UPSC CURRENT AFFAIRS – 20 December 2024

UPSC CURRENT AFFAIRS – 20 December 2024 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles

InstaLinks :  Insta Links help you think beyond the  current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background.

Table of Contents 

GS Paper 3 : (UPSC CURRENT AFFAIRS – 20 December  2024)

1. State Fiscal Prudence

Content for Mains Enrichment (CME):

1. Standing Committee on Railways

Facts for Prelims (FFP):

1. A.F.E Accommodation Report

2. India’s First Fully Solar-Powered Border Village

3. Yuga Yugeen Bharat National Museum

4. H5N1 Avian Flu

5. GLP-1 receptor agonists

6. Never Events

7. Coconut Oil

8. IRIS² Space Programme

Mapping:

1. Libya

UPSC CURRENT AFFAIRS – 20 December 2024

GS Paper 3 :

State Fiscal Prudence

Syllabus: Economy

Source:  TH

Context: The Reserve Bank of India (RBI) released its report on state finances, highlighting the fiscal performance of Indian states.

RBI Data on State Fiscal Condition:

• Gross Fiscal Deficit (GFD): States contained GFD within 3% of GDP in 2022-23 and 2023-24; budgeted at 3.2% for 2024-25.
• Revenue Deficit: Limited to 0.2% of GDP in 2023-24.
• Capital Expenditure: Increased from 2.4% of GDP in 2021-22 to 3.1% budgeted for 2024-25.
• Outstanding Liabilities: Declined from 31% of GDP (March 2021) to 28.5% (March 2024), yet above the pre-pandemic level of 25.3%.

What is Fiscal Prudence?

• Definition: Fiscal prudence refers to the responsible management of public finances, focusing on controlling deficits, maintaining sustainable debt levels, and prioritizing productive expenditure.

Reasons Behind the Lack of Fiscal Prudence Among States:

• Populist Schemes: States like Punjab and Andhra Pradesh face financial strain due to free electricity, water subsidies, and farm loan waivers, impacting long-term fiscal sustainability.

E.g. Punjab’s free electricity scheme for farmers increased the state’s subsidy burden in 2023.

• Rising Debt Levels: Over-dependence on borrowing for capital and revenue expenditures.

E.g. West Bengal’s debt-to-GDP ratio remained at 35.5% in 2023, well above the FRBM limit.

• Off-Budget Borrowings: Use of off-budget mechanisms such as guarantees and loans by state PSUs creates hidden liabilities.

E.g. Andhra Pradesh in 2023 faced scrutiny for ₹55,000 crore off-budget borrowing.

• Delay in Fiscal Reforms: Resistance to implementing reforms such as property tax increases or disinvestment.

E.g. Rajasthan deferred property tax hikes in 2024 due to political opposition.

• Dependence on Central Grants: States often rely on the Centre rather than building self-sustained revenue mechanisms.

E.g. Northeastern states relied heavily on central funds in 2023, limiting fiscal autonomy.

Initiatives to Achieve Fiscal Prudence:

• RBI:

• • State-Specific Fiscal Responsibility Legislations (FRLs): Legal framework for fiscal discipline.
  • Monitoring Off-Budget Borrowings: Enhanced reporting and transparency.
  • Encouraging Counter-Cyclical Fiscal Policies: Advocating expenditure and savings based on economic cycles.

• Government:

• • 14th and 15th Finance Commissions: Recommendations for fiscal consolidation and debt sustainability.
  • Debt Consolidation Roadmaps: Specific targets for states.
  • Increased Capital Allocation: Promoting growth-enhancing spending.
  • Subsidy Rationalization: Programs to optimize welfare expenditures.

Challenges to Fiscal Prudence in Indian States:

1. Rising Subsidies: Increased reliance on populist measures.
2. High Contingent Liabilities: Off-budget borrowing and guarantees strain finances.
3. Revenue Deficits: Poor tax administration and dependency on Central grants.
4. Debt Overhang: Liabilities remain above pre-pandemic levels despite recent reductions.

Way ahead to achieve fiscal prudence:

1. Adopt Risk-Based Frameworks: Implement counter-cyclical policies for financial resilience.
2. Debt Consolidation Roadmap: Set clear, time-bound targets for reducing liabilities.
3. Enhance Revenue Sources: Improve state tax administration and rationalize subsidies.
4. Transparency in Borrowings: Ensure strict reporting of off-budget liabilities.
5. Focus on Growth-Enhancing Expenditure: Prioritize capital spending to boost economic growth.

Conclusion:

The 15th Finance Commission’s recommendations and RBI’s insights serve as crucial guidelines for achieving sustained fiscal prudence in Indian states. Adopting comprehensive fiscal reforms is essential to balance developmental needs and fiscal sustainability.

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UPSC CURRENT AFFAIRS – 20 December 2024 Content for Mains Enrichment (CME)

Standing Committee on Railways

Context: The Standing Committee on Railways presented its latest report in Parliament, highlighting inefficiency in Railways.

