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Functions & Responsibilities of the Union & the States
India’s federal structure grants significant powers and responsibilities to both the Union (central) government and the state governments. The Union government handles matters of national importance, such as defense, foreign affairs, and macroeconomic policies.
There is also a Concurrent List, where both the Union and states can legislate. This division of powers ensures effective governance, with the states catering to local needs while the Union coordinates nationwide policies.
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Although the measures taken by the Central government have influenced state finances, the primary responsibility for the financial challenges faced by state governments lies with the states themselves. Discuss.( 200 Words)
Model Answer Introduction Recently, several states have protested against what they perceive as fiscal discrimination by the Centre, even approaching the Supreme Court of India. While the measures taken by the Central government have certainly impacted state finances, it is essential to examine theRead more
Model Answer
Introduction
Recently, several states have protested against what they perceive as fiscal discrimination by the Centre, even approaching the Supreme Court of India. While the measures taken by the Central government have certainly impacted state finances, it is essential to examine the financial challenges faced by state governments and the role they play in this situation.
Central Government Measures Impacting State Finances
Increase in Cesses and Surcharges
The Central government has increased the share of cesses and surcharges, effectively reducing the amount of tax revenue available to states. For instance, the share of cesses and surcharges in the Centre’s gross revenue increased from 8.6% in 2010-11 to 28% in 2021-22, which has diminished the divisible pool for states.
Decline in Centrally Sponsored Schemes (CSS)
The reduction in Centrally Sponsored Schemes from 130 to 70 starting in April 2023 has placed additional financial burdens on states. The reduction has limited central assistance, making it harder for states to finance key projects.
Restricting Borrowing by States
The Centre has reduced the fiscal space available to states by including their off-budget borrowings in the Net Borrowing Ceiling (NBC). For example, Kerala challenged this move in the Supreme Court, arguing that it severely restricted their ability to manage state finances.
State Governments’ Role in Financial Challenges
Power Sector Issues
State governments often cover the losses of power companies with grants or guarantees against their borrowings, which increases their contingent liabilities. For example, nearly 40% of loans raised by state-owned entities are guaranteed by state governments.
Non-merit Freebies
Several states have allocated substantial funds for non-merit freebies, such as loan waivers and subsidies, which strain their fiscal capacity. States like Punjab have been identified as being on the brink of a fiscal crisis due to these subsidies.
Reintroduction of Old Pension Scheme (OPS)
Some states, including Rajasthan and Punjab, have reinstated the OPS, which places a significant future burden on state finances and limits capital expenditures.
Excessive Borrowings
States like Tamil Nadu have consistently borrowed to fund welfare schemes, leading to rising debt levels. Tamil Nadu, for example, has been the top borrower in the country for the past four years.
Conclusion
While central measures have certainly affected state finances, the states themselves also need to address their financial management issues. A balanced approach that enhances states’ revenue-generating capabilities and ensures timely transfers from the Centre is necessary for tackling the looming fiscal challenges.
See lessExamine the role of State Finance Commissions (SFCs) in strengthening local governments in India. What reforms are necessary to enhance their effectiveness? (200 words)
Model Answer Role of State Finance Commissions (SFCs) in Empowering Local Governments in India State Finance Commissions (SFCs), created under Articles 243(1) and 243(Y) of the Indian Constitution, play a crucial role in empowering local governments by addressing fiscal imbalances and ensuring finanRead more
Model Answer
Role of State Finance Commissions (SFCs) in Empowering Local Governments in India
State Finance Commissions (SFCs), created under Articles 243(1) and 243(Y) of the Indian Constitution, play a crucial role in empowering local governments by addressing fiscal imbalances and ensuring financial decentralization. Their primary functions include:
Reforms Needed to Enhance the Effectiveness of SFCs
Despite their importance, several challenges hinder the effectiveness of SFCs:
To enhance the effectiveness of SFCs, reforms such as timely constitution of commissions, better data systems, and stronger political will for implementation are essential. Adherence to constitutional mandates will ensure that local bodies become more financially autonomous and capable of fulfilling their governance roles.
See lessAlthough the Governors of states in India are vested with a broad range of powers, there are certain limitations on their authority. Discuss. (200 words)
Model Answers Powers of Governors and Limitations on Their Authority The Governor in Indian states holds significant powers under Articles 153 to 167 of the Indian Constitution, but these powers are not without limitations. The office is essential for maintaining the link between the Union and stateRead more
Model Answers
Powers of Governors and Limitations on Their Authority
The Governor in Indian states holds significant powers under Articles 153 to 167 of the Indian Constitution, but these powers are not without limitations. The office is essential for maintaining the link between the Union and state governments, acting in an executive, legislative, judicial, and discretionary capacity.
