Tuesday, March 2, 2010

Agriculture in Union Budget

The share of allocations towards Agriculture and Allied Activities as a proportion of the total Union Budget and the GDP during 2010-11 (BE) is 9.45 percent and 1.56 percent respectively. In the current budget there has been a substantial decline in the share of Agriculture and Allied Activities from the total Union Budget as well as from the GDP compared to the allocations in budget 2008-09 Actuals and 2009-10 RE.
• Union Government’s expenditure on Rural Economy as a proportion of GDP has also declined from 3.34
per cent in 2008-09 (Actuals) to 2.59 per cent in 2010-11 (BE).
• Since 2005-06, a decline in the share of Agriculture and Allied Activities sector in central plan allocation
has been observed, which indicates that the priority accorded to this sector has been on the decline.
• During 2004-05 around 99.5 per cent of the total expenditure for Agriculture and Allied Activities was on
revenue account, and even in 2010-11, the share of revenue expenditure constituted 99.7 per cent of
the total expenditure in this sector.
• Although the responsibility for financing Irrigation and Flood Control measures lies more with the State
Governments, Union Government’s budgetary allocation towards this sector seems to have been far
from satisfactory.
• Allocation towards Agricultural Research and Education do not indicate a positive trend.
• There is a gross mismatch between the allocations towards the Agriculture and Allied Activities Sector,proposed in the Eleventh Five Year Plan and the budgetary allocations towards the same in the Union Budget 2010-11.
Negative growth rates observed in the Agriculture sector Following an average growth of over 3.8 % per annum over the four years from 2005-06 to 2008-09,
the Agriculture and Allied Activities sector witnessed a growth rate, i.e. -0.2 % during the year 2009-10.
The share of this sector (Agriculture and Allied Activity, at constant prices 2004-05) in the country’s GDP has consistently been declining over the years and it reached 15.7 % during 2008-09, compared to the previous year’s share of 16.4 % A slight improvement has been noticed in the Gross Capital Formation (GCF) in Agriculture, as a proportion to the total GDP as well as agricultural GDP. However,
the share of GCF in agriculture to the total GDP hovers around 3 % over the period from 2004-05 to 2008-09.

Pradhan Mantri Gram Sadak Yojana

Pradhan Mantri Gram Sadak Yojana
Bharat Nirman Programme envisaged a massive scaling up in terms of habitation connectivity coverage, construction targets, and financial investment. To achieve the targets of the Programme, 1,46,185 km of rural roads are proposed to be constructed to benefit 66802 unconnected eligible habitations in the country. In respect of the Hill States (North-East, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttaranchal) and the Desert Areas, the objective would be to connect habitations with population of 250 persons and above. It is also proposed to
upgrade nearly 1.94 lakh km of the existing rural roads which are identified through routes of the core network. As per the Outcome Budget of the Ministry of Rural Development, compared to all other schemes PMGSY has shown considerably better utilization of funds and achievement of physical targets. In this context while the scheme got a big fillip in allocation in the 2009-10 budget, the percentage increase in allocation in 2010-11 is disappointing with a large number of
habitations yet to be covered under the scheme.

Indira Awaas Yojana

Indira Awaas Yojana (IAY)
Centre for Budget and Governance Accountability, 2010
The rural housing scheme is one of the major beneficiary driven initiatives of the Ministry of Rural Development. The scheme got a magnificent impetus in 2008-09 with an increase of 127 percent over the previous year. With the Eleventh Five Year Plan overtly targeting 150 lakh houses for the rural poor during the plan period, it was expected that the impetus will continue.

However, allocation for the scheme for 2008-09 and 2009-10 remained same with a marginal increase in the present Union Budget 2010-11. Moreover, the present budget also saw a major increase in the unit cost of provisioning rural housing for both plain areas and hilly areas.

However, lack of concomitant increase in the total quantum of allocation for the scheme effectively scales down the physical targets for rural housing for a financial year.

Swarnajayanti Gram Swarozgar Yojana

Swarnajayanti Gram Swarozgar Yojana (SGSY)
The scheme aims to organise the rural poor into SHGs through the process of social mobilization,train and build capacity and provide for income generating assets. The overall objective of the scheme has been to integrate provisions like skill upgradation, infrastructure including marketing development and technology penetration into a programme providing for poverty alleviation and
sustainable livelihood options. The Eleventh Five Year Plan envisaged that allocations for the scheme be demand-driven. Although, allocation for the scheme increased significantly over the two consecutive years of the beginning of the plan period, the growth in allocations tapered down significantly belying the adoption of a demand-driven model.

Rural development and MGNREGS

Growth in allocation on rural development is largely driven by increased outlays in department of rural development, which includes some major programmes on rural employment generation and infrastructure creation like rural roads and housing. Allocations for department of land resources and drinking water supply although show an increasing trend over the years, the growth rate for drinking
water supply has tapered down considerably since 2007-08 with only department of land resources showing growth rate similar to that experienced in years 2008-09 and 2009-10.
Detailed Demand for Grants (various years), Ministry of Rural Development,
Expenditure Budget Vol. II, Union Budget 2010-11.
Department of Rural Development: Major Programmes/ Schemes
Department of rural development, which has seen the bulk of allocation in rural development sector operates major schemes for rural employment (NREGS/MGNREGS), rural livelihood and entrepreneurship (SGSY), rural housing (IAY) and rural roads (PMGSY). The general trend in growth of allocation across all the schemes is uneven. It is noteworthy that beneficiary-driven schemes like NREGS, SGSY and IAY saw a significant rise in allocation in 2008-09 when UPA-I Centre for Budget and Governance Accountability, 2010 was nearing completion of its tenure. Strikingly, the allocations in IAY and SGSY hardly saw an increase in the following years. For the present budget, rise in allocations in these schemes is miserly with only SGSY recording a significant increase of 27 percent.

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS/ NREGS)
Essentially being a demand-driven scheme, the utilization in NREGS depends on its effective implementation. The allocation for the scheme increased substantially in the first four years of its implementation given that with better implementation, off take from the scheme would also significantly increase. However, it has also been widely observed that in most of the states, the scheme has not been able to provide the guaranteed minimum days of employment to a large number of beneficiaries. The reasons are varied ranging from ineffective implementation to
paucity of funds at the district level. On the other hand, with the economy yet to gather momentum out of a recession, lack of any substantial increase in allocation as per 2009-10 (RE)and 2010-11 (BE) betrays a lack of sense of urgency by Govt towards rural employment generation.

