CURRENT AFFAIRS | MARCH 2026
Prelims: 16th FC composition and formula, FNTA coverage, Bharat Taxi, NDMA SOP, RBI digital fraud compensation
Mains: GS-II — Fiscal federalism, cooperative federalism, special provisions for states, disaster management
Judicial Services Relevance: Article 280(1) — Finance Commission, NGT jurisdiction (National Green Tribunal Act 2010), Article 371(A) — special provisions for Nagaland, RBI regulatory framework, cooperative federalism jurisprudence
16th Finance Commission: Redefining Fiscal Federalism
The 16th Finance Commission (FC), headed by Dr. Arvind Panagariya, was tabled on February 1, 2026. The Commission’s recommendations cover the period April 2026 to March 2031 and introduce significant changes to both vertical and horizontal devolution formulas.
• Chairman: Dr. Arvind Panagariya
• Constitutional basis: Article 280(1)
• Vertical devolution: 41% of divisible pool to states
• Period: April 2026 – March 2031
• NEW criterion: Contribution to GDP (10%) added to horizontal formula
The horizontal devolution formula determines inter-state distribution and includes the following criteria:
- Population — 17.50% weightage
- Demographic performance — 10%
- Area — 10%
- Forest cover — 10%
- Per capita GSDP (inverse) — 42.50% (largest weight, rewarding poorer states)
- Contribution to GDP — 10% (NEW criterion, incentivizing economic growth)
– Article 280(1) mandates the President to constitute a Finance Commission every five years
– FC recommendations are advisory but conventionally accepted by the Union Government
– Key judicial precedent: In Re: Kerala Education Bill (1958) — federalism as basic structure
– The 16th FC’s introduction of “Contribution to GDP” marks a shift from purely redistributive to incentive-based federalism
Meghalaya Rat-Hole Mining Crisis & NGT Jurisdiction
The ongoing Meghalaya rat-hole mining crisis, with 25 deaths reported, highlights the persistent violation of the National Green Tribunal (NGT) ban imposed since 2014. The crisis is concentrated in East Jaintia Hills, where illegal coal mining continues despite judicial orders.
From a judicial services perspective, this raises critical questions about the enforcement capacity of quasi-judicial tribunals and the role of the High Court under Article 226 in ensuring compliance with NGT orders.
Bharat Taxi, NDMA SOP & RBI Digital Fraud Framework
Bharat Taxi was launched on February 5 by Home Minister Amit Shah as a zero-commission ride-hailing platform. It is backed by STCL, NCDC, and NABARD, operating as a cooperative model to challenge private aggregators.
The NDMA released its first-ever Standard Operating Procedure (SOP) for disaster victim identification, coming 25 years after the 2001 Gujarat earthquake. Key features include the National Dental Data Registry and protocols for forensic archaeology in mass casualty events.
• FNTA (Frontier Nagaland Territorial Administration): Tripartite agreement between ENPO + Nagaland govt + MHA
• FNTA covers 6 districts with 46 subjects; Art 371(A) unaffected
• 7 tribes covered: Konyak, Khiamniungan, Chang, Sangtam, Tikhir, Phom, Yimkhiung
• Nagaland carved from Assam in 1963
• RBI digital fraud compensation: Rs 25,000 from DEA Fund (2014, unclaimed deposits 10+ years)
• Art 280 FC framework — constitutional obligation, advisory nature, enforcement through political conventions
• NGT jurisdiction under the National Green Tribunal Act 2010 — appellate vs. original jurisdiction, limitation period
• Art 371(A) — special provisions protecting Naga customary law; limits on Parliamentary legislation
• Cooperative federalism — examined in S.R. Bommai v. Union of India (1994) and State of West Bengal v. Union of India (1963)
• RBI regulatory framework — digital fraud provisions under the Payment and Settlement Systems Act, 2007
K — Konyak
K — Khiamniungan
C — Chang
S — Sangtam
T — Tikhir
P — Phom
Y — Yimkhiung
Source: UPSC Essentials, The Indian Express — March 2026
Practice Quiz
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Practice Quiz — 10 Judiciary Exam-Style Questions
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