Days before the U.S. government’s debt default deadline, President Biden and House Speaker McCarthy reached an agreement in principle to raise the nation’s legal debt ceiling. 

What is the U.S. debt ceiling?

Origin of debt ceiling in US —

Ø  In 1917, Congress passed the Second Liberty Bond Act, to allow then-President to take out funds for the First World War without waiting for the approvals of absent Congress lawmakers.

Ø  However, the Congress created a limit on borrowing, thus creating a debt ceiling that could only be raised by approval of the Congress (House and Senate).

Ø  This ceiling was created to curtail the President’s spending capacity.

Debt ceiling in its current form —

Ø  The debt ceiling started to take its present-day form in 1939, when separate borrowing caps for bonds were consolidated into one debt ceiling.

Ø  At that time, it was set at $45 billion.

Ø  The U.S. government has hit or come close to hitting the debt ceiling multiple times.

Ø  While the government continues to receive taxation revenue after hitting the debt ceiling, it cannot borrow any more to pay its existing bills.

Current debt ceiling crisis -

Ø  The Democrats-led US government had in January hit its debt ceiling — the amount it is legally allowed to borrow for its expenses.

Ø  With no new money coming in, Treasury Department Secretary had warned that funds would run out by the first week of June 2023.

Ø  Since then, the Republican-dominated House of Representatives and President Biden’s White House have failed to reach a consensus to raise or suspend the debt ceiling.

Ø  This stalemate led to the current debt ceiling crisis in USA.

What will happen if the U.S. defaults?

If the debt ceiling is not raised once the government reaches the ceiling and runs out of cash, the U.S. would be unable to pay its debt-holders, resulting in a default.

Domestic payments —

In this case, the government would be unable to pay its bills including military salaries, benefits to retirees, and interest and other payments it owes to bondholders.

Global financial crisis —

Ø  If the government cannot make interest payments to domestic and foreign investors, it could plunge the globe into a financial crisis.

Ø  It would also increase the national debt, in turn causing widespread interest rate hikes for business owners, mortgages, and other sectors.

Ø  A drop in U.S. consumer confidence would translate to shocks in the financial market, tipping the economy into recession.

Ø  More than half of the world’s foreign currency reserves are held in U.S. dollars. Hence, a US default would affect the treasury markets around the world.

Ø  A loss of confidence in the U.S. economy could force investors to sell U.S. Treasury bonds, thus weakening the dollar.

Ø  A sudden decrease in the currency’s value could domino across treasury markets as the value of these reserves drops.

Downgraded creditworthiness of US —

A U.S. default could lead to another downgrade of U.S. creditworthiness by agencies which in turn would raise the cost of borrowing for the government.

Impact on economy —

It would result in large-scale job losses, weakening of the dollar, stock sell-offs.

Key points of the deal -

A cap and a raise —

Ø  Under the deal, the $31.4 trillion debt ceiling will be suspended until January 2025. Till then, the government can keep borrowing to fund itself.

Ø  In return, the White House has agreed to cap non-defence discretionary spending at 2023 levels in 2024, and increase it by 1% the year after.

Work requirements made stricter —

Ø  From the Democrat side, President Biden has agreed to increase work requirements for those who avail of government food stamps.

Ø  Supplemental Nutrition Assistance Program (SNAP) benefits are commonly known as food stamps.

Ø  Able-bodied adults between the ages of 18-49 and without dependents were subject to work requirements to maintain eligibility for SNAP benefits.

Ø  Under the current deal, the age limit will be raised to 54.

Ø  These requirements included actively seeking employment, participating in a suitable employment and training program, or working a minimum number of hours per month.

Streamlining energy projects approval —

The government has agreed to the Republican demand of a more streamlined system of approval for energy projects.

IRS, Covid fund —

Under the deal, the outlay the Biden government had secured for beefing up the Internal Revenue System (IRS) sees a cut.

Leftover Covid relief fund will be taken back, including that kept aside for tackling disasters.

The Union Health Ministry has recently urged State Governments to audit hysterectomy trends in public and private hospitals. This was done in response to a Supreme Court petition arguing that women from marginalised locations are at risk of unjustified hysterectomies for economic gains and exploitation.

Details -

Ø  A petition was filed in the Supreme Court with respect to hysterectomy.

Ø  The petition argued that despite the provisions, private hospitals in Bihar, Chhattisgarh and Rajasthan engaged in unethical practices and unnecessary procedures.

Ø  The petitioner argued that that women from marginalised locations are at risk of unjustified hysterectomies for economic gains and exploitation.

Ø  The Chief Justice of India, D.Y. Chandrachud, suggested that hysterectomies for those under 40 should be conducted on approval by two certified doctors.

