Yearning for Changes in Jammu & Kashmir
Paper: II
For Prelims:
For Mains: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Context of News:
- After the decision of the Government of India with regard to the abrogation of Articles 370 and 35A and the bifurcation of the state into two Union Territories, there’s an uneasy calm prevailing across the valley.
- The problem spill over across different section in health, education and even in availability of basic minimum required product of day to day life. However, there is yearning for changes in the valley right from political scenario to the education system and health prospects.
Prevailing Situation:
- School education has been on the doldrums ever since the descion to abrogate article 370.
- Such treatment of children is undoubtedly in violation of multiple laws and conventions. To begin with, all of them violate Article 14(4) of the International Convention on Civil & Political rights which states that “all proceedings against juveniles shall take into account their age and the desirability of promoting their rehabilitation.
- There is huge gap in the demand and supply of basic day to day required products.
- Health has been the major sector that has been impacted ,the situation has become all the more worst for injured stone palters.
What, youth of Jammu & Kashmir Needs now?
- Addressing the youth of J&K, should be effort to prevent a repeat of past instances of violence and stone-pelting. Youth of Jammu, Kashmir and Ladakh will now needs employment opportunities as after abrogation of article 370 more state-owned and private companies will be encouraged to set up shop, and vacant posts will be filled up.
- The Centre’s priority should be to ensure that government employees and the J&K Police get equal facilities as enjoyed by government employees and police of other states.
- Sport training and scientific education will help the youth of J&K to showcase their talent across the world so, government must ensure that government harness this opportunities to provide them a job opportunity for youths of Jammu & Kashmir.
Suggestive Measures:
- It is appropriate time to work on behind the curtains formula, like working on capacity building by taking all the concerned stakeholders of Jammu and Kashmir to expedite the process of development and streamlined it.
- Before jumping the barrel of Impact of Article abrogation of article 370, it is important to know the issue of Ladakh region as well.So, any policy regarding J&K should be based on the mutual acceptance of Ladakh people as well.
- Government of India should focus now, how to provide the basic necessary things in the valley as priority basis. Lack of the basic necessity product may lead to fuel anger in the people of J & K.
- Providing good quality health service amid such high security check and increasing protest should be the priority.
- School and colleges has been closed, even if they have been opened they are running out of the children due to fear factor of loss of life. Under no circumstances, children should be deprived of their right to education.
Conclusion:
- While there may be many in the Valley who will not immediately accept the change in their constitutional status, we hope their number will be significantly exceeded by those who are sick of the violence and disruption that has defined their life for over three decades.
- Engaging with them and giving them a safe space to express their desire for peace and prosperity is our primary mission in the Valley now. Post-relaxation of curbs, the government’s priorities will be development and employment generation, something jihad and azadi had little space for.
- There are lots of questions that must be in everyone’s mind right from politician to the responsible civic society member’s; who is responsible for the radicalization of Kashmiri youth, who will bear this burden and help them, heal? Who will pay the price for the consequences of this terrible oppression and violence on the children of Kashmir? Are we ever going to treat them as our own children? Especially in such fragile environment that remains to be seen.
Spilling over of Fiscal Crisis between center States
Paper: III
For Prelims: FRBM Act.
For Mains: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Context of News:
- In the wake of slowdown and various global shocks for economy around the world, central government of India is feeling the heat. The Centre has no money for a stimulus package. Only the states can find a way to get India out of the slowdown
- States, taken collectively, are the only hope. Despite loan waivers, they are in a better position to boost public spending. But that would require coordinated work between the Centre and the states.
FRBM Act:
- The Fiscal Responsibility and Budget Management Act, 2003 is an Act of the Parliament of India to institutionalize financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget and strengthen fiscal prudence.
- The objective of FRBM Act was to inculcate the habit of fiscal discipline in the governance structure of the country. It sets targets and suggests means of reducing fiscal and revenue deficits.
Current Situation Between center and States through Fiscal Angle:
- Centre’s tax revenues falling short of expectations:
- It has significantly lowered tax devolution to states in 2019-20, upsetting the latter’s budget equation. One of the reasons was, Centre had transferred a higher amount to the states in 2018-19.
- One among the reason was due to lower tax collections this year. This shortfall will have a bearing on states’ spending. They can either opt to borrow more to finance their expenditure, in which case their net borrowings will exceed that of the Centre, or they can cut back on spending, further aggravating the slowdown.
- GST shortfall collection and GST Compensation:
- Budget speech seems to suggest that shortfall in states’ GST collections will be compensated only to the extent of collections through the compensation cess, and no more. And with government accepting some of the recommendations of the 15th Finance Commission, the share of some southern states in the divisible tax pool has declined.
- Another source of contestation has been the issue of GST compensation. The Budget speech notes that, “hereinafter, transfers to the fund would be limited only to collection by way of GST compensation cess” — hinting at the possibility that states will be compensated only to the extent of collections through the compensation cess. This move, presumably because the Centre’s own finances are under pressure, will amount to the Centre reneging on its promise of protecting states revenue, and could be a justiciable matter.
- Use of population parameter for Devolution of Revenues:
- Another bone of contention has been the use of 2011 population estimates for estimating tax devolution. While the Finance Commission has chosen to minimize criticism by factoring in demographic performance, the share of many, mostly southern states such as Karnataka, Kerala, Telangana, and Andhra Pradesh, has fallen. This will further strain these states’ finances.
- The use of 2011 population figures has resulted in states with larger populations like Uttar Pradesh and Bihar getting larger shares, while smaller states with lower fertility rates (the number of children born to a woman in her life) have lost out.
Why Fiscal deficit worries?
Way Forward:
- It is often forgotten that fiscal policy in India is conducted at two levels. However, the focus tends to be on the Centre, ignoring the fact that the states collectively are now larger fiscal participants than the government of India. Taken collectively, states are a much better bet to nudge the country towards an economic recovery than pinning all hopes on the central government.
- Transfers and other public expenditure stimuli such as public works would involve substantial increases in revenue expenditure for which fiscal space is clearly available to the states due to the lower committed expenditure burden. There is also space to protect health and education expenditures at the sub-national level, which is the level at which these expenditures are incurred.
- From a macro-fiscal perspective, a general government view of the fiscal situation gives a bit more clarity about where fiscal space can be located to counter the slowdown. This would, of course, involve coordinated work by the Centre and state governments, which would, in turn, require both levels to rise above competitive politics in the national interest.