Nov vol44 no11

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( Development Diary )
Scientists Awarded
An Indian researcher, Surinder K. Vasal shares
this year's world food prize with a Mexican cereal
chemist for developing maize varieties with higher
protein content that help prevent malnutrition and
protein deficiency disorders in developing
countries.
FII Investments
Foreign investment in Indian Capital Markets is
expected to go up during 2000-0 1due to relaxation
of foreign holding in companies to 40 per cent,
higher GDP and foreign export projection.
"The picking up of exports growth and rise in the
level of forex reserves to $33 billion along with
higher GDP growth during 2000-0 I is expected to
build up and improve foreign institutional
investment", SEBI has said in its annual report of
1999-2000.
Indian Handicrafts Go Online
The country's first extensive literature site aims to
promote business.ofIndian handicrafts online and
interlink the craftsman and the customer directly.
The site would promote new skills in which the
product could be customised through an active
interaction with the craftsman directly. The site
allows the user to customise products or design
services geared tQwards interiors and life style
products like furniture/ceramic ware and textile
products.
U.K. Likely to Take up 200 Projects in India
Britain is likely to sign up for 200 new projects in
India in the next two years under the Indo-British
partnership programme.
A new programme enterprise initiative India (Ell),
has been launched in the country for this purpose.
Many key priority sectorshave been identifiedforthe
Ell progranune likeoil and gas, telecom, infonnation
technology, chemicals, automobiles, agriculture and
envirollinenttechnology. Britishexportsto Indiahave
risen by 45 percent in 1999-2000 over the previous
year. The focus now would shift from organizing
trade fairs and exhibitions to bringing together
individual finns on a COlmnonplatfonn.
Enough Fuel Stock to Generate Power
India has enough stock of nuclear fuel to generate
three million units of electricity annually for 150-
200 years. The Chairnlan and Managing Director
of Nuclear Energy Commission has said that the
NEC has plan to agument its generating capacity
to 7000 MW during the next six years for which~
at least Rs. 5000 crore was required.
World Bank Sanctions $ 62 m Loan
The government has signed up a $ 62 million loan
agreement with the World Bank for the
"Telecommunications Sector Refonns Technical
Assistance Project". The Indian government will
contribute $ 10 million towards the project. The
project consists of automation of spectrum
management and monitoring system (ASMMS)
for the wireless planning and coordination (WPC)
wing, apart from capacity building at the
Department of Telecommunications (DOT)
headquarters. The project also envisages capacity
building for Telecom Engineering Centre (TEC)
and Telecom Regulatory Authority of India
(TRAI). This proj ect is expected to bring anumber
of benefits, since the automation and
modernisation of spectrum management will result
in more efficient use of this scarce resource, faster
assignment of frequencies, and more effective
monitoring of un-authorised operations. The
strengthening of the TEC will provide better
support to DOT for policy and licensing functions.
TRAIITDSAT component ofthe proj ect will result
in better regulation of the Telecom sector.
Courtesy : Newspapers

November 2000 Kartika-Agrahayana, 1~22. Vol. 44: NO.11 .ISSN .•0971,;8400
•
qOlono
A DEVELOPMENT MONTHLY
4 STEPPING UP GROWTH IMPERATIVE
K.R. Sudhaman
7 WORK AFTER RETIREMENT
Jayashree
10 CONVERGENCE FOR SYNERGY-ELEMENTARY
EDUCATION
Nandula Venkateswarlu
15 FINANCE COMMISSION RECOMMENDATIONS: SOME
PREDICAMENTS
V.K. Srinivasan
Chief Editor: P.N. Dwivedi
Editor: Mahadev Pakrasi
Assistant Editor: Madhu R. Sekhar
Sub Editor: Manogyan R. Pal
Senior Correspondents:
Ahmedabad: Y.P. Solanki
Calcutta: TX. Sarkar
Bangalore: M.N. Shankar
Mumbai: Monideepa Mukerji
Guwahati: R. Talukdar
Hyderabad: PJ. Sudhakar
Chennai: V.c. Rukmani
Thiruvananthapuram: P. Kesavan
Joint Director (Prod): D.N. Gandhi
Circulation & Advertisement Manager:'
P.C. Ahuja
Cover: M.M. Malik
22 NATIONAL COMMISSION FOR WOMEN-AN APPRAISAL
Leena Mehendale
24 WOMEN WELFARE AND SOCIAL DEVELOPMENT
B.K. Pattanaik
28 FEMALE HEADED HOUSEHOLDS: A'STUDY
Ranjay Vardhan
32 DISABLED PERSONS IN URBAN AREAS: ISSUES AND
CHALLENGES
Ram Ratan Ram
35 ROLE OF WOMEN IN AGRICULTURE
Bhagirathi Dash
38 LANDSLIDES: SUGGESTIONS TO REDUCE DAMAGES
Dipanjan Ghosh
40 PINEAPPLE CUL TIV ATION IN TRIPURA: A STUDY
Sanjoy Ray
45 BOOK REVIEW
YOJANA seeks to carry the message of the Plan to all sections of the people and promote a more earnest discussion on problems of sociai 'and economic development.
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The views expressed in various articles are those of the author's and not necessarily of the government.

Stepping up Growth
Imperative
K.R. Sudhaman
to achieve this high growth
agriculture whose growth declined
sharply last year, will have. to grow at .~
5.7 per cent in the next two years, .
manufacturing, 10.25 per cent, trade and
transport 7.85 per cent and
communications by 8.60 per cent.
Mr K.R. Sudhaman is Associate Editor (Economics), P.r.I.
Globalisation made il
imperative that
industry and"
agriculture became
in tern atiQn ally
competitive and for
this a second
generation reforms
are necessary in
in;dustry,agriculture,
infrastructure,
financial sector and
labour market.
T
HE IX PLAN Midterm
.
. Appraisal as it has minced no
words in emphasising that
everything is not fine with the economy
;Which4~s not suceeded in achieving the. -',,,. .
planned growth in the first three years
of the Five Year Plan (1997-2002). GDP
growth during the first three years of
the Plan (1997-2000) is estimated to be
6.2 per cent per annum on an "average
as against a target of 6.5 per cent
because of significant shortages in
growth performance in agriculture,
mining and quarrying and
manufacturing sectors. It also points out
that domestic savings and investment
have fallen short of targets by over five
per cent. The entire shortfalls are in the
public sector, where public savings
recorded a shortfall of 70 per cent and
public investment a shortfall of 23 per
cent. Besides investment in agriculture
and allied services, mining and financial
services have fallen short of the targets
by over 20 per cent.
Going by all these statistics, in the
final two years of the Plan, both
public investment and public savings
have to recover strongly if plan
targets were to be attained, the
voluminous document says adding
the targeted growth 6.5 per cent
annual growth could be achieved only
if the economy grew by 7.1 per cent
in the next two years. Also it is
imperative to reverse the decline in
Center's plan outlay-GDP ratio. The
Midterm Appraisal which was
approved by the full Planning
Commission headed by the Prime
Minister A.B. Vajpayee estimated that
The other worrisome area identified
is the deterioration bfthe fiscal position
which is primarily due to serious
slippages in the tax reven"ues,
particularly at the Centre. The tax~GDP
ratio of the Centre was expected to be
10.4;per cent ofGDP if 1999-2000, but
the realised ratio is only about 8.7 per
cent. Despite an expected revival in the
tax-GDP ratio, it is unlikely that the
central budget support to the Plan could
be maintained at the target level. It is
estimated that only 87 per cent of the"
Plan target may actually be attained 0'"",...
the end of the Plan period. This "."
compared unfavourably with the 93 per
cent realisation during the Eighth Five
Year plan. Total public investment as a
result, would be about 81 per cent of
plan targets. During the VIII Plan the
realisation in public investment was
85.4 per cent of the target.
As though these statistics were not
enough, the Mid-term review said there
has been a shortfall of 8.6 per cent in
the Gross Budgetary Support (GBS) of
Rs. 2,05,290 crore provided by the
Centre for the Plan. Only a little below '1
50 per cent of the projected budgetary,
resources to be provided by the Centre
for its own Plan could be made available
during the first three years of the Ninth
Plan. The Intema:I Extra Budgetary
Resources (IEBR) ofRs. 133,403 crore
raised by the Central Public Sector
Enterprises (CPSEs) were also lower by
18 per cent as compared to plan
projections during the first three years
of the Ninth Plan. Therefore, to impart
momentum to the economy, the Gross
Budgetary Support annual plan for
2001-02 should make up for the
shortfall so far and this requires at least
a 40 per cent increase over the current
year's budgeted GBS. -,
4 YOJANA November 2000

Due to serious slippages in public
investment in physical and socialI
-, infrastructure, the pipeline investment
for the X Plan will be low, it warns
emphasising this may weaken the
possibility of significant acceleration in
the growth rate during the plan period.
Noting that the social
indicators of the economy
too were equaHy bad, 'the
Mid-term Appraisal called
for restructuring of
poverty alleviation
programmes.
N otwi thstanding these critical
observations about the economy, the
~~rime Minister Mr. Atal Bihari
Vajpayee, who is the Chainnan directed
the Planning Commission to fonnulate
X Plan to achieve an average nine per
cent growth with a view to eliminating
poverty in 10 years. As Mid-term
Appraisal serves as the basis for ~he
exercise to formulate the X Plan, the
Deputy Chainnan, Mr. K.C. Pant was
right in saying "we must link Plan
assistance more and more to
performance and accountability both at
the Centre and states. In the light of
Prime Minister's observation to step up
growth to move on high trajectory, it is
imperative hard and difficult decisions
are in store in the coming years to put
the economy back on the rail.
The Planning Commission was
apparently aiming about 8 per cent
,growth with an attempt at equitable
distribution across the states for the X
Plan. It has planned to double the
growth in non-performing states of
Uttar Pradesh, Bihar arid Orissa through
massive improvement in level,
efficiency and climate of investment.
The slow down in agriculture growth
has to be reversed through significant
shift in policies. There is need to
increase investment ratio from 24 per
cent at present to about 30 per cent per
annum. The target is to raise foreign
YOJANA November 2000
investment for five billion dollars per
year a~the start ofthe Plan to 10 billion
by 2006, This requires consi'derable
fiscal consolldation and an irivestor
frienaly climate. '
An/eight per cent growth itself
requires tremendous effort and if this
has to be pushed to nine per cent as
directed by the Prime Minister one
could imagine how much more the
resources had to be stretched to achieve
it.
What is most important for all these
substantial improvement in fiscal
perfonnance and the main task ahead
on this front is that both the Centre and
states would have to take strong action
in five major areas. Raise combined
tax-GDP ratio by at least three
percentage points to 12.5 per cent by
tenninal year of X Plan which is one
per cent higher than achieved in the VII
Plan.
Secondly, the government would
have to be downsized through zero-
based budgeting of both Plan and Non-
Plan expenditure. Here it is pertinent
to note that some of the schemes which
have outlived their utility are still being
carried forward from Fifth Plan
onwards. So it is imperative that budget
provisions are optimised through re-
prioritisation and convergence of
schemes and programmes.
Thirdly, user charges have to' be
increased particularly in power,
irrigation, urban water supply,
education, health and 'government
housing. The pe'rformance of State
Electricity Boards and State Road
Transport Corporations among state level
public enterprises has been quite dismal.
Fourthly, there has to be a major
effort to privatise Public Sector
Undertakings and speeding up of the
disinvestment programme.
Lastly, ever expanding subsidies will
have to be drastically pruned to limit to
only targeted groups.
Noting' that the social indicators of
the economy too were equally bad, the
Mid-term Appraisaf called for
restructuring of poverty alleviation
programmes. IRDP should become a
micro-finance programme to be run by
banks with no subsidy on the lines of
Rashtriya Mahila Kosh. JRY funds to
Gram Sabha only when the people
contribute 25 per cent EAS should be
replaced by food for work programme
only in areas of extreme distress. Jobs
should be created elsewhere through
productive works, like rural roads,
watershed development, rejuvenation of
tanks, afforestation and irrigation.
There should also be a focus on
strengthening the economy of the
marginal and small fanners, forest
gatherers, artisans and unskilled
workers.
On institutional reforms it suggested
initiation of core plans for the Centre
and states besides linking allocation of
some incremental increase in budgetary
support to perfonnance indicators. It
emphasised the need to weed out,
converage and revamp overlapping
development programmes and focus on
exploiting inter-sectoral synergies. It
also stressed on strengthening the
The Mid-term Appraisal
has also recommended
removal of all controls like
movements, forward
trading, stocks, exports
and processing on agro-
economy through Central
Act besides removal of
wheat and rice from
Essential Commodities
Act.
monitoring mechanism for both Centre
and state sector s'C11emes in
collaboration with concerned agencies.
The Mid-term Appraisal has also
recommended removal of all controls
like movements, forward trading,
st6cks, expbrtsand processing on agro-
5

