2023 08 05

Table of Contents:

GS Paper 2:

Money Bills and Financial Bills
Impact of Artcle 370 abrogation
The dire condition of Government Schools in Bihar

Content for Mains Enrichment

G20 EMPOWER Tech Equity Digital Inclusion Platform
G20 Principles for Financing Cities of Tomorrow

Facts for Prelims (FFP)

The Pharmacy (Amendment) Bill, 2023
Vivad se Vishwas 2.0
Maharatna and Navratna category
Restrictions on the import of electronic devices
Rajmargyatra
NIDHI program
Red Sanders

Mapping

Puri (Odisha)

Money Bills and Financial Bills

GS Paper 2

Syllabus: Parliamentary procedures

Source: IE

Context: Recently, Minister for Parliamentary Affairs clarified that The Digital Personal Data Protection (DPDP) Bill is a normal Bill and not a Money Bill. The article discusses the differences between Money Bills and Financial Bills, along with the court’s view on the issue

Money Bills and Financial Bills:

Any bill related to revenue or expenditure is a Financial Bill.

A Money Bill is a specific type of Finance Bill that deals only with matters specified under Article 110(1) and deals with taxes, borrowing, expenditure, etc. It can only be introduced in the Lok Sabha and must be certified by the Speaker.

All Money bills are Financial bills but all Financial bills are not Money bills

Recent controversies:


Controversy	Details
2017 Finance Act Amendments	The Constitution Bench of the Supreme Court struck down amendments made to the 2017 Finance Act, which was passed as a Money Bill. The amendments altered the functioning of various tribunals.
Question of Money Bill Classification	The Supreme Court referred the matter of whether the 2017 Finance Act amendments could have been passed as a Money Bill to a seven-judge bench, indicating uncertainty about their classification.
Doubts on Aadhaar Act Ruling	The Supreme Court has expressed doubts about the correctness of the 2018 verdict that upheld the Aadhaar Act as a Money Bill.

Preconditions for a Financial Bill to become a money bill

Introduction: Must be introduced only in the Lok Sabha and not in the Rajya Sabha, as per Article 117(1) of the Constitution.
President’s Recommendation: Can only be introduced on the President’s recommendation, as per Article 117(1) of the Constitution.

Financial Bills (I) VS Financial Bills (II) :

Financial Bill (I) encompasses matters both related to money bills and general legislation.

It is presented under Article 117 (1) of the Constitution
Similarities with money bills: It can only be introduced in the Lok Sabha and upon the President’s recommendation.
Dissimilarities: Unlike money bills, a Financial Bill (I) can be subject to amendments or rejection by the Rajya Sabha. In case of disagreement between the two Houses, a joint sitting can be convened by the President to resolve the deadlock.

Financial Bill (II) concerns provisions involving expenditure from the Consolidated Fund of India but does not cover the subjects outlined in Article 110.

Governed by Article 117 (3) of the Constitution, Financial Bill (II) follows the legislative procedure of ordinary bills.
It can be introduced in either House of Parliament, and while the President’s recommendation is not necessary for introduction, it becomes crucial during the consideration stage.
Without the President’s recommendation, neither House can pass the bill.

Comparison of Money Bills and Financial Bills:


Aspect	Money Bills	Financial Bills
Introduction	Can only be introduced in the Lok Sabha	Can be introduced in either the Lok Sabha or the Rajya Sabha.
President’s Recommendation	Must be introduced on the President’s recommendation.	President’s recommendation is necessary for Category I at the introduction stage and for Category II at the consideration stage.
Originating House	Must originate only in the Lok Sabha.	Category II can originate in either the Lok Sabha or the Rajya Sabha.
Rajya Sabha Involvement	Rajya Sabha’s involvement is limited; it can only provide recommendations. (Article 117)	Rajya Sabha can fully participate, including amendments and discussions.
Inclusion of RS Recommendations	Not mandatory for Money Bills to include Rajya Sabha’s recommendations.	Provision for Rajya Sabha’s recommendations to be included in Financial Bills.
Subjects Covered	Deals exclusively with matters listed in Article 110(1) of the Constitution.	Deals with matters beyond those listed in Article 110(1) and can include other financial provisions.
Certification	Certified by the Speaker as a Money Bill if it falls under Article 110(1).
Overriding Authority	Lok Sabha’s decision prevails in case of disagreements with the Rajya Sabha.	Requires agreement of both Houses for passage.
President’s Role	President’s recommendation is essential for the introduction	President’s recommendation is required if the Bill involves expenditure from the Consolidated Fund of India.

