It is generally well-acknowledged in contemporary discourses that access to good quality elementary education (if not higher levels) must be treated as a fundamental right. Custodians of public policy in India, after doing precious nothing on a matter so critical to the country’s future for over half a century now, seem to have displayed a degree of urgency and seriousness in the recent years. The enactment of the Right of Children to Volume 7, Track 2 & 3 September 2010 Free and Compulsory Education Act, 2009 (henceforth RTE Act 2009) is a step in the right direction. The road ahead, however, seems to be rough given that the ‘how’ and the SPECIAL ISSUE ON RIGHT TO EDUCATION ‘where to’ remain ambiguous in several important respects in this otherwise significant enactment. RTE and India’s Democracy Shantha Sinha 4 To quickly recap the recent steps in the journey of the RTE Act, 2009, the 86th Amendment Act, 2002 made three specific provisions in the Indian Constitution to Fulfilling the Promise of RTE facilitate the realization of free and compulsory education to children between the ages of Jayati Ghosh 6 6 to 14 years as a Fundamental Right. These were (i) adding Article 21A in Part III (Fundamental Rights), (ii) modifying Article 45, and (iii) adding a new clause (k) under Article 51A (Fundamental Duties) making the parent or guardian responsible to provide Right of Children to Free and opportunities for education to their children between 6 and 14 years. Compulsory Education – Some Reflections In September 2004, the CABE Committee was constituted as a first step to drafting the R. Govinda 8 RTE Bill which was submitted to the government in June 2005, although without any consultations being held with the public at large. The Bill was found wanting on several Financing the Implementation of RTE fronts, beginning with its definition of a ‘child’ (not less than 6 years and not more than J B G Tilak 10 14 years) to shying away from owning the economic responsibility by the Union government while fleshing out the provisions. Further, not only did the Bill have none of RTE and its Financing the tenets of the Common School System (CSS) incorporated in it that would have Santosh Mehrotra 12 allowed for compulsory and uniform quality education to all but also was unable to suggest carrying out specific Amendments necessary in the Child Labour (Prohibition Implementing RTE and Regulation) Act, 1986. Vinod Raina 13 The government, however, dithered on moving ahead with the recommendations made in What’s so Uneconomical about the the draft RTE Bill 2005 citing lack of funds and drafted a Model Right to Education Common School System? Bill, 2006, and proposed to incentivise the States to adopt the Model Bill. The draft Janaki Rajan 15 Model Bill’s implementation was linked to the States’ funding of Sarva Shiksha Abhiyan (SSA) by the Centre to the tune of 75 percent. If this arm-twisting was not enough, the Budget and Policy Tracking financial liability of providing free and compulsory education was on the States and UTs, making elementary education first charge on the revenue of the State/UT government. Navanita Sinha 18 Due to a combination of factors, including public pressure, a decision was finally taken to introduce a Central legislation in the budget session of Parliament in 2008. The CABE draft of August 2005 was resurrected. Since it had already received substantial responses from State governments and the public, these were incorporated in preparing a new draft Bill by a working group constituted by the Ministry of Human Resource Centre for Budget and Governance Development. Although the re-drafted RTE Bill 2008 was not made public or open to Accountability consultations, the Union Cabinet went ahead and cleared the draft Bill on October 31, A-11, Second Floor, Niti Bagh 2008; with some changes, this got enacted as the RTE Act 2009. Khel Gaon Marg, New Delhi - 110 049 INDIA One would have expected that after so many rounds of drafting and re-drafting the Phone: +91-11-4174 1285 / 86 / 87 enactment, the final outcome would be an effective instrument for any child in this Fax: +91-11-2653 7603 country to demand her basic entitlement. The following pointers reveal some of the Email: [email protected] major concerns. Website: www.cbgaindia.org Unequal Dispensation of Right to Education Views expressed in the articles are those of To begin with, the Act further fortifies the multi-tiered and unequal education structure the authors and not necessarily the position as opposed to a common school system. While the government-run schools would cover of the Organisation.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 1 costs associated with all its wards, the government-aided schools would be accountable to admitting students proportionate to 25 percent of its annual grants. One can understand if the government is keen to get the Act operational at the earliest and is subsidising the cost of private-run schools for providing education temporarily; however, this is certainly not the case as the government does not specify any time frame up to when it would continue to reimburse the costs of education of the private-run schools. With over 21 percent of schools in the country already being run by private management on commercial principles, there is a real concern that this provision might be seen as a lucrative business opportunity by many.

Unclear Definition of a Child Clarity is missing even on the basic understanding of who is a child. The United Nations Convention of Rights of the Child (UNCRC) defines any individual below 18 years of age as a child. While the Juvenile Justice Act in our country considers persons below 14 years as children, the Right to Education Act narrows it down to persons between 6 to 14 years.

Indefinite Timelines Several of the provisions in the Act leave a lot of scope for the government to delay effective implementation. For instance, establishing a neighborhood school where there is none within three years of commencement of the Act is a case in point. The extent of ambiguity becomes obvious as the Act does not clarify the area or limits for establishment of a neighborhood school, leaving this to be decided by the government at a later date through rules that it may deem fit to alter.

Varying Standards for Accountability Quality monitoring is attainable only in a culture of accountability. To ensure this, the Act provides that all schools, except unaided, would constitute a School Management Committee (SMC). Obviously, having SMCs do not ensure that mechanisms for monitoring of norm-adherence as specified in the Act, and more important, issues of quality with respect to specified norms – a grey area. Apart from the complex questions relating to fixing of accountability at different levels remaining unaddressed, it is not clear why unaided schools are left out of the purview of accountability, when we define accountability in the narrow sense of the school constituted SMCs.

Fixing Financial Responsibility There is no clarity on who will take the lead in financing the Act. Ideally, the Central government ought to be shouldering this duty in the light of the poor fiscal situation in most of the States. Acknowledging this reality, the Act notes that the States may seek a pre- determined percentage of expenditure as grants-in-aid from the Central government based on recommendations of the Finance Commission on assessment of additional resource requirements to any State. Be that as it may, the Act reveals the obvious contradiction when on the one hand, it suggests both the Union and State governments have concurrent responsibility to finance the Act, with the Centre preparing estimates of capital and recurring expenditure under the Act, on the other, it unequivocally holds the State governments responsible to provide funds for implementation of the Act.

The Union government trying to shy away from taking the financial responsibility of implementing the Act is in keeping with its reluctance in allocating adequately for the social sector. Spending on education by the Union government in 2009-10 (BE) stood at Rs.44,528 crore (around 0.76 percent of GDP) while the State governments in 2008-09 (BE) were provisioning Rs.1.3 lakh crore (around 2.3 percent of GDP). Despite reiterating the same commitment in the past 40 years, spending on education by Union and State governments as a proportion of GDP remains at 3.7 percent (2007-08).

The CABE Committee had estimated that in the six year period of 2006-07 to 2011-12, Rs.4.36 lakh crore (with teacher’s salary at Kendriya Vidyalaya norms) and Rs.3.93 lakh

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 2 crore (with teacher’s salary at prevalent scales) would have to be allocated to universalise elementary education. Sticking to the lower level of CABE projections, the additional required outlays are Rs.3.93 lakh crore for a five-year period. In this regard, reports in the media suggesting the required additional outlays anywhere in between Rs.1.78 to Rs.2.32 lakh crore, spread over a period of five years, as estimated by the MHRD, for implementing Right to Education Act seem extremely disturbing, if not mysterious.

These and some other critical issues have been taken up in considerable detail in this Special Issue focusing on Right to Education Act where we have invited contributions from leading lights in the sphere of academics, civil society and movements working towards realisation of this critical entitlement. These articles would, it is hoped, inform and guide our understanding and advocacy on the operationalisation of Right to Education Act and come in handy as a ready-reckoner on the issue of financial and quality aspects pertaining to the Right to Education Act.

Praveen Jha & Pooja Parvati

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 3 Right to Education and India’s Democracy Shantha Sinha*

Since the time of framing of India’s words if a child lives in a remote area, learning the language, coping with an Constitution, the journey of the State’s providing free transportation (or unfamiliar medium of instruction, being obligation to ensure children’s right to residential facility or some other facility) regular to school and so on. It requires education has been ridden with obstacles. will be part of the child’s entitlement to knowing the procedures of admission, Although there has been a phenomenal education. These include special aids for getting a birth certificate, attendance in increase in the numbers of schools, children with disabilities. schools, obtaining a transfer certificate to teachers and school going children in move from one level i.e. primary school to effect universalisation of education The Act seeks to remedy the structural the next level. They are at a loss to deal remains an unfinished task1. It is hoped deficiencies that have pushed children out with the school system, the myriad that with the passing of the ‘Right of of schools. The government schools which procedures, rules and hidden practices Children to Free and Compulsory are currently bursting at their seams with that we as middle class have acquired and Education’ Act (RTE Act) 2009, children overcrowded classrooms, having no transact almost unthinkingly. The RTE in our country would no longer be out of corresponding increase in the numbers of Act is sensitive to all the above challenges school as part of the labour force but schools at the elementary level are now faced by children and thus makes it would all enjoy their right to education in mandated by the Act for State mandatory that no child is denied a full time day school. For, it is education provisioning of infrastructure facilities.2 admission or driven out of school for alone that opens up possibilities for a want of birth certificate, transfer world of opportunities and choices and its Compounding the lack of infrastructure certificate nor can they be held back in any absence draws one to a marginalised and are issues of corporal punishment and class till the completion of elementary vulnerable work force. Education leads to consequent insults and humiliation. school. path of equity and social justice which are Children are often punished for non- payment of school fees and other charges, so intrinsic to the democratic fabric of Tackling Backlog not wearing school uniforms, inability to society. With large numbers of children of school- buy text books, notebooks and other going age out of school, it is inevitable that stationery. This in itself discourages Setting the Context they join the labour force. The markets children from participating in school. In The RTE Act is historic as it makes it a are ever ready to absorb them as they are a State obligation to provide for free and many schools children are subject to source of cheap labour that can be discrimination on the basis of caste, compulsory education to every child of the compelled to work for long hours. age of 6-14 years in a neighbourhood. gender, disability, ill-health and so on. Consequently the child joining the labour These issues too are addressed in the Act Ordinarily the definition of pool is condoned. This indirectly gives a neighbourhood is based on distance: 1 km which clearly provides that ‘no child shall message that children may not learn and be subjected to physical punishment or of walking distance from habitation of a teachers need not perform because poor child at the primary level and 3 km at the mental harassment’. It also spells out a children in any case would not continue in child friendly pedagogy. upper primary level. However in areas of schools. Under the RTE Act, no child is to sparse populations or those prone to be out of school and in order that older Encouraging the First Generation natural disasters or with difficult terrain children and school dropouts catch up or civil unrest, this limitation may be Learners with their peers, children will be enrolled More importantly, the RTE Act changed so that their education is not in the class that corresponds their age. It interrupted or disrupted. appreciates the difficulties faced by the is the obligation of the State to admit a first generation learners in coping with the child to an age appropriate class and In making it mandatory for the State to school system. Families that have been receive special training to be on par with ‘ensure compulsory admission, denied literacy for centuries would not others. This means that the RTE Act attendance, and completion of elementary know how to transact in the world of addresses the huge backlog of children education by every child of 6-14 years by school and education while they are able who have been left out of the formal implication, the State is violating the law if to deal with the world of work, labour schools. any child is out of school, or is a school and employer-employee relation. The act dropout’. According to the Act free of going to the school necessitates education means that no financial inculcating a culture and habit of packing Role of Private Schools constraints can ‘prevent’ a child from the school bag and lunch box, doing the Rights based discourse also means evolving completing elementary education. In other home-work, preparing for endless tests, a framework that includes the private

