CURRENT-AFFAIRS

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• The Public Accounts Committee (PAC) will conduct a performance assessment of “regulatory bodies established by Act of Parliament,” such as the Securities and Exchange Board of India (SEBI).
• About the Public Accounts Committee (PAC):
  • The PAC is a parliamentary committee formed by the Parliament of India to audit the revenue and expenditure of the Government of India. Its role is to oversee government spending, particularly through reviewing the audit reports of the Comptroller and Auditor General (C&AG) after these reports are presented to Parliament. The C&AG provides assistance to the committee throughout this review process. The PAC’s main objective is to ensure that government spending aligns with the appropriations authorized by Parliament.
• History of the Committee:
  • The PAC is one of India's oldest parliamentary committees. Established in 1921, it was initially chaired by the Finance Member, with the Finance Department (now the Ministry of Finance) handling its secretarial functions. Following the enactment of the Indian Constitution on January 26, 1950, the PAC was reconstituted as a Parliamentary Committee under the Speaker’s oversight, and its secretarial duties were transferred to the Parliament Secretariat (now the Lok Sabha Secretariat).
• Membership:
  • The PAC comprises up to twenty-two members: fifteen elected by the Lok Sabha and up to seven by the Rajya Sabha. Members are elected annually from their respective houses based on proportional representation through a single transferable vote. Each member serves a one-year term. The Chairperson of the PAC is selected by the Speaker from among the Lok Sabha members of the Committee. Since the 1967-68 session, the practice has been to appoint an Opposition member as Chairperson. Ministers cannot serve on the Committee, and if a member is appointed as a Minister, they automatically cease to be a member of the PAC.
• Functions:
  • The PAC’s responsibilities include reviewing accounts related to the allocation of funds granted by Parliament for the Government of India’s expenditures, the annual financial accounts of the Government, and any other accounts as deemed necessary by the Committee. In examining the Government of India’s appropriation accounts and the C&AG’s report, the Committee ensures:
    • The funds recorded in the accounts were legally available and used for their intended purposes.
    • Expenditures align with the governing authorities.
    • Re-appropriations comply with the rules set by competent authorities.
    • Beyond merely examining expenditure formality, the PAC evaluates the wisdom, fidelity, and efficiency of spending. The Committee investigates instances of financial losses, wasteful expenditures, and other financial irregularities.

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• In Indian fiscal federalism, there is a challenge known as Vertical Fiscal Imbalance (VFI), where the decentralization of expenditure often exceeds the revenue-raising capabilities of the States.
• About Vertical Fiscal Imbalance (VFI):
  • Vertical Fiscal Imbalance refers to the situation where the expenditure responsibilities of sub-national governments exceed their own revenue sources. Essentially, it is a condition where the revenues available to various levels of government do not align with their expenditure requirements. VFI represents the fiscal discrepancy faced by sub-national governments due to uneven decentralization of public revenue and spending responsibilities. This mismatch is often termed Vertical Fiscal Asymmetry (VFA).
  • VFI is a structural issue that can be addressed by redistributing revenue and expenditure responsibilities more effectively. It can also be mitigated through financial transfers from the Union Government to State governments.
• Differences Between Horizontal and Vertical Fiscal Imbalance:
  • The primary distinction between horizontal and vertical fiscal imbalances lies in the affected entities.
  • Horizontal Fiscal Imbalance: This occurs when there is a mismatch in revenues and spending among different regions or states within the country.
  • Vertical Fiscal Imbalance (VFI): This involves a mismatch between revenues and expenditures at different levels of government, such as between the central and state governments.

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• The head of the Central Bureau of Investigation (CBI) recently revealed that Interpol issued a record 100 Red Notices last year— the highest number ever—at India's request.
• About Interpol:
  • The International Criminal Police Organization, commonly known as Interpol, is an international body that supports cross-border police cooperation to combat terrorism, trafficking, and other crimes.
  • Scope: Interpol is the world's largest international police organization, with 195 member countries.
  • Headquarters: Located in Lyon, France.
  • Official Languages: Arabic, English, French, and Spanish.
  • Status: Interpol operates independently and is not part of the United Nations system.
  • Function: While Interpol facilitates international police collaboration, it does not engage in active criminal investigations. It often serves as the initial contact point for countries conducting international investigations.
• Governance:
  • General Assembly: The supreme decision-making body of Interpol, composed of one delegate from each member country.
  • General Secretariat: Manages daily operations under the guidance of the Secretary General, who is appointed for a five-year term by the General Assembly.
  • Executive Committee: Consists of 13 members, each representing a different region, appointed by the General Assembly. This committee supervises the Secretary General’s work and oversees the implementation of the General Assembly’s decisions.
• National Central Bureau (NCB):
  • Each member country has an NCB, which acts as the main liaison with both the General Secretariat and other NCBs worldwide. NCBs are typically managed by police officials and are usually situated within the government ministry responsible for policing—in India, this is the Union Home Ministry. The Central Bureau of Investigation (CBI) serves as India’s NCB.

