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DAILY NEWS ANALYSIS

Monthly DNA

13 Jul, 2022

21 Min Read

INADEQUATE MUNICIPAL FINANCES

GS-II : Indian Polity Devolution of powers and Finances up to Local level

INADEQUATE MUNICIPAL FINANCES

For effective municipal governance, the health of municipal finance is a critical element that will determine whether India realizes its economic and development goals.

  • Growing fiscal deficits, constrain in tax base expansion and weakening of institutional mechanisms remain a major challenge for the urban local body (UBLs). Revenue loss after the implementation of GST and the pandemic has further deteriorated the situation.
  • The urban population and Indian cities are expanding rapidly and the city infrastructure such as water supply, sewage, and solid waste management is under pressure and requires appropriate government effort.

Various challenges faced by the Urban Local Body in India:

  • Poor Financial condition: The most serious problem faced by urban local bodies is the acute shortage of finances. City municipalities do not collect enough taxes, even as the Economic Survey 2019 pointed out that municipalities do not realize the full potential of property tax.
  • State control: Strict control exercised by the state government over urban local bodies prove to be more of a curse than a boon because instead of providing guidance and support, the control turns out to be restrictive and impeding.
  • Irregular election: Urban local bodies have suffered constant postponement of elections for indefinite lengths of time.
  • Poor governance: The failure of municipal governance is one of the biggest reasons for the poor condition of Indian cities. Often the governance is impacted due to disputes between the elected Mayor and appointed Municipal Commissioner.
  • Corruption: Corruption, favoritism, and nepotism are rampant in the urban local bodies, they also have less power to fight all these issues
  • Poor Urban planning: Often there is great neglect in the implementation of the Master Plan. In a few cities the Master plan is still not worked out and thus cities grow as an accident than planning.
  • Lack of coordination: Poor coordination among the Center-State and various local bodies and parastatal bodies lead to poor implementation of urban policies and poor urban governance.

Analyzed data from the Indian Institute for Human Settlement

The Indian Institute for Human Settlement analyzed the data from 80 urban local bodies across 24 states between 2013 and 2017 to understand ULB finance and their spending. It found that:

  • ULB’s source of revenue was less than half of their total revenue. Its revenue includes:
    • revenue from taxes on property, fees, fines
    • non-tax revenue from user charges
    • Transfers from State and Centre.

Cities with a higher share of their revenue are more financially self-sustaining. Even the property which is the single largest contributor to ULBs own revenue accounted for only 0.15% of the GDP.

  • Many ULBs were highly dependent on intergovernmental transfer (IGTs), between 2013 and 2017 IGTs accounted for about 40% of the ULB’s total revenue.
  • Tax revenue is the largest revenue source for larger cities, while smaller cities are more dependent on grants.
  • Operational and maintenance expenses are on the increase but still inadequate. Operational and maintenance expenses are important for the upkeeping of infrastructure and for maintaining the quality-of-service delivery.

Measures to strengthen Urban Local Bodies

  • Greater autonomy: Urban Local Bodies should be more autonomous in their functioning so that they can deliver a quality service.
  • Governance reform: Reforms are needed as the catalyst for change, the adoption of a common categorization of urban bodies across the country to assist a systematic planning process and funding.
  • Timely elections and recruitment: A minimum level of staffing should be provided in metropolitan areas for strengthening the urban local body as well as elections should not be delayed beyond six months.
  • Planning: Government needs to coordinate at various levels about the implementation of various programs.
  • Holistic approach: It is critical to integrate various urban development and related programs at the local, state, and national levels to develop cities.

Steps taken by the government for ULBs

  • Performance linked grants: 14 finance commission stipulated that a detail procedural for the disbursal of the performance grant to ULBs, based on the various reforms in areas like auditing, reporting, etc
  • Municipal bonds: Niti Aayog come up with utilizing the municipal bond market which would ensure a low cost of borrowing, required for municipality project
  • Directly elected Mayor: A private member bill was introduced in Parliament to make provision for direct election and empowerment of the office of Mayor in the country for better governance.
  • Atal Mission for Rejuvenation and Urban Transformation: Various basic reforms were undertaken under this scheme resulting in an improved collection of user charges, the establishment of municipal cadres in 21 states, and improved service delivery.

Local self-governance in India should be strengthened as it captures the local needs and ensures a responsive government.

Source: The Hindu

DECRIMINALISATION OF INDIAN FOREST ACT 1927

GS-III : Biodiversity & Environment Forest

DECRIMINALISATION OF INDIAN FOREST ACT 1927

The Ministry of Environment, Forest and Climate Change has proposed a public notice for decriminalization of the Indian Forest Act, 1927.