Executive Powers
Legislative Powers
Judicial Powers
Discretionary Powers
Limitations on the Powers of the Governor
While the powers of the Governor are broad, they are restricted by various provisions and judicial rulings.
Limits on Executive and Discretionary Powers
Governor’s Relationship with the Council of Ministers
Judicial Restrictions
Ordinance Powers
Conclusion
Although Governors hold vast powers in India, including executive, legislative, and judicial functions, the Constitution and judicial precedents place significant limitations on these powers. These restrictions are in place to protect democratic values, ensure the proper functioning of the federal structure, and prevent misuse of power.
See lessDescribe the financial relations between the Centre and States in India. (125 Words) [UPPSC 2021]
Financial Relations Between the Centre and States in India **1. Revenue Sharing: The Central Government and State Governments share revenue primarily through tax distribution. The Finance Commission is responsible for recommending the distribution of central taxes to states. For instance, the 15th FRead more
Financial Relations Between the Centre and States in India
**1. Revenue Sharing: The Central Government and State Governments share revenue primarily through tax distribution. The Finance Commission is responsible for recommending the distribution of central taxes to states. For instance, the 15th Finance Commission recommended a 41% share of central taxes for states for the 2021-26 period.
**2. Grants-in-Aid: States receive grants-in-aid from the Centre to support specific projects or to meet revenue deficits. For example, the Swachh Bharat Mission provided grants to states for sanitation projects.
**3. Borrowing Powers: States can borrow funds, subject to Central Government approval. The Fiscal Responsibility and Budget Management (FRBM) Act governs these borrowings. The 2020 COVID-19 pandemic led to increased borrowing limits for states to manage the economic impact.
**4. Financial Devolution: The State Finance Commissions are set up to recommend the distribution of local body finances, ensuring decentralized financial governance.
Conclusion: The financial relationship between the Centre and states involves revenue sharing, grants, borrowing powers, and devolution of funds, aiming to ensure balanced regional development and effective governance.
See lessEconomic Growth vs. Environmental Protection in Developing Countries
The relevance of aestheticism in E.W. Hornung's A.J. Raffles series is primarily manifested through the character of Raffles himself and the thematic exploration of art, beauty, and the pursuit of sensual pleasures. Raffles as an Aesthetic Figure: Raffles, the gentleman thief protagonist of the seriRead more
The relevance of aestheticism in E.W. Hornung’s A.J. Raffles series is primarily manifested through the character of Raffles himself and the thematic exploration of art, beauty, and the pursuit of sensual pleasures.
- Raffles as an Aesthetic Figure:
- Raffles, the gentleman thief protagonist of the series, is depicted as a cultivated and refined individual who values aesthetics and the finer things in life.
- His appreciation for art, music, and fine living is a central aspect of his character, reflecting the principles of the aesthetic movement that emerged in the late 19th century.
- Raffles’ attention to detail, his love of beautiful objects, and his pursuit of sensual experiences align him with the aesthetic ideals of “art for art’s sake” and the emphasis on the intrinsic value of beauty.
- The Aesthetics of Crime:
- Hornung’s portrayal of Raffles’ criminal activities often highlights the aesthetic dimension of his thefts and burglaries.
- Raffles approaches his criminal exploits with a sense of artistry, meticulously planning and executing his heists in a way that showcases his skill and appreciation for the beauty of the objects he steals.
- The series explores the notion of the “aesthetics of crime,” where Raffles’ criminal actions are imbued with a certain elegance and refinement, challenging traditional moral boundaries.
- The Tension between Aestheticism and Morality:
- The Raffles series often presents a tension between Raffles’ aesthetic sensibilities and the moral implications of his criminal activities.
- Hornung’s portrayal of Raffles as a likable and charming protagonist creates a sympathetic figure, despite his transgressions, inviting readers to engage with the complexities of ethical considerations.
- This tension reflects the broader debates within the aesthetic movement, where the pursuit of beauty and sensual pleasures was sometimes seen as conflicting with traditional moral values.
- The Influence of Oscar Wilde’s Aestheticism:
- Hornung’s depiction of Raffles and the thematic exploration of aestheticism in the series can be seen as influenced by the ideas and writings of Oscar Wilde, a prominent figure in the aesthetic movement.
- Wilde’s emphasis on the primacy of art and beauty over moral considerations is reflected in the Raffles series, where Raffles’ criminal activities are often justified or romanticized through his appreciation for the aesthetic qualities of his targets.