Insta Links:

What are money Bills?

Mains links:

How does a money bill differ from a financial Bill? Analyze whether the process of classifying a bill as a money bill needs to change. (250 words)

Categories05 August 2023, Today's Article Financial Bills (I), Financial Bills (II), Money Bills

Impact of Artcle 370 abrogation

GS Paper 2

Syllabus: Constitutional provisions

Source: IE, IE

Context: The article is in continuation of yesterday’s article (Constitutional Challenge to the 2019 Abrogation of Article 370)

Positive changes in the security situation in Jammu and Kashmir after the removal of Article 370:


Aspect	Changes and Examples
Decrease in Stone Pelting	Incidents reduced significantly; 618 in 2019 to 76 in 2021
Injuries to security forces dropped from 64 to 10
The decline in Terrorism Incidents	32% reduction in acts of terrorism since August 2019
Deaths of security forces decreased by 52%
Reduction of 14% in “admission of terrorists“
Enhanced OGW Arrests	Arrests of over-ground workers (OGWs) increased from 82 to 178
Disruption of militant support networks
Improved Law and Order	Only 20 law and order incidents were recorded in J&K in 2022
General improvement in the overall security environment
Deterrence of Infiltration	Fewer infiltrations and armed forces personnel were killed.

Negative changes in the security situation in Jammu and Kashmir:


Aspect	Changes and Examples
Targeted Killings	Increase in killings of civilians, particularly Kashmiri Hindus and outsiders
Over 50% of civilian deaths post-August 5, 2019, in the past eight months.
Low-Cost Drone Threat	Small weapons dropped by drones from across the border aid killings
Alleged ‘Part-Time’ Militants	Engagement of ‘part-time’ militants by handlers in Pakistan for attacks
Attacks on Hindu-Dominated Areas	Militants targeting Hindu-majority areas with IEDs
Erosion of Trust	Concerns about security and safety among locals and minorities
Fragile Security Successes	Security achievements overshadowed by persistent threats

Positive and Negative changes in J&K’s political landscape after the abrogation of Article 370:


Aspect	Positive Changes	Negative Changes
Local Governance	Establishment of Panchayati Raj institutions, District Development Council (DDC) elections held in all 20 districts in 2020.	Complaints of limited power and influence for elected DDC members, delays in disbursing honorariums; Delays in holding Assembly elections
Political Alliances	Formation of People’s Alliance for Gupkar Declaration (PAGD) with National Conference and PDP uniting.	Fragmentation of political parties, leadership changes, desertion of senior leaders from established parties.
Administrative Redistricting	Delimitation Commission redraws Assembly constituencies increases representation, and introduces reserved seats.	Concerns about the accuracy and fairness of the delimitation process, and potential gerrymandering.
New Political Outfits	The emergence of J&K Apni Party and Jammu and Kashmir Progressive Azad Democratic Party (JKPADP).	The splintering of traditional political parties created a more diverse political landscape.
ST List Expansion Legislation	Proposal to include new groups in the state’s ST list, aiming for broader representation.	Protests and demonstrations by existing ST groups fearing dilution of political empowerment
Transparency and Participation	Increased engagement of local communities in governance through Panchayati Raj.	Concerns about the effectiveness and autonomy of local bodies under the new governance structure.

Categories05 August 2023, Today's Article Article 370, Jammu and Kashmir

The dire condition of Government Schools in Bihar

GS Paper 2

Syllabus: Government policies and intervention; Education

Source: DTE

Context: A recent report (titled “Where Are the Kids?”) by Jan Jagran Shakti Sanghathan (JJSS) highlights the dire condition of government schools in Bihar, raising concerns about their potential replacement by cheap tuition centres.

