Context: 

A  research by HSBC shows that India needs to embrace hybrid vehicles over the next 5-10 years on the way to full electrification.

Why Hybrid Vehicles Could Be A Cleaner Solution for India Than EVs?

• In a Note to Investors: HSBC maintains that hybrid and compressed natural gas cars are a practical medium-term (5-10 years) solution for India from the perspective of decarbonisation while the country moves towards eventual electrification.
• India Focus: India‘s  electric mobility plan is largely focussed on battery electric vehicles replacing internal combustion engine (ICE) vehicles with the Centre offering clear tax incentives.
  •  Li-ion is seen as the most viable battery option for now.

Findings of the Analysis 

• Convergence: EV and hybrid emissions could converge after 7-10 years, if non-fossil power generation in India moves up to 44%.
  • But even if India’s share of non-fossil fuels is 40%, hybrid vehicles will still release 8% less emissions than EVs, which  will be half of the 16% of today by 2030.
• Present status:  The non-fossil share of power generation in India in FY23 was 26%, and the blended Indian power generation emission was 716g/kWh. 
  • Total (well-to-wheel) carbon emissions: for an EV it  is currently 158 g/km, compared to 133 g/km for hybrid vehicles,  which means that a hybrid vehicle is at least 16% less polluting than the corresponding EV.
  • Total (well-to-wheel WTW) emissions, includes vehicle tailpipe emissions  (tank-to-wheel, or TTW) and emissions from crude mining, refining, and power generation also.

Also  Read:

• India Joins Battery Energy Storage Systems Consortium
• Battery Energy Storage Systems

News Source: The Indian Express

DOWNLOAD PDF

Context: 

Indian scientists claim to have discovered  High Velocity Air Fuel (HVAF) Spray Technique as an alternative to hard chrome plating.

Hard Composite Coatings Through HVAF Spray Technique

• Scientists from International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) carried out synthesis of thin hard coatings of a composite alloy of Tungsten, cobalt, and chromium (WC-10Co-4Cr) by high velocity air fuel spraying. 
• Thin coatings were deposited with torches with different capacities and by employing different nozzle sizes.

About HVAF Spray Technique

• HVAF coating technology involves the combustion of propane within a compressed air stream, generating a consistently high-velocity jet. 
  • In this process, material is introduced into the air-fuel stream, propelling coating particles towards the target component.

Potential Benefits of HVAF Spraying Thin Coating technique

• Improve Coating Quality : It operates at low temperatures and high particle velocities, using finer-sized powders.  
• Economical benefits: As it reduces the need for grinding processes.
• Maintain  better wear resistance than hard chrome plating
• A Better alternative for heavy-load applications like hydraulic shafts and valves.

News Source: PIB 

DOWNLOAD PDF

Context: 

Scientists have combined real human brain tissue with electronics to make a new kind of biocomputer.

• It will Extend the scope of  neuromorphic computing  to make an ‘organoid neural network’ that can recognise voices and solve complex mathematical problems. 

What Are Brain Organoids? 

• An organoid refers to three-dimensional structures typically originating from stem cells. 
• These structures  have the ability to simulate both the architecture and functionality of specific organs within the body. 

• Brain organoids : These are three-dimensional aggregates of brain cells.
  • They are formed by extracting human pluripotent stem cells,( which are cells that can develop to become almost any kind of cell within the human body, and make them into brain cells). 
  • Brain organoids are aggregates of  neuron progenitor cells, early-stage neurons, mature neurons, and astrocytes (cells that maintain and protect neurons).

What Are Organoid Neural Networks ? 

These are networks formed by changing the function of self-organizing brain-like structures called organoids which are connected to microelectrode arrays (MEAs) to create networks that resemble real brains.

How Will Brainoware Work?

It linked a brain organoid to microelectrodes, forming an organoid neural network, a live component in an artificial neural network. 

• This network was integrated into a reservoir computer, consisting of three layers: input, reservoir, and output. 
  • Input signals(electrical stimulation) were processed by the reservoir( organoid neural network), a black-box system converting signals into mathematical entities. The output layer, modified computer hardware, recognized Brainoware’s neural activity.

Scientific Demonstration of Brainoware’s Skills  

• Accurately predicting a Henon map, a math function generating chaotic or non-chaotic graphs based on two variables. 
• It also identified Japanese vowels voiced by individuals, achieving 78% accuracy after learning from 240 audio clips in just two days. 

