1. Union Government Disburses RS. 1.73 Lakh Crore to States for Tax Devolution

Context: The Union Government has released 1.73 lakh crore to state governments, aiming to boost capital expenditure and fund various welfare initiatives.
This allocation is a crucial step in strengthening fiscal federalism and empowering states to address their developmental and welfare needs.

Highlights of the Tax Devolution:

• A higher-than-usual amount has been released to accelerate infrastructure projects and welfare schemes.
• States like Uttar Pradesh, Uttarakhand, and Bihar have received the largest shares of the disbursed funds.

What is Tax Devolution?

Tax devolution refers to the distribution of tax revenues collected by the central government to the states.
It ensures states have sufficient resources to manage their developmental and welfare programs.

Key Objectives:

• Promote fiscal federalism by empowering state governments financially.
• Strengthen the financial autonomy of states, allowing them to address local needs effectively.

How Does It Work?

• The central government collects taxes like income tax, GST, and other indirect taxes.
• A portion of this revenue is shared with the states based on the Finance Commission’s recommendations.

Formula for Allocation:

• Factors considered include:
  • Population size and demographic performance.
  • State efforts to mobilize tax revenue.
  • Geographical area, forest cover, and per capita income.

The allocation formula aims to reward better governance and encourage states to improve their financial management.

Constitutional Provisions Governing Centre-State Financial Relations:

• Articles 202–206: Define the financial administration of states, including their powers related to taxation, borrowing, and expenditure.
• Articles 268–272: Outline the division of revenues between the Union and states.
• Article 280: Mandates the establishment of a Finance Commission every five years to recommend the tax devolution formula.
• Article 282: Empowers the Union to provide financial assistance to states for public purposes.

Tax Devolution Trends:

Current Share of States:

• 14th Finance Commission (2015-2020): Increased the states’ share of central taxes from 32% to 42%, introducing revenue deficit grants for states with resource gaps.
• 15th Finance Commission (2020-2026): Revised the states’ share to 41%, maintaining fiscal balance while considering the creation of the Union Territories of Jammu & Kashmir and Ladakh.

• Special Funding Rules:
  • Northeastern and hill states follow the 90:10 rule (90% Centre, 10% state funding).
  • For other states, the ratio is 60:40 (60% from the Centre, 40% from the states).

Concerns Raised by States:

Demand for Higher Allocations:

• States argue for greater financial autonomy, citing responsibilities such as education, healthcare, and policing.

Disparities Among States:

• Developed states like Tamil Nadu and Karnataka feel penalized for their higher tax contributions compared to what they receive from the Centre.
• Critics argue this undermines states with better governance to support those with weaker fiscal management.

Issues with the Divisible Pool:

• Cesses and surcharges, which constitute up to 28% of central tax revenues, are not shared with the states, leading to significant revenue loss for state governments.

Independence of the Finance Commission:

• Critics question the independence of the Finance Commission, as its members are appointed by the central government, potentially leading to political bias in recommendations.

Way Forward:

1. Strengthening Cooperative Federalism:

• Enhance the GST framework to ensure smoother tax collection and equitable distribution of resources.
• Promote fair taxation systems that address the needs of all regions equitably.

2. Fiscal Equalization: Prioritize balanced resource allocation, ensuring poorer states receive adequate support without penalizing well-performing states.
3. Modernizing Tax Administration: Improve tax compliance and administration efficiency at the state level to optimize resource utilization.
4. Capacity Building: Invest in financial management training and infrastructure to help states effectively utilize devolved funds for development.

Did You Know?

• The Finance Commission not only decides on tax sharing but also recommends grants for disaster relief and local governance improvements.
• In the 2023-24 fiscal year, cesses and surcharges accounted for over 5 lakh crore, none of which were shared with the states.

The recent tax devolution highlights the government’s commitment to empowering states and addressing fiscal challenges, a vital step toward fostering a more balanced and inclusive economic growth trajectory.

Conclusion:

The recent tax devolution highlights the government’s commitment to empowering states and addressing fiscal challenges, a vital step toward fostering a more balanced and inclusive economic growth trajectory.

