08-02-2024 CARE mains practice

Topic- Federalism in India:

Introduction:
The Kerala government and the Centre are at loggerheads recently over the latter’s decision to limit the state’s borrowing limit. This issue has again brought focus on unique Centre- State Financial relations in a federal country like India.

Body :

• What is Fiscal Federalism
• Importance of fiscal consolidation
• Key Dimensions of Fiscal Federalism in India
• Tools to Achieve Fiscal Federalism
• Challenges to fiscal federalism
• Remedial measures

Conclusion :
In the India there is need to give serious consideration for a consultative forum for credible policy dialogue between the Centre and the States to avoid emerging financial problems. It is time that the centre and the states develop a broad consensus and blend good economics with politics.

 

UPSC Syllabus Federalism in India:

How far do you think cooperation, competition and confrontation have shaped the nature of federation in India? Cite some recent examples to validate your answer (UPSC Main 2020)

Introduction
The Kerala government and the Centre are at loggerheads recently over the latter’s decision to limit the state’s borrowing limit. This issue has again brought focus on unique Centre- State Financial relations in a federal country like India.

Body Status : 

What is Fiscal Federalism?

• In a federation there is division of powers between the central and state governments, each of which is autonomous and not subservient to the other.
• India is a federal system but with more tilt towards a unitary system of government i.e. unique model of a federal structure often called ‘centralised federalism’.
• Federalism allows for the adjustment of diversity and regional autonomy within a larger political unit.

Importance of fiscal consolidation

• Fiscal consolidation helps control spending and boost revenue, which in turn mitigates inflation, stabilizes exchange rates
• Improved fiscal health strengthens India’s credit rating, making it easier to access cheaper loans and foreign investments.
• By reducing government borrowing, fiscal consolidation creates space for private sector investments.
• Building a robust fiscal foundation through consolidation ensures resilience against economic fluctuations. This supports sustainable, long-term growth and development.

 

Key Dimensions of Fiscal Federalism in India

• Fiscal Responsibility and Budget Management (FRBM) Act, 2003 sets fiscal deficit and debt reduction targets, instilling discipline and transparency in fiscal management.
• Prioritizing essential expenditures, streamlining procurement processes, and minimizing wasteful spending are key aspects of fiscal consolidation.
• Subsidy Rationalization and Direct Benefit Transfer (DBT) schemes in India include Aadhaar-enabled DBT platforms and DBT across sectors like cooking gas, fertilizers, kerosene, and scholarships.
• Enhancing revenue mobilization is an important aspect of fiscal consolidation. Initiatives such as pre-filled tax returns, e-filing, and the implementation of the Goods and Services Tax (GST) in 2017 have been undertaken to improve tax collection.
• The National Monetization Pipeline, Infrastructure Investment Trusts, Real Estate Investment Trusts, and the strategic sale of public sector undertakings (PSUs) are examples of measures taken.
• Strengthening internal audit systems and strategic asset monetization, offer promise for fiscal federalism in India.

 

Tools to Achieve Fiscal Federalism

• The Finance Commission is a constitutional body (Art 280) responsible for recommending the distribution of tax revenues between the central government and the state governments.
• The Constitution of India defines the powers and functions of taxation and expenditure for different levels of government
• The grants-in-aid system (Art 275) involves the discretionary transfer of funds from the central government to state governments for specific purposes or schemes.
• The Goods and Services Tax Council is founded on the bedrock of collaborative federalism.

Challenges

• The transition from a planned economy to a market-mediated economic system marked a shift from centralized decision-making to a more decentralized approach.
• Implementation of FRBM Act has sometimes led to challenges in balancing growth-oriented spending with fiscal prudence.
• There are lots of centrally sponsored schemes, with a few dozen of them accounting for 90% of the allocation, and States required to share a part of the cost.
• The inability of states to fix tax rates to match their development requirements implies greater dependence on the centre for funds.

Remedial measures

• The Union Finance Commission should prioritize equity in tax devolution to ensure a fair distribution of resources across states, focusing on both efficiency and equity​​.
• Fiscal Responsibility and Budget Management (FRBM) Act should be revisited to ensure it supports both fiscal discipline and necessary growth-oriented expenditures.
• GST Council need to proactively look into issues of compliance, and more equitable revenue distribution.

Conclusion
In the India there is need to give serious consideration for a consultative forum for credible policy dialogue between the Centre and the States to avoid emerging financial problems. It is time that the centre and the states develop a broad consensus and blend good economics with politics.

Topic- Public Health

Introduction
India’s progress in reducing Maternal mortality has been commendable in the last two decades as per recent reports. Government Schemes have helped to a great extent to reduce infant and maternal mortality.

Body

• About MMR
• Reports
• Government interventions
• Challenges

Conclusion

The decline in India’s maternal mortality rate can be attributed to a range of government interventions. To achieve its goal of ensuring safe motherhood for all women, Central and state government need to rein on disparities based on education, wealth, and caste for complete elimination of maternal mortality.

 

UPSC Syllabus Public Health

Why was this question asked?
In order to enhance the prospects of social development, sound and adequate health care policies are needed particularly in the fields of geriatric and maternal health care. Discuss. (150 words, 10 marks) (UPSC Main 2020)

Introduction:
India’s progress in reducing Maternal mortality has been commendable in the last two decades as per recent reports. Government Schemes have helped to a great extent to reduce infant and maternal mortality.

Body Status

About MMR

• MMR is the number of maternal deaths during a given time period per 100,000 live births during the same time period.
• Maternal mortality in a region is a measure of the reproductive health of women in the area.
• Many women in reproductive age-span die due to complications during and following pregnancy and childbirth or abortion.

Reports

• According to the Maternal Mortality Estimation Inter-Agency Group (MMEIG), India’s MMR has decreased from 384 in 2000 to 103 in 2020, while the global MMR declined from 339 in 2000 to 223 in 2020.
• The average annual rate of reduction (ARR) in global MMR during this period was 2.07%, while India’s MMR has declined by 6.36%, surpassing the global decline.
• WHO, UNICEF, UNFPA document titled ‘Improving maternal and newborn health and survival and reducing stillbirth progress report 2023’, observed that India’s share of the total maternal and newborn deaths and stillbirths was about 17%

 

Government interventions

• The “Pradhan Mantri Surakshit Matritva Abhiyan” (PMSMA) was launched to provide comprehensive and quality antenatal care to pregnant women on the 9th day of every month, universally.
• The “Surakshit Matritva Aashwasan” (SUMAN) initiative aims to provide dignified and quality healthcare with zero tolerance for denial of services to women and newborns visiting public health facilities.
• The “Janani Shishu Suraksha Karyakaram” (JSSK) entitles every pregnant woman to free delivery, including cesarean sections, in public health institutions.
• The “LaQshya” program was launched to improve the quality of care in labor rooms and maternity operation theaters.
• Under National Health Mission (NHM), the government has focused on strengthening healthcare infrastructure, particularly in rural and remote areas where access to quality healthcare is limited.
• The Janani Suraksha Yojana (JSY) and the Pradhan Mantri Matru Vandana Yojana (PMMVY) are two such schemes that provide financial assistance to pregnant women for institutional deliveries and postnatal care.
• Initiatives like the Skilled Birth Attendant (SBA) program and the Life Saving Anesthesia Skills (LSAS) program have been instrumental in enhancing the skills and knowledge of healthcare professionals.

Conclusion

The decline in India’s maternal mortality rate can be attributed to a range of government interventions. To achieve its goal of ensuring safe motherhood for all women, Central and state government need to rein on disparities based on education, wealth, and caste for complete elimination of maternal mortality.