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THE GIST of Editorial for UPSC Exams : 01 June 2020 (Social security: Digital platform on which govt on-boards all existing PDS outlets is needed (Financial Express))



Social security: Digital platform on which govt on-boards all existing PDS outlets is needed (Financial Express)



Mains Paper 2:Social Justice
Prelims level: JAM trinity
Mains level: Role of digital platform to implement social security scheme

Context:

  • JAM trinity notwithstanding, the country doesn’t have a quick-fix solution to expand the coverage of food, health cover or emergency financial assistance to the vulnerable and in need.

About:

  • A utility that can can disburse social security benefits on the fly is being missed as the corona pandemic sweeps India.
  • JAM trinity notwithstanding, the country doesn’t have a quick-fix solution to expand the coverage of food, health cover or emergency financial assistance to the vulnerable and in need, like migrant labourers and the unemployed.
  • Another layer over Aadhaar will be topical, which is more flexible than Jan-Dhan accounts and PDS.
  • The first building block of the .................................................................................................

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Benefits of having online national marketplace:

  • Having created an online national marketplace, it should be possible for a PDS beneficiary to draw rations from any PDS outlet on the platform in multiple ways:
  • Visit the outlet of choice, buy rations and pay online using credit in the wallet. This can be done in a self-service mode using one’s own mobile phone. On assisted mode, the transaction can be completed on the device of the dealer by OTP, password or Aadhaar authentication.
  • Order online from any dealer covering the location and either collect rations from a pick-up centre or get home delivery with added delivery cost. This can be particularly useful for the old and infirm. The government can credit an extra value to cover the cost of delivery in deserving cases. Others pay for convenience, including scheduling a delivery after work hours to save the day’s wages.
  • Besides where, when and whom to buy, there will be a choice of what to buy. Depending on choice, the value on the wallet may be used with flexibility to buy rice or wheat. A diabetic may prefer to substitute sugar with grain or oil.

Technology system:

  • An Amazon-like platform implies open source, open system API-based built which will also be data-rich, capturing in meta detail all the transactions.
  • This data can be used to monitor, build and improve the services.
  • Access rights can be defined as per need of each participant, central and state governments included. The quality will be critical.
  • It best be outsourced to a competent incentive compatible private entity.
  • With a stake in the turnover, the platform operator will have an incentive to invest and continuously upgrade the platform, as also on-board both sellers and buyers.

Coverage to other areas:

  • Beginning with PDS, the platform may expand to cover fertilisers, seeds, Jan Aushadhi outlets and other social security benefits amenable to DBT.
  • Through inclusion of billing for utilities ............................................................................................................

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Way forward:

  • In an emergency, it should be possible to on-board additional beneficiaries using Aadhaar authentication to activate new accounts for essential services for a fixed duration.
  • As a contingency, a portion of the in-app wallet may be switched to an open one for cash withdrawal at designated points like ATMs, banks, post offices or other service points.
  • The proposed social security platform lends itself to roll out Universal Basic Income.
  • An in-app wallet that can only be used on it will be amenable to self-selection as the better-to-do will not find it attractive to be on the platform.
  • The big data the platform will generate will make for better targeting of social security benefits and basic income criteria.

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THE GIST of Editorial for UPSC Exams : 01 June 2020 (What India needs to do amid oil uncertainty in the Covid world(Financial Express))



What India needs to do amid oil uncertainty in the Covid world(Financial Express)



Mains Paper 3:International
Prelims level: Not much
Mains level: Energy scarcity in the oil market worldwide post threat to India

Context:

  • The post-Covid-19 world (will be) switching from “just in time” to “just in case”.
  • Last month the oil market dropped into negative territory for a day in the US; now the price of the same crude quality is above $30 per barrel.
  • The fine print of these reports is always caveated with the disclaimer “it all depends” on one or more of the comparably uncertain variables of economic growth: geopolitics, US-China, the timing of the development of an anti-Covid-19 vaccine or a combination of all.
  • The fact is that no one really knows how the petroleum sector will fare in the “new normal” of the post-Covid-19 world.

Avoiding twists and turns in the petroleum market:

  • India will need fossil fuels (coal, oil and gas) to ...........................................................................................

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Known unknownof the post-Covid-19 stress:

  • They know that Covid-19 has knocked the props from under the Indian economy.
  • They also know that every petroleum company, irrespective of whether they are in the private or the public sector, will face an increasingly uncertain and challenging future business environment.
  • What they do not know is the nature of these challenges and, therefore, the conditions, sine qua non, for managing them.

Oil consumption in India:

  • India consumes around 500,000 barrels of crude oil every day.
  • It imports 450,000 barrels per day, making it the third-largest crude market in the world. Every month, on average, 70 loaded VLCC (very large crude carriers), accounting for 10% of the global tanker market of 700 ships, bring crude oil to India.
  • Approximately 60% of this oil is discharged in and around the Jamnagar area, and then carried by pipelines to the refineries in Jamnagar, Mathura, Panipat, Bina and Bhatinda. And 50% or so is sourced from Saudi Arabia, Kuwait, Abu Dhabi, Iran and Iraq.
  • ONGC and OIL are strategically important PSUs. The policy support to these two companies and the importance of harnessing our indigenous oil and gas reserves.
  • This support has been premised on the view that oil supplies are relatively scarce and that prices will trend upwards. We now need to ask the question: What if, “just in case”, the oil market is structurally oversupplied and prices fall to such low levels that it makes no commercial sense for ONGC/OIL to expend public resources on “high-risk, high-cost” exploration?
  • Oil and gas are, after all, tradeables and can be purchased on the high seas? Should they not, given this possibility, contemplate redefining their core purpose and perhaps pivot away from oil and gas towards clean energy?

What is new are the circumstances wrought by Covid-19?

  • The issue of strategic reserves could, for instance, acquire a different hue. We have currently 11 days of reserve cover (5.33 MT) with plans to increase it to 24 days (11.83 MT).
  • To decide to build up ........................................................................................................................

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Conclusion:

  • This collaborative option would have to be considered to counter the “just in case” contingency of a prolonged and major disruption.
  • And if, indeed, such an option were acceptable, it could be extended to cover trading, crude purchases and co-freighting, subject, of course, to anti-trust and competition rules.

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THE GIST of Editorial for UPSC Exams : 27 May 2020 (Tackling the surge (The Hindu))



Tackling the surge (The Hindu)



Mains Paper 2:Health
Prelims level: India’s COVID-19 caseload
Mains level: Steps towards to improve infrastructure to the hospitals in India

Context:

  • With less than a week for Lockdown 4 to end, India’s COVID-19 caseload has surged past 1,40,000.
  • The relaxation of restrictions from the third phase of the lockdown onwards has added to the challenges faced by the country’s already overburdened healthcare system.
  • According to the Indian Council of Medical Research, the positivity rate has gone up to 7 per cent in the three weeks of Lockdown 3 and 4 — it was around 3 per cent at the end of Lockdown 2.
  • The mortality rate, reassuringly, has remained static at about 3 per cent.
  • Moreover, more than 80 per cent of the infected do not require hospitalisation.
  • Even then, the sheer scale of the pandemic seems to be taxing the resources of hospitals in most parts of the country and taking a toll on the health of medical professionals.
  • The death, on Sunday, of a COVID-positive nurse employed at a private hospital in Delhi, who was allegedly made to wear used PPEs, frames the difficulties of those at the frontlines of the battle against the virus.

