1.GoI Approves Unified Pension Scheme for Government Employees
In a significant development aimed at enhancing retirement benefits for government employees, the Union Cabinet approved the Unified Pension Scheme (UPS) on Saturday. This new scheme, which is set to benefit approximately 2.3 million government employees, will function as an alternative to the existing National Pension System (NPS).
Background
The decision follows a comprehensive review of the current pension system. In 2023, the finance ministry appointed a committee led by Finance Secretary T.V. Somanathan to assess the effectiveness of the National Pension System for government employees. The NPS, in effect since April 1, 2004, will now coexist with the newly introduced UPS.
Key Features of the Unified Pension Scheme
- Assured Pension
The UPS offers an assured pension, wherein employees who complete at least 25 years of service will receive a pension equivalent to 50% of the average basic pay drawn over the last 12 months before retirement. For those with shorter service periods, proportionate benefits are provided. Employees with at least 10 years of service will also be eligible for a pension, albeit at a reduced rate corresponding to their years of service. - Family Pension
The scheme introduces an assured family pension. In case of an employee’s death, their family will receive a pension at 60% of the employee’s entitlement, ensuring financial security for the dependents. - Minimum Pension Guarantee
To uphold a basic standard of living, the UPS guarantees a minimum pension of ₹10,000 per month for retirees with at least 10 years of service. - Inflation Protection
To mitigate the effects of inflation, the scheme provides indexation of pensions, family pensions, and the minimum pension. Additionally, Dearness Relief will be adjusted based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to the provision for current employees. - Lump Sum Payment
Upon retirement, employees will receive a lump sum payment in addition to gratuity, calculated as 1/10th of the monthly emoluments (basic pay plus Dearness Allowance) for every completed six months of service. This payment will not affect the assured pension.
Eligibility and Implementation
The UPS will be implemented from April 1, 2025. Benefits will retroactively cover those retiring until March 31, 2025, with arrears provided accordingly. Information and Broadcasting Minister Ashwini Vaishnaw emphasized that this scheme will impact around 2.3 million government employees positively.
Transition from NPS to UPS
Current NPS subscribers will have the option to switch to the UPS starting from the next fiscal year, allowing employees flexibility in choosing a retirement scheme that suits their needs.
2.Goldman Sachs Lowers India’s 2024 and 2025 GDP Growth Forecasts
Goldman Sachs has revised India’s GDP growth forecasts downward to 6.7% for 2024 and 6.4% for 2025, citing a 35% reduction in government spending during the April-June quarter and slower consumption growth. This contrasts with the Reserve Bank of India’s (RBI) more optimistic projection of 7.2% growth for 2024-25.
Factors Influencing the Downgrade
The primary reasons behind this adjustment are the significant contraction in government expenditure and sluggish real consumption growth. Additionally, tighter RBI regulations on unsecured lending have impacted household credit, contributing to the forecasted slowdown. Despite these challenges, Goldman Sachs anticipates some mitigation through potential monetary easing by the RBI, likely beginning in December 2024.
RBI and ICRA Projections
In contrast to Goldman Sachs, the RBI has forecasted a real GDP growth rate of 7.2% for 2024-25, with quarterly growth estimates ranging from 7.1% to 7.3%. Meanwhile, ICRA projects a more conservative growth rate of 6.0% for Q1 FY2025, primarily due to reduced government capital expenditure and lower urban consumer confidence.
Key Points: Goldman Sachs Lowers India’s GDP Growth Forecasts
- Revised Growth Estimates: Goldman Sachs now expects GDP growth at 6.7% in 2024 and 6.4% in 2025, each down by 20 basis points.
- Reasons for Downgrade: A significant 35% reduction in government spending during the April-June quarter influenced the revision.
- Economic Challenges: Slower real consumption growth and tighter lending regulations are impacting the forecast.
- Potential Offset: Expected monetary easing by the RBI, starting in December 2024, may soften the negative impacts.
- Contrasting Projections: The RBI forecasts a 7.2% growth rate for 2024-25, while ICRA predicts a 6.0% growth for Q1 FY2025.
