Current Affairs 6th Sep 2024 for UPSC Prelims Exam

Public Accounts Committee (PAC)

Context: The Public Accounts Committee will hold a performance review of regulatory bodies established by Act of Parliament.

About PAC

• Origin:
  • IIt was established in 1921 on the basis of the Government of India Act, 1919. (Montague-Chelmsford Reforms).
  • It is one of the oldest Parliamentary Committees in India.
• Composition: 22 members (15 from Lok Sabha + 7 from Rajya Sabha).
• Election method: Members of the committee are elected through a system of proportional representation by means of a single transferable vote.
• Chairman: Appointed by the Speaker from amongst members of the committee.
  • Since 1967, it has been a Parliamentary tradition to appoint the Chairman from the Opposition party.
• Tenure: 1 Year (Chairman & Members)
• Functions:
  • It is responsible for scrutinising the audit reports of the Comptroller and Auditor General (CAG).
  • It holds the government accountable for its financial decisions and actions.
  • It examines the accounts of state corporations and accounts of autonomous
  • and semi-autonomous bodies audited by CAG.
    • PAC does not examine reports of those public undertakings which are allotted to the Committee on Public Undertakings.

Loss and damage Fund

Context: Recently Kerala’s Wayanad District was hit by devastating landslides. A key discussion has emerged on whether subnational entities can seek compensation from the UNFCCC’s Loss and Damage Fund (LDF).

About Loss & Damage Fund

• It is a financial mechanism that helps developing countries to deal with the economic and non-economic loss and damage caused by climate change.
• Established: In COP-27 (Conference of Parties) of UNFCCC at Sharm El-Sheikh, Egypt
• Managed by: World Bank (Interim trustee for 4 Years)
• Objectives:
  • Supporting vulnerable nations
  • Addressing and compensating for losses and damages incurred due to climate change
  • Financing humanitarian assistance in the immediate aftermath of a disaster
  • Addressing medium– and long-term impacts of Climate Change

Critical Minerals Mission

Context: Recently Ministry of Mines organised a seminar to discuss objectives of Critical Minerals Mission

About Critical Minerals Mission

• It is a strategic initiative announced in the Union Budget 2024-25 to help India become self-reliant in critical minerals.
• The government has waived customs duty on 25 critical minerals and blister copper.
• Objectives of the Mission:
  • Streamline the supply chain of critical minerals by boosting domestic output and recycling of critical minerals like copper and lithium.
  • Reduce India’s import dependency on critical minerals, which is currently 100% for some elements
  • Identify critical minerals and plan for their acquisition and preservation.
  • Increase India’s capacity for refining and processing critical minerals and find substitutes for critical minerals through R&D.

Saturn & Its Rings

Context: Saturn’s rings will briefly disappear from Earth’s view in March 2025 due to an optical illusion.

Reason behind Disappearance

• This phenomenon occurs due to Saturn’s axis tilt (26.73 degrees).
• This occurs when Saturn’s rings align edge-on with Earth, making them appear invisible due to their thinness (tens of metres thick), reflecting minimal light.
• Every 13 to 15 years, the edge of Saturn’s rings aligns directly with Earth. It last occurred in 2009.
• Saturn takes 29.4-years orbit around the Sun.

Rings of Saturn

• Composition: The rings are made up of water ice, dust and other materials.
• Size: The pieces range in size from smaller than a grain of sand to the size of a mountain.
• Origin: The pieces are thought to be from comets, asteroids, or moons that were broken apart by Saturn’s gravity before reaching the planet.
• Thickness: The rings are generally about 30 feet (10 metres) thick.
• Rings: The main rings are A, B, and C, and the D ring is very faint and closest to Saturn.

Vertical Fiscal Imbalance (VFI)

Context: Many States have raised the demand that the share of tax devolution from the net proceeds must be fixed at 50% by the 16th Finance Commission.

What is VFI ?

• When different levels of government, like the central and state governments, don’t have a fair balance between the money they can raise and the responsibilities they need to pay for.
• This means one level might have more financial duties but less ability to generate revenue, creating an uneven situation.

Role of Finance Commision

• The 15th Finance Commission highlighted that States in India face a significant Vertical Fiscal Imbalance (VFI).
  • States incur 61% of the revenue expenditure but collect only 38% of the revenue receipts.
  • This imbalance makes states rely heavily on the centre.
• The 14th and 15th FC recommended devolving 42% and 41% of net proceeds to states.
• However, estimates suggest that an average share of 48.94% was necessary between 2015-2023 to eliminate the VFI.

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