2. Supreme Court Rejects Review Petitions on Same-Sex Marriage Judgment

Context: The Supreme Court of India recently dismissed review petitions challenging its October 2023 ruling, which denied the legalization of same-sex marriage. The court emphasized that the matter requires legislative action, as Parliament is better suited to deliberate and legislate on such complex social issues.

Understanding Same-Sex Marriage:

What is Same-Sex Marriage?

Same-sex marriage refers to the union between two individuals of the same gender. While it is legally recognized in many parts of the world, India does not recognize same-sex marriages or civil unions.

Current Legal Status in India:

• Same-sex couples can enjoy certain rights under the concept of live-in relationships, as upheld by the Supreme Court in 2022 under Article 21 (Right to Life).
• However, they are excluded from the Special Marriage Act (SMA), 1954, which allows for civil marriages across religions.
• The Supreme Court’s 2023 ruling clarified that:
  • There is no fundamental right to marry under Indian law.
  • The SMA does not apply to same-sex couples.
  • Same-sex couples cannot form civil unions or adopt children.

Arguments in Favor of Legalizing Same-Sex Marriage:

1. Promoting Equality:

• Denying marriage rights to same-sex couples violates the constitutional principle of equality and perpetuates discrimination.
• Legal recognition affirms the dignity and rights of LGBTQIA+ individuals.

2. Access to Legal and Social Benefits:

• Marriage provides numerous benefits, such as inheritance rights, tax benefits, and social security.
• Recognizing same-sex marriages ensures that LGBTQIA+ couples can access these protections.

3. Improved Mental Health: Legal recognition fosters social acceptance, reducing stigma and improving the mental well-being of LGBTQIA+ individuals.
4. Aligning with Global Trends:

• Over 30 countries, including the Netherlands, United States, Australia, and Canada, have legalized same-sex marriage.
• India, as a progressive democracy, can enhance its global standing by joining this movement toward equality.

Global Landscape of Same-Sex Marriage:

• The Netherlands was the first country to legalize same-sex marriage in 2001.
• Today, most nations in North and South America and Europe have recognized same-sex unions.
• Some countries initially acknowledged civil unions before transitioning to full marriage equality.

Arguments Against Same-Sex Marriage in India:

1. Cultural and Religious Sensitivities: Critics argue that same-sex marriage conflicts with traditional Indian values and religious beliefs, which predominantly view marriage as a union between a man and a woman.
2. Legislative Domain: The Supreme Court has stated that the issue falls within the legislative purview, making it Parliament’s responsibility to enact laws reflecting the will of the people.
3. Social Readiness: Opponents suggest that Indian society is not yet prepared for such a change, fearing backlash from conservative groups.

Alternatives to Marriage: Some propose civil unions or domestic partnerships as a compromise, granting legal rights without redefining the traditional concept of marriage.

Review Petitions in the Supreme Court:

What is a Review Petition?

A review petition is a legal mechanism that allows parties to seek reconsideration of a Supreme Court judgment under Article 137 of the Constitution.

Key Details:

• Grounds for Filing:
  • An error apparent in the judgment.
  • New and significant information has come to light.
  • Any other sufficient reason.
• Time Limit: Must be filed within 30 days of the judgment.
• Procedure:
  • Heard by the same bench that delivered the original judgment.
  • If judges from the original bench have retired, the Chief Justice appoints replacements.

Outcome: The court may accept or reject the petition. If accepted, the judgment may be modified or reversed.

Implications of the Dismissal:

1. Status Quo Maintained: Same-sex couples in India will continue to lack legal recognition for their relationships, including marriage and adoption rights.
2. Legislative Responsibility: The ruling highlights the need for Parliament to legislate on same-sex marriage, emphasizing the judiciary’s limitations in addressing societal issues.
3. Advocacy for Rights: The dismissal reinforces the necessity for continued LGBTQIA+ advocacy to push for legislative reforms.
4. Policy Dependency:  Until legislative action is taken, the LGBTQIA+ community remains dependent on government policies for their rights and recognition.

