This issue of Budget Track draws attention to government provisioning for some basic problems confronting the common people – concerns relating to food security and nutrition, livelihood security and adaptation to climate change. Volume 7, Track 1 October 2009 Our piece on Budget and Policy Tracking is set at a time when the government is grappling with issues like the global economic downturn, drought, rising IN THIS ISSUE prices and food insecurity. For the first time, the piece tracks the major issues that were deliberated and discussed in Parliament in response to the Budget and Policy Tracking Union Budget, and flags some important legislations that were introduced Divya Singh 2 or have been passed such as the Right to Education Bill. It also assesses critical policy proposals such as the Unorganised Sector Workers’ Social Universalising ICDS: Skewed Security Bill, the new Direct Tax Code 2009 and the Unique National Outreach and Poor Service Identity number/card (UID) project. A brief discussion on the mid-term Delivery review of the Eleventh Five Year Plan is also made. Jawed Alam Khan 9 In the context of assessing the progress made in the Eleventh Plan Climate Change: External and commitments and as a pre-budget exercise, CBGA attempted estimation of Internal Realities for India the financial resource requirement of some of the programmes and schemes Gyana Ranjan Panda & Kaushik that cater to critical needs of the common people. The articles on Right to Ganguly 16 Food and Integrated Child Development Services discuss the key issues as well as outline what is needed in terms of finances if these critical entitlements are Cost Provisioning towards Right to be made available to the people. The piece on Climate Change traces the to Food developments in the discourse on government policy stance on public Nilachala Acharya 22 provisioning for climate change. Unarguably, the most successful initiative of the UPA – the National Rural Employment Guarantee Scheme (NREGS) has improved livelihood security among rural households in the country. Guest Column: Taking Goals of However, concerns with regard to the existing design and implementation of NREGS persist. The guest article by Dr. Mihir Shah throws light on this. NREGA-I Forward Mihir Shah 26 We do hope this issue would be useful in your advocacy efforts.

Centre for Budget and Governance Accountability A-11, Second Floor, Niti Bagh Khel Gaon Marg, New Delhi - 110 049 INDIA Phone: +91-11-4174 1285 / 86 / 87 Fax: +91-11-2653 7603 Email: [email protected] Website: www.cbgaindia.org

Views expressed in the articles are those of the authors and not necessarily the position of the Organisation.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 1 fallout of the global slowdown on the Budget and Policy Tracking Indian economy”. The recession and its Divya Singh ramifications can be seen through three interlocking problems – credit crunch The Congress-led United Progressive debates and legislation, and time lost due leading to the financial crisis, fluctuations Alliance (UPA) government has completed to interruptions and legislations passed in oil prices with a trend towards upward over six months in office in its second during the first Budget Session of the 15th movement, and food shortages. The consecutive term at the Centre during Lok Sabha from July 2 to August 7. convergence of crises in credit, energy and which it presented the Union Budget, agriculture holds serious implications for ostensibly delivering on the electoral plank The Lok Sabha spent around 50 percent the Indian economy and the budget. of promoting “inclusive growth and of productive time on budgetary matters Commendably, the government ignored equitable development”. The budget was while topical issues like inflation, swine flu, the target set by the Fiscal Responsibility prepared at a time when the economy was drought, Naxalite problem and terrorism and Budget Management (FRBM) Act in a slump, confronting issues like the consumed greater space during debates in and demonstrated its inclination to global economic downturn, drought, the house. Considerable time was spent on expand the budget size even at the cost of rising prices and food insecurity. With legislation of Finance and Appropriation increased borrowing. Several political buoyancy, new hopes set in. Bills, and three such bills were tabled and commentators, however, attributed the However, complacency has taken root in passed during the session. Besides the significant increase in the budget to salary the renewed commitment halfway through Right to Education Act the lower house hikes under the Sixth Pay Commission the first year. passed the Constitution (109th and higher interest payments, sowing the Amendment) Bill to extend reservation seeds of doubt about whether there was The current budget and policy tracking for Scheduled Castes/ Scheduled Tribes any positive impact of increased macro-scans policy measures of UPA II, (SC/ST) in the Lok Sabha and State expenditure on the social sector. This is beginning with an appraisal of Union Legislative Assemblies. The Workmen s borne out by the fact that there is an Budget 2009-10 to assess the real priorities Compensation (Amendment) Bill insignificant increase in allocations of the government with regard to specific pertaining to revision of the minimum towards sectors like education and health. sectors. The major issues that were wage ceiling, and the National The social sector accounts for a mere 1.8 deliberated during the course of debate Commission for Minority Educational percent of Gross Domestic Product and discussion in response to the budget Institutions (Amendment) Bill removing (GDP), as spending from the Union are summarised, and some important the requirement of consultation with the Budget legislations introduced, pending or passed state governments on appeals on minority such as the Right of Children to Free and status, were also introduced in the house. How Much and to Whom? Compulsory Education Bill, are evaluated. On the other hand, a large part of The Central governments budgetary It also assesses the Unorganised Sector productive time in the Rajya Sabha went outlays for education rose nominally to Workers Social Security Bill and Womens into discussing working of various 0.76 percent from 0.7 percent in the last Reservation Bill, which are still under ministries, and three bills were passed by it. fiscal. This is hardly enough. While consideration, and examines the proposed technical education got a better package, new Direct Tax Code, 2009, mid-term The time spent on budget discussion in in the setting up of new Indian Institutes review of the Eleventh Five Year Plan and both houses has gone up ever since of Technology and Indian Institutes of expansive Unique National Identity department related Standing Committees Management, elementary education was number/card (UID) project. for examination of bills were constituted practically neglected with allocations for in 1993. Prior to that, budgetary Sarva Shiksha Abhiyan (SSA) and Mid-Day Union Budget 2009-10 in Parliament proposals were straight away discussed on Meal (MDM) schemes remaining almost There are several steps involved in the floor of the house instead of being stationary. The outlay for Health and legislative approval of the budget like referred to the Parliamentary panels, the family welfare increased from Rs 18,467 presentation by the finance minister, number of which has increased from 17 to crore in 2008-09 (RE) to Rs 22,641 crore general discussion and detailed discussion 24 over the past 15 years. in 2009-10 (BE), still an insignificant and voting on it. Two months after the proportion of total expenditure. Of this, UPA returned to power, the Union Meltdown and Budget: The ongoing Rs 308 crore was apportioned to Budget for 2009-10 was presented by global economic meltdown has had a Rashtriya Swasthya Bima Yojana, which is Finance Minister Pranab Mukherjee on ripple effect on India and the new grossly inadequate for health insurance July 6. Before elaborating on the budget governments maiden budget too. As stated coverage of all below poverty line (BPL) and its ramifications for the social sector by Mr Mukherjee in his Budget speech, families. and common people, this policy scorecard short-term measures were required for does a quick recap of the time spent on economic revival to “counter the negative The share for rural water supply inched

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up and that of rural sanitation stagnated. welfare of children remained low and financing through public-private Urban water supply and sanitation fared recorded a meagre increase from 4.13 partnership mode. Several MPs raised even worse with outlays for Integrated Low percent of Total Budget Expenditure in concerns over discrimination of certain Cost Sanitation Scheme being slashed 2008-09 to 4.15 percent in 2009-10 (BE). regions Himalayan region, state of Bihar from Rs150 crore in 2008-09 (BE) to Rs The duration of Integrated Child and tribal areas of the northeast. Basudeb 60 crore in 2009-10 (BE). Nonetheless, Development Services was extended, as per Acharia (CPI-M) stressed on the need to rural development received a quantitative the National Common Minimum improve railways infrastructure, ensure hike (almost 43 percent higher than Programmes commitment to universalise on-board and out-board safety and allocations in 2008-09). This was because the scheme by 2012. security as well as to check red-tapism, of outlays for National Rural corruption and pilferage. Hansraj G Ahir Employment Guarantee (NREGA) The vulnerable SCs and STs were also (BJP) pointed out the low provisioning for Scheme, Indira Awaas Yojana, Accelerated neglected with no new ministry/ tribal-dominated forest and hilly areas. Irrigation Benefit Programme and department reflecting plan allocations in Rashtriya Krishi Vikas Yojana. Government Union Budget 2009-10 as compared to Another issue that figured prominently in spending on rural development has 2008-09, which allotted packages for the Lok Sabha was the swine flu increased over the years and the corpus Scheduled Caste Sub Plan and Tribal Sub pandemic, reasons for spread of the for NREGA went up 30 percent in 2009- Plan and for most ministries/departments. H1N1 virus in India and possible 10 (BE) over 2008-09 (RE). This The minorities were given a moderate mitigation and prevention measures. essentially demonstrates its political budget with the outlay for the Ministry of Sandeep Dikshit (Cong) called for importance, given that the Congress-led Minority Affairs increasing by 73 percent strengthening the public health system to coalition partly rode to victory in the from 2008-09 (BE). combat the threat. With less than a year General Election on the NREGA and to go for the prestigious sporting event, Right to Food platform. The budget does reflect the willingness of quite a few members underscored the need the Congress-led UPA to recognise the for speeding up preparation for Food insecurity and farmers suicides need for adopting a progressive fiscal Commonwealth Games 2010. Issues like notwithstanding, agriculture has not policy in the country, instead of blindly cross-border terrorism, Indias support for received the priority it deserves. adhering to fiscal orthodoxy in the sphere relief and rehabilitation in Sri Lanka and Government expenditure on rural of public spending. However, this to the peace process in Nepal – including economy as a proportion of GDP has recognition seems to have come only in the material assistance to its civil security risen but mainly for payment to wake of the global economic recession, forces and law-enforcing machinery and manufacturers/agencies for concessional and it could be short lived depending on support to elections in the Himalayan sale of decontrolled fertilisers. The finance when the Indian economy regains its republic – were also discussed. minister did announce an entitlement of growth trajectory. There is no evidence to 25 kg of rice/wheat per month to every believe that the present government is The General Discussions on the budget BPL family in rural and urban areas, in going to remain committed to even the saw the ruling UPA come in for criticism keeping with the election promise of small shift towards a more progressive from the Opposition on various counts. bringing in a National Food Security Act, fiscal stance, which Union Budget 2009- Senior BJP leader Murli Manohar Joshi but no specific measures were initiated to 10 has shown. remarked that allocation for agriculture boost agriculture. amounted to only one percent of total Debates during Session expenditure and that provisioning for In the environment sector, the budget The Budget Session was witness to a health was grossly inadequate. He also increased the grants under National River number of crucial debates like rising fuel raised issues like scarcity of water, inflation and Lake Conservation Plans and prices, its implications and actions the and rising prices and demanded insurance proposed allocations for the eight government must initiate. It saw Railways cover/adequate sources of credit for independent missions under National Minister Mamata Banerjee present the farmers. M Thambi Durai (AIADMK) Action Plan on Climate Change Rail Budget in which she announced said there was no long-term strategy on (NAPCC), which represent a multi-level, setting up an expert committee to advise fiscal consolidation and stressed on long-term and integrated approach to her on financing and implementation of investment in irrigation. Bhartruhari address global warming. Welfare schemes socially desirable but economically Mahtab (Biju Janata Dal) said the outlays for women suffered a major setback with unviable projects and promised to bring for social sector flagship schemes were low budgetary allocations slumping a out a “white paper” on the organisational, and that it reflected a lack of seriousness staggering 42 percent from 2008-09 (BE), operational and financial position of on the part of the government. Kirodi Lal especially important programmes like Indian Railways based on the past five Meena (BJP) commented that allocations Swadhar, Swayamsiddha and Hostels for years. She spoke of developing 50 world- aimed at addressing the issues of food Working Women. Likewise, spending on class railway stations in the country with security, financing of Right to Education