economy throug~}Central Act besides
removal of wheat and rice from
Essential Commodities Act. It wanted
that labour laws are reviewed to permit
hiring of contract labour with a view to
improving labour productivity. It
underlined the need to pursue civil
administration and judicial reforms
focusing on issues like greater
transparency, right to information, strict
performance norms' and accoutability.
Suggesting some poliCy'changes, the
review said large investment is needed
in infrastructure. Estimated capacity
addition in power for the X Plan should
be around 50,000 mw and this required
Rs. 350,000 crore at today's prices.
With stagnant domestic crude oil
production, oil imports might be 120-
130 million tonnes in 2006-07. At
today's prices it amounts to $ 35 to 40
billion. This w0!:11dhave implications
on the country's balance of payment
situation. Hence one could not afford
make the Plan a residual item of public
expenditure, it observed.
Regarding Railways, ~tsaid the~ewas
a necessity to rationalise tariff structure
over five years, set up independent Rail
Suggesting some policy
changes, the review said
large investment is needed
in infrastructure.
Estimated capacity
ad(fition in power for the
X PI~~'should be around
50,000 mw and this.
required Rs. 350,000 crore
at today's prices.
Tariff Authority besides corporatising
production units. Cess on petrol and
diesel should be made ad valorem to step
up road development. Private sector
should be encouraged for improving road
transport system. On ports,
corporatisation of major ports should.be -~.
expedited. -
Summing up the difficult economic
scenario and the task ahea4,' the Mid-
term Appraisal said, globalisation made
it imperative that industry and-
agriculture became internationally
competitive and for this a second
generation reforms are necessary in
industry, agriculture, infrastructure,
financial sector and labour market
Special focus on~mployment
generation should be given for faster
poverty reduction. More resources
should be provided for social sectors,
infrastructure and social security
besides carrying out systems reforms.
It said unnecessary procedural controls
and regulations which sti~
entrepreneurial energy, breed corruption
and affects common man should -be
eliminated. 0
Attention Contributors
• Yojana welcomes articles on contemporary socio-economic topics. The write up may
be upto 1800 words or 6-7 pages in double space. It should be in original and not a
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Hence, it is advisable to retain a copy of the article mailed to Yojana.
6

Jayashree
Work A.fter Retirement
Dr Jayashree is Reader, Deptt. of Sociology, K.U.K.R.C.P.G.Centre, Belgaum,
l Karnataka.
Retirement should
not be considered as
the end of active life.
Retirees should think
that retirement is a
beginning of a
different type of life
style where a retiree
can pursue creative
activities by using his
innovative ideas in a
more effectivea~d
productive manner.
R
ETIREMENT, representing a
'.. social and individual problem,
was a powerful theme in early
gerontological writings. Extensive
studies have been conducted in this
issue. However, there are hardly any
research studies on work after
retirement.
Research studies pertaining to work
after retirement concentrated on three
major areas:
1. Studies which stressed the need of
employment after retirement.
2. Studies concentrated on
determinants of work after
retirement, and '
3. Re-employment rate among
different categories of people.
Some of the research studies have
confirmed the point that work after
retirement is a prerequisite for the
overall development of the elderly. It
is pointed out that work is an essential
factor for maintaining health and
happiness after retirement.
A study titled "You are younger than
you think" suggests that most
physicians agree that essence of any
treatment ofthe aged is to keep them at
work. Idleness is the greatest enemy
of the aged and presents them with their
ticket to death.
Entry into work force after
retirement depends on many factors.
This issue has been highlighte;d by
many researchers. It is said, work after
retirement does not depend on ready
availability of jobs, but it is related to a
personal dislike of retirement, intention
to work after retirement, pre-retirement
involvement in work and presence of
younger ~orking friends. Health status
as a major determinant to enter into
work force has been highlighted by
many. Anational survey by the Ministry
of Pensions suggested that ill health was
a major reason peopl~ gave for leaving
work and~an important reason as well
in preventing many from returning to a
paid occupation.
Retirement conveys different
meaning to people of different
occupational backgrounds, depending
on their work condition, family life,
financial position, role of work and
work associated power ~d status. In a
classic study on retirement, researchers
found that people with large incomes,
more education and occupations of
higher social status preferred to continue
working longer than those lower on the
economic, educational and occupational
scales. Another study reveals that blue
collar workers tend to look forward to
retirement while white collar
professionals tend to resist retirement.
, Academicians continue to engage in
professional activities. Managers,
proprietors, officials and clerical sales
groups tend to retire somewhat later
than other categories of employees. The
most pronounced early retirement was
noted among unskilled workers while
professional and semi.professional
retired late.
Now more and more old people are
entering into labour force after
retirement and they prefer to remain
productive and active. For a majority
of retirees, it is a time to find a new
career as well as experience new levels
of social status and creativity.
A structured questionnaire was
prepared to probe into the social and
economic conditions ofthe respondents.
The questionnaire was administered
through interview method. Analysis of
data is presented through percentages.
Further, the Chi-square test has been
applied at appropriate places to probe
deeper analysis.
7

,,
Respondents of the present study
were in the age group of 58.-65 years.
Majority bf them are Hindus. Most of
them were married and having their
spouse alive. Fiftyfive per ~ent
respondents were graduates, 26 per cent
respondents had their secondary
education and 19 per cent were highly
qualified (Post graduates and
professional degree holders).
Attempts to seek re-employment is
an herculean task after retirement. It
shows not only a zeal.toreturn to some
form of gainful employment but also a
retiree does not wanno remain idle. For
some, it means .additional income which
is much needed after retirement. For
society re-employing retired people
means exploiting their rich experience.
Retired people venture into re-
employment for many reasons.
Longevity and improvenlent in medical
and health sciences are the two vital
societal aspects involved in-the issues.
Besides these, many personal and
organizational factors determine the
retirees entry into work force after
retirement.
Personal Factors
1. Sound health of the retirees.
2. Status and position of the pre-
retirement occupation.
3. Educati0!1 of the respondents.
4. Income of the respondents
(inadequate).
5. Existence of major financial
obligations.
6. Non-existence of hobbies.
7. Not having children ....
8. Adult working children are settled
and staying away from them.
9. Daughters are married (if retirees
have only daughters).
10. Changing attitude towards
retirement.
11. Like to stay away from home for
some hours in a day.
8
Organizational Factors
1. Availability of jobs.
2. More flexible pattern of work.
3. Flexible time schedule.
4. Less obligatory, lack of res-
ponsibility and less demanding
jobs.
5. Proximity of work place;
6. Convenient working hours.
Thus, societal, personal and
organizational factors contribute the
respondents to enter into work force
after retirement. .
In the present study 45.3 per cent of
the respondents have joined work force
after retirement.
1. Retirees may want to relax.
2. Non-availability of suitable jobs.
3.' Deteriorated health status.
4. Adult children do not allow them
to work.
5. To take up neglected hobbies.
6. Distance.from work.
7. Adequate income.
8. Active member of club/association!
NGOs.
9. Looking after the children of
working sons and daughters.
Physical well being and ability to
work are closely linked. Though re-
employment after retirement depends
on many factors, health status of the
retirees is an important pre-requisite
factor to join labour force after
retirement.
There is an intimate relationship
between education of the respondents
and re-employment after retirement.
The number of respondents who
have joined the work force after
retirement are founa to be less in case
of respondents who had their primary
education,. whereas, number of
respondents. who have joined the work
force after retirement are found to be
more among respondents who had
higher educational attainment.~-
Financial Obligations
Some trivial but significant factors
such as existence of financial
obligations after retirement and non-
existence of hobbies may also constitute
the cause for the retirees to join work
after retirement. It is hypothesized that
existence of major obligations after
retirement may be one of the reasons
for respondents to enter into work force
after retirement. Ofthe 45.3 per cent re-
employed respondents 34.3 per cent
respondents have financial obligations
of various kinds ranging from
daughter's marriage to house
construction. Thus, it is quite obvious
that the existence of financia-'
obligations is one ofthe solid causes fofT~
the respondents. to enter into the work
force after retirement.
Retirees join work force not as a
primary bread winner of the family.
Moreover, there is a close relationship
between age and work. Jobs organized
around new technologies tend to be
populated by younger workers.
Keeping these ideas in mind data has
been collected to see how many have
engaged in full time job after retirement
and how many have engaged in part-
time job.
The given table indicates that 16.7
per cent ofthe respondents are working
as full time employees and 28.7 per cent
are working as part-time employees.
The percentage of full time occupants
are found more in case ofUIG (8%). It
may be because of their previous
occupational status, rich work
experience, higher education and sound
health. Moreover, the job avenues for
these people are more in cities, so they
have easily ventured into a job which
suits'their education, experience and
status.
For 28.7 per cent respondents part- .
time job is more suitable and a
promising source of income. It is more -,

