GS Paper 2
Syllabus: Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources
Source: TH
Direction: The article highlights the implications of reduced allocations for the social sector program in the Union Budget 2023-24.
Context: The Union Budget 2023-24 reiterates the strategic vision of the government in which both economic recovery and job creation rest on increased capital expenditure (capex) while welfare segment has taken a toll.
The Budget announcements:
Increase in capex and its implications:
- A capex of ₹10 lakh crore, a 33% increase over last year.
- The budget estimate (BE) for effective capex is now is 4.5% of the GDP, up from 3.9% last year.
- Government remains on its ‘path of fiscal consolidation,’ with the fiscal deficit for FY24 projected to be 5.9% of the GDP (6.4% for the current year).
- The Finance Minister reiterated the commitment to reach a fiscal deficit below 4.5% by 2025-26.
- Critic: essential schemes that provide a safety net and contribute to better human development outcomes have been underfunded.
Decreased allocations for social sector programs:
- For subsidy: The BE for food subsidy is ₹1.97 lakh crore compared to the revised estimate (RE) of ₹2.8 lakh crore for 2022-23 (withdrawal of Pradhan Mantri Garib Kalyan Anna Yojana)
- For MGNREGS also seen a massive budget cut (BE for 2023-24 is ₹60,000 crore compared to the RE of ₹89,400 crore for 2022-23).
- For programmes that provide nutritional support for women and children:
- For Saksham Anganwadi, which includes anganwadi services, Poshan Abhiyan and a scheme for adolescent girls, allocation remains almost the same at ₹20,554 crore.
- The school meals scheme, rechristened PM-POSHAN, has seen a slight decline.
- Samarthya, the maternity entitlements scheme, has been allocated ₹2,582 crore compared to the previous year’s allocation of ₹2,622 crore (BE).
- For other initiatives:
- The allocations for old age, widow and disabled pensions under the National Social Assistance Programme have remained stagnant (around ₹9,600 crore).
- The important areas in the social sector – education and health – have not seen any substantial increase.
Implications of these decreased allocations:
| Negative | Positive (As per the Accountability Initiative report) |
| ● Less allocations on MGNREGA/food subsidy/pensions can hinder demand revival.
● The existing benefits under the NFSA does not compensate for the reduced quantity of grains with the withdrawal of the PMGKAY. ● Affects human development outcomes – reduces productivity, employment opportunities. |
● The budgets for anganwadi services and mid-day meals are over 30% less than in 2011.
○ However, this is due to the decline in the number of beneficiaries. ○ This means, the per beneficiary allocations have not changed for years. ● Funds can be diverted to capex, which contributes to job creation, especially for wage workers. |
Way ahead:
- To achieve the spending goals set by the national policies on education (6% of GDP) and health (2.5% of GDP), the allocations need to be doubled.
- The removal of barriers to the timely and appropriate implementation of social sector programs is necessary, along with an increase in budgetary support.
- For example, the app-based attendance monitoring system to ensure timely and error-free payments under MGNREGS.
Conclusion:
- It must be acknowledged that spending on these various social sector efforts significantly contributes to both economic recovery and long-term improvements in people’s lives.
- India cannot achieve the vision for Amrit Kaal without ensuring access to quality and affordable education, health, nutrition and social security.
Mains Links:
In order to enhance the prospects of social development, sound and adequate healthcare policies are needed particularly in the fields of geriatric and maternal health care. Discuss. (UPSC 2020)
