Popular Aspirations and Government Commitments: Revisiting the Perspectives and Positions on Budgets and Public Policies in Election Manifestos

Siba Sankar Mohanty

The budget is a veritable tool for effective service delivery to the people by any government, the performance of budget with the Nigerian ministries has been an issue of concern in recent times. There has been lopsided budget performance with current expenditure performing as high as 100% in a budget year while capital expenditure performing less than expected. With that situation, public sector budget implementation and performance needs a review. This paper critically examines the public sector budget in Nigeria, looking at the various types, processes involved in preparation as well as the implementation cycle and how these have fared against international best practices and standards. The paper adopts Meta-analysis methodology. The study reviewed and anchored on System Analysis Theory. Past empirical literature reviewed and trend analysis showed a huge funding gap that exist among the ministries of government in terms of budget targets and actual budgetary performance over the years and especially in the last five years. The paper via its literature review highlighted some of the issues with Public sector budget in Nigeria viz a viz other nations to include i) Inadequate implementation; ii) Lopsidedness of budgetary allocation; iii) Corruption and wastages; iv) Inability to engage in international best practices; v) Weak or nonexistence of the public participation in the budgeting process; vi) 24 % Open budget index (against 45% global average) and 22% to 26% participation rate within the last seven (7) years among others. The prospects however include its ability to Preparation of a Medium-Term Revenue Framework (MTRF) pursuant to which projected revenue from various oil and non-oil sources is determined over the medium-term; has attained improvement in the rating of international bodies in terms of budget transparency and participation in the past among others. The study concludes with suggestions on ways to better the public sector budgeting process to include: Engage in participatory budgeting (Citizenship Budgeting Process). Engage in Eco and Green Budgeting; Regular Review of budgetary control practices; More deployment of ICT infrastructure in Budgeting processes, monitoring and controls; and Reorientation of stakeholders in the budgeting system (Executive and Legislature)

Participatory Budgeting (PB) is a democratic innovation that strengthens local democracy by including citizens in budget decisions. By doing so from formulation to execution, it allows for more responsible, equitable and transparent spending. This policy brief highlights key issues that should be observed for effective implementation. Recommendations 1. Design PB as a binding deliberative process; 2. Make a reasonable amount of money available for deliberation; 3. Make PB as inclusive as possible; 4. Ensure deliverance on the projects that emerge from deliberations; 5. Create and strengthen networks of PB promoters

It is no secret that the finance Minister Mr Arun Jaitley had to present his budget in an economic environment characterized by more of gloom and less of advantage. The important manifestations of gloom are: the weak global economy with a slowdown of demand , stagnating domestic infrastructure(except highway constructions), high debt burdens of the corporates, high NPAs(Non Performing assets) of the banks, increased rural and agrarian distress, requirements of jobs far exceeding its creation and two consecutive poor monsoons. The two silver lines are the falling oil price and the comfortable foreign exchange reserves at USA $351 billon. In such a situation, making a budget and using it as cardinal instrument of economic and social development for a country like India was daunting. The budget has been presented. Now it is time for postmortem. Let me start this postmortem with my usual caveat that budget is neither the only economic policy paper nor the last word in economic policy making. There are many more policy papers, words and actions of economic policy that happen and I am sure would happen this time too, that walk off the realm of budget. Further, the recent implementation of the 14 th finance commission recommendation that has raised the share of states in the divisible pool of central taxes from 32% to 42%, has to some extent squeezed the revenue and resource intervention base of the central government. In such a situation, budget is essentially a benchmarking exercise that defines the fundamental contours of economic policy of the Government of the day.

BackgroundNote NATI ONAL CONVENTI ON ON UNI ON BUDGET 2009-10 17 and 18 September 2008 organised by People's Budget Initiative Secretariat Centre for Budget and Governance Accountability Organising Committee ActionAid u Amnesty International - India u BARC u CBGA u CDSA CEHAT u Charkha u CLRA u CYSD u GDS u HRLN u I SST u Nirantar u NACDOR National Social Watch Coalition u NCAS u NCDHR u North East Network u OLS OWSA u Oxfam India u PWESCR u Social Watch – Tamilnadu u Samarthan Sanket u UNIFEM u Water Aid u Wada Na Todo Abhiyan Copyright @2008 Cent re for Budget and Governance Account abilit y Reproduct ion of t his publicat ion for educat ional or ot her non-commercial purposes is aut horized, wit hout prior writ t en permission, provided t he source is fully acknowledged. Cont ribut ors: Bhumika Jhamb, Gyana Ranj an Panda, Indranil, Jawed A. Khan, Kaushik Ganguly, Nilachala Acharya, Pooj a Parvat i, Sakt i Golder, Subrat Das, Trisha Agarwala (from CBGA); Siba Sankar Mohant y(NSA), NCDHR, PWESCR Edit orial Assist ance: Praveen Jha, Yamini Mishra, Subrat Das, Indranil Deepak Xavier, Divya Singh, Trish Agarwala Designing and Print ing : Krit i Creat ive St udio, 9873249374 Centre for Budget and Governance Accountability A-11, Second Floor, Nit i Bagh, Khel Gaon Marg, New Delhi - 110 049, INDIA Phone: +91-11-4174 1285 / 86 / 87 Email: cbadelhi@vsnl.net www.cbgaindia.org (Views expressed in t his compilat ion are of t he aut hors and not necessarily of t he People’ s Budget Init iat ive) Contents Popular Aspirat ions and Governm ent Com m it m ent s: Revisit ing t he Per spect iv es and Posit ions on Budget s and Public Policies in Elect ion Manifest os 5 Financing Rur al Developm ent : Som e I ssues Relat ing t o t he Budget and Fiscal Decent r alizat ion 11 Rur al Wat er Supply and Sanit at ion: I n Pur suit of Healt h and Dignit y 22 Agr icult ur e: Policy Rhet or ic and t he Har sh Realit y 28 Healt h: Som e Cr it ical Gaps in Policy and I m plem ent at ion 40 Educat ion For All or Educat ion Far Away From All? 58 Deepening Gender Budget ing in t he Union Gover nm ent : Reflect ions on Som e Cr it ical I ssues 72 Public Spending by t he Union Gover nm ent : I ssues fr om t he Per spect iv e of Childr en 84 Pr ior it ies for Scheduled Cast es in t he Union Budget 92 Pr ior it ies for Scheduled Tr ibes in t he Union Budget 98 Union Budget and t he Unhear d Voice of t he Minor it ies in I ndia 106 Resour ce Mobilisat ion Effor t s by t he Union Gover nm ent 114 Public Policy on Clim at e Change and Env ir onm ent al Pr ot ect ion in I ndia: Som e Key I ssues and Challenges 122 ACRONYMS 129 GLOSSARY OF KEY BUDGETARY TERMS 132 For e w or d The significant nex t st ep for our dem ocr acy is t o m ov e fr om v ot es t o v oices. Furt her, in our under st anding, given t he exper ience of m or e t han 60 year s of st r uggle t o m ake our dem ocr acy m or e subst ant iv e, t his needs t o be done w it h a sense of ur gency . The People’s Budget I nit iat ive is an effor t in t his dir ect ion. The voices of sever al or ganisat ions and individuals w ho have com e t oget her from diverse fields have one com m on call—t hat com m on people hav e t he r ight t o be hear d in t he hit her t o closed budget m ak ing pr ocess. We w ant budget s t o be br ought out fr om behind t he st r ict ly closed door s t o t he public dom ain. Th e People’s Budget I nit iat ive organises a Nat ional Convent ion every year t o build a com m on underst anding am ong different st akeholders on crit ical gaps in public provisioning for im port ant sect ors and for arriving at a com m on set of priorit ised policy and budget ary dem ands for different sect or s. Th e People’s Char t er of Dem ands, t hus pr epar ed, for m s t he basis of our adv ocacy w it h different policy m akers and people’s m ovem ent s in t he ensuing m ont hs. Since t he cent r al idea is t o dem ocr at ise budget s and t o t ak e budget s t o people, t he Nat ional Convent ion br ings t oget her , not j ust academ icians or policy analyst s w or king on var ious sect or s, but also a significant num ber of par t icipant s w it h gr assr oot s lev el ex per ience. These par t icipant s ar e act ivist s and gr oups w or king r elent lessly on issues of hum an r ight s and socio- econom ic j ust ice across different part s of t he count ry, who are keen t o engage wit h t his process of influencing budget s. We ar e v er y glad t o pr esent t his docum ent pr epar ed w it h t he obj ect iv e of ser v ing as a Background Not e for t his Convent ion. This Background Not e com piles brief assessm ent s of t he budget ary provisions and policy priorit ies of t he Union Gov er nm ent for som e of t he cr it ical sect or s, ov er t he last few y ear s in gener al, and in t he last one y ear in par t icular . The sect or s cov er ed include t hose econom ic sect or s ( such as, r ur al developm ent and agr icult ur e) and social sect or s ( such as, healt h and educat ion) w hich ar e cr ucial for addr essing dev elopm ent deficit s of t he lar ge num ber of poor and disadv ant aged people in I ndia. I n addit ion t o t hese, t he Not e pay s specific at t ent ion t o budget ar y pr ov isions and policy pr ior it ies of t he Union Gover nm ent for som e of t he disadvant aged sect ions of our populat ion, such as w om en, childr en, dalit s, adiv asis and m inor it ies. I t also includes br ief com m ent aries on resource m obilizat ion effort s by t he Union Governm ent and policy effort s by t he governm ent for addressing im port ant concerns relat ing t o environm ent and clim at e change. We w ould like t o convey our sincerest t hanks t o all m em bers of t he People’s Budget I nit iat ive as well as m em bers of t he Organising Com m it t ee for t heir support and guidance in t his process. Ther e ar e sev er al challenges confr ont ing t his init iat iv e, som e of w hich ar e r oot ed in t he hit her t o alm ost t ot al disconnect of com m on people w it h t he budget m ak ing pr ocess in our count r y and som e r elat ing t o t he conv ent ional pr act ice of t he gov er nm ent k eeping t he budget m ak ing pr ocess opaque. However, t he People’s Budget I nit iat ive is st r iv ing t o ov er com e t hese challenges w it h appr opr iat e adv ocacy st r at egies and gr eat er suppor t of civ il societ y or ganisat ions fr om acr oss t he count r y , in par t icular t he civ il societ y budget gr oups based in differ ent St at es. Ya m in i M ish r a CBGA, Se cr e t a r ia t of Pe ople ’s Bu dge t I n it ia t iv e Popula r Aspira t ions a nd Governm ent Com m it m ent s: Re visit ing t he Pe r spe ct ive s a nd Posit ions on Budge t s a nd Public Policies in Elect ion M a nifest os Siba Sa n k a r M oh a n t y * I . I ntroduction At t he cor e of any funct ioning dem ocr acy is t he not ion t hat policy out com es m ust r eflect t he desires of t hose who are governed. This link bet ween popular desires and policy form ulat ions depends on t hr ee basic elem ent s of r epr esent at ion, st abilit y and societ al conflict s. While bot h t he issues of r epr esent at ion and st abilit y ar e im por t ant , t he last elem ent of ‘conflict ’ is of no less significance as no m at t er how desirable t he popular aspirat ions m ight be, it result s in som e form of shor t t er m loss for som e ent it ies. For a t r ue r epr esent at ive of t he com m on people, such conflict s m ay be ignor ed. But a gov er nm ent t hat pr et ends t o be a cham pion of t he m asses but t hr iv es lar gely w it h t he suppor t of a pow er ful but m iniscule sect ion of populat ion m ay opt t o underm ine t he popular aspirat ion and ignore t he very sam e prom ises, it has m ade before t he m asses. I n a dem ocracy, prom ises m ade by t he elect ed represent at ives for t he w ellbeing of t he com m on people hold a lot of significance. Not j ust for t he logic t hat t he polit ical for m at ions ar e assessed by r elevance of t hese pr om ises for t he m asses, t hese pr om ises also r eflect t he popular aspir at ions of t he com m on people. Alt hough, t he w ay dem ocr acy is pr act iced in I ndia has lit t le r elev ance t o elect or al out com es, in v er y subt le w ay s, t hese pr om ises r eflect a loose consensus of ( at least ) t he num erous m em bers of t he polit ical form at ions t hat uphold t hose prom ises. I n t he present paper we t ry t o present t he significant issues raised by t he m aj or polit ical form at ions in I ndia. Tow ards t his, an analysis of t he m anifest os of t he m aj or polit ical part ies during last General Elect ion pr ovide us cr it ical insight s int o t he gaps bet w een t he r het or ic and r ealit ies of upholding popular aspirat ions of t he m aj or polit ical out fit s in t he count ry. An effort has also been m ade here t o present an int ernat ional cont ext of popular aspirat ions and governm ent com m it m ent s. I I . Political Parties Taking Clear Positions on Budget and Public Policy: Evidences from Select ed Count ries There are num erous exam ples of polit ical part ies t hat t ake clear policy posit ions for t he w ell being of t he m asses and im plem ent ed t hose w it h adequat e ur gency aft er t hey cam e t o pow er of governing irrespect ive of t he financial posit ion of governm ent or t he econom y. I t is t herefore argued t hat m ore t han financial const raint s, lack of polit ical will is a m aj or hurdle in upholding t he popular aspirat ions. Take, for exam ple, t he case of I ndia and t he issue of universalisat ion of educat ion. The day t he issue of ‘Right t o Educat ion’ w as r em oved fr om t he list of fundam ent al r ight s and t hr ow n int o t he spur ious list of ‘Dir ect ive Pr inciples of St at e Policies’ in t he Const it uent Assem bly during t he m aking of our Const it ut ion, t he lack of polit ical will was clear. Since t hen sev er al effor t s w er e m ade t o r ecognize t he significance of r ight t o educat ion for t he w ell being of t he m asses, t hrough init iat ives like Kot hari Com m ission Report , Tapas Maj um dar Com m it t ee Report , Right t o Educat ion Am endm ent and so on. But st ill aft er alm ost 7 decades of post independence planning and gover nance, w e ar e st r uggling w it h huge num ber of out of school children, m ost ly from t he deprived sect ions of our populat ion. On t he ot her hand, t her e ar e st ill sev er al count r ies t hat hav e show n clear polit ical w ill and pr ior it y t o hum an r esour ce needs of t he people and t o t he pr om ises t hey have m ade befor e t he m asses. Let us discuss t w o such issues ( such as Right t o Educat ion and Right t o Healt h) and t he st or ies of count r ies r ev olv ing ar ound t hose issues. I t is unfor t unat e t hat in 21 st cent ury I ndian Policy m akers are m aking cost benefit analysis of pr oviding r ight t o educat ion for all, but t he significance of t he issue have been in public dom ain for 2500 years aft er Plat o’s ‘Republic’. I n Count ries like Aust ria and Prussia, com pulsory prim ary educat ion for all childr en bet w een 5- 13y ear s is est ablished since lat e eight eent h cent ur y . Ther e ar e m any count r ies t hat w er e at par w it h I ndia in t er m s of t heir econom ic as w ell as educat ional at t ainm ent and size at som e point of t im e but have m ade rem arkable progress in universalizing educat ion in r ecent year s. One such count r y is China. I n 1986, t he Nat ional People’s Congr ess under t he leadership of Chinese Com m unist Part y ( CPC) prom ulgat ed t he “ Com pulsory Educat ion 5 BACKGROUNDNOTE Law of t he People’s Republic of China” , by placing basic educat ion in t he count r y on a legal basis. By 2002, China achieved 99 % net enrollm ent rat e in prim ary schools, access of j unior secondary schools by 97% of pr im ar y school pass out s and 58.3% of t he j unior secondar y school pass out s cont inue t heir st udy in senior secondary schools. By t he end of 2002, t he Nine- Year Com pulsory Educat ion ( NYCE) had been univer salized in t he ar ea w her e 90% of t he populat ion inhabit s; t he highest r at e am ong t he E- 9 count r ies. Sim ilarly, t he Cuban Com m unist Part y wit h m iniscule econom ic resources could give t op m ost nat ional pr ior it y t o healt h car e facilit y for all cit izens. I n 2006, BBC under t ook a sur vey of world’s best public ser v ices and consider ed Cuba’s healt hcar e as one such ex am ple of best public ser v ice. The r epor t by BBC st at es t hat “ life ex pect ancy and infant m or t alit y r at es ar e pr et t y m uch t he sam e as t he USA’s. I t s doct or - t o- pat ient r at ios st and com par ison t o any count r y in West er n Eur ope. I t s annual t ot al healt h spend per head, how ever , com es in at $251; j ust over a t ent h of t he UK’s” . Ther e ar e also sev er al ot her count r ies w her e polit ical par t ies hav e t ak e clear policy posit ions and have been able t o im prove t he lot of t he com m on m asses. I n 2005, Vladim ir Put in of Russia announced a social or ient at ion in t he dom est ic policy. As descr ibed by Put in him self, it w as a “ policy of invest m ent in people, and, hence, in Russia’s fut ure.” Governm ent policy had focused on im proving t he living st andards of t he Russian people. This w as t he goal of t he priorit y nat ional pr oj ect s, w hich w er e int r oduced in 2006. The pr oj ect s cov er t he m ost im por t ant and back w ar d spher es, such as healt h car e, educat ion, housing, and agr icult ur e. Russia saw t he r esult s of such social invest m ent very quickly. By 2007, under t he public healt h proj ect , m ore t han 40,000 unit s of diagnost ic equipm ent and over 13,000 am bulances have been purchased; m ore t han 90% of m ot hers have received birt h vouchers; free m edical care has been provided t o 1.3 m illion wom en and m ore t han 300,000 children; 1.2 m illion of newborn children have been screened for five congenit al diseases; 300,000 pat ient s hav e been giv en high- t ech m edical assist ance; m assiv e cam paigns on pr ev ent iv e m edical ex am inat ion and v accinat ion hav e been conduct ed. Aft er t he collapse of Sov iet Union, w it h a pr olonged econom ic cr isis and com plet e w it hdr aw al of t he gover nm ent , t he healt h sit uat ion had w or sened significant ly. But t he lat est sur ge in invest m ent clear ly show s t hat if t he gov er nm ent has t he w ill t o change t he sit uat ion it w ill definit ely find a way. A m or e det ailed analy sis on t he significance of clear policy st ands by int er nat ional polit ical par t ies and gover nm ent s is beyond t he scope of t his paper . I n t he follow ing sect ion w e have focused on t he polit ical m anifest os of som e m aj or polit ical part ies in I ndia and t he policy posit ions t hey hav e t ak en. I I I . A Review of t he Elect ion M a nifest os of m a j or na t iona l Polit ica l Pa rt ies brought out in 2 0 0 4 ( for t he General Elect ions held in 2 0 0 4 ) I n several cases, t he prom ises m ade by different polit ical form at ions are repet it ive. We have t ried t o highlight only t hose prom ises w hich are eit her quant ifiable or specific t o som e clear policy agenda. Bo x - 1 M a j or An n ou n ce m e n t s m a de in t h e M a n ife st o of t h e I n dia n N a t ion a l Con gr e ss du r in g Ge n e r a l Ele ct ion 2 0 0 4 1. 2. 3. 4. 5. The Congr ess w ill pur sue an Agr icult ur e Fir st st r at egy in r esour ce allocat ion. Public inv est m ent in agr icult ur e w ill be st epped up subst ant ially w it h focus in t he back w ar d and poor r egions. This w ill cov er ir r igat ion , elect r if icat ion , godow n s, m ar k et in g, r esear ch an d ex t en sion . Th e f low of agr icult ur al cr edit w ould be doubled in t he nex t t hr ee y ear s. A special t echnology and ex t ension pr ogr am m e f or dr y lan d f ar m in g w ill be in t r odu ced. 3 0 % of all f u n ds f low in g in t o pan ch ay at s an d n agar palik as w ill be ear m ar k ed f or pr ogr am m es r elat in g t o t h e d ev elop m en t of w om en an d ch ild r en an d f ocu s on t h e sp ecial n eed s of f em ale agr icult ur al labour and w om en cult iv at or s. Th e Con gr ess pledges t o r aise pu blic spen din g in edu cat ion t o at least 6 % of GDP w it h at least h alf of t h is am ou n t bein g spen t in pr im ar y an d secon dar y sch ools. Th e Con g r ess w ill r aise p u b lic sp en d in g on h ealt h t o at least 2 - 3 % of GDP, w it h t h e f ocu s on p r im ar y h ealt h car e ov er t h e n ex t f iv e y ear s an d t o ar ou n d 5 % of GDP ov er t h e n ex t d ecad e. Wit h ou t in cr easin g t ax r at es, t h e Con gr ess believ es t h at t h e pr esen t Tax : GDP r at io of 1 4 - 1 5 % m u st b e r aised t o at least 1 8 % b y t h e en d of t h e d ecad e. BACKGROUNDNOTE 6 Bo x - 2 M a j or An n ou n ce m e n t s in t h e M a n ife st o of t h e N a t ion a l D e m ocr a t ic Allia n ce du r in g Ge n e r a l Ele ct ion 2 0 0 4 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Dou blin g t h e in com e of k isan s by 2 0 1 0 , r edu cin g t h e cost of cu lt iv at ion , en h an cin g y ields, an d incr easing pr ices r eceiv able by far m er s Dou ble t h e r at e of gr ow t h of pu blic an d pr iv at e in v est m en t in agr icu lt u r e Com plet ion of all t he ongoing ir r igat ion pr oj ect s ( m aj or , m edium , and m inor ) w it hin fiv e y ear s t o cr eat e ir r igat ion f or an addit ion al 3 5 m illion h ect ar es of lan d Adequ at e su pply of qu alit y pow er w ill be en su r ed t o all f ar m er s by 2 0 0 9 A Rs. 1,000 crore Mandi Developm ent Fund will be creat ed t o support m odernizat ion of agricult ure m ar k et s Village elect r ificat ion w ill be com plet ed by 2 0 0 7 t h r ou gh an acceler at ed im plem en t at ion of t h e pr ogr am w ill cov er 1 cr or e h ou seh olds an d 1 lak h v illages All v illages w ill h av e pr im ar y h ealt h cen t er s w it h in t h e v illage, dispen sar ies w it h in fiv e t o eigh t k ilom et er s, and r efer r al hospit als w it hin t w ent y k ilom et er s Pr ov ision in g Ur ban Am en it ies in Ru r al Ar eas ( PURA) w ill be lau n ch ed bef or e Au gu st 1 5 , 2 0 0 4 . 8 . 4 cr or e u n cov er ed r u r al h ou seh old s w ill h av e access t o b asic san it at ion eit h er t h eir ow n or com m u n it y - ow n ed . Th er e sh all b e n o An g an w ad i cen t r e or r u r al/ u r b an sch ool w it h ou t w at er an d t oilet facilit ies by 2 0 0 5 . Ev er y r u r al h abit at ion in t h e cou n t r y , in clu din g t h ose t h at h av e slipped back in t o t h e Par t ially Cov er ed or Non- Cov er ed st at us, w ill be pr ov ided an assur ed sour ce of dr ink ing w at er supply by 2007 Pr adhan Mant r i Gr am Sadak Yoj ana: Link ing all r ur al habit at ions w it h a populat ion abov e 1, 000 by 2 0 0 5 ; lin k in g all r u r al h abit at ion s w it h a popu lat ion abov e 5 0 0 by 2 0 0 7 . Elim in at ion of elect r icit y sh or t ages by 2 0 1 2 ; sign ifican t r edu ct ion by 2 0 0 9 . At least 5 0 , 0 0 0 MW of ad d it ion al g en er at ion cap acit y w ill b e cr eat ed ov er t h e n ex t f iv e y ear s. Wor k on pr oj ect s w it h a com bin ed capacit y of 1 2 , 0 0 0 MW ( of w h ich 8 , 0 0 0 MW in t h e pr iv at e sect or ) w ill st ar t bef or e t h e en d of 2 0 0 4 . Hou sin g f or All by 2 0 1 0 Pr ogr essiv e social secu r it y sch em e f or 3 7 cr or e people in t h e u n or gan ized sect or One cr or e addit ional em ploy m ent and self- em ploy m ent oppor t unit ies each y ear Spending on educat ion w ill be r aised t o 6 % of t he GDP in fiv e y ear s. Lit er acy r at e of 8 5 % w ill be ach iev ed in f iv e y ear s. Ou r v ision is t o see t h at I n dian societ y becom es f u lly lit er at e by 2 0 1 5 Tot al pu blic spen din g on h ealt h car e t o r each 4 % of t h e GDP in t h e n ex t f iv e y ear s Cov er age of t he “ Ant y oday a Anna Yoj ana” ( w hich pr ov ides w heat at Rs. 2 a k g and r ice at Rs. 3 a k g) w ill be in cr eased f r om 2 cr or e t o 5 cr or e poor est f am ilies in f iv e y ear s. 3 3 % r eser v at ion for w om en in Par liam en t an d St at e Legislat u r es. Bo x - 3 M a j or Announce m e nt s in t he M a nife st os of t he Le ft Pa r t ie s du r in g Ge n e r a l Ele ct ion 2 0 0 4 1. Keepin g in m in d t h at sev en t y per cen t of t h e people of I n dia liv e in t h e r u r al ar eas, t h e sin gle m ost im por t an t st ep for r u r al t r an sfor m at ion is t h e im plem en t at ion of lan d r efor m s. 2 . Rein t r odu ct ion of u n iv er sal sy st em of PDS an d giv in g u p t ar get in g in t h e n am e of r each in g t h e poor. 3 . BPL car ds sh ou ld be av ailable f or all t h ose w h o ar e n ot in com e - t ax pay er s. 4 . Th e An t oday a sch em e sh ou ld be ex pan ded t o cov er all sect ion s of t h e r u r al poor . 5 . On e- t h ir d r eser v at ion f or w om en in t h e leg islat u r es an d t o w or k f or it s p assag e in t h e n ew par liam ent . 6 . I m por t ant am endm ent s t o t he Dom est ic Violence Bill m ov ed by w om en’s or ganisat ions and w ill w or k f or it s p assag e. 7 . Un iv er salisat ion of ch ild car e ser v ices; all ch ildr en u pt o 6 y ear s sh ou ld be in an gan w adis. 8 . Fr ee and com pulsor y school educat ion can be at t ained only if it is accom panied by fr ee m id- day m eals, pr ov ision of t ex t book s an d ot h er edu cat ion m at er ials. 9 . Allocat ion of 1 0 per cen t of u n ion bu dget for edu cat ion . Su ppor t t o m ass lit er acy pr ogr am m es. 1 0 . I n cr easin g t h e ex pen dit u r e on pu blic h ealt h by t h e gov er n m en t t o 5 per cen t of t h e GDP. While t he list present ed above provides an out line of m aj or prom ises by t he governm ent t hat have som e budget ary or governance significance ( like t he Wom en’s reservat ion and dom est ic 7 BACKGROUNDNOTE violence issues) m ost of t he prom ises lack eit her any specific blueprint for im plem ent at ion or t hey do not have any concr et e financial com m it m ent t o back t hese pr om ises. How ever , j ust being clear about t he ways of financing t he prom ises is not a sufficient condit ion of t heir realisat ion. A prom ise needs t o be backed w it h a proper im plem ent at ion st rat egy; at t he sam e t im e t here should be sufficient polit ical will t o keep t hose prom ises. A specific m ent ion m ay be m ade here regarding t he 2004 m anifest o of t he NDA. Alt hough, in com parison t o m anifest os of ot her polit ical par t ies, t he NDA m anifest o is a m uch det ailed one and in sever al account s it also includes specific plans t o m eet t hose com m it m ent s. How ever, m any of t hese prom ises are reit erat ed as unfinished agenda of t he 1999 m anifest o. Sim ilarly, a large part of t he m anifest os of t he left part ies and t hat of t he Congress were reit erat ed in t he Nat ional Com m on Minim um Program m e of t he UPA governm ent . The box- 4 present s t he m aj or announcem ent s m ade in t he NCMP as par t of it s post elect ion pr om ises t o per for m as a unit ed fr ont w it h t he suppor t of t he left par t ies and several regional part ies. I t is no w onder t hat t he UPA’s NCMP cont ains several prom ises m ade in t he pr e elect ion m anifest os of t he Congr ess and t he Left Par t ies. But t he pr om ises in t he NCMP are clearer in t erm s of t heir approach and m et hodology of im plem ent at ion t han t he individual par t y m anifest os. St ill it lack ed a discussion on t he financial aspect s on m aj or it y of t he issues. For exam ple, enact ing a legislat ion regarding t he Dom est ic Violence Act does not aut om at ically pr ev en t dom est ic v iolen ce. I t n eeds n ecessar y in f r ast r u ct u r al su ppor t as w ell as f in an cial com m it m ent t o m aint ain such infrast ruct ure. I n t he absence of financial com m it m ent s, m aking pr ogr essive legislat ions only ser ve t he pur pose of pseudo self- appr eciat ion and r het or ic, alt hough m ak ing necessar y legislat ions ar e cr it ical fir st st eps t ow ar ds t he goal. Bo x - 4 M a j or An n ou n ce m e n t s in t h e N CM P a ft e r UPA Assu m e d Pow e r Ag r icu lt u r e 1. 2. 3. The UPA gov er nm ent w ill ensur e t hat public inv est m ent in agr icult ur al r esear ch and ex t ension, r ur al infr ast r uct ur e and ir r igat ion is st epped up in a significant m anner w it h ir r igat ion r eceiv ing t he highest inv est m ent pr ior it y . Th e UPA gov er n m en t w ill en su r e t h at t h e f low of r u r al cr edit is dou bled in t h e n ex t t h r ee y ear s The UPA gov er nm ent w ill ensur e t hat gov er nm ent agencies ent r ust ed w it h t he r esponsibilit y for pr ocu r em en t an d m ar k et in g w ill pay special at t en t ion t o f ar m er s in poor an d back w ar d st at es an d dist r ict s. Edu ca t ion a n d H e a lt h 1. 2. 3. 4. Th e UPA gov er n m en t pledges t o r aise pu blic spen din g in edu cat ion t o least 6 % of GDP w it h at least h alf t h is am ou n t bein g spen t of pr im ar y an d secon dar y sect or s. Th e UPA gov er n m en t w ill in t r odu ce a cess on all cen t r al t ax es t o f in an ce t h e com m it m en t t o u n iv er salize access t o qu alit y basic edu cat ion . A n at ion al cook ed n u t r it iou s m id- day m eal sch em e f u n ded m ain ly by t h e cen t r al gov er n m en t , w ill be in t r odu ced in pr im ar y an d secon dar y sch ools. The UPA gov er nm ent w ill r aise public spending on healt h t o at least 2 - 3 % of GDP ov er t he nex t f iv e y ear s w it h f ocu s on pr im ar y h ealt h car e. Em p loy m e n t 1. 2. Th e UPA gov er n m en t w ill im m ediat ely en act a Nat ion al Em ploy m en t Gu ar an t ee Act . Th e UPA gov er n m en t w ill giv e t h e h igh est in v est m en t , cr edit an d t ech n ological pr ior it y t o t h e cont inued gr ow t h of agr icult ur e, hor t icult ur e, aquacult ur e, flor icult ur e, affor est at ion, dair y ing an d agr o- pr ocessin g t h at w ill sign if ican t ly add t o t h e cr eat ion of n ew j obs. Food a n d N u t r it ion 1. 2. The UPA w ill w or k out , a com pr ehensiv e m edium - t er m st r at egy for food and nut r it ion secur it y . Th e obj ect iv e w ill be t o m ov e t ow ar ds u n iv er sal f ood secu r it y ov er t im e, if f ou n d f easible. Th e UPA gov er n m en t w ill st r en gt h en t h e pu blic dist r ibu t ion sy st em ( PDS) par t icu lar ly in t h e p oor est an d b ack w ar d b lock s of t h e cou n t r y an d also in v olv e w om en ’s an d ex - ser v icem en ’s cooper at iv es in it s m anagem ent . W om e n a n d Ch ild r e n 1. 2. 3. 4. Th e UPA g ov er n m en t w ill t ak e t h e lead t o in t r od u ce leg islat ion f or on e- t h ir d r eser v at ion s f or w om en in Vid h an Sab h as an d in t h e Lok Sab h a. Legislat ion on dom est ic v iolen ce an d again st gen der discr im in at ion w ill be en act ed. The UPA gov er nm ent w ill ensur e t hat at least one- t hir d of all funds flow ing int o panchay at s w ill be ear m ar k ed f or pr ogr am m es f or t h e dev elopm en t of w om en an d ch ildr en . Com plet e legal equ alit y for w om en by en act in g n ew legislat ion t h at giv es w om en , equ al r igh t s of ow n er sh ip of asset s lik e h ou ses an d lan d. BACKGROUNDNOTE 8 On sever al occasions, t he polit ical par t ies also cr eat e dist ur bances in event s w hen it s ow n pr om ise is being im plem ent ed by ot her polit ical part ies. For exam ple, t he issue of 33 percent reservat ion for wom en in Parliam ent and St at e Legislat ure is one of t he significant elem ent s of NDA m anifest o. However, t he m em bers of Parliam ent from NDA along wit h som e of t he UPA consit ut ent s opposed t he Bill from being t abled in t he Parliam ent by t he present UPA governm ent . This shows a sheer hypocrisy of our policy m akers in raising issues for vest ed elect oral m ileage and abandoning t hem w hen t he oppor t unit y for t heir im plem ent at ion com es. Wit hout going m uch int o such issues in det ail, let us discuss som e of t he core elem ent s of popular aspirat ion in t he m anifest os pr esent ed in boxes above. I n t he follow ing par agr aphs, w e have t r ied t o analyse t he m anifest os in t er m s of sect or s of our int er est fr om t he per spect ive of t he poor and t he m ar ginalised. Probably t he m ost t alked about sect or in t he m anifest os of different polit ical part ies during last general elect ion were agricult ure and t he rural econom y. The approach t o deal wit h t he sam e w as how ev er differ ent for differ ent gr oups. The Congr ess w ant ed t o giv e num ber one pr ior it y t o t he sect or for r esour ce allocat ion and t o double r ur al cr edit flow . The NDA w ant ed t o double t he incom e of k issans and double t he r at e of gr ow t h of agr icult ur al inv est m ent t hr ough pr iv at e sect or part icipat ion. The NDA em phasizes on developing t he agricult ural m arket ing syst em is a r eal need of t he sect or . On t he ot her hand, w hile t he left par t ies hav e r ecognized t he need t o incr ease invest m ent in t he sect or , t hey have given m uch im por t ance t o equit able dist r ibut ion of fact ors of product ion in t he agrarian econom y, by raising t he issue of land reform s. Bot h NDA and UPA ( where Congress is t he m aj or st ake holder) had been at t he helm of affairs for last t en years. Unfort unat ely agricult ure was never accorded adequat e priorit y by successive governm ent s. Meanw hile, t he agrarian crisis furt her int ensified and t he econom ic condit ions of t he rural people det er ior at ed. The follow ing t able m ay t hr ow som e light on t his issue. Dur ing t he NDA r ule, bet w een 1999- 2000 and 2003- 04, t he invest m ent in agricult ure has declined from 2.2 percent of GDP t o 1.9 percent of GDP. Aft er t hat t he UPA governm ent m aint ained t he invest m ent in t he sect or at a low er level. I t is t her efor e not enough t o m ake pr om ises w hich ar e not going t o get r eflect ed in t he policy for m ulat ion. Ta ble - 1 : I n ve st m e n t in Agr icu lt u r e in I n dia I n ve st m e n t in Agr icu lt u r e ( 1 9 9 9- 0 0 pr ice s) Sha r e in Agr icult ur a l Gr oss I nve st m e nt I n ve st m e n t in Agr icu lt u r e a s % of GD P at const a nt pr ice s Tot a l Public Priva t e Pu blic Pr iv a t e 1999-00 43473 7716 35757 17.7 82.3 2.2 2000-01 38735 7155 31580 18.5 81.5 1.9 2001-02 47043 8746 38297 18.6 81.4 2.2 2002-03 46823 7962 38861 17.0 83.0 2.1 2003-04 45132 9376 35756 20.8 79.2 1.9 2004-05 48576 10267 38309 21.1 78.9 1.9 2005-06 54539 13219 41320 24.2 75.8 1.9 So u r ce: Eco n o m i c Su r v ey 2 0 0 6 - 0 7 , Go I Bot h t he Congress and t he NDA have pledged for 6 percent of GDP on educat ion in t heir respect ive m anifest os. On t he ot her hand, t he left par t ies hav e m ent ioned about an allocat ion of 10 per cent of t ot al Union Budget t o be spent on educat ion. While t he Congr ess hav e had a m ent ion of spending half of t he am ount on elem ent ary and school educat ion, t he NDA m anifest t alks about t ot al lit er acy issues. I t is now est ablished t hat t he t ot al gov er nm ent ex pendit ur e as per cent of GDP has rem ained m uch below t he prom ised level. I t is im port ant t o assess t he seriousness of bot h t he par t ies on t he issue of pr oviding educat ion for all in t he light of 93 rd Am endm ent Act , w hich r ecognizes educat ion as a fundam ent al r ight . Table- 2 show s t hat ex pendit ur e on educat ion in fact declined com par ed t o pr ev ious y ear s aft er t he announcem ent of t he Right t o Educat ion Act in t he Par liam ent . While t he issue of spending 10 per cent of t ot al budget on educat ion is 9 BACKGROUNDNOTE som ehow m aint ained by bot h t he Union and t he St at e Governm ent s, as a percent of GDP, it has declined from 2.89 percent in 2002- 03 t o 2.86 percent in 2006- 07. Sim ilar is t he case w it h t he allocat ions on healt h ser vices. While t he Congr ess pr om ised for r aising t he expenses on healt h services t o around 2 percent of GDP, t he NDA prom ised an expendit ure of 4 percent of GDP. However, in t erm s of delivering t he prom ises, bot h t he part ies never t ook up t he issue seriously. Alt hough a subst ant ial im pr ovem ent is not iced in t he allocat ions by t he cent r al gover nm ent in r ecent t im es, in absolut e t er m s, it is far behind t he pr om ised lev el. Ex pendit ur e on healt h services by bot h cent re and t he st at es st ill rem ains less t han 1 percent of GDP during t he regim e of bot h t he polit ical par t ies. Ta ble - 2 :Com bin e d Pu blic Ex pe n dit u r e on Edu ca t ion in I n dia Yea r 2 0 0 0 - 01 2 0 0 1 - 02 2 0 0 2 - 03 2 0 0 3 - 04 2 0 0 4 - 05 2 0 0 5 - 06 2 0 0 6 - 0 7 BE As a P r o p o r t i o n o f T o t a l Go v e r n m e n t Ex p e n d i t u r e 11.70 11.22 10.83 10.21 10.44 10.62 10.97 As a Pr o p o r t io n o f GD P a t Cu r r e n t M a r k e t Pr ice s 3.03 2.98 2.89 2.75 2.74 2.89 2.86 So u r ce: Si b a San k ar Mo h an t y ( 2 0 0 8 ) “ 4 t h Pu b l i c Rep o r t Rev i ew i n g NCMP Pr o m i ses” , W NTA Ta ble - 3 : Bu dge t a r y Alloca t ion s on H e a lt h Se r vice s in I n dia Ce n t r a l Go v e r n m e n t Ex p e n d i t u r e a s % o f GD P Tot a l e x pe n dit u r e as p e r ce n t of GD P Yea r Ce n t r e ' s Ex p e n d i t u r e St a t e s’ Ex p e n d i t u r e Tot a l Ex p e n d i t u r e o f Ce n t r e and St a t e 2002-03 6503.81 17094 23597.8 0.26 0.96 2003-04 7249.14 18235 25484.1 0.26 0.92 2004-05 8085.95 27703 0.26 0.89 2005-06 9649.24 19617 22,031 31680.2 0.27 0.99 40192.7 0.29 0.98 46,257 0.32 0.99 2006-07 11757.7 2 0 0 7 - 0 8 RE 14974.3 2 0 0 8 - 0 9 BE 18123 28,435 31,283 0.34 So u r ce: CBGA “ Resp o n se t o Un i o n Bu d g et 2 0 0 8 - 0 9 : Reaf f i r m i n g Rh et o r i c” I n a w ay of concluding, it can be m ent ioned t hat it is im port ant t o m ake prom ises as t his is a w ay of acknow ledging and ident ifying t he r eal needs of t he m asses as per ceived by an individual polit ical ent it y. All t he pr om ises need t o be clear in per spect ive and should have pr oper act ion plan for im plem ent ing t he elem ent s in t he prom ises. But all t hese are m eaningful only when t he gover nm ent and t he par t y in opposit ion have a clear pr efer ence for popular aspir at ions over pet t y polit ical int er est s and necessar y polit ical w ill is ex hibit ed t o w or k t ow ar ds k eeping t hose pr om ises. ( The aut hor is cur r ent ly a Resear ch Advisor w it h Net w or k for Social Account abilit y, Bhubanesw ar .) BACKGROUNDNOTE 10 Fina ncing Rura l Developm ent : Som e I ssues Rela t ing t o t he Budge t a nd Fisca l D e ce nt r a liza t ion Ka u sh ik Ga n gu ly a n d Ja w e d A. Kh a n Rural developm ent is a st rat egy designed t o im prove t he econom ic and social life of t he rural poor and an all encom passing developm ent of t he rural sect or in I ndia. I t involves ext ending t he benefit s of developm ent t o t he poorest am ong t hose w ho seek livelihood in t he rural areas and br ing about equit y in t he qualit y of life acr oss all t he socio- econom ic gr oups. Mor e elabor at ely rural developm ent encom passes: ( a) im provem ent in t he st andard of living including gainful em ploym ent , educat ion, healt h, nut rit ion and housing and variet y of social services; ( b) decreasing inequalit y in dist ribut ion of rural incom es and resource endowm ent and in rural–urban im balances in incom es and incom e oppor t unit ies and ( c) incr easing t he capacit y of t he r ur al econom y t o sust ain and acceler at e t he pace of t hese im pr ov em ent s. Som e Fa ct s on Rur a l I ndia • • Ar ound 72.2 per cent of t he t ot al populat ion liv e in r ur al ar eas 59 percent of t he populat ion depend on agricult ure and allied act ivit ies • Alm ost 89 percent of rural households have less t hen 2 hect ares of land and t heir average per capit a consum pt ion expendit ure is Rupees 15 a day These house holds ar e unable t o m eet t heir consum pt ion needs and have t o r esor t t o bor r ow ing • • • The cont ribut ion of agricult ure and allied act ivit ies t o GDP has gradually declined over t he years and st ood at 18.5 percent in 2006- 07 Gr ow t h r at e of NSDP in agr icult ur e has been 1.7 per cent per annum bet w een 1999- 2000 t o 2004- 05 • • Rural I ndia account s for only 59 percent of lit erat e person I nfant m ort alit y is enum erat ed as 64 per t housand live birt hs. So u r ces: NSS Rep o r t d i f f er en t r o u n d s, Eco n o m i c Su r v ey 2 0 0 7 - 0 8 , NFHS I I I , NCEUS Rep o r t The abov e fact s depict t he low lev els of hum an dev elopm ent in t er m s of incom e, educat ion and healt h and ext ensive social m arginalizat ion of t he poor and landless. Evident ly, given t he large scale dependence of t he I ndian econom y on t he w ell- being of t he r ur al econom y for a balanced and equit able gr ow t h, a clear and obj ect ive analysis of t he public policy in gener al and inst it ut ional m echanism of delivering public goods wit hin t he rural econom y is a com pelling necessit y. This paper int ends t o exam ine and com m ent on t he budget ar y allocat ions of t he gover nm ent for t he rural econom y as a whole, financing rural developm ent t hrough cent rally sponsored schem es and t he role of local self- governm ent inst it ut ions in t he provisioning for rural developm ent . The rural developm ent program m es im plem ent ed by t he cent ral and st at e governm ent s t hrough v ar ious nodal agencies gav e special em phasis on r em ov al of pov er t y t hr ough em ploy m ent generat ion program m es, by product ive asset s t ransfers t hrough inst it ut ional credit program m es and subsidy. Moreover social sect or program m es of rural housing, drinking wat er and sanit at ion facilit y , healt h and educat ion w er e also under t ak en t o r em ov e unequal access t o public r esour ces. How ever gover nm ent com m it m ent s t o t his sect or have oft en gone w it hout m at ching financial resources from t he budget . Given t he huge dependence of t he rural populat ion on agricult ure and allied act ivit ies, m easur es t o enhance agr icult ur al pr oduct ivit y should have been t aken on a w ar - foot ing, on account of w hich gov er nm ent inv est m ent s hav e clear ly fallen shor t . The follow ing t able char t s out t he v ar ious aspect s of r ur al dev elopm ent and t he quant um of governm ent disbursem ent in each of t hese as percent age of GDP at m arket prices. Public spending ( an aver age 1.7 per cent of GDP) w it hin r ur al econom y show a fluct uat ing t r end over t he last eight , which signifies t he lack of clear policy direct ion and failure recognize t he precarious sit uat ion of rural econom y as a whole. Disbursem ent t owards m aj or rural infrast ruct ure heads like irrigat ion and flood cont rol as well invest m ent s in village and sm all indust ries show a st agnat ing t rend. 11 BACKGROUNDNOTE Ta ble 1 : Ce n t r a l Gov e r n m e n t Spe n din g on Com posit e Ru r a l D e ve lopm e n t a s pr opor t ion of GD P ( in Percent age) 2 0 0 1- 0 2 Ag r icu lt u r e a n d Allie d Act iv it ie s 1. 12 Ru r a l D e v e lop m e n t 0. 27 I r r ig a t ion a n d Flo o d Con t r ol 0. 02 V illa g e a n d Sm a ll I n d u st r ie s 0. 04 Co m p o sit e Ru r a l D e v e lop m e n t 1 .4 5 2 0 0 2- 0 3 1. 26 0. 48 0. 01 0. 05 1 .8 2 0 0 3- 0 4 2 0 0 4- 0 5 1. 19 1. 16 0. 44 0 .3 0. 01 0. 01 0. 05 0. 05 1 .6 9 1 .5 3 2 0 0 5- 0 6 2 0 0 6- 0 7 1. 05 1. 16 0. 44 0. 79* 0. 01 0. 01 0. 05 0. 05 1 .5 7 2 .0 2 2 0 0 7- 0 8 1. 42 0. 37 0. 01 0. 04 1 .8 4 2 0 0 8- 0 9 Av e r a g e 1.3 1 .2 1 0. 35 0 .3 8 0. 01 0 .0 1 0. 05 0 .0 5 1 .7 1 1 .7 0 So u r ce : Re sp o n se t o Un i o n Bu d g e t , 2 0 0 8 - 0 9 ; CBGA. No t e : * Th e f i g u r e f o r 2 0 0 6 - 0 7 i s i n f l a t e d d u e t o t h e Sp e ci a l Se cu r i t i e s i ssu e d t o Fo o d Co r p o r a t i o n o f I n d i a f o r Rs. 1 6 , 2 0 0 cr o r e i n se t t l e m e n t o f p a st cl a i m s u n d e r SGRY. Av e r a g e f o r Ru r a l D e v e l o p m e n t i s ca l cu l a t e d e x cl u d i n g t h e y e a r 2 0 0 6 - 0 7 . Apar t fr om t hese, inst it ut ional r est r uct ur ing w er e also under t ak en t o st im ulat e t he pr ocess of r ur al dev elopm ent t hr ough v ar ious gr assr oot or ganizat ions lik e r egional co- oper at iv es and Panchayat i Raj I nst it ut ions ( PRI s) . A landm ar k in t his cont ext w as t he 73 rd Am endm ent Act 1992, w hich accor ded t he PRI s const it ut ional r ecognit ion and laid t he foundat ion for t heir funct ioning as inst it ut ions of local self- gov er nance. These inst it ut ions of local self- gov er nm ent w er e m eant t o ener gise t he r ur al developm ent pr ocess t hr ough enhancing people’s par t icipat ion in planning and im plem ent at ion of t he program m es. Several ot her inst it ut ions like Regional Rural Banks ( RRBs) , co- operat ive banks, NABARD, ot her nat ionalized com m ercial banks and Nat ional I nst it ut e of Rur al Dev elopm ent ( NI RD) w er e const it ut ed t o facilit at e t he pr ocess of rural t ransit ion and com plem ent t he governm ent program s. Post - independence, w it h t he adopt ion of Five Year Plans, t he focus of I ndian developm ent st rat egy w as t o cr eat e pr oduct iv e nat ional asset s of self- r eliance and r esilience. This st r at egy how ev er relied ent irely on cent ral planning and execut ion t hrough st at e governm ent s or cent ral governm ent agencies under cent ral guidelines. Even aft er inst it ut ionalizing PRI s t hrough t he 73 rd Am endm ent , rural developm ent program s were largely im plem ent ed t hrough Dist rict Rural Developm ent Agency ( DRDAs) which were prone t o bureaucrat ic cont rol. Such heavily cent ralized syst em of governance w as char act er ized by elit ist capt ur e of public r esour ces, low people’s par t icipat ion in gov er nm ent program m es and very w eak m echanism of t he delivery syst em of services provided by t he gov er nm ent . The cent r alized appr oach led t o low lev el of infr ast r uct ur e, and low at t ainm ent s in povert y eradicat ion, which result ed in inequalit y, illit eracy and unem ploym ent being a regular feat ure of rural I ndia. Man y st u dies h av e ack n ow ledged t h at act iv e people’s par t icipat ion in r u r al dev elopm en t pr ogr am m es can alone ensur e t he fr uit s of dev elopm ent t o w eak er sect ions. A com m it t ee headed by Balw ant Rai Meht a ( 1957) , t o evaluat e t he perform ance of com m unit y developm ent program m es ( 1952) says t hat it could not im prove t he lives of rural m asses as it w as expect ed. The com m it t ee also r ecom m ended cr eat ion of t hr ee- t ier Panchay at i Raj I nst it ut ions ( PRI s) . Aft er 73 rd Const it ut ion Am endm ent Act , PRI s were given m ore polit ical power, financial aut horit y and m or e cont r ol over funct ionar ies. Mor eover local level planning t hr ough Dist r ict Planning com m it t ees was also em phasized. This init iat ive, coupled wit h som e innovat ive program s of rural developm ent have m ade som e rapid progress in t he st at es where proper decent ralizat ion has t ak en place how ev er for m ost of t he count r y it has r em ained v ulner able t o official highhandedness, non- availabilit y of funds and low level of delegat ion of pow ers by st at e governm ent s. The basic obj ect iv e of t his back gr ound not e is t o ident ify fact or s w hich const r ain t he pr ocess of rural developm ent and ident ify issues which can be t aken up for furt her deliberat ions. Apart fr om t he I nt r oduct ion t his paper is segr egat ed int o t hr ee sect ions. Sect ion I I deliber at ing on t he Program s and resources in rural developm ent ; sect ion I I I com m ent s on t he role of PRI s in t he BACKGROUNDNOTE 12 pr ocess of r ur al dev elopm ent as it w as env isaged and t he cur r ent r ealit ies and sect ion I V on conclusions drawn from t he discussions and t heir policy im plicat ions. I . Maj or Cent rally Sponsored Schem es for Rural Developm ent I n t he pr ocess of r ur al dev elopm ent , t he cent r ally sponsor ed schem es ( CSS) hav e play ed a piv ot al r ole. The CSS m ainly oper at ing in r ur al ar eas cov er v ar ious pr ogr am m es r elat ed t o pov er t y allev iat ion, educat ion, healt h, w at er and sanit at ion, w om en and child dev elopm ent , r ur al housing, r oad and elect r ificat ion et c. The schem es ( CSS) ar e designed by t he cent r al m inist ries and t heir out lay and nat ure are det erm ined by t he provisions and guidelines at t ached t o t he r espect iv e schem es. The funds for m any CSS by pass t he st at e budget and goes t hr ough t he differ ent agencies lik e dist r ict aut hor it ies ( DRDA) , st at e/ dist r ict r egist er ed societ ies and local bodies. The schem es for w hich eit her PRI s get funds direct ly from Cent ral Governm ent or in which t hey play an act ive role in im plem ent at ion are det ailed in t he following t able. Ta ble 2 : Ce n t r a lly Spon sor e d Sch e m e s im ple m e n t e d t h r ou gh PRI s S. N 1. Ca t e gor y Povert y alleviat ion schem es 2. Educat ion Schem es 3. Wat er and Sanit at ion 4. Land Resources 5. 6. Healt h Wom en and Child Developm ent Rural Housing Rural Roads Rural Elect rificat ion 7. 8. 9. Sch e m e s im ple m e n t e d t h r ou gh PRI s Nat ional Rural Em ploym ent Guarant ee Schem e ( NREGA) , Sam pooran Gram een Rozgar Yoj na( SGRY) Sw arn Jayant i Gram Sw arozgar Yoj na ( SJSY) Sarva Siksha Abhiyan Mid- day m eal Program m es Adult Lit eracy Drinking wat er Mission Tot al Sanit at ion Cam paign Drought Prone Areas Program m e Desert Developm ent Program m e I nt egrat ed Wast eland Developm ent Program m e Nat ional Rural Healt h Mission I nt egrat ed Child Developm ent Services ( I CDS) I ndira Aw as Yoj na Pardhan Mant ri Gram een Sadak Yoj na Raj iv Gandhai Gram een Vi dyut ikran Yoj na. Program m es for non- convent ional energy Source: 1 ) MOPR, Ac t i o n Pr o g r a m m e s f o r 1 1 th Fi v e y e a r Pl a n 2 0 0 6 ; 2 ) Ou t co m e Bu d g et 2 0 0 8 - 0 9 , Mi n i st r y o f Ru r a l D ev el o p m en t , Go v t . o f I n d i a . I n m ost of t hese program s Gram Panchayat , which is t he lowest t ier in PRI s, play a m aj or role in im plem ent at ion by select ion of beneficiary, act ivit y, work plan and work place. The role of Panchayat Sam it i ( int erm ediat e t ier of governance in PRI s) is prom inent in t he im plem ent at ion in t erm s of m onit oring and supervision of t he schem es as well as providing all kinds of t echnical and non t echnical suppor t t o Gr am Panchayat s. Mor eover , Zilla Panchayat s also play super visor y and m onit oring role in t hese schem es as w ell as consolidat ion and vet t ing of t he plans prepared by t he low er level of panchayat s t hrough t he Dist rict Planning Com m it t ee ( DPC) . I n som e schem es like SGRY Zilla Panchayat ( DRDA) and Panchayat Sam it i w ho t oget her receive around 50 percent ( 20 % and 30 % r espect iv ely ) of t he funds m ay com m ission w or k s dir ect ly out of w hich a specific share is also earm arked benefit ing SC/ ST fam ilies living below povert y line ( BPL) and m inorit y com m unit y. However, in case of nat ional m issions like SSA and NRHM it is t he dist rict lev el societ ies t hat ar e piv ot al in t er m s of r eceiv ing t he funds fr om t he cent r e and t heir allocat ion and ut ilizat ion. Her e t oo, t hese societ ies ar e supposed t o w or k in close co- or dinat ion w it h differ ent t iers PRI s in developing t heir work plan. The pur pose of Cent r ally Sponsor ed Schem es, as per t heir design, is t o augm ent t he r esour ce of t he st at es t o under t ak e ex pendit ur e w hich t he Cent r al Gov er nm ent consider s t o be of nat ional or regional priorit y. Evident ly, m ost of t hese CSSs are geared t ow ards povert y alleviat ion t hrough em ploy m ent gener at ion ( NREGS) , liv elihood opt ions ( SGSY) , infr ast r uct ur e ( Bhar at Nir m an) , dev elopm en t of lan d r esou r ces ( DPAP, DDP, I WDP) an d ot h er s per t ain in g t o social sect or developm ent ( NRHM, SSA, I CDS et c.) . Over t he year s, t her e has been a significant incr ease in 13 BACKGROUNDNOTE r each and scope of CSSs, bot h in t er m s of encr oachm ent on subj ect s under t he pur v iew of t he St at es as w ell as funds by - passing t he st at e budget and dir ect ly r eaching t he PRI s. Som e of t he m aj or r easons for t his incr eased act iv it y w er e a) inabilit y of t he st at es t o pr ov ide adequat e r esour ces, b) lack of clear st r at egy t o im plem ent social sect or pr ogr am m es, c) inadequat e com m it m ent of resources on priorit y program m es d) unnecessary delay in release of funds from t he st at e exchequer oft en com prom ising program m e t arget s. Som e of t he program m es for which t he PRI s have been r eceiving fund dir ect ly fr om t he Cent r e have been det ailed in t he follow ing t able. Ta ble 3 : Fu n ds flow in g t o PRI s t h r ou gh Ce n t r a lly Spon sor e d Sch e m e s ( in Rs. Cr or e) N a m e of Sch e m e s Sam poorna Gram een Rozgar Yoj ana ( SGRY) Nat ional Rur al Em ploy m ent Guar ant ee Schem e ( NREGS) Sw ar naj ayant i Gr am Sw ar ozgar Yoj ana ( SGSY) I ndir a Aw as Yoj ana ( I AY) I nt egr at ed Wast eland Developm ent Pr ogr am m e ( I WDP) Dr ought Pr one Ar eas Pr ogr am m e ( DPAP) Deser t Developm ent Pr ogr am m e ( DDP) I nt egrat ed Wat ershed Managem ent Program m e ( I WMP) Cent ral Rural Sanit at ion Program m e MPs Local Area Developm ent Fund ( MPLAD) Tot a l 2006 -07 2 0 0 7- 0 8 ( RE) 2 0 0 8- 0 9 ( BE) 1 1 t h Pla n Ou t la y 3452.44 1715.01 - 5600 8640.86 11939.35 15939 100000 1164.77 2907.53 1702.24 4032.7 2115.65 5394.2 17803 26882. 21 484.9 - - 359 - - 269 - - 738.06 1114.44 957 1650 998 7815. 66 1580 1 9 5 9 6 .5 6 1580 2 3 0 4 0 .7 4 1580 2 7 6 7 6 .8 5 1 7 5 4 7 2 .8 7 17372 No t e: i ) SGRY h as b een su b su m ed u n d er NREGS, i i ) I WD P, D PAP, D D P h as b een su b su m ed u n d er I WMP, i i i ) Fi g u r es i n cl u d e al l o cat i o n s f o r No r t h East er n Ar eas w h er ev er ap p l i cab l e.So u r ce : i ) Ex p e n d i t u r e Bu d g e t Vo l . I a n d I I , Un i o n Bu d g e t 2 0 0 8 - 0 9 a n d 2 0 0 7 - 0 8 , Go v t . of I n dia; i i ) 1 1 th Fi v e Yea r Pl a n D o cu m en t , Pl a n n i n g Co m m i ssi o n , Go v t . o f I n d i a The ev er - bur geoning nat ur e of CSSs has been a const ant sour ce of discor d bet w een t he Cent r al and t he St at e gov er nm ent s, as m any St at e gov er nm ent s hav e v oiced t heir opinion t hat if t he Cent ral governm ent had addit ional resources t hen it m ust be shared w it h st at es as uncondit ional/ block gr ant s. I n t his r egar d t he Nat ional Developm ent Council in 1969 t ook a decision t hat Cent r al assist ance t o St at e plans should be in t he for m of uncondit ional/ block gr ant s and t he t ransfers t hrough CSSs should be lim it ed t o 1/ 6 t h of t he block assist ance. How ev er , despit e such decision t he num ber of CSSs and t he quant um of funds t hey car r y have incr eased significant ly. As of 2006- 07 t here w ere 196 CSSs out of w hich 154 involving Rs. 24,802crores w ere budget ed t o be rout ed t hrough t he st at e budget s and rem aining 41 CSSs involving Rs. 36,516crores w ere slat ed t o by - pass t he st at e budget s and go dir ect ly t o im plem ent ing agencies lik e PRI s. Ther efor e t he t ot al budget ed out lay under CSS for m ed 46. 