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Bill and NREGA were insufficient while the power shortfalls in most states of the lack of proper health facilities, literacy and Nama Nageswara Rao (Telugu Desam country, this seems inordinately low. MPs child labour and urged minimum wages Party) called for minimum support price raised several issues relating to the power for Anganwadi workers. The need to to address farmers grievances. sector including supply-side bottlenecks, strengthen National Rural Health Mission demand-side management and and start comprehensive schemes for During Demands for Grants, only four unacceptable levels of financial losses in women and children living in urban slums ministries were discussed in detail distribution. There was a general demand was underscored and budgeting demands Agriculture, Home Affairs, Power and for stepping up new electricity generating were made for protection of adolescent Women and Child Development. BJP units and for sufficient investments in women, construction of hostels for President Rajnath Singh pointed out that renovation and modernisation of existing working women, imparting training to allocation towards agriculture was plants. State Electricity Boards/Utilities women in agriculture, fisheries, animal extremely low and the budget for food (SEBs) have been incurring heavy losses husbandry etc. The Houses attention was processing was meagre. Rewati Raman due to erratic power supply, discouraging brought to the overall decline in Singh (Samajwadi Party) contended that investments by private players. The Central allocations to schemes for women and the loan waiver announced by the Electricity Regulatory Commission children, including for implementation of government would help only those farmers (CERC) needs to announce regulations the ban on child labour, and the low who have availed loans from government under National Tariff Policy, 2006, to outlay of Rs 3.6 for new interventions like banks and not those who were tied to rationalise tariffs and the policy of power the Conditional Maternity Benefit moneylenders while Tarun Mondal subsidies to farmers requires a review. Scheme. It was also mentioned that (independent) demanded better irrigation More often than not, flat rate pricing allocations for SSA and MDM have facilities, seeds and fertilisers. Reviving of tends to benefit large landowners more remained the same. Similarly, there were the public distribution system to make it than the targetted small/ marginal farmers demands for depoliticising and revamping more affordable and food security were and programmes to address this problem of the National Commission for Women also emphasised. need to be devised and implemented. (NCW) and State Commissions for Some MPs pointed out that a large Women with suitable amendments in the The issue of national security was raised by number of beneficiary families of the of NCW Act. This was followed by Sushma Swaraj (BJP) who said the Rs 100 Rajiv Gandhi Grameen Vidyutikaran Yojana presentation and discussion on the crore allocated to the Ministry of Home were living without electricity and Finance Bill. Affairs for maintenance of national demanded that new mechanisms be put in security was inadequate. place for better outreach of the scheme. Problems arising from drought and floods Members from Bihar and Uttar Pradesh in various parts of the country were also She questioned the purpose of the new complained of neglect of their states in discussed with the assertion that food UID card project when a similar scheme terms of power supply. security for all be the primary priority of (Multipurpose National Identity Card) the government. Members stressed that was already in operation as well as the In Demands for Grants relating to the priority be given to agriculture through rationale of allocating Rs 10 crore to Ministry of Women and Child sustained fertility of land, reduced use of MNIC and Rs 120 crore to UID. The Development, BJP MP Sumitra Mahajan chemical fertilisers and water harvesting. Deputy Leader of the Opposition also initiated the discussion by pointing out The need for proper water management pointed out that a paltry sum was allotted that Integrated Child Development to avoid floods and droughts in the future to rehabilitation of the displaced people in Services (ICDS) was not specifically was underscored and a suggestion made Jammu and Kashmir. Sanjay Nirupam mentioned in the budget and that an for issuance of Kisan smart cards, based (Cong) raised the issue of Naxalite violence insignificant outlay of 0.08 percent of on land holdings with subsidy/bonus in Chhattisgarh and Jharkhand, and total expenditure was made towards child deposited directly into their account, to urged for more funds for development of protection schemes. She said the give a fillip to the farm-based economy. these areas. Under the MHA purview, allocation for National Nutrition Mission more allocations were demanded for was highly inadequate and that for Important Bills Passed or Pending stricter vigil in coastal areas and for police Swadhar Yojana a scheme for Over the years, several important reforms. Kalikesh Singh Deo (BJD) rehabilitation of widows and harassed and legislations aimed at addressing the rights stressed the need to evolve a national abandoned women was stagnant. The and needs of the marginalised sections of refugee law for immigrants living in the allocation has remained Rs 13.5 crore society, have gathered dust in the hallowed country and for increasing the allocation since its inception in 2002-03. She also portals of Parliament. Some of these bills towards security of metropolitan cities. pointed that the funds for welfare of relating to the development sector were Muslim women was below par. Sushila passed during budget session 2009-10; The outlay for the Ministry of Power was Saroj of SP referred to the poor some are under consideration while still increased from Rs 40,000 crore in 2008- allocations for addressing malnutrition, others are at the drawing board stage. A 09 to Rs 50,000 crore this year but, given

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quick look at the legislations tabled this consisting of elected representatives of upgradation and so on. The schemes will session and what promises the enacted bills the local authority, parents, teachers be financed by the Central and state hold for the common people. and community members should be governments, employers and employees. constituted for every state school and Bills Enacted: aided school. Three-fourths of the The bill is not a first step in this direction. Right to Education: The Right to members should be parents or There are a number of programmes/ Education Act, 2008 is an “Act to put guardians of those studying in the schemes providing benefits to unorganised into Effect the Right to Free and school. sector workers, both rural and urban. The Compulsory Education to all children in O After commencement of the RTE bill lists 11 previously existing schemes and the age group of 6-14 years”. It ensures all Act, only persons possessing the government requires legislative children of the stipulated age group free qualifications as prescribed by the approval for funding of any of the and compulsory education of an equitable National Council for Teachers schemes. It would also require legislative quality. The Act delineates the right of Education (NCTE) Act should be approval if the schemes are to be partly every child; the responsibility of the state, appointed teachers while those funded by employers and employees. parents, schools, teachers; the content of serving who do not possess the education; and the monitoring process for requisite qualifications should be The draft social security bill was its implementation. encouraged to acquire an equivalent formulated by the National Commission degree. for Enterprises in the Unorganised Sector The main tenets of the Act are: (NCEUS) chaired by Arjun Sengupta in The Act has been criticised for allegedly September 2004. NCEUS was constituted O Every child who has attained the age perpetuating discrimination against to examine problems faced by of six years and is under 14, should children from government schools since it unorganised sector workers and suggest have the right to full time elementary prescribes additional deployment of remedial steps, to review existing schemes education. government schoolteachers for conduct of and recommend ways to increase their O It would be the responsibility of the censuses, elections etc. This adversely coverage. The bill has made various state to ensure provision of free affects the childrens studies. The definition recommendations regarding improvement education to all children between 6 of “equitable education” has also come in working conditions and provision of and 14 years. It must ensure under a cloud as it refers only to physical social security benefits to informal sector availability of neighbourhood schools infrastructure and not to expectations on workers, both agricultural and non- or provision of transportation for learning outcomes. Further, the Act agricultural. The panel drafted two bills the children in case the schools are prohibits anybody from preventing Unorganised Sector Workers Social not close by. children from going to school but does Security Bill, 2005, and Unorganised O It would be the responsibility of not address the related issue of child Sector (Conditions of Work and parents to admit every child/ward in labour. It excludes children in the 0-6 age Livelihood Promotion) Bill, 2005. a school as soon as he/she reaches the group, hence ignoring the importance of age of four, and to ensure completion early childhood education for overall The draft legislation covers the entire of their elementary education. development. The bill has also been country and all workers earning below Rs O All state schools, barring fully aided denounced by some commentators for 5,000 per month including small and schools/schools of certain specified not providing for a common school marginal farmers, self-employed workers, categories, must provide free and system and thereby promoting and informal workers in the organised compulsory education to all entitled discrimination through the multi-layered sector without any semblance of social children. Aided schools, except fully education system. security. It seeks to provide minimum aided ones, must admit at least 25 social security cover comprising (1) old age percent children belonging to weaker Bills under Consideration pension for workers above 60, (2) health and disadvantaged groups. The Unorganised Sector Workers Social insurance for self, spouse and children O Schools of specified categories and Security Bill: The Unorganised Workers below 18, (3) maternity benefits for unaided schools must admit at least Social Security Bill would enable the women workers and spouses of men 25 percent children admitted to class Central and state governments to workers, (4) death insurance and disability I from among children belonging to formulate welfare schemes for insurance in case of accidents at weaker sections, randomly selected by unorganised sector workers, providing workplace. the school, and ensure their benefits in areas like life and disability continued education till completion insurance, health and maternity benefits, The bill does not aim to replace existing of elementary education or till they old age protection, provident fund, schemes for the welfare of informal sector seek transfer from the school. employment injury benefits, housing, workers but recommends that if the O A School Management Committee educational schemes for children, skill requisite funds are available, additional

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schemes might be formulated for their of all seats in the Lok Sabha and representation of those from economically benefit. It has chalked out an elaborate State Legislative Assemblies for and socially backward sections. institutional set up for implementation women. This determination of through social security boards supported reserved seats would be done by an Some commentators and scholars argue by a general council and executive councils authority prescribed by Parliament. that the provision might “ghettoise” at the Central and state government levels. O One third of the seats for SC/ST women in politics and lead to women Workers would be entitled to benefits would be reserved for women in the fighting one another in women only through workers organisations or other Lok Sabha and State Legislative constituencies, which would not give them bodies like panchayats decided by the state Assemblies. The reserved seats will be the requisite confidence or experience in board concerned. Every worker above 18 allotted to various constituencies the political arena. Hence, a measure would be eligible for registration and be through rotation in the State/Union seeking to bridge gender divisions would given a unique identity card and social Territory. end up “creating new gender divisions,” security number. This would help migrant O The reservation will cease 15 years they say. There are also apprehensions workers to claim social security even if they after commencement of the about proxy politics, with women have migrated to distant places. Amendment Act. representatives being pawns of vested interests, gaining ground. The Parliamentary Standing Committee Context of the Bill: There are extremely on Labour examined the bill and divergent views on reservation of seats for Despite fears about the proposed bill, it is recommended several amendments women in the legislature with its likely that women lawmakers represent including provision of a statutory right for proponents arguing that such a measure gender interests better. Moreover, their national minimum benefits, coverage would help in improving the status and importance in influencing the policy within specified a time-frame and visibility of women in public life while its agenda cannot be overlooked. Greater constitution of a National Social Security opponents call it elitist. It is especially representation of women in decision- Fund. important as women constitute a making bodies would also help in vulnerable section of the population and changing/reforming the norms and The Left parties have demanded that the are agents in the development process. principles that govern distribution of recommendations of the Standing Several international reports indicate that power and resources in the country. Committee be included in the draft India s poor development indices are legislation. While the bill has been tabled largely due to the lack of women in policy- Important Policy Measures in Pipeline several times, it still has to be passed. The making. In this respect, womens (a) Mid-Term Appraisal of Eleventh Five informal sector workers, whose numbers empowerment through enhanced decision- Year Plan: The Government of Indias have swelled over the years, work without making capacity in the political sphere is resolution in March 1950 setting up the minimum job security, minimum wages or crucial for inclusive development and the Planning Commission envisaged that each any other benefits like medical insurance logical first step towards it would be stage of the Plan needs to be reviewed and disability benefits. Despite a few reservation of legislative seats. periodically and. If need be, adjustments shortcomings (that can be ironed out), the of policies made and measures bill would contribute to addressing some Right from its adoption, the Constitution recommended. In line with this role, the of the crucial needs of unorganised sector has deemed reservation an important panel has initiated the process of mid-term workers as and when it gets passage mechanism to secure economic, political appraisals, which detail the performance through Parliament. and social rights of vulnerable groups like of the economy as a whole and the SCs and STs. It also approves of individual sectors in comparison with the Womens Reservation Bill: For over a appropriate use of legislation to redress plan targets. Its primary objective, as decade now, the Women s Reservation Bill inequality and prevent the infringement of described by Planning Commission has been a thorny issue among politicians womens fundamental, democratic and Deputy Chairman Montek Singh and a subject of heated debate within human rights. Ahluwalia, is a “course correction” and Parliament and outside. It also featured as not a mechanical exercise undertaken one one of the women-centric welfare measures One of the biggest hurdles in passage of in five years. on the UPA governments agenda for its the bill is the demand for “quota within first 100 days in power, but the bill failed quota” raised by some political parties. The Planning Commission is due to to see the light of day in Budget Session They want reservation for women from complete the mid-term review of the 11th 2009 either. Other Backward Classes (OBCs), and an Five Year Plan period by the yearend, and appropriate amendment to this effect, on submit its report before the National The highlights of the bill are: the contention that women from upper Development Council, the countrys O The Constitution (108th Amendment) castes/classes would otherwise be elected highest decision-making body, in January. Bill, 2008, seeks to reserve one-third to the legislature leading to uneven The drought and spiralling prices of

