Budget for Children in Andhra Pradesh 2004-05 to 2008-09

BUDGET FOR
CHILDREN
Centre
for
Child
Rights
HAQ: Centre for Child Rights
B 1/2, Malviya Nagar, Ground Floor, New Delhi - 110017, India
T: +91-11-26677412/3599 | F: +91-11-26674688
E: info@haqcrc.org | W: www.haqcrc.org
M. Venkatarangaiya Foundation
201, Narayan Apartment, West Marredpally,
Secunderabad – 500 026, India
T: 91-40-2780 1320, 2770 0290, 2771 0150
F: 91-40-2780 8808, 2770 1656
E: mvfindia@gmail.com | W: www.mvfindia.in Prepared by HAQ: Centre for Child Rights, New Delhi, in partnership with M. Venkatarangaiya Foundation, Secunderabad
2004-05 to 2008-09in Andhra Pradesh
HAQ: Centre for Child Rights is a ten-year old New Delhi-based civil society organisation
that works towards the recognition, promotion and protection of rights of all children.
It aims at contributing to the building of an environment where every child’s rights
are recognised and promoted without discrimination and in an integrated manner.
HAQ believes that child rights and children’s concerns have to be mainstreamed into
all developmental planning and action and must also become a core development
indicator.
To carry forward this mandate, HAQ undertakes research and documentation and is
actively engaged in public education and advocacy. In India, HAQ pioneered the Budget
for Children analysis in 2001. Over the years, it has developed skills for quick and incisive
scanning of law and policy documents and commenting on them. It works with existing
networks, builds alliances and partnerships with other actors/stakeholders such as the
bureaucrats, parliamentarians, judges and lawyers, police and media.
HAQ seeks to serve as a resource and support base for individuals and groups dealing
with children at every level. It not only provides information and referral services but
also undertakes training and capacity building for all those working with children or on
issues concerning them, and for the children themselves.
HAQ works on children and governance, violence and abuse of children, child trafficking
and juvenile justice. It provides legal support to children in need, particularly those who
are victims of abuse and exploitation or are in conflict with the law.
Publications | Kandhamal’s Forgotten Children: A Status Report. | India’s Childhood in
the “Pits”: A Report on the Impacts of Mining on Children in India | Blind Alley: Juvenile
Justice in India (2009) | Still out of focus: Status of India’s children (2008) | Handbook on
Children’s right to adequate housing | Combating Child Trafficking (A User’s Handbook)
| Budget for Children (set of four publications on child budget analysis) for India,
Andhra Pradesh, Himachal Pradesh and Orissa (2007) | Child Protection: A handbook for
Panchayat Members (English and Hindi) | Status of Children in India Inc. 2005 | Says a
Child...Who Speaks for my Rights? ( A series of books analysing parliamentary questions
and debates from 2003 to 2008 in English and Hindi) | My God is a Juvenile Delinquent
(Not a HAQ publication but is available in HAQ) | Stop Child Trafficking: A handbook for
Parliamentarians | Children in Globalising India: Challenging our Conscience (2003)
| Children bought and sold: We can stop it! (Hindi and English)(2003) | Children and
Right to Adequate housing: A guide to international legal resources (2002) | India`s
Children and the Union Budget (2001)

A SHRINKING PIE
CHILDREN’S SHARE IN THE ANDHRA PRADESH BUDGET
An Analysis from a Child Rights Perspective
2004-05 to 2008-09
A study by
In Partnership With:

Printed and Published in 2009
© M. Venkatarangaiya Foundation, Secunderabad And HAQ: Centre for Child Rights
Reproduction of any part of this publication for educational or other non-commercial
purposes is authorised only with prior permission from
201, Narayan Apartment, West Marredpally,
Secunderabad – 500 026, India
Phone: 91-40-2780 1320, 2770 0290, 2771 0150
Fax: 91-40-2780 8808, 2770 1656
Email: mvfindia@gmail.com
Website: www.mvfindia.in
or
B 1/2, Malviya Nagar, Ground Floor
New Delhi-110017, India
Phone: 91-11-26677412/3599
Fax: 91-11-26674688
Email: info@haqcrc.org
Website: www.haqcrc.org
978-81-906548-5-2
Credits
Research Team
At HAQ | Paromita Shastri
Madhumita Purkayastha
Indarilin Dkhar
At M V Foundation | Dolon Bhattacharya
Photo Credit | Cover Gunnar Geir Petursson
Inside M V Foundation
Design and Typesetting | Aspire Design, New Delhi
Supported by | The Ford Foundation

i
A budget is an estimate of the resources that will be available during a specified financial year to be spent on a set of
projects that give shape to the nation/state’s long-term development plan. Through an annual budget, which breaks
down into several sectoral and departmental budgets, the Government allocates money to achieve various social and
economic goals such as education, health care, water and power supply, building roads, dams, etc. Thus the budget is the
most important economic policy statement in any country, more so in a welfare state like India that still has miles to go in
achieving a decent human development record.
Since the size of the allocation of funds determines, at first glance, the level of priority accorded to a programme, a
budget is also the best reflection of how seriously the government takes its policies and their implementation. As a result,
tracking the allocations in the annual financial statement, right from the printed numbers in the budget document to
the expenditures detailed in the demands for grants, becomes an indispensable tool in monitoring if the government is
keeping the promises made to the citizens. Children are bona fide citizens with full human rights but since they lack the
all-important vote, they are neglected even in national budgets that are full of programmes that ostensibly benefit children.
It is to make the government walk its talk about children that in 2002, HAQ: Centre for Child Rights, a civil society
organisation based in New Delhi, embarked on a decadal analysis (1990-91 to 1999-2000) of the Union Budget from
a child rights perspective. This unique endeavour was followed up by the M V Foundation (MVF), which started child
budget analysis work in Andhra Pradesh in 2003 in partnership with HAQ and has continued since then. The first time-
series budget analysis of this partnership was published in 2007 as “Budget for Children in Andhra Pradesh for 2001-02 to
2005-06”. This was followed the next year by “Children and the State Budget for the period 2004-05 to 2007-08”.
The present report, part of the second phase of the partnership with HAQ, extends the analysis by one more year to offer
a five-year review of state budgets from the perspective of child rights from 2004-05 to 2008-09. We seek to make the
analysis more exhaustive by including the latest actual expenditure figures that are usually available with a two-year lag. The
objective, as before, is to evaluate the budget provisions made by the Government of Andhra Pradesh towards ensuring the
Foreword

ii
rights of children in the areas of survival, protection and development and examine how far the financial commitments
have fallen short of fulfilling these rights. This time, we have also undertaken a special ear-to-the ground financial tracking
analysis of the government’s flagship Sarva Shiksha Abhiyan or Education for All programme, to evaluate how far it has
succeeded in achieving its broad objectives, contained in the second part of this report.
This project would not have come about without the support of The Ford Foundation. The report has been largely written
by Dolon Bhattacharya of MVF and edited at HAQ by Paromita Shastri, with assistance from Madhumita Purakayashtha
and Indarilin Dkhar. HAQ takes full responsibility for all facts and figures. Reader reactions, including about any
inadvertent mistakes, will be appreciated.
In disseminating the budget analysis, our purpose is to engage diverse stakeholders at the state and local levels, as well as all
those involved in the process of preparing budgets in generating a wide discussion and debate. We hope it will serve as an
effective tool for all child rights activists and organisations and help in holding governments accountable for the changing
allocation and expenditure patterns in child-focused programmes. Write in to us at info@haqcrc.org
Enakshi Ganguly Thukral & Bharti Ali Dr. M. Krishnamurthi
HAQ: Centre for Child Rights M Venkatarangaiya Foundation
New Delhi Secunderabad

iii
SECTION I
Children’s Potential Untapped by Callous State 1
Methodology & Overview of the BfC Analysis 7
Education Suffers Despite Maximum Allocation 19
Child Development Suffers from Poor Allocation, Spending 33
Health Increasingly Neglected in State Budget 41
Little Protection for AP’s Children 48
End Note 57
Annexure 59
SECTION II
Tracking SSA Implementation in Andhra Pradesh 69
Annexure 105
List of Abbreviations and Acronyms 108
Contents

v
Section I
Budget for Children

1
Andhra Pradesh is the largest state in India’s southern peninsula, fourth largest in the country, with 23 districts. Its
population as per the 2001 census stands at 76.21 million, or 7.42 per cent of India’s total population, with a rural share
of 70 per cent, or 55.40 million. The crude birth rate per 1000 people was 22.9 in 2001, declining from 26.0 in 1991,
while the literacy rate went up sharply to 60.47 from 44.1. The literacy rate among males is 70.32 per cent, and among
females, a much lower 50.43.
Andhra Pradesh is regarded as one of the most progressive states of the country. The finance minister mentioned in
his budget speech in 2008-09 that the State has achieved high growth rate as a result of faster growth in all the three
sectors of agriculture, industry and services, with the information technology (IT) sector acting as the engine. Not-
withstanding this, the state continues to have the largest number of child labourers as well as sexually abused children
among other states. Our children still suffer from poor nutrition and inadequate health services, sanitation and basic
education facilities.
Children s Potential
Untapped by Callous State

2
Apart from the National and International commitments which are applicable to all states, the AP government has made
certain commitments to achieving a better life for its children.
Why Budget Analysis?
The future and strength of a state lies in a healthy, protected,
educated and well-developed child population that will grow
up to be productive citizens. Therefore it is the state’s respon-
sibility to look into the welfare of these children. This can
be done only through special policies and programmes that
are designed to cater to the unique needs of children. Also,
resources have to be allocated to the children in proportion to
their total number in the annual budget, to socio-economic
programmes that directly impact their well-being.
Though budgets impact everyone, certain groups such as the
elderly, children, the poor, the disabled, rural residents and
minorities, are often particularly vulnerable to the decisions
governments take in relation to raising resources and spending
them. In a wide range of countries around the world, pro-poor
groups have discovered that developing the capacity to analyse,
understand, and influence the budget can be a powerful tool
LiƩle improvement in situaƟon of Children in Andhra Pradesh
Andhra Pradesh has 31 million children below 18 years who consƟtute 41 per cent of the state’s populaƟon.
Out of the 1.8 crore children between 5 and 14 years, as many as 1.36 million work. According to Census 2001,
AP’s child workers are 7.7 per cent of India’s child labour force.
Infant mortality rate is at 53 per 1000 live births in the state. According to NaƟonal Family Health Survey–III,
conducted in 2005-06, 64 out of every 1000 newborn children in rural AP die before they get to celebrate their
first birthday.
MalnutriƟon and low-weight prevalence is acute. Some 7.3 per cent of all babies born weighed less than 2.5 kg.
Of every 100 school children less than 3 years old, 37 are underweight and 54 suffer from malnutriƟon. Some
35 per cent of children under 5 are moderately to severely undernourished.
Childhood anaemia increased from 72.3 per cent during NFHS-II, conducted in 1998-99, to 79 per cent during
NFHS-III.
HIV/AIDS prevalence in antenatal clinics was reported at 2 per cent in 2005 as against 1.25 per cent in 2002.
AP is the only southern State that is as bad as the northern States in child marriage, with one in 40 persons
married below the legal age. Some 54.7 per cent of the married women surveyed by NFHS -III were wed before
they turned 18.
AP has one of the highest cases of women and child sexual exploitaƟon. As reported by Crime in India,
2006, NaƟonal Crime Records Bureau (NCRB), Union Ministry of Home Affairs, with 7.3 per cent of all crimes
commiƩed against children in India, Andhra Pradesh ranked fiŌh among states.
Regressive tradiƟonal pracƟces impacƟng children, such as the Devadasi system whereby adolescent girls are
dedicated to the gods, are sƟll observed in some villages.
Why Budget Analysis?
Analysing Government budget is important
as it reflects a government’s true social and
economic policy prioriƟes. “At the beginning of
each year, budget is the most important docu-
ment as the resources have to be raised to the
extent indicated therein and these are to be
applied for the desired purposes indicated in
the budget. When, however, the financial year
is over, the accounts reflect the actual imple-
mentaƟon of the financial planning for the
relevant year shown in the budget… the
accounts figures speak for themselves, much
more than verbose explanaƟons…..”
S.P. Ganguly, Central Government Budgets in India: An Analysis, Con-
cept Publishing House, 1993. page 3

