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Current Affairs- January 1, 2024

GS Paper III- Food Processing

1. Health tax on food


GS Paper II- State-related issues

2. How was North-East India 'discovered'?


GS Paper I, II- Population and allied issues; Government policies and interventions

3. Census will be delayed


GS Paper II- Government Policies and Interventions; Relations between the Center and the State.

4. Fiscal federalism


Prelims Booster:-

5. Guyana-Venezuela conflict

6. Srimukhalingam Temple

7. Green Deposit

Health tax on food

GS Paper 3: Food Processing

Context:
A health tax between 20% to 30% in addition to GST can be considered to be imposed on sugar, sugar-sweetened beverages (SSBs) like colas and juices as well as foods high in sugar, salt and fat (HFSS).


OVERVIEW:

  • The recommendation is an outcome of a UNICEF-funded project and will influence policies aimed at reducing the consumption of sugar and related products.
  • Niti Aayog is interested in understanding the impact of imposing health taxes and warning labels on food products to encourage healthy eating practices in Indian consumers.
  • For the study, sugar is defined as all forms of refined and unrefined sugar and gur.
  • This study is an outcome of a report published by Niti Aayog, which studies the impact of imposing health taxes and warning labels on food products to encourage healthy eating practices.


Whom to Tax:
    • Dr Beena Varghese, health economist and consultant, WHO and a co-author of the study says that the study does not recommend taxing households on the purchase of their regular ration of sugar.
    • The study insists that bulk consumers of sugar such as confectionery and sweet manufacturers may be taxed which may reduce their demand for sugar.
    • When the higher costs are transferred to consumers, demand for such products is expected to reduce.
    • Confectionery manufacturers purchase up to 55% of annual sugar produced in India.


Will it affect demand of Sugar:
Currently, sugar is taxed at 18% GST, if an additional 20-30% tax is imposed, this will take the tax to 38-48%.
Researchers have applied the metric of ‘Price Elasticity’ to determine if there will be any demand reduction.
They estimated that if the price of sugar is increased by 10%, demand for sugar will be reduced by 2% with all other factors driving the demand remaining constant.
For sugar-sweetened beverages, a health tax of 10-30% could result in a 7-30% decline in demand, while a 10-30% health tax for HFSS products would result in a 5-24% decline in demand.


Is it urgent in India?
India is the largest consumer of sugar in the world.
Global average consumption of sugar is 22 kg per person per year but an average Indian consumes 25 kg per year which is five times the WHO recommended threshold for free sugar intake.
India is facing a sugar epidemic with a rise in the sale of aerated drinks by 22.5% and a rise in all soft drinks by 24.8% from 2016 to 2019.


World Situation:
Up to 70 countries have imposed a health tax on sugar, SSBs and HFSS including Mexico, Chile, Saudi Arabia, Argentina and South Africa.
In Mexico, taxation on SSBs decreased consumption of taxed beverages (and increased purchase of bottled water) in the first year of implementation and reduced mean BMI in younger age groups.


NITI Aayog:
NITI Aayog, or the National Institution for Transforming India, was formed on January 1, 2015, to replace the Planning Commission.
It serves as the premier policy think tank of the Government of India.
The composition includes the Prime Minister as the Chairperson, along with the Vice-Chairperson, CEO, and various full-time and part-time members.
Additionally, it has regional councils to address specific issues and promote cooperative federalism.
The shift from the Planning Commission to NITI Aayog aimed at fostering cooperative federalism, innovation, and flexibility in policymaking
It is a non-statutory and non-constitutional body which is made via Executive action.


UNICEF:
UNICEF, the United Nations International Children's Emergency Fund, is a United Nations agency dedicated to providing humanitarian and developmental aid to children worldwide.
Established in 1946, its primary focus is on children's rights, health, education, protection, and well-being.
UNICEF works in over 190 countries and territories, collaborating with governments, NGOs, and communities to address issues such as malnutrition, access to clean water, education, and protection from violence and exploitation.
The organization plays a crucial role in advocating for policies that benefit children and ensuring their fundamental rights are upheld globally.


Related Search:
Trans-fat
Food Aultration
Ultra-Processed Food

Prelims Specific:
About Health tax on food
Whom to Tax?
Will it affect demand of Sugar?
Is it urgent in India?
World Situation
NITI Aayog/ UNICEF

How the Northeast India was ‘invented'?