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essentials combined with the global responsibilities between the Centre and in June appointed a high-powered economic recession have brought along states both the vertical imbalances and the committee to evolve a database of with them unforeseen challenges and the existing horizontal inter-state imbalances. permanent identifiers of Indian citizens, to review would help address these, while also It has been mandated to come up with a deal with illegal immigration, cross-border redefining the priorities and policies of the revised roadmap for a new fiscal terrorism and other national security government. architecture, keeping in view the urgent issues. The UID project, if implemented, need to formulate a more comprehensive would also address development sector Apart from the plan panels report, a civil goods and services taxes. issue by delivering/targetting schemes to society initiative The Peoples Mid-Term those who really need them. The Centre is Appraisal would review the 11th Plan from Despite an improvement, the fiscal currently pilot testing the project in select the perspective of the people for whom the situation is a matter of concern in light of districts of a few states, particularly in development schemes/programmes have the continuous rise in global oil prices, border areas of the country. been formulated. It would assess the extent increased capital flows and the to which the Plan has been able to achieve governments “obligations on the deficit” Infosys co-founder Nandan Nilekani, who its stated objectives and address the needs target (ToR). The commission, therefore, has taken over as chairperson of the of the people. needs to focus on augmenting investment Unique Identification Authority of India, in physical and social infrastructure to describes the UID project as a single, non- (b) The 13th Finance Commission: The support higher growth given the wide duplicate way of identifying a person primary responsibility of the Finance disparities between states and pressures through a mechanism that can be Commission as laid down by Article 280 from competitive politics. authenticated anywhere in the country. (3) of the Constitution is to make The unique identity number card would recommendations to cover at period of (c) Initiative for Integrated District carry the name, age, sex, date of birth, five years from 1st April, 2010 to 31st Plans by the Planning Commission: An address as well as individual biometrics, March, 2015. These relate to (1) expert group chaired by V which could be a combination of Distribution of the net proceeds of taxes Ramachandran, former Chief Secretary fingerprints and photograph this is yet to between the Centre and the states, (2) of Kerala and Vice-Chairman of the state be finalised by the biometrics committee. Rules governing grants-in-aid to states Planning Board, has been appointed to The government deems the project crucial from the Consolidated Fund of India and carry out a study and chalk out steps to for improving efficiency of public service (3) Steps needed to improve resources of make grass-root level planning a reality. In delivery of interventions to the needy and panchayats and municipalities in the its report, the exert group has made a wants to ensure that the database states. It will also review the financial number of suggestions, including an action developed is foolproof and secure. This condition of states with regard to debt plan for local-level planning in the could be a major challenge once the UID consolidation and fund relief expenditure. Eleventh Five Year Plan. It has system is in operation and it becomes The recommendations are usually recommended making panchayats the ubiquitous in many applications. The intended to reflect emerging fiscal trends nodal agencies for effective project has also come in for criticism due in Centre-state relations and, ideally, implementation of national flagship to the massive investment required to governments at both levels should be schemes/ programmes in areas like health, develop and apply the technology to treated as equal partners to resolve the education, employment and poverty catalog identification parameters of an vertical imbalances between the two. alleviation. It has also advised clear, over one-billion population. The money, unambiguous mapping of activities at some commentators and political parties th The Terms of Reference (ToR) of the 13 various levels of the panchayats on the say, could be put to better use in various Finance Commission appear in favour of principle of solidarity for better social sectors and have a more significant the Centre. One of the important management and planning; streamlining impact on the life of the ordinary citizens. demands on the Union Budget is gross and consolidation of schemes; and (e) Direct Tax Code: The Finance budgetary support to the Central and assignment of significant revenue raising Minister in his Budget speech referred to state plans but no mention has been made capacity to the local governments. Based completing the economic reforms process of the needs of the states. However, the on its recommendations, the Centre has by building “a trust based simple, neutral ToR that favour the Centre, the issued directives to governments in all the tax system with almost no exemptions and commission can take into account the states and union territories to formulate low rates designed to promote voluntary needs of the states in its report expected to and incorporate the District Plans in the compliance”. He said the purpose of the be submitted by the end of December. Annual State Plans. new Direct Taxes Code was to “simplify The base year of the 13th Finance the enormous complexities in the direct Commission is 2008-09, a year of low (d) Unique National Identity number/ tax system since the enactment of Income revenue, and its main challenges are card: On the recommendations of the Tax Act of 1961”. The main objective of improving the fiscal situation, addressing Administrative Reforms Commission the tax reforms is to improve efficiency anomalies in distribution of resources and report on e-Governance, the government and equity of the tax system by

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“eliminating the distortions in the tax welcomed the draft proposal on the that the new code would lead to greater structure, introducing moderate levels of assumption that they would have to pay transparency in the revenue structure. taxation and expanding the tax base”. The lower taxes. The loss of revenue that might The government has decided to reduce the draft code seeks to consolidate and amend be incurred in the process would tax rates by widening the tax slabs and the law relating to all direct taxes to purportedly be compensated by expansion reducing rates but this decision may not go establish an economically efficient, of the tax base and greater taxpayer well with some corporates, which have effective and equitable direct tax system compliance due to simplified procedures. been reaping the benefits of tax sops in the that would facilitate voluntary compliance past. The economists say this might lead to and help increase the tax-GDP ratio. The code seeks to broaden the tax base by restoration of the exemptions while doing away with a lot of concessions and retaining the new reduced tax rates and The income tax structure has become preferences to avoid distortions in the slabs. In the long run, actual extremely complex owing to the number economy, reduce compliance costs and implementation of the new direct taxes of exemptions and tax preferences, which ensure greater horizontal equity. It helps code would depend on how effectively the have eroded the tax base and affected eliminate bias, which over the years have Finance Minister resists pressure from resource allocations. The new tax code become an inextricable part of the tax corporate lobbies and tax payers who proposes an all-round reduction of the structure, and to raise revenues with lower might want the new reduced tax rates tax rate. Media and corporate houses tax rates. Some economists are of the view along with the old exemptions.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 8 Universalising ICDS: Skewed Outreach and Poor Service Delivery Jawed Alam Khan

“The UPA will universalise the Integrated Child Development Services (ICDS) to provide a functional anganwadi in every settlement and ensure full coverage for all children.” (National Common Minimum Programme of United Progressive Alliance government, 2004)

“The Indian National Congress commits itself to the universalisation of ICDS by March 2012 and to provide an anganwadi in every habitation and full coverage of children upto the age of six for food, nutrition and pre-school education.” (Congress Election Manifesto, 2009)

More than three decades since the cross- cover 6,110 projects and 1,044,269 Thirty-four years down the line, the sectoral programme was launched to Anganwadi, or childcare, Centres (AWCs) programmatic intervention does not seem target the health, nutrition, non-formal by March, 2009. It is supposedly one of to have made a significant dent in education and other development needs the biggest integrated programmes for outcome indicators as reflected through of underprivileged children below six years early childhood care (India also has the statistics of National Family Health of age, the outreach of ICDS has world’s largest child population) with the Survey-3 (NFHS-3) in 2005-06: remained limited with the government key objectives of tackling the “challenge of having to periodically renew its pledge of providing pre-school education on one O Around 46 percent of all children universalisation. As things stand today, hand and breaking the vicious cycle of under three are underweight (it was India still posts alarmingly high figures on malnutrition, morbidity, reduced learning 47 percent as per NFHS-2 in 1998- child and maternal mortality, capacity and mortality, on the other”. The 99) malnutrition and anaemia, largely due to scheme primarily focuses on O Almost 80 percent children in the age poor quality of early childhood care supplementary nutrition, non-formal pre- group of 6-35 months are anaemic. services, inadequate public provisioning school education, immunisation, health O Only 23 percent babies are breastfed and weak integration of various ICDS check-ups, referral services, and nutrition within one hour of birth, and just components catering to a vulnerable and health education for children/ about 46 percent are exclusively population of 15.8 crore who have just pregnant and nursing mothers. Its breastfed for the first six months. started out in life. beneficiaries are children in the 0-6 age O Only 44 percent of all children in the group, adolescent girls, pregnant and 12-23 months age group have Recognising that early childhood is the lactating mothers. most crucial period for laying the foundation for lifelong learning and Table 1: Services, Target Groups & Service Providers under ICDS development, the Central government Services Target Group Services Provided By brought out the National Policy on Supplementary Children below 6 years, pregnant Anganwadi Workers Children in 1974 declaring them to be Nutrition and lactating mothers (AWW) & Anganwadi “supremely important assets” of the Helpers (AWH) country. It also admitted that a Immunisation Children below 6 years, pregnant ANM/MO/ASHA “significant proportion” of children live in and lactating mothers conditions of abject poverty with poor environmental sanitation that leaves them Health check-ups Children below 6 years, pregnant ANM/MO/AWW/ and lactating mothers ASHA prone to disease and infection, and have unequal access to primary healthcare, pre- Referral Children below 6 years, pregnant AWW/ANM/MO/ school education and other life chances. and lactating mothers ASHA Pre-School Education Children between 3-6 years AWW Against this backdrop, ICDS was Nutrition & Women between 15-45 years AWW/ANM/MO launched on October 2, 1975, in 33 Health Education Community Development (CD) Blocks of Source: Ministry of Women and Child Development (MWCD), Government of India various states and gradually expanded to

CBGA Budget TRACK Vol. 7, Track 1, October 2009 9 Universalising ICDS: Skewed Outreach and Poor Service Delivery

received all the recommended outlays, outputs, quality of service delivery beneficiaries are provided supplementary vaccinations and implementation problems specific to nutrition in the form of hot cooked meals O Only half the pregnant women have ICDS need looking into. (children in 3-6 age group) and take-home availed of at least three ante-natal ration (children below 3 and pregnant care (ANC) health check-ups. Scheme Design and lactating mothers). The financial O As many as 57 out of every 1,000 ICDS was designed to effectively reduce provision in terms of daily unit (per children die before they reach the age infant mortality, combat malnutrition beneficiary) costs for each category is given of one. and improve maternal and child health. in Table 2. At the village level, AWC is the only ICDS is currently being implemented institution responsible for health, pre- Pre-School Education nationwide with the help of state school education and welfare of mothers, The pre-school education component for governments and its outreach and children and adolescent girls. In this the 3-6 age group is crucial for the holistic coverage area has gone up considerably process, Anganwadi Workers (AWWs), development of children by making them over time, but several studies point out Auxiliary Nurse Midwives (ANMs), school-ready and inculcating in them a that the quality aspects of services delivery Accredited Social Health Activists positive attitude towards education. is a sphere of major concern. There are (ASHAs) and Medical Officers (MOs) play AWCs impart pre-school education also inter-state disparities within the key roles in delivery of services by childcare through non-formal methods and play. In scheme in terms of the vastly different local centres. The community and panchayats view of the importance of early childhood circumstances, financial performance and have specific roles in programme development to realise the goal of quality of services. implementation and monitoring of the universal elementary education, the focus scheme, which covers three components of has been on improving the quality of Most research findings on ICDS essential services for early childhood care education in AWCs. A new initiative was implementation highlight the main reasons Supplementary Nutrition Programme taken in the year 2000 for regular for delivery of poor quality of services as: (SNP), Pre-School Education (PSE) and provision of Pre-School Kits to the centres lack of adequate funds (one percent of Health Services. and Central government norms provide total Union Budget for children under six for Rs. 500 per annum to every AWC for years), poor utilisation of funds, shortage Supplementary Nutrition Programme procurement of kits. This is done through of staff, lack of effective training of staff, (SNP) funds released to the states from time to weak monitoring and supervision, poor SNP under ICDS is primarily aimed at time under ICDS. participation of the community and combatting child malnutrition but it also panchayats (rural local bodies) and setting covers pregnant and nursing mothers, Health Services unrealistic unit costs. In this context, the adolescent girls and children. The A package of health services is also provided under the scheme to children and mothers in the form of immunisation, Table 2: Financial Provisions in Unit Costs for SNP health check-ups, referral services, nutrition and health education which is Category Old Norms* Revised Norms** vital for the overall development of Rate per Calorie Protein Rate per Calories Protein children. The beneficiaries avail these beneficiary intake intake beneficiary intake Intake services through coordination between the (in Rs) (in gm) (in Rs) (in gm) Health Department of the state concerned and the AWWs. Besides, the Central Children 2.00 300 8-10 4.00 500 12-15 government provides Rs. 600 to every below 3 AWC annually for procurement of Children 2.00 300 8-10 4.00 500 12-15 medicine kits. below 3-6 Severely 2.70 600 20 6.00 800 20-25 Since ICDS deals with multiple malnourished components and services, inter- children departmental coordination for delivery of Pregnant and 2.30 500 20-25 5.00 600 18-20 health services is crucial for greater lactating impact. AWWs, AWHs, ANMs and mothers BMOs (Block Medical Officers) are the key functionaries to ensure delivery of its basic Source: MWCD. *Guidelines issued (with regard to unit cost, calorie and protein intake) vide letter No. 19-5/2003- health services. CD-I (Pt.) dated 19.10.2004. **As per the Supreme Courts directives (Peoples Union for Civil Liberties versus Union of India) on 22nd April, 2009. Compliance reports on new norms to be filed by all states and union territories by 15th January, 2010.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 10 Universalising ICDS: Skewed Outreach and Poor Service Delivery