Potential Applications of Brainoware 

• To learn faster and be more energy-efficient than traditional silicon-based machines. 
  • By decreasing the time and energy demands as unlike AI hardware, brain cells store memory and process data without physically separating the two.
• To address current limitations in Artificial intelligence applications.
• To enable advances in fields such as medical science and treatment.
  • It will yield fundamental insights into learning mechanisms,neural development and cognitive implication of neuro degenerative diseases. 
  • It could also add in developing preclinical models of cognitive impairment for testing new therapeutics.

Challenges with Brainoware 

• Technological : Requires technical expertise and infrastructure to maintain a biological neural network because of heterogeneous mix of cell types.
• Ethical Concern  : Whether it would be fair to “use organoids in a mechanistic way without being aware of their state of consciousness”.

Conclusion 

The research represents a groundbreaking and captivating proof-of-concept exploration into organoid intelligence, demonstrating the potential utilization of brain organoids for adaptive reservoir computing.

News Source: The Hindu

DOWNLOAD PDF

Context:  

A senior congress leader was prevented from visiting Assam’s Batadrava Than during his political campaign. 

About Batadrava Than

Batadrava Than, or Bordowa Than, is one of the most sacred sites for Assamese Vaishnavites. 

• Location: It is located in Nagaon District at the birthplace of revered Vaishnavite reformer-saint Srimanta Sankardeva (1449-1568).
  • His philosophy was Ek Saran Naam Dharma. 
• Significance: People believe it to be the “Dwitiya Vaikuntha”, the second heaven on  earth. 
  • A huge pond “Akashiganga” and another pond “Santijan” too are the places of attraction of the devotees. 

Establishment of Thans

• Origin: These Sattras/Thans were established as centers of religious, social and cultural reforms in the 16th century.
  • The Neo-Vaishnavite reformist movement that Sankardeva started is behind the monastic institutions called Thans/Sattras.
• Present relevance: Today, the Sattras promulgate Sankardeva’s unique “worship through art” approach with music (borgeet), dance (sattriya) and theater (bhauna). 
• Features: Each Sattra has a naamghar (worship hall) as its nucleus and is headed by an influential “Sattradhikar”.

News Source: Indian Express

DOWNLOAD PDF

Context: 

As per India Meteorological Department (IMD), January of 2024 has been the second driest since 1901.

91% Rain Deficit in Northwest India in January: Second Highest Since 1901

• Rain deficit: The Northwest India region comprising states of  (Haryana, Himachal Pradesh, Punjab, Rajasthan, Uttarakhand, Uttar Pradesh, and the National Capital Territory) has received only 7.8 mm rainfall in the months of December and January.
  • January: It reported 1.2 mm against normal of 32.5 mm rainfall (-91 per cent).
  • December: It witnessed  6.6 mm rainfall  against the normal of 18.9mm (-65 per cent) 
• Dry winters: The higher reaches of Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand and neighboring hilly terrains have experienced complete absence of snowfall this season.
• Reason:
  • Feeble Western disturbance: This season witnessed five such disturbance streams but their position and intensity remained unfavorable for the country, therefore  the precipitation remained significantly below normal
  • El- Nino emergence: El Nino’s impact is evident in Kashmir  through prolonged dry spells, milder winters, and diminished snowfall. India’s monsoon rainfall for the year 2023 hit a five-year low, marking the lowest since 2018 due to El Nino. 

About Western Disturbances: 

• A western disturbance (WD) is an extra-tropical storm which originates in the Mediterranean region.
  • Literal Meaning of Western Disturbance: In term WD, the “Disturbance” means an area of “disturbed” or reduced air pressure  while the “Western” implies that the  disturbance travels from the west to the east direction.
• Non-Monsoonal Precipitation Pattern: It is a non-monsoonal precipitation pattern that induces low pressure systems in the lower layers of the atmosphere
• Winter Precipitation in North India:They are responsible for precipitation (snow & rainfall) in north India in Winters and lower the temperatures.
• Recent Trends: There is a declining trend in intensity in the past few years due to changing climate and  is witnessing a southward dip in  causing good rainfall over central India, but either deficient or scanty rainfall over most of northern India.
• Implications: 
  • Rabi crop:  The majority of Rabi crops are sown in the period of  October and November therefore scanty rainfall will affect the yield of Rabi crops in northern regions.
  • Horticulture farming: Apple production will suffer greatly as a result of the prolonged drought and lack of snow. 
  • Water replenishment: Western Disturbances are important for the availability  and replenishment of water along the hilly terrains of the Himalayas and the dependent ecosystem. 
    • Dry winters risk thirsty summers with the water level in rivers and lakes at an all time low.

