The Divergence Between Judicial Pronouncements and Executive Authority: A Critical Examination Post-Puttaswamy
Introduction
- In the landmark Puttaswamy vs Union of India case in August 2017, the Supreme Court of India recognized the fundamental right to privacy under the Constitution, marking a potential shift towards stronger protection of civil liberties.
- However, the practical application of this right, particularly in the context of executive actions such as income tax searches under Section 132, reveals a stark contrast between judicial pronouncements and executive authority.
Judicial Deference and Executive Authority
- Despite the constitutional affirmation of the right to privacy, the interpretation and application of statutes, notably Section 132 of the Income Tax Act, continue to reflect a culture of judicial deference to executive authority.
- This section grants sweeping powers to tax authorities for searches and seizures, raising concerns about arbitrary and unchecked governmental actions.
Historical Evolution of Income Tax Law
- The historical evolution of India’s income tax law, from its colonial form to the current legislation, demonstrates a progression towards empowering the revenue with search and seizure capabilities.
- The 1961 enactment of Section 132 provided explicit authority for such actions, with the judiciary initially upholding its constitutionality in the Pooran Mal vs Director of Inspection case (1973).
Shift in Judicial Perspective Post-Puttaswamy
- The Puttaswamy judgment marked a paradigm shift by recognizing privacy as intrinsic to the right to personal liberty guaranteed by Article 21 of the Constitution.
- The doctrine of proportionality became central, demanding that state actions, including searches and seizures, align with legitimate aims, have a rational connection to objectives, employ the least intrusive means, and strike a balance between means and violated rights.
Challenges to Section 132 and Judicial Response
- Despite the changed perspective post-Puttaswamy, challenges to Section 132, such as the one in Principal Director of Income Tax vs Laljibhai Kanjibhai Mandalia (2022), reveal a lack of alignment with the principles of proportionality.
- The court, adopting a stance inconsistent with Puttaswamy, emphasized the administrative nature of forming opinions for searches, neglecting the rigorous judicial review demanded by the proportionality doctrine.
The Wednesbury Principle and Post-Puttaswamy Era
- The continued reliance on the Wednesbury principle, as demonstrated in the 2022 case, is inconsistent with the post-Puttaswamy era.
- This principle, originating from a UK judgment, requires a review of whether an administrative decision is so outrageous that no reasonable person could have arrived at it.
- In the context of fundamental rights, this approach falls short of the rigorous scrutiny demanded by the constitutional canon.
Conclusion
The divergence between judicial pronouncements on privacy rights and the practical application of statutes like Section 132 highlights the need for a more robust judicial review post-Puttaswamy.
The constitutional demand for adherence to statutory law, coupled with the principles of proportionality, necessitates a reassessment of executive powers, particularly in the context of income tax searches, to prevent the potential abuse of authority and uphold the sanctity of individual rights.
Strengthening Global Health Architecture through Enhanced Blood Management
Introduction
- The COVID-19 pandemic has underscored global health inequities, prompting policymakers to emphasize the enhancement of the global health architecture for economic growth and planetary well-being.
- Key strategies include greater health financing, digital health adoption, and improved access to medical countermeasures.
- Notably, prioritizing access to blood and its products remains fundamental in building a resilient global health infrastructure.
Importance of Blood in Healthcare
- Blood and its products are indispensable in various medical scenarios, ranging from scheduled surgeries to emergency procedures and the treatment of conditions like cancer, thalassemia, and postpartum hemorrhage.
- Their irreplaceable significance highlights their role in addressing a spectrum of healthcare needs.
Blood Shortage Issues
- The World Health Organization (WHO) reports global disparities in blood collection, with low-income and lower-middle-income nations facing significant challenges despite their substantial populations.
- India, while improving its blood management, still grapples with shortages, impacting critical healthcare services and putting lives at risk.
- Shortages affect not only accident victims but also heart surgeries and bone marrow transplants.
Advantages of Hub and Spoke Model
- Mitigating inequities in blood access requires robust public-private partnerships, such as the hub and spoke model.
- High-volume blood banks act as hubs for smaller centers, addressing gaps in availability and distribution.
- This model proves especially relevant in resource-constrained settings, optimizing blood utilization, and minimizing losses due to expiration.
Dispel Myths Around Blood Donation
- Misinformation around voluntary blood donation perpetuates inequities.
- Targeted awareness initiatives, particularly those leveraging the private sector’s collaboration with the government, can dispel myths and encourage regular, voluntary blood donation.
- Innovative tools such as social media campaigns and multi-lingual comics can effectively engage diverse audiences.
Conclusion
- As the world transitions beyond the COVID-19 pandemic, a comprehensive approach to global health architecture must include strengthening the blood management ecosystem.
- Political leaders, policymakers, industry, and citizens must collaboratively work towards ensuring equitable access to safe and sustainable blood, acknowledging its central role in modern medicine.
This concerted effort aligns with the global developmental roadmap for an equitable and sustainable future.
Overview: IMF Observations and Indian Government’s Reactions
The International Monetary Fund (IMF) recently made two notable observations concerning India, leading to responses from the Indian Government.
The first pertains to the IMF’s concerns about the long-term sustainability of India’s debts, while the second involves the reclassification of India’s exchange rate regime as a “stabilized arrangement” rather than “floating.” These insights were gleaned from the annual Article IV consultation report.
