What’s in today’s article?

• Why in News?
• What is Parliamentary oath?
• Who was Uda Devi?
• Who was Maharaja Bijli Pasi?

Why in News?

Earlier, a newly-elected MP from Faizabad, took his oath in the Lok Sabha. During the ceremony, he mentioned Veerangana Uda Devi and Maharaja Bijli Pasi, who are important figures in the Pasi (Dalit) community.

What is Parliamentary oath?

• About
  • The third schedule of the Constitution contains the parliamentary oath.
  • Through this, members swear or affirm to bear true faith and allegiance to the Constitution of India, uphold India's sovereignty and integrity, and faithfully discharge their duties.
• Evolution of oath over the years
  • The draft Constitution, prepared by the committee chaired by Dr. B.R. Ambedkar, initially did not invoke God in any oaths, emphasizing a solemn and sincere promise to uphold the Constitution. 
  • During the Constituent Assembly discussions, members like K.T. Shah and Mahavir Tyagi proposed amendments to include God in the President's oath.
    • They argued that it would provide a divine sanction for believers while allowing non-believers to affirm solemnly. 
  • Despite disagreements, Ambedkar accepted the amendments, recognizing the significance of invoking God for some individuals. 
  • The last modification to the oath came with the Constitution (Sixteenth Amendment) Act, 1963.
    • This amendment added the commitment to uphold India's sovereignty and integrity, following recommendations from the National Integration Council.
• Process 
  • Before taking the oath or affirmation, MPs must submit their election certificate to the Lok Sabha staff. 
    • This requirement was introduced after a 1957 incident where a mentally unsound individual posed as an MP and took the oath. 
  • MPs can then take their oath or affirmation in English or any of the 22 languages specified in the Constitution. 
  • MPs must use the name on their election certificate and adhere to the text of the oath. 
  • Deviations, such as adding suffixes or phrases, are not recorded, and MPs may be asked to retake the oath. 
  • While oaths and affirmations are a personal choice, 87% of MPs swore in the name of God in the last Lok Sabha, with the remaining 13% affirming allegiance to the Constitution. 
  • Some MPs alternate between swearing by God and affirming across different terms.
• Invoking different icons during oath taking ceremony in Parliament
  • During the oath-taking ceremony in Parliament, elected members often invoke or mention various icons, historical figures, or personalities who hold significance to them personally or to their constituency or community. 
  • This can include mentioning leaders, historical figures, social reformers, or cultural icons who have made significant contributions to society or who represent important values and aspirations. 
  • These mentions can highlight the diversity and richness of India's cultural and historical heritage, as well as the personal or political affiliations of the elected members.

Who was Uda Devi?

• Uda Devi, born in Ujirao, Lucknow, was part of the royal guard of Begum Hazrat Mahal of Awadh and took part in the 1857 Mutiny. 
• She is known for mobilizing people to fight against the British. 
• On November 16, 1857, she fought bravely near the Gomti River in Lucknow, reportedly killing at least three dozen British soldiers before being killed herself. 
• Every year on November 16, events are held in central Uttar Pradesh to commemorate her martyrdom. 
• Uda Devi remains an important icon, especially for the Dalit community.

Who was Maharaja Bijli Pasi?

• Bijli Pasi is a well-known figure among the Pasis of central Uttar Pradesh, including districts like Lucknow, Rae Bareli, Barabanki, Bahraich, Sultanpur, and Allahabad. 
• He is one of the most prominent Pasi leaders, having ruled parts of UP during the medieval period. 
• The ruins of his fort still stand in Lucknow, where a statue of him has also been erected. 
• Other notable Pasi figures from this region include Daldev, Baldev, and Kakoran.

Q.1. Who was Begum Hazrat Mahal? 

Begum Hazrat Mahal was a prominent figure during the Indian Rebellion of 1857. As the wife of Nawab Wajid Ali Shah of Awadh, she led the resistance against the British East India Company's rule, becoming an icon of Indian independence struggle.