News Source: The Indian Express

DOWNLOAD PDF

Context:

Recently, the Supreme Court questioned the Union Territory of Jammu and Kashmir about the non-­publication of orders for the suspension of Internet services. 

Internet Shutdown in J&K

• The Government of the Union Territory of Jammu and Kashmir (J&K) has restricted access to mobile data in Kashmir  many times, but the suspension orders have not been uploaded on the government’s websites. 
• Similar restrictions have been ordered by the government of Haryana in five different districts following farmers’ protests. However, Haryana orders are on social media but have not been uploaded on government websites. 

What Is An Internet Shutdown?

• An internet shutdown may be defined as an intentional disruption of internet or electronic communications, rendering them inaccessible or effectively unusable, for a specific population or within a location, often to exert control over the flow of information.

Legal Provisions of Internet Shutdown in India

• Section 144 of the Code of Criminal Procedure: It gives District Magistrates broad powers during dangerous situations. 
  • Section 69(A) of the IT (Amendment) Act, 2008 gives the government powers to block particular websites, not the Internet as a whole. 
• Indian Telegraph Act, 1885: It stipulates that only the Home Secretary of the Union or a state can pass an order, and that the order must include the reasons for the decision of suspension of internet services. 
  • In “unavoidable circumstances”, the order can be issued by an officer of the rank of Joint Secretary or above, authorized by the Centre or the state Home Secretary.
• Review Committee: The order should be forwarded to a review committee the day after it is issued, and must be reviewed by the committee within five days to assess its compliance with Section 5(2) of The Telegraph Act.
• Section 5(2) of the Indian Telegraph Act, 1885, read with Temporary Suspension of Telecom Services (Public Emergency and Public Safety) Rules, 2017: The government has the power to block the transmission of messages during a public emergency or for public safety.
  • However, the order must be during a “public emergency” or in the “interest of public safety”. Also, the suspension must be “necessary” and “unavoidable”.

Concerns and Challenges of Non-Publication of Orders

• No Reach to Justice by Aggrieved Person: Those aggrieved with the restriction cannot approach a court of law to question an order’s legality in the absence of the order.

• Illegal Restrictions: The court may direct the Government to produce the order, but this will allow the Government to delay production of the order until after the restriction has subsided. This enables the Government to get away with illegal restrictions. 
• Undermines Public Confidence in the Government: The Internet is a necessity in this age and restrictions without publicly disclosed reasons create a trust deficit. 
• No Statutory Recognition: The Union Government has also not done enough to give statutory recognition to the directions in Anuradha Bhasin. 
  • In 2020, it amended the Telecom Suspension Rules, 2017 to limit Internet suspension orders to a maximum of 15 days. 
  • However, the amendment did not include an obligation to publish orders nor did it include the Supreme Court’s direction to undertake periodic review of these orders. 
• Lack of Awareness: If Supreme Court decisions are not statutorily recognised, the officials enforce the law incorrectly simply because of a lack of awareness as experienced with Section 66A of the Information Technology Act . 
  • Example: Meghalaya in reply to an RTI application stated that it was not even aware of the judgment in Anuradha Bhasin pronouncement.

Impacts of Internet Internet Shutdown and Restrictions

• Economic Loss: India’s Internet restrictions accounted for more than 70% of the total loss to the global economy in 2020 and India remains infamous as the Internet shutdown capital of the world.
• Violation of Fundamental Rights: Internet restrictions violate Fundamental Rights under Article 19(1)(a) and Article 19(1)(g).
  • It also violates Right to Information, a Fundamental Right under Article 19 by the Supreme Court in Raj Narain vs State of UP, 1975 case.
  • It also violates the Right to Internet, a Fundamental Right under Article 21 by the Kerala High Court in Faheema Shirin vs State of Kerala case.

• • It also violates the Right to Freedom of Press, a Fundamental Right declared by the Supreme Court in Indian Express vs Union of India (1986) and Bennett Coleman vs Union of India (1972) cases.
• Multiple Harms: The Internet is a source of information, entertainment, health care, education, livelihood and a platform for the members of Indian society to interact with each other and the world at large, however the harms- economic, psychological, social, and journalistic caused by such suspensions outweighs any speculative benefits.