Union Budget on Rural Development

The allocation for Dept. of Rural Development has increased from Rs. 62,201 crore
in 2009-10 (RE) to Rs. 66,138 crore in 2010-11 (BE).
�� The allocation on Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) has gone up by only 2.5 percent from Rs. 39,100 crore in 2009-10 (RE)
to Rs. 40,100 in 2010-11 (BE).
�� A major development for rural housing sector is a substantial increase in unit costs of
housing provided under Indira Awaas Yojana (IAY). The unit cost has been increased
by 30 percent to Rs. 45,000 for plain areas and Rs. 48,500 for hilly areas.
�� Quantum of allocation for IAY has, however, increased by only 13 percent from Rs.
8,800 crore to Rs. 10,000 crore.
�� Allocation for Pradhan Mantri Gram Sadak Yojana (PMGSY) has remained at the
2009-10 level at Rs. 12,000 crore.
�� The allocation for Backward Region Grant Fund (BRGF) has been increased by 26
percent, from Rs. 5,800 crore in 2009-10 (RE) to Rs. 7,300 crore.

The Union Budget 2010-11, having been presented at a crucial juncture with an economy creeping out of recession and rising commodity prices, has belied all expectation with its policy pronouncements on rural development. With heart-warming allusions to popular philosophies, the Finance Minister has tried to sidle past a dampener for rural development when rural India required larger investments in rural income generation, housing and infrastructure. The wide gaps in the attainment of physical targets set forth in the Eleventh Five Year Plan, which is nearing its completion, required larger investments in this sector.
The UPA in its first stint undertook a host of policy initiatives, landmark among which is the National Rural Employment Guarantee Act (NREGA) which promised at least 100 days of wage employment to a household seeking employment. Noteworthy also, was the UPA initiative on rural infrastructure development christened Bharat Nirman which encompasses rural housing, rural electricity connection, telephony, all-weather road connectivity, safe drinking water, sanitation and expansion of irrigation capacity. However, with the first full budget of the second run of UPA, the financial commitment on rural development seems less than forthcoming.
Trends in Allocations Starting from 2004, when the UPA first took office, the total allocation on rural development as a whole took a quantum jump. From 2004-05 to 2008-09 the average annual growth rate of expenditure on rural development was around 37 percent. Superlative growth was attained in 2008-09 with an overall growth rate of 79 percent over the allocation in 2007-08.
However, increase in allocation in this sector did not hold the trend for years 2009-10 and 2010-11. Outlays in Union Budget 2010-11 have reduced by 8 percent over the previous year. Overall the allocation for rural development sector stood at 1.1 percent of GDP for 2010-11 compared to 1.2 percent of GDP in 2009-10 (BE).

Union Budget 2010

Union Budget 2009-10
Quality health facilities in every district hospital.
All BPL families to be covered under Rashtriya Swasthya Bima Yojana (RSBY). Allocation under RSBY increased by 40 % over previous year’s allocation to
Rs.350 crore in Budget 2009-10.
Not addressed specifically though allocation under National Rural Health Mission (NRHM) increased by Rs. 2,057 crore over Interim B.E. 2009-10 of Rs.12,070 crore.
Rashtriya Swasthya Bima Yojana (RSBY) benefits extended to all such Mahatma Gandhi NREGA beneficiaries who have worked for more than 15 days during the preceding financial year.
The allocation for “District Hospitals” scheme under Min. of Health and Family Welfare increased from Rs 16 crore in 2009-10 to Rs 200 crore for 2010-11.
Allocation for NRHM registers a small increase.

Education
Two model schools in every block
Free Education across stages for dalits and adivasis.
Scheme for setting up 6000 model schools as benchmark of excellence in every block of the country launched.
Not addressed. Allocation for “Model Schools” scheme increased from
Rs. 350 crore in 2009-10 to Rs. 425 crore in 2010- 11; but far short of the required level of funds.

Ministry of Social Justice & Empowerment to revise rates of scholarship under its post-matric scholarship schemes for SCs and OBC students.
Work & Social Security 100 days of work at Rs. 100 a day for everyone Preferential policies in govt.contracts for SC / ST and women’s groups, 50 % of rural
women linked to SHGs and Banks Social security for high risk groups
Allocation under NREGS increased by 30 % to Rs.39,100 crore in 2009-10 BE over 2008-09 RE.FM, in his Budget Speech said that 50 % of rural women will be linked to SHGs over next five years.However, allocation for all SHG-based programmes
under MWCD have gone down including Rashtriya Mahila Kosh, Swayamsiddha, STEP, Priyadarshini among others.
Action initiated to ensure implementation of social security schemes under occupations like weavers,fishermen and women, toddy tappers, leather and
handicraft workers, plantation labour, construction labour, mine workers, bidi workers and rickshaw pullers. Necessary financial allocation will be made for
these schemes.

Allocation for the NREGS increased from Rs. 39,100 crore in 2009-10 to Rs.40, 100 crore in 2010-11.The fund corpus for the 'Micro-Finance Development and Equity Fund is being doubled to Rs.400 crore in 2010-11.

National Social Security Fund for unorganised sector workers to be set up with an initial allocation of Rs.1,000 crore.To encourage people from the unorganised sector to voluntarily save for their retirement and to lower the cost of operations of the New Pension Scheme (NPS)for such subscribers, Government will contribute Rs.1,000 per year to each NPS account opened in the year 2010-11. This initiative is called "Swavalamban".