About Standing Committee Report on Railways:

• Freight Train Speed:
  • Average speed over the past 11 years: 25.14 km/h.
  • Dedicated Freight Corridors (DFC):
    1. Eastern DFC: Completed.
    2. Western DFC: 102 km section to be completed by December 2025.
• Revenue Insights:
  • 2023–24 revenue from freight: ₹1,68,293 crore.
  • 2024–25 target: ₹1,80,000 crore.
  • Recommendation:
    1. Keep general class fares affordable.
    2. Align AC class fares with operational costs to reduce passenger segment losses.
• Research and Development (R&D):
  • Budget allocation for 2024–25: ₹72.01 crore.
  • Actual spending: ₹39.12 crore (2022–23) and ₹28.34 crore (2023–24).
  • Recommendation:
    1. Invest prudently in R&D for modernization and efficiency.

Relevance in UPSC Syllabus:

• GS Paper 3 – Infrastructure:

• • Highlights challenges and progress in railway infrastructure (e.g., DFCs, freight speed).

• GS Paper 3 – Science and Technology:
  • Role of KAVACH system and emphasis on R&D for modernization and safety.
• GS Paper 2 – Governance:
  • Importance of parliamentary committee recommendations in policymaking and implementation.

UPSC CURRENT AFFAIRS – 20 December 2024 Facts for Prelims (FFP)

S.A.F.E Accommodation Report

Source:  News on Air

Context: NITI Aayog released its report on Site Adjacent Factory Employee (S.A.F.E.) Accommodation, emphasizing the importance of secure and affordable housing for industrial workers to boost India’s manufacturing sector.

• Report highlights the need for secure, affordable, and flexible housing near industrial sites to support India’s manufacturing growth.

About NITI Aayog:

• Established in: 2015, replacing the Planning Commission.
• Aim: To foster cooperative federalism and catalyze economic development with a bottom-up approach.
• Headed by: Prime Minister of India as the Chairperson.
• Members:
  • Vice-Chairperson nominated by the Prime Minister.
  • Chief Ministers of all states and UTs.
  • Lieutenant Governors of Union Territories.
  • Ex-Officio Members: Up to four members from the Union Council of Ministers are nominated by the PM.
  • Chief Executive Officer: Appointed by Prime-minister for a fixed tenure, in rank of Secretary to Government of India.
• Functions:
  • Policy formulation and strategic planning.
  • Promoting cooperative federalism.
  • Monitoring and evaluating government programs.
  • Facilitating investments and fostering innovation.
  • Advocating sustainable development and inclusion.

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India’s First Fully Solar-Powered Border Village

Source:  News on Air

 Context: Masali village in Gujarat’s Banaskantha district has become India’s first fully solar-powered border village under the PM Suryaghar Yojana.

About Masali Village:

• Location: Banaskantha district, Gujarat, 40 km from the Pakistan border.
• Solarisation Scheme: Solar rooftops installed on 119 houses under the PM Suryaghar Yojana, generating over 225 kilowatts of electricity.
• Significance:
  • First solar-powered border village in India.
  • Promotes renewable energy and self-sufficiency in energy needs.
  • Part of the Border Development Project to solarize 11 villages in Vav taluka and six in Suigam taluka.
  • Boosts energy security in remote, strategic border areas.

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Yuga Yugeen Bharat National Museum

Source:  PIB

 Context: The Indian Ministry of Culture, in collaboration with France Museums Développement, is set to establish the Yuga Yugeen Bharat National Museum as part of the Central Vista Redevelopment Project.

 About Yuga Yugeen Bharat National Museum:

• Origin: Announced by the Prime Minister at the International Museum Expo in May 2023.
• What it is: A national museum to celebrate India’s unbroken civilizational history, emphasizing inclusivity and community narratives.
• Aim: To serve as a global cultural landmark combining India’s heritage with contemporary narratives, bridging past, present, and future.
• Ministry: Ministry of Culture.
• Features:
  • Largest museum in the world, spanning across the North and South Blocks in New Delhi.
  • Themes: Adaptive reuse of heritage buildings, celebrating India’s democracy, diversity, and cultural heritage.
  • Collaboration with France for expertise in museum design and management, inspired by projects like the Louvre.
  • Focus on inclusivity and community-centric narratives.

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H5N1 Avian Flu

Source:  DTE

 Context: California has declared a state of emergency due to the widespread outbreak of the H5N1 avian flu, significantly impacting its dairy industry and resulting in human infections.

About H5N1 Bird Flu:

• What it is: A highly pathogenic strain of avian influenza caused by the influenza A(H5N1) virus, affecting birds and occasionally humans.
• Types: Includes subtypes like A(H5N1) and A(H7N9), based on proteins on the virus surface.
• Symptoms:
  • Mild: Pink eye, cough, sore throat, fatigue.
  • Severe Fever, shortness of breath, nausea, diarrhea, and respiratory complications.
• Spread: Humans contract it through contact with infected animal fluids (saliva, feces, milk). Rarely spreads human-to-human.
• Zoonotic nature: It is zoonotic in nature can jump from animals to humans but is not easily transmissible between humans.
• Treatment:
  • Antiviral medications like oseltamivir (Tamiflu).
  • Supportive care for respiratory symptoms.
  • Preventive measures include avoiding contact with infected animals and proper cooking of poultry products.

