Overview:

The 72nd Plenary of the North Eastern Council (NEC), concluded in Agartala, Tripura, marking the second time the city hosted this significant event since 2008. The plenary featured a series of high-level discussions focused on accelerating development and addressing the socio-economic challenges of the North Eastern Region (NER), which includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

Key Highlights:

• Pre-Plenary Technical Sessions: Central ministries presented their developmental agendas for the NER, charting a path forward for the region's growth and addressing key challenges.
• Main Plenary:
  • Presiding Officers: The session was chaired by the Union Home Minister and NEC Chairman, Shri Amit Shah, along with DoNER Minister, Shri Jyotiraditya M. Scindia, and Minister of State, Dr. Sukanta Majumdar.
  • Participants: Governors, Chief Ministers, Chief Secretaries, Planning Secretaries, and high-ranking officials from all eight northeastern states will engage in strategic discussions to foster regional development.
• Agartala as Host:
  • Agartala's selection as the venue signifies the evolving role of the city in regional development, as plenary sessions are usually held in Shillong and Guwahati.
• Significance of the NEC:
  • The North Eastern Council (NEC), established in 1971, plays a pivotal role in the socio-economic development of the region. It was initially an advisory body but has evolved into a regional planning agency with a larger mandate.
  • The NEC has contributed significantly to the development of critical infrastructure in the region, such as over 11,500 kilometers of roads, power generation through NEEPCO, and educational institutions like RIMS.
• Prime Minister's Vision for the NER:
  • The Prime Minister’s vision for the region revolves around recognizing it as 'Ashta Lakshmi'—symbolizing immense potential and cultural richness. The NEC is central to realizing this vision through initiatives like the PM-DevINE scheme.

Key Achievements of the NEC:

• Over 11,500 kilometers of road construction, improving regional connectivity.
• Increased power generation capacity via projects managed by NEEPCO.
• Established institutions like the Regional Institute of Medical Sciences (RIMS) and others that cater to regional educational and technical needs.

Recent Focus and Shift in Governance:

• In the 72nd Plenary, the Union Home Minister highlighted a shift in the focus of police forces in northeastern states, urging them to focus not just on insurgency control but on ensuring the constitutional rights of citizens, reflecting a new governance phase in the region.

In News:

The Reserve Bank of India's (RBI) report titled "State Finances – A Study of Budgets of 2024-25" provides a comprehensive analysis of the fiscal position of Indian states.

Key Highlights

• States' Performance Post-Pandemic

• Improved Tax Revenue: The average tax buoyancy has increased significantly from 0.86 (2013-2020) to 1.4 (2021-2025), reflecting enhanced tax collection efficiency.
• Capital Expenditure: There is a consistent rise in capital expenditure, which increased from 2.4% of GDP in 2021-22 to 2.8% in 2023-24 and is budgeted at 3.1% in 2024-25. This indicates a growing focus on investment in infrastructure like highways and bridges.

• Fiscal Discipline and Debt Levels

• Gross Fiscal Deficit (GFD): The gross fiscal deficit is projected at 3.2% of GDP in 2024-25, a slight increase from 2.9% in 2023-24.
• Debt-to-GDP Ratio: While states' debt-to-GDP ratio decreased from 31.0% in March 2021 to 28.5% in March 2024, it remains higher than the pre-pandemic level of 25.3% in 2019.

• Increased Borrowing and Debt Pressure

• Market Borrowings: States' reliance on market borrowings has increased, accounting for 79% of the GFD in FY25. Gross market borrowings surged by 32.8%, totaling Rs 10.07 trillion in FY23-24.
• Electricity Distribution Companies (DISCOMs): Continued losses in DISCOMs, accumulating Rs 6.5 lakh crore by 2022-23 (2.4% of India's GDP), continue to strain state finances.

• Rising Subsidy Burden

• Many states are offering subsidies and loan waivers, such as farm loan waivers and free services (electricity, transport, etc.), which risk diverting funds away from critical infrastructure projects. This includes significant subsidies for income transfers to farmers, women, and youth.

• Fiscal Transparency Concerns

• Revenue Generation Issues: Revenue growth from non-tax sources and central grants is slowing. The pace of State Goods and Services Tax (SGST) growth has also slowed down, which impacts overall state revenues.
• Lack of Fiscal Transparency: Inadequate reporting of off-budget liabilities obfuscates the true fiscal position, leading to a lack of clarity and accountability in state finances.