Mobilise Public resources:

  • In the past two months, states have tried to mobilise public resources, rampup medical centres, and shore up quarantine facilities.
  • In most parts of the country, such efforts have, at best, produced mixed results.
  • In Delhi, more than 75 per cent of the beds earmarked for COVID-positive patients in private hospitals are already occupied.
  • Though the Delhi government claims that the situation is under control, it needs to be on high alert because the city has been adding more than 400 COVID cases daily for more than a week now.

Mumbai:

  • In Mumbai, as a report in this paper showed last week, the situation is much more critical.
  • There is an acute shortage .............................................................................................................

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Overwhelmed Medical professionals:

  • Overwhelmed by the pandemic, some medical facilities have turned up the pressure on medical professionals, particularly junior doctors and nurses.
  • Last week, the Gujarat High Court pulled up the state’s health minister and chief secretary for neglecting the problems faced by patients and staff at the Ahmedabad Civil Hospital.
  • Responding to an anonymous letter detailing the problems of the government hospital’s junior staff, the court described the healthcare facility as a dungeon.

Conclusion:

  • As the country’s COVID-19 caseload increases, policymakers and hospital authorities need to work at creative solutions to deal with the patient influx.
  • As a first step, they must treat healthcare workers in a humane manner, ensure their safety.

 

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THE GIST of Editorial for UPSC Exams : 27 May 2020 (How India can become self-reliant. (Indian Express))



How India can become self-reliant (Indian Express)



Mains Paper 2:National
Prelims level: Personal protective equipment
Mains level: Significant government reinvestment in public sector undertakings and research and development

Context:

  • Addressing the nation on the COVID-19 pandemic, Prime Minister Narendra Modi emphasised the necessity of a self-reliant. India.
  • He said the need was brought home by the absence of domestic production of personal protective equipment (PPE) when COVID-19 struck, but India initiated and quickly ramped up PPE production.
  • Mr. Modi said there needs to be improvement in quality and domestic supply chains going forward.
  • If this is to happen though, India will have to make major course changes in development strategies.
  • Much has changed since the self-reliance model of the Nehruvian era, so a perspective for Indian self-reliance in science and technology and industry in a globalised world is long overdue.

Not Globally competitive:

  • Self-reliance in state-run heavy industries and strategic sectors in the decades following independence had placed India ahead of most developing countries.
  • In the 1970s and 80s, however, India ............................................................................................

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Missing out on third Industrial Revolution:

  • India completely missed out on the ‘third industrial revolution’ comprising electronic goods, micro-processors, personal computers, mobile phones and decentralised manufacturing and global value chains during the so-called lost decade(s).
  • Today, India is the world’s second largest smartphone market.
  • However, it does not make any of these phones itself, and manufactures only a small fraction of solar photovoltaic cells and modules currently used, with ambitious future targets.\
  • At the turn of the millennium, India embarked on liberalisation, privatisation and globalisation.
  • The very concept of self-reliance was rubbished, in the belief that it was tantamount to reinventing the wheel when advanced technologies could simply be bought from anywhere at lower costs.

Two related ideas have prevailed since then, and neither delivered the desired results:

First Idea:

  • The first was that public sector undertakings (PSUs) are, by definition, inefficient and sluggishfor the competitive globalised scenario.
  • No effort was made to engendereither real autonomy or a transition to new technological directions.
  • Instead, PSUs with capability and scale for the task were undermined or abandoned, along with many nascent research and development efforts.
  • On the other hand, the private sector displayed little interest in these heavy industries and showed no appetitefor technology upgradation.
  • With entry of foreign corporations, most Indian private companies retreated into technology imports or collaborations.
  • Even today, most research and development in India is conducted by PSUs, and much of the smaller but rising proportion of private sector research and development is by foreign corporations in information technology and biotechnology/pharma.
  • Given the disinclination of most of the private sector towards research and development and high-tech manufacturing, significant government reinvestment in PSUs and research and development is essential for self-reliance.

Second Idea:

  • The second idea was that inviting foreign direct investment and manufacturing by foreign majors would bring new technologies into India’s industrial ecosystem, obviatingthe need for indigenous efforts towards self-reliance.
  • However, mere setting up of manufacturing facilities in India is no guarantee of absorption of technologies.
  • There is no evidence from any sector that this has taken place or has even been attempted.
  • The fact is, foreign majors jealously guard commercially significant or strategic technologies in off-shore manufacturing bases.
  • The key problem of self-reliance is therefore neither external finance nor domestic off-shore manufacturing, but resolute indigenous endeavour including research and development.

Other Countries in Asia:

  • Experience and achievements in other countries in Asia attest to this, and also contradict the notion that self-reliance is a hangover from Nehruvian ‘socialism’.
  • Learning from Japan’s post-war success, countries like South Korea, Taiwan, Singapore and Hong Kong took huge technological and industrial strides in the 1970s and 80s.
  • South Korea, in particular, climbed ............................................................................................................

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CHINA:

  • China is, of course, unique in scale and in its determination to become a superpower not just geopolitically but also in self-reliant S&T and industrial capability.
  • China advanced purposefully from low-end mass manufacturing to a dominant role in global supply chains.
  • It has now decided on shifting to advanced manufacturing and has set itself a target of becoming a world leader by 2035 in 5G, supercomputing, Internet of Things, artificial intelligence (AI), autonomous vehicles, biotech/pharma and other technologies of the ‘fourth industrial revolution’.

Way ahead:

  • Unfortunately, India may well have missed the bus in many of these technologies in which the U.S., Europe and China have established perhaps insurmountableleads.
  • Yet self-reliant capabilities in electric and fuel cell vehicles, electricity storage systems, solar cells and modules, aircraft including UAVs, AI, robotics and automation, biotech/pharma and others are well within reach.
  • Large-scale concerted endeavours would, however, be required, since self-reliance will not happen by itself.
  • State-funded research and development, including in basic research, by PSUs and research institutions and universities needs to be scaled-up significantly, well above the dismal 1% of GDP currently.
  • Upgraded and reoriented PSUs would also be crucial given their distinctive place in the ecosystem.
  • Private sector delivery-oriented research and development could also be supported, linked to meaningful participation in manufacturing at appropriate levels of the supply chain.

Conclusion:

  • Finally, India’s meagre public expenditure on education needs to be substantially ramped up, including in skill development.
  • And no country has developed without a much stronger public health system than what we have in India.

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THE GIST of Editorial for UPSC Exams : 27 May 2020 (The common factor: On China in U.S. politics(Indian Express))



The common factor: On China in U.S. politics(Indian Express)



Mains Paper 2:International Relations
Prelims level: US China relations
Mains level: Role of China’s on U.S. Politics

Context:

  • President Donald Trump is entering deeper into a political quagmireon three related fronts.
  • America’s death toll from COVID-19 is perilously close to the psychologically important mark of 100,000;
  • the economy looks to be on the verge of slipping into a deep recession, if not outright depression, in the wake of the pandemic impact across sectors.

China being a common factor:

  • There is one factor that links all three political hazards he is facing — China.
  • On the pandemic front, Mr. Trump has regularly tweeted to the effect that the novel coronavirus ought to be called the “China virus”
  • While Mr. Trump appeared relatively more mollifiedafter a call with Chinese President Xi Jinping in late March, he reverted to name-calling a few weeks thereafter.
  • Beijing meanwhile has concertedly pushed a campaign around the message that the virus contrary to any publicly verified evidence originated outside China.
  • On the economic front, the trade war that disturbed global markets through most of 2019 appeared to be near a resolution when Washington and Beijing inked the ‘phase one’ pact for lower tariffs and trade concessions this January.
  • The pandemic appears to have set that process back considerably:
  • Another side will be in the mood to make concessions given that tens of millions of jobs have been lost in the U.S. and China is far from an economic recovery.

