What to Read in Indian Express Editorial( Topic and Syllabus wise)

Editorial 1 : Trust in the Taxpayer

Context: Tax break for middle class is great. But can it boost the economy?

 

Introduction: Demand revival takes the centre stage in pursuit of faster growth. To kick-start the so far subdued growth in private investment and urban demand, Finance Minister announced relief to taxpayers with incomes below Rs 12 lakh. People in this category will not have to pay income tax. The new tax regime, already beneficial, has been rejigged to offer lower rates of tax on higher incomes.

 

Fiscal Impact

• Immediate Cost: Estimated ₹1 lakh crore revenue loss for the government.
• Potential Long-Term Benefits:
  1. If demand rises, increased consumption could boost future tax revenues via a "multiplier effect".
  2. Corporate tax cuts (2019) had short-lived investment boosts, raising scepticism about sustained fiscal gains.

 

Targeting the Middle Class

• Median Gross Income: ₹5–5.5 lakh for tax filers (only 6.68% of India’s population files returns).
• Consumption Patterns
  1. Urban median monthly expenditure: ₹6,334
  2. Rural median monthly expenditure: ₹3,866
• Key Questions
  1. Will tax savings spur goods/services consumption and job creation?
  2. Are income tax cuts more effective than indirect tax reforms (e.g., GST rationalization) for boosting demand?

 

Corporate Tax & Compliance Reforms

• Dispute Resolution
  1. Focus on transfer pricing simplification to reduce administrative burdens.
  2. Block audits for 2 years to streamline assessments for recurring issues.
• Ease of Compliance
  1. Rationalized TDS thresholds and clearer capital gains calculations.
  2. Aims to improve business confidence and operational efficiency.

 

Future Tax Reforms

• Income Tax Act Overhaul
  1. Proposed 50% reduction in Act’s size and removal of penal provisions.
  2. Budget signals intent to build taxpayer trust through simplicity.
• Debate Trigger: Can tax cuts alone drive growth, or are structural reforms (e.g., labour, land) equally critical?

 

Key Considerations & Challenges

• Distributional Effects
  1. Tax cuts disproportionately benefit higher-income brackets (e.g., ₹12 lakh+ earners).
  2. Limited impact on rural/low-income households outside the tax net.
• Multiplier Effect Uncertainty
  1. Success hinges on whether savings are spent (stimulating demand) or saved (limiting growth).
  2. Past corporate tax cuts saw temporary gains, highlighting risks of short-termism.

 

Conclusion: The tax reforms aim to strike a balance between demand revival and fiscal prudence, but their efficacy depends on consumption responsiveness of middle-class households and other complementary measures such as indirect tax reforms, job creation etc.

 

Editorial 2 : No More Incrementalism

 

Context: India needs more than NIPUN Bharat — states need to step up.

 

Introduction: The Annual Status of Education Report (ASER) 2024 offers a glimmer of hope about India’s education landscape. It suggests that the alarming learning losses inflicted by the Covid-19 pandemic are beginning to reverse, particularly in states implementing the NIPUN (National Initiative for Proficiency in Reading with Understanding and Numeracy) Bharat mission with rigour.

 

Challenge and Recommendations

• Delays in achieving universal foundational literacy and numeracy (FLN) risk leaving millions of children without the basic skills necessary to lead dignified lives.
• While states are making strides through material distribution, structured pedagogy, and teacher training, four critical strategies remain underutilised. 
• These steps are politically challenging but can accelerate progress toward ensuring every child attains FLN by 2030.

 

Launch a nationwide public education campaign

• Public awareness campaigns have proven transformative in sectors like health (for example, the Pulse Polio drive) and tourism. Yet, education particularly FLN lacks a comparable societal mobilisation.
• A sustained campaign could spotlight the urgency of foundational skills, clarify the roles of parents and communities, and destigmatise systemic shortcomings.
• Significance: Studies show that investments in FLN yield returns five to six times higher than later remedial programs like vocational training.

 

Forge transparent, large-scale partnerships with the private sector

• Despite the private sector’s potential, collaborations remain ad hoc and mistrustful.
• Effective partnerships could involve education technology firms developing AI tools to assess oral reading fluency in regional languages, grassroot NGOs with expertise scaling remedial programmes, CSR initiatives funding classroom resources or teacher training and even individuals volunteering in a structured way as per an outline shared statewide.

 

Leverage assessments as tools for progress, not judgement

• Assessments are often viewed as punitive rather than diagnostic.
• States must reframe them as tools to shine a spotlight on gaps and guide interventions.
• Emerging technologies can revolutionise assessments. AI-powered tools now measure oral reading fluency, providing real-time feedback to students.
• By committing to systematic, tech-enabled assessments, states can transform raw data into actionable insights.

 

Acknowledge and address gaps openly

• Many states treat low learning outcomes as political liabilities, suppressing unfavourable data.
• The Swachh Bharat campaign’s success hinged on acknowledging India’s sanitation crisis; similarly, FLN progress demands candour.
• Celebrating incremental gains while openly addressing setbacks can build public trust and sustain momentum.

 

Conclusion: Time to act with urgency

With 2030 as the deadline for the United Nations’ Sustainable Development Goals, India cannot afford incrementalism. The NIPUN Bharat initiative, teacher training programmes, and curricular reforms are commendable first steps. However, the scale of India’s learning crisis demands bolder action. A nationwide FLN campaign, robust private partnerships, data-driven assessments, and unflinching transparency could bridge the gap between intent and impact.