Weekly Current Affairs (8t to 14th December 2024) Part - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Concerns Over Cess and Surcharges in India

Why in News?

• Arvind Panagariya, Chairman of the Finance Commission, has recently highlighted the growing issue of the Centre's increasing reliance on cesses and surcharges, labeling it a "complicated issue."

Key Takeaways

• Cesses and surcharges are forms of taxes that have implications for fiscal federalism in India.
• The reliance on these taxes raises concerns about transparency, equity, and the distribution of resources between the Centre and States.

Additional Details

• Cess: A form of tax levied for a specific purpose, imposed in addition to existing taxes like excise or income tax. Cesses are earmarked for particular uses, such as the Education Cess for financing primary education or the Swachh Bharat Cess for cleanliness initiatives.
• Surcharge: An additional tax on existing duties or taxes, discussed under Articles 270 and 271 of the Indian Constitution. Surcharges are generally progressive, targeting higher earners to promote social equity.
• The 13th and 14th Finance Commissions recommended reducing the Centre's reliance on these levies, which have increased significantly from 10.4% in 2011-12 to 20% in 2021-22.
• Concerns include the Centre's fiscal constraints and the shrinking pool of taxes shared with States, leading to demands for a cap on cesses and surcharges.
• Lack of transparency in how cess revenues are allocated, with examples like the Research and Development Cess misused for the Union's revenue deficit rather than its intended purpose.

The growing reliance on cesses and surcharges has raised significant issues regarding efficiency and transparency in India's tax system. Addressing these concerns requires clear guidelines and accountability to ensure these funds serve their intended purposes without undermining fiscal federalism.

What Can be Done to Address Concerns Regarding Cess and Surcharges?

• For Cesses: The Union Government should avoid imposing cesses on matters under the State List, like health and education, and establish a ceiling on cess collections.
• Periodic reviews should assess the effectiveness of cesses, with misused funds potentially shifted to general taxation.
• For Surcharges: Rationalizing the income tax structure can reduce the need for surcharges, which should be temporary and used only in financial distress.

In conclusion, reforming the system of cesses and surcharges is essential to enhance fiscal federalism and ensure equitable resource distribution across the country.

Impeachment Process and Judicial Accountability in India

Why in News?

• Recently, an impeachment motion is being considered against a sitting judge of the Allahabad High Court following his controversial remarks at an event organized by a religious organization. The remarks, deemed by many as communally charged, have raised concerns about judicial propriety and impartiality.

Key Takeaways

• The impeachment process is a mechanism to remove judges from office in India.
• Judicial accountability is essential for maintaining the independence and integrity of the judiciary.
• The grounds for impeachment are limited to "proved misbehavior" and "incapacity."

Additional Details

• Impeachment Process: Though not explicitly mentioned in the Constitution, the impeachment process refers to the procedure by which a judge can be removed from office by Parliament. It protects against misuse while ensuring accountability.
• Constitutional Safeguards: Article 124(4) outlines the removal process for Supreme Court judges, applicable to High Court judges via Article 218, and specifies the grounds for impeachment.
• Steps in the Impeachment Process:
  • Initiation of Motion: Requires support from at least 100 members of the Lok Sabha and 50 members of the Rajya Sabha.
  • Formation of an Inquiry Committee: Comprises a Supreme Court judge, a High Court Chief Justice, and a distinguished jurist.
  • Committee Report and Parliamentary Debate: The findings are debated in Parliament, requiring a special majority for approval.
  • Final Removal by the President: The motion is presented to the President after approval by both Houses.
• Challenges in Implementation: The lack of codified rules for judges' public statements and the balance between freedom of speech and judicial propriety are significant concerns.

Maintaining impartiality and public trust is vital for the judiciary in a diverse democracy like India. Instances of controversial conduct underscore the need for balancing judicial accountability with independence. The impeachment process, adherence to constitutional values, and proactive measures like training and inclusive representation are essential to uphold the judiciary's integrity and reinforce its role as a guardian of justice and equality.

Climate Footprint of Space Exploration

Why in News?

