TGPSC Daily Current Affairs 12th March 2026
Relevance: TGPSC – Paper IV (Telangana Economy) | Fiscal Governance & Public Finance
Prelims:
Fiscal Health Index (FHI), NITI Aayog Fiscal Health Index 2026, Revenue Mobilisation, Quality of Expenditure, Fiscal Prudence, State-wise Debt Index, FRBM Act, Capital Expenditure, Revenue Surplus
For Mains:
State Fiscal Management, Revenue Mobilisation Strategy, Welfare Expenditure and Fiscal Sustainability, Infrastructure-led Growth, Fiscal Prudence in State Finances, Public Debt Management
Why in News?
- Telangana secured 7th rank in NITI Aayog’s Fiscal Health Index (FHI) 2026 for the financial year 2023–24.
- The State scored 44.3 points, placing it among the frontrunner States in fiscal management.
- Telangana also recorded the highest FHI score among major southern States.
Fiscal Health Index (FHI)
The Fiscal Health Index released by NITI Aayog evaluates the fiscal performance of States based on indicators such as:
- Revenue mobilisation
- Quality of expenditure
- Fiscal prudence
- Debt sustainability
- Debt Index
Pillar | Definition |
Quality of Expenditure | Quality of Expenditure refers to how effectively a state uses its financial resources, prioritizing productive spending such as capital investment, health, education, and infrastructure rather than routine expenses like salaries, pensions, and interest payments. |
Revenue Mobilisation | Revenue Mobilisation refers to the ability of a state government to generate revenue from its own sources such as taxes and non-tax revenues, reducing dependence on transfers and grants from the central government. |
Fiscal Prudence | Fiscal Prudence refers to the discipline with which a state manages its finances by controlling deficits, adhering to fiscal responsibility rules, and ensuring balanced and sustainable public finances. |
Debt Index | Debt Index measures the size, composition, and burden of a state’s outstanding debt, including liabilities and interest obligations, indicating the level of financial stress and the ability to service debt. |
Debt Sustainability | Debt Sustainability refers to a state’s ability to manage and repay its debt over the long term without compromising economic growth or essential government expenditure. |
Performance of Telangana
The report highlights Telangana’s stable fiscal condition and development-oriented expenditure.
Key observations include:
- Telangana has consistently ranked around 7th place since its formation in 2014, except during pandemic years.
- The State ranked 3rd in Revenue Mobilisation, reflecting strong tax collection and financial management.
- Telangana was recognised among achiever States in Quality of Expenditure.
- It ranked 10th in the State-wise Debt Index, remaining among leading States in debt management.
The report attributes these outcomes to strong fiscal policies and development-oriented spending during the BRS government.
Telangana’s ranks in all parameters:
Parameter | Telangana Score | Telangana Rank |
FHI Score | 44.3 | 7 |
Quality of Expenditure | 57.1 | 6 |
Revenue Mobilisation | 60.8 | 4 |
Fiscal Prudence | 30.0 | 10 |
Debt Index | 53.5 | 10 |
Debt Sustainability | 20.0 | 12 |
Growth Drivers of Telangana’s Fiscal Performance
The report identified several factors behind Telangana’s fiscal strength.
Increase in Capital Expenditure
- Developmental capital expenditure increased from ₹16,860 crore in 2019–20 to ₹43,918 crore in 2023–24.
- This represents an increase of over 160%, reflecting major investments in infrastructure.
Expansion of Economic Services Spending
- Spending on economic services more than doubled, supporting economic development and infrastructure expansion.
High Social Sector Spending
- Social sector expenditure remained high at 38–39%, indicating continued focus on welfare and human development.
Growth in Revenue Receipts
- Revenue receipts increased from ₹1.02 lakh crore (2019–20) to ₹1.69 lakh crore (2023–24).
Strong State Tax Revenues
- Nearly 80% of revenue receipts came from the State’s own tax revenues, indicating a strong and self-sustaining tax base.
Growth in Non-Tax Revenues
- Non-tax revenues also increased significantly, strengthening fiscal stability.
Role of Development-Oriented Policies
Officials indicated that the fiscal performance reflected the policy framework adopted during the BRS government.
