Model Answer

India’s agriculture sector, contributing 14% to the country’s GHG emissions, faces significant challenges. However, traditional knowledge offers sustainable solutions for promoting environmental conservation and agricultural resilience. These age-old practices, rooted in local ecosystems, can contribute to more sustainable farming practices.

1. Effective Resource Management

Traditional knowledge emphasizes efficient resource management, such as the Kaipad system in Kerala. This unique fish-farming technique uses tidal water for irrigation while integrating rice and fish farming, promoting a balanced ecosystem. This system ensures optimal use of water resources while maintaining agricultural productivity.

2. Rainwater Harvesting

In the face of depleting groundwater resources, traditional rainwater harvesting systems offer a sustainable solution. One notable example is the Zabo System of Nagaland, where a protected forest area on top of a hill collects rainwater, which is then stored in tanks and used for irrigation in the paddy fields below. This system helps conserve water and supports agricultural sustainability.

3. Food Security

Traditional agricultural practices help preserve local ecosystems and enhance food security. The Bari system of Assam, a home garden method, utilizes kitchen waste and fallen tree leaves as manure to grow local crops like jackfruit, banana, and mango. This promotes biodiversity and supports local food systems.

4. Organic Manure

In regions like Kerala, traditional knowledge has fostered the use of organic manure, where farmers mix cow dung, used fuel wood ash, and coconut fiber waste to create chemical-free fertilizers. This practice promotes soil health and reduces reliance on synthetic chemicals.

5. Crop Diversification and Pest Management

The Baranaja system, practiced in the Himalayas, involves growing diverse crops without pesticides, promoting biodiversity and protecting crops from extreme climatic events. Additionally, natural pest management methods, such as using neem-based pesticides, reduce the dependence on harmful chemicals and enhance sustainability.

Conclusion

Reviving and integrating India’s traditional knowledge systems into modern agricultural practices can play a crucial role in enhancing sustainability, protecting the environment, and securing food supplies in the face of climate change. These methods offer valuable lessons for building a more resilient agricultural system.

Model Answer

Challenges in Improving Fiscal Health of States in India

Despite several initiatives to improve the fiscal health of states in India, challenges remain that require focused attention and reform. Below are the key issues:

1. High Fiscal Deficit and Debt Levels

India’s states faced a significant fiscal burden in recent years. In 2020-21, the gross fiscal deficit (GFD) was 4.1% of GDP, and the debt-to-GDP ratio stood at 31.1%, both exceeding the targets set by the Fiscal Responsibility and Budget Management (FRBM) review committee. Although measures like the Special Assistance Scheme (₹1,00,000 crore interest-free loans) and reform-linked borrowing limits have helped, the GFD is still projected to be 3.4% in 2022-23, which remains higher than the FRBM target of 3%. Similarly, debt levels are expected to ease slightly to 29.5% but remain above the recommended 20% (Source: Government of India Budget Documents).

2. Rising Share of Cess and Surcharge

The increase in the Centre’s reliance on cess and surcharges has reduced the share of tax revenues devolved to states. These non-shareable taxes have grown from 8% of total revenue in 2011-12 to nearly 28% in 2021-22, severely affecting state budgets (Source: Ministry of Finance, Government of India).

3. Dominance of Committed Expenditures

A substantial portion of state budgets is consumed by committed expenditures, such as salaries, pensions, and interest payments. In 2022-23, states allocated about 54% of their revenue receipts to these non-discretionary costs, leaving less room for developmental spending (Source: Reserve Bank of India).

4. Low Own Revenue Generation

Many states continue to struggle with low own revenue due to inefficient state-owned enterprises, weak distribution companies (discoms), and poor tax administration. This is exacerbated by challenges in improving tax compliance and forecasting revenue accurately (Source: NITI Aayog Reports).

5. Populist Schemes and Fiscal Stress

Programs like farm loan waivers and old pension schemes, which have been implemented by some state governments, add to the fiscal strain. While politically popular, these schemes result in long-term fiscal obligations that hinder fiscal consolidation (Source: Indian Economic Survey).

Conclusion

To enhance fiscal health, states must focus on improving revenue generation, reducing fiscal deficits, and ensuring that populist measures do not undermine fiscal discipline. Debt consolidation and fostering private sector investment should be prioritized for sustainable fiscal management.

Model Answer

Reasons for Persistent Poverty in India

Despite significant efforts to eradicate poverty, India continues to grapple with persistent poverty, affecting approximately 228.9 million people, making it the country with the largest number of poor individuals globally . Several factors contribute to this ongoing issue:

1. Limited Fiscal Capacity: Both the central and state governments face constraints in their fiscal capacity, which limits their ability to allocate sufficient resources for poverty eradication initiatives. This financial limitation hampers the effectiveness of various schemes aimed at alleviating poverty.
2. Corruption and Administrative Inefficiencies: Many poverty alleviation programs suffer from corruption and inefficiencies in administration, preventing benefits from reaching the most disadvantaged populations. This misallocation of resources undermines the intended impact of these initiatives .
3. Agricultural Challenges: The fragmentation of land holdings and disguised unemployment due to surplus labor contribute to low agricultural productivity. As agriculture is a primary source of income for a significant portion of the population, these challenges hinder income growth and perpetuate poverty .
4. Population Growth and Resource Limitations: Rapid population growth exacerbates the strain on limited resources, making it difficult to invest adequately in human capital. This lack of investment affects the overall well-being of the poor, limiting their opportunities for advancement .
5. Inequitable Economic Growth: The lack of inclusive growth and inadequate wealth distribution means that the benefits of economic growth do not reach all segments of society. The trickle-down effect of economic progress is minimal, leaving many still in poverty .
6. External Economic Shocks: International events such as wars and pandemics can destabilize macroeconomic conditions, leading to inflation and other economic challenges that further entrench poverty .

To effectively tackle persistent poverty, India needs to shift its spending focus from broad subsidies to targeted support for vulnerable populations and increase public investment in long-term development initiatives .