7 per cent of gr oss budget ar y suppor t for Cent r al Plan and 33.3 per cent of t he appr oved plan out lay of St at e Gover nm ent s. Of t he 41 schem es t hat are slat ed t o reach PRI s, 10 program s pert ain t o rural developm ent and carry m or e t han half of t he fund for all schem es by - passing st at e budget . Som e of t hese schem es have been re- fashioned and subsum ed under newer program s while som e has been clubbed t oget her and r e- chr ist ened w it h som e new set of guidelines. Over all, t he m odus oper andi of t hese schem es has m ost ly rem ained unchanged and t herefore m ost of t heir fallibilit ies have not been adequat ely t ak en car e of. Such inadequacies in t he basic ar chit ect ur e or t ar get - or ient ed guidelines of t hese schem es have led t o under- ut ilisat ion being a predom inant feat ure am ong m any st at es w hile som e st at es hav ing bet t er absor pt iv e capacit y has t ended t o ov er dr aw . The t able below gives a br ief sket ch of t he ut ilisat ion pat t er n of t he m aj or st at es in I ndia for m aj or schem es SGSY, SGRY, NREGS and I AY. BACKGROUNDNOTE 14 Ta ble 4 : Ut ilisa t ion of Fu n ds for Se le ct Sch e m e s r e a ch in g PRI s a cr oss M a j or St a t e s in I n dia U t i l i sa t i o n SGSY SGRY N R EGS I AY > 1 0 0 p e r ce n t Or i ssa - - Ta m i l N a d u , Ma h a r a sh t r a , Go a > 9 0 but < 1 0 0 M. P. , Ch a t t i sg a r h , A. P. , T. N. , Ke r a l a , Gu j a r a t , Ma h a r a sh t r a , Kar n at ak a, Pu n j a b , H a r y a n a Go a - M. P. , Ra j a st h a n , Or i ssa, A. P. , Ke r a l a , Har y an a U. P. , Go a U. P. , M. P. , Ra j a st h a n , Or i ssa , Jh a r k h a n d , Ch a t t i sg a r h , T. N. Gu j . , Ma h . Ka r n . , Ha r y a n a M. P. , Assa m , Ra j a st h a n , Or i ssa U. P. , Assa m , Jh k , Ch a t g , Gu j , Pu n j a b > 7 0 but < 8 0 Ra j a st h a n , W . B. Assa m , A. P. , Ker ala, Pu n j a b < 7 0 p e r ce n t Bi h a r , Assa m Bi h a r , W e st Be n g a l > 8 0 but < 90 U. P. , Jh a r k h a n d , Ch a t t i sg a r h , Ka r n t a k a , Har y an a Bi h a r , W . B. , A. P. , T. N. , Ke r a l a , Gu j . , Mah ar . , Pu n j a b W e st Be n g a l , Ka r n a t a k a Bi h ar No t e : Fo r u t i l i za t i o n u n d e r NREGS, f i g u r e s f o r t h e y e a r 2 0 0 6 - 0 7 h a s b e e n co n si d e r e d , w h i l e f o r o t h e r s a n a v e r a g e o f 2 0 0 5 - 0 6 a n d 2 0 0 6 - 0 7 h a v e b een t a k en . So u r ce: Ou t co m e Bu d g et s 2 0 0 7 - 0 8 a n d 2 0 0 8 - 0 9 , Mi n i st r y o f Ru r a l D ev el o p m en t , Go v t . o f I n d i a . While it is difficult t o gener alize t he r easons behind under - ut ilizat ion acr oss st at es, it is also not desir able as geogr aphical, clim at ic, socio- econom ic fact or s and adm inist r at iv e m achinat ions peculiar t o each of t he st at es m ay im pede or pr om ot e efficient im plem ent at ion of t hese schem es. Neit her can it be ascer t ained t hat higher incom e st at es w it h bet t er infr ast r uct ur e and m anpow er hav e per for m ed bet t er as a m er e look at t he t able abov e show s t hat low incom e st at es lik e Madhya Pr adesh, Raj ast han, Chat t isgar h and Jhar khand has been consist ent ly per for m ing bet t er across all t he schem es. On t he ot her hand st at es w it h higher incom e and bet t er poised in t erm s of adm inist r at ion and infr ast r uct ur es seem t o falt er consist ent ly, West Bengal being one such ex am ple. I t is t o be not ed t hat Bihar w hich is poor est of all t he st at es has been consist ent ly t he worst perform er in t erm s of ut ilizat ion. Moreover, a st rong Panchayat i Raj I nst it ut ion also seem s t o fail in explaining t his diverse perform ance as bot h Kerala and Karnat aka have fared poorly in t he t w o out of four schem es list ed abov e w hile Or issa hav e consist ent ly per for m ed bet t er t han ot her s. One lim it at ion t o t his line of ar gum ent is t hat it assum es bet t er ut ilisat ion as indicat ive of bet t er qualit y of ex pendit ur e, w hich m ay not be t he case as t her e has sur faced t im e and again, allegat ions of m isappropriat ion and leakage of funds m eaning beneficiaries being deprived of t heir r ight ful shar e. Despit e t he inher ent lim it at ions of t he above analysis, one issue t hat com es acr oss clear ly t hat oper at ions of CSSs ar e not gear ed t ow ar ds int er nalizing t he local needs, cost s of deliv er y , pr oduct iv it y nor m s and ot her local char act er ist ics w hich ar e cr ucial t o t he oper at ional efficiency of t hese schem es. Som e of t he m aj or dr aw back s as hav e been w idely not ed for m ost em ploym ent generat ion schem es are given in t he box below. M a j or dr a w ba ck s in pr e v iou s e m ploy m e n t • • • • • • Lack of aw ar en ess am on g ben ef iciar ies. Lack of com m unit y par t icipat ion Lack of plan n in g an d policy for m u lat ion Qu alit y of asset s cr eat ed ar e n ot alw ay s of r equisit e st andar ds Repor t s of false m u st er r ole Pr oblem s in pay m en t ( less t h an pr escr ibed w ages) • • • • • • • 15 ge n e r a t ion sch e m e s: Cont r act or per sist ed Div er sion of funds Weak m on it or in g, ev alu at ion an d v er if icat ion sy st em s. No com pr eh en siv e dat a base I nadequat e capacit y of im plem ent ing agencies. Mult iple w age pr ogr am m es r unning in par allels No public account abilit y BACKGROUNDNOTE Ru r a l Em ploy m e n t Pr ogr a m s: A Re v ie w of N REGS The Nat ional Rural Em ploym ent Guarant ee Act ( NREGA) was passed in Sept em ber, 2005, and t he NREGS was im plem ent ed from February 2, 2006 in 200 ident ified dist rict s of t he count ry w it h t he obj ect ive of pr oviding 100 days of guar ant eed w age em ploym ent t o each r ur al household opt ing for it . The cov er age had gone up t o 330 dist r ict s w it h t he addit ion of 130 new dist r ict s in 2007- 08. The ongoing program m es of SGRY and Nat ional Food for Work Program m e ( NFWP) w er e subsum ed under NREGS in t hese dist r ict s. The cover age of NREGS has been ext ended t o all t he 596 dist r ict s ( excluding t he ur ban dist r ict s) in t he count r y in 2008- 09. But t h e la r ge in cr e a se in cove r a ge doe s n ot r e fle ct in t h e in cr e a se in a lloca t ion for 2 0 0 8 - 0 9 – a m e r e Rs. 4 ,0 0 0 cr or e incr e a se fr om Rs. 1 2 ,0 0 0 cr or e in 2 0 0 7 - 0 8 ( RE) for 3 3 0 dist r ict s t o Rs. 1 6 ,0 0 0 cr or e in 2 0 0 8 - 0 9 for 5 9 6 dist r ict s. Of t he Rs. 12,000 cr or e allocat ed by t he Cent r e in 2007- 08 ( BE) , Rs. 11,144.72 crore was released ( by Cent re) up t o February 29, 2008. While t he fund release has shown great er im provem ent , ut ilizat ion rem ains t o be a m aj or concern. Availability and Utilization of Funds under NREGA (Centre + States) 18000 16000 14000 17044 Total Avilablility Total Expenditure 12074 12000 10801 10000 8823 In Rs. Crore 8000 6000 4000 2000 0 2006-07 2007-08 So u r ce : Re sp o n se t o Un i o n Bu d g e t 2 0 0 8 - 0 9 , CBGA. The phy sical as w ell as financial pr ogr ess of NREGS has cont inued t o v ar y acr oss st at es. The im plem ent at ion in m any high pot ent ial st at es like Maharasht ra, Karnat aka, Bihar, West Bengal and Orissa is well below t he nat ional average in bot h physical and financial progress during 2007- 08. M a h a r a sh t r a w h ich h a s be e n t oppin g t h e fa r m e r s’ su icide ch a r t cou ld u t ilize on ly 2 5 p e r ce n t of t h e t ot a l a v a ila b le f u n d s in 2 0 0 7 - 0 8 ( t ill 29 Febr uar y 2008) . While som e st at es have shown good progress in im plem ent at ion over t he previous year, m any have ret reat ed. I n part icular, Orissa could ut ilize only 51.76 percent of t he available funds in 2007- 08 against 82.39 per cent in 2006- 07. Th e ove r a ll fu n d u t iliz a t ion a t t h e n a t ion a l le ve l h a s a lso fa lle n fr om 7 3 .0 8 pe r ce nt of a va ila ble funds in 2 0 0 6 - 0 7 t o 6 3 .3 7 pe r ce nt in 2 0 0 7 0 8 ( t ill 29 February 2008) . Despit e it s low ut ilizat ion it is st ill t oo early t o com m ent on inadequacies of NREGS, as t here exist considerable inert ia w it hin t he adm inist rat ive m achinery as w ell as at t he end of beneficiaries t o under st and and adapt t o new schem es. Som e of t he posit iv e feat ur es of NREGS t hr ough which it addresses t he inadequacies of earlier em ploym ent program s ( See Box I I ) are as: a) a paradigm shift t o a right s based fram ework, which ent ails a legal guarant ee of work unlike ot her program s could be wit hdrawn by a governm ent at will; b) disincent ive for underperform ance as unem ploym ent allowance has t o be paid by t he st at e governm ent wit hin 15 days if work is not BACKGROUNDNOTE 16 provided wit hin 15 days of dem anding; c) resource availabilit y under t he schem e is dem and dr iv en; d) account abilit y of t he public deliv er y sy st em s t hr ough social audit . How ev er , cr ucial t o t he success of t his schem e is t he dissem inat ion of t he pr ov isions of t his schem e am ong t he beneficiar ies. Mor eov er possibilit y of dov et ailing w it h ot her schem es can be ex plor ed t o cr eat e dur able public asset s w hich w ill pot ent ially incr ease t he pr oduct iv it y of t he r ur al econom y as a w hole. Apart from t he em ploym ent generat ion, program s like SGSY, I AY which are direct ly im plem ent ed t h r ou gh pan ch ay at s ar e also fr au gh t w it h w eak n esses r an gin g fr om in accu r at e or fu dged beneficiary list s, insufficient funds being available for each beneficiary for exploring m eaningful liv elihood opt ions or t o const r uct houses in case of housing, incr easing indebt edness of t he beneficiaries, lack of m arket s and infrast ruct ure. Part icularly in case of SGSY som e m aj or problem s are t arget driven SHG form at ion, subsidy driven large corrupt ion, obsession wit h asset form at ion, lackadaisical nat ure of adm inist rat ion and banking st aff leading t o non- repaym ent of loans. Not w it hst anding t heir lim it at ions, Cent r ally Sponsor ed Schem es oper at ing par t icular ly in t he povert y alleviat ion and rural infrast ruct ure sect or are t he prim ary workhorses which are driving r ur al dev elopm ent . One m aj or r eason behind t his is t he lack of fiscal capacit y of t he St at e g ov er n m en t s t o allocat e ad eq u at e f in an cial r esou r ces in t h is sect or on t h eir ow n . St at e governm ent s are also oft en at t ribut ed wit h lacking proper expert ise and foresight in planning and policy form ulat ions and t hereby failing t o keep in st ep wit h nat ional policy priorit ies. However, giv en t hat t her e is no dear t h of fund for t he CSSs t he k ey s for t hese pr ogr am s t o deliv er t he desir ables seem t o lie in r efor m ing t he inst it ut ional m echanism s, st r engt hening m onit or ing m echanism at bur eaucr at ic lev el and ensur ing t r anspar ency and account abilit y at t he gr assr oot s lev el. Ther e is how ev er no single w ay of going about at t aining t hese obj ect iv es but a significant achievem ent w ould be t o st rengt hen t he local self- governm ent inst it ut ions in t erm s of ensuring t heir fiscal aut onom y w it h w ell defined fiscal j ur isdict ion. This w ill not only allow t he panchay at s t o raise resources t o m ake local level planning effect ive, but also ensure com plem ent arit ies bet w een CSSs oper at ional in t heir j ur isdict ion and gr ass- r oot planning. The CSSs on t he ot her hand should have som e for m of flexibilit y t o t ake int o account t he r egional diver sit ies acr oss t he count r y . This can be achiev ed t hr ough par t ner ships w it h t he local bodies at t he dist r ict lev el and t he dist r ict planning com m it t ees. I I . Panchayat i Raj I nst it ut ions in I ndia: Carriers of Rural Developm ent The Panchay at i Raj I nst it ut ions as env isaged in t he 73 rd Const it ut ion Am endm ent Act 1992 were t o be est ablished as independent unit s of local self gov er nm ent inst it ut ions w it h a clear m andat e of planning for econom ic developm ent , social j ust ice and im plem ent schem es relat ed t o t hese as m ay be ent r ust ed t o t hem by t heir r espect iv e st at e gov er nm ent s. Accor dingly t he Elev ent h Schedule of t he Const it ut ion laid dow n a list of 29 subj ect s t o be dev olv ed t o t he panchay at s along w it h funds, funct ions and funct ionar ies by each St at e Gov er nm ent . This init iat iv e did not only t end t o ear m ar k a significant and viable j ur isdict ion for t he PRI s but t he subj ect s so chosen w er e t hose in w hich int er v ent ion w her e necessar y w as best suit ed at low er t ier of gov er nance t han higher ones, w hich is also a t hum b r ule for effect ive decent r alizat ion of gover nance. How ever t he ex t ent of dev olut ion w as left t o be decided by each St at e Gov er nm ent accor ding t o t heir local needs. This evident ly led t o each St at e Governm ent bringing fort h t heir respect ive Panchayat i Raj Act as env isaged but t he ex t ent of dev olut ion v ar ied w idely acr oss t he count r y . The t able giv en below clear ly enum er at es t he st at us of dev olut ion of funds, funct ions and funct ionar ies ( 3 Fs) t o PRI s across all t he st at es in I ndia. St at es like Karnat aka, Kerala, Sikkim , Raj ast han and Maharasht ra while have m ade subst ant ial effort s in st rengt hening t heir PRI s t hrough concom it ant t r ansfer of funds and funct ionar ies along w it h funct ions, m ost ot her st at es hav e w it h alacr it y dev olv ed t he funct ions but hav e failed t o dev olv e t he ot her t w o F’s as r equir ed. The lack of cont rol over funct ionaries and inabilit y t o m obilize significant resources on t heir own have seriously im pair ed t h e fu n ct ion in g of t h e PRI s an d h as pr ecipit at ed t h eir r ole as m er e agen cies of dev elopm ent . I n m ost of t he st at es t hese local inst it ut ions ar e heav ily dependent on t he funds fr om Cent r ally Sponsor ed Schem es and St at e Plan Schem es for developm ent al act ivit ies w it hin t heir j urisdict ion. Unt ied grant s from st at e governm ent s and ow n revenue sources are usually t oo lit t le t o encourage local level planning and execut ion of t hese plans. There is also in som e ar eas lack of clear dem ar cat ion of pow er and funct ions bet w een t he t hr ee t ier s of PRI s. 17 BACKGROUNDNOTE Table 5 : St at us of Devolut ion of Funds, Funct ions and funct ionaries t o PRI s St a t es Karnat aka Ker ala Sikkim Maharasht ra Andhra Pradesh Arunachal Pradesh Assam Bihar Jharkhand Goa Guj arat Haryana Him achal Pradesh MP Chhat t isgarh Manipur Orrisa Punj ab Raj ast han Tam il Nadu Tripura Ut t ar Pradesh Ut t rancahal West Bengal A&N I sland Chandigarh D&N Hav eli Dam an &Diu NCT of Delhi Pondicherry Lakshdweep N o. of D e pa r t m e n t s / Su bj e ct s Tr a n sfe r r e d t o pa ncha ya t s w it h funds Fu n ct ion s Fu n ct ion a r ie s 29 29 29 26 26 26 24 24 24 18 18 18 05 17 02 29 8 25 On ly funct ional cont rol 6 6 15 15 15 16 02 26 11 10 23 9 10 29 09 22 4 9 25 21 7 18 29 18 29 12 04 12 06 11 11 12 29 12 6 6 6 3 3 5 9 3 Panchayat Syst em yet t o be revived 6 - So u r ce: Mi n i st r y o f Pa n ch a y a t i Ra j , Go v t . o f I n d i a . The inadequat e dev olut ion of pow er s and funct ions has cr eat ed ser ious gr ey ar eas for polit ical as w ell as adm inist rat ive account abilit y. Since bureaucrat ic cont rol over funds and im plem ent at ion of t he dev elopm ent al schem es st ill ex ist t o a lar ge ex t ent , polit ical account abilit y of t he elect ed r epr esent at iv es of t he PRI s, w hich is a k ey cor ner st one in t he efficacy of t hese inst it ut ions, has been rendered ineffect ive. Conversely, given t he plet hora of schem es it is virt ually im possible for of f icials t o ef f ect iv ely m on it or t h e im plem en t at ion of t h ese, t h er eby cr eat in g gaps in t h e adm inist r at iv e account abilit y of t he PRI s. I nadequat e st affing is also a m aj or sour ce of ineffect iv e funct ioning of panchay at s m ost ly at t he Gram Panchayat level which is t he nodal agency for im plem ent ing rural developm ent program s, village adm inist rat ion and also organizing Gram Sabhas. I n som e st at es like Kerala where Gram Panchay at s has been endow ed w it h pr oper adm inist r at iv e set up, deliv er y and m aint enance of public ser v ices at local lev el has m ade r apid st r ides. How ev er , in st at es lik e Raj ast han t he r esponsibilit y of a Gr am Panchayat lies ent ir ely on t he shoulder s of a single ‘Panchayat Secr et ar y’ whose m aj or responsibilit ies are im plem ent at ion and m onit oring of m aj or schem es like NREGS and I AY am ong ot hers, hold Gram Sabha m eet ings and keep t heir m inut es, m anage finances of t he panchayat and prepare account ing st at em ent s, adm inist rat ion of t he panchayat office, dispense ot her adm inist rat ive funct ions of t he village and m aint ain all records. Deart h of requisit e st aff is also quit e pr om inent at t he Block and Dist r ict Panchayat level. A par t icular ar ea of w eakness is t hat giv en t he huge am ount of fund flow t o t hese inst it ut ions, t her e is a sev er e lack of t r ained account ant s or fund m anager s and a ver y low em phasis on a har m onized syst em of pr ocess docum ent at ion and r epor t ing ev en w it hin t he st at es. BACKGROUNDNOTE 18 Decent ralized Planning and PRI s Ther e is no gainsay ing t he fact t hat effect iv e decent r alized planning is t he basis of any sound developm ent st rat egy. I n case of rural developm ent it is even m ore pert inent given t he variegat ed facet s of depr iv at ion and pov er t y ex per ienced acr oss t he count r y and t her efor e t he huge div er sit y in r em edial m easur es and t y pe of asset s t hat needs t o be cr eat ed in t his sect or . To encour age peoples’ part icipat ion in local planning and ensure t heir needs and aspirat ions are capt ured in t he process, Gram Sabhas form ed t he prim ary bedrock of Panchayat i Raj . Gram Sabhas were also necessary t o ensure social audit of schem es and program s already being im plem ent ed and also guar ant ee account abilit y of elect ed r epr esent at ives and adm inist r at ive officials. I n t his r egar d t he Panchay at s ( Ex t ension t o Scheduled Ar eas) Act , 1996 had spelled out clear ly t he r ole of t he Gr am Sabhas. I t quit e succinct ly put s dow n t hat ever y Gr am Sabha should be r esponsible for safeguarding and preserving t he t radit ions and cust om s of t he people, t heir cult ural ident it y, com m unit y resources and cust om ary m et hods of disput e set t lem ent . I n addit ion every Gram Sabha shall be r esponsible for a) appr ove t he plans, pr ogr am s, pr oj ect s for econom ic and social dev elopm ent befor e t hese ar e t ak en up for im plem ent at ion by t he panchay at s at t he v illage lev el, b) ident ificat ion or select ion of beneficiar ies for pov er t y allev iat ion and ot her sim ilar pr ogr am s, c) issue cer t ificat e of ut ilizat ion of funds by t he panchayat s for t he plans, pr ogr am s and proj ect s already being im plem ent ed. Cert ainly applicat ion of such well- int ent ioned provisions in t he Const it ut ion needs t o be st rengt hened and universalized. I t m ay also be m ade m andat ory for at least a block level official t o at t end t he m eet ings of Gr am Sabha and explain t o t he people r ecent policy init iat iv es by t he St at e Gov er nm ent s or t he Union Gov er nm ent , t heir financial det ails and t he peoples’ init iat ive t hat is required. Given t he heavy dependence of t he PRI s on Cent r ally Sponsor ed Schem es for financing r ur al developm ent , it is absolut ely im per at ive t hat t hese schem es should be able com plem ent local planning as art iculat ed t hrough t he Gram Sabhas. One w ay achieving t his w ould be t o provide t he panchayat s w it h block grant s w it h flexible set of guidelines, enum erat ing broad areas of spending w it h specific per cent ages t o be dev ot ed in each sect or r at her t han a r est r ict iv e list of act ivit ies. I n addit ion, product ivit y norm s of em ploym ent program s and unit cost s for provisioning public ser v ices lik e housing, w at er and sanit at ion m ay be det er m ined w it h t he help of line depart m ent officials at t he dist rict or block level; t echnical advisory groups m ay also be const it ut ed for t his pur pose. As m any st at es have t aken init iat ive in pr epar at ion of a dist r ict level five year plans, such per spect iv e planning w hile is a w elcom e init iat iv e it needs t o be back ed up w it h st r ong financial suppor t . I n t his cont ex t a com m endable dev elopm ent is t he int r oduct ion of Backward Region Grant Fund ( BRGF) which seeks t o address regional im balances where exist ing inflow funds are not enough t o bridge t he developm ent deficit . The BRGF provides unt ied funds t o t he panchay at s based on a for m ula for div ision of funds dev ised on t he basis of back w ar dness of t he panchay at s. Tw o im por t ant char act er ist ics of BRGF ar e w or t h not ing; fir st ly it has m ade t he const it ut ion of Dist r ict Planning Com m it t ees m andat or y for all t he st at es and secondly has provisions for dovet ailing wit h ot her schem es. Fisca l Aut onom y for PRI s Any am ount of decent r alizat ion in planning for dev elopm ent can only be successful if t he local self- gov er nm ent inst it ut ions ar e capable of r aising r esour ces on t heir ow n t o finance a significant part of t hese plans w it hout depending on higher level of governm ent s. I n t his regard it w as m andat ed t o t he St at e gov er nm ent s t o enact confor m it y law s and const it ut e t he St at e Finance Com m ission ( SFC) for fiscal decent r alizat ion t o t he PRI s. The role of SFC w as t o recom m end a) t he pr inciples gov er ning t he dist r ibut ion bet w een t he st at e and t he local bodies of net pr oceeds of t ax es lev iable by t he st at e; b) det er m inat ion of t he t ax es, dut ies, t olls and fees w hich could be assigned t o t he local bodies c) quant um of gr ant - in- aid fr om t he consolidat ed fund of t he st at es. Addit ionally t he SFCs w er e also t o suggest m easur es t o im pr ove t he financial per for m ance of t he local bodies. Consequent ly, t he PRI s receive funds m ainly from t he following four sources: ( 1) ( 2) ( 3) ( 4) The Consolidat ed Fund of t he St at e as per t he r ecom m endat ions of t he SFCs; Grant s- in–aid as per Cent ral Finance Com m ission award; Cent rally Sponsored Schem e ( CSS) ; and Own Source Revenue ( OSR) . 19 BACKGROUNDNOTE The t able below gives br eak up of t he r evenue r eceipt s of t he all t ier s of Panchayat i Raj in I ndia. Ta ble 6 : Re ve nue Re ce ipt s of t he PRI s ( All Tie r s) in I ndia ( in percent age) Own Tax Ow n Non- Tax Ow n Re ve nue Assignm ent + Devolut ion Grant s -in -Aid Ot her s Tot a l Ot he r Re v e n u e Tot a l Re ve nue ( A + B) 1998 99 3. 64 3. 07 6. 71 1999 2000 3. 04 2. 95 5. 99 2000 01 3. 24 2. 86 6. 10 2001 02 3. 61 2. 77 6. 38 2 0 0 203 3. 87 2. 98 6. 84 30.20 56.34 6. 75 29.23 58.92 5. 85 28.10 57.76 8. 04 27.46 58.85 7. 32 27.69 58.95 6. 52 93.29 94.01 93.90 93.62 93.16 100 100 100 100 100 So u r ce o f Ba si c D a t a : Rep o r t o f t h e Tw el f t h Fi n a n ce Co m m i ssi o n , Go v t . o f I n d i a . Out of t hese ow n r ev enues had been a m aj or sour ce of cont ent ion. While it w as not ed t hat revenue effort s by t he PRI s were ext rem ely poor, it m ust also be acknowledged t hat in m any cases t he t ax es or fees assigned t o t hem lack ed ser ious r ev enue pot ent ial. Mor eov er for efficient t ax adm inist rat ion t here is needed w ell- oiled adm inist rat ive m achinery for collect ion of t axes. Anot her t hing t hat needs t o be inv est igat ed in t his cont ex t is t he r ev enue gener at ing pot ent ial for t ax j ur isdict ions in case of low er t ier s panchayat s ( especially Gr am Panchayat s) . A m aj or cr it icism in case v iabilit y of ow n r ev enue of panchay at s is t hat user fees or t ax es ar e not lev ied at t he Gr am Panchay at lev el because of t he pr ox im it y of t hese inst it ut ions t o t he assessees. I n such case t axes m ay also be assigned t o higher t iers of t he Panchayat s and t he int er se dist ribut ion of t hese should be w ell defined and deliber at ed t hr ough t he SFCs. An inst it ut ional predicam ent in ensuring t he fiscal aut onom y of t he PRI s is t he irregularit y of inst it ut ing SFCs by t he St at e Gov er nm ent s. Mor eov er , t he St at e gov er nm ent s ar e also oft en r elu ct an t t o im p lem en t f u lly t h e r ecom m en d at ion s of t h e SFCs. Th er e is also a lack of synchr onizat ion in t he aw ar d per iods of t he Cent r al Finance Com m ission and t he SFCs. The Twelft h Finance com m ission in t his regard put s forward t hat “ w e f in d t h at m ost st at es ar e y et t o appreciat e im port ance of t his inst it ut ion in t erm s of it s pot ent ial t o carry t he process of dem ocrat ic decent r alizat ion fur t her ……. . The delay s in const it ut ion of t he SFCs , t heir const it ut ion in phases, frequent reconst it ut ion, qualificat ion of persons chosen, delayed subm ission of report s and delayed t abling of act ion t ak en r epor t ( ATR) in t he legislat ur e hav e in m any cases defeat ed t he v er y pur pose of t his inst it ut ion.” Evident ly, t here is considerable inert ia w it hin t he St at e Governm ent s t o init iat e r efor m s t hat fast t r ack t he pr ocess decent r alizat ion. One r eason t hat St at e gover nm ent s have been dr agging t heir feet on fiscal decent r alizat ion is t he alr eady exist ing ver t ical im balance in shar ing of r esour ces bet w een Cent r e and St at es and t he ov er bear ing pr esence com m it t ed expendit ures ( like salary, pension and int erest paym ent s) in t he st at e budget s. I nit iat ive t herefore should t o a gr eat ext ent r est w it h t he cent r al finance com m ission t o explor e m eans of augm ent ing t he r esour ces of t he St at e Gov er nm ent s and also deliber at e on t he shar e of local bodies in t he Cent ral Governm ent finances. The Twelft h Finance Com m ission ( TFC) m ade considerable headway in t his cont ext by awarding t he PRI s an am ount of Rs. 20,000 crores t o im prove t heir st andard of civ ic ser v ices ( m ost ly w at er and sanit at ion) . The TFC also not ed t hat m ost st at es lack ed accur at e infor m at ion on t he finances of t he local bodies. They also not ed t hat t he Elev ent h Finance Com m ission had awarded around Rs. 683crores for creat ion of dat abase by local bodies and m aint enance of account s, out of w hich only 30 per cent had been ut ilized. The TFC how ev er desist ed fr om aw ar ding any specific am ount for st r engt hening of t hese act iv it ies, how ev er a specific grant m ay be considered by t he fort hcom ing Cent ral Finance Com m ission for st rengt hening t he est ablishm ent and adm inist rat ion of t he PRI s and im prove t heir m anagem ent inform at ion sy st em s ( MI S) . Such a gr ant m ay also pr ov ide incent iv e for t he st at e gov er nm ent t o dev olv e funct ionar ies t o t he PRI s. BACKGROUNDNOTE 20 The Cent ral Governm ent m ay also consider devolving a part of t he cent rally sponsored schem es ( par t icular ly t he ones r eaching PRI s) as block gr ant s or cent r al assist ance t o Dist r ict Plans, for st at es t hat hav e m ade consider able pr ogr ess in em pow er ing t he panchay at s and hav e t ak en up adm inist rat ive and inst it ut ional reform s t o im prove t he t ransparency and perform ance of t hese bodies. Such a policy w ould enable st at es, w hich hav e alr eady ov er com e fir st gener at ion pr oblem of public ser v ice deliv er y t hr ough panchay at s, per for m bet t er in m aint enance and oper at ion of t heir r esour ces. This m ay also pr ovide incent ive for laggar d st at es t o im pr ove t heir per for m ance in t his respect . Moreover, such init iat ives would also liberat e resources for t he concerned m inist ries w ho can st rengt hen m onit oring of t heir schem es operat ing in st at es w hich have low developm ent in d icat or s an d h av e sh ow n p oor p er f or m an ce in t er m s of f u n d u t ilizat ion . An in d ex of decent r alizat ion, t r anspar ency , back w ar dness in t er m s of r ev enue capacit y m ay be ev olv ed for local self gov er nm ent inst it ut ions t o cat egor ize t he st at es and det er m ine t heir eligibilit y for such gr ant s. A sim ilar index has alr eady been used by t he TFC t o allocat e in t er se dist ribut ion of grant in aid am ong t he st at es. I I I . Concluding Rem arks The above discussion m akes an at t em pt at highlight ing all t he issues t hat ar e r elevant in t he process of rural developm ent , including finacial and inst it ut ional param et ers. The discussion as it has evolved m ost ly has already been docum ent ed in m yriad st udies on rural developm ent and Panchayat i Raj I nst it ut ions. Som e of it t hough m ay seem r egur git at ion of w ell- est ablished fact s, t he usefulness t his r ev iew ex t ends t o sit uat ing t he dom inant st r ands of t he debat e int o t he lar ger cont ex t of feder alism and ev olv ing t r ends in it s finances. Aft er fift een y ear s hav e passed w it h t he Const it ut ional r ecognit ion of t he t hir d t ier of gov er nance, t hese inst it ut ions st ill oper at e w it h rudim ent ary adm inist rat ive fram ew ork and st rait j acket ed finances. Moreover t he nat ure and per for m ance of t hese inst it ut ions v ar y w idely acr oss t he count r y , giv en t he v ar iegat ed lev els decent r alizat ion by each St at e Gov er nm ent . I n som e st at es pr ogr ess m ade has been oft en r ev er t ed t o suit t he polit ical pr ior it ies of t he incum bent gov er nm ent . Hence t her e is a need t o init iat e reform s which would ensure a m inim um hom ogeneit y in t he st ruct ure and perform ance of panchay at s acr oss t he count r y . A w elcom e init iat iv e in t his cont ex t w ould be t o int r oduce a “ Local Gov er nm ent List ” in t he Const it ut ion along t he line of t he alr eady ex ist ing St at e List , Cent r e List and t he Concur r ent List . I n case of financing developm ent t hrough cent rally sponsored schem es a m aj or crit icism against it is t h at it allow s t h e Un ion Gov er n m en t t o en cou r age in dist r ibu t iv e polit ics ov er r idin g developm ent al im perat ives. While such allegat ions have not been well est ablished in academ ic and policy r esear ch cir cle, a w elcom e init iat ive in t his r egar d w ould be t o m ake t he allocat ions under CSSs m ore form ula based and t ransparent . Onus of success of t he Panchayat i Raj I nst it ut ion does not rest squarely on governm ent init iat ives. Civ il societ y init iat iv es in const ant k now ledge pr oduct ion and dissem inat ion and use of t hese for capacit y building of t he com m unit ies and it s leaders and adm inist rat ive funct ionaries will cat alyze t he t r ansit ion t o decent r alized gov er nance. References: CBGA ( 2008) , Response t o Union Budget 2008- 09, New Delhi. Debroy, B. and P.D. Kaushik( ed) ( 2005) , Energising Rural Developm ent s t hrough ‘Panchayat s’, Academ ic Foundat ion, New Delhi. Jain L.C. ( ed) ( 2005) , Decent ralizat ion and Local Governance, Orient Longm an. Mehrot ra, S. ( 2008) , NREG Two Years On: Where Do We Go From Here?, EPW, Aug 2008. Out com e Budget ( various years) , Minist ry of Rural Developm ent , Govt . of I ndia. Report of t he Tw elft h Finance Com m ission, Govt . of I ndia. Rao, C. B., M. Gupt a, P.R. Jena ( 2007) , Cent ral Flow s t o Panchayat s: A Com parat ive St udy of Madhya Pradesh, EPW. 21 BACKGROUNDNOTE Rur a l W a t e r Supply a nd Sa nit a t ion: I n Pursuit of H ea lt h a nd Dignit y Tr ish a Aga r w a la Wat er supply and sanit at ion sect or has never been accor ded adequat e pr ior it y in public spending in I ndia, given it s huge im plicat ions for peoples’ healt h, livelihood, dignit y as well as social and econom ic j ust ice. I n fact , it im pact s and affect s all segm ent s of t he societ y especially w om en, childr en and back w ar d cast es. The sect or is ev en m or e per t inent , k eeping in m ind t hat t he cur r ent year 2008 has been declar ed t he I nt er nat ional Year of Sanit at ion and t he year s 20052015 as t he Wat er for Life Decade. How t hen does t he count r y m easur e up t o t he Millennium Developm ent Goal ( MDG) of seeking t o halve t he pr opor t ion of people w it hout sust ainable access t o safe drinking wat er and full sanit at ion by 2015? A st ar k r ealit y is t hat t he populat ion pr act icing ‘open defecat ion’ in r ur al ar eas in 2006 is t he m ost in Sout h Asia ( 63 percent ) is even higher t han Sub- Saharan Africa ( 39 percent ) . Am ong t he Sout h Asian count r ies, an est im at ed 74 per cent of r ur al populat ion in I ndia it self pr act ice ‘open defecat ion’ as show n in Table 1a below . Ta ble 1 a . Pr a ct ice of ‘Ope n de fe ca t ion ’ in r u r a l a r e a s, 2 0 0 6 ( in percent ) Re gion/ count r y Sub- Saharan Africa Sout h- Asia I ndia Pak ist an Bangladesh Est im a t e d popu la t ion pr a ct icin g ‘Ope n de fe ca t ion ’ in r u r a l a r e a s 39 63 74 45 14 So u r ce : Join t Mon it or in g Pr ogr am m e on Wat er an d San it at ion - Un icef & WHO, 2 0 0 8 ; Pr ogr ess on Dr in k in g Special Focus on Sanit at ion Wat er an d San it at ion : When com par ed t o neighbor ing count r ies, Bangladesh and Pak ist an, Wat er and Sanit at ion indicat ors are also found t o be low er in I ndia. Table 1b. highlight s t he findings of t he t hree count r ies: Ta ble 1 b. W a t e r a n d Sa n it a t ion I n dica t or s, 2 0 0 4 ( in per cen t ) Cou n t r y I n d ia Pa k ist a n Ba n g la d e sh * Populat ion using im proved sanit at ion 33 59 39 # Populat ion using an im proved wat er source 86 91 74 So u r ce : Hu m an Dev elopm en t Repor t 2 0 0 7 / 0 8 , UNDP * Th e p e r ce n t a g e o f t h e p o p u l a t i o n w i t h a cce ss t o a d e q u a t e e x cr e t a d i sp o sa l f a ci l i t i e s, su ch a s a co n n e ct i o n t o a se w e r o r se p t i c t an k sy st em , a p ou r - f lu sh lat r in e, a sim p le p it lat r in e or a v en t ilat ed im p r ov ed p it lat r in e. An ex cr et a d isp osal sy st em is con sid er ed ad eq u at e i f i t i s p r i v at e o r sh ar ed ( b u t n o t p u b l i c) an d i f i t can ef f ect i v el y p r ev en t h u m an , an i m al an d i n sect co n t act w i t h ex cr et a. # Th e sh ar e of t h e popu lat ion w it h r eason able access t o an y of t h e f ollow in g t y pes of w at er su pply f or dr in k in g: h ou seh old con n ect ion s, p u b l i c st an d p i p es, b o r eh o l es, p r o t ect ed d u g w el l s, p r o t ect ed sp r i n g s an d r ai n w at er co l l ect i o n . Accor ding t o t he Wor ld Healt h Or ganisat ion ( WHO) , t her e ar e at least 25 m aj or Wat er and Sanit at ion relat ed diseases in t he world in which diarrhoeal disease alone is responsible for t he deat hs of 1.8 m illion people ever y year ( WHO,2004) . These var ious fact s can only show how neglect ed t he sect or has been in t he count r y . The back gr ound not e w ill at t em pt t o under st and t he problem s ailing t he sect or and also bring out a Chart er of dem ands which will address t hese issues. To get a com pr ehensive under st anding of t he sect or , keeping in view t hat t his is t he last year of t he UPA- led governm ent and Bharat Nirm an, it is essent ial t o exam ine t he policies and schem es BACKGROUNDNOTE 22 t hat hav e been fr am ed t o t his effect . The Gov er nm ent aim s t o achiev e it s w at er supply and sanit at ion t ar get s by 2012 w hich is t he end of t he Elev ent h 5- y ear Plan per iod. A br ief chr onology of program m es and m issions in t he wat er and sanit at ion sect or is given in t he Table 1.c below. Ta ble 1 c: Ch r on ology of W a t e r a n d Sa n it a t ion Pr ogr a m m e s Ye a r 1954 1972- 73 1986 1992 1998 1999 2002 2005 2006 Pr ogr a m m e Nat ional Wat er Supply and Sanit at ion Program m e Accelerat ed Rural Wat er Supply Program m e ( ARWSP) - Nat ional Drinking Wat er Mission - Cent ral Rural Sanit at ion Program m e ( CRSP) - Raj iv Gandhi Nat ional Drinking Wat er Mission ( RGNDWM) - 7 3 r d Const it ut ional Am endm ent t ransferred drinking wat er t o Panchayat i Raj I nst it ut ions ( PRI s) Su b- m issions for Wat er Qualit y - Depart m ent of Drinking Wat er Supply ( DDWS) creat ed under Minist ry of Rural Developm ent ( MoRD) - Tot al Sanit at ion Cam paign ( TSC) ; School Sanit at ion & Hygiene Educat ion ( SSHE) Program m e - Swaj aldhara/ Sect or reform s - Com m unit y Led Tot al Sanit at ion ( CLTS) Bharat Nirm an - com ponent of creat ing drinking wat er infrast ruct ure in rural areas Nat ional Rural Drinking Wat er Qualit y Monit oring & Surveillance Program m e ( NRDWQM & SP) So u r ce : Min ist r y of Ru r al Dev elopm en t , GoI I . Trends in Budget Out lays on Rural W at er and Sanit at ion Rural w at er supply is a St at e subj ect ; how ever, t he governm ent has been supplem ent ing t he effor t s of t he st at es by pr ov iding financial assist ance t o t hem ov er t he y ear s. Alt hough m ost Wat er and Sanit at ion program m es are cent rally sponsored, w it h st at es providing m at ching grant s, m any St at es in r ecent y ear s hav e been facilit at ed by t he DDWS t o opt for ex t er nal assist ance such as t he World Bank. The follow ing Table show s t hat t here is a gap bet w een t he am ount proposed t o t he Planning Com m ission and t he act ual am ount provided t o t he Depart m ent of Drinking Wat er Supply ( DDWS) during each year of t he Tent h Plan, Elevent h Plan and t he first t w o y ear s of Elev ent h Plan ( t he y ear s 2007- 08 and 08- 09) . Ta ble 2 a : Fin a n cia l a lloca t ion t o D D W S by Pla n n in g Com m ission ( Rs. in cr or e) Ye a r 2005- 06 2006- 07 2007- 08 2008- 09 Pr opose d Pla n n in g Com m ission 4,950.00 5,500.00 9,632.36 9870.65 to Alloca t e d by t h e Pla n n in g Com m ission Re vise d Est im a t e s 4,050 5,200 6,500 7,300 4,060 4,560 6,400* - So u r ce : 3 7 t h Repor t of t h e St an din g Com m it t ee on Ru r al Dev elopm en t , MoRD, DDWS, Dem an d for Gr an t s ( 2 0 0 8 - 0 9 ) * Up t o 2 9 th Feb ’ 0 8 For t he rural wat er supply obj ect ives under Bharat Nirm an t o be fulfilled, t he DDWS put forward a dem and of Rs.25,300 crore t o t he Planning Com m ission, however, as seen in t he Table 2b. below , t he act ual am ount allocat ed indicat es a shor t fall of m or e t han Rs.2,000 cr or e. 23 BACKGROUNDNOTE Ta ble 2 b: Bu dge t ou t la y & u t iliza t ion of r u r a l w a t e r su pply com pon e n t u n de r Bh a r a t N ir m a n ( Rs.in cr or e) Ye a r 2 0 0 5- 0 6 2 0 0 6- 0 7 2 0 0 7- 0 8 2 0 0 8- 0 9 Tot al Am ount a lloca t e d for r ur a l w a t e r su pply com pon e n t by Pla nning Com m ission 4,050 5,200 6,500 7,500 23,250 Re vise d Est im a t e s Act u a l Ut ilise d 4,060 4,560 6,400 - 4,098.03 4,560 5,386.54* - Am ou n t Sour ce: 37 th Repor t of t he St anding Com m it t ee on Rur al Dev elopm ent , MoRD, DDWS, Dem and for Gr ant s ( 2008- 09) * Upt o 29 th Feb’08 The t r end in allocat ion and ut ilizat ion for sanit at ion is giv en in Table 2c. Since t he Tot al Sanit at ion Cam paign ( TSC) is a dem and driven program m e, no annual t arget s have been set . Sour ce: 37 t h Report of t he St anding Com m it t ee on Rural Developm ent , MoRD, DDWS, Dem and for Grant s ( 2008- 09) Ta ble 2 c. Fin a cia l Alloca t ion s a n d u t ilisa t ion in t ot a l sa n it a t ion ca m pa ign Year 2005 - 06 2006 - 07 2007 - 08 Out la y 700 800 1060 Act ua l a m ount spe nt 660.71 737.91 886.07* * Upt o 29 t h Feb’08 The above infor m at ion on t he exist ing and cur r ent t r ends in financial allocat ion show t hat t her e a shor t fall bet w een t he am ount allocat ed and t he am ount pr oposed. I n addit ion, t he ut ilizat ion figur es ar e low er t han t he am ount allocat ed. One has t o under st and t he causes and r easons behind t he unspent and unopened balances ly ing w it hin t he St at e also. I I . Ke y Ch a lle n ge s Ru r a l W a t e r su pply § Bharat Nirm an, t he am bit ious flagship program m e of t he governm ent has drinking wat er as one of it s six com ponent s. Mor e specifically it addr esses cov er age, sust ainabilit y and qualit y of wat er. Since 2008- 09 is t he last year for t his program m e, it is essent ial t o t ake st ock on it . The 37 t h Report of t he St anding Com m it t ee on Rural Developm ent , Minist ry of Rural Developm ent ( MoRD) , DDWS, Dem and for Grant s ( 2008- 09) , has analyzed t hat only 5 7 per cent of t he t ar get s could be achiev ed under t he cat egor y of uncov er ed h abit at ion s, 6 4 per cen t u n der slipped- back an d 4 3 per cen t u n der qu alit y af f ect ed habit at ions. These figur es show t hat t her e is st ill a long w ay t o go for t he t ar get s of Bharat Nirm an t o be achieved. The proposed allocat ion was never given for Bharat Nirm an. ( Refer t o Table I I I b ) § Aft er 1992, t he 73 rd Am endm ent Act gave Panchayat i Raj I nst it ut ions ( PRI s) a role in drinking wat er schem es; however, t his is only in paper. The Swaj aldhara program m e was launched precisely for t he purpose of com m unit y ownership. A sum of Rs 40 crore has been given by t he 12 t h Finance Com m ission t o t he PRI s for operat ion and m aint enance BACKGROUNDNOTE 24 ( O&M) of drinking w at er proj ect s. Nonet heless, one has t o assess w het her t his sum is act ually being ut ilized for t he said pur pose or not . § Under t he Raj iv Gandhi Nat ional Drinking Wat er Mission, t he Nat ional Rural Drinking Wat er Qualit y Monit or ing & Sur v eillance Pr ogr am m e w as const it ut ed t o look int o t he problem of wat er qualit y. Arsenic and fluoride were ident ified as t wo of t he m ost dangerous pr oblem s, how ev er , t ar get s hav e not been m et and t he pr oblem st ill per sist s. The Com pt r oller an d Au dit or Gen er al’s Repor t sh ow s t h at f u n ds ear m ar k ed t o addr ess specifically t he issue of qualit y ar e lying unspent . Wat er t est ing labor at or ies w er e t o be set up in various st at es how ever m onit oring t eam s report ed t hat funds m eant for t his pur pose w as not ut ilized. § The deplet ion of gr ound w at er t able has br ought about a m inor w at er cr isis and r aised quest ions on t he sust ainabilit y of w at er sour ces. Ther e hav e been v er y w eak effor t s by t he gover nm ent t o t ackle t his issue. Ther e is no punit ive act ion or legal m easur es t aken against t he m isuse and ov er use of gr ound w at er sour ces by t he St at es. I ssu e s in Ru r a l W a t e r Su pply § § § § § § Few St at es viz. Nort h East , Orissa, Jam m u & Kashm ir are unable t o provide m at ching shar e. I ncr ease in cov er age cost , st eep hik e in t he pr ices of m at er ial cost s used in w at er supply schem es. Lack of sust ainabilit y of w at er supply sy st em s and sour ces. Deplet ing gr ound w at er leading t o slippage of alr eady cover ed habit at ions & det eriorat ion of wat er qualit y. Delay in t ransfer of funds from St at e t o im plem ent ing agencies. Lack of capacit y building of PRI s t o oper at e & m aint ain w at er supply syst em s. So u r ce : NAC D i scu ssi o n Pa p e r s, RGD W M, D D W S, Mo RD , Go I , 2 8 t h Fe b ’ 0 8 Ru r a l Sa n it a t ion § Sanit at ion is not on t r ack t o m eet t he MDG t ar get s. The pr oblem of open defecat ion st ill per sist s in r ur al ar eas. This is despit e t he fact t hat r ur al cov er age has incr eased t o 50 percent as per DDWS dat a showing a m arked im provem ent from 2001 when it was only a m eager 22 percent . The figures prim arily show ‘coverage’ ( num ber of individual household lat r ines const r uct ed) but not ‘usage’ m ak ing it difficult t o assess. The lack of pr ior it y and t r adit ional at t it udes ex ist ing in sanit at ion habit s has led t o low usage. Findings of sur v ey s r eveal t hat social st at us and convenience w er e t he pr im ar y r easons for building a t oilet and healt h w as t he least im por t ant . § I t is a k now n fact t hat im pr ov ed sanit at ion and hy giene hav e a gr eat er healt h im pact t han a safe w at er supply . The lat e focus on sanit at ion in t he count r y and a lack of polit ical will has m ade it hard t o get t he at t ent ion and int erest at t he nat ional as well as int ernat ional ar ena. This m ay be t he r eason t hat t her e is no separ at e cell on sanit at ion in DDWS or a Sanit at ion Policy. Alt hough t her e has been publicit y gener at ed t hr ough adver t isem ent s on t he occasion of t he I nt er nat ional Year of Sanit at ion; it has had m ar ginal im pact at t he ground level. § The Nirm al Gram Puraskar ( NGP) was const it ut ed as an award for Gram Panchayat s t hat have achieved 100 percent sanit at ion. NGP winners have grown from 38 in 2005 t o 5,000 in 2007 showing a very opt im ist ic pict ure. However, findings from t he m onit oring and ev aluat ion t eam s r ev eal t hat it has becom e incent iv e and t ar get dr iv en. § The TSC has not m anaged t o cr eat e an im pact in t er m s of behav ior al change. I t has a nar r ow focus on pushing t oilet s t o Below Pov er t y Line fam ilies w her e t her e is an absence 25 BACKGROUNDNOTE of com m unit y appr oach. I t is gr adually t ur ning int o j ust anot her subsidy and t ar get driven program m e. § The inhum an occupat ion of ‘m anual scavenging’ st ill persist s in som e part s of t he count ry. I m proved sanit at ion has never been linked t o t his issue. There are deeper reasons behind it s ex ist ence but since ‘sanit at ion’ is a dir t y w or d, no effor t has been m ade t o addr ess it . § I m pr ov ed sanit at ion has a dir ect im pact on t he healt h, educat ion and social st at us of w om en. I n addit ion t o providing safet y and m obilit y, it can lead t o enhanced decision m aking am ong wom en. Sadly, wom en are left out in t he policy m aking process in t his sector. § The Finance for drinking On t he face giv en t o t he § The Out com e budget had aim ed t o provide separat e t oilet blocks for school girls in 200708. But sadly t he r et ent ion r at e of school gir ls has not incr eased significant ly nor has t he drop- out rat e gone dow n. Also are t here any provisions m ade for w at er supply in t he t oilet s? m inist er in his 2008- 09 Budget Speech announced a grant of Rs 200 crores w at er provision in schools. These are for st and- alone purificat ion syst em s. of it , t he announcem ent look s gener ous but has t her e been any t hought O&M of t he w at er supply . Tot a l Sa n it a t ion Ca m pa ign : Fie ld- le v e l Obse r v a t ion s As regards Tot a l Sa n it a t ion Ca m pa ign ( TSC) , w e hav e alr eady obser v ed t hat t he union budget out lay for t he schem e has not been st epped up adequat ely dur ing 2004- 05 t o 2008- 09. I n t his r egar d, w e m ay not e her e t hat field level invest igat ions on t he funct ioning of TSC reveal t hat t here is an acut e need for great er fund support for som e of it s com ponent s lik e, fund suppor t for indiv idual household lat r ines ( I HHL) and Anganw adi lat r ines, program m e im plem ent ing st aff at t he level of panchayat s, and inform at ion, educat ion and com m unicat ion ( I EC) act ivit ies in t he schem e. Hence, t he cent r al gover nm ent should provide significant ly great er m agnit ude of resources for TSC. So u r ce: Ba sed o n t h e p r el i m i n a r y f i n d i n g s o f a st u d y b ei n g ca r r i ed o u t b y Cen t r e f o r Bu d g et a n d Go v e r n a n ce Acco u n t a b i l i t y ( CBGA) , N e w D e l h i , t i t l e d ‘ D i st r i ct Le v e l An a l y si s o f Pu b l i c Sp e n d i n g o n Ch i l d r e n ’ . I I I . Policy Age n da for t h e Fu t u r e § § § § § § § I n v iew of t he fact t hat t he t im e per iod for Bhar at Nir m an is com ing t o an end, t he pace of t he pr ogr am m e should be incr eased. Mor e clar it y is needed t o define not - cov er ed, par t ially - cov er ed, fully - cov er ed and slipped- back habit at ions. The r educt ion of slippedback and NC habit at ions should be t aken up as a priorit y. Adequat e allocat ion for r ur al dr inking w at er pr ogr am m es and t o ascer t ain t he causes of out lay r educt ion at t he Rev ised Est im at e st age. A m ove from groundw at er t o surface w at er sources t o address t he problem of sust ainabilit y is needed. Linking wat er supply schem es wit h t he Nat ional Rural Em ploym ent Guarant ee Schem e w her e const r uct ion of w at er - har v est ing st r uct ur es can be a com ponent . Legislat ion on t he use, m isuses and over use of gr ound w at er by t he Minist r y of Wat er Resources should be im plem ent ed in t he St at es. Provision of effect ive t raining on Wat er and Sanit at ion for not j ust Public Healt h Engineering Depar t m ent engineer s but also for ot her st akeholder s in t he sect or Sanit at ion is a pr ior it y issue fr om t he point of view of w om en. The r esponsibilit y for pr ocur ing w at er ( usually t r udging long dist ances) for t he household also falls on t he wom en’s shoulders. Hence, it is im perat ive t o include wom en at all levels of decision– m aking and t o encourage wom en’s act ive involvem ent and part icipat ion in t he Wat er and Sanit at ion sect or . To v iew Wat er and Sanit at ion w it h a gender ed per spect iv e. For m ulat ion of a Nat ional Sanit at ion Policy and cr eat ion of a separ at e cell for Sanit at ion in t he DDWS. Wat er and Sanit at ion schem es t o be conv er ged w it h healt h and educat ion sect or schem es. BACKGROUNDNOTE 26 § TSC should be t ackled like t he Polio and AI DS cam paign. I t should push for gr eat er in v olv em en t in t h e WASH ( Wat er , San it at ion an d Hy gien e- for All) Cam paign * . Th e Com m unit y Led Tot al Sanit at ion program m e should be adopt ed in a larger num ber of St at es t o br ing about gr eat er people’s par t icipat ion and behav ior al change. ( * The Cam paign is a concer t ed global adv ocacy effor t by m em ber s and par t ner s of t he Wat er Supply and Sanit at ion Collaborat ive Council* * ( WSSCC) t o place sanit at ion, hygiene and wat er firm ly on t he polit ical agenda. * * Mandat ed by a Unit ed Nat ions resolut ion in 1990 t o m aint ain t he m om ent um of t he I nt ernat ional Drinking Wat er and Sanit at ion Decade, t he m ission of t he WSSCC is “ t o acceler at e t he achiev em ent of sust ainable w at er , sanit at ion and w ast e m anagem ent ser v ices t o all people, w it h special at t en t ion t o t h e u n ser v ed poor , by en h an cin g collabor at ion am ong developing count r ies and ext er nal suppor t agencies and t hr ough concer t ed act ion pr ogr am m es.” ) § § The abolit ion of dr y lat r ines in or der t o fur t her t he goals of t he Em ploym ent of Manual Scavenger s and Const r uct ion of Dr y Lat r ines ( Pr ohibit ion) Act , 1993. Wat er and Sanit at ion should be included in school curriculum . The Sarva Shiksha Abhiyan and Nat ional Rural Healt h Mission can be clubbed wit h t he School Sanit at ion & Hygiene Educat ion ( SSHE) Program m e which is a part of TSC. SSHE in privat e schools should be m ade necessar y cr it er ia for t he school t o get cer t ificat ion and r ecognit ion. Re f e r e n ce s 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 37 t h Report of t he St anding Com m it t ee on Rural Developm ent , MoRD, DDWS, Dem and for Grant s ( 2008- 09) Elevent h Five- Year Plan ( 2007- 12) , Planning Com m ission, Governm ent of I ndia; Dec,2007 Beyond Scarcit y: Power, Povert y and t he Global Wat er Crisis; Hum an Developm ent Report 2006; UNDP Fight ing Clim at e Change: Hum an solidarit y in a divided world; Hum an Developm ent Report 2007/ 08; UNDP Proposed Recom m endat ions on Safe Drinking Wat er in Rural areas; Wat er Aid Conference Paper; April8- 10, 2008 Mainst ream ing Gender in Wat er Resources Managem ent : Why and How ?; Background paper for World Vision Process; World Wat er Vision; World Wat er Council; 2000 Chapt er 3, MoRD, DDWS; CAG, Report No.3 of 2002 ‘I f and w her e t hey do get w at er , it s not safe t o dr ink’; G.Pandey and R. Tiw ar i; 5t h Mar ch, 2008; I ndian Express ( online edit ion ) WHO & UNI CEF’s Joint Monit oring Program m e for Wat er Supply and Sanit at ion ( JMP) . Progress on Drinking Wat er and Sanit at ion: Special Focus on Sanit at ion. UNI CEF, New York and WHO, Geneva, 2008. Advocacy for Wat er, Environm ent al Sanit at ion and Hygiene; Them at ic Overview Paper; Wat er Aid and I RC; Jan,2003 ‘Taking st ock of Wat er and Sanit at ion’; D.D’Mont e, 6t h April,2007; I ndiaToget her websit e ( online art icle) Sanit at ion- The Challenges and Way Ahead; Paper by Plan I ndia; 29 t h Mar ch, 2008 Updat e On Som e Recent Developm ent s in Com m unit y Led Tot al Sanit at ion; K.Kar and P.Bongart z; I DS, Sussex; Apr,2006 Sanit at ion for All by 2012,Drinking Wat er Securit y in Rural I ndia; Papers for discussion in NAC; RGDWM, DDWS, MoRD, GoI ; 28 t h Feb,2008 School Sanit at ion and Hygiene Educat ion; Result s from t he assessm ent of a 6 count ry pilot proj ect ; UNI CEF and I RC; May, 2006 School Sanit at ion and Hygiene Educat ion in I ndia: I nvest m ent in Building Children’s Fut ure; SSHE Global Sy m posium - ‘Const r uct ion is not enough’, Delft , The Net her lands; 8- 10 June, 2004 I ndia’s Sham e; A.Zaidi; Front line- Vol.23, I ssue 18 Sep,09- 22,2006 27 BACKGROUNDNOTE Agricult ure: Policy Rhet oric a nd t he H a rsh Rea lit y N ila ch a la Ach a r y a Agricult ure has been t he m ainst ay of I ndian econom y providing gainful em ploym ent t o 52 percent of t ot al w or k for ce1 . Of lat e, am id econom ic reform s and t rade liberalizat ion, considerable changes have been not iced in agr icult ur e sect or . The r efor m pr ocess int r oduced in t he ear ly 1990s failed t o r ecognize t he cr ucial im por t ance of t his sect or due t o w hich it has faced ser ious difficult ies. These difficult ies m anifest ed in a var iet y of for m s like loss of livelihood, consequent decr ease in purchasing power of t he rural m asses, and a st eady increase in input prices crippling t he agricult ural pr oducer s. I t is a w ell est ablished ar gum ent t hat gr ow t h of var ious sect or s of t he econom y ( like indust r y and ser v ices sect or ) depends on t he gr ow t h of agr icult ur e sect or in our count r y . This sect or has v ast pot ent ial of back w ar d and for w ar d link ages. I t is im por t ant t o not e her e t hat agr icult ur e sect or has been neglect ed since t he 1990s and has not been giv en due im por t ance in t er m s of public inv est m ent by t he successiv e gov er nm ent s. The worsening condit ion of t he sm all and m arginal farm ers in t he post liberalizat ion phase has becom e a m at t er of ser ious concer n. I t has also been r ealized t hat t he gr iev ances of t he sm all and m arginal farm ers have rem ained largely unaddressed. Also, t her e has been a dear t h of r esear ch suppor t for t his sect or . Tak ing all t hese fact or s int o consider at ion, t he pr esent not e int ends t o docum ent t he cur r ent scenar io of agr ar ian cr isis in t he count r y. I n addit ion, an at t em pt has also been m ade t o t r ace t he pr ior it ies accor ded t o t he agr icult ur e sect or in t er m s of budget ar y allocat ion and spending. This br ief also pr oposes a fut ur e policy agenda r eflect ing t he concer ns of t he m ar ginal far m er s t hat ur gent ly need t o be addr essed t hr ough t he budget . I n t his not e, t he fir st sect ion pr esent s an ov er v iew of I ndian agr icult ur e, t he second sect ion deals w it h t he pat t ern in t he Cent ral Governm ent ’s budget ary invest m ent on agricult ure and t he t hir d sect ion pr oposes som e point er s t o consider for t he developm ent of t his sect or . I . An Overview of I ndian Agricult ure Agricult ure plays an im port ant role in t he rural econom y of I ndia. As m ent ioned above, it provides gainful em ploym ent as well as raw m at erials for a large num ber of indust ries in t he count ry. Thus, agricult ure occupies a key posit ion in I ndia’s econom y bot h in t erm s of em ploym ent and it s cont r ibut ion t o t he nat ional incom e. Due t o t he com plet e failure of land reform program m es in t ur n r esult ing in a dist or t ed land holding pat t er n, t he cr isis in t his sect or post - liber alisat ion has aggr avat ed. The gr avit y of agr ar ian cr isis is r eflect ed in m ost of t he m acr o econom ic var iables of t he econom y. Ta ble - 1 : Pe r ce n t a ge dist r ibu t ion of H ou se h olds a n d a r e a ow n e d ov e r fiv e br oa d cla sse s in Ru r a l I n dia du r in g 2 0 0 3 % d ist r ib u t ion of h ou se h old s Mar ginal Sm all Sem iMedium Lar ge ? 1 Ha Medium > 4 ? 10 > 10 >1 ? >2 ? 4 2 79.6 10.8 6.00 3.00 0.60 % d ist r ib u tion of a rea ow ned Mar ginal Sm all Sem iMedium Lar ge ? 1 Ha >1 ? Medium > 4 ? 10 > 10 2 >2 ? 4 23.05 20.38 21.98 23.08 11.55 Sour ce: NSSO Repor t No 491 ( 59/ 18.1/ 4) ; Household Ow nership Holdings in I ndia, 2003 P- 1 9 So u r ce : NSSO Re p o r t No 4 9 1 ( 5 9 / 1 8 . 1 / 4 ); Ho u seh o l d Ow n er sh i p Ho l d i n g s i n I n d i a , 2 0 0 3 P- 1 9 Dat a in t able- 1 clearly shows t hat t he sem i- m edium , m edium and large households t hose who ar e in t he t op 10 per cent br ack et ow n ar ound 57 per cent of land. Com par ed t o t his, 90 per cent of t ot al r ur al households ow ned ar ound 43 per cent of t ot al land dur ing 2003. The shar e of BACKGROUNDNOTE 28 m arginal holdings ( area less t han or equal t o 1.000 ha) in t he rural areas was 79.6 percent in t he year 2003 com par ed t o 72 per cent in 1992 and 67 per cent in 1982. And about 10 per cent of t he rural households in I ndia w ere report ed t o be landless, i.e. ow ning eit her less t han 0.002 hect ares of land 2 or not hing at all. Ever rising farm ers’ suicide rat es in I ndia is a glaring sym pt om of t he acut e crisis prevalent in agricult ure sect or. Farm ers’ suicides have been on an increase since 1995. I ndebt edness and high int erest rat es on farm loans part icularly from t he non- inst it ut ional sources are t he m ain reasons behind t he ever increasing rat e of suicides am ong t he farm ers. I t has been found t hat out of 89.35 m illion farm er households, 43.42 m illion i.e. 48.6 percent were report ed t o be indebt ed. I n t erm s of t he principal source of incom e, 57 percent of farm er households w ere cult ivat ors. Am ong t hem 48 percent were indebt ed. The m ost im port ant source of loan ( in t erm s of per cent age of out st anding loan am ount ) w as bank s cont r ibut ing 36 per cent of t he loan lent out , follow ed by m oney lender s w ho cont r ibut ed 26 per cent 3 .The inabilit y of t he far m er s t o r epay t heir loans com pels t hem t o com m it suicide. Figur e 1 : I nde x of Fa r m e r s Suicide in I ndia since 1 9 9 5 180 170 168 Index value 160 150 149 140 128 155 160 159 153 127 100 Sou r ce: Moh an t y , S. S ( 2 0 0 8 ) ; Th e Peop le’s Ver d ict , 4 20 06 20 05 20 04 Year Trend of Index value of Farmers' Suicide th 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 100 Ci v i l So ci e t y Re v i e w o f t h e NCMP, P- 2 4 , Ther e has been a consist ent decline in t he gr ow t h of agr icult ur e sect or since 1990- 91 and gr ow t h of t his sect or has alw ay s r em ained below t he gr ow t h r at e of non- agr icult ur e sect or . Fr om 1980- 81 t o 1990- 91, t he annual av er age gr ow t h r at e of agr icult ur e and allied act iv it ies w as 3.5 per cent w hich got r educed t o 2.5 per cent dur ing t he per iod of 1997- 98 t o 2006- 07. I ncr eased gap bet w een t he annual av er age gr ow t h r at es of agr icult ur e sect or and t hat of econom y as a w hole has been obser ved since 1951- 52. This gap only w idened dur ing t he per iod 1997- 98 t o 2006- 07 ( Graph- 2) . Fig u r e 2 . Av e r a g e GD P g r ow t h r a t e s of a g r icu lt u r e se ct or a n d e con om y a s a w h ole a t 1 9 9 9 - 0 0 pr ice s ( in pe r ce n t ) 7 6.6 6.5 Growth 6 rate 5.7 5.4 5.5 5 4.5 4 3.5 3.5 3.7 3.7 3.5 3 2.5 2.4 2.5 2.5 2 1951-52-196768 1968-69 to 1980-81 1981-82 to 1990-91 1991-92 to 1996-97 1997-98 to 2006-07 Total Economy Agriculture and Allied Activities Sou r ce: Eco n o m i c Su r v ey , 2 0 0 7 - 0 8 , Go v er n m en t o f I n d i a 29 BACKGROUNDNOTE The cont r ibut ion of agr icult ur e t o gr oss dom est ic pr oduct ( GDP) has also declined ov er t he years.. Cont ribut ion of agricult ure t o GDP declined from 22.9 percent in 1999- 00 t o 16.7 percent in 2006- 07 ( at cur r ent pr ices) ( t able- 2) . Ta ble- 2 : Con t r ibu t ion of Agr icu lt u r e t o GD P a t fa ct or cost Year Percent age Share of Agricult ure in GDP At Current At 1 9 9 9- 00 Prices Prices 1 9 9 9- 0 0 22. 9 22. 9 2 0 0 0- 0 1 21. 2 21. 8 2 0 0 1- 0 2 21. 1 22. 0 2 0 0 2- 0 3 18. 8 19. 4 2 0 0 3- 0 4 19. 0 19. 9 2 0 0 4- 0 5 17. 4 18. 5 2 0 0 5- 0 6 17. 0 17. 9 2 0 0 6- 0 7 16. 7 17. 0 Source: Cent ral St at ist ical Organizat ion ( CSO) , New Delhi, GoI The product ion of m aj or agricult ural crops in I ndia since 1950- 51 indicat es a dism al progress v is- à- v is t he needs of r ising populat ion ev en t hough it show s an incr easing t r end. Pr oduct ion of t ot al food grains grew m ore t han four t im es which was 50.83 m illion t onnes in 1950- 51 and reached at 216.1 m illion t onnes during 2006- 07 4 . The per capit a ( per day ) av ailabilit y of cer eals and pulses wit nessed a declining t rend since 1991. During 1991, per capit a availabilit y of cereals and pulses were 468.5 gram s and 41.6 gram s respect ively. This has furt her reduced t o 412.1 gram s and 32.5 gram s respect ively in 2006. When com pared t o t he sit uat ion in 1981, availabilit y of foodgrains in 2006 is m uch w orse w hich show s t he non- seriousness of t he governm ent in raising foodgrains t o feed m illions of populat ion in I ndia. ( Table- 3) Ta ble - 3 : Pe r ca pit a N e t a va ila bilit y of Ce r e a ls a n d Pu lse s ( Pe r da y in gr a m s) Year Cer eals Pulses Tot al Food Grains 1981 417.3 37. 5 454. 8 1991 468.5 41. 6 510. 1 1996 442.5 32. 7 475. 2 2001 386.2 30 416. 2 2006 412.1 32. 5 444. 6 Source: Econom ic Survey, 2007 - 08, Governm ent of I ndia Yet anot her, dism al pict ure is revealed if one looks at net availabilit y5 of per capit a foodgr ains per year in I ndia. During 1991, net availabilit y per capit a foodgrains per annum in I ndia was 186.2 kgs w hich got reduced t o 180.4 kgs in 2002. The per capit a decline w as around 6 kgs. This furt her declined t o 154.2 kgs during 2005. Wit hin t he period 2002 t o 2005, per capit a availabilit y of foodgrains sharply declined t o around 26 kgs per annum ( t able- 4) . BACKGROUNDNOTE 30 Ta ble - 4 : N e t Ava ila bilit y of Foodgr a in s ( pe r An n u m ) in I n dia ( k gs. Pe r ca pit a pe r ye a r ) Year Rice Wheat Ot her Tot al Gr am Pulses Per Capit a Cereals Cer eals Food grain available 1991 80.9 60 29.2 171 4.9 15.2 186.2 2001 69.5 49.6 20.5 141 2.9 10.9 151.9 2002 83.5 60.8 23.1 167.4 3.9 12.9 180.4 2003 66.2 65.8 17.1 149.1 3.1 10.6 159.7 2004 71.3 59.2 25.3 155.8 4.1 13.1 168.9 2005 ( P) 64.7 56.3 21.7 142.7 3.9 11.5 154.2 Source: Econom ic Survey, 2007- 08, Governm ent of I ndia Cr edit flow t o agr icult ur e sect or is an indispensable input for t he gr ow t h of t his sect or . Tim e and again, it has been ar gued t hat st r engt hening t he inst it ut ional flow of cr edit can r est or e t he present m isery of t his sect or. I t has also been said t hat governm ent has t o ensure cheap and t im ely flow of credit t o t he farm ers t o m ake agricult ure as an occupat ion viable and also t o ret ain confidence of far m ing com m unit y in t his sect or . A look at t he annual gr ow t h r at e of inst it ut ional flow of cr edit t o agr icult ur e sect or since 2002- 03 indicat es a disappoint ing sit uat ion. During 2006- 07 t he gr ow t h r at e w as only 13 per cent com par ed t o pr ev ious t w o y ear ’s gr ow t h of ar ound 44 per cent . ( Table- 5) . Ta b le- 5 : I n st it u t ion a l Cr e dit Flow t o Agr icu lt u r e Se ct or ( Rs. I n Crore) Tot al Flow of Credit t o Year Agricult ure sect or Gr ow t h r at e 1998- 99 36860 ---1999- 00 46268 25.52 2000- 01 52827 14.18 2001- 02 62045 17.45 2002- 03 69560 12.11 2003- 04 86981 25.04 2004- 05 125309 44.06 2005- 06 180486 44.03 2006- 07 203297 12.64 2007- 0 8 * 137760 - 32.24 Source: Econom ic Survey, 2007 - 08, Governm ent of I ndia, Not e: * Up t o Novem ber 2007 The r elat iv e neglect suffer ed by agr icult ur e sect or dur ing t he past decade is t est ified by it s st eadily declining share in t he count ry’s capit al form at ion. Since 1999- 00, t he share of agricult ure in gross capit al form at ion ( at 1999 prices) has rem ained in single digit s, barring t he year 200102. This explains t he slackening of it s growt h m om ent um during t he past decade ( Table- 6) . Table - 6 : Gr oss Ca pit a l For m a t ion ( GCF) in Agr icult ur e ( a t 1 9 9 9 - 0 0 Pr ice s) Year GCF GCF in Share of GDP GCF/ GDP in Tot al Agricult ure Agricult ure Agricult ure Agricult ure ( % ) in GCF (% ) 1999- 0 0 506244 43473 8.59 409660 10. 