Daily Prelims Notes 4 February 2024

Daily Prelims Notes

4 February 2023

Table Of Contents

1. Dusted Apollo
2. India-made typhoid vaccine efficacy lasts for four years: study
3. Time to rethink, reimagine and reform legal systems
4. 30 Indian fugitives were located abroad in 2022: govt. Report
5. Axis of resistance
6. Skipping Enforcement Directorate(ED) Summon
7. Why is fiscal consolidation so important?

1. Dusted Apollo

Subject: Environment

Section: Species in news

In the news:

• The Dusted Apollo (Parnassius stenosemus), a rare high-altitude butterfly, was recently sighted and photographed for the first time in Himachal Pradesh, specifically during a trek to Manimahesh Lake in Chamba.

Details:

• This sighting is significant for the diversity of Apollo butterflies in the region, emphasizing its flourishing state.
• Discovered in 1890, the Dusted Apollo’s range spans from Ladakh to West Nepal, inhabiting altitudes between 3,500 to 4,800 meters in the inner Himalayas.
• This species, never before photographed in Himachal Pradesh, is distinguished from the Ladakh Banded Apollo by specific features like a complete discal band on the upper forewing and a narrower dark marginal band on the hind wings.
• The identification of the Dusted Apollo was confirmed after thorough scientific examinations.
• Additionally, the sighting of another rare species, the Regal Apollo (Parnnasius charltonius), was noted, which is protected under Schedule II of the Wildlife Protection Act, 1972.
• These sightings are an indicator of the region’s rich butterfly diversity and there is a need for immediate conservation efforts due to the endangered status of Apollo butterflies, which are also targeted by poaching.

Source: TH

2. India-made typhoid vaccine efficacy lasts for four years: study

Subject: Science and tech

Section: Health

Context:

• A phase-3 trial conducted in Malawi on children aged between nine months and 12 years has demonstrated that the “Typbar” typhoid vaccine, developed by Hyderabad-based Bharat Biotech, maintains its efficacy for at least four years.

Details:

• The trial, which is the first randomised, controlled, double-blind study of its kind in a typhoid fever-endemic setting.
• The vaccine’s efficacy ranges from 70.6% to over 79%.
• The study provides evidence of the vaccine’s long-term protection beyond 48 months, with minimal decline in efficacy over time, supporting its cost-effectiveness.
• It also notes the robust immune response induced by conjugated typhoid vaccines in individuals older than six months, mentioning two WHO-prequalified vaccines: Bharat Biotech’s Typbar TCV and Biological E’s Vi-CRM197.
• However, concerns about the potential rebound of Salmonella Typhi bacteria in vaccinated children due to waning protection suggest the need for further research on the vaccine’s long-term efficacy and the possible benefits of a booster dose, with an immunogenicity study of a booster dose currently underway in Malawi.

Typbar- Typhoid vaccine:

• Typbar TCV® is the world’s first clinically proven conjugate typhoid vaccine, notable for containing the polysaccharide of Salmonella typhi Ty2 conjugated to Tetanus Toxoid.
• This conjugation method enhances the immune response by eliciting T-dependent antibody responses, characterized by the production of high-affinity antibodies and the establishment of long-term immune memory, beyond the basic B cell responses elicited by the Vi capsular polysaccharide alone.
• Significantly, Typbar TCV® is the only typhoid vaccine approved for use in children and infants under 2 years of age.
• It has received WHO prequalification, underscoring its global importance in typhoid fever prevention.

About Typhoid fever:

• It is a serious infection caused by Salmonella Typhi, a bacterium transmitted exclusively through humans.
• It spreads via the fecal-oral route, commonly through contaminated food or water. Without treatment, 1 in 20 recovered individuals becomes a symptomless carrier, capable of infecting others for up to a year.
• Typhoid fever is prevalent in parts of Asia, Africa, the Caribbean, Central and South America, and the Middle East, posing a risk, especially to travellers.
• Symptoms of typhoid can range from mild to severe, including fever, fatigue, malaise, sore throat, persistent cough, and headache, lasting about a month without treatment.
• Prevention is possible through vaccination, available as a live, attenuated capsule for individuals over 6 years or an inactivated shot for those over 2 years, administered two weeks before travel. However, the vaccine’s effectiveness ranges from 50–80%.
• Treatment necessitates prompt antibiotic administration. The emergence of drug-resistant strains, however, threatens the efficacy of these treatments.
• Multi-drug-resistant (MDR) typhoid, which shows resistance to multiple antibiotic classes, has been a concern but has declined in Bangladesh and India since 2000, remained low in Nepal, and slightly increased in Pakistan.
• A newer threat is Extensive Drug Resistance (XDR) typhoid, resistant to at least five classes of antibiotics, observed in India, Bangladesh, Nepal, and Pakistan, posing a significant public health risk.