3
Goals/ Targets Set by the Andhra Pradesh Government
Andhra Pradesh Vision 2020
EducaƟon :
• Achieve Universal Primary EducaƟon.
• Eliminate Gender Disparity in Primary and Secondary EducaƟon.
• Universal enrolment and compleƟon of primary educaƟon by all children in the age group of 6-11 years.
• FacilitaƟng the re-entry of dropouts into schools at levels appropriate to their ages by Back to School Programme specially to
the girls and children belong to disadvantageous group such as SC, ST, Backward classes and minoriƟes drop-outs in order to
improve retenƟon rate.
• Development of specific programmes to promote educaƟon for girls.
• Ensure access of safe drinking water and proper toilet faciliƟes in all educaƟonal insƟtuƟons.
Health :
• To reduce Infant Mortality Rate to 10 per 1,000 live births by 2020
• To reduce Child Mortality Rate to 20 per 1000 by 2020
• To achieve Life Expectancy of 68.1 years for men and 70.6 years for women by 2020.
• Reduce by two-third the Under-five Mortality Rate and by three-quarters in the Maternal Mortality RaƟo.
• Achieving 100 percent usage of Oral RehydraƟon Therapy to prevent death among infants under 5 years of age from diar-
rhoeal dehydraƟon
• ReducƟon of death due to Acute Respiratory InfecƟon under 5 years of age and
• ReducƟon of vaccine preventable diseases through Universal ImmunisaƟon Programme.
• Universal consumpƟon of Iodised salt, eliminaƟon of vitamin A deficiency, reducƟon in iron deficiency among pregnant
women, adolescent girls and children below 5 years of age.
Early Childhood Care & Development :
• Expansion of Early Childhood Care and EducaƟon(ECCE) scheme implemented through the Anganwadi centres to cover all
children under the age of six by increasing number of these centres, providing pracƟcal training to anganwadi workers and
providing play material, picture books, posters etc.
• ReducƟon of Infant Mortality Rate and Child Mortality Rate to 10 and 20 per 1000 (live births) by 2020
• Increasing Life Expectancy at Birth to 68.1 years for men and 70.6 years for Women by 2020.
• Achieving 100 percent usage of Oral RehydraƟon Therapy to prevent death among infants under 5 years of age from diar-
rhoeal dehydraƟon
• ReducƟon of death due to Acute Respiratory InfecƟon under 5 years of age and ReducƟon of vaccine preventable diseases
through Universal ImmunisaƟon Programme.
• Universal consumpƟon of Iodised salt, eliminaƟon of vitamin A deficiency, reducƟon in iron deficiency among pregnant
women, adolescent girls and children below 5 years of age
for advancing their agenda of change. This applied budget work can include the national budget, the budgets of states or
provinces, and even budgets of local communities. Too often, budgets provide few useful summary tables that can be easily
grasped by the casual reader, so the non-technical readers are daunted by the idea of researching on the budget. However,
using the four basic tools of arithmetic—adding, subtracting, multiplying and dividing—human rights advocates can tell
a story about the budget and the use of public resources, translating the dry data of a budget into a compelling case for
improved and expanded programmes for the poor and other vulnerable people.
The UNCRC recommends that the State party shall –
Make every effort to increase the proporƟon of the budget allocated to the realisaƟon of children’s rights to
the “maximum extent … of available resources” and, in this context, to ensure the provision, including through
internaƟonal cooperaƟon, of appropriate human resources and to guarantee that the implementaƟon of policies
relaƟng to social services provided to children remain a priority…”

4
It is important to acknowledge at the outset that children are a special group and deserve special attention. Not only are
they more vulnerable than adults to every kind of exploitation and abuse but they also have no political influence (no vot-
ing rights) and economic power. Since they lack a significant lobby, children’s voices are not even heard and they go practi-
cally unrepresented in the agendas of political parties during elections. Fulfilling child rights must be the prime priority of
the Government in any nation. Child rights budget work, in its different forms, has been used in various countries as a way
for civil society and other stakeholders to hold governments accountable for their use of resources to deliver benefits to
children and progress towards the realisation of child rights.1
India ratified the United Nations’ Convention on the Rights of the Child in 1992 and thus promised to place Children’s
Rights at the forefront of development. The Union government also drew up the “National Plan of Action for Children”
in that year. In 2003, the Government of Andhra Pradesh came out with ‘Andhra Pradesh: Vision 2020’, a vision statement
to build a political consensus on a broad development strategy, which encompassed, inter alia, the roles and responsibili-
ties of different agents in the economy, such as the government, the private corporate sector, the small and tiny sector,
people’s organisations, etc.
Drawing up plans implies that all legal or programmatic commitments made in such plans must be matched by financial
commitments. Thus, in simple terms, budget analysis work means an assessment of plans to see if actual commitments
are falling short of budgeted goals. In India, for instance, investing of resources to the ‘maximum extent possible’ still
remains to be achieved. Inadequacy of resources allocated, vis-à-vis the needs of the children, is visible in all child-
specific sectors.
BfC Analysis: Past, Present and Future
In 2000, realising that financial commitments to children have to be understood in the light of the status of performance
on child development indicators and envisaged programmatic outcomes, HAQ: Centre for Child Rights, a Delhi-based
civil society organisation embarked on analysing the Union Budget, for the first time in India, from a child rights perspec-
tive. Based on HAQ’s methodology, the Ministry of Women and Child Development began regular child budget analysis
as an important mandate, which was reflected in the Annual Report of the Department of Women and Child Develop-
ment of 2002-03 and subsequently of 2004-05.
Sustained advocacy and lobbying with the Government of India has successfully led to institutionalisation of child budget-
ing in this decade. As recognition has grown of an urgent need for a holistic understanding of financial commitments of
the Government to the children, child rights budget work is being increasingly taken up in various states. Partnering with
Delhi-based HAQ: Centre for Child Rights, the pioneer in child budgeting in India with their first Budget for Children
(BfC) analysis in 2001 with a decadal analysis (1990-2000), M V Foundation started its work on budget in 2003. Its first
1 Streak, J. (2002) The fourth children’s budget book: Budgeting for child socio-economic rights, Budget Brief Number 86, Children’s Budget Unit, Institute for
Democracy in South Africa (IDASA), South Africa.
“For every one of our people to beneﬁt from new employment opportuniƟes being created across the economy, we
must ensure that every Indian is educated and skilled. No naƟon can progress unless its people are educated. We
have shown our Government’s commitment in this regard by tripling public spending on educaƟon in the last three
years. I request states also to give priority to educaƟon, as educaƟon alone is the foundaƟon on which a progressive,
prosperous society can be built. Growing revenue earnings have improved the ﬁscal capacity of the States. They must
now give priority to educaƟon…”
Manmohan Singh, Prime Minister, in his address to the naƟon on India’s 60th Independence Day

5
analysis, published in 2007, pertained to allocation and expenditure in child-specific areas in the AP budget for the period
of 2001-02 to 2005-06, while the second covered the period of 2004-05 to 2007-08.
The Centre for Budget and Governance Accountability (CBGA) has also carried out child budget analysis in states such as
Uttar Pradesh, Rajasthan and Madhya Pradesh. Concerned Citizens for Health and Development, in partnership with the
Institute for Development Studies, Jaipur, is undertaking child budget work in Rajasthan. ICCW, Tamil Nadu analysed
the state budgets of 1998-2004 from a child rights perspective in 2006. UNICEF carried out an analysis for the Ministry
of Women and Child Development, through the CBGA.
Using BfC Analysis for Policy Change
To prevent the analysis and monitoring of BfC from turning into yet another numerical exercise, it is crucial to use this
information to advocate for the improvement of policy, budgeting and expenditure decisions to enhance children’s access
to quality basic services and thus safeguard their rights. Therefore, rather than simply “crunching the numbers” in the
budget, more important is to use them for policy analysis and even field information and relate them to the way in which
the money is allocated.
Being a grassroots organisation and having a wide reach up
to the local bodies throughout the state, M V Foundation
was able to use the budget analysis in order to advocate
at the panchayat level for improvement in allocation and
expenditure decisions.
Its budget publications have been translated into lo-
cal languages and pamphlets/ handouts containing a
summary of the analysis are used to campaign. Training
programmes on how to use budget information are used
to educate volunteers along with panchayat-level officials
enabling them to better grasp the modalities and bargain
more effectively with the block and district officials. There have been debates on children’s budget at the Zilla Parishad
Standing Committee.
Signature campaigns have been organised in six districts
of the state, involving about 30,000 participants who in-
cluded elected representatives, students’ union leaders and
political leaders. Charters containing demand for increas-
ing budget allocation to children’s issues to 20-30 per
cent of the total state budget, forming separate ministry
for children for full utilisation of allocated funds, etc. are
translated in the local language and used as the basis of
advocacy at district and block levels.
Sharing informaƟon on BfC analysis with the gram
sabha helps to build pressure on the sarpanch, who in
turn, is able to use the informaƟon to negoƟate with
Block and District Oﬃcials for beƩer grants. Now, the
oﬃcials get worried when they see our Child ProtecƟon
CommiƩee members because they know that they can
no longer be fooled. The panchayat members carry
the BfC informaƟon in their pocket when they go for
discussions:
M V FoundaƟon’s experience in using BfC analysis

7
“Our Government is ﬁrmly commiƩed to inclusive growth, which means higher welfare and beƩer quality of
life. Welfare means providing two square meals a day for those who are starving, shelter to a person who is
homeless, employment to those who are in penury. Welfare means providing congenial atmosphere for basic
educaƟon to every child and providing essenƟal medical faciliƟes to a common man to lead a healthy life...
In consonance with the 11th Five Year Plan prioriƟes, EducaƟon and Health are being given substanƟal hike in
allocaƟon…”
Extract from Budget Speech 2008-09 by K Rosaiah, Minister for Finance, Government. of Andhra Pradesh
The BfC study is an attempt to analyse the financial priorities of the state government of Andhra Pradesh with respect to
its declared commitments for the children. It seeks to analyse and understand the extent to which promises made by the
government have been translated into policies and programmes that protect children’s rights, mainly through an analysis of
the state budget and other government review documents. Andhra Pradesh has 31 million persons below 18 years of age,
which means, children make up almost 41 per cent of the total population of the state. Of them, 10.2 million are in the age
group of 0-6 years, needing special care and protection.
Methodology & Overview
of the BfC Analysis