Land and Forests Market rates and stakeholder options for acquired land National Rehabilitation and Resettlement Act Amendment of Land Acquisition Act 1894
Not addressed
Not addressed
Not addressed
Not addressed
Not addressed
Not addressed
Food Security
National Food Security Act and Universal ICDS by 2012
25 kgs of rice / wheat a month
at Rs. 3 per kg for BPL families
National Food Security Act to be brought in to ensure
entitlement of 25 kilo of rice or wheat per month at
Rs.3 per kilo to every family living below the poverty
line in rural or urban areas. However, no allocation
has been made for this yet.
Union Budget outlay for “Food Subsidy” reduced from
Rs. 56000 crore in 2009-10 (RE) to Rs. 55578 crore
in 2010-11 (BE).
Allocation for ICDS increased from Rs. 6705 crore in
2009-10 (BE) to Rs. 8700 crore in 2010-11 (BE); but
even this increased budget allocation is grossly
inadequate for universalisation of ICDS with quality.
Agriculture
Interest relief for farmers on
timely repayment of loans
Crop insurance
Direct income support in
ecologically vulnerable regions
Interest subvention scheme for short term crop loans
up to Rs. 3 lakh per farmer at the interest rate of 7 %
per annum to be continued. Additional subvention of
1 % to be paid from this year, as incentive to those
farmers who repay short term crop loans on schedule.
Additional allocation of Rs. 411 crore over Interim B.E.
2009-10 made for this.
Time given to the farmers having more than two
hectares of land to pay 75 % of their overdues under
Debt Waiver and Debt Relief Scheme extended from
30th June, 2009 to 31st December, 2009.
Not addressed.
Target for agriculture credit flow set at Rs. 3, 25,000
crore for the year 2009-10. In 2008-09, agriculture
credit flow was at Rs. 2, 87,000 crore.
Allocation under Accelerated Irrigation Benefit
Programme (AIBP) increased by
75 % over B.E. 2008-09.
Allocation under Rashtriya Krishi Vikas Yojana (RKVY)
stepped up by 30 % in B.E. 2009-10 over B.E. 2008-
09.
The period of repayment of the loan amount by the
farmers extended by six months from December 31,
2009 to June 30, 2010 under the Debt waiver and
Debt relief scheme for the farmers.
Also incentive of additional 1% interest subvention to
farmers who repay short-term crop loans as per
schedule, increased to 2 % for 2010-11.
This budget proposes to provide further capital to
strengthen the Regional Rural Banks (RRBs) RRBs so
that they have adequate capital base to support
increased lending to the rural economy.
Allocation for National Agricultural Insurance Scheme
(NAIS) reduced from Rs. 1219 crore in 2009-10 (RE)
to Rs. 950 crore in 2010-11 (BE).
The agriculture credit flow target for the year Rs.3,
75,000 crore.
Rs 400 crore provided to extend the green revolution
to the eastern region of the country;Rs.300 crore
provided to 60,000 “pulses and oil seeds villages” in
rain-fed areas during 2010-11 and Rs. 200 crore
provided for sustaining the gains already made in the
green revolution areas through conservation farming,
.
Centre for Budget and Governance Accountability, 2010
Infrastructure
Water security
IT for rural transformation
Urban housing and sanitation
Rural electrification and
housing
Allocations for Rural Water Supply has shown a very
marginal increase but not sufficient to ensure ‘water
security’.
Not addressed
Allocation under Jawaharlal Nehru National Urban
Renewal Mission (JNNURM) stepped up by 87 % to
Rs. 12,887 crore in B.E. 2009-10 over B.E. 2008-09.
Allocation for housing and provision of basic
amenities to urban poor enhanced to Rs. 3,973 crore
in B.E. 2009-10. This includes provision for Rajiv Awas
Yojana (RAY), a new scheme announced.
Allocation for Bharat Nirman increased by 45 % in
2009-10 over B.E. 2008-09.
Allocations under Pradhan Mantri Gram Sadak Yojana
(PMGSY) increased by 59 % over B.E. 2008-09 to Rs.
12,000 crore in B.E. 2009-10.
Under Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY), allocation increased by 27 % to Rs. 7,000
crore.
Allocation under Indira Awaas Yojana (IAY) increased
by 63 % to Rs.8, 800 crore in B.E. 2009-10.
Allocation of Rs. 2,000 crore made for Rural Housing
Fund (RHF) in National Housing Bank (NHB) to boost
the resource base of NHB for refinance operations in
rural housing sector.
Not addressed
Not addressed specifically but a sizable chunk of the
plan allocations are devoted to the development of
rural infrastructure.
For the year 2010-11, this budget proposes to
increase the allocation for urban development by
more than 75 per cent from Rs.3, 060 crore to Rs.5,
400 crore. In addition, the allocation for Housing and
Urban Poverty Alleviation is also being raised from
Rs.850 crore to Rs.1, 000 crore in 2010-11.
For the year 2010-11, this budget proposes to provide
Rs.66, 100 crore for Rural Development.
For the year 2010-11, this budget proposes to
allocate an amount of Rs.48, 000 crore for
programmes under Bharat Nirman.
For the year 2010-11, the allocation for Indira Awas
Yojana is being increased to Rs.10, 000 crore.This
budget proposes to enhance the allocation to
Backward Region Grant Fund fund by 26 per cent
from Rs.5, 800 crore in 2009-10 to Rs.7, 300 crore in
2010-11.
Economy
Goods and Services Tax (GST)
Protection of PSUs in
manufacturing
Sector.
Will be implemented from April 2010. The government is holding discussions with the
Empowered Committee of the State Finance Ministers
to finalise the structure of GST as well as the
modalities of its expeditious implementation. It should
be introduced along with the Direct Tax Code in April,2011.

Social
Inclusion
Women’s Reservation Bill
enacted
Allocation for Dalits and Tribal
Sub Plans
Not addressed.
Allocation for the SC subplan out of the total plan
expenditure of Union Government reduced from 7.07
Cabinet’s approval obtained.
This budget proposes to enhance the plan outlay of
the Ministry of Social Justice and Empowerment to
Centre for Budget and Governance Accountability, 2010
Special incentives for girl child
to correct adverse sex ratio and
ensure girls’ education
% (2008-09 RE) to 6.49 % (2009-10 BE). Similarly for
the tribal subplan from 4.21 % to 4.10 % respectively.
National Mission for Female Literacy to be launched
with focus on minorities, SCs, STs and other
marginalized groups with the aim to reduce level of
female illiteracy by half in three years.
Rs.4500 crore, but the implementation of SCSP and
TSP continue to be neglected.
This budget proposes to step up the plan outlay for
Women and Child Development by almost 50 per
cent.
Governance
Police and Judicial reforms
Gram Nyayalaya Act 2008
implemented
New model of urban
administration
Increased allocations to gram
panchayats
For modernisation of the police in the state, Rs. 430
crore has been proposed.
Not addressed.
Rajiv Awas Yojana to make the country slum free in a
period of five years.
Mission Mode Project on e-Panchayat has received an
increase in allocation.
National Mission for Delivery of Justice and legal
Reforms to help reduce legal backlog.
Not addressed.
This budget proposes to allocate Rs.1, 270 crore for
Rajiv Awas Yojana 2010-11 as compared to Rs.150
crore last year.
Not addressed.
Peace &
Security
Unique Identity Card for all by 2011