Source: TH

3. Time to rethink, reimagine and reform legal systems

Subject: Polity

Section: National body

Context:

• Prime Minister Narendra Modi underscored the need to “rethink, reimagine and reform” legal systems even as Chief Justice of India D.Y. Chandrachud pointed  out that government law officers should remain impervious to the politics of the day and conduct themselves with dignity in court.

Attorney General of India

• Under Article 76, The Constitution of India has provided for the office of the Attorney General (AG) for India.
• He is the highest law officer in the country.
• As a chief legal advisor to the government of India, he advises the union government on all legal matters.
• He is also the primary lawyer representing the Union Government in the Supreme Court and High Court of India.
• The president has assigned the following duties to the AG:
  • To appear on behalf of the Government of India in all cases in the Supreme Court in which the Government of India is concerned.
  • To represent the Government of India in any reference made by the President to the Supreme Court under Article 143 of the Constitution.
  • To appear (when required by the Government of India) in any High Court in any case in which the Government of India is concerned.

About Solicitor General of India

• Law Officer (Conditions of Service) Rules, 1987 provides for the functions of Law Officer which includes the Attorney-General for India, the Solicitor- General for India, Additional Solicitor-General for India. Unlike the AG, Solicitor General’s duties and functions are not provided in the Constitution of India.
• He is the secondary law officer of India after then attorney General of India and assists the AG in performing his responsibilities.
• Under the Conditions of Service Rules, Law Officer including the Solicitor General is appointed for a period of 3 years and can be re-appointed.

Duties of Solicitor General Law Officer of India

• Give advice to the Government of India upon such legal matters, and perform legal duties which may be referred or assigned by the Government of India.
• Appear in the Supreme Court or in any High Court on behalf of the Government of India in cases including suits, writ petitions, appeal and other proceedings in which the Government of India is concerned as a party or is otherwise interested.
• Represent the Government of India in any reference made by the President to the Supreme Court under Article 143 of the Constitution.
• Discharge such other functions as are conferred on a Law Officer by or under the Constitution or any other Law for the time being in force.

Additional Solicitor General of India

• The Additional Solicitor General of India, also known as the ASG,  is the third-ranked law-officer in the Indian government.
• The post of ASG is not constitutional as the constitution does not have any provisions regarding this. 
• The seat of the Additional Solicitor-General of India may be at New Delhi or Mumbai or Chennai or Allahabad as the Government of India specifies.
• The post of ASG is governed by Law Officers (Conditions of Service) Rules, 1987.

Advocate General

• Under Article 165 of the Constitution of India the Governor of each State shall appoint a person who is qualified to be appointed as a Judge of a High Court to be Advocate General for the State.
• The Advocate General is the Highest legal officer in the state in India.
• He possesses the complete authority to present himself in any court within the state.
• He lacks voting privileges in the proceedings of the state legislature or any committees initiated by the state legislature. However, he does retain the right to speak and participate in these proceedings.

4. 30 Indian fugitives were located abroad in 2022: govt. Report

Subject: Polity

Section: National body

Context:

• As many as 278 fugitives wanted in other countries were located in India in 2022, says the Department of Personnel and Training (DoPT), 2022­-23 annual report.
• Interpol shared 304 reports on “foreign terrorist fighters” with the Central Bureau of  Investigation(CBI) in 2022.
• The reports received by the CBI are forwarded to the Multi Agency Centre (MAC) under the Intelligence Bureau and the National Investigation Agency(NIA).

Fugitive Economic Offender

• A fugitive economic offender, according to the Fugitive Economic Offenders Act of 2018 (FEO), is one who has committed one or more scheduled crimes involving 100 crore rupees or more and has either fled India or refuses to return in order to evade or face criminal punishment. 
• The act allows for the confiscation of the properties of fugitive economic offenders and creates a mechanism for their speedy trial. The act aims to tackle economic offenses and prevent financial fraud.

What is Letters Rogatory (LR)?