Unit Cost of Services Table 3: Physical Performance under ICDS (as on March 31, 2009) Honorarium for AWWs and AWHs: The Central government currently gives S.No. Institutions and Services Performance Rs. 1,500 and Rs. 750 as honorarium to 1 Sanctioned Projects 7073 anganwadi workers and helpers 2 Operational Projects 6120 respectively, which has been increased 3 Sanctioned AWCs 1356275 from Rs. 1,000 and Rs. 500 respectively. In addition, a few state governments pay 4 Operational AWCs 1044269 Rs. 200 and Rs. 100 as honorarium to 5 Anganwadis providing SNP 935605 AWWs and AWHs respectively. Officials 6 Children receiving SNP (0-3 years ) 37542197 from Uttar Pradesh, Chhattisgarh and Rajasthan reported that ideally the 7 Children receiving SNP (3-6 years) 34654461 government should allot Rs. 3,000 instead 8 Children receiving SNP (Total ) 72195568 of Rs. 1,500 to an AWW and Rs. 2,000 9 Mothers receiving SNP 15147245 instead of Rs. 750 to AWH in order to 10 Total SNP beneficiaries 87343813 pay them as per the common minimum wages. Due to the low honoraria, 11 Children attending Pre-school Education 34060224 contractual nature of the job and huge Source: MWCD workload, anganwadi workers and helpers feel insecure and demotivated. Budgetary Provision and Physical of the 3.4 crore children are getting pre- Cost of SNP: The Central and state Performance under ICDS school education. governments contribute 50 percent each Several interventions directed at under-6 to the total cost of SNP. Owing to children are being implemented by Bottlenecks in Implementation & spiralling prices and the high cost of living, MWCD and Ministry of Health and Quality of Services unit costs were found to be inadequate Family Welfare, some of which are the Universalisation of early childhood care (Rs. 2 for children in 0-6 age group and Integrated Child Protection Scheme services under ICDS has been a major Rs. 2.30 for lactating and pregnant (ICPS), Routine and Pulse Polio challenge for the Centre and governments mothers) for conversion cost in SNP. The Immunisation campaigns, Reproductive of some states, particularly those with low price rise of food items (especially pulses, and Child Health Programme (RCH), development indices, for several reasons. vegetables, edible oils, jaggery etc) has led Manufacture of Sera and BCG Vaccine One, instances from Chhattisgarh, Uttar to diminishing food quality. Shortages and Kalawati Saran Children’s Hospital Pradesh and Rajasthan highlight the and delays were observed in the supply of besides the flagship ICDS. The annual unwillingness of mothers to send their dry ration to self-help groups in outlays for ICDS have increased more than children to AWCs due to distance of the Chhattisgarh. The popular perception is four-fold from Rs 1,623.4 crore in 2004-05 childcare centres from habitation, that the government should allocate Rs. 4 (BE) to Rs. 6,705 crore in 2009-10 (BE) irregular opening hours and low quality of to under-6 children and Rs. 5 to pregnant and budgetary allocations for all seven pre-school education and food provided. and lactating mothers under SNP to schemes have risen substantially in the Two, lack of recognition by the address the shortfalls due to rising prices. corresponding period, but the provisioning is community of services rendered by AWWs still meagre in terms of ground to be covered. and low priority accorded by politicians Untied Grants: No substantial funds have Consider the figures - almost 16 crore on early childhood development been earmarked by the Centre for fuel children under the age of six and less then constrains effective implementation of the costs and for Information, Education and one percent of the Union Budget scheme. Three, delivery and quality of Communication (IEC). The AWW apportioned for their welfare! services are affected by institutional and receives only Rs. 300 as an untied grant procedural bottlenecks, low levels of once a year to buy registers, soaps, towels Since its inception, progress has been budgetary allocation and poor and chart paper. In some cases, she has to made in infrastructure, staff and participation of community and meet the expenses from her own pocket. coverage of beneficiaries under ICDS panchayats. Besides, factors like fixing low Hence, the untied grant should also be but the pace is slow and much remains unit costs, delay in fund flows from one increased to Rs. 1,500 given the recurring to be done to improve the quality of level to the other, weak decentralised nature of the expenses. services delivered. This is evident from planning, low priority accorded to Table 3, which charts the physical capacity building, shortage of staff, poor Keeping the inadequacy of fund and unit performance of the scheme. The total coordination and multi-tasking hampers costs in mind, the current exercise tries to number of SNP beneficiaries (mother the quality of services. capture new unit cost of services delivery and child) is 8.7 crore while 54 percent specific to the ICDS scheme in

CBGA Budget TRACK Vol. 7, Track 1, October 2009 11 Universalising ICDS: Skewed Outreach and Poor Service Delivery

Table 4.(a): Funds Required from Union Budget 2010-11 based on Revision of Unit Costs in ICDS (for the already operational AWCs)

Services Number Old New No. of Amount of Rates Rates Days / (in Beneficiaries/ (in Rs.) (in Rs.) Months Crore) Institutions Recurring A. SNP Costs Children 0- 3 years 37542197 2 4 300 4505 Children 3 -6 years 34654461 2 4 300 4158 Pregnant /Lactating mothers 15147245 2.30 5 300 2272 Total SNP 10935 B. Service Kit 1000 Pre-School Education 1044269 500 2000 1 208 Kit per AWC Health Kit per AWC 1044269 2000 1 208 IEC material per AWC 1044269 300 1500 1 156 Untied Grants (Machine Sajja) 1044269 1500 1 156 per AWC Total Service Kit 728 C. AWW &AWH Honorarium Anganwadi Worker (Ist) 1044269 1500 5000 12 6265 Anganwadi Worker(2nd) 1044269 5000 12 6265 Anganwadi Helper 1044269 750 3000 12 3759 Total AWW and AWH 16289 Honorarium Total Recurring (A+B+C) 27,952 Costs Non- D. Construction of AWCs 522135 295000 1 15,403 recurring (If only50 percent of the Costs operational AWCs in the country require new pucca buildings)* Grand Total (A+B+C+D) 43,355 Non- E. Construction 1044269 295000 1 30,805 recurring of AWCs (If all Costs operational AWCs in the country require new pucca buildings) Grand Total (A+B+C+E) 58,757

Source of Basic Data: Ministry of Women and Child Development, Government of India.

Notes: 1. The new estimation of SNP is based on directives of Supreme Court of India on ICDS (PUCL vs. Union of India) on 22nd April, 2009. A compliance report on new norms has to be filed by all the States and Union Territories by 15th January, 2010.

2. * According to a study titled Rapid Facility Survey of Infrastructure at Anganwadi Centres conducted by the National Council for Applied Economic Research (NCAER), New Delhi, during 2004-05, only 46 percent of the (then operational) AWCs were running from pucca buildings. In the absence of any other recent evidence in this regard, it may be assumed that at present 50 percent of the operational AWCs are running from pucca buildings. However, this assumption is meant solely for the purpose of arriving at a benchmark to assess the Budget outlay for ICDS programme.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 12 Universalising ICDS: Skewed Outreach and Poor Service Delivery

Table 4.(b): Funds Required from Union Budget 2010-11 based on Revision of Unit Costs in ICDS (for all AWCs to be operational by 2012)

Services Number Old New No. of Amount of Rates Rates Days / (in Crore) Institutions Beneficiaries/ (in Rs.) (in Rs.) Months

Recurring A. SNP Costs Children 0- 3 years 37542197 2 4 300 4505 Children 3 -6 years 34654461 2 4 300 4158 Pregnant /Lactating mothers 15147245 2.30 5 300 2272 Total SNP 10935 B. Service Kit Pre-School Education Kit 1400000 1000 2000 1 280 per AWC Health Kit per AWC 1400000 500 2000 1 280 IEC material per AWC 1400000 1500 1 210 Untied Grants (Machine Sajja) 1400000 300 1500 1 210 per AWC Total Service Kit 980 C. AWW and AWH Honorarium Anganwadi Worker (Ist) 1400000 5000 12 8400 Anganwadi Worker(2nd) 1400000 5000 12 8400 Anganwadi Helper 1400000 3000 12 5040 Total AWW and AWH 21840 Honorarium Total Recurring (A+B+C) 33755 Costs Non- D. Construction of AWCs 522135 295000 1 15,403 recurring (If only 50 percent of the Costs operational AWCs in the country require new pucca buildings)* Grand Total (A+B+C+D) 49158 Non- E. Construction of AWCs 1400000 295000 1 41300 recurring ( For Universalisation of Costs ICDS country requires new pucca buildings) Grand Total (A+B+C+E) 75055

Source of Basic Data: Ministry of Women and Child Development, Government of India. Notes: 1. The new estimation of SNP is based on directives of Supreme Court of India on ICDS (PUCL vs. Union of India) on 22nd April, 2009. A compliance report on new norms has to be filed by all the States and Union Territories by 15th January, 2010. 2. * According to a study titled Rapid Facility Survey of Infrastructure at Anganwadi Centres conducted by the National Council for Applied Economic Research (NCAER), New Delhi, during 2004-05, only 46 percent of the (then operational) AWCs were running from pucca buildings. In the absence of any other recent evidence in this regard, it may be assumed that at present 50 percent of the operational AWCs are running from pucca buildings. However, this assumption is meant solely for the purpose of arriving at a benchmark to assess the Budget outlay for ICDS programme.

The Union Government has allocated Rs. 6705 crore for ICDS in 2009-10 (BE).

CBGA Budget TRACK Vol. 7, Track 1, October 2009 13 Universalising ICDS: Skewed Outreach and Poor Service Delivery

consultation with grassroots organisations Moreover, the Directorate of WCD does panchayats without them having any and government officials in Jharkhand, not have the authority to decide on control over funds and functionaries. Chhattisgarh, Rajasthan and Uttar financial matters except those related to There have been many instances where the Pradesh. minor activities. The upshot of the delays Panchayati Raj institutions (PRIs) are not in fund transfers is that the nutrition at all involved in monitoring and From tables 4 (a) and (b), we find that the needs of beneficiaries under the scheme implementation at the district, block and magnitude of funds required from the are neglected, several research studies point village panchayat levels while there was also Union Budget 2010-11 for ICDS appears out. a general shortage of staff for monitoring to be in the range of Rs. 43,355 crore to purposes. Rs. 75,055 crore depending on the total Decentralised Planning: The mode of number of AWCs to be taken into annual plan preparation of ICDS differs Training and Capacity Building: Central consideration and the proportion of them from other society-based schemes like funds have been provided for training but that need construction of new pucca Sarva Shiksha Abhiyan and RCH. In ICDS, many staffs at the project and district buildings. There is an urgent need to demands for funds for different levels were found under-qualified and ill- increase the unit cost of services to address components are invited from below and trained. Some state governments conduct the problems in the scheme’s consolidated at the state level for training programmes for staff working implementation. In addition, the two- provisioning in the state budget. All ICDS with the scheme but infrastructural worker model should be adopted for incomes and expenditures are routed facilities and able trainers are inadequate. children under three combined with through the state budget. Micro planning The training centres are often located very effective pre-school education for children is done at the AWC for six months with far from the project offices and childcare aged 3-6 years. Staff honorarium must be the help of ANMs for coordination of centres. Moreover, the training workshops at least in keeping with minimum wages. health-related activities at the community are usually of short duration, one-month and panchayat level. At the district and for AWWs after recruitment, which Delays in Fund Transfers: Delays in project level, the role of communities and several district project officers (DPOs) in transfer of funds is a major bottleneck for panchayats is found to be negligible. Chhattisgarh and Uttar Pradesh feel is many centrally sponsored schemes and Further, the health department officials inadequate for quality training. They have ICDS is no exception. The scheme do not appear involved in the planning suggested increasing the entry-level training allotments require State Finance process. to at least three months and carrying out Department sanctioning for many regular on-the-job training. activities, which often get delayed to such Monitoring: Lack of vehicles, vacancies for an extent that the stipulated time for supervisors and drivers and meagre Staff Shortage: Acute shortage of staff at implementation lapses. There are many amounts allocated as fuel costs have every level of implementation of the activities (AWC construction, AWW affected the monitoring process of ICDS. flagship scheme is affecting fund flow, honorarium and SNP) for which the Community participation and fund utilisation and service delivery. There Women and Child Development involvement of panchayats, essential for are around 26 percent vacancies for the Department (WCD) has to get sanctions implementation and monitoring of the post of AWWs, 40 percent for Child from the State Finance Department scheme, was also found to be insufficient. Development Project Officers (CDPOs)/ inspite of the fact that these have already In many states, the subject of women and Assistant CDPOs and 45 percent for been provisioned in the state budget. child development has been devolved to supervisors countrywide. Posts for clerk- cum-accountants and drivers at project offices are also not being filled up. The job of record keeping, health, nutrition and Table 5: Vacancies of Staff under ICDS at all-India level as on 31.03.09 informal education has to be done by a single AWW. Other activities such as Staff Sanctioned In position Vacant % maintaining accounts, preparing Monthly Vacancies Expenditure Reports (MER) and to Quarterly Progress Reports (QPR) and Sanctioned finance related issues have also been Posts affected due to the large number of CDPOs/ACDPOs 9003 5419 3584 39.81 vacancies. Table 6 looks at the status of Supervisors 53529 29309 24220 45.25 vacancies. AWW 1356027 998216 357811 26.39 Coordination between PRIs and Line AWH 1242096 984792 257304 20.72 Departments: Convergence of the ICDS Source: MWCD components is weak as all the departments are already overburdened with work. The

CBGA Budget TRACK Vol. 7, Track 1, October 2009 14 Universalising ICDS: Skewed Outreach and Poor Service Delivery

role of PRIs has been limited to age group. In some states, the children those from far-flung areas and the most construction of AWCs and there is very enrolled in an AWC are less than the vulnerable sections of society. A significant little with the line departments in day-to- number of registers and it is very difficult proportion of SC, ST and other day activities of the scheme at the for them to update these within the four backward classes (OBC) too have not been panchayat level. ICDS is largely dependent hours a day spent in the childcare centres. covered by the World Bank assisted on the health department for effective The total number of registers maintained intervention, which point to flaws in implementation of its health component by AWWs is given in Table 6. government’s policy. Scientific studies infer (RCH). ICDS guidelines require micro- that two-thirds of the human brain planning process to be done with the help In view of the grievances, it has been develops during the first two years of life of ANM for six months with AWWs and decided from 2008-09 to introduce six and the rest in the next two years. So, it is up to the Planning Commission and the Table 6: Number and Details of Registers Maintained by AWWs Central and state governments to make a course correction, focusing on sustained 1.Monitoring & Supervision 7.Mahila Samooh (SHG) Record 13. Weight development programmes aimed at the (Officer related) crucial formative years instead of ad hoc 2. Monitoring & Supervision 8. Pregnant and Lactating Mothers 14. Grade planning and budgeting. With the UPA’s Chart (Mothers Committee) goal of universalising the scheme less than 3.Stock Monitoring & Supervision 9. Gramin survey register 15.Meeting three years away, this would involve a with major policy shake-up incorporating Households better service delivery, increased financial 4. Worker Attendance 10. Population 16. Stock and human resource allocations, effective 5. Birth 11. Register for Malnourished 17. integration of ICDS components with Attendance Centre-state coordination and efficient implementation. 6. Immunisation 12. Pregnant and Lactating mothers, Handicapped

Source: MWCD.

