DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 3rd July 2024
Archives (PRELIMS & MAINS Focus) SHOULD EDUCATION BE BROUGHT BACK TO THE STATE LIST? Syllabus Prelims & Mains – Polity , Education Context: With controversies erupting over the conduct of exams by National Testing agency (NTA), the question of whether education should be brought back to state list has arisen again. Background:- The NEET-UG exam has been embroiled in controversies over the award of grace marks, allegation of paper leaks and other irregularities. The government also cancelled the UGC-NET exam after it was held, while the CSIR-NET and NEET-PG exams have been postponed. Key takeaways The Government of India Act, 1935 during the British rule created a federal structure for the first time in our polity. The legislative subjects were distributed between the federal legislature (present day Union) and provinces (present day States). Education which is an important public good was kept under the provincial list. After independence, this continued and education was part of the ‘State list’ under the distribution of powers. However, during the Emergency, the Congress party constituted the Swaran Singh Committee to provide recommendations for amendments to the Constitution. One of the recommendations of this committee was to place ‘education’ in the concurrent list in order to evolve all-India policies on the subject. This was implemented through the 42nd constitutional amendment (1976) by shifting ‘education’ from the State list to the concurrent list. There was no detailed rationale that was provided for this switch and the amendment was ratified by various States without adequate debate. The Janata Party government led by Morarji Desai that came to power after Emergency passed the 44th constitutional amendment (1978) to reverse many of the controversial changes made through the 42nd amendment. One of these amendments that was passed in the Lok Sabha but not in the Rajya Sabha was to bring back ‘education’ to the State list. What are international practices? In the U.S., State and local governments set the overall educational standards, mandate standardised tests and supervise colleges and universities. The federal education department’s functions primarily include policies for financial aid, focussing on key educational issues and ensuring equal access. In Canada, education is completely managed by the provinces. In Germany, the constitution vests legislative powers for education with landers (equivalent of States). In South Africa, on the other hand, education is governed by two national departments for school and higher education. The provinces of the country have their own education departments for implementing policies of the national departments and dealing with local issues. Way forward : The arguments in favour of ‘education’ in the concurrent list include a uniform education policy, improvement in standards and synergy between Centre and States. However, considering the vast diversity of the country, a ‘one size fits all’ approach is neither feasible nor desirable. Further, as per the report on ‘Analysis of Budgeted expenditure on Education’ prepared by the Ministry of Education in 2022, out of the total revenue expenditure by education departments in our country estimated at ₹6.25 lakh crore (2020-21), 15% is spent by the Centre while 85% is spent by the States. Even if expenditure by all other departments on education and training are considered, the share works out to 24% and 76% respectively. The arguments against restoring ‘education’ to State list include corruption coupled with lack of professionalism. The recent issues surrounding the NEET and NTA have however displayed that centralisation does not necessarily mean that these issues would vanish. Considering the need for autonomy in view of the lion’s share of the expenditure being borne by the States, there needs to be a productive discussion towards moving ‘education’ back to the State list. This would enable them to frame tailor-made policies for syllabus, testing and admissions for higher education including professional courses like medicine and engineering. Regulatory mechanisms for higher education can continue to be governed by central institutions like the National Medical Commission, University Grants Commission and All India Council for Technical Education. Source: Hindu LIBERALISED REMITTANCES SCHEME (LRS) Syllabus Prelims & Mains – ECONOMY Context: Spending money overseas through credit card does not come under the liberalised remittance scheme limit yet, but it may change in the near future. As per a media report published recently, bringing credit card spend under the LRS is now on the government’s radar. Background: For the uninitiated, the finance ministry in May 2023 had brought credit card spending under the LRS limit. However, it was announced on June 28 that overseas spending using credit cards will beput on hold in order to give time to the banks to streamline their requisite IT systems. About LIBERALISED REMITTANCES SCHEME (LRS) Under the RBI’s Liberalised Remittance Scheme (LRS), all resident individuals are allowed to freely remit up to $2,50,000 in each financial year abroad for any permissible current or capital account transaction or a combination of both. This scheme was introduced on February 4, 2004, with a limit of $25,000. The LRS limit was later revised in stages consistent with prevailing macro and micro economic conditions. In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc. The remittances can be made in any freely convertible foreign currency.Permanent Account Number (PAN) is mandatory for all transactions under LRS. If government includes credit card spending under the LRS, credit card usersmay have to cough up 20 percent tax collection at source (TCS). Tax collected at source is the sum collected by the seller from the buyer at the time of sale so that it can be deposited with the tax authorities. TheTCS for foreign remittances under LRS was raised to 20 percent in Budget 2023 from the earlier rate of 5 per cent. This included international travel, sending money overseas, and other remittances. This new tax ratecame into force on Oct 1, 2023 which removed the threshold of ₹7 lakh for triggering TCS on LRS. These changes, however, are not applicable in case of education and medical expenses. Additional Information The legal
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