Recommendations by the RBI

• Debt Consolidation: States are encouraged to create clear and transparent debt reduction paths, with consistent reporting of off-budget liabilities to improve fiscal accountability.
• Expenditure Efficiency: Focus on outcome-based budgeting, ensuring funds are directed towards productive and sustainable investments, particularly in climate-sensitive areas.
• Subsidy Rationalization: States should contain and optimize subsidies to ensure they don't overshadow essential growth-promoting expenditure.
• Efficient Borrowings: Reduce over-reliance on market borrowings to control fiscal deficits and minimize financial risks.
• Revenue Generation: Improve collection mechanisms for SGST, strengthen non-tax revenue sources, and increase grants to reduce dependence on borrowings.

Balancing Subsidies and Fiscal Discipline

• Importance of Subsidies: Welfare programs like subsidies for healthcare, food security (e.g., Public Distribution System), and LPG connections (e.g., Pradhan Mantri Ujjwala Yojana) play a crucial role in human development and economic equality by supporting vulnerable populations.
• Importance of Fiscal Discipline: Excessive welfare spending without corresponding revenue generation can lead to high deficits and public debt, threatening long-term fiscal stability. Maintaining fiscal discipline ensures sustainable public finances, promotes investor confidence, and supports economic growth.

In News:

Green fixed deposits (FDs) are a type of investment scheme offered by banks and financial companies, aimed at environmentally-conscious investors. They function similarly to traditional fixed deposits, where funds are locked in with a bank for a fixed tenure. The primary distinction between green and regular deposits lies in the allocation of funds. While regular deposits are pooled into a common fund, the funds from green deposits are exclusively allocated to projects that promote environmental sustainability.

Key Features of Green Fixed Deposits:

• Investment Purpose: The funds raised through green FDs are directed towards environmentally beneficial projects, such as renewable energy initiatives (solar and wind power), clean technology, organic farming, and energy-efficient infrastructure.
• Eligibility: Green deposits are available to various entities, including individuals, Hindu Undivided Families (HUFs), societies, clubs, non-profit organizations, and sole proprietorships.
• Interest Rates: The interest rates on green deposits may or may not differ from regular deposits, depending on the policies set by the lending institution. Some banks and financial institutions, like IndusInd Bank, Federal Bank, DBS Bank India, and HDFC Ltd., offer green deposits, with Bank of Baroda recently launching the BOB Earth Green Term Deposit with an interest rate of up to 7.15% per annum.
• Safety: Like regular fixed deposits, green deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the provisions of the DICGC Act, 1961, ensuring the safety of the investment.
• Overdraft Facility: Banks may offer overdraft facilities against green deposits, providing more flexibility to investors.
• Premature Withdrawal: If the investor chooses to withdraw the deposit before the agreed tenure (after six months), the green FD will be converted into a regular fixed deposit.
• Denomination: Green deposits are denominated in Indian Rupees only.

In News:

The Belagavi Session of 1924, marking its centenary in December 2024, holds significant historical and cultural value in India's freedom struggle. This session, the 39th All-India Congress session, was presided over by Mahatma Gandhi, the only instance he served as the Congress president. It took place in Belagavi, Karnataka, from December 26-27, 1924, amidst a growing momentum for India’s fight against British colonial rule.

Key Aspects of the Belagavi Session:

• Gandhi's Leadership: This was the only Congress session Gandhiji chaired, marking a pivotal moment in the freedom movement. His leadership emphasized non-violence, self-reliance, and unity among diverse groups, setting the stage for future movements like the Salt March and Quit India Movement.
• Focus on Social Change: Gandhi used the session to push for social reforms, including the abolition of untouchability, promotion of khadi (hand-spun cloth), and supporting village industries. These initiatives aimed to make Congress a movement for both political freedom and social upliftment.
• Promoting Hindu-Muslim Unity: Gandhi strongly advocated for Hindu-Muslim unity, recognizing its critical importance in the larger struggle for independence. His stance emphasized communal harmony during a time of social and political divisions.
• Cultural Impact: The session also featured musical performances, including contributions from Hindustani maestros like Vishnu Digambar Paluskar and Gangubai Hangal. The Kannada song “Udayavagali Namma Chaluva Kannada Nadu” became an anthem for the region's unification movement.
• Legacy: The session had a lasting impact, with initiatives such as promoting khadi, reducing Congress membership fees, and creating new avenues for peasant participation in the freedom movement. The Pampa Sarovara well, dug during the event, continues to provide water to parts of Belagavi.