GS Paper 2: Issues related to state

Context:
This term ‘Northeast’ was officially recognised On December 30, 1971, when two laws — the North-Eastern Areas (Reorganisation) Act and the North-Eastern Council Act — were enacted by Parliament.

    • Today, ‘Northeast India’ Or just ‘the Northeast’, is commonly used by Indians to refer to the diverse region of India’s Eastern sector, with its inhabitants becoming ‘Northeasterners’.
    • With these acts, Northeast India “emerged as a significant administrative concept.


About Northeast India:
Northeast India officially comprises eight states —
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
These states are a part of the North-Eastern Council, a statutory advisory body( Via North-Eastern Council Act, 1971) that plays a role in development planning, and region-level policy making.


Brief history of the Northeast INDIA:
  • Before Independence, five of these eight present-day states (Arunachal Pradesh, Assam, Meghalaya, Nagaland, Mizoram) were a part of colonial Assam.
  • Manipur and Tripura were princely states, with resident British political officers answering to the governor of Assam.
  • The British also made some of the communities of present-day Mizoram, Nagaland, and Meghalaya convert to Christianity.
  • This is the reason why the majority of the present community in these regions are Christians.
  • Post-independence, the Northeastern region consists of only Assam and the princely states of Manipur and Tripura.
  • Nagaland, Meghalaya, Arunachal, and Mizoram were part of the larger territory of Assam.
  • They subsequently got separated and formed their state.
  • The states of Tripura and Manipur were Union Territories till 1972 when they attained statehood.
  • During British rule, the city of Shillong served as the capital of the Assam province.
  • It served as the capital of undivided Assam until Meghalaya separated to form its state in 1972.
  • Post Meghalaya’s separation, the capital of Assam was shifted to Dispur whereas Shillong became the capital of present-day Meghalaya.
  • Arunachal Pradesh & and Mizoram got statehood in 1987.
  • Nagaland got statehood in 1963.


How did Sikkim become part of the North East?
Sikkim, before independence, was juridically independent but under British paramountcy.
Sikkim became an independent country in 1947 before being merged by India as a State in 1975.
In 2001 Sikkim was made a member of the North Eastern Council, and thus officially a part of the Northeast.


Significance of NORTH EAST:
The North East region of India holds significant importance for several reasons:
  • Cultural Diversity: The North East is characterized by rich cultural diversity with numerous ethnic groups, languages, and traditions. This diversity contributes to the cultural tapestry of India.
  • Biodiversity: The region is ecologically diverse, hosting a variety of flora and fauna. It is home to numerous endangered species and unique ecosystems, making it crucial for biodiversity conservation.
  • Strategic Location: Geopolitically, the North East shares international borders with countries like China, Bhutan, Myanmar, and Bangladesh. This makes it strategically important for India's diplomatic and security considerations.
  • Natural Resources: The region is endowed with abundant natural resources, including forests, minerals, and water bodies, contributing to the economic potential of the country.
  • Strategic Connectivity: Improving connectivity in the North East is essential for integrating the region with the rest of the country. It facilitates economic development, trade, and people-to-people interactions.


Challenges:-
The North East region of India faces several challenges that impact its development and overall well-being:
  • Insurgency: Historically, some states in the North East have experienced insurgencies, leading to security concerns and hindering normal economic and social activities.
  • Infrastructure Deficit: Limited and underdeveloped infrastructure, including inadequate road, rail, and air connectivity, poses a challenge to economic development and hampers access to essential services.
  • Economic Disparities: The region grapples with economic disparities, and the lack of diverse industries and job opportunities contributes to unemployment and underemployment.
  • Cultural Diversity: While cultural diversity is a strength, it also presents challenges related to preserving and balancing the identities and aspirations of the various ethnic groups within the region.
  • Limited Access to Education and Healthcare: In some areas, there is limited access to quality education and healthcare services, impacting the overall well-being and human development indices.
  • International Borders: The region shares international borders, and geopolitical issues with neighbouring countries can have implications for regional stability and development.


Related Search:
North-Eastern Areas (Reorganisation) Act
North-Eastern Council Act
NE Tribes

Prelims Specific:
About Northeast India
History of the Northeast
How did Sikkim become part of the North East?
Significance of NORTH EAST
Challenges

Census to be delayed

GS Paper 1; 2: Population and Associated Issues; Government Policies & Interventions.