Respondents' Nature of Work After Retirement
Sl. Nature of Income Groups Total
No. Work LIG MIG UIG
- Fr ,% Fr % Fr .... % Fr %
1. Part time 24 8.0 32 19.7 30 1O.p 86 28.7
2. Full time 14 4.7 12 4.0 24 8.0 50 16.7
3. N.A. 62 20.6 56 18.7 46 15.3 164 54.6
Total 100 33.3 100 33.4 100 33.3 300 100.0
prevalent among the respondents
belonging to MIG (10.7%). It can be
viewed that retirees who have joined
part-time work prefer to work in a less
demanding, less obligatory- and more
flexible schedule of working hours
which are mostly found in' small scale
private organizations.
L .
/ " It is found that majority of the re-
employed respondents have adjusted to
retirement within six months after
retirement and non-working
respondents have taken more time to
adjust after retirement. Out of 45.3 per
cent re-employed respondents 30.3 per
cent have adjusted to retired life within
six months after retirement.
Hence, we may conclude that early
adjustment to retired life can be
attributed to their employment after
retirement.
Data was also collected on the
vicinity of work place preferred by the
respondents. Study showed that vicinity
of work place is an important
detenninant of respondents' work after
retirement. Majority ofthe respondents
who wanted to work, opted for a work
place located within the city of
Mangalore.
Major Findings
Work after retirement is an area
which has not been extensively studied
by gerontologists iIi India. There
pertinent issue is related to the
respondents' contentment in passing
leisure time, health, financial
obligations and adjustments after
f- retirement. The study showed that 45.3
;
YOJANA November ;WOO
per cent of the respondents are working
after retirement and a majority ofthem
belong to UIG. This study reveals that
there is a positive and affirmative
relationship between the health status
of the respondents and work after
retirement. Similarly, existence of
financial obligations and work after
retirement go together. Further, the
study reveals that respondents who have
obtained re-employment took less time
to adjust to non-working life as
compared to those who are not working
after retirement. This study further
probed into the work pattern of the
respondents. Out of 45:3 per cent
working respondents, 28.7 per cent are
working as part-time employees and
16.7 per cent are working as full time
employees.
Suggestions
Increasing longevity has opened a
number of new avenues and
opportunities for the aged and retired
people. Today, those whoretire not only
have a better standard of living than
their predecessors, but are much
healthieralso.
There is also a noticeable trend
among older people towards a more
youthful outlook on life and more
youthful behaviour. Thus, retirement
exhibits greater aspirations and promise
than ever before, as people'~
expectations fof happy and peaceful life,
increase. No doubt, work after
retirement is an obvious oJItcome' of
these new trends. ..
Study suggests some steps that may
be taken by the retirees who want to
pursue employment after retirement and
some recommendations for the planners
and policy makers.'
Retirement should be seen as a
nonnal event in life and preparation for
retirement should begin at least 5 years
prior to retirement. During these five
years they may think of re-employment.
They may join retirement planning
programmes which help retirees to
consider retirement realistically and
prepare for the changes in status and
roles that accompany it. In this
direction, government should think of
opening counselling centres where
retirees can be trained to accept
retirement gracefully.
Opportunity
Retirement should be taken as an
opportunity which offers to pursue
neglected hobbies and interests. They
should either engage in any productive
work or pursue a hobby which enhances
their positives thinking, confidence and
self-esteem. Some retirees of the
present study opined that'post-
retirement employment is more
encouraging and stimulating than their
paid careers before retirement.
Society should not condemn the
retirees who are working after
retirement. Stereotyped attitude
towards retirees should be changed.
Society should utilise theirpotentialities
in a more fruitful manner. Their rich
and varied experience of life will help
the society and nation.
.There is a definite relationship
between health status and work after
retirement. So retirees should follow
judicious diet, exercise, regular health
checkups, healthy life styles, practice of
yoga and meditation which reduce the
disease spectrum and facilitate to join
work after retirem~nt. .
As a policy matter government can
think of establishing resource centres
and re-employment bureaux for the
retirees. ..
(Contd. on Page 21)
9

10
Mr Nandula Venkateswarlu is Research Officer, Planning Commission.
Convergence, for
,Synergy-Elementary
Education
Nandula Venkateswarlu
There is a need for
converging several
schemes of
Department of
Education and the
.Central'departments
into a single
comprehensive
scheme to reduce the
cost of operation and
to improve flow of
funds for achieving
optimum utilisation
of resources of
elementary
education. '
T
HE NEED FOR a literate popu-
lation and universal educa-
tion for ~ll children (age group
of 6-14) was recognised as a crucialin-
, put for nation building and is given due
consideration in the Constitution as well
as in the successive Five Year Plans. In
spite of considerable progress
universalisation of elementary educa-
tion,-ensuring access to good quality
learning enviomment for children in the
age group of 6-14 years remains a
daunting task. According to Sixth All
India Educational Survey (1993),
11,574 ruralliabitations are indicated as
school-less habitations. At primary
stage, the estimated. number of out of
school children is about 3 crore and the
number at,upper primary stage is about
3.31 crore. The drop-out-rates are still
high at 36.3 percent for primary school
children and 52.7 percent for upper pri-
mary cla~ses.
At the same time, expenditure on
elementary education has increased
steeply during the last three Five Year
Plans Le. VI, VII, VIII Five Year Plans.
It has gone up from Rs. 841.74 crorein
VI Plan to Rs. 10,556.50 crore in VIII
Plan. The increase is more than eleven
times. Central sector'expenditure on
elementary education has increased
from 8.65 percent in VI Plan to 23.25
percent in VII Plan and it. has further
risen to 42.63 percent during VIII Plan
period, but the share of states decreased
from 91.35 percent in VI Plan to 57.37
per cent in VIII Plan. States are
, becoming more and more dependent on
the Centre for financial assistance in
providing basic education, which is not ,
a healthy sign. ...-
Surprisingly, our achievements in the
field of primary and upper primary
(known as elementary) are not
commensurate with the level of plan
investments made during last three
plans. Rate of increase in the number
of schools (priniary and upper primary)
from VI to VII Plan is 4.98 percent and
it has further gone up to 17.07 per cent
during VIII Plan period. Number of
teachers has registered an increase of
8.75 percent between VI and VII Plan
which has further risen to 17.23 percent
at the end of VIII Plan. In case of
enrolements, without giving any
discount for drop outs, the increase is
15.45 percent between VI and VII Plan, ,
which has gone up to 31.54 percent ~
the end of VIII Plan (1996-97);
In many fora it is claimed that, the
task of universalisation of elementary
education could not be completed
because of inadequate funds. It is often
said, the proportion of National Income
devoted to education in India is small
in comparison with that of advanced
countries ofthe world. Though finance
is equally important, this cannot be the
main plea for consoling ourselves for
not achieving universalisation of
elementary education as directed in the
Constitution under Article 45. Reasons
are many and have different dimensions '}
for the dismal performance in the field
of elementary education. One of the
areas of much concern and neglect is
resource management. Resource
management is crucial both at macro
and micro levels for getting 'synergy
required for free flow of funds and
optimum utilisatiqn of available
resources.
Preliminary examination ofthe plan
investment during the last three plans
indicates that the expenditure has gone
up at an incremental annual rise of
Rs. 648 crore over last fifteen years i.e.
from VI Plan to VIII Plan. This rate of
incremental rise in the plan expenditure '1

Table 2
Note: Figures in parentheses indicate percentage increase over VI Plan.
Source:
Constant prices worked out using the deflators (National Accounts Statistics 1998,
CSO, Deptt. of Statistics, 1980-81 series ofGDP.
Note: Figures in parenthese indicate percentage increase over VI Plan.
Source:
I. Selected statistics ofMIHRD.
2. Five Year Plan Documents of Planning Commission.
3. Working Group report on Elementary Education IX Plan.
(Fig.lakh)
Plan Expenditure Schools Teachers Enrolments
(constant prices)
VI Plan 84174 6.62 24.78 114.60
VII Plan 194197 6.95 26.95 132.30
(130.71) (4.98) (8.75) (15.45) .
VIII Plan 374344 7.75. 29.05 150.74.
(344.75) (17.07) (17.23) (31.54) .
1954
Marginal
cost
per year
(Rs.) .
.1243
the present system of resource
management and monitoring the
programmes of elementary education.
Table 3
Expenditure Enrolment Average
(constant cost
prices) Total Add. Per.year
(Rs.lakh) (lakh) (Rs.)
84174 114.60 147
194197 132.30 17.70 293
374344 150.74 18.44 497
Table 1
(Fig.lakh)
Plan Expenditure Schools Teachers Enrohnents
(current Prices)
VI Plan 84174 6.62 24.78 114.60
VII Plan 285469 6.95 26.95 132.30
(239.14) (4.98) (8.75) (15.45)
VIII Plan 1055650 7.75 29.05 150.74
(1l54.12) (17.07) (17.23) (31.54)
VII Plan
Plan
VI Plan
VIII Plan
susta;inable. This is an alarming signal
for the planners and the administrators
to make a strong case for streamlining
on elementary education does not reflect
in the physical progress in terms of
j lichools. teachers and enrolement.
lable-l illustrates the point
Growth in plan expenditure indicated
in Table-I is in terms of current prices
which of course does not reflect real
growth. For a proper comparison, the
plan expenditure at current prices has
been converted into constant prices by
using the deflator and the results are
given in Table 2.
the plan expenditure at constant
prices has increased phenomenally
during the last three Plans to 344.75
percent over VI Plan, while physical
progress has recorded a very dismal rise
of 17 percent in. schools and teachers
and about 32 percent rise in enrolments.
•••• It could therefore be concluded that the
efforts put in have not yielded
commensurate benefits. The efficiency
of funds utilisation is too low. Though
it may be argued that the VIII Plan
expenditure includes high cost of
National Programme of Nutrition
Support to Primary Education and
District Primary Education Programme
and hence the abnormal increase in the
expenditure. But the question that arises
is whether these two programmes have
not made desired level of impact at least
on the enrolment increase.
Another measure of efficient
resource utilisation is by working out
average plan expenditure and marginal
plan expenditure per enrolment at
constant prices. Results ofthisare given
in Table-3.
Average cost refers to the cost per
enrohnent; marginal cost refers to cost
per additional enrolment.
Academically, the ideal situation of an
efficient system is that average cost per
enrolment should be less than the
marginal cost per enrolment, but the
reality is quite opposite. The marginal
cost per enrolment is much higher than
the average cost per. en~olment in
VII Plan and vnr Plan and the gap
between the two is widening. TIlis is
fe- by all means not economical and
YOJANA November 2000 11