Q.2. What is eighth schedule of Indian Constitution?

The Eighth Schedule of the Indian Constitution lists the 22 languages recognized by the Republic of India. These languages are officially recognized for use in Parliament, state legislatures, and for official communication between the Union and state governments.

Source: Decode Politics: Who are the two Pasi icons invoked by new MP from Ayodhya in his oath | Business Standard

What’s in today’s article?

• Why in News?
• Emergency Provisions - Now and Then
• Impacts of the Declaration of Emergency on India’s Federal Structure
• The Political and Social Circumstances in India Leading up to the Emergency
• End of Emergency and Afterwards
• What Happened During the Emergency?
• How did the Emergency Change Indian Politics?

Why in News?

• A dark chapter in modern Indian history that left a wide-ranging and lasting impact on Indian politics, a state of Emergency declared by the then-PM Indira Gandhi on June 25, 1975, lasted for 21 months.
• India entered the fiftieth year of the imposition of the Emergency, which saw the suspension of civil liberties, curtailment of press freedom, mass arrests, the cancellation of elections, and rule by decree.

Emergency Provisions - Now and Then:

• Under Article 352 of the Constitution of India, the President may (on the advice of the Council of Ministers headed by the PM) issue a proclamation of emergency if the security of India or any part of the country is threatened by -
  • War or
  • External aggression or
  • Armed rebellion.
• Article 358 frees the state of all limitations imposed by Article 19 (“Right to freedom”) as soon as an emergency is imposed.
• Article 359 empowers the President to suspend the right of people (except under Articles 20 and 21) to move court for the enforcement of their rights during an emergency.
• In 1975, the ground of “internal disturbance” (instead of armed rebellion) was available to the government to proclaim an emergency.
  • This was the only instance of proclamation of emergency due to “internal disturbance”.
  • The other two occasions in which an emergency was proclaimed earlier (on October 26, 1962, and December 3, 1971), were both on grounds of war.
• This ground of “internal disturbance” was removed by the Constitution (44th Amendment) Act 1978 by the Janata government that came to power after the Emergency.

Impacts of the Declaration of Emergency on India’s Federal Structure:

• Converts the federal structure into a unitary one:
  • Though not suspended, the state governments come under the complete control of the Centre.
  • Parliament makes laws on subjects in the State List, and extends the Union’s executive powers to the states.
  • The Union acquires the right to give any direction to state governments.
• Term of Lok Sabha: Parliament may by law extend the (five-year) term of Lok Sabha one year at a time.
• Allocation of financial resources: The President can modify, with parliamentary approval, constitutional provisions on the allocation of financial resources between the Union and states.

The Political and Social Circumstances in India Leading up to the Emergency:

• January 1966: Indira Gandhi elected prime minister.
• November 1969: The Congress splits after Gandhi is expelled for violating party discipline.
• 1973-75: Surge in political unrest and demonstrations against the Indira Gandhi-led government.
• 1971: Political opponent Raj Narain lodges complaint of electoral fraud against Indira Gandhi.
• June 12, 1975: Allahabad High Court found Gandhi guilty over discrepancies in the electoral campaign.
• June 24, 1975:
  • The Supreme Court granted a conditional stay on the Allahabad HC verdict, declaring Gandhi's election to the Lok Sabha null and void.
  • The SC also asked Gandhi to stay away from parliamentary proceedings.
• June 25, 1975: Declaration of Emergency by president Fakhruddin Ali Ahmed on the advice of Indira Gandhi.
  • According to the government’s press note, certain persons were inciting the police and armed forces to not discharge their duties.
• June 26, 1975: Indira Gandhi addresses the nation on All India Radio.

