CURRENT-AFFAIRS

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• Uncertainty Surrounds Delhi Assembly's Special Session to Discuss CAG Reports
• About the CAG:
• The Comptroller and Auditor General of India (CAG) holds a vital role in overseeing the nation's financial operations, as defined by Article 148 of the Indian Constitution. The CAG is entrusted with ensuring the transparency and accountability of public funds, both at the Central and State levels, acting as the protector of the public purse.
• The office is a cornerstone of financial discipline, preserving constitutional integrity and the rule of law. As an independent body, the CAG's work is integral to maintaining checks and balances within India’s democratic framework.
• Constitutional and Legal Framework for the CAG:
• Article 148:
• Appointment: The President of India appoints the CAG through a formal process.
• Tenure and Conditions: Determined by Parliament, with a fixed term; the CAG is prohibited from holding any other government office during or after the tenure.
• Independence: The salary and benefits of the CAG are charged to the Consolidated Fund of India (CFI), ensuring operational autonomy.
• Key Responsibilities and Powers (Article 149):
• Parliament outlines the scope of the CAG’s duties and functions.
• Accounting Practices (Article 150):
• Prescribes how the Union and States should maintain accounts, in consultation with the President.
• Submission of Reports (Article 151):
• Reports related to Union finances are presented to the President and then to Parliament, while State reports are submitted to the Governor and State Legislature.
• Certification of Tax Proceeds (Article 279):
• The CAG’s certification of the net proceeds of taxes and duties is final and binding.
• The CAG’s (Duties, Powers, and Conditions of Service) Act, 1971:
• Tenure: The CAG serves for six years or until the age of 65, whichever comes first.
• Removal: The process for removal is akin to that of a Supreme Court judge.
• Resignation: The CAG submits a resignation directly to the President.
• Service Conditions: Once appointed, the terms cannot be altered to the detriment of the CAG.

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• Should Wealth Tax Be Reintroduced to Tackle Inequality in India?
• About Wealth Tax:
  • Wealth Tax is a tax levied on the net market value of an individual's assets, including cash, bank deposits, shares, real property, personal cars, and fixed assets.
  • Several countries, such as France, Portugal, and Spain, impose a wealth tax to address inequality and fund public services. The main aim of this tax is to target non-productive and luxury assets owned by wealthy individuals.
• Wealth Tax in India:
  • Introduction: The Wealth Tax Act was introduced in India in 1957, following the recommendations of the Kaldor Committee (1955), as part of efforts to rationalize the tax system. It initially imposed a 1% tax on annual earnings exceeding ₹30 lakh for individuals, Hindu Undivided Families (HUFs), and companies.
  • Abolition: The wealth tax was abolished in 2015 due to various challenges, including excessive litigation, increased compliance burdens, and high administrative costs.
  • Replacement Measures: Instead of reinstating the wealth tax, the government increased the surcharge on the super-rich. Individuals with an income exceeding ₹1 crore and companies with earnings above ₹10 crore saw their surcharge rise from 2% to 12%.
• Other Relevant Economic Concepts:
  • Tobin Tax: A tax on financial transactions, particularly currency exchanges, aimed at reducing speculation.
  • Pigovian Tax: A tax intended to correct negative externalities, such as pollution taxes aimed at environmental protection.
  • Laffer Curve: A concept illustrating the relationship between tax rates and tax revenue, suggesting that higher tax rates do not always result in increased revenue.
  • Tax-GDP Ratio: A measure that indicates the proportion of tax revenue relative to the country's GDP, essential for understanding the fiscal health of a nation.

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• AI and Machine Learning to Drive Innovation in the Indian Pharma Industry
• What is Artificial Intelligence (AI)?
  • Artificial Intelligence (AI) involves machines performing tasks traditionally associated with human intelligence, such as learning, reasoning, and decision-making. The key components of AI include:
  • Machine Learning (ML): Algorithms that evolve and improve over time by learning from data.
  • Neural Networks: Systems that simulate the human brain, enabling pattern recognition and complex decision-making.
  • Natural Language Processing (NLP): Allows machines to understand and generate human language, facilitating better human-computer interactions.
  • AI systems analyze data inputs, apply algorithms, and produce intelligent outputs, helping to solve complex problems across various sectors.
• Types of Artificial Intelligence
  • Narrow AI: Designed to perform specific tasks, such as virtual assistants like Siri and Alexa.
  • General AI: A broader system capable of performing any intellectual task a human can do, though it has not yet been achieved.
  • Super AI: A theoretical, advanced form of AI that would exceed human intelligence.
• AI Techniques in Machine Learning:
  • Supervised Learning: Uses labeled data to train algorithms and predict outcomes (e.g., facial recognition).
  • Unsupervised Learning: Discovers hidden patterns in unlabeled data (e.g., clustering algorithms).
• How Does AI Work?
  • Data Acquisition: Gathering and preparing data for analysis.
  • Feature Extraction: Identifying key patterns and trends in the data.
  • Algorithm Selection and Training: Developing models using machine learning or deep learning techniques to make predictions.
  • Evaluation and Deployment: Refining and deploying the models to generate actionable insights and decisions.
• Indian Pharmaceutical Industry’s Growth Potential:
  • Market Size: The Indian pharmaceutical market is currently valued at approximately USD 58 billion, with projections to reach USD 120-130 billion by 2030.
  • Global Contribution: India supplies around 20% of the world’s generic drugs, with a strong emphasis on affordability and quality.
  • Supportive Policies and Digital Talent: India is enhancing its position in global healthcare by leveraging favorable policies, a skilled workforce, and advancing digital technologies. This innovation is set to further transform the pharmaceutical sector.