20. Jawahar Rojgar Yojana Provides assistance for undertaking various
works including construction of school
building in rural areas under Operation
Blackboard Schemc
21. Employment Assurance -do-
Source: Annual Reports of the respective Departmcnts
-do-
6-14 years
-working
children
6-14 years
-All children
Age group
''-of beneficiaries
6-14 years
-All children
6-14 years
-All children
6-14 years
-All children
6-11 years
~AIl children
6-11 years
-All children
6-11 years
-All children
6-14 years
-<:hiIdren of
Minorities
~6-14 years
-<:hildren of ~.-Minorities
0-6 years
-All children
3-6 years
-All children
0-5 years
-All children
11-18 years
-All childrcn
0-11 years-girls
belong to below
poverty line
6-14 years
-ST children
6-11 years 'iI
-ST girls
11-21 years
-ST children
11-21 years
-SC children
6-11 years
-SC girls
Provides assistance for construction of
hostel buildings
-do-
Modernising the schools engaged in
Madaras Education
Provides assistance to the states for Mid-Day
Meal programme in primary schools
Improving basic education infrastructure
in primary and upper primary schools
Table 4
Provides assistance for appointing teachers
and purchasing teaching-learning material
Provides assistance for running' non-formal
education centres for out-of-school children
Selling up District Institutes of Education and
Training and imparting training to teachers
Improving quality of primary education by
providing package of services-school buildings,
para-teachers, revision of text books, teacher
training, non-fonnal education, etc.
Improving the quality of primary education
on the same lines of DPEP
Nature of the assistance
Provided
8. Modernisation of
Madarsa Education
Deptt. of Women & Child Development:
9. Integrated Child Provides package of services to children
Development Schemes including pre-school education
10. Early Childhood Provides assistance for running ECE
Education centres
II. Crcches/Day-Care Assistance is provided for running
centres creches/day carc centres
12: Adolescent girls scheme Provides package of service including
education
13. Palika Samridhi Yojana Provides onc-time grant of Rs. 500 on bil1h
and incentives for reltention of girl child in
schools
Ministry of Social Justice & Empowerment:
14. Ashram Schools in tribal Establishing residential schools
areas
15. Educational complex for Provides assistance for selling up
ST girls in low literacy educational complex
Pockets .
16. Hostels for ST boys and
girls
17. Hostels for SC boys and
girls
18. Special Edn. Develop- Provides package of education inputs
ment Programme for SC through residential schools
girls belong to very low
literacy level
Department of Poverty Alleviation & Rural Employment
19. National Child Labour Provides assistance for selling up Non-Formal
Projects Educational centres for working Children
2. Non-Fonnal Education
5. Lok Jumbish and
Shikshakami Projects
in Rajasthan
6. Nutritional SUPPOltto
Primary Education
7. Area Intensive
Programme
Name of the
Central Deptl.!
Scheme
Deptt. of Education:
I. Operational Blackboard
3. Teacher Education
4. District Primary Educa-
tion Programme (DPEP)
Most of the schemes implemented by
Plan funds for basic education are
being distributed among states/UTs
through several centrally sponsored
schemes. There has led to overlapping
of activities and rise in the cost per
enrolment. The segmented approach
and lack of integration and convergence
in efforts of different agencies is one of
the causes for the dismal performance.
Schemes are operated not only by the
Department of Education, but also other
departments like Department of Women
and Child Welfare, Ministry of Social
Justice & Empowerment, Ministry of
Tribal Affairs, Department of Poverty
Alleviation & Rural Employment and
Ministry of Labour. Schem-es
implemented by various departments of
the Union government with a sole
objective of improving overall
educational status of children based on
gender, caste, tribe, etc. has created
confusion among the beneficiaries and
ultimately marginalised the impact of
schemes because of their exclusive
nature of implementation without
proper coordination at the ground level.
On several occasions, resources and
assets created in a particular area l!nder
particular scheme are not shared with
others who are engaged in the same
activity due to lack of awareness, lack
of coordination, inflexible attitude of
different govemment agencies etc. It is
often quite possible that the same set of
children are targeted by these agetlcies
to convince the funding departments
and organisations and justify their
expenditure. The situation at ground
level is very complex, since there is no
single agency either at Taluk level or
district level to monitor closely all the
programmes focussed at promoting
literacy and elementary education. This
has slowly led to creation of watertight
compartments, making coordination a
gigantic task both at macro and micro
levels. Table 4 provides a bird's eye
view of schemes being implemented by
several departments of Central
government for the children of 0-14
years age group.
12

the other departments of the Centre are
not exclusively for the benefit of age
" J group 6-14 years, since education is one
'" among many components of the
scheme. However, large percentage of
beneficiaries fall under the age group
of elementary education.
The situation is further complicated
with the implementation of basic
education projects funded by the
external agencies viz. District primary
education projects spread over more
than ]3 states, Siksha Karmi project and
Lok Jumbish project in Rajasthan by
autonomous societies which get funds
both from state government and Central
government in the ratio 15:85. Share
of the Central govemment is reimbursed
by the external funding agency. The
basic question that arises about these
,.wrojects is their sustain ability, since they
are operating outside the formal system
of elementary education involving huge
expenditure of recurring nature.
Early Child Education is being
implemented as a separate scheme by
the Department of Woman & Child
Welfare besides pursuing it as one of
the components of Integrated Child
Development Scheme. Department of
Education is also pursuing Early Child
Education under District Primary
Education Programme (DPEP).
Similarly non-formal education at
primary and upper primary stage is
If being provided by the Department of
Education under their scheme "Non-
Formal Education (NFE)" is also being
pursued under District Primary
Education Programme as one of the
components of the scheme. Apart from
this, Ministry of Labour is also
providing non-follnal education for the
working children under their "National
Child Labour Projects" funded by the
World Bank. There are separate schools
for tribal children known as Ashram
Schools funded by the Ministry of Tribal
Affairs. These Central funding
programmes are in addition to the state
. programmes like Education Guarantee
Scheme (Madhya Pradesh), Back to
,.- School (Andhra Pradesh) and Lok
Jumbish (Rajasthan). The present
scenario gives an impression that there
is a massive movement for non-
formalising the formal system of
elementary education in India.
The attempts of several Central
departments for achieving
universalisation of elementary
education without giving much thought
for enhancing absorbing capacity of
states which has led to liberal utilisation
offunds is clear from the above'analysis
of mis-match between financial
progress and physical progress. As per
the Planning Commission's guidelines,
the recurring liability of the plan
schemes need to be transferred to non-
plan expenditure account of states at the
end of each Five Year Plan. There is
hardly any scheme in elementary
education without accruing recurring
liability at the end of Five Year Plan,
since maintenance of school buildings
and salary of teachers are two major
components that are carried forward
every year. That is why the states are
showing some resistance for availing
financial assistance under Centrally
sponsored schemes in the recent past.
For iristance, under the scheme
Operation Blackboard, most of the
educationally backward states like U .P.,
M.P., Assam, West Bengal etc. utilised
comparatively lower percentage of
funds during VIII Plan period. Table 5
illustrates the point:
One of the objectives of Central
inter-vention is to reduce the regional
imbalances of basic education facilities
in primary and upper primary schools
and promotion of literacy. However,
this is not reflected in the utilization of
funds by states under Centrally
sponsored schemes. The schematic
approach of Union government for
supplementing the resources of states in
achieving universalisation of
elementary education had not achieved
optimum level of tangible and
sustainable results. Continuing
deficiency of school buildings, high
teacher-pupils ratio, poor quality of
education are the indicators at macro
level to adjudge the performance of
Centrally sponsored'schemes. A large
number of District Institute of
Education and Training (DIETs), which
came up under Teacher Education.
Programme are not fully f-mcti~nal.
Mid-day Meal Scheme in some states
is not effective. Teaching-learning
material supplied to schools under
Operation Blackboard are lying idle in
many schools. More than fifty percent
of non-formal education centres setup.
under NFE Programme are not
functioning.
Another area of concern in the field
of management of resources for
elementary education is funding non-
government organisations by the
Department of Education and other
Central departments for the cause of
education. Of late, a large number of
non-government organisations (NqOs)
are coming forward to impart literacy
and basic education. The concentration
of these organisations in certain districts
of a state is very conspicuous for
obvious reasons. There is no close
monitoring of NGO activities at
grassroots level since they are directly
funded by the departments of Union
government. These organisations might
be getting funds from more' than one
department under different schemes for
the same group of children. This is
possible because funds are granted by
each department independently and
there is no close coordination among
these departments while granting funds.
The need of the hour is to ensure
proper management of resources for
elementary education seriously both at
macro and micro levels to improve the
efficiency of funds utilisation and to
avoid the followig pitfalls which led
to dismal performance.
• Multiplicity of schemes and
agencies implementing the
programmes.
• Loss in the transfer of funds from
Centre to state governments and
their further percolation to school
level.
13

Table 5
Funds Released under Operation Blackboard during
VIII Plan period (1992-97) ~.
Name of the State Funds released Percentage
(Rs. crore)
, Source: Infonnation provided by the Deptt. of Education, MIHRD.
the states for undertaking gigantic job
of promoting and closely monitoring
basic education of formal and non-
formal including working of non
government organisations. .
In order to ensure rational allocation
of funds to NGOs engaged in several
social activities including education,
there is an urgent need to set up a single
Grant-in-Aid Committee at national
level giving equal respresentation to all
the departments of Union govenllnent
engaged in social sector. This would,
to a greater extent, curb the over-lapping
in allocation of funds to NGOs and
discouraging the NGOs working for the
sake of money. 0
• Liberal attitude of the states in the
utilisation of funds provided by the
Centre and 'the external agencies
like World Bank.
At district or Taluk level there is a
need for an organisation or department
to keep track of resources that are
coming from Centrilily sponsored
schemes, Central schemes, state
schemes, schemes funded by the
external agencies like World Bank etc.
Presently District Collector is expected
to undertake this kind of job. It is a
known fact that the District Collectors
are fully preoccupied with the law and
order problem, protocols of political
leaders and other day to day work of
revenue collections. In some states,
there is an organisational set up where
every district is headed by District
Education Officer (DEO). DEO is again
responsible not only for basic education,
but all levels of school education. His
job is much vitiated with the conducting
of board examinations at various levels
of school education and transfers of
school teachers. DEO is hard pressed
to pay attention for early childhood
education and primary education as
these two levels are the pillars for
education.
There is no short cut for achieving
education without resorting" to
'convergence' ofre$ources made
available for basic education. There 'is
a need for converging several schemes
of Department of Education and other
Andhra: Pradesh
Assam
Bihar
Gujarat
Jammu & Kashmir
Karnataka
Madhaya Pradesh
Maharashtra
Orissa
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bangal
Others
Central departments into a single
comprehensive scheme to reduce the
cost of operation and to improve flow
of funds for achieving optimum
utilisation of resources of elementary
education. At micro level, Panchayati
Raj institutions should be empowered
to shoulder the responsibility of pooling
all resources coming from different
directions and ensure effective
utilisation of funds for achieving
education. In this context, the states
have to activate the 73rd and 74th
Amendments of the Constitution. States
hav~, to share their resources with. the
local bodies as the Centre is sharing with
105.67
69.37,
126.42
29.29
26.79
107.78
25.27
236.94
135.54
107.60
6.46
21.32
32.41
76.56
9.54
1.44
11.41
2.64
2.41
9.73
2.28
21.40
12.23
9.72
0.58
1.92'
2.93
6.91
INDIA MOVES TO FOURTH IN PPP RANKING
India has improved its position in terms of purchasing power parity (PPP), moving to the fourth place as compared to the
ea~lier statu:; of fifth rank.
Only the United States of America, China and Japan have a better ranking than India in tenns ofPPP, according to the latest
World Development Report
By scaling up the ranking by a single notch, India has further enhanced its position as an emerging economy with great
potential. The figures for 1999, given inthe report, put the PPP of the US at $ 8,351 billion, followed by China with
$ 4,112.2 billion, Japan at $ 3,042.9 billion and India at.$ 2,144.1 billion.
The size ofthe Indian economy in PPP tenns is ahead of six outofthc eight G-8 powers. Leaving out the US and Japan, the
PPP for other G-8 countries are: Germany $ 1,837.8 billion, France $ 1,293.8 billion the UK, $ 1,234.4 billion Italy
$ 1,196.3 billion, Canada $ 726.1 billion and Russia $ 928.8 billion.