Major areas of investment included:
- Irrigation infrastructure
- Urban development
- Welfare programmes
- Infrastructure expansion
These investments improved expenditure quality and revenue mobilisation, helping Telangana remain among the better-performing States in fiscal management.
Conclusion
Telangana’s 7th rank in the Fiscal Health Index 2026 highlights its strong fiscal management and development-oriented spending. The State’s emphasis on infrastructure investment, welfare programmes, and robust revenue mobilisation has contributed to fiscal stability while supporting economic growth. The findings underscore the importance of balanced fiscal policies that combine development spending with responsible financial management.
CARE MCQ
Q) Consider the following:
- Quality of Expenditure
II. Revenue Mobilisation
III. Fiscal Prudence
IV. Debt Sustainability
How many of the above are pillars of the Fiscal Health Index (FHI) developed by NITI Aayog?
- Only one
- Only two
- Only three
- All the four
Answer: D
Explanation:
The Fiscal Health Index (FHI) was developed by NITI Aayog to measure and compare the financial health of Indian states. It evaluates how effectively states manage their finances.
The index is based on five main pillars:
- Quality of Expenditure – Examines whether government spending is productive and supports development.
- Revenue Mobilisation – Measures the ability of states to generate their own revenues.
- Fiscal Prudence – Evaluates how responsibly states manage fiscal deficits and financial discipline.
- Debt Index – Assesses the level and structure of public debt.
- Debt Sustainability – Checks whether states can repay their debt without financial stress.
All four options given in the question are part of the pillars of the Fiscal Health Index.
Additional Information:
- The second edition of the Fiscal Health Index expanded its coverage from 18 major states to include North-Eastern and Himalayan states.
- The index helps policymakers understand fiscal risks and improve financial governance at the state level.
- States such as Odisha have performed well due to better fiscal discipline and stable revenues, while some states face stress because of rising debt and weak revenue growth.
Relevance: GS Paper III – Indian Economy – Energy Security, Infrastructure – Issues related to Energy Security – Effects of Global Events on India’s Economy
For Prelims:
- Liquefied Petroleum Gas (LPG), Strait of Hormuz, Pradhan Mantri Ujjwala Yojana (PMUY), International Energy Agency (IEA), Strategic Petroleum Reserves (SPR), Underground LPG Caverns, Essential Commodities Act.
For Mains:
- Energy Security, Import Dependency, Strategic Energy Storage, West Asia Geopolitics, Global Supply Chain Disruptions, Energy Infrastructure.
Why in News?
India is facing a growing shortage of Liquefied Petroleum Gas (LPG) due to disruptions in global energy supply chains linked to the West Asia conflict involving Iran and Israel.
The crisis has slowed LPG shipments through the Strait of Hormuz, a key global energy transit route through which over 85% of India’s LPG imports pass. The shortage has led to long queues at LPG distribution centres, disruptions in supply to households and businesses, and warnings from industry groups such as the National Restaurant Association of India about potential closures of commercial establishments.
The situation has also highlighted a structural weakness in India’s energy infrastructure — the lack of long-term LPG storage capacity.
Background
India has significantly expanded LPG access over the past decade, particularly through welfare initiatives such as the Pradhan Mantri Ujjwala Yojana (PMUY).
While LPG consumption has increased dramatically, the country has not developed adequate strategic LPG reserves. Unlike crude oil and petroleum products, which have strategic reserves equal to about two months of consumption, LPG infrastructure in India is designed mainly for operational flow rather than long-term storage.
The International Energy Agency (IEA) has identified this lack of storage as a major infrastructural weakness in India’s energy system.
LPG Consumption and Import Dependence in India
India is currently the second-largest consumer of LPG in the world.
Rising Consumption
- Monthly LPG consumption: around 3 million tonnes
- Daily LPG consumption: about 80,000 tonnes
- More than 85% of LPG is used by households
Growth in Imports
- LPG imports increased threefold between 2011-12 and 2024-25.
- Current imports: around 20 million tonnes annually.
- Import dependency increased from 47% in 2015 to about 60% today.
By January 2026, imports had already crossed 18 million tonnes.