See lessWhat were the main reasons behind the rise and fall of the Roman Empire?
The rise and fall of the Roman Empire can be attributed to several key factors. Initially, its rise was propelled by a combination of effective governance, military prowess, engineering innovations (such as roads and aqueducts), and a strategic expansionist policy that allowed it to accumulate vastRead more
The rise and fall of the Roman Empire can be attributed to several key factors. Initially, its rise was propelled by a combination of effective governance, military prowess, engineering innovations (such as roads and aqueducts), and a strategic expansionist policy that allowed it to accumulate vast territories and resources. The Roman military, organized and disciplined, ensured territorial stability and facilitated economic growth through trade and agriculture across its vast domain. However, internal factors such as political corruption, economic instability due to over-reliance on slave labor and the depletion of resources, and societal decay including declining moral values contributed to its eventual decline. External pressures such as invasions by barbarian tribes, particularly in the 5th century AD, further weakened the empire’s defenses and contributed to its fragmentation. Additionally, administrative inefficiency and the division of the empire into Western and Eastern halves weakened its ability to respond cohesively to external threats. Ultimately, the combination of internal weaknesses and external pressures led to the fall of the Western Roman Empire in 476 AD, although the Eastern Roman (Byzantine) Empire continued for nearly a millennium thereafter
See lessWhat was the need for bringing up new laws when we already had old ones. Also explain when it started and what all committees have been the part of this major breakthrough.
It is the changing societal norms, the evolution of values, and the dynamics in human interactions that necessitated the bringing up of new laws. Societies progressed, and the existing laws became outdated or were found sufficient for new emerging issues and challenges. This meant that new laws hadRead more
It is the changing societal norms, the evolution of values, and the dynamics in human interactions that necessitated the bringing up of new laws. Societies progressed, and the existing laws became outdated or were found sufficient for new emerging issues and challenges. This meant that new laws had to be formulated so as to live in tandem with the changing times.
This process of legal reform and the institution of new laws must be taken back to the times of ancient civilizations when the rulers and lawmakers realized after a certain period that it was imperative to update and renovate legal frameworks so that they might retain order and address contemporary concerns.
The work of committees and commissions over the centuries has been instrumental in forming and reforming many legal systems. For example, the American Law Institute, founded in 1923, has played a vital role in promoting the clarification and simplification of the law with its model codes and restatements of law.
The Law Commission of India set up in 1955, has been very instrumental in the process of reform under the Indian framework. It has conducted extensive studies on the revision and enactment of new laws addressing the emerging needs of society based on principles provided in the Constitution.
The process of legal reform is perpetual, for societies will keep on changing, and new challenges from time to time will confront us; these laws have to be reviewed consistently in view of these circumstances so as to ensure justice, fairness, and the protection of rights to all citizens.
See lessAs India's role in the global order increases, critically examine the challenges and opportunities it faces in balancing its strategic autonomy with global cooperation.
As India's role in the global order grows, it faces several challenges and opportunities in balancing its strategic autonomy with global cooperation. Challenges: 1. Climate Change: India needs to balance economic growth with reducing carbon emissions. This is hard because India relies on coal for enRead more
As India’s role in the global order grows, it faces several challenges and opportunities in balancing its strategic autonomy with global cooperation.
Challenges:
1. Climate Change: India needs to balance economic growth with reducing carbon emissions. This is hard because India relies on coal for energy, which conflicts with global climate goals.
2. Trade Policies: Protecting local industries while participating in global trade is tricky. India’s trade policies sometimes clash with international free trade standards.
3. Terrorism: India must work with other countries to combat terrorism. Sharing intelligence and resources is essential, but India also needs to maintain its security independence.
Opportunities:
1. Global Leadership: India can lead on issues like climate change and sustainable development, influencing global policies while protecting its interests.
2. Economic Growth: Engaging in global trade and investment can boost India’s economy, creating jobs and driving innovation.
3. Diplomatic Influence: By strengthening ties with various countries, India can enhance its diplomatic influence and navigate complex international relations.
In summary, India must balance its desire for strategic autonomy with the need for global cooperation by leveraging its growing influence, participating actively in international forums, and implementing smart domestic policies.
See lessFuture of climate change???
