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19th November 2024 (10 Topics)

19th November 2024

QUIZ - 19th November 2024

5 Questions

5 Minutes

Mains Issues

Context

The countries of the Global South are most adversely impacted by the food, fuel and fertiliser crisis caused by global conflicts and G20 must give primacy to their concerns and priorities, Prime Minister Narendra Modi said in an address on the first day of the 19th G20 summit in Rio de Janeiro, Brazil.

Key-highlights of the Summit

  • The 2024 Summit’s theme is ‘Building a Just World and a Sustainable Planet’.
  • PM Modi attended the 19th G20 Summit as a member of the Troika. India is part of the G20 Troika along with Brazil and South Africa.
  • On the sidelines of the summit, PM Modi engaged in bilateral discussions with various national leaders, including those from the United Kingdom, France, Italy, Indonesia, Norway and Portugal.
  • India’s G20 Presidency:Last year, India’s successful presidency elevated the G-20 to people’s G-20 and mainstreamed the priorities of the Global South into its agenda.
    • Induction of the 55-nation African Union as a permanent member of the G20 and managing to produce a leaders' declaration overcoming deep divisions over the Ukraine conflict were seen as major milestones of India's G20 presidency last year.

Major Points made by PM Modi

  • PM Modi highlighted how nations in the Global South face severe challenges from food, fuel and fertiliser shortages resulting from ongoing conflicts. During the session 'Social Inclusion and the Fight Against Hunger and Poverty', he highlighted the importance of reforming international institutions, stating that the G20 would strive towards this goal.
  • India’s initiatives to deal with hunger and poverty
    • India had pulled 250 million people out of poverty in the last 10 years and was distributing free foodgrains to 800 million people in the country. 
    • Around 550 million people are benefiting from the world’s biggest health insurance scheme.
    • Under the world’s largest crop insurance scheme, over 40 million farmers have received benefits worth 20 billion US dollars. Under the farmers scheme, assistance worth over 40 billion dollars has been given to 110 million farmers.
    • Institutional credit worth 300 billion US dollars is being given to farmers.
    • India is not only ensuring food security but also focusing on nutrition.
    • India believes in the approaches of 'Back to Basics' and 'March to Future.' That is why the country is emphasising on organic farming, popularising millets (known as Shree Anna in India) and encouraging climate-resilient crop varieties.

What is Global South?

  • The concept of the Global South emerged to designate developing, emerging or lower-income countries, mostly in the southern hemisphere, and replace the term "Third World" after the 1945-90 Cold War.
  • Global South includes a group of developing countries with diverse values, cultural traditions, development levels, and interests, mainly covering regions such as Asia, Africa, and Latin America.
  • In recent years, these countries have made significant progress in economic growth, technological innovation, environmental protection, and international cooperation, gradually becoming an important part of the global trend toward multipolarity, representing the collective rise of developing countries.
  • However, the Global South is facing issues like energy and food crises and the impact of the recession on the global economy. 
India’s approach to Global South
  • India, over the years played a catalytic role in reshaping the vision of the Global South. 
  • India provides a voice to the Global South Movement.
  • Whether on the question of climate change, energy transition, taking a stand on normative issues or protecting the Global South's interest, India played a proactive role in international forums over the years. 
  • At various climate Summits, India resisted the onslaught from the Global North and protected the interest of the Global South be it on the question of climate financing, limiting the emission norms, or highlighting the Global North’s responsibility as the historical polluter. 
Fact Box: G20
  • The G20 was launched after the 2007–08 financial crisis to include important emerging economies in talks that had been confined to the Group of Seven industrialized nations, and has become a key venue for economic and financial cooperation.
  • It represents around 85% of global GDP, over 75% of global trade and about two-thirds of the world population.

Mains Issues

Context

Union Finance Minister Nirmala Sitharaman addressed concerns about a potential slowdown in the Indian economy, seeking to reassure both domestic and global audiences that there was no cause for undue worry. Her remarks were made in the context of growing apprehension about weakening economic indicators, such as faltering urban demand and weak corporate results, which some analysts have linked to a "cyclical slowdown."

What is economic slowdown?

  • An economic slowdown refers to a period when the growth rate of a country's economy slows down significantly.
  • It is characterized by:
    • a reduction in economic activity, typically measured by lower GDP growth
    • weakening industrial output
    • faltering consumer demand
    • reduced business investment
  • In India’s case, a slowdown is marked by weak urban demand, poor corporate earnings, and a dip in high-frequency economic indicators, such as production and consumption, which some economists attribute to cyclical factors, rather than structural changes.
  • A slowdown may be temporary, or it could be part of a larger economic transition.