8
Methodology of the Study
Who is a child?
In keeping with the definition of the child under the UN Convention on Rights for Children (CRC) and the Juvenile
Justice Act (Care and Protection of Children) Act, 2000, we have analysed budget provisions for children up to the age of
18 years. Indian legislation also makes 18 years the general age of majority in India. 2
Timeframe of the study
The study reviews the budget figures for five consecutive financial years, 2004-05 to 2008-09. These include the budget
estimates, revised estimates and actual expenditure. However, actual expenditure has been taken into account only for
the first three years, from 2004-05 to 2006-07. There are two reasons for this. First, actual estimates are available with a
two-year lag. Secondly, due to the General and state elections, only a vote-on-account budget was announced in February
2009, leaving the full budget to be presented by the new government. Only the full budget for 2009-10 would have had
the actual expenditure figures for 2007-08.
Rationale of the analysis
The CRC defines the four basic rights of a child as the rights to Survival, Development, Protection and Participation.
This study focuses on these four sectors specific to children – development, health, education and protection-- which are
directly linked to the first three CRC rights
Development With special focus on Early Childhood Care and Development, it includes those schemes which don’t fit
in other sectors but are meant for overall development of children.
Health This sector includes programmes and schemes related to the health care needs of children. Some schemes
such as ‘Medical Termination of Pregnancy (MTP)’, ‘Sukhibhava’ etc, which aim at correcting maternal
mortality rate (MMR) do not benefit children directly but have been still taken under health sector as
they positively impact the infant mortality rates (IMR).
Education Here, we have included elementary and secondary education from the School Education Department.
Some schemes from the Higher Education Department and Technical Education Department are incor-
porated under secondary education because these target children up to the age of 18 years. Educational
schemes/programmes run by departments other than the Education Department are also included here.
Protection This sector contains programmes and schemes aimed at specially disadvantaged groups of children,
including child labour, adoption, trafficked children, children who are physically or mentally challenged,
street children and children in conflict with law.
ObjecƟves
The goal of the study is to undertake a critical assessment and analysis of the state budget provisions in accordance with the
needs of the children and from the perspective of their rights to education, health, development and protection.
2 Ministry for Women and Child Development, Definition of the Child, http://wcd.nic.in/crcpdf/CRC-2.PDF, uploaded: 10 August 2009.

9
The objectives of the study are:
To critically analyse if the allocations for programmes and schemes of child welfare are able to meet the needs of
children. That is, matching needs with allocation
To examine the trends in allocation and expenditure and thereby the implications for children’s programmes and
schemes. In other words, to evaluate allocation vs spending and see if they are increasing or decreasing and if they
are gaining or losing priority.
To assess the utilisation of funds allocated for the child welfare programmes and thus evaluate utilisation versus al-
location to see if children are getting their just share of the state’s resources, that is, needs vs spending.
Budget EsƟmates, Revised EsƟmates and Actual Expenditure
In the Indian budgeting process, Budget Estimate, Revised Estimate and Actual Expenditure are key phases in the process
of resource generation, allocation and spending. Since the BfC analysis involves government spending, we are concerned
here with only expenditure figures, both plan and non-plan, and not the revenues.
While the main budget is prepared by the finance ministry, it is a sum total of various budgets and demands from all the
ministries as well as representation from various lobbies, including the private corporate sector. The final Budget Estimates
(BE) are prepared by the finance ministry on the basis of numbers sent in by each department under each ministry, which
does its own assessment of the requirements for the ensuing year basing it on the actual numbers of the previous years,
the trend of budget estimates and utilisation, and the revised numbers for the immediate past year. The finance ministry
usually has the last word on the final budget estimates after discussion with all departments and ministries and after taking
into account the revenues expected in a year. The Budget Estimates define the money the government is able or willing to
commit in a particular year under various heads of expenditure. For the purpose of our study, we look at the budget esti-
mates in relation to the various ministries and departments that implement programmes for children.
The Revised Estimates (RE) take into account any change in budget estimates for the year, such as additional or lowered
allocations following any new or change in policy/programme/scheme. It is the most up-to-date version of the budget esti-
mate of a fiscal year (April-March) at the time of preparing the next year’s budget, the process of which starts in the last six
months of the year. Thus, it is on the basis of both the Budget and Revised Estimates for a fiscal year that the next fiscal’s
budget estimates are prepared. However, in the case of many programmes, the BE and RE may remain the same.
The Actual Expenditure (AE) figures are the final version of the budget estimates for any particular fiscal year. In other
words, the final spending estimates for that fiscal year which may be more or less, mostly less, than the initial budget esti-
mate. However, these are available to the general public with a time lag of two years.
All the expenditure data have been taken from the Detailed Demands for Grants (DDG), which are available at both the
State as well as the Centre. Estimates for expenditure are presented to Parliament or the State Assembly as Demands for
Grants. Generally, each ministry or department presents one list of Demands for Grants, and large ministries or depart-
ments may present more than one list. Each such list includes the total provisions required for a service, followed by the
estimates for expenditure under different major heads of account. These demands are submitted along with the Annual
Financial Statement3
. Detailed Demands for Grants (DDG) are released after the presentation of the Budget to Parlia-
ment but before the discussion on the Demands begins. As the name says, the DDG have further details of the provisions/
3 The estimates of expenditure from the Consolidated Fund included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in
the form of Demands for Grants in pursuance of Article 113 of the Constitution.

10
schemes and the heads under which a demand (an allocation) will be spent as well as the actual expenditure in the past4
.
For example, the DDG for 2008-09 have AE for 2006-07. This is why our budget analysis has actual estimates for only the
first three years from 2004-05 to 2006-07.
The difference between Budget/Revised Estimates and the Actual Expenditure shows how much of the budget, more
or less than planned, has been spent in a given financial year. This difference is a reflection on not only the government’s
understanding and assessment of the needs of its citizens but also its implementation efficiencies. However, the study has
managed to do this comparative analysis with respect to only the three years for which the AE data was available, Over-
spending is rare in government-implemented schemes and underutilisation/ underspending of the budget allocation is
usually rampant, more so among child-focused schemes in some sectors. Although the scope of the study does not cover
reasons for such underspending, we discuss them whenever the reasons are known to us.
We have taken into account both Plan and Non-Plan Expenditures. Plan expenditure is the expenditure already planned
out in the on-going five-year plan/s, which are subsequently divided into annual plans. Our study period covers both the
Tenth and the Eleventh five-year plans. Plan expenditure is to be utilized within the time period set by the plan. If the
schemes or programmes extend beyond that time period, then the future expenditure to be incurred on the project is
called as non-plan expenditure. This includes, for example, the maintenance expenditure needed to maintain an asset cre-
ated by plan expenditure.
Research Design and Analysis
We began the research by identifying departments that run programmes for children and departments that are directly
concerned with children, such as the ministry of women and child development. The identification was done after minute-
ly studying the expense heads in the detailed demands for grants. Then we segregate the child-related expense heads from
among the demands for grants submitted by the departments. All the data (Budget Estimate, Revised Estimate and Actual
Expenditure) pertaining to the selected heads were entered and tabulated for comparison and analysis.
Analysis Structure
The focus of analysis was identification of gaps at the following multiple levels:
Between needs of the children to fulfill their rights and the commitments made by the state, both national and
international;
Between the commitments made by the state and the actual programmes/schemes under the various ministries and
departments;
Between the objectives of the programmes/schemes and the financial allocations towards them;
Between the allocations and actual expenditures; and
Between the outlays and the outcomes. 5
4 Each Demand normally includes the total provisions required for a service, that is, provisions on account of revenue expenditure, capital expenditure, grants to State
and Union Territory Governments and also loans and advances relating to the service. With regard to Union Territories without Legislature, a separate Demand is
presented for each Union Territory. Where the provision for a service is entirely for expenditure charged on the Consolidated Fund, for example, interest payments, a
separate Appropriation, as distinct from a Demand, is presented for that expenditure and it is not required to be voted by Parliament. Where, however, expenditure
on a service includes both ‘voted’ and ‘charged’ items of expenditure, the latter are also included in the Demand presented for that service but the ‘voted’ and
‘charged’ provisions are shown separately in that Demand.)
5 The Government of India has begun the practice of presenting the outcome budget in addition to outlays since 2005-06.

11
For preparing the final report, to begin with, the total allocation and expenditure for each individual schemes/programmes
as calculated. In the second stage, the sum total for all programmes in a sector was made for each of the four sectors and
then the total Budget for Children (BFC) was calculated. Then the sectoral totals and the BfC were compared with the
total state budget.
In the third stage, the Need vs Allocation analysis was done using the allocations against the quantitative and qualitative
status of the children in the state. At this stage, secondary data and analysis from different government and non-govern-
ment reports and publications have been used.
In the fourth stage, the analysis of Allocation vs spending was made on the basis of the data on actual expenditure (AE)
available from the Detailed Demands for Grants for the first three years and comparing them with the budget and revised
expenditure figures to gauge how well government money was being utilized for the children. This and the outlays vs
outcomes analysis are also based on the other financial documents of the government such as the audit reports, the perfor-
mance budgets and the appropriation accounts.
Departments
The Departments from which programmes/schemes have been taken for analysis (under the four sectors viz. Develop-
ment, Health, Education, and Protection) are as follows:
1. Development
a) Women’s Development, Child Welfare and Disabled Welfare Department.
b) Municipal Administration and Urban Development Department
c) Food, Civil Supplies and Consumer Affairs Department
2. Health
a) Health, Medical and Family Welfare Department
3. Education
a) Education Department
b) Municipal Administration and Urban Development Department
c) Social Welfare Department
d) Tribal Welfare Department
e) Backward Classes Welfare Department
f ) Women’s Development, Child Welfare and Disabled Welfare Department
g) Panchayati Raj and Rural Development Department
h) Food, Civil Supplies and Consumer Affairs Department
i) Labour and Employment Department
4. Protection
a) Women’s Development, Child Welfare and Disabled Welfare Department
b) Social Welfare Department

12
Sources of Data
1. Budget Estimates : Detailed Demand for Grants, 2004-05 to 2008-09
2. Outcome Budget, Government of Andhra Pradesh, All Relevant Departments
3. Budget at a Glance
4. Budget in Brief
5. Annual Reports on District Primary Education Programme (DPEP) & Sarva Shiksha Abhiyan (SSA)
6. Socio-Economic Surveys, Government of AP
7. Comptroller and Auditor General (CAG) Reports and Appropriation Accounts
Constraints and LimitaƟons
The biggest handicap in undertaking BfC analysis work has been the mismatch of data pertaining to a particular
scheme/programme in various budget documents. In this study, the programmes/schemes have been taken only
from the ‘Budget Estimates’ presented by the government of AP in the Legislative Assembly every year. Data for
some schemes/programmes analysed vary between various reviews and analytical reports of concerned departments.
It is also observed that different data for certain schemes have been mentioned in “Budget Estimates” for different
years under the same budget head.
The other major problem is faced in disaggregating resources only for children, as many schemes are designed for
both women and children. In India and all its states, curiously, woman and children are taken as a composite being
for policy purposes, as is clear from the name of the overseeing ministry, the Ministry of Women and Child Devel-
opment. Moreover, a number of schemes do not specify the exact age of the people it is meant for, thus pushing us
to include these schemes although it may well be that only a part of it is actually applicable to the BfC analysis. It is
not possible to know for sure.
It has been difficult to accurately calculate the share of external aid components in centrally sponsored schemes for
lack of pertinent data.
A big roadblock is the lack of reliability of the socio-economic data as well as the government’s own data on its
achievements.
Not all allocations are reflected in the budget documents. For example, a lot of the health and protection-related
allocation/expenditure is made through autonomous societies set up by the state. This applies to all centrally spon-
sored schemes. Insofar as it is difficult to include such allocations, the study is unable to capture the full extent of
spending on the children in the state.
An Overview of Budget for Children in Andhra Pradesh
A first glance at the state budget and the total budget for children including all four sectors, viz. Education, Health, De-
velopment and Protection over the five-year period under study, tells us that Budget allocation for children has generally
increased steadily over the years, almost keeping pace with the expansion of the size of the State Budget.
If we look at the budget estimates in the AP state budget (total proposed expenditure) as well as those in the BfC in our
study period, we find that on an average for the period of 2004-05 to 2008-09, the total State Budget has shown an in-