Mr VK. Srinivasan, LA.S (Rtd), former Special Chief Secretary, Andhra Pradesh, is
f- Director, Indian Institute of Economics; Hyderabad.
Finance Commission
~
Recommendations:
Some Predicaments
V.K. Srinivasan
The predicament
created by the EFC
has serious
implications for
., Indian fiscal
federalism, which
may need to be
addressed by the
National
Development Council
and the Inter State>
Council.
T
HE ELEVENTH FINANCE
Commission was set up in July
1998, under Article 280 of the
Indian Constitution and the Finance
Commission Act of 1951 for reviewing
the state of Union finances and making
recommendations on (a) the distribution
between the Union and states, of the net
proceeds of taxes which are to be
divided between them and the inter-se
allocation among the . states
(b) Principles governing the grant-in-aid
(c) Measures to augment the
consolidated funds of the states to
supplement the resources of the
panchayats and of the municipalities.
The Presidential orders stipulated
that the report should be made available
by end of Dec 1999 for implementation
in the period of 5 years commencing
from April, 2000. The EFC was also
requested to suggest ways and means
by which the Union and the state
governments collectively and severally
may bring about a restructuring of the
public finances so as to restore
budgetary balance and maintain macro
economic stability. In view of the
enlarged terms of reference and
interruptions on account of election in
September-October, 1999 ~he
Commission could not adhere to the
time schedule and the time limit for
submission of report was extended to
30 June, 2000.
Interim Report
The EFC submitted an Interim
Report on 15 January, 2000 for enabling
provisional arrangement to be made in
the Union budget for devolution of
Central taxes and grant in aid to the
states for the financial year 2000-01.
The Commission took note of the
escalating fiscal deficit at the Centre and
mounting states' revenUe deficit and the
requirements of the Centre and states
for meeting their committed
expenditure and other liabilities and
made recommendations in the interim
Report that are "designed to move the
government budgets towards such an
adjustment path and achieve fiscal
balance in the medium term."
The package of transfer, for
2000-01, included (a) the share of the
states' of income tax at 80%, and of net
proceeds of Union excise duties at 52%
(b) Rs. 11000 crore as grant in aid,
(c) calamity Relief Fund of Rs. 2000
crore with a Central share of Rs. 1500
crore, (d) grant-in-aid to local bodies
Rs. 2018 crore divided between rural
and urban bodies in the ratio of80:20%
and (e) a provision orRs. 2000 crore
for upgradation and special. purpose
grants to the states.
The Interim Recommendations were
accepted by the Union government and
laid on the table of the Lok Sabha on 16
March, 2000.
Detailed Report
The EFC submitted its report
covering all aspects of its original
mandate to the President of India on
7 July. After examining the report,
Government ofIildia placed the Report
along with its Action Taken Report in
the Lok Sabha on 27 July, 2000.
The Commission was due to submit
a further report by 31 August, 2000. The
Eleventh Finance Commission report
(July 2000) has recommended, for the
period of five years from April, 2000.
. (a) Twenty eight percent of net
proceeds of all shareable Central taxes
and duties to be the share of all states.
In the light of Constitution (Eightieth)
Amendment Act 200 I, and consequent
15

changes regarding the additional excise
duties 1.5% of the net proceeds of the
shareable central taxes and duties
among the states that do not levy sales
taxes on sugar, tobacco and textiles, all
totalling Rs. 3,76,318.01 crore.
(b) The criteria and relative weights
for determining the inter-se share of the
states are (i) population (10%)
(ii) income distance (62.5%) (iii) area
(7.5%) (iv) index of infrastructure
(7.5%) (v) tax effort (5%) and (vi) fiscal
discipline 7.5%. Grants in aid to
15 states under Act 275(1) to cover post
devolution non plan gap on Revenue
Account Rs. 35,35,9.07 crore.
(c) Grant in aid for upgradation of
standards of administration and specific
grants to certain states with special
problems Rs. 4972.63 crore.
(d) Grants to states for financing
local bodies (Panchayats Rs. 8000 crore
and Municipalities RS.2000 crore)
totalling Rs. 10,000 crore.
The inter-se share of states to be
based on rural/urban population (40%)
index of decentralisation (20%) distance
from the highest per capita income
(20%), revenue effort of the local bodies
(10%) and geographical area (10%).
(e) Continuance of the existing
scheme of Calamity Relief Funds, with
an aggregate size ofRs. 11007.29 crore
(with Centre's share of Rs. 8225.69
crore) to be distributed only for natural
calami ties of cyclone drought,
earthquake, fire, flood and hailstorm
discontinuance of National Calamity
Relief Fund for calamities of rare
severity, establishment of a national
centre for calamity management.
(£) Continuance of existing scheme
of debt relief, linked to improvement in
the ratio of revenue receipts ofStates to
its total revenue expenditure, with
enhanced incentives and moratorium on
payment of instalment of debt and
interest on loan given to Punjab.
A cap on devolution in the overall
scheme of transfer of the Eleventh
16
Finance Commission has suggested the
tax devolution and plan and non plan
grants Irom the Centres to the states
should not exceed 37.5% of gross
revenue receipts of the Centre, i.e. both
tax and non tax revenues. Government
ofIndia has accepted this ceiling on total
revenue account transfers from the
Centre to the states, with the stipulation
in its Action Taken Report that "the
acceptance does not imply the
establishment of a principle of
mandatory sharing of a fixed percentage
of Centre's Revenue receipts with the
states". The suggestion of the EFC and
its qualified acceptance by the Union
government are not likely to be
acceptable to the states, many of whom
have been pointing out that while the
transfers from Centre to the states both
on revenue and capital accounts have
been increasing in absolute terms, the
gross and net transfers to state as a
proportion of Centre's, total receipts
have been declining from 39.0% to
31.3% gross terms and from 31.2% to
22.0% in net terms from 1990-91 to
1998-99.
Definitional Aspect
There has been continuing debate on
the definitional aspects as also on
criteria for devolution. As early as 1957,
the Second Finance Commission had
observed, "The scope of the Finance
Commission in assessing the needs of
the states had become restricted as a
result of setting up of the Planning
C6mmission ...it is for consideration
whether time is not ripe for a review of
the Constitutional provisions dealing
with financiill relations between the
Union and states." The question of
making suitable Constitutional
provision was also raised by Dr. P.V.
Rajamannar, Chairman Fourth Finance
Commission and continued to be
debated by experts and the Sarkariya
Commission on Centre and states. Even
after the EFC a holistic view of the
transfer of resources has not emerged.
An examination of the
recommendations of the EFC show that
even after 50 years of experience in
fiscal federalism, recommendiltions of
Finance Commission do not appear to
lend to the fiscal federalist structure in ~.
India, the required level of stability and .
continuity and a sense of confidence and
satisfaction to the states that they have
received a fair treatment. This is mainly
an account of the changes in the criteria
for distribution of the net proceeds of
Central tax and duties, among various
states, resulting from the
recommendations of the various finance
commissions.
The first ten Finance Commissions
starting from the first, covering 1952-
1957 to the 10th, covering 1995-2000,
spelt out different criteria for
determining the manner in which the
total resources are to be divided between
~he Union and the ,states, in res~ect o~.
Income tax and baSICexcise dutles a~
indicated further criteria for distributinY
the share of the states among themselves
as per various economic and social
indicators. The shares of the states in
the proceeds of income tax and basic
duties as recommended by the first 10
Finance Commissions are shown in
Table-I. The criteria for distributing the,
sharable proceeds for the income tax
among different states are shown in
Table-2 and the criteria for distributing
sharable proceeds of basic excise duties
are shown in Table-3. It will be seen
that successive Finance Commissions
have changed the criteria adopted for 1
distribution among the states as per their
particular perceptions and on the basis
of <,:riteria like state's contribution,
.population, per capita income distance,
per capita income inverse criterion. The
Seventh Finance Commission
introduced poverty as a criterion and
this was adopted by the Ninth
Commission. The Eighth and Tenth
Commission had not adopted this
criterion. The Ninth and the Tenth
Finance Commission had introduced
specific indicators of backwardness as
criteria. The Tenth Finance
Commission had taken the tax effort
made by the state government as a
criteria for the allocation of income tax-.