End of Emergency and Afterwards:

• January 18, 1977: Indira Gandhi calls for fresh elections and releases all political prisoners.
  • The elections of 1977 led to a comprehensive defeat for Indira and Morarji Desai became India’s first non-Congress (Janata Party) Prime Minister.
• March 23, 1977: Emergency officially comes to an end.
  • The Shah Commission, constituted by the Janata government, found the decision to impose Emergency to be unilateral and adversely affecting civil liberties.
  • The Janata government (through the 44th Amendment) reversed many of the constitutional changes effected by the 42nd Amendment Act 1976.
  • For example, it made judicial review of a proclamation of emergency possible again, and mandated that every proclamation of emergency be laid before both Houses of Parliament within a month of the proclamation.
  • Unless it was approved by both Houses by a special majority (a majority of the total strength of the House and not less than two-thirds of the members present and voting), the proclamation would lapse.

What Happened During the Emergency?

• Suspension of civil liberties:
  • Almost all opposition leaders (including JP) were detained and about 36,000 people were put in jail under the Maintenance of Internal Security Act (MISA).
  • Newspapers were subjected to pre-censorship.
  • In September 1976, Sanjay Gandhi initiated a mass forced sterilization program in Delhi.
• Legal changes pushed through by Parliament:
  • With the opposition in jail, Parliament passed the Constitution (38th Amendment) Act that barred judicial review of the Emergency.
  • The Constitution (39th Amendment) Act said that the election of the Prime Minister could not be challenged in the Supreme Court.
  • The Constitution (42nd Amendment) Act made changes to a range of laws,
    • Taking away the judiciary’s right to hear election petitions,
    • Widening the authority of the Union to encroach on State subjects,
    • Made any law passed by Parliament to implement any or all directive principles of state policy immune to judicial review, etc.
• Changes pushed through by the Courts: In the famous case of ADM Jabalpur vs Shivkant Shukla (1976), the SC ruled that detention without trial was legal during an emergency.

How did the Emergency Change Indian Politics?

• Dented the Congress’ reputation: A party that led the struggle for civil liberties against the colonial state.
• First non-Congress government: The Janata experiment gave India its first non-Congress government, but its collapse also demonstrated the limits of anti-Congressism.
• Emergence of young leaders: The Emergency gave India a crop of young leaders (Lalu Prasad Yadav, George Fernandes, Arun Jaitley, Ram Vilas Paswan, etc) who would dominate politics for decades to come.
• Coming together of the social forces:
  • This resulted in the increase of the representation of OBCs in Parliament.
  • As a result, the Janata government appointed the Mandal Commission to look into OBC quotas, which would go on to make the rise of the OBCs in North India irreversible.
• The Emergency has become a part of political vocabulary in India: Every perceived act of high-handedness by a government being attributed to an “Emergency mindset”.

Q.1. Why were emergencies in India proclaimed on October 26, 1962, and December 3, 1971?

National Emergency was proclaimed in India on October 26, 1962, due to "external aggression" during the Sino-Indian War. National Emergency was imposed December 3, 1971, on the grounds of "external aggression" during the Indo-Pakistani War.

Q.2. What are the major changes introduced by the 44th Amendment of the Indian Constitution?

The 44th amendment has removed the right to property from the list of fundamental rights [Article 19 (1)(f)] and gave it the status of a legal right under Article 300A.

Source: 1975 Emergency explained: A look back at India's 'dark days of democracy' | IE

What’s in today’s article?

• Why in News?
• What is Special Drawing Facility (SDF)?
• What are Auction Treasury Bills?
• What are Ways and Means Advances (WMA)?

Why in News?

The Reserve Bank of India (RBI) has increased the Ways and Means Advances (WMA) limits of State governments and Union territories to ₹60,118 crore from ₹47,010 crore.

This decision is based on the suggestions from a group formed by the Reserve Bank, which included some state Finance Secretaries, and after reviewing the states' recent spending data. This increase will come into effect from July 1, 2024.

The RBI further said that Special Drawing Facility (SDF) availed by State Governments/ UTs will continue to be linked to the quantum of their investments in marketable securities, issued by the Government, including Auction Treasury Bills (ATBs).

What is Special Drawing Facility (SDF)?