13
crease of 16.83 per cent, while the BfC has increased by 15.14 per cent. After 2006-07, when the state budget and the BfC
went up by 14.81 per cent and 18 per cent respectively, there were sharp increases in the next two years. While the State
budget expanded by 27.5 per cent and 24 per cent in 2007-08 and 2008-09 respectively, the BfC went up by 20.44 per
cent and 48.44 per cent.
That should be good news but is not really. Table 1.1 shows how the quantum of social sector allocation in the budget be-
tween 2004-05 and 2008-09 has steadily moved upward, as has the AP budget, and faster in 2007-08 and 2008-09. Even
as a share of the budget, social sector allocations have risen consistently from 23.6 per cent in the beginning of the study to
30.7 per cent in the end. Yet, though the budget for children forms an important component in the Social Sector alloca-
tion, with a five-year average share of 52.7 per cent, the annual share of the BfC has actually declined sharply from 58.2 per
cent in 2004-05 to 44.6 per cent in 2007-08, and then revived only a little to 51.6 per cent in 2008-09. Overall, thus, the
share of BfC shows a net decline of 12.7 per cent from 2004-05 to 2008-09.
In contrast with the steady growth in the State Budget and the BfC in absolute numbers between 2004-05 and 2007-08,
the Budget for Children has actually declined from 13.74 per cent of the total state budget in 2004-05 to 13.24 per cent in
2007-08 followed by an increase in 2008-09.
Table 1.1: BfC and Social Sector AllocaƟon in the AP Budget
Year AP Budget Social Sector AllocaƟon for Social Sector AllocaƟon BfC as percentage BfC as
(Rs crore) AllocaƟon Children (BfC) as a Percentage of of Social Sector Percentage
(Rs crore) (Rs crore) AP Budget AllocaƟon of AP Budget
2004-05 511,42.49 12,079.02 7,025.61 23.6 58.2 13.74
2005-06 55,331.30 13,135.46 7,514.40 23.7 57.2 13.58
2006-07 63,527.74 17,164.36 8,867.41 27.0 51.7 13.96
2007-08 80,996.60 24,041.96 10,725.89 29.7 44.6 13.24
2008-09 100,436.55 30,833.69 15,921.07 30.7 51.6 15.85
Source; Budget Documents, 2004-05 to 2008-09, Government of AP
Between 2004-05
and 2008-09, out of
every Rs 100 allo-
cated by the State
Government, on
an average, only 14
rupees 7 paise were
given to children.

14
The difference in the budget estimates and revised estimates
shows how the budget undergoes a change in the middle of
the financial year. The actual expenditure is the reflection of
the implementation of any programme and brings us closer to
understanding the gaps in utilisation and implementation.
Table 1.2 shows that the Revised Estimates are lower than Bud-
get Estimates in 2004-05 and 2006-07, and Actual Expenditure
is substantially lower than budget estimates in all the three
years. As a result, an average of 13 per cent of allocated resourc-
es in child-related sectors over three years remained unused.
Taking an average of expenditure figures between 2004-05 and
2006-07, we find huge underspending in the protection sector
(43 per cent) followed by health (15.3 per cent), development
(10 per cent) and education (13 per cent). An attempt was also
made to scrutinise the scheme/programme-specific expendi-
ture to find out where exactly was the underutilisation.
Sectoral AllocaƟon and Expenditure in BfC
Whether we see it from the point of view of the State budget or from the angle of the Budget for Children, the education
sector gets top billing, often to the neglect of other sectors. On an average, the share of allocation for education schemes
within the BfC is 83.28 per cent during this period and 11.80 per cent in the total State Budget. Out of Rs 10,010.07
crore promised to the children of the state, the share of development is 14.48 per cent; health is 1.25 per cent and protec-
tion 0.99 per cent.
Table 1.2: Gaps in BE, RE and AE in the AP BfC (Rs crore)
RE - BE AE - BE
Year BE RE AE Per cent Per cent
2004-05 7,025.61 6,617.61 6,057.51 -408 -5.81 -968.10 -13.78
2005-06 7,514.41 7,877.74 6,528.28 363.33 4.84 -986.13 -13.12
2006-07 8,867.41 8,820.37 7,823.72 -47.04 -0.53 -1,043.69 -11.77
2007-08 10,725.89 11,367.87 NA 641.98 5.99 … …
2008-09 15,921.07 NA NA … … … …
Source – Budget EsƟmates, 2004-05 to 2008-09
Table 1.3: Children’s Share in AP State Budget (Rs crore)
2004-05 2005-06 2006-07 2007-08 2008-09 Average Percentage Average Percentage
Sectors (BE) (BE) (BE) (BE) (BE) in AP Budget within BfC
EducaƟon 5,892.74 6,318.69 7,515.17 8,952.52 12,775.10 11.80 83.28
Health 85.04 120.58 117.18 146.94 120.65 0.17 1.25
Development 961.98 989.55 1,144.09 1,535.00 2,917.76 2.15 14.48
ProtecƟon 85.86 85.59 90.97 96.52 107.56 0.13 0.99
Source: Budget EsƟmates, 2004-05 to 2008-09
14.07%
BfC
85.93
AP Budget
excluding
BfC
Figure 1.1 BfC as a Percentage of Total AP Budget (Aver-
age AllocaƟon for 2004-05 to 2008-09)

15
With education
receiving maxi-
mum attention,
the Government
has once again
failed to focus on the child holistically. The rest of the sectors
combined do not cover even 4 per cent of the state budget.
Worse, the least of the allocations go to Health and Protec-
tion, sectors that are vital given the poor nutritional status of
the children, especially those under six years of age, and the
alarming sexual exploitation of children under 18 in the state.
The growth of
allocation in child-
related sectors has
shown a steady
increase over the
years, with a sharp
rise in the final year of study, as Table 1.4 shows. A closer look tells us that the drastic increase in 2008-09 is mainly because
of a near-doubling of allocation for Development and substantially larger funds for Education.
The allocation for development went up by Rs 1,382.76 crore, about 90 per cent more over 2007-08. This too is due to an
additional allocation on the sub-scheme, Subsidy on Rice, under Nutrition Programme (Rs 720 crore in 2007-08 to Rs
1,980 crore in 2008-09) that benefits more than 80 per cent of the state’s population, not only children. Similarly, there
is an increase of 33 per cent in Integrated Child Development Scheme (ICDS) allocation in 2008-09, because of larger
outgo on wages for Anganwadi workers and construction of buildings for additional Anganwadi Centres (AWCs).
85.76
State Budget
2.15
Development
0.13
ProtecƟon
11.80
EducaƟon
0.17
Health
Figure 1.2 BfC Sectoral Shares in AP Budget (per cent)
Of every Rs 100 allocated in the
AP budget, the protecƟon sector
has received an average of 13
paise during 2004-05 to 2008-09.
Of every Rs 100 allocated in the
AP budget, child health has been
provided an average of 17 paise
during 2004-05 to 2008-09.
Table 1.4: Percentage Change in Sectoral AllocaƟon within BfC (Budget EsƟmate)
Year Total BfC Development Health EducaƟon ProtecƟon
2005-06 6.96 2.87 41.80 7.23 -0.31
2006-07 18.01 15.61 -2.82 18.94 6.28
2007-08 20.44 34.17 21.06 18.52 6.10
2008-09 48.44 90.1 -17.90 42.70 11.44
Average 23.46 35.69 10.54 21.85 5.88
Table 1.5: Sector-wise AllocaƟons vs. Expenditure (Rs crore)
2004-05 2005-06 2006-07
Sectors/Years BE AE BE AE BE AE
EducaƟon 5,892.74 5,053.32 (-14.24) 6,318.69 5,598.37 (-11.40) 7,515.17 6,537.42 (-13.01)
ProtecƟon 85.86 80.55 (-6.19) 85.59 33.15 (-61.27) 90.97 34.96 (-61.57)
Development 961.98 838.74 (-12.81) 989.55 802.37 (-18.92) 1,144.09 1162.24 (1.59)
Health 85.04 84.90 (-0.16) 120.58 94.38 (-21.72) 117.18 89.10 (-23.96)

16
At the same time, the allocation for child health schemes in the 2008-09 budget was lower by 17.90 per cent, a grave con-
cern in a state where several children are affected by malnutrition, increased disease burden and inadequate health services.
Table 1.5 gives us the huge amount of unspent resources till 2006-07 in every sector, especially in health and protection
schemes. In 2005-06, for instance, 21.72 per cent of the funds were left unspent, and next year was a greater concern as
23.96 per cent of the resources lay unspent. There is even greater underutilisation in protection, where allocation hardly
grew in all the three years, yet 61.27 per cent and 61.57 per cent of budgeted funds remained unspent in 2005-06 and
2006-07. Underspending in education has been erratic, ranging from 11.40 per cent in 2004-05 to 14.24 per cent in 2005-
06 and to 13.01 per cent in 2006-07.
In a departure from trend, actual spending in development sector exceeded BE by 1.59 per cent in 2006-07. A closer look
at individual schemes shows that overutilisation occurred only in the ‘Nutrition Programme’ implemented by the Depart-
ment of Women, Child and Disabled Welfare, because of granting more funds under Special Component Plan (SCP) for
the Schedule Caste and Tribal Area Sub-plan (TAS). Apart from this, bulk of the allocations under all other schemes in
this sector, including ICDS, remained unspent.
Share of Centrally Sponsored Schemes (CSS) in BfC
It is useful to discuss the actual share of central allocation towards different child-related schemes as the number of cen-
trally sponsored schemes (CSS) in operation has gone up steadily. States receive funds from the Planning Commission
directly in the form of Central Assistance to States that are used to support state plans and indirectly through the central
ministries in the form of CSS. The CSS funds reach the district level implementing society either through state budgets
and relevant state ministry/departments or via a direct route to the DRDA (District Rural Development Agency) or, as in
the case of SSA, the State Implementing Society (SIS).
Table 1.6 shows how the share of the Central government in all child sectors has decreased gradually in the three years
under review. Only in the education sector did the central share increase from 3.20 per cent in 2004-05 to 4.48 per cent
in 2006-07, though it fell to 2.90 per cent in 2005-06. In the health sector, this share has dropped sharply from 48.63 per
cent in 2004-05 to 16.57 per cent in 2006-07. This decline indicates a shift towards the role and importance of the state
governments in funding these schemes, whether they are able or not. The decrease in central share in almost all sectors also
signifies an increasing trend towards decentralisation, more evident in the education sector.
Table 1.6: Sector-wise share of Central and State Expenditure over 2004-05 to 2006-07
2004-05 2005-06 2006-07
Sectors Share of Share of Total Share of Share of Total Share of Share of Total
Centre’s State’s Budget Centre’s State’s Budget Centre’s State’s Budget
Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure
(per cent) (per cent) (Rs crore) (per cent) (per cent) (Rs cr) (per cent) (per cent) (Rs cror)
EducaƟon 3.20 96.80 5,053.32 2.90 97.10 5,598.37 4.48 95.52 6,537.42
Health 48.63 51.37 84.90 28.56 71.44 94.38 16.57 83.43 89.10
Development 21.39 78.61 838.74 26.70 73.30 802.37 18.88 81.12 1162.24
ProtecƟon 5.16 94.84 80.55 2.41 97.59 33.15 0.30 99.70 34.95