Context:
The decennial Census exercise, initially scheduled to begin in 2020, will now be postponed till at least October 2024.

    • The deadline to freeze the administrative boundaries of districts, tehsils, towns, and municipal bodies, among others, has been extended till June 30, 2024.

Details:
    • The Additional Registrar General of India (RGI) thereby ruled out the Census exercise before the 2024 general election, which is expected to be held in April and May next year.
    • This is the ninth such extension of the deadline.
    • India has conducted the Census every 10 years since 1881.
    • The first phase of this decade’s Census was expected to begin on April 1, 2020, but had to be postponed due to the COVID-19 pandemic.
    • In the absence of fresh data, government agencies are still formulating policies and allocating subsidies based on the data accrued from the 2011 Census.
    • Initially, the Government attributed the pandemic to the postponement of the exercise, but the last three extensions have not specified any reason for the continuing delay.


Delay in Women Reservation:-
  • The 128th Constitutional Amendment Bill, 2023, also known as the Nari Shakti Vandan Adhiniyam.
  • The one-third reservation of seats for women in the Lok Sabha and State Assemblies shall come into effect after an exercise of delimitation is undertaken based on the relevant figures of the first Census recorded after the Act has commenced.
  • The Act received Presidential assent on September 29.
  • Union Home Minister told the Lok Sabha that the Census and the delimitation of seats exercise would be conducted after the general election, but did not specify the year when it would take place.
  • So it's not mandatory for the government to give women reservation in upcoming elections as the Constitution Amendment Act will not be implemented by then.


ABOUT CENSUS:
The Indian Census stands as the most extensive source of statistical data on the diverse characteristics of India's population.
Conducted every decade, this exercise has been a reliable source of information since its inception in 1872.
The first census occurred non-synchronously across different regions of India, marking the beginning of this decade-long data collection process.
The population census is a Union subject under Article 246 of India Constitution.
It is listed at serial number 69 of the seventh schedule of the constitution.


Origin of Census exercise:
    • The Census Act of 1948 and The Citizenship Act of 1955 provide a plan for conducting a population census along with the duties and responsibilities of census officers.
    • The Government of India decided in May 1949 to take steps to develop a systematic collection of data on population size, its growth, etc. and set up a CENSUS ORGANISATION.
Census Organisation:- This organization was created to prepare data on population figures including vital statistics and census.
Later, this office was also entrusted with the task of implementation of the Birth and Death Registration Act, of 1969 in the country.
Census Organization of India is a family of 34 numbers of Directorates of Census Operations functioning under the aegis of Office of the Registrar General & Census Commissioner, India, New Delhi.

Nodal Agency:
The responsibility of conducting the decadal census rests with the Office of the Registrar General and Census Commissioner of India, Ministry of Home Affairs, Government of India.


Benefits of Census:
  • Population Count: The primary purpose is to obtain an accurate count of the population, which is essential for effective governance, resource allocation, and representation.
  • Demographic Insights: Census data provides detailed demographic information such as age, sex, marital status, and migration patterns, offering insights into population dynamics.
  • Socio-Economic Data: Information on education, employment, income, and housing conditions helps in understanding the socio-economic structure of the population, aiding in policy formulation and development planning.
  • Resource Allocation: Governments use census data to allocate resources more efficiently, targeting areas and communities that require specific developmental interventions.
  • Policy Formulation: Policymakers use census data to formulate and evaluate policies related to healthcare, education, employment, and social welfare, ensuring they are aligned with the needs of the population.
  • Economic Planning: Census data is crucial for economic planning, as it provides insights into the workforce, employment trends, and income distribution, aiding in the formulation of economic policies.
  • Health Planning: Information on age distribution, prevalence of diseases, and healthcare access helps in developing strategies for public health initiatives and healthcare infrastructure.
  • Educational Planning: Census data assists in planning educational resources, identifying areas with a high concentration of school-age children and determining the need for educational facilities.