Way Forward

• Restrictions Only in Emergency Conditions: Internet suspensions ought to be imposed in times of emergency and not to stifle the democratic exercise of the right to protest. 
  • The Supreme Court, in Anuradha Bhasin, permitted the Government to restrict Internet access only in limited circumstances such as public emergency or a threat to public safety.
• More Faithful Compliance with the Supreme Court Guidelines: It is required on the part of the executive government to get rid from the tag of “internet shutdown capital” of the world and fulfill Digital India’s potential. 

News Source: The Hindu

DOWNLOAD PDF

Context:  

The Reserve Bank of India barred Paytm Payments Bank ltd. from offering all its core services from March 2024.

RBI Put Restrictions On Paytm Payments Bank

• Core services: Paytm Payments Bank has been barred from offering its key services i.e. accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags, National Common Mobility Card  etc  after February 29.

Regulatory Restrictions on Paytm Payments Bank: Reasons

• Audit report: The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed “persistent non-compliances and continued material supervisory concerns in the bank”.
• Violating RBI directive: The RBI had earlier  directed PPBL to stop onboarding new customers with immediate effect but the bank circumvented the directive to onboard customers through an offline mode.
• Data security: Lack of requisite information barriers within the group, and data access to China-based entities that were indirect shareholders in the payments bank through their stake in the parent company.
• Violating the Payments Banks Terms:  Paytm Payments Bank had allegedly failed to meet the Rs 100-crore net worth criteria, and had exceeded the Rs 1-lakh deposit limit allowed per account for payments banks at the time.

About Payments Bank

• A payments bank is a bank which  operates on a smaller scale without involving any credit risk.
  •  For Example: Airtel Payment Bank, India Post Payment Bank, Fino, Paytm Payment Bank, NSDL Payment Bank and Jio Payment Bank.
• Origin: Based on the recommendations of the Nachiket Mor Committee 2013
• Registration: It is registered under the The Companies Act 2013
• Governed By:  Banking Regulation Act, 1949; RBI Act, 1934; Foreign Exchange Management Act, 1999, Payment and Settlement Systems Act, 2007 and the like.
• Objective: To advance financial inclusion by spreading the payment and financial services network  to small business, low-income households, migrant labor workforce in a secured technology-driven environment.
• Function: A Payments Bank can accept demand deposits (up to Rs 1 lakh), offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third party fund transfers.
• Differentiated Bank: A  Payment Bank cant perform some functions, these are
  • They cannot advance loans or issue credit cards
  • Payment Banks cannot accept Non-Resident Indian (NRI) deposits.
  • It cannot accept Time deposits 
  • The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities.

News Source: The Indian Express

DOWNLOAD PDF

Context:

Recently, India has increased its tally of Ramsar sites (Wetlands of International Importance) to 80 from existing 75 by designating five more wetlands, three from Karnataka and two from Tamil Nadu as Ramsar sites.

Five More New Ramsar Sites in India

• With the addition of five new Ramsar sites in India, the total area covered under Ramsar sites is now 1.33 million ha which is an increase of 5,523.87 ha from existing area (of 1.327 million ha. Tamil Nadu continues to have the maximum number of Ramsar Sites (16 sites) followed by Uttar Pradesh (10 sites). 

About Newly Designated Ramsar Sites in India

• Ankasamudra Bird Conservation Reserve: It is a human made Village Irrigation Tank in Karnataka. 
  • It supports more than 1% of the biogeographic population of Painted Stork (Mycteria leucocephala) and Black-headed Ibis (Threskiornis melanocephalus).
• Aghanashini Estuary: It is formed at the confluence of Aghanashini River with the Arabian sea in Karnataka and supports traditional fish farming in the estuarine rice fields (locally known as Gazni rice fields) and over 1% of the biogeographic population of 15 waterbird species.
• Magadi Kere Conservation Reserve: It is a human-made wetland in Karnataka. 
  • It harbors two vulnerable species, Common pochard (Aythya ferina) and River tern (Sterna aurantia) and four near-threatened species, namely Oriental Darter (Anhinga melanogaster), Black-headed Ibis (Threskiornis melanocephalus), Woolly- necked Stork (Ciconia episcopus) and Painted Stork (Mycteria leucocephala). 
  • It is one of the largest wintering grounds for the Bar-headed goose (Anser indicus) in Southern India and is a designated Important Bird Area (IBA).
• Karaivetti Bird Sanctuary: It is one of the largest inland wetlands of Tamil Nadu.
  • Fauna: Bar headed Goose, Pin-tailed duck, Garganey, Northern Shoveler, Common Pochard, Eurasian Wigeon, Common teal and Cotton teal.
• The Longwood Shola Reserve Forest: It is situated in Tamil Nadu and these forested wetlands serve as habitats for the globally endangered Black-chinned Nilgiri Laughing thrush (Strophocincla cachinnans), Nilgiri Blue Robin (Myiomela major), and vulnerable Nilgiri Wood-pigeon (Columba elphinstonii). 