17
External Aid in BfC
External aid has been an additional source of financing in
many sectors, including child related sectors. However,
the current procedure of funding and accounting followed
at the center and state level makes it difficult to gauge the
external aid amount; they are not reflected in the Union or
State Budget documents. For example, funds under National
Child Labour Project (NCLP), a national programme, are
generally released through the Project Societies of respective
states. Therefore, a limited attempt has been made in Table
1.7 to locate the external aid components mentioned in the
DDG.
The external aid components are limited to the education, health and development sectors in the following schemes/pro-
grammes:
Education:
1. Special Education Programme
2. Nutrition Meal Programme (Midday Meal scheme)
3. SSA
4. Technical Education Quality Improvement Project
(TEQIP)
5. Government Residential Centralised Schools under
RPRP
6. Government Residential Centralised Schools under
DPIP I
7. Velugu Project-Residential Schools under Rural Pov-
erty Project-DPIP II
Table 1.7: External Aid Components in Sectoral AllocaƟon (BE) in the BfC of AP (Rs lakh)
EducaƟon Health Development
Financial Year BE AE BE AE BE AE
2004-05 78,708.15 13,537.17 2,200.00 3,101.34 14,872.57 7,107.05
(13.36) (2.68) (25.87) (36.53) (15.46) (8.47)
2005-06 70,358.15 7,741.47 2,200.00 2,207.25 10,467.42 4,209.33
(11.13) (1.38) (18.25) (23.39) (10.58) (5.25)
2006-07 87,644.00 12,308.73 2,200.00 906.36 0.00 -3.32
(11.66) (1.88) (18.77) (10.17)
2007-08 102,973.00 NA 1,500.00 NA 0.00 NA
(11.50) (10.21)
2008-09 87,325.00 NA 1,000.00 NA 8433.38 NA
(6.84) (8.29)
Figure 1.3 Trend in the Central Share of Expenditure in
Child-related Sectors
55.00
50.00
45.00
40.00
35.00
30.00
0.00
5.00
10.00
15.00
20.00
25.00
2004-05 2005-06 2006-07
EducaƟon Health Development ProtecƟon
Figure 1.4 Share of External Aid in sectoral expenditure
of BfC, AP
40.00
35.00
30.00
25.00
20.00
15.00
-5.00
0.00
5.00
10.00
2004-05 2005-06 2006-07
EducaƟon Health Development

18
Health:
1. Reproductive and Child Health Programme (RCH)
Development:
1. ICDS Schemes—IDA-assisted ICDS-IV Project
2. Construction of Buildings for Anganwadi Centres-ICDS IV Project
The health sector is the most dependent
on external aid, as evident from Table
7 and the chart. As much as 36.53 per
cent of the total expenditure on health in
2004-05 was financed through external
aid component, specifically in Family
Welfare schemes and Reproductive and
Child Health programme. However, the
dependence on foreign aid has gradually
decreased in all sectors over the years.
Unfortunately, so has government fund-
ing for the health sector, allowing a vir-
tual privatisation of healthcare in India.
Th
o
7
c
2
a
W
C
d
d
U
i
t

19
The National Policy on Education, 1986 (as modified in 1992), talk-
ing about issues of urgent attention says, “… problems of access, quality,
quantity, utility and financial outlay, accumulated over the years, have
now assumed such massive proportions that they must be tackled with
utmost urgency.”
Improved infrastructure facilities, high rate of enrolment, retention and
low rate of dropouts and out of school children are the indicators that
help in the process of realisation of goals of the elementary education.
Andhra Pradesh has performed very well in education sector as a whole as compared to other states especially in the last
decade after the launch of the national flagship programme, Sarva Shiksha Abhiyan (SSA) to universalise quality elemen-
tary education. But more important is a shift in focus towards quality of education rather than improving quantitative
aspects. Assessing children’s actual level of achievements is among the vital factors that determine the quality of educa-
tion. This is because poor level of learning results in repetitions, hence dropouts in the long run. At a policy forum on the
right to education held in Delhi, April 2008, the Chair of the National Commission for the Protection of Child Rights
(NCPCR), Dr Shantha Sinha, also highlighted the need to move away from the current focus on targets to a focus on the
Education Suﬀers Despite
Maximum Allocation
The World EducaƟon Forum (2000) agreed
on six “EducaƟon for All” (EFA) goals.
The sixth goal concerned EducaƟon quality,
‘…improving all aspects of the quality of educaƟon
and ensuring excellence of all so that recognised and
measurable learning outcomes are achieved by all,
especially in literacy, numeracy and essenƟal life skills.’

20
universality of rights and added that all children have a right to quality education as per the Minimum Levels of Learning
(MLLs) standards formulated in the nineties6
.
Where Do Our Children Stand
in Access, Enrolment, RetenƟon
Over the years, improvements in education
have related to performance on the indica-
tors of access, enrolment and retention.
Andhra Pradesh has the highest number of
schools per village after Kerala and Tripura.
The Outcome Budget 2008-09 of the state
says access has been provided for primary
education to an extent of 98.85 per cent as
per the national norm of establishing pri-
mary schools within a radius of one km in
every habitation. Among the 72,154 habita-
tions, regular primary schools have been established in 71,326 habitations, or almost 99 per cent. Enrolment of children in
upper primary and high schools altogether has increased steadily from 51 lakh in 2003-04 to 58 lakh in 2007-08. Enrol-
ment of girls has also increased steadily over the years (refer table 6a). Retention rate of children in classes I-V increased
from 56 per cent to 81 per cent between 2002-03 and 2007-08. Some 366 new primary schools and 253 primary schools
were upgraded into upper primary during 2005-06, while 304 new primary schools and 156 upper primary schools were
approved in 2006-07, construction of which is going on.
However, this is by no means a complete picture and lacunas exist. First, there are disparities in government’s own esti-
mates of the actual number of children out of school.
Against the estimated population of 158.62 lakh in the school-going age group (6-15 years), 131.35 lakh was
enrolled in classes I-X (DSE 2006-07), thus leaving 27 lakh children out of school. The number of out-of-school
children as claimed by the Education Department was only 2.8 lakh (DISE 2006-07).
According to the SSA again, out of the population of 1.27 crore in the 6-14 years age group, only 2,64,013 children
were reported out of schools in AP as of April 2007, indicating almost 98 per cent of enrolment
The CAG report mentioned that 4.23 lakh children of 6-15 years continues to be out of school (CAG 2006-07)
Enrolment of children in primary section (classes I-V) decreased from 79.8 lakh in 2003-04 to 71.7 lakh in 2007-08
6 “Still Out of Focus: Status of India’s Children 2008”, published by HAQ: Centre for Child Right
Table 2.1: Enrolment and RetenƟon Rate over the Years
Year Enrolment RetenƟon rate
I-X classes
Boys Girls Boys Girls
2004-05 6769977 6333791 37.70 34.76
2005-06 6706615 6319774 37.76 34.8
2006-07 6745593 6389155 37.01 34.67
2007-08 6651343 6346537 37.70 36.00
Selected EducaƟonal StaƟsƟcs, 2007-08
Table 2.2 : Stage-wise Drop-out Rates, AP 2004-05 to 2007-08
I-V I-VII I-X
Class/ Year Boys Girls Total Boys Girls Total Boys Girls Total
2004-05 31.77 32.14 31.95 51.96 54.46 53.17 62.30 65.24 63.69
2005-06 24.61 24.85 24.73 50.26 52.37 51.30 62.24 65.2 63.67
2006-07 26.76 27.32 27.04 42.14 44.32 43.22 62.99 65.33 64.13
2007-08 19.10 18.48 18.79 33.26 35.23 34.24 62.30 64.00 63.13
Source: Selected EducaƟonal StaƟsƟcs 2007-2008; website - hƩp://ssa.ap.nic.in/Page122.htm

21
Retention figures of the enrolled children are dissatisfactory as 27 per cent children drop out by class V. Out of
every 100 children enrolled in the elementary level (I-VII), about 43 drop out before completing elementary stage
and 64 drop out before completing class X.
Number of primary schools in the state actually fell from 63,897 in 2003-04 to 62,162 in 2006-07.
The CAG Report of 2005 observes that
26,123 schools in the state are running with only one classroom
2,977 habitations (out of 72,372) did not have regular schools as
of March 2005, and of these 1,925 habitations did not have any
school at all
26,160 schools did not have drinking water
There is a shortage of 6,309 upper primary schools. A quarter of
civil works relating to construction of classrooms, toilets, provi-
sion of drinking water facilities etc, taken up in upper primary
under SSA during 2000-04, had not been completed till 2005.
There are still 6,316 schools without buildings. Some 3,431 school buildings are in dilapidated condition and
27,490 classrooms need repairs.
Gender Gap
Gender gap is huge in terms of literacy with male literacy rate at 71 per cent compared to 51 per cent among females.
Although there has been an increase in enrolment over the years among girls in all classes, the number of girls en-
rolled is less than that of boys. The gap widens progressively in higher classes.
Table 2 shows that the dropout rate among girls is much higher than boys and this is more in the secondary and
high school stage.
Information collected by DISE reveals that only 42.53 per cent schools in the state have provided separate toilets for
girls (Table 2.3). The lack of separate toilets for boys and girls influences parental decision to keep their daughters
away from school.
Scheduled Caste/ Tribe Children
According to DISE, the share of enrolment of SC students in total enrolment in primary stage is only 19.04 per
cent whereas their share in classes I-X is only 18.87 per cent as of 2007-087
. The share of ST students in total enrol-
ment of 2007-08 was only 10.3 per cent in primary stages and 8.9 per cent in upper primary.
Dropout rates in classes I-X for SC and ST are as high as 70 per cent and 82 per cent respectively.8
Although there has been an increase in enrolment at primary and upper-primary levels by 11.5 per cent and 26
per cent respectively from 2004-05, it is found that 16.5 per cent schools at elementary levels are running with a
student-classroom ratio equal to or more than 60. The number of teachers in primary schools has declined from
173,731 in 2002-03 to 167,723 in 2006-07.
7 Selected Educational Statistics, 2007-2008, Director of School Education (DSE), Govt. of AP
8 Ibid
It needs a menƟon that the enrolment of
children in general and girls in parƟcular
at primary stage have been decreased all
through. However, decline in the primary
level enrolment as claimed by the govern-
ment is …”due to the decline in the birth
rate, enhancement of life expectancy,
decline in the death rate etc.”
Outcome Budget 2008-09

