THE CONTEXT: The Union Budget has faced significant criticism for its reduced allocations to crucial welfare schemes, raising concerns about the government’s commitment to supporting marginalized populations. With critical programs like MGNREGA and NFSA seeing declining shares of GDP, the need for increased investment in social welfare is more pressing than ever.
THE ISSUES:
- Declining Welfare Allocations: The budget allocations for key welfare schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Food Security Act (NFSA) have decreased as a share of GDP since 2014-15, except during the COVID-19 pandemic. For instance, the NFSA’s expenditure fell from 0.72% of GDP last year to 0.63% this year, and MGNREGA’s allocation dropped from 0.29% to 0.26% of GDP.
- Neglect of Vulnerable Groups: The National Social Assistance Programme, which supports widows, the elderly, and disabled individuals, saw no increase in its nominal budget allocation. Its share of GDP has halved from 0.06% in 2014-15 to 0.03% now, despite the unchanged pension amounts since 2006.
- Child Malnutrition and Welfare: The Saksham Anganwadi and Poshan 2.0 scheme, which aims to combat child malnutrition, has seen its budget halved as a share of GDP since 2014-15. The mid-day meal program, which benefits 12 crore children, also experienced a 50% reduction in GDP share.
- Reduced Education Spending: Central expenditure on primary and secondary education has decreased from 0.37% of GDP in 2014-15 to 0.22% this year, raising concerns about education quality and infrastructure.
- Health Sector: Although the health budget allocation increased slightly from 0.25% of GDP in 2014-15 to 0.28% this year, it is still insufficient given the high out-of-pocket health expenses that push many into poverty.
- Impact of Tax Cuts on Fiscal Space: The government’s decision to cut corporate tax rates in 2019 has resulted in a significant loss of tax revenue, estimated at over ₹8 lakh crore. This reduction in fiscal space appears to have led to decreased funding for welfare schemes, affecting the poor and vulnerable.
- Overall Decline in Social Sector Spending: The total allocation for welfare schemes has decreased from 2.1% of GDP in 2014-15 to 1.53%. This reduction is significant compared to the 4.31% during the COVID-19 pandemic year 2020-21, highlighting the critical nature of these schemes.
THE WAY FORWARD:
- Increase Welfare Allocations with Strategic Planning: A potential increase of ₹75,000 crore in welfare allocations could significantly boost employment guarantee programs and rural development schemes like PM Awas Yojana and PM Gram Sadak Yojana. The government can enhance welfare spending by strategically planning and reallocating funds without drastically affecting the fiscal deficit.
- Prioritize Nutrition and Health for Women and Children: The National Family Health Survey highlights the critical need for improved nutrition among women and children. 64% of children are exclusively breastfed, and only 11% receive a minimum adequate diet. Increasing allocations for nutrition-sensitive programs like PM-POSHAN and addressing anemia through targeted interventions could significantly improve health outcomes.
- Leverage Public-Private Partnerships for Education and Infrastructure: To address declining education spending, public-private partnerships can be leveraged to improve infrastructure and quality. This approach has been successful in other sectors and could help bridge the gap in educational resources. In collaboration with the government, Akshaya Patra Foundation provides mid-day meals to millions of children, improving educational outcomes.
- Enhance Social Security and Pension Schemes: The Bhattacharya Committee report emphasizes the need for robust social security schemes, particularly for the elderly and vulnerable groups. Implementing the Employees’ Provident Fund Scheme and Employment State Insurance Corporation in India, which provides social security and retirement benefits, showcases the importance of well-funded social security programs.
- Focus on Sustainable Agricultural Practices: Increasing investment in sustainable agriculture can address food security issues and support rural economies. The budget’s focus on “Productivity and resilience in agriculture,” with a 4.6% increase in allocation, is a step in the right direction. Encouraging sustainable practices can enhance food security and reduce malnutrition.
- Adopt a Mixed Economy of Welfare: A balanced approach involving state and voluntary sector participation can enhance welfare delivery. The collaboration between the government and NGOs in implementing the Swachh Bharat Abhiyan has led to significant improvements in sanitation. The successful implementation of the National Rural Health Mission, which involves both government and non-governmental organizations, highlights the benefits of a mixed economy approach in healthcare delivery.
THE CONCLUSION:
To address the growing disparities and ensure a dignified life for all citizens, the government must prioritize increased funding for welfare schemes and reevaluate its fiscal policies. By doing so, India can work towards a more equitable society and improve its standing on the Human Development Index.
UPSC PAST YEAR QUESTIONS:
Q.1 Development and welfare schemes for the vulnerable, by their nature, are discriminatory in approach. Do you agree? Give reasons for your answer. 2023
Q.2 Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyze. 2021
Q.3 “The incidence and intensity of poverty are more important in determining poverty based on income alone”. In this context, analyze the latest United Nations Multidimensional Poverty Index Report. 2020
Q.4 There is a growing divergence in the relationship between poverty and hunger in India. The shrinking of social expenditure by the government is forcing the poor to spend more on non-food essential items, squeezing their food – budget. Elucidate. 2019
Q.5 Does the Rights of Persons with Disabilities Act, 2016, ensure an effective mechanism for empowering and including the intended beneficiaries in society? Discuss 2017
MAINS PRACTICE QUESTION:
Q.1 Examine the challenges faced by vulnerable groups such as widows, the elderly, and disabled individuals in India. Suggest measures to enhance the effectiveness of the National Social Assistance Program.
SOURCE:
https://www.thehindu.com/opinion/lead/an-obstinate-refusal-to-focus-on-welfare/article68529784.ece
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