Cyclical Slowdown

Structural Slowdown

  • A cyclical slowdown occurs as part of the natural business cycle, driven by fluctuations in economic activity.
  • It happens when the economy slows after a period of rapid growth, often triggered by factors such as reduced consumer spending, lower business investment, or high inflation.
  • Characteristics:
    • Typically short-term.
    • Linked to economic cycles like recessions and expansions.
    • Often resolved when the cycle moves into a recovery phase.
  • Example: A slowdown during a recession, where demand falls, corporate profits decline, and unemployment rises, but the economy recovers as it moves out of the recession.
  • A structural slowdown is a more prolonged, deep-rooted slowdown that results from fundamental changes in the economy.
  • These changes can be due to shifts in industries, demographics, technological advancements, or global competition.
  • Characteristics:
    • Long-term or permanent in nature.
    • Caused by structural factors such as technological disruption, deindustrialization, or changes in the workforce.
    • Difficult to reverse without significant policy intervention or restructuring.
  • Example: An economy facing slow growth due to a decline in traditional industries (e.g., manufacturing) and the rise of automation or digital technologies that disrupt labor markets.

Prelims Articles

Context

Chief Justice of India (CJI) Sanjiv Khanna recused himself from hearing a petition alleging contempt against Delhi lieutenant governor (L-G) VK Saxena in his capacity as the chairperson of the Delhi Development Authority (DDA), citing a past association with him during a visit to Bihar jails. The contempt case relates to illegal tree felling in Delhi’s Ridge area.

What is Recusal?

  • Recusal refers to the voluntary withdrawal of a judge from hearing a case due to a potential conflict of interest or bias.
  • It ensures impartiality and maintains the integrity of the judicial process by preventing any perception of bias.
  • A judge may recuse themselves if there is a personal or financial connection to a party involved in the case, or if they have previously been involved in the case in a different capacity (e.g., having delivered a judgment as a High Court judge before being elevated to the Supreme Court).
  • The practice is guided by the principles of "nemo judex in sua causa" (no person should be a judge in their own case) and "justice must not only be done but must also be seen to be done."
  • Process for Recusal: There are two types of recusals:
  • Automatic Recusal: This occurs when a judge voluntarily decides to withdraw from a case without any request from the parties involved, typically due to an identified conflict of interest or bias.
  • Recusal Based on a Plea: In this scenario, a party to the case raises a plea for recusal, suggesting that the judge has a potential conflict of interest or personal bias that may affect their impartiality.
  • The decision to recuse rests solely with the conscience and discretion of the judge. No party can compel a judge to withdraw from a case.
  • There are no statutory rules governing the process.

Recusal in Foreign Jurisdictions

  • United States: Recusal in the U.S. is governed by Title 28 of the U.S. Code and the American Bar Association’s Model Code, with grounds including financial interest, prior involvement in the case, or a relationship with a party, and judges can also recuse themselves voluntarily (sua sponte).
  • United Kingdom: In the UK, judicial recusal is guided by the ‘real danger’ test (R v. Gough) based on evidence of bias, later modified to focus on the appearance of bias from the perspective of a fair-minded observer (Lawal v. Northern Spirit Ltd).

Prelims Articles

Context

India has activated the Chennai-Vladivostok maritime corridor and is now plans to connect at least two other east coast ports—Paradip and Vizag—with this maritime corridor.

About the route

  • The Chennai-Vladivostok sea route (Eastern Maritime Corridor) will cover a distance of about 5,600 nautical miles (about 10,500 km).
  • The Chennai-Vladivostok Maritime route connects Chennai on India’s east coast with Vladivostok, Russia’s eastern port city.
  • Vladivostok is the end point of the Trans-Siberian Railway, the fourth in terms of cargo turnover, and the first free seaport of the Far East.
  • The Vladivostok-Chennai route passes through the Sea of Japanpast the Korean peninsula, Taiwan and the Philippines in the South China Sea, past Singapore and through the Strait of Malacca, to emerge into the Bay of Bengal and then cuts across through the Andaman and Nicobar archipelago to Chennai.
  • Alternative to Red Sea: In view of the current Red Sea crisis, and increased travel time, which has also pushed up costs, the Vladivostok-Chennai maritime corridor is seen as a possible alternative.
    • The Red Sea route now takes 48 days or say, against which Vladivostok route will be 15 days max. The Red Sea route accounts for 50 per cent of Indian exports and 30 per cent of imports.
    • Domestic companies use the Red Sea route through the Suez Canal to trade with Europe, North American, Africa and also Middle East.