Did You Know?In 2018, the Supreme Court of India decriminalized homosexuality by striking down Section 377, a colonial-era law. A survey by Pew Research in 2023 revealed that 48% of urban Indians support same-sex

Conclusion:

marriage, indicating growing acceptance. The rejection of review petitions is a reminder that the fight for equal rights continues. While the judiciary has taken significant steps toward recognizing LGBTQIA+ rights, the onus now lies on society and Parliament to ensure equality and dignity for all.

3. Right to Food and Challenges in India’s Public Distribution System (PDS)

Context: Despite India’s commitment to ensuring the Right to Food, inefficiencies in the Public Distribution System (PDS) pose significant hurdles in achieving equitable access to essential food grains.

Food Insecurity in India:

• Global Hunger Index (GHI) 2024: India ranks 105th out of 127 countries, categorized as having serious hunger levels.
• State of Food Security and Nutrition in the World 2023 Report: Approximately 224 million Indians faced moderate to severe food insecurity during 2021-2022.
• Malnutrition and Poverty: A large proportion of India’s population continues to struggle with undernourishment and lack of access to affordable food, making food security a critical concern.

Recognition of the Right to Food:

• Globally, the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognize the right to food as fundamental.
• In India, the Supreme Court ruling in People’s Union of Civil Liberties vs. Union of India established the Right to Food as part of the fundamental right to life under Article 21 of the Constitution.

What is the Public Distribution System (PDS)?

The PDS is a food security mechanism aimed at providing subsidized food grains and essential commodities to vulnerable sections of society.

Key Features of PDS:

1. Dual Responsibility:
   • The central government, through the Food Corporation of India (FCI), manages procurement, storage, transportation, and allocation of food grains.
   • State governments oversee local distribution, beneficiary identification, and issuance of ration cards.

Fair Price Shops (FPS): These serve as distribution points for subsidized food grains under the PDS.

Challenges in the Public Distribution System:

1. Food Grain Leakages: A significant portion of food grains is diverted to the black market or lost during transportation.
2. Exclusion Errors: Aadhaar-based biometric verification often results in eligible individuals being excluded due to technical errors or mismatches.
3. Corruption: Malpractices at Fair Price Shops include under-weighing goods, selling poor-quality food grains, and charging higher prices than mandated.
4. Storage and Transport Issues: Inadequate warehousing and transportation infrastructure lead to significant spoilage and wastage of food grains.
5. Targeting Errors: Identifying beneficiaries remains a challenge, leading to inclusion of ineligible households and exclusion of deserving ones.

Reforms and Modernization Efforts: 

1. National Food Security Act (NFSA), 2013:

• Provides legal entitlement to subsidized food grains for two-thirds of India’s population.
• Covers 75% of rural and 50% of urban populations.

2. Targeted Public Distribution System (TPDS):

• The 2015 Control Order clarified roles of the Centre and States, and established a grievance redressal mechanism.

3. Technological Advancements:

• Digital Ration Cards: Introduced to eliminate fake and duplicate ration cards.
• Aadhaar Integration: Biometric authentication ensures targeted distribution and reduces ghost beneficiaries.
• End-to-End Computerization: Improves transparency, tracks food grain movement, and minimizes leakages.

4. Direct Benefit Transfer (DBT): Piloted in certain regions, DBT involves transferring subsidies directly into beneficiaries’ bank accounts instead of providing food grains.
5. Quality Monitoring: Enhanced mechanisms for food safety and quality control ensure better nutritional value for beneficiaries.

The Way Ahead: 

1. Strengthen Infrastructure

• Expand storage and transport facilities to support increasing operational needs.
• Improve warehousing with modern storage techniques to reduce spoilage.

2. Leverage Technology: Use artificial intelligence (AI) and blockchain for real-time tracking, ensuring better accountability and minimizing inefficiencies.
3. Social Audits: 

• Conduct community-led audits to monitor the PDS and ensure transparency.
• Empower local stakeholders to hold authorities accountable.