Key points

Ministry is undertaking a review of the act to decriminalize minor sections of the law which include:

  • Carrying timber into the forest,
  • Trespassing by cattle,
  • Felling a tree,
  • Felling or damaging a tree is reserved under a special provision of the law,
  • Kindling a fire or carrying fire in forest areas.

Amendment proposed

  • It focuses on decriminalization if a relatively minor violation of the law takes place.
  • Fast resolution through the compounding of relatively smaller offences.
  • Reducing compliance burden on the citizens.
  • Rationalisation of penalties and preventing harassment of citizens.
  • Ministry seek to replace the provision of imprisonment for six months and a fine of Rs 500.
  • Section 30 and 26 of the Indian Forest Act,1927 are to be amended
    • Section 30: Fall any tree or drag any timber so as to damage any tree reserved or permit cattle to damage any such tree under section 30 shall be punishable with a fine that may be extended to Rs 500.

The clause of imprisonment up to six months for these offences has been removed

  • The penalties will be collected under the Environment Relief Fund and only in the case of non-payment of penalty will the violator be prosecuted.

Power of the Central Government

  • The Center does not have any power or jurisprudence to carry out amendments in the Act, as it does not fall under the Central Government as the act was enacted before the parliament has been established.
  • The Act is adopted by the states as they feel fit, only Haryana, Punjab, Bengal, Madhya Pradesh and Bihar follow the act. Other states have their own forest act which they follow.

Significance

  • It will help to ease the difficulties faced in differentiating between major and minor offences.
  • It will also deter habitual offenders from committing more crimes, as at present there is the same level of punishment for both first-time and repeat offenders.

Criticism

  • It might go on incentivizing offence, especially that of felling trees which is extremely dangerous.
  • It does not clarify and promotes ambiguity whether the Rs 500 fine is the cost of feeling one tree or it is an entire forest can be felled.
  • A move by the Centre is an infringement on the right of the states.

Indian forest act 1927

  • It set a legal framework for the protection and management of forests, transit of forest produces and timber and duty that can be levied on forest products and timber.
  • Indian forest act is the umbrella act which provides the basic architecture for the management of forests in the country.
  • The act also includes a mechanism to ensure notification of reserved, protected and village forests, protection of forest resources, forest biodiversity and wildlife of the country.

Source: The Indian Express

Red Panda

GS-III : Biodiversity & Environment Wildlife & Fauna

RED PANDA

An ambitious program has been started by the Padmaja Naidu Himalayan zoological park to release 20 Red Pandas in about five years to the forest.

About Red Panda

  • In the world, there are only two different panda species the Giant pandas and the Red pandas.
  • The red panda is the state animal of Sikkim.
  • India is the home to both subspecies of Panda which is the Himalayan red panda and the Chinese red panda, both found in the forest of India, Nepal, Bhutan, and the northern mountains of Myanmar and Southern China.
  • Red pandas are shy, solitary, and arboreal animals and are considered an indicator of ecological change.
  • The number of red pandas has been declining in the wild, even in the Singalia and Neora valley National Parks, the two protected areas where the endangered mammal is found in the wild in West Bengal.

Red panda

  • IUCN: Endangered
  • CITES: Appendix 1
  • Wildlife Protection Act 1972: Schedule 1

Giant panda

  • IUCN: VULNERABLE
  • CITES: APPENDIX 1

PROGRAMME FOR RED PANDA

  • Padmaja Naidu Himalayan Zoological Park has started an ambitious initiative to release 20 of these furry mammals in about five years to the forests.
  • The Padmaja Naidu park in Darjeeling is one of the high-altitude zoos in the country which has been quite successful in captive breeding of these furry mammals.
  • The Pandas will be released in the Singalila National Park, the highest protected area which is situated in West Bengal.

About Singalila National Park

  • It is located at Singalila Ridge in the Darjeeling district. It is the highest altitude park in West Bengal. It was initially a wildlife Sanctuary and later converted into a National Park in 1992.

Other national parks of West Bengal are as follows:

  • Jalda Para National Park
  • Neora Valley National Park
  • Sundarbans National Park
  • Gorumara National Park
  • Buxa National Park and Tiger Reserve

India’s conservation effort for red panda

  • Securing the red panda habitat

WWF-India works with local communities to reduce their dependence on fuelwood by introducing them to innovative techniques to meet their energy demands. In Sikkim, more than 200 individuals have been trained in manufacturing bio-briquettes.

  • Garnering local support

Local communities are involved in alternate livelihood activities that draw benefits for them, which also support the conservation initiatives.

In Arunachal Pradesh, community-based tourism enables the locals to earn additional income from the tourists coming to see red pandas.

  • Mitigating threats to red panda populations

Working with local communities to reduce forest dependence and involving them in conservation efforts addresses the threat of habitat degradation and fragmentation

Source: Down To Earth

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