• The term ‘Letters Rogatory’ is derived from the Latin term rogatorius. Letters Rogatory are the letters of request sent by the Court of one country to the Court of another country for obtaining assistance in investigation or prosecution of a criminal matter.

What is Mutual Legal Assistance?

• Mutual Legal Assistance is a mechanism whereby countries cooperate with one another in order to provide and obtain formal assistance in prevention, suppression, investigation and prosecution of crime.
• This ensures that the criminals do not escape or sabotage the due process of law for want of evidence available in different countries.
• The Ministry of Home Affairs is the Central Authority of India for dealing with requests of mutual legal assistance in criminal matters.
• The Central Authority transmits and receives all requests for assistance either directly or through diplomatic channels.
• The Mutual Legal Assistance Treaties (MLATs) in criminal matters are the bilateral treaties entered between the countries for providing international cooperation and assistance.

5. Axis of resistance

Subject: IR

Section: Int grouping

What is the axis of resistance?

• The term “Axis of Resistance” typically refers to a geopolitical and strategic alliance among certain countries and groups in the Middle East that share common goals and interests.
• The axis often opposes what its members perceive as external interference, particularly from Western powers, and advocates for self-determination, sovereignty, and resistance against perceived occupation.
• The alliance is characterised by a shared opposition to certain foreign policies, especially those of the United States and its allies in the region.
• The key components of the Axis of Resistance include countries like Iran, Syria, and groups such as Hezbollah in Lebanon.

THE ISLAMIC RESISTANCE IN IRAQ

• An umbrella group of hardline Shi’ite Muslim armed groups close to Iran, the Islamic Resistance in Iraq claimed an attack near the Syrian-Jordanian border around the same time U.S. officials said their troops were targeted.
• They have claimed more than 150 attacks on bases housing U.S. forces in Syria and Iraq since October, leading to dozens of mostly minor injuries and drawing several rounds of U.S. strikes in response.

YEMEN’S HOUTHIS

• The Houthi movement, which controls large parts of Yemen, announced it had entered the conflict on Oct. 31, firing drones and missiles at Israel more than a thousand miles from their seat of power in Sanaa.

LEBANON’S HEZBOLLAH

• The heavily armed Lebanese group Hezbollah has been mounting near daily attacks on Israeli targets at the Lebanese-Israeli border since Oct. 8, prompting the heaviest exchanges of fire between the enemies since they waged full-scale war in 2006.
• Hezbollah says its attacks have helped to stretch the Israeli army while also uprooting tens of thousands of Israelis who have fled homes near the border. Israeli air and artillery strikes have also forced tens of thousands of Lebanese to flee.
• Founded by Iran’s Revolutionary Guards in 1982, Hezbollah has served as a model for other Tehran-backed groups across the region, and has also advised or trained some of them.
• Hezbollah is widely regarded as more powerful than the Lebanese state and shares Iran’s Shi’ite Islamist ideology.
• The United States designates Hezbollah as a terrorist organisation.

How did the axis of resistance emerge? 

• Following the Islamic revolution of 1979, Iran attempted to spread its ideology and political power throughout the Middle East.
• One of its methods for doing so was a network of violent proxies and allies spread over Iraq, Lebanon, Syria, Yemen, and other countries.
• Although not all members of this group share Iran’s Islamic fundamentalism-Sunni members do not even subscribe to its creed they do share common goals: rejecting Western influence and battling Israel.
• Iran’s Quds Force, a division of the Islamic Revolutionary Guard Corps, has long coordinated the axis.
• The force targets weak states. In 1982, it began training young Shia terrorists in Lebanon to harass Israeli soldiers occupying the country’s southern region.
• Throughout the 1990s, the Quds Force supplied major assistance to Palestinian Islamic factions, including Palestinian Islamic Jihad and Hamas.
• It also supported the Northern Alliance, a loose coalition in Afghanistan that opposed the Taliban takeover in 1996.
• In 2002, President George W. Bush warned of a new “axis of evil” that included North Korea, Iran, and Iraq.
• After the Libyan newspaper Al-Zahf al-Akhdar published a widely read editorial denouncing the word, some Arab and Iranian media began using the phrase “axis of resistance” to characterise the region’s burgeoning network of anti-American militias.
• The Quds Force began to extend its network in the late 1990s,following America’s invasion of Iraq in 2003, the Quds Force formed armed organisations in the country to combat American and British forces.

6. Skipping Enforcement Directorate(ED) Summon

Subject: Polity

Section: National body

What is ED?

