CONTENTS

1. FINANCE COMMISSION  OF INDIA-  GS-2 CONSTITUTIONAL BODY
2. POWER & ACCOUNTABILITY GS-2 GOVERNANCE, GS-4 ETHICS
3. EXPUNCTION GS-2 

Finance Commission of India

Source- The Hindu

CONTEXT - The 16th Finance Commission (FC) is tasked with overseeing the distribution of the consolidated fund, with the responsibility of providing support to panchayats and municipalities as stipulated by Article 280 and the 73rd and 74th constitutional amendments.

Introduction to Finance Commission

• Constitutional Body: Established under Article 280 of the Indian Constitution.
• Primary Function: Recommend the distribution of financial resources between the central and state governments.

Composition of the Finance Commission of India (FCI)

• Structure: Consists of a Chairman and four members appointed by the President.
• Term: Duration specified by the President; members can be reappointed.
• Qualifications:
  • Chairman: Experience in Public Affairs.
  • Members: Must include a High Court judge or qualified individual, a finance/accounting expert, an experienced financial administrator, and an economist.

Functions of the Finance Commission

1. Tax Distribution:
   • Recommends distribution of tax proceeds between the Centre and States.
2. Grants-in-Aid:
   • Advises on principles for grants from Centre to States.
3. State Funds:
   • Suggest measures to augment State funds for Panchayats and Municipalities.
4. Other Matters:
   • Addresses any additional issues referred by the President.

Report of the Finance Commission

• Submission: Submitted to the President.
• Presentation: Presented to Parliament with an explanatory memorandum on actions taken.

The 16th Finance Commission

About the 16th Finance Commission

• Establishment: Constituted under Article 280(1) of the Constitution.
• Chairman: Dr. Arvind Panagariya, former Vice-Chairman of NITI Aayog and Professor at Columbia University.

Major Terms of Reference for the 16th Finance Commission

1. Division of Tax Proceeds:
   • Recommend tax distribution between Union and States, including State shares.
2. Principles for Grants-in-Aid:
   • Establish principles for grants from the Consolidated Fund of India to States, particularly under Article 275.
3. Enhancing State Funds for Local Bodies:
   • Suggest measures to boost State funds for Panchayats and Municipalities, based on State Finance Commission recommendations.
4. Evaluation of Disaster Management Financing:
   • Review and recommend improvements for disaster management funding under the Disaster Management Act, 2005.

Recommendations for Local Bodies by the 16th Finance Commission

1. Revisit 15th FC’s Principles:
   • Enhance property tax collection linked to state GST.
   • Improve maintenance of accounts.
   • Allocate resources for pollution mitigation.
   • Focus on primary health care, solid waste management, and drinking water.
2. Recognize Urbanization Dynamics:
   • Acknowledge India’s dynamic urbanization.
   • Ensure intergovernmental transfers to urban areas are at least doubled

Topic- 2 Power and Accountability

Syllabus- Gs-2 Governance, Gs-4 Ethics

Source- The Assam Tribune

Yudhishthira’s Journey:

• Context: Yudhishthira’s loss in a game of dice leading to the loss of his kingdom and Draupadi.
• Lesson: Highlights the importance of accountability and the consequences of power without responsibility.

Historical Example:

• India's Emergency Period (1975-77):
  • Context: Prime Minister Indira Gandhi declared a state of emergency.
  • Consequences: Civil liberties suspended, press censored, opposition leaders imprisoned.

Theoretical Framework:

• Montesquieu’s Theory:
  • Concept: Concentration of power within one branch leads to tyranny.
  • Example: Dr BR Ambedkar’s warning about the implementation of the Constitution.

Corruption:

• Karl Kraus’s View:
  • Comparison: Prostitution is less harmful compared to corruption.
  • Example: NEET scam affecting students' futures.

Transparency:

• JS Mill’s Harm Principle:
  • Concept: Personal freedom should be restricted to protect others from harm.
  • Example: Criticism of the Aadhaar project for lack of transparency.

Judiciary’s Role:

• Navtej Singh Johar vs Union of India:
  • Example: Importance of checks and balances.

Accountable Governance:

• Examples:
  • MGNREGA: Driven by accountability, leading to fair policies.
  • RTI Act: Builds public trust and ensures transparency.

Social Impact:

• Lack of Accountability:
  • Consequences: Disenfranchisement, unrest, civil movements, protests.
  • Example: Anna Hazare’s anti-corruption campaign and the Jan Lokpal Bill.

Cultural Context:

• Cultural Accountability:
  • Examples: MeToo and BlackLivesMatter movements.

