Sept 27th 2024 Current Affairs

Index:

1. L69, G4 Countries Seek Urgent Reform of UNSC

 

  1. Background:
    • The United Nations is approaching its 80th anniversary in 2025.
    • The Group of Four (G4) – India, Brazil, Germany, and Japan – called for urgent reforms in the UN Security Council (UNSC), seeking permanent membership.
    • The L69 group and C-10 (African countries) echoed these calls for reform.

 

  1. G4 Meeting (September 23, UNGA):
    • External Affairs Minister S. Jaishankar led the G4 discussions at the UNGA.
    • G4 reaffirmed the need for reforms in both permanent and non-permanent UNSC membership to ensure better representation of developing countries.

 

  1. Key Demands:
    • Reforms should address challenges to the multilateral system and enhance participation of developing countries.
    • Regions such as Africa, Asia-Pacific, Latin America, and the Caribbean need better representation.
    • The UNSC should become more democratic, transparent, and accountable.

 

  1. L69 and C-10 Joint Ministerial Meeting:
    • First-ever joint meeting between L69 and C-10 groups held on September 26, chaired by Ralph E. Gonsalves (Saint Vincent & Grenadines PM).
    • Reiterated support for the Common African Position (CAP) based on the Ezulwini Consensus and Sirte Declaration, advocating for African representation.

 

  1. Jaishankar’s Remarks:
    • Emphasized transformative reforms for the UNSC to improve global South representation.
    • Noted the indispensable role of developing countries in maintaining UNSC effectiveness.
    • Highlighted convergence on UN system reforms.

2. Urban Consumption Weakening, Public Capex to Pick Up

    1. Urban Consumption Trends:
      • The Finance Ministry signals a weakening trend in urban consumption.
      • This is evidenced by moderation in passenger vehicle sales and inventory build-up.
      • Easing car sales require monitoring, especially during the festive season.
    2. Macroeconomic Concerns:
      • Global uncertainty due to possible recession, policy rate cuts, and geopolitical conflicts.
      • Stock markets may face correction risks with potential global spill-over effects.
      • The moderation in public capital expenditure by states in 2024-25 could be temporary, as public capex is expected to pick up, particularly due to general elections.

     

    1. Core Inflation and GDP Growth:
      • Core inflation remains stable at 7% (August 2024).
      • Real GDP growth is projected at 6.5%-7% for 2024-25, aligned with Economic Survey projections.
      • Positive outlook for inflation trajectory, supported by benign core inflation, a good monsoon, and the progress of Kharif crops.

     

    1. Agriculture Outlook:
      • Adequate reservoir levels will support the upcoming Rabi crops. However, uneven rainfall in specific regions could impact farm output.
      • No major adverse climate shocks anticipated, suggesting a stable rural income and demand scenario.
    2. External Sector:
      • Goods exports, despite a petroleum price dip, have shown resilience between April and August.
      • Weak global demand and India’s challenges in scaling up export production affect competitiveness.
    Merchandise imports also declined due to weaker domestic demand.

3. Buried in Bengal Hospital Bio-Medical Waste: Mismatched Data, Grey Market

  1. CONTEXT: Alleged corruption in the disposal of bio-medical waste (BMW) from government hospitals in West Bengal.
    • Grey market involvement in re-selling disposed items like saline bottles, syringes, and vials after repackaging.
    • CBI probe into unauthorized commercial reuse of hospital waste.

 

  1. Discrepancies in Data (2014–2023):
    • According to the Central Pollution Control Board (CPCB), bio-medical waste generated in West Bengal increased from 103 tonnes/day (2014) to 286 tonnes/day (2022), while treated waste has been inconsistent.
    • Decline in treated bio-medical waste from 409 tonnes/day in 2014 to 256 tonnes/day in 2022.
    • The gap between waste generated and treated continues to widen, with records showing 29,899 tonnes of BMW untreated in 2017.

 

  1. Audit and Investigation Findings:
    • The Comptroller and Auditor General’s (CAG) audit raised concerns about underreporting of bio-medical waste in West Bengal.
    • The West Bengal Pollution Control Board (WBPCB) was criticized for understating the waste figure and manipulating data to reduce accountability.
    • CAG highlighted underreported BMW by 49.52% for the 2017–18 period.

 

  1. Grey Market and Health Risks:
    • Experts report that untreated hospital waste is repurposed and sold in the grey market, posing severe public health risks.
    • Lack of proper treatment facilities has contributed to the problem, with private hospitals also implicated.
    • Repackaging of hospital waste plastic items for commercial resale, with prices for repackaged syringes ranging from Rs 5 to Rs 50/kg.

 

  1. Government Response and Challenges:
    • Enforcement and accountability measures in bio-medical waste disposal remain weak, particularly in monitoring private sector compliance.