Role of PMUY
India now has about 33 crore domestic LPG connections.
- Around 10 crore connections were added after 2017 under the Pradhan Mantri Ujjwala Yojana (PMUY).
- The scheme provides deposit-free LPG connections to women in poor households and subsidises LPG usage.
PMUY significantly increased LPG adoption, improving health and reducing reliance on traditional fuels such as firewood and cow-dung.
However, the rapid expansion in LPG consumption was not matched with investments in storage infrastructure, increasing vulnerability to supply disruptions.
Structural Weakness in India’s LPG System
India’s LPG supply chain is structured around continuous import and distribution, rather than strategic storage.
Current Storage Capacity
India’s total LPG storage capacity can meet less than half of monthly consumption.
Most LPG storage exists in surface tanks at import terminals, such as Ennore.
Underground LPG Storage
India currently has only two underground LPG caverns:
| Location | Storage Capacity |
| Mangaluru | 80,000 tonnes |
| Visakhapatnam | 60,000 tonnes |
- Total underground storage capacity: 1.4 lakh tonnes.
- This is equivalent to less than two days of India’s LPG consumption.
- The Mangaluru cavern became operational only in 2025, despite rising LPG consumption over the past decade.
- The Ministry of Petroleum and Natural Gas (MoPNG) has also stated that no additional caverns are currently planned.
Role of West Asia Conflict and Strait of Hormuz
The ongoing West Asia conflict has disrupted global energy supply chains.
Importance of Strait of Hormuz
The Strait of Hormuz is one of the most critical maritime routes for energy trade.
- More than 85% of India’s LPG imports pass through this route.
- Any disruption in this narrow shipping lane quickly affects energy supplies.
Because India has limited LPG storage, disruptions in shipments have immediate effects on domestic supply.
Global Comparison: Energy Storage Systems
Many countries maintain large energy reserves to manage supply shocks.
Strategic Oil Reserves
- Countries often maintain strategic crude oil reserves equal to 90 days of consumption.
European Gas Storage
- Europe has developed significant gas storage capacity.
- Underground storage equals about 25% of annual gas consumption.
- Storage capacity is equivalent to 150% of annual LNG imports.
Following the Russia-Ukraine war, the European Union introduced rules requiring storage facilities to reach 90% capacity before winter.
India currently lacks similar strategic LPG storage policies.
Geological Options for LPG Storage Expansion
Experts have identified several geological formations in India suitable for underground LPG storage.
1. Peninsular Shield
This region consists of ancient granite, gneiss, and charnockite rock formations covering about 60% of peninsular India.
Both existing LPG caverns are located here.
Examples:
- Visakhapatnam cavern
- Located 162–196 metres below ground
- Built in Precambrian gneiss
- Mangaluru cavern
- Built in granitic gneiss
- Floor located 141 metres below sea level
These formations are considered stable and suitable for underground storage.
2. Deccan Traps
The Deccan Traps, a vast basalt plateau covering about 5 lakh sq km, present engineering challenges for storage.
Projects in this region have faced technical difficulties due to rock structure.
3. Salt Formations in Rajasthan
The Bikaner–Barmer belt contains halite (salt) formations suitable for creating salt caverns.
Salt caverns offer several advantages:
- Lower construction cost
- Faster construction
- Natural impermeability
- Quick injection and withdrawal of gas
Engineers India Limited (EIL) has partnered with Germany’s DEEP company to explore this technology.
4. Depleted Gas Reservoirs
Depleted gas fields in the following basins are also under study:
- Krishna-Godavari Basin
- Cambay Basin
- Mumbai Offshore Basin
These reservoirs could potentially serve as large underground storage sites.
Economic and Social Impact of LPG Shortage
The shortage has affected multiple sectors.
Household Impact
- LPG is the primary cooking fuel for most households.
- Supply disruptions have caused long queues at LPG distribution centres.
Hospitality Sector
The National Restaurant Association of India (NRAI) has warned that about 60% of restaurants could shut down if commercial LPG shortages persist.
Price Impact
Global oil prices have surged due to geopolitical tensions.
- US crude rose to $93.80 per barrel.
