1 April 2024 : The Hindu Editorial Notes PDF

Topic: GS2 – Indian Polity – Devolution of powers and finances

From a UPSC perspective, understanding the intricacies of Centre-State financial relations, particularly in the context of public debt management, fiscal deficits, and fiscal transfers, is crucial.

Some statistical data highlighting key issues with state finances in India:

●In the budgeted GFD for 2023-24, states’ dependence on net market borrowings decreased to 76%.

● Gross market borrowings reached Rs 7.58 trillion in 2022-23, with some states reducing borrowings in the past two years.

●  Net market borrowings increased by 5.4% in 2022-23, concentrated in specific states.

●States budgeted revenue expenditure at 14.4% of GDP in 2023-24, with social sector expenditure at 8% of GDP.

● Committed expenditure, including interest payments and pensions, is expected to remain at 4.5% of GDP.

●  Capital outlay is projected to increase by 42.6% in 2023-24, driven by enhanced loan allocations under special assistance schemes.

● Debt-GDP ratio of states declined to 27.5% by end-March 2023, supported by fiscal consolidation.

● Contingent liabilities represented by government guarantees decreased by around 16% during 2022-23, potentially easing concerns related to debt sustainability.

(Source:  The Business Standard –  December 12, 2023)

Issues with state finances in India:

● Fiscal Deficit: Many states struggle with high fiscal deficits, exceeding the recommended 3% of Gross State Domestic Product (GSDP), leading to debt accumulation.

●  Dependency on Centre: States often rely heavily on central transfers for revenue, limiting their autonomy and flexibility in financial planning.

● Unsustainable Debt: Some states face challenges in managing their debt burdens, risking their creditworthiness and ability to invest in development projects.

●  Revenue Generation: States encounter difficulties in enhancing revenue sources beyond traditional taxes, hindering sustainable fiscal growth.

●Expenditure Management: Inefficient spending, particularly on subsidies and administrative costs, contributes to fiscal imbalances and inefficiencies.

●  Expenditure Patterns: States allocate a significant portion of their expenditure towards non-developmental activities such as subsidies and administrative expenses, impacting their ability to invest in infrastructure and social development projects.

● Capital Expenditure: Capital expenditure by states, which is essential for long-term growth and development, often falls short of budgeted targets due to fiscal constraints and prioritisation of current expenditure.

Way forward:

●  Fiscal Discipline: Implementing measures to control expenditure and manage deficits in line with fiscal responsibility frameworks.

● Diversification of Revenue: Exploring alternative revenue sources such as user fees, property taxes, and public-private partnerships to reduce dependency on central transfers.

●  Debt Restructuring: Undertaking debt restructuring programs to manage debt burdens and ensure debt sustainability.

●Improving Efficiency: Enhancing expenditure efficiency through better targeting of subsidies, rationalisation of administrative expenses, and prioritisation of development expenditure.

●Capacity Building: Investing in administrative capacity and financial management systems to improve fiscal governance and transparency.

These steps are crucial for states to achieve fiscal sustainability and promote inclusive economic growth.

●Asymmetric Fiscal Rules: States advocating for asymmetric fiscal rules to accommodate diverse economic needs and development priorities.

● Debt-Deficit Dynamics: Balancing debt levels and fiscal deficits amidst varying state capacities and economic circumstances.

●  Interstate Equity: Addressing disparities in intergovernmental fiscal transfers to ensure equitable distribution and support for all states.

●  Revenue Stability: Ensuring stable revenue streams for states amidst volatile economic conditions and fluctuating tax collections.

●  Digital Infrastructure: Recognizing the importance of digital infrastructure in enhancing tax efforts and fiscal management.

●  Climate Change and Demographic Challenges: Addressing state-specific challenges such as climate change impacts and demographic transitions through fiscal transfers and policy support.

●Gender Budgeting: Incorporating gender budgeting principles to address gender inequalities and enhance women’s participation in economic growth.

● Budget Credibility: Upholding transparency and credibility in budgetary processes to maintain public trust and confidence.

● Sustainable Development Goals (SDGs): Aligning fiscal policies with SDGs to promote sustainable and inclusive development across states.

Topic: GS2 – Social Justice – Health

The topic holds significance for UPSC as it pertains to public health policies, healthcare accessibility, and disease control strategies.

