13 July 2023 : Indian Express
Indian Express
13-July–2023
The Indian Express, CSE candidates can stay informed about current events and developments in India and around the world.
1. GREAT EXPECTATIONS
Syllabus – GS II
Context – Recommendations of the Finance Commission mostly remain on paper.
Finance Commission
- A FC is set up under Article 280 of the Constitution, and its recommendations cover
- vertical devolution (Union to state transfers)
- horizontal distribution (between states, on the basis of a formula varying from FC to FC) and
- grants-in-aid
- Grant-in-aid is covered under Article 275: “Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India every year as grants-in-aid of the revenues of those states as Parliament may determine to be in need of assistance, and different sums may be fixed for different states.”
- There is a difference between a grant (Article 282) and a grant-in-aid. The latter is when the recipient operates at arm’s length.
- Thus, grant-in-aid is not subject to as many tight controls as a grant is.
13th Finance Commission Report
- The 13th Finance Commission was set up in 2007, and its recommendations were for 2010 to 2015.
- Among the grants made by the 13th FC, there were also justice delivery and the statistical system.
On Justice Delivery
- Over 3 crore cases are pending in various courts in the country.
- At the very least, current filings need to be disposed of to prevent the accumulation of arrears.
- The Department of Justice has identified several initiatives which are part of this action plan and need support –
- Increasing the number of working hours in court using the existing infrastructure by holding different shifts.
- Enhancing support to Lok Adalats.
- Providing additional funding to State Legal Services Authorities enables them to enhance legal aid to the marginalised and empower them to access justice.
- Promoting the Alternate Dispute Resolution (ADR) mechanism to resolve some disputes outside the court system.
- Enhancing the capacity of judicial officers and public prosecutors through training programmes.
- Creation of a judicial academy in every state to facilitate such training.
On Statistical System
For equitable horizontal distribution, the measurement of cost disabilities is important. The cost of services varies across states due to many factors. To estimate the cost disabilities of states, two types of data are required:
(a) Quantifiable measure of the level of various services available in different states and
(b)The corresponding unit cost.
- As of now, such data are not available. Measurement of inter-regional trade data would be useful to provide insights into an inter-regional framework.
15th Finance Commission
- The 15th FC had a four-volume report. It has more than a hundred recommendations.
- The 15th FC suggested reforms at Union and state levels, and there were performance-based grants.
- At the risk of sounding negative, all such homilies are generally ignored as pious intentions. This is also true of State FC.
- There is some speculation now about the 16th FC and what it will recommend, — but so far as the normative and prescriptive recommendations of FCs are concerned, there is a need to dampen our expectations.
2. THE BETS ARE OFF
Syllabus – GS III
Context – The GST Council decided to levy a 28 per cent tax on the full face value of the bets involving online gaming, horse racing and casinos.
Repercussions of the move
- This is a crushing blow to the gaming industry, which is growing rapidly, riding the twin waves of technology and entertainment.
- Unfortunately, moral considerations seem to have influenced the Council’s decision rather than being driven by economics.
- No distinction has also been made between “games of skill” and “games of chance”.
Area of Contention
- The issue of taxation in this area has been contentious, with strong differences of opinion existing within the Council.
- Earlier, a Group of Ministers had suggested a levy of 28 per cent on these activities for the full value of the consideration paid and had recommended that no distinction be made between games of skill or chance.
- However, with some reservations being expressed, the Council decided to review the report.
- Some states favoured taxing all three activities on the full face value, while others advocated the tax levy only on platform fees and gross gaming revenue for casinos.
- With the Council now deciding to go this particular way, the nascent industry faces a blow it will find hard to recover from.
Way Ahead
- The market of online gaming in India has seen a dramatic expansion over the past few years.
- As per an EY-FICCI report, revenues of the online gaming segment in the country rose from Rs 79 billion in 2020 to Rs 119 billion in 2022 and are expected to touch Rs 153 billion by 2024.
- The country has also seen a sharp rise in new users, with the report pegging the number of paying gamers at 95 million in 2021.
- While there is immense opportunity for the sector to grow, the GST decision can disrupt the entire segment, dissuading both investors and users.
- Unfortunately, the GST Council has chosen to go in the opposite direction six years after the shift to the GST regime rather than focusing on reducing the number of tax slabs and providing stability and predictability to the tax system.
- In a draft paper, the Niti Aayog had sought a “light touch regulatory framework” for the online fantasy sports industry and differentiated fantasy sports from betting and gambling.
- That’s why the GST’s hard sledgehammer needs to be cushioned; the damage it will wreak isn’t worth it.
For Enquiry
13 July 2023 : Indian Express
13 July 2023 : The Hindu Editorial Notes PDF
13 July 2023 : Daily Current Affairs
12 July 2023 : Daily Quiz
12 July 2023 : PIB
12 July 2023 : Indian Express
12 July 2023 : The Hindu Editorial Notes PDF
12 July 2023 : Daily Current Affairs
11 July 2023 : Daily Quiz
11 July 2023 : Indian Express
Indian Express 13 July 2023 : Indian Express Indian Express
12-July–2023
The Indian Express, CSE candidates can stay informed about current…
The Hindu 13 July 2023 : The Hindu Editorial Notes PDF The Hindu Editorial
13-July-2023
Daily Current Affairs For UPSC ,The Hindu Editorial Summary
Facebook-f
Twitter
Youtube
1. Loot,…
Daily Current Affairs 13 July 2023 : Daily Current Affairs DAILY CURRENT AFFAIRS
13-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu…
Daily Quiz 12 July 2023 : Daily Quiz 12 July 2023 : Daily Quiz…
PIB 12 July 2023 : PIB PRESS INFORMATION BUREAU
12-July-2023
Daily Current Affairs For UPSC ,The PIB ( Press Information Bureau…
Indian Express 12 July 2023 : Indian Express Indian Express
12-July–2023
The Indian Express, CSE candidates can stay informed about current…
The Hindu 12 July 2023 : The Hindu Editorial Notes PDF The Hindu Editorial
12-July-2023
Daily Current Affairs For UPSC ,The Hindu Editorial Summary
Facebook-f
Twitter
Youtube
1. Demographic…
Daily Current Affairs 12 July 2023 : Daily Current Affairs DAILY CURRENT AFFAIRS
12-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu…
Daily Quiz 11 July 2023 : Daily Quiz 11 july 2023 : Daily Quiz…
Indian Express 11 July 2023 : Indian Express Indian Express
11-July–2023
The Indian Express, CSE candidates can stay informed about current…
