22 Feb 2022: UPSC Exam Comprehensive News Analysis

CNA 22 Feb 2022:-Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. The crisis in Ukraine’s Donbass region
C. GS 3 Related
ECONOMY
1. Govt. bets big on animation, gaming
D. GS 4 Related
E. Editorials
ECONOMY
1. Questions on MGNREGA budget estimation
2. A red pen moment for corporate governance
INTERNATIONAL RELATIONS
1. Use international law, call out China’s violations
F. Prelims Facts
1. Fundamental duties must be enforced: plea
2. Center clarifies on OROP scheme
G. Tidbits
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
FIP Magazine

E. Editorials

Category: ECONOMY

1. Questions on MGNREGA budget estimation

Syllabus: Indian economy and issues relating to planning, mobilization, of resources, growth, development, and employment.

Prelims: MGNREGA

Mains: Issues and challenges in the implementation of the MGNREGA. Budget allocations for MGNREGA: Issues and challenges

Context:

The budget allocation for the Mahatma Gandhi National Rural Employment Guarantee Act has been disappointing. The article discusses various issues associated with the act and also talks about the adequate measures to address the issues.

Background:

  • The allocation for the Mahatma Gandhi National Rural Employment Guarantee Act in the budget 2022-23 created a buzz. The concerns have been raised by the organizations such as All India Kisan Sabha and NREGA Sangharsh Morcha (NSM) regarding the inadequate amount of budget allocation.
  • Despite the demands for higher budgetary allocations by activists and academics, the actual budget allocations are very low and inadequate to meet the needs of the beneficiaries.
  • In the last two fiscal years, the budget allocations for the MGNREGA were just half of the amount recommended by the groups such as People’s Action for Employment Guarantee (PAEG) and NSM.

Consequences of low budgetary allocations:

The inadequate budget allocations for the MGNREGA have led to the following consequences:

  • Deficits for state governments,
  • Long delays in wage payment,
  • The decline in the work provided in the last two quarters of the Fiscal Year 2021-22,
  • Funds got exhausted at the end of September 2021-22 and many states were running a negative balance, and
  • Significant pending dues at the end of the Fiscal Year 2021-22.

Budget allocations for the MGNREGA at a glance:

There are two important variables that determine the budget calculation for the MGNREGA:

  • The Projected Persondays in the coming year, and
  • Wage rate

Budget calculation:

  • The projected person-days are the total days of work anticipated for the year. This is calculated by the District Program Coordinator and then submitted to the state. It is then collated with the entire state’s projected demand and submitted to the center for approval.
  • The MGNREGA MIS report R.2.2.2 contains the monthly projections approved by the center and the projected person-days as well.
  • If we look at the data of FY 2019-20 and FY 2020-21, then certain discrepancies can be found.
  • In FYs 2019-20 and 2020-21, the person-days generated were about 18.4% higher in Q4 when compared to Q3. However, the projected person-days for Q4 in FY 2021-22 appeared to be strangely and significantly lower than that in Q3.
  • FY 2020-21 was the year the pandemic and the subsequent lockdowns that led to the increase in the demand for the MGNREGA work. It implies that the rural population was still relying on the MGNREGA for livelihood.
  • In the FY 2021-22, for the first three quarters, person-days generated were only 7% lower than the person-days generated in the same three-quarters of FY 2020-21.
  • It is not clear how these projections are arrived at and it seems that the government has not revised the projections for the Q4 of FY 2021-22 because in the Q4 the MGNREGA work demand increased significantly due to harvest season.

Curbing work demand:

  • There have been cases of curbing the work demand based on the availability of funds.
  • For example, a report of the Business Standard asserted that the states were communicated by the Rural Development Ministry to cut down on the MGNREGA were because there was a lack of funds.
  • Budget allocations for the MGNREGA are based on the projected person-days. Hence, any discrepancy in the calculation of the projected person-days will lead to inadequate budget allocation.
  • The low projections for the person-days in the FY 2021-22 led to the supplementary allocation of only Rs. 25,000 crore when the activists have been demanding Rs, 50,000 crores.
  • It is believed that the low budget allocations for FY 2022-23 are also because of the underestimated projected person-days.