HIV/AIDS and India:

● HIV (Human Immunodeficiency Virus) is a virus that attacks the body’s immune system, weakening its ability to fight off infections and diseases.

●   AIDS (Acquired Immunodeficiency Syndrome) is the final stage of HIV infection when the immune system is severely damaged.

●   India has the third-largest HIV epidemic globally, with an estimated 2.1 million people living with HIV/AIDS.

●  Key affected populations include sex workers, men who have sex with men, transgender individuals, injecting drug users, and migrant workers.

Challenges to Control:

● Stigma and discrimination remain significant barriers to HIV prevention, testing, and treatment.

●  Limited access to healthcare services, especially in rural areas, hinders early diagnosis and treatment initiation.

● High-risk behaviours, such as unprotected sex and needle-sharing among injecting drug users, contribute to HIV transmission.

● Funding constraints and resource allocation issues impede the implementation of comprehensive HIV/AIDS prevention and control programs.

●   Inadequate awareness and education about HIV/AIDS perpetuate misconceptions and hinder prevention efforts.

Way Forward:

● Strengthening HIV/AIDS prevention programs through comprehensive sex education and awareness campaigns targeting key populations.

● Further expanding access to HIV testing and treatment services, including antiretroviral therapy (ART), through increased healthcare infrastructure and community outreach.

●Addressing stigma and discrimination through advocacy, education, and legal protections for individuals living with HIV/AIDS.

●  Scaling up harm reduction programs, such as needle exchange and opioid substitution therapy, to reduce HIV transmission among injecting drug users.

● Enhancing collaboration between government agencies, NGOs, and international partners to mobilise resources and support for HIV/AIDS prevention and control efforts.

● Promoting research and innovation in HIV/AIDS prevention, treatment, and vaccine development to achieve long-term epidemic control.

Topic: GS3 – Environment – Environmental pollution and degradation

Understanding water scarcity in South India is crucial for UPSC aspirants to grasp environmental challenges and governance issues.

Water crisis in South India:

● Reservoir Levels: As of March, 2024, South Indian reservoirs are at only 43% capacity, compared to 52% last year [The Hindu – 14th March]. This represents a significant drop in stored water.

● City Impact: Major cities like Bengaluru, Hyderabad, and Chennai are all facing water shortages due to low reservoir levels and rising demand [The Hindu].

●  State Variations: The crisis isn’t uniform. Andhra Pradesh has just 22% reservoir storage compared to last year, while Kerala has 35%.

Reasons for Water Crisis in South India:

●Depletion of Groundwater: Excessive extraction for agriculture, industries, and urban consumption has led to groundwater depletion.

● Erratic Rainfall Patterns: Variability in monsoon rains due to climate change results in droughts and reduced water availability.

● Deforestation and Soil Erosion: Loss of forest cover and soil erosion decrease water retention capacity, leading to reduced groundwater recharge.

●Unsustainable Agricultural Practices: Inefficient irrigation methods and excessive water-intensive crops contribute to water scarcity.

●Urbanization and Population Growth: Rapid urbanisation and population growth increase water demand, straining existing resources.

●  Pollution: Contamination of water bodies due to industrial discharge, agricultural runoff, and untreated sewage reduces water quality.

Way Forward to Address the Water Crisis:

● Promote Water Conservation: Encourage efficient water use practices in agriculture, industries, and households.

●   Implement Rainwater Harvesting: Mandate rainwater harvesting systems in urban and rural areas to augment water supply.

● Enhance Irrigation Efficiency: Adopt drip irrigation and other water-saving techniques to improve agricultural water use efficiency.

●Recharge Groundwater: Implement measures to enhance groundwater recharge through artificial recharge structures and afforestation.

●  Integrated Water Resource Management: Develop comprehensive water management plans considering surface water, groundwater, and rainwater.

●  Policy Reforms: Enforce stricter regulations on groundwater extraction, pollution control, and sustainable water use.

● Public Awareness and Participation: Educate communities about the importance of water conservation and involve them in water management initiatives.

●Invest in Infrastructure: Develop infrastructure for water storage, treatment, and distribution to ensure equitable access to clean water.

● Research and Innovation: Invest in research and innovation to develop new technologies for efficient water management and conservation.

Addressing the water crisis requires a multi-pronged approach involving policy interventions, community participation, and sustainable practices to ensure water security in South India.