DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 12th February 2025
Archives (PRELIMS & MAINS Focus) INDIA’S CITIES AS ENGINES OF GROWTH Syllabus: Prelims – GS 2 & GS 3 Context: The Union Budget 2025, emphasised urban development as one of the six domains for transformative reforms. This renewed focus on urban areas points to the government’s commitment to empowering cities as a vital component of India’s development. Background: – By prioritising infrastructure investment, encouraging Urban Local Bodies to diversify their revenue streams, and fostering public-private partnerships, the budget lays the groundwork for greater financial autonomy and sustainable urban development. Key takeaways In the 2025-26 budget, the Ministry of Housing and Urban Affairs (MoHUA), has been allocated Rs. 96,777 crore, accounting for 1.91% of the total estimated expenditure. In recent years, budgetary allocation for urban development has seen a steady rise — from 50,000 crore in 2021 to 79,000 crore in 2024 and 96,777 crore in 2025. Several key schemes, such as Pradhan Mantri Awas Yojana (PMAY-Urban), which focuses on affordable urban housing; the Smart Cities Mission, which focuses on creating smart cities; and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which focuses on water and sanitation infrastructure, are recipients of these budgetary allocations. In recent years, allocations have also gone to urban transport projects, particularly Metro rail and Mass Rapid Transit projects. Moreover, to boost incomes for the urban poor, a revamp of the Prime Minister Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) – was also announced. The budget also announced “Urban Challenge Fund”. Under this fund, proposals shall be evaluated along three categories: “Cities as growth hubs, creative redevelopment of cities, and water and sanitation projects.” The fund will finance up to 25% of the cost of bankable projects, with a stipulation that at least 50% of the project cost is sourced from bonds, bank loans, or Public-Private Partnerships (PPPs). Structuring the Urban Challenge Fund to include private enterprise participation is a signal to empower Urban Local Bodies to raise their own sources of finance to fund projects. As the analysis by PRS Legislative Research points out, the majority of ULBs’ revenue comes from central and state government grants. Main revenue sources of ULBs The main revenue sources of ULBs can be primarily categorised as tax and non-tax revenues. Tax revenues mainly include property tax, professional tax, and entertainment tax, while non-tax revenues include user fees such as parking fees, water supply fees, license fees, and rental income from municipal property. For example, in the 2021-22 financial year, the Brihanmumbai Municipal Corporation (BMC) had 19% of its revenue from tax, 54% from fees and user charges, and the remaining from other sources of income. In comparison, the Greater Chennai Corporation (GCC) generated 80% of its income from tax sources and the remaining 20% from other sources of income. While large cities have a wider tax base and capacity to generate revenues, smaller cities have to rely on grants from central and state governments. For example, in 2021-22, 57% of Kochi Municipal Corporation’s revenue came from revenue grants, contributions, and subsidies. How urban local bodies raise funds The most prominent example of this is municipal bonds, where ULBs issue bonds. Ahmedabad Municipal Corporation was one of the first ULBs in India to issue a municipal bond to service its water and sanitation projects. ULBs can also raise loans from financial institutions such as HUDCO, the World Bank, etc., for specific projects. A glance at the database of public-private partnership projects in India shows that at least 5-10% of the total projects are urban projects in the fields of water-sanitation and transport. These projects not only bring private finance onboard, but also facilitate expertise and capabilities from the private sector. Source: Indian Express FOR SECOND YEAR, NO DEATH PENALTY PASSES SC TEST Syllabus: Prelims – GS 2 & GS 4 Context: Reflecting a divergence in decision-making on death penalty at different levels in the judiciary, the Supreme Court — for the second consecutive year — did not confirm a single death sentence in 2024 while trial courts awarded 139 such verdicts, according to a report by Project 39A, a criminal justice programme at the National Law University Delhi. Background: – The SC heard six appeals in 2024 — it commuted five death sentences to life imprisonment while one was acquitted. Key takeaways ‘Death Penalty in India: Annual Statistics Report 2024’, states that at the end of 2024, there were 564 death row prisoners in jails across India, the highest number since 2000. In 2024, of the 139 death sentences awarded by trial courts, 87 (62%) were imposed in murder cases and 35 (25%) in cases of murder involving sexual offences. This is a reversal from the previous year, when more death sentences were imposed in cases of murder involving sexual offences (59) than in simple murder cases (40). The total number of death row prisoners (564 in 2024) has risen every year since 2019, when there were 378 inmates on death row. In 2024, 17 women were on death row. The report attributes the high number of death row convicts to a trend of “high imposition of death sentences at trial courts, and the low rates of death penalty appeal disposals at High Courts”. Under Section 366 of the Criminal Procedure Code, 1973, and Section 407 of the Bharatiya Nyaya Suraksha Sanhita, 2023, death sentence proceedings must be forwarded to the High Court for confirmation before they can be executed. Source: Indian Express SHADOW FLEET BRINGS RISK OF OIL SPILL IN THE BALTIC Syllabus: Prelims & Mains – CURRENT EVENT Context: As ageing and deficient tankers in the “Russian shadow fleet” traffic the shallow waters of the Baltic Sea, a major oil spill disaster looms, experts say. Background: Security analysts say Russia is operating a large “shadow fleet” of hundreds of vessels, seeking to dodge the sanctions Western nations imposed on its oil exports over its full-scale invasion of Ukraine in 2022. Key takeaways A shadow fleet refers to a group of aging or unregistered vessels that operate outside standard maritime regulations to transport goods—especially sanctioned oil, arms, or illicit cargo—while avoiding detection and international
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