Wage Rate:

  • It is clearly mandated in the MGNREGA act that wages paid to the workers cannot be less than the minimum wage in each state. But, the wages always remain lower than the minimum wage rate.
  • An expert committee under the chairmanship of Anoop Satpathy has recommended a minimum wage of Rs. 375 per day as of July 2018.
  • The PAEG used a conservative estimate of Rs. 269 per day in its recent report. But, according to the report of the NREGA, wages paid to the workers stood at Rs. 209 a day and by looking at the budget allocations, it is expected that the wage rate will not increase in the upcoming years.

Expenditure of the Central Government:

  • Even if the government pays Rs. 209 a day to a worker, then it is expected that the dues of the government will be around Rs. 20,000 crores at the end of the FY 2022-23.
  • The projected expenditure of the Central Government for the FY 2022-23 is Rs. 1.02 lakh crore even if the wage bill, material costs, administrative cost increase in a linear manner.
  • The dues of the previous FYs will add up to over Rs. 17,000 crores. If we add the above-mentioned figures then the total expenditure of the government will be Rs. 1.19 lakh crores for the FY 2022-23.
  • The total budget allocations are Rs. 73,000 crores (for FY 2022-23) and Rs. 25,000 crores (Supplementary grants) and after clearing out the pending dues of Rs. 17,000 crore, the funds left for the FY will be Rs. 53,000 crores only.

Way Forward:

  • Employment Guarantee is treated as a legal right under the MGNREGA. that means any rural household can demand to work up to 100 days in a year and the government has to provide it.
  • Hence, treating budget allocation as a ceiling to the work erodes the main aim of the scheme.
  • The PAEG recommended a minimum budget allocation of Rs. 2.64 lakh crores considering the active households in the year only. However, even this number is lower than the number of households that are registered under the scheme.
  • An initial budget allocation has to be made and apart from that, the government has to make the supplementary grants on the basis of the actual work demand in each state.

Nut Graf
The budget allocations for the MGNREGA for FY 2022-23 are very low. Many organizations and activists have demanded higher budget allocations because low budgetary allocations lead to certain challenges such as state deficits, the decline in work, delay in wages, etc. The budget calculation for the MGNREGA is calculated on the basis of projected person-days and wage rate. The underestimated person-days and low wage rate contribute to the low budgetary allocations. The government should not curb the work demand and make the wage rate equal to the recommended minimum wage rate.

2. A red pen moment for corporate governance

Syllabus: Issues relating to Economic Planning and Economic Development

Prelims: SEBI, NSE

Mains: Effectiveness of the regulatory framework in India.

Context:

The Securities and Exchange Board of India (SEBI) has alleged that the former chief of the National Stock Exchange, Chitra Ramkrishna used to communicate confidential information about the stock exchange with an ‘unknown person’. The article discusses the managerial wrongdoings, structural issues, other aspects of the matter.

Background:

  • The Securities and Exchange Board of India (Sebi) has alleged that Chitra Ramkrishna, one of the founding members of NSE and a former MD & CEO of the National Stock Exchange (NSE)used to share confidential information about the stock exchange with an ‘unknown person’, a yogi who lived in the Himalayas.
  • Sebi alleged that Ramkrishna had leaked confidential information such as NSE’s five-year financial projections, dividend payout ratio, the exchange’s business plans, and agenda of NSE’s board meeting with the yogi.
  • It has shaken the capital market of India and also caused reputational damage to the NSE.

Structural Issues:

Managerial misconduct:

  • The issue occurred due to the managerial misfunctioning at the NSE. Managerial misconduct is a global phenomenon and that is the reason an effective check on management is necessary.

Ineffective Boards:

  • The NSE brought a revolution in the stock market of India. Such kind of mismanagement at this level is very unacceptable.
  • The Board members are selected by the top management or by the promoter who is top management itself in India. Hence, there should be a focus on how the board members are selected.
  • As long as the top management selects the board members or influence the selection process, there is little hope of any active challenge to management.

Lack of Penalties:

  • There is a lack of penalty if the members failed to meet up the expectations or for any kind of error.

Accountability:

  • There were five Public Interset Directors at NSE who were required to inform SEBI about any kind of mishappenings. But, they failed to do so.
  • It should be the responsibility of the directors to be accountable for any kind of lapses.

