Status of social sector in India-The problem of moving attention away from services

Source: The post status of social sector in India has been created, based on the article “The problem of moving attention away from services” published in “The Hindu” on 2nd February 2024.

UPSC Syllabus Topic: GS Paper2- governance-Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

News: This article discusses the Indian Finance Minister’s budget speech, highlighting the government’s achievements over the past 10 years and its plans for future spending. It critiques the speech for lacking major new announcements and questions the government’s claims about poverty reduction and income growth.

What is the current status of social sector in India?

Multidimensional Poverty: The government claimed to have lifted 25 crore people out of multidimensional poverty in 10 years.

Income Levels: It’s noted that average real income reportedly increased by 50%, but this average doesn’t reflect changes in the poor’s lives.

Real Wages: Real wages have been stagnant, with rural worker earnings barely increasing from $3 in 2004-05 to $4.80 in 2014-15.

Job Scenario: The increasing share of agriculture in employment and high demand for jobs under MGNREGS suggest limited non-agricultural job opportunities.

Women’s Labor Force Participation: The increase in women’s participation is viewed more as a sign of economic distress rather than improvement.

What are the provisions for the social sector in the Budget for 2025?

Overall Social Sector Funding: The 2025 Budget maintains most social sector scheme allocations at levels similar to the previous year.

Education Sector: Allocations for school and higher education departments show nominal increases compared to last year’s BE, around 6-8%.

Health and Family Welfare: The health and family welfare departments also received similar nominal increases.

Anganwadi Centres: The budget for Saksham Anganwadi at ₹21,200 crore is slightly lower than the RE of ₹21,523 crore for 2023-24.

Mid-Day Meal Scheme: The PM-POSHAN budget for school mid-day meals is ₹11,600 crore, compared to the RE of ₹12,800 crore for 2023-24.

Social Assistance Programs: The allocation for the National Social Assistance Programme, which includes pensions, was only ₹9,652 crore, lower than the ₹10,618 crore in 2014-15.

Way forward

To ensure balanced development, the government needs to prioritize basic education, health, and nutrition, which have been overshadowed by high-profile schemes (such as the Awas Yojana or sanitation). Addressing these fundamental areas, along with creating diverse employment opportunities, is crucial for reducing inequalities and fostering a more inclusive and sustainable economic growth.

Question for practice:

Evaluate the effectiveness of the government’s approach to addressing multidimensional poverty and income growth in India over the past 10 years.