- Brent crude rose to $99.03 per barrel.
Such increases raise the cost of energy imports for India.
Government Response
The government has taken several emergency steps:
Essential Commodities Act
- LPG and CNG have been placed on the priority list under the Essential Commodities Act to prevent hoarding and stabilise supplies.
International Energy Agency Intervention
- The International Energy Agency (IEA) has announced the release of around 400 million barrels of oil from strategic reserves to stabilise global markets.
Diversification of LPG Imports
- India signed an agreement with the United States to import 2.2 million tonnes of LPG annually.
- However, US shipments take around 45 days to reach India, compared with much shorter travel times from the Persian Gulf.
Way Forward
To strengthen energy security, India must address structural weaknesses in LPG storage.
1. Build Strategic LPG Reserves
India should establish large underground LPG storage caverns similar to strategic petroleum reserves.
2. Diversify Import Sources
Reducing dependence on the Strait of Hormuz route will reduce vulnerability to geopolitical disruptions.
3. Expand Storage Infrastructure
Investment in salt caverns and depleted gas fields could significantly increase storage capacity.
4. Strengthen Energy Security Policy
India may consider introducing mandatory strategic gas storage requirements similar to oil reserves.
Conclusion
India’s LPG shortage reveals a deeper structural issue in the country’s energy system. While policies such as the Pradhan Mantri Ujjwala Yojana successfully expanded LPG access to millions of households, the lack of corresponding investments in strategic storage infrastructure has increased vulnerability to global supply disruptions. Strengthening storage capacity, diversifying imports, and developing strategic energy reserves will be essential for ensuring India’s long-term energy security.
UPSC PYQ
Q. Match List-I with List-II and select the correct answer using the code given below the Lists:
CDS-II (2016)
List-I (Strait)
A. Strait of Hormuz
B. Strait of Bab-el-Mandeb
C. Strait of Malacca
D. Strait of Sunda
List-II (Water Body)
- Java Sea
- Andaman Sea
- Red Sea
- Gulf of Persia
Code:
| A | B | C | D | |
| a) | 4 | 2 | 3 | 1 |
| b) | 1 | 3 | 2 | 4 |
| c) | 1 | 2 | 3 | 4 |
| d) | 4 | 3 | 2 | 1 |
Ans: d)
CARE MCQ
Q. With reference to Liquefied Petroleum Gas (LPG) in India, consider the following statements:
- India’s LPG imports account for about 60% of domestic demand.
- India currently has underground LPG storage caverns at Visakhapatnam and Mangaluru.
- Strategic LPG reserves in India can currently meet more than one month of consumption.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a) 1 and 2 only
Explanation
Statement 1 – Correct: LPG imports account for roughly 60% of India’s demand.
Statement 2 – Correct: India currently has underground LPG storage caverns at Visakhapatnam and Mangaluru.
Statement 3 – Incorrect: India’s underground LPG storage capacity equals less than two days of consumption, not one month.
Relevance: GS Paper III – Science and Technology, Public Health, Food Processing, Agriculture, Environment and Sustainable Development
For Prelims:
- Gut Microbiome, Dysbiosis, Ultra-Processed Foods (UPFs), Short-Chain Fatty Acids (SCFAs), Gut–Brain Axis, Antimicrobial Resistance (AMR), Bacteroidetes, Firmicutes, Bifidobacteria, Lactobacilli, Estrobolome, Emulsifiers, Artificial Sweeteners, High Fat Sugar Salt (HFSS) Foods.
For Mains:
- Sustainable Food Systems, Microbiome Diversity, Dietary Diversity, Soil–Food–Gut Linkage, Industrial Agriculture, Antibiotic Use in Livestock, Chemical-Intensive Farming, Food Processing Additives, Public Health Nutrition, Metabolic Disorders, Ecosystem Health and Human Health Nexus, One Health Approach.
Why in News?
Recent scientific research highlights the growing link between food systems, gut microbiome diversity, and public health outcomes. Experts argue that modern industrial food systems—characterised by ultra-processed foods, chemical-intensive agriculture, and antibiotic use in livestock—are disrupting gut microbial balance. This disruption is increasingly associated with rising cases of metabolic disorders, immune diseases, and antimicrobial resistance (AMR).
