Current Affairs – 01st Feb 2024
Articles Covered:
- Interim budget
- ED arrests Hemant Soren after he resigns as Jharkhand Chief Minister
- Northwest India experiences second driest January since 1901: IMD
- Fiscal Deficit- Current account deficit (CAD)
- First penguin deaths in sub-Antarctic region attributed to bird flu strain
- Will appeal against Mandal report if quota challenged, says Jarange
- 16th FC-16th Finance Commission
- Ram Nath Kovind committee to examine the possibility of implementing “one nation, one election”.
Interim budget:
- An interim budget is presented by the government in the Parliament if it does not have the time to present a full budget, or if the general elections are around the corner. If in case the elections are nearing, it is only correct that the incoming government frame the full budget.
Difference between Interim Budget and Union Budget
Interim Budget | Union Budget |
|
|
|
|
|
|
|
|
Interim budget different from a regular budget:
- The vote-on-account passed through the interim budget, seeks parliamentary approval for the government to meet expenses for a part of the fiscal year.
- It is not practical for the government to present a full budget when there are elections nearing, so the government presents an interim budget, which is like a budget for the transition period (few months remaining in power).
- But, like a regular budget, the estimates are presented for the whole year.
- When the new government frames a new budget, it can concur with or change the estimates as it deems fit.
- The Constitution gives the government the power to make changes in the tax regime in the interim budget.
However, in all the 14 interim budgets that the various governments have presented so far, no major tax changes or new schemes have been announced respecting the fact that the government is going to be in power only for a few months.
Generally, an annual budget contains two segments –
- Report on the previous year’s income and expenses
- Proposed income generation and expenses for the coming year
- In an interim budget, the first part is the same as the annual budget, i.e., the previous year’s income and expenses. However, only a documentation of the proposed basic expenses till the elections are included in the interim budget.
- In an interim budget (because it is close to the general elections), the election commission has given regulations to the effect that any major policy changes that can influence the voters unfairly are not permitted.
ED arrests Hemant Soren after he resigns as Jharkhand Chief Minister:
Governor accepts resignation; JMM Legislature Party elects Transport Minister Champai Soren as new leader; Jharkhand High Court to hear plea against arrest in land scam case on February 1; tribal bodies call for a bandh in the State
Relation to the Council of Ministers:
The Chief Minister is the head of state council of ministers. He performs the following functions:
Note: If the CM dies (or resigns), the council automatically dissolves. |
Chief Minister and the Governor:
- The relationship between the Chief Minister of the state and the state’s governor has always been in the news. The debate on the authority of the respective posts has made the rounds throughout. IAS aspirants will understand the dynamics shared by the CM and the Governor by following the details given below:
Article 163 | The governor is advised by the council of ministers which is headed by the Chief Minister.
Note: When the governor acts at his own discretion, no advice is needed by the council |
Article 164 | Governor appoints Chief Minister and later Chief Minister recommends Governor on the appointment of ministers |
Article 167 | Chief Minister has to communicate all administrative decisions that are taken up by him and the council of ministers to the governor |
Governor also appoints a tribal affairs minister for the following states:
- Chhattisgarh
- Jharkhand
- Madhya Pradesh
- Odisha
Note: Bihar was also one of the states to have tribal affairs minister, however, 94th Amendment Act 2006 freed Bihar from this obligation.
Northwest India experiences second driest January since 1901: IMD:
Delhi experiences driest winter since 2016
Northwestern regions of India experienced the second driest January since 1901, India Meteorological Department (IMD) said. In January, the rainfall deficit was 91 per cent. During December and January, the region (Haryana, Himachal Pradesh, Punjab, Rajasthan, Uttarakhand, Uttar Pradesh, and the National Capital Territory) received only 7.8 mm rainfall.
- The complete absence of snowfall, particularly over the higher reaches of Jammuand Kashmir, Ladakh, Himachal Pradesh, Uttarakhand and neighbouring hilly terrains, has been a matter of great concern. It was only on Wednesday that a fresh western disturbance system brought the season’s first snow over some areas in the extreme northern regions like Ladakh, Kashmir and Himachal Pradesh.
- The December rainfall recorded over northwest India was 6.6 mm against the normal of 18.9mm (-65 per cent) and January reported 1.2 mm against normal of 32.5 mm rainfall (till January 30, -96 per cent).
Reason for the lack of snowfall:
- Fall in the number of Western Disturbances–western disturbances are storms that originate in the mid-latitude regions and travel thousands of kilometres to bring rains across northern India.
- This is a non-monsoonal precipitation pattern driven by the
- When the temperatures are low, they result in snowfall and water being available as snow melt.
- Usually, 5 to 7 WDs affect Northwest India in the period from December to January, but this winter, there have been none.
- As a result, the Western Himalayan Region received 80% less rain than normal.
