INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) KEY (06/09/2024)

INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY

 
 
 
Exclusive for Subscribers Daily: Fiscal Dilemma  and Swachh Bharat Mission for the UPSC Exam? Why are topics like Loss and Damage Fund (LDF) and Maternal Mortality important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for September 06, 2024

 

🚨 UPSC EXAM NOTES presents the July edition of our comprehensive monthly guide. Access it  to enhance your preparation. We value your input - share your thoughts and recommendations in the comments section or via email at Support@upscexamnotes.com 🚨

Critical Topics and Their Significance for the UPSC CSE Examination on September 06, 2024

Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students

 

What is vertical fiscal imbalance?

For Preliminary Examination: Current events of national and international importance

For Mains Examination: GS III - Indian Economy

 

Context:

The role of the 16th Finance Commission should be to eliminate vertical fiscal imbalance in federal relations. What should it do when revenues are concentrated with the Union government, and the States are burdened with expenditure responsibilities?

Read about:

What is a Fiscal dilemma?

What is fiscal deficit?

 

Key takeaways:

The financial dynamics between the Union government and States in India are imbalanced, similar to many other federal systems. According to the 15th Finance Commission, while States account for 61% of revenue expenditure, they only generate 38% of revenue. This means that States largely depend on financial transfers from the Union government to meet their spending needs, leading to what is termed Vertical Fiscal Imbalance (VFI), where the States' expenditure responsibilities exceed their revenue-raising powers.

Why Reducing VFI is Important

  • The Indian Constitution outlines separate financial responsibilities for the Union and States. On the revenue side, taxes like Personal Income Tax and Corporation Tax are more efficiently collected by the Union, whereas on the expenditure side, local governments are better suited to deliver public goods and services. This imbalance in revenue collection and expenditure creates a VFI that requires attention.
  • The 15th Finance Commission observed that India's VFI is larger compared to many other federations, and this gap widened during crises like the COVID-19 pandemic, when States’ spending exceeded their revenue.
  • The Finance Commission addresses VFI by focusing on two key issues. The first is determining how the Union government should distribute its tax revenue among the States.
  • These transfers are a portion of the "Net Proceeds" (gross tax revenue minus surcharges, cesses, and collection costs). The second issue concerns how these funds are divided among individual States. VFI mainly emerges as part of the first issue.
  • In addition to tax devolution, the Finance Commission also recommends grants to States in need, as per Article 275 of the Constitution, though these grants are usually temporary and for specific purposes.
  • The Union government also provides significant funding under Article 282 through centrally sponsored and central sector schemes, but these are often tied to specific conditions, unlike the unconditional tax devolution.

Calculating VFI in India

To estimate VFI, we measure the combined Own Revenue Receipts (ORR) and tax devolution from the Union to the States against their Own Revenue Expenditure (ORE). If this ratio is below 1, it indicates that States' revenues, even with Union transfers, are insufficient to cover their expenditures. The deficit in this ratio serves as a proxy for VFI after tax devolution.

To eliminate VFI, tax devolution would need to be increased. Between 2015-16 and 2022-23, the average tax devolution to States should have been 48.94% to achieve fiscal balance, but the 14th and 15th Finance Commissions recommended only 42% and 41%, respectively.

Increasing Tax Devolution

  • Many States argue that tax devolution should be set at 50% by the 16th Finance Commission, especially considering that cesses and surcharges are excluded from the net proceeds, thereby reducing the actual amount distributed.
  • Based on our analysis, if current State expenditure levels are maintained, the tax devolution needs to increase to around 49% to eliminate VFI. This increase would provide States with more flexible funding to address their local needs and improve the efficiency of public spending, ultimately fostering a more balanced system of fiscal federalism
 
Follow Up Question
 
1.With reference to the Indian economy, consider the following statements: (UPSC 2022)
1. An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Which of the above statements are correct?
A. 1 and 2 only     
B. 2 and 3 only       
C. 1 and 3 only       
D. 1, 2 and 3
 
Answer (C)
 
  • An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee.