Women and Dalits protected from atrocities
Empowered NHRC to monitor
communal and caste violence
Modernization of Defence
Unique Identification Authority of India (UIDAI) to set
up online data base with identity and biometric details
of Indian residents and provide enrolment and
verification services across country. Provision of Rs.
120 crore made for this in the Budget. First set of
unique identity number to be rolled out in 12 to 18
months.
Not Addressed. No allocation for the Domestic
Violence Act yet.
Not addressed
Not addressed
Since the UIDAI will now get into the operational
phase, this budget has allocated Rs.1, 900 crore to
the Authority for 2010-11.
No allocation in Union Budget for the Domestic
Violence Act yet.
Not addressed.
Allocation for defence increased to Rs. 1, 47,344
crore.
Foreign
Policy &
Global Role
National Action Plan for
Climate Change implemented
In furtherance to National Action Plan on Climate
Change, eight national missions to be launched.
Some of the taxation measures oriented towards this
objective.
Centre for Budget and Governance Accountability, 2010
1. Education
• The UPA promise reiterating the Kothari Commission recommendation of1966 remains unfulfilled
even after 44 years in 2010. Education spending as a share of GDP (2009-10) at 3.23 % is nowhere
near the promised 6 %.
• Overall spending on education as a proportion of total budget outlay has increased marginally from
3.88 % in 2009-10 to 4.5 % in 2010-11. In addition, States will have access to Rs.3,675 crore for
elementary education under the Thirteenth Finance Commission grants for 2010-11.
• There has been significant stepping up in the outlays for Rashtriya Madhyamik Shiksha Abhiyan
from Rs.550 crore in 2009-10 RE to Rs.1700 crore in 2010-11.
• Financing of the soon-to-be notified Right to Education Act has not been specified.
• Allocations for National Means-cum-Merit Scholarship scheme has been cut down from Rs.750
crore in 2009-10 to Rs.81 crore in 2010-11. This amount seems to have been diverted to reflect the
increased outlay in the Post-Matric Scholarship Scheme for SCs from Rs.735 crore in 2009-10 to
Rs.1635 crore in 2010-11.
• Schemes showing increases in their outlay include Adult Education & Skill Development Scheme,
Educational Loan Interest Subsidy in University and Higher Education, Scholarship for College and
University Students, and Upgradation of existing/setting up of New Polytechnics.
“The Union Budget cannot be a mere statement of Government accounts. It has to reflect the
Government's vision and signal the policies to come in future.” With these words, the Finance
Minister introduced the Union Budget 2010-11 that could have been a clear policy statement of the
government towards propelling not just economic but also social development in the country. Some
scant provisions notwithstanding, the tenor of the budget has largely missed the mark when it comes
to critical social sectors such as education.
Budgetary Allocation
Government spending on education as a proportion of GDP at 3.23 percent in 2009-10 continues to
be way below the recommendation made by the first Education Commission in 1966. Not only was it
adopted in the subsequent National Policies on Education, but many political parties also adopted it
as a key commitment. The UPA in 2004-05 had committed to raise public spending on education by
6 percent of GDP by 2008-09; this remains as much a promise in 2010. Figures 1.a and b show the
trends in spending on education by the Union and State governments.
Overall spending on education as a proportion of total budget outlay has increased marginally from
3.88 percent in 2009-10 to 4.5 percent in 2010-11. In addition, States will have access to Rs.3,675
crore for elementary education under the Thirteenth Finance Commission grants for 2010-11.
However, in what seems to be a clear signal of the government in favour of the neoliberal policy
framework, the proposal to ease Foreign Direct Investment (FDI) restrictions in the higher education
sector is a move towards pushing for greater privatization in education.
Centre for Budget and Governance Accountability, 2010
Figure 1.a: Union Government Spending on Education as Percentage of Total Expenditure and GDP
4.08 3.81 4.02 3.88 4.5
3.52
2.63
0.42 0.5 0.58 0.58 0.63 0.64 0.71
0
1
2
3
4
5
6
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
RE
2010-11
BE
Union Govt's Expenditure on Education as a Proportion of Total
Expenditure (in %)
Union Govt's Expenditure on Education as a Proportion of GDP (in %)
@ This does not include spending on education by Ministries in Government of India other than MHRD
∗ 2008-09 GDP data is estimated by CSO
π 2009-10 GDP data from Budget at a Glance 2009-10
Source: Compiled from data in Expenditure Budget Vol. 1, Union Budget, various years.
Figure 1.b: State Government Spending on Education as Percentage of Total Expenditure and GDP
14.0 13.8 14.4 15.1
12.7
14.2
2.3 2.2 2.2 2.1 2.4 2.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2004-05 2005-06 2006-07 2007-08 2008-09
(RE)
2009-10
(BE)
% to Total Expenditure % to GDP
Source: Compiled from data in State Finances: A Study of Budgets 2008-09,
Reserve Bank of India, 2008
There are very few benchmarks for assessing the adequacy of public spending on the development
schemes in the country; the Eleventh Plan recommended outlays could be treated as some such
benchmarks, even though the quality parameters to arrive at these benchmarks are not quite
satisfactory. With just one year• left in the Eleventh Five Year Plan period, most of the schemes have
reported shortfalls in terms of budgetary outlays. At least 80 percent of the Plan outlay should have
been made in the first four years but actual provisioning has been 12 percent for Rashtriya
Madhyamik Shiksha Abhiyan, 36 percent for Teacher Training and 46 percent for UGC. SSA and Mid
Day Meal have fared better with 76 percent and 65 percent respectively (Table 1.a).
• Considering that the budgetary allocations for 2010-11 have already been announced, even though the year has only just
begun.
Centre for Budget and Governance Accountability, 2010
Table 1.a: Recommended Eleventh Plan Outlay vs. Budgetary Allocations in Education
Union Budget Allocations
Plan
Scheme
Outlay
for
Eleventh Plan
(Rs. in Crore) [at
Current Prices]
2007-08
RE
2008-09
RE
2009-10
RE
2010-11
BE
Union Budget
Outlay
made in the
first four years
% Outlay
till now
SSA 71000 13171 13100 13100 15000 54371 76.57
MDM 48000 6678 8000 7359 9440 31477 65.57
Teacher
Training 4000 312 307 325 500 1444 36.1
SUCCESS /
RMSA 22620 1 511 550 1700 2762 12.21
Navodaya
Vidyalaya 4600 1055 1421 1170 1246 4892 106.34
UGC 25012 1633 2762 3244 3885 11524 46.07
Technical
Education 23654 1103 2885 3686 4706 12380 52.33
Source: Compiled by CBGA from Eleventh Plan Document and Union Budget documents, various years