Upcoming Presidential Poll:

  • It is however the third factor, the presidential poll in November, that could most significantly alterthe landscape of conflict-riddenbilateral ties.
  • China is now a dominant ..........................................................................................

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Third Way:

  • There is, however, a third way. Some analysts are describing the confrontation between both nations as the potential “New Cold War”
  • If he steps back from the brink of what, based on the understanding that neither side would stand to gain from the cumulative tally of economic and geopolitical conflict, he may averta clash.
  • In doing so he might win over economically insecure, independent and undecided voters across the U.S., who are important to secure an election victory.
  • Not only the U.S. and China, but the world at large, might stand to gain if he did that.

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THE GIST of Editorial for UPSC Exams : 27 May 2020 (Oil price pickle: On fuel duty hike (Indian Express))



Oil price pickle: On fuel duty hike (Indian Express)



Mains Paper 3:Economy
Prelims level: Not much
Mains level: Deregulation of Oil Prices

Context:

  • Union Petroleum Minister Dharmendra Pradhan’s recent remark that the Centre is taking a ‘cautious and conscious approach’ of ensuring a balance in fuel prices and aims to use the resultant savings for welfare is on the face of it unexceptionable.
  • With global oil prices still about 45% lower than 2019 closing levels despite coordinated supply cuts by major producers, India had an opportunity to pass on the benefit to consumers and provide a fillipto becalmedconsumption.

Deregulation of Oil Prices:

  • That the ‘deregulated’ oil marketing companies chose not to reduce pump prices, even when crude tumbled last month, could be attributed to their caution amid a sharp slumpin demand in the wake of the nationwide lockdown.
  • It is the government’s decision, earlier in May, to raise Excise Duty on petrol and diesel for a second time in less than two months that raises several concerns.
  • For one, subsequent to the latest increase the Centre’s tax revenue on a litre of petrol sold by IOC in Delhi as on May 16 was 1.8 times the fuel’s freight inclusive base price of ₹18.28 and represented 46% of the final retail price of ₹71.26.
  • With economic activity brought to a near standstill by the lockdown the Centre’s overall revenue prospects have come under severe strain, and from that perspective the government’s move to maximise its takings from transport fuels is understandable.
  • Still, the fact that the government has consistently tinkeredwith the duty structure through recent years of largely benignoil prices, undermines the benefits from pricing deregulation that ought to have accruedto oil companies and consumers.

No demand for Oil:

  • Back in 2018, ahead of key Assembly elections, the Centre had cut the excise duty at a time when global crude prices were on the ascentin order to minimise any electoral fallout from unchecked fuel costs.
  • The government’s goal of maximising revenue from fuel ............................................................................................................................

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Conclusion:

  • With potential investors unlikely to be impressed by the lack of autonomy in the sector, it is in the government’s interest not to risk the health of the goose that lays the golden eggs.
  • The increased duty on fuel can fund welfare, but arbitrary methods will have implications.

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(The Gist of PIB) Nhai Signs MoU with NIIF for funding highway projects [JULY-2019]


    (The Gist of PIB) Nhai Signs MoU with NIIF for funding highway projects [JULY-2019]


Nhai Signs MoU with NIIF for funding highway projects

  • National Highways Authority of India (NHAI) signed an MoU with National Investment and Infrastructure Fund (NIIF) for funding highway projects.

About:

  • NIIF is an investor-owned fund manager, anchored by the Government of India (GoI) in collaboration with leading global and domestic institutional investors.
  • The Indian government has 49 % stake in NIIF with the rest held by marquee foreign and domestic investors.
  • NIIF was set up as an alternative investment fund (AIF) in December 2016 with a planned corpus of ₹40,000 crore.
  • Major objective is to provide long-term capital to the country’s infrastructure sector.

Funds managed:

  • NIIF currently manages three funds each with its distinctive investment mandate namely (1) Master fund, (2) Fund Of Funds and (3) Strategic Fund.
  • The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).

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(The Gist of PIB) Kendriya Bhandar [APRIL-2020]

(The Gist of PIB) Kendriya Bhandar

[APRIL-2020]

Kendriya Bhandar

  • Responding to the call of the Hon Prime Minister of India in the wake of the COVID 19 pandemic, Union Ministries of Personnel, Public Grievances, Pensions and DoNER have been taking a series of measures after the declaration of the Lockdown.

About:

  • Kendriya Bhandar, which functions under the Department of Personnel and Training (DoPT) has
    taken the unique initiative of providing “Essentials Kits” to needy families.
  • Union Minister of State Dr Jitendra Singh handed over a consignment of 2200 Essential Kits for distribution to needy families in the wake of COVID-19.
  • Each such Kit consisting of 9 items is meant to assist one needy family for some time.

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(The Gist of PIB) Chitra Acrylosorb Secretion Solidification System [APRIL-2020]

(The Gist of PIB) Chitra Acrylosorb Secretion Solidification System

[APRIL-2020]

Chitra Acrylosorb Secretion Solidification System

  • The material titled Chitra Acrylosorb Secretion Solidification System has been developed by Scientists at Sree Chitra Tirunal Institute for Medical Sciences and Technology (SCTIMST).
  • Sree Chitra Tirunal Institute for Medical Sciences and Technology (SCTIMST) is an autonomous institute under the Department of Science and Technology (DST), Govt of India.

About:

  • The material titled Chitra Acrylosorb Secretion Solidification System’ is a highly efficient superabsorbent material for liquid respiratory and other body fluid solidification and disinfection.
  • This has been developed for the safe management of infected respiratory secretions. Acrylic Sorb can absorb liquids at least 20 times more than its dry weight and also contains a decontaminant for in situ disinfection.
  • Containers filled with this material will immobilize the contaminated fluid by solidifying it (gel-like), thus avoiding spillage and will also disinfect it. The canister containing the solidified waste canister can then be decomposed as all other biomedical waste by incineration.
  • In the developed system, suction canisters, disposable spit bags have been designed with “Acrylic Sorb” technology. They are lined inside with the AcryloSorb material. The AcryloSorb suction canisters will collect the liquid respiratory secretions from ICU patients or those with copious secretions treated in the wards.
  • The container will be spill-proof and can be sealed after use, making it safe and fit for disposal through the usual incineration system for biomedical wastes. Sealable and disposable AcryloSorb spit bags are provided for solidifying the sputum and saliva of ambulant patients with respiratory infections, which can then be incinerated.

Significance:

  • Generally, in the ICU, the secretions are sucked by a suction machine into bottles or canisters, which have to be emptied when full, subjected to a decontamination process in a sluice room and discarded through the waste fluid disposal systems.
  • Apart from the re-contamination risk during the handling involved in these processes, there is a need for well-equipped sluice rooms with disinfection facilities, which can be an issue in less well-equipped hospitals or makeshift isolation wards during epidemics.
  • This technology reduces the risk for the hospital staff, the need for personnel for disinfecting and cleaning the bottles and canisters for reusing them and makes the disposal safer and easier.

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(The Gist of PIB) Telemedicine Guidelines Approved for Homoeopathic Practitioners [APRIL-2020]

(The Gist of PIB) Telemedicine Guidelines Approved for Homoeopathic Practitioners

[APRIL-2020]

Telemedicine Guidelines Approved for Homoeopathic Practitioners

  • On the occasion of World Homoeopathy Day, Union AYUSH Minister approved Telemedicine Guidelines for Homoeopathic Practitioners.