*Dr. Shantha Sinha is Chairperson of the National Commission for Protection of Child Rights (NCPCR) and well-known for her pioneering work on child rights. She is also the President of CBGA’s Board of Trustees.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 4 Right to Education and India’s Democracy

sector to provide every child education of right to education act makes it mandatory establishment. When utmost faith in its equitable quality and access. Most private that all private schools provide for 25% of people and their capacities is evidenced by schools in the country today are guided by its admission to poor students. the State’s commitment, local actions the logic of the market and have emerged emerge, which go beyond the expectations as commercial ventures. This scenario is Childhood, State and Democracy of the government. In fact it has been seen vastly different from the private schools A childhood enjoyed, is the result of having time and again how a community can take which had earlier emerged to serve the State support; either direct or indirect. ownership of the idea, spread its wings and educational needs of children and were Indeed I am what I am because of the offer all that it has to make education non-profit organisations and charitable support I received from the State in terms happen including breaking down many trusts that depended on State aid. Now in of subsidised school fees, college fees and exclusionary barriers, as if it was waiting the framework of market, services are university fees. Due to this State support for this call from its government leaders. offered to such children who can buy the next generation from among those of Since several of these ideas challenge education. Like any other product, it is us who have benefited is able to participate normative ways of thinking and doing packaged to convey that a good school is as empowered citizens of the State and take things, they do question the existing social English medium, children in school advantage of the market. and cultural hierarchies and power uniform, tie and shoes, competition and An undercurrent of cynicism about structures. It seems that at this point home-work, discipline of learning and if government and its capacity to deliver is taking sides becomes inevitable. However, better endowed, it is picnics, computers slowly getting solidified. Such a discourse the strengthening of the community and state-of-the-art technology. In their does not encourage or build the capacities forums which emerge, serve to strengthen urge to acquire the ‘brand’ product as any of the State to deliver services, but allows collective democratic processes through consumer, the clients begin to spend more for abdication of the State’s obligation local consensus building in favour of the than what they can actually afford just as towards its children. More than anything democratisation of existing structures and consumers of any commodity in the else it systematically augments de- practices. The challenge in taking such market. In this sense education is legitimisation of the State. All of us are movements forward has always been in becoming a commodity for sale and aware that there is no other institution in institutionalising the ground swell of local transaction, available only for those who contemporary times that can parallel the action. can afford it. State especially for the protection of rights. The process of attainment of right to Encouraging private schools as Therefore when the State falters and education requires all to take a categorical commercial enterprises compromises the creates structures and processes that stand in favour of children’s rights. It must principle of universality as it offers services exclude children, the solution would be in be an expression of moral indignation only to those who can pay for it. Thus not abandoning the State but in leading to action and daily practices of those who are deprived and marginalised reforming its system, rethinking its policies respecting all children of all classes. We are automatically out of its net. If left for children, making greater investments must question in an institutionalised unregulated, the high-end suppliers would and constantly bring to the fore the rights- fashion all violations of children’s rights foster further exclusion and reinforce class based perspective that resonates with the and create energy for the State to respond differentiation. It is in this context that it values of democracy, justice and equity as to avoid ad-hoc schemes and commit for becomes imperative to see the role of enshrined in the Constitution of India. long term inter-generational policies. schools as institutions that are This requires galvanising the energies of all Every right attained brings changes in the indispensable for creating conditions for in society to create an atmosphere where existing socio-economic formation an inclusive democracy and as instruments the rights of children are protected as a towards greater participation and for building capacities of citizens. The very State obligation and guaranteed by the confidence of citizens of the nation. Every act of studying along with their peers in State as political expression. right attained builds State capacities for the neighborhood, transcending class democratisation of all public institutions, differentiation integrates children into a Implications for Democracy giving access to one and all without web of interaction, encouraging them to The process of realising children’s rights in discrimination, when those institutions no utilise creative modes of thinking and a way is a process of deepening of longer are sites for contestation of power. pursuit of knowledge. As a first step democracy. The challenge is in making the Every right attained indeed radicalises towards equity and bridging the gaps in voices and the practices on the ground the democracy and makes for a proud and the social and cultural hierarchies, the voice of those in authority and cultured nation.

1 India has the largest network of government schools in the world today with over 9 lakh schools and 36 lakh school teachers covering 14.3 crore children in the 6-14 years age group in schools.

2 Enrolment at primary stage increased by 11.5 % from 1183 lakh in 2004-05 to 1319 lakh in 2006-07 and that of upper- primary level increased by 26 % from 377 lakh to 475 lakh between 2004 to 2006. 16.45 schools of All Types are running with the student-classroom ratio equal to or more than 60. (Flash Statistics 2006-2007, NUEPA)

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 5 longer a phenomenon confined to the rich Fulfilling the Promise of Right to and middle classes: ASER 2008 finds that there has been a 37 percent increase in Education private school enrolment just between * 2005 and 2008. Among all 6-14 year- Jayati Ghosh olds, the proportion of children attending private schools increased from 16.4 Among the more striking failures of the through Sarva Shiksha Abhiyan (SSA) percent in 2005 to 22.5 percent in 2008 development project in India, two in the under which the Centre provided 75 and the increase was particularly striking field of education stand out: the apparent percent of the funds with the goal of in Karnataka, Uttar Pradesh and inability to deliver universal good quality univeralising primary education. This has Rajasthan. school education to all the country’s led to greater expansion of the school children and the growing inequalities of system, especially in states that previously Illiteracy rates remained shockingly high. access to education at all levels. could not or would not provide more The National Literacy Mission (NLM) resources for such growth. The latest played a major role in providing a One reason for this unfortunate state of Annual Survey of Education Report quantum leap in increasing functional affairs has been the inadequate fixing of (ASER) 2008 finds that the share of literacy among the adult population in the Central responsibility for the financial children not in school has fallen late 1980s and early 1990s. However, resources required for universal school considerably: the proportion of 7-10 year- follow-up has been poor and many of the education. Until 1976 (when the olds not-in school was 2.7 percent and gains are now eroded with some Constitution amended to move education proportion of 11-14 year-olds not in beneficiaries even falling back into from the “State” list to the “Concurrent” school was 6.3 percent. illiteracy. More importantly, a significant one, thereby allowing more direct part of the age cohort 15 to 30 years – intervention by the Central government) However, the pressure to increase around one third according to the NSSO state governments were largely held enrolment was also associated with Survey of 2004-05 – did not benefit from responsible for providing school dilution of quality norms in that NLM and were too old to benefit from education in particular. This led to widely “schools”, or rather, “Education Centres” the expansion of primary education. So different outcomes across states, reflecting were permitted to come up based on single they remain functionally illiterate. not only historical legacy but also the (often untrained or minimally trained) ability and willingness of state governments and underpaid local teachers handling This is the background in which Right to to provide resources for school education. multi-grade classes with poor facilities and Education has finally become law, after Governments in the poorer and more occasionally no buildings or other basic nearly a decade of promises and backward states tended to have fewer fiscal infrastructure. Quality is not solely continued efforts by some sections of civil resources to enable the required influenced by spending but it certainly society. This law is relatively limited, expansion, much less to ensure quality. does play an essential role, and therefore, confining itself to children in the age This tended to reinforce existing spatial it is crucial for public intervention not to group 6 to 14 years and therefore inequalities. try and deliver this human right “on the excluding both pre-primary and above cheap”. In addition, it is clearly important elementary schooling. Nevertheless, this But even after 1976, there was little real to focus on other means of ensuring law is not only essential in order to ensure progress, because ensuring universal quality and relevance of schooling such as that every child in the country gets access quality schooling was simply not made a greater decentralisation, accountability to good quality schooling; it also holds out policy priority even at the Central and flexibility in the government school the hope of significant improvements in government level. It is true that system. enrolment, retention and quality of subsequently there was some increased schooling. However, concerns remain with involvement of the Centre in providing Partly because of public miserliness and both the nature of the law and its likely financing for expansion of school also other problems with the government implementation because this law is education – first in the 1990s through the school system such as teacher absenteeism unfortunately opaque on allocation of District Primary Education Programme in certain places, there has been growing responsibility and financing. Some of the (DPEP) in some districts, and then reliance on private schooling. This is no more important concerns, especially those

*Prof. Jayati Ghosh teaches Economics at Jawaharlal Nehru University, New Delhi and is the Executive Secretary of International Development Economics Associates (IDEAS). She is a regular columnist for several Indian journals and newspapers, a member of the National Knowledge Commission advising the Prime Minister and is closely involved with a range of progressive organisations and social movements. She is also a member of CBGA’s Board of Trustees.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 6 Fulfilling the Promise of Right to Education

that have a bearing on the public be provided by it. This is bad news, have to be associated with changes in the expenditure aspects, are highlighted below. because the UPA government has actually minimum financial norms per student as The most important limitation is that the reduced rather than increased its financial well. law does not make any explicit financial commitment to the Right to Education, provision by the Central government. through its move to reduce central Another important issue is the need for State governments are made responsible funding of the Sarva Shiksha Abhiyan greater flexibility in providing resources, for implementation of the law, but since from 75 percent to 65 percent and both from Centre to States and from they face hard budget constraints and eventually to 50 percent. This retrograde State governments to local levels. The already have uneven levels of development step actually militates against RTE and current norms for SSA are excessively rigid of school education, this does not augur must be immediately reversed if the and do not allow for regional, spatial, and well for implementation. State promise is to be met. Similarly, the rural-urban differences. The legislation is governments already bear the brunt of allocations for the proposed SUCCESS also very rigid. For example, it lays down financing school education (estimated to programme for secondary education must the exact nature of decentralisation of be around 84 percent of the total first of all ensure adequate allocations to management (amounting to a highly expenditure). While universal education is ensure the right to education up to Class centralised notion of decentralisation) nearly achieved in some states, in several VIII, and in addition provide for even down to specifying the required others it will not be possible without additional resources to expand secondary composition and powers of the School significant additional funding, which is and higher education. The current Management Committees and District simply not available with the state allocations for secondary education Education Committees. Instead, state governments concerned. In addition, in proposed in the 11th Plan are completely governments should be allowed to choose some states with large gaps, there are likely inadequate for these goals. their own manner of provisioning, as long to be large requirements of additional as it meets certain basic criteria as well as infrastructural spending to ensure the It was noted earlier that the pattern of the norms for quantity and quality. right to education. Also, there are major funding of SSA and the emphasis on issues of inferior quality that stem from expansion of enrolment has led to the Clearly, continuous public pressure and inadequate funding even in states where emergence of parallel streams of schooling, social mobilisation that impacts on the enrolment has been increased. with “Education Centres” operating with Central government as well as on certain minimal infrastructure and resources, state governments will be required if the The legislation leaves it to the discretion of which cannot be accepted as schools. The promise that is inherent in this law is the Central government as to how much legislation does provide some notion of actually to translate into a positive reality of the additional expenditure required will minimum quality norms, but these in turn for the country’s children.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 7 child. Sixth, it provides directions for Right of Children to Free and Compulsory adopting a child friendly pedagogy where children attend schools free from the fear Education – Some Reflections of failing in examinations and being * thrown out of the school. Finally, perhaps R. Govinda the most important implication of the Act is that as a law arising out of a The Indian Parliament amended the scene in a significant manner. First, the Act Fundamental Right it gives teeth to the Constitution in 2002 incorporating makes a beginning in explicitly delineating concepts of compulsory and free Article 21a that guaranteed free and the responsibility of the State and the education; it designates the State to compulsory education to all children in School management who are the two shoulder the responsibility and make the the age group 6-14 and it entered the legal major actors involved in elementary school commitment justiciable. statute books only on April 2010. The provision. Second, it attempts to define event has however raised euphoric the entitlements of the child in terms of Some Implementation Challenges endorsements heralding the Act as being educational provision, independent of the There has been widespread criticism of the capable of transforming the whole kind of school the child is attending. This law as being too limited in scope as it leaves education system. Will it really do so? Is is done by setting benchmarks on what out 0-6 year age group which was part of that the intention of the Act? There is no minimum standards should a school the earlier formulation in the Constitution doubt that if we succeed in getting every conform to. under the Directive Principles of State child in the country to participate in Policy. But one has to recognize that at the schooling, it would have far reaching This is of very special significance as in core of the present law is the objective of impact on the education scenario in the recent years both in the Government and empowering the compulsory education act country. But what is needed at the present private sectors, a large number of schools by placing it in the Fundamental Rights juncture is not euphoria. We have to take have come up with almost no basic Schedule. Obviously, one would not want an objective and realistic view of the facilities. The greatest pressure of this to forcibly subject children before they provisions of the Act and the ways and provision will be on the Government itself become even 6 year old to the treacheries of means of effectively realising their which has in recent years created many present day formal schooling. The need is potential benefits to the children. A core single teacher schools with sub-minimal to design and implement a holistic issue to be addressed in this context is facilities under the banner of Education programme of child care and development whether mere passage of a law would Guarantee Scheme (EGS) centres. Third, which would include elements of education. suffice to achieve the goal of universalising by specifying that every school should have In fact, the ongoing ICDS programme is education? What about factors outside a School Management Committee, the Act supposed to achieve this objective. Could the framework of schooling that promote recognizes the centrality of effective school we have a separate law to enforce such a or hinder participation of children in functioning. This also recognises the provision? Yes, but I would not endorse the schooling? This paper attempts to important role that the community and idea that all development goals can be highlight some of these issues. parents have to play in school achieved only through legislative provisions. management by insisting on majority Salient Features of the RTE membership for parents of children In fact, the goal of child care and Enactment of the RTE law and thereby studying in the school. Fourth, with an eye development is too complicated to be making free and compulsory education in on bringing greater equity in the school bound by a single law. Rather this goal the age group of 6-14 years a fundamental system, the Act sets up a fresh agenda for could be achieved to a great extent by right is indeed a landmark event in the engagement with private providers. It strengthening and expanding the scope of educational history of India. The Act avoids the traditional trap of treating the the livelihood provision act such as effectively shifts the discourse on Government and the Private as adversaries NREGA, coupled with enactment of food universalisation from provision to and provides a framework for functioning security act including basic nutrition for entitlement; the shift is also from norm as partners engaged in promoting a children and a law to guarantee health for based and supply oriented planning to common public cause. Fifth, it lays down all. This is critical as many studies have need based and entitlement oriented the ground rules for treating children in unequivocally pointed to the fact that poor planning. The Act also introduces certain schools with dignity free from physical and health condition and malnutrition in early specific features which have the potential mental harassment; creating all basic years, on the one hand and family poverty, to transform the elementary education facilities particularly with an eye on the girl on the other are the predominant reasons