Key Issues
Earmarked Spending on SC/ST Children
Census projections for 2011 in 5-29 years age group is 57 crore. Assuming that 24 percent of total
population in this age group would be SCs and STs, i.e. 13.68 crore, the per capita expenditure on
education of an SC/ST student (in the age group 5-29 years) by the Union Budget 2010-11 works out
to Rs.1073.
Earmarked Spending on Girl Children
Replicating the same exercise, the per capita expenditure on education of a girl child by the Union
Budget 2010-11 would be Rs.725. Taking into account the fact that there are high out-of-pocket
expenses incurred by individuals on education, the Union government spending on SC/ST and the
girl child is insignificant. According to the National Sample Survey (NSS) 64th Round in 2008, per
capita out-of-pocket expenditure by an average parent in the country in government schools at the
elementary level is Rs.1243 and at the secondary/ higher secondary stage is Rs.2597.
Public Private Partnership
It is not just the allocations but also the mode of financing adopted by the government that
determine its priority – whether critical commitments are being financed through an approach based
on entitlements for people or through low-cost provisioning for the poorest sections of the
population. For instance, adoption of Public Private Partnership (PPP) as the preferred mode of
financing for setting up 2500 of the total of 6000 Model Schools is disconcerting.
Financing Right to Education
Increase in the budget for education is grossly inadequate keeping in mind the need for a complete
revamp of the expenditure norms in the Central schemes (like Sarva Shiksha Abhiyan) if Right to
Education (RTE) Act 2009 is to be implemented properly. The budget for the Ministry for Human
Resource Development (MHRD) at Rs.49,904 crore for 2010-11 accounts for just 0.72% of GDP,
remaining at the same level (as proportion of GDP) that was reached in 2009-10 BE. With the
government mulling over the possibility of operationalising RTE Act through SSA, it is unclear how
increasing the outlays for SSA from Rs.13,100 crore in 2009-10 RE to Rs.15,000 crore in 2010-11
BE would help achieve universal access to education by all.
Centre for Budget and Governance Accountability, 2010
In this regard, proceeds from education cess have been almost half of the total budget of
Department of School Education and Literacy since 2006-07 (Table 1.b). To add to this, the annual
growth in the outlay for the Department has been on a decline since 2005-06. It is apparent that
outlays for elementary education are not moving in the direction of ensuring effective
implementation of the RTE Act.
Table 1.b: Elementary Education and Trends in Financing by Union Government
Year
Total for
Department of
School
Education and
Literacy
Growth in
Outlay for
Department of
School
Education and
Literacy
Education
Cess
Cess as % of
Total Outlay for
Dept of School
Education and
Literacy
2004-05 RE 8004
2005-06 RE 12536 56.6
2006-07 RE 17133 36.7 8746 51.04
2007-08 RE 23191 35.4 11128 47.98
2008-09 RE 26026 12.2 12134 46.62
2009-10 RE 25338 -2.6 12257 48.37
2010-11 BE 33214 31.1 14433 43.45
Source: Department of School Education and Literacy, Expenditure Budget Volume II, Several Years
Design Flaws in Government Schemes
While the Finance Minister commended the progress achieved through SSA, government estimates
of poor teacher and student attendance tell a different tale. It is unlikely that SSA would be able to
address such gaps, given that the thrust of spending has been largely on two areas: Civil Works and
recruitment of contract teachers. For instance, in the budget approved for SSA for 2008-09, 28% of
total outlay was earmarked for Civil Works and 31% for Teachers’ Salary, while the components that
could influence quality of outcomes such as Teaching Learning Equipment, Teacher Training,
Innovative Activities, Community Training, Research and Evaluation etc. account for very low shares.
Increases in the quantum of the budget do not necessarily translate into better development
outcomes if the funds are not spent in a timely manner. Average spending in SSA as a proportion of
total approved outlay for the country was only 29% in the first half of 2008-09. Underutilisation of
funds in schemes like SSA is a key concern – which is due to the inefficient institutional and
budgetary processes and flaws in the scheme design. Setting of low and unrealistic unit costs
illustrates this amply. A grant of Rs.5000 per year for primary school for replacement of
nonfunctional equipment and other recurring costs is a pittance. Similarly, providing Rs.100 per
person per day for training of teachers (for 10 days) would hardly suffice to conduct effective
training. It is disconcerting that even though the Finance Minister did mention the need to address
weaknesses in government systems, Union Budget 2010-11 does not make much headway in
dealing with these concerns.
Centre for Budget and Governance Accountability, 2010
Adequacy of Public Resources for Health
The United Progressive Alliance had made a commitment in the National Common Minimum
Programme (NCMP) in 2004 that total public spending on Health in the country would be raised to
the level of 2 to 3 percent of GDP. This was also reiterated in the Eleventh Five Year Plan. However,
the combined budgetary allocation (i.e. the total outlays from both Union and State Budgets) for
Health stands at a meagre 1.06 percent of GDP for 2009-10 (Budget Estimates).
In 2003-04, only 1.58 percent of the total Union Budget was spent on Health. The share of the
Health sector in the total spending of the Union Government has gradually increased to 2.3 percent
by 2010-11 (BE). However, as a proportion of the GDP, the Union Government’s spending on Health
shows a less perceptible increase from 0.26 percent in 2003-04 to 0.36 percent in 2010-11 (BE).
• Union Government’s expenditure on Health sector as percentage of total Union Budget
has increased marginally from 2.1 percent in 2009-10 (RE) to 2.3 percent in 2010-11
(BE).
• As a proportion of GDP, the combined expenditure of Centre and states on Health, which
was around 1.02 percent in 2008-09, is around 1.06 percent in 2009-10. Although a
small increase over the previous year, it is still far short of the NCMP target of raising total
public spending on Health in the country to 2 to 3 percent of GDP.
• In his Budget Speech, the Finance Minister has proposed to include in the Rashtriya
Swasthya Bima Yojana all those NREGS beneficiaries who have worked (in the scheme)
for at least 15 days in the last fiscal year. This is a welcome development. However, there
are several concerns pertaining to the implementation of RSBY (relating to the role of
private health insurance companies and the private healthcare institutions), which need