About:

  • The World Homoeopathy Day is observed every year on April 10, to commemorate the birth anniversary of the founder of Homoeopathy, Christian Fredrich Samuel Hahnemann.
  • Homeopathy is an alternative medical system that was developed in 1796 by Samuel Hahnemann in Germany.
  • The name homeopathy is derived from the Greek words for ‘similar suffering’ referring to the ‘like cures like’ principle of healing.

Its key underlying theories are as follows:

  • A substance taken in small amounts will cure the same symptoms it causes if taken in large amounts.
  • The lower the dose of the medication, the greater its effectiveness.

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(The Gist of Kurukshetra) Rural Infrastructure in Union Budget 2020-21 [APRIL-2020]


(The Gist of Kurukshetra) Rural Infrastructure in Union Budget 2020-21

 [APRIL-2020]

Rural Infrastructure in Union Budget 2020-21

Introduction:

  • The government had launched the National Infrastructure Pipeline on December 31, 2019 worth Rs. 103 lakh crore. It consists of more than 6500 projects across sectors and is classified as per the projects’ size and stage of development.
  • The National Infrastructure Pipeline envisions improving the ease of living for each individual in the country. It will also bring in generic and sectoral reforms in development, operation and maintenance of these infrastructure projects.

I. Agriculture

  • Various provisions in the budget 2020-21 related to agriculture is mentioned in the first chapter of this summary.

II. Transport and Logistics

  • Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in December 2000 to provide connectivity to unconnected habitations as part of a poverty reduction strategy.
  • The outlay for this budget is only 2.63% higher than the budget outlet of 2019-20. The scheme needs to be boosted up and implemented fast to get the desired results.
  • Logistics – Railways will set up a “Kisan Rail’. “Krishi Udan” will be launched. A National Logistics Policy will be launched soon.
  • Inland Waterways – The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890 km Dhubri-Sadiya connectivity will be completed by 2022. Developing waterways has its impact on the ecosystem on both the banks of the river. This has been conceptualized as “Arth Ganga”.

III. Energy

  • The PM-KUSUM scheme removed farmers’ dependence on diesel and kerosene and linked pump sets to solar energy.
  • Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) was launched in 2015 with two components:
  • To separate agriculture and non-agricultural feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and\
  • To strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.
  • LPG Connections to Poor Households in the form of Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 to provide 8 crore deposit-free LPG connections to women of poor households. The scope of PMUY has now been expanded to cover all the poor families in the country subject to fulfilling terms and conditions.
  • Pradhan Mantri Sahaj Bijli Har Ghar Yojana in the form of “Saubhagya” was launched in September 2017. Under Saubhagya, free electricity connections to all households (both APL and poor families) in rural areas and poor families in urban areas are provided. Rural Electrification Corporation (REC) has been designated as nodal agency.
  • The scheme also provides Solar Photovoltaic-based standalone systems for un-electrified households located in remote and inaccessible villages/habitations.

IV. Water and Sanitation

  • The govt. is proposing comprehensive measures for one hundred water stressed districts. Focused programmes to assure safe water (Jal Jeevan Mission) and comprehensive sanitation (SBM) have been launched to support the health vision.
  • Water Supply – PM had announced Jal Jeevan Mission in August 2019. The govt. has approved Rs. 3.60 lakh crore for this mission.
  • Sewage Collection, Treatment and Disposal System – Govt. is committed to Open Defecation Free (ODF) plus in order to sustain ODF behavior and to ensure that no one is left behind.
  • The total outlay for Dept. of drinking Water and Sanitation is Rs. 21,518 crore, which is 7% higher than the previous outlay.

V. Communication/IT

  • The govt.’s vision is that all “public institutions” at gram panchayat level should be provided with digital connectivity.
  • Mapping of India’s genetic landscape is critical for next generation medicine, agriculture and biodiversity management. To support this development, the govt. will initiate two new national level science schemes to create a comprehensive database.

VI. Social and Commercial Infrastructure:

  • Affordable Housing – Pradhan Mantri Awas Yojana-Gramin is set up to achieve the objective of “Housing for All” by 2022. The scheme provides assistance for construction of 2.95 crore pucca houses for eligible rural households by March 2022 in phases.
  • Education – The new Education Policy will be announced soon.

Conclusion:

  • The budget is highly ambitious on the part of infrastructure development as it is going to absorb Rs. 100 million in the next five years. However, the budget is revealing the intention and the plans of the govt. are very optimistic but the allocations for the rural areas are almost on the constant rate.
  • This needs to be increased. It should be focused that the infrastructure development is not urbancentric.

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(The Gist of Kurukshetra) Accelerating Financial Inclusion in Rural India [APRIL-2020]


(The Gist of Kurukshetra) Accelerating Financial Inclusion in Rural India

 [APRIL-2020]

Accelerating Financial Inclusion in Rural India

Introduction:

  • RBI under the aegis of Financial Inclusion Advisory Committee initiated the process of formulation of National Strategy for Financial Inclusion for the period of 2019-24.
  • The strategy envisages providing universal access to financial services and a bouquet of basic financial facilities as its starting point.
  • The report has called for increasing outreach of banking outlets of scheduled commercial banks, payments banks, among others to provide banking access to every village within a 5 km radius of 500 households in hilly areas by March 2020.

What is Financial Inclusion (FI)?

  • FI may be defined as the process of ensuring access to financial services and timely and adequate credit needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.
  • As per the Census 2011, only 58.7% of households are availing banking services in the country. NSSO 70th Round Survey shows that institutional and non-institutional sources of credit have almost identical shares i.e. 49% and 51% respectively.

Approaches adopted by RBI for encouraging FI:

Regulatory approach:

  • Simplified KYC forms
  • Simplified branch authorization
  • Simplified savings account opening
  • Other rural intermediaries
  • Regional Languages
  • Self-regulators for MFI

Product approach:

  • No Frills Account/BSBD As
  • Kisan Credit Card
  • General Purpose Credit Card
  • Overdraft Facility

Private sector approach:

  • Business facilitator/Business Correspondents

Technology approach:

  • Mobile banking
  • Mobile wallet

Financial literacy approach:

  • Financial literacy centers
  • Financial Stability Development Council

Steps Taken to Increase Financial Inclusion:

  • The tectonic shift in financial inclusion came with the introduction of Pradhan Mantri Jan-Dhan Yojana (PMJDY) in August 2014. Issuing licenses for Small Finance Banks and Payment Banks by RBI gave further impetus to it.
  • The Ministry of Finance and National Informatics Centre have jointly developed a mobile app called Jan-Dhan Darshak, with a view to enable common people in locating financial service touch points.
  • With a clear understanding that deep penetration at affordable cost is possible only with effective use of technology, use of e-KYC to ease the account opening process, use of Aadhar-enabled payment system for interoperability, support for demonstrating banking technology (mobile-van fitted with ATM), bringing in all the cooperative banks and Regional Rural Banks on CBS platform by NABARD, and roping in financial technology players will help in completion of the mission.