*Prof. R Govinda is the Vice-Chancellor of National University of Educational Planning and Administration (NUEPA), New Delhi. A renowned educationist, the author has written a number of books and also heads the Department of School and Non Formal Education in NUEPA.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 8 Right of Children to Free and Compulsory Education – Some Reflections

for children not benefitting from primary Commission for Protection of Child existed in many states for a long time schooling. Together these factors stunt the Rights (NCPCR) has been identified as under different names. The SMC, cognitive development of the children, the body responsible for overall therefore, for the first time has become an make them vulnerable to chronic ailments monitoring of the implementation of essentially parental body influencing and predispose them to remain on the the law, it is obvious that the NCPCR school functioning with due authority margins of schooling. I would reiterate that cannot shoulder the responsibility for legally vested in it. This scope for collective it would be a wrong assumption to believe monitoring day to day implementation action is important even while the that all problems of children can be solved of the provisions of the Act. The Act individual parent has the right to through legislation. Rather, proactive and elaborates on the role of the local approach the court of law, when they find effective developmental action by the State authority in monitoring of their ward’s Right to Education as holds the key for addressing the basic needs implementation at the school level. elaborated in the Act is violated. of the young child by tackling the root While some roles have been specified for causes for their involuntary exclusion from the school management committee, The third issue to be addressed is that of schooling, which actually lie outside the much more is left vague expecting the financing the implementation process. education sector. local authority to take the lead role. Disaggregated computation of the However, with many State Governments financial requirement reveals that state The second issue to be addressed is that of still undecided on the exact role of wise assessment would push up the accountability. Who should be held Panchayati Raj Institutions (PRIs) in financial requirement significantly from responsible to ensure that the Right to educational governance, the issue of around Rs.170,000 crore to around Education of every child is protected? The ‘who is the local authority?’ remains Rs.200,000 crore. Currently, the Centre traditional wisdom as reflected in most of confusing. and several of the State Governments seem the Compulsory Education Acts has been to be engaged in a debate on whose to hold the parents responsible for The solution seems to be that the State responsibility it is to finance an Act of this admitting and guaranteeing the Governments designate and notify the kind. Part of this debate is indeed attendance of their wards in school. name and designation of the person who political in nature. Again the solution lies Historically, in Indian school system, the would function as the nodal officer at in moving beyond political posturing and teacher has also been expected to secure the local level. Will the State engaging in a more realistic examination of the admission and attendance of children Governments take such proactive steps the situation in each state for joint action. in school. Indeed, some teachers take without external pressure? It is unlikely It would also require differentiated action proactive action to enroll all children in that the State Governments would act from the Centre with regard to the their schools and even closely keep track of fast enough in this regard without financial support to be extended to their regular participation. The current concerted pressure from the civil society - different states. The major item of legislation adopts an altogether new organized civil society bodies as well as expenditure is invariably towards approach of designating the Government grass root level community groups. Such engagement of qualified teachers. If one as responsible for compulsory civil society action is critical for forcing were also to include financing institutional participation of children in schooling. Yet, the hands of the State to act with speed infrastructure for training of teachers to who in the government is responsible for and commitment. In this context, this amount, it would be erroneous to securing regular participation of children constitution of the School Management measure these with a common yardstick in the elementary school has been left Committee (SMC) with 75% members as for different States implementing Right to vague, to be decided by the respective State parents of children attending the school Education making it a reality for every Governments. Even though National is very significant. In fact, SMCs have child of this country.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 9 Financing the Implementation of Right to Education Act Jandhyala B G Tilak*

One of the most contentious issues relating But the estimate was found to be expected that the Union government to the Right to Education has been astonishingly high and several attempts would shoulder either the total or a large financing. It is held that provision of good were made in the subsequent period to re- part of the financial responsibility of quality elementary education to all work the estimates, essentially attempting making elementary education a children as a right would mean a lot of to lower it. For instance, the Working Fundamental Right. The Union finances, which a fast developing economy Group on Elementary Education government in contrast, wanted the states like India cannot afford. It is perhaps the constituted in the context of the 10th Five to assume significant responsibility in this same view that prevented the Constitution Year plan estimated this figure to be regard. To avoid any controversy, the makers from including education in the Rs.55,000-60,000 crore for the plan financial memorandum was omitted Fundamental Rights in 1950 and as a period. At the time of launching of Sarva altogether when the Act was made. Not result, it was listed only as a Directive Shiksha Abhiyan (SSA), the requirement even a categorical assurance is made that Principle. And, it is the same view that was estimated to be Rs.98,000 crore for a sufficient financial resources will be made delayed for a decade the 86th 10-year period and in the context of the available for implementation of the Act. Constitutional Amendment after the preparation of the National Plan of 1992 Supreme Court judgment and Action for Education for All, it was The Act recognises the concurrent nature delayed the Right of Children to Free and estimated at Rs.52,000 crore for a five- of education in the Constitution, as made Compulsory Education Act, meant to year period. According to the CABE through the 42nd Amendment in 1976, operationalise the amendment for a Committee (2005), the estimate (in and states that “the Central government further period of seven years until 2009. current prices) varied between Rs.320,000 and the state governments shall have crore and Rs.436,000 crore based on concurrent responsibility for providing After the Supreme Court ruling in 1992 alternative assumptions regarding pupil- funds for carrying out the provisions of pronounced education as a fundamental teacher ratio. The most recent estimate this Act”. It only promises that the Centre right, a committee of ministers of that seems to have been accepted by the should provide grants-in-aid as a education of selected states under the Ministry of Human Resource percentage of capital and recurrent chairmanship of Muhiram Saikia, Development is Rs.171,000 crore for a expenditure “as it may determine, from constituted by the Government of India in five-year period. Most of the estimates time to time, in consultation with the state 1997, estimated that provision of made after the Majumdar Committee are governments”. It also promised to request elementary education as a Fundamental in current prices and are based on the President to make a reference to the Right would require around Rs.40,000 dilution of several norms regarding pupil- Finance Commission for a special crore for a five-year period. As it was a teacher ratio, provision for quality of consideration in this regard, which it did. crude estimate, the panel itself education, provision for incentives, What is most worrisome is Clause No.7.5 recommended examination by an expert allowance for enrolments in private which transfers the ultimate responsibility committee. Accordingly, a committee schools and non-formal education among of providing adequate funds to the state chaired by Tapas Majumdar was set up, other things. governments. It states, “Notwithstanding which considered several parameters for anything …. the state government shall … providing good quality education to all However, the estimate of Rs.171,000 crore be responsible to provide funds for children in India and in 1999 estimated is also regarded as too high to make it a implementation of the provisions of the that it would additionally require around part of the financial memorandum of the Act.” Rs.137,000 crore (in real prices) for a 10- Act. Given the fragile fiscal position of year period – Rs.13,700 crore on average many states and their wavering One of the important aspects of SSA – per annum (about 0.7 percent of GDP, commitment to elementary education as the flagship programme launched at the assuming that GDP would increase at a also the importance of the Constitutional turn of the century for universalisation of growth rate of five percent per annum). Amendment, many state governments elementary education – is that for the first

Prof. Jandhyala B G Tilak is the Head of the Department of Educational Finance, National University of Educational Planning and Administration, New Delhi. A distinguished academic, Prof. Tilak has written several books and is a member of several committees on Education constituted by GoI and various state governments.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 10 Financing the Implementation of Right to Education Act

time the Centre-State share in financing the Act, and indeed, offer a generous ratio gradually, if not suddenly now, its elementary education is clearly defined. favourable to the states. Alas, it does not. responsibility of providing adequate funds The ratio that was 85:15 (85 percent There is no compulsion on the part of the in favour of the state governments for being the responsibility of the Centre and Union government to provide funds to fulfilment of the fundamental right of 15 percent of the state) at the start of the the state governments. In the absence of children to free and compulsory scheme, is expected to settle at 50:50 by any clear provision, the Union education. the beginning of the 12th Five Year Plan. government may be let off the hook by On the same lines, one would have providing a small token share. After all, it tried in vain to transfer the expected the Act to clearly mention the entire responsibility of making this financial responsibilities of the Union and The Act gives an impression that the legislation to the states during the last state governments in implementation of Union government might abdicate couple of years.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 11 The Right to Education and its Financing Hence, the central government has to find * alternative means of finding additional Santosh Mehrotra resources if the RTE requirements are to be met. First, Public Private Partnership (PPP) in building school infrastructure is a Enactment of Right to Education for all elementary education expenditure of the possibility. But so far the scheme is children between the age group of 6 to 14 central government) was about Rs.18,000 restricted to setting up secondary schools, years might well be one of the most crore in 2009-10, while the minimum not elementary schools, through PPP. And significant measures taken by the needs of RTE are to the tune of that too is at an exploratory stage. government in the recent times. However, Rs.30 000 crore per annum, bringing the Second, the central government has the financial provisions towards the Act difference to about Rs.10,000 - 12,000 announced that for the next three years have not been clearly spelt out; but we get crore per annum. The question then is: (2010-13) funds generated from some indication about the government’s will the Government of India and States disinvestment of major public sector priorities in this regard by looking at the combined find the funds in 2010-11 for enterprises will be partly put aside for most recent Union Budget (2010-11) meeting the needs of RTE? infrastructure investments in the social outlays for education. sector. The Finance Minister in the Budget The Plan allocation is an increase of Speech has repeated what was announced The Finance Minister’s speech on the Rs.4236 crore (i.e. Rs 31,036 – Rs 26,800 earlier that Rs 25,000 crore is likely to be budget said the following on Education: crore) from 2009-10 to 2010-11 . generated from divestment of PSUs in “The Right of Children to Free and However, this is the increase for the entire 2010-11. However, the issue remains how Compulsory Education Act, 2009 creates school sector (i.e. elementary and secondary much of this additional Rs 25,000 crore a framework for legal entitlements for all will be allocated to meet the needs of RTE- children in the age group of 6 to 14 years education). The allocation for SSA has based school infrastructure. Third, it is to education of good quality, based on been limited compared to 2009-10. This necessary for the central government to principles of equity and non- leaves a serious shortfall. The allocation for negotiate new loans from bilateral donors discrimination. In recent years, Sarva SSA in 2010-11 is only Rs 15,000 crore and from multilateral financial Shiksha Abhiyan (SSA) has made plus another Rs 500 crore for Teacher institutions (e.g. the World Bank, Asian significant contribution in improving Education (total Rs 15,500 crore). That Development Bank) for a loan for enrolment and infrastructure for makes the shortfall compared to the elementary education. Fourth, the elementary education. About 98 per cent requirement for RTE of Rs 30,000 crore a National Education Finance Corporation of habitations are now covered by primary full Rs 14,500 crore in 2010-11. has been proposed, but more serious schools. I propose to increase the plan thought needs to be given to how capital allocation for school education from In addition to the Rs 15,500 crore that the for it could be mobilized from the capital Rs.26,800 crore in 2009-10 to Rs.31,036 central government will have to allocate to markets, and directed towards elementary crore in 2010-11. In addition, States will meet the RTE needs, the States have been education – though these will likely be only have access to Rs.3,675 crore for given, “access to Rs.3,675 crore for loans for the private sector to develop elementary education under the 13th elementary education under the Thirteenth schools. Finance Commission grants for 2010-11.” Finance Commission grants for 2010-11” says the Finance Minister in his speech. The Ministry of Human Resource That still means that Rs 15,500 crore It is a matter of concern that the question Development (MHRD) has estimated the (Union Govt. outlays for SSA and Teacher of financing such a crucial legislation that increased or additional funds required in Education) and Rs 3675 crore (as directly impacts the future of the country order to meet the norms stipulated in the recommended by the 13th Finance has not yet been clearly answered by the Right to Education Act, 2009 (RTE), is of Commission) adding up to a total of Rs government. It is hoped in the interest of the order of at least Rs 10,000 cr to 19175 crore will be available in 2010-11 for India’s children that the ambiguity with Rs.12,000 cr. per annum (for each of the elementary education. That is a full Rs regard to financial provisioning for the next five years). SSA and teacher 11,000 crore short of the minimum RTE is resolved in right earnest and in no education (which constitutes the entire requirement of Rs 30,000 crore for RTE. unclear measure.