Health risks to users from reused hospital equipment have raised alarm, with calls for stricter regulation and enforcement.

4. Sponge-City Concept May Mitigate Flooding

  1. Sponge-City Concept:
    • The sponge-city concept aims to tackle flooding and droughts by integrating urban planning with water management.
    • Focuses on absorbing and storing rainwater using natural features like wetlands, lakes, and permeable surfaces.

 

  1. Urban Challenges in Guwahati:
    • Guwahati faces severe issues with urban planning, lack of infrastructure, and inefficient drainage systems.
    • Citizens often unsure about infrastructural development due to governance gaps and ineffective land management.
    • Urban growth, encroachment, and lack of adequate drainage exacerbate flood risks.

 

  1. Panelist Insights:
    • Abhijit Sharma: Points out governance and planning challenges, particularly the inefficiency of the Guwahati Metropolitan Development Authority (GMDA) in addressing people’s needs.
    • Hina Zia: Emphasizes the need for resilient and climate-adaptive urban planning. Advocates for integrated approaches to address both flooding and urban resilience.
    • Swapnanil Barua: Suggests investing in drainage systems and clearing water-logging areas. Proposes Rs 50,000 crore investment to fix drainage and manage water flow in low-lying areas.
    • Kankana Dev: Notes that Guwahati’s steep topography makes traditional water management techniques ineffective. Calls for scientific approaches to improve water retention and manage runoff effectively.

 

  1. Water Management and Climate Resilience:
    • Guwahati is historically prone to floods due to steep hills, natural water bodies, and ineffective urban drainage systems.
    • The lack of green spaces and poor planning have worsened water stagnation.
    • Cities like Guwahati must focus on integrating natural water bodies into urban planning, along with restoring water flow in traditional drains and rivers.

 

  1. Solutions and the Way Forward:
    • Implement participatory planning involving stakeholders like NGOs, local organizations, and technocrats.
    • Building natural flood defenses, green spaces, and reviving natural drains like Bharalu and Bahini rivers.
    • Integrating flood control with urban development, including banning basements in flood-prone areas and creating absorbent landscapes.

 

  1. Historical Perspective:
    • British colonial policies shifted Assam’s capital from Guwahati to Shillong due to flood concerns. Guwahati remains highly vulnerable to water-related issues.

The city must adopt modern solutions for flood mitigation while respecting its unique topographical and hydrological challenges.

5. Strom Brewing in East, South Chine Sea

6. Incipient Signs of Strain in Some Sectors Warrant Monitoring – FinMin (August Monthly Economic Review)

 

1.       Key Concerns:

 

o    The Ministry of Finance’s August economic review flagged early signs of strain in sectors like automobiles and fast-moving consumer goods (FMCG), especially in urban areas.

o    Passenger vehicle sales and FMCG growth slowed down, attributed to weak urban demand and rising inventories.

 

2.       Strain in Specific Sectors:

 

o    Automobile Sector: Sluggish sales of passenger vehicles and inventory build-up were highlighted by the Federation of Automobile Dealers Associations (FADA).

o    FMCG Sector: Nielson data showed a slowdown in FMCG sales during Q1 FY25.

o    These issues may be temporary and related to the festive season, but warrant close monitoring.

 

 

3.       Macroeconomic Outlook:

 

o    GDP growth for FY25 is projected at 6.5%-7%, aligned with Economic Survey predictions.

o    Despite global uncertainties, the economy’s growth remains robust due to resilient domestic demand, steady inflation control, and increased public capex.

 

4.       Stock Market and Financial Stability:

 

o    Concerns over stock market overheating and potential corrections due to global spill-over risks.

o    Continued global geopolitical tensions and recession risks in advanced economies could affect India’s economy.

 

5.       Employment Trends:

 

o    Employment levels remain historically high in both manufacturing and services, as per the Purchasing Managers’ Index (PMI).

o    Naukri JobSpeak Index indicated a decline in job postings due to festival-related holidays, but YoY growth was still positive at 3.4%.

 

6.       Public Spending and Investment:

 

o    Government expenditure, especially on capital projects, is expected to increase ahead of general elections.

o    Private investment is gradually improving, with contributions from housing and infrastructure development.

 

7.       Inflation and Food Security:

 

o    Inflation remains controlled at 3.7% (August 2024).

o    Food inflation and rural incomes may improve with better kharif crop yields, though uneven rainfall distribution poses some risks.

 

8.       Agriculture Sector Outlook:

 

o    Despite spatial rainfall disparities, reservoir levels are high, boosting prospects for Rabi crop sowing.

o    Stable agricultural output expected to keep food inflation moderate.