Table 7: New Registers prescribed by MWCD for AWCs

1.Anganwadi survey 2.Services for pregnant and 3.Immunisation lactating mothers 4. SNP and Pre-School 5. Mortality register 6.Daily meetings

Source: CBGA field surveys in Uttar Pradesh and Chhattisgarh, 2008.

ANMs undertaking surveys of beneficiaries registers which would be a consolidation and immunisation coverage. This entails of the earlier 17 registers. The move is yet inter-departmental support and to be put into practice because the AWWs cooperation but research findings indicate are not familiar with the new registers and that the convergence between the WCD need orientation training. The six registers health departments is not effective. which have been prescribed to each of Moreover, AWWs and ANMs were not AWC are given in table 7. working in coordination with each other in many cases. Considering the huge workload on a single anganwadi worker, it is suggested that a Multi-Tasking Role of AWWs: second AWW be provided to childcare Maintenance of registers along with other centres so that the SNP and pre-school activities (health, pre school education and education requirements the 3-6 age group SNP) is an arduous task for the anganwadi in adequately met. workers. They were updating upto 17 registers on a regular basis and Available data, research and field complained that the time spent on the observations indicate that the benefits of clerical work could be better utilised in ICDS have not reached nearly half the providing informal education to the 3-6 children in the 3-6 age group, especially

CBGA Budget TRACK Vol. 7, Track 1, October 2009 15 Climate Change: External and Internal Realities for India Gyana Ranjan Panda & Kaushik Ganguly

Copenhagen Accord: An Overview Protocol remains uncertain. A lot would greenhouse gases (GHGs) in the The Conference of Parties (COP 15) in however, depend on the honest intent of atmosphere has to be reduced to 350 Copenhagen has finally ended. the developed countries and strong ppm carbon dioxide equivalent. In order Notwithstanding the frantic negotiations diplomacy from blocs of developing and to achieve this target, emission of GHGs in on different issues by different blocs of less developed economies. This article the atmosphere need to peak within the countries and aggressive opinion building provides a review of the present period of 2013-2017 and thereby rapidly along with lobbying activities by the civil development and its policy implications decline by 80 percent below 1990s level by society groups, the “Deal” in Copenhagen for India. 2050. To achieve this, developed and has fallen short of expectations and industrialized countries (Annex I aspirations of people around the world. Expectations from a Climate Deal and countries) as a group need to take up a While the world waited anxiously for an the “Outcome” of Copenhagen target of more than 40 percent below agreement on legally binding emission cuts, After the Bali Road Map was set in 1990s level by 2020. Additionally, finances and technological cooperation for motion in 2007 and the steps of emission and its removal from Land Use, adaptation and mitigation, leaders from negotiations were finalised for a successor Land Use Change and Forestry USA, Denmark, China, India, Brazil, to Kyoto Protocol after 2012, (LULUCF) as well as emissions from South Africa and a small group of other expectations ran high for a convergence of degradation of forests and peat lands need countries gathered at the Danish capital the two-track negotiating processes by the to be accounted. came out with a Copenhagen Accord, which end of 2009 at Copenhagen for a binding is a weak outline of the legally binding agreement on the issues of mitigation, The Accord at Copenhagen although agreement that was originally envisaged. adaptation, technology and issues of emphasised the commitment of Annex I The Accord merely acknowledged the finances. The essential parameters for a countries (individually or jointly) to scientific evidences put forward by IPCC as successful and equitable deal needed to be implement emission targets for 2020, a case for keeping temperature rises to no guided by the following objectives: stopped short of pronouncing any timeline or specify quantity of emission more than 2 degree Celsius but shied away a) Keeping global warming below 2° reduction or the period for peaking of from making any commitment to reduce Celsius and to that end industrialised emissions. The Accord however pledges emissions in order to achieve that goal and countries as a group taking on a implementation of mechanisms that also for providing new, additional, emission reduction target ranging supports reduction of emissions from adequate and sustainable finances for between 25 to 40 percent below 1990 deforestation and degradation and adaptation and mitigation in developing levels by 2020 and atleast 50 percent substantial financial resources to support countries. by 2050; such activities in developing countries. In b) Developing countries be supported addition, for meaningful mitigation The Copenhagen Accord, yet to be endorsed with finance and technology in their actions and transparency in by many countries (and in fact rejected by efforts to limit the growth of implementation, developed countries quite a few), has been hailed by world industrial emissions making committed to a goal of mobilizing jointly leaders largely from developed nations as a substantial reductions below business USD 100 billion a year by 2020 to positive step towards clinching a climate as usual; address the needs of developing countries. deal in the next COP to be held at Mexico c) Commitment for substantial The commitment to mobilize funds City in 2010. Given the stalemate situation mobilisation of public finance by however, does not automatically translate that had arisen in Copenhagen due to the developed countries to support low into a pledge for transferring it to inadequate and unambitious emissions development, in addition to developing countries in a manner that is commitments made by the Annex I funds for adaptation to climate useful to them. The commitments on countries and the intransient demand by change in developing countries; availability of finances for developing developing and less developed countries d) Instituting an Adaptation Framework countries to take action on mitigation are alike on deeper emission cuts by the that immediately and massively scales again welcome measures to foster a low developed and industrialised world, the up predictable and reliable support carbon development path but do not Copenhagen Accord is a compromise to developing countries to adapt to address the major point of concern for solution to appease the dominant the adverse impact of climate change. countries within the climate talks. Whether developing and less developed countries the Accord will fulfil its destiny by paving In order to keep global warming well which is the growing emissions from the way for a treaty within the Kyoto below 2° Celsius, scientific evidences have developed and industrialized countries framework or it will subvert Kyoto pointed out that concentration of leading to increased vulnerability of the

CBGA Budget TRACK Vol. 7, Track 1, October 2009 16 Climate Change: External and Internal Realities for India

Box 1: The Copenhagen Accord: Salient Features The Accord underlines climate change as one of the greatest challenges of our time and emphasises a strong political will by the Parties to urgently combat climate change in accordance with the principle of common but differentiated responsibilities and respective capabilities. It agrees that deep cuts in global emissions are required according to science, and as documented by the IPCC Fourth Assessment Report with a view to reduce global emissions so as to hold the increase in global temperature below 2 degrees Celsius, and take action to meet this objective consistent with science and on the basis of equity. Adaptation to the adverse effects of climate change and the potential impacts of response measures is a challenge faced by all countries particularly, least developed countries, small island developing States and Africa. It is agreed that Developed countries shall provide adequate, predictable and sustainable financial resources, technology and capacity-building to support the implementation of adaptation action in developing countries. Annex I Parties commit to implement individually or jointly the quantified economy wide emissions targets for 2020. Annex I Parties that are Party to the Kyoto Protocol will thereby further strengthen the emissions reductions initiated by the Kyoto Protocol. Delivery of reductions and financing by developed countries will be measured, reported and verified in accordance with existing and any further guidelines adopted by the Conference of the Parties, and will ensure that accounting of such targets and finance is rigorous, robust and transparent. Non-Annex I Parties to the Convention will implement mitigation actions, consistent with Article 4.1 and Article 4.7 of the Convention and in context of their goal of sustainable development. Mitigation actions taken by Non-Annex I Parties will be subject to their domestic measurement, reporting and verification, the result of which will be reported through their national communications every two years. Additionally, nationally appropriate mitigation actions seeking international support will be recorded in a registry along with relevant technology, finance and capacity building support. These supported nationally appropriate mitigation actions will be subject to international measurement, reporting and verification in accordance with guidelines adopted by the Conference of the Parties. The Accord recognises the crucial role of reducing emission from deforestation and forest degradation and agrees on the need to provide positive incentives to such actions through the immediate establishment of a mechanism including REDD-plus, to enable the mobilization of financial resources from developed countries. It also recognizes the need to pursue various approaches, including opportunities to use markets, to enhance the cost-effectiveness of, and to promote mitigation actions. Developing countries, especially those with low emitting economies should be provided incentives to continue to develop on a low emission pathway. Scaled up, new and additional, predictable and adequate funding as well as improved access shall be provided to developing countries, in accordance with the relevant provisions of the Convention, to enable and support enhanced action on mitigation, including substantial finance to reduce emissions from deforestation and forest degradation (REDD-plus), adaptation, technology development and transfer and capacity-building, for enhanced implementation of the Convention. The collective commitment by developed countries is to provide new and additional resources, including forestry and investments through international institutions, approaching USD 30 billion for the period 2010-2012 with balanced allocation between adaptation and mitigation. Funding for adaptation will be prioritized for the most vulnerable developing countries, such as the least developed countries, small island developing States and Africa. In the context of meaningful mitigation actions and transparency on implementation, developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries. A High Level Panel will be established under the guidance of and accountable to the Conference of the Parties to study the contribution of the potential sources of revenue, including alternative sources of finance, towards meeting this goal. A Copenhagen Green Climate Fund shall be established as an operating entity of the financial mechanism of the Convention to support projects, programme, policies and other activities in developing countries related to mitigation including REDD-plus, adaptation, capacity building, technology development and transfer.In order to enhance action on development and transfer of technology a Technology Mechanism will be established to accelerate technology development and transfer in support of action on adaptation and mitigation that will be guided by a country-driven approach and be based on national circumstances and priorities. An assessment of the implementation of this Accord to be completed by 2015, including in light of the Convention’s ultimate objective. This would include consideration of strengthening the long-term goal referencing various matters presented by the science, including in relation to temperature rises of 1.5 degrees Celsius.