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GLP-1 receptor agonists

Source:  IE

 Context: The WHO has endorsed GLP-1 receptor agonists, a new class of drugs for managing obesity, marking a shift in global health strategies to combat the growing obesity epidemic.

About GLP-1 Receptor Agonists:

• What it is: A class of medicines that mimic the Glucagon-Like Peptide-1 (GLP-1) hormone, which regulates appetite and blood sugar levels.
• Uses:
  • Effective in treating obesity by reducing appetite and promoting weight loss.
  • Initially developed for type 2 diabetes management.
  • Drugs like semaglutide (Ozempic, Wegovy) and tirzepatide have shown up to 25% body weight reduction in trials.
• Significance:
  • Addresses a global obesity pandemic, affecting nearly 1 in 8 people worldwide.
  • Reduces risk factors associated with non-communicable diseases like cardiovascular diseases and diabetes.
  • Holds transformative potential for both individual health outcomes and global healthcare costs, estimated to reach $3 trillion by 2030.

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Never Events

Source:  TH

Context: “Never events” are serious and largely preventable healthcare incidents that should not occur if proper safety protocols are followed.

About Never Events:

• What it is: Serious, preventable incidents in healthcare that result in severe consequences, such as wrong-site surgeries or medication errors.
• Coined in: Introduced in 2002 by the National Quality Forum (NQF), USA, and adopted in other nations like the U.K. and Canada.
• Significance:
  • Enhances focus on implementing stringent safety protocols.
  • Promotes accountability in healthcare systems.
  • Reduces patient harm and medical negligence cases.

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Coconut Oil

Source:  BS

 Context: The Supreme Court of India ruling stated that coconut oil in small bottles is to be taxed as edible oil (5% GST) unless explicitly labeled and marketed as hair oil, which would attract an 18% GST.

About Coconut Oil Tax Dispute:

• Case Background:
  • The dispute centred on whether coconut oil, packaged in quantities from 5 ml to 2 litres, should be taxed as edible oil or hair oil under GST and the Central Excise Tariff Act, 1985.
  • The Revenue Department argued for higher taxation (18%) by categorizing it as hair oil.
• GST Issue:
  • Edible oil is taxed at 5% under GST, while hair oil attracts an 18% GST rate.
  • Classification confusion arose for small-sized coconut oil packages with dual-use potential.
• Supreme Court Judgment:
  • Coconut oil not explicitly marketed as hair oil is classified under edible oil and taxed at 5%.
  • Packaging size (small or large) alone cannot determine classification. Clear labelling is crucial for classification as hair oil.
  • Aligns with Harmonized System of Nomenclature (HSN) for global consistency.

• Facts:
  • The coconut palm is a remarkable and versatile crop found in tropical regions across the globe.
  • Kerala state in India is a leading producer of coconuts, coconut oil and their products.
  • World ranking in coconut production: Indonesia > Philippines > India > Brazil.

NOTE: UPSC tends to pick themes from these topics. Remember the data about coconuts and coconut oil, the ranking, and the GST rate specifically.

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IRIS² Space Programme

Source:  The Guardian

 Context: The EU has launched an ambitious IRIS² space programme with a constellation of 290 satellites to rival Elon Musk’s Starlink.

About IRIS²:

• Nations involved: European Union member states through the European Space Agency (ESA).
• Launched in: Announced and initiated in 2024.
• Aim:
  • To provide secure, resilient, and uninterrupted connectivity for governmental and commercial purposes.
  • To strengthen European autonomy and competitiveness in space technology.
• Significance:
  • Strategic Asset: Bolsters EU sovereignty in space technology.
  • Supports Security: Provides resilience against cyber and communication disruptions.
  • Commercial Boost: Delivers high-end connectivity services to businesses.
  • Complementary Programme: Adds to existing EU initiatives like Copernicus (Earth observation) and Galileo (satellite navigation).

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UPSC CURRENT AFFAIRS – 20 December 2024 Mapping:

Libya

Source:  TH

 Context: Sixteen Indian workers employed at Libya Cement Company in Benghazi, Libya, have alleged being held in “prison-like conditions” since protesting against contractual violations.

About Libya:

• Location: Situated in North Africa, bordered by the Mediterranean Sea to the north.
• Capital: Tripoli.
• Border Nations: Egypt (east), Sudan (southeast), Chad (south), Niger (southwest), Algeria (west), and Tunisia (northwest).
• Geographic Features:
  • Mountains: Nafusa Mountains and Jebel Akhdar are prominent.
  • Desert: Majority of Libya is covered by the Libyan Desert (part of the Sahara Desert).
  • Rivers & Lakes: Libya lacks perennial rivers; the Great Man-Made River (artificial water project) is significant.
  • Coastline: Over 1,770 km along the Mediterranean Sea, making it a key geographical location for trade.

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Daily Current Affairs + PIB Summary 20 Dec 2024

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