3.Janmashtami 2024
Krishna Janmashtami, also known simply as Janmashtami, is a major Hindu festival that commemorates the birth of Lord Krishna, the eighth avatar of Lord Vishnu. In 2024, this festival will be celebrated on August 26, marking the 5,251st birth anniversary of Lord Krishna.
Janmashtami 2024: Date and Timings
The festival begins on August 26 at 03:39 AM with the Ashtami Tithi, concluding on August 27 at 02:19 AM. Nishita Puja, a significant ritual, will be observed from 11:26 PM to 12:11 AM on August 26-27. Dahi Handi festivities will follow on August 27.
Significance of Janmashtami
Janmashtami celebrates the divine birth of Lord Krishna, who is revered for his role in restoring dharma by defeating the tyrant king Kansa. The festival symbolizes the triumph of good over evil, and Krishna’s teachings, as found in the Bhagavad Gita, remain central to spiritual and moral guidance.
How Janmashtami is Celebrated
Devotees observe the day with fasting, prayers, and decorations. The festival features rituals such as singing devotional songs, performing pujas, and staying awake until midnight to mark Krishna’s birth. In some regions, “Dahi Handi,” a popular event where participants form human pyramids to break a pot of yogurt, is celebrated to reflect Krishna’s playful nature.
Dahi Handi
This vibrant event showcases teams competing to reach and break a pot of yogurt suspended high above the ground, representing Krishna’s childhood fondness for dairy products.
Wishes for Janmashtami 2024
- “May the blessings of Lord Krishna always be with you and your family. Happy Janmashtami!”
- “May Krishna’s teachings inspire you to overcome every obstacle. Jai Shri Krishna!”
- “May Lord Krishna’s flute invite peace and harmony into your life. Happy Janmashtami!”
4.Not All Insults Qualify as Offenses Under the SC/ST Act, Rules Supreme Court
The Supreme Court, in a recent ruling, clarified that not every insult or intimidatory remark directed at a person from a Scheduled Caste or Scheduled Tribe (SC/ST) qualifies as an offense under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989.
The ruling was made by a bench comprising Justices P.B. Pardiwala and Manoj Misra, who allowed anticipatory bail to Shajan Skaria, the editor of the YouTube channel Marunadan Malayali. Skaria had been charged under the Act for allegedly posting a derogatory video targeting Kerala MLA P.V. Sreenijin, a member of the SC community.
Key Points of the Judgment
The court emphasized that the 1989 Act can only be invoked if the insult or intimidation is directly linked to the victim’s caste identity. Insults made solely because the person is an SC/ST community member would constitute an offense under the Act. The court further clarified that general insults or criticisms, even if offensive, do not automatically fall under the Act unless caste identity is the primary motivator behind the remarks.
Conclusion
The ruling underscores the need for intent and context in applying the SC/ST Act, indicating that the caste-based nature of an insult must be intrinsic for the Act’s provisions to be applicable.
5.India’s Vision 2047: $30 Trillion Economy by 2047
India aspires to become a $30 trillion economy by 2047, according to NITI Aayog’s projections. Achieving this ambitious target will require an annual real GDP growth rate exceeding 9%. However, the budget for the fiscal year 2024-25 assumes a more conservative growth rate of 6.5-7%.
Rationale Behind the Goal
Growth is essential for job creation, and recent years have seen a focus on growth maximization through initiatives like ease of doing business, Production-Linked Incentive (PLI) schemes, and substantial infrastructure investments.
Key Elements of Vision 2047: Viksit Bharat
- Economic Growth: Achieving a $30 trillion GDP by 2047.
- Per Capita Income: Raising the per capita income to $18,000.
- Participative Governance: Emphasizing citizen involvement in shaping national progress.
- Quality of Life: Enhancing healthcare, education, and infrastructure.
Immediate Challenges
Key challenges include improving agricultural productivity, addressing unemployment and skill gaps, fostering inclusive growth, and ensuring robust manufacturing and services sectors.
Medium-to-Long-Term Goals
The roadmap includes priorities such as energy security, infrastructure development, fostering innovation, and implementing forward-looking