Source: Copenhagen Accord, Draft Decision CP 15, United Nations Framework Convention on Climate Change (UNFCCC), 2009.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 17 Climate Change: External and Internal Realities for India

world to the onslaught of climate change. collective commitment to provide new and India and Climate Change additional resources, including forestry Negotiations Developing countries, less developed and investments through international India’s policy advocacy on climate change countries and small island states are institutions, approaching USD 30 billion stems largely from former Prime Minister already facing the adverse impact of for the period 2010-2012 with balanced Indira Gandhi’s famous statement at the climate change in terms of impending sea allocation between adaptation and first UN Conference on the Human level rise, possibilities of crop loss and mitigation. The quantum of promised Environment (UNCHE) in Stockholm in change in crop cycles, loss of biodiversity, funds for adaptation in the short term is a 1972: “Poverty is the biggest polluter”. spread of epidemics and increased pittance given the requirement of Since then poverty eradication and low incidence of other forms of disaster. With additional funds for adaptation and the per-capita carbon emission status has rising emissions, development and manner in which the issue of mitigation motivated the country’s negotiating stand adaptation to climate change will has also been hyphenated with it. on climate change at all subsequent increasingly become costlier across the Moreover, the Accord stops short of international conferences apart from the world and even more so in the developing making any long term commitment on core national adaptation strategies and and less developed countries. providing funds for adaptation in the policy priorities on the issue (see Box 2). developing world. Accordingly, India has been working In this regard, the expectations from an closely with developing country blocs like agreement in Copenhagen envisaged A Copenhagen Green Climate Fund has also G-77 and has rallied together countries commitment from developed countries been proposed as an operating entity of like Brazil, South Africa and China for an (Annex I Parties) on financial support for the financial mechanism of the equitable climate deal. Historically, India adaptation which would be new and Convention to support projects, has maintained a hardened position that substantially scaled up, adequate, programme, policies and other activities in developed countries (Annex I) having predictable, sustainable, timely, country developing countries related to mitigation occupied much larger carbon space in the and demand driven and additional and including REDD-plus, adaptation, world need to shoulder legally binding and separate from the Official Development capacity building, technology development deeper carbon emission cuts. In addition Assistance (ODA) targets. Access to the and transfer. For enhancement of they must provide finance and technology financial support needed to be simplified, technological cooperation and to developing and less developed countries expeditious and not dependent on the development, a Technology Mechanism for their adaptation and mitigation completion of national adaptation plans will be established to accelerate technology actions. In short, India’s stand on climate by countries. Moreover, this financial development and transfer in support of negotiations have centered around support should be provided through a action on adaptation and mitigation that continuance of the dialogues under the financial architecture which should be will be guided by a country-driven Kyoto framework of “common but under the authority, guidance and approach and be based on national differentiated responsibility” and the accountable to the COP. To further the circumstances and priorities. consensus evolving through the UNFCCC objective of adaptation and its processes. implementation, developed countries In a nutshell, the outcome at Copenhagen (Annex I Parties) should in partnership although was not entirely unexpected given In the run up to the Copenhagen Summit, with developing countries support the non-committal attitude of a few India’s negotiating position under the research and development, transfer and developed countries, it is nonetheless quite leadership of Minister of State for diffusion of appropriate technology antithetical to what the world desired. The Environment and Forest, Jairam Ramesh including creation of related knowledge usefulness of the Copenhagen Accord for adopted a certain degree of “flexibility” in base, expertise and capacity building for working towards an agreement in 2010 is its approach. The minister in his successful adoption of technologies. also suspect given the lack of depth in submission to the Parliament on India’s commitments made and also the shallow negotiating position had elaborated on The Copenhagen Accord, in the above support base that it has garnered within the “non-negotiables” for India in context, promises scaled up, new and the UNFCCC1. At hindsight, taking into Copenhagen and the area in which it additional, predictable and adequate consideration the circumstances leading to needs to show some flexibility. The funding as well as improved access to Copenhagen debacle, it may have been a minister reiterated that the first non- developing countries for adaptation, worthwhile exercise had world leader negotiable for India is that it will not technology development and transfer and strove towards smoothening of the accept legally binding emission reduction. capacity-building, for enhanced differences rather than coming forth with The second non-negotiable for India is implementation of the Convention. In a political statement whose validity is that it will not accept any agreement that addition, the developed countries made a circumspect. stipulates a peaking year for emissions in

1 United Nations Framework Convention on Climate Change.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 18 Climate Change: External and Internal Realities for India

productivity, and thereby, increased food Box 2: India’s Stand on Climate Change insecurity. It would also mean increased 1. Prime Minister Manmohan Singh has stated that India’s per capita emission levels spread of vector-borne diseases and spawn will never exceed that of developed countries a host of health problems that would 2. India cannot and will not take on emission reduction targets because: Poverty challenge the adaptive capacities and eradication and social and economic development are the first and overriding resilience of the disadvantaged. Given such priorities alarming portents, poverty reduction 3. Each human being has equal right to global atmospheric resources (Principle of strategies in India need to be radically Equity) revamped to a holistic development plan 4. “Common but differentiated responsibility” is the basis for all climate change that includes agriculture, health, actions. education, rural development and other areas linked to its roots. 5. India will continue to be a low-carbon economy. 6. The primary focus is on “adaptation”, with specific niches for “mitigation”. Since the First Five Year Plan, the domestic 7. India has already unveiled a comprehensive action plan on climate change, the policy focus on poverty eradication activities of which are in the public domain. Work on the NAPCC has been appears to have only scratched the surface, initiated. addressing symptoms of poverty instead of its root cause by enabling the poor and 8. Only those Nationally Appropriate Mitigation Actions (NAMAs) can be subject to marginalised sections to increase their international monitoring, reporting and verification that are enabled and adaptive capacity to the changing times. supported by international finance and technology transfer. The first poverty eradication programme 9. India advocates collaborative research in future low-carbon technology and access was the Community Development to intellectual property rights (IPRs) as global public goods. Programme launched in 1954 and several governments and Plan periods later, not much has changed for a large segment of India. The third non-negotiable, on which nationally, the consequence on the population. The poverty ratio, as per the minister emphasised that India needs developmental paradigm and prospects of Uniform Recall Period (URP) to exercise some flexibility, is partially economic growth needs to be carefully consumption distribution data of the opening up its mitigation action to considered. It is however apparent that the National Sample Survey Organisation international review. The minister in this country would require a large sum of (NSSO) for 2004-05, is 27.5 percent for regard opined that India should open its sustained additional public investments in the entire country (28.3 percent in rural mitigation action supported by acquiring and assimilating new technology areas and 27.5 percent in urban areas). international finance and technology for and financing of adaptation to facilitate The N C Saxena Committee Report international scrutiny. the transition to a greener and a more (2009) in its poverty survey has sustainable economy. The fiscal recommended upward revision of the Additionally, given the circumstances that implication and the architecture of below poverty line (BPL) category to cover reduction in carbon emissions from additional public funding and possibility half the population of the country. developed countries may not singularly of raising resources from external sources Malnutrition, which is perhaps the most prevent the global temperature to rise by needs to be ascertained domestically visible indicator of poverty, is extremely 2° Celsius, India may be required to target before any decisive action on mitigation is high with 45.9 percent of children below its carbon emission along the lines of considered. the age of three underweight, according to China, Brazil and Indonesia, but for the National Family Health Survey which India should be nationally Priorities in Financing Adaptation (2005-06). accountable rather than acceding to Bali Action Plan 2007 holds that socio- international commitment. An initiative economic development and poverty There is a direct relationship between along this line, the minister reiterated, will eradication are global priorities and the aggregate poverty and average enable India to approach the negotiations Human Development Report of UNDP consumption. The National Commission from a position of strength and allow it to for 2006-07 points out that climate for Enterprises in the Unorganised Sector extract larger concessions from the change will undermine both national and (NCEUS 2006-07) report states that 77 developed world. international efforts to combat poverty. It percent of the population had a daily per is also established that climate change has capita consumption expenditure of less In view of the fact that emerging realities in increased the vulnerability of the poor than Rs.20. NSSO consumption data the international arena may open up through multiple channels. If left shows that the monthly per capita possibilities of India undertaking emission unchecked, the climatic changes would expenditure (MPCE) improved in the reduction, even if it is accountable lead to deep cuts in agricultural three years from 2004 to 2007, but the

CBGA Budget TRACK Vol. 7, Track 1, October 2009 19 Climate Change: External and Internal Realities for India

Box 3: National Action Plan on Climate Change Eight Missions Objectives of Mission Mandated Ministry National Solar 20,000 MW of Solar power by 2020 Ministry of Non-Renewable Mission Energy Source National Mission for 10,000 MW of EE Saving by 2020 Ministry of Power Enhanced Energy Efficiency National Mission for EE in residential and commercial Ministry of Urban Development Sustainable Habitat buildings, public transport, Solid waste management National Water Mission Water Conservation, river Ministry of Water Resources basin management National Mission for Conservation and adaptation Ministry of Science & Technology Sustaining the Himalayan practices, glacial monitoring Ecosystem National Mission for 6mn hectares of Afforestation Ministry of Environment and a Green India over degraded forest lands by Forests the end of 12th Plan National Mission for Drought Proofing, risk management, Ministry of Agriculture Sustainable Agriculture agriculture research National Mission on Vulnerability assessment, Ministry of Science & Technology Strategic Knowledge Research and observation, for Climate Change data management

Source: National Action Plan on Climate Change, Ministry of Environment and Forests. amount in terms of actual money was intervention apart from sectors like a) change. In fact the government is yet to extremely low at Rs.580 (rural) and Crop improvement and research, b) come out with any concrete additional Rs.990 (urban). These statistics bear out drought-proofing and flood control, c) measure to address the vulnerabilities the fact that various poverty reduction health improvement and prevention of arising out of the differential impact of measures over the years have had limited disease, d) risk financing, e) disaster climate change on the crucial development impact on the target groups, with a management and f) forest conservation. sectors of the economy. significantly large population still The total government expenditure on languishing within the clutches of poverty adaptation in all these sectors is estimated On the other hand, while it is essential that and deprivation. to be around 2.6 percent of the Gross poverty alleviation receives adequate Domestic Product (GDP) and exceeds12 attention in any kind of policy With the burden of poverty and exclusion percent of the total budgetary formulation on adaptation, its linkages weighing heavily on the developmental expenditure. Out of this list of existing with other sectors like management of priorities and policies in India, it is interventions in the area of adaptation, common property resources like pastoral expected that any policy on adaptation poverty alleviation constitutes more than lands, watersheds, forestry resources needs would ascribe requisite importance on 75 per cent of the resources allocation to be strengthened in order to generate poverty alleviation measures in its accounted for adaptation. These figures climate resilient and sustainable livelihood execution. Accordingly, the existing merely underline the fact that a significant options. In addition, given the multi- adaptation framework as put forward by portion of the government’s development dimensional nature of poverty, any new the National Action Plan on Climate budget is dedicated to vulnerable sectors and additional policy measure also needs Change (NAPCC) 2008 includes poverty within the economy and does not entail to focus on aspects of rural and urban alleviation as a crucial sector for any additional measure to tackle climate housing for the poor, educational

CBGA Budget TRACK Vol. 7, Track 1, October 2009 20 Climate Change: External and Internal Realities for India

infrastructure, strengthening outreach of adaptation policy, strategies or priorities range of household consumption, basic health care and immunisation under developmental planning. Resources inadequate support base for health programmes and developing resilience of for the missions are expected from the improvement and so on. communities to natural disasters, among Eleventh and Twelfth Plans. others. 2) Protection and preservation of By putting the economy ahead of ‘global commons’ (forests, oceans, A Mission Mode Approach to Climate environment, the NAPCC mission land mass, cultural identities etc). Change approach also favours mitigation over 3) Involvement of nodal ministries The NAPCC report pitches for the right adaptation. The National Solar Mission (finance) and those governing the to development for developing economies and National Mission for Enhanced various affected sectors for like India and has proposed setting up Energy Efficiency have got priority as per mainstreaming them into an eight independent missions (see Box 3) the accomplished objectives of the policy Adaptation Framework. with broad actionable objectives. document while other crucial missions Comprehensive mission documents such as National Water Mission and 4) The Adaptation Framework needs to detailing objectives, plans of action, Mission on Sustainable Agriculture have be bolstered through the constitution timelines and requisite public provisioning not. Its timing too seems prompted by of a National Adaptation Fund to were to be submitted to the Prime external considerations by being provide dedicated finances for the Minister’s Council on Climate Change by “…compatible with our role as a differential needs arising out of the end of 2008, but only four of them - responsible and enlightened member of climate change, over and above the National Solar Mission, National Mission the international community”. It states existing developmental interventions for Enhanced Energy Efficiency, National that the country is ready to make by the government. Such an initiative Mission on Strategic Knowledge for contributions to tackling a global problem would enable the government to Climate Change and National Mission for including fulfillment of obligations of all earmark and channelise dedicated Sustaining the Himalayan Ecosystem - parties under UNFCCC to “formulate financial resources to the vulnerable have been able to do so ahead of the and implement programmes containing sectors already mentioned and Copenhagen talks. measures to mitigate climate change” short strengthen the linkages that may exist of binding targets. between existing interventions or any The report seems to lack vision and depth, additional intervention being considering the sheer size of the country Need For Holistic Climate Policy formulated. and complexity of its climate system and Given the interlocked climate system, the terrain, and has several contradictions various sectors pertaining to adaptation The issue of climate change needs to be pertaining to climate sensitive sectors vis-à- and mitigation cannot be taken in high on the government’s priority agenda vis development. The document says the isolation. The policy focus needs to be on given that the economy is closely tied to its government will formulate a “national tackling the fallout of climate change by natural resource base and climate sensitive strategy to adapt to climate change and to incorporating all the allied sectors sectors such as agriculture, water, and further enhance the ecological concerned through national, sub-national, forestry. At the same time, it is essential to sustainability of India’s development and grassroots planning, with improved empower local communities with regard to path”, but is silent on how it would make governance and accountability at all levels. social and technological adaptation a directional shift in the developmental The framework of a national strategy for processes and dissemination/exchange of pathway, according top priority to sustainable development should include: information on climate change and their sustainable development in the face of vulnerability. This would serve as a base market-driven forces. Incidentally, none of 1) National requirements for economic for early warning and information the Five Year Plan documents barring progress with an assessment of distribution systems to anticipate and Eleventh Plan has made any reference to ground realities and interventions prevent weather-related disasters, given the the problem of climate change or brought relating to poverty, malnutrition, low inevitability of global warming. out a detailed roadmap on the national

