16 June 2023

• Polity: The 16th Finance Commission's mandate and the North-South fiscal equity debate were analysed as the new commission's appointment approached.
• Welfare: The Integrated Child Development Services scheme showed stunting declining from 38.4 per cent to 35.5 per cent between NFHS-4 and NFHS-5.
• Governance: Tamil Nadu became the ninth state to withdraw general consent for CBI investigations.
• Ports: India's major ports expanded capacity from 871 MMT in 2015 to 1,617 MMT in 2023.

GS area: Polity, Economy

India was preparing to constitute the 16th Finance Commission. The mandate will cover 2026-31.

• Constitutional basis: Article 280 of the Constitution mandates a Finance Commission every five years. It determines the vertical devolution (Centre to states ratio) and horizontal distribution (among states).
• Key controversy: The 15th Finance Commission used 2011 population census data instead of 1971 data. Southern states that successfully controlled population growth were penalised relative to northern states with larger populations.
• Cess and surcharge concern: States argued that the Centre increasingly funds its programmes through cesses and surcharges, which are not sharable with states. The devolution pool shrinks as a result.
• "Freebies" debate: The 16th FC is expected to examine whether state-level welfare schemes (described as "freebies" by critics) affect fiscal sustainability and how this should factor into horizontal distribution.
• Southern states' demand: Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Telangana argued that their revenue generation and population control should be rewarded, not penalised, in the devolution formula.

Static linkage: Polity (Finance Commission, federal finance); Indian economy.

GS area: Social Justice, Government Schemes

The Integrated Child Development Services scheme was reviewed against NFHS-5 data.

• ICDS basics: A Centrally Sponsored Scheme launched in 1975 to break the intergenerational cycle of malnutrition and poor health.
• Six services: Supplementary nutrition, preschool non-formal education, nutrition and health education for mothers, immunisation, health check-ups, referral services.
• Delivery mechanism: Anganwadi centres, staffed by Anganwadi workers and helpers.
• Progress: Stunting (low height for age) fell from 38.4 per cent to 35.5 per cent (NFHS-4 to NFHS-5). Wasting (low weight for height) from 21.0 per cent to 19.3 per cent.
• Remaining gap: India still has among the highest child malnutrition rates globally for an economy of its size. Anganwadi workers are underpaid and overworked. Urban-rural and state-level disparities are large.
• POSHAN Abhiyan: The National Nutrition Mission launched in 2018 sets targets for reducing stunting, wasting, and anaemia. It supplements ICDS with real-time monitoring.

Static linkage: Social justice; government schemes; health.

GS area: Polity, Governance

Tamil Nadu became the ninth state to withdraw general consent for Central Bureau of Investigation investigations.

• General consent: Under Section 6 of the Delhi Special Police Establishment Act, 1946, the CBI requires either case-by-case state consent or a standing general consent to investigate in a state. Most states have historically given general consent.
• Withdrawal means: The CBI cannot register any new case in that state without fresh state approval for each matter.
• Nine states that had withdrawn (as of June 2023): West Bengal, Rajasthan, Kerala, Mizoram, Punjab, Telangana, Jharkhand, Chhattisgarh, Meghalaya, and now Tamil Nadu.
• High Court override: A High Court can independently direct the CBI to investigate a case within a state that has withdrawn consent. The withdrawal applies to executive action, not judicial direction.

Static linkage: Polity (federalism, police powers); governance.

GS area: Economy (infrastructure), International Trade

India's major port sector reviewed progress against the Maritime India Vision 2030 targets.

• Capacity growth: Major port capacity rose from 871 million metric tonnes per annum in 2015 to 1,617 MMT in 2023.
• Logistics improvement: India moved from 44th to 22nd on the World Bank's Logistics Performance Index.
• Port efficiency: Average dwell time of cargo at Indian ports fell to approximately 3 days, compared to 7 days in the US and 10 in Germany.
• Turnaround time: 0.9 days, an improvement over the previous 3-plus days.
• Investment need: 1 lakh to 1.25 lakh crore rupees required for mega-port development.
• Key laws passed: Major Port Authorities Act 2021 (replaced the Major Port Trusts Act 1963), Marine Aids to Navigation Act 2021, Indian Vessels Act 2021.

Static linkage: Economy (infrastructure, trade); international trade.

• Wind energy: India ranks fourth globally in wind energy installed capacity. India has an onshore wind energy potential of 1,164 GW at 150-metre hub height (NIWE estimate). Target: 500 GW non-fossil capacity by 2030.
• Skill Impact Bond: India's first development impact bond for skills was reported. An impact bond pays investors based on verified social outcomes rather than inputs. This one targeted 18,000 trainees with 72 per cent women participation.
• Janjatiya Khel Mahotsav: 5,000 tribal athletes competed in this tribal sports event. Odisha won the overall championship.