Ramsar Site & Ramsar Convention

• Establishment: A Ramsar site is a wetland of international importance under the Ramsar Convention (also known as the ‘Convention on Wetlands’), an intergovernmental environmental treaty established by UNESCO in 1971, and named after the city of Ramsar in Iran, where the convention was signed that year.
• Identification: Ramsar recognition is the identification of wetlands which are of international importance, especially if they provide habitat to waterfowl (about 180 species of birds).
• First Ramsar Site in India: Chilika Lake in Orissa and Keoladeo National Park in Rajasthan 
• Largest Ramsar Site in India: Sundarbans in West Bengal 

About Wetlands Sites

• A Saturated Ecosystem: A wetland is a place in which the land is covered by water (salt, fresh, or somewhere in between) either seasonally or permanently. It functions as its own distinct ecosystem.
• Consists Of: They include mangroves, marshes, rivers, lakes, deltas, floodplains and flooded forests, rice-fields, coral reefs, marine areas no deeper than 6 meters at low tide, as well as human-made wetlands such as waste-water treatment ponds and reservoirs.
• Contribution: They cover only around 6% of the Earth’s land surface, but about 40% of all plant and animal species live or breed in wetlands.
• Significance of Wetlands: 
  • It helps in stabilizing greenhouse gases like carbon dioxide, methane, nitrous oxide.
  • It reduces the risk of disasters such as floods.
  • It helps in sequestration of carbon as it stores carbon rather than releasing it to the atmosphere as carbon dioxide.
  • It has cultural and tourism significance.

News Source: PIB

DOWNLOAD PDF

Context: 

This article is based on the news “Need a ‘mechanism’ to detect vendetta in ED-States cases: Supreme Court” which was published in the Hindu. The Supreme Court calls for a mechanism to detect political vendetta in the Enforcement Directorate (ED) probe.

SC Proposes Pan-India Mechanism for Enforcement Directorate-State Disputes

• Pan India Mechanism Enforcement Directorate-State Disputes: The Supreme Court has suggested a pan-india mechanism, incorporating “best practices,” to prevent political disputes between state governments and the Enforcement Directorate from hindering impartial criminal investigations into money laundering and corruption. 
  • Pilot Testing : It may be initially tested in Tamil Nadu before expansion in response to non adherence to shared details of investigations into corruption cases.
• Emphasized for Balanced Approach : The Bench expressed concern about potential conflicts between states and central agencies, emphasizing the need for a balanced approach to prevent vindictive actions.

About Enforcement Directorate (ED)

• Role: Enforcement Directorate was formed in 1956 for investigating economic offences under the Prevention of Money Laundering Act (PMLA), Fugitive Economic Offenders Act, Foreign Exchange Management Act and Foreign Exchange Regulation Act.
• Nodal Ministry :  Ministry of Finance.
• Headquarters: NewDelhi 

Powers of Enforcement Directorate: 

• Issues Summons : It mandates the physical presence of individuals, who must submit necessary documents and respond to inquiries. 
• Detention: It can detain records or property during investigations for up to 180 days with a valid reason.
• Enforcement Directorate enforces the following Acts: 
• • The Prevention of Money Laundering Act, 2002 (PMLA): It is a criminal law aimed at preventing money laundering & tasked with investigating, tracing assets, attaching property, and ensuring prosecution and asset confiscation. 
  • The Foreign Exchange Management Act, 1999 (FEMA): It is a civil law consolidating regulations related to external trade and payments in India. 
  • The Fugitive Economic Offenders Act, 2018 (FEOA): It  discourages economic offenders from evading Indian law by allowing the ED to attach properties and facilitate asset confiscation for fugitive economic offenders. 
  • Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), the Directorate is authorized to sponsor cases of preventive detention for contraventions of FEMA.

