UPSC CURRENT AFFAIRS – 26 December 2024

UPSC CURRENT AFFAIRS – 26 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 2 : (UPSC CURRENT AFFAIRS – 26 December  2024)

1. Welfare Scheme Debate

Content for Mains Enrichment (CME):

1. Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24

Facts for Prelims (FFP):

1. Rooppur Nuclear Power Plant

2. Free Movement Regime

3. Real Effective Exchange Rate (REER)

4. Pandit Madan Mohan Malviya

5. Employees Provident Fund Organisation

Mapping:

1. Lesotho

UPSC CURRENT AFFAIRS – 26 December 2024

GS Paper 2 :

Welfare Scheme Debate

Syllabus: Governance

Source:  TH

Context: Welfare schemes and direct cash transfers now define India’s socio-political landscape but raise concerns about fiscal sustainability and development impact.

Rise in Benefit Schemes: 2024 Examples

• ‘Mukhyamantri Mahila Samman Yojana’ (Delhi): ₹2,100 monthly cash transfer to women by AAP to support economic independence.
• ‘Kalaignar Magalir Urimai Thogai’ (Tamil Nadu): ₹1,000 monthly aid for women to strengthen household financial security.
• ‘Ladli Behna Yojana’ (Madhya Pradesh): ₹1,250 cash aid to women, credited for ruling party’s electoral success.
• ‘Gruha Lakshmi Scheme’ (Karnataka): ₹2,000 monthly cash transfer aimed at empowering women.
• Maharashtra’s ‘Ladki Bahin Scheme’: Cash support for women to ensure their socio-economic empowerment.

What Are Welfare Schemes?

• Monetary Welfare: Direct cash transfers such as pensions, unemployment benefits, and aid for women (e.g., PM-KISAN).
• Developmental Welfare: Initiatives like education (Sarva Shiksha Abhiyan), healthcare (Ayushman Bharat), and food security (PDS).
• Employment Schemes: Programs like MGNREGA providing job opportunities to rural populations.
• Subsidy-Based Welfare: Fertilizer, LPG, and electricity subsidies aimed at reducing financial burdens.
• Social Infrastructure Support: Investments in health, education, housing, and digital access.

Consequences of Monetary Welfare on Indian Society:

• Women Empowerment: Provides economic independence and decision-making power in patriarchal societies.
• Poverty Alleviation: Direct cash helps vulnerable populations meet basic needs, reducing poverty.
• Improved Education and Health: Better access to nutrition and school attendance among children.
• Dependence on State Aid: Encourages reliance on welfare instead of self-sustained development.
• Distorted Electoral Incentives: Politicians prioritize short-term populist measures over long-term growth policies.

Limitations of Cash Transfer Welfare:

• Inflationary Impact: Cash transfers can lead to inflation without boosting productivity.
• Exclusion Errors: Many deserving beneficiaries may be left out due to administrative inefficiencies.
• Limited Long-Term Benefits: Does not address structural issues like unemployment or skill gaps.
• Fiscal Stress: Over-reliance on cash transfers drains public finances, reducing funds for capital projects.
• Political Misuse: Often used as electoral bait, diluting focus on sustainable development.

Way Ahead:

• Focus on Skill Development: Prioritize education and skill-building to create self-reliant individuals.
• Targeted Welfare: Implement well-researched, targeted aid to avoid misuse and inefficiency.
• Enhance Infrastructure: Invest in long-term assets like healthcare, education, and digital access.
• Public Awareness: Educate citizens on the fiscal impacts and limitations of unsustainable freebies.
• Strengthen Monitoring Mechanisms: Use technology to monitor welfare distribution and ensure transparency.

Conclusion:

Welfare schemes, especially monetary ones, play a pivotal role in addressing immediate socio-economic challenges. However, balancing short-term relief with sustainable, long-term development is essential to ensure fiscal prudence and equitable growth.

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UPSC CURRENT AFFAIRS – 26 December 2024 Content for Mains Enrichment (CME)

Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24

Context: The Ministry of Statistics and Programme Implementation released the results of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24, highlighting substantial growth in establishments, employment, and productivity in the unincorporated non-agricultural sector.

Key data from ASUSE 2023-24:

Relevance in UPSC Exam Syllabus:

• GS Paper 3: Indian Economy
  • Employment Generation: Highlights the unincorporated sector’s contribution to employment.
  • Economic Growth: Insights into GVA growth and digital penetration.
  • MSMEs: Data supports topics related to MSME development and government schemes.
• GS Paper 2: Governance and Social Justice
  • Women Empowerment: Increase in female entrepreneurship.
  • Digital India: Rising internet penetration aligns with government initiatives.

UPSC CURRENT AFFAIRS – 26 December 2024 Facts for Prelims (FFP)

Rooppur Nuclear Power Plant

Source:  TH

Context: The Rooppur Nuclear Power Plant in Bangladesh, a landmark project built with Russian collaboration under Rosatom, has recently faced allegations of irregularities.

About Rooppur Nuclear Power Plant:

• Location: Situated in Rooppur, Ishwardi Upazila, Pabna District.
• Built by: Constructed by Rosatom, Russia’s state nuclear corporation.
• River bank: Located along the Padma River.
• Features:
  • Total capacity: 2.4 GWe.
  • Comprises two units of VVER-1200 reactors.
  • Expected to become operational by 2025, making it Bangladesh’s first nuclear power plant.

Insta links:

Free Movement Regime

Source:  TH

 Context: Months after suspending the Free Movement Regime (FMR) along the Myanmar border, the Union Home Ministry introduced new protocols to regulate movement within 10 km of the unfenced border.