    • True. NEER is a weighted average of a country's currency in relation to a basket of other major currencies. An increase in NEER suggests that the domestic currency (rupee) is appreciating against the basket of currencies.
  • An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.

    • False. REER is the NEER adjusted for inflation differentials between a country and its trading partners. If REER increases, it usually indicates that the domestic currency is overvalued, leading to a potential loss of trade competitiveness because domestic goods become relatively more expensive than foreign goods.
  • An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

    • True. When domestic inflation rises more quickly than in other countries, REER increases (because it adjusts for inflation), while NEER may remain stable. This creates a divergence between NEER and REER.

Thus, the correct statements are 1 and 3

 
 
 
For Preliminary Examination: Current events of national and international importance
 
For Mains Examination: GS II - Indian Polity & Governance
 
 
Context:
 
Access to toilets and better sanitation services under the government’s Swachh Bharat Mission may have averted around 60,000 to 70,000 infant deaths annually between 2014 and 2020, a study published in the journal Nature has found.
 
 
Read about:
 
What is the Swachh Bharat Mission (SBM)?
 
What are the various components of SBM?
 
 
Key takeaways:
 
  • The Swachh Bharat Mission-Grameen, launched on October 2, 2014, resulted in the construction of over 11 crore household toilets by 2020, with more than six lakh villages declared Open Defecation Free (ODF), according to official data. Similarly, under the Swachh Bharat Mission-Urban, over 63 lakh individual household toilets and 6.36 lakh community public toilets were constructed.
  • A study revealed a significant decrease in infant mortality due to increased access to sanitation. Districts with even 30% toilet coverage saw a notable reduction in infant mortality, preventing around 60,000-70,000 deaths annually.
  • In 2012, the infant mortality rate was 40 deaths per 1,000 live births per district, which dropped to about 33 in 2016, and further declined below 30 by 2019. The under-five mortality rate also fell, from around 44 per 1,000 live births in 2012 to below 30 in 2019.
  • The Swachh Bharat Mission (SBM), initiated by the Prime Minister on October 2, 2014, aimed to provide universal sanitation coverage and eliminate open defecation across the country. The government boosted toilet infrastructure by offering financial support for the construction of household and community toilets, especially for slum and migrant populations.
  • The second phase of SBM, launched in 2020 and continuing until 2025, focuses on maintaining the progress made in phase one and advancing the management of liquid and solid waste through technological innovation and private sector involvement
 
 More information
 

The Infant Mortality Rate (IMR) is a key health indicator that measures the number of deaths of infants under one year of age per 1,000 live births in a given year or population. It is used to assess the overall health of a population and the effectiveness of healthcare systems, particularly in areas such as maternal and child health, sanitation, and disease prevention.

A lower IMR typically indicates better healthcare, nutrition, and living conditions, while a higher IMR suggests challenges in these areas

 

Follow Up Question

As per the Solid Waste Management Rules, 2016 in India, which one of the following statements is correct? (UPSC CSE 2019)

(a) Waste generator has to segregate waste into five categories.

(b) The Rules are applicable to notified urban local bodies, notified towns and all industrial townships only

(c) The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.

(d) It is mandatory on the part of the waste generator that the waste generated in one district cannot be moved to another district.

 

(c) The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.

Under the Solid Waste Management Rules, 2016, detailed guidelines are provided for identifying suitable locations for landfills and waste processing facilities, ensuring environmental and social safeguards. The other options are not accurate representations of the rules

 

Mains

How could social influence and persuasion contribute to the success of Swachh Bharat Abhiyan? (UPSC CSE 2016)

 

Loss and Damage Fund (LDF)

For Preliminary Examination: Loss and Damage Fund (LDF), Climate Change
 
For Mains Examination: GS III - Environment & Ecology
 
Context:
 
In the wake of the devastating landslides that recently struck Kerala’s Wayanad district, a crucial conversation has emerged around whether subnational entities can seek compensation through the United Nations Framework Convention on Climate Change (UNFCCC)’s Loss and Damage Fund (LDF). While this demand is justifiable, accessing climate funds is far more complex than it appears
 
Read about:
 
What is Loss and Damage Fund (LDF)?
 