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• Recently, the Secretary of the Union Ministry of Electronics & IT unveiled the 2nd Cohort of the Startup Accelerators for Product Innovation, Development, and Growth (SAMRIDH) scheme.
• About SAMRIDH:
  • SAMRIDH is a flagship initiative of the Ministry of Electronics and Information Technology (MeitY) aimed at accelerating startups under the National Policy on Software Products – 2019. Launched in August 2021, this program supports 300 software product startups with a total budget of ₹99 crore over four years.
  • The primary goal of SAMRIDH is to assist existing and emerging accelerators in selecting and scaling IT-based startups. The program emphasizes enhancing startup growth through improved connections with customers, investors, and international markets.
  • Eligibility Criteria for Accelerators:
  • Organization Type: The accelerator must be a registered Section-8 company or Society (not-for-profit company eligible to hold equity) with operations in India.
  • Experience: The accelerator and its team should have over 3 years of experience in the startup ecosystem and should have supported more than 50 startups, with at least 10 of those startups having received external investment.
  • Program Experience: The accelerator should have a track record of running startup program cohorts with activities aligned with the SAMRIDH program’s objectives.
• Implementation:
  • The SAMRIDH scheme is executed through established and potential accelerators across India. These accelerators provide essential services such as market fit adjustments, business planning, investor connections, and international expansion support to startups. Additionally, MeitY offers matching funding up to ₹40 lakh to support these accelerators.
  • The scheme is managed by MeitY Start-up Hub (MSH) and Digital India Corporation (DIC).

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• Recently, the Union Minister of Labour and Employment, along with the Chairperson of the Central Board of Trustees, EPF, has approved the implementation of a Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995.
• About the Centralized Pension Payment System (CPPS):
  • The CPPS introduces a national-level centralized system that facilitates pension payments through any bank or branch across India. This new system will replace the existing decentralized pension disbursement method, where each EPFO Zonal/Regional Office has limited arrangements with only a few banks.
• Eligibility for Pension:
  • To qualify for benefits under the Employees' Pension Scheme (EPS), individuals must meet the following criteria:
  • Be a member of EPFO.
  • Have completed 10 years of service.
  • Have reached the age of 58.
  • Members can also opt to withdraw EPS at a reduced rate from the age of 50. Additionally, they can defer their pension for up to two years (until the age of 60), which will result in an additional 4% pension increment for each deferred year.
• Implementation and Benefits:
  • The CPPS will be launched as part of EPFO’s ongoing IT modernization initiative, the Centralized IT Enabled System (CITES 2.01), starting from January 1, 2025.
• Key Benefits:
  • The CPPS will ensure seamless pension disbursement across India without the need to transfer Pension Payment Orders (PPO) when pensioners move locations or switch banks or branches.
  • It is expected to benefit over 78 lakh EPFO EPS pensioners, particularly those who relocate to their hometowns after retirement.

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• Recently, a new spider species, Carrhotus piperus, has been discovered in the lower Palani Hills of Tamil Nadu.
• About the New Spider Species:
  • Species: Carrhotus piperus is a newly identified jumping spider species.
  • Habitat: It was found on pepper (Piper nigrum) plants, located approximately two meters above the ground.
  • Etymology: The specific epithet ‘piperus’ is derived from the generic name of the plant, highlighting the spider’s unique habitat.
  • Significance: This discovery underscores the rich biodiversity of the region and increases the count of known Carrhotus species in India to 10, and globally to 37.
  • Distinctive Features: Carrhotus piperus is distinguished from related species by its unique prolateral protrusion and beak-shaped embolus, which set it apart from other spiders in its genus.
• Key Facts About the Palani Hills:
  • Location: The Palani Hills are an eastern extension of the Western Ghats, situated in southwestern Tamil Nadu, southern India.
  • Range: The hills continue from the Anaimalai Hills in Kerala. In the southern region, the hills feature steep, abrupt slopes.