Daily Editorial Analysis for 9th January 2020

Weathering the storm

Paper:  GS I & III

Topic: Conservation, Environmental Impact Assessment, Geographical phenomenon.

For Prelims: Statement on Climate of India during 2019.

For Mains: Climate emergency, disaster management, Changes in geographical phenomenon.

Why in News:  The Statement on Climate of India in 2019 notes that excessive heat, cold and rainfall killed 1,562 people during the year. 

Statement on Climate of India during 2019

The India Meteorological Department released its much-awaited report on India’s climate in 2019.

Finding of the report

• Average temperature over India during the year 2019 was above normal. During the year, annual mean surface air temperature, averaged over the country, was +0.36⁰C above (1981-2010 period) average.
• The year 2019 was the seventh warmest year on record since nation-wide records commenced in 1901. However, the warming during 2019 was substantially lower than the highest warming observed over India during 2016 (+0.71⁰C).
• The Global mean surface temperature anomaly during 2019 (January to October) was +1.1⁰C as per WMO provisional statement on the state of global climate.
• The pre-monsoon and monsoon seasons with anomaly of +0.39⁰C and +0.58⁰C respectively mainly contributed to this warming.
• The 2019 annual rainfall over the country as a whole was 109% of its Long Period Average (LPA) value for the period 1961-2010.
• The monsoon season (June-September) rainfall over the country as a whole was 110% of its LPA.
• The seasonal rainfall during the North-East monsoon season (October – December) over the NE Monsoon core region of the southern peninsula was 109% of its LPA.
• During 2019, 8 cyclonic storms formed over the Indian seas:
  • Out of these 8 systems, one system each formed during the winter (Cyclonic Storm “Pabuk”) and
  • Pre-monsoon season (Extremely Severe Cyclonic Storm (ESCS), “Fani”) over the Bay of Bengal.
  • During the post-monsoon season: The VSCS “Bulbul” which formed over the Bay of Bengal, skirted the West Bengal coast close to Sunderbans forest.
• Arabian Sea contributed 5 out of these 8 cyclones against the normal of 1 per year, which equals the previous record of 1902 for the highest frequency of cyclones over the Arabian Sea.
  • The monsoon season too witnessed 2 very severe cyclonic storms (VSCS) “Vayu” and “Hikka” over the Arabian Sea in the month of June and September respectively.
  • During the post-monsoon season: 3 systems formed over the Arabian Sea, the super cyclonic storm “Kyarr”, ESCS “Maha” and the CS “Pavan” did not have landfall over the Indian region.
• The country also experienced other high impact weather events like, extremely heavy rainfall, heat and cold waves, snowfall, thunderstorm, dust storm, lightning, floods etc.
  • Bihar was the most adversely affected state during the year which reported about 650 lives due to Heavy rain & floods, heat-wave, lightning, thunderstorm and hailstorm.
  • Heat-wave conditions that prevailed over the northeastern & central parts of the country during the period March to June claimed about 350 lives.
  • Lightning & Thunderstorm reportedly claimed over 380 lives from central, northeastern, north-western and peninsular parts of the country during pre-monsoon, monsoon & post-monsoon seasons.
  • Cold wave claimed 28 lives from different parts of Uttar Pradesh during the last week of December.

Analysis of the report

An India Meteorological Department (IMD) report, confirms what climate scientists have been claiming for more than half a decade extreme weather events have become par for the course in the country.

• The excessive heat, cold and rainfall killed 1,562 people during the year.
• Arabian Sea saw 400% more cyclones. 5 of the 8 cyclones 60 % of the total that affected India in 2019 were on the Arabian Sea. Normally, the sea on India’s west undergoes only one cyclone.
• In 2019, the monsoon season was the warmest in 118 years.
• Since 2000, India has recorded 11 years as its “warmest” years on record. During the last decade (2009-2019), three consecutive years were recorded as the warmest 2015, 2016 and 2017. The last two decades 2001-2010 and 2010-2019 have been recorded the warmest decades ever.
• This year, Kerala, southern Karnataka and Gujarat were heavily deficient till July. But within a few days in the last week of July, these states recorded surplus rainfall.
• For farmers: such vagaries mean disruptions in the entire cropping cycle.