Key issues highlighted:

None of the surveyed schools met [RTE Act](https://www.insightsonindia.com/social-justice/issues-related-to-education-sector/right-to-education/#:~:text=Right%20to%20Education%20Act%20(RTE,get%20a%20quality%20elementary%20education.) norms
School attendance is alarmingly low, with only about 20% of pupils present, mainly from disadvantaged backgrounds.
Acute teacher shortages, failing to meet RTE norms on pupil-teacher ratios
The Direct Benefit Transfer (DBT) scheme for textbooks and uniforms poses challenges for poor families, often leading to a lack of essential resources
Students in Classes 1-5 had forgotten basic skills by the time schools reopened after the COVID-19 lockdown.

Recommendations:

Compliance with RTE Act, providing daily eggs in midday meals
Prohibiting tuition during school hours
Economist Jean Dreze, who guided the survey, emphasizes understanding low attendance rates and focusing on children’s needs beyond schools

Recent initiatives by Government in the Education sector:


Accomplishments	Description
New Education Policy (NEP) and Reforms	NEP 2020 proposes transformative changes in education, emphasizing experiential learning and breaking the barriers between arts and sciences. It envisions a learner-centric approach that promotes critical thinking and inquiry-based education.
National Curriculum Framework	The NCF recommends board exams twice a year, a semester system for Class 12, and more flexibility in subject combinations to reduce rigid distinctions between arts, commerce, and science in classes 11 and 12.
School Textbooks	NCERT revises school textbooks in three rounds, ensuring updated and relevant content for students.
Foreign Universities	UGC is finalizing regulations to allow foreign universities to establish campuses in India, enabling them to determine admission processes, fee structures, and faculty recruitment.
New Institutions, Enhanced Capacity	Several new educational institutions like IITs, IIMs, IIITs, and AIIMS have been established in the last nine years, increasing educational capacity. EWS quota has been implemented to enhance access to education.
Female Representation	The introduction of supernumerary seats for women at IITs and NITs increased female representation from 9% in 2017 to 20% in 2022 at IITs over five years. AISHE data shows reduced gender disparity in higher education enrolment since 2014.
Other Changes and Initiatives	The no-detention policy under RTE Act was scrapped in 2019. The National Testing Agency conducts entrance tests to higher education. The Medical Commission of India was replaced with National Medical Commission to streamline medical education. Higher Education Financing Agency (HEFA) was set up to fund infrastructure development in educational institutions.

Insta Links:

Prelims Link: UPSC 2018

Consider the following statements:

1.As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualification laid down by the concerned State Council of Teacher Education.

2.As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in a accordance with the National Council of Teacher Education guidelines.

3.In India, more than 90% of teacher education institutions are directly under the State Governments.

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(d) 3 only

Solution: B

Mains Link:

The quality of higher education in India requires major improvements to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of technical and higher education in the country? Discuss. (UPSC 2015)

Categories05 August 2023, Today's Article Bihar, EDUCATION

G20 EMPOWER Tech Equity Digital Inclusion Platform

Content for Mains Enrichment

Source: ET

Union Minister for Women and Child Development, Smriti Irani, will launch the G20 EMPOWER Tech Equity Digital Inclusion Platform at the G-20 EMPOWER summit in Gandhinagar.

Launched by: The platform is launched by G20 Alliance for the Empowerment and Progression of Women’s Economic Representation (G20 EMPOWER) with the Ministry’s support.

Aim: The platform aims to bridge the gender digital divide by providing women and girls with digital skills to thrive in the technology-driven global landscape.

The platform is available in over 120 languages and offers digital skilling courses for women across G20 nations.

Usage: The example can be used to highlight government initiatives for bridging the gender digital divide across G20 countries.

Categories05 August 2023, Today's Article G20 EMPOWER Tech Equity Digital Inclusion Platform

G20 Principles for Financing Cities of Tomorrow

Source: OECD

The G20 member countries have endorsed the “G20 Principles for Financing Cities of Tomorrow: Inclusive, Resilient and Sustainable.” These voluntary principles aim to enhance the efficient use of financial resources for inclusive and sustainable urban development.

