TNPSC CURRENT AFFAIRS – 27.09.2024

1. ECONOMY

FIVE STATES SEEK FAIR SHARE OF TAXES, CAP ON CESS AND SURCHARGE

• Centre-State Fiscal Relations The issue raised by the conclave of Finance Ministers revolves around the fiscal imbalance between the Centre and the States.
• This imbalance is primarily due to the distribution of tax revenues and the imposition of cesses and surcharges by the Centre.
• Key Issues Raised by the States Increase in States’ Share in Divisible Pool The States have demanded an increase in their share from 41% to 50%.
• This is to ensure a more equitable distribution of resources.
• Capping of Cesses and Surcharges The States have suggested capping cesses and surcharges so that any amount above the cap is included in the divisible pool.
• This would increase the funds available for distribution among the States.
• Reduction in Centrally Sponsored Schemes The States have called for a reduction in the number of CSS to allow for more flexibility in using the funds according to their specific needs.
• Delimitation Concerns The States, particularly from the South, are concerned that delimitation based on the upcoming census could reduce their representation in the Lok Sabha.
• This could have political implications and affect the balance of power between the Centre and the States.
• Constitutional Provisions a. Article 280: Finance Commission
• The Finance Commission is constituted by the President of India every five years to recommend the distribution of tax revenues between the Centre and the States.
• The 16th Finance Commission has started its work, and its recommendations will be crucial in addressing the concerns raised by the States.
• Article 275: Grants-in-Aid
• This article allows the Centre to provide grants-in-aid to States in need, as determined by the Finance Commission.
• The grants are meant to help States with low per capita income or other financial difficulties.
• Article 270: Distribution of Taxes
• This article deals with the distribution of taxes between the Centre and the States.
• The divisible pool of taxes includes all central taxes except surcharges and cesses.

2. POLITY

A 16 POINT DOCUMENT ON JUDICIAL VALUES WAS ADOPTED BY SC IN 1997

• Recent Controversy
• The propriety of Prime Minister Narendra Modi’s videographed visit to the residence of Chief Justice of India (CJI) D.Y. Chandrachud to participate in Ganesh puja has been questioned in light of this document.
• Observations from public fora and the legal fraternity have raised concerns about the implications of such interactions on the perceived impartiality of the judiciary.
• Statement by Campaign for Judicial Accountability and Reforms:
• The organization, represented by advocate Prashant Bhushan, emphasized that established practices of judicial conduct place importance on maintaining public confidence through probity in interactions between high constitutional functionaries. Restatement of Values of Judicial Life: A 16-Point Document Adopted by the Supreme Court in 1997
• In a Full Court Meeting held on May 7, 1997, the Supreme Court of India adopted a 16-point document titled “Restatement of Values of Judicial Life.”
• This document serves as an illustrative guide for the conduct and behavior expected of judges in the Supreme Court and High Courts. 
• It aims to reaffirm the public’s faith in the impartiality and integrity of the judiciary.
• Key Tenets of the Document
• Impartiality and Credibility:
• The behavior and conduct of judges must reaffirm the people’s faith in the impartiality of the judiciary. ○ Any act by a judge, whether in an official or personal capacity, that erodes this perception of impartiality must be avoided.
• Aloofness and Dignity: Judges are recommended to practice a degree of aloofness consistent with the dignity of their office.
• They must be conscious that they are under public scrutiny at all times and avoid any act or omission that is unbecoming of their high office.
• Public Confidence: The document emphasizes maintaining public confidence through probity in interactions between high constitutional functionaries.
• Judges must avoid situations that could lead to gossip or speculation about the institution

