12 Mar 2024: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: POLITY

1. Why did the top Court reject SBI’s plea?

Syllabus: GS-2, Salient Features of the Representation of People’s Act

Mains: Electoral Bond

Background and Court Decision:

• On March 11, the Supreme Court rejected SBI’s plea to extend the deadline for providing details of electoral bonds, setting a new deadline of March 12.
• SBI was directed to furnish details to the Election Commission of India (ECI) by the close of business on March 12.
• The court was also hearing a contempt plea filed by NGOs against the SBI Chairman, alleging deliberate delay in disclosure.

SBI’s Reasons for Seeking Extension:

• SBI argued that retrieving details scattered across branches was time-consuming.
• Information related to bond issuance and redemption was stored separately to maintain donor anonymity.
• Decoding 22,217 bonds issued between April 2019 and February 2024 involved matching 44,434 sets of data.
• SBI cited the need to ensure compliance with the scheme’s objectives, which required physical documentation.

Challenges to the Extension Plea:

• Contempt plea alleged deliberate delay to withhold donor information before Lok Sabha elections.
• Petitioners cited contradicting government affidavits on data traceability and SBI’s existing IT infrastructure.
• They argued that SBI’s vast resources and previous data submissions to the government contradicted the claimed difficulty.

Court’s Response and Observations:

• The Chief Justice questioned SBI’s claims, noting that the judgment only sought plain disclosure, not complex matching.
• Justices emphasized SBI’s lack of transparency in explaining its actions since the previous court order.
• While the court did not initiate contempt proceedings immediately, it warned of consequences for non-compliance.

Expert Opinions and Analysis:

• Experts criticized SBI’s claim of data complexity, citing digital accessibility and previous prompt submissions to the government.
• Reports highlighted SBI’s prior cooperation with the government and its ability to provide data within 48 hours.
• Previous requests from SBI to include serial numbers on bonds for audit trails underscored its capability to track donor information.

Nut Graf: The Supreme Court rejected SBI’s plea to extend electoral bond disclosure deadlines. SBI cited data complexities, but experts and petitioners criticised its delay tactics, alleging the bank’s capacity to provide the required information promptly.

Category: SOCIAL JUSTICE

1. A tribe in the Western Ghats in need of a lifeline

Syllabus: GS-2, Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes

Mains: Forest Rights Act

Introduction: Makuta Village and the Phani Yerava Tribe

• Located in the Western Ghats of Karnataka, Makuta village is home to the Phani Yerava tribe within the Makuta Aranya Valaya.
• The tribe successfully claimed 135 acres of forest land under the Forest Rights Act, facilitated by local individuals and authorities.

Shift in Livelihood Patterns:

• Despite acquiring forest rights, the tribe’s enthusiasm for forest dependence has diminished over time.
• Gathering minor forest produce has become less appealing due to market volatility and exploitation by middlemen.
• Many tribe members now prefer wage labour, particularly in nearby areas like Kasaragod, Kerala, where they are comfortable speaking Malayalam.

Challenges and Issues:

• The tribe faces a significant challenge of alcohol addiction, affecting individuals of all ages, including adolescents.
• Alcohol abuse has led to a decline in school attendance and overall community well-being.
• Important documents and government rights are entrusted to non-tribal members due to the community’s uninformed state and vulnerability.

Call for Attention and Action:

• NGOs, government officials, and tribal leaders express concern over the lack of policy attention to social issues like addiction.
• There’s a plea for the government to address such challenges and prioritize the well-being of marginalized tribal communities.
• Addressing these social issues is crucial for effectively conserving forest dwellers’ livelihoods and well-being.

Nut Graf: Despite acquiring forest rights, the Phani Yerava tribe in Makuta village, Karnataka, faces challenges such as diminishing forest dependence, alcohol addiction, and lack of policy attention, highlighting the urgent need for government intervention.

Category: ECONOMY

1. Central transfers and the issue of shares of some States

Syllabus: GS-3, Inclusive Growth and issues arising from it

Mains: 16th Finance Commission

Introduction:

• Southern States, particularly, have observed a consistent decrease in their share of resources from one Finance Commission to another.
• Comparison between the Twelfth and Fifteenth Finance Commissions reveals a decline from 19.785% to 15.800%.
• Northern and eastern States also experienced reductions while hilly, central, and western States, like Maharashtra, saw gains.

Role of Criteria in Distribution:

• Criteria such as the income distance criterion heavily influence individual States’ tax devolution shares.
• Weightage of the distance criterion has decreased over Finance Commissions: from 62.5% in the Eleventh to 45% in the Fifteenth.
• Despite reductions, the distance criterion remains significant, impacting States’ shares based on their income disparity with the highest-income State.

Impact of Population Criterion:

• Population data changes have led to some controversy, particularly transitioning from 1971 to 2011 data.
• Introduction of the demographic change criterion aimed to mitigate penalties for States showing improved fertility rates.
• Overall, the joint impact of these changes has been marginal for all States, with some, like Tamil Nadu, experiencing a marginal positive impact.

Proposed Steps for Resolution:

• Addressing Criterion Weightage:
  • While the income distance criterion is crucial for fair distribution, its weightage could be reconsidered by the Sixteenth Finance Commission.
  • A reduction in weightage by 5% to 10% points could be a viable solution to balance its impact against other criteria.
• Limiting Cesses and Surcharges:
  • The increase in cesses and surcharges by the Centre has reduced the divisible pool size, affecting States’ shares.
  • Setting an upper limit, such as 10% of the Centre’s gross tax revenues, on cesses and surcharges could help maintain a larger divisible pool, benefiting States.
• Maintaining Fair Distribution:
  • Despite adjustments, ensuring a fair distribution of resources among States remains a fundamental principle.
  • While addressing specific concerns, maintaining the essence of equitable distribution is essential for the stability and development of all States.

Nut Graf: The Sixteenth Finance Commission must address declining state shares in resource transfers, primarily impacted by the income distance criterion. Proposed solutions include revising criterion weightage and limiting cesses and surcharges to maintain equitable distribution.

Q1) Consider the following statements regarding the Contempt of Court:

Q2) Consider the following statements regarding Agni-5 with MIRV technology in India:

Q3) Consider the following statements regarding the Finance Commission in India:

Q4) Consider the following statements about the Western Ghats:

Q5)  With reference to 8th August, 1942 in Indian history, which one of the 
following statements is correct?