India's role in Loss and Damage Fund
 
Key takeaways:
 

The Loss and Damage Fund is a financial mechanism established to help developing countries cope with the adverse impacts of climate change. It was created as part of international climate negotiations, specifically under the United Nations Framework Convention on Climate Change (UNFCCC), to provide compensation for losses and damages caused by climate-related disasters such as floods, storms, sea-level rise, and other extreme events.

The fund aims to address the consequences that are beyond the capacity of countries to adapt to, especially in vulnerable nations that contribute the least to global emissions but are disproportionately affected by climate change. The Loss and Damage Fund became a key outcome of the COP27 climate conference in 2022, where developed countries agreed to contribute financial resources to support this effort.

This fund acknowledges that even with mitigation and adaptation efforts, certain damages from climate change are inevitable and need to be addressed through financial aid.

 

More Information

 

India has played a significant role in advocating for the establishment of the Loss and Damage Fund to address the impacts of climate change on vulnerable nations. As a developing country and a key player in global climate negotiations, India has consistently highlighted the need for a fair and equitable approach to climate finance, with an emphasis on the principle of "common but differentiated responsibilities" (CBDR). This principle underscores that while all countries must act on climate change, developed nations, which have historically contributed the most to global emissions, should take greater responsibility in financing climate-related losses and damages.

Key aspects of India's role in the Loss and Damage Fund:

  • Advocacy for Climate Justice: India has been vocal about the importance of climate justice, emphasizing that developing countries, which are the least responsible for global warming, should not bear the brunt of its impacts. India has consistently pushed for financial assistance to help vulnerable countries cope with irreversible losses from climate disasters.

  • Supporting the Vulnerable: Although India itself faces significant climate risks, it has also supported the cause of smaller, more vulnerable nations, such as small island developing states (SIDS) and least developed countries (LDCs), that are at the frontline of climate change impacts. At COP27, India aligned with other developing nations in advocating for the creation of a Loss and Damage Fund to address the needs of these countries.

  • Balanced Approach: While supporting the Loss and Damage Fund, India has also stressed the need for a balanced approach in climate negotiations, which should not detract from the importance of mitigation and adaptation efforts. India emphasizes that the Loss and Damage mechanism should complement, rather than replace, efforts to reduce emissions and invest in adaptation strategies.

  • Focus on Implementation: After the Loss and Damage Fund was agreed upon at COP27 in 2022, India has continued to focus on the implementation phase. India calls for transparency and clarity in how the fund will be structured, governed, and financed, with a clear distinction between contributions from developed countries and developing nations

 

 Follow Up Question

1.Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)? (2021)

2.Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)

 

Law Commission

For Preliminary Examination: Law Commission, Finance Commission

For Mains Examination: GS II - Indian Polity & Governance.

 

Context:

The Union government has notified the constitution of the 23rd Law Commission of India with effect from September 1. The commission, which was notified on September 2, will have a three-year term. The tenure of the previous Law Commission chaired by former Karnataka High Court Chief Justice Ritu Raj Awasthi ended on August 31.

 

Read about:
 
Law Commission & Significance
 
Evolution of Law Commission
 
 
Key takeaways:
 