Achievements:

  • Almost 80% of adult Indians have bank accounts, according to the Global Findex Database published in April 2018.
  • Financial Inclusion Plan (FIP) has been implemented in two phases up to August 2018.
  • The first phase, until 2015, aimed at providing universal access to banking facilities, basic banking accounts for savings and remittance and RuPay Debit card with an in-built accident insurance cover of Rs. 1,00,000.
  • In the second phase, banks extended overdraft facilities up to Rs. 5000 to Jan Dhan account holders and created the Credit Guarantee Fund as well.
  • These are creditable achievements for the country. However, getting a unique identity, having a bank account and using digital payments are just the foundations of Financial Inclusion.

Steps needed for achieving the most important objective of true financial inclusion:

  • Financial firms must understand the market and structure products accordingly. Since agricultural income is seasonal and lumpy, while lending to a farmer, they need to structure a loan
    product where the repayment cycle is seasonal and not monthly.
  • Financial literacy is one area where India still needs to do a great deal work.
  • Partnership between the government and providers of various financial products is the need of the hour so that risks and rewards of working with marginal populations are shared.
  • Provide rural communities with additional and alternative income streams. Microcredit products, for example, have the potential to transform the financially weak into micro-entrepreneurs.
  • There is a need to include FI as a mandatory subject at different levels right from school to higher levels of education.

Budget 2020-21:

  • It exerts more focus on building emerging technologies to drive Financial Inclusion in the country. As part of it, knowledge transfer centres are expected to be set up across new emerging sectors.
  • National Mission on quantum technology is proposed to be launched.
  • The govt.’s vision is to provide 100% digital access to all public institutions. Fibre-to-the-home through BharatNet will link 100,000 Gram Panchayats in the FY 2020-21.
  • Another step proposed towards combating financial exclusion is mobilizing more and more SHGs.
  • Under Deen Dayal Antyodaya Yojana for alleviation of poverty, 58 lakh SHGs have been mobilized.
  • Through Dhaanya Laxmi Scheme, more and more SHGs will be assisted by NABARD. Women SHGs in villages will distribute seeds to farmers with help of MUDRA scheme.
  • Certain amendments to the Banking Regulation Act are proposed for increasing professionalism, enabling access to capital and improving governance and oversight for sound banking through the RBI.
  • A 16-point formula has been proposed to revive agriculture and link it with allied sectors better than before to double the income of farmers in the next two years.
  • The incentive to boost the adoption of fintech by MSME and SME segment is of course a welcome move to enable them to get easy access to banking and financial services.
  • The refinance scheme of NABARD has been extended to NBFCs that are into agri-related lending. However, the mega challenges are around credit growth and the resultant liquidity crisis, which has not been addressed.

Conclusion:

  • At 4-5% growth now, problems appear aplenty but given our favorable demographics and with the significant reforms of the past few years such as GST, Insolvency code, and the thrust on formalization and digitalization of the economy, we have a solid framework to build on.

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(GIST OF YOJANA) Indian’s Quest for universal Coverage  [APRIL-2020]

(GIST OF YOJANA) Indian’s Quest for universal Coverage

 [APRIL-2020]

Indian’s Quest for universal Coverage

Introduction:

  • The new vision for health for India rest on four pillars namely - ensuring preventive health, providing affordable healthcare, improving supply of quality health services and effectively implementing government schemes in a mission mode.

First Pillar:

  • Under the first pillar of preventive health, there is special emphasis on yoga, Ayurveda and fitness. To reign in the harmful effects of smoking, the Government of India has gone a to put a complete ban on e-cigarettes.
  • The Government of India launched an ambitious scheme Ayushman Bharat. It is India’s bellwether in its efforts towards achieving UN Sustainable Development Goal 3.8, Universal Health Coverage (UHC).
  • Ayushman Bharat through its two components Health and wellness Centres (HWCs) and Pradhan Manti Jan Arogya Yojana (PM-JAY) addresses health holistically covering preventive care.

Second Pillar

  • The second pillar of this vision is affordable healthcare which is addressed by the second component of Ayushman Bharat scheme—PM-JAY.
  • PM-JAY Is the world’s largest publicly -funded health assurance scheme and provide more than 50 crore poor and vulnerable citizens with a health cover of Rs.5 lakh for cashless secondary and tertiary inpatient care.
  • Special pharmacies have been set up under which 800 critical drugs have been made available at affordable prices. Because of this initiative, the price of cardiac stent has been reduced by 80% and that of knee implants reduced by 50-70%.
  • Under the Pradhan Mantri National Dialysis Programme, lakhs of people are able to avail free dialysis at district hospital, bringing major for ESRD patients.

Third Pillar

  • As the third pillar of this vision, supply side expansion focuses on building medical infrastructure and providing quality medical education.
  • A key reform in this area is the National Medical Commission act, 2019. This will transform healthcare in the country by paving the way for the establishment of the country’s new regulator of medical education and certification.

Fourth Pillar

  • The fourth pillar effective implementation of government health schemes in mission – mode is essential to achieve the above goals.
  • The Government of India has also launched Poshan Abhiyan or National Nutrition Mission to tackle anaemia and stunting.
  • As a signatory to sustainable development goals, other mission mode Interventions include eliminating tuberculosis by 2025 and single use plastic by 2022.

Budget 2020-2021: Demonstration of strong political will towards health:

  • The union budget 2020-2021 demonstrates a strong commitment towards health. The increase in the budget allocation for health from Rs 62.398 crore in 2019-2020 to Rs 69.000 crore for 2020-2021 reaffirms this promise.
  • This budget gives a prominent place to citizen’s health. Several schemes have been strengthened giving emphasis to universal immunisation; mission Indradhanush has been expanded to cover 12 related diseases, including five new vaccines. Fit India movement is a vital part of fight against diseases resulting from lifestyle issues.
  • Reaffirming the Government’s promise to End Tuberculosis by 2025, the FM proposed to strengthen efforts under the “TB Harega Desh jeetega’’campaign.
  • The budget allocation for both components of Ayushman Bharat has been maintained with HWCs and Rs. 6400 crores.
  • Addressing the supply side constraints, especially in tier-2 and tier -3 cities the FM announced viability gap funding for setting up hospitals in the smaller cities. In the first phase, priority will be given to aspirational districts where no empanelled hospitals are currently available.
  • A tax on medical devices has been announced in the budget. This tax will Proceeds from this tax would be used to support this vital health infrastructure.
  • Addressing the challenge of strengthening fraud and abuse control and safeguarding security of patient data, the government has proposed a slew of measures like making use of frontier technologies such as Artificial Intelligence and machine Learning.

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(GIST OF YOJANA) The Economics of Water and Sanitation  [APRIL-2020]

(GIST OF YOJANA) The Economics of Water and Sanitation

 [APRIL-2020]

The Economics of Water and Sanitation

Introduction:

  • The most important differentiating factor which allowed the SBM to leverage the collective strength of 1.3 crore people was exactly the political leadership.

SBM: Recognized by African Nations:

  • In January 2020, a Ministerial Round Table discussion was held in Addis Ababa on ‘Scaling up Sanitation in Africa’. It was primarily based on the major lessons coming from the implementation of the Swachh Bharat Mission (SBM).
  • They unanimously agreed that the biggest bottleneck they faced in replicating the SBM model in their countries was that they were not able to convince their Finance Ministries to invest heavily in sanitation, like Indian has done since 2014.

Economics of Sanitation:

  • UNICEF recently estimated that the investments in sanitation in India are yielding a 400% return, with each rural household in an ODF village saving Rs. 50,000 on account of avoided medical spends, time savings and lives saved.
  • Meanwhile, moving ahead, the Toilet Board Coalition has estimated that the sanitation infrastructure and services market in India will be worth over $60 billion by 2021, creating many new jobs, even in the most rural areas of the country.
  • It is fairly clear now that investment in sanitation is actually a facilitator of broader economic, health and social gains.