Dr. Santosh Mehrotra is the Head of the Development Policy Division, Planning Commission and is also the Director of Institute of Applied Manpower Research, a research institution of the Planning Commission. A human development economist, Dr. Mehrotra has written several books and also been the Chief Economist for the global Human Development Report, UNDP from 2002 to 2005.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 12 teachers with a long term commitment, Implementing Right to Education and the principle of equal pay for same work, which should normally do away Vinod Raina* with teachers with differing salaries and contracts in each state (called para teachers), it will be critical to watch how It is over three months since the Right to governments have up to five years to many states follow these principles, since Education is being implemented, from ensure that existing and newly recruited their ability to financially sustain a single April 1, 2010. That day began with the teachers attain nationally notified permanent cadre of teachers will crucially unprecedented address to the nation by academic and professional standards depend on their own financial the Prime Minister, the first time ever that within five years, by March 31, 2015. This commitments, and the support the central the PM of the country has done so on a will require a massive expansion of the government is willing to provide for this single issue. The important part of the teacher education institutions and vital need. address was the PM’s commitment that mechanisms. lack of funds would not be allowed to Given the foregoing imperatives, we may hamper the implementation of this All of these measures will obviously require finally ask the question: What kind of constitutionally mandated right. Though enhanced funding. However it is equally funds is required and what should be the three months is a short time to assess the important that the state governments are sharing pattern between the centre and the present UPA government’s actual able to utilise the funds if they are made states? NUEPA had done an estimate of commitment to implementation of the available to them. One must keep in mind fund requirement that suggested an Act, the trends are however beginning to that though the availability of adequate amount of Rs.1.71 lakh crore for the first emerge. In financial terms, they can not be amount of funds is a necessary measure five years. NUEPA had based these said to be encouraging as of now. for the implementation of the Act, the calculations assuming the deployment of ability of state governments to utilise these regular rather than low paid teachers. In Financially, the Act is somewhat front funds in prescribed time frames is a big my opinion this is a conservative estimate, loaded since some of the time targeted issue, since expenditure deflation afflicts particularly with respect to the number of measures requiring heavy financial inputs many state governments, particularly those out of school children and their education have to be in place within five years. The that require more funds. This is evident as per the provisions of the Act. There is Act makes it a legal obligation on the state from the unspent balances with state also a methodological problem in making to provide a neighbourhood school of a governments from the SSA funds in the these calculations. The Act defines ‘free’ prescribed quality to every child in the 6- past. education as any fee, expense and 14 age group within three years, that is by expenditure that is an obstacle to the March 31, 2013. All out of school The central government has decided to completion of elementary education; children have to be admitted to schools adapt (or harmonize, as is the terminology implying the state would have to bear this and mainstreamed after a bridge course used by the MHRD) the SSA for the expense. Though the model rules itemise that may at best last up to two years. implementation of the Act, for at least the some of these free entitlements, like Given that the actual number of out of remaining part of the 11th plan period. uniforms, copies, books, writing material, school children, non-enrolled and drop This will be done on the basis of a report support and educational materials for outs, may be over 40 per cent of the total that a committee set up for the purpose children with special needs, the population of this age group, which could has already submitted to the government. requirement may be very large for migrant, be as many as 80 million, the required MHRD has also circulated a set of model working, homeless and dispersed expansion of the school system would be rules to the states, and each state population children in terms of residential massive. The requirement of a Pupil government is in the process of examining facilities, free transportation etc. It is to Teacher Ratio (PTR) of 30:1 for this them in order to formally adapt them my mind quite difficult to estimate these expanded system implies that over a with requisite changes. Such adaptation financial needs at this stage, and they may million teachers would need to be will be critical in the area of teacher come up from actual needs, or through recruited within the prescribed three year salaries, a subject that falls within the litigations where violations occur. period, since maintaining the PTR in each purview of the state governments. school is part of the prescribed quality of Whereas the Act and the central model The good thing is that after the NUEPA the neighbourhood school. Finally, state rules emphasise on a professional cadre of estimates, MHRD itself realised that there

* Shri Vinod Raina is one of the pioneers of the People’s Science Movement in India, having helped set up the All-India People’s Science Network (AIPSN) and the Bharat Gyan Vigyan Samiti (BGVS). He is a founding member of Eklavya, an organization advocating alternative education for more than two decades, and the only NGO whose curriculum was adopted in the state school educational system.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 13 Implementing Right to Education

was a big deficit in the recruitment of government to its responsibility towards ministry and the supplementary teachers in the initial years of SSA which the implementation of the Act, in my budget for 2010-11 and annual has to be carried forward as per the opinion it is insufficient. If the Prime budgets thereafter reflect this need requirements of the PTR of the Act, and Minister’s commitment to the nation that 2. The sharing ratio between the centre this deficit would work out to Rs.60,000 finances shall not be allowed to hamper and states is pegged at 75:25 for the crore for the next five years. Accordingly, the implementation of the Act is to be next five years the Expenditure Finance Committee note translated into action, then the central 3. The central government devises a submitted by the MHRD to the Finance government has to settle for a 75:35 ratio. mechanism that oversees the Ministry is for Rs.2.3 lakh crore for the If that is not done, some state governments expenditure in the states to ensure implementation of the Act, and not are most likely to violate this fundamental that the funds are expended in the Rs.1.71 lakh crore as estimated by right, blaming the centre for burdening required manner and there is no NUEPA. This would work out, on an them with a central Act they can not expenditure deflation leaving large average, to Rs.46,000 crore per year for financially implement. unspent balances in the states. the next five years. The recent central budget, though These financial arrangements are clearly The critical factor is the sharing pattern prepared before the implementation of necessary requirements for the between the centre and the states. Under the Act commenced, is clearly at variance implementation of the Act, not sufficient the SSA at present, the ratio is 55:45 with the PM’s commitment. It allocated a given the wide-ranging provisions the Act which is supposed to go down to 50:50 at meager Rs. 15,000 crores as against the contains. The proper formation and the end of the 11th plan. Calculations for requirement of Rs.46,000 crore, which is functioning of the school management each state clearly suggest that the states can one-third the required amount. True that committees, functional local authorities, not meet the financial needs of the Act at the 13th Finance Commission has allocated deployment and training of teachers, the present sharing ratio of SSA. Many of over Rs.24,000 crore that can be directly quality and inclusive neighbourhood the states have been demanding a ratio to accessed by the states, the combined sums schools for all children including the the tune of 90:10, but this is merely a are however far short of the Rs.2.3 lakh homeless, working, migrant and disabled, bargaining strategy, since it is fairly clear crore estimate that is with the finance classroom transaction as per the that even a state like UP with a large deficit ministry now. provisions of the Act and National in areas mandated by the Act should find Curriculum Framework (NFC) 2005 are it financially comfortable to implement What is therefore required in financial some of the other measures of the act at a 75:25 ratio. The problem is terms for the implementation of the Act is implementation. Together, these constitute that the central government might finally that: a daunting task; but that should not be settle the sharing ratio at 65:35 from the 1. The estimate of Rs.2.3 lakh crore for surprising since the nation is making up present 55:45. Though that is an evidence the next five years made by the for the cumulative deficit of 63 years after of the realisation of the central MHRD is accepted by the finance independence.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 14 quantum of fees: higher the fees charged, What’s so Uneconomical about the better the quality. The expenses on education include school bus, uniforms, Common School System? stationery, after school tuitions, guide Janaki Rajan∗ books and mock tests that are a-near universal phenomena among private schools. However, in real terms the costs are so considerable that in Delhi alone, In recent years, the Common School the lower primary stage and then at the around one lakh children shifted to System (CSS) has often become a red rag higher primary. The neighbourhood government schools from private ones in for educational planners and policy school should be attended by all children 2008. Educational economists have also makers in India. This is odd because it was in the neighbourhood irrespective of caste, viewed educational costs to be sufficiently the Education Commission (1968) that creed, community, religion, economic important to provide evidence that first recommended it and it was reaffirmed condition or social status, so that there household expenditures on education do by the National Policy of Education would be no segregation in schools. Apart have implications for redefining poverty in (1986), review committee of the National from social and national integration, two India2. Policy on Education (1990) and the other important arguments can be Programme of Action (1992). What is it advanced in support of the proposal. In On the other hand, an economically about a system that is prevalent in all the first place, a neighbourhood school strong India requires skilled human developed economies including China that will provide ‘good’ education to children resource requirements. The traditional alarms Indian planners? because sharing life with the common view that demographic abundance people is, in our opinion, an essential supplies a huge army of unemployed and We must begin by first understanding ingredient of good education. Secondly, underemployed and, hence, no planning is what exactly is meant by the Common the establishment of such schools will required, has to change3 as does the School System. The orginators1 of the idea compel the rich, privileged and powerful current trend wherein merely 25 percent express it as follows: classes to take an interest in the system of of the trained have the requisite skills for public education and thereby bring about employability. Para-10.05. The Creation of the its early improvement…The ultimate goal Common School System of Public should be to provide tuition-free All children, irrespective of their Education. The main problem before the education at the school stage. From this backgrounds have a potential for merit country is to evolve a common school point of view, tuition fees will have to be and talent that can all too easily wither system of public education which will abolished in a phased programme. without timely, sustained, long-term care cover all parts of the country and all stages and investment. Even the most of school education and strive to provide How utopian are these recommendations? rudimentary probability theories show equality of access to all children. This Looking at the current education system that 67 percent can be expected to be system will include all schools conducted divided across many socio-economic capable of achieving, 18 percent very by government and local authorities and strata, the more deprived the sections of capable, and 3-5 percent exceptionally all recognised and aided private schools. It society, the less the resources and quality. capable from any given child population. should be maintained at an adequate level Obviously, this type of policy provision Neural network activities it seems are of quality and efficiency so that no parent makes a kind of economic sense – supply immune to caste, class, creed or gender! At would ordinarily feel any need to send his as much as (we imagine) will be absorbed. a conservative estimate, probabilistically, child to the institutions outside the system, there are 200 million children in India such as independent or unrecognised The same economic logic has led to private who can shine. And, that is why the schools. This is the goal which the country schools being given land subsidies to common school system makes economic should strive to reach and a number of ‘supply better’ to those that will be able to sense. steps will have to be taken for its early absorb what is offered. This in turn has realisation. led to a mushrooming of private schools As it is, 93 percent of school-going with heavy subsidies on land and liberal children in the country study in Central Para-10.19. ….From this point of view we policies for charging fees. In the middle and state government schools and those recommend the ultimate adoption of the class public imagination, the quality who are out-of-school are only likely to be ‘neighbourhood school concept’ first at debate has been linked directly with the drawn into government schools, which not

Prof. Janaki Rajan is currently the faculty at the Jamia Millia Islamia, New Delhi. She has also served as Director, State Council of Educational Research and Training (SCERT), Delhi from 2000-2006 and been associated with teachers’ training, curriculum development and material development for government and Municipal Corporation of Delhi (MCD) schools.