What measures can be adopted?

• Intense dry spells, even droughts, were interspersed with floods in several parts of the country a phenomenon that policymakers will increasingly be called to factor while drawing up projects in areas as diverse as agriculture, urban planning, water resources and disaster management.
• The Ministry of Housing and Urban Affairs does have guidelines for climate-friendly construction. But planners in coastal cities and towns rarely pay heed to its provisions.
• Increasing their resilience calls for efficient rainwater storage and use.
• The changing dynamics of weather also demand cooperation between states that share a river basin.
  • This year, Maharashtra and Karnataka bickered over opening the gates of the Almatti dam on the Krishna. By the time the two states agreed over the amount of water to be discharged from the dam, the damage was already done.
  • It’s clear that dealing with exceptional weather will require interventions at the national, state and local levels.
  • The Statement on Climate of India 2019 drives home the urgency of such interventions.

Conclusion

• The IMD report should be seen in conjunction with long-term meteorological trends. The World Meteorological Organisation, for example, reckons that the decade starting 2011 remains on track to be the warmest on record.
• At the same time, data from the European Center for Medium-Range Forecast shows that the relative humidity in the mid-troposphere in the Subcontinent has increased by about 2% in the past four decades. Such warming has increased the capacity of oceans to form intense cyclonic disturbances.

Mains Question

India Climate 2019 report, Arabian Sea saw 400% more cyclones than usual. Critically evaluate the requirement of resilient climate policy in the current context.

Approach

Question Demand: Question demands to write about the climate disaster in various part of the country. What are the steps needed to improve and conserve the environment. Mention about initiatives taken by the government for reducing global warming.

Introduction: Mention the recent climate change impact through-out the world.

Body:

• Explain the importance of forest for conservation as well as for the economy.
• Issues in policy of the country that is less compatible with the environment conservation and disaster management.
• Various mandates of the international organization and countries in meeting the target to keep the rise in global temperature over pre-industrial times well below 2°C, and ideally at 1.5°C.

Conclusion: Suggest the steps that need to be adopted in the conservation and maintenance of forest and green cover to reduce the impact of climate emergency.

Voting at the GST Council

Paper: GS-III

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

For Prelims: Goods and Services Tax (GST) Council, First GST Council vote and voting rules of the Council.

For Mains: Key highlights/decisions of the 38^th meeting and the future Scope of the Council.

Why in news?

• The Goods and Services Tax (GST) Council voted for the first time in its 38th meetingheld on December 18, 2019. The proposal to have a higher single rate for lotteries went through by a majority, with 21 votes in favour.

GST Council and Voting:

• The GST Council is a federal body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
• With the precedent of voting now established, consensus at the Council could be challenged again in the future. The rules of voting in the GST Council are such that the odds are stacked in favour of the Centre in the normal course.
• However, in case of a vote, any disagreements within the ruling coalition at the Centre may bring its support below the three-fourths majority that is needed for the passage of a decision.

First GST Council vote:

• In the 38th meeting of the council, Kerala’s Finance Minister pushed for voting on the proposal for a uniform rate for lotteries.
• A total of 21 members of the GST Council voted in favour of a uniform rate; seven (including Kerala, Chhattisgarh, West Bengal, Madhya Pradesh, Maharashtra, and Puducherry) voted against; and three members abstained paving the way for a single 28% rate effective March 1.
• Currently, a GST rate of 12% is levied for state-run lotteries and 28% for state-authorized lotteries.
• After the meeting, Union Finance Minister, who heads the Council, said “every attempt was made to keep that set tradition (of consensus) alive”; however, the Council was reminded that the “rules allow and that tradition was not part of the rulebook”, and voting was held on the “request of one member”.
• Some members said that the voting was not a major development, since it was on the issue of a ‘sin good’ like lottery, and was mainly done on the insistence of one state.

GST Council voting rules:

• As per the Constitution One Hundred and First Amendment Act, 2016, in case of a voting, every decision of the GST Council has to be taken by a majority of not less than three-fourths of the weighted votes of the members present.
• The vote of the central government has a weightage of one-third of the total votes cast, and the votes of all the state governments taken together have a weightage of two-thirds of the total votes cast in that meeting.

