5th Feb 2020 : The Hindu Editorials Notes : Mains Sure Shot


No. 1.

Question – Discuss the impacts of attaching medical colleges to existing district hospitals in the PPP mode.

Context – The experiment of PPP model in hospitals.


  • Setting up of medical colleges in existing district hospitals under the Public Private Partnership (PPP) mode.
  • The States which fully allow the facilities of the hospital to the medical college and wish to provide land at a concession would be eligible for viability gap funding.


  • To address the shortage of doctors.
  • It is practically not possible for Central and State governments to bridge the gaps in medical education with their limited resources and finances, necessitating the formation of a PPP model.


  • It combines the strengths of both sectors – public and private.
  • It augments the number of medical seats available.
  • moderates the costs of medical education.


  • Allowing private parties to “operate and maintain the district hospital and provide healthcare services” could seriously dent public health services
  • The draft indicates that the private firm “can demand, collect and appropriate hospital charges from patients”.
  • It destabilizes people’s access to affordable public health services, which can be disastrous.

Way forward:

  • The government must consider raising health-care spending beyond the usual under 2% of GDP.
  • It should ensure more resources are available to provide free, quality health care to all.



No. 2.

Note – Today there is an article on the 15th Finance Commission. The following are the major highlights:


  • The appointment of the Fifteenth Finance Commission by the President of India under Article 280 of the Constitution was notified on November 27, 2017.
  • It was required to submit the report by October 30, 2019 for five years for the period 2020-21 to 2024-25.
  • However, due to various political and fiscal developments, the tenure of the Commission was extended to submit its report.
  • Now it will submit two reports, one for 2020-21 and the second covering the period of five years beginning April 1, 2021.

Finance Commission and its functions:

The Finance Commission has the following functions or duties:

  • The Commission makes recommendations to the President of India on the distribution of tax proceeds between the Union and the States and the share of each state.
  • The Commission also decides the principles that govern the payment of grants-in-aid to states from the Consolidated Fund of India.
  • The President of India can also refer any other matter to the Finance Commission in the interest of building a sound financial system.

Reasons for extension:

  • The abolition of Statehood to Jammu and Kashmir required the Commission to make an estimation excluding the Union Territory.
  • The deceleration in growth and low inflation has substantially slowed down the nominal GDP growth which is the main tax base proxy; making projections of tax revenues and expenditures based on this for the medium term could have posed serious risks.

Recommendations suggested in the Report:

  • The Commission has continued with the approach and methodology adopted by the previous Commissions for tax devolution and revenue-gap grants.
  • vertical division of taxes – States’ share is 41%
  • For the horizontal shares, however, the formula has been changed to consider “fiscal needs, equity and efficiency”.
  • Factors considered – income distance, population and area and forest cover, two additional factors — demographic performance and tax effort were also used.
  • Weightage:

o    15% weight to the 2011 population,

o   reduced the weight of income distance to 45%,

o   increased the weight to forest cover and ecology to 10%

o   12.5% weight to demographic performance and

o   2.5% weight to tax effort.

  • In terms of relative shares in tax devolution, among the major States the biggest loser is Karnataka followed by Uttar Pradesh, Kerala, Telangana and Andhra Pradesh.
  • The major reason for Karnataka and Kerala losing on devolution is that their per capita income growth has been faster than most other States.
  • Suggested grants for local bodies amount to ₹90,000 crore comprising ₹60,750 crore for panchayats and the remaining ₹29,250 crore for municipal bodies.
  • For PRIs, 50% of the grant is tied to improving sanitation and supply of drinking water, rest untied.
  • The Commission has recommended the creation of a disaster mitigation fund at the Central and State levels.
  • For 2020-21, it has recommended ₹7,735 crore for improving nutrition based on the numbers of children in the 0-6 age group and lactating mothers.
  • Proposed to give grants for police training, modernisation and housing, railway projects in States etc.

Leave a Reply

Your email address will not be published. Required fields are marked *