Economic Survey 2011: Converge schemes without duplication

Reforms and convergence in schemes are the key takeaways for the social sector in the Economic Survey.

“More” reforms in the education system and health sector are needed to reap the benefits of the demographic dividend. It stresses on the need of “vision”, “long-term plan” and “bold decisions”.

There has been an increase in the expenditure on social services. It increased since 2005-06, from 5.49% of the GDP to 7.27% of GDP in 2009-10. However, the budget estimate for 2010-11 reveals a dip in the share to 6.63% of the GDP. This fits in with the Survey’s stress on the government’s challenge in mobilising funds, especially in the area of higher education. This is where, the Survey steps in to make a definite pitch for tailor-made public-private partnerships in the social sector — particularly higher education. However, this should not be at the expense of government’s regulatory oversight.

A larger outlay by the government, the emphasis put by the Survey must be accompanied by firm policy structures for effective implementation. To this end, the Survey has suggested the use of outcome budgets and Unique Identification ( UID).

Even as the Survey recognises the role of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in creating employment opportunities and putting additional money in the hands of the poor and disadvantaged, it has called for further improvements. The specific improvements include shifting the scheme towards permanent asset building and infrastructure development activities, reducing transaction costs, and extending the scheme to urban areas.

Two other interventions have been suggested for this employment guarantee scheme. First, its implementation shouldn’t result in shortage of labour during the agricultural season. Secondly, efforts should be made to ensure its convergence of various employment and poverty alleviations schemes to avoid duplication and leakage.

A discussion on human development indices necessitates a simultaneous one on the environment, especially as adaptation to climate change is becoming increasingly important. Adaptation effort inevitably is about assisting vulnerable population, and helping them build their lives to be able to deal with impacts of climate change on their livelihood pattern and habitat. Once again there is a close connection between the social sector, poverty alleviation and employment schemes. The Survey reiterates the need for proper balancing of the “climate” challenge and “growth” challenge. In doing so, it would appear to have not adhered to its own suggestion of “vision” and “bold decisions”. Instead, the Survey appears to come down on the side of “growth”.

“Careful planning and customised policies are needed to ensure that the green growth strategies do not result in slow growth strategy.” Clearly, the Survey is not looking beyond a conventional approach to growth. However, within this approach it accepts that environmental protection is important. The Survey has suggested the idea of forest banks, which would mean demarcating certain forest areas as inviolate. The focus of reform in education is clearly in the higher education sector; reform in primary education has been addressed in a measure the Right to Education.