Associated Challenges With Enforcement Directorate (ED)

• Misuse of Power: It has faced criticism for its unrestricted authority to prosecute politicians and government officials without prior state government permission.
  •  The Prevention of Money Laundering Act (PMLA), initially focused on drug trafficking-related money laundering, has been expanded to cover minor offenses, drawing criticism
• Functional Opacity : Concerns about functional opacity and a lack of transparency arise from accusations of the ED targeting opposition parties in its case selection.
• Lower conviction rate:  The agency has faced criticism for its low conviction rate, with no convictions between 2005 and 2013-14 and only 23 out of 888 cases registered between 2014-15 and 2021-22.
• Allegations of Political Meddling: The ED has faced accusations of political interference,Preferential treatment for individuals aligning with the ruling party, sparking concerns about bias and a lack of independence in the ED’s actions.
• Resource Constraints: The Enforcement Directorate operates within a restricted budget, limiting its capacity to thoroughly investigate and prosecute economic offenses. 
• Interagency Cooperation Challenges: The ED encounters difficulties in securing cooperation from other law enforcement agencies, including the State Police and the Central Bureau of Investigation (CBI).

Way Forward 

• Guarding Against Political Motives: The Enforcement Directorate, empowered by the Prevention of Money Laundering Act (PMLA), must avoid misuse of its extensive powers for political motives.
• Balancing Swiftness and Fairness: Investigations should not turn into punitive actions, and cases need swift resolution for timely trials and convictions. 
• Emphasis on Systemic Reforms: The ED seeks a balance between expeditious proceedings and maintaining integrity, emphasizing the need for systemic reforms rather than extreme measures. 
• Preserving Integrity:Navigating a delicate path, the Enforcement Directorate aims to preserve its integrity by accelerating investigations and court procedures.

Conclusion

The credibility of leading investigative institutions are under scrutiny. The fight against corruption is closely linked to overhauling investigative processes, requiring collaboration among adjudicating authorities for transparency and fairness.  The Supreme Court’s intervention in the ED-states conflict, advocating for a screening mechanism to alleviate concerns of perceived or actual political vendettas, is a positive development.”           

DOWNLOAD PDF

Context: 

This article is based on the news “Parliament Budget Session Live Updates: Day after interim Budget, INDIA party leaders to chalk out joint strategy” which was published in the Indian Express.

Interim Budget 2024-2025

• India’s Finance Minister presented the interim budget for financial year 2024 on February 1. 
• India is scheduled to undergo general elections in mid-2024, which is why the budget announcement by the incumbent government is called an interim budget.
• The comprehensive financial budget follows after general elections.

What Is An Interim Budget?

• The interim budget functions as a short-term financial plan to fund central government spending until elections are held and a new central government assumes power.
  • It outlines its anticipated expenditures and receipts till the formation of the new government.
  • The ruling government cannot include any major scheme in the interim budget as it could influence the voters, as per the Election Commission’s Code of Conduct. 
  • The government in power cannot also deliver the Economic Survey along with the interim budget.

Enroll now for UPSC Online Course

• Purpose Of Interim Budget

  • To ensure the continuity of essential government functions until the new administration assumes office.
• Interim Budget 2024 Timeline: The interim budget’s effectiveness extends only until March 31, 2024, restricting the spending power of the current government thereafter.
• Votes on Account Provision: As there is no constitutional provision for an interim budget, the government utilises ‘votes on account’ provision to secure funds for the interim period.

Interim Budget Vs Full Fledged Budget

Why is Interim Budget Called a ‘Vote on Account’?

• An interim Budget conventionally is also called a ‘vote-on-account’ because it serves as an authorisation to incur specific expenditures which is necessary till a new government comes to power.
• Effective Period and Extension: Generally, a vote-on-account remains effective for a period of two months and can get an extension if required.

• Constitutional Basis

• • Article 116 of the Constitution: Under Article 116, a vote-on-account is an upfront allocation of budget from the ‘Consolidated Fund of India’ to the incumbent government.

About Union Budget 

• According to Article 112 of the Indian Constitution, the Union Budget also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for the upcoming financial year.
• Budget word is not mentioned in the constitution.
• Union Budget Period: April 1 to March 31
• Prepared by: Department of Economic Affairs, Ministry of Finance is the nodal body responsible for preparing the Budget.
• Union Budget Classification: Union Budget is classified into Revenue Budget and Capital Budget.
  • Revenue Budget: It includes the government’s revenue receipts and expenditure. 
    • Revenue Receipts: There are two kinds of revenue receipts – tax and non-tax revenue. 
    • Revenue expenditure: It is the expenditure incurred on day to day functioning of the government and on various services offered to citizens. 
    • Revenue Deficit: If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.
  • Capital Budget: It includes capital receipts and capital expenditure.
    • Capital Receipts: Loans from public, foreign governments and RBI form a major part of the government’s capital receipts. 
    • Capital expenditure: It is the expenditure on development of machinery, equipment, building, health facilities, education etc. 
• Fiscal Deficit: Fiscal deficit is incurred when the government’s total expenditure exceeds its total revenue.