Measures to be taken:

Selection of Board Members:

  • The top management must be allowed to choose not more than 50% of the independent directors. The rest will be selected by the other stakeholders such as financial institutions, banks, small shareholders, employers, etc. 
  • This will bring a change in the dynamics of the boardroom, will diversify the selection of board members, and also open up the possibility of directors challenging the top management.

Penalties:

  • Regulators must penalize the directors through a variety of instruments such as strictures, financial penalties, removal from the board, and a permanent ban from board membership.

Accountability of the regulators:

  • The regulators must be accountable for any misconduct. There should be periodic audits of all regulators by a panel of eminent persons.
  • The panel must review the performances of the regulators with respect to their objectives.
  • The internal processes and governance mechanisms of regulators must be subjected to the glare of public scrutiny. It is vital to guard the guardians.
Nut Graf
The recent revelations regarding the leakage of confidential information of NSE to an unknown person have shaken the financial market of India. There are various reasons behind this matter such as managerial misconduct, lack of transparency and penalties, etc. This matter should be taken seriously and appropriate measures should be adopted so that this kind of issue will not occur in the future.
Category: INTERNATIONAL RELATIONS

1. Use international law, call out China’s violations

Syllabus: Effect of policies and politics of developed and developing countries on India’s interests

Mains: India’s bilateral relations with China

Context:

China is continuously violating international rules and posing a threat to the whole world. The article discusses the various aspects of the Chinese expansionism policy and the measures to be taken by India to deal with the challenges.

Background:

  • In the recent meetings if the Quadrilateral Security Dialogue (QUAD), the External Minister of India Mr. S. Jaishankar said that the tensions at the Line of Actual Control (LAC) have arisen due to China’s disregard towards the written agreements.
  • But, it is believed that the actions of China at the LAC are not because of the disregard but it implies the violation of international law as a part of the policy of Chinese expansionism.

Laws and Provisions:

  • There are many bilateral agreements between India and China that guide the India-China LAC engagement.
  • For example, a 1993 agreement between India and China states that no country shall use any means to threaten the other country. It also provides that any issue related to the boundary will be resolved by a friendly and peaceful conversation between the two countries.
  • Similarly, according to Article I of the 1996 agreement on confidence-building measures, the use of military capability against the other side is strictly prohibited.
  • The prohibition on the use of force is also enshrined in Article I and Article VIII of the 2005 and 2013 agreements, respectively.
  • According to Article 2(4) of the United Nations Charter, states are not allowed to use force in international relations and it is the cardinal rule of international law.
  • There are two exceptions to this rule:
    • Self-defense under Article 51, and
    • The UN Security Council authorization under Chapter VII of the Charter.

China Breaking the Laws:

  • A military standoff between India and China in the Galwan Valley on 15th June 2020 led to the deaths of 20 Indian soldiers. This act of China clearly indicated the violation of not only the bilateral agreements between India and China but also the UN Charter.
  • China did not stop there, it continued to breach the laws at LAC and make other developments such as implementing a new border law that renames several places in Arunachal Pradesh and aims to set up boundary markers on all its land borders.
  • The new border law clearly violates the provision of Article IX of the 2005 agreement that states that both sides should strictly ‘respect and observe LAC’.
  • Besides these, China is also creating huge weaponry build-up that contains missiles in the Eastern Ladakh region.
  • Article III of the 1996 agreement mandates that both countries should reduce or limit the armaments such as tanks, missiles, vehicles, mortars, etc. But, China has not complied with these agreements.

Weaponizing Global Law:

  • In the view of China, a law is considered as an instrument or tool in the service of the state or more precisely the Chinese Communist Party (CCP). This is just the opposite to the rule of law theory in liberal democracies where the function of the law is to limit or constrain the unrestrained state powers.
  • There are many instances in which China has proved the weaponization of law. For example:

China and Philippines on South-China Sea:

  • On 12 July 2016, an independent arbitral tribunal established under the UN Convention on the Law of the Sea (UNCLOS) published a clear and binding ruling on China’s claims vis-à-vis the Philippines in the South China Sea.
  • The Chinese government and the Chinese people firmly opposed the ruling and said that they will neither acknowledge it nor accept it.