Budget Provisions:

  • The government is committed to ensuring that this success is sustained.
  • The finance minister in the budget for 2020-21 has announced about Rs. 10,000 crore for rural sanitation to focus on ODF sustainability, biodegradable waste management, faecal sludge management and most importantly plastic waste management for all villages by 2024.
  • The government is committed to delivering its piped water supply. The PM announced the Jal Jeevan Mission (JJM) with the goal of ensuring piped water supply for all households of India by 2024.
  • Backing its commitment, in the budget for 2020-21, the government has already allocated a central share of Rs. 11,500 crore for the JJM, with an additional provision for extra budgetary resources of Rs. 12,000 crore.
  • The biggest impetus to the rural water and sanitation sector is the earmarking of 50% of the Rs. 90,000 crore grant to rural local bodies under the 15th Commission for drinking water and sanitation.
  • This approach will ensure that just like sanitation provision of water supply and its upkeep will also become everyone's business.

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THE GIST of Editorial for UPSC Exams : 25 May 2020 (Hardly the 1991 moment for agriculture(The Hindu))



Hardly the 1991 moment for agriculture(The Hindu)



Mains Paper 3:Economy
Prelims level: APMC Act
Mains level: Issues with APMC Act

Context:

  • The announcement of reforms in agricultural marketing by Finance Minister Nirmala Sitharaman, in May, has been hailed by some as the “1991” moment for agriculture.
  • While it does not mean much on the ground, it has successfully managed to deflect attention from the pittanceoffered by way of fiscal support to the agricultural sector.
  • Even then, the reforms are no more than reiterationsof earlier announcements.

Reforms announced:

  • The three reforms regarding agricultural marketing were the reforms in the Agricultural Produce Marketing Committee (APMC) Act, the Essential Commodities Act, and on contract farming.
  • All of these have been in discussion for almost two decades, with the APMC Act having already seen substantial reforms in many States.
  • The first comprehensive model act on APMC was proposed during 2003, and since then, similar efforts to push for more reforms have been proposed in 2007, 2013, and as late as 2017 by the present government.

APMCS and Changes by States:

  • The main argument against the APMC Act is that it creates barriers to the entry and exit of traders and makes the sale and purchase of agricultural produce compulsory for farmers as well as traders.
  • Some of the criticism regarding the functioning of the APMC is valid, to which State governments have been responsive; as many as 17 State governments having amended the APMC Act to make it more liberal.
  • In fact, the regulations and the functioning of mandis vary a great deal across States.
  • Kerala does not have an APMC .........................

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Political interference:

  • Despite these reforms, APMC mandis continue to be vilifiedfor all the illsplaguingmarketing infrastructure and the low prices received by the farmers for their produce.
  • The problem with mandis is not the regulation per se and the structure of mandis but the political interference in the functioning of the markets.
  • These are more obvious in case of large mandis specialising in commercial crops and fruits and vegetables, where production is regionally concentrated.
  • But even with these deficiencies, APMC mandis continue to play an important role in providing access to market for farmers.

The Bihar Example:

  • But did the reforms lead to a better outcome for farmers in those States where the reforms were undertaken? The best example is Bihar.
  • The general argument in favour of reforms is that it will allow private investment in marketing infrastructure as well as provide more choices to farmers, leading to better prices received by farmers.
  • In the case of Bihar, while no investment came in building market infrastructure, the loss of revenue due to the repealof the APMC also led to deterioration of existing infrastructure in the State.
  • The revenue collected from the APMC earlier was used not only for the modernisation of these market yards but also for the laying of roads and construction of other infrastructure to provide farmers better access to markets.
  • But after the repeal, there have been no takers for these market yards, with no investment in creating private mandis.
  • On the other hand, it has led to proliferation of private unregulated markets which charge a market fee from traders as well as farmers, and without any infrastructure for weighing, sorting, grading and storage.
  • Even in other States where there is deregulation to allow private traders, there is hardly any investment to create market spaces let alone provide other facilities.
  • There is also no evidence that farmers have received better prices in private mandis outside the APMC.

Invest in upgradation of infrastructure:

  • While there have been instances of collusion and corruption in the running of the APMC, they continue to provide essential services to farmers.
  • However, the vilification of APMCs has allowed the government to escape the responsibility of creating marketing infrastructure for millions of farmers.
  • As against the recommendation that a regulated market should be available to farmers within a radius of 5 km, currently regulated markets cover 457 sq. km.
  • There are more than 7,000 regulated ..............................

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Decline in demand:

  • For much of the period during the last two years, terms of trade have moved against agriculture, with agricultural commodity price inflation actually being negative for a large part of the last two years.
  • With underlying weakness in demand and obsessionwith inflation targeting through fiscaland monetarypolicies, most agricultural commodities have seen a sharp decline in demand and, consequently, prices received by farmers.
  • The argument for choice of markets is only valid as long as there are buyers with purchasing power in the market.
  • No amount of marketing reforms will lead to higher price realisation for farmers if the underlying macroeconomic conditions are unfavourable to agriculture and farmers.

Increase fiscal spending:

  • Even before the lockdown, the primary task of the government, especially the Finance Ministry should have been to increase fiscal spending to revive demand in the economy.
  • This has become even more ,..........................................

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Conclusion:

THE GIST of Editorial for UPSC Exams : 25 May 2020 (The need for a million worksites now(The Hindu))



The need for a million worksites now(The Hindu)



Mains Paper 3:Economy
Prelims level: National Rural Employment Guarantee Act
Mains level: Steps towards National Rural Employment Guarantee Act reforms

Context:

  • The plightof migrant workers in recent weeks has invaded television screens and stirrednation’s conscience. Alas, this is just the tip of the wave of hardships that is sweepingthrough the country.
  • The situation looks increasingly alarming in the light of a series of surveys conducted by Azim Premji University (APU) and other institutions.
  • The APU survey, for instance, found that 74% of the respondents were “consuming less food” today than before the lockdown.
  • Another survey was conducted by Farzana Afridi and her colleagues in low-income neighbourhoods of Delhi.
  • It found that 80% of the respondents had not earned any income during the lockdown, 90% reported “financial stress”, and about half were too anxious to sleep at night.

Some support from PDS:

  • The Public Distribution System is preventing the worst. The same surveys show that an overwhelmingmajority of poor households are currently receiving food rations.
  • The doubling of food rations for three ..............................

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Cash Transfer:

  • To cope with the crisis, poor households urgently need a chance to earn cash beyond small mercies.
  • Unconditional cash transfers are not easy to use for this purpose, because there is no simple way of identifying those in need.
  • Universal basic income is a nice idea, but when you do the maths, anything practical tends to reduce the “basic income” to a pittance.
  • India’s National Rural Employment Guarantee Act (NREGA) offers an obvious alternative, at least for rural areas: employment on demand at basic wages.

Unprecedented Demand:

  • The demand for NREGA work is stronger than ever. This is not surprising: most people would prefer to do some work and earn a little than to sit idle with empty pockets.
  • This huge demand contrasts with the resilientindifference of rural workers towards NREGA in recent years, due to low wages and erraticpayments.
  • Wages are still low, and payments are still far from timely and reliable; what has changed is that for most workers today, there is nothing better on the cards.