 

7. Conversion Antithetical to Constitutional Principles – Vice President

  1. Key Statement:
    • Vice-President Jagdeep Dhankhar described religious conversion as “antithetical” to India’s national values and constitutional principles.

 

  1. Concerns on Religious Conversion:
    • The Vice-President warned that conversions were happening in a structured, planned manner, calling it a “conspiracy” with a “sugar-coated philosophy.”
    • Highlighted that vulnerable sections of society, especially tribal communities, were being targeted using temptations.

 

  1. Hindu Adhyatmic Evum Seva Mela:
    • Dhankhar made these remarks during the inauguration of this Hindu spiritual and service event.
    • Stressed the need for vigilance against “sinister forces” influencing conversions and fragmenting the nation.

 

  1. Impact on Politics:
    • The Vice-President suggested that this trend of conversion could alter the political landscape of the country.
    • He mentioned concerns that narratives from neighboring countries could infiltrate and influence India.

 

  1. Appeal for Vigilance:
    • Urged Hindus to act swiftly to counter these forces.
    • He questioned the strength of Indian democracy in the face of such challenges.

 

 

8. Constitution has Thrived as a Living Document – CJI

  1. Key Statement:
    • Chief Justice of India (CJI) D.Y. Chandrachud emphasized that the Indian Constitution is a “living document,” evolving with society.
    • No generation, including the present, has a monopoly over solutions or the ability to foresee the future.

 

  1. Constitutional Doctrine:
    • The CJI highlighted the dynamic nature of constitutional law, which adapts to changing social and political contexts.
    • He stressed that the Constitution should not be bound by the “original intent” of its framers but should be interpreted in light of contemporary realities.

 

  1. K. Nambyar’s Contributions:
    • The CJI was delivering the M.K. Nambyar Memorial Lecture, commemorating Nambyar’s role in shaping constitutional law in India.
    • Nambyar played a key role in landmark cases like K. Gopalan (introducing “due process of law” under Article 21) and Kesavananda Bharati (Basic Structure Doctrine).
    • Nambyar demonstrated that fundamental rights are interlinked and not isolated principles.

 

  1. Evolution of Jurisprudence:
    • The CJI discussed how the judiciary must go beyond mere obedience to the original intent of the framers.
    • He praised jurists like Nambyar for reading “between the lines” of the Constitution to adapt its principles to modern needs.
    • The decision to strike down the electoral bonds scheme was linked to Nambyar’s insights from the A.K. Gopalan case.

 

  1. Living Constitution:
    • Chandrachud reaffirmed that the strength of the Indian Constitution lies in its adaptability, allowing it to evolve with the demands of time.

The Constitution thrives by balancing between uncritical acceptance of the framers’ vision and unnecessary abandonment of their principles.

9. An Excess of Cess – Impact on Federalism

 

  1. Context:
    • Cess refers to a tax levied by the Union government for specific purposes, but it is not part of the divisible pool of taxes shared with states.
    • The article argues that the increasing reliance on cess by the Union government is depriving states of revenue and undermining fiscal federalism.

 

  1. Growth of Cess:
    • In 2012, cess comprised 7% of Union government’s total revenue, rising to 19% in 2018, and 16% in 2023.
    • Between 2019-23, the Union government collected Rs 13 lakh crore in cess and surcharges.
    • CAG reports highlighted unspent or misallocated funds: Rs 1.24 lakh crore of cess on crude oil and Rs 10,000 crore of Road and Infrastructure cess were not utilized for their designated purposes.

 

  1. 14th and 15th Finance Commission Recommendations:
    • The 14th Finance Commission increased states’ share of divisible pool taxes from 32% to 42%.
    • The 15th Finance Commission recommended a reduction in this share to 41%, partly due to the introduction of cess and surcharges which are outside the divisible pool.

 

  1. Fiscal Federalism Concerns:
    • The article critiques the centralization of financial power by increasing cess and surcharges, leaving states with fewer resources.
    • This trend is termed “coercive federalism,” where states are financially dependent on the Union government but have reduced financial autonomy.
    • The Sarkaria and Punchhi Commissions had recommended limiting cess and surcharges due to their non-sharing nature.

 

  1. Current Scenario:
    • In the last five years, Rs 84,000 crore has been collected as GST compensation cess.
    • Karnataka Chief Minister recently raised concerns over the decline in state revenue due to excessive use of cess, affecting states’ fiscal space and the ability to carry out welfare schemes.

 

  1. Historical Perspective:
    • The Sarkaria Commission (1980s) and Punchhi Commission (2010) both stressed the need to limit the Union’s use of cess and surcharges to maintain a balance in federal fiscal relations.

The rise of cess in recent times is seen as undermining this balance.

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