3. INTERNATIONAL

DOVAL MEETS PUTIN, WANG IN DUAL DIPLOMATIC MISSION

• High-Level Diplomacy:
• National Security Adviser (NSA) Ajit Doval met Russian President Vladimir Putin and Chinese Foreign Minister Wang Yi on the sidelines of the BRICS NSAs meeting in Saint Petersburg.
• Russia-Ukraine Conflict: Doval briefed Putin on Prime Minister Narendra Modi’s visit to Kyiv and his meeting with Ukrainian President Volodymyr Zelenskyy on August 23.
• The discussion is significant amid increasing calls from European countries for India to step up efforts in the peace process.
• BRICS Summit: Modi and Zelenskyy are expected to meet again at the UN Summit of the Future in New York later this month.
• Modi will attend the BRICS summit in Kazan on October 22-24, where a bilateral meeting with Putin is proposed.
• India-China Relations: Doval met Wang Yi to discuss the military disengagement on the Line of Actual Control (LAC) with urgency.
• Both sides agreed to work urgently to achieve complete disengagement in the remaining areas.
• The possibility of a meeting between Modi and Chinese President Xi Jinping in Kazan was also discussed.
• Statements: The Ministry of External Affairs emphasized that peace and tranquility at the borders and respect for the LAC are essential for normal bilateral relations.
• The India-China bilateral relationship is significant for both countries, the region, and the world.

4. NATIONAL

PARALYMPIANS MEET PM, INDIAN OIL ANNOUNCES SCHOLARSHIPS AT FELICITATION

• Programs and Scholarships for Athletes in India
• Paralympic Committee of India (PCI) Initiatives
• Road to Paralympics 2024 Program:
• Supported by Indian Oil Corporation (IOC) through an MoU signed in October last year.
• Includes support for para-athletes at the Asian Para Games and the World Para Shooting Championships, besides the Paris Paralympics.
• Indian Oil Corporation (IOC) Support
• Monthly Scholarships: IOC has announced the introduction of monthly scholarships for para-athletes.
• Medical Insurance: Para-athletes will receive medical insurance as part of IOC’s commitment.
• Sports Kits: Provision of sports kits to para-athletes. 3. Government Support
• Felicitations and Encouragement: Regular felicitations and encouragement from the government to motivate para-athletes.
• Prime Minister’s Support: Direct interaction and encouragement from Prime Minister Narendra Modi, who has been a constant source of support for para-athletes.
• Corporate Support: Sponsorships and Partnerships: Various corporates, including IOC, have partnered with PCI to support para-athletes through sponsorships and other initiatives

5. ECONOMY

COMMODITIES LIFT SENSEX, NIFTY TO NEW LIFETIME HIGHS

• Reasons for Record Highs in India’s Benchmark Indices
• Commodity Stocks Surge: Expectations of China cutting interest rates on mortgages to boost consumption led to a jump in commodity stocks.
• Nifty 50 and S&P BSE Sensex Performance: Both indices rose about 2%, hitting lifetime highs. Nifty ended 1.89% higher at 25,388.9, and Sensex rose 1.77% to 82,962.71.
• Year-to-Date Gains: The benchmarks have gained 17% (Nifty) and 15% (Sensex) this year, making them among the best-performing indices globally.
• Policy Continuity: Consistent government policies have contributed to market confidence.
• Strong Macroeconomic Outlook: Positive economic indicators and outlook have bolstered investor sentiment.
• Liquidity Surplus: An abundance of liquidity in the market has driven stock prices higher.
• Sectoral Gains: All 13 major sectors gained, with metals jumping about 3%, and energy and auto indexes gaining about 2%.
• China’s Expected Rate Cuts: Reports suggest China will cut mortgage rates starting in September to boost consumption, positively influencing global markets.
• Global Cues: Positive global market trends have also contributed to the rise.
• Impact on Liquidity and Commodities: A potential cut in China’s mortgage rates is expected to fuel global liquidity and rally commodities, as China is the world’s largest consumer of commodities.
• Anticipated Rate Cuts by Major Economies: Expectations of multiple rate cuts by major economies like the U.S. and European Union in the near term.
• Federal Reserve Rate Cut Odds: The probability of a 25-basis-point rate cut by the U.S. Federal Reserve on September 18 rose to 85%, according to CME FedWatch.

ONE LINER

1. Union Bank of India becomes 1^st major bank to become signatory of Partnership of Carbon Accounting Financials (PCAF)
2. Algeria’s membership in the BRICS New Development Bank (NDB) has been officially approved and became the institution’s ninth member