Ø  The Supreme Court, while hearing the petition, gave a three-month deadline to States and Union Territories, directing them to implement the guidelines issued by the Ministry of Health and Family Welfare in 2022.

What is Hysterectomy?

Ø  A hysterectomy is a surgical procedure that removes the uterus (womb).

Ø  After surgery, woman can’t become pregnant and no longer menstruate.

Criteria for Getting a Hysterectomy -

Ø  After caesarean deliveries, hysterectomies are the second-most frequent procedure in women of the reproductive age group.

Ø  Reasons for this surgery include abnormal bleeding, uterine prolapse, fibroids and cancer.

Ø  In some cases, oophorectomy, the removal of ovaries (the primary source of oestrogen), is also frequently performed, which is a form of surgical menopause and linked to several chronic conditions.

Ø  The highest percentage of hysterectomies (51.8%) were to treat excessive menstrual bleeding or pain.

Ø  It's more common for women aged 40 to 50.

Health Risks Associated with Hysterectomy -

Ø  There is evidence about the long-term effects of hysterectomy – both with or without oophorectomy (removal of ovaries).

Ø  A 2022 study found a correlation between hysterectomy and chronic diseases including an increased risk of cardiovascular events, cancers, depression, metabolic disorders, and dementia.

Ø  In India, hysterectomies in women above 45 years of age were associated with hypertension, high cholesterol, diabetes and bone disease.

Hysterectomy in India -

Ø  The average age at which hysterectomies are conducted among Indian women is 34, per community-based studies.

Ø  In comparison, high income countries allow this procedure for women aged above 45.

Ø  Most surgeries happen in private hospitals (33,559 procedures) as opposed to government hospitals (11, 875).

Ø  A majority of these cases are reported among socially and economically disadvantaged women.

What measures has the government taken so far?

Union Health Ministry Guidelines –

Ø  The Union Health Ministry in 2022 issued guidelines to prevent unnecessary hysterectomies — listing possible indications of when hysterectomy may be required and alternative clinical treatments for gynaecological issues.

Ø  They recommended setting up district, State-level and national hysterectomy monitoring committees which to collect data on age, mortality, and occupations, among other details.

Ø  In particular, the guidelines emphasise that authorities should report hysterectomies conducted for women less than 40 years of age and incorporate the reason for hysterectomy.

Ø  All States and Union Territories were asked to adopt the Guidelines within three months and report compliance to MoHFW.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana –

The government’s flagship health insurance programme provides health cover of Rs. 5 lakhs for 1,949 procedures— including hysterectomies.

The government has authorised more than 45,000 hospitals to conduct these operations and also developed two standard treatment guidelines for hysterectomy-related procedures.

Blacklisting of certain Hospitals –

Under the Clinical Establishments (Registration and Regulation) Act, 2010, hospitals and healthcare facilities found to have coerced women into hysterectomies without informed consent can be blacklisted.

A Foucault pendulum that rotates on its axis is suspended from the ceiling of the entrance hall of the Constitution Hall of India's new Parliament building, signifying the integration of the idea of India with the idea of the cosmos. Created by the National Council of Science Museum (NCSM, Kolkata), the pendulum is being dubbed as the largest such piece (22 m in height, and 36 kg in weight ) in India.

Details -

Pendulum at the new Parliament —

Ø  All the components of the pendulum have been completely made in India.

Ø  The piece, made using gunmetal, has been fixed with an electromagnetic coil to ensure hassle-free movement.

Ø  The suspension system is mounted on the ceiling. There is continuous power supply so there are no obstacles (to the pendulum’s movement).

Ø  At the latitude of the Parliament, it takes 49 hours, 59 minutes, and 18 seconds for the pendulum to complete one rotation.

Significance — It is a piece reflecting the spirit of Article 51A of the Indian Constitution, which enshrines every citizen “to develop the scientific temper, humanism, and the spirit of inquiry and reform”.

The first such pendulum — It was installed in 1991 at the Inter-University Centre for Astronomy and Astrophysics (IUCAA) in Pune.

What is a Foucault’s Pendulum?

Ø  The original Foucault’s pendulum, named after 19th century French physicist Leon Foucault, is a simple experiment to demonstrate earth’s rotation.

Ø  When Foucault carried out this experiment for the public in 1851, it was the first direct visual evidence of the fact that the earth rotates on its axis.

Ø  The experimental set-up involves a heavy object hung from a height with a string, free to swing in any direction.

Ø  Once set in to-and-fro motion, the pendulum is seen to change its orientation slowly over time.

Ø  For example, if the initial motion imparted to it was in the north-south direction, after a few hours it could be seen moving in the east-west direction.