Not Complying by the trade rules:

  • Nearly 20 years after joining the World Trade Organization, China remains woefully short of meeting a broad range of commitments and responsibilities, to the detriment of both its trading partners and the international economic system.
  • China has failed to meet numerous WTO commitments on issues such as industrial subsidization, protection of foreign intellectual property, forcing joint ventures and technology transfer, and providing market access to services industries.
  • China has failed to meet numerous WTO commitments on issues such as industrial subsidization, protection of foreign intellectual property, providing illegal subsidies, manipulation of currency, forcing joint ventures and technology transfer, and providing market access to services industries.

Unethical Warfare:

  • China secretly violates the nuclear nonproliferation obligations by providing nuclear weapons to its allies often through proxies.
  • The aim of Chinese unethical warfare is to cripple the opponents without actually fighting a war.
  • The weaponization of international law negatively affects the relationship between countries and creates a sense of distrust.

Measures to be taken by India:

  • India should make its own strategy of international lawfare by taking all the international laws into account to respond to Chinese aggression.
  • India should make a strong case by putting all the agreements including the UN Charter at the international platforms against China’s illegal actions.
  • A National Law aimed at imposing sanctions of various kinds (economic, trade, military) on countries with whom India shares the land borders, needs to be enacted.
  • India should make an unequivocal proclamation that Indi reserves the right to act in Self-Defense under Article 51 of the UN Charter to counter any Chinese atrocity.
  • The purpose of the lawfare of India should be to make the international communities aware of the fact that violations of international law by China are a threat to the whole world not just to India.

Nut Graf
The Chinese expansionism policy is posing a threat in front of the world. The issues created at the LAC reflect the violation of various agreements between India and China. There are many examples of China weaponizing the global law such as denouncing the ruling of the UNCLOS on the issue of the South-China Sea with the Philippines. India should develop a strong lawfare and also raise the concerns at the international level so that international communities should be aware of the Chinese aggression.

F. Prelims Facts

1. Fundamental duties must be enforced: plea

Syllabus: GS2: Polity and Governance: Constitution of India — significant provisions and basic structure.

Prelims: Fundamental Duties

Context:

The Supreme Court asked the Union and the State governments to respond to a petition to enforce the fundamental duties of citizens.

What is the Issue?

  • A Supreme Court Bench issued notice in a petition filed by a Supreme Court lawyer.
  • The petition argued that the need to enforce fundamental duties arises from a new illegal trend of protest by protesters in the garb of freedom of speech and expression.
  • Know more about the Fundamental Duties

2. Center clarifies on OROP scheme

Syllabus: GS2: Polity and Governance: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Prelims: One Rank One Pension (OROP)

Context: The clarification on OROP was given by the Center after a Supreme Court Bench was hearing a PIL petition filed by Indian Ex-servicemen Movement.

One Rank One Pension (OROP):

  • OROP implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rank with the same length of service regardless of their date of retirement.
  • Armed Forces Personnel retired up to 30.06.2014 were covered under this Order.
  • Recently, the government clarified that the same rank and length of service were necessary for claiming the OROP benefits.

Know more about  One Rank One Pension (OROP)

G. Tidbits

Nothing here for today!!!

H. UPSC Prelims Practice Questions

Q1. During the 2022-23 Union Budget, the Finance Minister announced the establishment of a 
dedicated promotion task force for which sector?
  1. Domestic drone production
  2. Animation, Visual Effects, Gaming and Comics (AVGC)
  3. Electric and hybrid vehicles
  4. 5G and other high speed communication networks
CHECK ANSWERS:-

Answer: b

Explanation:

  • The Union Budget 2022 announced the creation of a new task force for AVGC (Animation Visual Effects, Gaming and Comics) industry with the help of all stakeholders to look at various ways in which domestic capacity is built and serve the global demand in the sector.
  • The setting up of the AVGC promotion task force will help India achieve its potential of achieving 20 lakh jobs according to Deloitte projections. 
  • These are critical skills for growth of the metaverse and India is poised to take advantage of this ecosystem.
  • Hence option B is correct
Q2. The Coastal Regulation Zone (CRZ) norms notified in 2018 is based on the recommendations 
of which committee?
  1. Madhav Gadgil committee
  2. Shailesh Nayak committee
  3. Kasturirangan committee
  4. Rangarajan committee
CHECK ANSWERS:-

