http://www.indiaspend.com/cover-story/how-a-pro-poor-budget-downplays-programmes-that-fund-the-poor-30541

How A ‘Pro-Poor’ Budget Downplays Programmes That Fund The Poor

Avani Kapur, February 2, 2018

Budget speeches are all about messaging. While we all speculated on what
the budget will hold for the social sector, many of us, got it wrong.



This year’s budget speech did not focus on investments in the government’s
flagship schemes of sanitation or housing. Gone too was the focus on skills
and employment generation.



The budget, finance minister Arun Jaitley noted, would focus on
“strengthening agriculture and rural economy, provision of good health care
to economically less privileged, taking care of senior citizens,
infrastructure creation and… improving the quality of education in the
country”.



A look at the numbers for social sector programmes, however, suggests that
the messaging and numbers don’t add up.



Less money for rural development



The budget speech found no mention of allocations for flagship schemes like
the Pradhan Mantri Awas Yojana (Prime Minister’s Housing Programme, PMAY)
and the Swachh Bharat Mission (Clean India Programme) except to reiterate
the targets that had been set or achieved.



In fact, allocations for the rural arms of both schemes have declined  9%
compared to the previous year’s revised estimates .



Decline In Allocations For Rural Sanitation & Housing
Scheme 2017-18 Budget Estimates 2017-18 Revised Estimates 2018-19 Budget
Estimates % Change between 2017-18 RE and 2018-19 BE
Swachh Bharat Mission-Gramin 13,948 16,948 15,343 -9%
Swachh Bharat Mission-Urban 2,300 2,300 2,500 9%
Pradhan Mantri Awas Yojana- Gramin 23,000 23,000 21,000 -9%
Pradhan Mantri Awas Yojana – Urban 6,043 6,043 6,505 8%
Source: Union Budget; Figures in Rs crore



The government’s strategy on rural employment generation is also unclear.
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS),
the largest scheme of the ministry of rural development, had the
highest-ever allocation but found no mention in the budget speech.



While the allocation increased 15% from Rs 48,000 crore to Rs. 55,000 crore
compared to budget estimates, it is at par with the revised estimate for
2017-18.



Given backlogs in pending payments and increasing compensation due, this
increase may still not be enough and the government’s stand on MGNREGS
remains unclear.



Allocations For Mahatma Gandhi National Rural Employment Guarantee Scheme
Year 2016-17 Actuals 2017-18 BE 2017-18 RE 2018-19 BE % increase between
2017-18 RE and 2018-19 BE % increase between 2017-18 BE and 2018-19 BE
Allocation 48,214.95 48,000 55,000 55,000 0% 15%
Source: Union Budget; Figures in Rs crore



Tech to drive quality education but schools don’t even have electricity



The big bang push on improving quality education would be through digital
technology and infrastructure, Jaitley said in his speech.  “Technology
will be the biggest driver in improving the quality of education,” the
finance minister said.



“We propose to increase the digital intensity in education and move
gradually from ‘‘blackboard’’ to ‘‘digital board’.,



Now, here are the facts: only 57% of all elementary schools had access to
electricity and only 26% had computers, according to 2015 data from
District Information System for Education (DISE). This is despite the fact
that Rs 50 lakh per district has been allocated under the Sarva Shiksha
Abhiyan (SSA), for computer aided learning.



Anyone who has visited a remote school would know  – when schools don’t
even have buildings, digital blackboards are of least concern.



The situation in secondary schools is no better. In 2015-16, only 40% of
secondary schools had computer and internet and 31% had Information and
Communication Technology (ICT) labs, according to  data from Secondary
Education Management Information System (SEMIS) .



While school infrastructure continues to be weak, here’s a positive: with
248,209 teachers yet to enrol in teacher training, as per official data up
to July 2017, the government’s announcement of initiating integrated B.Ed
programme for teachers and focusing on teacher training are welcome steps.



Limited provision for maternal and child health and nutrition



The allocation for reproductive and child health within the National Health
Mission (NHM) has been reduced 30%, according to budget  data.



In 2017, the government had announced a number of policies and strategies
for improving India’s performance on maternal and child health.



In May 2017, the maternity benefit programme, now renamed Pradhan Mantri
Matru Vandana Yojana was extended across the country. The scheme provides
compensation for wage loss through cash incentives of Rs 5,000 to mothers
for delivery of the first child.



About 60 economists had written to the finance minister in December 2017,
pointing out that Rs  2,700 crore allocated to the scheme was a third of
the requirement under the National Food Security Act (NFSA), 2013, which
entitles all pregnant women and lactating mothers, and not just mothers of
first-borns,  to at least Rs 6,000..



This year’s allocation, in fact, has declined by 7%.



The neglect of the Integrated Child Development Services (ICDS) is also
surprising. Especially, given that in September 2017, the government
announced an increase in unit costs for the Supplementary Nutrition
Programme (SNP) under ICDS that will require higher resources.  The
allocation for ICDS, however, show only a nominal 7% increase from Rs
15,245 crore to Rs  16,335 crore.



With the expenditure on SNP already high in many states compared to the
approved budgets, it is unclear how these additional unit costs will be
financed.



Health insurance needs clarity



The National Health Protection Scheme (NHPS), cited as the world’s largest
government-funded healthcare programme, got a boost. From an annual
coverage of Rs  30,000 per family coverage under the Rashtriya Swasthya
Bima Yojana (National Health Insurance Programme, RSBY), launched by the
government in 2008, the scheme will now cover 100 million poor and
vulnerable families with a coverage of up to Rs 500,000 per family.



Allocations For Rashtriya Swasthya Bima Yojana/National Health Protection
Scheme
Year Actual 2016-2017 Budget 2017-2018 Revised 2017-2018 Budget 2018-2019 %
change between RE 2017-18 and BE 2018-19 % change between BE 2017-18 and BE
2018-19
Allocation 465.6 1000 470.52 2000 325% 100%
Source: India Budget; Figures in Rs crore



With more and more patients, even in poorer states, opting for private
facilities, a strong health insurance policy may be the only mechanism to
ensure universal health coverage.



Past experience on the performance of RSBY suggest that increasing
allocations will not suffice.



The RSBY has not been able to reduce out of pocket expenditure (OOPE),
IndiaSpend reported on October 17, 2017.



Only 11% households were enrolled under RSBY, and almost half of these
belonged to non-poor, according to a recent study by Soumitra Ghosh and
Nabanita Datta Gupta covering 37,343 households in 18 states.



Attention will thus need to be paid on ensuring effective targeting,
increasing awareness and regulation, if the scheme is to have an impact on
improving health coverage.





Source: National Family Health Survey, 2015-16 (NFHS-4); Figures in
percentage



These increases also seem to have come at the cost of basic primary health
care.



The National Health Policy (NHP) 2017 vision of bringing healthcare closer
to people by providing comprehensive care – including maternal and child
health – while getting a mention in the speech did not see corresponding
allocations.



In fact, allocation for the National Health Mission (NHM) has declined 2%,
FactChecker reported on February 1, 2018.  The allocation for the National
Rural Health Mission within NHM declined even further by 5%.



If the aim of India’s health policy is to reduce out of pocket expenditure,
focus on preventive healthcare, strengthening referrals and a strong
primary healthcare system are essential.



(Kapur is Fellow at the Centre for Policy Research and Director of the
Accountability Initiative. With inputs from Ritwik Shukla, Research
Associate, Accountability Initiative)



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