4. Address Exclusion Errors: Simplify biometric verification and introduce alternatives for Aadhaar-based authentication to prevent unjust exclusions.
5. Comprehensive Policy Integration: Link the PDS with other welfare schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to ensure holistic support.

Did You Know?

• India’s midday meal scheme, one of the world’s largest school meal programs, complements the PDS by addressing child malnutrition.
• Chhattisgarh’s state-run PDS model is often cited as a success story for its community-driven approach and transparency mechanisms.

Conclusion: 

While the Public Distribution System is a critical pillar of India’s food security framework, addressing its inefficiencies is vital to ensuring that the Right to Food becomes a reality for all. By combining technological advancements, robust infrastructure, and community involvement, India can overcome these challenges and provide universal food security.

4. Revised Appointment Process for Chief Election Commissioner (CEC)

Context: For the first time, the process of appointing the Chief Election Commissioner (CEC) will no longer be restricted to seniority-based promotions. The Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service, and Term of Office) Act, 2023 introduces a revamped selection process, widening the scope for choosing the CEC and Election Commissioners (ECs).

5. California Wildfires 2025: Santa Ana Winds and Drought Amplify Destructio

Context: Devastating wildfires in Los Angeles, California, have claimed 10 lives, forced over 130,000 evacuations, and destroyed numerous homes, including those of celebrities like Paris Hilton and Billy Crystal.

Key updates:

• Areas like Hollywood Hills are severely affected by fires such as Palisades, Eaton, Sunset, Hurst, and Lidia fires.
• The Oscars nominations announcement has been postponed due to the crisis.
• While wildfires are common in California, the intensity and winter timing of these fires are unprecedented.

California Wildfires 2025: Timeline and Unusual Features:

1. Timeline of Events:

• The first fire ignited on January 7 in the Pacific Palisades neighborhood of Los Angeles.
• This firestorm is being described as the worst in recent memory, striking during January, the traditionally coldest month of winter.

2. Unusual Timing and Drought Conditions:

• Wildfires typically occur between June and October, making this January wildfire highly unusual.
• Southern California is grappling with intense drought conditions:
  • As of December 31, 2024, only 40.9% of the state was drought-free, compared to 96.65% the year prior.

What Caused the California Wildfires?

The precise cause is under investigation, but power cables impacted by strong winds are suspected.

Three Main Factors Behind the Blaze:

1. Wet Weather Followed by Extreme Dryness
   • Dense vegetation growth in 2022–2023 due to unusually wet winters.
   • The 2024–2025 winter has been exceptionally dry, turning this vegetation into highly flammable kindling.
   • NASA Report: Southern California has experienced negligible rainfall since October, making this the driest start to a water year in Los Angeles since 1944.
2. Santa Ana Winds
   • These winds are stronger than usual, spreading fires rapidly.
   • They:
     • Originate from high-pressure systems over the Great Basin.
     • Become hotter, drier, and faster as they descend over mountains.
     • Act as a natural bellows, fueling flames and igniting dry vegetation.

1. Impact of Climate Change:

• Global warming has worsened extreme weather, including wildfires.
• Key changes:
  • Rising global temperatures and early snowmelt have extended and intensified dry seasons.

Vegetation is under increased moisture stress, creating more fuel for fires.

Understanding Santa Ana Winds:

What Are Santa Ana Winds?

Santa Ana Winds are hot, dry, and strong winds blowing from the inland deserts of Southern California toward the coast. They are notorious for rapidly spreading wildfires.

Causes of Santa Ana Winds:

1. High-Pressure Systems in the Great Basin:
   • These winds are driven by high-pressure systems over the Great Basin (spanning Nevada, Utah, and California).
   • The air circulates clockwise, pushing winds toward low-pressure coastal areas.
2. Descending Air:
   • As the winds descend from high elevations (like the Sierra Nevada and Santa Ana Mountains), they:
3. Speed Amplification in Narrow Passages:
   • As winds pass through mountain canyons and narrow gaps, their speed increases significantly.

Gusts can exceed 100 mph (160 km/h) in certain areas.