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 15 What’s so Uneconomical about the Common School System?

only do not charge fees but also provide class is needed in our schools including the (oddly, called ‘public’ schools) and Public Mid-Day Meals, uniforms, books and 93 percent government ones. As in the Private Partnership (PPP). other basic requirements. Improving the case of Delhi, government schools There are many kinds of private government school system is an absolute improved and were back on the map after institutions. Unauthorised ‘teaching imperative both in national and economic a determined intervention from 2000-06 shops’, tuition and coaching classes thrive interests. in which many middle class students were only because policy and political taken in. In fact, their results were patronage so allows. These will wither In the same economic sense of absorption comparable, and many cases better than, away once the government school system capacity, the ‘quality’ of private schools are the private schools. gets its act together. The category of civil manufactured by simultaneously slanting society interest is the ‘unaided’ school the examination system in favour of private Of course, children from working classes where parents pay all kinds of ‘fees’ schools and starving government schools of will continue to be part of government aspiring for the ‘exclusive’ tag and shelling requisite teachers, pedagogical budgets and schools and gain immeasurably with the out more in expensive private tuitions. conditions for conducive schooling. quality education demanded from their Most of these schools have obtained land middle class classmates. I can only at subsidised (laughable) rates. They have But can there be quality constitutive of demonstrate this from personal two options. To become private in the real making even better economic sense? There experience. sense as in most advanced countries (pay are examples now of quality public services up real price of land and conduct in the form of highways, IT sector, metros. In the mid-80s, I was a young school education as Constitutional right to Cell phones have the same architecture and teacher, teaching Physics, Mathematics and enterprise, embrace GATT which lists performance whether used in the remotest sometimes English in Class IX. I took pride education as a profitable activity). The village or in a metro. The rise of the cell in my work, even though I was ‘just’ a profile of children in such schools will phone consumer is an example that people school teacher and was eager to prove that change to rising upper middle class; fees in India, however impoverished, do discern, it was as good as the work my siblings and will go up hundred-fold but how many take to and use quality products to spouse were doing as MBAs and IIT schools will survive this ‘market economy’? excellent personal economic advantage. graduates. The year 1987 was the most The second option is to switch to other One of the first purchases of a rickshaw- anxious and exhilarating time of teaching sectors such as hotel industry. Therefore, wallah in Delhi arriving from Dantewada in for me. I would prepare for my Physics there must be no subsidy of any kind for Chhattisgarh is the cell phone. We can class till late into the night and wake up ‘societies’ or ‘unaided’ schools. For therefore imagine and create templates of early to revise my plans for the day. Why instance, if they hire a teacher with quality of schooling that cannot be done was this year so different from others academic and professional qualifications using colonial notions of ‘norms’. But such when I taught without such stress? I had from a higher education institution templates, and there may be several of the daughter of a physicist in the class. I supported by the State, and hence them, should provide and ensure similar imagined he was bound to ask his subsidised, the subsidised amount must be educational outcomes from which we begin daughter what she learnt in Physics and due back to the State. No land should be to glimpse the beginnings of the CSS. was anxious that what she would recount allotted under Master Plans for would reflect that I, her teacher, had ‘educational institutions’. These are The next problem is our experience with indeed instilled the basics correctly and private enterprises and must be dealt with anything ‘government’ – the shabbiness, well. I never met her father. But he was my under the Ministry of Commerce. Those the corruption, the nepotism, the having ‘mental audience’, a benchmark. I raised that still want to be seen as ‘public schools’ to know someone, the red tape. Is that the bar for myself, often phoning friends must follow the same principles as that of what we want for our children’s and family with training in science to government schools in terms of child education? Do government schools have to clarify concepts (something I could have composition. be all that? Of course not! We only have to always done but never did until then). As a look around to find government result, many children in the class Only then can we bring about a common institutions that do us proud – Kendriya developed an interest in science and six of system (with a small sliver of breakaways of Vidyalayas, IITs, IIMs. Why do they do so them chose a career in science. They were the super rich as happens in advanced well and beat the government stereotype? the first in their families to do so. countries). There is good reason why The answer lies in the composition of Ironically, the daughter of the physicist did countries cutting across ideologies like the students in these institutions which are not but her very presence contributed USA, UK, Russia, China, Australia, New invariably from the middle class (even immensely to the educational purpose. Zealand, Germany, France, Kazakhstan, reservation policy beneficiaries cannot get Korea, China and Cuba adopt the CSS. there until they are middle class). As There are two more issues of immense As Bill Clinton famously said “Read my pointed out by D S Kothari, the middle economic importance: private schools lips, it is the economy stupid!”

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 16 What’s so Uneconomical About the Common School System?

Sathi Alur, a Dubai-based economist “Some perceive the universalisation of “I understand that the Central Advisory and financial advisor to the National elementary education as a threat to Board on Education, which is the highest Resource Centre for Inclusion and the opportunities of their own policy advisory body in our federal child rights activist says: “The children. In their view the role of the structure, had some time ago reiterated fundamental reason for the national schooling system is to act as a filtering the need for moving towards the goal of failure to develop a common school process which picks the best and a common school system. I recall that system is the lack of a political brightest and helps them to realise way back in 1998, the Law Commission constituency for education. Those who their potential. If too many children of India, in its 165th Report, had also attend government schools are get on board, the prospects of those recommended a somewhat similar powerless while the rest — middle and who currently enjoy the privilege of approach to school education. It is upper classes — have no stake in them. good schooling facilities will be important to understand what such a I recall a conversation with the threatened.”5(PROBE, 1999) system should imply - it should not try to incumbent Prime Minister Dr. bring down the quality of education to Manmohan Singh some time ago. He any common denominator - but make it agreed with the logic of a common imperative to raise the quality of all school system for all children but institutions, whether public, or private; in expressed helplessness without a elite neighbourhoods or in modest powerful lobby being created for a locations; meant for farmers, labour or CSS.”4 (S. Yasmeen, 2004) peasants or for the white collared.”6 (K.G. Balkrishnan)

1 Kothari, D.S.. 1968. Education for National Development, New Delhi: Department of Education; Government of India. 2 Tilak, J.B.G. 2009. Household Expenditure and Implications for Redefining Poverty in India, Draft of Background Paper prepared for Expert Group for review of methodology for Estimation of Poverty, May 2009. Planning Commission ,New Delhi: 3 Parameshwaran, M.P. 1994. Manpower Planning in India. Social Scientist, Vol. 2, No. 10 (May, 1974), pp. 55-66 4 Summiya Yasmeen.2004, Swelling Support for Common Schools, indiatogether.org/2004/july/ed-kothari.htm 5 Public Report on Basic Education in India, 1999, PROBE Team with Centre for Development Economics, Oxford University Press, New Delhi 6 Convocation Address, Indira Gandhi National Open University, by Hon’ble Justice K.G. Balkrishnan, Chief Justice of India

CBGA Budget TRACK Vol. 7, Track 2 & 3, September 2010 17 Budget and Policy Tracking Navanita Sinha

It’s been more than a year since the United I. Last Three Parliamentory Sessions (General) for 2009-10, Supplementary Progressive Alliance (UPA) government Demands for Grants (Railways) for 2009- was voted back to power for a second (a) Winter Session 2009 10 and Supplementary Demands for consecutive term. When the UPA The Winter Session commenced on Grants for 2009-10 relating to the state of returned, many were optimistic that its November 19, 2009. The Lok Sabha (LS) Jharkhand and related Appropriation numerical strength in Parliament1 adjourned sine die on December 18, 2009 Bills, discussed and passed in LS. RS combined with the “absence of the and the Rajya Sabha (RS) on December considered and returned the restraining Left” would help it take strong 22, 2009. Appropriation Bills. policy decisions, earlier thwarted by its unyielding Left partners. In the Lok Sabha, six Short Duration Four bills replacing four ordinances: (i) discussions were held on the following Competition (Amendment) Ordinance, Unfortunately, UPA’s performance over issues: 2009; (ii) Jharkhand Contingency Fund the past year and half has not been up to ● Rise in prices of essential (Amendment) Ordinance, 2009; (iii) par, with its political opponents echoing commodities; Central Universities (Amendment) the sentiments of all-round failure to ● Natural calamities in the country; Ordinance, 2009; and (iv) Essential redress the woes of the aam aadmi. ● Impact of climate change; Commodities (Amendment and According to CPM General Secretary ● Report of Liberhan Ayodhya Validation) Ordinance, 2009 were Prakash Karat, “in every sphere of policy Commission of Inquiry and promulgated by the President and passed making – whether it concerns gas pricing, Memorandum of Action Taken by by both houses during the Winter Session. allocation of telecom spectrum, opening the government on the report laid on up of mining and minerals or retail trade the table of the house on November (b) Budget Session 2010 or allowing foreign educational 24, 2009; The Parliament met for the Budget institutions into the country – the imprint ● Indo-Sino relations with special Session between February 22 and May 7, of a government pandering to big business reference to recent occurrences; and 2010 with a one-month recess beginning and their foreign finance collaborators is ● Increase in Naxalite/ Maoist activities mid-March. Apart from budget visible.”2 in the country. discussions, the session witnessed debates on major issues such as price rise, phone This issue of Budget and Policy Tracking In the Rajya Sabha, four Short Duration also tapping and Naxalism. The Rajya examines significant policy related Discussions were held on the following Sabha debated and passed the Women’s developments at the Centre and issues: Reservation Bill. important legislations during the last three ● Situation arising out of threat to the sessions of Parliament – Winter Session internal security of the country; During the session, 37 bills (27 in LS and 2009, Budget Session 2010 and Monsoon ● Achievements and problems of 10 in RS) were introduced. LS passed 21 Session 2010. It will also draw attention Women’s Self-help Groups, to trends that dominated UPA-II’s first comprising mainly poor rural year and half in office and briefly discuss women; Parliament in Winter Session 2009 inflation, which has been the principal ● Rise in prices of essential economic concern for the past several commodities; and ● Lok Sabha worked for 84% of months. The article is broadly divided into ● Liberhan Commission Report. the scheduled hours four parts: During the session, 22 bills were ● Rajya Sabha worked for 81% I. Last Three Parliamentory Sessions introduced in the LS and one in RS. LS of the scheduled hours. passed 19 bills and RS passed 17. The II. The Union Budget 2010-11 total number of bills passed by both ● Average attendance in the Rajya III. Important Legislations – houses was 17. Sabha was 68 per cent. Opportunities Gained and Lost IV. Tracking Key Policy Related Financial business transacted consisted of ● Average attendance in the Lok Developments Supplementary Demands for Grants Sabha was 66 per cent.