CBGA Budget TRACK Vol. 7, Track 1, October 2009 21 Cost Provisioning towards Right to Food Nilachala Acharya

India is home to the world’s largest declined from 186 kg per annum in 1991 foodgrain availability levels are even less nutrition deficient population with over to 166 kg in 2000 and 160 kg in 2007, than during the ‘Green Revolution’ of the 20 crore people going to bed hungry every raising concerns that current per capita 1970s (Table 1). night, a fact that had prompted the United Progressive Alliance (UPA) Table 1: Per Capita Net Foodgrains Availability Since 1951(kg per annum) government to make the election promise of enacting “a Right to Food law that Year Rice Wheat Other Total Gram Total Total guarantees access to sufficient food for all Cereals Cereals Pulses Foodgrains people, particularly the most vulnerable 1951 58.0 24.0 40.0 122.0 8.2 22.1 144.1 sections of society”1. It ranks 65 among 84 countries covered in the Global Hunger 1956 68.7 22.5 40.7 131.9 10.6 25.7 157.6 Index for 20092, which only reiterates the 1961 73.4 28.9 43.6 145.9 11.0 25.2 171.1 gravity of the problem. In fact, the index 1991 80.9 60.0 29.2 171.0 4.9 15.2 186.2 value for India (23.9 points) is higher than the average for most of sub-Saharan 2000 74.3 58.4 21.5 154.3 3.9 11.6 165.9 Africa (22.1 points). 2006 72.3 56.3 22.1 150.7 3.9 11.8 162.5 2007(P) 71.8 57.0 20.8 149.6 4.3 10.7 160.4 The picture is even more disturbing if seen in conjunction with the spiralling food Source: ‘Agricultural Statistics At a Glance 2008’, Ministry of Agriculture, GoI. prices, unpredictable monsoons, and the “economic downturn”, which according to Since independence, the government has panel’s suggestion of raising the BPL list to the GHI report, has had a severe impact taken several initiatives through poverty 50 per cent. It also advances an alternative on the country. Various government alleviation programmes and food subsidies costing approach, focussing on the initiatives over the years notwithstanding, under the public distribution system demand for universalisation of PDS in the malnutrition figures in India have (PDS) to address the food insecurity issue. context of the Right to Food legislation. remained static or worsened. The However, there has been criticism with The government could consider this National Commission for Enterprises in regard to implementation of various demand since it has been forgoing the Unorganised Sector (NCEUS 2006- schemes, the efficacy of a subsidy regime, substantial revenues in tax waivers while 07) report states that 77 per cent of the and effectiveness of the PDS, which is the estimated cost to the exchequer for population is “poor and vulnerable,” with billed as the largest such network in the subsidising foodgrains for all is by Rs 20 per day or less as consumption world. comparison a small amount. expenditure. The number of people in this group has risen from 81.1 crore in 1999- More recently, the UPA government Overview Of Food Security 2000 to 83.6 crore in 2004-05, it says. committed itself to a National Food Interventions The situation is more acute in rural areas Security Act (NFSA) that would entitle A number of interventions aimed at where 50 per cent children are each BPL family to 25 kg of subsidised eliminating hunger and deprivation are underweight and over 75 per cent women rice/wheat (at Rs 3 a kg) every month, in under way, including Mid-Day Meal are anaemic, as per the N C Saxena keeping with the Congress manifesto for (MDM) scheme for children in primary Committee report3, which has General Elections 2009. It is currently in and upper primary schools, Integrated recommended including half the rural the “consultation” stages on the proposed Child Development Services (ICDS), population in the below poverty line law. The draft legislation is broadly on the Kishori Shakti Yojana (redesign of (BPL) benchmark for people who must be lines of the National Rural Employment Adolescent Girls scheme to cater to covered by the government interventions Guarantee Act (NREGA) and nutrition and health needs of 11-18 age pertaining to rural development. contemplates making “Right to Food” group girls), and Pradhan Mantri (RTF) a Fundamental Right under the Gramodaya Yojana. MDM has been The extent and severity of the food crisis ambit of Article 21 of the Constitution implemented in most parts of the country has been an important concern, (Protection of Life and Personal Liberty). while the Central government has assured particularly lack of prioritisation of public universalisation of ICDS by 2012. investment towards agriculture and allied The present exercise goes into the activities, food access and food availability. budgetary implications of the proposed The demand for job guarantees was The per capita foodgrains availability has legislation in the light of the Saxena partially met through NREGA scheme

CBGA Budget TRACK Vol. 7, Track 1, October 2009 22 Cost Provisioning towards Right to Food

introduced in August 2005, legally Table 3: Amount of Foodgrains Needed for Proposed RTF Act entitling every rural household to 100 Sl. No Items Value person days of employment in a financial year at the minimum wage of Rs 100 a A Number of BPL households other than AAY 950 lakh day. The Act has yet to extend to urban I Annual foodgrains requirement (rice/wheat) 300 kg areas. per household (at 25 kg a month for every BPL household) II Annual foodgrains for BPL families other than AAY 285 lakh tonnes In efforts to enhance production and B Existing number of Antodaya families 250 lakh productivity of wheat, rice, and pulses on III Annual foodgrains requirement per household 420 Kg a sustainable basis, the centrally sponsored (at 35 kg a month for every AAY family) National Food Security Mission (NFSM) IV Current annual foodgrains requirements for AAY scheme 105 lakh tonnes was launched in August 2007. In this respect, the Eleventh Five-Year Plan targets C=II+IV Total annual foodgrains requirement under 390 lakh tonnes an additional 200 lakh tonnes of PDS for BPL and AAY schemes foodgrains production with projected Gross Budgetary Support (GBS) of Rs. 4317.31 crore (at 2006-07 prices) for persons in drought-prone, desert and allocations for the Above Poverty Line NFSM. The Village Grain Banks Scheme inaccessible hill areas. (APL) population. Of the network of on the other hand, provides for nearly five lakh FPS across the country at safeguards against starvation during Since the 1960s, PDS has been a major present, 83,000 are managed by natural calamities or lean crop seasons. It government instrument to ensure cooperatives, women’s self-help groups, was initially implemented by the Tribal availability of rice, wheat, sugar, and village panchayats, and urban local bodies 4 Affairs Ministry, covering only tribal areas, kerosene to the public at affordable prices in different states . and later extended by the Department through fair price shops (FPS). The Food and Public Distribution to BPL Targeted Public Distribution System Antyodaya Anna Yojana (AAY) was (TPDS) replaced PDS in 1997 with two- launched under TPDS in December 2000 tier subsidised pricing to include transitory to identify one crore poorest of the poor among BPL families and provide them 35 Table 2: Combined Expenditure on Food Subsidies (Rs Crore) kg of foodgrains (rice at Rs 3 per kg and wheat at Rs 2 per kg) a month though Year Subsidies Food Subsidies Total Food FPS. The scheme, which is backed by a to FCI by States Subsidies Supreme Court ruling, also provides for 1990-91 2450 42 2492 special ‘antyodaya ration cards’ to each 1995-96 5377 338 5715 destitute family and has since been expanded to cover an estimated 2.5 crore 1996-97 6066 355 6421 households. AAY requires the states and 1997-98 7500 408 7908 union territories to bear distribution costs 1998-99 8700 309 9009 (including margin to dealers and retailers) and transportation costs. As of March 1999-2000 9435 512 9947 2009, the government had procured 2000-01 12060 493 12553 226.82 lakh tonnes of wheat and 261.36 2001-02 17499 403 17902 lakh tonnes of rice/paddy5 for subsidised foodgrains provisioning. 2002-03 24176 618 24794 2003-04 25160 753 25913 Provisioning for Right to Food 2004-05 23280 1199 24479 Looking at the period from 1990-91 to 2005-06 23077 1163 24240 2009-10, we observe a gradual rise in the magnitude of food subsidy provided by 2006-07 24014 1120 25134 the Central government, with a decline 2007-08 RE 31546 1502 33048 during 2003-04 to 2006-07. The food 2008-09 BE 43627 * 1327 44954 subsidy of the Central government refers to the amount paid to the Food 2009-10 BE 52490 NA 52490 Corporation of India (FCI) for covering Source: Expenditure Budget Vol-II, 2009-10; Indian Public Finance Statistics, the difference between the economic costs Ministry of Finance, GoI, Various issues; Note: * Revised Estimates for 2008-09 for food grains (which comprises the cost of procurement of food grains at the

CBGA Budget TRACK Vol. 7, Track 1, October 2009 23 Cost Provisioning towards Right to Food

Minimum Support Prices and the cost of Figure 1: TCE on Food Subsidy as %age of GDP and TE storage, transportation and administration) and Central Issue Prices 4 (i.e. the prices at which food grains are 4 distributed under the PDS). Since 2007- 08, the Union Budget allocation for food 3 subsidy has improved; however, there is no 3 positive trend in the state governments’ expenditures in this regard (Table 2). 2

2 Given the limitations of the poverty identification process, there is a growing 1 demand for “universalisation of all social 1 and economic entitlements”, even among members of the Saxena Committee expert 0 1 6 7 8 9 0 1 2 3 4 5 6 7 E E E -9 -9 -9 -9 -9 0 -0 -0 -0 -0 -0 -0 -0 R R B 0 5 6 7 8 20 0 1 2 3 4 5 6 8 9 0 group. A section of the group says that the 9 9 9 9 9 - 0 0 0 0 0 0 0 -0 -0 -1 9 9 9 9 9 9 0 0 0 0 0 0 0 7 8 9 1 1 1 1 1 99 2 2 2 2 2 2 2 0 0 0 targeted approach (TPDS) has created 1 20 20 20 further strata within the BPL category and Total Food Subsidy as % of TCE (Total Combined Expenditure) Total Food Subsidy as % of GDP the panel has suggested introducing a new Source: Expenditure Budget Vol-II 2009-10; Indian Public Finance Statistics, Ministry of Finance, GoI, Various issues; Data poverty identification methodology. on GDP for 2009-10 is from Budget at a Glance 2009-10 and for 2008-09 taken as Revised Estimates released by CSO. Economic Survey, 2008-09, GoI.

Table 4: Required Amount of Subsidy for BPL Beneficiaries Outside AAY A Total amount of foodgrains 285 lakh tonnes BPL households and setting up “subsidised to be distributed per annum community kitchens” in all cities for I Total amount of rice to be 190 lakh tonnes homeless people and migrants. Antyodaya distributed per annum families are currently getting 35 kg of II Total amount of wheat to 95 lakh tonnes subsidised foodgrains every month (rice at be distributed per annum Rs 3 per kg and wheat at Rs 2 per kg). B Proposed CIP for foodgrains Rs 3000 Implementing the Saxena panel’s (per tonne = Rs 3 per kg × 1000) recommendation of categorising 50 per C Total amount to be recovered Rs 8550 crore cent of the population as BPL means through CIP (Rs 3000 × 285 lakh tonnes) coverage of around 12 crore of the total D Economic costs per tonne of Rice (Rs 1789.8 ×10 kg) Rs 7898 rural and urban households. The annual I Total cost for distribution of proposed amount of rice Rs 34006.2 crore quantum of subsidised foodgrains to be E Costs per tonne of wheat (Rs 1392.7 × 10 kg) Rs 13927 distributed to the new BPL and AAY households would then work out to 390 II Total cost for distribution of proposed amount of wheat Rs 13230.7 crore lakh tonnes at current estimates (Table 3). F =I+II Total cost for distribution of proposed amount of foodgrains Rs 47236.9 crore G Difference as food subsidy per annum (F-C) Rs 38686.8 crore If MSP and CIP remain at present levels, the economic cost per quintal of rice would be Rs 1,789.8 and that of wheat Rs 1,392.7 (inclusive of procurement Costing Right to Food Expenditure (TE) by the Centre and states incidentals and distribution costs)6. An Before going into the costing factors under on food subsidies from 1990-91 to 2009- estimated 285 lakh tonnes of subsidised the proposed food-for-all legislation, 10 has hovered at around one per cent of foodgrains would, therefore, be required budgetary aspects relating to food and the Gross Domestic Product (GDP). The for distribution to BPL families outside nutrition security in the country need to priority for food subsidy in Total AAY. Assuming that rice and wheat are be outlined. Every year, FCI purchases a Combined Expenditure (TCE) of the issued at the ratio of 2:1, the total subsidy percentage of total foodgrains output for Centre and states too, has been abysmally required for BPL households would work distribution among the needy in the form low (between 2.5 and 3.5 per cent) with it out to Rs. 38,686.8 crore. (Details of of subsidy and the amount is reimbursed peaking in 2003-04 (see Figure 1). calculations are given in Table 4). by the government through the annual Union Budget. State governments also The draft framework of RTF act envisages Working on the same assumption of MSP allocate food subsidies from their 25 kg of wheat or rice (at Rs 3 per kg) to and CIP remaining stationary, the total respective budgets. However, Total be issued every month to rural and urban foodgrains required for distribution