Characteristics of Santa Ana Winds:

• Hot and Dry: The winds heat up as they descend, drying out vegetation.
• High Velocity: Strong gusts can lead to property damage and power outages.
• Fire Spreading: These winds act as a natural accelerant, turning small fires into raging infernos.

Impact and Future Outlook:

• The California wildfires of 2025 highlight the interplay between natural factors (like Santa Ana winds) and human-driven climate change.
• Efforts to mitigate such disasters require:
  • Better infrastructure to prevent power-line sparks.
  • Improved drought management and forest policies.
  • Increased public awareness about the dangers of Santa Ana Winds during drought seasons.

Did You Know?

• Santa Ana Winds are sometimes called “Devil Winds” due to their fiery impact.

The 2003 Cedar Fire, one of California’s largest wildfires, was also fueled by Santa Ana Winds, burning over 280,000 acres and destroying 2,800 structures

6. NATO Members Hesitant to Back Trump’s Defence Spending Proposal

Context: U.S. President-elect Donald Trump has proposed that NATO members increase their defence spending to 5% of GDP, a significant leap from the current target of 2%.

• This proposal is viewed as economically challenging and politically untenable for most member states.

However, at the upcoming NATO summit in June, there are expectations of a new, higher target, potentially around 3% of GDP.

Defence Spending by NATO Members:

Current Spending Trends:

• Poland leads in defence spending, allocating a staggering 12% of its GDP due to its proximity to Ukraine.
• Estonia follows with 3.43%, and the United States contributes 3.38% of its GDP to defence.
• The total defence expenditure of NATO nations in 2024 was estimated at $1.474 trillion, with the U.S. contributing $968 billion, making it the largest contributor by a wide margin.

Impact of the Russia-Ukraine Conflict:

• Following Russia’s invasion of Ukraine, European nations have gradually increased their defence budgets.
• Despite these efforts, most countries still fall short of meeting the current 2% target, let alone more ambitious goals.

Understanding NATO:

Foundation and Purpose:

• Established in 1949 through the Washington Treaty, the North Atlantic Treaty Organization (NATO) is a security alliance of 32 nations from North America and Europe.
• Sweden became NATO’s newest member in March 2024, increasing the alliance’s strength and reach.

The original 12 founding members included the United States, Canada, and ten European nations:
Belgium, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, and the United Kingdom.

Core Principles:

• NATO operates under the principle of collective defence, enshrined in Article 5 of the North Atlantic Treaty.
  • This principle means an attack on one member is considered an attack on all, obligating collective action.
• The alliance aims to safeguard its members’ freedom and security through political and military means.

Headquarters:

• NATO is headquartered in Brussels, Belgium, serving as the hub for its strategic and diplomatic operations.

Challenges with the 5% Proposal:

1. Economic Strain:
   • Many member nations face budget constraints, making the jump to 5% unrealistic.
   • Only a handful of countries, like Poland, have been able to allocate substantially higher percentages due to geopolitical pressures.
2. Political Pushback:
   • The proposal risks widening divisions within NATO, with some nations unwilling or unable to meet these new expectations.
3. Existing Disparities:

The United States already contributes a disproportionately large share of NATO’s defence budget, leading to ongoing debates about equitable burden-sharing.

Additional Insights:

• NATO’s Evolution: From a Cold War-era alliance to a modern security organization, NATO now addresses challenges like cybersecurity, terrorism, and climate-related threats.
• Future Direction: While increased defence spending is essential to counter growing threats, the path forward requires a balance between economic realities and collective security commitments.

Looking Ahead:

The NATO summit in June will be a critical juncture for deciding the alliance’s future defence spending targets.

• While Trump’s 5% proposal is unlikely to gain unanimous support, a revised goal of around 3% of GDP could emerge as a more feasible compromise.

The challenge lies in ensuring all member states contribute fairly while maintaining unity in addressing global security threats.

• The bloc focuses on sustainable development, technological advancements, and infrastructure building.
• Joint efforts address pressing issues like climate change, energy security, and global health crises.