17
Shares to States in the Shareable Taxes
Table-l
Source: VK. Srinivasan, Indian Institute of Economics.
401
252
203
204
204
204
404
4545
4545
4546
47.57
(per cent)
Basic Excise Duties
The relative shares of the twenty five
states in tax devolution and total
transfers as emerging from the
recommendation of the Tenth and
effort from 10% to 5% and the EFC
appears to have placed at a disadvantage
the states which are making efforts to
mobilise higher resources, even if need
be, by incurring a measure of
unpopularity. The new criterion of
fiscal discipline for which a weightage
of7.5% has been given, need a clearer
enunciation .
55
60
66.67
75
75
80
85
85
85
85
77.5
Income Tax
Notes:
Finance Commissions
First (1952-57)
Second (1957-62)
Third (1962-66)
Fourth (1966-69)
Fifth (1969-74)
Sixth (1974-79)
Seventh (1979-84)
Eighth (1984-89)
Ninth I (1989-90)
. Ninth II (1990-95)
Tenth (1995-2000)
(I) Restricted to excise duties on tobacco, matches and vegetable products. (2) Restricted to excise duties on
tobacco, matches, vegetable products, sugar, coffee, tea, paper and vegetable non-essential oils. (3) All
commodities yielding Rs. 50 lakh of excise revenue per year except motor spirits. (4) All excisable
commodities. (5) 5 per cent cannarked for deficit states. (6) 7.425 per cent earned for deficit states.
Rs. crore
Tenth Finance Eleventh Finance
Commission Commission
(For 1995-2000) (for 2000-2005)
1. Share in Central Taxes 206343.00 376318.01
and Duties.
2. Grants in Aid 20300.30 58587.39
for Various purposes.
3. Total Transfer 226643.30 434905.40
Commissions (Table-4) for deciding the
devolution for performance of interst~te
distributions shows that the EFC has
reduced the weightage for population
from 20% to 10%, and the weightage
for. tax effort from 10% to 5% while
increasing the weightage for poverty
distance from 60% to 62.5% for area
from 5% to 7.5% and for index of
infrastructure from 5 to 7.5%. It has
introduced a new criterion of fiscal
discipline with a weightage of7.5%.
By reducing the weightage for tax
and income tax proceeds and for sharing
excise revenue and also came up with
an Alternative Scheme of Devolution
., wherein 29% of the total tax revenue of
Centre would be transferred to the states
and this percentage would be frozen for
fifteen years. While the third meeting
of the Inter State Council in June 1997
had recommended that as a first step,
the states could be given 29% of centre's
gross tax revenue from 1996-97, with a
further discussion to consider
improvement in the share of the states
from 1998-99 onwards. State
governments kept claiming higher
shares in Central revenue, specifying
proportions that were not realistic.
The quantum of transfer of resources
from the Centre to states on account of
the tecommendations of the tenth and
eleventh Finance Commissions are as
above:
A comparison ofthe criteria adopted
~. by the Tenth and Eleventh Finance
It was only in 2000, that the Union
government could give constitutional
shape to this by way of the 80th
•••• amendment to the Constitution. This
. made shares of al1 the states a definite
proportion of the net proceeds of total
central tax and duties as l!-gainst the
earlier practice of sharing only the
proceeds of income tax and excise
duties and additional excise. The
suggestion for freezing the limit to 15
years has not been accepted.
Given this background, th.e
suggestion of the EFC for an overall cap
of37.5% on transfer from Centre to the
states, if read together with the
recommendation of transfer of 29.5%
of tax revenue on account of its own
recommendation on tax devolution and
grant in aid, may unduly restrict the Plan
assistance for States Plans, Central
sector and Centrally sponsored
schemes. The EFC's views may at best
be considered a yet another suggestion
that wil1 need further examination and
discussion in the Inter State Council and
National Development Council for a
final consensus view.

Table-2
Criteria for Sharing of Income Tax
Finance Contribution Jlopulation PC PC Specific Poverty Tax
Commissions Income Income Indicators Criterion Effort
First (1952-57) 20 80
Second (1957-62) 10 90
Third (1962-66) 20 80
Fourth (1966-69) 20 80
Fifth (1969-74) 10 90
Sixth (1974-79) 10 90
Seventh' ( 1979-84) 10 90
Eighth (1984-89) 10 22.5 45 22.5
Ninth I (1989-90) 10 22.5 45 11.25 11.25
Ninth II (1990-95) 10 22.5 45 11.25 11.25
Tenth (1995-2000) 20 60 10 10
Eleventh Finance Commissions are
shown in Table-5.
The criterion adopted by EFC for
distribution to various s~tes has resulted
in a pattem of distributibn of resources
that not only sharply differs from those
resulting from the Tenth Finance
Commission, but also reveals
advantages for certain states, in central
India, and, considered as falling in low
income category. While a degree of
redistributive preference is not to be
considered unwelcome, the extent of
flow sometimes results in other states
feeling aggrieved.
The EFC appears to have evolved a
fonnula which favours certain states. If
one takes the tax devolution from
Centres to the states EFC's award has
resulted the states like Uttar Pradesh
securing 19.798 (TFC's 16.25%), Bihar ~
14.597% (TFC: 11.29%) and Madhya
Pradesh 8.838% (TFC 7.4%), West
Bengal 8.116% (TFC: 6.84%) of the
total devolution recommended. In
effect, these 4 states together have
gained nearly 51.349% of the total tax
devolution under EFC. The four states
had been awarded only a share of
41. 78% in the Tenth Finance
Commission. The southern states
(Andhra Pradesh 7.701, Tamil Nadu
5.385, Kamataka 4.930, Kerala 3.057)
together account for a share 21.073%
only, as against 22.79% awarded by
Tenth Finance Commission. In effect,
there is a reduction in the share in the
four southem states.
A comparative picture of TFC and.~
EFC Table-5 recommendation shows '-
that (i) the share ofGujarat falling from
3.88% to 2.821 % and of Maharashtra
from 6.23% to 4.632%, Haryana from
1.24% to 0.944% and Punjab from
1.53% to 1.147%.
18
Table-3
Notes:
1. Exact proportion not specified but population used as "Major" factor.
2. In effect the revenue equalisation formula was the per capita income distance
criterion.
Source: Y.K. Srinivasan: Indian Institute of Economics.
Criteria for Sharing Basic Excise Duties
Table-4
Tenth & Eleventh Finance
"Commissions
SI. Item TFC EFC
No.
I. Population 20%. 10%
2. Area 5% 7.5%
3. Poverty distance 60% 62.5%
4. Infrastructure index 5% 7.5%
5. Tax effort 10% 5%
6. Fiscal discipline 0% 7.5%
7. HRD . 0% 0%
8. Devolution to local bodies 0% 0%
Total 100% 100%
• For population TFC adopted a weightage
of 20% for LT. and 16.84% for excise
duties.
.c'"
The share of special category states,
like the Himachal Pradesh, J & K and
seven North Eastem states have also
fallen as a whole from 13.46% to 7.30%.
In
Proportion
to Post-De
Volution
25
11.11
11.11 11.11
16.5
8.42 15.79
Specific Poverty Tax
Indicators Criterion Effort
of Back-
Wardness
12.5
8.42
PC Revenue
Income' Equalisation
Inverse Criterion
Criterion
22.22
11.11
12.5
25
25
44.44
44.44
33.5
50.53
Population PC
. Income
Distance
Criterion
Finance
Commissions
First (1952-57) 100
Second (1957-62) 90
Third (1962-66)I
Fourth (1966-69) 80
Fifth (1969-74) 80
Sixth (1974-79) 75
Seventh (1979-84) 25
Eighth (1984-89) 22.22
Ninth I (I ?89-90) 22.22
Ninth II d990-95) 25
Tenth (1995-2000) 16.84

Table-5
I
.Relative Shares of States in Resource on Transfer Tenth & Eleventh Finance Commission
..."
Eleventh FinanceSl. State Tenth Finance
No , Commi,ssion Commission
TD TD TD TT
Total for All States (Rs. Crores) 206343 226643 376318 434905
Shares in Percentage
1. Andhra Pradesh 7.91 7.98 7.701 7.13
2. Arunachal Pradesh 0.66 . 0.78 0.244 0.53
3. Assam 3.42 3.67 3.285 3.05
4. Bihar 11.29 10.88 14.597 13.04
5. Goa 0.25 0.27 0.206 0.19
6. .Gujarat 3.88 3.92 2.821 2.76
7. Haryana 1.24 1.23 0.944 0.97
8. Himachal Pr.adesh 1.81 2.10 0.683 1.72
9. Jammu & Kashmir 2.86 3.23 1.290 3.78
10. Kamataka 4.86 4.64 4.930 4.53.
-'-II. Kerala 3.5 3.41 3.057 2.83
12. Madhaya Pradesh 7.4 7.10 8.838 8.05
13. Maharashtra 6.23 6.05 4.632 4.46'
14. Manipur 0.82 0.94 0.366 0.74
15. Meghalaya 0.74 0.83 0.342 0.68
16. Mizoram 0.68 0.80 0.198 0.58
17. Nagaland 1.06 1.23 0.220 1.02
18. Orissa 4.26 4.28 5.056 4.77
19. Punjab 1.53 1.58 1.147 1.25
20. Rajasthan 4.97 5.03 5.473 5.42
21. Sikkim 0.27 0.31 0.184 0.38
22. Tamil Nadu 6.12 5.89 5.385 4.97
23. Tripura I.l3 1.27 0.487 1.00
24. Uttar Pradesh 16.25 11.95 19.798 18.05
25. West Bengal 6.84 6.61 8.116 8.10
~ Total All States 100.000 100.00 100.000 100.00
T.D: Tax Devolution Share
T.T: Total Resource Transfer Share
TD: for Tenth: only of Income Tax & Excise Duty TD for Eleventh FinanceCommission for all tax revenue.
Table-6
Tax Devolution Total Transfer
TFC EFC TFC EFC
High Income 13.14 9.75 13.06 9.62
Middle Income 29.23 29.19 28.53 27.56
Low Income 44.17 53.76 43.25 49.34
Special Category 13.46 7.30 15.17 13.48
100.00 100.00 100.00 100.00
f~
YOJANA November 2000 19

Table-7
TFC EFC TFC EFC EFC-Some Important Parameters
Tax GSDP. %of
-
State %of %of %of %of Average Per ratio Avg. Population
Devolution Qevolution Total Total capita GSDP of 1994-95 to % Area of States
of taxes of taxes Transfer Transfer States (in rupees) 1996-97 of total
(%) Population
Weight 62.50% 7.50% 10%
2 3 4 5 6 7 8 9
l.High Income States
Gujarat 3.88 2.82 3.9~ 2.76 16331.67 7.29 5.98 4.92
Haryana 1.24 0.94 1.23 0.97 16297.33 6.72 1.35 1.85
Maharashtra 6.23 4.63 6.05 4.46 19098.00 6.55 9.39 9.28
Punjab 1.53 1.15 1.58 1.25 18568.33 6.52 1.54 2.50
Goa 0.25 0.21 0.27 0.19 25075.67 7.77 0.11 0.15
Total of I 13.14 9.75 13.06 9.62 19200.20 34.85 18.37 18.69
II. Middle Income States
••Andhra Pradesh 7.91 7.70 7.98 7.13 11366.33 5.45 8.40 8.01
.~
Kamataka 4.86 4.93 4.64 4.53 12367.33 8.43 5.85 5.39
Kerala 3.50 3;06 3.41 2.83 13091.33 8.33 1.19 3.93
Tamil Nadu 6.12 5.38 5.89 4.97 13926.33 8.47 .3.97 7.59
West Bengal 6.84 8.12 6.61 8.10 10171.00 5.39 2.71 8.16
Total of II 29.23 29.19 28.54 27.56 12184.47 36.07 22.11 33.08
,
III. Lower Income States
Bihar 11.29 14.60 10.88 13.04 5528.67 3.83 5.31 10.38
Madhya Pradesh 7.40 8.84 7.10 8.05 9589.33 4.94 13.54 7.67
Orissa 4.26 5.06 4.28 4.77 7909.00 . 4.16 4.75 4.04
Rajasthan 4.97 5.47 5.03 5.42 10377.00 5.33 10.45 4.74
Uttar Pradesh 16.25 19.80 15.95 18.05 7702.33 4.66 8.99 16.27
Total of III 44.17 53.76 43.25 49.34 8221.27 22.92 43.03 43.10 ~
IV. Special Category States
Arunachal Pradesh 0.66 0.24 0.78 0.53 10705.33 0.66 2.56 0.09
Assam 3.42 3.29 3.67 3.05 7968.33 3.58 2.39 2.69
Himachal Pradesh 1.81 0.68 2.10 1.72 12153.67 4.82 1.70 0.64
Jammu & Kashmir 2.86 1.29 . 3.23 3.78 10007.33 3.10 6.78 0.85
Manipur 0.82 0.37 0.94 0.74 8799.33 1.46 0.68 0.20
Meghalaya 0.74 0.34 0.83 0.68 9823.67 3.23 0.68 0.19
Mizoram 0.68 0.20 0.80 0.58 12378.00 0.56 0.64 0.06
Nagaland 1.06 0.22 1.23 1.02 12932.67 1.30 0.51 0.10
Sikkim 0.27 0.18 0.31 0.38 11109.33 3.49 0.22 0.04
Tripura 1.13 0.49 1.27 1.00 7983.67 1.94 0.32 0.29
TotalonV 13.46 7.30 15.17 13.48 10386.13 24.14 16.49 5.13
Grand Total of I to IV 100.00 100.00 100.00 100.00 100.00 100.00
-1
20 YOJANA November 2000.

