What to Read in The Hindu Editorial( Topic and Syllabus wise)

Editorial 1 : ​​​The case for a special fiscal package for Andhra Pradesh

Context

The Finance Commission should create a fair and neutral formula so that States that have lost financial resources are still supported and not left out.

Introduction

Andhra Pradesh is facing serious financial problems, and there is a strong reason for the Finance Commission to give the State a special arrangement. When Telangana was created from the larger State of Andhra Pradesh in 2014, the remaining Andhra Pradesh asked for ‘special category’ status to manage the loss of Hyderabad, which was the main tax source for the combined State. Even though then Prime Minister Manmohan Singh promised in Parliament to support this demand, the law that divided the State did not include any special category status for Andhra Pradesh.

Financial Challenges and Political Developments in Andhra Pradesh Post-Bifurcation

• The division of the Statetook effect in June 2014, during the change from the United Progressive Alliance (UPA) to the National Democratic Alliance (NDA) government at the Centre.
  • Leadership Change: Chandrababu Naidu became the first Chief Minister of the remaining State of Andhra Pradesh.
• Throughout his term (2014-19), Mr. Naidu actively pushed for the parliamentary assuranceof special status to be fulfilled.
  • Government Response:The Narendra Modi government rejected the demand, saying the Centre had stopped the ‘special category’ scheme based on advice from the 14th Finance Commission.
• Naidu returned as Chief Minister in 2024but now faces almost empty state funds due to structural fiscal challenges and the burden of funding freebies introduced by the previous Y.S. Jagan Mohan Reddy government(which Naidu also supported during his campaign).
  • Financial Challenges:Competitive freebies during elections are a State-level issue, and the Centre is not required to help with these costs.
  • Centre’s Obligation:However, the Centre has a clear responsibility to compensate Andhra Pradesh for the structural fiscal losses caused by the bifurcation of the State.

Options for Supporting Andhra Pradesh Post-Bifurcation

• Option 1: Grant ‘Special Category’ Status
  • The Centre could make an exceptionand grant special category status to Andhra Pradesh, fulfilling the parliamentary assurance.
  • However, this status has been weakenedcompared to the past:
    • Earlier, special category States received substantial Plan assistance(grants).
    • Now, support mostly comes as external loans(e.g., World Bank loans) with slightly easier terms.
  • This makes the current special category status a less valuable benefitfor Andhra Pradesh—a hollow victory.
• Option 2: Seek a Special Package of Assistance
  • Andhra Pradesh could ask for a special assistance packagethat is more generous and flexible than the current watered-down special category status.
  • There are several precedentsfor such politically motivated special packages:

State(s)	Package Type	Remarks
Odisha	Koraput-Balangir-Kalahandi Plan	Politically driven, discretionary plan
Madhya Pradesh & Uttar Pradesh	Bundelkhand Special Package	Targeted support for backward region
Bihar	Pre-election Special Package (2015)	One-off package given before elections

• Drawback:These one-time, discretionary packages can weaken the federal structure by creating uneven support and are generally best avoided.
• Better Option: Finance Commission’s Special Package
  • The Finance Commission, being an apolitical, constitutional body, can recommend a special packagefor Andhra Pradesh.
  • Such a recommendation would carry more authority and legitimacy.
  • This approach maintains federal balanceand avoids ad hoc, politically motivated packages.

Why Should the Finance Commission Consider a Special Package for Andhra Pradesh?

• Since 1956, divisions of States into smaller units have been based on political, administrative, or geographical reasons.
• These divisions have caused an uneven split in fiscal capacitybetween the new and remaining States.
• A key measure of fiscal capacity is the State’s own revenue (per capita), which reflects its financial strength.

Fiscal Impact of Recent State Divisions (Post-2000)

Original State	New State Created	Effect on Per Capita Own Revenue
Uttar Pradesh	Uttarakhand	Uttarakhand gained revenue; loss for Uttar Pradesh was small
Madhya Pradesh	Chhattisgarh	Chhattisgarh gained revenue; loss for Madhya Pradesh was small
Bihar	Jharkhand	Jharkhand gained revenue; loss for Bihar was significant
Andhra Pradesh	Telangana	Telangana gained revenue; loss for Andhra Pradesh was very high

• In each case, the newly created States gained fiscal capacityat the expense of the remaining States.
• However, the loss for Bihar and Andhra Pradeshwas much greater compared to Uttar Pradesh and Madhya Pradesh.

Suggested Formula for Special Assistance

• If a State’s loss in fiscal capacity due to division exceeds 10%, the Centre could provide a special packageto compensate for this loss.
• The package would be time-boundand aim to support the State through this transition.
• According to this formula, both Biharand Andhra Pradesh would qualify for assistance.

Conclusion

The Finance Commission can also use other methods it believes better show the gain or loss in a State’s financial strength. The key point is that States like Andhra Pradesh, which have lost fiscal capacity due to bifurcation, should not be left alone to manage on their own. It is the responsibility of the Finance Commission—which is free to make recommendations—to create a fair, unbiased, and formula-based solution that supports fiscal federalism and solves this problem.

 

Editorial 2: Rewriting the script of early childhood education

Context                

Investing wisely in early childhood education and actively involving parents can significantly support young children’s learning and development.

