Five States are seeking fair taxes, a cap on cess and a surcharge

A conclave of Finance Ministers of five States organised by the Kerala government as the 16th Finance Commission has started its work and expressed concern over the growing imbalance in Centre-State fiscal relations. 

It demanded a fair and equitable division of resources among the States, capping of the cesses and surcharges collected by the Centre and an end to "penalising" of States that perform well. 

The Ministers demanded a raise in the State's share in the divisible pool from 41% to 50% and a reduction in the number of "one-size-fits-all" Centrally sponsored schemes. 

They suggested that the cesses and surcharges be capped so that anything above the limit gets routed to the divisible pool. 

Inflation is under 4%, but vegetable prices are up again

India's retail inflation stayed under the Reserve Bank of India's median target of 4% for the second successive month in August, even as it inched up marginally to 3.65% from an upwardly revised 3.6% in July. August's inflation pace is the second-slowest in five years. 

The base effect from last year, when retail prices rose 6.8% in August, helped keep inflation growth in check yet again, but food inflation quickened from July's 13-month low of 5.4% to 5.7% and crossed the 6% mark in rural India. 

Overall, rural inflation stayed elevated compared with that faced by urban consumers, rising marginally from 4.1% in July to 4.16%, while urban inflation stood at 3.14% in August.

Good, but not enough

In a welcome move, the Union government's decision to extend the coverage of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to senior citizens over 70 years, irrespective of their income, provides a modicum of free health coverage to nearly 60 million people. 

With out-of-pocket expenditure for health care in India among the highest in the world, the decision is indeed laudable.

Health care using Al is bold, but much caution first

News about the possibility of a "free AI powered primary-care physician for every Indian, available 24/7" within the next five years is ambitious. 

It raises critical questions about feasibility, sustainability, and the readiness of India to tackle such enormous undertakings. 

Primary health care (PHC) ensures the right to the highest attainable level of health by bringing integrated services closer to communities. It addresses health needs, tackles broader health determinants through multisectoral action, and empowers individuals to manage their health. 

We risk undermining this fundamental aspect of PHC by relying on Artificial Intelligence (AI) as it is impersonal, making people passive recipients of care rather than active participants. 

AI excels in processing and automating repetitive tasks but lacks characteristics of human intelligence such as understanding the physical world, retrieving complex information, maintaining persistent memory, and engaging in reasoning and planning. 

What does the dissolution of SCOS entail?

The 14-member Standing Committee on Statistics (SCOS), led by Pronab Sen, has been dissolved due to overlap with the Steering Committee for National Sample Surveys. 

SCoS advised on survey methodologies, and tabulation plans, and addressed issues related to statistical surveys. 

The new 17-member Steering Committee, including four former SCoS members, will perform similar functions but with more official members. 

There is significant pressure to conduct the next census, delayed from 2021 due to COVID-19, to provide updated data for decision-making. 

Economists and policymakers recommend conducting the next census promptly to ensure accurate data for effective decision-making. 

What role does CSTT play in standardising technical terms?

The CSTT is responsible for developing standardised scientific and technical terminology in Indian languages. 

The CSTT launched the 'Shabd' platform, a digital glossary search website that hosts all its technical glossaries in a searchable format. 

This platform serves as a central repository for scientific and technical terms in Indian languages, allowing users to search by language, subject, or dictionary type. It aims to make terminologies more accessible and encourages feedback from users to refine translations. 

Doval meets Putin, Wang in a dual diplomatic mission

On a day marked by high-level diplomacy, National Security Adviser Ajit Doval met Russian President Vladimir Putin and Chinese Foreign Minister and Special Representative Wang Yi on the sidelines of the BRICS NSAs meeting in Saint Petersburg. 

He discussed the way forward on the Russia-Ukraine conflict and the military disengagement on the Line of Actual Control (LAC) with China with "urgency", with them, respectively. 

Mr Doval began his meeting with the Russian President by telling him about Prime Minister Narendra Modi's visit to Kyiv and the meeting with Ukrainian President Volodymyr Zelenskyy on August 23. 

The talks are significant as calls have increased from other countries in Europe calling for India to step up efforts at a peace process. 

Mr Modi and Mr Zelenskyy will be in New York for the UN Summit of the Future, and officials said the leaders could hold another meeting there. 

Health insurance for people aged 70 and above to be rolled out in a week: official

The Union government will roll out free health insurance for all senior citizens aged 70 and above under the flagship Ayushman Bharat Pradhan Mantri Jan Arogya Yojana within a week, a senior Health Ministry official said. 

He said that initially there would be a pilot launch to sort out any issues that might arise. "It is an application-based scheme. People will need to register on the portal. Facility of face authentication is available on the portal, which will have a designated link for those above 70," he said. 

The scheme aims to benefit approximately 4.5 crore families with six crore senior citizens by providing ₹5 lakh free health insurance cover on a family basis. 

Industrial output grew 4.8% in July

India's industrial output grew 4.8% in July, the second-slowest pace in FY25, following an upgraded 4.7% rise in June, even as mining and electricity growth slowed and non-consumer durables' output slid by a sharp 4.4%, marking the third contraction in four months for the category. 

In absolute terms, the Index of Industrial Production (IIP) slid to a three-month low, with output levels declining 0.73% from June. 

Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was the only broad segment to clock a sequential uptick over June's levels, albeit by a tepid 1.6%. 

At least 22,500 in Gaza have life-changing injuries: WHO

The World Health Organisation said that at least a quarter of those hurt in the war raging in Gaza have suffered "life-changing injuries", many requiring amputations and other "huge" rehabilitation needs. 

At least 22,500 of the people injured in Gaza in the 11 months since the war erupted will "require rehabilitation services now and for years to come", the WHO said in a statement. 

"The huge surge in rehabilitation needs occurs in parallel with the ongoing decimation of the health system," Rik Peeperkorn, the WHO's representative for the Palestinian territories, said in a statement.