22
Some 52.16 per cent of schools (primary, upper primary and high schools), against the national figure of 56.65 per
cent, are running with less than three teachers. Only 55.43 per cent of teachers in government schools in the state
received In-Service Training during 2006-07 and only 39.21 per cent of Regular and Para-Teachers in all schools
(Government, Private Aided and Unaided) have the required professional qualification.
Pratham’s rapid assessment survey taken in upper primary schools in 2005 and 2007 in the rural areas of AP
revealed that the average percentage of teacher’s attendance in the state in I-V levels and I-VIII levels has increased
from 80.6 per cent to 86.3 per cent and 80.0 per cent to 86.3 per cent respectively between 2005 and 2007. The
percentage of schools with the required number of teachers at the primary level has also gone up from 50.3 per cent
in 2005 to 59.5 per cent in 2007.9
9 Outcome Budget 2007-08
Table 2.3: ComparaƟve Data on School FaciliƟes in 2006
States Percentage of Percentage of Percentage of Percentage of Pupil teacher
Schools with Drinking Schools with Separate Schools with Schools (with raƟo in
Water Unit Girls’ Toilets Boundary Wall Blackboards in Primary
classrooms schools
AP 80 42.53 51.65 82.33 28
India 84.89 42.58 49.26 90.63 42
Table 2.4: School-wise Number of Teachers, AP 2004-05 to 2007-08
Primary Schools Upper Primary Schools High Schools
Year Male Female Total Male Female Total Male Female Total
2004-05 91782 75153 166935 60900 43085 103985 84102 56297 140399
2005-06 91079 75711 166790 62034 44181 106215 85108 57436 142544
2006-07 89099 78591 167690 64142 48240 112382 91998 61971 153969
2007-08 87704 79355 167059 62735 48214 110949 93496 63391 156887
Source – Selected EducaƟonal StaƟsƟcs 2007-08
Table 2.5: Indicators on Human Resources in AP as Compared to All India
Indicators AP* India**
Male Female Male Female
Number of government teachers
Regular 247638 263941 5218578 2189715
Para 36712 34584 292831 220807
Percentage of teachers in government schools 65.52 69.14
Average number of teachers per school (All schools)
Government 4.2 3.7
Private Aided 5.8 8.5
Private Unaided 9.4 6.5
Percentage DistribuƟon of Para-Teachers to Total
Teachers in government schools 21.12 12.93
Percentage of Trained Para-Teachers in government schools 38.95 44.29
*DISE State Report Card 2006-07
**DISE AnalyƟcal report 2006-07

23
Apart from the department of education, a large amount of
expenditure on education is incurred by other departments
such as:
Department of Social Welfare, Tribal Welfare and
Backward Classes Welfare
Women Development, Child Welfare and Disabled
Welfare Department
Food, Civil Supplies and Consumer Affairs Depart-
ment
Department of Labour
Municipal Corporation and Urban Development De-
partment.
Department of Panchayati Raj
The state government has accorded the highest priority for
education among other child-related sectors which is reflected
in the fact that, on an average, 11.8 per cent of the state bud-
get was allocated to education during 2004-05 to 2008-09.
That means, for every 100 rupees allocated by the state government to child-related programmes, 11 rupees 80 paise went
to education schemes.
ObservaƟons by CAG, 2006
Shortage of teachers: While reviewing the performance of SSA, the CAG menƟoned a shortage of 54,730
teachers in primary and upper primary schools, while SSA norms mandate one teacher for every 40 children.
Also, there should be at least two teachers in a primary school and one teacher for every class in an upper pri-
mary one. This brings teacher needs in 56,924 primary schools and 22,153 upper primary schools to 268,919
as on March 2005. As against this, there were only 214,189 teachers leaving a gap of 20 per cent.
Shorƞall in teachers’ training: The shorƞall in the training was 51 per cent in the case of untrained teachers, 78
per cent in the case of freshly trained recruits) and 43 per cent in the case of community leaders. The State Proj-
ect Director aƩributed the shorƞall to lack of manpower in District InsƟtute of EducaƟon and Training (DIETs).
Deployment of under-qualified para-teachers: The report “Quality of educaƟon suffered due to deployment of
under-qualified para-teachers” said that as of March 2005, there were 46,544 Vidya Volunteers (VVs) in schools
on a monthly honorarium of Rs 1000 under the SSA. The external agency (Osmania University) which evaluated
the performance of SSA in Rangareddy District maintained that VVs were not paying aƩenƟon towards chil-
dren’s educaƟon as they were very poor in understanding children and the curriculum transacƟon process.
11.8
EducaƟon
88.2
Other than
EducaƟon
Figure 2.1: AllocaƟon for EducaƟon sector as a percent-
age of AP State Budget: Average of 2004-05 to 2008-09
The annual expenditure has not kept pace with the budgetary allocaƟons in educaƟon sector. A major part of the
budget has remained unspent in all the five years. The underspending shows an erraƟc trend. Between 2005-06 and
2006-07, the underspending has increased not only in absolute terms but also as a percentage of the budgetary al-
locaƟon from 11.40 per cent to 13.01 per cent. In other words, an increasing share of the budgetary allocaƟon is not
being spent.

24
One of the goals of the National Common Minimum
Programme (NCMP) adopted by the first UPA government
at the Centre was to bring expenditure on education to 6
per cent of GDP and that on health to 3 per cent. Though
allocation for education in the AP budget as a percentage of
the state’s Gross State Domestic Product (GSDP at constant
prices) has increased steadily from 3.38 per cent in 2004-05
to 3.9 per cent in 2007-08, keeping pace with the increase in
the GSDP, it still falls far short of the NCMP goal. In fact,
the allocation for the School education department makes
up 80-85 per cent of the total education budget anyway. If
the state were to implement the NCMP as a UPA partner, it
should allocate at least 4.5 per cent of the GSDP to school
education every year. This is all the more necessary because
viewed in terms of actual expenditure, the share of education is found displaying a lower trend.
AllocaƟon and Expenditure in
EducaƟon
Table 7 and the figure shows the budgetary allocation
and expenditure for programmes/ schemes of elementary,
secondary education taken from the department of educa-
tion as well as from other departments during 2004-05 to
2007-08.
As evident from the figure and tables 6 and 7, the budget
estimate in education has increased steadily over the years
by as much as 116 per cent between 2004-05 and 2008-
09, reflecting the enhanced priorities of the government
towards the sector. However, as a percentage of the total
State budget, it has shown an erratic trend over the years. It fell to its lowest share of 11.05 per cent in 2007-08, followed
by a sharp increase to 12.72 per cent in 2008-09. On the other hand, the revised estimates have gone up consistently from
Rs 5,588.12 crore in 2004-05 to Rs 9,592.61 crore in 2007-08. Similarly, the actual expenditures have increased both in
absolute number as well as share of expenditure in total state expenditure during 2004-05 to 2006-07.
Table 2.6: Share of EducaƟon Sector in State Budget
Year Total State Budget, AP Total Budget for EducaƟon AllocaƟon for Child Expenditure for EducaƟon
Sector within BfC EducaƟon Sector as a Sector as a Percentage
Percentage of Total State Expenditure
BE AE BE AE of total State Budget
2004-05 51,142.49 45,747.1 5,892.74 5,053.32 11.52 11.05
2005-06 55,331.3 48,628.218 6,318.69 5,598.37 11.42 11.51
2006-07 63,527.741 56,501.81 7,515.17 6,537.42 11.83 11.57
2007-08 80,996.6 NA 8952.52 NA 11.05 NA
2008-09 100,436.55 NA 12,775.10 NA 12.72 NA
Figure 2.3: BE, RE and AE in Child EducaƟon Sector o BfC in
AP 2004-05 to 2008-09
0
2000
4000
6000
8000
10000
12000
2004-05 2005-06 2006-07 2007-08 2008-09
Budget EsƟmate Released EsƟmate Actual Expenditure
14000
Figure 2.2: Trend in Percentage of EducaƟon in GSDP
4
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1
3
2004-05 2005-06 2006-07 2007-08

25
Revised estimates, as evident from the figure above, have been lower than initial budget estimates in the years except 2005-
06 and 2007-08. A closer scrutiny tells us that there have been a number of instances where the difference between the
budget allocation and revised estimates has been very large. Some of these are:
There was a fall in revised estimates on Special Education Programme by 76.6 per cent in 2004-05
Revised estimate in 2004-05 for Sarva Shiksha Abhiyan fall by 55.8 per cent
Revised estimates for Text Books has been lower than initial budget estimates in first three years by 13 per cent, 5
per cent and 7 per cent respectively
The annual expenditure has not kept pace with the budgetary allocations. A
major part of the budget has remained unspent in all the five years. The under-
spending shows an erratic trend (see Table 2.7). Between 2005-06 and 2006-07,
the underspending has increased not only in absolute terms but also as a per-
centage of the budgetary allocation from 11.40 per cent to 13.01 per cent. In
other words, an increasing share of the budgetary allocation is not being spent.
There are certain schemes/programmes in the education sector for which, as mentioned in the DDG, funds were allocated
through budget estimates and revised estimates but they were not spent at all. Some schemes/programmes that saw major
underspending are:
For the Centrally-sponsored Scheme (CSS) of Supply of Science Equipment to Secondary Schools, though a steady
provision of Rs 478.26 lakh was made in budget and revised estimates every year, not a penny was spent from 2004-
05 to 2006-07.
Modernisation of Madarsah Education is another CSS for which Rs 70 lakh was provided each year during 2004-05
to 2006-07 in the budget and revised estimates, but nothing was spent except in 2005-06 when about half of the
money was spent.
There was 100 per cent underutilisation of budgeted resources for the CSS Area Intensive Programme for Edu-
cationally Backward Minorities in 2004-05 and 2006-07 though an amount of Rs 16.64 crore had been provided
under budget estimates.
For Environmental Orientation School Education Programme though a provision of Rs 24.39 lakh has been made
in all three years from 2004-05 to 2006-07 through budget estimates, 100 per cent of those provisions remained
unspent.
There was no expenditure at all for the scheme, Improvement of Science Education, though a constant amount of
Rs 35.76 lakh had been provided under budget estimates in all three years.
An amount of Rs 10 crore was budgeted in 2005-06 and 2006-07 for CSS Government Residential Centralised
Schools, but nothing was spent. The same story was repeated in the case of CSS, Residential Schools for Tribals,
where budget estimates were Rs 5 crore in 2004-05 and Rs 6 crore in 2005-06 and 2006-07 each.
Table 2.7: Diﬀerence between BE, RE and AE in EducaƟon, 2004-05 to 2006-07
Year BE RE AE Change in RE over BE Change in AE over BE
(RE-BE) per cent (AE – BE) per cent
2004-05 5,892.7394 5,588.1174 5,053.3226 -304.622 -5.17 839.4168 -14.24
2005-06 6,318.6863 6,710.5426 5,598.37 391.8563 6.20 720.3163 -11.40
2006-07 7,515.1682 7,470.1279 6,537.4237 -45.0403 -0.60 977.7445 -13.01
Average 6,575.5313 6,589.5960 5,729.7054 14.0647 0.21 845.8259 -12.86
On an average during 2004-05 to
2006-07, budget provisions were not
spent to the extent of about 12.86
per cent, which touched a maximum
of 14.24 per cent in 2004-05.