Need for a New Route

  • Limited Trade Between India and Russia: One of the key reasons for the limited trade between India and Russia, which has remained around USD 12-13 billion in recent years, is the lack of efficient connectivity.
  • Reduced Transportation Time: The proposed new route would significantly reduce transportation time to just 12 days, nearly one-third of the current time taken via the existing popular route from St. Petersburg to Mumbai.
  • Reduced Costs: The new route is expected to lower transportation costs by approximately 30%, making trade between the two countries more cost-effective.
  • Strategic Location of Chennai Port: Chennai Port, located on the Bay of Bengal, serves as an ideal gateway for trade with Southeast Asian nations such as Thailand, Vietnam, and Indonesia, further boosting India's regional presence.
  • Strategic Importance of Vladivostok: The Port of Vladivostok in Russia offers access to the resource-rich Far East region, opening up significant business opportunities in sectors like energy, mining, and technology for Indian businesses.

Present route

  • At present, the two countries are linked through the traditional European route which passes through Red Sea, Mediterranean Sea and Baltic Sea.
  • Operationalised in 2000, the circuitous route spans from the Nhava Sheva Port in Mumbai to the Port of St. Petersburg in Russia and goods take an average of 40 days to cover the distance of 8,675 nautical miles or about 16,000 km.
Far East
  • The Far East is the easternmost part of Russia.
  • The macro-region borders two oceans, the Pacific and the Arctic, and five countries — China, Japan, Mongolia, the United States and the DPRK.
  • Located on the Golden Horn Bay north of North Korea and a short distance from Russia’s border with China, the region extracts 98 per cent of Russian diamonds, 50 per cent of Gold, 14 per cent of Tungsten, and 40 per cent of fish and seafood and has about one-third of Russia’s coal reserves.

Prelims Articles

Context

Delhi’s worsening air quality has brought the state's action under scrutiny. The Supreme Court reprimanded the Delhi government for delay in implementing stage 4 measures under the Graded Response Action Plan (GRAP-4).

Delhi’s Air Emergency

  • Delhi's air quality Index (AQI) — a measure of the severity of air pollution based on the levels of five toxins — shot up to 499 in some places.
  • That meant a categorization of
    • "severe plus" on India's System of Air Quality Forecasting and Research (SAFAR) scale
    • "hazardous" under the S. AQI measurement system
  • India's pollution control authority has classified the air in Delhi as "severe plus", after the city passed 450 according to its measurements
  • According to the WHO, air with AQI values above 300 are considered to be hazardous for health.
  • India's Commission for Air Quality Management had implemented stage 4 of the Graded Response Action Plan (GRAP) — bringing the strictest emergency measures offered to mitigate the impacts and try to reduce pollution.

Why is Delhi air so bad?

  • Delhi’s air quality suffers from several causes including emissions from industries, construction sites and thermal power plants.
  • Overpopulation also contributes to higher pollution, with more vehicles and waste adding to the problem.
  • Pollution: Many of the city's older vehicles release harmful gases, and construction work generates dust, especially in dry conditions.
  • Stubble burning: Farmers in neighbouring states like Punjab, Haryana, and Uttar Pradesh burn crop stubble, releasing large amounts of smoke into Delhi’s air.
  • Winter season: In winter, cold weather traps pollutants, causing smog to linger. Although emissions remain similar throughout the year, pollution and hazardous air quality worsen in Delhi-NCR during winter months. This can be attributed to multiple factors including
    • temperature inversion in which a layer of cool air forms near the ground, trapping pollutants and preventing them from dispersing
    • low wind speeds during the winters reduce the dispersion of pollutants
  • As Delhi's AQI worsens to 'severe plus,' GRAP IV measureshave been enforced. First implemented in 2017, the GRAP outlines anti-pollution actions based on the severity of air quality. These include tighter pollution controls, a truck entry ban, and the suspension of public construction projects.

