TNPSC CURRENT AFFAIRS – 5.7.2024

1. PMI SIGNALS MANUFACTURING REBOUND

• Purchasing Managers’ Index (PMI)
• Definition: Purchasing Managers’ Index (PMI): A survey-based economic indicator designed to provide a snapshot of the manufacturing sector’s health. It is derived from monthly surveys of private sector companies. Key Components:
• New Orders: Measures the level of new orders received by manufacturers.
• Output: Reflects the production levels of manufacturers.
• Employment: Tracks changes in employment levels within the manufacturing sector.
• Suppliers’ Delivery Times: Monitors the speed at which suppliers deliver inputs to manufacturers.
• Stock of Purchases: Measures the level of inventories held by manufacturers.
• PMI Interpretation: Above 50: Indicates expansion in the manufacturing sector.
• Below 50: Indicates contraction in the manufacturing sector.
• 50: Indicates no change.

2. AGENDA FOR 16^TH FINANCE COMMISSION

• Background: Establishment: The 16th Finance Commission (FC) has begun its work under Article 280 of the Indian Constitution.
• Focus: Primarily on the devolution of the consolidated fund, with a mandate to recommend measures to augment State consolidated funds for supporting panchayats and municipalities, as per sub-clauses 280 (3) (bb) and (c). Importance of Cities:
• Economic Contribution: Cities contribute around 66% of India’s GDP and about 90% of total government revenues.  
• Urban Infrastructure Needs: The World Bank estimates that $840 billion is needed for basic urban infrastructure over the next decade.
• Inadequate Financial Devolution: Despite efforts by previous Finance Commissions, financial devolution to cities remains insufficient, affecting city productivity and quality of life.
• Intergovernmental Transfers (IGTs): Current Status: IGTs to Urban Local Bodies (ULBs) in India are about 0.5% of GDP, much lower than the 2-5% typical of other developing nations.
• Comparative Figures: South Africa (2.6%), Mexico (1.6%), the Philippines (2.5%), Brazil (5.1%).
• Issues with IGTs: Problems with predictability, earmarking for vulnerable groups, and horizontal equity.
• Necessity: IGTs are crucial for ULBs given their poor financial state and the need for stable support until their own revenues improve.
• Taxation System: Impact of GST: The introduction of GST has reduced ULBs’ tax revenue (excluding property tax) from about 23% in 2012-13 to around 9% in 2017-18.
• State Finance Commissions: Recommended only about 7% of States’ own revenue to ULBs in 2018-19.
• Need for Increased IGTs: Increasing the quantum of IGTs as a percentage of GDP is necessary to strengthen ULBs financially.
• Parallel Agencies:
• 13th Finance Commission Observation: Parallel agencies and bodies are undermining local governments both financially and operationally.
• Distortion of Roles: These programs distort the federal structure and local governance: Member of Parliament Local Area Development Scheme
• Member of Legislative Assembly Local Area Development Scheme
• Importance of Census Data: Reliance on Outdated Data: In the absence of the 2021 Census, reliance on 2011 data is inadequate for evidence-based fiscal devolution.
• Urbanization Dynamics: India has approximately 4,000 statutory towns, an equal number of Census towns, and an estimated 23,000 villages that are effectively urban.
• Migration Trends: Significant migration to Tier-2 and Tier-3 cities needs to be captured for accurate fiscal planning.
• Recommendations for the 16th FC: Revisit Guiding Principles: The 15th FC’s nine guiding principles need a revisit, especially those related to property tax collection, maintenance of accounts, resource allocation for pollution mitigation, and focus on primary health care, solid waste management, and drinking water.
• Doubling IGTs: The 16th FC must consider the dynamism of India’s urbanization and ensure that IGTs to urban areas are at least doubled.
• Infrastructure Investment: A McKinsey Global Institute report warns that current rates of investment in urban infrastructure are insufficient, leading to potential issues like water supply shortages and untreated sewage

3. A TOOL TO ENSURE COMPLETE VOTER ANONYMITY

• The Election Commission of India’s proposal to introduce a ‘totaliser’ to mask booth-level voting patterns aims to protect voter privacy and prevent post-election harassment.
• The totaliser aggregates votes from multiple booths, making it impossible to identify voting trends in specific areas. ○ The tool addresses concerns of post-election harassment and enhances electoral transparency.
• This reform is crucial for enhancing the security and integrity of the electoral process, ensuring free and fair elections in the country.
• The proposal awaits government approval and aims to reinforce democratic principles in electoral processes

4. IRAN THEOCRATIC

• Election Context: Iran is headed for a run-off presidential election on July 5, 2024, as no candidate secured 50% of the vote in the first round.
• Iran’s presidential elections have highlighted the struggle between reformist and conservative factions.
• Political Landscape: Reformist vs. Conservative: While reformist candidates have historically promised change, they have struggled to implement significant reforms due to the tight control of the Shia clergy and conservative institutions.
• Voter Turnout: Voter turnout was a record low at 39.9%, compared to over 80% in 2009, reflecting public apathy and disillusionment.
• Candidates: Masoud Pezeshkian: Reformist, former Minister of Health, received 42.5% of the vote.
• Saeed Jalili: Conservative, former chief nuclear negotiator, received 38.8% of the vote.
• Mohammad Baqer Qalibaf: Conservative Parliament Speaker, finished third with 13.8% of the vote.
• With no candidate achieving a majority, a runoff is scheduled between reformist Masoud Pezeshkian and conservative Saeed Jalili.
• The election’s context, amidst economic hardships and heightened tensions with Israel, underscores the difficulties of achieving significant political reform in Iran’s theocratic system.
• This situation illustrates the challenges of governance in authoritarian regimes and the impact of international pressures on domestic politics

5. NHRC ISSUES NOTICES TO CENTRE AND TN OVER RECRUITMENT PRACTICES

• The NHRC issued notices to the Centre and Tamil Nadu government regarding allegations of discrimination in Foxconn’s hiring practices.
• Reports suggest married women were systematically excluded from employment at Foxconn’s Sriperumbudur plant.
• This issue highlights the need for stringent enforcement of labour laws and protection of workers’ rights, ensuring equality and non[1]discrimination in employment practices.
• NHRC calls for adherence to labour laws and international treaties ensuring non-discriminatory employment practices

ONE LINER

1. Space MAITRI – The Indian Space Agency will launch a satellite built by an Australian firm
2. The union Jal Shakti Ministry launched an e-flow ecological monitoring system for real – time monitoring of river quality