61 2000- 0 1 488658 39027 7.99 40717 6 9.58 2001- 0 2 474448 48215 10.16 433475 11. 12 2002- 0 3 555287 46823 8.43 398206 11. 76 2003- 0 4 665625 44833 6.74 441360 10. 16 2004- 0 5 795642 49108 6.17 441183 11. 13 2005- 0 6 950102 54905 5.78 468013 11. 73 2006- 0 7 1053323 60762 5.77 485937 12. 50 Source: Econom ic Survey, 2007- 08, Governm ent of I ndia, Not e: 31 i BACKGROUNDNOTE Bot h Public and privat e invest m ent in agricult ure and allied sect ors during init ial four years of Tent h Five Year Plan w as 2.3 per cent of GDP. Out of t his, public invest m ent w as only 0.4 per cent and r est w as car r ied out by t he pr iv at e play er s. I t has been point ed t hat r educt ion in public invest m ent in agricult ure is prim arily responsible for t he decline in t he privat e invest m ent in t his sect or. During init ial year of Tent h Five Year Plan i.e. 2002- 03, privat e invest m ent in agricult ure w as 2.1 per cent of GDP w hich r educed t o 1.8 per cent in 2005- 06 because of t he fall in public inv est m ent in t his sect or dur ing t he sam e per iod. As t her e is a st r ong posit iv e cor r elat ion bet w een public and pr ivat e invest m ent in agr icult ur e, incr eased pr ivat e invest m ent w ill follow only if t here is an increase in public invest m ent ( Table- 7) . Ta ble - 7 : Pu blic a n d Pr iva t e I n ve st m e n t in Agr icu lt u r e a n d Allie d Se ct or s a n d it s Sh a r e in Tot a l GD P a t M a r k e t Pr ice s ( 1 9 9 9 - 0 0 Pr ice s) Share of invest m ent Year from GDP ( in % ) Public Privat e Tot al 2002 - 0 3 0.4 2.1 2.5 2003 - 0 4 0.4 1.8 2.2 2 004 - 0 5 0.4 1.8 2.2 2005 - 0 6 0.5 1.8 2.3 2002 - 03 t o 2005 - 0 6 0.4 1.9 2.3 Source : Cent ral St at ist ical Organisat ion, New Delhi, GOI Dur ing 1990- 91, shar e of im por t s in t he agr icult ur al com m odit ies in t ot al nat ional im por t s const it ut ed 2. 79 per cent and t hat of ex por t w as 18. 49 per cent . I n fact in t he subsequent y ear s, im port of agricult ural com m odit ies sharply increased t o 8.17 percent and share of export rem ains alm ost sam e during 1998- 99. There aft er share of bot h t he im port s and export s of agricult ural com m odit ies st art ed declining. ( Graph- 3) % share from Total Imports and Exports Fig u r e 3 : I m p o r t s a n d Ex p o r t s o f Ag r icu lt u r e Co m m o d it ie s v is- à - v is To t a l N a t io n a l I m por t s/ Ex por t s du r in g 1 9 9 0 - 9 1 t o 2 0 0 5 - 0 6 22 18.49 18.25 18 12.7 14 11.2 10.95 10 8.17 6.12 6 4.59 2.79 3.33 2 1990-91 1998-99 2003-04 2004-05 2005-06 %age of Agriculture Imports in Total National Imports %age of Agriculture Exports in Total National Exports So u r ce: D GCI & S, Mi n i st r y o f Co m m er ce, Ko l k at a BACKGROUNDNOTE 32 The dev elopm ent of our count r y is int r icat ely t ied t o t he gr ow t h of agr icult ur e and it s gr ow t h, t her efor e, m ust be at t he cor e of our dev elopm ent agenda. Any for m of lax it y t ow ar ds t his sect or w ould event ually lead t o im balances in ot her m acro econom ic variables, som et hing w hich has been exper ienced in t he I ndian econom y dur ing t he last few year s. Given t he above sit uat ion, it is im por t ant t o devise st r at egies aim ed at pr om ot ing t he gr ow t h of t he sect or on a m or e sust ainable basis. St udies hav e been car r ied out by em inent scholar s in t his field and t hey hav e suggest ed v ar ious st r at egies t o be adopt ed by t he gov er nm ent t o deal w it h t he present crisis in t his sect or. The root of t he problem lies in t he priorit ies given t o t his sect or in budget ar y spending ov er t he t im e. Let us discuss t he t r end of budget ar y inv est m ent s in this sector. I I . Cent ral Governm ent ’s Allocat ion and Spending in Agricult ure Sect or Shar e of plan inv est m ent ( bot h Cent er and St at es/ UTs) in agr icult ur e sect or has been declining since 1985. Decline in t he share of invest m ent in agricult ure show s t hat less priorit y has been accorded t o t his sect or. During Sevent h Five Year Plan, t he share of plan invest m ent in agricult ure and allied act iv it ies w as 5.8 per cent w hich r educed t o 3.7 per cent in r ecent ly pr oposed Elev ent h Five year Plan. This show s a declining t r end in plan invest m ent pr ior it y of t he gover nm ent . ( Gr aph- 4) Fig u r e 4 : Pe r ce n t a g e D ist r ib u t ion of Pla n Alloca t ion s in Ag r icu lt u r e a n d a llie d a ct iv it ie s sin ce se v e n t h f iv e y e a r p la n Share of Plan Investment 6.5 6 5.8 5.8 5.9 5.5 5.2 4.9 5 4.5 3.9 4 3.7 3.5 3 VII Plan (198590) Annual Plan (199091) Annual Plan (199192) VIII Plan (199297) IX Plan (199702) X Plan (200207) XI Plan (200712) So u r ce: Eco n o m i c Su r v ey , 2 0 0 7 - 0 8 , Go v er n m en t o f I n d i a Annual gr ow t h of over all cent r al plan allocat ion incr eased t o 21.04 per cent in 2008- 09, fr om 19.76 percent of 1993- 94. However, it has been observed a declining t rend has been observed in plan invest m ent in agricult ure since 1991- 92. During 1992- 93, share of Cent ral governm ent ’s plan inv est m ent in agr icult ur e and allied sect or s w as 9.59 per cent and got r educed t o 6.91 percent in 1999- 00 and furt her t o 5.57 percent in recent budget est im at es. Sim ilar t rend has also been obser v ed in case of annual gr ow t h of cent r al plan inv est m ent in agr icult ur e sect or since 1991- 92. The annual gr ow t h w as 38 per cent dur ing 1991- 92 and r eached at 18 per cent in 2008- 09 budget est im at es. ( Table- 8) 33 BACKGROUNDNOTE Table - 8 : Ce n t r a l Pla n I n ve st m e n t Pr ior it y for Agr icu lt u r e a n d Allie d Act ivit ie s Year Annua l Gr ow t h of Ce n t r a l Pla n Alloca t ion 1991- 92 1992- 93 1993- 94 1999- 00 2007- 08 RE 2008- 09 BE - 2.29 15.68 19.76 1 1 .7 0 19.56 21.04 Sh a r e of Ce n t r a l Pla n Alloca t ion for Agr icult ur e a nd Allied Act ivit ies ( in % ) 9.56 9.59 8.47 6 .9 1 5.69 5.57 An n u a l Gr ow t h of Pla n a lloca t ion for Agr icu lt u r e a n d Allie d Act ivit ies 38 16 6 9 11 18 Source: Expendit ure Vol-I , Various years. Minist ry of Finance, GoI Though agr icult ur e sect or cont r ibut es ar ound one fift h t o t ot al GDP of t he econom y , t he shar e of budget ar y invest m ent in t his sect or has been ar ound 1 per cent of GDP since 2001- 02. I t is per t inent t o m ent ion her e t hat t his sect or pr ovides em ploym ent t o ar ound 2/ 3 rd of t he count r y ’s populat ion. Though t he share of cent ral governm ent ’s budget ary spending increased from around 6 percent t o 9 percent during t he period of 1999- 00 t o 2008- 09,m uch has t o be done on budget ary fr ont in or der t o r ev er se t he pr esent cr isis of agr icult ur e sect or . ( Table- 9) Ta b le- 9 : Tr e n d of Ce n t r a l Gov e r n m e n t Alloca t ion in ( in Rs. Cr or e ) Year Rev enue Capit al Loan Tot al Account * Account Account Agricult ure ** and Allied Act ivit ies 1 1999- 0 0 RE 2000- 0 1 RE 2001- 0 2 RE 2002- 0 3 RE 2003- 0 4 RE 2004- 0 5 RE 2005- 0 6 RE 2006- 0 7 RE 2007- 0 8 RE 2008- 0 9 BE Agr icu lt u r e a n d Allie d Act iv it ie s 6 Tot al Ex pendit ur e on Agr icult ur e and Allied Act ivit ies As % of GDP at Market Prices 7 17103.5 5.63 0.88 150.47 19505.37 5.81 0.93 50.19 220.86 25634.21 7.03 1.12 31198.32 - 323.69 205.74 31080.37 7.69 1.26 32882.41 66.11 85.82 33034.34 6.97 1.19 36127.98 78.75 100.09 36306.82 7.18 1.16 36490.86 47.75 102.55 36641.16 7.20 1.02 45439.8 73.35 60.49 45573.64 7.84 1.10 61994.49 374.48 73.01 62441.98 8.80 1.33 67835.49 709.37 68 68612.86 9.14 1.29 2 3 4 5= 2+ 3+ 4 16624.84 223.89 254.77 19306.81 48.09 25363.16 Tot al Expendit ure on Agr icult ur e and Allied Act ivit ies As % of Tot al Cent ral Gover nm ent Ex pendit ur e Source: Expendit ure Budget Vol - I , Var ious Year s, Gover nm ent of I ndia Not e: * Ex cludes Gr ant s t o St at es and Union Territ ories ( UTs) * * excludes loans advances t o t he st at es and UT governm ent s BACKGROUNDNOTE 34 As per t he adm inist r at iv e classificat ion of t he budget , Minist r y of Agr icult ur e is t he nodal agency for im plem ent ing Cent ral Governm ent ’s schem es and program m es for overall developm ent of agr icult ur e. I n fact , look ing at t he budget ar y flow t o t he Minist r y of Agr icult ur e dur ing t he per iod 1999- 00 t ill dat e gives a dism al pict ure bot h in t erm s of rat io t o GDP and t ot al Cent ral Governm ent ’s expendit ure. Share of expendit ure of t he Minist ry in GDP and t ot al expendit ure was 0.39 and 2.56 per cent r espect iv ely dur ing 1999- 00, and in t he r ecent budget i.e. 2008- 09, it got r educed t o 0.21 and 1.50 per cent r espect ively. ( Table- 10) Ta ble - 1 0 : Sh a r e of in v e st m e n t by M in ist r y of Agr icu lt u r e fr om Ce n t r a l gov e r n m e n t ’s t ot a l e x p e n d it u r e a n d GD P Year As Pr opor t ion of GDP at MP As Proport ion of Cent ral Governm ent Expendit ure A&C AR & E AH&D Tot al A&C AR &E AH&D Tot al Minist ry of Minist ry of Agricult ure Agr icult ur e 1 9 9 9- 00 RE 0.31 0.07 0.02 0.39 2.03 0.44 0.10 2.57 2 0 0 0- 01 RE 0.09 0.06 0.01 0.16 0.54 0.39 0.08 1.01 2 0 0 1- 02 RE 0.10 0.06 0.01 0.17 0.62 0.38 0.08 1.08 2 0 0 2- 03 RE 0.08 0.06 0.01 0.15 0.50 0.35 0.07 0.92 2 0 0 3- 04 RE 0.09 0.05 0.01 0.16 0.53 0.32 0.07 0.92 2 0 0 4- 05 RE 0.10 0.05 0.02 0.18 0.66 0.34 0.12 1.12 2 0 0 5- 06 RE 0.12 0.05 0.02 0.19 0.84 0.38 0.13 1.35 2 0 0 6- 07 RE 0.13 0.05 0.02 0.20 0.90 0.39 0.16 1.45 2 0 0 7- 08 RE 0.14 0.05 0.02 0.21 0.95 0.33 0.12 1.41 2 0 0 8- 09 BE 0.14 0.05 0.02 0.21 1.00 0.36 0.14 1.50 Source: Expendit ure Budget Volum e- I Various Years, Governm ent of I ndia Not e: A&C- Agr icult ur e and Cooper at ion; AR&C- Agr icult ur e Resear ch and Educat ion; AH&D- Anim al Husbandry and Dairying Any expendit ur e m ade under capit al account is usually m eant for asset cr eat ion. I t is obser ved t hat , ex pendit ur e under capit al heads of t he Minist r y of Agr icult ur e r educed dr ast ically since 2001- 02 and reached 2.62 percent in 2008- 09 ( w hich w as 10.36 % during 2001- 02) out of t he t ot al ex pendit ur e. Cr eat ion of capit al asset s in agr icult ur e w ill fur t her pr om ot e t he gr ow t h pr ocess of agr icult ur e sect or . But a decline in t he shar e under capit al account w ill fur t her aggr av at e t he crisis in t his sect or. ( Table- 11) Ta ble - 1 1 : Sh a r e o f Re v e n u e a n d Ca p it a l e x p e n d it u r e u n d e r M in ist r y of Ag r icu lt u r e Ye a r Sh a r e of Sh a r e of Ex p e n d it u r e Ex p e n d it u r e u n d e r u n d e r Ca p it a l Re v e n u e Accou n t Acco u n t b y M in ist r y b y M in ist r y of of Ag r icu lt u r e Ag r icu lt u r e 2001- 02 RE 89.64 10.36 2002- 03 RE 94.21 5.79 2003- 04 RE 93.08 6.92 2004- 05 RE 93.43 6.57 2005- 06 RE 95.92 4.08 2006- 07 RE 97.04 2.96 2007- 08 RE 96.93 3.07 2008- 09 BE 97.38 2.62 Sour ce: Ex pendit ur e Budget Volum e-I , Var ious y ear s, GOI Pu blic I n v e st m e n t on I r r iga t ion a n d Flood Con t r ol Before highlight ing t he sit uat ion of public invest m ent on irrigat ion sect or, let ’s have a brief look int o t he pr esent st at us of ir r igat ion facilit ies in I ndia. The pr opor t ion of ir r igat ed ar ea t o net ar ea sow n for all cat egor ies of holdings w as 38.9 per cent in 2000- 01 as com par ed t o 37.5 per cent in 35 BACKGROUNDNOTE 1995- 96, i.e., an incr ease of about 1.4 per cent w as not iced. This indicat es im pr oved ir r igat ion facilit ies dur ing t he per iod bet w een t he t w o agr icult ur e censuses. The per cent age of ir r igat ed area t o net sown area was t he m axim um for t he m arginal holdings which increased from 49.9 percent during 1995- 96 t o 51.0 percent during 2000 01. ( Table- 12) Yet , t here is a need t o boost t he effort s t o increase t he area under irrigat ion t o avoid any nat ural disast er like drought in agricult ure sect or. Ta ble - 1 2 : D ist r ib u t ion of N e t I r r ig a t e d Ar e a a n d N e t Ar e a Sow n in I n d ia b y M a j o r S i z e Cl a s s e s o f H o l d i n g s f o r A l l S o ci a l Gr o u p s d u r i n g A g r i cu l t u r e Ce n s u s 1 9 9 5 - 9 6 a n d 2 0 0 0 - 0 1 . ( A r e a i n ' 0 0 0 h a . ) Pe r ce n t a g e o f N e t I r r iga t e d Ar e a N e t Sow n Ar e a M a j or siz e I r r iga t e d Ar e a t o N e t Ar e a Sow n cla sse s 1 9 9 5 -9 6 2 0 0 0 -01 1 9 9 5 -9 6 2 0 0 0- 01 1 9 9 5- 96 2 0 0 0 -0 1 Mar g i n al 12280 12383 24599 24259 49.92 51.04 Sm al l 10576 10888 27389 27845 38.61 39.10 Sem i- m ediu m 12401 11928 34360 32594 36.09 36.60 Med i u m 12208 11542 356 54 32006 34.24 36.06 La r g e 5490 4870 19059 15936 28.81 30.56 A l l S i z e Cl a s s e s 52955 51611 141062 132640 37.54 38.91 S o u r c e ; A g r i c u l t u r e Ce n s u s , 2 0 0 1 ; Go v e r n m e n t o f I n d i a . Securing year round irrigat ion facilit ies will reduce t he risk of drought while ensuring self sufficiency in foodgrains available t o m eet t he dom est ic need. I n t his cont ext , it is pert inent t o give im port ance t o t his sect or. The budget ary provisions of Cent ral Governm ent for irrigat ion and flood cont rol reveal a dist urbing t rend since 2000- 01. Share of irrigat ion and flood cont rol in revenue and ot her t han r ev enue account s of t he Cent r al Gov er nm ent ’s budget and count r y ’s GDP const it ut ed only 0.12 and 0.02 percent respect ively during 2000- 01. Furt her it reduced t o 0.5 and 0.01 percent from t ot al expendit ure of t he Cent ral Governm ent and GDP respect ively. ( Table- 13) . Declining share of food subsidy is anot her area of concern in I ndia. During 2002- 03 Rs 24176 crores was earm arked for food subsidy which reduced t o Rs. 24014 Cr in 2006- 07. I t is est im at ed t o be Rs. 32667 Cr dur ing cur r ent budget . Since 2002- 03, t he annual gr ow t h r at es w er e not so encour aging. Food subsidy as per cent age of count r y’s GDP w as 1.07 per cent dur ing 2002- 03 w hich got r educed t o 0.71 per cent dur ing 2008- 09. I n absolut e t er m am ount of food subsidy incr eased but as per cent age of GDP it show s a decline. This is a m at t er of concer n food secur it y of t he poor and t he m ar ginalized sect ion of t he populat ion is concer ned. ( Table- 14) Ta b le - 1 3 : T r e n d o f Ce n t r a l Go v e r n m e n t Al l o ca t i o n i n Co n t r o l ( R s. I n Cr o r e ) Year Revenue Ca p i t a l Loa n Total on Account Account Account I rrigation * * * and Flood Co n t r o l ( FC) 2000 RE 2001 RE 2002 RE 2003 RE 2004 RE 2005 RE 2006 RE 2007 RE 2008 BE 1 -01 I r r iga t ion a nd Flood 2 3 4 5= 2+ 3+ 4 Total a lloca t ion under I rrigation and FC as % of total exp enditure 6 Total a lloca t ion under I rrigation and FC as % of GDP 375.16 9.00 22.00 406.16 0.12 0.02 409.94 11.00 32.00 452.94 0.12 0.02 330.64 10.13 27.00 367.77 0.09 0.01 349.58 6.32 15.54 371.44 0.08 0.01 312.47 11.18 15.80 339.45 0.07 0.01 376.91 14.74 15.80 407.45 0.08 0.01 382.92 7.74 15.80 406.46 0.07 0.01 381.26 3.36 0.00 384.62 0.05 0.01 540.92 25.88 0.00 566.80 0.08 0.01 7 -02 -03 -04 -05 -06 -07 -08 -09 S o u r c e : E x p e n d i t u r e V o l- I , G o v e r n m e n t o f I n d i a , V a r i o u s Y e a r s Not e: * Ex c l u d e s Gr a n t s t o S t a t e s a n d U n i o n T e r r i t o r i e s ( U T s ) * * L o a n s f o r M a j o r a n d M e d i u m I r r i g a t i o n ( U n d e r S p e c i a l A r e a Pr o g r a m m e ) BACKGROUNDNOTE 36 Ta b le- 1 4 : Gr ow t h of Food Su b sid y in I n d ia ( Ot h e r t h a n Su g a r ) a n d it s sh a r e f r om GD P Year 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 2007 - 08 RE 2008 - 09 BE * Am ount of Food Subsidy ( Rs. I n Cr ) 24176 25181 25798 23077 24014 31456 32667 Annual Gr ow t h 38.16 4.16 2.45 - 10.55 4.06 30.99 3.85 Food Subsidy as % of GDP at Fact or Cost Com bined Tax r ev enue as % of GDP 1.07 0.99 0.90 0.70 0.63 0.73 0.71 15.75 16.31 17.18 18.17 18.45 0.00 0.00 Sour ce: Ex pendit ur e Vol - I , Var ious y ear s, Minist r y of Finance, Gov e r nm ent of I ndia ( GOI ) ; and I ndian Public Finance St at ist ics, 2006- 07, Minist r y of Finance, DEA, Econom ic Div ision; GOI Not e: * GDP for t he y ear 2008 - 09 calculat ed based on t he annual av er age gr ow t h r at e of pr ev ious four y ear s. Concerns w it h t he D e b t W a iv e r Sch e m e for Fa r m e r s Th e m ost sign ifican t an n ou n cem en t of Un ion Bu dget 2 0 0 8 - 0 9 w as t h e debt - w aiv er sch em e for far m er s. I n h is bu dget speech , t h e Fin an ce Min ist er an n ou n ced a debt w aiv er sch em e w or t h Rs. 6 0 , 0 0 0 cr or e, u n der w h ich all agr icu lt u r al loan s disbu r sed by sch edu led com m er cial ban k s, r egion al r u r al ban k s an d cooper at iv e cr edit in st it u t ion s u p t o Mar ch 3 1 , 2 0 0 7 an d ov er du e as on Decem ber 3 1 , 2 0 0 7 w ou ld be cov er ed. For m ar ginal far m er s ( holding up t o 1 hect ar e) and sm all far m er s ( holdings up t o 1 t o 2 hect ar e) , t her e w ould be a com plet e w aiv er of all loan s t h at w er e ov er du e on Decem ber 3 1 , 2 0 0 7 an d w h ich r em ain ed u n paid u n t il Febr u ar y 2 9 , 2 0 0 8 . I n r espect of ot h er f ar m er s, t h er e w ou ld be a on e t im e set t lem en t ( OTS) sch em e f or all loans t hat w er e ov er due on Decem ber 31, 2007 and w hich r em ained unpaid unt il Febr uar y 29, 2008. Under t h e OTS, a r ebat e of 2 5 per cen t w ou ld be giv en again st pay m en t of t h e balan ce of 7 5 per cen t . The schem e w as init ially ex pect ed t o benefit 3 cr or e sm all and m edium far m er s w it h loans w or t h Rs 5 0 , 0 0 0 cr or e an d 1 cr or e m or e far m er s fr om a 2 5 per cen t r ebat e again st t h e on e- t im e set t lem en t of loan s, w h ich w ould cost an addit ional Rs 1 0 , 0 0 0 cr or e. The schem e has now been ex panded and it is est im at ed t hat it w ould w aiv e far m loans t o t he ex t ent of Rs 7 1 , 6 8 0 cr or e, near ly 2 0 per cent m or e t han t he am ount init ially pr ov ision ed, w it h a plan t o cov er ar ou n d 4 . 2 cr or e ben eficiar ies. As it t u r n s ou t , t h e n u m ber of sm all an d m ar gin al f ar m er s cov er ed is ex pect ed t o be 3 . 7 cr or e, w h ile t h e n u m ber of ot h er f ar m er s is est im at ed t o be about ar ound 6 0 lak h. This effor t of t he gov er nm ent t o m inim ize t he st r ess of far m er s is indeed a w elcom e st ep. How ev er , t he schem e has cer t ain obv ious lim it at ions. Fir st ly , it does not addr ess t he issue of debt ow ed by far m er s t o m on ey len der s w h ich accou n t s for alm ost h alf of t ot al far m debt . I t is per t in en t t o n ot e h er e t h at 4 8 . 6 per cen t of far m er h ou seh olds w er e r epor t ed t o be in debt ed an d t h e lar gest sou r ces of loan s ( in t er m s of per cen t age of ou t st an din g loan am ou n t ) w er e f ou n d t o be ban k s ( 3 6 per cen t ) , f ollow ed by m on ey len der s (26 percent)[ Sit u at ion Assessm en t Su r v ey of Far m er s; I n debt edn ess of Far m er Hou seh olds; NSS Repor t No. 498( 59/ 33/ 1) , MOSPI , GoI , 2005] . Hen ce, t h e debt w aiv er sch em e f ails t o addr ess t h e cr isis of f ar m er s w h o h av e t ak en loan s f r om t h e m on ey len der s. Th e gov er n m en t h as also pr oj ect ed t h at t h e im plem en t at ion of t h e sch em e w ou ld r equ ir e lot s of r esou r ces an d t h e Pr im e Min ist er h as t alk ed abou t t h e n eed t o pr iv at ize pu blic en t er pr ises t o fin an ce t h e sch em e. Som e pr om in en t pr ogr essiv e econ om ist s h av e ex pr essed t h eir con cer n s ov er t h e n at u r e of f in an cin g of t h e schem e. Accor ding t o t hem , t he gov er nm ent has t o ask bank s t o subst it ut e gov er nm ent bonds for agr icult ur al debt in t h eir por t folios. Th e gov er n m en t does n ot in t en d t o u se an y fiscal r esou r ces for t h is pu r pose. Th e only t hing t hat t he gov er nm ent is obliged t o do is t o m eet t he int er est pay m ent obligat ion on t hese bonds w henev er t hey fall due. How ev er , it is t o be not ed t hat St at es w ould hav e t o find fiscal r esour ces t o finance t h e sch em e, giv en t h e st r ict con t r ol of t h e Cen t r e ov er t h eir bor r ow in g. Wh en t h e issu e w as r aised in sev er al qu ar t er s abou t t h e absen ce of bu dget ar y pr ov ision f or t h e debt w aiv er sch em e, t h e gov er n m en t h as com e u p w it h an am ou n t of Rs. 1 0 , 0 0 0 cr or e in t h e t h ir d bat ch of su pplem en t ar y dem an d for gr an t s. Th e cen t r al gov er n m en t n eeds t o t ak e car e of all t h ese con cer n s w h ile im plem en t in g t h is sch em e. Giv en t h e sev er it y of agr ar ian cr isis at t h is j u n ct u r e, t h e debt w aiv er sch em e is on ly a sh or t t er m solu t ion t o t h e pr oblem , bu t in t h e lon g r u n t h e cr isis cou ld aggr av at e again becau se of t h e ad h oc n at u r e of t h is policy m easu r e. I n or der t o br in g su st ain abilit y in agr icu lt u r e, t h e gov er n m en t n eeds t o addr ess ot h er r eason s sim u lt an eou sly , besides im plem en t in g t h e debt w aiv er sch em e. Th e issu e of f ar m er s’ su icides, w h ich h as been in pu blic discou r se f or alm ost t h e last sev en y ear s, h as n ot been dealt w it h enough sensit iv it y by t he UPA gov er nm ent . The delay ed st ar t of t he schem e, j ust on t he y ear befor e t he Gener al Elect ions and St at e Elect ions, has ev ok ed ser ious doubt s about t he int egr it y of t he UPA t o ov er com e t h e acu t e agr ar ian cr isis. I t is im per at iv e n ow t h at t h e cen t r al gov er n m en t im plem en t s t h is sch em e v er y w ell. 37 BACKGROUNDNOTE I I I . Policy Agenda for t he Fut ure Looking at t he crisis t hat has engulfed t his sect or, it is vit al for I ndian planners and policy m akers t o adopt a m ult i- pr onged st r at egy w it h r egar d t o t he agr icult ur al sect or . I n t he fir st place, t o ensure sust ainable livelihoods for t he m illions, governm ent has t o ensure t hat adequat e resources ar e pr ov ided t o t his r esour ce- st ar v ed sect or in or der t o gat her t he necessar y gr ow t h m om ent um . Subsequent ly, sufficient r esour ces have t o be ear m ar ked t o ensur e low and cheap far m loans, adequat e infrast ruct ure for m arket linkages and godown facilit ies and t o st rengt hen t he public dist r ibut ion sy st em ( PDS) t o r each t he m asses. I t is wort hwhile t o not e here t hat Nat ional Com m on Minim um Program m e ( NCMP) had m ade sev er al pr om ises t o br ing a st r at egic change in agr icult ur e and r ur al dev elopm ent including announcem ent s lik e doubling t he r ur al cr edit facilit ies, significant public inv est m ent in t he agricult ural sect or, m assive expansion of irrigat ion facilit ies and above all universal & year round f ood secu r it y et c. I t is im por t ant t o m ent ion her e t hat incr eased food subsidy w ill ensur e t he food secur it y t o t he poor and t he m arginalised m aking it available t hrough PDS. Decline in t he budget ary allocat ion for food subsidy is usually j ust ified by t he rat ionale t hat it w ould m ake t he syst em ‘m arket driven’. I n a count ry like ours, where m illions of people are under t he so called official povert y line is it really possible t hat t hey would be able t o fill t heir hungry st om ach in a com pet it ive m arket fram ework? The answer is obviously ‘no’. Hence, t he governm ent has t o ensure t heir food securit y in t erm s of raising food subsidy in t he com ing budget . Aft er 1991, t he lending pat t ern of com m ercial banks, including nat ionalised banks, t o agricult ure sect or has changed dr ast ically . Loan w as not easily av ailable and t he int er est w as also v er y high for t he far m ing com m unit y . This has for ced t he far m er s t o r ely on m oney lender s and t hus pushed up t he cost of agricult ure. Prom ises of NCMP in t his regard seem t o have rem ained only on paper. The prom ises w ere revival of rural co- operat ive credit syst em , doubling t he flow of cr edit w it hin t hr ee y ear s and incr ease cr edit cov er age for sm all and m ar ginal far m er s et c. Governm ent should seriously t hink of supplying farm credit at a low rat e of int erest t o farm ers t o keep the prom ises m ade in NCMP. I t has been well exam ined in t he earlier paragraphs how public invest m ent in agricult ure sect or has declined over t he t im e. Hence, governm ent should increase invest m ent in t he farm sect or. I nvest m ent in agricult ure and it s allied sect ors, including irrigat ion, and farm research, should also be increased significant ly. Apart from t his, t he developm ent and sust ainabilit y of agricult ure in I ndia depends on t he developm ent of basic infrast ruct ures like rural road connect ivit y, m arket ing and st or age facilit ies. I n t his r egar d, gover nm ent should have clear budget ar y pr ovisions t o ensure such facilit ies in t he com ing budget s. I n t he com ing year s, w hile for m ulat ing budget s for agr icult ur e sect or sever al concer ns need t o be addr essed, w hich ar e as given below : • I ncr ease t he shar e of budget ar y inv est m ent in agr icult ur e and it s allied sect or in gener al and share of Cent ral Governm ent ’s plan expendit ure in agricult ure in part icular. • Scale up t he flow of inst it ut ional cr edit t o t he far m er s w it h a low er r at e of int er est . Ensur e easy and cheap loan facilit ies, especially t o t he sm all and m ar ginal far m er s as w ell as t o t he shar e cr opper s. • Maxim um benefit s of loan waiver schem e should reach t o t he t arget ed beneficiaries wit hout m uch delay and adm inist rat ive com plexit ies. • Clear and t im e bound approach for providing year round irrigat ion facilit ies t o t he cropped ar ea and for t his specific out lay should be ear m ar ked in t he budget . • Food secur it y for t he poor w ill be ensur ed if t he public dist r ibut ion syst em funct ions efficient ly. Hence, special budget ary provisions should be m ade t o st rengt hen t he exist ing st r uct ur e of PDS t o br ing efficiency in t he sy st em . BACKGROUNDNOTE 38 • Rural elect rificat ion should be given a high priorit y as t he prim e m over for agricult ural developm ent . The qualit y and availabilit y of elect ricit y supply should be im proved and t he dem and of t he agr icult ur e sect or should be m et adequat ely in a r eliable and cost effect ive m anner . For t his budget 2009- 10 should r eflect a line of confir m at ion t ow ar ds ensuring t his. • Ext ensive provisions be m ade for developing appropriat e m arket linkages eit her t hrough t he dir ect int er v ent ion by t he cent r al gov er nm ent or t hr ough gr ant s t o st at e gov er nm ent s. • Massiv e r est r uct ur ing of t he ex ist ing cold st or ages as w ell as cr eat ion of new cold st or ages need t o be est ablished t o ensur e fair pr ices t o agr icult ur e pr oduce • Special budget ary provisions for ensuring qualit y agricult ural ext ension services t o t he farm ers in t erm s of recruit ing sufficient hum an resources as well as provision of ot her facilit ies. En dn ot e s : 1 Econom ic Sur v ey , 2007- 08, Gov er nm ent of I ndia 2 Hou seh old Ow n er sh ip Holdin gs in I n dia, 2 0 0 3 ; Repor t No 4 9 1 ( 5 9 / 1 8 . 1 / 4 ) Nat ion al Sam ple Su r v ey ( NSS) , Minist r y of St at ist ics and Pr ogr am m e I m plem ent at ion ( MOSPI ) , gov er nm ent of I ndia ( GoI ) , 2006. 3 Sit u at ion Assessm en t Su r v ey of Far m er s; I n debt edn ess of Far m er Hou seh olds; NSS Repor t No. 4 9 8 ( 5 9 / 3 3 / 1 ) , MOSPI , GoI , 2 0 0 5 4 Econom ic Sur v ey , Gov er nm ent of I ndia, 2007- 08 5 Net av ailabilit y of f ood gr ain s= Net f ood pr odu ct ion + Net I m por t + Net addit ion in st ock s 6 I t is per t in en t t o n ot e h er e t h at t h e r isin g t r en d in GCF in agr icu lt u r e as per cen t age of agr icu lt u r al GDP is, in som e sen se m isleadin g. Th e declin in g sh ar e of agr icu lt u r e in t h e GDP is accou n t able f or su ch a t r en d. Tr en ds in t h e sh ar e of agr icu lt u r e GCF in ov er all GCF pr ov ide u s t h e gen u in e pict u r e of t h e sit uat ion. 39 BACKGROUNDNOTE H ea lt h: Som e Crit ica l Ga ps in Policy a nd I m ple m e n t a t ion I n d r a n il The t enur e of t he UPA gover nm ent , w hich cam e w it h m uch ent husiasm and lot s of pr om ises for social sect or s in gener al and specifically healt h, is alm ost over . I n t he last year of t he UPA, w hen w e look back t o assess t he per for m ance of t his gover nm ent , w e find t hat t hings have har dly changed. Som e m ay say t hat five years ( 2004- 05 t o 2008- 09) is a really short t im e t o bring about a subst ant ial change. Ot her s m ay point out t o t he new init iat iv es and pr ogr am m es w hich are t here on paper. Even if one agrees t hat five years is a really short period t o bring about m aj or br eakt hr oughs, one m ay be int er est ed t o under st and t he br oad policy dir ect ion t hat t he UPA has adopt ed. Unfor t unat ely , t her e is no significant r ev er sal fr om t he neo- liber al dir ect ion t hat t he ear lier gov er nm ent s had follow ed. Mor e dist ur bing is t he fact t hat t her e ar e clear cut signals of det eriorat ion in out com e indicat ors reflect ing t he grim realit y persist ing in t he healt h sect or. On paper, t here are t alks about new init iat ives, policies and m easures and huge ent husiasm has been generat ed around t hem . The Nat ional Rural Healt h Mission ( NRHM) has been launched, Nat ional Urban Healt h Mission is on t he anvil, Swast hya Bim a Yoj ana ( Healt h I nsurance Schem e) has been launched, a new Nat ional Drug Policy is being form ulat ed but t he ground realit y has har dly changed. Ta ble 1 : I n t e r n a t ion a l Com pa r ison of Spe n din g Pa t t e r n a n d Ou t com e I n dica t or s Cou n t r y I ndia Sri Lanka Canada Unit ed Kingdom Spain Sout h Africa Cost a Rica Malay sia Cuba Pe r ca pit a h e a lt h e x pe ndit ur e $ 80 in 2004 $ 122 $ 2,792 in 2004 $ 1,989 $ 1,607 $ 652 $ 562 $ 345 $ 229 Pu blic h e a lt h ca r e as pe r ce n t a ge o f GD P 0.9 1.8 6.8 Pr iv a t e h e a lt h ca r e as pe r ce n t a ge o f GD P 4.2 1. 9 2.8 Life e x pe ct a n cy ( in ye a r s) U n d e rfive m or t a lit y pe r 1 0 0 0 63.7 72.5 79.3 93 19 7 6.2 5.4 3.6 4.9 2.1 6.2 1.4 2.2 5.1 2. 3 1.8 1.0 78.1 79.2 48.8 78 73 76.7 7 6 65 11 8 9 Source: UNDP Hum an Developm ent Report , 2004 I ndia has one of t he w orst healt h indices, even higher t han a num ber of com parable count ries in t he world. I t has t he world’s highest proport ion of m alnourished children and wom en. I t also has t he highest load of pr event able and com m unicable diseases. The healt h syst em in I ndia st ill rem ains t he m ost privat ized in t he world, digging peoples’ pocket heavily, causing indebt edness t o a gr eat ex t ent . ( Refer t o Table1.) Despit e t he com m it m ent of t he UPA t o st ep up public inv est m ent t o 2- 3 per cent of GDP, t her e has been no significant adv ancem ent com par ed t o t he pr ev ious gov er nm ent . Life ex pect ancy is subst ant ially low in com par ison t o count r ies w it h equivalent socio- econom ic condit ions; under- five m ort alit y is also abysm ally high. Healt h indicat ors for t he m ar ginalized sect ions of societ y - w om en, childr en, Scheduled Cast es and Scheduled Tribes, landless laborers, slum dw ellers, are far below t he nat ional average. The recent Nat ional Fam ily Healt h Survey ( NFHS) dat a clearly show s t he exist ence of st rong inequalit ies am ong incom e classes and cast e gr oups in t er m s of access t o r epr oduct iv e healt h ser v ices. BACKGROUNDNOTE 40 W om en’s H ealt h: Som e Concerns Wom en ’s poor h ealt h st at u s is in ex t r icably lin k ed t o t h eir social an d econ om ic in equ alit ies, w h ich r est r ict t h eir access t o an d con t r ol ov er r esou r ces. Low er st at u s in t h e f am ily an d lack of d ecision m ak in g pow er r egar din g ill h ealt h , ex pen dit u r e on h ealt h car e an d n on - av ailabilit y of h ealt h car e facilit ies pr ev en t t h em fr om seek in g m edical h elp. Th ou gh t h e n eo- n at al m or t alit y r at io is h igh er am on g m en ( f em ale t o m ale deat h r at es ar e 0 . 8 3 ) t h e sit u at ion r ev er ses in p ost - n at al an d su b seq u en t p er iod s w h er e f em ale t o m ale d eat h r at ios ar e significant ly higher t han unit y ( Sar oj ini, 2 0 0 6 ) . Ev en am on g w om en t h er e is sig n if ican t in eq u it y in access am on g d if f er en t in com e classes. I n t h e low est w ealt h q u in t ile 4 1 p er cen t p r eg n an t w om en d o n ot r eceiv e an t en at al car e, w h er e as alm ost ev er y pr egn an t w om an ( 9 7 . 4 per cen t ) fr om t h e h igh est in com e qu in t ile r eceiv es an t en at al car e. Half t h e p r eg n an t w om en in t h e p oor est in com e class d o n ot r eceiv e ir on f olic acid ( I FA) t ab let s an d on ly on e in t en of t h em t ak e I FA t ablet s or sy r u ps for fu ll n in et y day s ( NFHS I I I ) . Ov er all on ly 3 . 8 p er cen t p r eg n an t w om en r eceiv e an y in t est in al p ar asit e d r u g an d access t o it f or w om en in bet t er of f sect ion s ar e m u ch h igh er t h an t h ose in t h e low er st r at a ( NFHS I I I ) . Deliv er y of m ot h er f r om t h e poor est qu in t ile is 4 . 6 t im es less lik ely t o be at t en ded by a m edically t r ain ed per son t h an h er w ell of f cou n t er par t ( NFHS I I I ) . Mat er n al Mor t alit y Rat io is 3 0 1 per 1 0 0 , 0 0 0 liv e bir t h s ( SRS, 2 0 0 1 - 0 3 ) . I n back w ar d st at es, lik e Ut t ar Pr adesh, t he MMR is significant ly higher . I n I n d ia, p n eu m on ia an d an em ia con st it u t e t h e m aj or cau ses of d eat h in t h e 0 - 4 ag e g r ou p , an d t u b er cu losis of t h e lu n g s p ose a r isk in t h e 1 5 - 5 0 ag e g r ou p s. Th e ot h er cau ses of m or t alit y in clu d e br onchit is and ast hm a, gast r oent er it is, diseases of t he ner v ous sy st em and m at er nal m or t alit y . Th e diet ar y pat t er n in dicat es t h at in com par ison t o adu lt m en , w om en con su m e appr ox im at ely 1 , 0 0 0 few er calor ies per day , far below t h e Recom m en ded Diet ar y Allow an ce. Alm ost h alf of t h e gir ls in age 1 5 - 1 9 ar e under nour ished ( NFHS I I I ) . Mor e t h an a t h ir d ( 3 6 p er cen t ) of w om en h av e a BMI b elow 1 8 . 5 , in d icat in g a h ig h p r ev alen ce of n u t r it ion al deficien cy . Th e an aem ia pr ev alen ce lev els ar e m or e t h an t w o t im es h igh er am on g w om en t h an m en w it h alm ost h alf of t h em w it h m oder at e t o sev er e an aem ia ( NFHS I I I ) . Alt h ou g h b ot h m en an d w om en ar e eq u ally ex p osed t o com m u n icab le d iseases, t h er e ar e con cr et e ev id en ces t o sh ow t h at w om en su f f er f ar m or e t h an m en in t er m s of d ecision m ak in g an d access t o t r eat m ent and ser v ices. Appr ox im at ely , 1 5 per cen t of all w om en su f f er f r om m en t al illn esses again st 1 1 per cen t of all m en . Rig h t s of w om en , w h o h av e b een d iag n osed w it h m en t al p r ob lem s, ar e v iolat ed , b ased on m ed ical opin ion an d t h ey ar e cer t if ied an d f or cibly det ain ed. Th ey ar e den ied v ar iou s social, polit ical r igh t s in clu din g t h e r igh t t o v ot e, r igh t t o en t er in t o an y k in d of con t r act , cu st ody of ch ild. Violence against w om en and gir l childr en at t he household and com m unit y lev els has deep im pact s on t heir sur v iv al, dignit y , self- est eem , and ov er all healt h. Sex r at ios h av e w it n essed an alar m in g declin e f or ch ildr en in t h e 0 - 6 y ear s of age gr ou p an d st an ds at 9 2 7 gir ls f or 1 0 0 0 boy s. Sex select iv e abor t ion of f em ale f et u s is a m aj or ch allen ge an d accou n t f or appr ox im at ely 1 1 per cen t of u n saf e abor t ion s in I n dia. Gov er n m en t p r og r am s an d p olicies ar e also in sen sit iv e t o t h e n eed s of w om en , esp ecially p oor er w om en . Th e b u r d en of p op u lat ion st ab ilizat ion solely f alls on p oor w om en , as t h ey ar e b eliev ed t o “ pr oduce ir r esponsibly ” . Though t he gov er nm ent claim s t o focus ex t ensiv ely on w om en in r epr oduct iv e age gr ou p, m ost of t h em do n ot get pr oper an t e- n at al car e; ev en som e of t h e com m on r epr odu ct iv e h ealt h pr oblem s ar e sev er ely ign or ed in gov er n m en t pr ogr am an d policies. The er a of globalizat ion m ar k ed by unem ploy m ent , deplet ing w ages, r ising healt h car e cost s, hazar dous w or k ing and liv ing env ir onm ent has enor m ous im pact on w or k ing class in gener al, w om en specifically . 41 BACKGROUNDNOTE The UPA had prom ised t o st ep up public invest m ent on healt h by 2- 3 percent of GDP. This was a m aj or prom ise which helped it m obilize support from different progressive groups. I n t he follow ing sect ions, w e w ould lik e t o ident ify t he k ey issues concer ning t he pr ov ision of prim ary healt h care in I ndia. We have ident ified t hree crit ical policy gaps, w hich need t o be a d d r essed i m m ed i a t el y . Th ese a r e – st r en g t h en i n g p r i m a r y h ea l t h i n st i t u t i o n s w i t h a com pr ehensive view on necessar y infr ast r uct ur e, r equir ed hum an r esour ces, basic am enit ies and crit ical elem ent s like m edicine and equipm ent s; secondly, t he issue of financing universal healt h care point ing out t o t he level and qualit y of invest m ent m ade; t hirdly, an overall review of t he ongoing policy int er v ent ions. I : St rengt hening Prim ary H ealt h Care N e e d t o St e p- u p I n ve st m e n t on Ru r a l H e a lt h I n fr a st r u ct u r e Lack of pr oper prim ary healt h care infrast ruct ure in rural areas is one of t he m aj or im pedim ent s in t he provision of universal healt h care in I ndia. Prim ary healt h care infrast ruct ure has been developed as a t hree t ier syst em wit h Sub- Cent re, Prim ary Healt h Cent re ( PHC) and Com m unit y Healt h Cent re ( CHC) being t he t hree pillars of t he prim ary healt h care syst em . The progress of Sub- Cent er s, w hich is t he m ost per ipher al cont act point bet w een t he pr im ar y healt h car e sy st em and t he com m unit y, is a prerequisit e for t he overall progress of t he ent ire syst em . As on March, 2007, for 5, 111 people t here exist s one Sub Cent re, whereas t here is one PHC for 33,191 people and 1.83 lakh people for one CHC. Table 2 : Rural H ealt h I nfrast ruct ure: N orm s and St at us N a t iona l Ru r a l Popu la t ion ( 2 0 0 1 ) cove r e d by a : Sub Cent re Prim ary Healt h Cent re( PHC) Com m unit y Healt h Cent re ( CHC) Pr e se n t St at us N or m s Ge ne r a l 5, 000 Tr iba l/ H illy/ D e se r t 3, 000 Ge n e r a l 5,111 30,000 20,000 33,191 1,20,000 8,0000 1,8 3,000 Source: RHS bullet in, 2007, CBHI The above t able clear ly suggest s a huge shor t fall in pr im ar y healt h car e infr ast r uct ur e in t he count r y. Accor ding t o t he 2001 Populat ion Census, t he shor t fall in t he r ur al healt h infr ast r uct ur e com es out t o be of 20,855 Sub- Cent er s, 4,883 PHCs and 2,525 CHCs. This m eans t hat over all t her e is a shor t age of 12.6 per cent of Sub Cent er s; 17.8 per cent of PHCs and 38.4 per cent of CHCs. The short age is m ore acut e in High Focus St at es1 . I n t he t ribal areas t hough, t he requirem ent of CHCs is r elat iv ely less com par ed t o t he ot her par t s of t he count r y . The shor t fall in SubCent ers and PHCs are relat ively great er ( Fig 1) . Figur e 1 . So u r ce : RH S Bu l l e t i n , Ma r ch 2 0 0 7 , CBH I . BACKGROUNDNOTE 42 Slow Gr ow t h in Cr e a t ion of N e w Fa cilit ie s During t he Sevent h Plan period ( 1985- 90) t here w as a surge in t he grow t h of creat ion of rural healt h infr ast r uct ur e in I ndia. Unfor t unat ely aft er t he init iat ion of econom ic r efor m s, t her e w as a gr adual decline in gr ow t h r at e, at ever y plan per iod. A look at t he num ber of Sub- Cent r es funct ioning ov er t he y ear s r ev eal t hat at t he end of t he Six t h Plan ( 1981- 85) t her e w er e 84,376 Sub- Cent r es. The figur e r ose t o 1, 30,165 at t he end of Sev ent h Plan ( 1985- 90) and t o 1,36,258 at t he end of Eight h Plan ( 1992- 97) . At pr esent , as on Mar ch, 2007, 1,45,272 Sub- Cent r es ar e funct ioning in t he count r y. Sim ilar progress can be seen in t he num ber of PHCs which was 9,115 at t he end of Sixt h Plan ( 1981- 85) and t he figur e alm ost doubled t o 18,671 at t he end of Sevent h Plan ( 1985- 90) and rose t o 22,149 at t he end of Eight h Plan ( 1992- 97) . As on March 2007, t here are 22,370 PHCs funct ioning in t he count r y . I n accor dance w it h t he pr ogr ess in t he num ber of SCs and PHCs, t he num ber of CHCs has also increased from 761 at t he end of Sixt h Plan ( 1981- 85) t o 1,910 at t he end of Sev ent h Plan ( 1985- 90) and 2,633 at t he end of Eight h Plan ( 1992- 97) . Figur e 2 . So u r ce : RHS Bu l l e t i n , Ma r ch 2 0 0 7 , CBHI . M a j or it y of t h e H e a lt h ca r e I n st it u t ion s La ck Ba sic Am e n it ie s Those inst it ut ions w hich ar e t her e in place also lack basic am enit ies. About 50 per cent of SubCent r es, 76 per cent of PHCs and 91 per cent of CHCs ar e locat ed in gover nm ent buildings. The r est ar e locat ed eit her in r ent ed buildings or r ent fr ee Panchayat / Volunt ar y Societ y buildings. The short age of governm ent building in High Focus St at es is m uch higher com pared t o t he nat ional average. Half of t he PHCs in High Focus St at es are not in governm ent buildings. ( Fig 2) The sit uat ion is slight ly bet t er in t r ibal ar eas, t han t he r est of t he count r y, due t o special em phasis t hrough t he Tribal Sub- plan. As on March, 2007, in case of Sub- Cent res, overall 66,382 buildings are required t o be const ruct ed. Sim ilarly, for PHCs and CHC’s, 3,618 and 199 buildings respect ively ar e r equir ed t o be const r uct ed. Subst ant ial allocat ion t hr oughout t he count r y is r equir ed t o fulfill t his basic m inim um requirem ent . 43 BACKGROUNDNOTE Ta ble 3 : Su b- Ce n t e r s Ope r a t in g W it h ou t Ba sic Fa cilit ie s Sub - Ce n t e r s Ope r a t in g W it h ou t AN M qu a r t e r Pe r ce n t a ge W ater Su pply 50.7 Ele ct r icit y 29.6 25.5 H e a lt h W or k e r ( M a le ) AN M 4.8 36.2 Source: RHS Bullet in, March 2007. Ver y few inst it ut ions hav e adequat e suppor t infr ast r uct ur e, lik e quar t er s, w at er supply , elect r icit y et c. As t he abov e Table suggest s, m or e t han half of t he Sub- Cent er s do not hav e any ANM quar t er s. I t is w ell- r ecognized t hat giv en t he nat ur e of w or k of t he ANMs, it is essent ial t hat t hey st ay close t o t h e Sub- Cent r es. I n t he absence of lack of pr oper r esident ial facilit ies, ANMs ar e r equir ed t o t r av el t o t he Sub- Cent r es fr om t heir place of r esidence t hus causing absent eeism and negligence of w or k. Wat er supply and elect r icit y ar e cr ucial elem ent s t o have safe deliver ies in Sub- Cent r es. Unfor t unat ely, m or e t han a quar t er of t hem do not have elect r icit y and alm ost 30 per cent do not hav e access t o w at er supply . Mor e t han one- t hir d of t he SCs do not hav e m ale healt h w or ker s, t hus cr eat ing difficult ies for t he ANMs in t r aveling or pr oviding basic ser vices. On ly 3 8 pe r ce n t of t ot a l PH Cs h a v e t h e e n t ir e cr it ica l st a ff; w h e r e a s on ly 3 1 pe r ce n t h a ve t h e e n t ir e cr it ica l su pplie s ( de fin e d a s 6 0 pe r ce n t of cr it ica l in pu t s) , w it h on ly 3 pe r ce n t of PH Cs h a vin g 8 0 pe r ce n t of a ll cr it ica l in pu t s. Ta ble 4 : PH Cs Ope r a t in g W it h ou t Ba sic Fa cilit ie s P H Cs Ope r a t in g W it h ou t P e r ce n t 4- 6 beds 39.1 2 4 hrs de live r y f a ci l i t i e s 77.8 La b o r room Ope r a t ion El e ct r i ci t y Thea t re 49.8 55.7 W ater su p p l y 5.7 7.9 M ot or a ble roads 10.5 So u r ce: RHS Bu l l et i n ; Ma r ch , 2 0 0 7 , CBHI . The shor t fall in t he healt h unit s have cont inued fr om one plan per iod t o anot her w it hout necessar y st eps being init iat ed by t he Cent r e and St at es in est ablishing t hese healt hcar e unit s. The Pa r l i a m e n t a r y St a n d i n g Co m m i t t e e o n He a l t h a n d Fa m i l y W e l f a r e h a s m a d e se v e r a l r ecom m endat ions and obser vat ions on t he necessit y of br idging t he gap by est ablishing t he r equir ed Sub- Cent r es, PHCs and CHCs. How ev er , t heir suggest ions seem t o hav e m ade no visible im pact . By t he t im e t he Depart m ent wakes up t o fill t he short fall, requirem ent for m ore healt h unit s would surely m anifest wit h growing populat ion in t he count ry. Ta ble 5 : Low er At t a inm ent of H ea lt h I ndica t ors a m ong SCs a nd STs com pa red t o N a t iona l Avera ge I ndica t or s I nfant Mort alit y SCs STs All I n dia 66.4 62. 1 41. 5 Under 5 Mort alit y Under- five children acut ely m alnourished 88.1 95. 7 74. 3 47.9 54. 5 42. 5 25.9 29. 4 22. 8 40.6 25.4 46. 6 No ant i - nat al care during pr egnancy ( % ) Delivered by a skilled provider ( % ) Sour ce: NFHS I I I BACKGROUNDNOTE 44 H uge Short age of H um an Resources Short age of hum an power at every level of service delivery is one of t he m aj or im pedim ent s in deliver y of com pr ehensive pr im ar y healt h car e. Though, t her e ar e cer t ain effor t s fr om t he cent r e t o fulfill t he v acancies of ANM in r ecent y ear s, r esult ing in r elat iv ely less shor t fall, ov er all t her e is a huge shor t age of hum an r esour ces at all levels ( Fig 3) . The shor t age is m or e acut e for post s like Specialist s at CHCs, Male Healt h Workers, Laborat ory Technicians and St aff Nurse. There is alm ost 60 per cent shor t age of Specialist s in r ur al ar eas, for High Focus St at es t he shor t age is as high as 80 per cent . Gener ally at ever y level, t her e is shor t age of hum an r esour ces but it is more in t r ibal ar eas- one fift h post s of doct or s, alm ost half post s of st aff nur se and lab t echnicians and m or e t han 85 per cent of specialist post s ar e v acant in t r ibal ar eas. Accredit ed Social Healt h Workers or ASHAs are claim ed t o be one of t he m aj or innovat ions under NRHM. A huge num ber of ASHAs have been recruit ed in t he last t hree years across I ndia, t o build a link bet ween t he healt h syst em and com m unit ies. I n t ot al, 6, 31,855 ASHAs have been appoint ed, a m aj or it y of t hem in High Focus St at es ( Table 5) .Though t he ASHAs ar e consider ed t o b e v olu n t eer s, t h ey ar e p r ov id ed in cen t iv es f or v ar iou s act iv it ies lik e m ot iv at in g an d accom panying pregnant wom en for inst it ut ional deliveries, organizing im m unizat ion cam ps et c. As of now only 35.6 per cent of ASHAs hav e been pr ov ided w it h t he basic dr ug k it . Though m aj or it y of t hem have been t r ained at least once, m or e t han one- fourt h of t hem have not r eceiv ed t he second m odule of t raining, whereas t hey are supposed t o be t rained for five m odules. St udies done by Jan Sw ast hy a Abhiy an ( 2008) hav e r ev ealed t hat t her e ar e discr epancies in t he select ion pr ocess of ASHAs. Most of t he t im e t he consult at iv e pr ocess is under m ined and ASHAs ar e select ed by ANMs/ AWWs or local leader s. Figur e 3 . So u r ce : RHS Bu l l e t i n , Ma r ch 2 0 0 7 , CBHI . 45 BACKGROUNDNOTE Ta ble 5 : Appoin t m e n t of ASH A/ Lin k W or k e r s N o. of ASH As/ Link w ork ers Select ed No. of ASHAs in posit ion ( Dec 2007) No.of ASHAs in posit ion w it h dr ug kit s Tot al H igh Focus 631855 488210 224951 171858 % of ASHAs having drug kit s 35.6 35.2 Pe r ce nt a ge of ASH As w ho r e ce ive d t r a ining 1st m odule 84.8 89.9 2nd Module 24.1 31.2 Source: MI S, NRHM, Decem ber, 2007. Con t r a ct u a lisa t ion of D oct or s a n d Spe cia list s u n de r N RH M Along w it h v acancies in r egular st aff, significant post s of specialist s, doct or s and st aff nur se hav e been cont r act ed out . Alm ost 44. 9 per cent post s of specialist s ar e pr esent ly filled by cont r act ual doct or s. Sim ilar ly 27.7 per cent of post s of doct or s and 43.4 per cent of post s of st aff nur ses hav e been cont r act ed out ( Fig 4) . Such m easur es of cont r act ualisat ion hav e huge im plicat ions for t he pr ov ision of com pr ehensiv e healt h car e. While t he specialist s ar e in gener al, consult ed for inst it ut ional deliv er ies and OPD, im por t ant aspect s of public healt h get gr ossly neglect ed. Figure 4 . Source: MI S, NRHM, Decem ber, 2007 Furt her t he rest rict ion in NRHM guidelines on recruit m ent of perm anent st aff has worsened t he sit uat ion. On one hand, St at es ar e t ied dow n by unj ust ified ceiling on ex pendit ur e t hr ough legislat ions like t he Fiscal Responsibilit y and Budget Managem ent Act w hich prevent t hem from recruit ing regular st aff, on t he ot her hand huge am ount of funds under NRHM rem ain un- ut ilized due t o absence of cr it ical st aff at all lev els. Som e St at es lik e Bihar and Raj ast han hav e pr iv at ized t he pr ocess of appoint ing doct or s. These ar e cont r act ual posit ions and offer ing v er y low salar y . Som e St at es like Guj arat are hiring privat e specialist s for running healt h services. These raise doubt s w het her t he gov er nm ent is at all ser ious about r ecr uit ing doct or s t o r un t he public healt h BACKGROUNDNOTE 46 syst em ( JSA, 2008) . Unt il and unless som e m easures are adopt ed t o im prove fiscal posit ion of t he St at es or fulfill hum an r esour ce v acancies in cr ucial social sect or s lik e healt h and educat ion, universal access t o such services will rem ain a dist ant dream . Very few Doct ors in Rural Areas When w e com par e t he scar cit y of doct or s in r ur al ar eas and ov er all av ailabilit y of doct or s, w e find a huge m ism at ch. As m any as 6, 96,747 doct ors are regist ered in I ndia. But out of t hem , only 79,535 ( 11.42 percent ) are working in governm ent facilit ies ( Fig 5) . Only a t hird of t he gover nm ent doct or s, w ho const it ut es m er ely 4 per cent of all r egist er ed doct or s, w or k in r ur al ar eas. Recent ly , t her e w as a pr oposal by t he Cent r al gov er nm ent t o int r oduce r ur al post ings of fr esh MBBS gr aduat es. Ther e hav e been opposit ions t o t his m ov e fr om differ ent sect ions of t he m edical fr at er nit y . Som e consider it as a v er y r et r ogr essiv e m easur e. The ot her ar gum ent , w hich sounds m ore logical, is t hat placing fr esh gr aduat es in posit ions w hich r equir e t he ser vices of ex per ienced pr ofessionals w ill det er ior at e t he ov er all qualit y of ser v ices. Alt hough t her e is a st r ong logic behind t his, w e cannot deny t hat som e m et hods hav e t o be dev eloped t o encour age young gr aduat es t o j oin r ur al healt h ser vices. Figur e 5 . Regist ered Doct ors in Rura l Area s So u r ce: Nat i o n al Heal t h Pr o f i l e, CBHI , Go I At t he sam e t im e w e need t o r ecognize t hat t her e has been no sincer e effor t on t he par t of t he gover nm ent t o ensur e conducive w or king condit ions for doct or s and ot her healt h w or ker s. Ther e is an urgent t o provide a bet t er incent ive st ruct ure for healt h professionals w orking in rural and difficult ar eas. This should be accom panied by a pr oper t r ansfer policy and car r ier oppor t unit ies in t he form of prom ot ions and non- m edical service incent ives ( JSA, 2008) . I nherently I niquitous Private Medical Education The r oot cause of lack of hum an r esour ces in r ur al ar eas can be look ed int o t he gr ow t h of pr iv at e m edical educat ion business. The follow ing gr aph ( Fig 6) clear ly show s t hat since 1999- 2000 t here is surge in adm issions in m edical colleges. I t will not be unrealist ic t o assum e t hat t his increase in adm ission has also led t o an increase in t he num ber of doct ors being produced. Giv en t hat pr iv at e m edical inst it ut ions ar e heav ily biased in fav or of t he r elat iv ely bet t er - off sect ions of societ y , it also cr eat es an elit ist bias ov er t he cont ent of cour ses offer ed. Cour ses w it h a gr eat er m ar ket dem and ar e usually t aught in t hese inst it ut ions w her eas aspect s of public healt h and com m unit y m edicine get neglect ed. Unfor t unat ely, t her e have been init iat ives fr om bot h t he Cent r al gov er nm ent and t he St at es t o pr om ot e such educat ion. 47 BACKGROUNDNOTE Most of t he m edical inst it ut ions including t he public inst it ut ions ar e sk ew ed in m et r opolit an cit ies. The St anding Com m it t ee on Healt h and Fam ily Welfare has raised som e serious concerns on t he exist ing skew ed dist ribut ion of m edical colleges in t he count ry. The Com m it t ee has st rongly recom m ended a m ore pro- act ive role of governm ent in t he set t ing up of m edical colleges in uncovered areas. The Com m it t ee accordingly recom m ends t hat t he Depart m ent finalize w it h fair am ount of prom pt it ude it s policy on offering incent ives for rem oval of regional im balance in t he dev elopm ent of m edical colleges in t he count r y . Ther e is a shor t age of t eaching st aff in m edical colleges. Consequent ly , t he st andar ds of m edical colleges ar e going dow n. To m eet t he shor t age of st aff, t he Com m it t ee st rongly feels t hat t he present age lim it of 65 years m ay be relaxed. Figur e 6 . So u r ce: Na t i o n a l Hea l t h Pr o f i l e, CBHI , Go I . The ser iousness of st aff shor t age can also be link ed t o t he apat hy fr om t he m edical fr at er nit y t o spread public- funded m edical educat ion and t heir resist ance t o creat e an arm y of sem i- skilled pr ofessionals. The m edical associat ion has r esist ed all m ov es t o r ecognize t he Regist er ed Medical Pract it ioners. The init iat ives t o creat e nurse pract it ioners have been dum ped. Sim ilarly, t raining inst it ut es for nur ses and par am edical st aff hav e eit her been closed dow n or becom e defunct . Unt il and unless a holist ic appr oach is adopt ed t o t ackle t he hum an r esour ce shor t age in r ur al ar eas t he pr oblem s cannot be solv ed. The ent ire approach of t he governm ent t owards public healt h has been very vert ical and rest rict ive, w hich has r esult ed in t he pr esent sor r y st at e of affair s. While t her e has been som e shor t t er m m easures like cont ract ual appoint m ent t o fulfill t he gap in hum an resources, alm ost no m easures have been creat ed, keeping t he long t erm s visions of com prehensive prim ary healt h care. Huge invest m ent is required t o appoint all required hum an power, init iat ives are required t o be t aken bot h at t he lev el of t he St at es and t he Cent r e. The ban on per m anent r ecr uit m ent of st aff t hrough NRHM should be rem oved, St at es should be provided financial support from t he Cent re t o fulfill vacancies in im por t ant social ser vices like healt h and educat ion; pr oper incent ive should be provided t o m edical professionals working in rural areas, governm ent should invest in set t ing up m edical colleges and t raining inst it ut es for nurses and ot her param edical st aff in rem ot e areas also; som e m easures can be t hought of t o m ake public services com pulsory for m edical professionals; t he skills of param edical and nursing st affs should be gradually upgraded. Ensure Access t o Essent ial Medicines I n I ndia, about 80 per cent of t he populat ion does not hav e access t o essent ial m edicines and t he pur chase of dr ugs const it ut es a m aj or por t ion of out of pocket expendit ur e. I t is im por t ant in t his cont ex t , t hat access of essent ial m edicines be giv en m assiv e pr ior it y . How ev er , t he Nat ional BACKGROUNDNOTE 48 Drug Policy draft ed in 2002 cam e as a m aj or set back for t he people as it proposed t o dism ant le all cont rol over prices of essent ial drugs, and 100 percent FDI in drug m anufact uring. The draft w as opposed by v ar ious sect ions of t he societ y ; lat er on t he UPA gov er nm ent pr oposed a r edraft ed Nat ional Pharm aceut ical Policy in 2006, w hich proposed cont rol over all 354 essent ial drugs and 74 life saving drugs. Though t here w ere som e problem s w it h t he new draft , it w as undoubt edly a pr ogr essive init iat ive. But t he indust r y, especially t he MNCs, cam e up w it h spit eful cr it icism again st t h is Policy an d u lt im at ely t h e UPA h ad t o su ccu m b t o t h e pr essu r e an d subsequent ly shelv ed t he Bill. This clearly show s t hat , t he UPA gover nm ent is m or e int er est ed in keeping t he int er est of t he dom est ic indust r y and t he MNCs and least int er est ed in est ablishing an effect iv e pr ice cont r ol m echanism w hich benefit s t he ent ir e nat ion as a w hole. The Repor t of JSA on ‘Healt h Ser vices and t he NRHM’ obser ves t hat despit e availabilit y of funds t her e exist lar ge scale gaps and shor t ages in availabilit y of essent ial m edicines. The r epor t also not es t hat under nat ional disease cont r ol pr ogr am s and ot her pr ogr am s w it h ex t er nal assist ance, pr ocur em ent of dr ugs ar e done t hr ough consult ant s, by passing t he usual r out es of Medical St or es Or ganisat ion ( MSO) . As a r esult , cer t ain basic dr ugs like I FA and chlor oquine ar e not av ailable for long per iods in cer t ain St at es. While t he pr ocur em ent m echanism is basically cont ract ed out , t he MSO rem ained underut ilized. As per Audit Report s, out of procurem ent wort h Rs 6,148.85 crore of m edicines and m at erials bet ween 2002 and 2007 t he cont r ibut ion of pur chases by MSO is only Rs 171.05 cr or es am ount ing t o only 3 per cent % of t ot al pr ocur em ent . So u r ce : JSA( 2 0 0 8 ) : He a l t h Se r v i ce s a n d t h e NRHM I I : I ssues of Finance N o Sign ifica n t I m pr ov e m e n t in Pu blic I n v e st m e n t on H e a lt h Unfor t unat ely in t he fiv e y ear s of t he UPA, t he com m it m ent t o spend 2- 3 per cent of GDP on healt h rem ained as elusive as ever. Though in absolut e t erm s t here is som e increase in expendit ure of t he Cent r al Gover nm ent , w hen adj ust ed w it h gr ow t h r at e of GDP and inflat ion t he incr ease is m eager. The Tot al Expendit ure of t he Union Governm ent on Healt h and Fam ily Welfare went up from Rs. 9,649.24 crore in 2005- 06 t o Rs. 11,757.74 crore in 2006- 07 RE, which has furt her been increased t o Rs. 15,854.88 crore in 2007- 08 BE. However, t he allocat ion is st ill around 1 per cent of GDP at t he nat ional level. Ex pe n dit u r e on H e a lt h § § § § I ndia’s public spending on healt h is only 0.9 percent of GDP, m erely one- t hird of t he less developed count ries’ average ( WHO Report , 2003) 84 per cent of healt hcar e ex pendit ur e is out - of- pock et ex pense 40 per cent of hospit alized people ar e for ced t o bor r ow m oney or sell asset s t o cov er healt h expenses ( NSS 42 nd and 52 nd ) . Only 20 per cent per cent of populat ion has access t o essent ial dr ugs ( Jan Sw ast hy a Abhiyan, 2004) The Union gov er nm ent has r ecent ly accor ded m ar ginally higher pr ior it y t ow ar ds Healt h and Fam ily Welfare in t he Union Budget . I n 2003- 04 only 1.58 percent of t he Union Budget was spent on healt h. The shar e of healt h gr adually incr eased t o 2.11 per cent in 2007- 08 ( Fig 7) . Nevert heless, t he share is m uch less t han w hat is expect ed from t he Union Governm ent , or w hat it does t o ot her sect or s lik e Defense. 