, libraries, and other educational facilities within their jurisdiction.
  • Social Welfare Programs: ULBs implement government programs for poverty alleviation, social welfare schemes for marginalized groups, and support for vulnerable populations.
  • Community Development: ULBs promote community engagement through initiatives like cultural events, sports activities, and citizen participation programs.
  • Disaster Management: ULBs prepare for and respond to natural disasters and emergencies, ensuring public safety and minimizing damage.

Financial Management and Revenue Generation

  • Local Taxes and Fees: ULBs levy property taxes, user charges for services like water and sanitation, and other fees to generate revenue for their operations.
  • Government Grants and Funding: ULBs receive grants from central and state governments for specific development projects and programs.
  • Public-Private Partnerships: ULBs may collaborate with private companies to develop infrastructure, manage services, and attract investments for urban development.

Transparency and Accountability

  • Public Meetings and Grievance Redressal: ULBs hold public meetings, maintain transparency in their decision-making processes, and establish grievance redressal mechanisms for citizen concerns.
  • Right to Information Act: ULBs are obligated to provide information to citizens under the Right to Information Act, promoting transparency and accountability.
  • E-Governance Initiatives: ULBs are increasingly adopting e-governance solutions for online service delivery, permit applications, and citizen engagement to enhance efficiency and accessibility.

 

5. Sources of Revenue for Urban Local Bodies

 

  • Property Tax: A tax on the value of properties within the jurisdiction of the ULB.
  • User Charges: Fees for services such as water supply, sewerage, and solid waste management.
  • Professional Tax: A tax on the income earned by individuals engaged in various professions.
  • Grant-in-Aid: Financial assistance provided by the state and central governments.
  • Development Charges: Fees levied for allowing construction and development activities.
  • License Fees: Charges for licenses issued for various commercial activities.

 

6. Challenges Faced by Urban Local Bodies (ULBs) in India

 
  • Limited Financial Resources: ULBs often grapple with limited revenue-raising powers, resulting in insufficient funds for essential services and infrastructure development. Low levels of tax collection and revenue generation contribute to financial constraints.
  • Lack of Autonomy: ULBs frequently lack autonomy in decision-making processes, relying on state governments for financial and administrative support. Dependence on higher authorities can hinder prompt responses to local needs and demands.
  • Ambiguity of Functional Domain: Some states witness ambiguity in defining the functional domain of ULBs and parastatal bodies, creating confusion and hindering effective municipal governance.
  • Limited Human Resources: Shortages of skilled and qualified personnel within ULBs impact their ability to efficiently execute tasks and deliver services. Insufficient manpower can be a barrier to effective urban governance.
  • Poor Infrastructure: Many ULBs face challenges related to inadequate infrastructure, including deficient road networks, water supply systems, and sewage facilities. Insufficient infrastructure hampers the provision of basic services to urban residents.
  • Political Interference: Political interference in the functioning of ULBs can compromise their independence and impartiality in decision-making processes. Political considerations may influence administrative and developmental activities.
  • Limited Public Participation: ULBs often struggle with a lack of public participation in decision-making, diminishing their effectiveness and accountability. Inadequate citizen engagement can result in policies that do not align with community needs.
  • Lack of Capacity: Many ULBs cannot plan, implement, and monitor development projects and programs effectively. Insufficient capacity can lead to inefficiencies and the misallocation of resources.

 

7. Successful Urban Local Bodies (ULBs) in India

 

  • Ahmedabad Municipal Corporation (AMC) Implemented innovative initiatives to enhance citizens' quality of life.  Ahmedabad Janmarg Limited (AJL) is a successful public-private partnership operating bus rapid transit corridors.
  • Pune Municipal Corporation (PMC) Recognized for effective waste management practices.  Implemented door-to-door waste collection, waste segregation, and processing facilities.
  • Surat Municipal Corporation (SMC) Successfully used technology to monitor infrastructure projects and manage emergencies. Developed pedestrian-friendly streets, public parks, and other civic amenities.
  • Indore Municipal Corporation: Consistently ranked as one of the cleanest cities in India.  Focus on cleanliness, waste management, and sustainable urban development.
  • Chandigarh Municipal Corporation: Known for well-planned urban infrastructure and green spaces. Efforts to preserve the architectural heritage of the city.
  • Bhubaneswar Municipal Corporation (BMC) Implemented various smart city projects for urban development. Emphasis on improving public services and infrastructure.
  • Hyderabad Municipal Corporation focuses on enhancing urban infrastructure and connectivity. Initiatives for the restoration of lakes and water bodies.
  • Thiruvananthapuram Municipal Corporation Emphasizes sustainable development and eco-friendly initiatives. Encourages citizen participation in civic activities.

