20 December 2024

• Economy: The RBI's annual Report on State Finances showed state Gross Fiscal Deficits are within 3 per cent of GSDP but populist schemes and off-budget borrowing remain risks.
• Railways: A Parliamentary Standing Committee found average freight train speed at 25.14 km/h over 11 years and R&D spending at only 39 per cent of the budgeted amount.
• Energy: Masali village in Gujarat became India's first fully solar-powered border village under PM Suryaghar Yojana.
• Health: WHO endorsed GLP-1 receptor agonists for obesity management. California declared an H5N1 emergency.

GS area: Economy, Polity

The RBI released its annual Report on State Finances: A Study of Budgets for 2024-25.

• Gross Fiscal Deficit (GFD): States contained GFD within 3 per cent of GSDP in 2022-23 and 2023-24. Budgeted at 3.2 per cent for 2024-25.
• Revenue Deficit: Limited to 0.2 per cent of GSDP in 2023-24.
• Capital Expenditure: Rose from 2.4 per cent of GSDP in 2021-22 to 3.1 per cent budgeted for 2024-25.
• Outstanding Liabilities: Declined from 31 per cent of GSDP (March 2021) to 28.5 per cent (March 2024).
• Risks identified:
  • Populist freebies: Free electricity, cash transfers to women (Maharashtra, Karnataka, Delhi), food subsidies.
  • Off-budget borrowing through state-owned entities that bypasses FRBM limits.
  • Delayed reforms in power sector (state electricity board losses).
  • High dependency on central grants.
• FRBM Act: The Fiscal Responsibility and Budget Management Act, 2003 and its state equivalents set deficit targets. States must keep GFD at or below 3 per cent of GSDP.

Static linkage: Economy (state finances, fiscal policy, FRBM).

GS area: Economy, Infrastructure

A Parliamentary Standing Committee on Railways released a critical report.

• Average freight speed (11 years): 25.14 km/h. This is among the slowest in the world for freight rail.
• Freight revenue 2023-24: 1,68,293 crore rupees. Target for 2024-25: 1,80,000 crore rupees.
• R&D budget 2024-25: 72.01 crore rupees. Actual spending in 2023-24: 28.34 crore rupees (only 39 per cent of budget utilised).
• Dedicated Freight Corridors (DFCs):
  • Eastern DFC (Ludhiana to Dankuni, 1,875 km): Fully commissioned as of December 2024.
  • Western DFC (Jawaharlal Nehru Port to Dadri, 1,504 km): A 102-km section remained pending, to be commissioned by December 2025.
• Significance: DFCs free mainline tracks for passenger trains and increase freight speed to over 60 km/h. The DFCCIL (Dedicated Freight Corridor Corporation of India Limited) manages the corridors.

Static linkage: Economy (infrastructure, railways, DFCCIL).

GS area: Governance, Economy

NITI Aayog released the "Site Adjacent Factory Employee" (S.A.F.E.) Accommodation report addressing the housing gap for industrial workers.

• Problem: Manufacturing clusters (particularly garment and electronics factories) often locate far from affordable housing, forcing long commutes or poor living conditions.
• S.A.F.E. model: Secure, affordable and flexible housing adjacent to industrial sites, built through public-private partnership.
• Objective: Attract and retain manufacturing workforce, particularly women workers in the garment and textile industries.
• Connection to PLI: India's Production Linked Incentive scheme targets manufacturing scale-up. Worker housing is a bottleneck.
• Precedents: Tamil Nadu Industrial Housing Boards, MEPZ (Madras Export Processing Zone) housing have partial examples.

Static linkage: Economy (manufacturing, PLI schemes, labour welfare), governance.

GS area: Energy, Geography

Masali village in Banaskantha district, Gujarat, became India's first fully solar-powered border village under PM Suryaghar Muft Bijli Yojana.

• Location: Banaskantha district, approximately 40 km from the India-Pakistan border.
• Scale: 119 households fitted with solar rooftop systems.
• Generation capacity: Over 225 kilowatts.
• Programme scope: 11 villages in Vav taluka and 6 in Suigam taluka of Banaskantha covered.
• PM Suryaghar Muft Bijli Yojana: Launched in February 2024. Aims to install rooftop solar on 1 crore households nationwide, providing up to 300 units of free electricity per month.
• Strategic significance: Solar-powered border villages reduce dependence on grid connectivity and are resilient to supply disruptions in remote areas.

Static linkage: Energy (solar, rural electrification, PM Suryaghar), geography (Gujarat-Pakistan border).

GS area: Health, Science and Technology

The World Health Organization endorsed GLP-1 receptor agonists for obesity management as part of updated clinical guidelines.

• Mechanism: GLP-1 (Glucagon-Like Peptide-1) is a gut hormone that regulates appetite and blood sugar. Receptor agonists mimic its action, slowing stomach emptying and reducing hunger signals.
• Key drugs: Semaglutide (Ozempic for diabetes, Wegovy for obesity), tirzepatide (Mounjaro). Both require weekly injections.
• Efficacy: Weight reduction of up to 25 per cent of body weight in trials.
• Global obesity context: About 1 in 8 people globally (over 1 billion) live with obesity.
• Access issue: These drugs cost thousands of dollars per month, making them inaccessible to most patients in low-income countries. WHO endorsement may pressure manufacturers to negotiate tiered pricing.
• India relevance: India has one of the world's largest populations with Type 2 diabetes and metabolic syndrome. Both conditions can benefit from GLP-1 agonists.

Static linkage: Health (obesity, non-communicable diseases, WHO guidelines).

GS area: Health, Environment

California declared a state of emergency due to an H5N1 avian influenza outbreak affecting dairy cows and farmworkers.

• Virus: Influenza A (H5N1). The H indicates haemagglutinin and N indicates neuraminidase surface proteins.
• Host expansion: H5N1 historically affected birds. Its spread to dairy cattle in the US from 2024 onwards was a new development.
• Human infections: Mostly mild (conjunctivitis, respiratory symptoms) from contact with infected animals. No confirmed human-to-human transmission as of December 2024.
• Pandemic risk: If H5N1 acquires efficient human-to-human transmission, it could cause a severe pandemic. Historical case fatality rate in humans is about 60 per cent (though likely inflated due to under-detection of mild cases).
• India preparedness: India controls H5N1 outbreaks in poultry through the National Action Plan for Highly Pathogenic Avian Influenza. Migratory birds are a significant vector.

Static linkage: Health (zoonotic diseases, avian flu, pandemic preparedness).

• Yuga Yugeen Bharat National Museum: Announced by PM Modi in May 2023. To be housed in the North and South Blocks of the Central Vista redevelopment in New Delhi. Designed as the world's largest museum, celebrating India's civilisational history. Developed in collaboration with France's Musées Développement under the Ministry of Culture.
• Libya: Indian Workers: Indian workers alleged "prison-like conditions" at the Libya Cement Company in Benghazi. Libya is bordered by the Mediterranean Sea (north), Egypt (east), Sudan and Chad (south), Niger, Algeria and Tunisia (west). Capital: Tripoli.