• SDF is a type of short-term borrowing arrangement provided by the Reserve Bank of India (RBI) to state governments and Union Territories (UTs). 
• This facility is intended to help them manage temporary mismatches in their cash flows, similar to the Ways and Means Advances (WMA) but with different terms and conditions.
• SDF is provided against the collateral of government securities held by the state governments or Union Territories. 
• The amount available under SDF is directly linked to the value of these securities.

What are Auction Treasury Bills?

• Auction Treasury Bills (T-Bills) are short-term debt instruments issued by the government to meet its immediate financial needs. 
• They are sold through a competitive bidding process, also known as an auction, conducted by the Reserve Bank of India (RBI) on behalf of the government.

What are Ways and Means Advances (WMA)?

• About
  • Ways and Means Advances (WMA) are temporary loan facilities provided by the Reserve Bank of India (RBI) to the central and state governments to help them manage temporary mismatches in their receipts and expenditures.
  • These borrowings are meant purely to help them to tide over temporary mismatches in cash flows of their receipts and expenditures.
  • The WMA scheme was introduced on April 1, 1997.
• Legal provision
  • Section 17(5) of the RBI Act, 1934 authorizes the central bank to lend to the Centre and state governments subject to their being repayable “not later than three months from the date of the making of the advance”.
• Types
  • Normal WMA: A fixed limit is set, and borrowing within this limit is charged at the repo rate.
  • Special WMA: Additional borrowing over and above the normal WMA, backed by the government securities held by the state government.
    • After the state exhausts the limit of SDF, it gets normal WMA.
    • The interest rate for SDF is one percentage point less than the repo rate.
• Key features
  • Duration: The advances are typically short-term, with a duration of up to 90 days.
    • If the amount is not returned within this period, it would be treated as an overdraft.
    • The interest rate on overdrafts is 2 percentage points more than the repo rate.
  • Interest Rates: Interest rates on WMA are linked to the repo rate.
    • For Normal WMA: interest rate = repo rate
    • For Special WMA: interest rate = one percentage points less than repo rate
    • For overdraft: interest rate = 2 percentage points more than the repo rate
  • Limits: The RBI, in consultation with the government, sets limits for WMA for both the central and state governments. These limits are reviewed periodically.
  • Number of loans: Number of loans under normal WMA is based on a three-year average of actual revenue and capital expenditure of the state.
• Benefits of WMA
  • Liquidity Management: Helps the government manage its day-to-day liquidity requirements, ensuring that short-term cash flow mismatches do not disrupt essential spending.
  • Fiscal Discipline: Encourages better fiscal management as the governments are expected to repay the advances within a stipulated period, promoting timely receipt and disbursement of funds.
  • Interest Cost Savings: The interest rate on WMA is typically lower than market borrowing rates, reducing the interest burden on the government.
  • Flexible Funding: Provides a flexible source of funds for immediate and unforeseen expenditures without having to resort to market borrowings, which might be time-consuming and more expensive.
  • Market Stability: By avoiding sudden large borrowings from the market, WMA helps in maintaining stability in the government securities market.
  • Limitations and Risks
  • Short-Term Solution: WMA is only a short-term solution and cannot be relied upon for long-term fiscal issues.
  • Repayment Pressure: The need to repay within a short period might create additional pressure on the government’s finances.

Interest Costs: While the interest rate is lower than market borrowings, prolonged use of WMA can still add to the interest burden if not managed properly.

Q.1. What is the Reserve Bank of India (RBI)?

The Reserve Bank of India (RBI) is India's central banking institution responsible for regulating the country's monetary policy, issuing currency, overseeing financial markets, and maintaining economic stability through its various monetary and regulatory functions.

Q.2. What is Fiscal Discipline?

Fiscal discipline refers to the government's ability to manage its finances prudently by maintaining control over spending, ensuring revenue meets expenditure, and adhering to budgetary targets. It aims to promote financial stability, avoid excessive debt accumulation, and support sustainable economic growth.

Source: RBI raises WMA limits of States/UTs by 28% to ₹60,118 crore | RBI | Money Control