Source: PRS Legislative Research Website

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and RS 16 bills. The total number of bills Demands for Grants of the remaining introduction, consideration and passing. passed by the two Houses during the ministries/departments that could not be The final tally at the end of the session session was 15. These included Tamil discussed were put to the vote of the house read 24 and 26 respectively. Although Nadu Legislative Councils Bill 2010, and voted in full on April 27, 2010. The over 50 hours were lost in protests and Employees State Insurance (Amendment) related Appropriation Bill was adjournments, both houses sat late on Bill, 2009 and National Green Tribunal introduced, considered and passed and several days to make up for the lost time. Bill, 2009. It is worthwhile to note that subsequently returned by RS. the critical process of legislative scrutiny is Some of the bills that were passed in this not being taken seriously as evident from During this period, RS discussed the session included, Personal Laws the inadequate discussion and unseemly working of the ministries of (i) Power; (ii) (Amendment) Bill, 2010, Foreign haste in introduction and passage of most Youth Affairs and Sports; (iii) Housing Contribution (Regulation) Bill, 2006, of the bills. and Urban Poverty Alleviation; (iv) National Commission for Minority Consumer Affairs, Food and Public Educational Institutions (Amendment) Bill, The session was mainly devoted to Distribution; and (v) Home Affairs. The 2009, Nalanda University Bill and transaction of financial business relating two houses also considered and passed/ Educational Tribunals Bill, 2010. Besides to the Railways and General Budgets for returned the Finance Bill, 2010. legislative bills, Members of Parliament also 2010-11, presented during the first part of engaged in discussions on various issues of the session. General discussions on the In the Lok Sabha, three Short Duration national importance such as inflation, Budgets were held in both houses while LS discussions were held on (i) price rise; (ii) flood and drought conditions, the also discussed and voted Demands for the Maoist attack on CRPF personnel in forthcoming Commonwealth Games, Grants on Account and Supplementary Dantewada district of Chhattisgarh; and Bhopal Gas Tragedy, protests in Kashmir, Demands for Grants relating to the (iii) the need to lay down specific atrocities against SC/ST and illegal mining. Railways and General Budgets. parameters for conducting Census 2011. Appropriation Bills relating to these In the Rajya Sabha, three Short Duration The major highlight of the session was the demands were introduced, considered and discussions were held on (i) price rise; (ii) passage of the Civil Nuclear Liability Bill passed by LS and subsequently returned the statement made by the Minister of and Salary and Allowances Bill, raising the by RS. Home Affairs on the Maoist attack on salary of MPs from Rs 16,000 to Rs CRPF personnel in Dantewada District of 50,000 in addition to increasing other During the second part of the Session, Chhattisgarh, and (iii) tapping of allowances. However another contentious Demands for Grants relating to the telephones of certain politicians. Bill, the Enemy Property (Amendment Railways Budget were discussed and voted and Validation) Bill, 2010 was deferred after which the related Appropriation Bill (c) Monsoon Session 2010 for the next session of Parliament. was passed by LS and returned by RS. The Parliament met for its monsoon Demands for Grants under the control of session between July 26, 2010 and August Another significant development was the the ministries of (i) External Affairs; (ii) 31, 2010. At the beginning of the session, tabling of the Direct Taxes Code Bill Rural Development; and (iii) Tribal the agenda for government bills included (DTC) aimed at replacing the Income Tax Affairs, were discussed and voted by LS. 36 bills for passing and 38 bills for Act, 1961 in the Lower House of Parliament on August 31, 2010. It was referred to the Select Committee of Parliament for scrutiny. Under the Direct Parliament in Budget Session 2010 Taxes Code Bill, 2010 the government has sought to raise the income tax exemption ● Average attendance in the Rajya Sabha was 78%and 79% in the Rajya Sabha limit from Rs.1.6 lakh to Rs.2 lakh. Tax during Budget Session 2009. Attendance was over 90% on the days that the rate of 30 per cent shall apply to income Finance Bill was debated and put to vote. exceeding INR 1 Million. While senior citizens (above 65 years) will enjoy a higher ● On 8 out of 32 days, the Lok Sabha met for less than an hour. The Rajya Sabha exemption of Rs.2.5 lakh, it waives the met for less than an hour on 9 days. preferential treatment to women in tax payment. On the other hand, Corporate Tax rate is proposed to be pegged at 30 ● Total productive time in the Lok Sabha was 138 hours - 66% of scheduled time, per cent while shedding away the surcharge while that in Rajya Sabha was 130 hours – 74% of scheduled time. and education cess tag. The rollout date has been advanced from April 1, 2011 to Source: PRS Legislative Research Website April 1, 2012.

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due to exemptions/incentives/deductions Parliament in Monsoon Session 2010 in the Central tax system has been estimated (by the Finance Ministry itself) Participation: In LS, 35% and in RS 28% of members did not participate in any to rise from Rs. 4.14 lakh crore in 2008- debates 09 to Rs. 5.02 lakh crore in 2009-10. In other words, a liberal estimate of the Private Members Bills: In LS 97% and in RS 96% of members did not put forward amount of additional tax revenue which any private members’ bill. could have been collected by the government in 2009-10, if all exemptions/ Attendance in Parliament: 41 MPs in LS and 24 in RS had an attendance of less than incentives/deductions (both direct and 50 %. In LS 195 lawmakers and in RS 98 had more than 90% attendance . indirect taxes) had been eliminated, stands at a staggering 8.1 percent of the GDP. LS passed 17 Bills, with average 2.0 hours spent per Bill. RS passed a total of 21 Bills and devoted an average of 2.3 hours per Bill. On the expenditure side, the Congress-led government seems to be growing Source: PRS Legislative Research Website complacent about its budgetary policies especially for the social sectors. While the budget did pay some attention to a few important sectors/issues like women and 3 rates of indirect taxes and duties are II. THE UNION BUDGET 2010-11 child development, minorities, expected to result in a revenue gain of When Finance Minister Pranab infrastructure, rural housing and technical around Rs. 46,500 crore. However, the Mukherjee presented the Union Budget, education, overall social sector allocations hike in duties on crude oil, petrol, and in expectations were high that it would be a recorded an insignificant increase (Table 1). policy statement of the government particular diesel, is ill-timed given the steep towards propelling not just faster growth rise in prices of food and non-food articles Social Sector Allocations: but also “inclusive growth”. While the over the last few months. (i) Education: Total public spending on government’s focus on attaining a double- Education as a share of GDP stood digit GDP growth rate was evident, what Despite acknowledging that India’s tax at 3.23 percent (2009-10), which is was clearly missing was the sense of urgency base is low compared to other countries, nowhere near the promised 6 percent needed to address the deep-rooted mainly due to a plethora of exemptions/ level. The Centre’s total allocation for problems in the social sectors and those deductions in the Central government tax Education in 2010-11 (BE) stands at confronting the disadvantaged sections. system, the Finance Minister did not 0.71 percent of GDP, which is slightly Some major developments relating to the introduce any corrective measures. The better than the 0.64 percent of GDP social sectors, important economic sectors total magnitude of tax revenue foregone recorded for 2009-10 (RE). and interventions for the disadvantaged sections are discussed in this section. Table 1: Priority for Social Services in the Union Budget Highlights of Union Budget 2010-11 With an indication of the economy Year Expenditure on Social Services Expenditure on Social reviving fast, the government should have as % of Total Disbursements of Services as % of taken an expansionary fiscal stance but it the Union Govt. GDP chose to revert to the path of fiscal 2004-05 6.3 1.0 conservatism, albeit gradually, with Union 2005-06 7.9 1.1 Budget 2010-11. 2006-07 7.8 1.1 In the sphere of mobilisation of resources 2007-08 8.9 1.3 by the Centre, certain specific concerns 2008-09 10.4 1.6 emerged. The tax-GDP ratio shows a small 2009-10 RE 10.1 1.7 increase from 10.3 percent in 2009-10 (RE) to 10.8 percent in 2010-11 (BE). In 2010-11 BE 10.4 1.7 this context, the impetus in the budget Note: The Annual Financial Statement in the Union Budget does not provide any break-up (for towards further reduction of direct tax General Services, Economic Services and Social Services) for the Grants-in-Aid component. Hence, rates (mainly in personal income tax) the figures for expenditure on Social Services (used in table) do not include Grants-in-Aid raises a serious concern. This proposal is provided by the Union Ministries to States and Union Territories in the Social Services. estimated to result in a revenue loss of Rs. Source: Complied from Annual Financial Statement, Union Budget, various years. 26,000 crore. The proposed increases in

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(ii) Health & Family Welfare: The proportion of Total Plan allocation pursuance of neo-liberal economic policies allocation for Health & Family of the government (excluding Central has also invited flak on the grounds that Welfare shows a negligible increase assistances to state and UT plans) opening up of trade has exposed farmers from 0.35 percent of GDP in 2009- registered a small increase in 2010- to volatile international prices. 10 (RE) to 0.36 percent of GDP in 11(BE). Plan allocation earmarked Furthermore, factors such as poor 2010-11 (BE), which is far short of for SCs increased from 6.25 percent distribution, growing concentration in the the NCMP target of raising total to 7.19 percent in 2010-11 (BE) while market and inadequate public public spending on health sector to 2 that for STs saw an increase from involvement are crucial in allowing food to 3 percent of GDP. 3.67 percent in 2009-10 (RE) to 4.43 prices to rise in such an appalling manner. (iii) Water Supply and Sanitation: percent in 2010-11 (BE). These along with many other factors have Allocations in this sector have gone (x) Minorities: There has been an resulted in widening the gap between farm- up marginally from Rs. 8269 crore in increase of 49 percent in the total gate and wholesale prices, as well as that 2009-10 (RE) to Rs. 9522 crore in budgetary allocation for the Ministry between wholesale and retail prices. Simply 2010-11 (BE). of Minority Affairs in Union Budget put this means that farmers who are the direct producers, do not reap the benefit (iv) Rural Development: The allocation 2010-11 over the previous year’s allocation; it has gone up from Rs. of rising prices, which consumers in both for the Mahatma Gandhi National rural and urban areas are forced to pay.5 Rural Employment Guarantee Scheme 1756.5 crore in 2009-10 (BE) to Rs. 2615.37 crore in 2010-11 (BE). (MGNREGS) has been increased by Given the intensity of the problem, the only 2.5 percent while that for government will have to take certain severe Pradhan Mantri Gram Sadak Yojana Inflation corrective measures, not just in food (PMGSY) has remained stagnant. While massive tax concessions were production but also food distribution, (v) Agriculture and Allied Activities: As provided to the corporate sector and critical to which would be strengthening a proportion of the total Union affluent sections of society, the common the public food distribution system and Budget for 2010-11 (BE) and the people continued to be plagued by one of adopting medium-term policies to improve GDP, allocation for Agriculture & the most severe inflationary episodes in domestic food supply, political and Allied Activities accounts for 9.45 India. Food price inflation rate touched economic commentators have pointed percent and 1.56 percent respectively. 20 percent in December 2009. Although out. Despite high inflation in food the latest inflation figures suggests a articles, allocation for food subsidy cooling, following a period that saw the III. IMPORTANT LEGISLATIONS – has been reduced from Rs. 56,002 headline rate surge from negative to OPPORTUNITIES GAINED AND LOST crore in 2009-10 (RE) to Rs. 55,578 double digits within just six months (from The last three sessions witnessed at times crore in 2010-11 (BE). minus 0.17 percent in August 2009 to spirited, at times volatile discussions on a (vi) Climate Change: A National Clean 10.06 percent in February 2010), the range of legislative proposals including Energy Fund (NCEF) has been uncomfortably high levels of food prices Right to Education (RTE), Higher constituted with the corpus coming remains a major concern. Latest Education Reform Bill, Nuclear Liability from levying clean energy cess on Wholesale Price Index (WPI ) data shows Bill and Women’s Reservation Bill indigenously produced and imported the index for ‘food articles’ to have risen (WRB). While the notification on RTE coal at Rs. 50 per tonne. by 16.87 percent year-on-year in April, led became a high point for the government, by pulses (30.42 percent) and milk (21.95 it’s failure to push through the long- (vii)Women: There has been a 50 percent percent). In fact, current data indicates a pending WRB and delay in introducing hike in the plan budget of the rising trend in inflation of non-food items the proposed legislations on food security Ministry for Women and Child as well with the return of pricing power in as well and on health and water elicited Development. However, the total many manufactured goods.4 severe criticism from various quarters. This allocation for women (as reported in section runs through some of the the Gender Budgeting Statement) The government’s inability to control food significant legislative developments in the accounts for just 6.1 percent of the inflation, despite large buffer stocks has Winter, Budget and Monsoon sessions. total Union Budget. come in for sharp criticism. For some, its (viii) Children: Priority for Children in efforts are not just grossly inadequate but The Education sector witnessed “radical the Union Budget shows an reflective of a misguided belief that food reforms” over the past six months with the insignificant increase – from 3.7 price inflation of some intensity is efforts to enact RTE and to liberalise the percent in 2009-10 (RE) to 4.1 inevitable and has little to do with policy. entry of foreign universities. The Right of percent in 2010-11 (BE) They argue that on the contrary, the Children to Free and Compulsory (ix) Dalits and Adivasis: Union Budget increase in food prices can be attributed Education Act, 2009 came into effect on outlays for SCSP and TSP as a to major failures in State policy. Its April 1, 2010 and was hailed by many as a