Understanding the Gut Microbiome
The gut microbiome refers to the complex ecosystem of microorganisms residing in the gastrointestinal tract. These microbes include bacteria, fungi, viruses, and archaea that collectively influence several biological processes.
Key Characteristics
- The human gut contains trillions of microorganisms, roughly equal to the number of human cells.
- It weighs around 1–2 kilograms, comparable to the weight of the human brain.
- The microbiome contains 2–20 million microbial genes, far exceeding the approximately 20,000 genes in the human genome.
- Around 2,000 bacterial species are known to inhabit the gut, with most residing in the colon.
- Nearly 90% of gut bacteria are beneficial, including groups such as Bacteroidetes and Firmicutes.
- Each individual’s microbiome composition is unique, much like a fingerprint.
This enormous genetic diversity allows the microbiome to perform functions that the human body cannot perform on its own.
Factors Influencing Gut Microbiome Diversity
The diversity and balance of gut microbes are influenced by several factors throughout life:
- Birth and early childhood conditions
- Diet and food diversity
- Antibiotic exposure
- Lifestyle and living environment
- Ethnicity and cultural food practices
A diverse and balanced microbiome is essential for maintaining physiological stability.
Dysbiosis and Health Risks
When the balance between beneficial and harmful microbes is disturbed, a condition known as dysbiosis occurs.
Consequences of Dysbiosis
- Breakdown of the gut barrier
- Development of “leaky gut”, where harmful substances enter the bloodstream
- Chronic inflammation
- Increased risk of metabolic, immune, and hormonal disorders
Dysbiosis has been linked to conditions such as obesity, diabetes, autoimmune diseases, and mental health disorders.
Key Functions of the Gut Microbiome
The gut microbiome performs several essential functions that go far beyond digestion.
1. Metabolic Functions
Gut microbes help digest complex dietary fibers and produce short-chain fatty acids (SCFAs) that reduce inflammation and maintain intestinal health.
2. Vitamin Synthesis
Certain microbes synthesize essential vitamins such as vitamin K and some B vitamins.
3. Immune Regulation
The microbiome acts as the body’s primary immune trainer, helping distinguish between harmful pathogens and beneficial microbes.
4. Gut Barrier Protection
Beneficial microbes strengthen the intestinal lining and prevent pathogen invasion.
5. Neuroendocrine Functions
The microbiome produces neurotransmitters and hormones influencing mood, sleep, stress levels, hunger, and satiety.
6. Gut–Brain Axis
There is constant bi-directional communication between the gut and the brain, affecting mental health and cognitive functions.
How Modern Food Systems Disrupt the Gut
Industrial food systems and modern diets have significantly altered the relationship between food and gut health.
1. Ultra-Processed Foods and Low Fibre Intake
Ultra-processed foods (UPFs) are factory-made products high in fat, sugar, and salt (HFSS) but low in fiber.
- Fiber is essential for beneficial gut bacteria.
- Lack of fiber causes beneficial microbes to decline.
- Some bacteria may begin consuming the gut’s protective mucus layer.
- This leads to dysbiosis and reduced production of SCFAs, increasing the risk of inflammation and colon cancer.
2. Chemical Additives and Food Processing
Many processed foods contain chemicals that disrupt gut microbes.
Examples include:
- Emulsifiers that damage the gut lining
- Artificial sweeteners that alter microbial metabolism and cause glucose intolerance
- Preservatives that kill beneficial microbes
- Food colors that trigger immune responses and allergies
3. High Sugar Content
Excess sugar promotes the growth of opportunistic microbes such as E. coli and Candida.
This imbalance can lead to:
- Fatty liver disease
- Increased inflammation
- Reduced beneficial bacteria like Bifidobacteria and Lactobacilli
- Increased cravings for sugary foods due to microbial influence on the brain
Antibiotics in Animal Farming
Modern livestock production often involves the extensive use of antibiotics to promote growth and prevent disease.
Impacts on Human Health
- Antibiotic residues can remain in meat, milk, eggs, and fish.
