January 1, 2024 | Your One-Stop Solution for Daily Preparation
ESG | Explained
Explore India's dynamic corporate landscape, uncovering the evolving realm of ESG, sustainable finance, and global governance standards shaping modern businesses in today's insightful article.
Highlights of the Day
1. MGNREGA Aadhaar Mandate Sparks Deletions, Inequality in Wages: Activists Demand Reversal
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) now mandates wages to be paid through Aadhaar-based systems. Despite multiple deadline extensions, 34.8% of job card holders remain ineligible. Activists report mass deletions of 7.6 crore job cards due to Aadhaar discrepancies, spelling errors, or worker categorization. The government claims the decision not to extend is based on active workers, not job card holders. Critics argue this disproportionately denies work rights to over a third of registered workers. They demand revoking the Aadhaar mandate, reinstating deleted workers, and compensating for lost opportunities. The government asserts that Aadhaar-based payments will enhance efficiency and reduce rejections in MGNREGA wages [1].
2. Arvind Panagariya Appointed Chairman of Sixteenth Finance Commission
Arvind Panagariya, former Niti Aayog vice chairman, assumes the pivotal role of Sixteenth Finance Commission chair, responsible for devising the tax revenue sharing formula between the Centre and States for the 2026-2031 period. The Commission, with a deadline of October 2025, will analyze disaster management funding and propose ways to bolster resources for local governments. Ritvik Ranjanam Pandey joins as secretary. Previous commissions extended their tenures; this one aims to conclude its consultations within two years, shaping fiscal policies for the upcoming budget cycles [2].
3. Supreme Court's 2023 Constitution Bench Decisions and Their Implications
In 2023, the Supreme Court convened Constitution Benches for major cases like Article 370, same-sex marriage, and demonetization. Despite reduced case numbers, outcomes disappointed many petitioners as court directions were subverted or cases outright failed. Chief Justice led numerous sessions, delivering judgments, yet some cases, like demonetization and Article 370, left fundamental questions unanswered. Notably, the LGBTQ community faced rejection on legalizing same-sex marriage. Government actions often circumvented or nullified Constitution Bench rulings, impacting issues like election commissioner appointments and Delhi's governance. The year ended with pending decisions, reflecting ongoing uncertainties in key matters [3].
4. Indian Markets Witness Record FPI Inflow of Rs 1.7 Lakh Crore in 2023
Foreign Portfolio Investors (FPIs) poured Rs 1.7 lakh crore into Indian equity markets in 2023, marking a substantial uptick with Rs 66,134 crore influx in December. Analysts predict robust FPI flows in 2024, potentially driven by declining US interest rates and upcoming general elections. The FPI trend shifted, with Rs 68,663 crore invested in debt markets this year after a significant 2022 outflow. Factors like India's economic outlook, political stability, and inclusion in global bond indices are attracting FPIs, with sectors like finance, IT, pharma, and energy standing out for investment [4].
5. Finance Ministry Gears Up for Final Grants Batch Ahead of Budget Session
The Finance Ministry requests expenditure proposals for the final batch of grants ahead of the budget session, the last before the 17th Lok Sabha elections. The government aims for expenditure approval until July 2024 through a vote on account. The second batch of grants for 2023-24, featuring cases like contingency fund advances and court decree payments, will be presented during the upcoming Budget session [5].
Source: The Hindu | TOI
Practice Questions for Prelims
Q1: Consider the following statements about Biomes:
1. The tundra biome is characterized by low temperatures, permafrost, and limited vegetation.
2. The grassland biome experiences high rainfall and supports dense forests.
3. The savanna biome is known for its distinct wet and dry seasons, supporting diverse wildlife.
Which statements are true?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Q2: Consider the following statements about Nanotechnology:
1. Nanotechnology deals with the manipulation of matter at the atomic and molecular scale.
2. Applications of nanotechnology include medicine, electronics, and environmental remediation.
3. Nanotechnology does not pose any ethical or safety concerns due to its scale of operation.
Which statements are true?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Q3: The 'Walker Circulation' is associated with the atmospheric circulation over which ocean?
a) Indian Ocean
b) Atlantic Ocean
c) Pacific Ocean
d) Southern Ocean
Q4: The Köppen climate classification system uses which of the following criteria to classify climates?
a) Temperature and humidity
b) Precipitation and temperature
c) Wind patterns and altitude
d) Latitude and longitude
Q5: The 'Consumer Price Index for Industrial Workers (CPI-IW)' in India is calculated by:
a) Ministry of Statistics and Programme Implementation
b) Ministry of Labour and Employment
c) Reserve Bank of India
d) Planning Commission of India (NITI Aayog)
Today’s Question for Mains Answer Writing
Discuss the significance of Environmental, Social, and Governance (ESG) criteria in modern corporate governance. How does the integration of ESG principles influence sustainable development and impact investment decisions in the global economy?
Need help in writing or evaluation?
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