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milestone in the education sector. It makes The Foreign University Bill, which will Status of the Women’s Reservation Bill elementary education an entitlement for provide foreign universities an open field In a significant move, the government children in the 6-14 age group and is to set up their institutions in the country, introduced the Women’s Reservation Bill slated to directly benefit nearly one crore was also introduced in Parliament. The to give 33 per cent reservation to women children not going to school at present. bill purportedly paves the way for quality in Parliament and state legislatures. The The Act passed by Parliament last year foreign universities to come to India and bill was passed by RS but the euphoria seeks to achieve 10 broad objectives such solve the problem of quality of higher over its passage was cut short at the second as free and compulsory education in the 6- education. As per the draft bill, these hurdle. Even the monsoon session came to 14 age group, quality education, focus on universities will be completely outside the a close without the bill, which has been in social responsibility like reservation in ambit of any governmental control with limbo for the last 14 years, being moved in private schools, obligation of teachers and respect to finances, curriculum and the lower house. The ‘in abeyance’ status de-bureaucratisation of admissions. administrative matters. of WRB is being ascribed to alleged Private educational institutions are clandestine dealings between the ruling required to reserve 25 percent seats for For many however, these reforms reveal a party and opponents of the women’s bill children from weaker sections, in dangerous trend- that of relentless (Samajwadi Party, Rashtriya Janata Dal, accordance with the Act. Some of the key centralisation and commercialisation of Bahujan Samaj Party and Janata Dal- issues have been taken up in greater detail the education sector. United) to bail out the former in the wake in this Special Issue of Budget Track. of the voting on cut motions in the Budget Another bill that has drawn flak is the Session. The 13th Finance Commission has Nuclear Liability Bill. Introduced in the provided Rs 25,000 crore to the states for Budget Session, the Civil Liability for Its passage in RS during the budget session implementation of RTE. The Centre and Nuclear Damage Bill got a go-ahead from itself was quite volatile. A bitterly divided states have agreed to share the funds Parliament in the monsoon session after all-party meeting saw traditional required for its implementation in the months of hectic negotiations, paving the antagonists such as SP, RJD and JD-U ratio of 55:45. way for overseas companies to set up holding firm to their stand that a separate nuclear reactors in the country. quota for backward class women must be Amid the hype surrounding the RTE worked into the bill. The Trinamool notification, some civil society activists and The bill, which is a part of the Indo-US Congress pushed for sub-quotas for academics have found loopholes in the Nuclear Agreement, is seen as an attempt Muslim women while BSP sought the same legislation. “Beginning with its definition by the government to essentially free for dalits. of a ‘child’ (not less than six years and not multinational plant vendors from all more than 14 years), to not owning up to liability even for accidents that result from In a country where ‘reservation’ appears the economic responsibility of the Union a design flaw. The draft bill indemnified to be the guiding principle of a certain government while fleshing out the provi- the supplier of a nuclear plant and capped kind of party politics, the reactions to a sions.”6 Further, it strengthens the multi- the liability of the operator in the event of piece of legislation like the WRB are not tiered and unequal education structure as an accident. It offered almost no financial surprising. Women’s rights activists opposed to a Common School System. disincentive for unsafe behaviour on the attribute this belligerence to a simple fact: Another extremely disconcerting feature is part of operators and suppliers of nuclear “While power sharing at the panchayat the lack of clarity on financing of RTE plants. Critics pointed out that such and nagarpalika level can be tolerated Act. It is being argued that so long as these inducements to both suppliers and because these bodies implement laws and ambivalences and gaps remain, RTE operators in effect transferred the risks for policies, it takes on another dimension cannot be seen as adhering “to the spirit of a nuclear mishap onto the people at large.8 when it comes to Parliament and the right to education”7 assemblies where laws and policies are The legislation was cleared after the made.” 9 This is because WRB seeks not The ongoing reforms also extend to the government removed the word ‘intent’ only to enable more women to get elected higher education system. The Ministry of along with 17 other amendments to the to Parliament but to fundamentally alter Human Resource Development has bill which had been a major source of the manner in which the system has proposed forming a National contention between the government and a functioned thus far. Commission for Higher Education and united Left and right opposition. The National Food Security Act Research as the ultimate authority for government further agreed to consider The draft National Food Security (NFS) higher education in the country. However, amendments suggested by a parliamentary legislation readied for cabinet’s approval is the fact that the Commission will remain panel to the original proposed atomic law much narrower in scope than what was outside the scope of accountability to the tripling the liability cap on an operator in initially envisaged and, hence, stops short Parliament has made the proposal case of an accident to Rs.1,500 crore from of assuring an entitlement as had been extremely controversial. the earlier Rs.500 crore. previously pledged. The final draft Bill

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which has been approved by the Questions around the nature and quality “Governments have an immediate duty to empowered Group of Ministers (eGoM) of delivery mechanism have also been make health a priority for the most restricts coverage only to poor citizens, raised. Although the draft legislation of vulnerable and marginalised persons and confines it to the supply of 25kg of wheat NFSA raises the issue of broader systemic groups.” This has led to fears of a targeted and rice, does not lock in the government reform in the PDS, there are concerns approach to health, though for the most to a fixed issue price and excludes about the government’s commitment to part in the bill, the stress is on provision of destitutes from the purview of other do so. National Advisory Council member universal healthcare. Another major welfare schemes covered by the proposed N C Saxena, who headed the committee concern is its silence on the issue of food security Bill10. set up by the Rural Development Ministry preventing public health services from to fix rural poverty levels, notes: “The being privatised. The draft “should assert As a result, it is unlike what has been government is not receptive to any ideas to the role of public sector health services. provided under the Mahatma Gandhi reform the PDS. It doesn’t want anything But it does not talk about strengthening of National Rural Employment Guarantee in the NFSA that makes it responsible for the services,”13 Scheme (MGNREGS), which guarantees implementation…The issue of revamping employment to one member of every rural the PDS has not got the attention that it Assam Public Health Bill household and does not restrict it to those deserves despite the fact that this will be While the Centre failed to set in motion living below the poverty line (BPL). crucial to operationalising the the National Health Bill, the Assam entitlement.”12 government pushed through the Assam Public Health Bill 2010. It guarantees While the eGoM decision is considered to people the right to appropriate medicines be final, it requires a formal nod by the National Health Bill and to effective measures of prevention, cabinet through its inclusion in the India lags behind its neighbours so far as treatment and control of epidemic and agenda. Thereafter, it will be put in the health indicators are concerned while its endemic diseases. It also empowers the public domain for discussion. It is not yet public spending on health remains state health department to fix confirmed when the draft would be put abysmally low. Despite repeated promises accountability and responsibility in cases up for approval. to address these concerns and create a credible public health system, the of recurring outbreaks of viral, proposed National Health Bill has been communicable and water-borne diseases. What is obvious, however, is the definite lying in cold storage with the chapter on The bill makes it mandatory for all new disconnect between the executive arm of financial memorandum yet to be development projects in the state to pass a the UPA and the political leadership on completed. Health Impact Assessment (HIA) test. the very meaning of what constitutes a With this, Assam has become the first state food security bill. Considering that nearly The National Health Bill 2009, as it now in the country to make Right to Health a 40 percent of the rural population is stands, seeks to provide health, health reality for its people. malnourished and an almost equal equity and justice for all Indians. The core percentage is poor by the standard obligations include ensuring equitable IV. TRACKING KEY POLICY RELATED measure of consumption poverty, there distribution of and access to 1) essential DEVELOPMENTS are three major issues with regard to health facilities, goods, drugs, services and During the last three sessions of NFSA that remain unresolved. These are: conditions to all, especially to vulnerable Parliament, many developments impacting who should get it, how much and at what and marginalised groups; 2) minimum on public policy have taken place. Some price.11 essential food that is nutritionally significant policy related developments adequate and safe, to ensure freedom include the submission of the report of the While many activist groups as well as the from hunger and malnutrition to 13th Finance Commission and Left parties have repeatedly highlighted the everyone; 3) adequate supply of safe water; commencement of Census 2011. need for universal entitlement, the 4) sanitation and sewerage; and 5) basic government seems to be more inclined to housing with dignity. One very important Recommendations of 13th Finance limit it to below poverty line (BPL) obligation is to devise, adopt, implement Commission families. Accruing from this is the current and periodically review the health policies, A five-member expert team, headed by dilemma over poverty estimates. The strategies and plans of action on the basis economist Vijay L Kelkar submitted the government’s proposal of giving 25 kg of of epidemiological, sociological and report of the 13th Finance Commission foodgrains at Rs. 3 per kg to poor families environmental evidence, addressing the to the government on December 30, has also created a furore. It is being argued health concerns of the whole population. 2009, covering all aspects of its mandate. that the question of reducing the dole However, health experts feel, the bill in its The government has accepted most of its does not arise given since under the public present form could legitimise denial of key recommendations. distribution system (PDS) system BPL health services to the poor. It is ambiguous Key Recommendations families are entitled to 35 kg per family at on providing universal and free ● Sharing of central taxes: It’s the FC Rs. 2 a kg. healthcare. As per the draft: award period spanning from April 1,

