MAINS Current Affairs includes Rising Digital Addiction & Mental Health Issues & Economic Survey Calls for Relaxing FRBM Targets

Health

1. Rising Digital Addiction & Mental Health Issues

Context

• The Economic Survey 2025-26, has flagged the rapid rise of digital addiction and screen-related mental health problems as a major healthcare issue, particularly among children and adolescents.

Digital Addiction as an Emerging Public Health Issue

• The Survey recognises excessive screen time and social media usageas contributors to anxiety, depression, attention disorders, sleep disruption, obesity, and lifestyle diseases.
• Children and adolescents are identified asneurologically and psychologically more vulnerable to compulsive digital use due to addictive platform designs.
• Behavioral tracking and targeted advertising exploit children’s cognitive vulnerabilities, reinforcing addictive consumption patterns.

Key Recommendations of the Economic Survey 2025-26

• Age-Based Limits: The Survey calls for consideration of age-based limits on access to social media platforms to address growing concerns about digital addiction among children and adolescents.
• Stricter Age Verification:Online platforms should be made responsible for enforcing age verification processes so that minors cannot easily create accounts or access content meant for adults.
• Age-Appropriate Default Settings:Platforms should adopt age-appropriate defaults, meaning settings that are tailored to protect younger users by default.
• Targeted Advertising:The Survey also recommends curbs on targeted advertising specifically for minors, and restrictions on features like auto-play that can exacerbate compulsive use.

Initiatives taken by Government

• The Online Gaming (Regulation) Act, 2025,bans online money games involving wagering and introduces a licensing framework for skill-based games.
• Tele-MANAS, a 24/7 mental health helpline with an app to assist with technology addiction.
• The SHUT Clinic at NIMHANS, Bengaluru,is India’s first specialized center dedicated to treating technology addictions, such as excessive gaming, social media use, and mobile dependence.
• The Digital Detox Centre (“Beyond Screens”) in Karnataka, a resource for counseling and therapy.

Global Best Practices

• Australiahas enacted the Online Safety Amendment (Social Media Minimum Age) Act, making it the first country to impose a statutory minimum age of 16 years for social media use.
• Francehas moved to restrict social media access for users under 15, requiring parental authorization to create accounts, with the bill passing the lower house in 2026.

Way Ahead

• The stress should be given on astrategic transition from a treatment-centric model to a public and preventive healthcare-led approach.
• There is a need for Integration of mental health services with schools and higher educational institutions.
• Dedicated counsellors must be trained and deployed at scale to normalise help-seeking behaviour among children and adolescents.
• Network-level safeguards should be strengthened through differentiated data plans that clearly separate educational usage from recreational consumption.

ECONOMY

2. Economic Survey Calls for Relaxing FRBM Targets

Context

• The Economic Survey 2025–26 recommends postponing strict fiscal consolidation targets mandated under the Fiscal Responsibility and Budget Management (FRBM) Act for the Central Government, citing current economic needs.

Survey’s Key Points on Fiscal Targets

Fiscal Consolidation Progress

• India’s fiscal deficit, which had shot up to 2% of GDP in FY21 during the pandemic, is poised to fall to 4.4% by the end of FY26—consistent with the aim of halving the FY21 deficit within five years.
• The country has reduced its general government debt-to-GDP ratio by 1 percentage points since 2020 while still maintaining high public investment.

FRBM Target Challenges

• The FRBM-mandated fiscal deficit limit of 3% of GDP by March 2021 has faced repeated extensions.
• The Survey notes a growing perception that the full FRBM framework needs reinstatement, but emphasises that India’s circumstances require flexibility.
• Since the FRBM Act came into force in 2003, the 3% deficit target has been achieved only once.

Revised Fiscal Strategy

• The Finance Minister’s last Budget introduced a new medium-term fiscal path, aiming to bring the Centre’s debt-to-GDP ratio to 50% (with a 1% band on either side) by 31 March 2031.
• The Survey supports this approach as the appropriate strategy for now, after which a fresh FRBM target can be considered once debt stabilisation is achieved.
• It argues that fiscal deficit reduction should be gradual, realistic, and aligned with India’s investment needs.

Concerns Over State Finances

• While recognising the Centre’s fiscal consolidation efforts, the Survey flags deteriorating financial conditions in many States, urging them to exercise greater fiscal discipline.

FRBM Act, 2003 – Overview

• The Act was enacted to set a statutory framework for medium-term reduction of the Central Government’s fiscal deficit.
• Rules took effect in 2004.
• FRBM mandates keeping the Centre’s fiscal deficit within 3% of GDP (originally by March 2021).
• It also recommends limiting General Government Debt to 60% of GDP and Central Government Debt to 40% of GDP by March 2025.

What is Fiscal Deficit?

• Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Capital Receipts).
• It represents the excess of government expenditure over non-borrowed receipts in a financial year.

Implications of High Fiscal Deficit

• Inflationary Pressures: Persistent deficits can fuel inflation if financed through central bank liquidity.
• Crowding-Out Effect: Heavy government borrowing reduces funds available for private investment.
• Lower Fiscal Flexibility: High deficits reduce the government’s ability to respond during crises.
• Higher Borrowing Costs: Weak fiscal health makes borrowing more expensive, as lenders demand higher interest rates.

Advantages of Lower Fiscal Deficit

• Better Credit Ratings: Higher fiscal credibility improves international ratings and lowers external borrowing costs.
• Reduced Interest Burden: Lower debt servicing frees resources for welfare and infrastructure.
• Stronger External Position: Reduced external dependence improves exchange rate stability and the current account.
• Higher Investor Confidence: Fiscal discipline attracts both foreign and domestic investments.

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