Working of a Foucault’s Pendulum -

Ø  According to Newton's First Law of motion, every object will remain in uniform motion in a straight line unless compelled to change its state by the action of an external force.

Ø  Thus, when a pendulum is set to swing it will continue to swing in the same direction unless it is pushed or pulled in some other direction.

Ø  The earth, on the other hand, will rotate once every 24 hours underneath the pendulum.

Ø  This means, if one stands to watch the pendulum, s/he would be likely to notice that the line of the pendulum's swing has changed to a different direction.

Ø  This is because observers too are rotating with the earth, but can notice the change in orientation of the pendulum.

Time to change orientation at different latitudes -

At the equator, the pendulum is perpendicular to the axis of rotation, and hence it never changes its orientation of the swing.

At other latitudes, it will, and would return to the original course after fixed time periods.

At the north and south poles, when the pendulum is aligned with the axis of rotation of the earth, the pendulum’s back-and-forth motion comes back to its original plane in exactly 24 hours.

At other latitudes (because the pendulum is not aligned to the axis of rotation of the earth), it takes longer for the pendulum to return to its original orientation of swinging.

Recently, the CJI led Bench of the Supreme Court recalled its Ritu Chhabaria vs Union of India judgement, which emphasised on the Right to Default Bail/Statutory Bail. This can have many implications ranging from bypassing the existing procedures to CJI positioning himself as Master of other SC Judges.

What is a Default/Statutory Bail?

Ø  This is a right to bail that accrues when the police fail to complete investigation within a specified period in respect of a person in judicial custody. This is enshrined in Section 167(2) of the Code of Criminal Procedure (CrPC).

Ø  A Magistrate can order an accused person to be detained in the custody of the police for 15 days or However, the accused cannot be detained for more than:

Ø  90 days, when an authority is investigating an offence punishable with death, life imprisonment or imprisonment for at least ten years; or

Ø  60 days, when the authority is investigating any other offence.

Ø  In Narcotic Drugs and Psychotropic Substances Act, the period is 180 days.

Ø  At the end of this period, if the investigation is not complete, the court shall release the person “if he is prepared to and does furnish bail”.

SC’s Judgement (Ritu Chhbaraia case) -

Ø  The SC affirmed an undertrial’s right to be released on default bail in the event of the investigation remaining incomplete and proceeding beyond the statutory time limit.

Ø  It held that the right to be released on bail will not be extinguished on the mere filing of a preliminary charge-sheet.

Ø  The court concluded that an accused’s right to seek default bail would be terminated only upon completion of the investigation within the statutory time limit.

Subsequent recall judgement -

Ø  The Court of the CJI entertained a recall application moved by the Union of India against the Ritu Chhabaria judgment.

Ø  The bench an interim order directing courts to decide bail applications without relying on the decision laid down in Ritu Chhabria for a short period of time. 

Issues regarding the recall judgement -

Stripping the Division Bench’s Order of its Precedential Value —

The Court of the CJI indirectly stayed the decision despite not having any connection with the verdict.

It amounts to stripping the decision of the Division Bench of its precedential value even if for a short while.

No Scope of CJI’s Intervention —

Ø  The only recourse available to the Union of India was the filing of a review petition, which is usually decided by the same Bench.

Ø  There was no scope of the review petition being entertained by the Court of the CJI.

Ø  No Scope of Recall Application Filing Before a Different Bench — There was no scope for a recall application being filed against a judgment, that too before an altogether different Bench.

Ø  Doing so amounts to bench fishing or forum shopping.

Devoid of Constitutional or Legislative Backing —

Ø  By entertaining an intra-court appeal, the Court of the CJI has effectively instituted a mechanism that is completely devoid of any legislative or constitutional backing.

Ø  The order is in total disregard of the established procedure, which is a review petition.

What could be Implications of the recall Judgement?

Ø  The Government can bypass the existing mechanism — In the near future, if the government is displeased with the order of one Bench, it can simply go before the CJI to get the decision stripped of all its legal sanctity instead of re-convincing the same Bench in a review.

Ø  Expanding Powers of CJI — The order has the effect of enlarging the powers of the CJI on the judicial side and of creating an unprecedented intra-court appellate mechanism within the SC.

Ø  The instant order has also dulled the bright line prohibiting the Court of the CJI from assuming that it is superior to all other Benches.

CJI’s roles -

Ø  The CJI oversees allocating cases and appointing constitutional benches that deal with critical legal issues. That is why theCJI is known as the Master of Roster.

Ø  Article 145 of the Constitution grants the CJI the authority to assign relevant subjects to the bench of justices.

