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Ecological Fiscal Transfers

  • Vaid's ICS, Lucknow
  • 09, Oct 2021
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Why in News?       

Center for Global Development analyzed state budgets to examine whether ecological fiscal transfers (EFTs) have impacted state forestry expenditures in a recent study.

  • EFTs is meant to reward states that protected their forests. Within the total centre-state disbursement, 5% was set aside to be divided among states based on the area of forests within states (by 14th Finance Commission).
  • Consequently, states that preserved forests stood to gain in terms of greater disbursement from the centre.
  • Based on available state budget data of 25 Indian states which accounted for 90% of India’s forest cover (as of 2013), they find that forestry budgets increased by 19% in the three years EFTs were introduced.
  • However, the authors do not attribute the increase in forestry budgets to EFTs because forest spending as a share in total state spending actually decreased by 16% post EFT.

Facts for Prelims:


The Ministry of Ayush’s advisory on the use of Guduchi, also known as Giloy, confirms that Guduchi (Tinospora cordifolia) is safe to use but some similar looking plants like Tinospora crispa may be harmful.

  • Guduchi is a popularly known herb and has been used in therapeutics since long in AYUSH systems.
  • It is a large, glabrous, perennial, deciduous, climbing shrub of weak and fleshy stem found throughout India.
  • It is a widely used plant in folk and Ayurvedic systems of medicine.