Interim Budget 2024 Highlights 

Interim Budget: Part A

People Centric Inclusive Development

• Viksit Bharat by 2047: The government is working towards making India ‘Viksit Bharat’ by 2047, with focus on sabka sath, sabka vikas.
• Inclusive Development and Growth: Government has been working towards promoting “all aspects” of inclusivity.
• Departure from Earlier Approach of ‘Provisioning Up-to-Village Level’: Development programmes (last 10 years) have targeted each and every household and individual, through housing for all, har ghar jal , electricity for  all, cooking gas for all, bank accounts and financial services for all, in record time.

Enroll now for UPSC Online Classes

Social Justice

The government is focusing on four aspects of our society i.e., GYAN.

• GYAN: Garib’ (Poor), ‘Yuva’ (Youth), ‘Annadata’(Farmer) and’ Nari’ (Women).

Garib Kalyan, Desh ka Kalyan (Garib)

• Poverty: 25 crore people out of multi-dimensional poverty in the last 10 years.
• PM-Jan Dhan: DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs. 2.7 lakh crore for the Government.
• PM-SVANidhi: It provided credit assistance to 78 lakh street vendors. 2.3 lakh have received credit for the third time.
• PM-JANMAN Yojana: Aid the development of particularly vulnerable tribal groups (PVTG).
• PM-Vishwakarma Yojana: Provides end-to-end support to artisans and crafts people engaged in 18 trades.

Welfare of Annadata (Farmers)

• PM-KISAN SAMMAN Yojana: Provided financial assistance to 11.8 crore farmers. 
• PM Fasal Bima Yojana: Crop insurance is given to 4 crore farmers
• Electronic National Agriculture Market (e-NAM): Integrated 1361 mandis, providing services to 1.8 crore farmers with trading volume of Rs. 3 lakh crore.

Momentum for Nari Shakti (Nari)

• Mudra Yojana: 30 crore Mudra Yojana loans given to women entrepreneurs.
• Female Enrolment: Increased female enrolment in higher education by 28 per cent in 10 years.
  • 43 per cent of female enrolment in STEM courses, one of the highest in the world.
• PM Awas Yojana: Over 70% houses under PM Awas Yojana given to women from rural areas.
• Self Help Groups (SHG): 1 crore women assisted by 83 lakh SHGs to become Lakhpati Didis.

Yuva’ (Youth)

• 1.4 crore youth trained under Skill India Mission.
• Fostering entrepreneurial aspirations of Youth: 43 crore loans sanctioned under PM Mudra Yojana.

Strategy for Amrit Kaal

Sustainable Development

• Commitment to meet ‘Net Zero’ by 2070:
  • Viability gap funding for wind energy.
  • Setting up of coal gasification and liquefaction capacity.
  • Phased mandatory blending of CNG, PNG and compressed biogas.
  • Financial assistance for procurement of biomass aggregation machinery.
• Rooftop Solarization:
  • 1 crore households to obtain 300 units free electricity every month through rooftop solarization.
  • Each household is expected to save Rs.15000 to Rs.18000 annually.
• e-Mobility
  • Adoption of e-buses for public transport networks.
  • Strengthening e-vehicle ecosystem by supporting manufacturing and charging.
• Environmentally Friendly Alternatives:
  • New scheme of biomanufacturing and bio-foundry to be launched to support environment friendly alternatives
• Other Measures:
  • Over 10 crore LPG connections released under PM Ujjwala Yojana.
  • 36.9 crore LED bulbs, 72.2 lakh LED Tube lights, and 23.6 lakh Energy efficient fans distributed under UJALA.
  • 1.3 crore LED Street Lights installed under Street Lighting National Programme.

Enroll now for UPSC Online Course

Infrastructure and Investment

• Substantive development of all forms of infrastructure-Physical, Digital and Social.
• Outlay for infrastructure has been increased to Rs 11.11 lakh crores in FY25.
• Digital Public Infrastructure (DPI) promoted formalisation and financial inclusion.
• Promotion of urban transformation via Metro rail and NaMo Bharat.
• Railways:
  • 3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost:
    • Energy, mineral and cement corridors
    • Port connectivity corridors
    • High traffic density corridors
  • Forty thousand normal rail bogies to be converted to Vande Bharat standards.