49 BACKGROUNDNOTE Figur e 7 . So u r ce: Ex p en d i t u r e Bu d g et , Vo l I f o r v ar i o u s y ear s, w w w . i n d i ab u d g et . n i c. i n Using CGHS and ESI S Levels of Public Spending as Benchm arks I ndia has one of t he m ost pr ivat ized healt h car e syst em s in t he w or ld, w hich essent ially m eans t hat people spend from t heir ow n pocket t o t ide over healt h calam it ies. The Nat ional Com m ission on Macr oeconom ics and Healt h, in it s r epor t , calculat ed t hat t he out of pock et ex pendit ur e on healt h w as appr ox im at ely Rs.790 in t he y ear 2001. This const it ut es about 85 per cent of t ot al ex pendit ur e on healt h. Sev er al r epor t s of NSS hav e also highlight ed t he fact t hat out - of- pock et ex pendit ur e causes indebt edness t o a gr eat ex t ent ; t he pr ox im it y of cost s inv olv ed in t r eat m ent keep m ost of people, m ost ly w om en and t he poor, out of t he healt h care syst em . There is an ur gent need t o r ev er t t his r et r ogr essiv e sy st em . St epping up public inv est m ent t o a gr eat ex t ent can be t he only solut ion t o t his issue. Per capit a public expendit ur e on healt h w as ar ound Rs 214.62 in 2004 ( Nat ional Healt h Profile, 2007) . But governm ent spends subst ant ially higher for it s ow n em ploy ees. For in st an ce, on Cen t r al Gov er n m en t Healt h Sch em e ( CGHS) , Un ion governm ent spends around Rs 614 per beneficiaries. Sim ilarly, for t he Em ployees St at e I nsurance Schem e ( ESI S) governm ent spending per beneficiary is around Rs 679.These schem es, t hough hav e cer t ain loopholes in im plem ent at ion, do cov er m ost of t he healt h ex pendit ur e of t he em ployees of Cent ral and St at e governm ent s. Given t hat public spending reduces overall spending, w e can safely say t hat if t he Union and St at e gov er nm ent s t oget her spend ar ound t he sam e lev el of CGHS or ESI S, t he bur den on out - of- pock et ex pendit ur e can be significant ly r educed. Figu r e 8 : So u r ce: Co m p i l ed f r o m w w w . m o h f w . n i c. i n , w w w . esi c. n i c. i n an d Nat i o n al Heal t h Pr o f i l e, 2 0 0 7 , CBHI . BACKGROUNDNOTE 50 Sign if ica n t U n de r - u t ilisa t ion of Fu n ds Under - ut ilisat ion of funds r em ains a m aj or concer n for Minist r y of Healt h & Fam ily Welfar e ( MoH&FW) . Ther e has been a significant incr ease in under - ut ilisat ion of funds in t he last few year s. For 2006- 07, t he BE allocat ion of Rs. 11,305.00 cr or es had t o be br ought dow n t o Rs. 10,000.00 cr or es at t he RE st age. By t he end of financial y ear 2006- 07, Depar t m ent w as able t o ut ilise Rs.9, 295.55 crores against RE allocat ion of Rs. 10,000 crores. During 2005- 06 also, allocat ed funds r em ained under - ut ilised. Against a t ot al plan allocat ion of Rs. 9,332.00 cr or es, final expendit ure figures were Rs. 7,926.55 crores. Under- ut ilisat ion is relat ively m ore for healt h t han NRHM and FW. Dat a available for February 2008 show s t hat m or e t han 46 per cent of funds r em ain un- ut ilized under healt h act ivit ies. Under- ut ilisat ion under NRHM/ FW has also increased significant ly in t he last few years ( Fig 9) . Prelim ina ry Findings of t he st udy on D ist r ict Fu n d Flow a n d Ut ilisa t ion by CBGA, in UP a nd Chha t t isga r h. Th e m aj or r eason s f or u n der u t ilizat ion of f u n ds u n der NRHM ar e t h e f ollow in g: n A h u ge am ou n t of f u n ds h av e been spen t du r in g t h e last qu ar t er of a y ear . n Hu ge v acan cies in st af f at ev er y lev el, in clu din g pr ogr am im plem en t at ion an d m an agem en t cause significant under - ut ilisat ion. n Cer t ain dem and- dr iv en heads lik e t he Janani Sur ak sha Yoj na ( JSY) or fam ily w elfar e pr ogr am s r eceiv e m or e t han allot t ed, w her eas t her e is under ut ilisat ion in com ponent s lik e st r engt hening of su b- cen t er s, u n t ied gr an t s et c. n Th er e ar e h u ge delay s in su bm ission of t h e au dit r epor t s, FMRS, Ut ilisat ion Cer t if icat es w h ich in cr ease delay s in fu n ds allot m en t an d h en ce u t ilisat ion . n Mu lt iple ch an n els in v olv ed in fu n d t r an sfer cau se delay s. n Lack of pr oper of t r ain in g of st af f s h am per u t ilisat ion of f u n ds. So u r ce : CBGA ( 2 0 0 8 , f o r t h co m i n g ) : Ou t l a y s t o o u t co m e s, A D i st r i ct - l e v e l An a l y si s o f Pu b l i c Sp e n d i n g o n Ch i l d r e n Figu r e 9 : Source: Out com e Budget , MoHFW, 2008- 09, GoI 51 BACKGROUNDNOTE D ive r sion of Pla n fu n ds t o N on - pla n Act ivit ie s The St anding Com m it t ee on Healt h and Fam ily Welfare has expressed it s concern on t he diversion of plan funds t o non- plan act ivit ies in several report s. I n 2005- 06, plan allocat ion of Rs. 9,332.00 crores w ere brought dow n by alm ost Rs.1, 000.00 crores ( t o Rs.8, 500.00 crores) at t he RE st age and t he act ual ex pendit ur e r epor t ed w as only Rs. 8,076.76 cr or es. While, ev er y y ear ut ilisat ion of non- plan fund is m ore t han t he BE allocat ion, during t he financial year 2006- 07, Rs. 109.75 cr or es w er e likely t o be diver t ed fr om plan t o non- plan. This clear ly depict s t hat plan funds under healt h schem es funds are being divert ed t o non- plan expendit ures; as a result t here rem ains a deart h of plan fund in Cent ral governm ent inst it ut ions and schem es on healt h2 . Com m u n ica ble D ise a se s Accor de d Le sse r Pr ior it ie s in Un ion Bu dge t Com m unicable diseases are st ill m aj or killers in I ndia. But unfort unat ely t hey are accorded very lit t le priorit y in t he Union Budget s. Since 2004- 05, t here is a cont inuous decline in share of Nat ional Disease Cont rol Program m e ( NDCP) in t he Union Budget . At t he sam e t im e t here is subst ant ial increase in expendit ure on HI V&AI DS alone. I n 2001- 02 RE, only Rs 199.7 crore were spent on HI V&AI DS, am ount ing t o 3.3 percent of healt h budget . I n 2007- 08 RE, Rs1,133.39 cr or es w er e allot t ed, w hich is 7.6 per cent of Union Budget ( Fig 10) . Com pared t o t his t he allocat ion on Disease Cont rol Program m es, was Rs 482.46 crores in 2001- 02 RE which increased t o Rs 980.48 crores in 2007- 08 RE. This does not m ean t hat t he am ount spent on HI V&AI DS should be brought dow n, but com m unicable diseases should also be accorded adequat e priorit y, w hich as of now does not get r eflect ed in t he Union Budget . I n a sit uat ion w her e Pulse Polio I m m unizat ion Program alone get s Rs1, 100.58 crore s, Rs 980.48 crore allot t ed t o NDCP is no doubt a palt ry sum . n n n n n n n n Com m unica ble D ise a se s Com m unicable, m at ernal and peri- nat al, nut rit ional deficiencies cont ribut e t o t he largest num ber of d eat h s in I n d ia ( 3 0 p er cen t ) (MoHFW An n u al Repor t , 2 0 0 6 - 0 7 ) Resu r g en ce of v ar iou s com m u n icab le d iseases. Ou t b r eak of Den g u e d u r in g t h e y ear 2 0 0 5 , claim ed 2 1 5 an d 1 5 7 deat h s of 1 2 , 7 5 4 an d 1 1 , 9 8 5 cases r espect iv ely Each day in I n dia, m or e t h an 2 0 , 0 0 0 people get in f ect ed w it h t h e t u ber cu losis bacillu s ( TB) , 5, 000 people dev elop TB, and m or e t han a 1, 000 die - t hat is near ly one per son per m inut e. The annual num ber of TB deat hs in I ndia is 4 , 2 1 , 0 0 0 . ( CBHI ) Mor e t h an 3 , 0 0 , 0 0 0 ch ildr en leav e sch ool each y ear on accou n t of par en t al TB. Pr opor t ion Un ion Gov er n m en t ’s ex pen dit u r e on h ealt h u sed for TB: 1 . 9 per cen t . Th e lat est est im at e of HI V pr ev alen ce is as h igh as 0 . 2 8 per cen t ( NFHS I I I ) . 0 . 8 m illion m alar ia cases an d 0 . 3 m illion of cases w it h 8 1 9 deat h s w er e r epor t ed t ill 1 7 t h Novem ber,2006 1 , 6 8 9 con fir m ed cases of Ch ik u n gu n y a r epor t ed fr om 1 2 St at es/ UTs t ill 2 0 0 6 . Figu r e 1 0 : Sou r ce: Ex p en d i t u r e Bu d g et Vol I I , v ar i ou s y ear s. w w w . i n d i b u d g et . n i c. i n BACKGROUNDNOTE 52 Slow Grow th of Allocation on NRHM The financing of NRHM so far r ev eals t hat it focuses m or e on select iv e int er v ent ions and t he aspect of univ er salisat ion is neglect ed. Accor ding t o t he m ission docum ent , t he init ial allocat ion for NRHM for t he 2005- 06 would be Rs.6,700 crores, and in subsequent years 30 percent increase w ill t ak e place. But for 2005- 06, no separ at e head for NRHM w as cr eat ed and funds for t he exist ing program m es were used. For 2005- 06, plan out lay on NRHM was Rs.6,075.17 crores. I t received an increased out lay of Rs.7,155.97 crores ( RE) as plan funds in 2006- 07. This has furt her been increased t o Rs.9,801 crores ( BE) in 2007- 08 and RS.10,786.25 crores. The nonplan out lays for t hese years rem ained alm ost st agnant at Rs.32.29 crores ( 2005- 06 RE) , Rs.34.40 crores ( 2006- 07 RE) , Rs.38 crores ( 2007- 08 BE) and Rs 44.25 crores. Even t he com m it m ent of incr easing allocat ions by 30 per cent ev er y y ear has been v iolat ed, t he incr ease has been 18- 20 percent in nom inal t erm s whereas t he real increase is m uch lesser. Furt her, around 80 percent of t he incr ease in allocat ions t ook place in four com ponent s: HI V/ AI DS pr ogr am , Repr oduct ive & Child Healt h ( RCH) , m edical educat ion and AYUSH; whereas st rengt hening of t he PHC infrast ruct ure rem ained grossly neglect ed. 3 Figu r e 1 1 : Sou r ce: Ex p en d i t u r e Bu d g et Vol I I , v ar i ou s y ear s. w w w . i n d i b u d g et . n i c. i n I n cr e a sin g I n flu e n ce of Ce n t r a lly Spon sor e d Sch e m e s ( CSS) in Pu blic Spe n din g Ther e is an ever gr ow ing influence of cent r ally sponsor ed schem es in healt h in r ecent year s. Schem es like NRHM, t he Vert ical Disease Cont rol Program s and RCH, which are financed part ially or fully by t he Cent re, and im plem ent ed by t he St at es, have gained increasing influence in t he finances of healt h car e. I n 2002- 03, ev en t hough only 17 per cent of Healt h Budget of Cent r e and St at es w er e allocat ed t o t he CSS; t her e is a subst ant ial incr ease since 2006- 07. I n 2007- 08 RE as m uch as 37.5 per cent allocat ion ar e t hr ough CSS only ( Fig 12) . This clear ly r eveals t endency of cent r alizat ion in healt h car e spending. Fur t her , m aj or CSS by pass St at e budget s, and ar e r out ed t hr ough differ ent societ ies, t hus leav ing v er y lit t le choice of St at es in spending. The incr easing influence also r ev eals in som e sense t he inabilit y of t he St at es t o st ep up public inv est m ent on healt h. Public Healt h, being a St at e subj ect , it is im per at iv e t hat t he St at es ar e devolved m ore funds by t he Cent re t o spend on t heir priorit ies. 53 BACKGROUNDNOTE Figur e 1 2 . So u r ce: Ex p en d i t u r e Bu d g et Vo l I , v ar i o u s y ear s Grow ing I nfluence of External Agencies The St anding Com m it t ee on Healt h and Fam ily Welfare in it s 21 st r epor t r egist er ed st r ong obj ect ion ov er t he pr act ice of including ex t er nal assist ance in t he gr oss Budget of t he Depar t m ent . I n 2007- 08 BE t he provision for Ext ernally Aided Proj ect s in Cent ral plan was Rs 3,237.71core ( Fig 13) . This is an increase of Rs 723.43 cores over t he previous year. The Com m it t ee observed t hat if t he pr act ice of including ex t er nal aid in dom est ic budget cont inues, t hen t he com m it m ent of t he gover nm ent t o r aise t he allocat ion in t he healt h sect or t o 2- 3 per cent of GDP w ill r em ain only on paper and not be r ealized in act ual pr act ice. Mor eover , t he Com m it t ee also felt t hat financing t he non- plan expendit ur e by ext er nal aid is not a healt hy pr act ice. Fur t her , it should be not ed t hat t he t ot al cont r ibut ion of ext er nal aid in healt h is m er ely 2 per cent ( Repor t of Nat ional Com m ission on Macroeconom ics and Healt h, 2005) and t here is no reason t o believe t hat w e desperat ely need such m eager am ount s. Given t hat t here is an enorm ous influence of t hese foreign agencies on our healt h policies and t he lit t le cont ribut ion t hey m ake t o our finances, I ndia should com plet ely do aw ay w it h t hese funds and dev elop healt h ser v ices accor ding t o it s nat ional requirem ent s. Unfort unat ely, t here is no such effort in t his direct ion and furt her t here is t he gr adual t endency t o fall pr ey t o t he w him s of t hese donor s. Figu r e 1 3 : So u r ce: Ex p en d i t u r e Bu d g et Vo l I , v ar i o u s y ear s BACKGROUNDNOTE 54 Som e Fa ct s on t he H e a lt h St a t us of Childr e n in I ndia § § § § § I MR is as h igh as 5 8 per 1 0 0 0 liv e bir t h s ( SRS- 2 0 0 5 ) . Neo- nat al m or t alit y r at e r em ained st at ic, dr opping only four point s fr om 4 8 t o 4 4 per 1 0 0 0 liv e bir t h s bet w een 1 9 9 5 an d 2 0 0 0 . Abou t 3 5 per cen t of t h e dist r ict s r egist er ed ch ild sex r at ios below t h e n at ion al av er age of 9 2 7 f em ales per 1 0 0 0 m ales. Three com plet ely avoidable child deat hs occur every m inut e; 18 lakh deat hs of under- five children could be av oided ev er y y ear ( Planning Com m ission Tent h plan Docum ent ) . 6 0 per cen t of deat h s u n der f iv e y ear s of age ar e en t ir ely pr ev en t able. Ev er y t h ir d m aln ou r ish ed ch ild in t h e w or ld liv es in I n dia ( MWDCD Repor t , 2 0 0 7 ) . Ev er y secon d I n dian ch ild is u n der w eigh t ( MWCD Repor t , 2 0 0 7 ) . § § Ch ildr en bor n w it h low bir t h w eigh t ar e 4 6 per cen t ( NFHS- I I I ) . Four out of ev er y fiv e childr en ar e anem ic ( NFHS- I I I ) . § § I I I : Recent Policy Developm ent s The flagship program of t he UPA on healt h is t he Nat ional Rural Healt h Mission ( NRHM) , launched in 2005. I t s goal is t o im pr ove t he availabilit y of and access t o qualit y healt h car e by people, especially t hose residing in rural areas, t he poor, wom en and children. Though it t alks about com prehensive care, in realit y NRHM is an um brella program of exist ing schem es and program s lik e RCH, Fam ily Welfar e, and Nat ional Disease Cont r ol Pr ogr am and apar t fr om Accr edit ed Social Healt h Act ivist ( ASHA) and Janani Sur akha Yoj ana ( JSY) , t her e is har dly any new init iat ive. The cent ral m ot ive of NRHM, disguised in t he rhet oric of ‘dram at ic im provem ent in t he healt h syst em ’ is fam ily planning- which is regressive and coercive in any form and needs t o be exposed and opposed. There are problem s of m onit oring of t he various schem es and benefit s are not reaching adequat ely t o t he people. I n pr inciple, t he NRHM t alks about devolving pow er t o t he PRI s and also at t he dist rict level, but lit t le has been done in t his regard. The policy m akers, influenced by t he logic of lim it ed absor pt ion capacit y of t he r ur al sect or , do not hing t o dev olv e pow er t o t he v illages. Fact of t he m at t er is t hat a lot of innov at ions can be seen in set t ing up of r ur al healt h car e delivery syst em if t he local level governm ent s are em pow ered t o plan and given aut onom y t o allocat e fund in accor dance t o t he needs of t he localit y . I t is also v er y im por t ant t o not e t hat t he lack of absor pt iv e capacit y of t he st at e is an out com e of t he chr onic lack of inv est m ent on fundam ent al issues of infr ast r uct ur e, av ailabilit y of dr ugs, skilled m anpower et c. I m proving absorpt ive capacit y is a long t erm process and will require sust ained effor t s t ow ar ds st r engt hening m anagem ent and inst it ut ional capacit ies, filling up of v acant post s, higher salar ies, m uch gr eat er ex pendit ur e on dr ugs and ot her consum ables et c. Knee j erk responses like public- privat e part icipat ion ( PPP) m ay not be t he solut ion and rat her it can ag g r av at e t h e p r ob l em . Th e NRHM sh ou l d ai m t ow ar d s t h e p r ov i si on of u n i v er sal com pr ehensiv e public healt h syst em w it h gr eat er funding fr om dom est ic budget inst ead of a t arget ed approach based on donor funded priorit ies. Anot her ver y significant policy announcem ent t hat has com e up r ecent ly is t he Sw ast hya Bim a Yoj ana ( Healt h I nsurance Schem e) for BPL fam ilies in unorganised sect or in all dist rict s of t he count r y . The br oad cont our s of t he pr oposed schem e ar e as follow ing: • • Cont ribut ion by Governm ent of I ndia: 75 percent of t he est im at ed annual prem ium of Rs.750, subj ect t o a m axim um of Rs. 565 per fam ily per annum . The cost of sm art card will be borne by t he Cent ral Governm ent . Cont ribut ion by respect ive St at e Governm ent s: 25 percent of t he annual prem ium , as well as any additional prem ium . 55 BACKGROUNDNOTE • • • • The beneficiary w ould pay Rs. 30 per annum as regist rat ion/ renew al fee. The adm inist r at ive and ot her r elat ed cost of adm inist ering t he schem e w ould be borne by t he r espect iv e St at e Gov er nm ent s The St at e Governm ent while form ulat ing t he pilot proj ect will det erm ine t he im plem ent ing agency on behalf of t he St at e Gov er nm ent . Unorganized sect or workers belonging t o BPL cat egory and t heir fam ily m em bers ( a fam ily unit of five) shall be t he beneficiaries under t he schem e. Though t he schem e is at a nascent st age and deser v es deeper st udy t o com m ent upon, t his can be seen as a w elcom e st ep giv en t he sor r y st at e of social secur it y in t he unor ganised sect or in I ndia. At t he sam e t im e, rest rict ing t he schem e t o BPL fam ilies’ only, leaves out a significant sect ion of unorganised workers, who m ay be m arginally above BPL but definit ely require social suppor t against healt h difficult ies. At a t im e w hen influence of neo- liber al policies can be seen in ev er y aspect of our life, it is quit e unlikely t hat healt h as a social sect or w ill rem ain insulat ed from t he consequences of ram pant liberalizat ion. Furt her, liberalizat ion which aim s t o weaken governm ent as an inst it ut ion com es t hrough governm ent init iat ives. Healt h policy m aking in last decade and a half has revolved ar ound t he cent r al t hem e of pr ivat izat ion of ser vices. I m por t ant policy m easur es adopt ed in t he erst while NDA regim e, like t he Nat ional Populat ion Policy 2000, Nat ional Healt h Policy 2002, Nat ional Dr ug Policy 2002 advocat ed for r am pant pr ivat izat ion of ever y spher e. Lot s of hue and cry has been m ade by t he civil societ y, including NGOs, a m iniscule sect ion of academ ia and few polit ical par t ies, against liber alizat ion. Unfor t unat ely t he UPA has done not hing t o r ev er t t he liberalizat ion process, it has only m ade t hings lit t le m ore subt le- privat izat ion has been disguised under gr eat er civ il societ y inv olv em ent . Whet her pr iv at e sect or is r eally a par t of civ il societ y or not is m illion dollar quest ion which nobody dares t o answer. Concluding Rem a rk s For last t wo decades, t he m ain policy direct ion of t he subsequent nat ional governm ent s and t heir st at e count er par t s w as t o w it hdr aw gov er nm ent s r ole in healt h sect or . Dev elopm ent of a com prehensive healt h care syst em wit h t he aim t o provide universal access has been gradually narrowed down t o provision of basic prim ary level care for a t arget ed sect ion of populat ion. The not ions of overall developm ent of t he healt h syst em wit h int er- sect oral linkages wit h issues of livelihood, em ploym ent , working condit ions, availabilit y of food, safe drinking wat er and proper sanit at ion, upheld in Alm a- At a Declarat ion, have becom e t hings of t he past . Donor- driven priorit ies in policies have creat ed m ult iple vert ical st ruct ures, even wit hin t he healt h syst em . As a result , several parallel m achineries have been creat ed, but t he basic st ruct ure of public healt h has becom e w eak. I n NRHM, t he governm ent claim s t o st rengt hen healt h inst it ut ions, creat e a new arm y of volunt eers, and bring about decent ralizat ion, in a form which helps t o infuse donor- driven priorit ies int o planning and m onit oring. I t however, rest rict s any recruit m ent of crit ical hum an resources and neglect s t he issue of creat ing proper referral syst em up t o t he t ert iary level of care. Sim ilarly, issues of finances are also governed in a way as t o st ream line flow of funds but overlooking t he inst it ut ional gaps t o st rengt hen capacit ies t o ut ilize funds in a bet t er way. Anot her very dist urbing phenom enon is t he privat izat ion of healt h services. This has becom e so deep- r oot ed int o t he psy che of t he policy m ak er s and int o t he sy st em , t hat som et im es it becom es v er y difficult t o ev en ident ify t he nat ur e of it . For inst ance, t he audit of CSS like NRHM through em panelled audit ors is also in som e sense a privat izat ion of audit s, but rem ains disguised wit hin t he fram e of CSS. The nat ure of privat izat ion ranges from cont ract ing out hospit al m anagem ent services t o privat e players; allowing deliveries t hrough privat e nursing hom es under JSY; allowing privat e inst it ut ions t o provide m edical educat ion; em panelling ‘super- specialit y’ nursing hom es BACKGROUNDNOTE 56 in CGHS; t aking ser vices of gover nm ent doct or s by pr oviding cheap land and special concessions in set t ing up privat e hospit als. All t his happens w it hout any regulat ory m echanism in place. Wit h t he int roduct ion of General Agreem ent in Trade in Services and I ndia’s eagerness t o adopt it , in t he days t o com e, we are going t o see great er and ram pant privat izat ion, wit h t he involvem ent of Foreign Direct I nvest m ent . A st rong healt h m ovem ent involving every progressive sect ion of t he societ y, w it h t he vision of com pr ehensive and univer sal public healt h syst em can only br ing about r adical changes. Wit hout doubt , t here is an ent ire gam ut of issues concerning healt h in general w hich w ill be dir ect ly or indir ect ly dealt w it h in ot her sect ions of t he Back gr ound Not e. The issues of w at er supply and sanit at ion, livelihood and food securit y, em ploym ent , educat ion, uplift m ent of t he m ar ginalized sect ions of t he societ y w hich hav e v er y st r ong bear ing on t he healt h of t he societ y hav e not been cov er ed in t his sect ion. Also, t her e w ill num er ous issues concer ning t he healt h sect or , for inst ance t he issue of clinical t r ials, t he ent ir e field of I ndian Sy st em s of Medicine hav e also not been t ouched. The m ain aim of t his not e is t o t hrow light on som e of t he im port ant policy gaps, if not all, w hich require im m ediat e at t ent ion. Re f e r e n ce s: CBGA ( fort hcom ing) : Out lays t o out com es, dist rict level analysis of public spending on children GoI ( 2007) : Bullet in of Rural Healt h Service St at ist ics in I ndia, March 2007 w w w .m ohfw .nic.in GoI ( 2007) : Managing Hum an Resources for Healt h in I ndia 2007; Cent ral Bureau of Healt h I nt elligence, w w w .cbhidghs.nic.in. Go I ( 2 0 0 7 ) : N a t i o n a l H e a l t h Pr o f i l e 2 0 0 7 ; Ce n t r a l B u r e a u o f H e a l t h I n t e l l i g e n c e , w w w . cbhidghs. nic. in. GoI ( 2008) : Out com e Budget , Minist ry of Healt h and Fam ily Welfare. GoI : Expendit ure Budget Vol I & I I . www.indiabudget .nic.in I I PS ( 2007) : Nat ional Fam ily Healt h Survey ( NFHS 3) , Bom bay. JSA ( 2008) : Healt h Services and t he NRHM, June 2008, New Delhi. Saroj ini, N. B. et . al. ( 2006) : Wom en’s Right t o Healt h. Nat ional Hum an Right s Com m ission UNDP ( 2004) : Hum an Developm ent Report WHO ( 2005) : Nat ional Healt h Account s, Repor t of t he Com m ission on Macr oeconom ics and Healt h. I ndia. En d n o t e s: 1 High Focus St at es in NRHM ar e Bihar , Jhar k hand, MP, UP, Chhat t isgar h, Raj ast han, Ut t ar anchal, Jam m u and Kashm ir , St at es of Nor t h East and Sik k im . 2 I t is t o be n ot ed t h at f or t h e h ealt h sect or , plan an d n on - plan div ision is a lit t le m isgu idin g. Becau se plan ex pen dit u r es, w h ich sh ou ld act u ally be n ew in v est m en t s, in t h e h ealt h sect or d o n ot n ecessar ily m ean t h at sin ce a lar g e p ar t of p lan b u d g et s, f or ex am p le t h e en t ir e RCH an d Fam ily Welfar e budget , include r out ine line it em ex pendit ur es lik e salar ies, t r anspor t , office ex penses et c. an d v er y lit t le n ew in v est m en t . At t h e sam e t im e, if w e con sid er cap it al an d r ev en u e ex p en d it u r es d iv ision s, at least at t h e u n ion g ov er n m en t lev el t h er e r em ain s g r oss u n d er est im at ion s of cap it al ex p en d it u r e. Th is is b ecau se t h e g r an t - in - aid t o st at es f r om t h e cen t r e is r ev en u e ex p en d it u r e f or t h e cent r e but it m ay be spent by st at e t o cr eat e new facilit ies and it w ill be show n at st at e’s budget as capit al ex pendit ur e. Thus, analy sis of Union Budget for capit al ex pendit ur e w ill lead t o under est im at ions. Fur t her , giv en t h e m ech an ism of spen din g on NRHM t h r ou gh h ealt h societ ies, w h ich by pass t h e st at e bu dget s an d g oes d ir ect ly t o St at e Healt h Societ ies, cap it al ex p en d it u r e sh ow n in st at e b u d g et s w ill also b e an u n d er est im at ion. 3 Fu n ds u n der NRHM ar e pr ov ided t o t h e St at e Healt h Societ ies, con dit ion al t o t h e appr ov al of Pr ogr am I m plem en t at ion Plan s ( PI P) for each st at e. Th e RCH Flex ible Pool an d Mission Flex ible Pool for Par t A & B of t h e PI P, t h r ou gh w h ich flex ible fu n ds ar e pr ov ided t o SHSs t o spen d on t h eir ow n pr ior it ies, ar e w it h in t h e br oad gu idelin es of t h e NRHM. 57 BACKGROUNDNOTE Educa t ion For All or Educat ion Fa r Aw a y From All? Pooj a Pa r v a t i I n our at t em pt t o under st and t he pr ior it y giv en t o educat ion, a cr it ical sect or affect ing hum an developm ent in m ore ways t han one, by t he Union governm ent , t he People’s Budget I nit iat ive ( PBI ) has been r epor t ing t he st at us of r elev ant budget ar y and policy t r ends in educat ion. This y ear t oo, as a r un up t o t he Union Budget 2009- 10, t his not e look s at t he v ar ious sect or s w it hin educat ion, highlight s t he ov er all r elev ant budget ar y and policy aspect s and pr esent s a cr it ique of how t he gover nm ent has far ed on account of t he pr om ises m ade last year . Som e suggest ions for t he educat ion sect or focusing on Union Budget 2009- 10 have also been m ade. Union Budget 2009- 10 could be cr it ical in t er m s of t r eat m ent of key gover nance agenda depending on w hich grouping is in power aft er t he General Elect ions. Already, we are well int o t he Elevent h Plan period and t he direct ion t aken by t he polit ical leadership in t his regard is decisive in set t ing t he cour se for t he nex t few y ear s. While w e are all w ell aw are of t he several policy com m it m ent s m ade in t he field of educat ion, it w ould be useful at t his j unct ur e t o st at e t he Educat ion For All goals. ‘Educat ion for All’ w as t he m ot t o adopt ed by t he World Educat ion Forum held in Dakar, Senegal in April 2000 and t he six goals flagged by t his Forum , t o be at t ained by 2015, briefly sum m ed up, are as follows: - Expand early childhood care and educat ion - Provide free and com pulsory prim ary educat ion for all - Prom ot e learning and life skills for young people and adult s - I ncr ease adult lit er acy by 50 % - Achieve gender parit y by 2005, gender equalit y by 2015 - I m prove t he qualit y of educat ion I f w e choose not t o int erpret t he Dakar Goals in a narrow and convent ional m anner, t hese m ay be used as echoing t he philosophy t hat w as env isioned by t he Delor s Repor t , subm it t ed t o UNESCO in 1995, w hich found ‘learning t hroughout life’ as t he key t o a bet t er fut ure. This report put for w ar d a four - pr onged appr oach t o lifelong lear ning, w hich includes: schools, v ocat ional t r aining, univ er sit ies and adult educat ion, and each one of t hese ought t o be accor ded equal im por t ance in any societ y — schools cov er pr e- school/ k inder gar t en t o elem ent ar y and secondar y levels for all children; v ocat ional t r aining br oadly includes pr e- qualificat ion t o in- ser v ice t r aining; univ er sit ies m ay be t ak en as a shor t hand for t he ent ir e t er t iar y sect or ( fr om t he college lev el t o ot her form s of higher, including t echnical, educat ion) ; finally, adult educat ion should t ak e int o account t he diver se lear ning needs of t he younger adult s t o t he elder ly ( including t he adult lit eracy program m es) . I n t his cont ext , t he present not e w ill exam ine t he int er- sect oral t rends in financing in educat ion in t he count r y . Befor e t hat , a br ief r ev iew of t he ov er all budget ar y t r ends in educat ion would be useful. I . Trends in Governm ent Financing of Education in I ndia Table 1 pr ofiles t he cur r ent public spending lev els by select count r ies and it becom es clear t hat I ndia lags behind not only t he developed count ries but also developing count ries like Kenya, Cost a Rica, Republic of Korea and Brazil. BACKGROUNDNOTE 58 Ta ble 1 : Public Ex pe ndit ur e on Educa t ion in Se le ct Count r ie s a s % of GD P Cou n t r y N a m e 1998 1999 2000 2001 2002 2003 2004 2005 2006 Cu ba 6.7 7.5 7.2 9.0 8.9 9.2 9.6 9.8 9.1 Kenya 5.3 5.2 5.2 6.2 6.6 6.9 7.3 6.9 Malaysia 5.7 6.2 7.9 8.1 8.0 6.2 5.7 5.6 5.6 5.9 5.8 5.7 5.7 5.7 5.9 5.6 5.3 5.3 5.2 5.1 5.3 5.3 4.8 4.9 5.1 5.2 5.3 4.7 5.1 5.1 4.9 4.3 4.2 4.6 4.6 France 5.8 5.8 U.S.A. 5.0 5.1 Sout h Africa 6.0 5.6 Net her lands 4.7 4.6 Cost a Rica 4.9 4.9 Korea, Rep. 3.7 3.8 Br azil 4.9 3.9 4.0 3.9 3.8 Argent ina 4.0 4.5 4.6 4.8 4 .0 I n dia 3 .6 4 .5 4 .4 Japan 3.5 3.6 3.7 3.6 Philippines 4.2 3.5 4.4 5.4 4.7 4.0 3.5 3.8 3 .7 3 .8 3 .2 3.6 3.7 3.7 3.5 3.2 3.2 3.2 2.7 2.5 2.2 2.7 Bangladesh 2.4 2.4 2.5 2.3 2.4 Nepal 2.9 3.0 3.7 3.4 3.4 Sou r ce: Wor ld Ban k Ed u cat ion St at ist ics, v ar iou s y ear s As in ot her ar eas of econom ic and social developm ent , t he pr ogr ess on t he educat ional fr ont is also charact erised by t rem endous het erogeneit y at t he sub- nat ional levels, i.e., t here are significant int er - st at e as w ell as int r a- st at e differ ences. As per t he Const it ut ion of I ndia, public pr ov isioning of educat ion has prim arily been a responsibilit y of St at e governm ent s, alt hough t he Cent ral governm ent does play an im port ant role as educat ion is on t he ‘concurrent list ’. A look at t he educat ion expendit ure in I ndia present s dism al t rends ( Table 2) wit h an overall decline in public spending. Ta ble 2 : Public Ex pendit ure on Educa t ion a s a proport ion of GDP in I ndia I t em s 1 9 8 182 1985 86 1 9 9 091 1995 96 1999 2000 2 0 0 102 2003 04 2.64 2 0 0 405 ( RE) 2. 74 2 0 0 506 ( BE) 2. 69 Tot a l Edu ca t ion Ele m e n t a r y Se conda r y H igh e r Adult 2. 49 3.00 3. 59 3. 60 4.22 4. 18 1. 09 0. 81 0. 38 - 1.39 0.92 0.42 - 1. 58 1. 10 0. 36 - 1. 44 0. 98 0. 37 - 1.58 0.94 0.47 - 1. 66 0. 98 0. 43 - 1.31 0.84 0.32 0.0118 1. 40 0 .82 0. 31 0.0118 1. 42 0. 77 0. 29 0.0114 So u r ce : MHRD – An a l y si s o f Bu d g e t e d Ex p e n d i t u r e o n Ed u ca t i o n , v a r i o u s y e a r s. Ex pendit ur e on educat ion in I ndia is under t aken bot h by t he Cent r al gov er nm ent and t he St at e gover nm ent s. At bot h t hese levels, t he m aj or shar e of such spending is under t aken by t he r espect iv e Educat ion Depar t m ent s. How ev er , at bot h t hese lev els, ot her Depar t m ent s t oo incur expendit ures on educat ion in sizable am ount s. This aspect has been capt ured by t he dat a present ed in Table 3. As is evident , ‘Ot her Depart m ent s’ at t he Cent re undert ake significant am ount of spending on educat ion, w her eas, in case of t he St at es, t he spending on educat ion by Ot her Depart m ent s is at low er levels. Table 4 out lines t he governm ent spending per st udent at t he elem ent ar y, secondar y and higher st ages over a t en- year per iod ( 1993- 2003) and it finds t hat 59 BACKGROUNDNOTE spending ( in r eal pr ices) has show n a decline at t he higher educat ion level w hile t he incr ease at t he secondary level is m iniscule. Ta ble 3 : Ce n t r e a n d a ll St a t e s: Bu dge t Ex pe n dit u r e on Edu ca t ion by Edu ca t ion D e pa r t m e n t a n d Ot h e r D e pa r t m e n t s 1995-96 1996-97 1997-98 1998-99 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 RE 2006-07 BE Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centre States Centre + States Centr e States Centre + States Education Departm ent (in Rs. Crore) 3317.53 28789.66 32107.19 3672.61 33018.69 36691.3 4623.15 36888.96 41512.11 6324.3 45341.55 51665.85 7925.36 54965.41 62890.77 8053.2 57434.77 65487.97 9089.23 59854.37 68943.6 10177.47 63519.84 73697.31 13111.23 68850.29 81961.52 18336.34 80504.19 98840.53 24115.0 89298.75 113413.75 Other Departm ents (in Rs. Crore) 2233.49 4428.01 6661.5 2642.22 4882.62 7524.84 2498.86 4943.96 7442.82 3352.22 7001.43 10353.65 2270.7 17717.69 19988.39 6082.54 8935.46 15018 7067.38 9878.41 16945.79 6923.5 9110.82 16034.32 4914.73 10498.52 15413.25 5981.66 13046.62 19028.28 7058.36 13802.28 20860.64 Total (in Rs. Crore) 5551.02 33217.67 38768.69 6314.83 37901.31 44216.14 7122.01 41832.92 48954.93 9676.52 52342.98 62019.5 10196.06 72683.1 82879.16 14135.74 66370.23 80505.97 16156.61 69732.78 85889.39 17100.97 72630.66 89731.63 18025.96 79348.81 97374.77 24318.0 93550.81 117868.81 31173.36 103101.03 134274.39 Total Expenditure on Education as % to Total Budget of all Sectors 3.05 19.15 10.9 3.1 18.52 2.99 18.8 10.63 3.46 19.45 11.31 3.13 20.73 12.25 3.9 17.41 10.83 3.9 16.42 10.24 3.63 16.9 11.76 3.62 17.1 11.81 4.78 16.67 12.09 5.53 16.6 12.48 Sour ce: Com piled fr om “ Analy sis of Budget ed Ex pendit ur e on Educat ion” , Minist r y of HRD, Gov t . of I ndia - v ar ious issues; I ndian Public Finance St at ist ics, 2006- 07, Minist ry of Finance, June 2007 BACKGROUNDNOTE 60 Ta ble 4 : Tot a l Ex pe ndit ur e on Educa t ion a s % t o Tot a l Budge t of a ll Se ct or s – Ce nt r e , a ll St a t e s, a nd Tot a l Year Cent re All St at es and UTs Cent re and all St at es/ UTs 1995- 96 3.05 19.15 10.9 1997- 98 2000- 01 2.99 3.13 18.8 20.73 10.63 12.25 2002- 03 3.90 16.42 10.24 2003- 04 3.63 16.89 11.76 2004- 05 2005- 06 RE 3.62 4.78 17.1 16.67 11.81 12.09 2006- 07 BE 5. 53 16.6 12.48 So u r ce : Co m p i l e d f r o m “ An a l y si s o f Bu d g e t e d Ex p e n d i t u r e o n Ed u ca t i o n ” , Mi n i st r y o f Hu m a n Re so u r ce D e v e l o p m e n t , Go I , v a r i o u s y ear s No t e : Th e f i g u r e s f o r a l l y e a r s, e x ce p t 2 0 0 5 - 0 6 a n d 2 0 0 6 - 0 7 , a r e Act u a l s. Ta ble 5 : Pu blic Ex pe n dit u r e Pe r St u de n t – in Cu r r e n t Pr ice s a n d Con st a n t ( 1 9 9 3 - 9 4 ) Pr ice s ( I n Rs.) Ye a r ELEM EN TARY Con st a n t Cu r r e n t ( 1 9 9 3- 9 4 ) Pr ice s Pr ice s SECON DARY Con st a n t Cu r r e n t ( 1 9 9 3- 9 4 ) Pr ice s Pr ice s H I GH ER Con st a n t Cu r r e n t ( 1 9 9 3 -9 4 ) Pr ice s Pr ice s 1993 - 94 825 825 3748 3748 8961 8961 1994 - 95 1995 - 96 893 1052 793 865 4040 4517 3588 3 715 9821 9384 8722 7717 1996 - 97 1997 - 98 1220 1361 959 1025 4890 5221 3844 3932 8438 9003 6634 6779 1998 - 99 1654 1175 6285 4467 10238 7276 1999 - 00 2000 - 01 1792 1900 1233 1220 7392 7153 5087 4594 13219 13956 9097 8963 2001 - 02 2047 1269 6699 4153 12099 7501 2002 - 03 2003 - 04® 1977 2162 1185 1229 6641 6852 3982 3896 12294 12518 7370 7117 So u r ce: Rep o r t o f t h e W o r k i n g Gr o u p o n Hi g h er Ed u ca t i o n , 1 1 t h Fi v e Ye a r Pl a n While m any of t he social sect or act iv it ies, lik e pr ov isioning of educat ion and healt hcar e facilit ies, et c, in I ndia, are prim arily t he responsibilit y of t he St at e governm ent s, t he Cent ral governm ent has an im por t ant r ole t o play. How ever , given t he over all fiscal ar chit ect ur e in t he count r y, t he St at es ar e lar gely dependent on t he flow of funds fr om t he Cent r e for t aking new init iat ives in t hese ar eas as w ell as for im plem ent ing t he ongoing pr ogr am m es. I n such a scenar io, t he decline in dev olut ion of funds fr om t he Cent r e t o t he st at es m eans t hat social sect or ex pendit ur e by t he St at es m ay get under m ined and t he ov er all public ex pendit ur e m ay get const r ained ( Table 4) . As is well- known, during t he period of econom ic reform s since t he early 1990s, I ndian econom y has been subj ect ed t o cont r act ionar y m acr oeconom ic policies, and as usually happens in a cont ex t of ‘st r uct ur al adj ust m ent ’ scenar io, public inv est m ent in gener al and social sect or expendit ure in part icular got hit adversely. Furt herm ore, wit h t he Fiscal Responsibilit y and Budget Managem ent ( FRBM) Act in place, t her e is lit t le scope for t he m uch needed r ev er sal of t he cont r act ionar y policies. 61 BACKGROUNDNOTE Table 6 est im at es t he t ot al out lay s on educat ion by t he Cent r al gov er nm ent for last four y ear s. While t her e has been subst ant ial incr ease in allocat ion at t he elem ent ar y lev el, at t he higher st age, t he incr ease is only m ar ginal. Anot her significant aspect is t he alm ost absent capit al out lay s by t he Minist r y . Table 7 pr esent s t he t ot al out lay s on Educat ion, Spor t s, Ar t & Cult ur e by t he Cent ral Governm ent . Look ing at t he t ot al spending on Educat ion, Spor t s, Ar t s and Cult ur e fr om t he Budget s of all St at es and UTs, ( Table 8) bet w een 1990- 91 t o 2007- 08 BE, t he t rend reveals t hat revenue expendit ure has gone dow n and capit al out lay has increased but only m arginally. Ta ble 6 : Tot a l Out la ys on Educa t ion by t he Ce nt r a l Gove r nm e nt M inist r y of H um a n Re sour ce D e ve lopm e nt ( in Rupees crore) Ministry/ Dept School Education & Literacy Total Revenue Capital Higher Education Total Revenue Capital Actuals 2005- 06 Plan NonPlan Total Actuals 2006- 07 Plan Non Plan Tot al Revised 2007 -0 8 Plan NonPlan Total Budget 2008- 09 Plan Non - Plan Total 1 1 9 7 9 .5 11979.5 - 4 .5 4.5 - 1 1 9 8 4 .1 11984.1 - 1 6 8 9 2 .9 16892.9 - 4 .5 4.5 - 1 6 8 9 7 .5 16892.9 - 2 2 1 9 1 .0 22191.0 - 1000.3 1000.3 - 2 3 1 9 1 .3 23191.3 - 2 6 8 0 0 .0 26800.0 - 1 0 5 0 .0 1050.0 - 2 7 8 5 0 .0 27850.0 - 2 5 5 8 .6 2558.6 - 3266.7 3266.7 - 5 8 2 5 .4 5825.4 - 3 4 2 3 .7 3423.7 - 3 4 8 8 .3 3488.3 - 6 9 1 2 .0 6912.0 - 3 2 6 1 .3 3261.3 - 3136.0 3136.0 - 6 3 9 7 .3 6397.3 0.01 7 5 9 3 .5 7593.5 - 3 2 5 9 .3 3259.3 - 1 0 8 5 2 .8 10852.8 - So u r ce: Ex p en d i t u r e Bu d g et , Vo l u m e I , Un i o n Bu d g et D o cu m en t s 2 0 0 7 - 0 8 & 2 0 0 8 - 0 9 , Go v er n m en t o f I n d i a Ta ble 7 : Tot a l Out la ys on Educa t ion, Spor t s, Ar t & Cult ur e by t he Cent ra l Governm ent ( in Rupees crore) Maj or Head Re ve n u e Ex pe n dit u r e Gener al Educat ion 2202 Technical Educat ion 2203 Sport s and Yout h 2204 Ser v ices Art and Cult ure 2205 Ca pit a l Out la y Educat ion, Sport s, 4202 Art and Cult ure Loa n s & Ad v a n ce s Educat ion, Sport s, 6202 Art and Cult ure Act uals 2005 - 06 Act uals 2006 - 07 Revised 2007- 08 Budget 2008 -0 9 13882.82 1508.49 396.57 19891.41 1729.05 44 8.08 21844. 88 1989.34 625.66 27908.96 4160.24 764.69 632.67 685.70 834.83 902.59 28.48 17.40 37. 65 53. 85 - - 95. 21 132.74 So u r ce: An n u a l Fi n a n ci a l St a t em en t s, St a t em en t s 2 & 4 , Un i o n Bu d g et 2 0 0 7 - 0 8 & 2 0 0 8 - 0 9 , Go v er n m en t o f I n d i a Ta ble 8 : Tot a l Out la ys on Educa t ion, Spor t s, Ar t & Cult ur e fr om t h e Bu dge t s of a ll St a t e s & UTs ( 1 9 9 0 - 9 1 t o 2 0 0 7 - 0 8 BE) I t em 1 9 9 0 - 91 1995 96 2 0 0 001 2001 02 200203 2 0 0 304 2004 05 2 0 0 506 2 0 0 60 7 ( RE) 2007 0 8 ( BE) Share of Educat ion, Sport s, Art & Cult ure as proport ion of Revenue Expendit ure 44.20 44.25 46.77 45.51 45.51 43.73 42.14 39.00 39.00 37.9 Share of Educat ion, Spor t s, Art and Cult ure as proport ion of Capit al Out lay 0.81 0.69 0.35 0.47 0.42 0.51 0.65 0.90 1.10 1.1 Share of Educat ion, Sport s, Art and Cult ure as proport ion of Loans & Adv ances by St at e 0 0.0321 0.0002 0.0023 0.0248 0.0327 0.0760 0.9000 - 0 45.01 44.97 47.11 45.97 45.95 44.27 42.87 40.80 40.10 39.00 Tot al Expendit ure on Educat ion as a share of Tot al Social Sect or Spending So u r ce: Bu d g et D o cu m en t s o f St a t e Go v er n m en t s, St a t e Fi n a n ces: A St u d y o f Bu d g et s h t t p : / / w w w . r b i. or g . in / scr ip t s/ Pu b licat ion sView . asp x ?id = 1 0 0 1 5 BACKGROUNDNOTE 62 I I . Priorit isat ion of Educat ion Budget across Different Sect ors Pr e - sch ool Ed u ca t ion Wit h r espect t o pr e- school car e and educat ion, it is com m only per ceiv ed t hat t he fam ily is best placed t o look aft er t he childr en. While par ent s can t ak e t he best car e of t he childr en, it does not obv iat e t he need for social int er v ent ion, ow ing t o fact or s t hat affect par ent s and in t ur n, com e in t he w ay of adequat e car e of t he child, such as pov er t y and pow er lessness ( a phenom enon t hat can be check ed w it h ( as point ed out by t he Repor t t it led Focus on Children Under Six, 2006) long- t er m social int er v ent ions such as land r efor m s, em ploy m ent pr ogr am m es and incom e r edist r ibut ion) , easy access t o public facilit ies, lim it ed k now ledge of childcar e and nut r it ion and social nor m s. For all t hese, and sev er al ot her r easons, child car e m ust be v iew ed as a social r esponsibilit y, in t er m s of enabling par ent s t o t ake bet t er car e of t heir childr en w it h r egar d t o t he pr ov isioning for healt h, nut r it ion, pr e- school educat ion, r elat ed ser v ices and t he lar ger societ al cont ext conducive t o over all nur t ur ing of childr en. As an Afr ican pr over b, t r anslat ed in English, put s it succinct ly: ‘I t t akes a village t o r aise a child’. The 2001 Census est im at es t his dem ographic group t o be 16 % of t he t ot al populat ion. Recognizing t he im por t ance of giv ing special at t ent ion t o t hr ee sub- gr oups w it hin 0- 6 y ear s, t he Gov er nm ent in t he 10 t h Five Year Plan docum ent had m ent ioned it s int ent t o focus spending on t he t hr ee subgr oups t her ein, viz. infant s, t oddler s, and pr e- schooler s. I t is, of cour se, a shocking com m ent ar y of t he gov er nm ent ’s focus t hat in t he 11 t h Plan docum ent , pre- school educat ion finds no m ent ion when overall t rends in educat ion are exam ined. Wit h t he Right t o Educat ion Bill also having ‘left out ’ childr en below t he age of 6 year s fr om t he pur view of such a legislat ion, t his can only be seen as a callous neglect of t his cr it ical sect or . Fur t her , it is also w ell est ablished t hat enr olm ent r at es ar e det er m ined by t he em phasis giv en t o pr e- school com ponent of educat ion. I t also b ecom es clear t h at ad eq u at e allocat ion s h av e b een m issin g as r ev ealed b y b u d g et ar y com m it m ent s. I CDS being t he only m aj or program m e cat ering specifically t o t his age, ( of t he basic ser v ices offer ed under I CDS, pr e- school educat ion is one of t he t hr ee, t he ot her t w o being nut rit ion and healt h- relat ed) , it has been allocat ed Rs.5665 crore in 2008- 09 ( BE) w hich w orks out t o m uch less t han a r upee per child per day . Anot her ar ea sev er ely hit by inadequat e provisioning is t he Supplem ent ary Nut rit ion Program m e ( SNP) under I CDS wit h wide int er- st at e differences: for inst ance, t he governm ent of Bihar w as spending about Rs.0.15 per child per day w hile t he cor r esponding figur e for Tam il Nadu w as Rs.1.20 for childr en below six year s ( as report ed by t he FOCUS field survey on I CDS in 2004 in select st at es) . As regards public provisioning for pre- school educat ion under I CDS, t he FOCUS survey show s t hat dem and for it is pr opor t ionat e t o aw ar eness and educat ion lev els of par ent s. Fur t her , it also not es t hat developm ent needs of childr en ar e not pr oper ly under st ood by com m unit ies, t hus, m ak ing it difficult t o appr eciat e t he im por t ance of pr e- school educat ion. Social bar r ier s ( of cast e, gender and physical disabilit ies) and special needs ( of children of m igrant fam ilies and wom en em ployed in t he inform al sect or) also com pound t he problem of assessing progress m ade by schem es such as I CDS as discrim inat ion and inequit y cont inue t o be crit ical issues in m any part s of t he count r y . Sev er al field r epor t s hav e ex pr essed deep concer n about t he funct ioning of pr eschool educat ion in m any anganw adis. Phy sical const r aint s of space and ot her basic facilit ies, com bined wit h lack of t rained anganwadi workers, lead t o low qualit y result s. Ele m e n t a r y Ed u ca t ion Focusing at t he elem ent ar y st age, it is int er est ing t o not e t hat in spit e of at t aining univ er sal pr im ar y educat ion long ago, developed count r ies, alm ost w it hout except ion, cont inue t o put subst ant ial r esour ces, t o sust ain qualit y educat ion at t his lev el. I n an at t em pt t o m ak e a quick com parison, in t erm s of US dollars, adj ust ing for purchasing power parit y ( 2000 est im at es) , w hile count ries like U.S.A spent as m uch as 679.54 dollars per capit a, Net herlands and Japan were com parable and in t he range of 360- 380 dollars. While Sout h Africa spent 311.6 dollars, t he com parable est im at e for I ndia was a m ere 43 dollars. Low est im at es of public spending by China at about 26.5 dollars could be explained by t he difference in m et hodology adopt ed. 63 BACKGROUNDNOTE Most account s seem t o suggest t hat in several developing count ries, including I ndia, considerat ions of qualit y of educat ion at all lev els, including at t he elem ent ar y st age, w hich has been at t he cent r est age in t he r ecent official discour ses, cont inue t o cr eat e a huge sense of discom for t . Meet ing basic lear ning needs of childr en is obviously t he foundat ion of all educat ional endeavor s, but m erely expanding t he num ber of schools and get t ing children int o t hem w ould t ranslat e t o not hing if t he st andar d/ qualit y of educat ion w er e not sat isfact or y . Tables 9( a) & 9( b) giv e a snapshot of t he elem ent ar y sect or in t he count r y . While sev er al fact or s ar e lik ely t o influence qualit y of educat ion, key aspect s include provisioning of resources, curriculum , learning m at erial, pedagogic pr ocesses, et c. Ta ble 9 ( a ) : Pr ogr e ss in Ele m e n t a r y Edu ca t ion Sin ce 1 9 9 9 I n dica t or s Prim ary Schools Upper Prim ary Schools Teachers in Prim ary Teacher in Upper Prim ary Enrolm ent in Prim ary 1999 -2000 642000 198000 1919000 1298000 11.36 crore 2 0 0 4- 0 5 767520 274731 2310800 1439146 13.16 crore Enrolm ent in Upper Prim ary 4.2 crore 5.16 crore Public Expendit ure on Educat ion ( % of GDP) 3.77% 3.74% ( 2003- 04) Sour ce: Select ed Educat ion St at ist ics, MHRD Ta ble 9 ( b) : Gr ow t h of Edu ca t ion a l I n st it u t ion s sin ce 1 9 9 9 Year 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 Annual Rat e of Grow t h since 199798 Sour ce: Select ed Educat ion St at ist ics, Pr im a r y U ppe r Pr im a r y 641695 198004 638738 664041 651382 206269 219626 245274 710471 767520 262649 274731 2.7% 6.9% Pr y vs U. Pr y Sch ool 3.2 3.1 3.0 2.7 2.7 2.8 MHRD Fur t her , a v ar iet y of undesir able feat ur es ar e gaining gr ound, and am ong t hese, gr ow ing inform alisat ion of elem ent ary educat ion service delivery should be considered a m aj or cause of concer n. I n an effor t t o cut dow n cost s, concer ns of qualit y hav e been giv en a shor t shr ift w it h even t he form al inst it ut ions get t ing inform alised in a variet y of w ays; one of t he m ost obvious m anifest at ions of t his grow ing m alaise is t he adopt ion of t he para t eacher schem es alm ost all over t he count ry 1 . Such schem es rely for educat ion delivery on cont ract t eachers whose recruit m ent pr ocedur es, r em uner at ion, ser v ice condit ions, et c, ar e ent ir ely differ ent fr om r egular t eacher s. Educat ional out com es depend on t he num ber of t eacher s and t heir qualificat ions, pr evailing pedagogy, availabilit y of t eaching and lear ning m at er ials ( TLM) in schools such as t ext books and black boar ds, and t he use m ade by t eacher s of t hese facilit ies in act ual classr oom act iv it ies, am ong ot her fact or s. Av ailable ev idence suggest s t hat on sev er al of t hese count s, gr ound r ealit y in I ndia is deeply unsat isfact or y . For inst ance, as alr eady not ed in t he for egoing, t her e ar e st at es in I ndia where pupil- t eacher rat io is alm ost abysm al. Addit ionally, given t he large presence of single and t w o- t eacher schools, t her e is m ult i- gr ade t eaching, a fact t hat det r act s fr om t he qualit y of t eaching even fur t her . These differ ent elem ent s influencing educat ional out com es can be t hought of as com pr ising basic com ponent s of ‘qualit y ’ of educat ion. Given t he inadequat e suppor t t o t he gover nm ent schools, it is har dly sur pr ising t hat t he num ber of privat e- run schools have been gradually on t he rise ( Table 10) . As is w ell know n, out of pocket ex pendit ur e on educat ion has been r ising at a v er y significant pace in t he r ecent t im es, as per t he last few r ounds of t he NSS dat a. This is int er pr et ed as a ‘v olunt ar y ’ m ov e out of gov er nm ent BACKGROUNDNOTE 64 schools w hich, in t ur n, m ay becom e an alibi for fur t her inadequat e policy at t ent ion t o such schools. As per t he Working Class I ncom e & Expendit ure Survey 1999- 2000, expendit ure on educat ion of childr en has incr eased t he m ost for w or king class fam ilies. This is clear w hen w e observe t hat an average working class fam ily was spending around Rs. 25 per m ont h on educat ion of t heir children in 1981- 82 which rose by around 1150 % or by alm ost 12.5 t im es t o Rs. 306 per m ont h in 1999- 2000. Tables 11 t o 15 highlight t he lev el of inequit y , ex clusion focusing on indicat or s such as gender , dr op out r at es, pupil t eacher r at io, and ot her aspect s of phy sical infr ast r uct ur e. Ta ble 1 0 : Gr ow t h of Pr iva t e Schools Pr oviding Ele m e nt a r y Educa t ion Year Gove r nm e nt Pr iv a t e Tot a l 1903 107196 38678 145874 Pr iva t e Schools a s % t ot a l 26.5 1973 495758 53392 549150 9. 7 1979 534260 45780 580040 7. 9 1986 705560 113404 818964 13.8 2002 755792 140594 896386 15.7 2003 794265 125842 920107 13.7 2005 88054 5 157268 1037813 15.2 2006 929345 189521 1124033 16.8 2007 967263 225691 1196663 18.8 N o t e : Go v er n m en t i n cl u d es b o t h g o v er n m en t an d l o cal b o d i es Pr i v a t e i n cl u d e s p r i v a t e a i d e d , p r i v a t e u n a i d e d a n d p r i v a t e u n a i d e d u n r e co g n i ze d . I t i s p o ssi b l e t h a t t h e n u m b e r o f p r i v a t e sch o o l s r e p o r t e d h e r e i s a n u n d e r e st i m a t e w h a t w i t h a l m o st e v e r y t o w n i n t h e co u n t r y h a v i n g se t u p m a n y ‘ e d u ca t i o n sh o p s’ i n t h e n a m e o f schools! Source: 1 9 0 3 f i g u r e t a k e n f r o m “ St a t i st i ca l Ab st r a ct Re l a t i n g t o Br i t i sh I n d i a 1 9 0 3 - 1 9 1 2 , D i g i t a l So u t h Asi a Li b r a r y ; 1 9 7 3 f i g u r e t ak en f r om Th ir d All I n d ia Ed u cat ion Su r v ey ; 1 9 7 9 f ig u r e t ak en f r om Fou r t h All I n d ia Ed u cat ion Su r v ey ; 1 9 8 6 f ig u r e t ak en f r om Fif t h All I n d i a Ed u ca t i o n Su r v e y ; 2 0 0 2 f i g u r e t a k e n f r o m Se v e n t h Al l I n d i a Ed u ca t i o n Su r v e y ; 2 0 0 3 , 2 0 0 5 , 2 0 0 6 a n d 2 0 0 7 f i g u r e s t a k e n f r o m El em en t ar y Ed u cat i o n i n I n d i a: An An al y t i cal Rep o r t . Ta ble 1 1 : Enr olm e nt of Gir ls pe r H undr e d Boys a t D iffe r e nt Le ve ls of Educa t ion Year 1950 - 5 1 1960 - 6 1 1970 - 7 1 1980 - 8 1 1990 - 9 1 2000 - 0 1 2001 - 0 2 2002 - 0 3 2003 - 0 4 2004 - 0 5 Pr im ar y ( I - V) 39 48 60 63 71 78 79 88 88 88 Upper Pr im ar y ( VI - VI I I ) 18 32 41 49 58 69 72 78 79 80 Secondar y ( I X- X) 16 23 35 44 50 63 65 70 70 71 Sour ce: Select ed Educat ional St at ist ics 2004- 05 Ta ble 1 2 : D r op- ou t Ra t e s a t Pr im a r y a n d Uppe r Pr im a r y Le v e ls ( 1 9 9 9 - 2 0 0 5 ) 1 9 9 92000 Class I - V Boys 38.7 Girls 42.3 Tot a l 4 0 .3 St a g e 2000 01 2001 02 2 0 0 203 2 0 0 304 2 0 0 405 39.7 41.9 4 0 .7 38.4 39.9 3 9 .0 35.9 33.7 3 4 .9 33.7 28.6 3 1 .5 31.37 24.82 2 8 .4 9 65 BACKGROUNDNOTE 1 9 9 92000 Cl a s s I - V I I I Boy s 52.0 Gir ls 58.0 Total 200001 200102 2002 03 200304 200405 50.3 57.7 52.9 56.9 52.3 53.4 51.8 52.9 5 3 .7 5 4 .6 5 2 .8 5 2 .3 50.10 50.76 5 0 .3 9 St a g e 5 4 .5 Sou r ce: Sel ect ed Ed u cat i on St at i st i cs, MHRD Ta ble 1 3 : D r op- ou t Ra t e s a m on g Socia l Gr ou ps - SCs & STs ( 2 0 0 1 - 0 4 ) Cl a s s I – V I I I Cl a s s I – V S Cs / S T s 2001-02 Bo y s 43.73 200203 41.13 2 0 0 3 -0 4 2 0 0 1 - 0 2 2 0 0 2- 0 3 2 0 0 3 - 04 36.83 58.61 58.24 57.33 Gi r l s 47.05 41.91 36.19 63.63 62.19 62.19 To t a l ( SCs) 4 5 .1 8 4 1 .4 7 3 6 .5 7 1 .1 4 5 9 .9 1 5 9 .4 2 Bo y s 51.04 50.82 49.13 67.28 66.86 6 9.04 Gi r l s 54.07 52.1 48.67 72.69 71.17 71.43 To t a l ( STs) 5 2 .3 4 5 1 .3 7 4 8 .9 3 6 9 .5 2 6 8 .6 7 7 0 .0 5 Sou r ce: DI SE, Select ed Ed u cat ion St at ist ics Ta ble 1 4 : Som e I ndica t or s of ‘W or se Off’ D ist r ict s in I ndia in t e r m s of Ele m e nt a r y Educa t ion Num ber of St a t e s Num ber d i s t r i ct s St u d e n t : Cl a s s r o o m Ra t i o ( Pr i m a r y ) Mo r e t h a n 6 0 : 1 ( Ap p r o p r i a t e : Le s s t h a n 4 0 : 1 ) Pu p i l : Te a c h e r Ra t i o ( Pr i m a r y ) Mo r e t h a n 6 0 : 1 ( Ap p r o p r i a t e : Le s s t han 40: 1) Pr i m a r y t o U. P. S c h o o l Ra t i o m o r e t h a n 4 : 1 ( At l e a s t 2 : 1 o r l o w e r ) 3 116 3 119 1 96 Ge n d e r Ga p ( U . Pr i m a r y ) m o r e t h a n 1 5 % a g e p o i n t s 3 160 % ag e ou t of sch ool ch i l d r en ( 6 - 1 4 ) m o r e t h a n 1 5 % 2 50 8 194 I n d ica t o r s D r o p o u t r a t e s ( Pr i m a r y S t a g e ) m o r e t h a n 1 5 % D I SE 2 0 0 4 - 0 5 Ta ble 1 5 : Ke y I ndica t or s highlight ing Acce ss a nd I nclusion in Ele m e nt a r y Educa t ion in I ndia ( 2 0 0 4 - 0 7 ) Ke y I n d i ca t o r s % Sch ools w it h ou t Pu cca Bu ildin g Av er age No. of Classr oom s % Sch ools w it h ou t Dr in k in g Wat er Facilit y % Sch ools w it h Com m on Toilet s % Sch ools w it h ou t Gir l’s Toilet s % Sch ools w it h ou t Bou n dar y Wall % Sch ools w it h ou t Com p u t er s % Sch ools w it h ou t Ram p % Sch ools w it h ou t Kit ch en Sh eds Av er ag e St u d en t- Classr oom Rat io ( SCR) % Sch ools w it h SCR > 6 0 % Single - t each er Sch ools % Sch ools w it h PTR > 6 0 % Sch ools w it h PTR > 1 0 0 So u r ce : D I SE 2 0 0 6 - 0 7 : Fl a sh St a t i st i cs BACKGROUNDNOTE 66 2006-07 29.37 4.1 15.11 58.13 57.42 5 0 .74 86.57 73.39 70.64 36 16.45 11.76 15.94 4.94 of Table 16 out lines t he Cent ral governm ent spending on t he t w o flagship schem es focusing on elem ent ar y educat ion since 2003- 04. I n case of Sa r va Sh ik sh a Abh iya n ( SSA) , t he union budget out lay had been gradually st epped up from Rs. 4754 crore in 2004- 05 ( RE) t o Rs. 12020 crore in 2007- 08 ( RE) , but it has been reduced t o Rs. 11940 crore in 2008- 09 ( BE) . This is because of t he change in SSA’s pat t er n of fund shar ing bet w een Cent r e and St at es for t he 11 t h Plan per iod, w hich now r equir es t he financial bur den ( for SSA) on t he St at es t o incr ease pr ogr essiv ely up t o 2011- 12, w hen t he pat t er n of fund shar ing bet w een Cent r e and St at es would reach 50: 50. While t he Cent ral governm ent has been reit erat ing it s concern for universalizing elem ent ar y educat ion in t he count r y and m any of t he st at es ar e unable t o st ep up t heir educat ion budget s significant ly under t he rest rict ions im posed by t heir Fiscal Responsibilit y Legislat ions, such a st ep from t he Cent ral governm ent is highly quest ionable. Moreover, SSA is one of t he few schem es in w hich t he abilit y of t he St at es t o ut ilize available am ount s of funds has im proved significant ly dur ing t he last five year s. Hence, t he Cent r e should have pr ovided significant ly great er m agnit ude of funds for SSA during t he 11 t h Plan period rat her t han shift ing a great er part of t he financial bur den on t o t he St at es. I n case of M id D a y M e a l ( M D M ) schem e, t he out lay has been increased progressively from Rs. 1508 crore in 2004- 05 ( RE) t o Rs. 7200 crore in 2008- 09 ( BE) . However, t he coverage of t his schem e has been ext ended in 2008- 09 and it would now cover upper prim ary schools ( along w it h pr im ar y schools) in all blocks acr oss t he count r y. Hence, t he incr ease in out lay in 2008- 09 as com pared t o 2007- 08 ( RE) , which is around Rs. 1200 crore, m ight not be adequat e. More im port ant ly, field level invest igat ions on im plem ent at ion of MDM schem e ( based on prelim inary findings of a st udy by CBGA, New Delhi, t it led “ Dist rict Level Analysis of Public Spending on Children” in 2007- 08) reveal t hat t here is clearly a need for m ore funds for som e of t he com ponent s of t his schem e, such as, conv er sion cost , k it chen dev ices, r em uner at ion for cook s, t r anspor t at ion cost s and m anagem ent , m onit oring and evaluat ion ( MME) of t he schem e. Hence, t he m agnit ude of funds current ly provided for MDM is inadequat e and t he Cent ral governm ent needs t o increase t he sam e adequat ely. Ta ble 1 6 : Un ion Bu dge t Ou t la ys for Fla gsh ip Sch e m e s in Ele m e n t a r y Edu ca t ion ( in Rs. Cr or e) Fla gship Pr ogr a m m e / Sche m e Sa r va Shik sha Abhiya n ( SSA) [ excluding lum psum provision for Nort h East ern Region & Sikkim ] M id D a y M e a l Sche m e [ ex cluding lum psum provision for Nort h East ern Region & Sikkim ] 200304 RE 2 0 0 405 RE 200506 RE 2006 07 RE 200708 RE 200809 BE 2732 4754 7166 10146 12020 11940 1375 1508 3011 4813 6004 7200 Sou r ce : Com piled fr om Expendit ure Budget Vol. I I ( Not es on Dem ands for Grant s) , Union Budget, various years. Se con d a r y Ed u ca t ion Wit h t he opening up of t he I ndian econom y t o t he w or ld, t he r apid changes w it nessed in science and t echnology , t he pr essing need t o im pr ov e qualit y of life and t o r educe pov er t y , it becom es m ore urgent t hat ever before t hat school leavers acquire higher levels of know ledge and skills t han w hat t hey ar e pr ov ided in t he 8 y ear s of elem ent ar y educat ion. The secondar y st age has r eceiv ed inadequat e at t ent ion in public policy discour ses in I ndia, alm ost t hr oughout t he post I ndependence per iod, and t he neglect in t er m s of it s pr ov isioning by t he St at e has becom e ev en m or e acut e in t he last couple of decades. Look ing at t he t r ends in financing of secondar y educat ion sect or , as per t he Repor t of t he “ Com m it t ee on Nat ional Com m on Minim um Program m e’s com m it m ent of 6% GDP t o Educat ion” under t he Chairm anship of Professor Tapas Maj um dar, secondary educat ion received 0.82% of GDP in 2004- 05, w her eas it has been r ecom m ended by t he CABE Com m it t ee on Financing Educat ion t hat out of 6% GDP t o be dev ot ed t o educat ion, 1.5% should be t ow ar ds secondar y 67 BACKGROUNDNOTE educat ion. Thus, t her e is a differ ence of 0.62% of GDP t o t he ex t ent of w hich secondar y educat ion can be said t o be under - funded. I f secondar y educat ion has t o be pr ov ided univ er sal access, t he m aj or init iat ive has t o be from t he Cent ral Governm ent and hence a large share of addit ional funding required m ay have t o be provided t o by t he Cent ral Governm ent . Since it is a highly product ive invest m ent for t he fut ure, and t he quant um of addit ional invest m ent is only a sm all fract ion of t he t ot al Budget of Governm ent of I ndia, it w ould be in t he int erest of t he fut ur e of t he I ndian econom y and societ y t o adequat ely fund t his sect or . Higher Education The st or y w it h t he higher levels of educat ion is alm ost sim ilar . The sit uat ion has not changed m uch since last y ear w hen t he Hum an Resour ce Dev elopm ent Minist er Ar j un Singh t er m ed higher educat ion t o be t he ‘sick child’ of educat ion and called for academ ics t o “ com e t o t er m s w it h r ealit y ” . The Minist er also called upon t he Vice Chancellor s t o define t he par am et er s of higher educat ion — t he cont ent , t he ex t ent of higher educat ion, t he m et hodology of t eaching and t he basic ingredient s of t he syllabus. I t hardly needs em phasis t hat a vibrant and equit able sy st em of higher educat ion t hat encour ages qualit y lear ning as a r esult of bot h t eaching and r esear ch is fundam ent al for any k ind of success in t he em er ging k now ledge econom y . The developed w or ld appr eciat ing t his fact believes t hat any am ount of invest m ent in higher educat ion is purely legitimate (Prakash, Ved; Tr “ ends in Gr ow t h and Financing of Higher Educat ion in I ndia” , Econom ic and Polit ical Weekly, August 4- 10, 2007) . As against a m eager 0.37% share of GDP spending on higher educat ion in I ndia, t he USA ( 1.41% ) , t he UK ( 1.07% ) and even China ( 0.5% ) spend considerably m ore. The Nat ional Knowledge Com m ission est im at es t hat a m inim um of 1.5% of t he GDP m ust go t ow ar ds higher educat ion, out of a t ot al of 6% for educat ion as a w hole. Wit h regard t o t he increasing t rend observed in t erm s of privat izat ion of higher educat ion, it m ay be of int er est t o not e t hat , alt hough t her e is a consider able shar e of pr iv at e sect or in higher educat ion ( in t he for m of pr iv at e inst it ut ions) in count r ies lik e t he USA ( 59.4% ) , Ger m any ( 29.5% ) , I srael ( 14% ) , and China ( 39.1% ) , st udent preference cont inues t o t ilt t ow ard public inst it ut ions; t his is evident from t he share of enrolm ent in privat e inst it ut ions for t he aforesaid count ries w hich are, 23.2% , 3.7% , 11% and 8.9% respect ively, as report ed in 2005 2 . Th e com parable figures for I ndia ( 63.21% as t he share of privat e sect or) are 51.53% . This, in large m easur e, connot es t hat , cont r ar y t o t he t r end in I ndia, higher educat ion is st ill t aken m or e seriously as a ‘public’ service in t hese count ries, and com pares w ell, in t erm s of qualit y, w it h pr iv at e inst it ut ions. Wit h r egar d t o funding higher educat ion, t he sect or has been affect ed by t he v agar ies of budget m ak ing along w it h t he changing concer ns of t he gov er nm ent t ow ar ds educat ion. I t is not ed t hat ( Chat t opadhyay, Saum en, “ Exploring Alt ernat ive Sources of Financing Higher Educat ion” , Econom ic and Polit ical Weekly, Oct ober 20, 2007) t he shar e of t ot al expendit ur e on higher educat ion by Governm ent of I ndia fell t o 16.7 % in 1996- 97 from 20.6 % in 1990- 91, clim bing t o 26 % in 1998- 99 t o fall again t o 19 % in 2003- 04. As a proport ion of GDP, t he share of higher educat ion has been declining as not ed in Table 2 above. Adu lt Edu ca t ion I n t he cont ex t of v iew ing educat ion holist ically , as under EFA, it is w or t h st r essing t hat in m ost developing count ries, a vit al segm ent oft en ignored is adult educat ion and t he provisions for it ar e neit her sufficient in quant it y nor in qualit y . I t is obv ious t hat at t ent ion m ust be paid t o increasing and sust aining adult part icipat ion rat es; appropriat e policies and inst it ut ions are obvious ar eas of cor e concer n in t his r espect and, needless t o add, t hat t he sit uat ion in dev eloping count r ies t end t o be m uch w or se. As is w ell know n, adult educat ion pr ogr am m es ar e cr it ical for sev er al social gr oups, e.g. t hose unsuccessful in school and v ocat ional educat ion and lack ing m ot ivat ion; wom en owing t o t heir t win roles as care- givers ( in fam ily) and workers; and households on account of financial st r ess, besides t he m ult it ude of illit er at e adult s in our count r y. I deally t hen, adult lear ning w ould fost er act iv e cit izenship, st r engt hen per sonal gr ow t h, secur e social inclusion and t hus go far beyond ‘em ployabilit y’. Wit h regard t o public financing of adult educat ion, t r ends acr oss t he w or ld, m or e so in developing count r ies, r eveal inadequat e allocat ions and ad- BACKGROUNDNOTE 68 hocism . Also, t he shar e of out of pock et ex pendit ur e by cit izens on adult educat ion has t ended t o be on t he r ise and needs t o be v iew ed w it h caut ion. Table 2 clear ly show s t he dr ast ic under spending t ow ards t his level. I t is also necessar y t hat besides gener al educat ion up t o secondar y lev el, oppor t unit ies for im provem ent of vocat ional knowledge and skill should be provided at t he secondary educat ion level onwards t o enable em ployabilit y. I n t his respect again, I ndia’s record is quit e dissat isfying. Even t hree years aft er graduat ion, over 60% of all graduat es rem ained unem ployed. Alt hough a significant pr opor t ion of appr ent ices find em ploym ent , close t o t w o- t hir ds of t his populat ion is not em ployed in t he t r ade for w hich t hey w er e t r ained – a t hir d of t hese had been t r ained in obsolet e t r ades. Ther e appear t o be t hr ee r easons for t his: ( a) lim it ed gr ow t h and labor dem and in t he m anufact ur ing sect or , ( b) m ism at ch bet w een t he skills at t ained and t hose act ually in dem and, and ( c) m ism at ch bet w een t he skills t aught and t he gr aduat es’ ow n labor m ar ket obj ect ives. According t o reliable est im at es, t he vocat ional educat ion st ream is quit e sm all enrolling less t han 3% of st udent s at t he upper secondar y lev el. I n per capit a t er m s, v ocat ional educat ion is cost lier t han gener al educat ion; how ev er public ex pendit ur e on v ocat ional educat ion has been ex t r em ely low , as com par ed t o gener al secondar y educat ion. Giv en t he dem and for sk illed m anpow er in m anufact uring and services, t he governm ent should aim t o spend at least 10 15% of it s t ot al public ex pendit ur e on educat ion, on v ocat ional educat ion, as r ecom m ended by t he Nat ional Knowledge Com m ission in Decem ber 2006. Vocat ional educat ion cour ses ar e offer ed in schools ( at classes XI and XI I ) and ar e aim ed at pr epar ing st udent s for ent r y int o t he labor m ar k et . I t has been obser v ed t hough t hat st udent s in t he v ocat ional st r eam appear int ent on ent er ing higher educat ion. I nt er nat ional ex per ience suggest s t hat em ployer s m ost ly w ant young w or ker s w it h st r ong basic academ ic skills, and not necessarily vocat ional skills. To m ake t he exist ing vocat ional educat ion syst em relevant t o m arket needs, a m aj or rest ruct uring of t he syst em and how it is m anaged w ill be needed. N CMP Com m it m ent s: A Review Rai se p u b l i c sp en d i n g o n ed u cat i o n t o 6 % o f GD P Th e b u d g et o u t l ay f o r t h e Ed u cat i o n D ep ar t m en t s o f cen t r e an d st at es co m b i n ed r em ai n ed at a m eag er 2 . 