Suggested measures for cities:


Measures	Examples
Revenue Augmentation Through Own Source RevenuesOSR	Introducing a local sales tax for goods and services. Implementing a business license fee for enterprises. Collecting parking fees in commercial areas.
Market-based Solutions (e.g., PPPs)	Partnering with a private company to build a new city hospital. Contracting a private firm for waste management services.
Leverage Land as a Financing Solution	Developing a commercial complex near a new metro station. Selling development rights to raise funds for public infrastructure.
Enhancing City Creditworthiness	Implementing efficient budget allocation and financial reporting. Establishing a stable and transparent revenue collection system. Maintaining a strong credit history for past infrastructure projects.
Technology Interventions	Implementing a Geographic Information System (GIS) for property tax assessment. Utilizing a SCADA system for real-time monitoring of water supply networks.
City-to-City Exchanges and International Cooperation	Sharing urban planning strategies with a sister city to improve infrastructure.
Adopt Nature-based Solutions (NbS)	Planting trees and creating green spaces in urban areas. Establishing urban gardens to promote biodiversity. Implementing rainwater harvesting systems to manage water resources.
Integrated Approach for Risk Reduction and Disaster Resilience	Designing infrastructure with earthquake-resistant features. Constructing flood barriers and improving drainage systems. Developing emergency response plans for natural disasters.
Enabling Spatial Equity	Building universally accessible parks and playgrounds. Initiating affordable housing projects for low-income families. Improving public transportation options in underserved neighbourhoods.
	– Establishing community centres that offer healthcare and education services.

Usage: Few points can be taken and used for answering questions related to urban development and financing

Categories05 August 2023, Today's Article

The Pharmacy (Amendment) Bill, 2023

Facts for Prelims (FFP)

Source: TH

Context: The Pharmacy (Amendment) Bill, 2023 has been introduced in Lok Sabha to insert a new section 32 C into the Jammu and Kashmir Pharmacy Act, 2011, which pertains to persons registered or qualified under this Act.

The bill will extend the Pharmacy Act, 1948 to the UT of J&K.

About Pharmacy Act 1948

The Pharmacy Act of 1948 outlines regulations for the pharmacy profession.
It requires the formation of the Pharmacy Council of India and State Pharmacy Councils. Practising pharmacy in India necessitates registration under this act
Drugs and Cosmetics Act, 1940, also demand the presence of a registered pharmacist with a license for overseeing drug dispensing.
Breaching these regulations leads to penalties and imprisonment

However, the recent Jan Vishwas Bill 2023 proposes the decriminalisation of sections related to penalties and imprisonment of the Pharmacy Act, 1948, and Drugs & Cosmetics Act, 1940.

Categories05 August 2023, Today's Article The Pharmacy (Amendment) Bill 2023

Vivad se Vishwas 2.0

Source: LM

Context: The “Vivad se Vishwas 2.0″ scheme has been launched by the Department of Expenditure, Ministry of Finance, with the aim of resolving contractual disputes involving the government and government undertakings.

What are contractual disputes?

Contractual disputes are disagreements or conflicts that arise between parties involved in a contractual agreement. These disputes occur when one or more parties believe that the terms, conditions, or obligations outlined in the contract have been violated, misunderstood, or not properly fulfilled.

How will the scheme help resolve disputes?

The scheme offers a standardized voluntary (one-time settlement) approach with graded terms based on the level of dispute pendency.

Applicability:

For all those disputes in which the Court award (passed up to 30th April 2023), contractors will be offered settlement amounts up to 85% of the net amount awarded or upheld by the court.will be
For arbitral orders (passed up to 31st Jan 2023), the settlement amount offered will be up to 65% of the net amount awarded.

Implementation: By utilizing the government e-marketplace (GeM) platform for processing claims.

Significance: The scheme streamlines the resolution process and aims to expedite the settlement of contractual disputes.