• The Directorate of Enforcement (ED) is a multidisciplinary organisation tasked with investigating money laundering and breach of foreign exchange legislation.
• It is overseen by the Ministry of Finance’s Revenue Department.
• The Enforcement Directorate, the Government of India’s top financial investigation agency, operates strictly in accordance with the Indian Constitution and laws.

Where does the Genesis of ED Lie?

• Establishment in 1956: The Enforcement Directorate (ED) was established in 1956 as a specialised financial investigation agency.
• Under the Ministry of Finance: It operates under the Department of Revenue, Ministry of Finance, Government of India.
• Response to Economic Crimes: The creation of ED was prompted by the need for a dedicated agency to combat economic crimes and financial frauds.
• Foreign Exchange Regulation Act (FERA): The genesis of ED can be linked to the enactment of FERA in 1973, which marked a crucial step in regulating foreign exchange transactions and preventing illegal foreign exchange activities.
• Expansion of Role: Over time, ED’s role expanded beyond FERA, covering various legislations addressing economic offences, money laundering, foreign exchange regulation, and prevention of smuggling activities.
• Implementation of PMLA: With the enactment of the Prevention of Money Laundering Act (PMLA) in 2002, ED’s focus shifted towards combating money laundering and addressing the generation of black money.
• Comprehensive Legal Framework: ED plays a crucial role in implementing and enforcing a comprehensive legal framework to curb financial crimes and illicit financial activities.

Issues related to summon and arrest

• Power of Summons:
  • ED director or investigating officer can summon anyone under Section 50(2) of PMLA.
  • Attendance is compulsory for giving evidence or producing records during investigations.
  • Persons summoned must attend in person or through authorised agents, bound to state the truth and provide required documents.
• Deemed Judicial Proceedings:
  • Every proceeding under PMLA is considered judicial.
  • Statements made are treated as being on oath before a court.
• Non-Cooperation Consequences:
  • Refusal to appear after summons is considered non-cooperation and evasive.
  • Non-cooperation may be a ground for arrest, though not automatic.
  • Representation through an authorised representative is subject to summons specifications.
• Arrest Without Summons:
  • ED can arrest a suspect without prior summons if there are sufficient grounds.
  • Essential if the suspect could tamper with evidence or intimidate key witnesses.
• Case Example:
  • A cabinet minister in Maharashtra was arrested at the ED office in Mumbai in February 2022.
  • Arrest occurred without pending summons against him.
• Judicial Approval and Clarifications:
  • Various recent court judgments affirm ED’s legal powers.
  • Emphasise that non-compliance with summons may not automatically lead to arrest.
  • Section 19(1) of PMLA deals separately with arrest justification in writing based on material in possession.
  • Mere suspicion of potential arrest is not grounds for non-compliance with summons meant for producing documents and recording statements on oath.

7. Why is fiscal consolidation so important?

Subject: Economy

Section: Fiscal Policy

Why in the news?

Recently Union Finance Minister Nirmala Sitharaman announced during her Budget speech that the Centre would reduce its fiscal deficit to 5.1% of gross domestic product (GDP) in 2024-25.

What is the fiscal deficit?

• Definition: Fiscal deficit refers to the shortfall in a government’s revenue when compared to its expenditure.
  • When a government’s expenditure exceeds its revenues, the government will have to borrow money or sell assets to fund the deficit. 
• Fiscal surplus: When a government runs a fiscal surplus, on the other hand, its revenues exceed expenditure.
  • It is, however, quite rare for governments to run a surplus.
  • Most governments today focus on keeping the fiscal deficit under control rather than on generating a fiscal surplus or on balancing the budget.
• Difference Between debt and deficit: The fiscal deficit should not be confused with the national debt.
  • The national debt is the total amount of money that the government of a country owes its lenders at a particular point in time.
  • The national debt is usually the amount of debt that a government has accumulated over many years of running fiscal deficits and borrowing to bridge the deficits.
• GDP percentage: The fiscal deficit is generally expressed as a percentage of a country’s GDP since it is believed that the figure shows how easily the government will be able to pay its lenders.
  • In other words, the higher a government’s fiscal deficit as a share of GDP, the less likely its lenders will be paid back without trouble.
  • Countries with larger economies can run higher fiscal deficits (in terms of absolute numbers of money).

How does the government fund its fiscal deficit?