8 4 % o f GD P i n 2 0 0 7 - 0 8 . We m ay n o t e h er e t h at t h e t o t al b u d g et o u t l ay o n ed u cat ion in I n d ia, i. e. in clu d in g t h e b u d g et ou t lay s f or Ed u ca t i o n D ep a r t m en t s an d ed u ca t i o n - r elat ed ser v ices d el i v er ed b y t h e Ot h er D ep a r t m en t s 1 of t h e cen t r e an d st at es co m b i n ed , i s est i m at ed t o h av e b een 3 . 5 4 % o f t h e GD P i n 2 2 0 0 6 - 0 7 ( BE) . Th u s, ev en af t er f ou r y ear s of t h e UPA Gov er n m en t st ay i n g i n p o w er , t h e NCMP p r o m i se o f r ai si n g t h e cou n t r y ’s t ot al p u b lic sp en d in g on ed u cat ion t o 6 % of GDP r em ai n s u n f u l f i l l ed . I n t r od u ce a cess on all cen t r al t ax es t o f i n an ce t h e co m m i t m en t t o u n i v er sal i ze access t o q u al i t y b asi c ed u cat i o n Al t h o u g h , in t r od u ct ion of an Ed u cat ion Cess w as a w elcom e m o v e b y t h e g o v er n m en t , i t w as ex p ect ed t h at t h e p r o ceed s w ou l d com p l em en t t h e g ov er n m en t ’s ow n i n i t i at i v es r at h er t h an su b st i t u t i n g t h e sam e. Ho w ev er , i f ad j u st m en t s ar e m ad e f or t h e ex t er n al su p p or t as w ell as Ed u cat ion Cess, t h e p r o p o r t i o n a t e co n t r i b u t i o n m a d e f r o m t h e r eso u r ces o f t h e p r esen t g o v er n m en t i t sel f h as i n f act d ecl i n ed f r o m ar o u n d 6 8 % i n t h e y ea r 2 0 0 1 - 0 2 RE t o ar o u n d 3 5 % i n 2 0 0 7 - 0 8 BE a n d 3 1 % i n 2 0 0 8 - 2 0 0 9 BE. Tab le a b ill on ed u cat ion as a f u n d am en t al r ig h t Th e Ce n t r e h a s r e– d r af t ed t h e Rig h t t o Ed u cat ion Bill, ( 2 0 0 8 ) alt h ou g h t h er e r em ain st r on g cr it icism on t h e p r ov ision s ( or t h e lack t h er eof ) in t h e Bill, in it s p r esen t f or m . Cov er ag e of MDM; 1 2 cr or e ch ild r en , 9 . 5 lak h g ov t . sch ools Up g r ad at ion of n u t r it ion al n or m s h as occu r r ed Pr o v i si o n h as b een m ad e t o ex t en d t h e sch em e i n u p p er p r i m ar y l ev el i n 3 , 4 7 9 ed u cat i on al l y b ack w ar d b l ock s. Th e Ko t h ar i Co m m i ssi o n w as t h e l ast co m m i ssi o n set u p o n ed u cat i o n i n 1 9 6 4 . Ho w ev er , a n ew Ed u cat i o n Co m m i ssi o n h as n ot y et b een set u p . A Nat i o n al Kn o w l ed g e Co m m i ssi o n w as set u p i n Oct o b er 2005. New f u n d i n g p at t er n f o r SSA i n t h e XI t h Pl an w i t h t h e f i r st t w o y ear s f ollow in g 6 5 : 3 5 ( Cen t r e: St at e sh ar e) an d su b seq u en t ly t ap er in g it of f t o 5 0 : 5 0 b y t h e en d of t h e Plan p er iod . This can o n l y b e seen as a cl ear w i t h d r aw al b y t h e Cen t r e f r o m i t s com m it m en t t o p r ov id in g u n iv er sal elem en t ar y ed u cat ion . En su r e n at i o n w i d e co v er ag e o f t h e m i d d ay m eal p r o g r am m e Est ab lish t h e Nat ion al Com m ission on Ed u cat io n Set u p Kn o w l ed g e Co m m i ssi o n i n Jan u ar y 2 0 0 5 Rev i ew Sa rv a Sh i k sh a Ab h i y an an d t h e p r og r ess i n ach i ev i n g p r i m ar y ed u cat ion g oals 69 BACKGROUNDNOTE I I I . Suggest ions for Provisioning for Educat ion in Union Budget 2 0 0 9 - 1 0 1. Fu n da m e n t a l Righ t t o Edu ca t ion – The Right t o Educat ion Bill ( 2008) , in it s present form , is but a v indicat ion of w hat t he educat ionist s and civ il societ y act iv ist s hav e been fear ing for a w hile now , t hat t he governm ent is not serious about put t ing a com prehensive legislat ion in place. While t he effor t s m ay be laudable, t he pr ovisions leave m uch t o be desir ed. I t is im per at iv e t hat specific concer ns w it h r egar d t o t he Bill ar e addr essed: Financing aspect s: A clear com m it m ent on t he par t of t he Cent r e t o pr ov ide all t he addit ional funding required t o ensure t he Right t o Educat ion I nclusion of children below 6 years of age w it hin t he purview of t he Right 2. 6 % of GDP for Educa t ion – We need t o reit erat e our dem and for allocat ing m ore t owards educat ion. A gr adual shift seen t ow ar ds funding educat ion out of cess/ t ax es as opposed t o funding out of gr oss budget ar y suppor t is also a m at t er of concer n. Of lat e, t he issue of under - ut ilizat ion of funds in t he var ious gover nm ent pr ogr am m es and schem es is being highlight ed in an at t em pt t o do aw ay w it h t he dem and for incr eased spending in educat ion sect or . While it is t r ue t hat gover nm ent schem es r eveal subst ant ial under - spending, t he reasons for t he sam e relat e t o issues of im proper inst it ut ional m echanism s, pat t erns of fund flow fr om t he Cent r e t o t he subsequent lev els below , and need for gr eat er and effect iv e decent ralizat ion. The fundam ent al prem ise of t he need for increase in spending in educat ion, in general, and at all levels in a uniform m anner, t hus rem ains relevant . 3. Unive r sa lizing Ea r ly Childhood Educa t ion – The 12 t h Plan docum ent , while out lining t he proposals in educat ion, m akes no m ent ion of t his crit ical level, t hereby m aking educat ion out of bounds t o a m aj or pr opor t ion of populat ion. Pr ov iding a y ear of pr e- schooling in all inst it ut ions of elem ent ar y educat ion could be explor ed. I m plicat ions for r esour ce allocat ion and r ecr uit m ent of adequat e st aff follow fr om t his. 4. D e ce n t r a liz a t io n a n d d e le g a t io n o f p o w e r s o f a u t o n o m o u s m a n a g e m e n t t h r ou gh sch ool m an ag em en t com m it t ees ( com p r isin g p ar en t s, PRI r ep r esen t at iv es, an d ot h er st ak eholder s) including finance and account ing at t he school lev el based on per child gr ant s. 5. Addr e ssin g Qu a lit y I ssu e s - Ther e is a ser ious challenge of qualit y in I ndian educat ion, w hich has m any dim ensions, such as providing adequat e physical facilit ies and infrast ruct ure, m ak ing av ailable adequat e t eacher s of r equisit e qualit y , effect iv eness of t eaching- lear ning pr ocesses, at t ain m en t lev els of st u den t s, t each er t r ain in g ( bot h in - ser v ice an d du r in g recruit m ent ) , inst it ut ional st rengt hening ( such as NCERT, SCERTs, SI Es, DI ETs, BRCs, et c.) , curriculum and at t ent ion t o pedagogy. 6. I n t e r v e n t ion s t o e n su r e a cce ss of e d u ca t ion a lly d e p r iv e d ca t e g or ie s – I n or der t o ensur e enr olm ent , r et ent ion of gir l child, SC/ ST and ot her depr ived sect ions of t he count r y, support in t erm s of infrast ruct ure and ot her m easures is necessary. I n t his regard, apart fr om ensur ing t hat t her e ar e facilit ies such as separ at e t oilet s in schools, t he sy st em of ent it lem ent s such as fr ee t ext books, unifor m s and scholar ships m ust be st r engt hened and channelised t o av oid v ast r egional/ int er - st at e dispar it y . 7. D oin g a w a y w it h M a t ch in g Sh a r e by St a t e s – While t he Cent r e needs t o st ep up spending on cr it ical int er vent ions in educat ion at all levels, t he pr e- condit ion t hat is inher ent in m any of t he gov er nm ent schem es of t he need for t he St at e t o pr ov ide for a m at ching gr ant t o t he Cent r e’s shar e m ust be done aw ay w it h. The exist ing fiscal condit ion in m ost St at es is har dly conduciv e t o suppor t t his k ind of ‘ar m - t w ist ing’ by t he Cent r e. 8. Ch e ck in cr e a sin g r ole of p r iv a t e p la y e r s in e d u ca t ion – The 11 t h Plan pr oposals for financing educat ion ( at all lev els) show s an incr easing r eliance on t he pr iv at e sect or t hat is cam ouflaged in different ways, such as t he com m unit y cont ribut ion, public- privat e part nership, user fees, v oucher sy st em et c. This is an alar m ing feat ur e and a concer t ed v oice against t his need t o be priorit ized appropriat ely. BACKGROUNDNOTE 70 9. Lice n sin g con t r ols for for e ign in st it u t ion s in h igh e r e du ca t ion – Wit h t he pr oposed opening up of higher educat ion t o for eign pr iv at e inst it ut ions t hr ough t he accept ance of GATS, foreign inst it ut ions providing higher educat ion w ould be allow ed t o set up shop in t he count r y . Ther e is not j ust t he danger t hat pr iv at e play er s of indet er m inat e qualit y and poor cr edent ials fleece t he st udent s for a ‘for eign’ degr ee but also t he ov er all issue of pr iv at izat ion of t his cr it ical st age of educat ion. Ther e is a need t o put in place appr opr iat e m echanism s t o regulat e and m onit or t his t rend. 10. Se t t in g u p a N a t ion a l Com m ission on Edu ca t ion – Reit erat ing t he dem and m ade last year, t here is an urgent need t o est ablish a Nat ional Com m ission on Educat ion. The last Educat ion Com m ission was set up in 1964. Wit h t he econom ic reform s well in m ot ion and t he policy fram ework of t he governm ent s having changed considerably since 1960s, it is only appr opr iat e t hat t he Com m ission be const it ut ed t o addr ess t he r elevant and em er ging issues in educat ion policy and financing. En d n o t e s: 1 For det ails, r ef er t o Jh a, Pr av een , Su br at Das, Siba San k ar Moh an t y , Nan dan K. Jh a, Public Provisioning for Elem ent ary Educat ion in I ndia, Sage Pu blicat ion s, 2 0 0 8 2 Pr ogr am m e on Resear ch on Pr iv at e High er Edu cat ion , St at e Un iv er sit y of New Yor k at Alban y 2 0 0 5 , av ailable at w w w .albany .edu/ dept / eaps/ pr ophe/ dat a/ PHOPHEDat asum m ar y .doc 3 Ot h er Depar t m en t s, su ch as Dept . of Social Welf ar e or Welf ar e of SCs, STs an d OBCs, Dept . of Ru r al Dev elopm ent and Panchay at i Raj and Dept . of Labour and Em ploy m ent et c. do incur som e ex pendit ur es on educat ion- r elat ed ser v ices. 4 Figure for t ot al budget out lay on Educat ion ( including t he out lays for Educat ion Depart m ent s and educat ion ser v ices deliv er ed by Ot h er Depar t m en t s at t h e cen t r e an d st at es com bin ed) f or 2 0 0 6 - 0 7 ( BE) h as been t ak en fr om t h e Analy sis of Budget ed Ex pendit ur e on Educat ion: 2004- 05 t o 2006- 07, Minist r y of HRD, GoI , 2007, and t he f igu r e f or GDP at f act or cost ( cu r r en t pr ices) f or 2 0 0 6 - 0 7 h as been t ak en f r om Econom ic Sur v ey 2007- 08, Minist r y of Finance, GoI , 2 0 0 8 . 71 BACKGROUNDNOTE D e e pe ning Ge nde r Budge t ing in t he Union Governm ent : Reflect ions on Som e Crit ical I ssues Bh u m ik a Jh a m b a n d Su br a t D a s Despit e t he int roduct ion of Gender Budget ing in m any of t he cent ral governm ent m inist ries, t he overall im plicat ions of t he Union Budget for wom en in I ndia cont inue t o generat e serious concerns. This is because t he Gender Budget ing exercise init iat ed by t he cent ral governm ent , and ext ended gradually across it s m inist ries, lacks dept h. The overall em phasis has been m ainly on ident ifying pr ogr am m es/ schem es m eant ent ir ely for w om en or hav ing v isible com ponent s t hat benefit w om en , an d su bsequ en t ly r epor t in g t h e r elev an t bu dget ou t lay s in t h e Gender Budget ing St at em ent . Ther e has been no concer t ed effor t fr om t he cent r al gov er nm ent t o deepen it s Gender Budget ing exer cise by evaluat ing t hor oughly fr om a gender per spect ive– t he obj ect ives, norm s, guidelines, unit cost s and t arget ed beneficiaries under various developm ent schem es and incor por at ing changes in t he sam e t o addr ess t he gender based disadv ant ages of w om en. While Gender Budget cells have been init iat ed in m ore t han 40 cent ral m inist ries, only very few of t hese m inist r ies have t aken st eps t ow ar ds m aking t heir over all budget or specific schem es gender sensit ive. The pr esent not e highlight s som e of t he m aj or concer ns in t his r egar d and at t em pt s t o suggest specific input s t ow ar ds a policy agenda for t he fut ur e. I t m ay be w or t hw hile t o not e her e t hat one of t he pr im ar y obj ect iv es of t he Nat ional Policy for Em pow er m ent of Wom en 2001 is t o ensur e de- j ur e and d e- f act o enj oym ent of all hum an right s and fundam ent al freedom by wom en on equal basis wit h m en in all spheres – polit ical, econom ic, social, cult ur al and civil. However, I ndia get t ing a rank as low as 112, am ong 157 count ries, in t erm s of t he Gender Developm ent I ndex ( in 2005) reflect s t he fact t hat w om en in our count ry are st ill largely disadvant aged in alm ost every sphere. Ta ble 1 : I n dia ’s Ra n k on t h e ba sis of Ge n de r D e ve lopm e n t I n de x Va lu e Count r y Norway Aust ralia Sri Lanka China I ndonesia I ndia Pak ist an Bangladesh Nepal Mozam bique Niger GD I Ra n k 2000 2005 H DI Ra nk m inus GD I Ra n k 2005 3 1 70 77 91 105 120 121 119 144 146 3 2 89 73 94 112 125 121 128 150 155 -1 1 -1 1 1 0 -7 1 -4 2 -1 So u r ce : UND P Re p o r t s 2 0 0 2 a n d 2 0 0 7 I . Situation of W om en in I ndia: Som e Glaring Facts I n order t o com prehend t he acut e need for st epping up t he priorit y for w om en in budget s and public policies in our count r y , w e can t ak e a quick look at t he disadv ant ages confr ont ing w om en in I ndia in various spheres. The inform at ion com piled in Table 2, given below, show t he persist ence of gender based disadv ant ages confr ont ing w om en in I ndia. These gender based disadv ant ages m anifest t hem selves in various form s, such as worsening healt h indicat ors of wom en, different ial pr ogr ess in lit er acy, incr easing w age gaps, ever - incr easing r at es of cr im es against w om en, and cont inuing low represent at ion of wom en in higher posit ions in polit ical leadership, adm inist rat ion and j udiciary. BACKGROUNDNOTE 72 Ta ble 2 : Som e Ev ide n ce s of Ge n de r - ba se d D isa dv a n t a ge s Con fr on t in g W om e n I ndica t or Sex Rat io Child Sex Rat io ( 0-6 yrs) Sex Rat io at Birth (2003- 05) I ncidence of Anaem ia Present Scenario in I ndia Elevent h Plan Target 933 in 2001 • I m proved slightly from 927 to 933 in 2001 927 in 2001 880 • Am ong Pregnant Wom en: Risen from 49.7 % t o 5 7 .9 % during 1998-99 to 2 0 0 5 -0 6 • Am ong Ever-m arried Wom en: Risen from 51.8% to 5 6 .2 % during t he sam e period Mat ernal Mort alit y Rat e Gender Different ials in Educat ion Fem ale Work Part icipat ion Rat e Wage Disparit y Rat io in Males and Fem ales Wom en’s Represent at ion in Parliam ent Violence against Wom en Raise t he sex rat io for age group 0-6 from 927 in 2001 to 935 by 2011 -12 and 950 by 2016-17 3 0 1 per 1 lakh live birt hs in 2 0 0 1 -0 3 ( Source: Sam ple Registration System of Office of Regist rar General, I ndia) • Way behind m eet ing t he Tent h Plan t arget of reducing MMR to 200 per 1 lakh live birt hs. • MMR part icularly high in UP, Ut t aranchal, Assam and MP • 51.7 % birt hs t ake place wit hout assist ance of any healt h personnel • Under- age m arriage am ong girls st ill widely prevalent Literacy Rate of wom en: 54.16 % ( 75.5 % for m en) Gender Different ial in education: 21.7% • Although in absolute num bers, illiterate wom en have decreased from 1991 t o 2001, drop out rat es of girls cont inue t o rem a in high. • I n 68 districts, SC or ST fem ale literacy is m ore than 5 % but less than 10 % . • Com pared to SC/ ST girls, 61 % of whom are out of school, only about 12 % of girls from upper caste households are out of school. For rural fem ales, t he Work Part icipat ion Rat e was 3 2 .7 % in 2004 as against 5 4 .6 % for t heir m ale count erpart s. The sam e for t heir urban count erpart s was 1 6 .6 % and 5 7 . 9 % respectively. Average wage/ salary earnings ( Rs. per day) received by regular wage/ salaried em ployees of age 15 -59 yrs in 2004 -05 for: Rural Males & Rural Fem ales is 1 4 4 .9 and 8 5 .5 r e spe ct ive ly Urban Males & Urban Fem ales is 2 0 3 .3 and 1 5 3 .2 respect ively • The wage disparity ratio has widened during 1999-00 to 2004 -05 • Over 12% wom en in urban I ndia work as dom est ic servant s 9 .1 % in 2 0 0 4 • I m proved only slight ly from 6.1% in 1989 • The figure is very low as against t hat of 14.8 % , 13.1 % , 15.0 % and 25 % respectively in Bangladesh, Malaysia, US and Mexico. Crim es against wom en have been increasing persistently. • Rape cases have increased fro m 16,075 in 2001 to 18,233 in 2004 • Dowry deat hs rose from 6,851 in 2001 t o 7,026 in 2004. The num ber of deat hs is part icularly high in UP, Bihar and MP. • Cases of Abduct ion and Trafficking for sexual and ot her exploit at ions – 19.4 % and 7.2 % respect ively in 2005 Reduce anaem ia am ong wom en and girls by 50 % by the end of Eleventh Plan Reduce MMR to 100 per 1 lakh live births. Reduce drop out rate for prim ar y and secondary schooling by 10 % for bot h girls as well as boys The Eleventh Plan docum ent holds that budgetary allocations will be m ade for publicity and for creating the required infrastructure for effective im plem ent at ion of t he Dom est ic Violence Act, 2005. So u r ce: Co m p i l ed f r o m El ev en t h Fi v e Yea r Pl a n D o cu m en t ( 2 0 0 7 - 2 0 1 2 ) , Pl a n n i n g Co m m i ssi o n , Go v er n m en t o f I n d i a 73 BACKGROUNDNOTE As not ed abov e, I ndia has failed t o achiev e t he t ar get for r educt ion in MMR set in t he Tent h Fiv e Year Plan ( 2002- 03 t o 2006- 07) . The increasing incidence of anem ia am ong pregnant wom en and ev er m ar r ied w om en clear ly r eflect s t he lack of t heir accessibilit y t o healt h car e ser v ices. I n addit ion, wom en suffering from HI V & AI DS are disowned by t heir fam ilies and wit hout access t o any asset s, t hey face far gr eat er discr im inat ion. Sev er al fact or s hav e cont r ibut ed t ow ar ds low lit er acy r at e am ong fem ales and t he per sist ence of high dr op out r at es, t he sit uat ion being w or se in case of SC and ST gir ls. On t he work and em ploym ent front , fem ale workforce part icipat ion rat e was 28 % ( in 2004) w hich is quit e low com pared t o m any developing count ries. Furt her, 97 % of t he fem ale w orkforce is involved in t he unorganized sect or. A sect oral break up shows t hat agricult ure is t he prim ary em ployer of wom en inform al workers. A whopping 85 % of rural wom en are em ployed in agricult ure as w age w or k er s or w or k er s on ow n/ cont r act ed household far m s. A r ecent r epor t r eleased by t he I nt ernat ional Labour Organisat ion 1 reinforces t he sit uat ion of w om en w orkers in Sout h Asia and t he t r ends t her ein. Accor ding t o t he r epor t , w om en cont inue t o be lar gely an unt apped pot ent ial in t he region which is indicat ed by t he fem ale unem ploym ent rat e of 5.8 % as com pared t o 4.8 % for m ales in 2007. I t furt her not es t hat w om en cont inue t o carry a m uch higher risk of finding t hem selves in a vulnerable em ploym ent sit uat ion t han m en which definit ely holds t rue w hen t he inv olv em ent of w om en in t he unor ganized sect or is t ak en int o account . I t is also disappoint ing t o not e t hat alt hough t her e has been an incr ease in em ploy m ent , t he w age dispar it y rat io for m en and wom en has widened bet ween 1999- 2000 and 2004- 05, which im plies t hat t he aver age w age of m en, acr oss all cat egor ies, has show n an incr ease vis- à- vis w om en in r ur al as well as urban areas. One of t he m aj or concerns not ed in t he Concluding Com m ent s of t he Com m it t ee on t he Elim inat ion of Discr im inat ion against Wom en ( Febr uar y 2007) is t he rise of all form s of discrim inat ion against w om en. According t o t he Nat ional Crim e Records Bureau, t he incidence of dow ry deat hs, dom est ic v iolence, r ape and m olest at ion – all hav e r egist er ed an incr ease ov er t he y ear s and t he conv ict ion rat es are abysm ally low . The overall sex rat io st ands at 933 in 2001 and t he child sex rat io has declined from 945 in 1991 t o 927 in 2001 w hich reflect s t he deeply ent renched pat riarchy in I ndian societ y . Ther efor e t he Com m en t s ( m ent ioned above) lay special em phasis on I ndia fully and consist ent ly im plem ent ing and enforcing t he Dom est ic Violence Act and ensuring t hat all w om en v ict im s of dom est ic v iolence, including scheduled cast e, scheduled t r ibe, back w ar d class and m inor it y w om en, ar e able t o benefit fr om t he legislat iv e fr am ew or k and also calls for est ab lish m en t of adequ at e m ech an ism s an d pr ocedu r es f or ef f ect iv e im plem en t at ion an d m onit or ing of t he Pr e- concept ion and Pr enat al Diagnost ic Technique ( Pr ohibit ion of Sex Select ion) Act . The challenges, t her efor e, as ident ified by t he Planning Com m ission in t he Elevent h Five Year Plan ( 2007- 08 t o 2011- 12) docum ent include: ensuring econom ic em powerm ent of wom en; engineering social em powerm ent ; enabling polit ical em powerm ent ; effect ive im plem ent at ion of w om en relat ed legislat ions; and creat ing inst it ut ional m echanism s for gender m ainst ream ing and st rengt hening delivery m echanism s. I I . Som e Re ce n t I n it ia t ive s by t h e Un ion Gove r n m e n t t o a ddr e ss t h e Con ce r n s of W om e n The UPA Governm ent ’s ‘Report t o t he People: 2004- 2008’ claim s t hat it has giv en gr eat er focus t o issues r elat ing t o w om en t hr ough var ious effor t s and init iat ives w hich include– set t ing up an independent Minist r y of Wom en and Child Dev elopm ent , enact m ent of v ar ious legislat ions prom ot ing equalit y of wom en, gender budget ing and various program m es/ schem es t o address w om en’s concer ns. Som e of t he new program m es/ schem es for wom en launched by t he cent ral governm ent are as given below. An ga n w a di Ka r y a k a r t r i Bim a Yoj a n a A social secur it y gr oup schem e of LI C w as launched by t he Gov er nm ent t o cov er t he r isk s of Anganw adi w orkers and helpers. The prem ium am ount per beneficiary per annum has been fixed at Rs. 280. BACKGROUNDNOTE 74 D h a n La x m i – a Con dit ion a l Ca sh t r a n sfe r Sch e m e for gir l ch ildTh is sch em e, lau n ch ed init ially on a pilot basis, aim s t o pr ovide a set of st agger ed financial incent ives for fam ilies t o encourage t hem for bet t er upbringing of girl child. The schem e is proposed t o be pilot ed in 11 educat ionally back w ar d block s in 7 St at es w it h an out lay of Rs. 10 cr or e for 2008- 09 benefit ing 1,01,970 girls. Under t he Dhan Laxm i schem e an insurance cover of Rs 1 lakh would be provided for t he girl child at her birt h and in all, cash package of around Rs 2 lakh will be provided t o t he girl’s fam ily, preferably to the m other. Uj j a w a la - a Sch e m e for Re scu e a n d Re h a bilit a t ion of Tr a ffick e d W om e n a n d Ch ildr e n The schem e com pr ises 5 com ponent s – pr ev ent ion, r escue, r ehabilit at ion, r eint egr at ion and r epat r iat ion. The schem e is pr oposed t o be im plem ent ed t hr ough about 50 pr oj ect s init ially benefit ing over 2500 vict im s. I n ce n t ive t o Gir ls for Se con da r y Edu ca t ion A cent r ally sponsor ed schem e t o incent iv ise secondar y educat ion of gir ls w it h a t ot al out lay of Rs.1500 crore would be init iat ed during t he 11 t h Plan. The schem e will cover all SC/ ST girls who pass class VI I I , and girls who pass class VI I I from Kast urba Gandhi Balika Vidhyalayas ( ir r espect iv e of w het her t hey belong t o Scheduled Cast es or Tr ibes) , and enr oll for class I X in St at e/ UT Gover nm ent , Gover nm ent aided or local body schools in t he academ ic year 2008- 09 onwards. A sum of Rs.3000 would be deposit ed under t erm deposit / fixed deposit in a public sect or bank or in a post office in t he nam e of every eligible girl child w hich w ill be given t o t he gir l aft er she has at t ained 18 year s of age and pr oduced 10 t h class pass cer t ificat e. On t he legislat ive front , a num ber of am endm ent s have been passed by Parliam ent prohibit ing ar r est of w om en aft er sunset and befor e sunr ise; m edical exam inat ion of per sons accused of com m it t ing or at t em pt ing t o com m it rape; and m andat ory j udicial inquiry in case of rape while in police cust ody. • On t he Le gisla t ive Fr ont Th e Sex u al Har assm en t of Wom en at Wor k place ( Pr ev en t ion , Pr oh ibit ion & r edr essal) Bill is being finalized. • Gov er n m en t in t r odu ced a bill in Par liam en t t o am en d t h e Fact or ies Act , 1 9 4 8 t o pr ov ide f lex ibilit y t o w om en em ploy ees du r in g n igh t an d r equ ir in g em ploy er s t o en su r e saf et y an d pr ot ect ion of t h e em ploy ees. • Gov er n m en t h as in t r odu ced a bill for am en din g t h e I m m or al Tr affick in g ( Pr ev en t ion ) Act , 1 9 5 6 for addr essing v ar ious concer ns. • A Com m it t ee u n der E. M. Su dar san a Nat ch iappan h as been f or m ed t o seek su ggest ion s f r om v ar iou s polit ical par t ies an d h elp ev olv e con sen su s on t h e Wom en ’s Reser v at ion Bill. • Medical Ter m in at ion of Pr egn an cy Act is bein g r ev ised ( t h e n u m ber of w eek s bein g ex t en ded f r om 2 0 t o 2 4 ) • As per t h e Pr oh ibit ion of Ch ild Mar r iage Act , 2 0 0 6 , t h e pu n ish m en t s for a m ale adu lt m ar r y in g a ch ild is r igor ou s im pr ison m en t u pt o t w o y ear s or f in e u pt o on e lak h r u pees or bot h . Ch ild Pr ot ect ion Of f icer s ar e bou n d by law . While t he UPA Gov er nm ent did t ak e a num ber of init iat iv es for addr essing t he concer ns of w om en, such as t hose m ent ioned abov e, it has har dly succeeded in r educing t he gender - based disadvant ages of w om en in t he count r y. This is m ainly because of t he piecem eal appr oach t aken by it for addressing wom en’s concerns. When we consider t he prom ises m ade by t his governm ent in it s Nat ional Com m on Minim um Pr ogr am m e ( NCMP) in 2 0 0 4 , w e find fur t her cause for disappoint m ent . I I I . Com m it m ent s for W om en in t he N CM P The UPA Governm ent had laid down com m it m ent s for som e of t he crucial sect ors of t he econom y and for addr essing specific concer ns of t he v ulner able sect ions of t he societ y in it s char t er of governance –t he Nat ional Com m on Minim um Program m e– in May, 2004. Apart from t he six pr inciples of gov er nance in w hich it clear ly m ent ioned, ‘t o fully em pow er w om en polit ically , educat ionally, econom ically and legally’, it also det ailed som e specific prom ises t o address wom en’s 75 BACKGROUNDNOTE concer ns. As w e ar e appr oaching t he Gener al Elect ions nex t y ear , it is per t inent t hat w e t ak e st ock of w hat t he UPA Governm ent has been able t o deliver vis- à- vis t hose prom ises. • Alt hough w om en hav e been able t o seek polit ical posit ions ow ing t o t he 7 3rd and 74 t h Const it ut ional Am endm ent s, t heir represent at ion in Parliam ent rem ains abysm ally low. Despit e sev er al at t em pt s t o t able t he Wom en’s Reser v at ion Bill and v ar ious per m ut at ions and com binat ions as suggest ed by various polit ical part ies from increasing t he t ot al num ber of seat s in Par liam ent t o t ak ing account of w om en belonging t o Scheduled Cast es, Scheduled Tribes and OBCs, t he governm ent has not been able t o evolve a consensus. Alt hough som e polit ical part ies have gone for 33 % in t heir part y cadre, t he issue of w om en’s reservat ion in Parliam ent st ill rem ains largely neglect ed. • The governm ent did fulfill it s prom ise of enact ing t he Dom est ic Violence Act , 2005. However, t he alar m ing r at e of cr im es against w om en r eflect s t he gr ossly inadequat e at t ent ion paid t o t he enforcem ent of t his Act . The Elevent h Plan docum ent em phasizes t hat budget ary allocat ions w ill b e m ad e f or p u b licit y an d f or cr eat in g t h e r eq u ir ed in f r ast r u ct u r e f or ef f ect iv e im plem ent at ion of t he Dom est ic Violence Act , 2005. • One of t he cr ucial aspect s t hat for ces indiv iduals t o w or k as labour er s is lack of asset s and landlessness and t he sam e is part icularly of grave concern for wom en. The UPA Governm ent am ended t he Hindu Succession Act ; however Muslim wom en st ill rem ain out of t he purview of t he Act . The Nat ional Policy for Far m er s, 2007 r ecognizes t he ur gent need for em pow er ing w om en t o access cr edit ser v ices t hr ough j oint pat t as for hom est ead as w ell as agricult ural land. However, as not ed by t he Em powered Com m it t ee on Wom en and Children for t he Elevent h Five Year Plan, individual t it les or group pat t as ( t o groups of wom en) would st rengt hen wom en’s hands rat her t han j oint pat t as. • Follow ing t he im posit ion of t he neo- liberal econom ic policies, involunt ary displacem ent of people, especially t he m arginalized groups such as SCs, STs, farm ers and wom en has becom e a com m on p h en om en on in ou r cou n t r y . On on e h an d , t h e Nat ion al Reh ab ilit at ion & Reset t lem ent Policy, 2007 fails t o lay down concret e com m it m ent s on t he part of t he appropriat e gov er nm ent s t o pr ov ide adequat e pr ot ect ion t o t he affect ed fam ilies, and on t he ot her , w hat is equally im por t ant is t o devise a policy t hat is gender sensit ive and includes equit able allocat ion of land t o w om en. I V. N eed for Deepening of Gender Budgeting in the Union Governm ent A Gender Budget ing St at em ent w as int r oduced in Union Budget for 2005- 06, and it s cover age of various Union Governm ent Depart m ent s has been ext ended in t he subsequent Union Budget s. This St at em ent is div ided int o t w o par t s, v iz. Par t A and Par t B. While Par t A com piles t he budget out lays for all schem es m eant exclusively for w om en ( or schem es w here 100 % benefit s accrue t o w om en) , Par t B com piles t he shar es of budget out lays in com posit e expendit ur e schem es w hich benefit w om en if t hat shar e is at least 30 % of t he t ot al out lay for t he schem e. Alt hough t his init iat ive, w hich has been t he result of a long st ruggle by several w om en’s right s groups and civ il societ y or ganisat ions in t he count r y , is com m endable in it self; it is necessar y t o deepen t he Gender Budget ing exercise being carried out across different m inist ries of t he Union Governm ent . As m ent ioned at t he out set , t he over all em phasis of t his pr ocess in t he Union Gover nm ent has been m ainly on ident ifying program m es/ schem es m eant ent irely for wom en or having visible com ponent s t hat benefit w om en, and subsequent ly r epor t ing t he r elev ant budget out lay s in t he Gender Budget ing St at em ent . The m et hodology of pr epar at ion of t his Gender Budget ing St at em ent for Union Budget is st ill evolving. While t here have been several flaw s in t his m et hodology in t he past , som e of w hich have been correct ed t oo, very lit t le inform at ion is available in t he public dom ain as regards t he assum pt ions m ade by v ar ious m inist r ies in t he r ev iew s of t heir ex pendit ur e pr ofiles fr om a gender per spect ive. We have m ade an at t em pt t o dem yst ify such assum pt ions w it h r egar d t o 21 of t he largest schem es ( in t erm s of budget out lays) benefit ing w om en as per t he Gender Budget ing St at em ent for Union Budget 2008- 09. BACKGROUNDNOTE 76 Ta ble 3 : La r ge st Sch e m e s ( in t e r m s of bu dge t ou t la ys) Be n e fit in g W om e n a s pe r t h e Ge n de r Bu dge t in g St a t e m e n t for Un ion Bu dge t 2 0 0 8 - 0 9 [ a cr oss v a r iou s m in ist r ie s] S. No. Program m e/ Sche m e ( M inist ry/ Dept .) 1. RCH Proj ect RCH Flexible Pool Out lay benefit ing W om en a s % of Tot a l Out la y for t he schem e 100 % provisions benefiting wom en ( Depart m ent of Healt h & Fam ily Welfare) 2. Rural Fam ily Welfare Services 100 % ( Depart m ent of Healt h & Fam ily Welfare) 3. 4. 5. Urban Fam ily Welfare Services ( Depart m ent of Healt h & Fam ily Welfare) Nat ional Vect or Borne Disease Cont rol Program m e ( Depart m ent of Healt h & Fam ily Welfare) AI I MS 97 % 40 % 40 % ( Depart m ent of Healt h & Fam ily Welfare) 6. Nat ional AI DS Cont rol Program m e 33 % ( Depart m ent of Healt h & Fam ily Welfare) 7. Cent ral Governm ent Healt h Schem e ( Depart m ent of Health & Fam ily Welfare) 48 % Assum pt ion( s) on w hich it is based ( Source: Governm ent docum ent s referred t o) Focus of t he Reproduct ive and Child Healt h ( RCH) program m e is reproduct ive and child healt h, where t he beneficiaries are prim arily wom en and children. The benefit s of m aj or com ponent s such as Mat ernal Healt h I ntervent ion, Janani Suraksha Yoj ana, and RCH Training ( t raining of fem ale and m ale funct ionaries) accrue t o wom en. ( Source: Perform ance Budget 2006- 07 and Out com e Budget 2008- 09 , MoHFW, GoI ) The Union Governm ent , under t his schem e, provides t he ent ire salary of all ANMs and LHVs recruit ed at t he Subcent res, which t oget her account for 97 % of t he t ot al out lay m ade by t he Union Govt . Minist ry under t his Schem e. ( Source: Perform ance Budget 2006- 07 and Out com e Budget 2008- 09, MoHFW, GoI ) 95 % beneficiaries of t he services provided by urban fam ily welfare cent res are wom en. ( Source: Perform ance Budget 2006- 07 and Out com e Budget 2008- 09, MoHFW, GoI ) I ncludes vect or borne diseases: Malaria, Filaria, Japanese Encephalit is, Kala- azar and Dengue. The percent age ( 40) of allocat ion has been m ent ioned on t he basis of dat a on num ber of act ual beneficiaries. ( Source: Perform ance Budget 2006- 07 , and Out com e Budget 2008- 09, MoHFW, GoI ) The assum pt ion behind 40 % of t he out lay for AI I MS benefit ing wom en is on t he basis of dat a on t he num ber of wom en indoor pat ient s being 40 % ( gender disaggregat ed dat a as collect ed by AI I MS since July 2005) . ( Source: Perform ance Budget 2006- 07 and Out com e Budget 2008- 09, MoHFW, GoI ) The percent age of allocat ion benefit ing wom en has been m ade on t he basis of num ber of wom en availing of t he benefit s under t he program m e ( act ual beneficiaries) . Many of t he act ivit ies under t he program m e such as Prevent ion of Parent t o Child Transm ission, Target ed I nt ervent ions, and Prevent ion of RTI s/ STI s are focusing on wom en. ( Source: Perform ance Budget 2006- 07 , MoHFW, GoI ) Alt hough t here is paucit y of dat a on t he num ber of wom en beneficiaries availing of t he schem e, t he percent age allocat ion ( 48) has been m ent ioned on t he basis of t he fact t hat t he schem e is not st rict ly gender neut ral. ( Source: Perform ance Budget 2006- 07 , MoHFW, GoI ) 77 BACKGROUNDNOTE Com m ent s on t he M et hodology of Gender Budget ing : Sev er al sch em es of Min ist r y of Healt h an d Fam ily Welf ar e h av e been m en t ion ed in t h e Gender Budget ing St at em ent , of w h ich t h e im por t an t on es h av e b een m en t ion ed in t h is t ab le. Th e Min ist r y in clu d ed a d et ailed sect ion on Gen d er Bu d g et in g in it s Per for m ance Budget 2006- 07 w her ein it explains t he r at ionale behind placing a specific schem e/ pr ogr am m e in t he St at em ent . Accor dingly , t he schem es of t he Depar t m ent of Healt h & Fam ily Welfar e w er e cat egor ized int o: ( a) Wom en Specific, w her e ex pendit ur e on w om en is 100 % , ( b) Pr o Wom en, w her e ex pendit ur e is at least 30 % and ( c) Residual Ex pendit ur e, w her e ex pendit ur e on w om en is less t han 30 % . The Minist r y has b een f ollow in g t h is m et h od olog y of cat eg or izat ion of sch em es/ p r og r am m es sin ce 2 0 0 6 . Alt h ou g h t h e r epor t ing as done by t he Minist r y of Healt h and Fam ily Welfar e in t he Gender Budget ing St at em ent pr ov ides a good ex am ple, t he infor m at ion on act ual beneficiar ies could hav e becom e obsolet e and such infor m at ion n eed t o be u pdat ed at r egu lar in t er v als. 8. 9. Swayam siddha 100 % ( Minist ry of Wom en and Child Developm ent ) I nt egrat ed Child Developm ent Services 66 % ( in 2007- 0 8 ) ( Minist ry of Wom en and Child Developm ent ) The schem e aim s at form at ion of wom en SHGs in order t o creat e awareness am ong m em bers regarding various issues. ( Source: Out com e Budget 2008- 09, MWCD, GoI ) The Out com e Budget 2008- 09 of t he Minist ry does not give gender disaggregat ed dat a on t he num ber of wom en beneficiaries of t he schem e, for inst ance t he num ber of boys and girls receiving supplem ent ary nut rit ion et c. Therefore, showing t hat 66 % of t he budget ary provisions for I CDS are benefit ing wom en and girls seem s quest ionable. Com m ent s on t he M et hodology of Gender Budget ing : Th e Min ist r y of Wom en an d Ch ild Dev elopm en t is t h e n odal Min ist r y t o im plem en t policies an d pr ogr am m es r elat in g t o w om en an d ch ildr en . I n t egr at ed Ch ild Dev elopm en t Ser v ices, t h e w or ld’s lar gest pr ogr am m es f or ear ly ch ildh ood dev elopm en t h ad been placed in Par t B of t h e Gender Budget ing St at em ent . Sin ce t h e pr ogr am m e t ar get s bot h boy s an d gir ls, it is im por t an t t o h av e gen der disaggr egat ed dat a on ben eficiar ies. 10. 11. Swarnaj ayant i Gram Swarozgar Yoj ana ( Depart m ent of Rural Developm ent ) I ndira Awas Yoj ana 45 % The guidelines of t he schem e have clearly m ent ioned t hat 50 % of t he groups form ed in each block should be exclusively for wom en. ( Out com e Budget 2008- 09, MoRD, GoI ) 100 % As per t he guidelines of t he schem e, allot m ent of dwelling unit s should be in t he nam e of fem ale m em ber of t he beneficiary household. Alt ernat ively, it can be allot t ed in t he nam e of bot h husband and wife. ( Out com e Budget 2008- 09, MoRD, GoI ) The guidelines envisage at least one- t hird beneficiaries of t he schem e t o be wom en. The lat est est im at es show t hat wom en’s par t icipat ion in t he schem e is 50 % ( Source: www.nrega.nic.in and Out com e Budget 200809, MoRD, GoI ) ( Depart m ent of Rural Developm ent ) 12. Nat ional Rural Em ploym ent Guarant ee Schem e ( Depart m ent of Rural Developm ent ) 37 % Com m ent s on t he M et hodology of Gender Budget ing : Th e Depar t m en t of Ru r al Dev elopm en t clear ly m en t ion s t h e pr opor t ion of w om en ben ef iciar ies u n der t w o of it s sch em es: ‘Nat ion al Ru r al Em ploy m en t Gu ar an t ee Sch em e’ an d ‘Sw ar n aj ay an t i Gr am Sw ar ozgar Yoj an a’, bot h of w h ich h av e been placed in t h e p ar t B of t h e Gender Budget ing St at em ent . Fu r t h er , t h e Depar t m en t h as com m ission ed st u dies t o assess t h e b en ef it s accr u in g t o w om en u n d er ‘Pr ad h an Man t r i Gr am Sad ak Yoj an a’ an d ‘I n t eg r at ed Wast elan d Dev elopm ent Pr ogr am m e’ – w hich had conv ent ionally been consider ed gender neut r al. How ev er , t h er e is n o st r on g log ic f or t h e Dep ar t m en t t o assu m e t h at 1 0 0 % b en ef it s of ‘I n d ir a Aw as Yoj an a’ accr u e t o w om en , as t h e h ou ses bu ilt can also be allot t ed in t h e n am e of bot h h u sban d an d w if e. Hen ce, t h is sch em e sh ou ld b e sh if t ed t o Par t B of t h e St at em ent . BACKGROUNDNOTE 78 13. New Model Schools 44 % ( Depart m ent of School Educat ion & Lit eracy) 14. SUCCESS 30 % ( Depart m ent of School Educat ion & Lit eracy) Bot h t he schem es have been init iat ed t his year. The New Model Schools schem e aim s at set t ing up 6,000 new high qualit y schools in every block in t he count ry. SUCCESS is a cent rally sponsored schem e for universalisat ion of and access t o and im provem ent of qualit y educat ion at secondary st age. One of t he m ain obj ect ives of t he schem e is provision of ext ra support t o girls. ( Source: Out com e Budget 2008- 09, MoHRD, GoI ) The assum pt ions behind t he allocat ion of 44 % and 30 % of budget ary provisions of t hese schem es in t he Gender Budget ing St at em ent appear t o be based on t he proport ion of girls in t ot al enrolm ent in schools at t he elem ent ary level and secondary level respect ively. 15. Kendriya Vidyalaya Sangat han 30 % No inform at ion on t he underlying assum pt ions available. 44 % No inform at ion on t he underlying assum pt ions available. Sarva Shiksha Abhiyan 46 % ( Depart m ent of School Educat ion & Lit eracy) ( in 2007 - 08) One of t he obj ect ives of t he schem e is t o reduce gender gap in Gross Enrolm ent Rat io ( GER) by 2 percent age point s per annum at elem ent ary level. ( Depart m ent of School Educat ion & Lit eracy) 16. Navodaya Vidyalayas ( Depart m ent of School Educat ion & Lit eracy) 17. No inform at ion is shared on t he assum pt ion behind m ent ioning 46 % provisions as wom en- specific. Moreover, gender disaggregat ed dat a is not given in t erm s of num ber of children enrolled. 18. 19. Mid Day Meal Schem e 38 % ( Depart m ent of School Educat ion & Lit eracy) ( in 2007 - 08) Universit y Grant s Com m ission 31 % ( Depart m ent of Higher Educat ion) No inform at ion is shared on t he assum pt ion behind m ent ioning 38 % provisions as wom en- specific. Moreover, gender disaggregat ed dat a is not given in t erm s of num ber of children covered under t he program m e from Educat ionally Backward Dist rict s. Budget out lay for UGC com prises t hree com ponent s benefit ing wom en direct ly: Wom en’s Host els for Colleges, Set t ing up of Wom en St udies Cent res in Colleges, and Part Tim e Research Associat e - ship for wom en. However, t he Depart m ent of Higher Educat ion does not provide any inform at ion on placing 31 % funds as wom en specific in t he Gender Budget ing St at em ent . However, t he Out com e Budget 2008 - 09 of t he Depart m ent m ent ions t hat t he enrolm ent of wom en at t he beginning of 2007- 08 was 40.55 % of t he t ot al enrolm ent in higher educat ion. ( Out com e Budget 2008- 09 and Annual Report 2007- 08, Depart m ent of Higher Educat ion, MoHRD, GoI ) Com m ent s on t he M et hodology of Gender Budget ing : Th e Min ist r y of Hu m an Resou r ce Dev elopm en t h as been r u n n in g cer t ain w om en - specif ic sch em es su ch as Mah ila Sam ak h y a, Kast u r ba Gan dh i Balik a Vidy alay a ( now m er ged in SSA) , Gir ls’ Host el Schem e and t he new cent r ally sponsor ed schem e, I ncent ives t o Girls for Secondary Educat ion , t h e t ot al p r ov ision s f or w h ich con st it u t e a sm all p r op or t ion of t h e t ot al ou t lay of t h e Min ist r y . I n addit ion t o t h ese sch em es, t h e Min ist r y r u n s m an y sch em es w h er e it m en t ion s sign if ican t pr opor t ion of pr ov ision s m ean t f or w om en in t h e Gen der Bu dget in g St at em en t . How ev er , t h e Min ist r y d oes n ot p r ov id e an y in f or m at ion on t h e assu m p t ion s b eh in d p lacin g p ar t icu lar p r op or t ion of ou t lay s f or t h ese sch em es in t h e Gender Budget ing St at em ent . For m an y su ch sch em es, t h e assu m pt ion seem s t o be based on pr opor t ion of gir ls in t ot al enr olm ent in educat ional inst it ut ions at differ ent lev els. I f t h e MHRD in deed h as m ade su ch assu m pt ion s, it is ign or in g t h e f act t h at t h e u n it cost of pr ov idin g educat ional facilit ies t o a gir l at any lev el could be higher t han t hat for pr ov iding educat ional facilit ies t o a 79 BACKGROUNDNOTE boy . Mor eov er , w it h t h e in t r odu ct ion of t h e Child Budget ing St at em ent in t h e Un ion Bu dget , f lagsh ip sch em es su ch as SSA an d Mid Day Meal h av e b een lef t ou t of t h e Gender Budget ing St at em ent . This is concept ually flaw ed, as w e shall discuss subsequent ly . 20. SCA t o SCP ( Special Cent r al Assist ance t o Schedules Cast e Sub Plan) 29 % The assum pt ion behind m ent ioning 30 % of allocat ion for t he schem e in t he Gender Budget ing St at em ent is quest ionable since according t o t he Out com e Budget 2008- 09 of t he Minist ry of Social Just ice & Em powerm ent , wom en beneficiaries of t he schem e, SCA t o SCP are 15 % of t he t ot al beneficiaries. Therefore, put t ing 30 % provisions for wom en in t he Gender Budget St at em ent needs t o be clarified. ( Source: Out com e Budget 2008- 09, MoSJ&E, GoI ) 25 % The schem e envisages at least 30% funds released t o st at es for benefit of wom en. ( Minist ry of Social Just ice & Em powerm ent ) 21. SCA t o TSP ( Special Cent r al Assist ance t o Tribal Sub Plan) First ly, since t he Part B of t he Gender Budget St at em ent list s t hose schem es whereby at least 30 % provisions are m eant for wom en, t he percent age out lay benefit ing wom en as percent age of t ot al out lay for t his schem e am ount ing t o 25 % it self is quest ionable. Secondly, t he Out com e Budget 2008- 09 of t he Minist ry of Tribal Affairs m ent ions t hat t he gender segregat ion of beneficiaries is not possible owing t o t he fact t hat it is an area specific program m e. ( Source: Out com e Budget 2008- 09, Minist ry of Tribal Affairs, GoI ) ( Minist ry of Tribal Affairs) Com m ent s on t he M et hodology of Gender Budget ingSp ecial Cen t r al Assist an ce is b ein g p r ov id ed b y t he Union Governm ent t o 27 St at es/ Union Territ ories, which are form ulat ing and im plem ent ing t he Scheduled Cast es Su b Plan s. The Out com e Budget of t he Minist r y of Social Just ice and Em pow er m ent not es t hat t he pr opor t ion of w om en ben eficiar ies of t h is Special Cen t r al Assist an ce t o SCP t o t h e t ot al n u m ber of w om en b en ef iciar ies w as 1 5 % . How ev er , t h e sch em e h as b een p laced u n d er Par t B of t h e Gen d er Bu d g et in g St at em en t w h ich is in t en d ed t o list on ly t h ose sch em es w h er e at least 3 0 % b u d g et ar y p r ov ision s ar e m eant for w om en. Ther efor e, t he assum pt ion behind t his schem e is quest ionable. Fur t her , t he Minist r y of Tr ibal Af f air s in it iat ed t h e Special Cen t r al Assist an ce t o Tr ibal Su b Plan t o su p p lem en t t h e ef f or t s of t h e St at e Gov er n m en t s. Th e Min ist r y of Tr ibal Affair s does n ot pr ov ide an y in for m at ion on t h e basis of w h ich 2 5 % of t h e p r ov ision s of t h e sch em e h av e b een p laced as w om en sp ecif ic in t h e Gen d er Bu d g et in g St at em ent . 