Front Page / NATIONAL [The Hindu]
[1]. India to attend Lahore meet on Indus Waters Treaty
[2]. ₹70,000 crore in black money detected
[3]. NGT bans camping activities within 100 m of Ganga in Uttarakhand
[4]. Half of India-Bangladesh border fenced
Editorial/OPINION [The Hindu]
[1]. Campaigning on a budget
[2]. The right to choice
Economy
[1]. ‘Public procurement needs to be opened up’
[2]. GST levy may go up to 40%, 4-slab structure to remain
Indian Express
[1]. GST and the litmus test of land
[2]. Hard cases and good law
[3]. The tribal versus development
Live Mint
[1]. The currency swap initiative’s GDP surprise
Front Page / NATIONAL
[1]. India to attend Lahore meet on Indus Waters Treaty:
Context
India accepts the invitation for Lahore meet
What has happened?
Signalling a major shift in its position on talks with Pakistan on the Indus Waters Treaty (IWT), India has accepted an invitation to attend a meeting of the Permanent Indus Commission (PIC) to be held in Lahore in March
• PIC implements the IWT
Read More: 10 things you need to know about IWT, IWT’s survival appears weak, Indian express article on IWT
Note: IWT had come under strain after the Uri attack. Voices were raised that India should renege from the treaty. World Bank is trying to mediate a solution to the dispute and the present round of talks at Lahore is a result of that only
Court of arbitration controversy
In November 2016, another controversy erupted over the World Bank decision to constitute a Court of Arbitration to look into complaints from Pakistan over India’s construction of Kishenganga and Ratleriver water projects.
• India said the World Bank decision was biased in Pakistan’s favour, threatening to “take steps” against it
• Resolution: Eventually the matter was resolved after it was taken up at the highest levels between the World Bank President Jim Yong Kim, who also spoke over the telephone to Mr. Jaitley and to his Pakistan counterpart Ishaq Dar. This was followed by visits to India and Pakistan by World Bank expert Ian Solomon and then Ms. Georgieva.
[2]. ₹70,000 crore in black money detected
Context
SC-appointed SIT: It will submit its sixth interim report to the apex court in April
Nothing relevant here.
Just give it a go through once
[3]. NGT bans camping activities within 100 m of Ganga in Uttarakhand
The Hindu
Context
The latest in the series of orders by NGT
What has happened?
The National Green Tribunal (NGT) has ordered a ban on camping activities within 100 m of the Ganga. A Bench headed by Chairperson Swatanter Kumar said the ban will be imposed from Kaudiyala to Rishikesh in Uttarakhand
Number of Beaches along Ganga: 33
Problems
Petition filed cited the waste disposal in the river and left behind glass & plastic bottles as the reason for environmental degradation
[4]. Half of India-Bangladesh border fenced
Context
BSF to go in for cameras and lasers on riverine stretches; aim is to curb infiltration and smuggling of cattle and currency
Shared border
Length of the shared border b/w India & Bangladesh = 4093 Km
• The border runs along West Bengal for 2,216.7 km, Assam 263 km, Meghalaya 443 km, Tripura 856 km and Mizoram 318 km.
Issue: Fencing of Indo-Bangla Border
Aim of fencing
The aim of the project is to curb infiltration and smuggling of cattle and fake Indian currency notes
Hurdle
Land acquisition has surfaced as a major hurdle in the fencing project
Backdrop
• Illegal migration: In the early 1980s thousands of Bangladeshis illegally moved to neighboring Indian states in search of land and employment. By 1982 the steady influx of Bangla speakers sparked a major ethnic backlash in the Indian state of Assam, leading to the slaughter of thousands of non-Assamese.
• Construction of a fence: In order to satisfy Assamese public opinion, the governments of Indira and Rajiv Gandhi promised to stem illegal immigration, and in order to do so began construction of a barbed-wire fencing along the Indo-Bangladeshi border in the area. In the mid- and late 1980s
• Phased construction: In order to prevent illegal immigration and other anti-national activities from across the border, the Government of India had sanctioned the construction of border roads and fencing in two phases
Read More: Read this article to find out more
Editorial/OPINION
[1]. Campaigning on a budget
Context
To keep election expenditure transparent and in check, the executive-legislature dynamic must be addressed
Issue: Political corruption
What is meant by political corruption?
All political corruption involves an unfair, and most often unlawful, use of public office to secure a private gain.