• Aviation Sector:

• • Number of airports in the country doubled to 149.
  • 517 new routes are carrying 1.3 crore passengers.
  • Indian carriers have placed orders for over 1000 new aircrafts.
  • Expansion of existing airports and comprehensive development of new airports under UDAN scheme.

• Investments:

• • FDI inflow during 2014-23 of USD 596 billion was twice of the inflow during 2005-14.
  • Promotion of foreign investment via bilateral investment treaties to be negotiated.

Inclusive Development

• Health

  • Encourage Cervical Cancer Vaccination for girls (9-14 years). 
  • Saksham Anganwadi and Poshan 2.0 to be expedited for improved nutrition delivery, early childhood care and development.
  • U-WIN platform for immunisation efforts of Mission Indradhanush to be rolled out.
  • Health cover under Ayushman Bharat scheme to be extended to all ASHA, Angawadi workers and helpers.

• Housing 

  • PM Awas Yojana (Grameen):
    • • Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 3 crore houses, with an additional 2 crore targeted for next 5 years.
      • Housing for Middle-Class scheme to be launched to promote middle class to buy/build their own houses.

• Tourism

• • States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale.
  • Framework for rating of the tourist centres based on quality of facilities and services to be established.
  • Long-term interest-free loans to be provided to States for financing such development on matching basis.
  • G20 meetings in 60 places presented diversity of India to global audience
  • Projects for port connectivity, tourism infrastructure, and amenities will be taken up in islands, including Lakshadweep.

Agriculture and Food Processing

• Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.
• Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60000 individuals with credit linkages.
• Government will promote private and public investment in post-harvest activities.
• Application of Nano-DAP (Di-ammonium Phosphate) fertiliser to be expanded in all agro-climatic zones.
• Atmanirbhar Oilseeds Abhiyaan-Strategy to be formulated to achieve atma nirbharta for oilseeds.
• Comprehensive programme for dairy development to be formulated.
• 5 Integrated Aquaparks to be set up.

Financial Overview:

Revised Estimates 2023-24

• Total Receipts (other than borrowings): Rs.27.56 lakh crore, of which the tax receipts are Rs.23.24 lakh crore.
• Total Expenditure: Rs.44.90 lakh crore.
• Fiscal Deficit: 5.8 per cent of GDP for 2023-24.

Enroll now for UPSC Online Classes

Budget Estimates 2024-25

• Total Receipts (other than borrowings): Rs.30.80 Lakh Crore
• Total Expenditure: Rs.47.66 lakh crore  
• Fiscal Deficit: 5.1 percent of GDP.
• The scheme of fifty-year interest free loan for capital expenditure to states will be continued this year with a total outlay of Rs. 1.3 lakh crore.

Interim Budget: Part B

Direct Taxes

• Tax Collection and Return Files: Over the last ten years, the direct tax collections have more than tripled and the return filers have increased to 2.4 times. 
• Tax rationalisation efforts over the years
• • No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in  FY 2013-14.
  • Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore.
  • Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh.
  • Corporate income tax decreased to 22% from 30% for existing domestic companies.
  • Corporate income tax rate at 15% for new manufacturing companies.
• Achievements in Tax-Payer Services
• • Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14.
  • Faceless Assessment and Appeal introduced for greater efficiency.
  • Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing.
  • Reforms in customs leading to reduced import release time:
    • Reduction by 47% to 71 hours at Inland Container Depots.
    • Reduction by 28% to 44 hours at  Air Cargo complexes.
    • Reduction by 27% to 85 hours at Sea Ports.

Indirect Taxes

• FM proposes to retain same tax rates for indirect taxes and import duties
• GST unified the highly fragmented indirect tax regime in India
• • Average monthly gross GST collection doubled to Rs 1.66 lakh crore this year.
  • GST tax base has doubled.
  • State  SGST revenue buoyancy (including compensation released to states) increased to 1.22  in the post-GST period(2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16).
  • 94% of industry leaders view transition to GST as largely positive.
  • GST led to supply chain optimization.
  • GST reduced the compliance burden on trade and industry
  • Lower logistics cost and taxes  helped reduce prices of goods and services, benefiting the consumers

Resilient Performance of the Indian Economy

Rupee Comes From:	Rupee Goes To:

DOWNLOAD PDF