Whether such a geographical
redistribution was intended by the EFC
or not, the net effect of the EFC's
devolution formula appears to
encourage apprehension that some
states have been favoured.
Approaching the issue from a
different categorisaion of states,
according to their income levels, it is
seen that Gujarat, Haryana,
Maharashtra, Punjab and Goa are
treated as high income states, while
Andhra Pradesh, Karnataka, Kerala,
Tamil Nadu and West Bengal middle
income, Bihar, M.P., Orissa, Rajasthan
& V.P. treated as' low income and
WORK AFTER RETIREMENT. ..
Jt.(Contd. from Page 9)
Conferences, seminars and
workshops may be conducted at various
levels. Issues of ageing may be
discussed by researchers from various
disciplines (medicine, psychology,
sociology, social work).
Most of the retirees think that
retirement is a cut-off point for
beginning a life o(dependency. This
negative attitude towards retirement
should change because it is the root
special category status has been given
to J & K, Himachal and seven North
Eastern states. The share of these
categories are shown in Table-6. ,
The relative shares of various states
as a group in tax devolution and total
transfers as indicated above show that
the high income and middle income
states which contribute to the GDP and
export effort in a significant manner
have had to suffer at the hands of the
EFC, with the sole ex:ception of West
Bengal which seems to have received
higher shares in tax and total transfer
devolution.
cause for many hassle~ after retirement.
Retirement should not be considered as
the end of active life. Retirees should
think that retirement is a beginning of a
different type oflife style where a retiree
can pursue creative activities by using
his innovative ideas in a more effective
and productive manner,
Post retirement employment is not
only feasible as a society can avail of
the benefits of a skilled and experienced
That the special category states also
receive from the EFC lower .shares in
both tax devolution and total transf~r as
compared to the TFC awards, shows
that even the principle of redistributive
transfer has not been strictly followed.
The new predicament created by the
EFC, has serious implications for Indian
fiscal federalism, which may need tb be
addressed by the National Development
Council and the Inter State Council, and
these may overshadow the .other
recommendations of the EFC designed
to achieve budgetary balance and macro
economic stability. 0
retiree, but for the. retired person also
post retirement employment can keep
him active and enhance his self-esteem.
Society should allow and encourage
these retirees to enter work force and
permitted to continue working as long
as they are capable and productive. As
early as in AD 172, Galen observed,
"Employment is nature's best physician
and essential for human happiness".
This statement may be relevant in this
context. 0
Internet Nodes at Delhi and Bangalore
The Department of Telecom Operations (DTO) has commissioned two Internet Nodes, one at Delhi and other at
Bangalore. This is part ofthe National Internet Backbone (Nffi) project which will provide an Internet infrastructure
throughout the country. The Project costing Rs. 33.5 crore consists of a total of 45 nodes located in important
cities all over the country interconnected through wide ban~width for smooth flow of Internet traffic. The remaining
43 nodes of the Nffi are planned to be commissioned within the year.
The DTO has also decided to set up 375 Internet Nodes (IN) at least one each in all Secondary Switching Areas
(SSAs). 245 such nodes covering 215 SSAs have already been commissioned. The remaining nodes are likely to
be commissioned progressively by December this year. SSA constitutes the basic field level executive unit of the
DTO.
The DTO planned the Nffi which is a broad based access network meant to provide convenient and easy accessible
points for DTO and the private Internet Service providers (ISPs) so that they can connect their point of presence
(POP). This will help in providing better Internet service to the subscribers .
.
21

National Commission for
Women-An Appraisal
Leena Mehendale
property etc. Deprivation results ftom
debarring them from several
opportunities of empowerment- ~.
political, economic or career-wise. Also
important are the questions Ofwomen
in jail (pre ..trtal,orpost convict jon),
women in mental asylums, single
women and so on.
The real index of
empowerment of
women will be that
situation when the
Commission does not
have to exist anymore
for them.
A
NATION .OR a society goes
ahead only through the
contribution Of all its
members. Push the women into the
backyards, and the society itself will be
dragged behind. During the struggle for
independence, Mahatma Gandhi
realising this, took special efforts to
include women in political as well as
economic and social struggles. Even
before him, stalwarts like Raja Ram
Mohan Roy, Swami Vivekananda and
Mahatma Phule had laid great emphasis
on women's participation in their
revival programmes.
After independence, however, the
progress of women and of the society
seems to have retarded. Even after forty
years, examples galore where on the one
hand the sensitivity over women's
issues are lacking and on the other hand
atrocities against women are rising.
The committee on Status of Women
in India (CSWI) recommended as early
as in 1975, the setting up ofa National
Commission for Women. Many women
activists and organisations also pressed
for the demand and finally Parliament
passed the Act in 1990 fof setting up a
Women's Commission. Actual
formation and functioning of National
Commission for Women started in 1992.
Women related issues have many
dimensions but they can be summarised
as violence, denial and deprivation.
Violence can be in parental or
matrimonial house, or at work place or
elsewhere in the society. De.nial comes
as denial of the right to be born, or denial
of nutrition, education, health, home,
These are the problems. But wh(j.t
about the systems designed to solve
these problems? How effective are
they? For example, a review of legal
system shows that right from the judicial
system to police investigation to
medico-legal recordings to the system
of evidence have been twisted in the
hands of advocates; everywhere we find
systemic insensitivity. Similarly, take
the social systems, economic or
political, we find insensitivity to the
women's aspirations for realising their"
potential. Ultimately the buck will stop~
at the door steps of the society which
itself has become too insensitive. But
the buck has to be brought there through
studies, debates, seminars, action plans
etc.
All this provides the working
ideology for National Commission for
Women. The NCW Act, 1990 has some
very strong and all encompassing
provisions. The most important and
operative part i.e. Section 10 of the Act
lists fourteen important areas in which
the Commission has to function; they
include investigation of all matters .~
relating to safeguards of women,
suggest amendments to various laws,
look into complaints relating to
deprivation of women's rights, take up
matters of non-implementation of Acts
meant for achieving equality and
development of women and non-
compliance of policy decisions etc. The
Commission can undertake
investigations, call for special studies
and find litigations involving women's
issues of larger dimensions. The
Commission can also inspect jails and
investigate the conditions of women
therein.
Ms Leena Mehendale is Jt. Secretary, National Commission for Women, New Delhi.
22
On the empowerment side Section 10 >~

enjoins NCW to suggest ways for
ensuring due representation of women
in all spheres, to participate and advice
on the planning process of socio-
economic development of women and
to evaluate such development.
As a tool for NCW's investigations,
power of civil court for summoning a
person,_summoning the record or taking
statements on oath have also been given
to the NCW_ Upon investigation and
findings, Commission may require
different agencies of government -to
implement the recommendations made
by it.
NCW can make reports on its
findings and recommendations to
government and can require that such a
report be placed before Parliament or
- . the State Assembly as case may be. This
•• is one very powerful methodology in the
hands of NCW. Thus Commission
combines the powers of investigations,
coming to ajudicious conclusion, make
recommendations and get them
implemented through the government
machinery.
The Commission works maInly
through its members and a team of
officers. However, Commission can set
up expert committees on specific issues.
Similarly experts can be coopted even
as a part of investigating team. Thus
NCW needs to maintain a strong
network with academicians and NGOs
f working all over the country and can
tap the best available brains and activists
for the purpose of situation analysis and
recommendations.
The best tool to assess the work of
the Commission is its annual reports.
The annual reports from 1992-93
onwards tell us about the work done so
far, the work methodology and the
future direction. These reports have a
set pattern. Every report has chapters
on "Status of Violence against women"
and "Custodial Justice" to deal with the
menace of violence which is naturally
the first concern of NCW. There is a
complaints arid counselling cell which
~c looks into complaints received and gives
guidance to the visitors who come to seek
help, legal advice or otherwise. Somd ..
of these complaints are of a serious nature
where investigation by the Commission
is warranted and undertaken. Details of-
these investigations can be seen in the
annual reports_
To redress the complaint of
the individual sufferer is
no doubt the first objective
of the complaint cell. But
the Commission cannot
just stop there. It must be
able to use this knowledge
as a feed back to the
government and should be
able to recommend
systemic changes needed in
various government
- sectors to ensure that
women do not have to
suffer in future.
The Complaint Cell is an inter-face
between suffering women and National
Commission for Women. It gives first
hand information about the Women's
problems and the non-functioning of the
departments that are primarily
responsible to redress the grievances. It
gives insight about various social,
administrative and legal maladies. To
redress the complaint of the individual
sufferer is no doubt the first objective
of the complaint cell. But the
Commission cannot just stop there_ It
must be abie to use this knowledge as a
feed back to the government and should
be able to recommend systemic changes
needed in various government sectors
to ensure that women do not have to
suffer in future. The complaint cell
-allows the Commission to understand
larger issues involving policy decision,
methods of implementation and method
of monitory in various government
departments and particularly their non-
functioning. NCW needs a strong
ability to analyze the data available from
the Cell and to suggest systemic changes
to other government departments_ . To
the extent that the NCW can do this, ~he
complaint cell will provide an interface
between the suffering women and the
concerned administrative departments
also.
Annual report also has chapters on
"Review of Laws" done by Commission
_and recommendations given to
government on various new bills or
amendments to existing laws.
Participation of eminent lawyers,
judges, academicians and activists is
enlisted before these recommendations
are made.
The Commission has some
programmes for funding to voluntary
organisations, academicians and other
bodies. The programme oflegalliteracy
camps is designed to organise a 3-day
legal awareness for a group of nearly
50 women by any organisation. The
Parivarik Mahila Lok Adalat (PMLA)
is designed to give funding to voluntary
agencies who can work alongwith
District Family COUltS or the District
Legal Aid Service Authority to provide'
counselling to the disputing parties and
bring about a speedy reconciliation. The
third programme is the programme of
public hearing under which hearing is
given to a group of 30 or more women
who are affected by a typical situation
at one or more places. Funding is also
given for holding seminars/workshops
on topics relevant and important for
women's questions. Fifthly, funding is
also given to academicians -tocaITYout
surveys and other studies. The
observations and recommendations
received from these activities are
compiled. The- publication wing of
NCW has, in past, brought out
substant~ve publications on various
issues.
The annual report gives the progress
of what is happening on the side of .
empowerment by examining the
scenario on political and economic front
(Contd. on Page 27)
23