22. Nat ional Food Securit y Mission ( Depart m ent of Agricult ure and Cooperat ion) 30 % The schem e envisages at least 33% allocat ion of funds for sm all, m arginal and wom en farm ers. Therefore, t he assum pt ion seem s t o be based on t he num ber of wom en beneficiari es availing t he schem e. No gender disaggregat ed dat a is available in t he Out com e Budget 2008- 09 of t he Depart m ent . ( Out com e Budget 2008- 09, Depart m ent of Agricult ure and Cooperat ion, Minist ry of Agricult ure, GoI ) I t is w or t h m ent ioning t hat v er y im por t ant sect or s fr om t he per spect iv e of w om en’s needs such as W a t e r Supply , Sa n it a t ion , and Food & Public Dist ribut ion st ill rem ain out side t he purview of t he Gender Budget ing St at em ent . I t is a well known fact t hat wom en and girls spend hours fet ching w at er and hav e t o face sev er e har dships ow ing t o lack of sanit at ion facilit ies. I n r ur al areas, only 21.9 percent of populat ion has lat rines wit hin/ at t ached t o t heir houses. The Depart m ent of Drinking Wat er Supply runs t wo m aj or schem es – Acce le r a t e d Rur a l Supply Pr ogr a m m e ( ARW SP) an d Tot a l Sa n it a t ion Ca m p a ig n ( TSC), none of w hich finds a m ent ion in t he BACKGROUNDNOTE 80 St at em ent . Mor eov er t he annual r epor t of t he Depar t m ent ev en m ent ions t hat t he nat ur e of t hese schem es is such t hat it is not possible t o quant ify allocat ions separ at ely for w om en. Secondly, t he issue of undernut rit ion of wom en and girls is a cause of serious concern. Owing t o t he pat riarchal st ruct ure of t he I ndian societ y, t he int ra- household allocat ion of food is skewed against wom en and girls. Rising anaem ia am ong pregnant wom en and ever- m arried wom en as show n by NFHS- 3 clear ly r eflect s t he fact t hat t his concer n has not r eceiv ed adequat e at t ent ion. Only Village Grain Bank Schem e run by the Depart m ent of Food and Public Dist ribut ion w it h a m eagre allocat ion has been placed in Part B of t he St at em ent . The Out com e Budget 2008- 09 of t he Depart m ent does not even m ent ion t he num ber of wom en beneficiaries availing t he schem e. Therefore, t here is no inform at ion on assum pt ion behind placing t he schem e under Part B. Moreover, t he M inist ry of M inorit y Affa irs set up in 2006 st ill does not report it s pro- wom en com ponent in t he Gender Budget ing St at em ent . This is despit e t he fact t hat t he Annual Repor t 2007- 08 of t he Minist ry claim s t hat t he Nat ional Minorit ies Developm ent and Finance Corporat ion cat ered t o around 85 % wom en beneficiaries and t he scholarship schem es run by t he Minist ry earm ark 30 % scholarships for girls. Backward Regions Grant Fund ( BRGF) and Jawaharlal Nehru Nat ional Urban Renewal Mission ( JNNURM) are t w o flagship schem es of t he cent ral governm ent w it h large budget out lays; how ever t hey do not figur e y et in t he Gender Budget ing St at em ent . We m ust not e here t hat by incorporat ing appropriat e changes in t he operat ional guidelines of various developm ent schem es, for im proving coverage of wom en beneficiaries in t he schem es, t he governm ent can bring all t hese im port ant developm ent schem es w it hin t he purview of gender budget ing. Ov e r la p be t w e e n t h e Ge n de r Bu dge t in g St a t e m e n t a n d Ch ild Bu dge t in g St a t e m e n t i n Un ion Bu dge t As m ent ioned earlier, t he Gender Budget ing St at em ent w as int r oduced in Union Budget for 2005- 06, and it s coverage of various Union Governm ent Depart m ent s has been ext ended in t he subsequent Union Budget s. Recent ly, a Child Budget ing St at em ent has been int roduced in Union Budget for 2008- 09, w hich com piles t he budget out lays for all t hose schem es w hich ar e believed t o be beneficial alm ost ent ir ely for childr en ( i.e. all per sons up t o 18 year s of age) . Concept ually , t he t w o St at em ent s ar e m eant t o answ er t he follow ing quest ions: ( i) What is t he shar e of t ot al union budget out lay w hich is ex pect ed t o benefit w om en? ( Gender Budget ing St at em ent ) ( ii) What is t he shar e of t ot al union budget out lay w hich is ex pect ed t o benefit childr en? ( Child Budget ing St at em ent ) I t is but obv ious t hat t her e w ould be an ov er lap bet w een t hese t w o St at em en t s, since girls below 18 years of age figure am ong t he beneficiaries in bot h t he sect ions m ent ioned above. Accordingly, t he budget out lays for schem es ( or specific shar es of out lays for som e com posit e expendit ur e schem es) benefit ing girl children should appear bot h in t he Gender Budget ing St at em ent as well as t he Child Budget ing St at em ent . However, som e of t he im port ant m inist ries in t he Union Governm ent , viz. Wom en and Child Developm ent , Hum an Resource Developm ent , and Healt h and Fam ily Welfare, seem t o have been unaw ar e of t his logic. This is because sever al schem es w it h clear benefit s for gir l childr en, w hich have been included in t he Child Budget ing St at em ent , hav e been left out of t he Gender Budget ing St at em ent in 2008- 09. Som e prom inent exam ples of such schem es left out of t he Gender Budget ing St at em ent in 2008- 09 are t he following: Minist r y of Wom en and Child Dev elopm ent • I nt egr at ed Child Dev elopm ent Ser v ices ( I CDS) • I nt egr at ed Child Pr ot ect ion Ser v ices ( I CPS) • Raj iv Gandhi Nat ional Cr èche Schem e • Shishu Gr eh 81 BACKGROUNDNOTE • Sch em e f or Welf ar e of Ch ildr en in Need of Car e an d Pr ot ect ion Minist r y of Healt h & Fam ily Welfar e • Rout ine I m m unisat ion Pr ogr am m e • Pulse Polio I m m unisat ion Minist r y of Hum an Resour ce Dev elopm ent • Sar v a Shik sha Abhiy an • Mid Day Meal schem e I n case of each of t hese schem es, if gir l childr en ar e ex pect ed t o const it ut e at least 30 % of t he beneficiar ies t hen t he schem e m ust be included in Par t B of t he Gender Budget ing St at em ent . Roa dm a p for Ge n de r Bu dge t in g a n n ou n ce d by t h e Un ion Gove r n m e n t in 2 0 0 5 - 0 6 Union Budget for 2005- 06 had docum ent ed t hat an exper t gr oup on “ Classificat ion Syst em of Governm ent Transact ions” , which had subm it t ed it s report in July, 2004, had out lined t he key issu es an d con cer n s f or t h e Un ion Gov er n m en t v is- à- v is Gen der Bu dget in g. Follow in g it s recom m endat ions, t he Union Governm ent had ident ified a num ber of init iat ives as significant for Gender Budget ing which are: ( i) Un der t ak in g a r ev iew of t h e pu blic ex pen dit u r e pr ofile of r elev an t Un ion Gov er n m en t Depart m ent s, t hrough t he gender lens; ( ii) Conduct ing beneficiar y - incidence analy sis; ( iii) Recom m ending specific changes in t he operat ional guidelines of various developm ent schem es so as t o im pr ove cover age of w om en beneficiar ies of t he public expendit ur es; and ( iv) Encouraging village wom en and t heir associat ions t o assum e responsibilit y for all developm ent schem es relat ing t o drinking wat er, sanit at ion, prim ary educat ion, healt h and nut rit ion. ( as st at ed in Gender Budget ing St at em ent , Union Budget for 2005- 06, GoI ) . How ever, even t hough m ore t han t hree years have passed since t hen, t he Union Governm ent has been able t o inst it ut ionalize only t he fir st of t he four m easur es list ed abov e. Needless t o add t hat only a r ev iew of public ex pendit ur e pr ofile of t he v ar ious Depar t m ent s, w it hout any concom it ant effor t s at beneficiar y incidence analy sis or incor por at ing gender sensit iv e changes in operat ional guidelines of developm ent schem es or giving wom en a visible say in im plem ent at ion of schem es at t he grassroot s level, w ould not go far in im proving t he im pact of Union Budget on wom en in I ndia. Thus, gender budget ing being carried out in t he Union Governm ent has lacked dept h, and consequent ly, t he governm ent has lit t le t o claim in t erm s of im proving t he im pact of Union Budget on wom en in I ndia. V. Challenges Ahead Concer ns of w om en in our count r y cannot be addr essed t hr ough t he int er v ent ions of Minist r y of Wom en and Child Dev elopm ent alone. Sev er al aspect s lik e t he changing dem ogr aphics of agricult ure sect or ( wit h m ore t han 75 % of all wom en workers engaged in agricult ure and 85 % of rural all wom en workers being in agricult ure) , wom en’s disproport ionat ely large cont ribut ion t o t he expor t and ser vices sect or , and a lar ge shar e w or ker s in t he unor ganised sect or s being w om en— all need t o be fact or ed in w hile m aking policies for t he w hole econom y. I n case of each of t hese sect or s, t he gov er nm ent needs t o m ak e concer t ed effor t s t o addr ess w om en’s concer ns t hr ough: a. Recognising w om en’s cont ribut ions, addressing t heir specific concerns and organising t heir v oice; b. I nvest ing in skills of wom en and upgrading t heir work spaces and providing com m on work facilit ies; c. Pr ov iding t hem access t o new t echnologies and cr edit schem es; and d. Paying special at t ent ion t o cast e and m inorit y derived exclusion wit hin gender. Gender budget ing is a t ool t hat seeks t o at t ain t he larger goal of gender m ainst ream ing. Unt il now , gender budget ing in t he Union Gover nm ent has been lim it ed m ainly t o answ er ing t he quest ion ‘how m uch of public spending is direct ed t ow ards w om en’. How ever, t he coverage of gender budget ing needs t o be m ade broader and it s param et ers need t o be m ade m uch deeper. BACKGROUNDNOTE 82 Unt il now , t he gender budget ing effort s have prim arily concent rat ed on expendit ures in ‘w om en r elat ed’ sect or s and sev er al cr ucial aspect s lik e t ax at ion, t r ade, capit al flow s, et c. hav e r em ained out of t he purview. Gender budget ing should not be confined t o t he program m es/ schem es run by t he m inist r ies, since it s’ success is lar gely cont ingent on how far t he m acr o level policies ar e engender ed. One of t he m ain act iv it ies in gender budget ing as env isaged by t he Minist r y of WCD w as t o set up Gender Budget Cells in all cent ral governm ent m inist ries for which an allocat ion of Rs. 3 crore has been m ade under t he ‘Gender Budget ing’ Schem e in 2008- 09. Alt hough, alm ost 50 Minist ries/ Depart m ent s have already set up Gender Budget Cells, hardly any inform at ion is available on t he funct ioning of t he sam e. Ther efor e, it is im per at ive t hat t he Cells w hich have been for m ed in t he Union Governm ent are m ade act ive in pract ice. Moreover, m inist ries such as Minist ry of Finance, Minist ry of Road Transport and Highways, Minist ry of Minorit y Affairs and Depart m ent of Per sonnel and Tr aining am ong ot her s have st ill not set up GBCs, claim ing t hat t hey ar e ‘gender neut ral’. A huge challenge lies before t he MWCD t o sensit ise t he Minist ries/ Depart m ent s t o t ake up gender audit of t heir policies and program m es, so t hat t he Gender Budget Cells achieve t heir goal. The Mid t erm Appraisal of t he Tent h Five Year Plan not ed dism al im plem ent at ion of t he Wom en’s Com ponent Plan, even for Minist ries having a higher pot ent ial for report ing on t heir WCP. Effort s need t o be m ade t o st rengt hen WCP since earm arking at least 30 % of Plan funds for wom en at t he v er y least for ces officials t o t hink of t he im pact of policies on w om en w hich m ight not happen ot her w ise. As not ed in t he previous sect ion, m any Minist ries st ill do not explain t he assum pt ions behind placing specific funds for w om en in t he Gender Budget ing St at em ent . This show s a lack of seriousness on t he part of t he Minist ries/ Depart m ent s in report ing on t he provisions m eant for w om en. Proper j ust ificat ion needs t o be given by every Minist ry/ Depart m ent report ing in t he St at em ent . Also, as right ly suggest ed in t he St eering Com m it t ee Report for t he 11 t h Plan, in order t o ensure t hat funds act ually r each w om en, a ‘non- lapsable pool’ of w om en’s fund could be cr eat ed in ev er y St at e and also at t he Cent r e. And, in case of under - ut ilisat ion of funds allocat ed for w om en specific pr ogr am m es/ schem es under any Minist r y ( Cent r al or St at e) , t he unspent funds should be t r ansfer r ed t o t his pool of r esour ces. Mor eov er , t he Union Gov er nm ent should im plem ent t he gender budget ing m easur es it had announced in 2005- 06, and conduct beneficiar y - incidence analy sis for im por t ant schem es; incor por at e specific changes in t he oper at ional guidelines of v ar ious dev elopm ent schem es so as t o im prove t he coverage of w om en beneficiaries of t he public expendit ures; and enable village wom en and t heir associat ions t o assum e responsibilit y for all developm ent schem es relat ing t o drinking wat er, sanit at ion, prim ary educat ion, healt h and nut rit ion. Endnotes : 1 Global Em ploy m ent Tr ends for Wom en, 2 0 0 7 83 BACKGROUNDNOTE Public Spe nding by t he Union Gove r nm e nt : I ssues from t he Perspect ive of Children Sa k t i Gold e r “ Any st r at egy for r em oving dispar it ies, br idging divides, and ensur ing t he w ell- being of our people, m ust begin by r espect ing t he r ight s of our child populat ion. Right s based dev elopm ent of childr en m ust be at t he cent r e of t he 11t h Plan. We m ust ensur e t hat our childr en do not lose t heir childhood because of w or k, disease or despair .” - Approach Paper 11 t h Five Year Plan, 2007. Despit e an im pressive growt h and som e significant developm ent s in m any areas, I ndia is st ill quit e unsuccessful in assur ing t he r ight s t o sur vival, pr ot ect ion and developm ent of a m aj or it y of t he t ot al 400 m illion childr en in t he count r y . Som e of t he r ecent ev idences, gener at ed by t he Nat ion al Fam ily Healt h Su r v ey ( NFHS- 3 ) , h av e poin t ed ou t t h e glar in g deficien cies in t h e developm ent of childr en in I ndia. I t is quit e dist ur bing t o not e t hat t hese deficiencies have per sist ed ov er t he last decade in case of sev er al of t he out com e indicat or s for childr en. Thus, t o cr at e an envir onm ent t o m eet t heir basic needs, im pr ove t he qualit y of t heir childhood and pr epar e t hem t o be good cit izens of t he nat ion ar e t he m ost per t inent issues. I n light of t his, it is r elev ant t o discuss t he possible im plicat ions of t he Union Budget for t he dev elopm ent of children in t he count ry. First ly, it w ould be w ort hw hile t o t rack t he out lay s on child- specific pr ogr am m es/ schem es in t he Union Budget s of t he r ecent y ear s in or der t o build a case for incr easing significant ly t he pr ior it y on funding of im port ant program m es/ schem es for children in t he fort hcom ing Union Budget . Furt her, an at t em pt has also been m ade here t o appr aise t he key init iat ives t aken by t he Unit ed Progressive Alliance ( UPA) Governm ent for child developm ent and also t he allocat ion for t hat purposes in t he union budget s. I t also highlight s t he significance of Union Budget 2009- 10 from t he point of v iew of t he m easur es for child dev elopm ent t hat hav e been pr oposed for t he 11t h Five Year Plan and last ly, pr esent s a few point er s w it h r egar d t o t he expect at ions fr om Union Budget 2009- 10 in t erm s of t he priorit y t o be accorded t o invest m ent s for children. I . Deficits in Developm ent of Children in I ndia I n spit e of significant declining in t he I nfant Mort alit y Rat e ( I MR) over t he last one and half decades, I ndia ( 58 per 1000 live birt hs in 2004) is st ill lagging behind even com pared t o m any developing count ries, for inst ance Sri Lanka ( 15 in 2003) and China ( 37 in 2003) . More im port ant ly, t he aggr egat e I MR for I ndia conceals a v ast dispar it y per sist ing acr oss t he St at es, especially bet w een t he six econom ically backw ar d St at es, viz. Ut t ar Pr adesh, Madhya Pr adesh, Assam , Orissa, Raj ast han and Bihar ( I MR above 60 per 1000 live birt hs in 2005- 06 for each of t hese, according t o Nat ional Fam ily Healt h Survey- I I I ) and t he rest of t he st at es. This alarm ingly high infant m or t alit y could be at t r ibut able t o v ar ious fact or s lik e low v accinat ion cov er age, ut ilizat ion of ant enat al car e, inst it ut ional deliv er ies et c. and it has been w ell dem onst r at ed fr om t he dat a pr ovided by Nat ional Fam ily Healt h Sur vey ( NFHS) . I t r eveals t hat t he vaccinat ion cover age ( am ong children aged 12- 23 m ont hs) in I ndia has im proved very m arginally from 42 percent in 1998- 99 t o 44 per cent in 2005- 06. While t he v accinat ion cov er age in 2005- 06 is found t o be t he lowest in Ut t ar Pradesh, Raj ast han, Assam and Bihar, t he progress in t his regard bet ween 199899 and 2005- 06 ( am ong t he econom ically back w ar d St at es) has been t he slow est in case of Ut t ar Pr adesh. Wit h r egar d t o ant e- nat al car e ut ilized by w om en ( i.e. t he per cent age of w om en w ho ut ilized any ant e- nat al car e pr ov ided by sk illed per sonnel for r easons r elat ed t o pr egnancy at least once dur ing pr egnancy ) , t he St at es lik e Madhy a Pr adesh, Raj ast han and Ut t ar Pr adesh have recorded significant progress bet ween 1998- 99 t o 2005- 06, alt hough Bihar and Orissa are lagging behind in t his respect . However, t he progress in coverage of inst it ut ional deliveries has been slow w it h only 40.7 per cent cov er age in t he count r y in 2005- 06 ( NFHS- I I I ) . Again, t he econom ically backward St at es like, U.P., Bihar, M.P., Raj ast han and Assam were lagging far behind ot her St at es in t erm s of coverage of inst it ut ional deliveries in 2005- 06. The NFHS- I I I figur es per t aining t o I MR, v accinat ion cov er age, ut ilizat ion of ant e- nat al car e by w om en, and BACKGROUNDNOTE 84 cov er age of inst it ut ional deliv er ies in t he count r y clear ly point t o t he v er y slow pr ogr ess r ecor ded w it h r egar d t o m ost of t hese by t he count r y in gener al, and by t he econom ically back w ar d St at es like U.P., Bihar, Raj asthan, Assam and M.P., in particular. NFHS- I I I also shows a very dist urbing pict ure, regarding child nut rit ion, which is regarded as ver y im por t ant because t he nut r it ional st at us of childr en in t heir ear ly childhood is know n t o have a st rong bearing on t heir developm ent lat er in life. The NFHS reveals t hat in bet w een 199899 t o 2005- 06, t he proport ion of underweight children am ong all children under 3 years has declined by only 1 per cent ; fr om 47 per cent t o 46 per cent . I n t his r egar d, t he w or st per for m er s are Madhya Pradesh ( 60 percent in 2005- 06) and Bihar ( 58 percent in 2005- 06) . Thus, t he poor out com es in nut rit ional st at us of children in I ndia have persist ed, and t his problem has det eriorat ed in t he St at es of M.P. and Bihar. As regards educat ional at t ainm ent s of children, alt hough Gross Enrolm ent Rat ios for boys and girls at t he level of prim ary schooling has gone up significant ly, t he dropout rat es at t his level st ill cont inue t o be unaccept ably high. I n upper pr im ar y classes, t he dr opout r at es for bot h boy s and gir ls ar e as high as high 52 per cent ( as of 2003- 04) . At t he level of secondar y schooling, t he enrolm ent rat es for bot h boys and girls are ext rem ely low, which deserves im m ediat e. Also, in m ost of t he 15 m aj or St at es, t he dr opout r at e for gir ls has been higher t han t hat for boys. While t he indicat or s of school enr olm ent and dr opout pr esent a bleak pict ur e, it m ust also be not ed her e t hat t he lear ning achiev em ent s of childr en in m any of t he St at es hav e been found t o be poor . Thus, child educat ion cont inues t o be one of t he m ost significant ar eas w her e bet t er st at e int ervent ion is called for. Pr ot ect ion of childr en in difficult cir cum st ances is anot her im por t ant ar ea, w hich needs t o be highlight ed here. I n I ndia, m illions of children, t hose engaged in child labour, st reet children, child pr ost it ut es, childr en of pr ost it ut es, handicapped childr en, childr en affect ed by calam it ies and j uv enile delinquency , et c. ar e ex posed t o differ ent k inds of r isk s. For t he pr ot ect ion of such childr en ex posed t o differ ent k inds of difficult cir cum st ances, a ser ious and com pr ehensiv e int er v ent ion fr om t he gov er nm ent is essent ial. Thus, w it h r egar d t o each of t he im por t ant sect or s r elat ing t o childr en, i.e. child healt h and sur vival, child nut r it ion, child educat ion and pr ot ect ion of childr en in difficult cir cum st ances, t her e ar e per sist ing pr oblem s in t he count r y, w hich call for bet t er policies and great er priorit ies for children. I I . Com m it m ent s for Children and Policy I nit iat ives of t he Union Governm ent in t he Recent Years Considering t he grim realit y surrounding children, t here is an urgent need t o t ake proper policy init iat ives. When t he present Unit ed Progressive Alliance ( UPA) Governm ent cam e int o t he power, it prom ised a significant st epping up of public spending on crucial econom ic and social services. Som e of t he m aj or prom ises m ade in t he Nat ional Com m on Minim um Program m e ( NCMP) , which specifically t alk ed about childr en, w er e t he follow ing: • • • • The UPA governm ent w ill prot ect t he right s of children, st rive for t he elim inat ion of child labour, ensure facilit ies for schooling and ext end special care t o t he girl child. The UPA will also universalize t he I nt egrat ed Child Developm ent Services ( I CDS) schem e t o pr ovide a funct ional Anganw adi in ever y set t lem ent and ensur e full cover age for all childr en. Nut rit ion program m es, part icularly for t he girl child, will be expanded on a significant scale. The UPA gover nm ent w ill ensur e t hat at least one- t hir d of all funds flow ing int o Panchayat s will be earm arked for program m es for t he developm ent of wom en and children. Apart from t hose prom ises in t he NCMP, Governm ent of I ndia has also m ade specific com m it m ent s in t he at nat ional as well as int ernat ional fora, such as t he nat ional developm ent goals as envisaged in t he Tent h & Elev ent h Fiv e Year Plan and MDGs ( t o be achiev ed by 2015) t o st r iv e for pr ot ect ion of childr en’s r ight s and acceler at e developm ent of childr en in t he count r y. I n t he 11 t h Fiv e Year Plan, som e com pr ehensive set of policy init iat ives has been pr oposed, viz. 85 BACKGROUNDNOTE • • • • • • • • • • • • • • • • Developing specific int ervent ions t o address m alnut rit ion, neonat al, and infant m ort alit y. Cr eat ing child- fr iendly pr ot ect iv e ser v ices. I dent ifying t he m ost vulnerable and m arginalized sect ions of children and ensuring age and sit uat ion- specific int er v ent ions. Reviewing all legal provisions for children and undert aking necessary am endm ent s based on int ernat ional com m it m ent s. Ensur ing effect ive im plem ent at ion of law s and polices by per sonnel t r ained t o w or k w it h childr en. Est ablishing child im pact as a cor e indicat or of Elev ent h Plan int er v ent ions, w it h special em phasis on t he st at us of t he gir l child. Creat ing a prot ect ive environm ent for children t hrough im plem ent at ion of schem es and program m es based on t he best int er est of t he child. Som e of t he current init iat ives only addr ess t he needs of childr en once t hey hav e fallen t hr ough t he pr ot ect iv e net . While t hese init iat iv es t o ident ify such childr en and r ehabilit at e t hem ar e cr it ical, t her e is an equal need for legislat ive changes and program m at ic int ervent ions; so t hat prevent ion is foregrounded and children grow up in a prot ect ive environm ent . Under t ak ing a child r ight s r ev iew of all ex ist ing dev elopm ent al policies and plans t o assess t heir im pact on children and t o ensure t hat children are not furt her m arginalized. Recognizing t hat crèches and day care are im port ant for child developm ent , em pow erm ent of wom en, and ret ent ion of girls in schools. Ensuring survival of t he girl child and her right t o be born. Shift t o ‘lifecycle and capabilit y approach’ w here t he girl child’s cont ribut ion in econom ic and social t erm s is recognized. Ensuring m ult i- pronged program m e, focusing on prevent ing children from falling out of t he prot ect ive net , am eliorat ive init iat ives for children who are already out of t he prot ect ive net , and ensuring long- t erm and sust ainable rehabilit at ion by upgrading qualit y of services and addressing regional im balances. Recognizing t hat children are best cared for in t heir own fam ilies, st rengt hening fam ily capabilit ies t o car e and pr ot ect t he child. Ensur ing inst it ut ional car e t o t hose childr en w ho need t he sam e. I nvolving PRI s, VOs, and urban local bodies in im plem ent at ion, m onit oring, and evaluat ion by dev olv ing pow er s and r esour ces t o t he Panchay at lev el, and pr ov iding t hem w it h t echnical and adm inist r at ive suppor t . Recogn izin g ‘Ch ild Bu dget in g’ as an im por t an t policy an aly sis t ool t o t ak e st ock of dev elopm ent inv est m ent s for childr en and ident ify gaps in r esour ce inv est m ent and ut ilizat ion. St r engt hening capacit y of fam ilies and com m unit ies, police, j udiciar y , t eacher s, PRI r epr esent at ives, bur eaucr at s, and ot her im plem ent at ion per sonnel w ho deal dir ect ly w it h childr en. I n t he back dr op of t he condit ions of t he childr en as w ell as t he com m it m ent s of t he gov er nm ent s, it w ould be w or t hw hile t o t ake st ock of t he m aj or init iat ives t aken by t he pr esent UPA Gover nm ent w it h regard t o t he above- m ent ioned com m it m ent s. I n or der t o pay focused at t ent ion t o t he pr oblem s of w om en and childr en, t he Gover nm ent Has creat ed a separat e Minist ry of Wom en and Child Developm ent , which was earlier a Depart m ent under t he Minist ry of Hum an Resource Developm ent . A com prehensive Nat ional Plan of Act ion for Children, 2005 has been drawn up for t im e- bound achievem ent s in t erm s of reduct ion of infant and child m ort alit y and HI V prevalence in infant s, universal access t o drinking w at er and basic sanit at ion, and t he elim inat ion of child m arriages as well as t he incidence of disabilit ies due t o polio. The Gover nm ent has init iat ed som e legislat ive int er vent ions for pr ot ect ion of child right s, which include t he Com m issions for Prot ect ion of Child Right s Bill, 2006 which provides for const it ut ion of a Nat ional Com m ission, as well as St at e Com m issions, for prot ect ion of child r ight s, and Childr en’s Cour t s for t r ying offences against childr en and inst ances of violat ion of child right s w it hout delay. A Nat ional Com m ission for Prot ect ion of Child Right s w as const it ut ed in February 2007, which would st udy and m onit or all m at t ers relat ing t o child right s, exam ine and review legal safeguards, recom m end m easures for effect ive im plem ent at ion of laws, review and suggest am endm ent s t o exist ing laws, look int o cases involving violat ion of child right s, and m onit or im plem ent at ion of laws and program m es for children. I n 2006, t he Governm ent brought BACKGROUNDNOTE 86 an Am endm ent t o t he Juvenile Just ice ( Care and Prot ect ion of Children) Act , 2000. This am endm ent is m eant t o incorporat e progressive m easures and safeguards and int roduce m odel rules under t he Act . The Pr ohibit ion of Child Mar r iage Bill 2006 w as enact ed in t he Wint er Session of t he Parliam ent in 2006. Apart from t hese legislat ive init iat ives, t he UPA Governm ent has also t aken som e specific policy init iat ives for addressing t he developm ent deficit s of children, w hich according t o one of t he UPA docum ent s ( Repor t t o t he People: UPA Gover nm ent 2004 – 2006) include t he follow ing. • The phased ex pansion of I CDS schem e for univ er salising I CDS, t he near ly univ er sal Nat ional Cooked Mid- Day Meal Program m e, and universalised Kishori Shakt i Yoj ana. • The schem e for cr èches and day car e cent r es has been r ev ised w it h enhanced out lay s for im proved and bet t er crèche facilit ies t o children and working m ot hers, as well as t raining for service providers, and a new schem e launched, viz., t he Raj iv Gandhi Nat ional Crèche Schem e for t he Children of Working Mot hers. • Over a t housand Kast urba Gandhi Balika Vidyalayas have been sanct ioned in educat ionally backw ar d blocks of 21 st at es t o pr ovide fr ee r esident ial educat ion t o under pr ivileged gir ls at t he upper prim ary level. Public spending on im por t ant social ser vices, like, educat ion, healt h & fam ily w elfar e, and w at er supply & sanit at ion, et c. ar e likely t o have an im pact on fam ily w ell- being and t he com m unit y w hich in t ur n can hav e significant posit iv e im plicat ions for childr en. Fr om t his per spect iv e, per for m ance of t he UPA Gov er nm ent has been appr eciable. I n t he last few y ear s, allocat ions for som e of t he im por t ant social sect or schem es, such as, Sar va Shiksha Abhiyan ( SSA) , Nat ional Rural Healt h Mission ( NRHM) , I CDS, Mid Day Meals, and Tot al Sanit at ion Cam paign ( TSC) have been st epped up not iceably. Also, t he Nat ional Rural Em ploym ent Guarant ee Schem e ( NREGS) launched by t his Gover nm ent is syner gist ically linked t o t he developm ent of r ur al poor and m arginalized com m unit ies and t heir children. How ev er , t he adequacy of t he public r esour ces v is- à- v is t he needs and t heir dist r ibut ion acr oss var ious child r elat ed sect or s, t r anslat ing budget ar y allocat ions int o bet t er deliver y of public ser v ices ( or bet t er st at e int er v ent ion) ar e st ill our concer ns, especially in t he back w ar d St at es. Sect ion I I I : Resources for Children in t he Union Budget I n a count r y w her e childr en ar e clear ly a disadv ant aged sect ion of t he populat ion, t her e ex ist s a st r ong case for ident ify ing t hat par t of t he public ex pendit ur e w hich is m eant specifically for addr essing t he needs of childr en. I t should be clar ified at t he v er y beginning t hat t he t ot al m agnit ude of public ex pendit ur e on child specific schem es, w hich ar e specifically m eant for addressing t he needs of children, is referred t o as t he m agnit ude of t ot al ‘Child Budget ’. We m ust not e here t hat in Union Budget 2008- 09, t he Governm ent has int roduced a St at em ent on ‘Child Budget ing’ ( called Budget Pr ov isions for Schem es for t he Welfar e of Childr en, St at em ent 22, Expendit ure Budget Vol. I , Union Budget 2008- 09) . This is cer t ainly a w elcom e st ep. This St at em ent capt ur es m ost of t he child specific schem es w hich figur e in t he Union Budget . I n t he analy sis pr esent ed her e, how ev er , w e hav e included sev er al schem es t hat do not figur e in t he said St at em ent . As a result , t he m agnit ude of ‘Child Budget ’ as show n here exceeds t he m agnit ude of ‘Child Budget ’ as per t he new St at em ent in Union Budget . The Union Gover nm ent Minist r ies, w hich have child specific schem es, ar e: Wom en and Child Dev elop m en t , Hu m an Resou r ce Dev elop m en t , Healt h an d Fam ily Welf ar e , La b o u r a n d Em ploym ent , Social Just ice and Em pow er m ent , Tr ibal Affair s, Minorit y Affairs, and Yout h Affair s and Spor t s. M a gn it u de of t h e ‘Ch ild Bu dge t ’ in Un ion Bu dge t 2 0 0 8 - 0 9 As shown in Chart 1 below, t he m agnit ude of t ot al ‘Child Budget ’ wit hin t he Union Budget , i.e. t he aggr egat e out lay for child specific schem es as a pr opor t ion of t ot al budget out lay by t he Union Governm ent , has increased from 4.93 percent in 2007- 08 ( RE) t o 5.35 percent in 2008- 09 ( BE) . 87 BACKGROUNDNOTE I f w e t ak e int o account t he fact t hat childr en ( i. e. all per sons up t o t he age of 18 y ear s) const it ut e m or e t han 40 per cent of t he count r y ’s populat ion and t hat m any of t he out com e indicat or s for childr en, such as t hose capt ur ed by t he successiv e r ounds of Nat ional Fam ily Healt h Sur v ey ( NFHS) , point t o t he disadvant aged st at us of our childr en; t he m agnit ude of Child Budget at 5.35 percent of t ot al Union Budget in 2008- 09 ( BE) is quit e inadequat e. Ther e can be lit t le doubt about t he fact t hat giv en t he st r ik ing deficit s in t he dev elopm ent of childr en in I ndia, t he pr ior it y accor ded t o specific ( or , dir ect ) inv est m ent s for childr en needs t o be m uch higher t han a m eager 5 per cent of t he Budget . Chart 1: Total Outlays for Child Specific Schemes as % of Total Union Budget 8.00 7.00 6.00 5.35 5.00 4.63 4.93 4.17 4.00 3.00 2.20 2.54 2.00 1.00 0.00 2003-04 (RE) 2004-05 (RE) 2005-06 (RE) 2006-07 (RE) 2007-08 (RE) 2008-09 (BE) N o t e : Th e f i g u r e f o r To t a l Ex p e n d i t u r e f r o m Un i o n Bu d g e t i n 2 0 0 7 - 0 8 ( RE) u se d i n t h e p r e se n t a n a l y si s d o e s n o t i n cl u d e t h e Rs. 3 5 , 5 3 1 Cr o r e w o r t h o f n o n - p l a n t r a n sa ct i o n u n d er t a k en i n 2 0 0 7 - 0 8 r el a t i n g t o t h e t r a n sf er o f RBI ’ s st a k e i n SBI t o t h e Go v er n m en t . Source: Go v e r n m e n t o f I n d i a , Ex p e n d i t u r e Bu d g e t Vo l . I & I I , Un i o n Bu d g e t , v a r i o u s i ssu e s. The increase in t he m agnit ude of ‘Child Budget ’ wit hin t he Union Budget 2008- 09 ( BE) is m ainly on account of t he incr eases in Union Budget out lay s on I nt egr at ed Child Dev elopm ent Ser v ices (I CDS) , Reproduct ive and Child Healt h ( RCH) program m e and higher out lays for elem ent ary and secondar y educat ion under t he Depar t m ent of School Educat ion and Lit er acy . These ar e cer t ainly w elcom e st eps in t he last Union Budget . Pr ior it isa t ion of Ou t la ys Ea r m a r k e d for Ch ildr e n in Un ion Bu dge t 2 0 0 8 - 0 9 While t he m agnit ude of ‘Child Budget ’ is st ill inadequat e, t he priorit isat ion of t his t ot al am ount earm arked for children in Union Budget 2008- 09 shows a skewed pat t ern. The present analysis divides t he ent ire ‘Child Budget ’ int o four cat egories, viz. Early Childhood Care & Developm ent , Child Healt h, Child Educat ion, and Child Pr ot ect ion, based on t he differ ent needs of childr en. Each of t he child specific schem es select ed fr om t he Union Budget is consider ed only under any one of t hese four cat egor ies. Chart 2 below shows t he sect oral com posit ion of t he t ot al ‘Child Budget ’ in Union Budget 200809. What it im plies is: wit hin t he t ot al resources earm arked for children in Union Budget 200809, as high as 72 percent is m eant for Child Educat ion, 17 percent is m eant for Child Developm ent , 10 percent is m eant for Child Healt h and only 1 percent is m eant for Child Prot ect ion. This is very dist urbing given t hat m any recent evidences have highlight ed t he vulnerabilit y of children in t he count r y , especially t hose childr en w ho ar e in v ar ious k inds of difficult cir cum st ances. BACKGROUNDNOTE 88 Cha r t 2 : Se ct or a l Com posit ion of t he Tot a l Out la y for Childr e n in Union Budge t 2 0 0 8 - 0 9 Child Education 72% Child Protection 1% Early Childhood Care & Development Child Health 10% 17% Out lay s for ( schem es under t he sect or ) Ea r ly Ch ildh ood Ca r e & D e ve lopm e n t as a proport ion of t ot al out lays by t he Union Gover nm ent has incr eased fr om 0.84 per cent in 2007- 08 ( RE) t o 0.89 percent in 2008- 09 ( BE) . We m ay not e here t hat Union Budget out lay for I CDS has been increased from Rs. 4857 crore in 2007- 08 ( RE) t o Rs. 5665 crore in 2008- 09 ( BE) . Out lays for ( schem es under t he sect or ) Ch ild H e a lt h as a pr opor t ion of t he t ot al Union Budget out lay shows an increase from 0.45 percent in 2007- 08 ( RE) t o 0.54 percent in 2008- 09 ( BE) . We m ay not e here t hat out lay for RCH has been st epped up from Rs. 1629 crore in 2007- 08 ( RE) t o Rs. 2505 cr or e in 2008- 09 ( BE) . This is a w elcom e st ep giv en t he alar m ing st at e of out com es relat ing t o survival and healt h of children in t he count ry. However, t he Union Governm ent and t he St at es also need t o t ak e st r ong m easur es t o ensur e effect iv e ut ilizat ion of t hese out lay s. Out lays for Child Edu ca t ion ( schem es under t he sect or ) r egist er an incr ease fr om 3.6 per cent of t he t ot al Union Budget in 2007- 08 ( RE) t o 3.86 per cent of t he t ot al Union Budget in 2008- 98 ( BE) . While t he out lays for m any program m es/ schem es have been increased, t he out lay for SSA, t he flagship schem e of t he UPA Gover nm ent , show s a decline bet w een 2007- 08 ( RE) and 2008- 09 ( BE) . Despit e t he relat ively higher m agnit ude of Union Budget out lays for Child Educat ion, t he t ot al public spending on educat ion in t he count r y cont inues at a low lev el. Accor ding t o t he Econom ic Sur v ey for 2007- 08, t he t ot al budget out lay for Educat ion Depar t m ent s in t he Cent r e an d St at es com bin ed st ood at a m eagr e 2 . 8 4 per cen t of t h e GDP in 2 0 0 7 - 0 8 . Edu cat ion Depar t m ent s account for a subst ant ial chunk of t he t ot al public spending on educat ion in t he count r y . Hence, t her e can be no doubt about t he fact t hat ev en Child Educat ion r em ains under funded in t he gover nm ent budget s in I ndia. How ever , it is t he Child Pr ot ect ion sect or w hich appear s m ost neglect ed in t he Union Budget . The out lay on ( schem es m eant for t he sect or ) Child Pr ot e ct ion, regist ers an increase from 0.04 percent of t he t ot al Union Budget in 2007- 87 ( RE) t o 0.06 percent of t he t ot al Union Budget in 2008- 09 ( BE) . While t he out lay for I nt egrat ed Child Prot ect ion Schem e ( I CPS) has gone up, t he out lay for Nat ional Child Labour Proj ect ( NCLP) has been decreased in 2008- 09 ( BE) in com parison t o 2007- 08 ( RE) . 89 BACKGROUNDNOTE Ta ble 1 Un ion Bu dge t Ou t la ys for Ch ild Spe cific Sch e m e s 2004 -05 ( RE) 2 0 0 5 -0 6 ( RE) 2 0 0 6- 0 7 ( RE) 2007 -08 ( RE) 2 0 0 8- 0 9 ( BE) 2291.39 3947.91 4864.55 5642.24 6695.33 0.45 0. 78 0. 84 0.84 0. 89 1576.71 2806.72 2649.33 3016.29 4064.33 Allocat ions for Child Healt h as a proport ion of Tot al Expendit ure of Union Governm ent 0.31 0. 55 0. 46 0.45 0. 54 Budget ary Provisions for Child Educa t ion ( Rs. Crore) 8831.41 14294.1 19236.26 24244.56 29009.55 Allocat ions for Child Educat ion as a proport ion of Tot al Expendit ure of Union Governm ent 1.75 2. 81 3. 31 3.60 3. 86 Budget ary Provisions for Child Pr ot e ct ion ( Rs. Crore) 152 .87 173.04 183.53 283.79 429. 9 0.03 0.034 0.032 0.04 0. 06 13092.38 21597.82 26933.67 33186.88 40199.11 Tot al Out lays from Union Budget ( Rs. Crore) 505791 508705 581637 673842 750884 Tot a l Child -Spe cific Out la ys a s % of Tot a l Out la ys fr om Union Budge t 2 .5 9 4 .2 5 4 .6 3 4 .9 3 5 .3 5 Budget ary Provisions for Ea r ly Ch ildh ood Ca r e & D e ve lopm e nt ( Rs.Crore) Allocat ions for Child Developm ent as a proport ion of Tot al Expendit ure of Union Governm ent Budget ary Provisions for Child H ea lt h ( Rs. Crore) Allocat ions for Child Prot ect ion as a proport ion of Tot al Expendit ure of Union Governm ent Tot al Out lays for Child Specific Schem es ( Rs. Crore) N ot e s : BE: Budget Est im at es; RE: Revised Est im at es. Expendit ure Budget Volum e I I ( Not es on Dem ands for Grant s) in t he Union Budget docum ent s does not give Act uals, hence we have t aken Revised Est im at es for t he years from 20040 5 t o 2 0 0 8 - 0 9 . Tot al Ex pendit ur e figur es for 2 0 0 4 - 0 5 t o 2 0 0 7 - 0 8 ar e also Rev ised Est im at es. The figur e for Tot al Ex pendit ur e fr om Union Budget in 2007- 08 ( RE) used in t he pr esent analy sis does not include t he Rs. 35, 531 Cr or e wort h of non- plan t ransact ion undert aken in 2007- 08 relat ing t o t he t ransfer of RBI ’s st ake in SBI t o t he Governm ent . Sour ce: Com piled fr om Expendit ur e Budget ( Vol. I & I I ) , Union Budget , GoI , var ious year s. Wit h Union Budget 2008- 09, t he Governm ent has som e new schem es for children. Table 2 given below , com piles t hese new schem es for childr en. While t he launch of t hese schem es is a w elcom e st ep, t he m agnit ude of funds pr ovided for t hese schem es does not pr esent a pr om ising pict ur e. Ta ble 2 : N e w Sch e m e s for Ch ildr e n in Un ion Bu dge t 2 0 0 8 - 0 9 M in ist r y/ D e pt . Sch e m e ( Alloca t ion for 2 0 0 8 - 0 9 ) School Educat ion & Lit eracy Obj e ct ive Suppor t t o One Year Pr e- Prim ary To form ulat e a new Cent rally in Governm ent Local Body Schools Sponsored Schem e for providing ( Rs 1 0 0 cr or e ) assist ance for pre- prim ary classes ( Secondary Educat ion) in governm ent / local body schools. Schem e for upgrading 2000 To est ablish one girls host el in each KGBVs ( resident ial schools/ girls educat ionally backward block, host els) about 3500 in all. ( Rs. 8 0 cr or e ) New Model Schools To set up 6000 new high qualit y ( Rs.5 8 .8 0 cr or e ) schools, one in every block of t he count ry. BACKGROUNDNOTE 90 Based on t he discussion pr esent ed abov e, w e m ay conclude t hat t he effor t s of t he Union Governm ent over t he last few years at st epping up priorit ies for children in t he Union Budget leav e a lot t o be at t ained. • The t ot al m agnit ude of resources earm arked for children in Union Budget 2008- 09, at only 5.35 percent of t he t ot al Union Budget , appears inadequat e t o address t he various problem s confront ing children in I ndia. • Moreover, even wit hin t his sm all quant um of resources earm arked for children, t he sect oral com posit ion is heavily skew ed. The int er vent ions in Child Pr ot ect ion and Child Healt h sect or s are st ill grossly under funded. • Special at t ent ion needs t o be giv en t o t he public deliv er y sy st em s. 91 BACKGROUNDNOTE Pr ior it ie s for Sche dule d Ca st e s in t he Union Budge t D a lit Ar t h ik Adh ik a a r An dola n , N CD H R The I ndian econom y has under gone subst ant ial changes since t he announcem ent of t he econom ic reform s in 1991.The econom ic reform s involving several t rade, t ax and foreign exchange reform s brought about t he liberalizat ion of t he I ndian econom y. One of t he essent ial t hrust s behind t he reform s has been t he reduct ion of fiscal deficit and cut backs on public expendit ure as an im port ant m echanism t o achiev e t his. While successiv e gov er nm ent s at cent r e, adher ing t o neo- liber al econom ic policies, pr eside ov er t he cur t ailm ent of t heir ow n int er v ent ions, w e ar e confr ont ed w it h sev er al im por t ant quest ions and concer ns. What has t his gr ow t h com e t o m ean for t he m ar ginalized sect ions of societ y especially w hen t he neo- liber al econom ic policy st ipulat es a wit hdrawal of st at e support from t he various developm ent sect ors? Are t he developm ent m easures t ak en by t he gov er nm ent r eally m eet ing t he dem ands and needs of t hese sect ions? The pr esent ar t icle focuses on t he Budget because t his is t he st at em ent gov er nm ent pr esent s ev er y y ear t o t he count r y specifying t heir pr ior it ies and policies t ow ar ds t he econom ic and social developm ent of t he count r y . I . Ca st e Sy st e m a n d Econ om ic D e v e lopm e n t The I ndian societ y has hist or ically subscr ibed t o an in- egalit ar ian cast e sy st em w hich inv olv ed a scr ipt ur ally m andat ed, hier ar chically st r uct ur ed classificat ion of societ y int o v ar ious cast es. I t st ipulat es t he r ole, st at us and occupat ion of each cast e and disallow s any social m obilit y eit her w it hin or bet w een t he cast es t hr ough r eligious, social and econom ic sanct ions. The r eligious script ures played im port ant role in st ipulat ing t he norm s of t he syst em and any disapproval t o t he est ablished nor m s w er e m et w it h boy cot t , punishm ent s and at r ocit ies against t he v iolat or s. SCs hav e been at t he bot t om of cast e sy st em and hav e consist ent ly suffer ed fr om t he dual discr im inat ion of econom ic exploit at ion and social exclusion. Social exclusion in t he case of t he SCs ex t ends t o t he econom ic r ealm of w ages, em ploy m ent , and educat ion and so on. While t he m ass m ovem ent s have focused on securing for t he SCs civil and polit ical right s, t heir econom ic right s have rarely been fought for. Scheduled Cast e Sub Plan ( SCSP) is one of t he im port ant m echanism s for ensur ing econom ic j ust ice t o t he SCs. Ta ble 1 : St a r k diffe r e nce s in de ve lopm e nt indica t or s for SCs All I ndia SC Non SC/ ST I nfant Mort alit y Rat e 73 83 68 Lit eracy 65 55 69 Undernourished children under 47 54 44 5 Households wit hout access t o 40 44.15 37.15 Healt h care NSSO Survey, NFHS, Census 2001 The I nfant Mor t alit y r at e am ong SCs is 83 per cent and Child Mor t alit y r at e is 39 per cent w hich is higher t han non SCs w ho have I MR and CMR at 61per cent and 22 per cent r espect ively. Ar ound 56 percent of SC wom en suffer from anem ia. The m orbidit y am ong SC children is also high; m or e t han 3/ 4 t h of SC childr en ar e anem ic. Mor e t han half of t he SC childr en suffer fr om m alnut rit ion and under nut rit ion. Malnut rit ion is generally considered a com m on dissem inat or of depr ivat ion t hat r educes child sur vival. Accor ding t o 2001 census, t he lit er acy r at es for bot h SC/ STs w er e low er as com par ed t o t he non- SC/ STs. Lit er acy r at e at an all I ndia lev el is 65 per cent w her eas for t he SCs it is 55 per cent com par ed t o non SCs w hich is 69 per cent . Th e lit er acy r at e w as par t icular ly low am ong t he SC w om en ( 41.9 per cent ) . School at t endance w as about 10 per cent less am ong SC boy s t han ot her boy s, w hile t he differ ence am ong gir ls w as about 5 per cen t . BACKGROUNDNOTE 92 The indicat or of undernourishm ent ( in t erm of m inim um weight for age) of t he children is m uch h i g h er f o r SC ch i l d r en - 5 4 p er cen t f o r SC an d 4 4 p er cen t f o r n o n SC/ ST. Si m i l ar l y , undernourishm ent reflect ed in t erm s of st unt ing ( height for age) w as 52 percent for SC children and 43 per cent non SC/ ST childr en. I n 2000, ov er all, an av er age of about 40 per cent per sons/ households did not hav e access t o public healt h ser vices. The per cent age of per sons/ house holds w as low er am ong SCs as com par ed t o non- SC/ ST. The per cent age for t he SC w as 44.15 and for non SC/ ST w er e 53.55. Ta ble 2 : Acce ss t o Re sour ce s All I ndia SC Mont hly Per Capit a Expendit ure 361 Rs.285 Povert y 26 37 Aggr egat e Capit al Asset s 78783 49189 Landless 7.8 10 Non SC/ ST Rs.393 21 134500 6.2 NSSO Survey, Census 2001 I n year 2000, at all I ndia level, t he Mont hly Per Capit a Expendit ure for SCs was Rs. 285 m uch low er t han t he non- SCs w hich w as Rs.393. Wit h t he lack of access of fix ed sour ce of incom e and low wage earning and under em ploym ent t he SCs suffers from high incidences of povert y. I n 2000, in t he r ur al ar eas about 45 per cent of SCs w er e poor com par ed t o 21 per cent am ong t he non SCs. Com par ed w it h t he non SCs, t he incidence of aggr egat e pov er t y w as 70 per cent higher am ong SCs. About 80 percent of t he SCs live in rural areas. I n 2000, out of t he t ot al SC households only 16.8 per cent of t hem pur sued cult iv at ion as an independent self em ploy ed occupat ion, w her eas t he ot her s, non- SC/ ST t he per cent age w as m or e t han double ( 41.11 per cent ) . About 28 per cent of SC households had acquir ed som e access t o fix ed capit al asset s com par ed t o 56 per cent for ot her s households. The per cent age of landless households am ong t he SCs in r ur al ar eas is about 10 per cent com par ed w it h 6 per cent for Non- SC households. The per cent age of landless and near landless am ong SCs is about 75 per cent as com par ed t o 54 per cent for t he non- SCs. I I . Ge n de r D iffe r e n ce The developm ent of any gr oup / com m unit y m ust be assessed on t he basis of t he developm ent of wom en wit hin t hat group/ com m unit y. I n 2001, about 57 percent SC wom en workers in rural ar eas w er e agr icult ur al labor er s. Only 21 per cent w er e cult iv at or s com par ed t o non- SCs w ho w er e 45 per cent as cult ivat or s. I n r ur al ar eas 2.1 percent of SC wom en were unem ployed out of t he labour force as com pared t o 1.4 percent for non- SC/ ST wom en. A large num ber of SCs wom en are engaged in unclean occupat ions such as scavenging. SC wom en who work as wage labourer faced discrim ination in wage earning particularly in urban areas. I n 2001, the SC wom en casual wage labourers received daily wage earning of Rs. 37 com pared t o Rs.56 for non- SC/ ST ( Report on Working Group on the Em powerm ent of Scheduled Caste, Eleventh Five Year Plan) . I n 2001, the lit eracy rat e was lower am ong t he SC wom en ( 41.9 percent ) as com pared t o 58.2 percent for general fem ale populat ion. Besides low lit eracy rat e anot her problem of SC/ ST wom en was t he high drop-out rate am ong them . SC w om en have t he w or st healt h indicat or s, such as high m at er nal m ort alit y rat es and low nut rit ional st at us m easured by Body Mass I ndex ( BMI ) . The wom en from the SC groups have poor er lev el of n u t r it ion as com par ed t o n on - SC/ ST w om en . I n 1 9 9 9 / 2000, am ong SC w om en, 42 per cent had low BMI as com pared t o 33 percent of non- SC wom en.The m at er nal m or t alit y r at es ar e higher for SC w om en because of lack of access t o healt h ser v ices bot h public and pr iv at e. SC w om en ar e subj ect ed t o const ant har assm ent and v iolence fr om non- SCs. I I I . Sch e du le d Ca st e Su b Pla n The Scheduled Cast e Sub Plan ( SCSP) is a special st r at egy , w hich w as adopt ed in 1979 by Planning Com m ission ( Sixt h Five Year Plan) wit h t he prim e obj ect ive of giving special and focused at t ent ion t o social, econom ic and educat ional needs of Scheduled Cast es ( SC) . Under t his st rat egy, St at es/ UTs and Cent ral Minist ries are required t o form ulat e and im plem ent SCSP as part of t heir Annual Plans by earm arking resources from each sect ors of t he Plan in pr opor t ion t o t he SC populat ion. The t ar get ed flow of r esour ces t hr ough SCSP is int ended t o 93 BACKGROUNDNOTE pr ov ide addit ional benefit t o t he SC populat ion, ov er and abov e w hat t hey w ould get t hr ough t he nor m al Plan. This is necessar y t o br idge t he gap bet w een t he gener al populat ion and SCs in t erm s of different indicat ors of developm ent . Several recom m endat ions and inst ruct ions w ere circulat ed t o all m inist ries/ depart m ent s for t he im plem ent at ion of SCSP. Separat e Codes 789 w as allot t ed and a copy of let t er No. T- 14018/ 25/ 95- Codes/ 336 dat ed 01.09.1995 w as cir culat ed w it h t he cor r ect ion slip No. 251 dat ed 16.01.1995 for incor por at ion in par a 3.8 of Gener al Dir ect ion t o LMMHA ( List of Maj or & Minor Heads of Account s) by Com pt r oller and Audit or General t o all concerned in St at es/ UTs and Union of I ndia. Despit e all t hese at t em pt s no Minist ries/ Depart m ent s have been follow ing t he inst ruct ion, no allocat ions are m ade under SCSP and no separ at e code is opened. Look ing at t he gaps in allocat ions and im plem ent at ion, Planning Com m ission in 2005 again gave t he following inst ruct ions: 1. Earm arking of funds for SCSP from t ot al St at e plan out lay at least in proport ion t o SC populat ion 2. Making SCSP funds non divert ible and non lapsable 3. Mak ing t he social w elfar e depar t m ent / t he depar t m ent concer ned w it h t he dev elopm ent and welfare of SCs as t he nodal depart m ent for form ulat ion and im plem ent at ion of SCSP 4. Placing t he earm arked funds at t he disposal of nodal depart m ent concerned, w hich in t urn w ill r eallocat e t he funds t o sect or al depar t m ent s for im plem ent at ion of schem es dir ect ly r elev ant t o SC developm ent 5. Placin g t h e ear m ar k ed f u n d s f or SCSP u n d er sep ar at e b u d g et h ead / su b h ead f or each developm ent Depart m ent Since 1979 t ill dat e, t he SCSP has not been accept ed w hile m aking budget pr ovisions. The allocat ions under SCSP hav e been v er y low . The legit im at e am ount m eant t o benefit t he SCs has not been allocat ed and im plem ent ed properly. Thousands of crores of Rupees have been divert ed fr om t he SCSP t o ot her sect or s. Year 2 0 0 6- 07 BE 2 0 0 7- 08 BE 2 0 0 8- 09 BE Ta ble 3 : Ex clu sion of SCs in Tot al Plan Out lay ( Excluding Cent ral Assist ance for St at e Am ount and Union Territ ories) Du e 134757 21,830.63 1,58,491 25,675.54 1,83,528 29,731.54 t h e Un ion Bu dge t Am ount Allocat ed 7055. 86 12,517.91 13,783.13 Source: Union Budget , various years, www.indiabudget .nic.in Source: Union Budget , various years, www.indiabudget .nic.in BACKGROUNDNOTE 94 Am ount Denied 14,774. 7 7 13,157.63 15,948.41 Allocat ion t o SCs as % of Tot al Plan 5.2 7.9 7.5 The t ot al budget allocat ion under Plan Out lay ( ex cluding Cent r al Assist ance t o St at e Plans) for t he year 2008- 09 is Rs. 1,83,528 crores. Under t he SC Sub Plan ( SCSP) st rat egy, t he Governm ent of I ndia is liable t o allocat e Rs. 29,731.54 cr or es ex clusiv ely for SCs ( 16.2 per cent of t he t ot al plan budget ) but it has allocat ed j ust Rs. 13783.13 cr or es for t he w elfar e of SCs, w hich m eans, again, SCs have been deprived by Rs 15,948.41 crores. I n 2007- 08 BE, t here was overall increase in allocat ions t o SCs because of t he inclusion of new Minist r ies/ Depar t m ent s allocat ed funds for SCs. As a r esult t he pr opor t ion of t ot al Plan fund allocat ed t o SCs incr eased fr om 5.2 per cent in 2006- 07 ( BE) t o 7.9 per cent . Unfor t unat ely in 2008- 09( BE) it declined t o 7.51 per cent . The denied am ount t o SCs has also increased. I n 2007- 08 BE, it was Rs13157.63 crores. I t incr eased t o Rs.15948.41 crores in 2008- 09 ( BE) . The r est of t he Minist r ies/ Depar t m ent s – pr om inent ly Road Tr anspor t and Highw ays, Science and Technology, Land Resources, Yout h and Sport s, Agricult ure Research, Com m erce, Urban Developm ent and Wat er Resources have negligible or ‘Zero’ allocat ions. Minist ry of Social Just ice and Em pow er m ent has cut dow n allocat ions for pr e- Mat r ic scholar ship r educing it t o Rs.731 crores from Rs.831 crores of t he previous year. Depart m ent of Bio- t echnology has allocat ed only Rs.2.01 cr or es w hich is even less t han t he last year allocat ion of Rs.2.5 cr or es. Minist r y of Panchay at has decr eased t he am ount t his y ear t o Rs.20.1 cr or es fr om Rs.26.7 cr or es of t he previous year. Sim ilarly Minist ry of Wom en and Child Developm ent has allocat ed only Rs. 1134 cr or es com par ed t o last y ear allocat ion of Rs. 1464 cr or es. Out of 75 Depart m ent s, only 16 Depart m ent s/ Minist ries have allocat ed funds under SCSP excluding Minist ry of Social Just ice and Em powerm ent , Minist ry of Healt h and Fam ily Welfare, Depart m ent of School Educat ion and Lit eracy, Depart m ent of Higher educat ion, Minist ry of Micro, Sm all and Medium ent er pr ises, Minist r y of Rur al Dev elopm ent and Depar t m ent of Wom en and Child Developm ent . All Depart m ent s/ Minist ries have allocat ed nom inal funds. 95 BACKGROUNDNOTE Ta ble 4 : Pla n Ou t la y Ea r m a r k e d for SCs by Ce n t r a l Gove r n m e n t D e pa r t m e n t s/ M in ist r ie s D e pa r t m e n t / M in ist r y Tot a l Pla n Alloca t ion for t h e D e pt ./ M in ist r y in Un ion Bu dge t ( in Rs. Cr or e) 2 0 0 708 BE Dept . of Science & Technology Minist r y of Social Just ice & Em pow er m ent * Depart m ent of Rural Developm ent * Mi nist r y of Labour & Em ploym ent * Minist r y of Wom en & Child Developm ent * Dept . of Higher Educat ion ( Minist ry of HRD) * Dept . of School Educat ion & Lit er acy ( Minist r y of HRD) * Minist r y of Yout h Affair s and Spor t s * Minist r y of Agr icult ur e * Depart m ent of I nfor m at ion Technology * Depart m ent of Healt h & Fam ily Welfare * Minist ry of Micro, Sm all & Medium Scale I ndust r ies * Minist r y of Tex t iles * Depart m ent of Biot echnology * Minist r y of Cult ur e * Minist r y of Panchay at i Raj * Union Territ ory of Chandigar h Pla n Alloca t ion Ea r m a r k e d for SCs ( in Rs. Cr or e) 20 0 708 BE 2008 0 9 BE 2008 0 9 BE 1526 1530 3.0 3.0 2001 2400 1525.24 1820. 69 27500 31500 2893 2876. 6 325. 48 771.5 0.66 0.60 5793 7200 1464 1134 6480. 5 7593 769.86 1043. 6 22191 26800 3747.8 890 22.5 3.88 8090 12865. 6 7 96.2 249.2 1500 1680 20 22.4 15580 1704.72 0.20 0.20 76.22 75.86 10.52 9.13 0.20 0.08 25.27 15.75 11.88 13.74 16.89 15.77 3.21 0.44 1.19 1.94 1.33 1.33 12.29 12.01 26.00 3.92 22.64 3.57 0.37 0.57 0.22 0.60 0.60 0.42 4.05 3.70 4225. 6 700 13875 Pr opor t ion of Tot a l Pla n Alloca t ion of t h e M in ./ D e pt . Ea r m a r k e d for SCs ( in % ) 2 0 0 72008 08 0 9 BE BE 1871. 4 530 1794 137.8 406. 08 2243 2500 88 89.2 675 900 2.5 2.0 557 600 3.2 3.6 4770 4780 28.6 20 267. 63 304. 65 10.83 11.28 Note : * The Union Budget docum ent s do not segregat e t he t ot al allocat ions earm arked for SCs/ STs furt her t o show allocat ions separat ely for SCs and STs in t hese Minist ries/ Depart m ent s. We assum e here t hat following t he proport ion of SCs and STs in t ot al populat ion of t he count ry ( i.e. 16.2 percent for SCs and 8.2 percent for STs as in Census 2001) , out of t he t ot al funds ear m ar ked for SCs and STs t oget her , r oughly t w o- t hir d w ould be spent for SCs. So u r ce : Expendit ure Budget Vol. I and Vol. I I , Union Budget - 2007- 08 & 2008- 09. BACKGROUNDNOTE 96 Policy Age n da for t h e Fu t u r e : The not e show s t hat for 28 year s Gover nm ent of I ndia has not been t aking SCSP ser iously. Fr om planning t o allocat ion t o im plem ent at ion, SCSP is full of lacunae. There is no m onit oring m echanism developed t o m onit or t he flow t o t he beneficiaries. Planning Com m ission’s Working Group on Em pow erm ent of SC has suggest ed follow ing recom m endat ions for t he im provem ent in t he m echanism of SCSP from 2007- 08 onwards: • A fr esh classificat ion of Minist r ies int o r egulat or y and ser vice or ient ed should be under t aken. Wit hin service orient ed Minist ries, t hose engaged in act ivit ies, w hich are divisible in nat ure, should be m ade t o st rict ly com ply wit h t he guidelines for form ulat ion and im plem ent at ion of SCSP. • Modalit ies should be w or k ed out for ear m ar k ing of r esour ces for such ser v ice or ient ed Minist ries/ Depart m ent s w hich im plem ent infrast ruct ure relat ed proj ect s. • The earm arking of fund under SCSP in proport ion t o SC populat ion should be done by t he Planning Com m ission at t he t im e of deciding t he annual plan for each Minist ry. • Sim ilarly t he schem e- w ise allocat ion of earm arked fund should be separat ely indicat ed under separat e budget head by t he Minist ries in consult at ion wit h Planning Com m ission. • The Planning Com m ission should not accept t he budget by t he Minist r y unless it cont ains t he schem e wise allocat ion under SCSP. • Minist r y of Social Just ice and Em pow er m ent should be t he nodal Minist r y t o over see t he effect iv e im plem ent at ion of SCSP by t he cent r al m inist r ies and also t he St at e gov er nm ent . The budget should r epr esent t he aspir at ion of all cit izens of t his count r y .I t should focus on t he m arginalized com m unit ies who have t radit ionally been kept out of t he m ainst ream econom ic discour se. Ther e is, indeed, an ur gent need t o int er r ogat e t he r easons behind t he gover nm ent apat hy w hich is clearly reflect ed in t he various policies laid dow n in t he successive annual budget s. The SCSP can cr eat e am ple space for SCs t o play im por t ant r ole in t he econom y . The Budget should allocat e adequat e funds for t he social and econom ic dev elopm ent of t he SCs m ak ing t hem self r eliant . Re f e r e n ce : • • • • • • • • • Census Report , 2001 NFHS Survey 2005- 06 NSSO 1999- 2000 Nat ional Com m ission for SC &ST, Sixt h Report Expendit ure Budget Vol.1 and 2, Union Budget Planning Com m ission Report of Working Group XI Planning Com m ission report , 2005 VI Planning Com m ission Report , 1980 Reclaim ing Scheduled Cast e Sub Plan, NCDHR, 97 2000- 01 2008- 09 on Em powerm ent of SCs,2007 2007 BACKGROUNDNOTE Priorit ies for Scheduled Tribes in t he Union Budget N ila ch a la Ach a r y a Am ong t he socially m arginalized groups in I ndia, t he Scheduled Tribes ( STs) are am ong t he m ost disadvant aged. The sever it y of t heir depr ivat ion is st ar kly evident w hen t hey ar e com par ed t o t he r est of t he populat ion in t he count r y in t er m s of v ar ious socio- econom ic indicat or s. Successive governm ent s in I ndia have init iat ed a num ber of policy m easures aim ed at addressing t hese disparit ies. How ever, such effort s of t he governm ent s, at various levels, have borne lim it ed posit ive result s largely due t o adm inist rat ive and policy bot t lenecks and com plexit ies involved in t heir im plem ent at ion. Budget ar y allocat ions t o im pr ove t he socio- econom ic pr ofiles of t he STs fall far shor t of ex pect at ions. I n shor t , t her e is a clear case of dev elopm ent deficit s t o am elior at e t he lot s of t he STs. I n t he light of cont inued m arginalizat ion of t he STs, t he present brief int ends t o bring out som e of t he key concer ns of t he t r ibal com m unit ies in t he cont ext of for t hcom ing budget 2009- 10. While Part - I of t his not e explains t he severit y of m arginalizat ion of scheduled t ribes in I ndia, Part - I I w ould go on t o focus on t he budget ary allocat ions for t he t ribal com m unit ies in I ndia as well as t he com m it m ent s m ade by t he successive governm ent s during different point s of t im e. Finally, Part - I I I of t he brief proposes an alt ernat ive policy fram ework wit h regard t o budget ary allocat ion and spending in t he com ing budget 2009- 10. I . St at us of t he Scheduled Tribes in I ndia The scheduled t r ibes w hich const it ut e a significant pr opor t ion of t he t ot al populat ion of I ndia ( 8.2 % of t he t ot al populat ion as per 2001 Census) lag behind t he rest of t he populat ion in t erm s of t he v ar ious socio- econom ic indicat or s. Table- 1 : Socio -Econ om ic I n dica t or s a m on g Sch e du le d Tr ibe s ( STs) Vis- à - v is I n d ia I ndicat ors STs All I ndia I nfant Mort alit y Rat e ( I MR) - NFHS-3 62.1 41.5 Under Five Mort alit y Rat e- NFHS-3 95.7 74.3 Under Five Children Acut ely Malnourished- NFHS- 3 54.5 42.5 Lit eracy rat e ( 2001, Census) 47.1 64.8 Drop Out rat es- Tot al ( Class I t o X) 2004 -05 Pr ov isional 79.0 61.9 Drop Out rat es- Girls ( Class I t o X) 2004- 05 Provisional 80.7 63.9 Populat ion living below povert y line ( 2004 -05) Rural Areas 47.30 28.30 Population living below povert y line ( 2004 -05) Ur ban Ar eas 33.30 25.70 % of ST represent at ion in Cent ral governm ent Services as on 1.1.04 6.54 100.00 Tot al Workers ( Rural) ( Census, 2001) 50.37 41.75 Tot al Workers ( Urban) ( Census, 2001) 34.56 32.75 Tot al Cult ivat ors ( Census, 2001) 44.71 31.65 Tot al Agricult ural Laborers ( Census, 2001) 36.85 26.55 Source: Nat ional Fam ily Healt h Survey ( NFHS-3) , GoI . And Elevent h five year Plan Docum ent , Governm ent of I ndia. I n dica t or s on Socio- Econ om ic D e pr iv a t ion s Follow ing socio- econom ic indicat or s r eflect t he depr iv at ion of t r ibals v is- à- v is t he r est of t he populat ion of t he count r y . H igh I n fa n t a n d Un de r Five M or t a lit y Ra t e The I nfant Mort alit y Rat e ( I MR) of t he STs is an alarm ing 62.1 com pared t o an all I ndia average of 41.5 during 2005- 06. Sim ilarly, under five m ort alit y rat e of t ribals is 95.7 com pared t o an all I ndia average of 74.3. Under five children acut ely m alnourished was also as high as 54.5 com pared t o t he all I ndia average of 42.5. BACKGROUNDNOTE 98 Low le ve l of Edu ca t ion a l At t a in m e n t As per t he 2001 Census, lit eracy rat e am ong t he STs is 47.1 % com pared t o t he nat ional average of 64.8% . Dr opout r at e, a cr it ical indicat or r eflect ing t he lack of educat ional dev elopm ent is also t oo high. I n case of t he STs, dr opout r at e is an alar m ing 79% com par ed t o nat ional aver age of ar ound 62 % dur ing 2004- 05. I n t he case of gir ls, t he sit uat ion of dr op out r at e is even w or se ( i.e., 80.7% as com pared t o nat ional averages of 63.9 % in classes I t o X) . La ck of Ba sic Am e n it ie s a n d I n fr a st r u ct u r e Nearly 91 % of t he STs in I ndia reside in rural, hilly and inaccessible forest area which in a way hinder s t heir access t o qualit y infr ast r uct ur e and basic ser v ices such as educat ion, healt h car e and so on. This fur t her leads t o t heir socio- econom ic back w ar dness. Ov e r cr ow din g in Tr a dit ion a l Occu pa t ion The t ribal com m unit ies occupy around 15% 1 of t he count r y ’s ar eas in v ar ious ecological and geoclim at ic condit ions r anging fr om plains and for est s t o hills and inaccessible ar eas. They ar e m ost ly dependant on t radit ional agricult ural act ivit ies for t heir livelihood. I n fact , m ore t han 81 % of t ot al ST workers, bot h in rural and urban areas t aken t oget her are engaged in prim ary sect or 2 , out of which 44.74 % are cult ivat ors and 36.85% are agricult ural labourers. H ig h Pov e r t y Con ce n t r a t ion The incidence of pover t y am ong t he STs cont inues t o be ver y high ( 47.3 % in r ur al ar eas and 33.3 % in urban areas com pared t o 28.3 % and 25.7% of nat ional average respect ively 3 ) . The ST represent at ion in Cent ral Governm ent services ( including all cat egories of j obs as on 1.1.04) is only 6.54 % out of t ot al Cent ral Governm ent em ployees. I I . Plan Out lay Earm arked for t he Scheduled Tribes in Union Budget s Before looking int o t he plan allocat ion earm arked for STs in t he union budget , let ’s t ake a look at t he guidelines of t he Tribal Sub- Plan ( TSP) and t he prom ises m ade in Nat ional Com m on Minim um Program m e ( NCMP) . We would also look at t he various policy init iat ives laid down in t he Elevent h Five Year Plan of Governm ent of I ndia. Gu ide lin e s of Tr iba l Su b- Pla n Tr ib al Su b - Plan f ocu ses on ear m ar k in g p op u lat ion - p r op or t ion at e f u n d s f r om t h e g en er al developm ent sect ors for t he overall developm ent of ST populat ion in order t o bring t hese deprived groups int o t he m ainst ream of econom ic developm ent . Wit h r egar d t o t he budget ar y allocat ion of t he Cent r al Gov er nm ent as w ell as t he St at e and Union Territ ory Governm ent s’, m ain guidelines of TSP spell out like t his ( given in Table- 2) . 