 

 

 

8. What is property tax?

 

Property tax is a form of direct tax imposed by local governments on the owners of real estate, such as land and buildings. It is a recurring tax that property owners are required to pay, and the amount is typically determined based on the assessed value of the property. The tax collected from property owners is used to fund local public services and infrastructure projects.

Key features of property tax include:

  • The local government assesses the value of the property to determine the amount of tax owed. This assessment is often conducted periodically to account for changes in property values.
  • Property tax is levied on the owner of the property rather than the occupant. Even if the property is rented out, the owner is responsible for paying the property tax.
  • Property tax is a significant source of revenue for local governments, including municipal corporations, municipal councils, and other urban or rural local bodies.
  • The revenue generated from property tax is used to finance various public services and community development projects, such as road maintenance, sanitation, education, and other essential municipal services.
  • In some jurisdictions, property tax is designed to be progressive, meaning that properties with higher values pay proportionally more in taxes. This is often achieved by applying higher tax rates to properties with higher assessed values.
 

8.1. Is property tax collected by the central government?

 

  • No, property tax is typically not collected by the central government. Instead, property tax is a local tax, and its collection falls under the jurisdiction of local or municipal governments. In most countries, including India, the United States, and many others, property tax is assessed and collected by local authorities such as municipal corporations, municipal councils, or other urban and rural local bodies.
  • Local governments use property tax revenue to fund essential services and local infrastructure projects. The tax amount is generally based on the assessed value of the property, and the rates may vary depending on the local government's policies and regulations.
  • While the central government may play a role in setting broad guidelines or frameworks for property taxation, the actual assessment, collection, and utilization of property tax revenue are carried out at the local level. It is a decentralized form of taxation that allows local authorities to have control over their revenue sources and make decisions based on the specific needs of their communities.

 

For Prelims: Property Tax, Urban Local bodies, municipal Corporation, Municipal Council, Nagar Panchayats

For Mains: 

1. Discuss the significance of property tax as a source of revenue for Urban Local Bodies (ULBs). What are the challenges in efficient property tax assessment and collection, and how can they be addressed? (250 Words)
 
Previous Year Questions
 

1.Local self-government can be best explained as an exercise in (UPSC CSE 2017)

(a) Federalism
(b) Democratic decentralisation
(c) Administrative delegation
(d) Direct democracy

Answer (b)

2.The fundamental object of the Panchayati Raj system is to ensure which among the following? (UPSC CSE 2015)

  1. People’s participation in development
  2. Political accountability
  3. Democratic decentralisation
  4. Financial mobilisation

Select the correct answer using the code given below

(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2, 3 and 4

Answer (c)
Source: The Indian Express

UDAYASTHAMANA POOJA

 
 
1. Context
 
The Supreme Court slammed the Devaswom administration of Sri Krishna temple in Kerala’s Guruvayur for deciding not to conduct the age-old ‘Udayasthamana Pooja’ on Guruvayur Ekadashi day (December 11) citing crowd management and wondered how it could have decided so.
 
2.Udayasthamana Pooja
 
Udayasthamana Pooja is a special and elaborate form of worship observed in Hindu temples, particularly in South India. The term "Udayasthamana" literally means "from sunrise to sunset," signifying that the pooja is performed continuously throughout the day.
The Udayasthamana Pooja consists of a sequence of worship rituals conducted in temples from sunrise (udaya) to sunset (asthamana). However, the temple authorities recently opted to forgo this ceremony on Ekadasi, citing difficulties in crowd management and the intention to provide devotees with more time for darshan

Procedures:

  • The day starts with the temple's usual Suprabhata Seva (awakening of the deity).
  • A series of rituals, including Abhishekam (ritual bathing), Alankaram (decoration of the deity), and Archana (chanting of names), are conducted.
  • Special offerings such as naivedyam (food), lamps, and flowers are made throughout the day.
 
3. Controversy Surround it
 

The Kerala High Court previously dismissed a case on the issue, stating that the Tantri has ultimate authority over such decisions. However, the Supreme Court has now issued notices to the temple management, the Kerala government, and the Tantri, and plans to hear the case in four weeks.

  • The dispute began when the temple administration, supported by the Tantri, decided to discontinue the ‘Udayasthamana Pooja’ on ‘Vrishchikam Ekadasi.’ This decision was justified by challenges in crowd management and the intention to allow devotees more time for darshan. Members of the temple’s hereditary priestly family opposed the move, claiming it disrupted long-standing customs and traditions.

  • The temple authorities and the Tantri argued that the pooja is not an essential ritual but a voluntary offering (vazhipadu) that has been altered in the past to address practical concerns. They highlighted that the decision was made in consultation with the Tantri and did not compromise the temple’s rituals or traditions.