IMF’s Debt Sustainability Concerns
- The IMF, in its report, expresses apprehensions about India’s government debt, projecting it could reach 100% of GDP by fiscal 2028 under adverse circumstances.
- The primary drivers cited are the substantial investments required to meet India’s climate change mitigation targets and enhance resilience to climate stresses and natural disasters.
- The IMF emphasizes the necessity for new, preferably concessional, sources of financing, greater private sector investment, and the implementation of carbon pricing or equivalent mechanisms.
- The Finance Ministry rebuts these projections as a “worst-case scenario,” not an inevitable outcome.
Global Context: Rising Public Debt and Challenges in Developing Nations
The editorial highlights global concerns regarding public debt, indicating that global public debt reached a record USD 92 trillion in 2022, with developing countries accounting for nearly 30% of this total.
Factors contributing to the rise of debt in developing nations include growing development financing needs, the cost-of-living crisis, and climate change.
As a result, the number of countries facing high levels of debt increased from 22 in 2011 to 59 in 2022.
The asymmetry in debt burdens, with developing countries facing higher interest rates, is emphasized as a challenge to their debt sustainability.
Challenges for India: Public Debt and Credit Ratings
- Apart from managing public debt effectively, India faces challenges in enhancing its credit ratings.
- Despite being the fastest-growing major economy, sovereign investment ratings for India have remained stagnant at ‘BBB-‘ with a stable outlook since August 2006 – the lowest investment grade rating.
- The reasons cited by rating agencies include the government’s weak fiscal performance, burdensome debt stock, and low per capita income.
- India’s public debt-to-GDP ratio, while relatively stable, surpasses levels specified by the Fiscal Responsibility and Budget Management Act (FRBMA).
Fiscal Challenges and Election-Year Pressures
- The editorial outlines emerging fiscal challenges in India, with the possibility of fiscal slippage in FY24, attributed to increased expenditure on employment guarantee schemes and subsidies.
- The report by India Ratings and Research (IR&R) highlights concerns over the budgeted fertilizer subsidy being exhausted and increased allocations for employment guarantee schemes.
- The rise in subsidies aligns with the upcoming general elections, raising questions about employment growth and livelihoods in rural areas.
- Balancing fiscal correction amidst election-year pressures becomes a crucial short-term challenge for India.
Conclusion
In conclusion, the IMF’s observations underscore the importance of prudent debt management for India, considering global debt dynamics and the country’s unique challenges. The short-term imperative lies in navigating fiscal pressures during an election year to avert worst-case scenarios.
"Breaking the Mould: Reimagining India’s Economic Future"
Introduction:
- The discussion surrounding India’s economic trajectory and development goals often centers on achieving a $5 trillion economy by 2025.
- However, the focus on aggregate GDP is criticized for being a distraction, with the real challenge lying in improving the average citizen’s well-being.
- Raghuram Rajan and Rohit Lamba’s book, “Breaking the Mould: Reimagining India’s Economic Future,” reframes the debate by questioning whether India can prioritize service sector growth over industrial growth.
Service Sector Dominance:
- India has struggled to increase the share of the manufacturing sector, experiencing substantial growth in the service sector instead.
- This deviation from the traditional development path raises questions about the sustainability of India’s primarily service-oriented economy.
- The book suggests that India can tap into global business service growth, driven by advancements in information technology, to create opportunities.
- However, challenges exist in achieving this transition at scale.
Employment Challenges:
- India faces a significant employment crisis, adding 8-10 million new workers annually, many with higher education levels.
- The current service sector, while showing growth in high-tech services, primarily creates low-value, low-skilled jobs.
- The unemployment rate for youth in the age group 15-24 is alarming, emphasizing the need for expedited measures to incentivize job creation.
- The book contrasts the service sector-led model with the conventional manufacturing-led model, emphasizing the segmented nature of the current service sector.
Skill Deficit and Time Constraints:
- The back-office led service sector vision presented by Rajan and Lamba may take 10-15 years to become a viable alternative due to India’s skill deficit.
- Despite producing 2.2 million STEM graduates, a majority are deemed unemployable, necessitating sustained investment in higher education quality.
- The question arises about interim employment opportunities and whether they align with the aspirations of the youth.
Manufacturing and Service Sector Integration:
- To address the employment crisis, India needs to combine the strengths of both manufacturing and service sectors.
- The Production Linked Incentive (PLI) scheme is seen as a step in this direction, yet concerns linger about its long-term effectiveness and impact on job creation.
- Land and labor regulatory reforms are identified as key enablers for scaling up private industry, with the acknowledgment that these reforms entail political costs.
Demographic Challenge and Urgency:
- With a median population age of 28, India’s demographic dividend could turn into a curse without prompt action.
- The country must act comprehensively, combining manufacturing and service sector approaches, addressing the skill deficit through higher education investments, and implementing crucial reforms to ensure the creation of high-value jobs at scale.
Conclusion:
The editorial highlights the need for a nuanced approach to India’s economic future, emphasizing the integration of manufacturing and service sectors, immediate measures to tackle unemployment, and long-term investments in education and regulatory reforms.
The urgency to act decisively is highlighted to prevent India’s demographic advantage from turning into a significant challenge.