Ø  Advisory powers allow the CJI to direct and advise the government on certain matters.

Ø  In emergency scenarios, discharges the President's function if the offices of President and Vice President become abruptly empty.

Is CJI superior to other SC judges?

Ø  Within the constitutional scheme, all judges of the SC are equal in terms of their judicial powers.

Ø  However, the CJI enjoys special administrative powers such as constituting Benches and assigning matters and references for reconsideration of a larger Bench.

Ø  Because of the CJI’s role as the ‘Master of the Roster’, he is regarded as ‘first amongst equals’ in relation to companion judges.

Ø  But in any given Bench including the CJI, the vote or power given to the CJI is the same as that given to his companion judges.

Ø  There are various examples of the CJI authoring a minority opinion of the Court. For instance, in the EWS quota dispute the then CJI, Justice U.U. Lalit, along with Justice S. Ravindra Bhat authored the minority opinion of the Court.

Why the expanding powers of CJI are a cause of concern?

Ø  Despite the administrative usefulness of the ‘Master of the Roster’ system, the many recorded instances of abuse are a cause for concern. For example, 4 senior judges of the SC alleged serious infirmities and irregularities in the administration and assigning of cases for hearing to Benches of the Court (four years ago).

Ø  The powers vested in the CJI by his virtue of being the Master of the Roster are It is impractical to lay any limits on these powers, meant for the smooth administrative functioning of the Court.

Mechanism in other countries -

Ø  Most Commonwealth countries such as the U.K., Australia and Canada follow the same system where all judges have the same power, and CJI is considered as the first among equals.

Ø  Countries such as the U.S., instead have a system where all the judges collectively exercise power and render decisions. Thus, they reflect the collective strength of the Court and not of Benches.

Way forward -

Digitisation of the CJI’s administrative functions — The practice of constituting Benches and allocating cases should be completely computerised and left out of the hands of the CJI.

Conclusion -

The legitimacy of the power of Master of the Roster has been debated many times and has been reaffirmed to the extent of administrative decisions for the smooth functioning of the Court. It is imperative that the CJI himself refrains from expanding his powers as Master of the Roster.

The Insurance Regulatory and Development Authority of India (IRDAI) has unveiled a comprehensive plan to expand insurance coverage and bridge the protection gaps in the country.

This blueprint aims to provide an all-in-one insurance policy called 'Bima Vistaar' to households, offering expedited financial support during medical emergencies, accidents, thefts, or family deaths.

The regulator acknowledges the low awareness of insurance benefits and proposes a women-led Gram Sabha-level initiative to educate households' female heads about the scheme's advantages.

A Game-Changer for Insurance Penetration -

Ø  Overview of the 'Bima Vistaar' scheme as the lynchpin of IRDAI's plan.

Ø  Collaboration with life and general insurers to offer comprehensive coverage.

Ø  Providing expeditious monetary support for various adverse situations.

Ø  Importance of educating female heads of households to enhance awareness.

Simplifying Insurance Processes -

Ø  Introduction of the 'Bima Sugam' platform to streamline insurance operations.

Ø  Integration of insurance players and distributors for a convenient customer experience.

Ø  Facilitating swift claims servicing through technological integration.

Ø  Utilising digital death registries to expedite life insurance claim settlements.

Promoting Market Competition and Niche Segments -

Ø  Proposal to ease capital requirement norms for new players to enter the market.

Ø  Enabling niche and specialised insurers to serve untapped needs.

Ø  Addressing the stagnant insurance penetration rate and low non-life policy coverage.

Ø  The necessity of legislative reforms to encourage competition and innovation.

Ø  Collaborative Approach: Involving State Governments and Local Bodies -

Ø  Involving State governments in partnership with IRDAI to formulate strategies.

Ø  Creation of bodies similar to State-level banking committees.

Ø  Development of granular district-wise plans to raise awareness and coverage levels.

Ø  Encouraging industry players to expand beyond metropolitan cities and tap into underserved regions.

GST Levy and Leadership Continuity -

Ø  Revisiting the 18% GST levy on health and life insurance premiums.

Ø  The need to address the financial burden on policyholders.

Ø  Importance of ensuring continuity of leadership at IRDAI for effective implementation.

Ø  Mitigating disruptions caused by vacancies in key regulatory positions.

Conclusion -

The IRDAI's ambitious blueprint aims to address India's protection gaps and increase insurance penetration. Through the 'Bima Vistaar' scheme, simplified processes, legislative reforms, collaboration with state governments, and the revision of tax policies, the goal of insuring every Indian by 2047 can be achieved. Ensuring continuity in regulatory leadership and active industry participation will be crucial in realising this vision.