to be addressed.
• Allocation on NRHM has been increased to Rs. 15,514 crore in 2010-11 (BE) from Rs.
14,002 crore in 2009-10. Given the huge infrastructural gaps and human resource
crunch in health sector across the country, the budget for NRHM should have been
increased significantly.
• The proposal for Annual Health Survey to prepare District Health Profile for all districts is a
welcome step; but the government would need to allocate adequate funds for this
purpose.
• Allocations for certain major central schemes have gone down; these include Medical
Education & Research and National Disease Control Programme.
• Union Budget allocations, during 2007-08 to 2010-11, for a number of important
schemes in health sector fall far short of the benchmarks suggested by the Planning
Commission for the 11th Plan period.
2. Health
Centre for Budget and Governance Accountability, 2010
Table 2.a: Combined Expenditure of Centre and States on Health and Family Welfare
Centre's
Expenditure $
(in Rs. Crore)
States’
Expenditure
(in Rs. Crore)
Centre’s Exp.
as % of GDP
Total Exp.
(Centre + States)
as % of GDP @
2003-04 7249.14 17529 0.26 0.90
2004-05 8085.95 18771 0.26 0.85
2005-06 9649.24 22031 0.27 0.88
2006-07 11757.74 25375 0.28 0.90
2007-08 14410.37 28907.7 0.29 0.88
2008-09 18476 38578.8 0.33 1.02
2009-10 21680 43848.18 0.35 1.06
2010-11 25154 - 0.36 -
Notes: * Figures for States’ Expenditure are Revised Estimates (RE) for 2008-09 and Budget Estimates (BE) for
2009-10.
$ Centre’s expenditure on Health and Family Welfare refers to the expenditure by Ministry of Health and Family
Welfare only. It doesn’t include the expenditure of other Ministries.
@ These figures may involve double counting of the grants-in-aid from Centre to States under Health and Family
Welfare.
Source: Compiled by CBGA from Union Budget, various years, GoI and RBI: State Finances – A Study of Budgets,
various years.
Chart 2.a: Share of Health Sector in Union Budget (in %)
1.5
1.6
1.9
2 2
2.1 2.1
2.3
0
0.5
1
1.5
2
2.5
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
2009-
10
2010-
11
Year
Percentage
Note: The figures for 2003-04 to 2009-10 are RE, while 2010-11 is BE.
Source: Compiled by CBGA from Expenditure Budget Vol. I, Union Budget,
various years, GoI.
While significant outlays were recommended for some major schemes in the Eleventh Five Year Plan,
only a fraction of the proposed outlays have been reflected in the Union Budget of the last four years.
In two major schemes—National Rural Health Mission (NRHM) and Health Insurance under Urban
Health Mission, the allocation of funds are only 54.2 and 40.01 percent respectively. Similarly
District Hospitals and Human Resources for Health also paint a gloomy picture with only 10.2 and
Centre for Budget and Governance Accountability, 2010
9.9 percent of recommended outlays in the first four years of the Eleventh Five Year Plan period (see
Table 2.b).
Table 2.b: Outlays Recommended (by Planning Commission) for Eleventh Plan vs.
Union Budget allocations made in the first four years of the Plan
Name of the Plan
Scheme /
Programme
Proposed
Outlay for
Eleventh
Plan
(Rs. in Crore)
[at Current
Prices]
Allocations
Made
during
2007-08
(RE)
(Rs. in
Crore)
Allocations
Made
during
2008-09
(RE)
(Rs. in
Crore)
Allocations
Made
during
2009-10
(RE)
(Rs. in
Crore)
Allocations
Made
during
2010-11
(BE)
(Rs. in
Crore)
Total Budget
Outlay Made
in the first
four years
(Rs. in Crore)
% of
Allocation
Till Now
NRHM 89478 10669 11930 12017.60 13836.00 48452.6 54.2
District Hospitals* 2780 - 68 16 200 284 10.2
Human Resources
for Health * 4000 - 56 16.11
323 395.11 9.9
Health Insurance
under Urban Health
Mission*
4495 89 311 232.51 1165.72 1798.23
40.01
Note: * Figures for Union Budget allocations for these schemes do not include the Lumpsum provision of funds for North
Eastern Region and Sikkim, if any.
Source: Compiled by CBGA from Eleventh Five Year Plan, Planning Commission, GoI; Union Budget, GoI, various years; and
Detailed Demand for Grants, Ministry of Health and Family Welfare, GoI, various years.
National Rural Health Mission (NRHM)
• There has been an increase in overall expenditure in NRHM with each successive year, which
indicates some improvement in States’ capacity to utilise funds provided by the Central
Government. However, in the eighteen ‘focus’ States (mostly the Empowered Action Group
States and the north eastern States), the pace of fund utilization has been slow.
• Many high focus States have received relatively less Central grants in NRHM largely due to their
inability to expedite fund utilisation. This is indicative of systemic weaknesses in such States,
which need to be addressed through recruitment of staff and their capacity building.
• NRHM promotes provisioning of a limited package of services through the government health
centres, rather than comprehensive healthcare. For instance, there is no provisioning for mental
health, skin, ENT, and dental health, among other services. Reproductive and child health (RCH)
services continue to be the main focus in NRHM.
• In its appraisal of NRHM, the Comptroller and Auditor General (C&AG) notes implementation
bottlenecks in–planning, community participation, fund management, infrastructure
development, procurement and supply of medicines and equipment, monitoring and supervision,
among others (C& AG’s Report No. 8 of 2009-10).
Areas of Concern:
• Combined expenditure by Centre and States in 2009-10 (BE) stills hovers around 1 percent
of GDP, which is far short of the promised 2 to 3 percent of GDP. Allocation of Union
Government on Health has increased to Rs. 25,154 crore in 2010-11 (BE) from Rs. 22,641
crore in 2009-10 (BE). This is an 11 percent increase compared to previous year. Out of this,
external contribution i.e. Externally Aided Projects (EAP) is Rs. 3986 crore, which is 16% of
the total Union Government’s Budget on health. In the previous year, EAP contribution was
Rs. 3,192.71 crore, which means that this is a 25% increase from previous year. When we
exclude the EAP contribution from Union Govt’s budget, the increase is only 9 percent.
Centre for Budget and Governance Accountability, 2010
• Allocation on NRHM has increased only by 11 percent from Rs. 14,002 crore to Rs. 15,514
crore. Given the requirement of additional funds to augment rural health infrastructure, fill in
vacancies of doctors, ANMs, and paramedics, this seems to a paltry increase. Given that
spending by states under NRHM has also picked up off late, the Union Government should
increase allocation further.
• The allocation on National Disease Control Program has gone down from Rs. 1,063 crore in
2009-10 (BE) to Rs. 1,050 crore in 2010-11 (BE). The decline in allocation for the scheme is
very disturbing given that a number of diseases covered under the scheme has witnessed