Women Welfare and
Social Development
Source: Selected Socio-Economic Statistics for India, 1992, CSO, Ministry of
Planning and Programme Implementation, Government of India, p.59
P: Provisional
Table-I
Number of Girls per 100 Boys Enroled in
Schools and CoIieges
Year Primary - Middle Secondary Colleges and
(I-V) (VI-VIII) (IX-X) Universities
1950-51 39 20 15 14
1960-61 48 32 23 22.
1970-71 60 41 35 34
1980-81 62 48 41 39
1990-91 70 60 51 53
B.K. Pattanaik
Women are the vital
human.
infrastructure qnd
their empowerment-
.economiC,
educational, social
and political-would
hasten the pace of .
social development.
Investing in women's
"capabilities" and
empowering them to
achieve their
"choices" and
"opportunities" is the
surest way to
contribute to
economic growth and
overall development.
T
HE TERMS "Gender Justice",
"Women Empowerment",
"Women Welfare" are in
limelight in the social and economic
development analysis of both developed
and developing nations. The debate on
gender justice/women empowerment/
women welfare was at the centre stage
in the international arena in 1994 UN
. conference in Cairo; UN's Fourth
International Conference on Women at
Beijing in 1995 and UN's social summit
conference at Copenhagen in March
1995.
The UN International Conference on
Population and Development (ICPD)
1994 in its guiding principles states that
"the human rights of women and. girl
child are an inalienable, integral and
indivisible part of universal human
rights. The full and equal participation
of women in civil, cultural, economic,
political and social life at the national,
regional and international levels and the
eradication of all forms oJ
discrimination on grounds of sex are
priority objectives of the international ,_
community".
Indian women continues teilanguish
in a patriarchal society and a colossal
percentage ofthem largely belonging to
traditional and religiously orthodox
families are deprived of even social.
mobility and enjoy low social status.
The government of India has taken
numerous measures and making honest
endeavours to hoist the status of women
and establish gender equality. The
constitutional obligations as well as
different plans, programmes and
policies have laid emphasis on women
empowerment in order to bring them to
the mainstream of development.
Articles 15 of the Constitution prohibits ' 'l...
any discrimination on the grounds of.-a
sex; while Article 15 (3) clarifies that .~
this provision will not prevent the State
from making any special provision for
women. Articles 42 of the Constitution
envisages that the State shall make
provision for securingjust and humane
conditions of work and for maternity
relief. Besides, the Directive Principles
of State Policy also urge that the State
shall direct its policy towards securing
an adequate means of livelihood for
women and ensuring equal pay for equal
Mr B.K. Pattanaik is Project Coordinator, Centre for Research in Rural and Industrial Development, Chandigarh.

Table-II
f
Representation of Women in LokSabha
General Year Total No. Number of Percentage
Election of seats Women Members to the total
First 1952 499 22 4.4
Second 1957 500 27 5.4
Third 1962 503 34 6.8
Fourth 1967 523 31 5.9
Fifth 1971 521 22 4.2
Sixth 1977 544 19 3.5
Seventh 1980 544 28 5.1
Eighth 1984 544 44 8.1
Ninth 1989 517 27 5.2
Tenth 1991 544 39 7.2
Eleventh 1996 544 40* 7.4
Twelveth 1998 543 43 7.9
J..* One member was nominated by the President
Source: Times of India
strata of urban society. A colossal
large percentage of women are
engaged in the unpaid household
activities and are largely employed in
the informal and unorganized private
sector. Only a meagre 14.1 per cent
of women are employed in organized
sector. In the organized sector,: they
are assigned Unskilled activities
requiring more physical labour' for
which they earn less comparatively to
their male counterpart. In the
unorganized private sector, they
become victims 'of wage
discrimination by the employers and
contr'actors of wage-employment
programme. Due to domination of
patriarchy norm most of the women
lack property rights and hardly one or
two percent of women enjoy the
ownership of property. Moreover,
women have lower accessibility to
saving and credit facilities.
work for both men and women. The
Eighth Five Year Plan intends at
enabling women to function as equal
partners and participants in
development by extending the services
to women both qualitatively and
quantitatively. Moreover, the plan also
aims to effectively implement social
legislation for women by formulating
and strengthening grass roots level
women's'group. The Ninth Five Year
Plan intends to empowering women as
the agents of social change and
development. Formulation of National
Commission for Women (NCM) and
idea of setting up of a National Council
for Empowerment of Women are
encouraging steps in this direction.
Moreover, the effort to formulate the
National Policy for Empowerment of
Women and setting up a National
Resource Centre for Women are other
steps taken by the Department of
Women and Child Development.'
A recent UN report notes that India
has improved its score in education,
employment and per capita income of
women, but has not improved women's
representation in Parliament, removed
~>their unequal wages or lessened their
debt burden. Ironically, a Parliamentary
Committee report depicts that as against
a budget estimate of rupees 231.40 crore
for various schemes meant for women
welfare in 1998/99,' the figure came
down to Rs. 167.61 crore in the revised
estimate and actual expenditure stood
at Rs. 141.26 crore. Similarly, the
budget estimate for 1999/2000 reduced
to Rs. 155.47 crore and further
plummeted'to Rs. 150.88 crore in 2000/
2001. The -actual expenditure during
1999/2000 stood at Rs. 24.06 crore only.
The committee advocated the need for
maximum and judicious expenditure of
funds allocated for schemes for women
welfare.
Notwithstandipg numerous
welfare measures, the status of
women has not been adequately
hoisted and the women empowerment
status varies from' region to region,
state to state, and even between rural
and urban areas. Moreover, it also
varies from one community to the
other. The fruits of women welfare
measures are being largely enjoyed by
the highly literate Women and women
belonging "to socially, economically
and politically advantaged upper
'.
Since independence, there is snail
pace rise in female literacy, as the
percentage of male literacy has risen
from 25 per cent to 64.13 per cent, the
female literacy from 7.9 per cent to only
39.29 per cent. Further the literacy of
rural women and women belonging to
Scheduled Castes, Scheduled Tribes and
orthodox muslim minorities are
astoundingly low.
The World Bank iri its reports on
Improving Women's Health in India
pointed out that India accounts for
almost twenty five percent of world's
maternal death and the number of
pregnancy related deaths in rural areas
are still among the world's highest. The
National Prospective Plan (NPP) for
Women 1988-2000 adopted by the
Government of India also noted,
"Women face a high risk of
malnutrition, retardation in growth and
development, diseases, disability and
even death at three critical stages in their
lives viz. infancy, early childhood and
adolescence and the reproductive phase.
In the old age they face threats of breast
and uterine cancer and menopause
related problem". They are largely
25

Part-II
S.No. Social Development Social Development In
Indicators Bihar Kerala All India
1. Life Expectancy Rate 57.5 71.3 58.7
2. Infant Mortality Rate 66 16 73
3. Matemal Mortality Rate 813 234 555
4. Literacy Rate 38.48 89.81 52.21
5. Percentage Below Poverty- 40.8 17.00 29.9
line ~
6. Human Development Index 0.14 0.775
7. Per capita State Net 2650 4020
8. Per capita Income Growth 0.7 4.9
(in %) from 1981-91 to 1992-97)
A society that has effectively
implemented women welfare measures,
psychological harassments. Being
isolated from social sphere, women
are less represented in sports and
business because of 'gender
stereotypes'. In equal terms, women
are also less inv.olved in trade unions
and labour associations.
denied their reproductive health. rights
in the conservative, traditional and
religiously orthodox families.
Inadequate Representation
Women are not adequately
represented in the legislative, executive
and Judiciary spheres of the
govemment. It could be remarked that
although the recent years have
witnessed an increase in women voters,
changes in voters, participation have
not been accompanied by changes in
similar magnitude in the number of
women occupying decision making
positions. In India, women's
representation in Parliament and in the
State Assembly l1as never gone beyond
eight and ten per cent respectively. In
recent years due to reservation of seats,
there have been increased participation
of women at the grassroots democratic
system. Despite women's political
empowerment at the grassroots
democracy, a colossal large percentage
of them arc acting as de jure pradhans
and also panchayat members under the
shadow of the husband, inlaws and
parents. Not only in legislative sphere
but also in the executive and judiciary
sphere women are thinly represented.
A meagre percentage of women are
positioned in Indian Administrative
Service (lAS); Indian Police Service
(IPS) and also in Allied Services. As
far as representation of women in
judiciary is.concerned, Supreme Court
and High Courts have history offewer
number of women judges.
In the social sphere there is
'gender isolation' and 'gender
oppression'. The UNFPA report on
'The State of World Population-1997'
envisages that there has been an
increase in violence against women
in the past decade in India. In the
traditionally and religiously orthodox
societies women arc not allowed to
formulate Mahila Mandai and they
silently bear the atrocities and
became victim of 'wife beating',
'bride-burning', 'molestation', 'rape'
and other types of physical and socioc
26
S.No.
1.
2.
3.
4.
5.
6.
7.
Table-III
Wo'men Empowerment and Social Development :-
Part-I
Women Socially Socially All
Empowerment Developed Backward India
Indicators State (Kera1a) State (Bihar)
Women Literacy 86.20 22.90 39.30
Non-Enrolment 00.00 32.79 29.00
of Girl Children
Women Work-participation 35.8 6.6 14.1
in Organized Sector
Women Non-Form 58.41 9.11 21.19
Employment
Sex-Ratio 1068 956 927
Percent of Women 72.59 47.89 55.00
voting in Parliament
•••Life Expectancy- at 73.80 57.00 59.40 ~
birth (female)
has ensured gender justice atld
empowerment of women, has achieved
greater social development.
In India Kerala is an outstanding
example of socially advanced state and
Bihar is one of the socially backward
states. . A comparison of social
development indicators vis-a-vis
women einpowennent indicators in both -;

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