• Space exploration is expanding rapidly, but its environmental impact, from rocket emissions to satellite debris, is largely ignored by global sustainability frameworks like the Paris Agreement. Urgent action is needed to address these growing concerns.

Key Takeaways

• Rocket launches emit harmful pollutants contributing to climate change.
• Space debris from satellites poses risks to future missions and satellite operations.
• Lack of regulations hampers sustainable practices in space exploration.
• India is taking steps towards sustainable space practices through private sector engagement and innovative technologies.

Additional Details

• Rocket Emissions: Rocket launches release carbon dioxide (CO₂), black carbon, and water vapor. Black carbon is particularly concerning as it absorbs sunlight far more effectively than CO₂, exacerbating global warming. Additionally, chlorine-based rocket propellants deplete the ozone layer, increasing ultraviolet (UV) exposure and disrupting atmospheric circulation.
• Space Debris: As of September 2024, over 19,590 satellites have been launched, with around 13,230 still in orbit. The total mass of space objects exceeds 13,000 tonnes, leading to overcrowding in low Earth orbit (LEO) and increasing pollution. Non-functional satellites and debris from collisions contribute significantly to this issue, complicating communication and monitoring systems.
• Lack of Regulations: Current space activities are not adequately covered by agreements like the Paris Accord, leading to unregulated emissions and debris. The Outer Space Treaty of 1967 emphasizes responsible use but lacks binding provisions for environmental sustainability.
• Commercial Exploitation: Profit-driven space initiatives, including resource recovery and space tourism, may undermine sustainability efforts due to their focus on revenue generation.
• India's Initiatives: The Indian National Space Promotion and Authorization Centre (In-SPACe) aims to enhance private sector involvement in sustainable space technologies. Startups like Agnikul and Skyroot are developing eco-friendly satellite launch vehicles. Additionally, the Indian Space Research Organisation (ISRO) is engaged in projects aimed at tracking and managing space debris.

In conclusion, addressing the environmental impact of space exploration requires a concerted effort to implement sustainable practices, develop new technologies, and establish binding regulations to ensure responsible use of space. Collaboration between governments and private entities is essential to foster a sustainable future for space exploration.

Changing Trends in Fertilizer Use

Why in News?

• Recently, there has been a notable decline in the sales of Di-Ammonium Phosphate (DAP), an essential fertilizer for rabi crops, which dropped by 25.4% during the period from April to October FY25. In contrast, the sales of NPKS fertilizers (Nitrogen, Phosphorus, Potassium, and Sulphur) surged by 23.5% in the same timeframe. This shift is primarily attributed to reduced imports and increasing costs of DAP, prompting farmers to explore alternatives like NPKS fertilizers that offer a more balanced nutrient profile.

Key Takeaways

• DAP sales fell significantly due to rising costs and supply chain disruptions.
• NPKS fertilizers have gained popularity due to their balanced nutrient composition.
• Global events, such as the Russia–Ukraine war, have affected the potash market and fertilizer prices.

Additional Details

• Decline in DAP Usage: The decrease is largely due to increasing costs and supply chain challenges. For example, DAP sales slumped by 30% to 2.78 million tonnes amid crises in the Persian Gulf, which caused shipping delays and led to DAP prices soaring to approximately USD 632 per tonne as of September 2024.
• Shift in Fertilizer Preferences: Farmers are increasingly opting for NPKS fertilizers, particularly the 20:20:0:13 grade, which provides balanced amounts of nitrogen, phosphorus, potash, and sulfur, leading to significant sales growth.

Benefits of Using NPKS Fertilizer

• Balanced Nutrient Supply: NPKS fertilizers deliver a comprehensive supply of essential nutrients - Nitrogen (N), Phosphorus (P), Potassium (K), and Sulfur (S) - critical for plant growth and productivity.
• Improved Soil Health and Sustainable Agriculture: Sulfur enhances root development, enzyme activation, and disease resistance, improving overall soil health.
• Enhanced Crop Yield: These fertilizers boost crop yield by improving photosynthesis and plant immunity, leading to better flowering, fruiting, and seed formation.
• Optimal Plant Growth: NPKS fertilizers support overall plant development, increasing chlorophyll production and drought resistance.