Fact Box:

Commission for Air Quality Management (CAQM)

  • CAQM is a statutory body.
  • It is established under the Commission for Air Quality Management in National Capital Region (NCR) and Adjoining Areas, Act 2021.
  • Its main task is to manage air quality in Delhi and its surrounding areas, has been working to implement stricter measures each year to curb pollution in the national capital.

Graded Action Response Plan (GRAP)

  • GRAP (Graded Action Response Plan) is a set of measures introduced by the government to combat air pollution in Delhi and its surrounding areas during the winter season. It operates in four stages, depending on the AQI level:
    • Stage I (AQI 201-300) - Poor air quality
    • Stage II (AQI 301-400) - Very Poor air quality
    • Stage III (AQI 401-450) - Severe air quality
    • Stage IV (AQI >450) - Severe Plus air quality
  • When the AQI falls in the Severe range (401-450), Stage III measures are activated. These measures aim to reduce pollution levels and minimize exposure to harmful air quality.
  • Implementing Agency: The Commission for Air Quality Management (CAQM) in NCR and adjoining areas oversees the implementation of GRAP.
    • It collaborates with the Ministry of Environment, Forest and Climate Change (MoEFCC).

Air Quality Index

  • The Air Quality Index (AQI) is issued by government agencies to gauge air pollution levels and communicate risks to the public.
  • It indicates how air pollution can affect health, with higher AQI values indicating more severe health concerns.
  • The AQI is calculated based on air pollutant concentrations over a specific period, and the results are categorised into ranges with corresponding health advisories.
  • According to the AQI scale, the air quality check between
    • 0 and 50 is "Good"
    • 51 and 100 "Satisfactory"
    • 101 and 200 "Moderate"
    • 201 and 300 "Poor"
    • 301 and 400 "Very Poor"
    • 401 and 450 "Severe"
    • over 450 as "Severe +”

Prelims Articles

Context

African penguins could be extinct by 2035, if not saved. At present there are fewer than 20,000 birds left in the wild.

About

  • They are found only in Namibia and South Africa. 
  • Protection:African penguins have been protected under South Africa’s Sea Birds and Seals Protection Act since 1973 (and more recently under the Marine Threatened or Protected Species Regulations since 2017).
  • They have pink glands above their eyes that they can send blood to help cool down in the summer heat. The hotter a penguin is, the pinker its eyebrow glands become.
  • African penguins live in large colonies. They spend their days at sea feeding and their nights gathered together on shore. 
  • They are excellent swimmers with perfectly streamlined bodies. They can swim up to 12 mph.
  • They are monogamous, meaning they have one partner throughout their life.

Fact Box: Penguins

  • Penguins are flightless birds often associated with cold temperatures and icy habitats. 
  • All penguins live south of the equator, from the icy waters of Antarctica to the tropical Galapagos Islands off the coast of Ecuador, almost astride the equator.
  • Penguins are specialized marine birds adapted to living at sea.
  • There are 18 penguin species.
    • emperor – Aptenodytes forsteri
    • king – Aptenodytes patagonica
    • Adélie – Pygoscelis adeliae
    • gentoo – Pygoscelis papua
    • chinstrap – Pygoscelis antarcticus
    • northern rockhopper – Eudyptes moseleyi
    • southern rockhopper – Eudyptes chrysocom
    • macaroni – Eudyptes chrysolophus
    • royal – Eudyptes schlegeli
    • Fiordland crested – Eudyptes pachyrhynchus
    • erect-crested – Eudyptes sclateri
    • Snares Island – Eudyptes robustus
    • yellow-eyed – Megadyptes antipodes
    • fairy (little blue) – Eudyptula minor
    • Magellanic – Spheniscus magellanicus
    • Humboldt – Spheniscus humboldti
    • African – Spheniscus demersus
    • Galapagos – Spheniscus mendiculus
  • The Antarctic Treaty legally protects all Antarctic penguins.

Prelims Articles

Context

SpaceX successfully launched the Indian Space Research Organisation’s (ISRO) GSAT-N2 communication satellite from the Cape Canaveral Space Force Station in Florida. This launch marks a significant milestone in India’s space collaboration with the global space technology giant, SpaceX.

