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Social Sector Focus

by S.K.Shanthi, Director, India Development Foundation, New Delhi

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India Development Foundation
Budget 2016-17
March 5, 2016
Social Sector Focus
S.K. Shanthi
Major Takeaways
GFD at 3.5% of GDP
Revenue Deficit at 2.3% of GDP
Two out of Nine Pillars mentioned by FM
• Social Sector including Healthcare: to cover all under
welfare and health services;
• Education, Skills and Job Creation: to make India a
knowledge based and productive society;
• Increase in total central outlay 0.03% of GDP
Proposals for Social Sector (2016-17)
Social
• MGNREGA Rs. 38,500 crore
• Swacch Bharat Abhiyaan: Rs.9,500 crore.
• LPG for female members of family: Rs 2000 crore for 5 years for BPL families.
• Crop Insurance Scheme with premium @1-1.5%
Health
• A new health insurance scheme to cover upto 1 lakh per family. For senior citizens
additional cover of Rs 30,000
• National Dialysis Service Program to benefit 2.2 lakh renal patients added every
year in India.
• 300 generic drug stores to be opened
Education
• Promoting entrepreneurship among SC/ST through schools and colleges: 500
crore
• 1500 multi-skill development centres to skill 1 crore youth in 3 years: 1700 crore
• 62 new Navodaya Vidyalayas to provide quality education. The coverage will be
100% of all districts.
• Digital literacy Mission to be launched to cover 6 crore additional rural
households
CENTRAL PLAN AND NON-PLAN EXPENDITURE ON SOCIAL
SERVICES – Per Cent of GDP
Source: Budget Document (MOF,
GOI)
THE STATE GOVERNMENTS EXPENDITURE ON SOCIAL
SERVICES – Per Cent of GDP
Source: RBI
SECTOR-WISE EXPENDITURE OF CENTRAL SECTOR BUDGET –
Per Cent of total Central Outlay
Source: Budget Document (MOF,
GOI

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Social Sector Focus

  • 1. India Development Foundation Budget 2016-17 March 5, 2016 Social Sector Focus S.K. Shanthi
  • 2. Major Takeaways GFD at 3.5% of GDP Revenue Deficit at 2.3% of GDP Two out of Nine Pillars mentioned by FM • Social Sector including Healthcare: to cover all under welfare and health services; • Education, Skills and Job Creation: to make India a knowledge based and productive society; • Increase in total central outlay 0.03% of GDP
  • 3. Proposals for Social Sector (2016-17) Social • MGNREGA Rs. 38,500 crore • Swacch Bharat Abhiyaan: Rs.9,500 crore. • LPG for female members of family: Rs 2000 crore for 5 years for BPL families. • Crop Insurance Scheme with premium @1-1.5% Health • A new health insurance scheme to cover upto 1 lakh per family. For senior citizens additional cover of Rs 30,000 • National Dialysis Service Program to benefit 2.2 lakh renal patients added every year in India. • 300 generic drug stores to be opened Education • Promoting entrepreneurship among SC/ST through schools and colleges: 500 crore • 1500 multi-skill development centres to skill 1 crore youth in 3 years: 1700 crore • 62 new Navodaya Vidyalayas to provide quality education. The coverage will be 100% of all districts. • Digital literacy Mission to be launched to cover 6 crore additional rural households
  • 4. CENTRAL PLAN AND NON-PLAN EXPENDITURE ON SOCIAL SERVICES – Per Cent of GDP Source: Budget Document (MOF, GOI)
  • 5. THE STATE GOVERNMENTS EXPENDITURE ON SOCIAL SERVICES – Per Cent of GDP Source: RBI
  • 6. SECTOR-WISE EXPENDITURE OF CENTRAL SECTOR BUDGET – Per Cent of total Central Outlay Source: Budget Document (MOF, GOI
  • 7. Comparison with OECD Countries During the period 2007-2014 Average spending on Social Sector in OECD countries: 22% of GDP Highest – France: 32.5% Lowest – Mexico: 8% India – highest: 7.67% of GDP in 2014 India –Average during 2007-2014: 7.03% HDI – India Ranks 130 Outlays on Social Sector need to increase since it has a direct bearing on HDI
  • 8. In Conclusion • Social Sector development is largely in the domain of states and local bodies – Are they up to the task? • We need a scientific/evidence based approach to social sector policy making • Crop Insurance ? • School drop out problem (HDI indicator) OGIP • ‘Sunset clause’ must apply to beneficiaries rather than schemes. After 10, 15 years if someone is still BPL, we must make an effort to find out why and address those issues.