Jharkhand example:

  • We had a telling experience of this renewed demand for NREGA work in a number of deprived villages of Latehar districtin the last few days.
  • In this area, the idea of work on demand is still alien to most rural workers, so few of them take the initiative of applying for NREGA work.
  • But whenever we helped people to prepare work applications, men and women from almost every household in the village flocked to the spot with their job cards to fill the forms.

Filling work applications:

  • Without assistance, however, most workers would find it difficult to submit work applications.
  • The sad truth is that except in areas where rural workers are relatively empowered, work applications are not generally initiated by the workers themselves.
  • Instead, they are initiated on their behalf by .................................

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Large-scale opening of NREGA Works:

  • This is one reason why the scale of NREGA works remains very low in many States in spite of a huge demand for employment.
  • This situation calls for large-scale opening of NREGA works on a proactive basis.
  • Every village needs at least one major worksite, where a good number of people can work at short notice.
  • Ideally, workers should be allowed to enrol at the worksite. Further, large-scale employment generation should continue throughout the monsoon, the hardest period of the year for poor people in large parts of rural India.
  • Avertinga humanitarian disaster in the next few months calls for a veritable explosion of NREGA work.

Much can be done to facilitate this:

  • To expanding the list of permissible works, hiring more gram rozgarsevaks, simplifying the implementation process, mobilising para-teachers for work application drives, and so on.
  • And of course, top-down orders to expand the scale of works could work wonders. NREGA is not supposed to be top-down, but it does have a long history of top-down orders, and after all, this is an emergency.

Switch to payment?

  • It is also worth considering a return to cash payment of NREGA wages, at least as an option for the duration of the crisis.
  • This would not only help to ensure timely and reliable payment of wages, but also spare workers the ordealof extracting their wages from overcrowded banks or business correspondents.
  • Further, cash payment of wages would act as a tremendous incentive for rural workers to demand NREGA work, whatever it takes.
  • The idea of a return to cash payment of w...................................

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The NREGA budget:

  • Funds are not an immediate concern since the NREGA budget for 2020-21 has been raised to ₹1-lakh crore or so. But more is likely to be required to meet the tremendous demand for NREGA work.
  • It is important to ensure that funds never dry up: this happened every year in the last few years, leading to huge wage arrears.
  • NREGA is supposed to be a demand-driven programme with an open-ended budget; nothing in the Act authorises the government to impose a budget cap.

Conclusion:

THE GIST of Editorial for UPSC Exams : 25 May 2020 (The lockdown has highlighted stark inequalities(The Hindu))



The lockdown has highlighted stark inequalities (The Hindu)



Mains Paper 2:Governance
Prelims level: National Food Security Act
Mains level: Welfare schemes for vulnerable sections of the population by the Centre and States and theperformance of these schemes

Context:

  • The novel coronavirus is a global threat, but the pandemic has had an uneven impact across countries and within countries.
  • Historically, social inequality has ................................

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A disastrous decision:

  • Nobody is safe from the virus, but some classes are more protected than others. Class and wealth inequality means COVID-19 may pose greater risks to some as it poses a double threat to them.
  • In India, the lockdown favours the “balcony classes”, with no regard of its consequences for others.
  • Lockdown has exposed the precariousexistence of millions of migrants who operate the leversof the informal economy.
  • It has hit the workers in the informal economy as it has left them with no income, no food and no shelter.
  • The Centre for Monitoring Indian Economy estimates that about 140 million people have lost jobs since the lockdown.

No substantive support from the government:

  • Worldwide, the defining images of India’s lockdown are the caravansof migrant workers walking hundreds of kilometres to reach their homes.
  • Bereftof substantive support from the government or their employers, they want to escape the city and get back to their villages and families.
  • The SaveLife Foundation, a non-profit organisation working to prevent road accidents, has recorded nearly 2,000 road crashes and 368 deaths from March 25, when the lockdown began, to May 16.

Ministry guidelines:

  • The Union Home Ministry had asked shops, industry and commercial establishments to pay wages to workers during the lockdown but it offered no financial support should this not happen.
  • Social activist Harsh Mander asked the Supreme Court to order the government to pay wages. As expected, the apex court refused to intervene.
  • However, the Court intervened and asked the government not to resort to any coerciveaction against private companies that have not paid their workers full wages during the lockdown in accordance with a g.............................................

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Pitting the onus on citizens:

  • Prime Minister Narendra Modi, in one of his national addresses, asked each citizen to help nine poor families during the lockdown. This puts the responsibility for containing the consequences of the pandemic/lockdown squarely on the citizens, instead of instituting a government-backed social support system.
  • While the call to compassion is unremarkable, it has two implications — it minimises the urgency of state intervention required to deal with the economic crisis and it passes on the responsibility to citizens with an emphasis on citizens’ duties as against citizens’ rights.

Trend in other countries:

  • Quite the reverse is happening in many other countries which have introduced huge relief packages.
  • It involves large amounts of government expenditure to provide money for workers’ wages for up to three months, giving money to companies, unemployment allowance or direct benefit transfers.
  • The Spanish government unveiled sweeping reforms that led to nationalisation of all private hospitals.
  • The U.K. extended a worker furlough programme that pays people idled by the pandemic till the end of October. This is similar to the Paycheck Protection Programme in the U.S.
  • Both seek to preserve jobs rather than resorting to mass lay-offs.

Need of the transfer of cash:

  • In India, transfer of cash in the past two months of lockdown could have mitigatedthe most heart-breaking migrant crisis since the Partition in 1947. This was the basic requirement of justice.
  • But the government failed to transfer money to the distressed people or to small businesses and commercial establishments.
  • Failure to do so has exposed .................................................

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Greater Privatisation:

  • Seen against the scale of distress, the government’s economic stimulus package is niggardlybased on minimal fiscal cost and minimum social spending.
  • Just about everything is included in the fiscal stimulus ranging from repaying tax refunds to loans. At this rate, even a good monsoon can be considered fiscal stimuli.
  • The immediate relief to the people is not more than 1% of the GDP. The stimulus package has been rightly dismissed by almost everyone outside the government as too little, too late.
  • Most shocking is the slewof controversial reforms announced by the Finance Minister in the last episode of her five-part serial on the government’s stimulus package.
  • Instead of addressing the migrant worker crisis, the government has embarked on greater privatisation and further opening the economy to foreign capital. It has thrown open coal, defence production, space travel, among other areas, to the private sector.
  • These contentious pieces of economic reforms wouldn’t be counted as rescue package anywhere; moreover, it is wrong and unethical to push them under lockdown without parliamentary oversight.

MNREGA:

  • The much-deridedMahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and National Food Security Act (NFSA) have come to the rescue of the people.
  • Ironically, both schemes are legacies of the Congress-led United Progressive Alliance government and both were hugely criticised by the BJP. MGNREGA was described as a “living monument” of Congress failure in .................................

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Conclusion:

  • In the meantime, generous cash transfers can provide economic security. However, for this to happen, we need a more humane government responsive to the basic needs of its people.

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THE GIST of Editorial for UPSC Exams : 25 May 2020 (For farms and farmers: on launching of Rajiv Gandhi KisanNyay Yojana (The Hindu))



For farms and farmers: on launching of Rajiv Gandhi KisanNyay Yojana(The Hindu)



Mains Paper 3:Economy
Prelims level: Rajiv Gandhi KisanNyay Yojana
Mains level: Highlights of the Rajiv Gandhi KisanNyay Yojana

Context:

  • The Rajiv Gandhi KisanNyay Yojana launched by Chhattisgarh last week aims to supplement the income of the State’s 18 lakh rice, maize and sugarcane farmers by ₹10,000 to ₹13,000 per acre, through direct cash transfers.
  • Besides the Centre’s PM-KISAN scheme that provides ₹6,000 to farm families owning less than five acres of land, Telangana, Odisha and Andhra Pradesh have similar cash transfer programmes for farmers.