  • The High Court observed that determining whether the pooja on ‘Vrishchikam Ekadasi’ constitutes an integral part of the temple’s traditions (acharams) or is simply a form of offering (vazhipadu) involves factual considerations

 
4. Who is Adi Sankaracharya?
 
Adi Shankaracharya (788–820 CE) was a revered Indian philosopher and theologian who consolidated the doctrine of Advaita Vedanta. He is considered one of the most influential spiritual leaders in Indian history and is credited with reviving Hinduism at a time when it faced challenges from other faiths and internal divisions.
  • Advaita Vedanta translates to "non-dualism." It emphasizes the unity of the individual soul (Atman) with the ultimate reality (Brahman), asserting that the perceived differences in the world are an illusion (Maya).
  • Shankaracharya argued that liberation (Moksha) is achieved through self-realization and knowledge (Jnana), rather than rituals or blind faith.
  • Engaged in intellectual debates with scholars of different philosophies, such as Mimamsa, Nyaya, and Buddhism, strengthening Hindu orthodoxy.
  • Wrote commentaries (bhashyas) on key Hindu texts like the Brahmasutras, Upanishads, and Bhagavad Gita
  • Adi Shankaracharya is regarded as a saint and philosopher who brought coherence to Hindu philosophy.
  • His teachings continue to influence Indian spirituality and philosophy, making Advaita Vedanta one of the most enduring schools of thought
 
5. Philosophy of Adi Sankaracharya
 
Shankaracharya founded the philosophy of Advaita Vedanta, which translates to "non-dualism." It is a school of Hindu philosophy that emphasizes the fundamental oneness of the individual soul (Atman) and the ultimate reality (Brahman).
 

  • Non-Duality:

    • The individual soul (Atman) and the ultimate reality (Brahman) are not separate but one and the same.
    • The perception of duality is due to ignorance (Avidya).

  • Illusion of the World (Maya):

    • The world of forms and distinctions is an illusion, created by Maya.
    • Realizing the truth of Brahman removes this illusion.

  • Path to Liberation (Moksha):

    • Liberation is achieved through self-knowledge (Jnana), meditation, and realization of one's unity with Brahman.
    • Rituals and devotional practices are secondary aids for preparing the mind.

  • Ultimate Goal:

    • The ultimate goal is self-realization and merging with Brahman, transcending all distinctions and suffering.
6. Constitutional governing the management of religious institutions in India?
 

  • Freedom of Religion (Articles 25–28):

    • Article 25: Guarantees the right to freely profess, practice, and propagate religion, subject to public order, morality, and health. It allows the state to regulate secular aspects of religious practices.
    • Article 26: Grants religious denominations the right to manage their own affairs in matters of religion, establish institutions, and own property, subject to public order, morality, and health.
    • Article 27: Prohibits the use of taxpayer money for promoting or maintaining any particular religion.
    • Article 28: Prohibits religious instruction in educational institutions wholly maintained by the state.

  • Directive Principles of State Policy:

    • Article 44: Advocates for a Uniform Civil Code to ensure that personal laws, including those related to religious institutions, do not conflict with secular principles.

  • Equality and Non-Discrimination:

    • Articles 14 and 15: Ensure equality before the law and prohibit discrimination based on religion.
    • Article 29: Protects cultural and religious practices of minorities.
 
7. What is the role of the judiciary in balancing the protection of religious traditions with administrative concerns?
 
The judiciary ensures that the fundamental rights guaranteed under Articles 25 and 26 of the Constitution are protected.
  • Article 25: Protects individual religious freedom, subject to public order, morality, and health.
  • Article 26: Protects the rights of religious denominations to manage their religious affairs
The judiciary has developed the "Essential Religious Practices" doctrine, distinguishing practices integral to a religion from those that are optional or secular.
  • In Shirur Mutt Case (1954), the Supreme Court ruled that the state could not interfere in essential religious practices but could regulate secular activities.
  • This doctrine helps determine whether administrative actions infringe on religious freedom
The judiciary has developed the "Essential Religious Practices" doctrine, distinguishing practices integral to a religion from those that are optional or secular.
  • In Shirur Mutt Case (1954), the Supreme Court ruled that the state could not interfere in essential religious practices but could regulate secular activities.
  • This doctrine helps determine whether administrative actions infringe on religious freedom
 
For Prelims: Key Constitutional Provisions like Freedom of religion, Right to equality, Prohibition of discrimination on religious grounds
For Mains: GS Paper II: Indian Polity and Governance
 
 
Source: Indianexpress
 

SIMULTANEOUS ELECTIONS

 
 
1. Context
The Union Cabinet approved two Bills related to the implementation of simultaneous elections to the Lok Sabha and the Assemblies, paving the way for the introduction of the draft legislation in Parliament in the ongoing Winter Session
 
2. About Simultaneous elections

Simultaneous elections(One Nation One Election) in India refer to the idea of holding the Lok Sabha (parliamentary) and state legislative assembly elections across the country at the same time, rather than the current system of staggered elections where polls are held at different times for different states and union territories. This concept has been a topic of discussion and debate in Indian politics for several years.