Political funding
It refers to a set of methods that a political party applies to raise money for campaign and routine activities
• It is not just limited to party funding and may encompass election expenditure of candidates at various tiers, federal, state and local
Findings by ADR
Through RTI, the Association for Democratic Reforms found that the,
• Total income of all political parties in India from 2004-05 to 2014-15 was ₹11,367.34 crore
• Income of political parties in the same period from unknown sources is 69%
• Income of national parties increased by 313% during the same period
• Income of national parties increased by 652%
• Average income of all the political parties in India 2004-05 to 2014-15 was just over ₹1,000 crore, and comes to about ₹2,000 crore at present annually. This is just about the budget of a modest university in India
Major chunk of political funding
Major part of political funding goes into election expenditure. Author has cited two examples to show the scale of election funding in India
Example: Consider that,
An elected MLA spends Rs 5 Crore for getting elected (Legal limit is Rs 28 Lakhs)
Total candidates = 4
Assumption = Losing candidates spend only half the amount of winning candidate
So, in this case,
Total election expenditure in a single constituency = 4*2.5 + 5 = Rs 15 Crore
Calculating for 4215 MLAs in India, the expense comes out to be = Rs 13000 Crore pa
A similar calculation has been done for Lok Sabha Elections where the,
Total expense comes out to be = Rs 3300 Crore
Impact of such high expenditure
• Preference to candidates who can bear the expense becomes the prime criteria for parties in selecting their candidates. Once such a candidates is elected, he has to return the favor in one way or another leading to a chain of corruption at the very onset of the process
• Merit becomes a secondary criteria
Solution
Author states that the key to regulating political funding is to
• Bring down the election expenditure. One of the many ways it can be done is by,
Simultaneous elections: Holding simultaneous elections to the Lok Sabha as well as the State Assemblies
Proper monitoring by election commission has also been helpful in checking the menace of illegal election expenditure
Way forward
Author states that there are many possible long-term and short-term solutions that can be and should be tried to get rid of the problem of illegal election expenditure like citizen activism
[2]. The right to choice
Context
The Medical Termination of Pregnancy (Amendment) Bill of 2014 relaxes the legal limit for abortion
Issue: Medical Termination of Pregnancy aka abortion
Why in news?
On 28th Feb 17, the Supreme Court declined a woman’s plea to abort her 26-week-old foetus detected with Down’s Syndrome
Why court refused?
The court refused permission for abortion, calling the foetus “a life”. It said the Medical Termination of Pregnancy Act of 1971 places a 20-week ceiling on termination of pregnancy. It further said that the foetus with Down’s syndrome, posed no danger to the woman’s life.
Why, the woman, wanted abortion?
The advocate fighting the woman’s case in SCargued that
• It was the woman’s constitutional right to terminate her pregnancy
• It was said that the congenital abnormality found in her foetus and the woman’s anguish about the future were the reasons for her decision
A different case
In a similar case in Jan 2017, SC had relaxed the 20 week limit to permit another woman to terminate her 24-week pregnancy.
• The foetus in that case was diagnosed with anencephaly — a congenital defect in which the baby is born without parts of the brain and skull.
• The court had said abortion was necessary to preserve the woman’s life.
Draft Medical Termination of Pregnancy (Amendment) Bill of 2014
Author states that if the above draft bill had been passed, the case cited here would not have gone to court at all.
Proposed amendments under the 2014 Bill
• Amendment in Section 3: The Bill amends Section 3 of the principle Act of 1971 to provide that “the length of pregnancy shall not apply” in a decision to abort a foetus diagnosed with “substantial foetal abnormalities as may be prescribed”
• Increase of legal limit of abortion from 20 to 24 weeks
• It allows a woman to take an independent decision in consultation with a registered health-care provider.
Why an amendment is necessary?
The 1971 MTP law currently in force has absurd provisions like,
• Harassment of rape victims: Even pregnant rape victims cannot abort after 20 weeks, compelling them to move court
• Flawed ceiling: 20 week ceiling is not correct as the conclusive determination of foetal abnormality is possible in most cases after the 20th week of gestational age
Gestational age
Gestational age is the common term used during pregnancy to describe how far along the pregnancy is. It is measured in weeks, from the first day of the woman’s last menstrual cycle to the current date. A normal pregnancy can range from 38 to 42 weeks.
ECONOMY
[1]. ‘Public procurement needs to be opened up’
Context
The purchases are estimated to be about 30% of the GDP
Commerce minister’s views
Public procurement in India should gradually be opened up in a fair manner to ensure greater competition, while privatization of public assets has to be done keeping in mind the country’s socio-economic needs and objectives
What is public procurement?
Procurement by government/its agencies for their own consumption and not for commercial resale
Current percentage of public procurement
Public procurement in India is estimated to be about 30% of the country’s GDP
Major sectors of public procurement:
• Defence
• Railways
• Telecom
CEA’s views
Arvind Subramanian said privatization per se will not lead to greater competition and referred to the case of Russia and China saying privatization there has led to oligarchy
• Litigious society: India is becoming a highly litigious society, in turn leading to a situation promoting decision-making by the judiciary, and the judiciary at times becoming more powerful than the executive and legislature
[2]. GST levy may go up to 40%, 4-slab structure to remain
Context
The GST levy may go up to 40% after the GST Council proposed raising the peak rate in the Bill to 20%, from the current 14%, to obviate the need for approaching Parliament for any change in rates in future
The 4-tier rate structure decided last year will stay the same.
