You are on page 1of 5

Budget Impact : Social Sector

GRAISON |CHETAN |ABHIJEET


Intent but no Resources
2

50.00%
Recession  Aaam Aadmi agenda
45.00%
 Recent corrupt image could
40.00% UPA’s first
Budget have been neutralized by
35.00%
increased social sector
30.00% % increase over
previous yr
spending especially in light of
25.00%
NDA CPI the coming assembly elections
20.00%
inflation adjusted
 But the actual allocations don’t
15.00%
%increase seem to be in line with this
10.00%
 Additional allocations for health
5.00%
and education but social
0.00%
inclusion and equity largely
2012

2011

2010

2009

2008

2007

2006

2005

2004

remain small ticket add-ons


Budget Year
Budget Year 2012 2011 2010 2009 2008 2007 2006 2005 2004

% increase over previous yr 9.59% 19.40% 10.36% 43.89% 24.41% 13.86% 34.43% 14.06% 18.72%
CPI 7.00% 11.70% 10.90% 8.30% 6.40% 5.30% 4.20% 4.20% 3.80%
inflation adjusted %increase 2.42% 6.89% -0.49% 32.86% 16.93% 8.13% 29.01% 9.46% 14.37%
% of total receipts 15.91% 15.01% 14.93% 15.68% 13.51% 13.27% 13.43% 10.16% 9.41%
% of planned expenditure 45.32% 46.22% 50.41% 50.35% 46.96% 45.57% 48.34% 38.23% 36.26%
Major Schemes
3
MGNREGA
Wages to be indexed to CPI for Agricultural Labour
Budgeted Increase
But the allocation has been frozen at Rs 40,000 crore
Education 24%

National Food Security Bill Healthcare 20%

NFSB with a proposed coverage of 75% of the population Rashtriya swastha bima yojna 37%
to be UPA’s next landmark initiative after MGNREGA
Bharat nirmaan 21%
But a mere Rs 6,000 crore has been allocated for the
flagship food programme, ICDS National rural health mission 19%

Integrated Child Development


Scheme 19%
 Education and Health are a major thrust area
Total Sanitation Campaign 4%
 Sarva Shiksha Abhiyan has seen a 40% increase for
implementing the right of children to free and compulsory MGNREGA 0
education
 Bharat Nirman group of welfare schemes also get a 20%
increase
Challenges
4

 Rs 1.5 lakh crores gathered from 3G auction and divestment proceeds


seems to have been used more towards meeting the fiscal deficit target of
4.6%
 Likely sharp escalation in subsidies because of a rally in commodity
prices putting further pressure on the government
 High future food subsidy allocation for implementing The Food Security
Act
 The proposed 5% service tax on healthcare is sending conflicting signals
 Implementation gaps, leakages from public programmes and the quality
of outcomes still pose a serious challenge
 Once the UIDAI project has been completed the government might
dramatically increase the outlay for social sector schemes along with
features like direct cash transfer keeping in mind the General Elections
5

g{tÇ~ lÉâ4

You might also like