About Free Movement Regime (FMR):

• What it is: FMR allows residents within a specified radius on either side of the India-Myanmar border to move freely without visas for familial, cultural, and economic purposes.
• Nations involved: India and Myanmar.
• Law governing: Established in 1968.
  • Regulated under bilateral agreements and administrative protocols between the two nations.
• Features:
  • Territorial Limit: Initially 40 km, reduced to 16 km in 2004, and now proposed at 10 km.
  • Border Pass System: Residents receive a pass for a maximum stay of seven days in the neighbouring country, monitored by Assam Rifles and state authorities.
  • Regulated Entry Points: 43 designated entry and exit points, with biometric verification and health checks mandatory.
• Indian States Involved (Border Length):
  • Arunachal Pradesh: 520 km.
  • Nagaland: 215 km.
  • Manipur: 398 km.
  • Mizoram: 510 km.

Insta links:

Real Effective Exchange Rate (REER)

Source:  IE

Context: The real effective exchange rate (REER) index of the rupee touched a record 108.14 in November, strengthening by 4.5 per cent during this calendar year, according to the latest RBI data.

About Real Effective Exchange Rate (REER):

• What it is: REER is a weighted average of a nation’s currency value against the currencies of its trading partners, adjusted for inflation.
• Factors determining REER:
  • Nominal Exchange Rates: Bilateral currency values.
  • Inflation Differentials: Variances in inflation between a country and its trading partners.
  • Trade Weights: Relative importance of each trading partner in the home country’s trade.
• How to calculate REER:
  • Average bilateral exchange rates are weighted by the trade significance of each partner.
  • Adjust for inflation to convert the nominal effective exchange rate (NEER) to REER.
  • Formula:

• What REER indicates in the economy:
  • Increase in REER: Indicates currency overvaluation, making exports costlier and imports cheaper, reducing trade competitiveness.
  • Decrease in REER: Suggests currency undervaluation, improving export competitiveness and raising import costs.

Insta links:

Pandit Madan Mohan Malviya

Source:  News on Air

 Context: Prime Minister paid tribute to educationist and social reformer Pandit Madan Mohan Malviya on his birth anniversary.

About Pandit Madan Mohan Malaviya:

• Birth: Born on December 25, 1861, in Allahabad, Uttar Pradesh.
• Education: Studied at Muir Central College, Allahabad, graduating in 1884.
• Profession: Began as a teacher, later practiced law at Allahabad High Court, and transitioned to politics and social reform.
• Contributions in Freedom Movement:
  • President of INC: Presided over four sessions of the Indian National Congress (1909 – Lahore, 1913 – Delhi, 1919 – Amritsar, and 1932 – Calcutta).
  • Played a pivotal role in Civil Disobedience and Non-Cooperation Movements led by Mahatma Gandhi.
  • Coined the slogan ‘Satyamev Jayate’ in the INC session of 1918.

• Pen Name:
• Wrote under the pen name ‘Makarand’, focusing on nationalist issues.
• The pen name ‘Mahamana’ was bestowed by Mahatma Gandhi for his leadership and reformist zeal.
• Major Reforms and Advocacy:
• Abolition of Indentured Labor: Advocated for ending the exploitative system of Indian labourers in colonies.
• Free and Compulsory Education: Pushed for primary education reforms in the Imperial Legislative Council (1909–1920).
• Religious Tolerance: Championed secularism and opposed the imposition of taxes on religious pilgrimages.

• Literature and Media:
  • Founded newspapers such as The Leader, Abhyudaya, and Maryada.
  • Chaired the Hindustan Times board (1924–1946), promoting nationalist journalism.
• Educational Contributions: Established Banaras Hindu University (BHU) in 1916 and served as Vice-Chancellor (1919–1938).
• Organizations Associated With:
  • Co-founder of Hindu Mahasabha (1906).
  • Played a role in founding Scout and Guide in India.

Insta links:

Employees Provident Fund Organisation

Source:  TH

Context: The Employees’ Provident Fund Organisation (EPFO) achieved a significant milestone with a net addition of 13.41 lakh members in October 2024.

About Employees’ Provident Fund Organisation (EPFO):

• Established in: 1952 under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
• Administering Ministry: Ministry of Labour and Employment.
• Aim: To ensure social security for the organized sector workforce through provident fund, pension, and insurance schemes.
• Powers and Functions:
  • Manages three schemes:
    • Employees’ Provident Fund Scheme (1952): Offers accumulation plus interest on retirement or death, with partial withdrawal options.
    • Employees’ Pension Scheme (1995): Provides monthly pension for retirement, disability, and survivors.
    • Employees’ Deposit Linked Insurance Scheme (1976): Offers life insurance benefits up to ₹6 lakh in case of the employee’s death.
  • Administers funds and contributions across 122 offices nationwide.
  • Ensures compliance with the Employees’ Provident Fund (EPF) Act and facilitates housing schemes and other benefits.

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UPSC CURRENT AFFAIRS – 26 December 2024 Mapping:

Lesotho

Source:  ANI

Context: India has sent a consignment of 1,000 metric tonnes of rice to Lesotho to assist in addressing the food security and nutritional needs of its people.

About Lesotho:

• Capital: Maseru is the capital and largest city of Lesotho.
• Location: Lesotho is a landlocked country in Southern Africa.
  • Completely surrounded by South Africa, making it the largest sovereign enclave globally.
• Geographical Features:
  • It is situated in the Maloti Mountains and is nicknamed “The Kingdom in the Sky” due to its high-altitude terrain.
  • Lesotho boasts the highest peak in Southern Africa, Thabana Ntlenyana, standing at 3,482 meters.
  • The country is traversed by rivers such as the Orange River and Caledon River, which are vital for agriculture and hydropower.

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