26
Some other schemes with major underutilisation are:
Sarva Shiksha Abhiyan: Huge underspending of budget estimates by 84.5 per cent, 78.9 per cent and 82.1 per cent
in 2004-05, 2005-06 and 2006-07 respectively.
Operation Blackboard: About 79.2 per cent, 28 per cent
and 18 per cent in 2004-05, 2005-06 and 2006-07 respec-
tively.
Integrated Education for Disabled Children: 74.6 per cent,
65.2 per cent and 63.7 per cent in 2004-05, 2005-06 and
2006-07 respectively.
Language Development (Elementary Education): 83.3 per
cent, 83.1 per cent and 85 per cent.
State Council of Educational Research and Training: 87.1
per cent in 2004-05 and 77.8 per cent in 2006-07. In 2005-
06, the utilisation went up to 95.81 per cent, mainly because of a hefty purchase of machinery and equipment.
73 per cent of the scheme funds were not
uƟlised for payment of scholarship to stu-
dents thus denying scholarship to 19592 SC
students every year
Scholarships amounƟng to Rs 0.35 lakh
were paid (2004-06) to 20 ineligible candi-
dates i.e. children of auto drivers, contrac-
tors, and private/government employees in
Hyderabad.
CAG Report 2007-08, Chapter III, Pages-39-55
Underinvestment in EducaƟon Schemes
The NaƟonal Programme for EducaƟon of Girls at Elementary Level (NPEGEL) programme is conducted on
“Model Cluster School Approach” in Andhra Pradesh. The AP Socio Economic Survey 2007-08 observes that
“5,765 Model Cluster Schools are operaƟonalised, 3,398 schools receive books, sports and music equipment
and vocaƟonal materials and addiƟonal classrooms were constructed in 3,078 Model Cluster Schools.” A fall in
allocaƟon from Rs 59.16 crore in 2007-08 to Rs 57.88 crore therefore causes concern about proper implemen-
taƟon of the scheme and quesƟons the above claim.
According to the same survey, under SSA “an enrolment drive by government Ɵtled ‘Badi Bata’ resulted in
enrolment of 1,253,084 children of 5+ age group in ﬁrst class & 96,152 out-of-school children were main-
streamed into regular school; as many as 199,069 out-of-school children have been enrolled in EGS and AIE
centres; 3,073 school buildings and 14,316 classrooms have been constructed.” Although the move by the
state is welcome, a fall in allocaƟon for SSA by almost 51 per cent (from Rs 815 crore in 2007-08 to Rs 400
crore in 2008-09) is not understandable. In spite of the state’s enrolment drives and government’s claim of
only 2.8 lakh children out of school system, out of the esƟmated child populaƟon of 158 lakh (6-15 years
age group), only 131 lakh were enrolled in classes I-X (DSE 2006-07), thus leaving 27 lakh children sƟll out of
school.
It is clear from the Budget Speech that government is commiƩed to provide quality educaƟon for SCs and STs
and thus increase scholarships to poor talented children. However, scholarships to intermediate students un-
der Higher EducaƟon Department have decreased from Rs 2.95 crore in 2007-08 to Rs 2.75 crore in the next.
AllocaƟon under Scholarships and EducaƟonal faciliƟes to children of those engaged in Unclean OccupaƟons
has remained the same at Rs 3.01 crore for two years. Clearly, the acƟon doesn’t match the words.
Even as computer educaƟon is extended to addiƟonal 5,000 selected High Schools and Junior Colleges from
this year under the scheme “InformaƟon and CommunicaƟon Technology”, allocaƟons under the exisƟng
scheme of ComputerisaƟon of School EducaƟon has gone down by by 70 per cent (from Rs 73.51 crore in
2007-08 to Rs 22 crore this year), balancing out the gain from the former.
The allocaƟon for Book Bank under Social Welfare Department has decreased by 74 per cent in 2008-09, from
Rs 4.04 crore in 2007-08 to Rs 1.06 crore. The CAG report of 2007 observes that “No students were covered
under the scheme during the year 2006-07… In the test-checked districts, books not related to courses and
outdated books were supplied to students.”

27
Non-plan expenditure reflects the recurring expenses in
the education sector while the plan expenditure reflects
investment in government schemes and projects. The pro-
portion of plan expenditure to total education expenditure
has decreased sharply from 24.43 per cent in 2004-05 to
21.61 per cent in 2005-06 (marginally going up in the next
year), whereas total education expenditure has increased
from Rs 5,053.32 crore to Rs 6,537.42 crore. Since total
education expenditure has actually increased, the decline
in the proportion implies either slashed allocation under
existing plan schemes or cut in some of the plan schemes/
programme under school education, either of which is
worrisome.10
ContribuƟon of EducaƟon Sector
We now look at the trend in education expenditure in terms
of its components, such as elementary, higher education,
technical education and so on. As the chart shows, the pro-
portions of the budget going to these sectors have remained
almost the same during 2004-05 to 2006-07. Total school
education has received about 75 per cent of the total spend-
ing on education, with elementary education getting more
than secondary. Also, a large amount of education expendi-
ture is increasingly being borne by departments other than
Education.
10 Performance audit report on ‘Sarva Shiksha Abhiyan’, Department of Elementary Education and Literacy, Ministry of Human Resource Development, Report No. 15
of 2006, Pg no-34
Under SSA, training in the form of in-service course for 20 days for all teachers each year, refresher course
for untrained teachers already employed as teachers for 60 days, and orientaƟon for 30 days for freshly
trained recruits. Yet, 70,016 teachers out of a total of 220,891 in all schools in AP, or 31.70 per cent, remained
untrained as of 2005. In spite of the CAG recommendaƟon to “ensure that only teachers who possess the
prescribed minimum qualificaƟons are appointed and suitable steps are taken to train the underqualified staff
so that the quality of educaƟon is not adversely affected”, the actual expenditure paƩern for teacher’s train-
ing did not improve. Closer look at the budget data reveals that under DIET, out of the budget esƟmate of Rs
22.12 crore in 2006, only Rs 13.38 crore was actually spent on teacher’s educaƟon on elementary stage. Under
SCERT, out of the allocaƟon of Rs 13.48 crore in 2006, only Rs 2.99 crore was spent. Though an amount of Rs
37 lakh was allocated under Training programme for Secondary schools Math & Physical Science teachers” in
2006, only Rs 4 lakh was spent.
Figure 2.4: Percentage share of Plan Expenditure in Total
EducaƟon Expenditure
25
24.5
24
23.5
23
22.5
22
21.5
21
20.5
20
2004-05 2005-06 2006-07
% of plan educaƟon in total educaƟon expenditure
Figure 2.5: Intra-sectoral AllocaƟon in EducaƟon Expenditure
2000
6000
12000
0% 20% 40% 60% 80% 100%
Elementary School EducaƟon dept. Technical EducaƟon dept.
Secondary School EducaƟon dept. Other dept.
Higher EducaƟon dept.

28
Table 2.8 shows the allocation and expenditure on educational schemes by various departments. In the last budget (2007-
08), 60 per cent of total school education department budget was for elementary education and 30 per cent for secondary
education. However, as per the NKC recommendation, that ‘expenditure on secondary schooling must be increased by
several multiplies within the next 2 years, indeed by at least five times the current level if the CABE estimates are used’,
budget allocation in 2008-09 for secondary education has been sharply increased to 41 per cent of the total school educa-
tion department budget.
Share of Centrally Sponsored
Schemes (CSS)
In elementary education, the increasingly important role
played by the Centre must be highlighted, especially since
a large proportion of transfers from the Centre, though
not uniform, are allotted to the States for implementing
Centrally Sponsored Schemes (CSS). As the chart shows,
the share of central allocation in the education budget has
increased from 12.49 per cent in 2004-05 to 17.01 per cent
Table 2.8: AllocaƟon and Expenditure in EducaƟon Schemes by Various Departments (Rs Crore)
Major Heads’/Departments’ 2004-05 2005-06 2006-07 2007-08 2008-09
budget for EducaƟon
BE AE BE AE BE AE BE BE
Schemes under Elementary 2737.17 2103.62 2863.46 2412.44 3579.07 2711.9 4146.88 4886.1
EducaƟon, School EducaƟon
Departments
Schemes under Secondary EducaƟon, 1430.38 1319.29 1546.69 1567.6 1781.92 1889.77 2106.59 3844.36
School EducaƟon Departments
Schemes from Higher EducaƟon 275.41 276.365 299.804 325.222 375.14 341.308 452.406 506.916
Department
Schemes from Technical 164.597 106.98 122.423 121.304 135.819 142.229 131.647 127.354
EducaƟon Department
DirecƟon & AdministraƟon 48.4003 37.4306 55.3777 40.3349 54.9711 41.3583 63.8191 54.5941
(School & Intermediate EducaƟon)
Schemes from Social Welfare 702.027 657.93 825.53 498.856 877.996 707.768 1033.28 1779.21
Department
Schemes from Tribal Welfare 278.259 285.645 315.289 315.564 330.257 311.529 463.09 625.133
Department
Schemes from Back Ward 205.445 221.793 237.702 271.323 321.589 341.518 456.214 832.618
Classes Welfare Department
Schemes from Labour and 34.2176 30.6317 35.9306 35.2771 42.1803 39.9574 56.765 74.4117
Employment Department
Schemes from Women, Child and 5.2038 5.3576 6.8774 6.4747 6.6221 6.0266 7.2269 8.8349
Disabled Welfare Department
Schemes from Panchayat Raj 11.63 8.2797 9.6075 3.9716 9.6075 4.0531 34.6075 35.5682
Department
Source : Budget EsƟmates, 2004-05 to 2008-09
Figure 2.6: Shares of the Centre and the State in
AllocaƟon for EducaƟon
100
90
80
70
60
50
40
30
20
10
0
2005-062004-05 2006-07 2007-08 2008-09
Share of state’s allocaƟon Share of centre’s allocaƟon

29
in 2008-09. This is not only owing to the special component plan for schedule castes (SCP-SC) and the tribal area subplan
(TAS) in some of the existing CSS but also some new schemes.
Some notable CSS launched post New Economic Policy were Operation Blackboard, Non-Formal Education and Midday
Meal (MDM), District Primary Education Programme (DPEP), Sarva Shiksha Abhiyan (SSA), Educational Technology
(ET), Environmental Orientation of School Education, and Integrated Education of Disabled Children (IEDC). Some of
the recent ones were introduction of schemes such as NPEGEL, Information and Communication Technology in 5000
Schools, Nutritious Meal Programme for High Schools, and S.U.C.C.E.S.S.
External Aid in EducaƟon
Following the internationally declared
objective of achieving “Education for All”
in the Jomtien Conference (1990), global
aid agencies increased their aid commit-
ments to primary education11
. However, it
is difficult to measure the amount of aid as
it mainly comes through the Department
of Education, Government of India, and
released either through state budgets or via
a direct route to project societies or SIS (State Implementing
Societies) of CSS. The programmes with external aid compo-
nents as mentioned in the DDG of all departments taken
into account include,
Special Education Programme, which is a 100 per
cent externally aided project for the improvement of
elementary education in the state.
Nutritious Meal Programme in Primary schools and
High Schools
Sarva Siksha Abhiyan (SSA)
Technical Education Quality Improvement Project
(TEQIP)
11 Mehrotra, Santosh, Panchamukhi, P R, Srivastava, Ranjana and Srivastava, Ravi. Universalising Elementary Education in India: Uncaging the Tiger Economy, Oxford
University Press, New Delhi, 2005
Figure 2.7: Share of External Aid in Expenditure on
EducaƟon Sector (in per cent
3.00
2.50
2.00
1.50
1.00
0.50
0
2004-05 2005-06 2006-07
Table 2.9: Plan and Non-plan Expenditure on EducaƟon in Central and State Sectors
Year Plan Expenditure Non Plan Expenditure
Share of State Total Share of Centre Share of State Total
(per cent) Expenditure (per cent) (per cent) Expenditure
2004-05 13.11 86.89 1234.6512 0.00 100.00 3818.6714
2005-06 13.25 86.75 1210.0119 0.04 99.96 4388.3581
2006-07 20.62 79.38 1413.927 0.03 99.97 5123.4967
Source : Budget EsƟmates 2006-07 to 2008-09
Table 2.10: External Aid in Expenditure on EducaƟon Sector
Year Rs lakh Per cent
AE, External Aid Share of External
EducaƟon in AE, EducaƟon Aid in EducaƟon
2004-05 505,332.26 13,537.17 2.68
2005-06 559,837 7,741.47 1.38
2006-07 653,442.37 12,308.73 1.88
Source: Budget EsƟmates 2006-07 to 2008-09

