DAILY NEWS ANALYSIS

Conflict over Control of Services between the Delhi Government and the Centre

• A recent disagreement over service control between the Delhi government and the Centre is being heard by a five-judge Supreme Court Constitution Bench.

Details about the news:

• The Supreme Court is now hearing a case involving disagreements between the Union and the Delhi government about the management of transfers and the general operation of administrative services in Delhi's National Capital Territory (NCT).

What is the conflict?

• Few believe that the Delhi government has any control whatsoever over administrative services.
• While other sources claim that the Lieutenant Governor can make transfers and postings of Secretaries, Heads of Department, and other Government of India officers in the scale of Joint Secretary and above and that for other levels, including DANICS (Delhi, Andaman, and Nicobar Islands Civil Service) officers, the files can be routed through the Chief Minister to LG.
• Opinion of the Centre: The Centre requested a referral to a larger Bench, claiming that because Delhi is the nation's capital and "face of the nation," it needs the authority to transfer and post personnel there.
• According to the Delhi government, a government cannot function if it does not have control over services since doing so will nullify governance and make officials unaccountable to the public.

Importance of a five-judge court:

• The court agreed that, in accordance with Article 145(3) of the Constitution, a Constitution Bench would need to issue an authoritative ruling with regard to the specific question of the scope of the legislative and executive powers of the Centre and the NCT of Delhi with regard to the term "services."
• A Constitution Bench made up of at least five judges must be established in accordance with Article 145(3) "for the purpose of deciding any issue presenting a serious question of law as to the interpretation" of the Constitution.

The dual government in Delhi:

• Delhi has a special place in India's administrative structure as both a Union Territory (UT) and a National Capital Territory (NCT).
• It is administered under the Government of National Capital Territory of Delhi Act of 1991 because it is a Union territory, and it calls for the appointment of L-G by the Union Home Ministry in addition to an elected parliament.
• The Government of National Capital Territory (GNCT) of Delhi (Amendment) Act, 2021 was passed in order to amend it.
• The dynamics of the relationship between the elected Council of Ministers in Delhi and the Central Government were severely strained by the status of Delhi as a UT under Schedule 1 of the Constitution and the "National Capital Territory" under Article 239AA, engrafted by the Constitution (Sixty-ninth Amendment) Act, 2014.
• Status: In 1991, a constitutional reform gave Delhi a responsible administration and a fully elected legislative assembly.
• Delhi has been a UT since 1991 and has an assembly with "limited legislative powers."

Article 239 AA and Delhi's Special Status:

• The 69th Amendment Act of 1991 added Article 239 AA to the Constitution, which granted Delhi Special Status in accordance with the S Balakrishnan Committee's recommendations.
• To investigate Delhi's requests for statehood, a committee was formed in 1987.
• This clause states that the NCT of Delhi shall have a Legislative Assembly and an Administrator.
• The Legislative Assembly "shall have the power to make laws for the whole or any part of the NCT with respect to any of the matters in the State List or Concurrent List in so far as any such matter is applicable to Union territories," subject to the provisions of the Constitution, with the exception of the laws governing land, public order, and police.

Survival of the Richest Report: The India Story

• The Oxfam India report "Survival of the Richest: The India Supplement" reveals the growing disparity between the rich and the poor.
• The report also discusses how progressive taxation can help India combat inequality.
• According to Oxfam India's latest report "Survival of the Richest: The India Story," only five percent (5%) of Indians own more than 60 percent (60%) of the country's wealth, while the bottom 50 percent (50%) own only three percent (3%).
• India's richest man has seen his wealth soar by 46 percent in 2022.

Findings of the report:

• The richest 1% of Indians today control more than 40% of the nation's total wealth, while the bottom half of the population will collectively hold just 3% of it between 2012 and 2021.
• On the first day of the World Economic Forum Annual Meeting in Davos, Oxfam International published the India supplement to its annual inequality report.
• According to the analysis, taxing India's ten wealthiest people at 5% might raise enough money to send kids back to school.
• According to the study, a one-time 20% tax on the unrealized gains of this millionaire from 2017 to 2021 may perhaps earn INR 1.8 lakh crores.
• This would provide more than five million primary school teachers in the nation with a full year of employment.
• In the next Union Budget, Oxfam India demands that the Union Finance Minister put an end to this outrageous inequality and enact progressive tax policies like a wealth tax.
• India's billionaires are doing incredibly well for themselves even though the nation is experiencing numerous crises like hunger, unemployment, inflation, and health tragedies.
• India's impoverished, in contrast, are unable to buy even the most basic essentials for survival.
• From 190 million in 2018, there were 350 million hungry Indians in 2022.
• The survey also emphasised the gender pay gap in India, stating that women only made 63 paise for every rupee earned by the men.
• Scheduled Castes and rural labourers are in a worse situation, as they earned respectively 55% and 50% of what the privileged socioeconomic groups did between 2018 and 2019.
• According to Oxfam India, in a system that puts the survival of the wealthiest people first, marginalised groups including Dalits, Adivasis, Muslims, women, and workers in the informal sector continue to suffer.
• When compared to the wealthy, India's impoverished pay disproportionately more taxes and spend more money on necessities.

Suggestion to tackle the inequality by Oxfam:

• To stop crisis profiteering, enact one-time windfall and solidarity wealth taxes.
• Taxes on the wealthiest 1% should be raised consistently. In particular, the finance minister has to increase taxes on capital gains, which are taxed at lower rates than other types of income. Implement net wealth taxes as well as inheritance, property, and land taxes.
• As outlined in the National Health Policy, increase the budgetary allocation for the health sector to 2.5% of GDP by 2025 in order to revitalise the public healthcare system, cut OOP spending, and promote health preventive and promotion.
• As promised in the National Education Policy, increase the budgetary allocation for education to the international standard of 6% of GDP. To reach the 6% level, the government must create a financial roadmap broken down by year.
• Spending more on initiatives (such Pre- and Post-Matric Scholarships) aimed at enhancing the educational level of kids from underprivileged groups (SC/ST/Girls) can help to reduce the existing educational imbalance.
• Ensure that employees in both the formal and informal sectors receive the bare minimum pay. In order to live a life with dignity, the minimum wage needs to be equal to living earnings.

About Oxfam International:

• Oxfam International is a grouping of 21 autonomous nonprofit organisations that collaborate with local communities and partners in more than 90 different countries.
• To eradicate the inequities that lead to poverty is its goal.
• Oxfam seeks out doable, creative solutions to help people escape poverty and prosper.
• When a disaster occurs, they help save lives and restore livelihoods.
• They advocate for the poor's voices to be heard in local and international decisions that have an impact on them.

What is a windfall tax?

• Windfall taxes are levied on unanticipated or exceptional earnings, such as those generated during periods of economic hardship, conflict, or natural catastrophes.
• Governments often impose a windfall tax, sometimes known as a one-time tax, retroactively in addition to the regular rates of tax on such earnings.
• Oil markets, where price volatility results in unpredictable or volatile profits for the business, are one area where such levies have frequently been suggested.