Human Development 13 CHAPTER E conomic growth though important cannot be an end in itself. Higher standards of living as well as of development opportunities for all, stemming from the greater resources generated by economic growth, are the ultimate aim of development policy. This implies the need to bridge regional, social and economic disparities, as well as the empowerment of the poor and marginalized, especially women, to make the entire development process more inclusive. The draft Twelfth Five Year Plan's subtitle 'Faster, More Inclusive and Sustainable Growth', puts the growth debate in the right perspective. The government's targeted policies for the poor, with the prospect of fewer leakages, can help better translate outlays into outcomes. 13.2 The global economic and financial crisis which has persisted for the last five years has not only exposed the vulnerability of almost all the countries over the globe to external shocks, but also has lessons for development planning. Countries need to have inbuilt social safety nets for facing such eventualities, which affect the weak and vulnerable the most, and wipe out the fruits of growth for years. India with its focus on inclusive development and timely interventions has, however, been able to weather the crisis better than many other countries. 13.3 India is on the brink of a demographic revolution with the proportion of working-age population between 15 and 59 years likely to increase from approximately 58 per cent in 2001 to more than 64 per cent by 2021, adding approximately 63.5 million new entrants to the working age group between 2011 and 2016, the bulk of whom will be in the relatively younger age group of 20-35 years. Given that it is one of the youngest large nations in the world, human development assumes great economic significance for it as the demographic dividend can be reaped only if this young population is healthy, educated, and skilled (See chapter 2). The emphasis on human development also gains significance in the light of our major social indicators in the recent past being less encouraging than those http://indiabudget.nic.in of our neighbours like Bangladesh and Sri Lanka. Therefore policy planners in India have, over the years, engaged themselves in making more inclusive growth and development policies, focusing on human development. This approach has been reflected in the substantial enhancement in budgetary support for major social-sector programmes during 2012-13 like the Pradhan Mantri Gram Sadak Yojana (PMGSY), Backward Regions Grant Fund, Right to Education (RTE)-Sarv Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan, National Rural Health Mission (NRHM), and rural drinking water and sanitation schemes. HUMAN AND GENDER DEVELOPMENT: INTERNATIONAL COMPARISON 13.4 As per the latest available Human Development Report (HDR) 2011 published by the United Nations Development Programme (UNDP) (which estimates the human development index [HDI] in terms of three basic capabilities: to live a long and healthy life, to be educated and knowledgeable, and to enjoy a decent economic standard of living), the HDI for India was 0.547 in 2011 with an overall global ranking of 134 (out of 270 Economic Survey 2012-13 Table 13.1 : India’s Global Position in Human Development 2011 HDI Country Value Rank Average annual HDI growth rate (per cent) 199020002011 2011 GNI per GNI per capita capita (constant rank 2005 minus PPP $) HDI rank Nonincome HDI value GII Value Rank Norway 0.943 1 0.53 0.29 47,557 6 0.975 0.075 6 Australia 0.929 2 0.30 0.23 34,431 16 0.979 0.136 18 Brazil 0.718 84 0.86 0.69 10,162 -7 0.748 0.449 80 China 0.687 101 1.62 1.43 7476 -7 0.725 0.209 35 Sri Lanka 0.691 97 0.81 0.80 4943 12 0.768 0.419 74 Thailand 0.682 103 0.89 0.78 7694 -14 0.714 0.382 69 Philippines 0.644 112 0.58 0.62 3478 11 0.725 0.427 75 Egypt 0.644 113 1.24 0.88 5269 -6 0.686 NA NA Indonesia 0.617 124 1.19 1.17 3716 -2 0.674 0.505 100 South Africa 0.619 123 0.03 0.05 9469 -44 0.604 0.490 94 Vietnam 0.593 128 1.50 1.06 2805 8 0.662 0.305 48 India 0.547 134 1.38 1.56 3468 -10 0.568 0.617 129 Pakistan 0.504 145 1.12 1.33 2550 -7 0.526 0.573 115 0.5 146 1.69 1.55 1529 11 0.566 0.550 112 0.66 0.66 10,082 0.683 0.492 Bangladesh World 0.682 Source : World HDR 2011. Note : NA: Not Available, Data refer to 2011 or the most recent year available; PPP is purchasing power parity. 187 countries) compared to 119 (out of 169 countries) in HDR 2010. The growth rate in average annual HDI of India between 2000-11 is among the highest, a finding also corroborated by the India Human Development Report (IHDR) 2011 brought out by the Institute of Applied Manpower Research and the Planning Commission. According to the IHDR, HDI between 1999-2000 and 2007-8 has increased by 21 per cent, with an improvement of over 28 per cent in education being the main driver. India is ranked 129 in terms of the gender inequality index(GII) which captures the loss in achievement due to gender disparities in the areas of reproductive health, empowerment, and labour force participation, with values ranging from 0 (perfect equality) to 1 (total inequality). A lot more needs to be done as our GII is higher than the global average of 0.492. Even neighbours like Pakistan (115), Bangladesh (112), and Sri Lanka (74), have performed better in terms of this indicator (Table 13.1). The gross national income (GNI) per capita ranking minus HDI ranking for India is -10 indicating that India is better ranked by GNI than by non-income HDI. As a corollary, India is worse off in its performance of non-income HDI value computed from life expectancy and education. http://indiabudget.nic.in INCLUSIVE DEVELOPMENT 13.5 This section and the one that follows examine the major dimensions of inclusive development like poverty alleviation, employment generation, health, education, women's empowerment, and social welfare besides reviewing the progress of important government programmes in these sectors. 