Minimum Support Price:

  • For balancing the interests of the consumer and the farmer, India has an extensive Minimum Support Price (MSP) regime which works in combination with the PDS.
  • But the efficiency of neither MSP procurements nor the PDS is uniform across the country.
  • The Centre says it fixes MSPs at 1.5 ................

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Chhattisgarh example:

  • In Chhattisgarh, there is preliminary evidence that tenants managed better rates from owners last year after the government gave incentives over and above MSPs to farmers.
  • The State is now designing a cash transfer scheme for landless labourers, according to Chief Minister Bhupesh Baghel.
  • But these interventions are only palliativeand cannot address the underlying problem, which is the non-remunerative nature of farming.

Market Driven Approach:

  • A more market-driven approach has often been proposed as the solution, and the agriculture-related components in the Centre’s response to the economic crisis caused by the pandemic appear to toe that line.
  • However, many previous arguments ...............................................

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Way forward:

  • For now, the Centre must announce the MSPs for the current season at the earliest — late announcements have added to the uncertainties for the farmers in recent years.
  • The creation of a buoyantagriculture sector will take much more, and those efforts must be made on a war-footing. Income support serves a purpose, but the farm sector needs a lot more.

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THE GIST of Editorial for UPSC Exams : 25 May 2020 (Time after time: On RBI repo rate cut (The Hindu))



Time after time: On RBI repo rate cut(The Hindu)



Mains Paper 3:Economy
Prelims level: REPO rate
Mains level: Impact of repo rate cut to reduce financial burden

Context:

  • The RBI has once again stepped in at the right time with measures that will reduce the cost of capital and ease the financial burden on businesses due to the extended lockdown.
  • With Friday’s repo rate cut of 40 basis points, the RBI has shavedoff 1.15 percentage points from the rate chart in the 58 days since the lockdown began, bringing the repo rate down to 4% and the reverse repo rate to 3.35%.

Measures taken by the RBI:

  • The central bank may have played out its rate cut card for now, it reserves some leverage for the future if economic conditions deteriorateeven further.
  • In fact, there are those who believe that the latest cut may be no more than a sentiment booster as economic activity is at its nadirand there are not many investment proposals on the anvilthat may benefit from the lower interest rate.
  • Existing borrowers may be the ........................................

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Empathy:

  • The RBI has also shown empathy by allowing accumulated interest on working capital loans to be converted into a term loan repayable by the end of this fiscal.
  • Borrowers would otherwise have been faced with the dauntingprospect of paying up their interest dues in one shot at the end of the moratorium period.
  • The extended period given .............................

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Conclusion:

Current Public Administration Magazine (APRIL 2020)


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1. Accountability and Responsibility

We must act responsibly, but government must also answer

When I arrived at the Delhi airport on the last flight from London, after the Indian government had issued a travel ban, the world had already known much about the deadly COVID-19 from the experiences of people in China and other affected countries. Visuals of the Chinese response to the pandemic — a temporary 1,000-bed hospital built in a matter of days, for example — were telling. The WHO had declared the outbreak a pandemic. We knew about the virility of the coronavirus, even when Iran and Italy were just about emerging as new epicentres.

India had substantial time in hand to learn from the data and practices of other affected countries. But the first travel advisory from the government — informing people that travellers from China be quarantined — was issued as late as February 5. And, it wasn‘t before March 2, that the government began looking at travellers from other countries as potential carriers.

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2. Indian Government and Politics

MPLADS is nimble tool for targeted intervention, scrapping it in crisis is counterproductive

With a brusque proclamation on April 6, the government decided to suspend operation of the Members of Parliament Local Area Development Scheme (MPLADS) for the next two financial years, and divert Rs 7,900 crore to the fight against COVID-19. The decision is both misconceived and mischievous. It would subvert the fight against COVID-19 rather than strengthen it.

It is important to understand the MPLADS, and why these resources are needed now more than ever. In the classical constitutional construct premised upon the principle of separation of powers, the legislature is not supposed to play an executive role. It is charged with the remit of enacting legislation and exercising sharp oversight over government functioning.

However, in any developing nation, the aspiration for better quality public goods and an enhanced standard of living is a legitimate desire. The expectation, therefore, from public representatives to contribute to this paradigm is strong.

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3. Significant Issues in Indian Administration

Success of lockdown will depend on implementation

India has been in a complete lockdown since March 25. Its 1.3 billion people, except for those providing essential services, are confined to their homes. In effect, this began three days earlier and might well continue beyond April 14. The rationale is to slow down the spread of COVID-19, and to reduce the peak level of infections, breaking the chain of transmission through social distancing. The objective of saving lives is unexceptionable.

However, for the well-being of people, saving livelihoods is just as important. Given the massive population and our dilapidated public health system, it might seem that a total lockdown is the only way to manage the spread of the virus. But this is not a fail-safe solution. The outcomes will depend upon its feasibility and implementation. Social, or physical, distancing is feasible among people who live in homes that have doors providing private spaces but is impossible in urban slums or shanty-towns where people live cheek-by-jowl, or even in rural India where the poor live in cramped spaces. The lockdown might simply distance the poor from the rest.

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4. Current Topic

Need to strike right balance between public health and individual’s right to privacy

The novel coronavirus outbreak has brought into sharp focus the promise and perils of data surveillance in the healthcare sector. As India faces an unprecedented public health crisis that has resulted in a countrywide lockdown, policymakers are trying to figure out exit strategies. Ultimately, lockdowns are brute force instruments and are unsustainable over long periods of
time. To bring daily life back to normal at the earliest, some governments are deploying apps for self-diagnosis, contact tracing, quarantine and curfew passes as mitigation strategies. For example, the Indian government has launched the Aarogya Setu app for contact tracing, and as a medium for sharing authentic information with citizens.

At this moment, when all of India is faced with a 21-day lockdown (and perhaps a partial lockdown after 21 days), that is estimated to cost $120 billion, privacy seems to be the least of our worries. However, privacy is a fundamental right of every citizen and the state has the primary responsibility of upholding this right. For example, when the COVID quarantine lists that help identify affected individuals are released in the public domain, the privacy of those individuals is violated, leading to social ostracisation.

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5. Financial Administration

Policing a lockdown: Every day brings challenges, heartbreaks, acts of inspiration

May you live in interesting times. Though this oft-repeated English expression is perhaps wrongly attributed to the Chinese, these are certainly interesting times — with a controversial Chinese connection. At the time of writing, the COVID-19 virus, widely believed to have originated in China, has infected more than 7,75,000 people across the world and killed more than 37,000. In India, it has mercifully had a slow start, with more than 1,600 infections and less than 50 casualties till April 2, despite the first case being detected two months ago on January 30.

Quite rightly, the government of India has paid heed to the devastation abroad, and imposed a 21-day lockdown across the country beginning March 23. Nothing of this scale has ever been attempted in human history. In the second week of the lockdown, it is hard to predict its effect on arresting the impact of the COVID-19 by April 14. For all those entrusted with enforcing the lockdown, and catering to the infected patients, the next two weeks are sure to stretch and challenge us in unimaginable ways. There was never a scarier time to be in uniform. There was never a more inspiring time to be in uniform

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