Answer: b

Explanation:

  • The Shailesh Nayak Committee was constituted in 2014 with the mandate of examining the issues of the coastal states and union territories of the country with respect to the Coastal Regulation Zone (CRZ) Notification, 2011.
  • Coastal Regulation Zone Notification, 2018 is based on the recommendations of Shailesh Nayak committee which submitted its report in 2015.
  • Hence option B is correct
Q3. What is the IUCN status of the Greater One-horned Rhino?
  1. Endangered
  2. Critically Endangered
  3. Vulnerable
  4. Near Threatened
CHECK ANSWERS:-

Answer: c

Explanation:

  •  Greater One-Horned Rhinoceros are also known as the Indian rhino and are the largest of the rhino species. 
  • They have a single black horn and a grey-brown hide with skin folds. 
  • Largest number of Greater One-Horned Rhinoceros are found in India.
  • At present, there are about 2,600 Indian rhinos in India, with more than 90% of the population concentrated in Assam’s Kaziranga National Park.
  • These are protected under 
    • IUCN Red List: Vulnerable.
    • CITES: Appendix-I
    • Wildlife Protection Act, 1972: Schedule I.
  • Hence option C is correct
Q4. Its objective is to promote smart, sustainable and inclusive growth and employment 
opportunities with regard to maritime economic activities. It emphasizes on integration of 
development of marine economy with social inclusion, environmental sustainability, combined 
with an innovative business model. It is reflected in SDG 14, which calls to conserve and 
sustainably use the oceans, seas and marine resources for sustainable development. This model 
of marine development is known as –
  1. Blue Economy
  2. Sustainable Marine Strategy
  3. Ocean Economy
  4. Both a and c 
CHECK ANSWERS:-

Answer: d

Explanation:

  • Sustainable Development Goal 14 commits countries to unite over what is a truly global responsibility – the protection of our oceans and the lives that depend on it. 
  • By 2020, countries commit to achieving the sustainable management of marine ecosystems, and in another five years, significantly reduce marine pollution of all kinds. 
  • As per the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem.” 
  • The ocean economy is defined by the OECD as the sum of the economic activities of ocean-based industries, together with the assets, goods and services provided by marine ecosystems. 
  • Hence option D is correct
Q5. With reference to agricultural soils, consider the following statements:
  1. A high content of organic matter in soil drastically reduces its water holding capacity.
  2. Soil does not play any role in the sulphur cycle.
  3. Irrigation over a period of time can contribute to the salinization of some agricultural lands.

Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
CHECK ANSWERS:-

Answer: b

Explanation:

  • Organic matter increases a soil’s ability to hold water, both directly and indirectly. This is because the addition of organic matter increases the number of micropores and macropores in the soil either by “gluing” soil particles together or by creating favorable living conditions for soil organisms.Hence Statement 1 is not correct.
  • Soil is a major source of  sulfur that occurs in organic and inorganic forms. It is cycled within and between those forms via mobilization, immobilization, mineralization, oxidation, and reduction processes. Hence Statement 2 is not correct.
  • Irrigation salinity occurs due to increased rates of leakage and groundwater recharge causing the water table to rise. Irrigation with salt-rich water, which amplifies salt content in earths, is a major cause of salinity of agricultural lands. Hence Statement 3 is correct.

I. UPSC Mains Practice Questions

  1. Although Fundamental duties are not made enforceable by a writ of court like the fundamental rights, they are equally fundamental to the well being of society and individuals. (250 words; 15 marks)[GS-2, Polity]
  2. History has taught us the importance of preserving one’s mother tongue. What steps have been taken by the Government in India to ensure the same? (250 words; 15 marks)[GS-1, Culture]

Read the previous CNA here.

CNA 22 Feb 2022:-Download PDF Here

IAS General Studies Notes Links
Pm Mudra Loan Historical Monuments
Indian Police Service Companies Act 1956
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National Civil Service Day Indian Courts
IAS Post List The Great Indian Desert

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