CBGA Budget TRACK Vol. 7, Track 1, October 2009 24 Cost Provisioning towards Right to Food

In the alternative framework, the extra Table 5: Required Amount of Subsidy for AAY Beneficiaries amount needed for budgetary A Total amount of foodgrains to 105 lakh tonnes provisioning under a universal PDS would be distributed per annum be around Rs 37,000 crore, which is not a B Proposed CIP for foodgrains Rs 3,000 very high sum considering that the Central (per tonne = Rs 3 per kg × 1,000 kg) government is prepared to forgo revenues C Quantum to recovered through CIP Rs 3,150 Crore of Rs 4,18,096 crore in tax sops in a single (Rs 3000 × 285 lakh tonnes) fiscal. The average per day tax revenue D Economic costs per tonne of rice Rs.17,898 waived by the government in 2008-09 was (Rs. 1,789.8 × 10 kg) Rs 1,145 crore. Implementing the proposed RTF law would require additional Rs 101 I Total costs for distribution of Rs 12,528.6 Crore crore per day, which is less than one eleventh proposed amount of rice of the amount in tax waivers. E Costs per tonne of wheat Rs13,927 (Rs. 1,392.7 × 10 kg) Although the magnitude of the problem II Total costs for distribution Rs 4,874.5 Crore of hunger in the country is well chronicled, of proposed amount of wheat not enough has been done to frame a F Total average economic cost for Rs 17,403.1 Crore credible food security system that distribution of proposed amount of addresses the issue from its roots of foodgrains at a ratio of 2:1 agricultural production and productivity, G Difference as food subsidy per annum (F-C) Rs 14,253.1Crore foodgrains availability, procurement, and distribution, to purchasing power of the people. The government has introduced among AAY families would be 105 lakh programmes/schemes and legislations but tonnes. Again, if rice and wheat are issued the benefits have not properly percolated at a 2:1 ratio, the subsidy required for down to the grass roots. Hence, there is an Antyodaya families amounts to around Rs. urgent need for integrating the policies 14, 2 53.1 crore. relating to land rights, employment generation, healthcare, education, housing The total food subsidy provisioned by the and so on if the goal of a hunger-free Centre and state governments in their India is to be reached. In fact, the current annual budgets for 2009-10 is Rs 52,489.7 crore. This is a little less than the amount required for implementing the Table 6: Required Amount of Foodgrains and Subsidy under Universal PDS Saxena Committee recommendations – A Total amount of foodgrains to be 660 lakh tonnes an estimated Rs 52,939.9 crore (Rs. distributed per annum at 25 kg 38,686.8 for BPL families outside AAY + a month per household Rs. 14,253.1 crore for AAY families). B Proposed CIP for foodgrains Rs 3000 (per tonne = Rs 3 per kg × 1000 Kg) Alternate Costing Approach C Total amount to be recovered through Rs 19,800 Crore The proposal for making RTF a CIP (Rs 3000 × 660 lakh tonnes) Fundamental Right and demand for D Costs per tonne of rice Rs 17,898 universalising PDS underscores the need (Rs 1,789.8 × 10 kg) for alternative cost estimation against the backdrop of food insecurity in the I Total cost for distribution Rs 78,751.2 Crore country. If the total number of of proposed amount of rice households (estimated 22 crore) demand E Costs per tonne of wheat Rs 13,927 25 kg subsidised food grains a month at (Rs 1,392.7 × 10 kg) Rs 3 per kg (with MSP and CIP remaining II Total costs for distribution Rs 30,639.4 Crore at present levels), foodgrains required for of proposed amount of wheat the PDS would be approximately 660 F Total average cost for distribution Rs 1,09,390.6 Crore lakh tonnes and the subsidy around Rs of proposed amount of 89,590.6 crore. foodgrains at a ratio of 2:1 G Difference as food subsidy per annum (F-C) Rs 89,590.6 Crore

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climate in the policy discourse is for a corruption and make the system more security legislation, the government needs holistic approach that includes accountable to the needs of the people by to also focus on expanding the public agricultural production, distribution, land means of regular monitoring. It has in procurement system to collect surplus management, and food-based employment recent years given much importance to foodgrains from farmers. It might generation schemes. foodgrains imports to tide over shortages consider introducing community caused by deficient monsoons instead of participation in foodgrains procurement Apart from policy, the government needs improving the grain storage system or and distribution at the village level as a to streamline the PDS to root out acceding to the farmers’ demand for cost-cutting measure. raising the MSP. In the proposed food

1 Excerpt from the Congress manifesto for General Elections to the 15 the Lok Sabha held in April-May 2009. 2 GHI for 2009 was established for 121 developing countries and newly industrialised nations, 88 of which were ranked using the index developed by the International Food Policy Research Institute (IFPRI). GHI combines three indicators: child malnutrition, child mortality, and estimates of the proportion of people who are calorie-deficient. 3 Report of the committee, set up by the Ministry of Rural Development and chaired by Supreme Court-appointed food commissioner N C Saxena, to conduct the below poverty line (BPL) census for the 11 the Five Year Plan. The panel’s draft recommendations were submitted in August 2009. 4 Annual Report 2008-09, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, GoI. 5 Ibid 6 Calculations based on data in Economic Survey, 2008-09, GoI.

CBGA Budget TRACK Vol. 7, Track 1, October 2009 26 conflict perceived by some Gandhians Taking Goals of NREGA-I Forward between small farmers and NREGA. Mihir Shah Especially given the just demand for extending the work guarantee of 100 days Envisioning NREGA-II is important to realise the unfulfilled dreams of to every person (as promised in the NREGA-I, which has failed thus far to break free of the shackles of a Congress manifesto), there is need to extend the scope of NREGA to small and debilitating past. marginal farmers’ lands. This remarkably inclusive provision can potentially The National Rural Employment programme, where works are undertaken transform Indian agriculture, which is Guarantee Act (NREGA) promises a in response to the needs and aspirations of crying out for greater public investment. revolutionary demand-driven, people- a fully aware citizenry. Otherwise, the Apparently there is an apprehension that centred development programme. current practice of works being imposed if work is allowed on poor farmers’ lands, Planning, implementation and social audit from above will continue unchecked. And the provision will be misused by powerful by gram sabhas and gram panchayats can without much greater technical support to rich farmers in the village. Let me begin by engender millions of sustainable the PRIs, it will be hard to stop the stating that Magsaysay award winner Deep livelihoods following initial rounds of wage backdoor entry of contractors. Joshi believes that NREGA should employment. But NREGA-I has had to actually be used for assets creation on all battle against the legacy of an ignominious Two, there needs to be a renewed focus on lands, much as in a watershed programme, past. Rural development programmes over improving the productivity of agriculture so that plans can be made and the last 60 years have been dependent on and convergence to engender allied implemented on a watershed basis. I the munificence of the state. They have sustainable livelihoods. NREGA is not the disagree with him only because I feel been implemented top-down, using usual run-of-the-mill relief and welfare priority must be given to the poor. But I labour-displacing machines and programme of the past. It is not merely fail to understand opposition to work on contractors who have customarily run about transferring cash to people in farms of the poor themselves. Misuse of roughshod over basic human rights. distress. It is about creating durable assets NREGA provisions is a genuine fear but that will ultimately lead to a reduced that should be addressed with element NREGA is poised to change all that. And dependence of people on NREGA. The four of NREGA-II — strengthening social there is no doubt that its promise has percentage of agricultural labour audit. charged the hearts and minds of the rural households in India who own land is poor with unprecedented hopes and around 50 in Rajasthan and Madhya Here we have two possible ways forward, expectations. But the first three years of Pradesh, 60 in Orissa and Uttar Pradesh what I call MKSS-I and MKSS-II. The the programme have also shown that and over 70 in Chhattisgarh and Mazdoor Kisan Shakti Sangathan (MKSS) NREGA suffers from many ills — leakages Jharkhand. And if we focus on Adivasis, blazed the trail of social audit in and delays in wage payments, non- the proportion shoots up to as high as 76- Rajasthan. I call that MKSS-I, a process payment of statutory minimum wages, 87 per cent in Chhattisgarh, Jharkhand that has been fraught with violent work only for an average of 50 days per and Rajasthan. Millions of our small and opposition from vested interests, and by annum as against the promised 100 days, marginal farmers are forced to work the MKSS’ own admission, has been less fudged muster rolls, few durable assets and under NREGA because the productivity than successful. MKSS-II refers to the even fewer sustainable livelihoods. of their own farms is too low to make ends social audit pro-actively promoted by the meet. NREGA will become really powerful government of Andhra Pradesh and Envisioning NREGA-II is important to when it helps to rebuild this decimated guided by the MKSS that has achieved realise the unfulfilled dreams of NREGA- productivity of small farms and allows unprecedented success. However, this I, which has failed thus far to break free of these people to return to full-time farming, remains a predominantly top-down the shackles of a debilitating past. At least thereby also reducing the load on approach with relatively weak roots. What seven key elements need to characterise NREGA. we need to do is to combine the strengths NREGA-II. One, strengthening the What would accelerate this strengthening of MKSS-I with those of MKSS-II, because Panchayati Raj Institutions (PRIs) by of small and marginal farming is the social audit is undoubtedly the weakest providing them requisite technical and proposal to allow assets creation through link of NREGA so far, even though it was social human resource so that plans can NREGA on these farmers’ lands. This is hailed initially as its most attractive be made and implemented genuinely element three of NREGA-II and would differentia specifica. Pramathesh Ambasta, bottom-up. Without a cadre of social help the poorest 80 per cent of farmers in National Coordinator, Civil Society mobilisers or lok sewaks (at least one in India. It is not entirely clear why certain Consortium on NREGA, is working on a every village), it is difficult to convert sections of civil society are opposed to this blueprint of a National Authority for NREGA into a truly demand-driven idea, which will also mitigate the apparent NREGA, which should become a matter

CBGA Budget TRACK Vol. 7, Track 1, October 2009 27 Taking Goals of NREGA-I Forward

of serious reflection and debate if we are get money. This promotes a nightmarish NREGA realise its potential. Whether it is to strengthen social audit, evaluation and variety of malpractices. It is now grass-roots activists assisting PRIs in social grievance redressal, by making them imperative that we roll out the banking mobilisation, developmental NGOs independent of the implementing agency. correspondent model using handheld building capacities of panchayats and Element five has to be more creative use of computer devices and mobile phones to all supporting them in planning and information technology (IT), which can gram panchayats in India by the end of implementing NREGA works, academic greatly strengthen social audit and reduce the Eleventh Plan period. The government institutions helping to improve the chances of fraud and leakage. As in needs to commit the support required to standards of evaluation or eminent citizens Andhra Pradesh, computer systems need make this happen in a time-bound acting as ombudsmen, there is an urgent to be tightly integrated end-to-end so that manner to achieve unprecedented need to mandate civil society action in any work registered in the system is alive, financial inclusion at the doorstep for our strengthening NREGA. On its part, civil status-visible and amenable to tracking. poorest people living in distant society needs to adopt a strategy of Delays at any stage can thus be hinterlands. The demand-driven, pro- dialogue and support to make NREGA a immediately identified and corrected. The poor unique ID project can play a key role success. Revamped and revitalised system keeps track of the work from the in this regard and also greatly benefit from CAPART (Council for People’s Action day the work-ID is generated and flags the demand created by this exercise. and Rural Technology) and NIRD delays in the payment cycle as soon as they Element six of NREGA-II is a reformed (National Institute of Rural Development) occur. Because the network secures all schedule of rates (SoRs). The commitment based on vibrant partnerships with civil levels from the ground up to the State to pay real (indexed to inflation) wages of society could help facilitate this change. headquarters and data are transparently Rs.100 a day can never be fulfilled if we and immediately available on the website, continue to use antediluvian SoRs that Each of these seven elements was part of a delay at any stage is instantly noticed by were meant to serve the “contractor- the original NREGA vision. What the monitoring system. Free availability of machine raj.” Using these rates will NREGA-II will do is to place renewed this information on the website also inevitably underpay labour, especially emphasis on key aspects of this vision and facilitates public scrutiny, greater women. We need gender, ecology and build new strategies to help the transparency and better social audit. labour-capacity sensitive SoRs that are programme realise its true potential. It is IT has one more new dimension. Ever themselves indexed to the real minimum good that the Ministry of Rural since it was decided to make payments only wage, undergoing revisions with each Development is engaging in detailed through banks and post offices, NREGA-I revision in the statutory wage. Otherwise, discussions with various stakeholders as has run into serious trouble caused by complaints of underpaid labour will never also the Central Employment Guarantee delays and corruption in payments. cease. Council before unfurling the NREGA-II Workers, especially in remote rural India, Finally, element seven — the role of civil blueprint. find it very hard to travel long distances to society, which is crucial in making

(The writer is Member, Planning Commission.) The article is a reproduction of the piece by the author in ‘The Hindu’ dated 14 August 2009 of the same title.

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