• Borrowing Mechanism:
  • Government borrows money from the bond market to fund its fiscal deficit.
  • Lenders, including private entities and central banks, compete by purchasing government-issued bonds.
• Central Bank’s Role:
  • Central banks like RBI are significant players in the credit market.
  • RBI may indirectly purchase government bonds in the secondary market from private lenders, creating fresh money through open market operations.
• Money Supply Impact:
  • RBI’s bond purchases can increase money supply, leading to potential inflation in the broader economy over time.
• Risk-Free Nature:
  • Government bonds are generally considered risk-free as the central bank can create fresh currency under extreme scenarios to repay lenders.
  • Governments find it relatively easy to borrow money from the market.
• Interest Rate Challenges:
  • Government faces challenges not in borrowing itself but in the interest rates it offers.
  • Worsening government finances lead to decreased demand for bonds, prompting the government to offer higher interest rates, increasing borrowing costs.
• Monetary Policy Influence:
  • Central bank lending rates, which were near zero pre-pandemic, have risen post-pandemic.
  • Higher central bank rates make it more expensive for governments to borrow, influencing the Centre’s efforts to reduce fiscal deficit.

Why does the fiscal deficit matter?

• Inflation Impact: A high fiscal deficit is directly linked to inflation, as the government may resort to using freshly issued money to cover the deficit. This can contribute to higher inflation rates.
• Pandemic Scenario: The fiscal deficit surged to 9.17% of GDP during the pandemic but has since improved and is expected to drop to 5.8% now.
• Market Perception: The fiscal deficit serves as an indicator of the government’s fiscal discipline. A lower fiscal deficit can enhance ratings for Indian government bonds, signalling responsible financial management.
• Borrowing Confidence: Funding more spending through tax revenues and borrowing less builds confidence among lenders, reducing the government’s borrowing costs.
• Debt Management: A high fiscal deficit can impact the government’s ability to manage overall public debt. The International Monetary Fund warned of potential risks, projecting India’s public debt to exceed 100% of GDP in the medium term, though the government contested this assessment.
• International Bond Market: Lowering the fiscal deficit may facilitate the government’s efforts to tap into the international bond market, making it easier to sell bonds overseas and access more affordable credit.

What lies ahead?

• Fiscal Deficit Target (2024-25):
  • The Centre aims to reduce the fiscal deficit to 5.1% of GDP.
  • Despite plans for increased capital expenditure and program spending.
• Revenue Source:
  • Majority of funding for spending plans come from tax collections.
  • Expects a significant 11.5% rise in tax collections for 2024-25.
• Expenditure Changes:
  • Planned reduction in fertiliser subsidy from ₹1.88 lakh crore (2023-24) to ₹1.64 lakh crore (2024-25).
  • Projected decrease in food subsidy from ₹2.12 lakh crore (2023-24) to ₹2.05 lakh crore (2024-25).
• Economic Growth Concerns:
  • Raising tax rates to boost collections may negatively impact economic growth.
  • Taxes can act as a dampener on overall economic activity.
• Fiscal Deficit Target Challenges:
  • Ambitious fiscal deficit targets may face challenges.
  • Uncertainty as government projections may not align with actual outcomes.

Fiscal Responsibility and Budget Management (FRBM) Act

• The FRBM Act, 2003, intends to bring transparency and accountability in the conduct of the fiscal and monetary actions of the government.
• The central government agreed to the following fiscal indicators and targets, subsequent to the enactment of the FRBMA
• Revenue deficit to be eliminated by the 31st of March 2009. A minimum annual reduction of 0.5% of GDP.
• Fiscal Deficit to be brought down to at least 3% of GDP by 31st of March 2008. A minimum annual reduction – 0.3% of GDP.
• The FRBM Act made it mandatory for the government to place the following along with the Union Budget documents in Parliament annually:
  • Medium Term Fiscal Policy Statement
  • Macroeconomic Framework Statement
  • Fiscal Policy Strategy Statement
• The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue and the total outstanding liabilities be projected as a percentage of gross domestic product (GDP) in the medium-term fiscal policy statement.
• Several years have passed since the FRBM Act was enacted, but the Government of India has not been able to achieve targets set under it. The Act has been amended several times.
• In 2013, the government introduced a change and introduced the concept of effective revenue deficit.
• This implies that effective revenue deficit would be equal to revenue deficit minus grants to states for the creation of capital assets.
• In 2016, a committee under N K Singh was set up to suggest changes to the Act.