Previously, the Vivad se Vishwas scheme was announced in Union Budget 2020-21 for reducing litigations in the direct taxes payments. Vivad se Vishwas I was launched to provide relief to MSMEs during the COVID-19 period

Categories05 August 2023, Today's Article Vivad se Vishwas 2.0

Maharatna and Navratna category

Source: ET

Context: The Government of India has elevated Oil India Limited to the ‘Maharatna’ category, granting the company enhanced decision-making powers in financial matters.

Oil India has become the 13th Maharatna Central Public Sector Enterprise (CPSE) in India. Having achieved Navaratna status in 2010, Oil India’s recent acquisition of Numaligarh Refinery Ltd. further solidified its position as an integrated energy company.

Also, the government elevated ONGC Videsh Ltd (OVL) to Navratna CPSE. OVL will be the 14th Navratna amongst the CPSEs.

Criteria for qualification:

Criteria for Maharatna Status	Criteria for Navratna Status	Criteria for Miniratna Status
1. Shall have Navratna status	1. Miniratna Category – I or Schedule ‘A’ CPSEs	Miniratna Category-I status:- Made profit in the last 3 years continuously Pre-tax profit is Rs.30 crores or more in at least 1 of the 3 years Having Positive net worth status
2. Listed on the Indian stock exchange with prescribed public shareholding	2. ‘Excellent’ or ‘Very Good’ rating in 3 of last 5 years	Miniratna Category-II status: Made profit for the last 3 years continuously Having positive net worth status. Not defaulted in the repayment of loans/interest payment on any loans due to the Government. Not dependent upon budgetary support or Government guarantees.
3. Average annual turnover > Rs. 25,000 crore (last 3 years)	3. Composite score of 60 or above in the following 6 performance indicators including Net Profit to Net Worth, Cost of Services, Earning per share, etc.
4. Average annual net worth > Rs. 15,000 crores (last 3 years)
5. Average annual net profit after tax > Rs. 5,000 crores (last 3 years)
6. Significant global presence/international operations

05 August 2023, Today's Article Maharatna chttps://www.insightsonindia.com/category/today-article/ategory, Navratna

Rajmargyatra

Source: PIB

Context: The [National Highways Authority of India](https://www.insightsonindia.com/2023/06/06/nhai-sustainability-report-for-fy-2021-22/#:~:text=NHAI%20(est.,by%20the%20Government%20of%20India.) (NHAI) has introduced the ‘Rajmargyatra’ app, a user-friendly mobile application aimed at providing comprehensive information about Indian National Highways and facilitating a smoother journey.

Benefits:

The app serves as a unified platform for travellers and offers real-time weather updates, broadcast notifications, toll plaza details, and other vital services for a safe and enjoyable highway experience.
It includes a hassle-free complaint resolution system, allowing users to report issues with attached media for clarity and track the progress of their complaints.
The app integrates with bank portals for convenient FASTag services, including recharges and monthly passes.
It offers features such as over-speeding notifications and voice assistance to encourage responsible driving behaviour.

About NHAI:

The NHAI (National Highways Authority of India) (statutory; est. 1995; under Ministry of Road Transport and Highways (MoRTH)) is an independent organization with primary responsibility to oversee the management of more than 50,000 km of the total 132,499 km National Highways in India

Categories05 August 2023, Today's Article National Highways Authority of India, Rajmargyatra

Restrictions on the import of electronic devices

Source: IE

Context: The Indian government has introduced immediate restrictions on the imports of personal computers, laptops, and other electronic devices to promote domestic manufacturing.

Why restriction?

India is obligated to its commitment to zero-duty imports under WTO’s Information Technology Agreement (ITA 1). Due to this, the government was unable to check the import of electronic goods, thus impacting its domestic manufacturing. Hence it imposed import restriction

What do the new rules say?

Directorate General of Foreign Trade (DGFT) (Ministry of Commerce) issued a notification saying that any import of laptops, tablets, etc., under Harmonized System of Nomenclature (HSN) 8471 shall be ‘restricted’ and would be allowed against a valid license from DGFT from ‘trusted’ sources.
Exemption for imports under Baggage Rules, R&D, testing, benchmarking, repair, etc.

Aim: It will likely aim at boosting local production and reducing dependence on imports from China, which accounted for over 75% of India’s laptop and personal computer imports in the previous fiscal year.