Introduction

“Some children are born with advantages, while many others are not — and most people spend their lives trying to catch up,” noted Nobel Laureate Prof. James Heckman. This reality applies to India as well, where part of the employment crisis stems from the “lottery of birth.” In India, one in five children is born into poverty, which negatively affects their health, nutrition, education, and future income potential. However, there is a path to overcome these odds. States like Uttar Pradesh, by recruiting 11,000 Early Childhood Care and Education (ECCE) educators for Balavatikas, and Odisha, with its Shishu Vatikas and Jaduipedi Kits, are taking progressive steps.

The Economic Case for Investing in Early Childhood Education: Insights from the Heckman Curve

• The Heckman Curve, developed by Nobel Laureate James Heckman, demonstrates that the rate of return on investment in human capitalis highest in the earliest years of life.
• Investments made during early childhood—particularly in education, health, and cognitive development—are significantly more effective and cost-efficientthan those made at later stages.
• Research indicates that every dollar spent on early childhood educationyields a return of $7 to $12, reflecting improvements in academic achievement, health outcomes, reduced criminal activity, and increased lifetime earnings.
• Children who receive quality early educationare:
  • Four times more likelyto have higher lifetime earnings, and
  • Three times more likelyto own a home in adulthood.
• By the age of five, disparities in earning potential, quality of life, and educational outcomesbecome evident.
• If motivation, cognitive skills, and learning behaviorsare not nurtured in these formative years, the likelihood of long-term developmental deficits increases significantly.

Challenges in India’s Early Childhood Education (ECE) System

Challenge	Details	Impact
1. Inadequate Instructional Time	– Approximately 5.5 crore children aged 3–6 yearsare enrolled in 14 lakh Anganwadis and 56,000 government pre-primary schools. – Anganwadi workers provide an average of only 38 minutes per day for preschool education, significantly below the recommended two hours.	– Children are not receiving adequate exposure to early learning, hampering foundational skill development.
2. Lack of Trained ECE Personnel	– Merely 9% of pre-primary schools have a dedicated Early Childhood Education (ECE) teacher. – Many centres are under-equipped to deliver structured learning.	– Quality of instruction suffers, resulting in poor school readiness among children.
3. Poor Learning Outcomes and Premature Formal Schooling	– According to the India Early Childhood Education Impact Study: – Only 15% of children could match basic objects (critical for letter recognition). – Only 30% could identify larger and smaller numbers (essential for early arithmetic). – Many children are skipping foundational ECE years, with 2% of 3-year-olds, 5.1% of 4-year-olds, and nearly 25% of 5-year-olds entering directly into Class 1.	– Children begin primary school without the necessary cognitive and academic readiness, impacting their long-term educational outcomes.

Key Operational and Engagement Challenges in India’s Early Childhood Education (ECE)

Challenge 2: Inefficient Resource Optimisation and Oversight

• The Government of India allocates only ₹1,263 per child annuallyfor ECE, in contrast to ₹37,000 per studentfor school education.
• A large share of this funding goes to developing teaching-learning materials, which often remain underutiliseddue to shortage of trained educators.
• Oversight mechanisms are weak: On average, one supervisor oversees 282 Anganwadi centres, making effective monitoring unfeasible.

Recommendations and State-Level Initiatives

State	Initiative	Focus Area
Uttar Pradesh	– Recruitment of ~11,000 ECE educators for Balavatikas across all districts. – Conducted a six-day residential training for 50 master trainers from 13 districts on ECE pedagogy.	Teacher workforce and training
Odisha	– Implementation of Shishu Vatikas in all government schools to ensure school readiness among 5–6-year-old children.	Universal ECE access and transition

• Policy Recommendation: Allocate targeted fundingto recruit additional supervisors and dedicated ECE teachers—a modest investment with high developmental returns.

Challenge 3: Limited Parental Engagement in Early Learning

• While most parents value education, many lack awareness or toolsto effectively support their child’s early learning at home.
• Simple strategieslike sharing worksheets, or inviting parents to participate in centre activities, can significantly enhance learning outcomes.

Example of Good Practice

State	Initiative	Objective
Madhya Pradesh	– Monthly Bal Choupal programme to engage parents and demonstrate the value of play-based learning.	Raise awareness and encourage parental support
All States	– With near-universal smartphone access, parental involvement can be enhanced via WhatsApp and EdTech apps.	Digital outreach for continuous engagement

• Recommendation: Develop parent-focused communicationand training modules to extend learning beyond classrooms.

Empowering Future Generations

• Reversing these challengesmay appear daunting, but with targeted funding and enhanced parental involvement, we can build a strong foundation for our children’s future.
• Such investments are essential to ensure that every child receives the support they need to thrive.
• By 2047, over one billion Indiansare expected to enter the global workforce, creating an unprecedented opportunity to redefine India’s position in the world economy.

Conclusion

Strategic investments in Early Childhood Education (ECE), combined with active engagement of parents in their children’s learning journey, have the potential to help approximately 200 million Indians overcome the lottery of birth. This will empower today’s young learners to become the leaders of tomorrow. This approach represents a vital pathway to achieving India’s aspiration of becoming a true Vishwa Guru, thereby empowering generations and driving sustained national progress.