- Continuous low-level exposure disrupts gut microbial diversity.
- It contributes to the global crisis of antimicrobial resistance (AMR).
Agricultural Chemicals and Gut Health
Chemical-intensive farming practices also influence gut microbiota.
Key Risks
- Pesticide residues can disrupt microbial balance.
- Certain chemicals interfere with the estrobolome, a group of gut bacteria that regulate estrogen metabolism.
- This may lead to hormonal imbalances, insulin resistance, thyroid disruption, and chronic inflammation.
Additionally, contamination with pathogens such as Salmonella and Campylobacter can further damage gut microbial health.
The Gut–Food–Soil Connection
There is a growing recognition that soil health, food quality, and gut microbiome health are interconnected.
Healthy soil supports:
- Nutrient-rich crops
- Greater food diversity
- Reduced chemical contamination
Conversely, degraded soils and monocropping systems reduce the nutritional quality of food and ultimately affect human gut health.
Reforming Food Systems for Better Health
Transforming food systems is essential for restoring microbial diversity and improving public health.
1. Promote Dietary Diversity
A diverse diet provides a wide range of nutrients and fibers that nourish different microbial species.
2. Reduce Ultra-Processed Foods
Encouraging consumption of fresh, minimally processed foods supports microbial balance.
3. Encourage Sustainable Agriculture
Agricultural practices should focus on:
- Reduced pesticide use
- Crop diversification
- Soil regeneration
- Water conservation
4. Limit Antibiotic Use in Animal Farming
Regulation of antibiotics in livestock production is crucial to prevent antimicrobial resistance.
5. Strengthen Local Food Systems
Local food production reduces chemical dependence and improves food freshness and nutritional quality.
Co-Benefits of Sustainable Food Systems
Transitioning toward sustainable food systems offers multiple benefits beyond gut health.
These include:
- Improved farmer livelihoods
- Enhanced soil fertility
- Reduced environmental degradation
- Climate change mitigation
- Better public health outcomes
Conclusion
The health of the human gut microbiome is closely linked to the health of food systems. Industrialized agriculture, ultra-processed foods, chemical additives, and antibiotic misuse have disrupted the microbial balance essential for human well-being.
Reforming food systems to prioritize diversity, sustainability, and nutritional quality is therefore critical. Such a transformation will not only restore gut health but also improve environmental sustainability, strengthen rural livelihoods, and build a healthier society.
UPSC PYQ
Q. Which one of the following statements regarding digestion is correct? (CAPF 2018)
a. Fat present in the food is digested by trypsin and chymotrypsin.
b. Starch of food is digested by lipases.
c. Fat of food is digested by lipases.
d. Nucleic acid is digested by amylases.
Answer: C
Explanation
Option (a) Incorrect
Trypsin and chymotrypsin are protein-digesting enzymes. They help break proteins into smaller peptides. They do not digest fats.
Option (b) Incorrect
Starch is a carbohydrate. It is digested mainly by amylase, not by lipases.
Option (c) Correct
Fats are digested by lipases. These enzymes break fats into fatty acids and glycerol. Pancreatic lipase plays the main role in fat digestion.
Option (d) Incorrect
Nucleic acids are digested by nucleases, not by amylases. Amylases act on carbohydrates like starch.
CARE MCQ
Q. Consider the following:
I. Bacteria
II. Viruses
III. Fungi
How many of the above microorganisms can develop antimicrobial resistance (AMR)?
A. Only one
B. Only two
C. All the three
D. None
Answer: C
Explanation:
Antimicrobial Resistance (AMR) occurs when microorganisms evolve and no longer respond to medicines that were previously effective.
- Bacteria (I) can develop resistance to antibiotics.
- Viruses (II) can develop resistance to antiviral drugs.
- Fungi (III) can develop resistance to antifungal medicines.
Since all these microorganisms can develop resistance to antimicrobial drugs, the correct answer is All the three.
Additional Information:
- AMR makes infections harder to treat and increases the risk of disease spread, severe illness, and death.
- Medicines affected include antibiotics, antivirals, antifungals, and antiparasitic drugs.
- Microorganisms that develop strong resistance are often called “superbugs.”