Key Highlights of the Launch

  • It is India’s first commercial collaboration with SpaceX.
  • The GSAT-N2 satellite was successfully placed into a geosynchronous transfer orbit.
  • GSAT-N2, developed by ISRO's Satellite Centre and Liquid Propulsion Systems Centre, offers a data transmission capacity of 48 Gbps.
  • It is designed to improve broadband services, in-flight connectivity, and support India’s Smart Cities Mission.
  • The satellite will operate for 14 years and includes 32 user beams, enhancing communication networks across India, especially the Northeast region.
  • For this mission, the Falcon 9’s first-stage booster completed its 19th flight. This booster has previously supported a variety of missions, including Starlink launches, SES-22, Amazonas-6, and others, proving its reliability.
  • Falcon 9’s established reliability, reusability, and capability to carry heavy payloads made it the ideal choice for launching the GSAT-N2 satellite, as India’s own LVM-3 rocket could not handle the 4,700 kg payload of the GSAT-N2.

About the Rocket (SpaceX's Falcon 9)

  • The Falcon 9 is a reusable, two-stage rocket designed and manufactured by SpaceX to efficiently transport payloads into Earth orbit and beyond.
  • It is the world’s first orbital-class reusable rocket, making space access more cost-effective by enabling the reuse of its most expensive components.

Editorials

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Context

Prime Minister Narendra Modi’s visit to Nigeria and his ongoing trips to Brazil for the G-20 and Guyana highlight India’s commitment to strengthening ties with the Global South, especially Africa. The visit marks a significant step in reinforcing India’s strategic and economic partnerships.

Prime Minister Modi's Visit to Nigeria: Key Highlights

  • Strengthened Bilateral Ties: Modi and Nigerian President Bola Tinubu reaffirmed the 2007 strategic partnership, focusing on defence and security cooperation.
  • Diplomatic Recognition: Modi received Nigeria's highest civilian honor, the Grand Commander of the Order of the Niger, dedicating it to the people of India and their historical ties.
  • Economic and Diaspora Connections: India’s $27 billion investment in Nigeria, along with its 60,000-strong diaspora, boosts cooperation in healthcare, agriculture, and energy.

India’s Commitment to the Global South: Challenges and Plans

  • South-South Cooperation: India’s engagement with African nations reflects its focus on shared development and security concerns, particularly through the VoGS initiative.
  • VoGS Participation Issues: Despite India’s leadership in the VoGS, the summit saw low participation. India may consider transferring hosting to the G-20 chair for better engagement.
  • India-Africa Forum Summit: The India-Africa Forum Summit, last held in 2015, is expected to be convened in early 2025, reinforcing India’s diplomatic and development priorities in Africa.

Practice Question

Q. Discuss the significance of India’s diplomatic engagement with African countries and its role in the Global South, with reference to its leadership in the Voice of the Global South and the India-Africa Forum.

Editorials

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Context

The state of Manipur has been witnessing ongoing ethnic violence since May 2023, with no sign of it abating despite several interventions by the Union government. The violence has led to widespread destruction, deaths, and displacement, triggering a debate on whether the President should invoke Article 356 to dissolve the state government and impose central rule. The Supreme Court’s role in addressing the crisis has been scrutinized, with calls for immediate intervention from the President to restore peace.

Emergency Provisions and Centre-State Relations:

  • Article 356 and Centre-State Relations: Article 356 of the Indian Constitution allows the President to impose President’s Rule in a state if the government in the state is unable to function according to the Constitution. This provision can be invoked even without a report from the Governor, based on the President's satisfaction. Such interventions, however, affect the delicate balance of federalism and often lead to friction between the Centre and the states.
  • Constitutional Responsibility: During the Constituent Assembly debates, leaders like B.R. Ambedkar and Alladi Krishnaswami Ayyar defended the necessity of Article 356 to ensure that the Constitution’s provisions are maintained and that the Union government can step in when a state’s administration fails. The duty to uphold the Constitution and maintain law and order is paramount, and the Union government is obligated to intervene when state machinery breaks down.
  • Implications on Federalism: The invocation of Article 356, though constitutionally valid, is often viewed as undermining the autonomy of states. Critics argue that such interventions are frequently politically motivated and may destabilize the functioning of state governments. The President’s role in this process is crucial, as it involves a balancing act between safeguarding national integrity and respecting state autonomy.