Backdrop
• The Centre plans to introduce in Parliament the Central GST (CGST) Bill in the forthcoming session beginning March 9.
• After it is ratified, the states will introduce the State GST (SGST) Bill in their respective legislative Assemblies.
Indian Express
[1]. GST and the litmus test of land
Context
The Goods and Services Tax will be truly transformational when domains like real estate are brought in its ambit
What is author trying to convey via this article?
He is trying to make a case for the inclusion of Land and Real Estate (LARE) under the ambit of GST
Addressing the misconceptions
Author states that there are certain misconceptions when it comes to LARE wrt GST,
• Stamp duties will be brought under GST: Stamp duties are a big source of revenues for states and they worry that if LARE is brought under GST, their revenue source will also be taken away. This fear is unfounded. There is no such intention; stamp duties will remain untouched
• Taxing of agricultural land:There is no intention to bring transactions relating to land for agriculture into the GST
• Taxing low-cost housing: Author states that there prevails another misconception that low-cost housing will be taxed and be made unaffordable. Fear is unfounded as housing below a certain cost (or below a carpet area of 60 square m) will unambiguously not be subject to GST
• LARE prices will go up: Author points out that another misconception is that due to increase in tax burden, land prices would go up. The fear has no ground because the effective rates are not going to change as tax increase is only going to be at final stage and it will be offset by input tax credit
Present system
• Annual property tax: Presently, urban local bodies like municipalities etc collect annual property tax from land taken to be as a wealth source
• Stamp duty:When land or property is sold, there is a stamp duty levied by state governments to register the sale
Neither of these will be brought into the GST. So, how GST will be levied wrt LARE?
Service tax
GST can be levied as a service tax on the supply of land and real estate
Which service are we talking about here?
The service in question relates to that provided by
• Those who develop and construct commercial and residential property (the LARE service provider)
Works contract: This service can be provided either as a works contract when the buyer gets the LARE to build and develop the property; or
Readymade property:the service can be provided as the supply of an already constructed property (call it readymade property).
Present tax rate
• On works contract: Well above 12 per cent
• On readymade property (commercial or residential): No tax
Conclusion
The service offered in the works contracts is taxed more heavily than the same service offered in a readymade property.
Way forward
• To remove the distinction b/w works contract & readymade property
• Tax both of them at a standard rate and allow full input tax credits. Flow of credit will check the black money as every input transaction like sale of iron & steel and iron fittings etc will have to be accounted for (if not then the point where chain is broken can be identified)
Benefits of bringing 1stsale of land under GST
• Sale of land (for non-agricultural purposes) must be brought under GST. Only if the sale of land is taxed can there be input tax credit for this down the chain and only if there is an input tax credit, the entire transaction History can be traced back leading to elimination of black money
• Deter hoarding and encourage land development: Another advantage of imposing a GST on the first sale of land is that it will deter hoarding and encourage land development because when the latter happens, the GST can be claimed as a credit. In contrast, the land hoarder will bear the full burden of the GST.
Conclusion
Imposing a GST on the sale of land will be the big advance in striking at black money, complementing the other action described above to treat works contracts and ready-made properties similarly. These two actions will, respectively, bring land and real estate into the GST — which could then become a truly transformational GST
[2]. Hard cases and good law
Context
An apex court order has thrown light on appreciating mitigating evidence before sentencing death penalty
Bachan Singh judgement
Author states that SC under the Bachan Singh judgement (1980)laid down that a sentence of death can only be imposed by a court when the alternative of life imprisonment is unquestionably foreclosed
• SC further states that “great weight” be given to mitigating factors including the probability of reformation of the accused or the existence of extreme mental disturbance
Author’s contention
Author states that rather than following the precedent set by the above judgement, courts in India are accustomed to listing of factors like young age and the number of dependents
• The exercise to meet and gather all relevant information from the accused, his family and peers, or mental health and other experts (mitigating exercise), is rarely undertaken
New Directions
The court has given new directions, that
• Defence counsel hold regular meetings in privacy and present details of relevant mitigating circumstances through an affidavit
Give the rest of the article a go-through
[3]. The tribal versus development
Indian Express
Context
Chhattisgarh’s adivasis are seen as the main obstacle to huge private profits
Useful info extracted from the article
Affected by displacement
As per a 2004 report of the ministry of tribal affairs, Adivasis constitute only eight per cent of the entire population — however, when it comes to the population displaced by development projects, their numbers rise to 55 per cent.
Adivasis fought for their rights
Legislations like the Chota Nagpur Tenancy Act (of 1908) after the rebellion led by the legendary Birsa Munda can be cited as examples of when the adivasis compelled even the British to recognise their rights
Give the rest of the article a go-through once
Live Mint
[1]. The currency swap initiative’s GDP surprise
Context
The numbers could be revised lower as data from the informal sector is incorporated, but it is unlikely to change the underlying story.
Give the article a light read or you can leave it entirely as the relevant points have already been covered in 2nd Mar 2017 brief’s The Hindu article. Article dealt with the same issue
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