IN THIS ISSUE Budget and Policy Tracking Divya Singh 2
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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 CBGA Budget TRACK Vol. 7, Track 1, October 2009 2 Budget and Policy Tracking 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,