Significance:

The decision aligns with the production-linked incentive (PLI) scheme for IT hardware and seeks to encourage companies to manufacture within India.
Protection of Critical Information Infrastructure and its security concerns.
Achievement of the Make-in-India vision

Impact: The restrictions are expected to impact companies like Apple, Samsung, and Acer, potentially leading to increased local manufacturing and potentially affecting consumer prices based on how licensing norms are enforced.

About ITA 1 and HSN:

The Technology Agreement, known as ITA 1, was established in 1996 with 29 members, including India in 1997. This agreement mandates the removal of customs duties on specific IT products.

These products, like laptops and computers, are identified by codes called HSN codes, which are part of a global classification system for taxation. HSN stands for Harmonized System of Nomenclature, and it’s managed by the World Customs Organization (WCO).

Categories05 August 2023, Today's Article Directorate General of Foreign Trade

NIDHI program

Source: PIB

Context: The NIDHI Program, initiated by the Department of Science & Technology (DST) in 2016, aims to foster innovation and startup culture in India.

About NIDHI Programme:


Aspect	Details
National Initiative For Developing And Harnessing Innovations (NIDHI) is an end-to-end plan for startups to double the number of incubators and startups in the duration of five years.
Nodal Department	Department of Science & Technology (DST)
Launched in	2016
Objectives	1) Promote S&T-based entrepreneurship and startup ecosystem across the country 2) Nurture start-ups through scouting, supporting, and scaling innovations
Key Components of NIDHI	· NIDHI-Entrepreneur in Residence (EIR): Inspires graduating students to pursue entrepreneurship through fellowships · NIDHI-Promotion and Acceleration of Young and Aspiring Technology Entrepreneurs (PRAYAS): Supports innovators and startups from Idea to Prototype stage · NIDHI-Inclusive-Technology Business Incubator (iTBI): Expands incubation programs to various geographies and genders · NIDHI-Technology Business Incubator (TBI): Supports and nurtures knowledge-driven innovative start-ups · NIDHI-Seed Support Program (SSP): Provides early-stage funding to promising start-ups · NIDHI-Center of Excellence (CoE): Creates a world-class facility to help startups go global · NIDHI-Accelerator: Accelerates startups through focused interventions

Categories05 August 2023, Today's Article NIDHI program

Red Sanders

Context: Recent amendments by DGFT have established that Tamil Nadu (TN) can export up to 900 MT of artificially propagated red sanders annually, while wild specimens of red sanders have a zero export quota.

DGFT has issued orders under Foreign Trade (Development & Regulation) Act, 1992 and the Foreign Trade Policy 2023.

Foreign trade policy prohibits the import of red sanders, but it places restrictions on its export. In 2019, DGFT had previously revised its export policy to allow the export of red sanders in log form and roots, but only if it originates exclusively from privately cultivated land, including patta land.

About DGFT:

This Directorate (HQ: New Delhi; Ministry of Commerce) is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports. The DGFT also issues scrips/authorization to exporters and monitors their corresponding obligations through a network of 24 regional offices.

About Red Sanders

Red sanders, classified as endangered by the IUCN, are native to a specific region within the Eastern Ghats and are known for their unique flora. These trees have a slow growth rate, taking 25 to 40 years to mature, and they display remarkable resistance to droughts.

Categories05 August 2023, Today's Article DGFT, Red Sanders

Puri (Odisha)

Mapping

Source: TH

The Jagannath Temple Management Committee has recommended allowing the Archaeological Survey of India (ASI) to inspect the Ratna Bhandar (treasury) of the 12th century Jagannath Temple in Puri during the 2024 rath yatra.

This decision holds significance due to pressure on the Odisha government to open the treasury, believed to hold valuable jewellery and stones.

The Jagannath Temple in Puri is located on the eastern coast of Odisha. It is a significant Hindu temple devoted to Jagannath, a manifestation of Vishnu. The temple’s construction was initiated by King Indradyumna of Avanti in the Kalinga Architecture style and completed in 1161 CE.

Categories05 August 2023, Today's Article Odisha, Puri