  • The Law Commission is an advisory body that is not established by any parliamentary law but is constituted by the Union Ministry of Law and Justice through a gazette notification. Its role is to assist the government in reviewing the functioning of laws, suggest the repeal of outdated legislation, and offer recommendations on issues referred to it by the government.
  • The commission is typically led by a retired Supreme Court or High Court judge, with legal scholars serving as members. Current judges may also be appointed, as stated in the notification for the new panel.
  • Since Independence, 22 Law Commissions have been appointed, submitting a total of 289 reports to the government. While the government is not required to implement the recommendations, many have led to significant laws, such as the Criminal Procedure Code, 1973, and the Right of Children to Free and Compulsory Education Act, 2009.
  • Following recommendations from the 20th Law Commission, the government initiated the process of repealing over 1,500 outdated central laws
  • The notification issued by the Law Ministry’s Legal Affairs Department on September 2 states that the panel will include a full-time chairperson, four full-time members (including a member-secretary), up to five part-time members, and the secretaries of the Legal Affairs and Legislative departments as ex officio members.
  • The commission’s tenure will last until August 31, 2027. The chairperson and full-time members can be serving judges from the Supreme Court or High Courts, or other experts chosen by the government.
  • This was also mentioned in the notifications for the 2020 (22nd) and 2015 (21st) commissions, which were chaired by Justice Awasthi and former Supreme Court judge Justice B S Chauhan, respectively.
  • The chairperson and members of the 23rd Law Commission have yet to be appointed, with the Appointments Committee of the Cabinet, led by the Prime Minister, making the final decision. The 22nd Law Commission members were appointed in November 2022, marking the start of their work.
  • If a serving judge is appointed, they serve either until retirement or the end of the commission’s term, whichever is earlier, and receive no extra pay beyond their judicial salary.
  • In the case of "other" appointees, the chairperson receives a monthly salary of Rs. 2.50 lakh, while a member earns Rs. 2.25 lakh. The member-secretary must be an officer of the Indian Legal Service at the Secretary level
  • The terms of reference for the 23rd Law Commission are largely similar to those of recent commissions. The first three key tasks include: identifying outdated or unnecessary laws that can be repealed; developing a Standard Operating Procedure (SoP) for regularly reviewing existing laws, including simplifying their language and processes; and identifying laws that are out of sync with current economic needs and require amendments.
  • Like the 22nd and 21st commissions, the 23rd Law Commission is also tasked with reviewing laws in light of the Directive Principles of State Policy, proposing reforms and suggesting new legislation to implement these principles and achieve the goals outlined in the Constitution's Preamble.
  • The Prime Minister's recent call for a "secular civil code" aligns with the Directive Principle that urges the state to work towards a uniform civil code across India. The 22nd Law Commission also examined this issue, but its findings are not publicly known, as its chairperson took office as a Lokpal member in March before the report could be submitted.
  • Additionally, the 23rd Law Commission is charged with reviewing laws impacting the poor, conducting post-enactment audits of socio-economic legislation, and improving judicial administration to better address contemporary needs
 
Follow Up Question
 

1.Which of the following statements about the Law Commission of India is/are correct?

  1. The Law Commission is a statutory body created by an Act of Parliament.
  2. The commission is responsible for reviewing and recommending changes to outdated or obsolete laws.
  3. The recommendations made by the Law Commission are mandatory for the government to implement.
  4. The Law Commission is typically chaired by a retired judge of the Supreme Court or High Court.

Select the correct answer using the codes given below:

(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 3, and 4 only
(d) 1, 2, 3, and 4

Answer (b)
 
  • The Law Commission of India is not a statutory body created by an Act of Parliament; it is a non-statutory body constituted by the Ministry of Law and Justice through a gazette notification.
  • The commission does review and recommend changes to outdated or obsolete laws.
  • The recommendations of the Law Commission are advisory and not mandatory for the government to implement.
  • The Law Commission is typically chaired by a retired judge of the Supreme Court or High Court
 
 
 
For Preliminary Examination: Internet of Things (IoT), Artificial Intelligence(AI)
 
For Mains Examination: GS II - Governance on Artificial Intelligence
 
 
Context:
 
The United States, the European Union, and the United Kingdom (UK) are expected to sign the Council of Europe’s convention on artificial intelligence (AI), the first “legally binding” international treaty on the use of the revolutionary new technology
 
Read about:
 
What do you understand by ‘legally binding’?
 
What is Artificial Intelligence?
 
What is the Bletchley Declaration?
 