The Unique Situation in Manipur:

  • Unprecedented Violence in Manipur: The ongoing ethnic violence in Manipur has led to over 250 deaths and the displacement of more than 1 lakh people. Unlike previous insurgencies in North Eastern states, the violence in Manipur is primarily targeting ordinary civilians, pushing them to not only become victims but also participants in self-defense due to the collapse of law and order.
  • State Machinery Breakdown: Manipur presents a stark example of the failure of state governance, where law enforcement agencies have proven ineffective in controlling ethnic violence. Despite the central government's efforts under Article 355 to assist, the situation continues to worsen, showcasing the inadequacies of both state and central responses.
  • Calls for Immediate Central Intervention: Given the scale of violence and the inability of the state government to restore order, calls have emerged for the invocation of Article 356. Advocates argue that President's Rule could provide the necessary framework for the restoration of peace and stability, though it may be politically controversial and constitutionally sensitive.

Supreme Court's Role and Delayed Response:

  • Supreme Court’s Initial Intervention: The Supreme Court initially responded to a Public Interest Litigation (PIL), urging the Union government to maintain vigilance and address concerns related to relief and rehabilitation. Despite assurances, the Court's approach was cautious, with limited action to ensure immediate relief or justice for victims.
  • Suo Motu Action by the Court: In July 2023, the Court suo motu took notice of disturbing incidents, including the parading of women naked by mobs, which it condemned as gross violations of human rights. The Court demanded accountability from the government and sought proactive measures to prevent further abuses, but the violence persisted.
  • Ineffectiveness of Judicial Intervention: Despite multiple hearings and the Court's engagement, the situation in Manipur remains dire. The slow judicial process and the government’s failure to act decisively have led to questions about the effectiveness of the judiciary in enforcing constitutional rights and ensuring the protection of citizens in crisis situations.
Practice Question: 

Q. Evaluate the implications of invoking Article 356 in Manipur in the context of the failure of state machinery. How does the current crisis challenge the constitutional balance between central authority and state autonomy?

Editorials

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Context

The announcement of the successful pilot run of the Centralised Pension Payments System (CPPS) under the Employees’ Pension Scheme (EPS), 1995, comes at a critical time when lakhs of Employees’ Provident Fund Organisation (EPFO) members are awaiting higher pension payments. The new system will ease pension disbursement, but concerns remain regarding pending applications and other long-standing issues related to pension eligibility and fund sustainability.

CPPS and Its Benefits for Pensioners

  • Simplified Pension Distribution: The new CPPS will allow pensioners to collect their pension from any bank branch in India, without needing to open an account in a specified bank. Verification for pension commencement will also no longer be required.
  • Relief for New Pensioners: With the system launching nationwide on January 1, 2025, the CPPS aims to streamline the pension disbursement process, benefiting pensioners who were previously burdened by cumbersome account and verification requirements.
  • Pending Issues with Higher Pension Applications: While the CPPS is a positive step, the EPFO continues to delay processing pension applications for higher wages. As of August 2023, about 1.3 million applications were still pending, with only a few pension payment orders issued.

Key Issues in Higher Pension Processing

  • Slow Progress and Backlog: Despite the Supreme Court’s approval of pension on higher wages (for those exceeding the wage ceiling), the processing of related applications has been slow. As of August 2023, only 8,400 pension orders had been approved, leaving a large number of pending applications.
  • Challenges in Document Submission: Applicants face difficulties in providing old documents, such as pay slips from decades ago, which are often not available. Additionally, employers must transfer a portion of their savings to the EPFO to meet pension requirements, which complicates the process.
  • Pro-Rata Calculation and Eligibility Issues: The EPFO’s pro-rata calculation method and stringent conditions for retirees before September 2014 have made it difficult for many to access higher pensions. Moreover, retirees must submit consent for transferring pension corpus contributions, adding to delays.

Financial Sustainability and Future Recommendations

  • Fund Deficit and Sustainability Concerns: EPFO officials have cited an actuarial deficit of Rs 9,500 crore based on recent data, warning that this could affect the long-term sustainability of the pension fund and impact lower pension earners.
  • Positive Fund Growth Despite Deficit: Despite the projected deficit, EPFO’s 2022-23 annual report shows no cash flow issues in recent years. Contributions from employers and the Centre have risen, increasing the pension corpus by Rs 2.5 lakh crore in three years.
  • Need for Government Intervention: Experts recommend that the government set aside a one-time fund to address the deficit or increase the contribution rates to strengthen the pension fund. The EPFO and government should provide clarity on their plans to resolve the issue and expedite pension disbursement.
Practice Question

Q. Evaluate the challenges and potential solutions regarding the implementation of higher pensions under the Employees’ Pension Scheme, 1995, and discuss the role of the EPFO in ensuring the sustainability of the pension fund.

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