26 May 2023 : The Hindu Editorial

The Hindu Editorial

26-May-2023

Daily Current Affairs For UPSC ,The Hindu Editorial Summary

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1. An ordinance, its constitutionality, and scrutiny

Topic: GS2 – Indian polity.

Context:

• • • On May 19, 2023, the President of India promulgated “The Government of National Capital Territory of Delhi (Amendment) Ordinance, 2023” under Article 123 of the Constitution.

    • The ordinance negates a Supreme Court judgment that brought “services” under the Government of the National Capital Territory of Delhi (NCTD).

Supreme Court’s Interpretation:

• • • The Supreme Court ruled that the Legislative Assembly of NCTD has competence over entries in List II and List III, except for the excluded entries of List II (entries 1, 2, 18).

    • The executive power of NCTD is co-extensive with its legislative power, while the Union of India has executive power over three entries in List II (entries 1, 2, 18) that the NCTD does not have legislative competence.

    • The Court’s interpretation gave exclusive executive power over “services” to the Government of NCTD.

Changes in the Ordinance:

• • 1. The ordinance expands the scope of excepted matters by reading/inserting entry 41 of List II into Article 239AA(3)(a) of the Constitution.

    2. It creates a National Capital Civil Service Authority which will recommend the transfer and postings of officers/employees employed in the functioning of the GNCTD. It will consist of the CM of Delhi, Chief Secretary of Delhi and Principal Home Secretary of Delhi. 

    3. It amends Section 41 of the NCTD Act, 1999, which lists the matters wherein the LG acts at his discretion. It amends the phrase ‘acts in his discretion’ to ‘acts in his sole discretion’ in the title of the Section and the body. It also adds that the LG will act in his sole discretion while discharging functions under Part IV of the ordinance which includes dealing with the recommendations of the National Capital Civil Service Authority. 

Problem with the ordinance – Views of the Writer

• • • The government cannot bring Constitutional Amendment through an Ordinance. This expansion requires a constitutional amendment under Article 368, not an ordinance under Article 123.

    • The ordinance is void ab initio (legally invalid to begin with) and liable to be struck down for bypassing constitutional amendment procedures.

    • The Supreme Court’s interpretation of the law is binding on all courts and authorities in India.

    • The use of Article 123 to override the Court’s interpretation raises doubts about the validity of the ordinance.

    • The Union of India’s decision to prefer review and promulgate an ordinance simultaneously is unlikely to succeed in wresting power over “services” in Delhi.

    • The satisfaction of the President under Article 123 is subject to judicial scrutiny, and the Court can examine the relevance of the material placed before the President.

• • • The ordinance is likely to be struck down as it expands excepted matters without the authority of Parliament under Article 368.

2. Economics that looks at the lower half of the pyramid.

Topic: GS3 – Economy.

Context:

• • • More than 50% of Indians have been left behind by the country’s economic growth, leading to the need for reservations in employment for economically weaker sections, regardless of caste and religion.

Issue:

• • • The Global Solutions Summit in Berlin focused on the need for a new paradigm for the economy against the backdrop of rising tensions between the United States and China and conflicts between NATO and Russia.

    • Divisions between the economic “haves” and “have nots” are reshaping politics globally, with both the left and right gaining strength.

    • Economic reforms in the 20th century aimed to rebalance incomes and wealth, but the tide turned in the 1980s with the rise of free market ideology promoted by figures like Margaret Thatcher and Ronald Reagan.

    • The focus shifted from socialist reforms to free market principles, emphasizing downsizing governments, reducing taxes, and favoring the private sector.

    • Globalization and financial capitalization spread with economies opening up, leading to the emergence of a global elite class and multinational corporations.

    • Tax rates decreased to attract investments, leading to demands from figures like Donald Trump and Bernie Sanders to ensure corporations contribute to the well-being of common citizens.

    • Free market capitalism prioritizes liberty and property rights over socialist values of equality and fraternity, making it difficult to coexist with liberal human democracy.

    • GDP became the primary measure of progress, but it doesn’t account for social equality, environmental impact, or human aspirations.

    • Urgent reform is needed in economics to guide progress towards universal social and ecological well-being, with a focus on the lower 50% of the population.

    • Indian political parties and economists need to concentrate on addressing the needs of the people and not rely on wealth trickling down on its own.

3. Should States revert to the Old Pension Scheme?

Topic: GS2 – Provisions for Vulnerable sections.

Context:

• • • More than 50% of Indians have been left behind by the country’s economic growth, leading to the need for reservations in employment for economically weaker sections, regardless of caste and religion.

Issue:

• • • The National Pension Scheme (NPS) was introduced in 2004 as a shift from the old pension scheme (OPS) that offered defined benefits to government employees without their contribution.

    • The NPS requires employees to contribute throughout their working years, but it does not guarantee a fixed pension amount.

    • Pensioners are protesting against the NPS and demanding a return to the OPS due to the lack of a guaranteed pension.

    • Several states, including Rajasthan, Punjab, Chhattisgarh, Jharkhand, and Himachal Pradesh, have decided to switch back to the OPS in response to the demands of government employees.

    • Critics argue that reverting to the OPS is an intellectually lazy response and financially unviable for states, particularly those with high debt levels.

    • Suggestions for the way forward include restructuring the NPS to address concerns about guaranteed pensions while incorporating employee contributions and leaving the decision to adopt pension schemes to individual states.

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