Key characteristics related to simultaneous elections in India:

  1. Current Election System: India follows a federal system of government, which means that elections are held separately for the Lok Sabha (federal parliament) and state legislative assemblies. Furthermore, the terms of different state assemblies can vary, leading to elections happening at different times across the country.

  2. Arguments in Favor:

    • Cost and Resource Efficiency: Conducting elections at different times is expensive and requires significant resources. Simultaneous elections could save time and money.
    • Stability and Governance: Proponents argue that simultaneous elections can provide more political stability and allow governments to focus on governance instead of frequent election campaigning.

  3. Challenges and Concerns:

    • Constitutional Hurdles: Implementing simultaneous elections would require constitutional amendments, as the terms of state assemblies cannot be easily synchronized with the Lok Sabha.
    • Logistical Challenges: Organizing simultaneous elections for a country as vast and diverse as India is a complex logistical challenge.
    • Impact on Regional Parties: Smaller regional parties are concerned that simultaneous elections might undermine their ability to campaign effectively.
2. Electronic Voting Machines (EVMs)
Electronic Voting Machines (EVMs) are electronic devices used for voting in elections, primarily in India. EVMs have become an integral part of the electoral process in many countries, offering several advantages over traditional paper ballot systems
EVMs were introduced in India in the 1980s as a replacement for the traditional paper ballot system. The aim was to make the voting process more efficient, transparent, and less prone to electoral fraud
 
Key characteristics of EVMs:

Components of an EVM:

  • Control Unit: This is the main unit of the EVM. It is operated by a polling officer and manages the authentication of voters.
  • Balloting Unit: This unit is where voters cast their votes. It is connected to the control unit and displays the list of candidates and their respective symbols
Working of EVMs
  • When a voter casts their vote by pressing the button next to their chosen candidate's name, the EVM records the vote electronically.
  • EVMs are designed to ensure secrecy and prevent double voting.
  • After the election, the data stored in the EVMs is used to tally the votes
Challenges
  • EVMs are designed with multiple layers of security to prevent tampering or hacking.
  • They use a one-time programmable (OTP) chip to store voting data securely.
  • Before and after elections, EVMs are subject to rigorous testing and sealing to ensure their integrity
3.Voter Verifiable Paper Audit Trail (or VVPAT)
  • Voter Verifiable Paper Audit Trail (VVPAT) machines are used during election process to verify that the vote polled by a voter goes to the correct candidate.
  • VVPATs are a second line of verification and are particularly useful in the time when allegations around Electronic Voting Machines’ tampering crop up.
  • Parties have been making regular demands for VVPATs to be used during elections after alleging EVMs may not be completely secure and tamper proof.
    VVPAT system gives instant feedback to the voter showing that the vote polled has in fact been allotted against the candidate chosen.
  • After a voter presses the button on the EVM against the chosen candidate, the VVPAT prints a slip containing name of the candidate and the election symbol and drops it automatically into a sealed box. The machines give the chance for the voter to verify their vote.
  • The machine is placed in a glass case in a way that only the voter can see it. The slip is displayed to the voter for seven seconds after which the VVPAT machine cuts it and drops in into the storage box with a beep. The machines can be accessed, though, by the polling officials and not by the voter.
4. Way forward
If elections were to be held simultaneously in 2029, the EC would require a total of 53.76 lakh ballot units, 38.67 lakh control units, and 41.65 lakh VVPATs. The anticipated shortfall is 26.55 lakh ballot units, 17.78 lakh control units and 17.79 lakh VVPATs, for which the government would need to allocate close to Rs 8,000 crore. The increased demand for voting machines and VVPATs in 2029 is due to the growing number of voters and polling stations. The latter is expected to increase from 11.8 lakh in 2024 to 13.57 lakh in 2029
 
 
 
 
For Prelims:  Indian Polity and Governance
For Mains:  General Studies II: Salient features of the Representation of People’s Act
 
Previous Year Questions
 
1. The Voter Verifiable Paper Audit Trail (VVPAT) system was used for the first time by the Election Commission of India in (UPSC CSE 2019)
A. North Paravur Assembly Constituency
B. Kerala Noksen Assembly Constituency
C. Nagaland Mapusa Assembly Constituency, Goa
D. Nambol Assembly Constituency, Manipur
Answer (B)
 
Source: indianexpress
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