99 BACKGROUNDNOTE Ta ble - 2 : Gu id e lin e s of Tr ib a l Su b - Pla n TSP w it h regard M in ist r y / D e p a r t m e n t to Ce n t r a l M a in Gu id e lin e s f or TSP w it h r e g a r d t o t h e St a t e s/ U Ts • Ear m ar k ing of funds by ev er y Cent r al Minist r y / Depar t m ent t ow ar ds TSP should be as per t he pr opor t ion of ST populat ion in t he count r y . Nonear m ar k ing of TSP funds by t he Minist r y/ Depar t m ent w ill r esult in non appr ov al of t heir Annual Plan. • TSP funds should be nondiv er t ible. Cr eat ion of a separ at e budget head for TSP ( i.e., 796 a m inor / pr ogr am m e head) • A dedicat ed TSP unit should be cr eat ed for t he for m ulat ion and im plem ent at ion of TSP schem e and pr ogr am m e • Only t hose schem es/ pr ogr am m es should be im plem ent ed w hich accr ue dir ect benefit t o STs • Ear m ar k ing of funds for TSP fr om t he t ot al st at e plan out lay should be at lea st be pr opor t ion t o t he ST populat ion of t he st at e/ UT • The Adm inist r at iv e depar t m ent w hich is concer ned w it h t he dev elopm ent of STs should be t he nodal depar t m ent for for m ulat ion and im plem ent at ion of TSP • Placing t he funds ear m ar k ed for TSP at t he disposal of t he Pr incipal Secr et ar y w ho w ill w or k as Planning Secr et ar y and hav e ex clusiv e aut hor it y for r eallocat ion of funds t o ot her line depar t m ent s for STs dev elopm ent schem es • Pr epar ing a det ailed TSP docum ent w it h phy sical and financial t ar get s against each schem e w it h t he obj ect iv e of br idging t he gap bet w een t he r est of t he populat ion and t he STs w it hin 10 y ear s. • Ensur ing t hat t he ot her line depar t m ent s cooper at e in t he pr oper im plem ent at ion of t he TSP schem es allocat ed t o t hem and put up t he schem es befor e t he nodal depar t m ent s for sanct ion and r elease of funds. • Pr ev ent ing t he div er sion and lapse of funds allocat ed t o TSP in t he Annual Plans, TSP should not allow ed t o be changed at r ev ised est im at e ( RE) st age by t he Planning Com m ission • Car r y ing for w ar d t he lapsed/ unut ilized TSP am ount t o t he nex t annual plan of t he st at e/ UT as an addit ional fund for TSP • All Cent r al Sponsor ed Schem e ( CSS) and Special Cent r al Assist ant ( SCA) schem es of t he cent r e necessar ily should hav e a TSP com ponent in t hem as per t he pr opor t ion of STs in t he St at e/ UTs Sour ce: Elevent h five year Plan Docum ent , Planning Com m ission, Gover nm ent of I ndia BACKGROUNDNOTE 100 Pr om ise s m a de in N CM P a n d Ele ve n t h Pla n St r a t e gie s V is- à - vis Policy An n ou n ce m e n t s The Nat ional Com m on Minim um Program m e ( NCMP) of t he present Unit ed Progressive Alliance ( UPA) Gov er nm ent pr om ised sev er al new init iat iv es aim ed at addr essing t he dev elopm ent al needs of t he t ribals. A com parat ive account of t he prom ises m ade in NCMP, st rat egies form ulat ed t o achieve t hem as recom m ended in t he Elevent h Five Year Plan and subsequent policies form ulat ed by t he Cent ral Governm ent is given below. N CM P P r o m ise s Ele v e n t h Pla n Ap p r o a ch e s/ St r a t e g ie s • Real oper at ion alisat ion of PESA Act • Fif t h sch ed u le n eed s t o b e oper at ion alise • Th e Tr ibes Adv isor y Cou n cil ( TAC) n eeds t o be m ade pr oact iv e, f u n ct ion in g as an adv isor y body t o t h e st at e gov er n m en t in m at t er s r elat in g t o STs. • Dem ar cat ion of Sch ed u led Ar eas sh ou ld be n ot if ied dow n t o t h e v illage lev el an d ot h er set t lem en t s • Est ablish m en t of r equ isit e n u m ber of sch ools in t h e TSP ar eas, pr odu ct ion of t ex t book s in t r ibal lan gu ages, t im ely dist r ibu t ion of fell ow sh ip an d sch olar sh ips et c. • Realizat ion of v ision of Nat ion al For est Policy ( NFP) Resolu t ion 1 9 8 8 , t r ibal associat ion w it h f or est r y w ill be m ax im ized t h r ou gh t r ibal cooper at iv es an d SHGs of t r ib al w om en . • Recr u it m en t of t r ib al w om en u n der f or est depar t m e nt t o ensur e saf et y of t h e w om en v en t u r in g in t h e for est ar eas for t h eir liv elih ood n eeds. Necessar y am en dm en t of in st r u m en t s lik e lan d acqu isit ion act , 1 8 9 4 ; For est Act , 1 9 2 7 ; For est ( Con ser v at ion ) Act , 1 9 8 0 Coal Bear in g Ar eas ( Acqu isit ion an d Dev elopm en t ) Act , 1 9 5 7 an d Nat ion al Min er al Policy , 1 9 9 3 t o elim in at e in iqu it ou s pr ov ision s en su r in g pr ot ect ion of t h e in t er est of t r ib als. • Lan d r ef or m s be im plem en t ed st r in gen t ly • I n t egr at in g r eh abilit at ion con cer n s in t o dev elopm en t plan n in g an d im p lem en t at ion . • Focu sed st r at egies f or in f r ast r u ct u r e dev elopm en t in sect or s lik e edu cat ion , dr in k in g w at er , PDS, Healt h , Min or I r r igat ion , Roads, Hou sin g, Telecom m u n icat ion s an d Elect r if icat ion w ill be pu r su ed. Po licy Fo r m u la t e d • Ur ge t h e st at es t o m ak e • The Scheduled legislat ion for confer r ing Tr ibes and Ot her ow ner ship r ight s in r espect of Tr adit ion al For est m in or for est pr odu ce, in clu din g Dw eller s t en du pat t a, on all t h ose people ( Rec ognit ion of f r om t h e w eak er sect ion s w h o For est Righ t s) Act w or k in t h e for est s. 2006 • All r eser v at ion qu ot as, in clu din g • The Nat ional t h ose r elat in g t o pr om ot ion s, w ill Tr ibal Policy 2 0 0 6 be f u lf illed in a t im e-b ou n d ( u n der m an n er . To codif y all con sider at ion of r eser v at ion s, a Reser v at ion Act Gr oup of w ill be en act ed. Minist r ies) • Lau n ch a com pr eh en siv e n at ion al pr ogr am m e f or m in or ir r igat ion of all lan ds ow n ed b y Ad iv asis. Lan dless f am ilies w ill be en dow ed w it h lan d t h r ou gh im plem en t at ion of lan d ceilin g an d lan d r edist r ibu t ion legislat ion. No r ev er sal of ceilings legislat ion w ill be per m it t ed. • All m easu r es t o r econ cile t h e obj ect iv es of econ om ic gr ow t h an d en v ir on m en t al con ser v at ion , par t icular ly as far as t r ibal com m u n it ies depen den t on f or est s ar e con cer n ed. • I m m ediat ely r ev iew t h e ov er all st r at egy an d pr ogr am m es f or t h e dev elopm en t of t r ibal ar eas t o plu g looph oles an d t o w or k ou t m or e v iable liv eliho od st r at egies. I n addit ion , m or e ef f ect iv e sy st em s of r elief and r eh abilit at ion w ill be pu t in place f or t r ibal an d ot h er gr ou ps displaced by dev elopm en t pr oj ect s. Tr ibal people alien at ed f r om lan d w ill be r eh abilit at ed. • Ev ict ion of t r ibal com m u n it ies an d ot her for est - dw elling com m u n it ies fr om for est ar eas w ill be discon t in u ed. Cooper at ion of t hese com m unit ies w ill be sou gh t f or pr ot ect in g f or est s an d f or u n der t ak in g social affor est at ion. The r ight s of t r ibal com m u n it ies ov er m in er al r esou r ces, w at er sou r ces, et c as laid dow n by law w ill be f u lly saf egu ar ded. Sou r ce: Nat ion al Com m on Min im u m Pr ogr am m e of t h e Gov er n m en t of I n dia, May 2 0 0 4 ; Elev en t h Fiv e Year Plan Docu m en t an d Ou t com e Bu dget , Min ist r y of Tr ibal Affair s, Gov er n m en t of I n dia, 2008- 09. 101 BACKGROUNDNOTE Analysis of t he budget ary allocat ions earm arked t owards realizing all t hese prom ises reveals an ext rem ely disappoint ing pict ure. Let ’s have a look at t he plan allocat ion for t ribals in Cent ral Gov er nm ent s Budget . St a t u s of I m ple m e n t a t ion of TSP for STs of t h e Un ion in 2 0 0 7 - 0 8 & 2 0 0 8 - 0 9 The Union Budget ever y year m akes a special allocat ion for t he developm ent of t he STs. Let ’s have a look at t he st at us of im plem ent at ion of guidelines st ipulat ed by t he TSP in Union Budget of 2007- 08 and of 2008- 09. The plan allocat ions ear m ar ked for t he Scheduled Tr ibes ( STs) in t he Union Budget show a dism al pict ure. The proport ion of t ot al Plan Out lay of t he Cent ral Governm ent earm arked for STs declined from 4.77 percent in 2007- 08 ( BE) t o 4.45 percent in 2008- 09 ( BE) ( Table- 3) . This is gr ossly inadequat e consider ing t he pr opor t ion of ST populat ion in t ot al populat ion of t he count r y, i.e. 8.2 % . This, in t urn, violat es norm s and guidelines of t he Tribal Sub Plan. Table-3: Proportion of Total Plan Outlay of the Central Government Earmarked for STs Total Plan Outlay in Union Budget Plan Allocations Earmarked for STs by Proportion of Total Plan Outlay of the Central ( excluding Central Assistance for State & all Ministries/ Departments (in Rs. Govt. Earmarked for STs UTs) Crore) (in % ) (in Rs. Crore) 2007-08 BE 2008-09 BE 2007-08 BE 2008-09 BE 2007-08 BE 2008-09 BE 1,58,491 1,83,528 7,556.98 8,172.79 4.77 4.45 Source: Expenditure Budget Vol. I and Vol. II, Union Budget- 2007- 08 and 2008 - 09. Therefore, t he plan allocat ions earm arked for STs in t he Union Budget 2008- 09 are far below t he norm s st ipulat ed by t he Tribal Sub Plan. Looking at t he vast developm ent deficit s in general and of t he t r ibals in par t icular , non- im plem ent at ion of t he st r at egies of TSP even aft er m or e t han 28 y ear s of it s announcem ent is r eflect iv e of t he gov er nm ent apat hy t ow ar ds t his sect ion of t he populat ion. Since t he y ear 2008- 09 is t he second y ear of t he Elev ent h Fiv e Year Plan, lack of w illingness on t he par t of t he Cent r al Gover nm ent t o ser iously pur sue t he st r at egies of TSP is a m at t er of ser ious concer n. Som e im port ant and specific schem e/ program m es relat ed out lay in t he plan budget 2008- 09 of Minist ry of Tribal Affairs, Governm ent of I ndia reflect s t he above referred apat hy of t he governm ent in a significant w ay ( Table- 4) . Look ing at t he pr esent st at us of t r ibals, t he schem at ic pr ov ision of Plan Funds, as provisioned in t he 2008- 09 Budget , under Cent er Sect or Schem e and Cent rally Sponsored Schem es seem highly inadequat e. A close look at t he budget ar y pr ovisions and act ual expendit ur e of plan funds under differ ent schem es and program m es during Tent h Five year plan reveals t hat a large am ount of t he allocat ed fund r em ains unspent . Mor e t han 20% of t he differ ence bet w een budget ed allocat ion and act ual expendit ure can be account ed for, by t he schem es like vocat ional t raining in t ribal sub- plan areas, est ablishm ent of educat ional com plex in low lit eracy pocket for developm ent of w om en lit er acy in t r ibal ar eas and est ablishm ent of ashr am schools. I ncidence of ov er ex pendit ur e t o t he ex t ent of 0.4 and 13 per cent is found in t he schem es on Post Mat r ic Scholar ship ( PMS) and Gr ant s- I n- Aid t o NGOs r espect ively dur ing Tent h Five Year Plan. BACKGROUNDNOTE 102 Ta b le - 4 : Pr og r a m m a t ic/ Sch e m a t ic Alloca t ion of M in ist r y Gov e r n m e n t of I n d ia N a m e of Ob j e ct iv e / Pla n Ph y sica l the O u t co m e Ou t la y Out put s Sch e m e / Pr ( Rs in ogra m m e Cr) Ce n t e r Se ct o r Sch e m e Grant s - inTo en h an ce t h e r each of 40. 00 Resident ial/ aid t o NGOs w elf ar e sch em e of Nonfor STs gov er nm ent and fill t he r esident ial including gaps in ser v ice def icien t Schools/ host e coaching and t r ibal ar eas, in t he ls allied and sect or s su ch as 10 Bedded aw ar d for educat ion, healt h, Hospit als/ ex em plar y dr ink ing w at er , agr oMobile ser v ice hor t icult ur al Dispensar ies pr oduct iv it y , social Coach in g for secur it y et c t hr ough t he com pet it iv e effor t s of v olunt ar y ex am inat ions or ganizat ion and to pr ov ide an en v ir on m en t f or socio- econ om ic uplift m ent and ov er all dev elopm ent of t he STs. To pr ov ide coach in g t o ST st udent s and incent iv es for im pr ov em ent in infr ast r uct ur es Educat ional To ensur e 100 % 60. 00 Educat ional com plex in enr olm ent of t r ibal gir ls Com plex es low lit er acy in schools, t o ensur e pocket s for r educt ion in dr op out dev elopm ent r at es, and pr om ot e gir ls of w om en educat ion in low lit er acy lit er acy in t r ibal dist r ict s t r ibal ar eas Dev elopm en To ensur e 100 % 178. 00 Consecr at iont of PTGs enr olm ent of t r ibal gir ls cu min sch ools t o en su r e Dev elopm ent r educt ion in dr op out Plans for all r at es and pr om ot e gir ls st at es educat ion in low lit er acy dist r ict s I ncom e I n com e gen er at in g 50. 00 gener at ing act iv it ies by t he eligible + act iv it ies STs t o r aise t heir lev el of 62. 00 ( and incom e, pr ocur em ent Com ple m ar k et ing an d m ar k et in g of m ent ar su p p or t agr icult ur e/ for est y Ex t r a pr oduct so as t o av oid Budget dist r ess sale or pr oduce Resou r c an d v alu e addit ion of es) t r ibal pr oduct s Cent ra lly Sponsored Schem es Schem e of To prom ot e higher 250.00 St udent s Post Mat ric educat ion, provide t ext supported Scholarship books and t o provide & up special and rem edial gradat ion of coaching t o ST st udent s Merit of ST st udying XI , and XI I st udent s Const ruct ion To ensure adequat e 66.00 No. of seat s of Boys and enrolm ent would be Girls Host els creat ed Const ruct ion Prom ot e educat ion 30.00 No. of seat s of Ashram am ong STs living in would be Schools in rem ot e areas creat ed TSP areas of Tr ib a l Af f a ir s, Pr oj e ct e d Ou t com e ( M a le ) Pr oj e ct e d Ou t com e ( Fe m a le ) 14500 st udent s ( 290 pr oj ect s) 14500 st udent s ( 290 pr oj ect s) 3.75 lak h Beneficiar ies ( 105 Pr oj ect s 2750 candidat e s 3.75 lak h Beneficiar ie s ( 105 Proj ect s 2750 candidat es Ex clusiv ely for gir ls ( 3000 beneficiar ies) Hou sin g, lan d dist r ibut ion, educat ion, infr ast r uct ur e, dr ink ing w at er , Janashr ee I nsur ance Schem e 12300+ 45000 9000 Post Mat ric Scholarship 10.08 lakh st udent s and upgradat ion of 1053 st udent s 4850 st udent s 3150 st udent s Source: Out com e Budget , 2008- 09, Minist ry of Tribal Affairs, GOI 103 BACKGROUNDNOTE Ta b le- 5 : D iffe r e n ce s Be t w e e n Bu dge t e d Alloca t ion a n d Act u a l e x pe n dit u r e of im por t a n t sch e m e s/ pr ogr a m m e s du r in g Te n t h Five Pla n Sche m e s/ Pr ogr a m m e s G- I - A t o NGOs for STs including Coaching and Allied Schem e and award for exem plary services Vocat ional t raining in Tribal Areas Educat ional Com plex in Low lit eracy pocket for developm ent of wom en lit eracy in t ribal areas Schem e of Host el for STs Girls and Boys Schem es of PMS, Book Bank and Up gradat ion of Merit of ST st udent s Est ablishm ent of Ashram Schools % D iffe r e n ce s Be t w e e n Bu dge t e d Alloca t ion a n d Act u a l e x pe n dit u r e of im por t a n t sch e m e s/ pr ogr a m m e s du r in g t e nt h pla n 20022003- 04 20042005- 06 2006Tot al X Plan 03 05 07 3.5 15.9 6.6 - 15.0 -21.0 - 0.4 47.5 35.3 40.5 - 15.3 -54.4 21.0 25.0 28.3 9.6 0.0 75.3 46.7 43.8 24.4 45.8 - 100 * 9.3 14.2 21.3 - 18.9 - 55.4 8.4 -35.2 - 13.0 32.1 53.8 60.7 - 100 * 3.1 25.9 Source: Out com e Budget , 2008- 09, Minist ry of Tribal Affairs, GOI . * There were no provisions in budget est im at es for t he schem e/ program m e but expendit u res m ade in t he budget . Not e: Negat ive figures shows percent age of over expendit ure com pared t o budget est im at es I I I . Policy Agenda for t he Fut ure Looking at all spher es of depr ivat ion of t hese disadvant aged gr oups, it is im por t ant t o suggest t hat t he budget ar y out lay t o t hese com m unit ies should be sufficient t o addr ess t he ex ist ing deprivat ion. Besides, som e special effort should be m ade at different levels of governance st ruct ure aim ed at t he uplift m ent of t hese gr oups. • I t is observed t hat only t went y- four Minist ries/ Depart m ent s of Union Governm ent have ensured t hat som e budget ar y allocat ion is ear m ar ked for t he STs. This fundam ent ally violat es t he guidelines of t he TSP. Ther efor e, t her e is an ur gent need t o ensur e a st r ict im plem ent at ion of t he guidelines w it h respect t o t he funds earm arked in t he Tribal Sub- plan in t he fort hcom ing bu dget . • Ev en t hose Minist r ies and depar t m ent s t hat hav e ear m ar k ed funds for t he TSP hav e not bot her ed t o ensur e t hat t he funds allocat ed ar e in pr opor t ion t o t he ST populat ion shar e. Hence, it is im port ant t o insist on Minist ries and depart m ent s t o follow TSP guidelines w hile allocat ing funds. • High incidence of pover t y and gr ow ing dependence on agr icult ur e has com e t o be ident ified w it h t he t r ibal com m unit ies in I ndia. Keeping t his in m ind, special budget ar y pr ov isions should be m ade t o r educe pov er t y concent r at ion am ong t hese m ar ginalized gr oups by div er sify ing t hem int o ot her sect or of t he econom y . Apar t fr om t his, specific t ar get ed num ber of ST beneficiaries of each developm ent al program m e should be ident ified in a t im e bound m anner. The declarat ions of NCMP ( Nat ional Com m on Minim um Program m e) wit h regard t o t he STs should be honoured in t erm s of adequat e provisions in t he com ing budget . • Basic requirem ent s of a decent life like m inim um educat ion and healt h care facilit ies are t he k ey t o social em pow er m ent and ar e v it al t o r educe hor izont al and v er t ical inequalit ies. Considering t his, adequat e resources should be earm arked in t he com ing budget for creat ing necessar y infr ast r uct ur es w hich w ill, in t ur n, ensur e easy access t o t hese basic facilit ies by t he t ribal com m unit ies. BACKGROUNDNOTE 104 • Unt il t ribal com m unit ies in I ndia are em powered socially and econom ically t he exist ing gap b et w een t h e t r ib als an d t h e r est of t h e p op u lat ion w ill on ly w id en f u r t h er . Hen ce, a com prehensive plan schem e should be devised in a part icipat ory way while priorit izing t heir needs. For t his an act ion plan fully suppor t ed by budget ar y pr ov isions fr om t he Cent r al Governm ent Budget should be m ade in t he fort h com ing Budget 2009- 10. • Efficiency need t o br ought about in or der t o r ealize allocat ed funds under differ ent schem es. Qualit y of budget ing only can ensure if budget ed am ount of t he program m e/ schem e ut ilized at t he end of t he financial year. En dn ot e s : 1 Sev en t een t h Repor t of St an din g Com m it t ee on Social Ju st ice an d Em pow er m en t New Delh i 2 0 0 6 , p- 1 4 2 Repor t of t h e Elev en t h Fiv e Year Plan ; Gov er n m en t of I n dia; 2 0 0 7 - 1 2 3 Plan n in g Com m ission , 2 0 0 4 , New Delh i 105 BACKGROUNDNOTE Union Budge t a nd t he Unhe a r d Voice of M inorit ies in I ndia Ja w e d A. Kh a n a n d Pooj a Pa r va t i Th e Un it ed Nat ion s, in or der t o st r en gt h en t h e cau se of t h e m in or it ies, pr om u lgat ed t h e “ Declarat ion of Right s of Persons belonging t o Nat ional or Et hnic, Religious and Linguist ic Minorit ies” on 18t h Decem ber 1992 pr oclaim ing t hat , “ St at es shall pr ot ect t he ex ist ence of t he nat ional or et hnic, cult ural, religious and linguist ic ident it y of m inorit ies wit hin t heir respect ive t errit ories and encour age condit ions for t he pr om ot ion of t hat ident it y .” I n t his r egar d, t he Const it ut ion of I ndia has provided for prot ect ion of right s of m inorit ies and t heir welfare. Table 1 sum m arizes t he sam e. Ta ble 1 : Pr ovision s in t h e I n dia n Con st it u t ion for t h e M in or it ie s Art icle 14 proclaim s equalit y before law Art icle 15 prohibit s discrim inat ion on t he ground of religion. Art icle 29 & 30 prot ect s t he int erest s of m inorit ies and t heir right t o est ablish adm inist rat ive/ educat ional inst it ut es. Accor ding t o t he 2001 Census, r eligious m inor it y gr oups const it ut e ar ound 19% of t he t ot al populat ion in I ndia, which include Muslim s, Christ ians, Sikhs, Buddhist s, Jains and Parsis. The analyses of socio- econom ic condit ion of m inor it y gr oups r eveal a lot of var iat ion in t er m s of developm ent indicat or s am ongst t hem . I n t his r egar d, t he socio- econom ic sit uat ion of t he Muslim com m unit y reflect s poorly as com pared t o t he ot her religious m inorit y groups. While on t he one hand it is cont ended t hat t he level of backw ardness am ong Muslim s is ow ing t o t heir having kept aw ay fr om English educat ion, science and m oder nit y dur ing pr e and post I ndependence, on t he ot her , t her e has been a cont inued neglect on par t of t he cent r al and st at e gov er nm ent s t o address t hese problem s of m inorit ies, especially wit h regard t o t he Muslim com m unit y wit h no concr et e policy m easur es in t he post I ndependence per iod for im pr ov ing t he condit ions of m in or it ies. I n 2004, t he Unit ed Progressive Alliance ( UPA) governm ent in it s Com m on Minim um Program m e ( CMP) prom ised t o prom ot e m odern and t echnical educat ion am ong all m inorit y com m unit ies. Fur t her , for social and econom ic em pow er m ent of m inor it ies, syst em at ic at t ent ion t o educat ion and em ploy m ent w er e t o be accor ded pr ior it y . The UPA gov er nm ent also int ended t o enact a m odel com pr ehensiv e law t o deal w it h com m unal v iolence and encour age t he st at es t o adopt t he sam e t o generat e fait h and confidence in m inorit y com m unit ies. I n order t o t ranslat e t hese pr om ises int o act ion, a High Level Com m it t ee w as const it ut ed on Mar ch 9, 2005 under t he chairm anship of Just ice Raj inder Sachar. The obj ect ive w as t o prepare a com prehensive report on t he social, econom ic and educat ional st at us of t he Muslim com m unit y due t o non- av ailabilit y of aut hent ic infor m at ion on t he sam e. Such infor m at ion w as needed for concr et e policy act ion. The Sachar Com m it t ee subm it t ed it s report on Novem ber 17, 2006, which was t abled in bot h t he Houses of Parliam ent on Novem ber 30, 2006. The Com m it t ee recognized at t he very out set t hat Muslim s, like ot her m inorit ies, faced m ult ifacet ed challenges r elat ed t o secur it y , ident it y and equit y . The r epor t analy zed t he differ ent ials bet w een Muslim s and Socio Religious cat egories ( SRCs) in t erm s of dem ographic charact erist ics, level of educat ion, condit ions of em ploym ent , credit flow s, part icipat ion in public program m es and access t o infr ast r uct ur e. The ov er all findings of t he Com m it t ee r ev eal t hat t he Muslim com m unit y lags behind in ev er y aspect of socio- econom ic dev elopm ent . I n r esponse t o t he recom m endat ions m ade by t he Sachar Com m it t ee, t he cent ral governm ent form ulat ed an Act ion Taken Report ( ATR) . Wit h alm ost a year having elapsed since t he present at ion of t he ATR, t he process of im plem ent at ion of ATR has been t ardy wit h im port ant areas of int ervent ion for welfare of Muslim s, such as providing em ploym ent and econom ic opport unit ies, st ill not get t ing due at t ent ion of t he policy im plem ent ing agencies. Added t o t hat , t he low budget ar y suppor t t o t he Minist ry of Minorit y Affairs during 2006- 07 and 2007- 08 ( Table 7) paint s a disappoint ing pict ure and quest ions t he sincer it y of t he gov er nm ent t ow ar ds w elfar e of t he m inor it ies. BACKGROUNDNOTE 106 The not e largely focuses on exam ining t he socio- econom ic condit ion of m inorit ies in I ndia w it h special focus on t he Sachar Com m it t ee Report and exam ines t he gaps in im plem ent at ion of t he Act ion Tak en Repor t ( ATR) . The paper has been div ided int o t hr ee sect ions. Sect ion 1 highlight s t he differ ent ials in socio- econom ic indicat or s of m inor it ies, Sect ion 2 deals w it h t he findings of t he Sachar Com m it t ee Report and Sect ion 3 focuses on prom ises vis- à- vis act ion in im plem ent at ion of t he ATR. I . Socio- econom ic and Educational Status of Minorities in I ndia Table 2 provides t he proport ionat e break- up of t he populat ion based on t heir religious affiliat ions. I t becom es clear t hat t he Muslim s com prise a m aj or chunk of t he m inorit y populat ion. Ta ble 2 : Pr opor t ion of Popu la t ion by Re ligiou s Com m u n it ie s 1 9 6 1 - 2 0 0 1 ( Un adj u st ed* ) All religious com m unit ies Hindus Muslim s Chr ist ians Sikhs Buddhist Jains Ot hers 1961 100.0 1971 100. 0 1981 100.0 1991 100. 0 2001 100.0 83.4 10.7 2.4 1.8 0.7 0.5 0.3 82.7 11.2 2.6 1.9 0.7 0.5 0.4 82. 6 11. 4 2.4 2.0 0.7 0.5 0.4 82.0 12.1 2.3 1.9 0.8 0.4 0.4 80. 5 13. 4 2.3 1.9 0.8 0.4 0.6 * I ncludes Jam m u & Kashm ir and Assam for all decades from 1961- 2001 A cr it ical indicat or assessing t he socio- econom ic condit ion is t he incidence of pov er t y w it hin a group. The percent share of povert y am ong t he Muslim s in urban areas is 38.8% , while t he com parable est im at e for ot her m inorit y groups is 12.2% of poor people. A dist ressing t rend observed is t hat povert y am ong urban Muslim s is higher while for ot her m inorit y groups, it is low er as com pared t o t he rural areas ( Table 3) represent at ive of t he part icipat ion of Muslim s in econom ic act iv it ies and t he nat ur e of t hese act iv it ies in ur ban ar eas. Ta ble 3 : Rur a l Pove r t y I ncide nce in 2 0 0 4 - 0 5 (in % ) Urban Rural All Muslim 28.8 27.7 38.8 26.9 Ot her Minorit ies 12.2 14.3 Lit er acy com pr ises t he ot her cr it ical dim ension t o assessing social developm ent . Table 4 pr esent s levels of lit eracy by religion and sex. Muslim s lag behind all t he religious groups in t his regard. This is also subst ant iat ed by t he findings of t he Sachar report ( as w ill be exam ined subsequent ly in t he not e) t hat Muslim s in I ndia hav e less access t o educat ion t han ot her r eligious gr oups. The lit eracy rat e am ong Muslim s is only 59.1% while t he nat ional average is 64.8% . Fem ale lit eracy rat e is found t o be lower in t he Muslim com m unit y t han ot her religious groups. 107 BACKGROUNDNOTE Ta ble 4 : Lit e r a cy Le ve ls by Re ligion a n d Se x (in % ) Religion Male Fem ale Tot al Hindu 76.16 53.21 65.09 Muslim Christ ian 67.66 84.37 50.09 76.19 59.13 80.25 Sik h 75.23 63.09 69.45 Buddhist 83.13 61.69 72.66 Jain 97.41 90.58 94.08 Source: Census of I ndia, 2001 I I . Key Findings of t he Sachar Com m it t ee Report Based on t he findings on t he Sachar Com m it t ee Repor t , it em er ges t hat t he Muslim s, as a m inorit y group, are am ong t he m ost m arginalized com m unit ies in I ndia in t erm s of econom ic and educat ional indices as w ell as polit ical em pow erm ent . Furt her, having t he largest share am ong t he all t he r eligious gr oups and spr ead acr oss t he count r y, t hey cannot be over looked by t he st at e and t he policy - m ak er s. While t he r epor t is t oo lar ge and cov er s a w hole r ange of issues, it is w ell bey ond t he scope of t his not e t o cov er all of t hese. Select ed r elev ant findings have been highlight ed in Table 5 relat ing t o dem ographic, educat ional, em ploym ent , povert y and social condit ions. Ta ble 5 : Ke y Fin din gs of t h e Sa ch a r Com m it t e e Re por t Va r ia ble s Share in Populat ion ( 2001) Share in t ot al OBC populat ion Urban Populat ion M uslim s ( % ) 13.4 15.7 36 N a t ion a l Av e r a ge ( % ) 28 Lit eracy ( 2001) Tot al drop out of children Graduat e 59.1 25 3.6 64.4 6.7 Diplom a o.4 0.7 St r eet vending Worker - Populat ion Rat io I AS I PS 12 54.9 3 1.8 4 64.4 - I FS Povert y ( 2004 -0 5 ) I nfant Mort alit y Rat e 4 31 59 22.7 73 Fur t her , anot her vit al indicat or t hat assesses t he ext ent of being m ar ginalized is level of exclusion from t he m ainst ream em ploym ent pat t ern. Table 6 reveals t hat t he share of Muslim s in governm ent j obs is m erely 6.4 % . The sit uat ion is w orse in st at es w it h a great er share of Muslim populat ion. For exam ple, in West Bengal, Ut t ar Pradesh and Assam , while t he Muslim populat ion is 25.2 % , 18.5 % and 30.9 % of t he populat ion, respect ively, t heir represent at ion in governm ent j obs is 4.7 % , 7.5 % , and 10.9 % , respect ively. Only 4.5 % of railway em ployees are Muslim s, and of t hese 98.7 % occupy low er - level posit ions. I ndia’s elit e civil ser vice cor ps has a m iniscule 3.2 % of Muslim s. BACKGROUNDNOTE 108 Ta ble 6 : M u slim Re pr e se n t a t ion in Gove r n m e n t Jobs St a t e s M uslim s popu la t ion in (% ) Tot a l M u slim Re pr e se n t a t ion Govt Jobs ( % ) Assa m 30.9 11. 2 W e st Be nga l 25.2 4. 2 Ke r a la 24.7 10. 4 Ut t a r Pr a de sh 18.5 5. 4 Bihar 16.5 7. 6 Jh a r k h a n d 13.8 6. 7 Ka r na t a k a 12.2 8. 5 Delhi 11.7 3. 2 M a ha r a sht r a 10.6 4. 4 Andhr a Pr a de sh 9.2 8. 8 Gu j a r a t 9.1 5. 4 Ta m ilna du 5.6 3. 2 Tot a l 15.4 6. 4 in So u r ce: Sa ch a r Co m m i t t ee Rep o r t , 2 0 0 6 Broadly, t he Com m it t ee form ulat ed policy m easures and m ade specific recom m endat ions covering four key dim ensions. First , m ainst ream ing and inclusiveness w ere t o be t he cornerst one of t he policy fram ework for Muslim com m unit y. Second, an urgent need t o increase t he diversit y in resident ial/ w ork places and educat ional inst it ut ions by incorporat ing Muslim s w as felt . Third, m ore equit y- based m easures are needed t o reduce t he sense of discrim inat ion t hat t he com m unit y per ceiv es. Four t h, av ailabilit y of det ailed infor m at ion and for m at ion of dat a bank t o facilit at e act ion and m onit oring of schem es and program m es m eant for m inorit ies. I I I . Prom ise vis- à- vis Act ion – Follow - up of t he Act ion Taken Report ( ATR) I n response t o t he Sachar Com m it t ee recom m endat ions, t he Cent ral Governm ent ’s new ly creat ed Minist ry for Minorit y Affairs has t aken t he init iat ive t o follow up on t he recom m endat ions. I t prepared an ATR t o be im plem ent ed t o im prove t he condit ion of Muslim s especially in t he area of educat ion and econom ic em pow er m ent . The salient feat ur es of ATR and it s follow - up act ion ar e as enum erat ed below in Table 7: 109 BACKGROUNDNOTE Ta ble 7 : St a t u s of I m ple m e n t a t ion of ATR ATR by governm ent Special Developm ent init iat ives o Target ed int ervent ion in 90 m inorit y concent rat ed dist rict s o I m provem ent in civic am enit ies and econom ic opport unit ies in 338 t owns. Access t o Credit o o Opening m ore branches of Bank in m inorit y concent rat ed dist rict s Priorit y sect or lending t o Minorit ies Access t o Educat ion o Prom ot ion of Girls Educat ion o o St at us of I m plem ent at ion Special Developm ent init iat ives o Mult i Sect oral developm ent schem e has been launched. o I nt er - m inist erial t ask force w as set up t o look int o t he m at t er . Access t o Cr edit o o Access o Provision for girls host el Provision for scholarship for st udent s Dissem inat ion of inform at ion regarding t he schem es o Madrasa Modernizat ion Program m e o Recognit ion of Madrasa cert ificat e t o Universit ies Skill Developm ent o Prom ot ion of skill developm ent I nit iat ive Prom ot ion of Social I nclusion o Equal opport unit y com m ission o Diversit y index in areas of educat ion, housing and em ploym e nt o Com pilat ion of nat ional dat a bank o Aut onom ous assessm ent and m onit oring aut horit y o o o 4 96 br anches opened in 2007-0 8 RBI revised Mast er Circular t o lend m inorit ies from 9% t o 15% over next t hree years t o Educat ion 270 KGBVs sanct ioned in blocks living m ore t han 20% of m inorit y populat ion No concret e act ion has been t aken Many schem es have been launched o A schem e has been st art ed in t his regard. o Schem e is being revised t o m ake it m ore at t ract ive UGC asked t o work out m odalit ies o Skill Developm ent o I nt er - m inist erial group form ed for it Prom ot ion of Social I nclusion o Repor t has been subm it t ed on it o Report has been subm it t ed on it o o Desk has been creat ed in t he Minist ry of St at ist ics A cell w as const it ut ed in t he Planning Com m ission Source: Minist ry of Minorit y Affairs, Governm ent of I ndia The Minist r y of Minor it y Affair s had init iat ed a few schem es w it h scant budget ar y allocat ion t o im plem ent ATR in 2006- 07. Table 8 shows t hat t here has been an increase in budget ary allocat ion since t he for m at ion of t he Minist r y in 2007 for t he schem es r elat ed t o w elfar e of m inor it ies. That apart , t he ext ent of backwardness of t he Muslim m inorit y com m unit y requires great er budget ary allocat ion. Most of t he schem es r un by t he Minist r y ar e based on t he dist r ibut ion of scholar ships t o st udent s at differ ent lev els. A special schem e called Mult i- Sect or al Dev elopm ent has been init iat ed for overall developm ent of com m unit y. The schem e is being operat ed in 90 m inorit ydom inat ed dist r ict s. Consider ing t he cover age and level of backw ar dness of m inor it y concent r at ed dist r ict s, t his schem e needs m or e budget ar y allocat ion for bet t er im plem ent at ion. BACKGROUNDNOTE 110 Ta ble 8 : Union Budge t Out la ys unde r M inist r y of M inor it y Affa ir s ( in Rs. Crore) S. N Sch e m e s 2 0 0 6- 0 7 ( RE) 2 0 0 7 -0 8 ( RE) 2 0 0 8 - 0 9 ( BE) 1 Secret ariat 3. 87 4.46 5. 76 2 Gr ant s- in – Aids t o Maulana Azad Foundat ion Coaching and allied Schem e for Minorit ies Research / St udies , Monit oring &Evaluat ion of developm ent for Minorit ies including Publicit y Mer it- cum –Means Scholarship for professional courses 100 50 60 1.6 9 9 1 10.99 4.5 10 48.6 112.4 3 4 5 6 Pr e-Mat ric Scholaship for Minirit ies 9 71. 9 7 Post- Mat ric Scholarship for Minirit ies 54 89. 9 8 Mult i Sect oral Developm ent Program m e for Minorit y concern dist r ict s 66.97 485.8 9 Gr ant s- in Aids t o St at e channelising agencies engaged in im plem ent at ion of NMDFC 9 4.5 9 Special Officer for Linguist ic Minorit ies 1. 04 1.23 1. 53 11 Nat ional Com m ission for Religious and Linguist ic Minorit ie s 1. 99 0.16 12 Nat ional Com m ission for Minorit ies 3. 67 3.63 4. 04 13 Gr ant s-in- aid t o Wakf 2. 06 2.9 3 14 I nvest m ent in Public Ent erprises 16.47 63 67. 5 16 Grant s in Aid t o Nort h East 1. 82 29.44 94 Grand Tot al 143.52 362.83 1013.83 Source: Minist ry of Minorit y Affairs, Expendit ure Budget , Vol- I I I m ple m e n t a t ion of ATR I t has been over a year since t he Sachar Com m it t ee Repor t w as t abled in t he Par liam ent , based on w hich, an ATR w as subm it t ed by t he Minist r y of Minor it y Affair s t o t he Par liam ent . The m aj or focus of t he ATR in t erm s of im plem ent at ion has been on educat ion relat ed issues like scholarship schem es for st udent s and opening addit ional prim ary and upper prim ary schools in m inorit ydom inat ed ar eas. Scant at t ent ion has been giv en t o pr ov iding em ploy m ent and econom ic oppor t unit ies. This sect ion at t em pt s t o pr esent a br ief r epor t car d of t he st at us of im plem ent at ion of t he ATR: Ed u ca t io n Even before t he subm ission of t he report , t he Minist ry of Hum an Resource Developm ent had announced som e m easur es t o im pr ov e t he educat ional condit ion of t he com m unit y t hr ough Sarva Siksha Abhiyan ( SSA) . I t had proposed a Pre–Mat ric Scholarship Schem e for Muslim s, OBCs, SCs/ STs and t he girl child. The Minist ry also sanct ioned 6,918 prim ary and upper prim ary schools along wit h 32,250 Educat ion Guarant ee Schem es ( EGS) Cent ers for m inorit y- dom inat ed 111 BACKGROUNDNOTE dist rict s. From 2006 onwards, t he cat egory m inorit y ( Muslim s) is being included in t he report ing of enrollm ent from each school in t he count ry under t he Dist rict I nform at ion Syst em ( DI SE) dat abase of SSA. I n t his process, a new Cent rally Sponsored Schem e ( CSS) for st udent s belonging t o m inorit y com m unit y was launched in 2008- 09. I t involves an expendit ure of Rs. 1,530 crore during t he 11 t h plan. A t ot al of 15 lakh scholarships will be given during t he Plan period from 2007- 12. Of t his, 30% has been reserved for w om en. The scholarships w ill be aw arded t o t hose fulfilling t he m erit –cum - m eans crit eria and t hose st udying in any regist ered educat ional inst it ut ion like schools, colleges, vocat ional inst it ut es and univer sit ies. All t he st udent s com ing fr om fam ilies w it h an annual incom e below Rs. 2 lakh will be eligible for t he scholarship. The schem e will be im plem ent ed by t he Minist r y of Minor it y Affair s. The t w o schem es announced ear lier w er e Coaching & Allied schem e and Merit –cum –Means scholarship schem e for m inorit y com m unit y st udent s. Econ om ic Em p ow e r m e n t Focusing on t he field of econom ic em pow erm ent of Muslim s, credit facilit y provided by com m ercial banks for t he m inorit y com m unit y will be increased by 15% in t he com ing years. The Minist ry of Finance has also proposed t o earm ark 15% of t he count ry’s budget for religious m inorit ies, including Muslim s for im plem ent at ion of Prim e Minist er’s 15- point Program m e. A sub- plan was proposed by t he Elevent h Plan “ Working Group on Em powering t he Minorit ies” for allocat ion of funds under different heads broadly on t he basis of t he Muslim s’ share in t he populat ion ( for program m es t hat are divisible) . The t wo apex bodies nam ely Planning Com m ission and Nat ional Developm ent Council ( NDC) rej ect ed t he proposal t o form ulat e a separat e sub- plan for religious m inor it ies t o be int egr at ed int o t he Elev ent h Fiv e- Year Plan. How ev er , t he NDC t ow ar ds it s com m it m ent for t he welfare of t he m inorit ies has assured im plem ent at ion of Prim e Minist er’s 15- point Program m e. The program m e st ipulat es t hat wherever possible, 15% of out lays under various schem es will be earm arked for t he m inorit ies. During 2006- 07, various m inist ries like Hum an Resource Developm ent , Labor and Em ploym ent , Housing and Urban Povert y Alleviat ion, Rural Developm ent , and Wom en and Child Developm ent have m ade separat e allocat ions for m inor it ies in t heir schem es. How ever , it is unclear how such an oner ous t ask has been be under t ak en in t he absence of suit able m echanism at dist r ict and block lev el w it hin t he inst it ut ional set - up. Furt her, no separat e st at ist ical profile for m inorit ies in t he proform a, applicat ion form s and m onit oring t ools have been provided. Em p loy m e n t A r ev iew on em ploy m ent car r ied out by cent r al gov er nm ent it self has found t hat m inor it y com m unit y m em bers figure a m ere 5% of t he t ot al direct recruit m ent m ade by different m inist ries during 2007. The Prim e Minist er’s 15- point Program m e for welfare of m inorit ies gave special considerat ion t o recruit m inorit ies in cent ral and st at e services along wit h public sect or undert aking. A gr oup of secr et ar ies for m ed t o r eview t he select ion pr ocess said t hat only few m inist r ies ar e ser ious about t he gover nm ent dir ect ives. The w hole r ecr uit m ent dr ive seem s far cical. Policy Ga ps a t I m ple m e n t a t ion Le v e l The Sachar Com m it t ee recom m endat ions were aim ed at bringing about syst em ic changes in t he inst it ut ional funct ioning and im provem ent in governance, essent ial t o im prove inclusiveness of t he Muslim com m unit y. But t he poor perform ance of t he governm ent is, t o say t he least , shocking; not w it hst anding som e t ok en incr eases, it has failed t o deliv er in ar eas such as inst it ut ional r efor m s, appr opr iat e policy init iat iv es and concr et e act ion plans. I t is also unfor t unat e t hat t he proposal for a separat e sub- plan for t he religious m inorit ies has been rej ect ed, w hich needs t o be int egr at ed int o t he Elev ent h Fiv e- Year Plan. I n t he field of educat ion, t her e has been pr ogr ess m ade t hrough SSA and t he Scholarship schem e by Minist ry of Minorit y Affairs. However, t here is no specific st rat egy for prom ot ing educat ion am ongst Muslim girls at prim ary level, including m easur es t o r educe school dr opout r at es, an easier adm ission pr ocess in higher and vocat ional educat ion, bet t er host el facilit ies and t eacher t r aining. A separ at e Minist r y ( Minor it y Affair s) w as cr eat ed t o ensur e t he im plem ent at ion of m or e t han 300 program m es by different m inist ries and depart m ent t o alleviat e povert y and im prove overall hum an developm ent . Pract ically speaking, it is im possible for a single m inist ry t o deal wit h so BACKGROUNDNOTE 112 m uch, efficient ly and holist ically. The larger m alaise of exclusion has t o be addressed by all ‘regular line depart m ent s’ and Minist ries at t he nat ional and St at e levels, t aken t oget her. The ATR appear s t o be lar gely unclear and v ague and fr aught w it h confusion. Fir st , t he ATR recom m ends 90 m inorit y dist rict s w it h “ subst ant ial m inorit y populat ion concent rat ions” t o provide “ basic am enit ies and em ploym ent opport unit ies ident ified on t he basis of poor developm ent al param et ers which cover only 30% of t ot al Muslim s, leaving t he rem aining 70% Muslim populat ion spread all over I ndia. Second, t he Sachar Com m it t ee has highlight ed t he st at us of Muslim s in a com par at ive per spect ive, but t he ATR r efer s t o “ Minor it ies” t hus dilut ing t he Muslim focus. Thir d, t he ATR does not have t he clear vision for universalizat ion of educat ion am ong t he m inorit y com m unit y. Besides, no m ent ion is m ade about prom ot ing higher educat ion am ong Muslim s. Fou r t h , n o clear st r at eg y an d ap p r op r iat e m ech an ism h as b een d ev ised t o im p r ov e t h e r epr esent at ion of Muslim s in t he legislat ur e/ Par liam ent , Cent r al/ St at e adm inist r at ions and Public Sect or Undert akings. I V. Suggest ions I n t he light of t he r ecom m endat ions of t he Sachar Com m it t ee, t he policies t o deal w it h t he relat ive deprivat ion of Muslim s ( t he largest and m ost backward m inorit y group) in I ndia should focus on follow ing point s: • I nit iat ing policy reform s and creat ing an appropriat e inst it ut ional m echanism at all level of governm ent for bet t er im plem ent at ion of newly launched schem es for m inorit ies. I t also r eq u ir es a d ef in it e t im elin e, a p r og r am m e- sp ecif ic st r at eg y at p lan n in g an d im plem ent at ion level and clarit y wit h respect t o m onit oring m echanism s and t ools. • Enhancing t he access t o cr edit and econom ic suppor t pr ogr am m es, bet t er access t o educat ion, im proved em ploym ent opport unit ies and condit ions, and support for com m unit y init iat ives are required on an urgent basis. • A cl ear st r at eg y an d ap p r o p r i at e m ech an i sm h as t o b e d ev i sed t o i m p r o v e t h e r epr esent at ion of m inor it ies in t he legislat ur e, defense est ablishm ent , police ser vices, Cent r al and St at e adm inist r at ions and Public Sect or Under t akings. • The inclusion of a separat e sub- plan for m inorit ies is t he pre- condit ion for an inclusive developm ent and m ainst ream ing of t he Muslim com m unit y while respect ing it s diversit y. • For bet t er coor dinat ion bet w een all ‘regular line depart m ent s’ and Minist ries at t he Nat ional, St at e an d dist r ict lev els, t h e st eps t ak en t o be t oget h er in pr ocess of pr ogr am m e im plem ent at ion and m onit oring and evaluat ion. 113 BACKGROUNDNOTE Resource Mobilizat ion Effort s of t he Union Governm ent N ila ch a la Ach a r y a ♣ Pur suit of fiscal r efor m s as a par t of t he ov er all econom ic r efor m s in t he count r y dur ing t he last t w o decades has r em ained t he cor e agenda of m ainst r eam t hink ing of t he policy m ak er s as w ell as dev elopm en t t h in k er s. Th e basic t en et s of t h e fiscal r efor m s, dom in at ed by fiscal conser v at ism , w er e t o r est r ict t he r ole of gov er nm ent in t he econom y t hr ough r at ionalizat ion ( or low er ing) of t ax es and lim it ing t he deficit s. This conser v at iv e fiscal t hink ing w as giv en legal t eet h t hr ough t he Fiscal Responsibilit y and Budget Managem ent ( FRBM) Act in 2004. Post FRBM Act , t he Union Gov er nm ent , gov er ned by st r ict deficit r educt ion t ar get s, has focused on ex pendit ur e r at ionalizat ion or ev en ex pendit ur e cut m easur es inst ead of augm ent ing m or e r esour ces. Giv en t his back dr op, t he pr esent not e begins w it h a sit uat ional analy sis on r esour ce m obilizat ion effor t s of t he Union Gov er nm ent ov er t he last few y ear s. Subsequent ly , it highlight s som e of t he k ey m easur es of t he Gov er nm ent of I ndia t ow ar ds r esour ce m obilizat ion in t he r ecent Budget s. I t t hen suggest s som e k ey point er s t o be t ak en up in for m ulat ing a char t er of dem ands on r esour ce m obilizat ion w hich ar e needed t o be incor por at ed in t he for t hcom ing Union Budget . The inabilit y of t he gov er nm ent t o collect enough t ax es t o finance t he dev elopm ent al needs of t he count r y had been one of t he m ost w or r y ing feat ur es of I ndia’s dev elopm ent ex per ience, but r efor m m easur es since ear ly ninet ies had w or sened t he sit uat ion fur t her . The low er ing of t ax - GDP r at io had put enor m ous st r ain on t he fiscal posit ion of t he Union Gov er nm ent . Reduct ion in fiscal deficit bein g t h e cen t r al agen da of su ccessiv e gov er n m en t s at t h e cen t r e, t h er e w er e huge cut back s in public ex pendit ur e in im por t ant social sect or s lik e healt h and educat ion and econom ic sect or s lik e agr icult ur e and r ur al em ploy m ent . What is ev en m or e dist ur bing is t hat in t he per iod of econom ic r efor m s t his t ax - GDP r at io had t ak en a fur t her beat ing im ply ing t hat r educt ion in fiscal deficit s ov er t his per iod has been at t ained m ainly at t he cost of public ex pen dit u r e. We find t hat t her e has been a subst ant ial incr ease in t he t ax - GDP r at io fr om ar ound 9 per cent of GDP in 2003- 04 t o ar ound 13 per cent of GDP in 2008- 09 BE. But t he non- t ax r ev enue- GDP r at io declined shar ply t o ar ound 2 per cent of GDP in 2008- 09, w hich w as 2.78 per cent dur ing 2003- 04. Ta ble - 1 : Tr e n ds in Ta x - GD P a n d N on Ta x - GD P Ra t ios for t h e Un ion Gov e r n m e n t Ye a r 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 2007 - 08 RE @ 2008 - 0 9 BE $ Gr oss Ta x Re ve nue a s % of GD P 8. 80 8. 97 8. 20 8. 80 9. 20 9. 75 10.23 11.42 12.47 12.97 N on Ta x Re ve n u e as % of GD P 2.73 2.66 2.97 2.94 2.78 2.60 2.15 2.01 1.99 1.81 So u r ce: Recei p t s Bu d g et , Go v er n m en t o f I n d i a No t e s: GD P a t Ma r k e t Pr i ce f i g u r e s ( Ba se 1 9 9 9 - 2 0 0 0 ; At cu r r e n t p r i ce s) a r e t a k e n f r o m CSO; @ GD P f o r 2 0 0 7 - 0 8 i s Ad v a n ce d Est i m a t e p r o v i d e d b y CSO; $ GD P f o r 2 0 0 8 - 0 9 i s p r o j e ct i o n m a d e b y t h e Fi n a n ce M i n i st e r i n “ Bu d g e t a t a Gl a n ce , 2 0 0 8 - 0 9 ” BACKGROUNDNOTE 114 Ta ble - 2 : Un ion Gove r n m e n t ’s D ir e ct a n d I n dir e ct Ta x e s a s pe r ce n t of GD P Ye a r 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 2007- 08 RE @ 2008 - 09 BE $ Gr oss Ta x Re ve n u e a s % of GD P 8. 80 8. 97 8. 20 8. 80 9. 20 9. 75 10.23 11.42 12.47 12.97 D ir e ct Ta x e s ( Gr oss) as % of GDP 2.97 3.25 3.03 3.38 3.80 4.23 4.40 5.30 6.49 6.88 I n dir e ct Ta x e s ( Gr oss) a s % of GD P 5.83 5.72 5.17 5.42 5.40 5.53 5.83 6.12 5.98 6.08 So u r ce: Recei p t s Bu d g et , Go v er n m en t o f I n d i a No t e s: GD P a t Ma r k e t Pr i ce f i g u r e s ( Ba se 1 9 9 9 - 2 0 0 0 ; At cu r r e n t p r i ce s) a r e t a k e n f r o m CSO; @ GD P f o r 2 0 0 7 - 0 8 i s Ad v a n ce d Est i m a t e p r o v i d e d b y CSO; $ GD P f o r 2 0 0 8 - 0 9 i s p r o j e ct i o n m a d e b y t h e Fi n a n ce Mi n i st e r i n “ Bu d g e t a t a Gl a n ce , 2 0 0 8 - 0 9 ” There has been a subst ant ial increase in t he t ax- GDP rat io of t he Union Governm ent over t he last t hr ee fiscal y ear s. Ther e is a significant incr ease in dir ect t ax collect ion ( i.e. fr om ar ound 4 percent t o 7 percent of GDP during 2003- 04 t o 2008- 09) . How ever, given t he huge grow t h in GDP, m uch gr eat er buoy ancy in t ax collect ion could be ex pect ed, w hich t he gov er nm ent failed t o appr opr iat e. Meanw hile, t he pr oceeds fr om indir ect t axes have also incr eased fr om ar ound 5.4 percent of GDP t o 6.08 percent during t he period in bet w een 2003- 04 t o 2008- 09. What is dist ur bing is t hat ser v ice sect or , w hich has t he lar gest cont r ibut ion t o GDP ( 55 per cent ) , cont r ibut es only ar ound 9 per cent of gr oss t ax collect ions and 20 per cent of t he t ot al indir ect t ax pr oceeds. The lar gest pr opor t ion of t he indir ect t ax es is act ually collect ed fr om t he consum er s of final pr oduct s of non- agr icult ur al com m odit y pr oducing sect or s. This is not a desir able sit uat ion in a dem and- const r ained econom y , giv en t hat t he gov er nm ent is act ually not t r y ing t o div er t t hese proceeds in boost ing t he dem and in t he econom y. Ta ble - 3 : I m por t a n t I t e m s of Ta x Re ve n u e a s Pr opor t ion of GD P Ye a r Cor p or a t ion tax Ta x e s on Cu st o m s I n co m e ot h e r t h a n Cor p or a t ion Ta x As Pe r ce n t o f GD P a t M P 1. 51 2. 26 1. 40 1. 77 1. 50 1. 82 1. 50 1. 76 1. 58 1. 84 1. 56 1. 82 1. 81 2. 08 2. 52 2. 15 U n ion Ex cise Duty 2 0 0 0 - 01 2 0 0 1 - 02 2 0 0 2 - 03 2 0 0 3 - 04 2 0 0 4 - 05 2 0 0 5 - 06 2 0 0 6 - 07 2 0 0 7 - 08 RE 2 0 0 8 - 09 BE 1. 70 1. 60 1. 88 2. 30 2. 64 2. 83 3. 48 3. 97 3. 26 3. 18 3. 35 3. 28 3. 17 3. 11 2. 84 2. 73 4. 27 2. 61 2. 24 2. 60 So u r ce: Recei p t s Bu d g et , Go v er n m en t o f I n d i a No t e s: GD P a t Ma r k e t Pr i ce f i g u r e s ( Ba se 1 9 9 9 - 2 0 0 0 ; At cu r r e n t p r i ce s) a r e t a k e n f r o m CSO; @ GD P f o r 2 0 0 7 - 0 8 i s Ad v a n ce d Est i m a t e p r o v i d e d b y CSO; $ GD P f o r 2 0 0 8 - 0 9 i s p r o j e ct i o n m a d e b y t h e Fi n a n ce Mi n i st e r i n “ Bu d g e t a t a Gl a n ce , 2 0 0 8 - 0 9 ” 115 BACKGROUNDNOTE Fur t her segr egat ions of som e im por t ant sour ces of t ax r ev enue r ev eals t hat t her e has been a subst ant ial incr ease in cor por at ion t ax as w ell as t ax es on incom e ot her t han cor por at ion t ax , but t ax- GDP rat io from cust om s and union excise dut y is not show ing any encouraging t rend since 1999- 2000. Falling shar e of cust om s dut ies as pr opor t ion of GDP since 2000- 01 is a consequence of t he ov er all policy of t r ade liber alisat ion, and t he accom pany ing r educt ion in excise dut ies w hich, is basically m eant t o ensur e t hat dom est ic pr oducer s ar e not at disadvant age. While t he decline in t he r at es of bot h cust om s and ex cise dut ies becam e inev it able in t he cont ex t of t he opening up of t he econom y and t he need t o pr ovide a level playing field t o dom est ic producers, t he persist ence of exem pt ions and concessions for bot h of t hese t axes have subst ant ially r educed t he collect ion of t hese t ax es. Ta ble - 4 : Som e I t e m s of Ca pit a l Re ce ipt s a n d D ivide n ds a n d Pr ofit s a s Pr opor t ion of GD P Ye a r 1999 - 0 0 2000 - 0 1 2001 - 0 2 2002 - 0 3 2003 - 0 4 2004 - 0 5 2005 - 0 6 2006 - 0 7 2007 - 08 RE @ 2008 - 09 BE $ Ex t e r n a l D e bt N e t 0.06 0.36 0.25 - 0.49 - 0.49 0.47 0.21 0.20 0.21 0.21 D isinve st m e nt Pr oce e ds 0.09 0.10 0.16 0.13 0.61 0.14 0.04 0.01 0.77 0.19 D ivide n ds & Pr ofit s 0.49 0.65 0.76 0.86 0.77 0.73 0.71 0.71 0.77 0.81 The gover nm ent is st ill collect ing a significant sum of r esour ces t hr ough disinvest m ent pr oceeds. This indicat es gov er nm ent s r et r eat fr om t he obj ect iv es of socialist ic spr it of a st r ong ex ist ence of a public sect or. I n order t o achieve m axim um wellbeing of t he people, services provided by t he public sect ors is t he only resort for t he com m on m ass in a com pet it ive m arket fram ework. While during t he init ial years of t he present regim e of t he governm ent , t he governm ent rest rained it self from undert aking disinvest m ent act ivit ies; it has been keen t o revert back again t o increased disinv est m ent act iv it ies especially dur ing last t w o y ear s. The r esour ces fr om disinv est m ent proceeds increased sharply from around 0.01 percent of GDP in 2006- 07, t o around 0.77 percent in 2007- 08 RE and t o 0.19 percent in 2008- 09 BE. Ta ble - 5 : I n t e r n a t ion a l Com pa r ison of Ta x – GD P r a t io Tot a l Ta x Re ve n u e a s a pr opor t ion of GD P in 2004 Count ries Gr oss Tax Rev enue as % of GDP Sw eden 50.7 Denm ark 49.6 Belgium 45.6 Net herlands 39.3 Spain 35.2 U.S. 25.4 S. Korea 24.6 Mexico 18.5 I ndia * 16 No t e: * 2 0 0 4 - 0 5 BE ( To t a l t a x r ev en u e f o r t h e co u n t r y ) So u r ce: Ba ck g r o u n d No t e f o r Na t i o n a l Co n v en t i o n o n Un i o n Bu d g et , 2 0 0 7 - 0 8 , CBGA, New D el h i , I n d i a BACKGROUNDNOTE 116 The abov e t able pr esent s a com par at iv e pict ur e of t he t ax - GDP r at io of I ndia v is- à- v is som e of t he count r ies in t he w or ld. Though for I ndia, t ax- GDP r at io has been r ising over t he last couple of y ear s, it st ill falls far shor t of t he lev els at t ained by m ost dev eloped count r ies as w ell as som e of t he dev eloping count r ies of t he w or ld. T a b l e - 6 : T a x R e v e n u e Fo r e g o n e i n Ce n t r a l Go v e r n m e n t T a x S y st e m d u e t o T a x Ex e m p t ion s/ I n ce n t iv e s/ D e d u ct ion s ( in Rs. Cr or e ) I tem s Corporat e I ncom e Tax Personal I ncom e- t ax Excise Dut y Cust om s Dut y Tot al Less ( Relat ed t o Export Credit ) Grant Tot al Re ve nue for e gon e in 2 0 0 6- 07 Re ve nue for e gon e in 2 0 0 708 Re ve n u e For e gon e a s % of a ggr e ga t e t a x colle ct ion in 2007 -0 8 45034 Re ve nue For e gon e a s % of a ggr e ga t e t a x colle ct ion in 2 0 0 6- 07 9. 56 58665 10.09 32143 75475 137105 289757 50045 6. 82 16.02 29.11 61.51 10.62 42161 87992 148252 337060 58416 7.25 15.14 22.51 58.00 10.05 239712 50.89 278644 47.94 No t e s: As p e r t h e Re ce i p t s Bu d g e t i n Un i o n Bu d g e t 2 0 0 7 - 0 8 , “ t h e e st i m a t e s a n d p r o j e ct i o n s a r e i n t e n d e d t o i n d i ca t e t h e p o t e n t i a l r ev en u e g a i n t h a t w o u l d b e r ea l i zed b y r em o v i n g ex em p t i o n s, d ed u ct i o n s, w ei g h t ed d ed u ct i o n s a n d a f f ect ed b y r em o v a l o f su ch m ea su r es…. . ( Al so ) t h e co st o f ea ch t a x co n cessi o n i s d et er m i n ed sep a r a t el y , a ssu m i n g t h a t a l l o t h er t a x p r o v i si o n s r em a i n u n ch an g ed ” Ag g r eg a t e Ta x Co l l ect i o n r ef er s t o t h e a g g r eg a t e o f n et d i r ect a n d i n d i r ect t a x co l l ect ed b y t h e Cen t r a l Go v er n m en t . Th e f i g u r e o f Ag g r e g a t e t a x co l l e ct i o n f o r 2 0 0 7 - 0 8 i s b a se d o n r e v i se d e st i m a t e s. Sour ce: Receipt s Budget 2008- 09, gov er nm ent of I ndia Huge am ount of r esour ces ar e for egone ever y year on account of var ious t ax exem pt ions in t he cent r al gov er nm ent t ax sy st em . The t ot al r ev enue est im at ed t o be for egone in t he cent r al governm ent t ax syst em for t he year 2007- 08 is around 6 percent of GDP. Such an am ount is m or e t han sufficient ( 180 per cent ) t o pay for budget ar y suppor t for Cent r al plan expendit ur e and ar ound half of t he gr oss t ax collect ions ( 47.94 per cent ) . Ta ble - 7 : Ta x Re ve n u e r a ise d bu t n ot r e a lise d ( Pr in cipa l Ta x e s) ( Rs in Crore) D e scr ipt ion Corporat ion Tax Taxes on I ncom e ot her t han corporat ion t ax Cust om s Union Excise Services Tax Tot al As a t t he e nd of r e por t ing ye a r 2 0 0 5- 0 6 Am ou n t s Am ount s Gr a nd Unde r not Unde r Tot a l Disput e D isput e 28378 9626 38004 31549 5921 37470 As a t t he e nd of r e por t ing ye a r 2 0 0 6 -0 7 Am ou n t s Am ou n t s Gr a nd Unde r not Unde r Tot a l Disput e Disput e 26603 12352 38955 24730 15391 40121 2442.94 7600.87 409.33 70380.14 2897.05 10573 721.03 65524.08 810.02 3413.43 105.29 19875.74 3252.96 11014.3 514.62 90255.88 1205.73 4626.43 193.8 33768.96 4102.78 15199.43 914.83 99293.04 So u r ce : Re ce i p t s Bu d g e t , Un i o n Go v e r n m e n t , 2 0 0 7 - 0 8 a n d 2 0 0 8 - 0 9 . 