30
Government Residential Centralised Schools under Rural Poverty Reduction Programme (RPRP)
Government Residential Centralised Schools under District Poverty Initiatives Programme (DPIP) I and
Velugu Project-Residential Schools under Rural Poverty Project-DPIP II
The share of external aid in Child Education sector, as evident from the chart and table 10, has decreased from 2.68 per
cent in 2004-05 to 1.38 per cent in 2005-06 followed by an increase to 1.88 per cent in the next year. In spite of the intro-
duction of Mid-Day Meal scheme in 2005, the decline in the share of external aid in actual expenditure in 2005-06 was
due to a fall in allocation in DPIP I and DPIP II projects (Social Welfare Department) by 58 per cent and 100 per cent
respectively. Similarly, the reason for a hike in the share of external aid in the actual expenditure of 2006-07 was due to ex-
tending MDM under SCP and TSP and also because of allocation the new towards Government Residential Centralised
Schools under RPRP.
Major Schemes/Programmes under Elementary EducaƟon
Some new schemes started in 2008-09 by the state government include
Scheme for Universalisation of Access to and improvement of Quality Education at Secondary Stage
(S.U.C.C.E.S.S): Its main objective is to develop High Schools with top class facilities comparable to private corpo-
rate schools. An amount of Rs 1,000 crore has been provided for this in 2008-09.
Rural Residential Public School: Under Public-Private Partnership and to provide high quality education to the
academically gifted children in rural and semi-urban areas in the state, the government would start one school in
every rural/semi-urban Assembly constituency in each district. Rs 10 crore has bee provided in 2008-09.
Training of Teachers for English Medium High School: Aimed at providing qualitative and quantitative knowledge
to the teachers teaching in English medium in the government and Local bodied schools in the state to enhance the
student strengths in those schools with a provision of Rs 1 crore under non state plan, SCP and TASP.
NutriƟon Meals Programme (Mid-Day Meal)
This programme covers primary and upper
primary school children in government/
local bodies and aided institutions through-
out the state. Besides providing MDM to
students, the scheme has components for
providing drinking water units and con-
structing kitchen sheds in school premises.
In 2008-09, the state announced extending
the scheme to high schools in selected Edu-
cationally Backward Blocks (EBBs) as well
as other blocks under secondary education head and accordingly, provision has been made in 2008-09 as per the DDG of
the department..
Table 2.11: Physical Targets and Achievement under MDM Scheme
Year No. of children No. of children Coverage of
Targeted Actually Covered Cooked Meal
(in lakh) (in lakh)
22004-05 76.26 52.45 Across the State
2005-06 78.05 55.00 Across the State
2006-07 70.00 55.00 Across the State
Source: Budget EsƟmates 2006-07 to 2008-09

31
CAG ObservaƟons on the Performance of MDM in 2007-08
As against the total budget provision (including the Central assistance) of Rs 1,702 crore for implementation of the
MDM scheme during the five-year period of 2003-08, Rs 1,003 crore (59 per cent) was spent…. Funds sanctioned/
released were found to be far in excess of actual requirement…
Central assistance (2004-05) of Rs 76 crore intended for cooking cost was not released to the district authorities as
of March 2008… About 95 per cent of the funds released by the Centre towards construction of kitchen sheds were
not spent… Deficiencies pointed out, such as unspent scheme funds lying in bank accounts (Rs 6.03 crore), diver-
sion of scheme funds (Rs 4.46 crore), irregular drawal of Rs 10 crore by Deputy Educational Officers (DEOs) on
abstract Contingent bills…
No system was in place to cross verify the figures of enrolment and attendance furnished by schools…enrolment
figures inflated while seeking allotment of rice resulting in excess lifting of rice…
… no mechanism to assess actual utilisation of foodgrains …no periodic verification of rice stocks was conducted
by DEOs though prescribed. Rice stocks of 110,305 MT had accumulated at State Civil Supplies Corporation…
Utilisation of fair quality of foodgrain in preparing midday meals for the school children was not ensured…
22 per cent of the schools (17,456 schools) in the State had no water facility; 67 per cent (53,516 schools) had no
kitchen sheds for cooking mid-day meals…in the eight test checked districts none of the schools were provided with
cooking utensils… 84 per cent of the schools had no gas connection.
M V FoundaƟon Social Audit finds MDM Working Badly
A social audit of the MDM was conducted by M V FoundaƟon in partnership with the government of Andhra Pradesh
and SPIU, educaƟon, in five districts of Andhra Pradesh – Adilabad, Kurnool, Mahabubnagar, Prakasam and Viziana-
garam surveying 261 schools in two mandals selected in each district. The team found several problems restricƟng
implementaƟon of the scheme. These include over-reporƟng of students being given MDM on the aƩendance regis-
ter; problems in selecƟng and funcƟoning of the cooking agency which impact the quality of the meal; corrupƟon in
transporƟng the rice to the school, affecƟng both quanƟty and quality as the rice was mostly stored in the dealers’
houses; and quality of rice being inferior to the prescribed “green mark” rice.
Kitchen sheds were available only in 52 per cent of the schools visited. Worse, 33 per cent schools had kitchen sheds
of bad quality with poor venƟlaƟon. Lack of utensils was noƟced in most of the schools. Children were not even
provided with plates for the meal, and they had to go bring a plate from home to eat at school! The overall standard
of meals was poor, with no weekly menu being maintained.
The most frequent complaints came from the cook who was not being paid on Ɵme or not paid according to the
per-child-per-day basis. None of the schools had received payments in advance as per the state government norms.
In most of the mandals, bills were being paid aŌer a delay of 3-5 months. The cooking agencies complained that
they had to take loans at high interest to meet their expenditure, which forced them to cut corners on quality and
quanƟty. Yet, they also complained that the cooking cost reimbursement was neither adequate to feed the children
a good meal nor enough to compensate them as this was their prime occupaƟon taking up five hours or more in a
day. The net result of all this was that children were doing without eggs or other non-vegetarian proteins, and even
cooking oil someƟmes.
Thus, the Social Audit found a strong case for a drasƟc change in the MDM system and process. In the absence of a
wage component, training and guidance to the cooking agency on the weekly menu or managing the cooking cost,
and proper monitoring of the amount spent on food, the children, who were the ulƟmate beneficiaries, were suffer-
ing needlessly.

32
…no indicators put in place by centre and state government for measuring the impact on nutrition and health…
no assurance that the stipulated nutritional requirements are being met…no periodic health check-ups by district
authorities…
Mid-day meals were not provided during summer vacations in drought prone areas though stipulated in guide-
lines… not implemented in any of the Educationally Backward Blocks despite availability of Central assistance
(Foodgrain of 2,765 MT and cooking cost of Rs 36.86 crore for the period October 2007 to March 2008)...

33
Development is considered the most essential right for children, akin almost to the right to life, as without proper devel-
opment of body and mind in childhood, all other rights would become meaningless. This means children need to be pro-
vided with opportunities that help them to explore, manipulate and learn at their own pace and in their own way, making
it necessary for pre-school activities to be designed in a way so as to address the physical, cognitive, social, emotional and
creative needs of children.
Child Development Suffers from
Poor Allocation, Spending
“The first three years of a child’s life set the paƩern for their futures. During this period children develop their ability
to think, speak, learn and reason….And the foundaƟon is laid for their values and social behaviour as adults. For many
children under five, care and nutriƟon – or lack thereof – can mean the difference between life and death.”
“Early childhood programmes make for strong foundaƟons and pay high dividends…Each year in the developing
world, over 10 million children die before age five of mostly preventable diseases. Early childhood programmes that
combine nutriƟon, immunisaƟon, health, hygiene, care and educaƟon can change this.”
Ann M. Veneman, UNICEF ExecuƟve Director, and Nicholas BurneƩ, ‘Global Monitoring Report’ Director, at the launch of the UNESCO ‘EducaƟon for
All Global Monitoring Report’ at New York

34
Yet, in India, besides the efforts to achieve universal primary
education that dominates national and international policy
agendas, minimal attention is paid to what happens to the child
in the first six years of life. A lack of proper link between early
child care and the formal school system leads to slow learn-
ing, poor performance in schools, lack of confidence and high
dropout rates in school.
How Developed are Children in the State
As per Census 2001, there are 10.2 million children in AP below 6 years of age.
Out of every thousand newborn children, 64 die within the first year in rural AP.
Some 34 per cent children under three are stunted and 37 per cent underweight.
The rapid increase in the number of children infected with HIV/AIDS undermines the right to survival of children
in the state. HIV/AIDS prevalence in AP antenatal clinics was reported at 2 per cent in 2005 as against 1.25 per
cent in 2002.
Some 7.3 per cent of babies in AP are born with birth weight less than 2.5 kg.
A declining female sex ratio in the 0-6 age group, from 975 per 1,000 boys in 1991 to 961 per 1,000 boys in 2001,
indicates continuing gender discrimination through selective birth abortion and infanticide in the state.
In this chapter, we focus on early childhood care, education among pre-school children and other schemes for overall de-
velopment of women and adolescents that indirectly impact children and do not fit into education, health or protection.
For instance, we have included a programme called Swayam Siddha, which aims at all-round empowerment of women
through establishment of self-reliant Self-Help Groups (SHGs), because this would help the adolescent age groups via
increased access to, and control over, material, social and political resources.
AllocaƟon and Expenditure on Development
Table 3.1, as well as the figure, shows how budget allocation
for development sector has steadily increased over 2004-05
to 2007-08, especially rising sharply by Rs 1,382.76 crore
in 2008-09, which was a 90 per cent hike over the previous
year. However, on a closer look, we find that although the
allocation for development has increased in absolute terms
between 2004-05 and 2006-07 by Rs 182.11 crore, as a
percentage of the total state budget, it has decreased from
1.88 per cent in 2004-05 to 1.80 per cent in 2006-07. Also,
in 2008-09, the 90 per cent hike in allocation was spurred
by introduction of schemes as well as higher allocation for
Nutrition Programme and the Integrated Child Develop-
ment Scheme (ICDS). As a result, the share of the sector
went up to 2.91 per cent in 2008-09.
Early childhood is a Ɵme of remarkable brain devel-
opment that lays the foundaƟon for later learn-
ing…80 per cent of brain development happens
before the age of three…
Aid at AcƟon, Early Childhood Care and EducaƟon: Right from the
Start, December 2006
Figure 3.1: BE, RE and AE in the Development Sector, AP
BfC 2004-05 to 2008-09
0
500
1000
1500
2000
2500
3000
2004-05 2005-06 2006-07 2007-08 2008-09
Budget EsƟmate Revised EsƟmate Actual Expenditure
3500

Budget for Children in Andhra Pradesh 2004-05 to 2008-09

Budget for Children in Andhra Pradesh 2004-05 to 2008-09

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