Key takeaways:
 
— The treaty, which emphasizes human rights in regulating both public and private-sector AI systems, is considered the first significant agreement among major players in AI development. This comes in response to concerns that varying regulations proposed by individual countries could obstruct the advancement of AI technology.
— Officially titled the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy, and the Rule of Law, the treaty was opened for signing at a Council of Europe Ministers of Justice conference held in Vilnius, Lithuania, on Thursday.
— Drafted over the past two years by more than 50 countries, the treaty adopts a risk-based approach to the design, development, utilization, and decommissioning of AI systems.
— Signatories are responsible for addressing any harmful or discriminatory outcomes of AI systems. They must ensure that AI outputs respect equality and privacy rights and that victims of AI-related rights violations have access to legal remedies.
— The Framework Convention has some exceptions, including areas related to national security and research and development. It mandates that parties manage risks associated with AI activities conducted by both public and private entities throughout the AI lifecycle.
— This treaty is introduced alongside various new regulations and agreements on AI, such as the G7 AI pact (October 2023), Europe’s AI Act, and the Bletchley Declaration signed by 28 countries (November 2023).
— Although the treaty is described as “legally binding,” there are concerns about its lack of provisions for punitive measures such as penalties or fines.
— As the private sector continues to innovate rapidly, global lawmakers are working to establish legislative boundaries for AI to mitigate its potential risks. Recently, the IT Ministry in India issued an advisory requiring generative AI companies to seek government approval before deploying untested systems. However, after facing international criticism, the government withdrew this advisory and released a revised version without the approval requirement.
— Last year, the EU finalized its AI Act, which includes safeguards for AI use within the EU, specifically for law enforcement agencies, and allows consumers to file complaints against any perceived violations
 
 
Follow Up Question
With the present state of development, Artificial Intelligence can effectively do which of the following? ( UPSC 2020)
1. Bring down electricity consumption in industrial units
2. Create meaningful short stories and songs
3. Disease diagnosis
4. Text-to-Speech Conversion
5. Wireless transmission of electrical energy
Select the correct answer using the code given below:
A. 1, 2, 3, and 5 only
B. 1, 3, and 4 only
C. 2, 4, and 5 only
D. 1, 2, 3, 4 and 5
 
Answer (B)
 
  • Bring down electricity consumption in industrial units: AI can help optimize energy usage in industrial settings by analyzing data and suggesting improvements to reduce electricity consumption.

  • Create meaningful short stories and songs: While AI can generate text and music, the creativity and depth often required for truly meaningful stories and songs are still a challenge for AI to achieve effectively.

  • Disease diagnosis: AI has made significant advancements in diagnosing diseases by analyzing medical data and images, assisting doctors in providing accurate diagnoses.

  • Text-to-Speech Conversion: AI technology is well-developed in converting text to speech, used in various applications like virtual assistants and accessibility tools.

  • Wireless transmission of electrical energy: This is not currently within the scope of AI's capabilities. Wireless energy transmission is a separate field of research that does not directly involve AI

 
 
Subject and Subject Wise Notes for the Sunday Exam (Free)
 
Subject Topic Description
History Modern Indian History National Movements between 1919 to 1939
History  Modern Indian History Governor generals of India
History Modern Indian History Doctrine of Lapse
History Modern Indian History Religious reform Movements
 

 

UPSC EXAM NOTES will be conducting both Prelims and Mains exams every Sunday as part of the Integrated Mains and Prelims (IMPM) Program. This program provides a comprehensive approach to UPSC exam preparation, ensuring that candidates are well-prepared for both stages of the exam.

Program Highlights:

  • Daily Study Keys: Each day, we will provide keys that outline what to read, focusing on the most relevant topics and current affairs.
  • Subject Notes: In addition to daily keys, we will supply detailed subject notes to help you build a strong foundation in all necessary areas.
  • Sunday Exams: Every Sunday, a combined exam will be held, encompassing the daily keys' content and subject notes, along with a culmination of current affairs from various sources. These exams will cover both Prelims and Mains syllabi.
  • Format: Exams will be available in both online and offline formats to cater to different preferences and situations.

Duration: The IMPM plan is a one-year program, ensuring continuous and structured preparation over 12 months. With regular testing and consistent study guidance, this program is designed to maximize your chances of success in the UPSC exams

 
 
 
 
 
 
 

Share to Social