Key highlights/decisions of the 38^th meeting:

1. Some Steps Against Tax Evasion:

• These included crucial ones on the finalization of the GST law as well as the rates for goods and services.
• 21 states voted in favour of the single rate of 28% on lotteries, while seven voted against, an official said. The GST Act had prescribed two rates, 12%, if the lotteries are sold within the same state, and 28%, if a state sells its lottery tickets outside its jurisdiction.
• For the success of GST, it’s important that the Centre and states work together and take decisions with consensus as they have been doing till now.

2. Revenue in focus:

• The council gave “necessary guidance” to officers for analysing the impact of tax exemptions and concessions, the tax base and compliance measures needed to keep pace with revenue needs.
• The officers’ committee, which made a presentation of GST data before the council, didn’t make any direct or indirect suggestions on tax rates.
• Maximizing GST revenue has been one of the focus areas for the government.
• The council, meanwhile, took certain steps against tax evasion. It slashed the input tax credit to 10% from 20% of eligible credit if invoices or debit notes were not reflected in filings. To check fake invoice, it allowed officers to take suitable action to block credits that they believed were fraudulently claimed.

3. Compensation for states:

• States raised the issue of a delay in the release of compensation that they were promised against any revenue loss from the implementation of GST, Some of them were apprehensive about the availability of funds to be distributed in the future.
• The Centre had released Rs 35,298 crore as compensation to states.

4. Changes in a few rates:

• The council decided to tax woven and non-woven bags at 18%, compared with 12% at present.
• It exempted from tax the upfront amount payable for long-term lease of industrial and financial infrastructure plots by any entity that is owned 20% or more by the Centre or state governments.
• The tax is levied on the face value of the lottery tickets, inclusive of the prize money to be distributed to the winners, margin of agents, retailers and distributors.
• State governments and the lottery industry had represented to the council on the issue and it had set up a group of ministers to examine it. The council, which had considered the issue in its July meeting, then referred it to the attorney general for his view. But, divergences continued among states, prompting the decision by vote.

Past record of the Council:

• As of now, out of the total 30 states and Union Territories (excluding Jammu & Kashmir), 20 are ruled by the Union Government or its allies (including parties who voted with the Union Government on recent legislation in Parliament). This essentially means that a vote in the Council could largely be an academic exercise unless a number of the Union Government’s allies switch sides.
• So far, even if states voiced their differences over a proposal in the Council, all decisions had been taken by consensus in the meetings of the GST Council.
• In the past, differences between the Centre and various states were resolved amicably without opting for the voting option.
• The states are unhappy over the delay in payment of compensation by the Centre. Recently, five Opposition-ruled states had raised a red flag over the pending compensation payment for almost 90 days.
• Former Finance Minister had underlined that the GST Council was an excellent federal institution, in which thousands of issues were decided through consensus.
• But the 38th meeting, the fourth under the chairmanship of the present Union Finance Minister, saw voting for the first time.

Future Scope of the Council:

• With a departure from the consensus approach having been made, there could be more instances of voting exercises going forward, especially as revenue-raising measures come up in future meetings.
• Differences of opinion are likely to crop up on proposals to raise rates, especially of the lower slabs, in the future, a concern that made most states rule out an immediate rate hike in the last Council meeting, even as they were in agreement over a broader overhaul of the GST structure.
• The GST Council also rationalized tax rate on woven and non-woven bags to 18 per cent. The council provided an exemption on a long-term lease for industrial plots to facilitate setting up of industrial parks.

Conclusion:

• Breaking from its ‘tradition’, Goods and Services Tax (GST) Council, the governing body that takes all GST related decision, for the first time resorted to voting to arrive at a decision on the uniform tax rate on lottery.
• Finance Minister told that every attempt was made to keep the tradition alive. Every attempt was made to convince the members of the council.
• But eventually, the council was reminded that the rules allow voting and that tradition is not part of the rule book, and that rules should govern the working of the council.