Challenges with Fertilizer Usage in India

• Imbalance in Fertilizer Use: The actual NPK ratio in India (9.8:3.7:1 in Kharif 2024) significantly deviates from the recommended 4:2:1 ratio, leading to nutrient deficiencies and soil degradation.
• Excessive Use of Nitrogenous Fertilizers: India ranks as the second-largest consumer of urea, but its overuse contributes to soil degradation and water pollution.
• Low Production and High Consumption: Despite increased production, India's domestic fertilizer production does not meet the high demand, with consumption reaching about 629.83 LMT in 2020-21.
• Dependence on Imports: India relies heavily on imports for fertilizers, sourcing about 20% of urea and 50-60% of DAP, making it vulnerable to global supply fluctuations.

Way Forward

• Balanced Fertilizer Usage: Encouraging balanced use of fertilizers, particularly emphasizing NPKS, can rectify the existing NPK ratio imbalance and enhance soil health.
• Promotion of Organic and Bio-fertilizers: Incentivizing organic farming can reduce reliance on synthetic fertilizers and improve soil fertility.
• Efficient Fertilizer Distribution: Streamlining fertilizer subsidies and ensuring targeted distribution can enhance efficiency in fertilizer usage.
• Domestic Production Capacity Expansion: Increasing domestic production of phosphatic and potassic fertilizers will reduce dependency on imports.
• Sustainable Fertilizer Policies: Implementing policies that encourage judicious fertilizer use according to regional soil types and crop needs is essential.

Mains Question:

• Discuss the challenges of fertilizer usage in India and suggest measures to promote balanced usage and enhance domestic production.

SC Panel Report on Agriculture Distress

Why in News?

• Recently, the Supreme Court (SC)-appointed committee submitted an interim report addressing agrarian distress in India. This report reveals the alarming crisis affecting the agricultural sector in the country.

Key Takeaways

• Farmers earn an average of Rs 27 per day from their agricultural activities, indicating severe poverty.
• The average monthly income of agricultural households is Rs 10,218, significantly below the basic living standard necessary for a decent life.
• Farmers in Punjab and Haryana are facing escalating debt, with institutional loans totaling Rs 73,673 crore and Rs 76,630 crore respectively in 2022-23.
• Over 4 lakh farmers have committed suicide since 1995, primarily due to high indebtedness.
• Punjab and Haryana have seen stagnation in agricultural growth, with annual rates of 2% and 3.38% respectively from 2014-15 to 2022-23.
• 46% of India's workforce is in agriculture, yet it only contributes 15% to the national income.
• Climate change impacts, such as erratic rainfall and drought, are worsening the situation.

Additional Details

• Impact on National Economy: The deteriorating condition of agriculture, combined with high suicide rates and increasing debt, poses a serious threat to India's economy. Ignoring agriculture may lead to long-term instability and rise in rural-urban migration.
• Sustainability and Food Security: Continuing on the current path could jeopardize India's agricultural sector, making it difficult to meet food demands, thereby exacerbating poverty and hunger in rural areas.
• Social Stability: The ongoing issues of farmer suicides and despair within the farming community may lead to social unrest.

In summary, the SC committee report sheds light on the critical challenges facing farmers in India, including income crisis, debt burden, and stagnation in growth, all of which require urgent attention and reform.

SC Prioritising SLPs Disposal

Why in News?

• The Supreme Court (SC) has initiated a priority system for hearing Special Leave Petitions (SLPs) to alleviate the significant annual influx of cases and manage the substantial backlog. As of December 2024, over 82,000 cases are pending in the SC, which has led the Chief Justice of India (CJI) to adopt these strategies.

Key Takeaways

• The SC is focusing on reducing the backlog of cases by prioritizing SLPs.
• Over 82,000 cases are currently pending in the Supreme Court.
• This initiative aims to enhance the efficiency of legal proceedings in India.