Centenary Celebrations:

The centenary of the Belagavi Session is being celebrated with a range of events, including:

• A Congress Working Committee (CWC) meeting on December 26, 2024.
• A public rally with the theme “Jai Bapu, Jai Bhim, Jai Samvidhan.”
• Cultural events and exhibitions are also planned, including competitions, tableaux, and charkha marathons.

In News:

National Farmers' Day, also known as Kisan Diwas, is celebrated annually on December 23rd to honor the vital contributions of Indian farmers and commemorate the birth anniversary of Chaudhary Charan Singh, India's fifth Prime Minister. A passionate advocate for rural development and farmers' welfare, Charan Singh's policies laid the foundation for several reforms aimed at uplifting the agrarian economy. His contributions continue to inspire government initiatives that prioritize the welfare of farmers, fostering sustainable agricultural growth and ensuring food security for the nation.

The Legacy of Chaudhary Charan Singh

Chaudhary Charan Singh was born on December 23, 1902, in Noorpur, Uttar Pradesh. His deep understanding of rural issues and commitment to improving farmers’ lives earned him the title of "Kisan Leader". Throughout his political career, he championed reforms such as the Debt Redemption Bill (1939), which alleviated the financial burdens of farmers, and the Land Holding Act (1960), which promoted fair distribution of agricultural land. He also advocated for Minimum Support Price (MSP), and his policies laid the groundwork for NABARD and other farmer-centric institutions.

Significance of Kisan Diwas

Kisan Diwas highlights the importance of agriculture in India’s economy and employment, with farmers constituting nearly 50% of the workforce. The day emphasizes the need for policies that address farmers' challenges such as climate change, financial constraints, and technological adoption. It also serves as a reminder of the necessity to empower farmers through innovative solutions, financial security, and sustainable farming practices.

Key Government Initiatives for Farmer Welfare

The Indian government has launched several schemes to address the challenges faced by farmers and support their socio-economic upliftment:

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Provides direct income support to small and marginal farmers.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): Offers crop insurance to mitigate financial risks due to crop loss.
• Pradhan Mantri Kisan Maandhan Yojana (PM-KMY): A pension scheme for farmers to ensure long-term social security.
• Soil Health Card Scheme: Promotes efficient fertilizer use and soil health by providing farmers with personalized soil health reports.
• Farmer Producer Organizations (FPOs): These entities help farmers collectively access markets, reduce costs, and improve bargaining power.
• Modified Interest Subvention Scheme (MISS): Provides affordable credit to farmers, especially for agriculture-related activities.
• Kisan Credit Card (KCC): Helps farmers access timely credit for agricultural purposes at concessional rates.

Significant Budget Allocations and New Schemes

The government has drastically increased its budget allocation to the agriculture sector. From Rs. 21,933.50 crore in 2013-14, the budget has risen to Rs. 1,22,528.77 crore for 2024-25, underlining the government's commitment to farmer welfare and sustainable agricultural development.

Notable Initiatives:

1. Namo Drone Didi Scheme: This initiative, aimed at empowering Women Self-Help Groups (SHGs), supports the use of drones for agricultural purposes, including fertilizer and pesticide application, with 80% financial assistance.
2. Clean Plant Programme (CPP): Enhances the quality and productivity of horticulture crops by ensuring disease-free planting material.
3. Digital Agriculture Mission: Aims to modernize farming with digital infrastructure, including crop estimation surveys and e-agriculture platforms.
4. National Mission on Natural Farming (NMNF): Encourages chemical-free, sustainable farming practices.

Farmers' Role in Nation-Building

India’s agricultural sector not only sustains the livelihoods of millions but also contributes significantly to the country's GDP. In FY 2023-24, agriculture contributed 17.7% to the Gross Value Added (GVA). With over 54% of the country's land dedicated to agriculture, farmers are critical to food security and rural development.

In 2023-24, India achieved a record foodgrain production of 332.2 million tonnes, illustrating the resilience of Indian farmers in ensuring food availability despite challenges like climate change.