Cabinet Approvals on November 29th, 2023

On November 29, 2023, the Union Cabinet chaired by the Prime Minister (PM) of India Narendra Modi has approved the following:

i.Terms of Reference (ToR) for 16th Finance Commission

ii.Extension of PMGKAY for 5 years w.e.f. January 1, 2024

iii.Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN)

iv.Drones to Women SHGs from 2024-25 to 2025-26

v.Continuation of CSS FTSCs for further 3 years i.e. till March 31, 2026

Cabinet approves ToR for 16th Finance Commission

The Union Cabinet has approved the Terms of Reference (ToR) for the Sixteenth/16th Finance Commission (FC), whose recommendations, spanning a 5-year period from April 1, 2026 to March 31, 2031, will be submitted by October 31, 2025.

What are the matters on which Finance Commission will make recommendations?

i.Division (Formula) of net proceeds of taxes between the Union and the States under Chapter I, Part XII of the Constitution.

• Allocation of State shares of these tax proceeds.

ii.Principles for grants-in-aid of the revenues of the States from the Consolidated Fund of India to States.

• Sums to be granted to the States through grants-in-aid of their revenues under Article 275 of the Constitution for specified purposes except those specified in the provisos to clause (1) of that article.

iii.Measures to increase State Consolidated Fund for Panchayats and Municipalities based on State Finance Commission recommendations.

iv.The Commission may also examine the current funding for Disaster Management initiatives under the Disaster Management Act, 2005 (53 of 2005), and suggest suitable recommendations.

Background:

In November 2022, an Advance Cell in the Ministry of Finance formed to supervise initial tasks before the formal establishment of 16th FC. A Working Group was also created to aid in developing ToR.

• The 15th FC was constituted on November 27, 2017 for making recommendations for a 6-year period from 2020-21 to 2025-26 (March 31, 2025). It’s Chairman was Nand Kishore Singh, Former Member of Parliament and former Secretary to the Government of India

Notes:

i.The FC is appointed by the President under Article 280 of the Constitution.

ii.The First FC was constituted under the chairmanship of Kshitish Chandra (KC) Neogy

 on 6th April, 1952.

Cabinet approves Extension of PMGKAY for 5 years from January 1, 2024

The Union Cabinet also extended Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) — for five years till December 2028. In this regard, the Central Government will spend approximately Rs 11.80 lakh crore on food subsidies to provide free food grains (rice , wheat and coarse grains/millets) to about 81.35 crore people .

About PMGKAY:

PMGKAY, managed by Department of Food and Public Distribution (DFPD) under the Ministry of Consumer Affairs, Food, and Public Distribution, was introduced in 2020 for COVID-19 pandemic relief, providing 5 kg of free foodgrains per beneficiary monthly, in addition to National Food Security Act (NFSA), 2013 benefits.

• PMGKAY concluded in December 2022, and from January 1, 2023, it subsumed other NFSA schemes like Antyodaya Anna Yojana (AAY) and Priority Households (PHH) for one year.
• The initiative supports uniform implementation of portability under One Nation One Ration Card (ONORC) nationwide.
• Read Free Ration Scheme PMGKAY will be extended till 2028

Cabinet approves Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan

The Union Cabinet has approved the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) with a budget of Rs 24,104 crore (Central Share: Rs. 15,336 crore, State Share: Rs. 8,768 crore). The scheme will focus on for 11 important areas/critical interventions across 9 line Ministries.

• The scheme was announced by PM Narendra Modi on Janjatiya Gaurav Diwas in Jharkhand’s Khunti.

Primary Beneficiaries:

Particularly Vulnerable Tribal Groups (PVTGs), comprising 75 communities located in 18 states and the Union Territory (UT) of Andaman and Nicobar Islands, are the primary beneficiaries of PM-JANMAN.

• The scheme will adequately address the critical infrastructure needs of the villages and habitations of these communities located in remote areas.

List of 11 Important Areas to be focused under PM JANMAN:

Other Interventions:

i.Ministry of Ayush will set up Ayush Wellness Centre as per existing norms and Ayush facilities will be extended to PVTG habitations through MMUs.

ii.Ministry of Skill Development and Entrepreneurship (MoSDE) will provide skill and vocational training tailored to the needs of PVTGs in their habitations, multipurpose centers, and hostels.

iii.Under this scheme, there will be provision of basic facilities such as safe housing, clean drinking water, sanitation, improved access to education, health and nutrition services, road and telecom connectivity, and sustainable livelihood opportunities.

Cabinet approves CSS for providing Drones to Women SHGs from 2024-25 to 2025-26

The Union Cabinet also approved the Central Sector Scheme (CSS) for providing Drones to the 15000 selected Women Self Help Groups (SHGs) from 2024-25 to 2025-26 for providing rental services to farmers for agriculture purpose.

• The outlay of the scheme is Rs 1261 Crore.
• The scheme aims to provide sustainable livelihood support to 15,000 SHGs, enabling them to earn at least Rs 1 lakh per annum.

Key Points:

i.The scheme integrates efforts from the Department of Agriculture & Farmers Welfare (DA&FW), Department of Rural development (DoRD) and Department of Fertilizers (DoF), Women SHGs and Lead Fertilizer Companies (LFCs).

ii.Central Financial Assistance of 80% (up to Rs. 8 lakh) for drone purchase by women SHGs.

• CLFs of SHGs may secure the remaining amount through a loan from National Agriculture Infra Financing Facility (AIF), with a 3% interest subvention.

iii.One qualified SHG member undergoes 15-day training (5 days for drone piloting, 10 days for agriculture applications).

iv.LFCs facilitate procurement, repair, and maintenance of drones, acting as intermediaries.

v.LFCs promote the use of Nano Fertilizers by the drones with SHGs.

• SHGs will rent out the drone services to the farmers for Nano fertilizer and also for pesticide applications.

vi.The scheme will help infusing advance technology in agriculture for improved efficiency, crop yield and reduced cost of operation to benefit farmers.

Cabinet approves continuation of CSS FTSCs for further 3 years i.e. till March 31, 2026

The Union Cabinet has approved the continuation of the Fast Track Special Court (FTSCs) for a further three years i.e. from April 1, 2023 to March 31, 2026. The financial implication for the same will be Rs 1952.23 crore (Rs. 1207.24 crore as Central Share and Rs. 744.99 crore as State share).

• The Central share is to be funded from Nirbhaya Fund.

About FTSCs:

FTSCs established in August 2019 as CSC for rape and Protection of Children from Sexual Offences Act (POCSO Act) cases. Initially launched for one year, it was extended to 31.03.2023, and now further extended to March 31, 2026.

• It is implemented by the Department of Justice, Ministry of Law & Justice, augmenting State resources.
• The scheme involves 30 States/Union Territories, operating 761 FTSCs, including 414 exclusive POCSO Courts.
• These courts, resolving over 1,95,000 cases, support State/UT Government efforts for timely justice, even in remote areas.

Recent Related News:

i.The Union Cabinet approved an amendment to the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) for specifying royalty rates for three critical and strategic minerals: Lithium, Niobium, and Rare Earth Elements (REEs).

ii.Union Cabinet has granted approval for the signing of a Memorandum of Understanding (MoU) between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Finance, and Industrial and Digital Sovereignty of the French Republic.