If no significant action is taken to address climate change, the long-term consequences could be severe and widespread. Here are some of the predicted outcomes: Significant Temperature Rise: Global temperatures are expected to rise by 2°C to 4.5°C (3.6°F to 8.1°F) above pre-industrial levels by theRead more
If no significant action is taken to address climate change, the long-term consequences could be severe and widespread. Here are some of the predicted outcomes:
- Significant Temperature Rise: Global temperatures are expected to rise by 2°C to 4.5°C (3.6°F to 8.1°F) above pre-industrial levels by the end of the century, leading to widespread heatwaves and altered weather patterns.
- Sea Level Rise: Melting ice caps and glaciers, along with thermal expansion of seawater, could cause sea levels to rise by 0.6 to 1.1 meters (2 to 3.6 feet) by 2100, resulting in coastal flooding, habitat loss, and displacement of communities.
- Increased Extreme Weather Events: The frequency and intensity of extreme weather events such as hurricanes, droughts, and heavy rainfall are expected to rise, causing more frequent and severe natural disasters and associated economic and human losses.
- Agricultural Disruption: Changes in temperature, precipitation patterns, and extreme weather can reduce crop yields and disrupt food production, leading to food shortages, higher prices, and increased risk of famine in vulnerable regions.
- Biodiversity Loss: Many species will face extinction due to shifting habitats and climates, leading to the collapse of ecosystems such as coral reefs and rainforests, and significantly reducing biodiversity which impacts ecosystem services vital for human survival.
See lessAssess the Union government's role in the preservation and sustainable management of India's natural resources, including forests, wildlife, and water bodies, and the coordination with the States in this regard.
The Union government plays a significant role in the regulation and development of the energy sector in India, with a focus on managing both traditional and renewable energy resources. Here are some of the key areas where the government is involved: Policy Framework: The government sets the overallRead more
The Union government plays a significant role in the regulation and development of the energy sector in India, with a focus on managing both traditional and renewable energy resources. Here are some of the key areas where the government is involved:
Policy Framework: The government sets the overall policy framework for the energy sector, including setting targets for energy production, consumption, and efficiency. The Ministry of Power (MoP) is responsible for formulating policies and regulations for the power sector.
Licensing and Permitting: The government grants licenses and permits to companies for exploration, production, transmission, and distribution of energy resources. The Ministry of New and Renewable Energy (MNRE) is responsible for issuing licenses and permits for renewable energy projects.
Regulation of Energy Markets: The government regulates the energy markets to ensure fair competition, transparency, and efficiency. The Central Electricity Regulatory Commission (CERC) regulates the electricity market, while the Petroleum and Natural Gas Regulatory Board (PNGRB) regulates the oil and gas sector.
Development of Infrastructure: The government invests in building infrastructure for energy transmission, distribution, and storage. The Power Grid Corporation of India Limited (PGCIL) is responsible for building and maintaining the national grid.
Subsidies and Incentives: The government provides subsidies and incentives to encourage the development of renewable energy projects. For example, the MNRE offers incentives such as tax credits, interest-free loans, and guarantees to attract investment in renewable energy projects.
Research and Development: The government supports research and development in the energy sector through funding for research institutions and laboratories. The Department of Science and Technology (DST) is responsible for funding research in areas such as renewable energy, energy efficiency, and energy storage.
Energy Efficiency: The government promotes energy efficiency through various initiatives such as the Energy Conservation Act, which requires industries to adopt energy-efficient practices.
Renewable Purchase Obligations (RPOs): The government has implemented RPOs that require electricity distribution companies to purchase a certain percentage of their electricity from renewable sources. This has led to an increase in the adoption of renewable energy sources such as wind, solar, and biomass.
Traditional Energy Resources:
Coal: The government has taken steps to reduce its dependence on coal by promoting cleaner coal technologies and increasing the use of natural gas.
Oil: The government has implemented policies to reduce oil imports by promoting domestic oil production and increasing the use of alternative fuels such as biofuels.
Natural Gas: The government has invested in building natural gas infrastructure to increase domestic production and reduce dependence on imported gas.
Renewable Energy Resources:
Solar Energy: The government has set ambitious targets for solar power generation and has implemented policies such as the Jawaharlal Nehru National Solar Mission to promote solar energy.
See lessWind Energy: The government has set targets for wind power generation and has implemented policies such as the National Wind-Solar Hybrid Policy to promote hybrid projects.
Hydro Energy: The government has invested in building hydroelectric power projects to increase domestic power generation.
Biomass Energy: The government has promoted biomass-based power generation through policies such as the National Bioenergy Policy.
In conclusion, the Union government plays a critical role in regulating and developing India’s energy sector, with a focus on managing both traditional and renewable energy resources. The government’s efforts have led to significant growth in the renewable energy sector, with solar and wind power becoming increasingly important components of India’s energy mix.