Concerns/Challenges of Delay in Census:-
  • Periodicity Impact: Irregular census cycles disrupt data comparability, hindering trend analysis and informed policy-making.
  • Reliability Concerns: Relying on 12-year-old data in a dynamic environment undermines data accuracy for developmental initiatives.
  • Political Representation: Census delays affect SCs and STs seat reservations, particularly problematic in areas with shifting population dynamics.
  • Welfare Measure Impact: Delaying the census affects government schemes relying on population data, leading to unreliable estimates and exclusions from welfare programs like the Public Distribution System (PDS).
  • House listing Challenges: Delay affects house listing accuracy, vital in India's address system-lacking landscape, leading to outdated information and an unreliable foundation for population enumeration.
  • Migration Data Absence: Outdated census data fails to capture migration patterns, impacting decision-making during crises like Covid lockdowns. Accurate data is crucial for identifying migrant needs and allocating appropriate support services.


Related Search:
Registrar General of India
Socio-Economic and Caste Census (SECC)
Bihar Caste- Census Exercise

Prelims Specific:
Reasons for delay in Census
About Census
Origin of Census exercise
Census Organisation/ Nodal Agency
Benefits of Census
Concerns/Challenges of Delay in Census

Fiscal Federalism

GS Paper 2: Government Policies and Interventions; Relations Between Centre and State.

Context:
The recent spat between the central and Tamil Nadu governments over flood relief after two spells of heavy rainfall in the State has sparked a debate on the criteria for awarding central grants to states.

    • Uttar Pradesh (UP) has secured the largest fund allocation under the 'Scheme for Special Assistance to States for Capital Expenditure/Investment.'
    • However, states like Andhra Pradesh, Kerala, Manipur, and Punjab have not received any allocation for the fiscal year 2023-24.


Role of the 15th Finance Commission in fostering fiscal federalism:
  • The increase in tax devolution from 32% to 41% empowers states, granting them greater fiscal autonomy.
  • This augments their ability to allocate resources for economic development and governance, effectively widening their fiscal buffer.
  • The commission's emphasis on sector-specific grants amounts to Rs 4.36 lakh crore, targeting areas like health, education, rural connectivity, and water conservation.
  • These grants aim to bridge development disparities among states.
  • By mandating a 31% share of the divisible pool for local governments, the commission allocates over Rs 2 lakh crore in grants to urban and rural local bodies.
  • This significant boost in local government finance enhances decentralization efforts, fostering stronger grassroots governance.


Fiscal Federalism:-
Fiscal federalism pertains to the distribution of financial authority and responsibilities among various government levels within a country.
It encompasses tax imposition and the allocation of different tax types between the central government and its constituent units.


Constitutional provisions of Fiscal Federalism:-
Constitutional Assignment of Powers: The Indian Constitution delineates taxation and expenditure powers, distinctly allocating responsibilities between the central and state governments.
Finance Commission: Mandated by Article 280, this constitutional body recommends tax revenue distribution, suggests methods to augment state financial resources, and advocates fiscal discipline.
Goods and Services Tax (GST): A comprehensive indirect tax system that replaces numerous central and state levies on goods and services. Administered by a GST Council comprising representatives from both central and state governments.
Grants-in-Aid System: This mechanism involves discretionary fund transfers (as per Article 275) from the central government to state governments for specific programs or purposes. It aims to address regional disparities and bridge developmental gaps.


Issues/ Challenges in Fiscal Federalism:-
Central Assistance for Disasters: In response to Tamil Nadu's request for ₹21,692 crore due to Cyclone Michaung, the central government allocated ₹450 crore to the State Disaster Response Fund (SDRF) and ₹500 crore for a Chennai flood mitigation project.
Expenditure/Investment: UP and Bihar secured the highest allocations in the last four years for meeting criteria in capital expenditure. However, Uttarakhand, Haryana, Kerala, and Punjab received 1-2% of the released amount. Andhra Pradesh, Kerala, Manipur, and Punjab did not meet criteria and received no allocation in 2023-24.
FRBM Act: The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 applies to all states, but several have missed its targets.
Issues with GST: The GST system has significantly reduced the financial autonomy of states, transforming India's indirect tax structure into a more unitary system.
GST Compensation: The Centre's failure to fulfill the compensation amount has become a contentious issue.
GST Council: The GST Council's voting structure, favoring the central government, sidelines the principle of consensus, giving it significant control in decision-making.