Political Impact:

• Democratic Erosion:
  • Consequences: Voter apathy, less political participation, distrust in governance.
  • Example: Impact during the Emergency.

Religious Sphere:

• Sensitivity of Accountability:
  • Example: Allegations against Dera Sacha Sauda’s leader leading to protests.

Personal Level:

• Individual Behaviour:
  • Examples:
    • Unethical actions by entitled individuals in power.
    • Accountability and humility exemplified by Dr APJ Abdul Kalam.

Recommendations:

• Strengthening Institutions:
  • Focus: Checks and balances, free press, independent bodies like Election Commission.
• Legal Reforms:
  • Examples: RTI Act, Whistleblowers Protection Act, 2014.
• Public Participation:
  • Examples: Gram sabhas, public hearings, participatory budgeting in Pune.

Government Measures:

• Examples:
  • Lokpal and Lokayuktas Act, 2013: Addressing corruption allegations.
  • Digital Governance Initiatives: DBT eliminating middlemen.

Technology for Accountability:

• Future Potential:
  • Example: Use of blockchain for transparent records in governance.

Cultural Wisdom:

• Satyameva Jayate: Emphasizes truth and accountability.

Miscellaneous Issues

Floods and Food Price Rise:

• Problem: Annual floods causing devastation and shortage of essential commodities.
• Solution: Establishing cold storage facilities to stabilize prices and prevent distress selling by farmers.

Extracurricular Activities:

• Benefits: Holistic development, skills like leadership and time management, reduced academic pressure, improved cognitive function, enhanced social skills, better college applications, exploration of passions, boosted self-esteem, and confidence.

Introduction to Accountability in Governance

• Accountability: Process/norms making decision-makers answerable to beneficiaries.
• Importance: Emphasizes need in governance, revolutionizes democracy.

Advantages of Accountability

• Democratic Governance: Extends beyond hierarchy to citizens/civil society.
• Answerability: Justifies actions and enforces measures for omissions/commissions.
• Remedial Measures: Punishes deviations from norms.
• Public Confidence: Enhances trust in government.

Stakeholders and Ongoing Process

• Checks and Balances: Ensures administrative objectivity in Indian Constitution.
• Citizens as Electorate/Taxpayers: Right to accountability and tax utilization.
• Vision of Government: Stakeholder participation in scheme framing/evaluation.
• Empowering Stakeholders: Justification and transparency obligations.

Legal Frameworks

• RTI Act, 2005: Transparency and access to information.
• Digitisation: Faster service delivery, clear transaction trails.
• Citizen's Charter: Responsibilities and timelines for government agencies (e.g., CBDT).

Role of Vigilance and Financial Accountability

• Vigilance Mechanisms: Detects violations, abuse, poor administration.
• Horizontal Accountability: Includes CAG, Election Commission, Vigilance Commission, etc.
• Financial Accountability: Parliament allocates, Executive implements, CAG audits.

The Role of CAG

• Compliance Audit: Examines rules, regulations for legality/effectiveness.
• Performance Audit: Assesses efficiency/effectiveness of organizations/programs.
• Independence: Ensured by constitutional/legislative provisions for effective oversight.

Way Forward

• Resilient Accountability: Required for complex environments and demands.
• Public Trust: Critical for sustaining democratic systems.
• Modern Mechanisms: Adapt to digitalization and evolving structures.
• Minimized Discretion: Define SOPs for transparency and responsiveness.

Topic- 3 Expunction of Parliamentary Records

Topic- 2 Polity

Source- The Indian Express

Context - Portions of speeches from opposition leaders were recently expunged from the parliamentary record.

What is Expunction?

• Definition: Deletion of defamatory, indecent, unparliamentary, or undignified expressions from parliamentary records.

Authority

• Lok Sabha: Speaker
• Rajya Sabha: Chairman
• They decide which portions will be expunged to maintain order and decorum.

Rules of Procedure

• Lok Sabha
  • Rule 380: Provisions related to expunction.
  • Rule 381: Detailed process of expunction.
•  

Rajya Sabha

• Rule 261: Provisions related to expunction.
• Rule 262: Detailed process of expunction.

Constitutional Protection

• Article 105(2): Protects MPs from court proceedings for statements made in parliament, ensuring freedom of speech.
• ·  Purpose: Prevents misuse of freedom of speech and maintains parliamentary decorum.
• Criticism: May be viewed as censorship or suppression of dissent.

·  Implications

• Reflects the balance between free speech and maintaining parliamentary respect.
• Essential for upholding the dignity of parliamentary proceedings.