Additional Details

• Special Leave Petition (SLP): A discretionary appeal mechanism under Article 136 of the Constitution of India, allowing the SC to hear appeals against judgments, decrees, or orders from any court or tribunal. Notably, it does not extend to Armed Forces Tribunals.
• The concept of "special leave" traces back to the Government of India Act, 1935, which recognized the prerogative to grant special leave for appeals.
• Key Features:
  • SLPs represent the extraordinary jurisdiction of the SC, addressing cases without a direct right of appeal.
  • SLPs are granted at the SC's discretion and may be denied without explanation.
  • They apply to both civil and criminal matters and, upon granting, transition into formal appeals allowing detailed case examination.
• Eligibility:Any aggrieved party may file an SLP against a High Court or tribunal judgment, especially when:
  • A certificate of fitness for appeal to the SC has been denied.
  • Substantial questions of law or injustice are involved.
• Time Limit to File an SLP: An SLP must be filed within 90 days from a High Court's judgment or within 60 days if the High Court has denied a certificate for appeal.
• Procedure for Filing a SLP: 

Supreme Court Cases Related to SLPs

• Laxmi & Co. v. Anand R. Deshpande (1972): The SC determined that during Article 136 appeals, the Court may consider subsequent developments to expedite proceedings and uphold justice.
• Kerala State v. Kunhayammed (2000): The SC ruled that declining to grant an SLP does not engage its appellate jurisdiction, ensuring intervention only in cases requiring scrutiny.
• Pritam Singh v. The State (1950): Emphasized that the SC should use its powers under Article 136 sparingly, only interfering with High Court decisions in exceptional cases.
• N. Suriyakala v. A. Mohandoss & Ors. (2007): Clarified that Article 136 does not create a standard appellate forum but grants broad discretionary powers to ensure justice, discouraging indiscriminate SLP filings.

In summary, the Supreme Court's prioritization of SLPs reflects a concerted effort to tackle the growing backlog of cases and enhance the judicial process in India. Understanding the SLP mechanism is crucial for those engaged in legal proceedings, ensuring that significant legal questions receive the necessary attention from the highest court.

India-Australia Comprehensive Economic Cooperation Agreement (CECA)

Why in News?

• India and Australia have recently established a clear pathway for the swift conclusion of the Comprehensive Economic Cooperation Agreement (CECA). This development emerged from a three-day stocktake meeting where both nations engaged in discussions on several vital aspects of the CECA, including trade in goods, services, mobility, agri-tech cooperation, and more.

Key Takeaways

• The CECA aims to eliminate tariffs on goods traded and liberalize the services sector to enhance business opportunities.
• Focus areas include goods, services, digital trade, government procurement, and Rules of Origin/Product Specific Rules.
• Recent negotiations have highlighted interest in incorporating new areas such as competition policy, MSMEs, gender equality, innovation, agri-tech, critical minerals, and sports.

Additional Details

• Background: Negotiations for CECA commenced in May 2011 but were suspended in 2016 before being re-launched in September 2021.
• The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed and came into force in 2022, serving as a foundational agreement that is less comprehensive than CECA.
• Current Trade Statistics: Trade between Australia and India has seen significant growth, with India being Australia's fifth-largest trading partner. In the fiscal year 2023-24, India's imports from Australia reached $16.2 billion, while exports totaled nearly $8 billion, showing an increase compared to the previous fiscal year's $19 billion in imports and about $7 billion in exports.
• Other Similar Initiatives: India and Australia are also involved in initiatives like the Indo-Pacific Economic Framework for Prosperity (IPEF) and the Trilateral Supply Chain Resilience Initiative (SCRI) with Japan.
• India’s CECA with Other Countries: India has established CECA agreements with Singapore, Malaysia, Thailand, and New Zealand.

The CECA between India and Australia represents a significant step forward in enhancing economic ties, aiming to foster trade and investment opportunities that benefit both nations. The ongoing negotiations reflect a commitment to expanding collaboration in various sectors, paving the way for a prosperous economic relationship.