Related Search:
GST Council
About Finance Commission

Prelims Specific:
About Fiscal Federalism
Role of the 15th Finance Commission in fostering fiscal federalism
Constitutional provisions of Fiscal Federalism
Issues/ Challenges in Fiscal Federalism

Guyana-Venezuela Conflict

Context:
A British warship arrived in Guyana on Friday afternoon amid rising tensions from a border dispute between the former British colony and Venezuela.

About Guyana-Venezuela Conflict:
Background:-
The territorial dispute between Guyana and Venezuela originated during the colonial era with conflicting claims by British and Spanish powers in South America.
In the 1840s, the British government unilaterally surveyed the border, leading to a proposed line that encroached upon Venezuelan territorial claims.
An arbitration process in 1899 and subsequent bilateral agreements in 1905 attempted to resolve the boundary issue, yet it remains a point of contention.
The current de facto boundary, accepted by Guyana, follows the British line.
However, Venezuela maintains a historical claim to all territory administered by Guyana west of the Essequibo River.
Venezuela contends that the 1899 Arbitral Award determining the frontier between British Guiana and Venezuela is null and void.

Disputed Area:
The bone of contention centers around the densely forested Essequibo region of Guyana, which Venezuela lays claim to as its territory.
Venezuela's claim along the Essequibo River spans 1,034 kilometers before reaching Brazilian territory.
Approximately 142,795 square kilometers currently administered by Guyana are at stake in this dispute.
Offshore, the contested land territory encompasses a maritime area recently found to be rich in hydrocarbon resources, intensifying the significance of the boundary conflict.

Current Status:
Guyana brought the dispute to the International Court of Justice in 2018.
Despite Venezuela's withdrawal from the case, ongoing proceedings are underway.

Srimukhalingam temple

Context:
Archaeological Survey of India assured to send a note to UNESCO regarding the inclusion of the Srimukhalingam temple in Andhra Pradesh in the world heritage structures list.

About Srimukhalingam temple:
This temple stands within Andhra Pradesh, showcasing the Kalinga architectural style.
Situated along the banks of the Vamsadhara River, it venerates Lord Srimukha Lingeswara, an incarnation of Shiva.
Notably, the Shivalinga bears a facial representation of Lord Shiva.
Erected in the 9th century CE by Eastern Ganga Dynasty rulers, the temple boasts exquisite sculptures from that era. 

Legend holds that a visit here and a dip in the river can release one from the cycle of rebirth.
This site hosts three ancient temples, namely Madhukeshwara, Someswara, and Bheemeswara, showcasing the impressive architectural prowess of the Kalinga Kings.
Kamarnava II, hailing from the Eastern Ganga lineage, is credited with its construction.

UNESCO World Heritage Sites:
A World Heritage Site (WHS) holds legal protection under the UNESCO World Heritage Convention established in 1972 and administered by UNESCO.
UNESCO designates WHS based on cultural, historical, scientific, or other significant values, categorized into cultural, natural, or mixed (meeting both criteria).
These sites worldwide are deemed exceptional and carry immense value for humanity, each being a unique and historically identifiable landmark with profound cultural or physical significance.
Examples of WHS encompass a wide range, from ancient ruins, historical structures, and cities to deserts, forests, islands, lakes, monuments, mountains, and wilderness areas.
UNESCO marks these sites as protected zones, maintaining a list overseen by the World Heritage Committee as part of the International World Heritage Program.

Green Deposits

Context:
The Reserve Bank of India (RBI) said it is not mandatory for banks and NBFCs to raise green funds, but in case they intend to do so they must follow the prescribed framework.

About Green Deposits:
Green Deposits refer to interest-bearing deposits offered by banks and NBFCs for a predetermined period.
These deposits aim to support sustainable investments in environmentally beneficial sectors.
Exclusions from these deposits involve projects linked to new or existing extraction, production, and distribution of fossil fuels; Nuclear power generation; Direct waste incineration; Landfill projects; Hydropower plants exceeding 25 MW, and similar activities.
Monitoring of funds from green deposits involves annual independent third-party verification to ensure compliance with sustainability criteria.

Eligibility:-
Eligibility extends to all scheduled commercial banks, including small finance banks, and all deposit-taking NBFCs registered with the RBI, encompassing HFCs.
Denomination is restricted to Indian Rupees.
Sectors eligible for investment through these deposits include Renewable Energy, Energy Efficiency, Clean Transportation, Climate Change Adaptation, Sustainable Water and Waste Management, and Green Buildings, among others.