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2010 to March 31, 2015, the share of and restrict the space available to the after acknowledging that some concessions states in the net proceeds of central states for determining their fiscal on revenue deficit targets need to be taxes should be fixed at 32 percent priorities. provided for recessionary trends, it went against the 12th FC prescribed on to recommend that states having transfer of 30.5 percent, an increase (2) Reverting to fiscal conservatism path: attained zero revenue deficit/revenue of 1.5 percent. Post Devolution (pertaining to the surplus in 2007-08 should return to that ● Non-plan revenue deficit grant: The situation after devolution of shareable status by 2011-12. In this regard, it has 13th FC evaluated revenues and central taxes to all states) Non-Plan failed to provide relief to states with expenditures of the states for 2010-15 Revenue Deficit Grant prescribed for only revenue deficits through the Non-plan and projected the deficit for each eight states A separate path for fiscal Revenue Deficit Grant even for the initial state after factoring in its amount of consolidation for Kerala, Punjab and years of the award period, a practice that share in central taxes. It West Bengal – states with large fiscal was even adopted by the 12th FC in its recommended a grant of Rs. 51,800 imbalances – chalked out. Economists drive towards implementation of FRBM crore to meet this deficit for eight point out that such exogenous ceiling on Act. The 13th FC has provided NPRD states and favoured a performance borrowing by states is arbitrary and could grants only to Special Category states. incentive grant of Rs 1500 crore for have adverse implications. three Special Category states of (4) Incremental approach to issue of Assam, Sikkim and Uttarakhand that Fiscal consolidation of the states through states’ share in central taxes: The 13th FC have graduated out of non-plan reduction of deficits in their budgets does has increased the share of states in total revenue deficit. not necessarily imply improvement in fiscal shareable pool of central taxes from 30.5 capacity. Such reductions, especially by percent to 32 percent. This, however, is ● Goods and Services Tax (GST): A relatively poorer states, are reported to merely an incremental approach towards model GST structure has been put in have been achieved at the cost of public addressing a core issue in federal fiscal place, the features of which include expenditure on development. Hence, the affairs. Most states have consistently single rate of 12 percent of goods and 13th FC’s recommendations could create demanded a higher share (of up to 50 service tax, against the extant pressure on states to prune their percent) since the 80th Amendment and cascading level of over 20 percent for development spending (particularly observers feel it is justified because of their the Centre and states combined, zero because a large part of budgetary spending expenditure requirements (which have rating of exports, inclusion of various in the social sectors is reported as Revenue been growing rapidly) and limited scope indirect taxes at the Central and state Expenditure). for stepping up own tax revenues. levels in the GST ambit and major rationalisation of the exemption (3) Roadmap for fiscal consolidation and (5) Recommendations on GST: One of structure. A grant of Rs 50,000 crore Non-Plan Revenue Deficit Grant: The the most important indirect tax reforms for has been made for 13th FC has drawn up a revised roadmap being proposed by the Government of implementation. for fiscal consolidation for both the India is introduction of GST. A tax on ● Fiscal consolidation: The FC has Centre and the states keeping in mind goods and services, it will essentially be a drawn a roadmap for fiscal deficit better implementation of the Fiscal tax only on value addition at each stage. It reduction and spelt out a combined Responsibility and Budget Management would eliminate all the cascading effects debt target of 68 percent of GDP (FRBM) Act. Its basic objective is to take including the burden of Central Value against 75 percent in 2009-10. It account of the combined macro-fiscal Added Tax (CENVAT) and service tax. stresses on achieving and maintaining position of the Central and state Also, major Central and state taxes will get revenue account in balance and governments and to set targets with subsumed into GST, which will reduce containing the fiscal deficit to 3 reference to the overall position. In this multiplicity of taxes and bring down percent of Gross State Domestic regard, the Commission has identified two compliance costs. With GST, the burden Product (GSDP) by 2014-15. key macro-economic parameters – of Central Sales Tax (CST) will also be combined fiscal deficit and combined phased out. GST is not simply VAT plus Observations on FC debt to GDP ratio. service tax but a major improvement over Recommendations14 the previous system of VAT and disjointed Non-Plan Revenue Deficit Grant services tax. (1) The recommendations are unlikely (NPRD): The enthusiasm over attainment to help the states step up their public of zero revenue deficit at the Centre and in Ideally, the implementation of GST would provisioning for development: The the states has led the FC to ignore that 11 entail one common market, one law, one recommendations do not deviate from the of 17 major states have incurred common assessment procedure and one path of fiscal conservatism laid out by the significantly high revenue deficit as per form to file returns. It would also merit 11th and 12th FCs but go a step further 2009-10 Budget Estimates. However, even adoption of a common IT platform.

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Operationalising of GST depends on the back at a time when the issues of Food programmes by making them more states’ complying with the GST model Security Bill, Communal Violence Bill, the inclusive of communities, at present cut off frame. The potential gains of proposed national law on health and from such benefits due to lack of implementing the new indirect tax water and the controversial amendments identification. structure would also hinge on states to RTI Act are being debated. The agreeing to surrender the taxes they levy government has also come under fire over NPR, the database of residents of the and items they exempt. An ideal GST issues like taxes and food and fuel price country, would facilitate better targeting would be based on a single rate but a rise. In this context, the reconstituted of benefits and services under government common market would not be viable in NAC is expected to keep a watch on schemes and programmes; improve the event of differing taxes and rates. existing flagship schemes such as NREGA planning and help strengthen national There is also the issue of suitable and to scrutinise other proposed social security, according to the government. redeployment of existing tax personnel. sector legislations While many see it as a marvel, there is On one hand, the proposed GST is being some scepticism, especially with regard to seen as pro-poor and progressive and on Census 2011 data collection, which involves biometric the other it continues to face hurdles in Billed as the largest census ever attempted identification with fingerprints of all terms of design, operations and in the world, Census 2011 took off on citizens. infrastructure across the states. April 1 this year. Details of a billion-plus population on diverse subjects such as The proposed population register has also Constitution of National Advisory demography, literacy, fertility and been debunked on the grounds that “it is set Council mortality will be provided and primary amidst NATGRID (National Intelligence Another significant development has been data at village, town and ward levels will be Grid), the UID (the Unique Identification Sonia Gandhi’s appointment as collected during this exercise, undertaken project), and a still-hazy-but-waiting-in-the- Chairperson of National Advisory Council by the Office of the Registrar General and wings DNA Bank. Each of these have been (NAC) for the second time, after her Census Commissioner in the Ministry of given spurs by the Union Home Ministry, resigned from the post in March 2006 over Home Affairs. Some unique features of with security as the logic for surveillance and the contentious issue of office of profit. the census include collection of tracking by the state and its agencies,” law NAC was first set up after the UPA came to information on the usage of mobile and poverty experts say.17 power as an interface with civil society on phone, availability of tap water, and usage implementation of its National Common of banking services. The issue is further complicated with the Minimum Programme (NCMP). During its exercise being carried out under the first stint, it played a major role in pushing Information and biometrics collected in Citizenship Act of 1955 and Citizenship the government to enact two important the house-to-house survey will be fed into (Registration of Citizens and Issue of pieces of legislation – Right to Information the Unique Identification (UID) National Identity Cards) Rules 2003 (RTI) Act and NREGA. Other issues on database16 being created by Unique instead of the Census Act of 1948. The which NAC provided inputs included the Identity Authority of India (UIDAI) for point of contention is that while there is legislations against domestic violence, Forest issuance of UID numbers. The cleaned an express provision regarding Rights Act and changes in laws database, along with UID Number would ‘confidentiality’ in the Census Act, there is discriminatory towards women. form the National Population Register no such provision in the Citizenship Act (NPR). The core task for UIDAI is to and Rules. Instead, there is an explicit On paper, NAC appears to be the perfect assign a UID number to each resident in objective of making the information interface between civil society and the country and to eliminate the need for available to the UID authority for government but serious doubts have been multiple identification mechanisms. It instance, bringing into question the raised about “the effectiveness of a body would form the basis for a positive and possible breach of citizens’ privacy as well that had excellent intentions but no accurate identification of citizens around as abuse of power by the holder of the institutional or political legitimacy.”15 which governance platforms and services information. Questions were also raised on the role of can be built. civil society organisations in policy In a response of sorts, UIDAI chairman formulation through an institution of the According to the government, there are Nandan Nilekani said the Authority would state that functioned parallel to the many benefits from such a mechanism for support and endorse any action towards legislature and the executive. instant identity verification. The need to formulating an umbrella legislation on prove identity only once will bring down protecting the data. He said this would help The revival of NAC (as also its timing) has transaction costs for the poor. A clear address privacy and security concerns apart led to further speculation about the intent identity number would also transform the from the safeguards being built into the of the government. It has been brought delivery mechanism of social welfare UID Act itself. 18

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Census 2011 has also generated a volatile Political commentators aver that the added fuel to the fire. “Reservations have debate on whether caste data should be debate has ended up confusing two policy become a mental reflex blocking any captured by it. Those opposing the caste decisions with radically different thinking about alternative strategies for enumeration argue that it would push the justifications and consequences: one, a full affirmative action. An obsession with caste country back to the practice of the pre- census of all Hindu castes and the other, a as a category tends to obscure other axes Independence colonial era. They point out more limited exercise of enumerating of inequality that operate independent of that even the Constitution labels census Other Backward Classes (OBCs). and within castes.”21 enumeration of caste as a tool of ‘divide According to them, census collectors have and rule.’ Further, India is home to a always asked whether a person belongs to In a nutshell, the first year’s performance “humungous number of sub-castes with the category of Scheduled Caste (SC), of UPA-II has been rather disappointing. nomenclature variations across regions: Scheduled Tribe (ST) or Others. If this The economic policies of the current aggregating them across villages will be too proposal is carried through, it would regime have apparently failed to address complex for the census to handle.”19 A mean adding another classification to the the concerns of the common people or similar stance was taken by Union Home existing ones - OBC. “A full caste census aam aadmi, as they continue to suffer the Minister P. Chidambaram who said census involves questions of principles, but an pangs of inflation, unemployment and enumerators lacked the sociological OBC enumeration follows from a simple inadequate infrastructure. In addition, the sensitivity to record and classify the administrative logic – a modern state failure to push for critical legislation in population on the basis of castes and sub- cannot recognise a social group in its laws social sectors (barring Education) has castes. and policies and then refuse to count raised serious doubts about its stated them.”20 commitment about to enlarge the notion Those supporting the proposal argue that of entitlements for those at the bottom of by collecting data on the caste-inequality Unfortunately, the politics of social justice the pile as well as to broaden the space for link, the census could become a promoter in India is often a cover for blatant casteist governmental responsibility. If the of progressive social change, chiefly by politics and the full-throttle approach of government is committed to its promises, it strengthening the case for compensatory parties like SP, JD-U and BSP towards would have to go in for some serious discrimination policies. those opposing the caste census has only course correction without further delay.

1 The Congress increased its numbers in the Lok Sabha from 145 (in 2004) to 207 (in 2009). 2 UPA-II policies have spawned crony capitalism. (2010, May 20). The Hindu. Retrieved May 15, 2010, from http://beta.thehindu.com/news/national/article433911.ece?css=print 3 This section is taken from CBGA’s analysis on the Union Budget 2010-11. For a detailed assessment, see CBGA (2010). Union Budget 2010-11: Which Way Now?. New Delhi. Available at www.cbgaindia.org. 4 Inflation rate eases to 9.59% in April. (2010, May 14). The Hindu Business Line. Retrieved on May 24, 2010 from http://www.thehindubusinessline.com/2010/05/15/stories/ 2010051553310400.htm 5 Chandrasekhar, CP. (2010, March 13-26). Danger of inflation. Frontline, 27(6). Retrieved on April 30, 2010 from http://www.flonnet.com/fl2706/stories/ 20100326270601600.htm 6 Jha, Praveen and Parvati, Pooja. (2010). Right to Education Act 2009: Critical Gaps and Challenges. Economic and Political Weekly, 15(13), 20-23. 7 Ibid. 8 See Raju, S and Ramana, MV. (2010). The Other Side of Nuclear Liability. Economic and Political Weekly, 15(16), 48-54. 9 Sharma, Kalpana. (2010, March 20). Thank you, Mulayam Singh Yadav. The Hindu. Retrieved on May 23, 2010 from http://beta.thehindu.com/opinion/columns/ Kalpana_Sharma/article257980.ece?css=print 10 Anil Padmanabhan and Liz Mathew, Final draft Bill denies food security as a right, September 1, 2010 from http://www.livemint.com/2010/04/02003500/Final-draft-Bill- denies-food- s.html 11 UPA-II leadership seen struggling (2010, May 19). The Economic Times. Retrieved on May 30, 2010 from http://economictimes.indiatimes.com/articleshow/5946915.cms 12 The government wants to scuttle the PDS. (2010, April 16). The Times of India. Retrieved on May 25, 2010 from http://timesofindia.indiatimes.com/articleshow/5812971.cms 13 Colin Gonsalvez as quoted in Verma, Savita (2010, February). ‘Health Bill May Deny the Poor Free Care’. Retrieved on February 22, 2010 from http://indiatoday.intoday.in/site/ Story/85102/India/Health+bill+may+deny+the+poor+free+care.html 14 This section is taken from CBGA’s briefing paper on the Report of the Thirteenth Finance Commission, available at www.cbgaindia.org 15 ‘The National Advisory Council Experiment’ [Editorial]. (2008, April 12). Economic & Political Weekly, 7. 16 The database will be created with addition of biometric information such as photograph, 10 fingerprints and probably Iris information for all persons aged 15 years and above. 17 Ramanathan, Usha. (2010, April 5). ‘Implications of registering, tracking, profiling’. The Hindu. Retrieved on April 27, 2010 from http://www.thehindu.com/2010/04/05/ stories/ 2010040554240800.htm 18 Jebaraj, Priscilla. (2010, May 20). ‘UIDAI will support law to protect data’. The Hindu. Retrieved on May 17, 2010 from http://www.thehindu.com/2010/05/20/stories/ 2010052064102200.htm 19 Ibid. 20 Yadav, Yogendra. (2010, May 17). ‘Caste in Doubt’. The Indian Express. Retrieved on May 20, 2010 from http://www.indianexpress.com/news/caste-in-doubt/619760/1. 21 Ibid.

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