- El Niño conditions over the equatorial Pacific Oceanel nino is the warming of sea waters in Central-east Equatorial Pacific that occurs every few years (Warm phase off the coast of Peru).
- During El Niño, surface temperatures in the equatorial Pacific rise and this weakens the trade winds that blow near the Equator.
- In India, an El Nino event is strongly linked to suppressed rainfall.
- Absence of a strong jet stream– Jet streams are relatively narrow bands of strong wind (250 to 320 km/hr) in the upper levels of the atmosphere (about 12 km above mean sea level).
- Within jet streams, the winds blow from west to east, but the band often shifts north and south because jet streams follow the boundaries between hot and cold air.
- The western cyclonic disturbanceswhich enter the Indian subcontinent from the west and the northwest during the winter months, originate over the Mediterranean Sea and are brought into India by the westerly jet stream.
- The arrival of these disturbances is often indicated by a rise in the night temperature.
Phenomenon | Effect on India |
Western Disturbances | Gives rain |
El Niño | Suppress the rain |
Strong jet stream | Gives rain |
Fiscal Deficit- Current account deficit (CAD):
The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). Fiscal deficit in layman’s terms corresponds to the borrowings and liabilities of the government. As per the technical definition, Fiscal Deficit = Budgetary Deficit + Borrowings and Other Liabilities of the government. |
Current Account Deficit (CAD) Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). Current Account= Trade balance+Net factor income+Net transfer payments |
Current account deficit (CAD) is when the value of a country’s imports of goods and services is greater than its exports. CAD and fiscal deficit together make up twin deficits that can impact the stock market and investors. Fiscal Deficit is the gap between the government’s expenditure requirements and its receipts.
Impact of twin deficit problem:
- The twin deficit issue, particularly the expanding current account deficit, could amplify the impact of more expensive imports and devalue the rupee, further escalating external imbalances.
First penguin deaths in sub-Antarctic region attributed to bird flu strain:
Bird flu invades Antarctica: 200 gentoo penguin chicks found dead
- The situation appears to be worsening, with over 200 gentoo penguin chicks and several adults found dead as of January 30.
- Weeks after scientists suspected and confirmed deaths of elephant and fur seals due to bird flu (H5N1) in the British Overseas Territory (BOT) of South Georgia and the South Sandwich Islands near Antarctica, there are now reports of at least three penguin deaths from the region.
Details:
- Penguin species: King penguin, and Gentoo penguin.
- Places:South Sandwich Island, Falklands, and South Georgia.
- About 98 per cent of the global populationof fur seals was found in South Georgia. The region hosted “globally important populations of elephant and fur seals”.
- A risk assessmentconducted by researchers warned about the virus ripping across densely populated colonies of penguins by the austral (southern) spring that may lead to “one of the largest ecological disasters of modern times”.
- So far, no suspected or confirmed case of infectionhas been reported from mainland Antarctica.
Avian Influenza:
- It is a highly contagious viral disease which has swept populations of birds and mammals across the world.
- Since 2021, its variant known as HPAI H5N1 clade 2.3.4.4b has been dominated and caused outbreaks, leading to the deaths of millions of birds in the United Kingdom, South America, Europe and South Africa.
- In October 2023,bird flu arrived in the sub-Antarctic region after travelling from South America through sea birds.
- It infected elephants and fur seals, brown skua, penguins, pelicans, sea lions and kelp gulls among others, resulting in mass infection and mortality.
- In December 2023, the first death of a polar bear due to avian flu was reported from the Arctic.
The initial outbreak of Highly Pathogenic Avian Influenza (HPAI) H5N1 in India occurred in 2006 in Navapur, Maharashtra, and was followed by annual outbreaks. H5N8 was first observed in India in November 2016, mainly affecting wild birds across five states, with Kerala reporting the most cases. |
H5N1 Avian Influenza:
Avian influenza or bird flu refers to the disease caused by infection with avian influenza Type A viruses:
- Infrequently, the virus can infect mammals from birds,a phenomenon called spillover, and rarely can spread between mammals.
- H5N1, a subtype of avian influenza, has the potential to infect other mammals such as minks, ferrets, seals, domestic cats,and others through contact with infected birds, their faeces, or infected bird carcasses.
Symptoms in Humans:
- Range from mild to severe influenza-like illnesses such as fever, cough, sore throat, muscle aches, nausea, abdominal pain, diarrhea, vomiting.
- People can also develop severe respiratory illness (e.g., difficulty breathing, pneumonia acute respiratory distress, viral pneumonia) and altered mental status, seizures etc.
Will appeal against mandal report if quota challenged, says Jarange:
- “If OBC leaders challenge our reservation, then I will also appeal against the Mandal Commission report, which granted reservation to OBCs,” the activist said during an interaction with journalists in the city on Wednesday.
Mandal Politics and Mandal Commission:
- Mandal politics refers to a political movement that emerged in the 1980s,advocating for the inclusion of socially and economically disadvantaged communities, particularly the Other Backward Classes (OBCs), in government jobs and educational institutions.
