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Even the economically prosperous states such as Maharashtra and Rajasthan are reporting either closure or merger of primary schools for want of funds.
Updated : Mar 20, 2018, 02:22 AM IST
Union finance minister Arun Jaitley's assessment of an upbeat economy, notwithstanding, a year after the NDA government assumed office heavy cuts in the social sector expenditure is pinching the common man on ground. In Rajasthan's Bharatpur district, the village dispensaries no more distribute free medicine.In Bihar and Jharkhand, a large number of villagers who worked underMahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)scheme have not been paid wages for over a year now. Even the economically prosperous states such as Maharashtra and Rajasthan are reporting either closure or merger of primary schools for want of funds.
The Centre's assistance to the states for social sector schemes has comedown from a budgeted Rs 3.56 lakh crore in last financial year to Rs2.20 lakh crore in the current financial year (2015-16). Defending such cuts, Jaitley reminded that they have changed the funding pattern to the states and increased tax revenues from 32% to 42%,giving them freedom to choose schemes and programmes. Effectively, while the central government gave Rs 1.42 lakh crore additionally to the states from the divisible tax pool, it has cut back Rs 1.16 lakh under central government schemes.
Describing claims of enhancement of state share an arithmetic jugglery, Congress leader Jyotiraditya Scindia explained that strings were tied up with the increasing share of revenue. "Earlier, Centre was releasing 32%untied funds, where states were free to use them and another 10% we retied up that included funding to the centrally sponsored schemes. Now they have made it 42% untied funds. So there is no increase. Only thing is that Centre has abdicated its responsibility to monitor or fund social schemes in the states," he told dna.
The states will now have to use their funds to keep their social sector schemes going the way it is. While states will have additional fund sat their disposal out of the tax pool share, the Centre will have no say in how the states spend it.
Against its promise to increase public expenditure on health from 1.2 % of gross domestic product (GDP) to 2.5 %, there are cuts in health ministry-related fund transfers to states from Rs 24,203 crore to Rs 18,000 crore. "The current government has adopted a disastrous go slow policy for increased and effectively using the health budget,"says lawyer Menghaney, working on public health sector schemes. Dr Abhay Shukla of Jan Swasthya Abhiyan believes that in such a situation, private hospitals will flourish, since most of the population will continue to experience inadequate public health service.
More worrisome is the cuts in the education sector, where BJP had also promised to increase allocations up to 6% of GDP and to implement Right to Education (RTE) Act. The overall education budget is down from Rs 82,771 crore to Rs. 69,074 crore. Already closure or merger of schools are being reported form states to adopt to low spending.Among states were from closure or merger of schools are being reported include Rajasthan (17,129), Maharashtra (8,500), Uttarakhand(1,200) and Odishla (5,000).
Jaitley on Friday also admitted that higher education was getting costly in the country. He said the Centre was devising a model, where from one institution of excellence in each state will be funded fully to at least allow meritorious students a hassle-free education.
Further,for providing maternity benefits, the Indira Gandhi Matritva Sahyog Yojana (IGMSY) scheme was launched as a pilot in 2011 in 53 districts with budgetary support of Rs 396 crore this year. The Centre has now told states it will be expanded in a phased manner over three years"if funds are available". Only Rs 36 crore of additional funds have been made available for 2015-16. The programme would cost Rs 15,000 crore.
The government stopped funding for eight schemes worth Rs. 10,000 crore
1. Setting up 6,000 model schools,
2. National Mission on Food Processing
3. Backward Regions Grant Fund.
4. National e-Governance Plan,
5. Modernisation of Police Forces,
6. Rajiv Gandhi Panchayat Sashaktikaran Abhiyaan(RGPSA),
7. Scheme for Central Assistance to the States for developing export infrastructure,
8. Tourist Infrastructure.
Cuts in social sector
Rashtriya Krishi Vikas Yojna reduced by Rs 7,426.50 crore
Animal Husbandry and Dairy Vikas reduced by Rs 685 crore
Pradhan Mantri Krishi Sinchai Yojna reduced by Rs 8,156.22crore
Nationa lLivelihood Mission reduced by Rs 1,632.50crore
Integrated Child Development Scheme reduced by Rs 9,858 crore
Primary Education reduced by Rs 10,186 crore
Secondary Education reduced by Rs 1,422 crore
Higher Education Rs 1,479 crore
National Health Mission reduction Rs 3,650 crore
National AIDS and STD programme cut by Rs 392 crore
Ayushby Rs 64 crore
Allocation for Housing reduced Rs 4,376
Swach Bharat Abhiyaan, including drinking water and sanitation, reduction by Rs 9,025 crore
The Centre has also asked the states to bear a larger share of spending in 24 schemes, including the government's flagship Smart City Projects