increased prevalence in the recent past.
• The over all allocation on Medical Education and Training has gone down from Rs. 3,255.94
crore in 2009-10 BE to Rs. 2,678.84 crore in 2010-11 BE. Within this, the most pronounced
is the fall in allocation on Establishment of AIIMS type Super Specialty Hospitals, where
allocation has declined to the tune of Rs. 700 crore. Whether the government is falling back
on it promise of creating more AIIMS like institutions or not, remains to be seen.
Furthermore, allocations for post graduate medical education needs to be prioritised to fulfil
requirement of the specialist doctors. However, the central government has reduced
allocation on two premier institutes like PGIMER, Chandigarh, ND JIPGMER, Puducherry.
• At the same time the Annual Health Survey, slated to begin from 2010 needs to be
welcomed as it is expected to generate regular data at annual intervals on various health
indicators, which are not available currently. However no budget head on this has been
created, as a result of which no allocation towards this has been made, so far.
Promise Made in the 2009 Election Manifesto of the Congress
• The Indian National Congress had made a commitment in its 2009 Election Manifesto that: every
district headquarters hospital would be upgraded to provide quality health facilities to all. This
would be a critical measure given that district hospitals play a key role in providing health
services to the poor; and, substantial improvements in infrastructure and other facilities are
required so that they can function more effectively. Hence, the present Union Government
should pay attention to the specific Union Budget allocations which pertain to strengthening of
district hospitals.
• We find that Union Budget allocation for a new scheme, called District Hospitals, had been only
Rs. 68 crore in 2008-09, which was reduced to Rs. 36 crore in 2009-10 (BE); it has been raised
to Rs. 200 crore in 2010-11 (BE).
• Also, In the financial year 2008-09, under the National Rural Health Mission,
(a)Rs. 421.4 crore was spent for ‘Upgradation of CHCs, PHCs and District Hospitals to the IPHS
standards’, out of which Rs. 42.3 crore was spent on District Hospitals;
(b)Rs. 61 crore was spent on ‘Strengthening of District and Sub-divisional Hospitals’; and
(c)Rs. 12.4 crore was spent on ‘Corpus grants to Hospital Management Societies / Rogi Kalyan
Samitis’ for District Hospitals.
• However, one of the benchmarks for public spending on district hospitals (developed by CEHAT in
Maharashtra) suggests an annual recurring cost of Rs. 2,50,000 per bed in such a hospital,
which translates into an annual recurring cost of around Rs. 3000 crore for the whole country
(assuming 200 beds per hospital for the 600 districts in the country). The amount of funds
allocated by the Union Government for strengthening of district hospitals has not been anywhere
close to this figure.
Centre for Budget and Governance Accountability, 2010
Budgetary Allocations
Once again Union Budget 2010-11 has not much to offer in the water and sanitation sector.
From Rs. 8269 crore in 2009-10 (RE), allocations have marginally gone up to Rs. 9522 crore
in 2010-11 (BE). The macro picture shows that the allocation for rural water supply and
sanitation as percent of Total Expenditure from Union Budget has almost remained stagnant
at 0.85 percent. The only silver lining to this is the increased outlay in Rural Sanitation (Total
Sanitation Campaign) which is around 33 percent more than the last year’s budget.
The other positive development is the high allocation for ‘Integrated Low Cost Sanitation
Programme’ which is almost 58 percent more than previous year. However, since these are
only Budget Estimates, we can only wait and watch whether they are revised or not in the
financial year.
Table 3.a: Total Expenditure on Rural water Supply and Sanitation by the Department of
Drinking Water Supply, Ministry of Rural Development (MoRD). GoI
Year
Rural Drinking Water
Supply and Sanitation*
(in Rs.Crore)
Union Govt. Expenditure on Water Supply and Sanitation
as Proportion of Total Expenditure from Union Budget (in %)
2003-04 RE 2751.39 0.58
2004-05 RE 3301.39 0.66
2005-06 RE 4761.52 0.94
2006-07 RE 5301.63 0.90
2007-08 RE 7461.82 1.04
2008-09 RE 8502.27 0.94
2009-10 RE 8269.00 0.80
2010-11 BE 9522.00 0.85
Source: Expenditure Budget Volume 1&II –Union Budget for various years, www.indiabudget.nic.in
• The allocation for rural water supply has shown a marginal increase from Rs. 7,199
crore in 2009-10 (RE) to Rs. 8,100 crore in 2010-11 (BE). In rural sanitation too, there
has been a small increase in the allocation from Rs. 1,080 crore in 2009-10 (RE) to
Rs.1,422 crore in 2010-11 (BE).
• In urban water supply and sanitation, allocation for the ‘Integrated Low Cost Sanitation
Programme’, a Centrally Sponsored Scheme for the replacement of dry latrines with
water borne flush toilets and the rehabilitation of workers engaged in manual
scavenging, has been increased from Rs.45 crore in 2009-10 (RE) to Rs.71 crore in
2010-11 (BE). This is a welcome step. However, allocations for provision of Solid Waste
Management near Airports in Few Selected Cities, has shown a steep decline from Rs.
12.56 crore in 2009-10 (RE) to a meager Rs. 3.64 crore in 2010-11 (RE).
• Open defecation and inadequacy of safe drinking water continue to be serious issues
despite the progress in target achievements in rural water supply and sanitation.
3. Water Supply and Sanitation
Centre for Budget and Governance Accountability, 2010
Notes: * Union Budget Outlay for Dept.of Drinking Water Supply under Ministry of Rural Development
Trend in Allocations for Schemes
Keeping in view the fact that there are only two years for the Eleventh Five Year Plan to end,
it is pertinent to look at whether the Plan allocations laid out by the Union government at
least measure up to the Proposed Outlay for the Eleventh Plan. A view of Table 3.b clearly
shows that Union government allocation for Rural Water Supply is around 78 percent and for
Rural Sanitation it is around 68 percent in comparison to what was proposed in the Plan.
Table 3.b: Outlays Recommended (by Planning Commission) for Eleventh Plan vs.
Union Budget allocations made in the first four years of the Plan
Name of the Plan
Scheme /
Programme
Proposed
Outlay for
Eleventh Plan
(Rs. in Crore)
[at Current
Prices]
Allocations
Made
during
2007-08
(RE)
(Rs. in
Crore)
Allocations
Made
during
2008-09
(RE)
(Rs. in
Crore)
Allocations
Made
during
2009-10
(RE)
(Rs. in
Crore)
Allocations
Made
during
2010-11
(BE)
(Rs. in
Crore)
Total
Budget
Outlay
Made in the
first four
years
(Rs. in
Crore)
%of
Allocation
Till Now
Ministry of Rural Development
NRDWP (erstwhile
Rural Water Supply
Programme)
34916 4601.5# 7300 7199* 8100* 27,200.5 77.9
Total Sanitation