- The movement wasnamed after the Mandal Commission.
Mandal Commission:
- The Mandal Commission orthe 2nd socially educationally backword classes commission was established in India in 1979 with a mandate to “identify the socially or educationally backward classes” of India.
- It was headed by P. Mandaland submitted its report in 1980 and was implemented in 1990.
- The Commission reported that 52% of the country’s population was comprised of OBCs. Initially, the commission argued that the percentage of reservations in government service should match this percentage.
However, this would have gone against the Supreme Court ruling in M.R. Balaji vs State of Mysore case (1963) which had laid down a limit of 50% on. There was already a 22.5% reservation for SCs and STs:
- Therefore, the figure of reservation for OBCs was capped at 27% which when added to keep the reservation below the 50% mark.
- The Commission also identified backward classes among non-Hindus.
Recommendations of Mandal Commission:
- OBCs must be provided a reservation of 27% in public sector and government jobs.
- They should be provided with the same 27% reservations in promotions at all levels of public services.
- The reserved quota, if unfilled, should be carried forward for a period of 3 years.
- OBCs should be provided age relaxation similar to SCs and STs.
- Reservations to be made in PSUs, banks, private sector undertakings receiving government grants, colleges, and universities.
- The government to make the necessary legal provisions to implement these recommendations.
Impact of Mandal Commission:
- Implementation of Mandal Commission by the government resulted in a widespread protest where students committed self-immolation in protest when the government showed its intent to implement it.
- The implementation was finally challenged-Indra Sawhney vs union of India
16th FC-16th Finance Commission:
The Government of India, in adherence to Article 280(1) of the Constitution, has established the 16th FC appointing Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog and Professor at Columbia University, as its chairman.
- Specific terms of reference have been outlined, includingthe distribution of tax proceeds between the Union and States, principles governing grants-in-aid to States, and measures to bolster State funds for local bodies like Panchayats and Municipalities.
- The Commission has also been tasked with reviewing disaster management financing arrangements under thedisaaster management act-2005 and making recommendations for improvements.
- The Commission has been requested to make its report available by 31stOctober, 2025.
Terms of Reference for 16th Finance Commission:
- Division of Tax Proceeds: Recommending the distribution of taxes between the Union Government and the States under Chapter I, Part XII of the CONSTITUTION.
- This includes theallocation of shares among the States from these tax proceeds.
- This encompasses determining the amounts to be provided to the States as grants-in-aid, specifically under Article 275 of the Constitution,for purposes beyond those outlined in the provisos to clause (1) of that article.
- Enhancing State Funds for Local Bodies:Identifying measures to enhance the Consolidated Fund of a State.
- This is aimed atsupplementing the resources available to –PANCHAYATS AND MUNCIPOLITIES within the State, based on recommendations made by the State’s own Finance Commission.
- Evaluation of Disaster Management Financing:The Commission may review the current financing structures related to Disaster Management initiatives.
Finance Commission:
- The Finance Commission in India is a constitutional body established under Article 280 of the Indian Constitution.
- Its primary function is to recommend the distribution of financial resourcesbetween the central government and the state governments.
- The Fifteenth Finance Commissionwas constituted on 27th November, 2017. It made recommendations covering the period of six years commencing on 1st April, 2020 through its Interim and Final Reports.
- The recommendations of the Fifteenth Finance Commission are valid up to the financial year 2025-26.
Criteria for Devolution:
Criteria |
14th FC (2015-20) |
15th FC (2020-21) |
15th FC (2021-26) |
Income Distance | 50.0 | 45.0 | 45.0 |
Area | 15.0 | 15.0 | 15.0 |
Population (1971) | 17.5 | – | – |
Population (2011)# | 10.0 | 15.0 | 15.0 |
Demographic Performance | – | 12.5 | 12.5 |
Forest Cover | 7.5 | – | – |
Forest and Ecology | – | 10.0 | 10.0 |
Tax and fiscal efforts* | – | 2.5 | 2.5 |
Total | 100 | 100 | 100 |
‘Population (1971)’ was considered only for the 14th Finance Commission, while ‘Population (2011)’ and ‘Tax and fiscal efforts’ were introduced by the 15th Finance Commission. The figures represent the weightage in percentage for each criterion during the specified periods.
Ram Nath Kovind committee to examine the possibility of implementing “one nation, one election”.
- The Indian government has formed a committee led by former President Ram Nath Kovind to examine the possibility of implementing “one nation, one election”. This initiative seeks to synchronize the timing of Lok Sabha (national) and state assembly elections in India.
One nation, one election:
- “One nation, one election” is a concept aimed at synchronizing the timing of elections for various tiers of government in India, primarily the Lok Sabha (national parliament) and state legislative assemblies. The idea behind this concept is to streamline the electoral process, reduce election-related expenses, and ensure continuity in governance.