117 BACKGROUNDNOTE Moreover, t he Union Finance Minist er has not announced any significant m easure unt il now for r ecover ing t hose t ax ar r ear s w hich ar e not under disput e; such t ax ar r ear s ( not under disput e) am ount ed t o Rs. 19,875 crore at t he end of t he report ing year 2005- 06 and Rs. 33769 crore at t he end of t he report ing year 2006- 07. Pr opose d Goods a n d Se r vice s Ta x ( GST) : Som e Con ce r n s Following an agreem ent bet ween t he Cent ral Governm ent and t he St at e Governm ent s, t he rat e of Cent ral Sales Tax has been reduced from 4 per cent t o 3 per cent during t he previous financial year t hat is 2007- 08. And for t he current financial year it has been furt her reduced t o 2 per cent w hich is w it h effect from April 1, 2008. The Finance Minist er, in his budget speech m ade in Parliam ent for t he current year announced t hat t he consult at ions wit h t he st at es are underway on t he com pensat ion for losses, if any, and once agreem ent is reached t he new rat e w ill be not ified. He is also happy t hat t here is considerable progress m ade in preparing a roadm ap for int roducing t he Goods and Services Tax wit h effect from April 1, 2010. I n order t o underst and t he change in t he fiscal scenario from 2010, when t he GST is expect ed t o be int roduced, t he role of t he Thirt eent h Finance Com m ission ( TFC) w ill be crucial t o com e out w it h a new basis for devolut ion of t axes bet w een t he cent er and t he st at es. While t he Em powered Com m it t ee of St at e Finance Minist ers has suggest ed a dual st ruct ure for GST wit h separat e t axes at t he Cent re and t he st at e level, t he finance m inist ry is st ill looking int o the feasibility of such a m odel. Let us exam ine som e of the challenges surrounding the introduction of t he dual- GST at t his point of t im e while exam ining t he im pact of proposed GST. While t he pr ofessed obj ect iv e of t he GST is t o subsum e all indir ect t ax es t hat ar e cur r ent ly im posed on t he flow of goods and ser v ices, t he st at es appear t o hav e r esist ed t he m ov e t o subsum e several st at e t axes. The fundam ent al t hing t hat is wort h m ent ioning here is t hat GST, in it s proposed form , is a st um bling block t owards t he sprit of fiscal decent ralizat ion. Many fear t hat , by cent ralizing t he t ax collect ion ( indirect t axes) process t hrough int roduct ion of GST will concentrate the econom ic power at the centre and it will lead to further widen the gap of econom ic inequalit ies am ong t he sub- nat ional unit s. There is no doubt t hat m ost of t he local t axes w ill com e under t his proposed t ax syst em w hich leads t o squeezing t he aut onom y of t he local governm ent al unit s in raising and spending m oney as per t he t heir need. Hence, t he challenges of how best t o ensur e t hat t he r ev enues of t he st at es and local governm ent s are prot ect ed under t his proposed regim e of GST. Anot her key policy challenge relat ing t o GST is t hat of det erm inat ion of a uniform t hreshold, w hich w ould apply for bot h t he feder al GST as w ell as t he st at e GST. The pr esent posit ion wherein there are significantly differing thresholds across the two federal indirect taxes of CENVAT and service t ax, t oget her wit h t he co- exist ence of m ult iple t hresholds under t he st at e VAT, is not conducive at all t o t he int roduct ion of a uniform t hreshold under GST. The obj ect ive of ensuring t hat com pliance cost s relat ed t o t he dual GST are wit hin m anageable lim its can only be m et through standardization. The challenge here is that the present tax statutes across t he federal indirect t axes ( CENVAT and service t ax) and t he st at e VAT are considerably different wit h regard t o t heir principles and procedures and hence, t he t ask of st andardizat ion is necessary before im plem ent ing GST. An obvious challenge t hat is em erging here wit h regard t o t im e and effort will be required t o be put in t o ensur e t hat t he v ast bur eaucr acy in t he gov er nm ent t ax depar t m ent s is adequat ely inform ed and t rained on t he fundam ent ally different t ax t hat is proposed t o be int roduced. The present cent ral governm ent has been a st rong proponent of fiscal conservat ism and it has been zealously pursuing t he t arget s for reduct ion of Revenue Deficit and Fiscal Deficit as dict at ed by t he Fiscal Responsibilit y and Budget Managem ent ( FRBM) Act . The Finance Minist er expect s t hat t he fiscal deficit for t he year 2008- 09 BE shall be m aint ained at 2.5 percent of GDP which is significant ly lower t han t he FRBM t arget of 3 percent of GDP. The revenue deficit is expect ed t o be at 1 percent of GDP during 2008- 09 BE. The prim ary deficit has act ually becom e negat ive. BACKGROUNDNOTE 118 Ta ble - 8 : D e ficit s of t h e Ce n t r a l Gove r n m e n t a s pe r ce n t of GD P Year 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 2007 - 08 RE @ 2008 - 09 BE $ GD P a t MP 1952036 2102375 2281058 2458084 2765491 3126596 3580344 4145810 4693602 5303770 Re ve n u e D e f icit 3.5 4.1 4.4 4.4 3.6 2.5 2.6 1.9 1.4 1.0 Pr im a r y D e ficit 0.7 0.9 1.5 1.1 0.0 0.0 0.4 -0.2 -0.4 -0.7 Fisca l D e ficit 5.4 5.7 6.2 5.9 4.5 4.0 4.1 3.4 3.1 2.5 So u r ce: Sam e as t ab l e- 2 Off budge t Subsidie s t hr ough se lling Bonds: H ow ‘M e r it or ious’ a r e t he y? There are m erit subsidies and t here are non- m erit subsidies. Merit subsidies w ould have t o be cont inued wit h a view t hat m ost of such benefit s are being reaped by t he m arginalized sect ions of t he societ y. Most of non- m erit subsidies are being funded by m eans of off- budget provisions t hrough selling bonds. The quest ion here is how one can see t he account abilit y and t ransparency of t he whole exercise as well as t he account ing j ugglery of preparing t he budget in t he cont ext of FRBM and br inging dow n t he deficit s. Let us have a br ief look int o t he w hole exer cise in t he cont ext of Budget 2008- 09 and what could be it s m acro policy im plicat ions. The governm ent has largely funded t he growing subsidy on pet roleum product s and fert ilizers t hrough bonds. The fert iliser and pet roleum com panies sell product s lower t han t he cost and t he gover nm ent m akes up t he deficit t hr ough bonds. These ar e nor m ally not show n w it hin t he budget ar y classificat ions. The t ot al subsidy bill in 2007- 08, w hich w as pegged at Rs 69,742 crores init ially, inclusive of t he off- budget oil and fert iliser bonds, increased t o Rs 88,499 crores. I n 2008- 09, t he subsidy bill will be subst ant ially higher t han t he est im at ed Rs 71,431 crores. The gover nm ent has pr oj ect ed a r evenue r eceipt of Rs 6,02,935 cr or es and an expendit ur e of Rs 6,58,119 cr or es. The ex pendit ur e is ex pect ed t o be subst ant ially higher t han t he est im at e in wake of t he rise in global oil prices, fert iliser subsidy, im plem ent at ion of pay com m ission recom m endat ions and farm debt - waiver package. A clear exam ple in t his regard is t he loan waiver schem e for farm ers. I ndeed it is a welcom e announcem ent in t he Budget by t he Finance Minist er. But t he banking indust ry is asking a different quest ion: who will bear t he burden? I t is not surprising t hat m any of t he subsidies, in general, rem ain off- Budget as only a sm all port ion of t hem are explicit ly shown in t he budget docum ent s ( like food subsidy) . But how j ust ifiable are t hese subsidies for which governm ent is afraid of m aking provision in t he Budget ? I n I ndia, we find subsidy support for various goods and services, such as like food, fert iliser, pet roleum , energy, irrigat ion, educat ion, drinking wat er, and so on. The sim ple j ust ificat ion for such support is t hat t he cost of providing t hese goods and services is so high t hat t he com m on m an cannot afford t hem . But t here is an argue t hat in a welfare st at e, m axim izat ion of aggregat e consum er welfare is facilit at ed t hrough t he subsidizat ion of goods and services t hat benefit t he poor. But unfort unat ely, m uch of t he subsidy benefit s go t o t he rich and undeserving in place of the poor. 119 BACKGROUNDNOTE I m ple m e n t a t ion of FRBM Act The I ndian Parliam ent , in August 2003, passed t he Fiscal Responsibilit y and Budget Managem ent ( FRBM) Act , w hich im poses st r ingent fiscal discipline on t he cent r al gover nm ent in it s over all fiscal and m acr oeconom ic m anagem ent oper at ions. The st at ed obj ect iv es behind t his Act w er e: l l l To m aint ain t ransparency in fiscal m anagem ent syst em s in t he count ry; To bring int er generat ional equit y in debt m anagem ent ; and To bring long t erm fiscal st abilit y in t he econom y I t pr ov ided for t hr ee st at em ent s t o be pr esent ed by t he cent r al gov er nm ent nam ely ; 1. 2. 3. The Medium Ter m Fiscal Policy st at em ent ; Fiscal Policy St r at egy St at em ent ; and Macr o Econom ic Fr am ew or k st at em ent . Ta r ge t s Se t in t h e FRBM Act The FRBM Act has put for w ar d a set of t ar get s t o be achiev ed ov er a per iod and t hese t ar get s ar e: l Elim inat ion of Revenue Deficit ( RD) by March 2009; l Reduct ion of Fiscal Deficit ( FD) t o an am ount equivalent t o 3 % of GDP by Mar ch 2008; l Reduct ion of RD by an am ount equivalent of 0.5 per cent or m ore of t he GDP at t he end of each financial year, beginning wit h 2004- 05; and l Reduct ion of FD by an am ount equivalent of 0.3 per cent or m or e of t he GDP at t he end of each financial year, beginning wit h 2004- 05 I n pr act ice, t he Act w as a deficit m anagem ent t ool for t he gov er nm ent . Accor ding t o m ainst r eam econom ist s, deficit s in gov er nm ent budget s ar e consider ed t o be m aj or fact or s affect ing t he gr ow t h pr ocess in t he econom y by cont r ibut ing t o inflat ion and incr easing t he debt bur den leading t o a great er resource drain on t he exchequer in t erm s of int erest paym ent s. Deficit s in gener al can be cont ained t hr ough differ ent m echanism s. I t can be a fr ont loaded m echanism reducing deficit s t hrough great er resource m obilizat ion or a back loaded m et hod by reducing expendit ure. I n I ndia, bot h t he m et hods were followed in different int ensit ies. I n order t o augm ent resources, policies like disinvest m ent were also followed along wit h m aj or reform s in t ax policies and adm inist r at ion. I t is now necessar y t o assess t he im pact of t he Act on v ar ious facet s of I ndian public policy paradigm . Som e of t he m aj or findings are present ed below. I m pa ct of FRBM As a t ool for br inging t r anspar ency , t he fiscal policy and fiscal st r at egy st at em ent s br ought out by t he governm ent are appreciable as t hese provide subst ant ial inform at ion t o t he w ider public and m edia for assessing t he fiscal sit uat ion of t he count r y on a r egular basis. Much infor m at ion on t ax exem pt ions, det ails of int ernal and ext ernal debt , different short t erm forecast s on m acro econom ic indicat ors are now available in public dom ain. On t he ot her fr ont , a m aj or logic behind r educing deficit s w as t hat deficit s lead t o inflat ion and t his act call for r educing deficit s in or der t o cont ain inflat ion. The Union Gover nm ent has been able t o show low er levels of deficit s. How ever , accor ding t o m any obser ver s, t he act ual m agnit ude of gov er nm ent ’s indebt edness has not com e dow n ov er t he last few y ear s; since som e of t he fiscal oper at ions of t he cent r al gov er nm ent hav e been shift ed off t he budget by using t he public sect or under t ak ings. Union budget 2008- 09, w it h r egar d t o deficit s r eflect s t hat t hese ar e being m aint ained at a lev el far below t he FRBM t ar get s. The Finance Minist er hopes t hat t he fiscal deficit for t he y ear 200809 BE shall be m aint ained at 2.5 per cent of GDP com par ed t o t he FRBM t ar get of 3 per cent . The revenue deficit is expect ed t o be cont rolled at 1 percent of GDP during 2008- 09 BE. The prim ary deficit has act ually t ur ned out t o be negat iv e. I n a count r y lik e our s w it h huge ex cess capacit y of t he fact or s of pr oduct ion, a higher pr im ar y deficit is act ually beneficial for t he econom y as it creat es m ore effect ive dem and and t hereby em ploym ent in t he econom y. BACKGROUNDNOTE 120 Based on t he above discussion, we need t o raise som e key concerns wit h regard t o t he fort hcom ing Union Budget . l l l l Looking at t he t ax- GDP r at io of I ndia vis- à- vis t he sam e in ot her count r ies of t he w or ld, I ndia is lagging far behind. Falling shar e of cust om s dut ies as a pr opor t ion of GDP since 2000- 01, has added t o t he governm ent ’s challenges in augm ent at ion of m ore resources. The reduct ions in cust om s dut ies are consequences of t he blind im plem ent at ion of t rade liberalisat ion policies and t he ex ist ing r at es ar e ev en at t im es below t he r equisit e lev els t o m eet com m it m ent s t o WTO. Gov er nm ent should incr ease cust om s dut ies, at least t o t he WTO pr escr ibed lev els. Tax r evenue for gone due t o t ax exem pt ions, incent ives and deduct ions in t he Cent r al Gov er nm ent t ax sy st em - especially w it h r egar d t o cust om s dut y and cor por at e t ax es should be lim it ed as m uch as possible. Moreover, t he governm ent should t ry t o collect t he t ax ar r ear s w hich ar e not under disput e. At t he present j unct ure, t he Union Governm ent should have expanded t he size of Union Budget significant ly ( especially t he Plan com ponent ) in or der t o pr ov ide adequat e r esour ce suppor t t o cr ucial econom ic sect or s lik e, agr icult ur e and r ur al dev elopm ent and t he social sect or s. How ev er , t he obsession of t he pr esent Gov er nm ent w it h t he FRBM Act and it s ar bit r ar y t ar get s has been t oo st r ong an obst acle in t his r egar d. This art icle has draw n significant ly from CBGA ( 2008) , “ Budget 2008- 09: Reaffirm ing Rhet oric Response t o t he Union Budget 2008- 09" , New Delhi ( available at www.cbgaindia.org) . 121 BACKGROUNDNOTE Public Policy on Clim a t e Cha nge a nd Environm ent a l Prot ect ion in I ndia : Som e Key I ssues a nd Cha llenges Gya n a Ra n j a n Pa n da a n d Ka u sh ik Ga n gu ly One of t he m aj or cr it ical challenges facing t he 21 st cent ury world is t he phenom enon of clim at e change. The m aj or driving force behind t his phenom enon is t he uncont rolled expansion of hum an set t lem ent s and ov er - ex ploit at ion of nat ur al r esour ces pushing nat ur e beyond it s lim it t o absorb t hese ant hropogenic int erferences. Unm it igat ed m ining of m ineral resources, part icularly m ineral oil and gas t o fuel t he econom ic expansion of nat ions w or ldw ide, is t hr eat ening t he ener gy secur it y of t he ent ir e dev eloped and dev eloping w or ld. Also, accum ulat ion of gr eenhouse gases (GHGs) 1 in t he at m ospher e is hav ing unpr ecedent ed im pact on t he clim at e sy st em acr oss t he w or ld. Accor ding t o I nt er - gover nm ent al Panel on Clim at e Change ( I PCC) 3rd Assessm ent Report on t he st at e of clim at e t he decade of 1990s hav e been t he w ar m est decade and t he par t icular year 1998 being t he w arm est year since inst rum ent al recording have begun. The im m ediat e effect of such global warm ing are already showing in t he form of rise in sea level, deplet ion in snow cover and ice sheet s, shift in rainfall pat t erns and rise in air t em perat ure w hich in t urn is affect ing w at er sheds and ecosy st em s acr oss t he w or ld. I n addit ion t o t hese, ex t r em e w eat her condit ions have becom e r egular feat ur e acr oss t he w or ld, br inging unt old m iser y t o t he populace in developing and t he developed world. The econom ic cost s associat ed wit h t hese ext rem e weat her condit ions leading t o crop failures, loss of livelihood and lives are st eadily growing higher. I n case of sm all island count ries im pact of phenom ena like rise in sea levels and adverse weat her condit ions are even m ore t elling as t here arises possibilit ies of decline in habit able space t riggering large scale m igr at ion. While dev eloped count r ies in m any w ay s ar e bet t er poised t o t ack le t hese issues, dev eloping and less dev eloped count r ies ( LDCs) face m or e m iser y because of acut e shor t age of r esour ces and infr ast r uct ur e. I ndia, a dev eloping econom y , has got v ast sw at h of it s populat ion living in povert y, depending m ost ly on w eat her condit ions and nat ural resources for t heir livelihood w ho are, t hus, m ore vulnerable t o t he vagaries of nat ure. Alleviat ion of t he condit ion of t hese people requires huge governm ent int ervent ion in t erm s of budget ary allocat ions and policy regulat ions for prom ot ing sust ainable m eans of livelihood. I t also involves prevent ing over - exploit at ion of nat ur al r esour ces and building r esilience of t he societ y t o ext r em e or er r at ic w eat her condit ions. I n addit ion, proact ive init iat ive is also required from t he governm ent t o build a nat ional dat abase on clim at e condit ions and variat ions, prom ot e research and developm ent and cr eat e conduciv e at m ospher e for assim ilat ion of cleaner t echnologies. The response of t he int ernat ional com m unit y t o clim at e change has been alm ost unanim ous and com prehensive. The Unit ed Nat ions Fram ework Convent ion on Clim at e Change ( UNFCCC) provides t he basis for collect iv e act ion t o m it igat e clim at e change and lend a helping hand t o dev eloping and less developed count r ies t o adapt t o t he effect s of clim at e change. The over t ly st at ed obj ect ive of t he UNFCCC is st abilizat ion of GHGs in t he at m osphere by curbing hum an int erferences w it h t he clim at e syst em s. This st abilizat ion of GHGs should be at an int ernat ionally agreed level and w it hin a t im e fr am e t hat w ould enable ecosy st em s ar ound t he w or ld t o adapt nat ur ally t o clim at e change. The UNFCCC, however, does not lay down any explicit t arget for lim it ing t he GHGs but it does r ecognize t he differ ent iat ed r esponsibilit y of t he dev eloped and indust r ialized count r ies v isà- vis t he LDCs and developing count r ies in t his r egar d. The Convent ion ( UNFCCC) envisages t he developed- indust r ialized count r ies ( Annex I count r ies w it hin t he Convent ion) t o br ing dow n t heir GHGs em issions individually or j oint ly t o t he 1990 level. A different iat ed group wit hin t he Annex I ( count r ies list ed as Annex I I t o t he Conv ent ion) is r equir ed t o pr ov ide financial assist ance and facilit at e t ransfer of t echnology t o developing count ries t o help t hem im plem ent t heir com m it m ent s t o t he conv ent ion. Non –Annex I count r ies hav e also been differ ent iat ed accor ding t o t heir capabilit ies t o r espond t o clim at e change. For t y - eight count r ies hav e been ident ified by t he Unit ed Nat ions as least dev eloped count r ies ( LDCs) and hav e been giv en special consider at ion because of t heir lim it ed abilit y t o r espond and adapt t o t he effect s of clim at e change. I ndia, being a non- Annex I count ry, has been exem pt ed from t he binding obligat ions of reducing it s GHGs em issions. However, being a part y t o t he UNFCCC it recognizes t he com m on but different iat ed responsibilit y of all t he count ries in addressing clim at e change concerns and reaffirm s t he right of each inhabit ant of ear t h an equal ent it lem ent of global at m ospher ic r esour ces. BACKGROUNDNOTE 122 I . Clim at e Change Concerns for I ndia and it s Response The challenges owing t o clim at e change confront ing I ndia are enorm ous and equally variegat ed. Wit h around 72 percent of it s populat ion residing in rural areas and dependent on agricult ure and allied act iv it ies, addr essing t he challenges is necessar y t o ensur e food secur it y and v iable livelihood opt ions for t his vast m aj orit y of it s populat ion. Equally im port ant is t he preservat ion of t he Him alayan ecosyst em s which is t he cradle of im m ense biodiversit y and variet y of wildlife; it s glacial and river syst em s form ing crit ical backbone for t he hum an civilizat ion of t he plains of nor t her n I ndia. I t s huge coast line and island st at es m ak es a significant ly lar ge sect ion of it s populat ion ext rem ely vulnerable t o phenom enon like rise in sea level, cyclones or st orm surges and ot her ex t r em e w eat her condit ions. Mor eov er a lar ge sect ion of t he populat ion depends for t heir liv elihood on t he m ar ine ecosy st em s ar ound t he coast s, t her efor e conser v at ion of t hese as well as allowing for sust ainable exploit at ion is a m aj or challenge. The Nat ional Act ion Plan on Clim at e Change ( NAPCC) brought out by t he Governm ent of I ndia, asser t s t hat t he I ndian econom y as closely as it is t ied t o t he nat ur al r esour ce base and clim at esensit iv e sect or s such as agr icult ur e, w at er and for est r y , a clim at e change dr iv en alt er at ion in t he in t he qualit y and dist ribut ion of it s nat ural resources is bound t o im pair it s developm ent . I t also ack now ledges t he nascent nat ur e of t he econom y and t he dev elopm ent pr ocess, t her eby t he wider variet y of choices t hat I ndia has in chart ing out a pat hway t hat is ecologically sust ainable. The NAPCC also lays dow n som e guiding principles for t he fut ure course of act ion on developm ent and clim at e change issues, w hich ar e: a) pr ot ect t he poor and v ulner able of t he societ y t hr ough sust ainable dev elopm ent st r at egy sensit iv e t o clim at e change; b) achiev ing nat ional gr ow t h obj ect ives t hr ough a qualit at ive change in dir ect ion t hat enhances ecological sust ainabilit y leading t o fur t her m it igat ion of GHGs; c) dev ising cost effect iv e st r at egy for end use Dem and Side Managem ent ; d) deploying appropriat e t echnologies for bot h adapt at ion and m it igat ion of GHGs at an acceler at ed pace; e) engineer ing new and innovat ive for m s of m ar ket , r egulat or y and v olunt ar y m echanism s t o pr om ot e sust ainable dev elopm ent ; f) effect ing im plem ent at ion of program m es t hrough civil societ y, local self- governm ent inst it ut ions and public- privat e part nership; g) ushering in int ernat ional cooperat ion for research and developm ent and t echnology t ransfer enabled by addit ional funding and a global I PR t hat facilit at es t r ansfer of t echnology t o dev eloping count r ies under UNFCCC. To aid t he pr ocess of m ainst r eam ing t he abov e obj ect iv es w it hin t he developm ent process t he NAPCC envisages eight following m issions: • N a t iona l Sola r M ission: To increase t he share of solar energy in t he energy m ix while recognizing t he need for developm ent of nuclear energy, wind energy and biom ass. • N a t ion a l M ission f or En h a n ce d En e r g y Ef f icie n cy: I t seek s t o pr om ot e en er gy efficiency t hr ough t he Bur eau of Ener gy Efficiency ( BEE) in t he cent r al gov er nm ent and designat ed agencies in each st at e. Pr ogr am m es and m easur es have been init iat ed w hich w ould r esult in an ant icipat ed ener gy sav ing t o t he t une of 10,000 MW by t he end of 2012. • N a t ion a l M ission on Su st a in a b le H a b it a t: To m ak e h abit at su st ain able t h r ou gh im provem ent s in energy efficiency in buildings, m anagem ent of solid wast e and m odal shift t o public t r anspor t . • N a t iona l W a t e r M ission: To ensur e int egr at ed w at er r esour ce m anagem ent helping t o conserve wat er, m inim ize wast age and ensure m ore equit able dist ribut ion across and w it hin st at es. • N a t i o n a l M i ssi o n f o r Su st a i n i n g H i m a l a y a n Eco sy st e m : Ev o l v e m a n a g em en t resources and m easures t o sust ain and conserve Him alayan glacial syst em s and m ount ain ecosy st em s. Am ong ot her s also t r y t o under st and and addr ess t he issue glacial r ecession in t he Him alayas. • N at ional M ission for Green I ndia : To enhance ecosyst em services including developm ent of car bon sink s lik e for est s w hich ar e indispensable for pr eser v at ion of ecological balance and biodiversit y. 123 BACKGROUNDNOTE • N a t iona l M ission for Sust a ina ble Agr icult ur e : To m ake I ndian agricult ure m ore resilient t o var iat ions in clim at e by ident ifying and developing new var iet ies of cr ops especially w hich w ould be t her m al r esist ant , alt er nat iv e cr opping pat t er n capable of w it hst anding ext rem e weat her condit ions like long dry spells, flooding and m oist ure variabilit y. • N a t ion a l M ission for St r a t e gic Kn ow le dge for Clim a t e Ch a n ge : To fost er int er nat ional cooper at ion in r esear ch and dev elopm ent and k now ledge dissem inat ion. To set up a St r at egic Know ledge Mission t o ident ify t he challenges and r esponses t o clim at e change. NAPCC w hile ent r ust ing im plem ent at ion r esponsibilit ies of t hese m issions on int er - sect or al m inist ries also underlines t he role of Planning Com m ission, indust ry, academ ia and civil societ y for it s t im e- bound im plem ent at ion. Prim e m inist er’s Council on Clim at e Change is expect ed t o coor dinat e and super v ise t he effect iv e im plem ent at ion of t he st at ed obj ect iv es set under v ar ious m issions. The t im e line for m ission accom plishm ent spans t he rem aining years of t he 11 t h Plan and t he w hole of t he 12 t h Plan period 2012- 13 t o 2016- 17. The eight m issions env isaged in t he NAPCC cov er s alm ost t he ent ir e gam ut of issues ex cept a clear ar t iculat ion on t he issues per t aining t o t he m anagem ent and conser v at ion of oceanic and coast al r esour ces. Clear cut policy guidelines per t aining t o financing of t hese m issions and t heir inst it ut ional ar chit ect ur e of ser vice deliver y or t he par am et er s of funct ioning of st at e gover nm ent s and local self gov er nm ent inst it ut ions ar e y et t o be m ade appar ent . Ther efor e it is t oo ear ly t o com m ent on t he viabilit y of t he policy com m it m ent s m ade in NAPCC, but it is evident t hat success of t hese program s would in large m easure depend on necessary Const it ut ional reform s and large governm ent invest m ent s in t he sect or. I I . Const it ut ional Fram ew ork for Environm ent al Prot ect ion in I ndia Th e I n dian Con st it u t ion is am on gst few in t h e Wor ld t h at con t ain s specific pr ov ision s on envir onm ent al pr ot ect ion. Aft er St ockholm Declar at ion ( 1972) , t he I ndian Const it ut ion ( For t ySecond Am endm ent ) Act , 1976 inser t ed for t he fir st t im e v er y specific pr ov isions t o pr ot ect & im prove t he environm ent . Also, som e generic const it ut ional provisions such as Art icle 47, 48A ( Direct ive Principle of St at e Policy) and 51A ( Fundam ent al Dut ies) & m ost im port ant ly Art icle 21 ( Fundam ent al Right s) hav e set const it ut ional obligat ions upon t he St at e t o pr ot ect and m anage environm ent . Art icle 47 exclusively provides for t he im provem ent of public healt h as one of t he pr im ar y dut ies of t he St at e; Ar t icle 48A fur t her say s “ The St at e shall Endeav our t o pr ot ect & im pr ove t he envir onm ent and t o safeguar d t he for est s and w ildlife of t he count r y.” ; Ar t icle 51A being Fundam ent al Dut ies of t he cit izen also st at es t hat , it is “ dut y of ev er y cit izen of I ndia t o prot ect & im prove t he nat ural environm ent including forest s, lakes, rivers and wildlife and t o have com passion for living creat ures.” Besides Direct ive Principle of St at e Policy, t he Fundam ent al Right s in Art icle 21 of t he I ndian Const it ut ion pr ovides t hat no per son shall be depr ived of his life or per sonal liber t y except accor ding t o pr ocedur e est ablished by law . I t is m uch ex t ended t han t he defined Right and Suprem e Court in various cases has included t he right t o clean wat er and pollut ion free environm ent as inalienable part s of Right t o Life and Personal Libert y and squarely put t he environm ent under t he “ Public Trust Doct rine” . 2 I n t he federal dist ribut ion of power, while environm ent is under residual power of t he Cent er, however forest , prot ect ion of wildlife and birds are included under concur r ent list leav ing t he st at e w it h v er y insignificant pow er in v ar ious facet s of env ir onm ent gover nance. The im plicit as w ell as explicit pr ovisions of Const it ut ion, how ever , ar e backed by num ber of par liam ent ar y act s, legislat ions and not ificat ions, int er nat ional conv ent ions and agr eem ent s. BACKGROUNDNOTE 124 I nst it ut ionally , t he Minist r y of Env ir onm ent and For est ( MOEF) is concer ned w it h planning, prom ot ing, coordinat ing and overseeing t he im plem ent at ion of environm ent al, wildlife, biodiversit y and for est r y policies and pr ogr am m es. I t also ser v es as t he nodal agency for int er nat ional cooperat ion in t he dom ain of environm ent , including t he subj ect of clim at e change. As environm ent pr ot ect ion and sust ainable developm ent r equir es cr oss- cut t ing gover nm ent al endeavour s, var ious m inist r ies/ depar t m ent s bot h at t he Cent r e and St at e lev el deal w it h ar ea specific env ir onm ent al issues and concer ns and t hus, com plem ent t he MOEF legal obligat ions and r esponsibilit ies t o fur t her t he cause. At t he im plem ent at ion level, Local Bodies such as Panchay at s and cit y councils also have a st ake in various schem es ( em powered under 73 rd and 74 t h Am endm ent Act ) such as Joint Forest ry Managem ent ( JFM) and Gram Van Yoj ana Schem e. Besides, v ar ious scient ific and t echnical inst it ut ions lik e Nat ional Env ir onm ent al Engineer ing Research I nst it ut e ( NEERI ) , Cent ral Pollut ion Cont rol Board ( CPCB) , St at e Pollut ion Cont rol Board ( SPCB) , Wildlife I nst it ut e of I ndia ( WI I ) , I ndian I nst it ut e of For est Managem ent ( I I FM) and expert s groups support environm ent adm inist rat ions at union and st at e levels. I I I . Budget ary Allocat ion in t he Sect or The program m e wise plan out lays and expendit ure of MOEF have been classified on som e specific sect ors such as Environm ent in general, Nat ional River Conservat ion Direct orat e, Forest ry and Wildlife, Nat ional Afforest at ion and Eco- developm ent al Board and Anim al Welfare. While t he 10 t h Plan out lay s for t he MOEF w as Rs.5945.00 cr or es, t he out lay of t he Minist r y for t he 11 t h Plan has been approved at Rs.10005.00 crores w hich is nearly 100% grow t h over t he last plan. The t ot al annual budget ar y ex pendit ur e for t he MOEF t hough has incr eased in absolut e num ber over t he year s, how ever , if one com par es t o t ot al budget ar y expendit ur e as w ell as it s shar e t o t he GDP ( Mar k et Pr ice) of sam e financial y ear s, bot h show s a t r end of st agnat ion or insignificant decline ov er t he last fiv e y ear s. The annual gr ow t h r at e of t he budget ar y allocat ion for t he MOEF show s a r at her fluct uat ing t r end w it h t he annual gr ow t h r at e incr easing t o 13% in 2007- 08; how ev er t he 2008- 09 allocat ion ent ails a decline in gr ow t h r at e t o 7.3% ov er last y ear. Ta ble 1 : Alloca t ion of M inist ry of Environm ent & Forest t o Tot a l Union Budget Ex pendit ure Ye a r M in ist r y of En v ir on m e n t & For e st Alloca t ion Pe r ce n t t o GD P ( M P) ( in pe r ce n t ) Pe r ce n t t o t ot a l Bu dge t a r y Ex p e n d it u r e An n u a l Gr ow t h Ra t e ( in Rs. Cr or e ) 2 0 0 3- 0 4 RE 1100.0 ---- 0. 23 0.04 2 0 0 4- 0 5 RE 1207.0 9.7 0. 24 0.04 2 0 0 5- 0 6 RE 1278.3 5.9 0. 25 0.04 2 0 0 6 - 0 7 RE 1406.2 10. 0 0. 24 0.03 2 0 0 7- 0 8 RE 1591.0 13. 1 0. 22 0.03 2 0 0 8- 0 9 BE 1707.0 7.3 0. 23 0.03 Sour ce: Budget at Glance and Expendit ur e Budget I I of var ious financial year s Like wise, while t he Plan expendit ure and Non- Plan expendit ure of MOEF budget has been increased in absolut e num ber, in percent wise it has been shown decline or rem ained const ant wit h regard t o t ot al budget ar y ex pendit ur e is concer ned. 125 BACKGROUNDNOTE Ch a r t 1 : Sh a r e of Pla n & N on - Pla n Ex pe n dit u r e in M OEF 1600 1400.00 1400 Rs.in Crores 1200 1500.00 1225.00 1050.00 1100.00 950.00 1000 800 600 400 200 150 157 178.30 181.21 191.00 207.00 0 2003-04RE 2004-05RE 2005-06RE 2006-07RE 2007-08RE 2008-09BE Plan Exp. Non-plan Exp. Source: Expendit ure Budget , Volum e I I ( various years) . The m inist r y r uns t w elv e Cent r al sect or schem e ( CS) and t en Cent r ally Sponsor ed Schem e ( CSS) . Som e of t he m aj or schem es under t he m inist ry are Assist ance for Abat em ent of Pollut ion, Nat ional Afforest at ion program m e, Nat ional Coast al Managem ent Program m e and Social forest ry Schem e . The pollut ion in all it s m anifest at ion such as air pollut ion, w at er pollut ion 3 , noise pollut ion, p ollu t ion of r iv er s an d lak e, solid w ast e m an ag em en t h as con t r ib u t ed n ot iceab ly in t h e environm ent al degradat ion. Union Budget allocat ion part icularly on prevent ion and cont rol of pollut ion in t he last four FY has declined significant ly com par ed t o t ot al allocat ion for MOEF. I n 2005- 06 RE, I t w as 45% w hich has com e dow n t o 32% of t ot al allocat ion of MOEF in 2008- 09 BE. While t he present plan expendit ure for pollut ion prevent ion and allocat ion head has declined in absolut e num ber com pared t o 2005- 06 RE, t he Non- plan expendit ure has increased m arginally. Assist a n ce for Aba t e m e n t of Pollu t ion : Assist ance for abat em ent of pollut ion, a Cent r al Sect or ( CS) schem e is t o m eet t he need t o st rengt hen t he various St at e Pollut ion Cont rol Boards ( SPCBs) and St at e Environm ent Depart m ent s for enforcing t he st at ut ory provisions for t aking up pollut ion abat em ent m easures. The purpose of funding is t o st r engt hen t he St at e Depar t m ent s of Env ir onm ent t hr ough addit ional t echnical m anpow er and St at e Pollut ion Cont r ol Boar ds t hr ough scient ific analyt ic equipm ent t hat ar e ex pensiv e and hence cannot be pr ocur ed on St at e Gov er nm ent ’s ow n funds. Funds t o t he St at e Boar ds ar e r eleased for equipm ent and specific st udies and pr oj ect s w hich w ould need t o be com plet ed w it hin a specific t im e fr am e t o m eet t he obj ect iv e of Policy St at em ent for abat em ent of pollut ion. How ever , in t he last t w o financial year s, t he com bined allocat ion for t he schem e is Rs. 9 cr or e w hich is quit e insignificant t o suppor t 15 St at e Pollut ion Cont r ol Boar d ( SPCB) t o m anage t heir affairs. N a t ion a l Coa st a l M a n a g e m e n t Pr og r a m m e : Wit h r egar d t o Plan schem e for t he pr ot ect ion and m anagem ent of coast al zone, t he Nat ional Coast Managem ent Pr ogr am m e ( NCMP) a Cent r al Sect or Plan, ( CS) since 1991 int ends t o focus on t he m apping of ecologically sensit ive ar eas, inst it ut ional st r engt hening and capacit y building including cont r ol of pollut ion in coast al w at er s ar e cov er ed under NCMP. The Union Budget allocat ed v er y m inuscule funds t o t his Cent r al Sect or ( CS) schem e in t he 10 t h plan. For t he last t w o financial years ( 2006- 07 & 2007- 08) , t he NCMP j ust got 20 lakhs per year w hich has been subst ant ially incr eased t o 1.37 cr or e in t he FY 2008- 09 Union Budget . Such a ver y insignificant allocat ion on NCMP can hardly fulfill t he vision of 11 t h Plan of par t icipat ion of civ il societ y and fishing/ coast al com m unit ies in t he conservat ion of ecologically and cult urally significant resources. BACKGROUNDNOTE 126 Cha r t 2 : Budge t a r y Out la ys on Pr e ve nt ion a nd Cont r ol of Pollut ion Budgetary Outlays on Prevention and Control of Pollution Rs. in Crores 450 400 340.39 350 403.04 394.14 354.66 374.45 382.50 324.30 300 250 200 150 100 78.71 83.92 85.14 86.12 93.86 95.17 2003-04 RE 2004-05 RE 2005-06 RE 2006-07 RE 2007-08 RE 2008-09 BE 50.38 50 0 2002-03 RE Plan Outlays Non-Plan Outlays Source: Expendit ure Budget Volum e I I of various financial years N a t ion a l Af f or e st a t ion Pr og r a m m e : The Nat ional Afforest at ion Program m e Schem e 4 , t he lar gest schem e of t he m inist r y suppor t s ex pansion for for est and t r ee cov er t hr ough For est Dev elopm ent Agency ( FDA) and Joint For est Managem ent Com m it t ee ( JFMC) . This is considered t o be im port ant w it h regard t o part icipat ory forest m anagem ent wit h local com m unit ies t hat ensures livelihood and right s and responsibilit ies of t r ibal as w ell as for est inm at es t ow ar ds for est m anagem ent and pr ot ect ion. The Joint For est Managem ent ( JFM) is being im plem ent ed wit h 1, 06, 479 such com m it t ees ( wit h 22 m illion part icipant s) are funct ioning in 28 st at es covering 22.02 m illion ha of forest s. I n 2007- 08, t he budget ary allocat ion w as Rs. 322.57 crores and prom ised t o creat e 800 Forest Developm ent Agency ( FDA) and 3000 new JFMCs t o t he ex ist ing JFMCs, how ev er t he achiev em ent s r at e has been far fr om sat isfact or y as a t ot al of 343 FDA and 550 JFMCs hav e been for m ed under t he sam e financial y ear . The phy sical per for m ance of NAP seem s unsat isfact or y as per St at e of For est Repor t 2005, t he count r y has 20.60% for est of t he t ot al geogr aphical ar ea of t he count r y , a figur e w hich is far below t hat t ar get ed obj ect iv es of 33% for est cov er of t he count r y . The case for social for est r y w hich is a Panchay at subj ect under 73 and 74t h Const it ut ional Am endm ent Act , has been failed t o be im plem ent ed due t o sheer neglect of Cent r al as w ell as various st at e governm ent . I n t he FY 2006- 07 and 2007- 08, t he Gram Van Yoj ana, an im port ant schem e for social for est r y , j ust got m er e Rs. 20 lak h w hich has been subst ant ially incr eased t o Rs. 100 cr or es in FY 2008- 09. Though, t he case for social for est r y has been neglect ed since 8t h Plan, sudden m anifold increase of budget ary allocat ion t hough a w elcom e init iat ive m ay fail t o m eet it s desir ed obj ect iv es w it hout absor pt iv e capacit y . I V. Concluding Rem ark s This backgr ound not e at t em pt s a r eview of t he issues involving clim at e change bot h nat ionally and int ernat ionally, ident ifying som e m aj or challenges t hat need t o be overcom e t hrough proact ive governm ent int ervent ion. The Governm ent claim s t hat t he public invest m ent on m it igat ion and adapt at ion m easur es on clim at e change t hr ough v ar ious pr ogr am m es and schem es r unning acr oss v ar ious m inist r ies ex ceeds 2.6% of GDP. This is t r ue t o t he ex t ent t hat t her e ex ist quit e a few cent r ally sponsor ed schem es and cent r al sect or schem es w hich ar e oper at ing t o pr om ot e su st ain able liv elih ood am on g t h e poor an d dow n t r odden an d t o cr eat e in f r ast r u ct u r e f or augm ent at ion of agricult ural product ivit y and general qualit y of life. However, m ost of t hese w hich has been oper at ing for m any y ear s lack a clear focus on t he issues per t aining t o clim at e change or env ir onm ent al pr ot ect ion, t her efor e t o be com placent on t hese schem es achiev ing t he desir ed obj ect ives w ould be quit e im pr udent . Schem es specifically gear ed t ow ar ds alleviat ing dr ought or flood condit ions and w ast eland dev elopm ent need t o be under t ak en w it h ur gency 127 BACKGROUNDNOTE and im plem ent ed w it h t he help of local governm ent inst it ut ions. Resource allocat ion in t his sect or should done carefully aft er proper est im at ion of resource gap in t his sect or. The Governm ent so far aft er int roducing t he Nat ional Act ion Plan on Clim at e Change has not elucidat ed on financing of public expendit ure on Clim at e Change. Environm ent al qualit y has long been recognized as a public good, t he provision of w hich is inalienable t o not ion of good life. Therefore provision of t his public good is t he sole r esponsibilit y of t he gov er nm ent , at t he cent r al, st at e and local lev el. How ever , t he t ier of gover nance at w hich t his public ser vice should be pr ovided w ould definit ely depend on t he nat ur e of ser vice pr ovided. For exam ple, pollut ion of r iver w at er should be a Cent ral subj ect given it s int er- j urisdict ional nat ure, but groundwat er m anagem ent or m anagem ent of coast al r esour ces m ay be done at t he St at e lev el w it h help of t he Cent r e. Ther e is consider able overlap in j urisdict ion in t he provision of environm ent al services and t hese should be adequat ely addressed given t he em erging global realit ies and for t he sake of t ransparency and account abilit y. A separ at e budget st at em ent clear ly out lining t he allocat ion and expendit ur e on envir onm ent al ser vices and m easur es t aken for adapt at ion needs m ay be explor ed. Given t he r elat ive new ness of t he pr esent issues involved and t he developing nat ur e of t he econom y placing I ndia m ost ly at t he r eceiv ing end of clim at e change concer ns, t her e is a need for heav y gov er nm ent inv est m ent in educat ion and aw ar eness on clim at e change t o for ge a nat ional consensus. ( Endnot e s) 1 Th er e ar e f ou r g ases an d t w o m aj or g r ou p s of g ases w h ich con st it u t e Gr een Hou se Gases an d ar e im por t an t for m it igat ion . Car bon Diox ide ( CO 2) accou n t s f or 5 0 % of t h e ov er all w ar m in g ef f ect s ar isin g fr om hum an act iv it ies; Met hane ( CH4) account s for 18% ; Nit rous Oxide ( N 2O) 6% and Sulphur Hex afluor ide ( SF6) account s for r est . Besides t hese, t w o m aj or gr oups of gases —Hy dr ofluor ocar bon and Per fluor ocar bon — ar e also r espon sible f or global w ar m in g. 2 Su p r em e Cou r t in M.C Meht a v Kam al Nat h ( 1977) 1 SCC 388 case h as en u n ciat ed t h e “ Pu b lic Tr u st Doct r ine” under Ar t icle 2 1 . The idea under t his t heor y w as t hat cer t ain com m on pr oper t ies such as r iv er s, seash or es, for est s, an d air w er e h eld by t h e Gov er n m en t in t r u st eesh ip for t h e fr ee an d u n im peded u se of t he gener al public. The r esour ces lik e t he air , sea, w at er s and t he for est s hav e such a gr eat im por t ance t o t he people as a w hole, t hat it w ould be t ot ally unj ust ified t o m ak e t hem a subj ect of pr iv at e ow ner ship. SC in t he sam e case concluded t hat any dist ur bance of t he basic env ir onm ent elem ent s nam ely air , w at er and soil w h ich ar e n ecessar y f or “ lif e” w ou ld b e h azar d ou s t o “ lif e” w it h in t h e m ean in g of ar t icle 2 1 of t h e Con st it u t ion . Fu r t h er m or e, again st ch em ical an d h azar dou s in du st r ies, SC in t h e case of Vellore Cit izens Welfare Forum v. Union of I ndia AI R 1996 dir ect ed t h e High Cou r t t o set u p a Gr een Ben ch . Again , SC def in ed t h e Righ t t o Pollu t ion f r ee air w it h in Ar t icle 2 1 in Su bh ash v. St at e of Bihar AI R 1991. See P.M Bak sh i, ( 2 0 0 5 ) , Th e Con st it u t ion of I n dia, New Delh i: Un iv er sal Law Pu blish in g Co. Pv t Lt d. Pg 4 8 - 4 9 3 Th e w at er pollu t ion in I n dia com es f r om t h r ee m ain sou r ces: dom est ic sew age, in du st r ial ef f lu en t s an d r un off fr om act iv it ies such as agr icult ur e. The t ot al sew age gener at ion in t he count r y is about 33, 000 MLD ( m illion lit er s per day ) . Again st t h is, t h e t ot al av er age t r eat m en t capacit y is on ly 6 1 9 0 MLD an d 4 0 % of t h at capacit y is in Delh i. How ev er , t h e ir on y is t h at Yu m an a con sider ed bein g m or e pollu t ed r iv er in I n dia. Besides, in Gan ga, Kr ishna, Sabar m at i, Tapi, Sut lej , t he Biochem ical Ox y gen St andar ds is as low t o be t o t he bat hing st andar d. Th e Wat er ( Pr ev en t ion an d Con t r ol of Pollu t ion ) Act , 1 9 7 4 r eg u lat es w at er q u alit y t h r ou g h t h e St at e p ollu t ion Con t r ol Boar d ( PCBs) . Th e CPCB, u n d er t h e MOEF h as est ab lish ed a n at ion w id e n et w or k f or w at er qu alit y m on it or in g com pr isin g 1 0 1 9 st at ion s in 2 7 St at es an d 6 UTs. Th e m on it or in g is don e on m on t h ly or q u ar t er ly b asis f or su r f ace w at er an d on h alf y ear ly b asis f or g r ou n d w at er . Th e m on it or in g net w or k cov er s 2 0 0 r iv er s, 6 0 lak hs, 5 t ank s, 3 ponds, 3 cr eek s, 1 3 canals, 1 7 dr ains and 3 2 1 w ells. Wat er sam ples ar e analy zed for 28 par am et er s including phy sical par am et er s, nut r ient s, m aj or ions, or ganic and bact er iological par am et er s. Out of t he v ar ious par am et er s m onit or ed, Biochem ical Ox y gen Dem and ( BOD) and Coli for m s ar e cr it ical. Sour ce: 1 1 t h Fiv e Year Plan Docum ent , Env ir onm ent and Clim at e Change, Vol1 , Plan n in g Com m ission , pg2 3 . 4 Th e ov er all ob j ect iv e of t h e sch em e is t o d ev elop t h e f or est r esou r ces w it h p eop le’s p ar t icip at ion , w it h focus on im pr ov em ent in liv elihoods of t he for est - fr inge com m unit ies, especially t he poor . NAP Schem e aim s t o su p p or t an d acceler at e t h e on g oin g p r ocess of d ev olv in g f or est p r ot ect ion , m an ag em en t an d dev elopm ent funct ions t o decent r alized inst it ut ions of Joint For est Managem ent Com m it t ee ( JFMC) at t he v illage lev el, an d For est Dev elopm en t Agen cy ( FDA) at t h e for est div ision lev el. BACKGROUNDNOTE 128 ACRONYMS AABY - Aam Aadm i Bim a Yoj ana AAY - Ant y oday a Anna Yoj ana AI BP - Accelerat ed I rrigat ion Benefit Program m e AI DS - Acquired I m m une Deficiency Syndrom e AI I MS AI TUC - All I ndia I nst it ut e of Medical Sciences - All I ndia Trade Union Congress APL - Abov e Pov er t y Line APMC - Agricult ure Produce Market ing Com m it t ee ARWSP - Accelerat ed Rural Wat er Supply Program m e ASSOCHAM BE - Associat ed Cham bers of Com m erce and I ndust ry of I ndia - Budget Est im at e BEE - Bur eau of Ener gy Efficiency BPL - Below Pover t y line BRGF - Backward Regions Grant Fund BSUP CAP - Basic Ser v ices t o Ur ban Poor - Com pr ehensive Act ion Plan CBGA - Cent r e for Budget and Gov er nance Account abilit y CDS - Cur r ent Daily St at us CHC - Com m unit y Healt h Cent re CI I CPCB - Confederat ion of I ndian I ndust ries - Cent ral Pollut ion Cont rol Board CS - Cent r al Sect or schem es CSOs - Civil Societ y Or ganisat ions CSS - Cent rally Sponsored Schem es CVD CW S - Count er vailing Dut y - Cur r ent Week ly St at us DDP - Desert Developm ent Program m e Dep t . - Depart m ent DoNER - Developm ent of Nort h East ern Region DPAP DPCs - Drought Prone Area Program m e - Dist rict Planning Com m it t ees FCI - Food Corporat ion of I ndia FDA - For est Dev elopm ent Agency FDI - For eign Dir ect I nvest m ent FI CCI FI I s - Federat ion of I ndian Cham bers of Com m erce and I ndust ry - For eign I nst it ut ional I nvest or s FM - Finance Minist er FRBM - Fiscal Responsibilit y and Budget Managem ent ( Act ) GD P - Gr oss Dom est ic Pr oduct GH G GOI - Greenhouse Gases - Governm ent of I ndia HI V - Hum an I m m unodeficiency Virus I AY - I ndira Aw aas Yoj ana I CDS - I nt egrat ed Child Developm ent Schem e I CPS - I nt egr at ed Child Pr ot ect ion Schem e 129 BACKGROUNDNOTE I EEMA - I ndian Elect r ical and Elect r onics Manufact ur er s’ Associat ion I FPRI - I nt er nat ional Food Policy and Resear ch I nst it ut e I HSDP - I nt egrat ed Housing and Slum Developm ent I I FM - I ndian I nst it ut e of For est Managem ent I MR I NTUC - I nfant Mor t alit y Rat e - I ndian Nat ional Trade Union Congress I PCC - I nt er- Governm ent al Panel on Clim at e Change I WDP - I nt egrat ed Wast eland Developm ent Program m e JFM - Joint For est Managem ent JNNURM KGBV - Jawaharlal Nehru Nat ional Urban Renewal Mission - Kast urba Gandhi Balika Vidyalaya LDC - Least Dev eloped Count r ies LDP - Language Developm ent Program m es MDM - Mid- day Meal ( Schem e) MH MHRD - Million Hect ar es - Minist ry of Hum an Resource Developm ent MI S - Market I nt ervent ion Schem e MMR - Mat er nal Mor t alit y Rat e MOEF - Minist ry of Environm ent and Forest MRP NABARD - Mixed Recall Period - Nat ional Bank for Agricult ural and Rural Developm ent NAFED - Nat ional Agr icult ur e Cooper at ive Mar ket ing Feder at ion NAI S - Nat ional Agricult ural I nsurance Schem e NAP - Nat ional Afforest at ion Program m e NAPCC NCMP - Nat ional Act ion Plan on Clim at e Change - National Com m on Minim um Program m e NCMP - Nat ional Coast al Managem ent Program m e N EN - Nor t h East Net w or k N ER - Nort h East ern Region NEERI NFWP - Nat ional Environm ent al Engineering Research I nst it ut e - Nat ional Food for Work Program m e NREGA - Nat ional Rural Em ploym ent Guarant ee Act NREGS - Nat ional Rural Em ploym ent Guarant ee Schem e NRHM - Nat ional Rural Healt h Mission NSS NSSO - Nat ional Sam ple Survey - Nat ional Sam ple Survey Organisat ion MDM - Mid Day Meal MSJE - Minist ry of Social Just ice and Em pow erm ent PDS - Public Dist r ibut ion Sy st em PMGSY PMSM - Pradhan Mant ri Gram Sadak Yoj ana - Pr e- Mat r ic Scholar ship for t he Minor it ies PPP - Public Pr iv at e Par t ner ship PPS - Procurem ent Support Schem e PS K - Pram bhik Siksha Kosh BACKGROUNDNOTE 130 RBI - Reserve Bank of I ndia RCH - Repr oduct ive and Child Healt h RE - Rev ised Est im at e RGDWM - Raj iv Gandhi Drinking Wat er Mission RI DF RSVY - Rural I nfrast ruct ure Developm ent Fund - Rasht riya Sam Vikas Yoj ana RGGVY - Raj iv Gandhi Gram een Vidyut ikaran Yoj ana SBI - St at e Bank of I ndia SCARDBs - St at e Cooperat ive Agricult ure Rural Developm ent Banks SCP for SCs SCs - Special Com ponent Plan for SCs - Scheduled Cast es SCSP - Scheduled Cast e Sub Plan SGRY - Sam poorna Gram in Rozgar Yoj ana SGSY - Swaranj ayant i Gram Swarozgar Yoj ana SHGs SJSRY - Self Help Groups - Swarna Jayant i Shahari Rozgar Yoj ana SLNA - St at e Lev el Nodal Agen cy SPCB - St at e Pollut ion Cont rol Board SSA - Sarva Siksha Abhiyan STs SUCCESS - Scheduled Tr ibes - Schem e for Univ er sal Access and Qualit y at t he Secondar y St age TB - Tuberculosis TLE - Teaching Learning Equipm ent TSC - Tot al Sanit at ion Cam paign TSP UEE - Tribal Sub Plan - Universalisat ion of Elem ent ary Educat ion UI DSSMT - Urban I nfrast ruct ure Developm ent for Sm all and Medium Town UI G - Ur ban I nfr ast r uct ur e and Gov er nance ULB - Urban Local Bodies UNDP UNFCCC - Unit ed Nat ions Developm ent Program m e - Unit ed Nat ions Fram ework Convent ion on Clim at e Change UPA - Unit ed Pr ogr essiv e Alliance URP - Uniform Recall Period UT - Union Territ ory UWEP VAMBAY - Urban Wage Em ploym ent Program m e - Valm iki Am bedkar Awas Yoj ana VAT - Value Added t ax VPTs - Village Public Telephones WHO - World Healt h Organisat ion WI I - Wildlife I nst it ut e of I ndia 131 BACKGROUNDNOTE GLOSSARY OF KEY BUD GETARY TERM S 1 . Re v e n u e Re ce ipt s Rev enue r eceipt s com pr ise pr oceeds of t ot al t ax and non- t ax r ev enues of t he gov er nm ent . Wit h t his r eceipt t her e is no change in asset - liabilit y posit ion of t he gover nm ent i.e. it neit her decr eases t he asset of t he governm ent nor increases it s liabilit y. The m ain Revenue receipt s of t he governm ent ar e t ax r ev enues, such as, incom e t ax , cor por at e t ax , cust om s and ex cise dut ies, and non- t ax r ev enues, such as, int er est and div idend on inv est m ent s m ade by gov er nm ent , fees and ot her r eceipt s for ser vices r ender ed t o t he public and pr ivat e by t he gover nm ent . I n 2008- 09 Union Budget , t ot al r evenue r eceipt s of t he Cent r al Gover nm ent is pr oj ect ed t o be Rs. 6,02,935 Cr or e. 1 .a . Ta x Re ve n u e Revenue from t axes const it ut es t he m aj or revenue receipt of t he governm ent . I n 2008- 09 Union Budget , t ot al t ax r evenue r eceipt s of t he Cent r al Gover nm ent is pr oj ect ed t o be Rs. 5,07,150 Crore. Direct Ta x es ar e t he t ax es of w hich t he t ax - bur den cannot be shift ed. That m eans t he bur den of t he par t icular t ax r est s on t he sam e per son w ho dir ect ly pays it t o t he gover nm ent e.g. incom e t ax , ex pendit ur e t ax , cor por at e incom e t ax , pr oper t y t ax et c. Dir ect t ax es ar e dir ect ly r elat ed t o a per son’s abilit y t o pay and consider ed t he best w ay t o r educe inequalit y of w ealt h and incom e in t he societ y . I ndirect Tax es ar e t he t ax es for w hich t he t ax - bur den can be shift ed. Those w ho init ially pay indir ect t ax es t o gov er nm ent can ult im at ely shift t he t ax - bur den t o ot her per sons w ho consum e t he ser v ices or goods lat er , e.g. cust om s dut y , ex cise dut y and sales t ax, et c. Hence, indir ect t axes ar e consider ed a huge bur den on t he com m on people – even t he poor est of t he poor hav e t o pay t his t ax w hen t hey buy or av ail ser v ices ir r espect iv e of t heir incom e capacit y . 1 .b. N on - Ta x Re v e n u e Non- t ax r ev enue com pr ises r ev enue r eceipt s of t he gov er nm ent ot her t han t ax es and dut ies. Non- t ax revenue m ainly consist s of int erest s receipt s and dividends on invest m ent s m ade by gov er nm ent , fees ( st am p fee, et c.) and ot her r eceipt s for t he ser v ice r ender ed by gov er nm ent t o public as w ell as t o pr iv at e e. g. fiscal ser v ices, econom ic ser v ices, defence ser v ices, et c. Tot al non- t ax r evenue r eceipt s of t he Cent r al Gover nm ent dur ing 2008- 09 is pr oj ect ed t o be Rs. 95,785 Crore. 2 . Ca pit a l Re ce ipt s Capit al Receipt s of t he gov er nm ent ar e alw ay s accom panied by a r educt ion in t he asset s or incr ease in t he liabilit y of t he gov er nm ent . Capit al Receipt s t hat ar e usually accom panied by a r educt ion in it s asset s ar e r ecov er ies of loans giv en by t he gov er nm ent in t he past , pr oceeds from disinvest m ent , et c. Capit al receipt s t hrough loans t aken by t he governm ent , from dom est ic or for eign sour ces, lead t o an incr ease in it s liabilit ies. Tot al Capit al Receipt s of t he Cent r al Governm ent for t he year 2008- 09 is proj ect ed t o be Rs. 1,47,949 Crore. 3 . Re ve n u e Ex pe n dit u r e Rev enue Ex pendit ur e usually does not hav e any im pact on cr eat ion of asset s or r educt ion of liabilit ies. I t is u su ally in cu r r ed f or t h e n or m al r u n n in g of gov er n m en t an d t o m eet t h e adm inist r at iv e ex pendit ur es of t he gov er nm ent ( e.g. salar ies, pension et c.) , int er est char ges on debt incur r ed by gov er nm ent , subsidies, et c. The gr ant s giv en t o St at e gov er nm ent s and ot her part ies are also t reat ed as revenue expendit ure by t he Cent ral governm ent , even t hough som e of t he gr ant s m ay be used subsequent ly for cr eat ion of asset s. Tot al Rev enue Ex pendit ur e by t he Cent ral Governm ent is est im at ed at Rs. 6,58,119 Crore in Union Budget 2008- 09. 4 . Ca pit a l Ex pe n dit u r e Capit al expendit ure refers t o t he governm ent expendit ure incurred w it h t he purpose of eit her incr easing asset s or r educing liabilit ies. I t is, how ev er , not essent ial t hat t he asset s cr eat ed should be pr oduct iv e in char act er or t hat t hey should ev en be r ev enue gener at ing. Aft er it has been decided t o incur expendit ure for t he creat ion of a new or addit ional asset , Capit al Expendit ure bear s all char ges for t he fir st const r uct ion of t he pr oj ect , w hile Rev enue Ex pendit ur e bear s all subsequent charges for m aint enance and all w orking expenses. Tot al Capit al Expendit ure by t he Cent ral Governm ent is est im at ed at Rs. 92,765 Crore in Union Budget 2008- 09. 5 . Pla n Ex pe n dit u r e BACKGROUNDNOTE 132 I n I ndia, Plan Expendit ur e cover s a par t of t he t ot al expendit ur e, w hich is m eant for financing t he schem es and program m es especially fram ed under t he given Plan ( t he Five Year Plan) or t he unfinished t asks of t he previous Plans. Once a program m e or schem e pursued under a specific Plan com plet es it s dur at ion, t he m aint enance cost and fut ur e r unning ex pendit ur es on t he asset s cr eat ed or st aff r ecr uit ed ar e not r egar ded as Plan Expendit ur e. The plan expendit ur e is fur t her divided int o t wo cat egories, Plan Revenue Expendit ure and Plan Capit al Expendit ure. Tot al Plan Expendit ure by t he Cent ral Governm ent is est im at ed at Rs. 2,43,386 Crore in Union Budget 2008- 09. 6 . N on - Pla n Ex pe n dit u r e Any expendit ure of t he governm ent t hat does not fall under t he Plan Expendit ure is Non- Plan Expendit ure. Non- Plan Expendit ure is t he expenses required for t he m aint enance and running cost s ( u su ally t h e adm in ist r at iv e ov er - h eads) of t h e com plet ed sch em es or pr ogr am m es under t aken in var ious plans. Since t he m aint enance and adm inist r at ive expenses incr ease over t he period of t im e, t he Non- Plan Expendit ure of t he governm ent are usually m uch higher t han t he Plan Expendit ure. Like in Plan Expendit ure, Non- Plan expendit ure is also divided int o t wo cat egories, Non- Plan Revenue Expendit ure and Non- Plan Capit al Expendit ure. Tot al Non- Plan Expendit ure in t he Cent ral Governm ent is est im at ed at Rs. 5,07,498 Crore in Union Budget 2008- 09. 7 . D e ficit & D e bt The excess of expendit ure over incom e or excess of liabilit ies over asset s is know n as ‘Deficit ’. I n sim ple t erm s, Deficit m eans short age [ Deficit = Expendit ure – I ncom e] . Thus, deficit refers t o a gap, and Debt cov er s t hat gap. The gov er nm ent usually r aises Debt t o m ak e inv est m ent s under var ious social and econom ic over heads like r ailw ays, r oads, br idges, educat ion, healt h et c. Such enhanced public ex pendit ur e could not be m et ot her w ise fr om t he cur r ent r ev enues of t he governm ent . I nt ernal Debt is refers t o Debt raised wit hin t he count ry from financial inst it ut ions and ot her bodies const it ut ed in I ndia. Ext ernal Debt refers t o Debt raised from foreign sources like, foreign nat ions, foreign banks and ot her foreign bodies. The t ot al of bot h int ernal and ext ernal debt is known as ‘Public Debt ’. Tot al Public Debt of I ndia is est im at ed at Rs. 18,84,985.73 Crore ( of which, Rs. 18,65,775.8 Crore is from int ernal sources and Rs. 19,209.93 Crore is from ext ernal sources) in t he Union Budget 2008- 09. 7 .a . Re ve n u e D e ficit The excess of revenue expendit ure over t he revenue receipt s is referred as ‘Revenue Deficit ’. Rev enue deficit basically m eans dis- sav ings on gov er nm ent account and use t he sav ings of ot her sect ors of t he econom y t o finance t he consum pt ion expendit ure of t he governm ent [ Revenue Deficit = Revenue expendit ure – Revenue receipt s] . Revenue Deficit of t he Cent ral Governm ent is est im at ed at Rs. 55,184 Crore ( about 1.5 per cent of t he proj ect ed GDP) in Union Budget 2008- 09. 7 .b. Fisca l D e ficit Fiscal Deficit is t he differ ence bet w een t he gov er nm ent ’s t ot al ex pendit ur e and it s t ot al r eceipt s excluding bor r ow ing ( or differ ence bet w een gover nm ent ’s t ot al expendit ur e and it s t ot al nondebt cr eat ing r eceipt s) in a given per iod of t im e. So, Fiscal Deficit is alm ost equal t o t he am ount of bor r ow ing by t he gov er nm ent bot h fr om int er nal and ex t er nal sour ces including int er est pay m en t s [ Fiscal Def icit = Tot al Ex pen dit u r e ( Tot al Rev en u e Ex pen dit u r e + Tot al Capit al Ex pendit ur e) – ( Rev enue Receipt s + Recov er ies of Loans + Ot her Capit al Receipt s) ] . Fiscal Deficit of t he Cent r al Gover nm ent is est im at ed at Rs. 1,33,287 Cr or e ( about 3.3 per cent of t he proj ect ed GDP) in Union Budget 2008- 09. 7 .c. Pr im a r y D e ficit Pr im ar y Deficit is t he differ ence bet w een Fiscal Deficit and I nt er est Pay m ent s [ Prim ary Deficit = Fiscal Deficit – I nt erest Paym ent s] . 8 . Pla n Sch e m e s Ther e ar e t hr ee differ ent kinds of Plan Schem es, w hich ar e im plem ent ed in any St at e, viz. St at e Plan Schem es, Cent r al Sect or Schem es and Cent r ally Sponsor ed Schem es. 133 BACKGROUNDNOTE St a t e Pla n Sch e m e s – The funds for St at e Plan Schem es ar e pr ov ided only by t he St at e Governm ent , wit h no ‘direct cont ribut ion’ from t he Cent re. However, t he Cent re m ay provide, at t he recom m endat ion of Planning Com m ission, som e assist ance t o t he St at e Governm ent for it s St at e Plan schem es, w hich is k now n as ‘Cent r al Assist ance for St at e & UT Plans’. Unlike Cent re’s gr ant s t o a St at e under cent r al schem es, t he ‘Cent r al Assist ance for St at e & UT Plans’ can n ot be t ied t o any condit ionalit ies of t he cent r al gover nm ent m inist r ies. Ce n t r a l Se ct or Sch e m e s ( also know n as Cent ral Plan Schem es) – The ent ire am ount of funds for a Cent ral Sect or Schem e/ Cent ral Plan Schem e is provided by t he Cent ral Governm ent from t he Union Budget . The St at e Governm ent im plem ent s t he Schem e, but it does not provide any funds for such a Schem e fr om it s St at e Budget . Ce n t r a lly Sp on sor e d Sch e m e s – I n case of a Cen t r ally Spon sor ed Sch em e, t h e Cen t r al Governm ent provides a part of t he funds and t he St at e Governm ent provides a m at ching grant for t he Schem e. The r at io of cont r ibut ions by t he Cent r e and a St at e is pr e- decided t hr ough negot iat ions bet w een t he t w o. 9 . Bu dge t Est im a t e s ( BE) a n d Re v ise d Est im a t e s ( RE) Let ’s consider a new Budget being pr esent ed in Par liam ent . The est im at es pr esent ed in t his Budget for t he appr oaching fiscal y ear w ould be called Bu dge t Est im a t e s ( BE) . The est im at es pr esent ed in t his Budget for t he cur r ent / ongoing fiscal year based on t he disbur sem ent s in t he fir st t w o t o t hr ee Quar t er s of t he fiscal y ear w ould be called as Re vise d Est im a t e s ( RE) . However, t he figures ( of receipt s and expendit ure) for t he previous fiscal year would be referred t o as Act u a ls or Accou n t s. BACKGROUNDNOTE 134 135 BACKGROUNDNOTE

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