Campaign
6910 996# 1200 1080* 1422* 4,698 67.9
Notes: * Figure does not include the Lumpsum Provision of funds for North Eastern Region and Sikkim (if any).
#-Denotes actual expenditure
Source: Expenditure Budget Vol-II, Various Years, Government of India; Detailed Demand for Grants, Ministry of
Rural Development, Appendix Eleventh Five Year Plan (2007-2012)
Some Important Schemes:
Bharat Nirman/National Rural Drinking Water Programme:
Under Bharat Nirman for rural water supply, Rs 4,098 crore in 2005-06, Rs 4,560 crore in
2006-07, Rs 6,441.69 crore in 2007-08 and Rs 7,276.29 crore in 2008-09 have been
utilized. In 2009-10, a budgetary provision of Rs 8,000 crore has been made, out of which
Rs 5,669.88 crore has been utilized. In the case of quality-affected habitations, as reported
by States, 52,428 habitations have been fully covered by safe water supply (Table
3.c).Projects to cover 2,57,512 habitations have been given technical and administrative
approval and are under execution. The goal is to cover all water quality-affected habitations
with safe drinking water by the end of 2011. (Economic Survey, 2009-10)
Table 3.c: Bharat Nirman - Rural Drinking water - Cumulative Achievements
Component Target (at the beginning of
Bharat Nirman)
Cumulative achievements*
Uncovered habitations to be
provided with potable water
55,067 54,589
Slipped back habitations to be
provided with potable water
3,31,604 3,83,106#
Quality affected habitations to be
provided with potable water
2,16,968 3,15,132#
Total 6,03,639 7,52,827
#Higher achievement reported cumulatively as some states have reported coverage of habitations other
than those included in Bharat Nirman Programme.* As on December 23, 2009.
Source: Economic Survey, 2009-10
Centre for Budget and Governance Accountability, 2010
To enable rural schools to provide safe and clean drinking water for children, the Jalmani
programme was launched on November 14, 2008 and Rs 100 crore was provided to the
States in 2008-09. Under the programme, 100 percent financial assistance has been
provided to States to install standalone water purification systems in rural schools to allow
children’s access to safe and clean water. During 2009-10, another Rs 100 crore has been
made available and allocated to the States (Economic Survey, 2009-10).
Total Sanitation Campaign:
With the scaling up of the Total Sanitation Campaign (TSC), combined with higher resource
allocation, programme implementation has improved substantially. Since 1999, over 6.01
crore toilets have been provided to rural households under the TSC. A significant
achievement has also been the construction of 9.37 lakh school toilets and 2.95 lakh
Anganwadi toilets. The number of households being provided with toilets annually has
increased from only 6.21 lakh in 2002-03 to 115 lakh in 2008-09. In 2009-10 (up to
December 22, 2009), more than 62 lakh toilets were provided to rural households. The
cumulative coverage till now is 61 percent as against only 21.9 percent rural households having access to latrines as per Census 2001 data (Economic Survey, 2009-10).
Quality Concerns and Sustainability Issues
Major challenges facing the rural water supply sector are source sustainability which is one of the prime reasons for slippage of fully covered habitations. The other challenges include maintenance of supply systems and water quality problems.
In the TSC, an important fact which remains is that coverage need not necessarily mean usage of sanitation facilities. There are various studies which indicate that mere coverage of sanitation have not resulted in usage and resulted behaviour change of not defecating in the open. Quality of construction, materials used, poor maintenance and availability of water are some of the factors which influence the usage of toilets.
Right to Human Dignity: The issue of manual scavenging
It is shameful that manual scavenging still continues in India. There were approximately 3.42 lakh manual scavengers in India in 2006, according to government records, which needed to be rehabilitated. In 1993, the Indian Parliament enacted a law prohibiting employment of manual scavengers and construction of dry latrines. The National Human Rights Commission of India (NHRC) has termed manual scavenging as one of the worst violation of Human Rights. The NHRC has called for State Governments to stick to the definition of manual scavengers as per the Manual Scavengers and Construction of Dry Latrines (Prohibition) Act,
1993. It also mentions that there should be a clear demarcation between manual
scavengers and sanitation workers. (People’s Mid-Term Appraisal of the Eleventh Plan)There must be serious efforts to encourage and make available alternative dignified employment opportunities for the manual scavengers. The increase allocation in the ‘Integrated Low Cost Sanitation Programme’ is a step in the right direction. despite fulfilment of targets, challenges continue to abound the sector. The challenges faced in the urban water and sanitation sector are sourcing of water, distribution losses in water supply, treatment of waste-water and rainwater harvesting, solid waste management, operationalsing the National Urban Sanitation Policy and private sector participation. In Rural Water Supply and Sanitation, there is the issue of fund utilisation. A CAG audit for the rural
Centre forwater supply programme (Accelerated Rural Water Supply Programme) revealed that 10 States were not able to provide matching grants to the tune of Rs 2773.14 crore. There was under utilisation of 45 percent to 75 percent of financial assistance from the Centre to the states for the water supply scheme between 2002 and 2007. Further, technology considerations, sustaining Nirmal Grams, ineffective and insufficient monitoring for outcome measurement. are some other issues that need to be tackled. In addition, concerns for inclusion, equity and gender relations are not clearly articulated in the policy guidelines of
the sector. (People’s Mid-Term Appraisal of the Eleventh Plan) Water Supply and Sanitation has hardly been accorded the priority that it deserves. However,
certain initiatives taken since the Eleventh Plan have managed to draw attention that the sector deserves. These were the release of the National Urban Sanitation Policy in October 2008, the Third South Asia Conference on Sanitation and the Delhi Declaration in November 2008, launch of the New Guidelines for National Rural Water Supply Programme, April 2009 and new Guidelines for Nirmal Gram Puraskar, August 2009. All these have somewhat paved the way for ‘clean drinking water, sanitation and clean living conditions’ for allwhich the Eleventh Five Year Plan envisages.
work of Centre for Budget and Governance Accountability, 2010

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