13.6 Inclusive development includes social inclusion along with financial inclusion and in most cases the socially excluded are also financially excluded. Many segments of the population like landless agricultural labourers, marginal farmers, scheduled castes (SCs), scheduled tribes (STs), and other backward classes (OBCs) continue to suffer social and financial exclusion. The government's policies are directed towards bringing these marginalized sections of the society into the mainstream as is also reflected in social-sector expenditure by the government. Trends in India's social-sector expenditure 13.7 Central support for social programmes has continued to expand in various forms although most 271 Human Development Table 13.2 : Central Government Expenditure (Plan and non-Plan) on Social Services and Development ITEM 2007-8 Actual 1. Social service a. Education,sports,youth affairs 4.02 b. Health & family welfare 2.05 c. Water supply, housing, etc. 2.02 d. Information & broadcasting 0.22 e.Welfare of SCs/STs, and OBCs 0.36 f. Labour & employment 0.27 g. Social welfare & nutrition 0.82 h. North-eastern areas 0.00 i. Other social services 1.29 Total 11.06 2. Rural development 2.80 3. Pradhan Mantri Gram Sadak Yojana (PMGSY) 0.91 4. Social services, rural development and PMGSY 14.77 5. Total central government expenditure 100.00 (as per cent of total expenditure) 2008-9 2009-10 2010-11 2011-12 2012-13 Actual Actual Actual RE BE 4.27 2.09 2.54 0.23 0.41 0.28 1.15 0.00 1.55 12.52 4.56 0.88 17.95 100.00 4.15 2.00 2.39 0.20 0.43 0.22 0.87 0.02 1.67 11.94 3.77 1.11 16.82 100.00 4.56 1.98 2.35 0.21 0.58 0.24 1.01 0.02 1.66 12.61 3.51 1.87 18.00 100.00 4.38 1.90 1.93 0.19 0.64 0.23 1.19 1.65 0.21 12.31 2.97 1.52 16.79 100.00 4.52 2.06 2.08 0.17 0.61 0.28 1.25 1.88 0.19 13.04 2.74 1.61 17.39 100.00 Source : Budget Documents. Note : RE-Revised Estimates; BE- Budget Estimates. Table 13.3 : Trends in Social Services Expenditure by General Government (Central and State Governments combined) (` crore) Items 2007-8 2008-9 2009-10 2010-11 2011-12 RE 2012-13 BE 1315283 1599677 1852119 2145145 2518825 2835873 294583 129366 63226 101991 380628 162008 74273 144347 446382 197070 88054 161258 529398 244156 100576 184666 617939 291378 115711 210850 710759 331524 136296 242939 26.37 5.91 28.41 6.76 As percentage to GDP 28.59 27.52 6.89 6.79 28.07 6.89 28.28 7.09 of which: i) Education ii) Health iii) Others 2.59 1.27 2.05 2.88 1.32 2.56 3.25 1.29 2.35 3.31 1.36 2.42 Expenditure on social services 22.4 As percentage to total expenditure 23.8 24.1 24.7 24.5 25.1 10.1 4.6 9.0 11.6 4.6 8.4 11.7 4.8 8.6 As percentage to social services expenditure 42.6 44.1 46.1 47.2 19.5 19.7 19.0 18.7 37.9 36.1 34.9 34.1 46.6 19.2 34.2 Total expenditure Expenditure on social services of which: i) Education ii) Health iii) Others Total expenditure Expenditure on social services of which: i) Education ii) Health iii) Others 9.8 4.8 7.8 i) Education ii) Health iii) Others 43.9 21.5 34.6 3.04 1.36 2.49 10.6 4.8 8.7 3.13 1.29 2.37 11.4 4.7 8.6 Source : RBI as obtained from Budget Documents of union and state governments. BE: Budget Estimates; RE: Revised Estimate. http://indiabudget.nic.in 272 Economic Survey 2012-13 social-sector subjects fall within the purview of the states. Central government expenditure on social services and rural development (Plan and non-Plan) has increased from 14.77 per cent in 2007-8 to 17.39 per cent in 2012-13 (Budget Estimates [BE]) with an all-time high of 18 per cent in 2010-11 due to the combined effect of higher expenditure under the Pradhan Mantri Gram Sadak Yojana (PMGSY) and education (Table 13.2). 13.8 Expenditure on social services by the general government (centre and states combined) has also shown increase in recent years reflecting the higher priority given to this sector (Table 13.3). Expenditure on social services as a proportion of total expenditure increased from 22.4 per cent in 2007-8 to 24.7 per cent in 2010-11 and further to 25 .1 per cent in 201213 (BE). Among social services, the share of expenditure on education has increased from 43.9 per cent in 2007-8 to 46.6 per cent in 2012-13 (BE), while that on health has fallen from 21.5 per cent to 19.2 per cent. As a proportion of the gross domestic product (GDP), expenditure on social services increased from 5.91 per cent in 2007-8 to 6.79 per cent in 2010-11 and further to 7.09 per cent in 201213(BE). While expenditure on education as a proportion of GDP has increased from 2.59 per cent in 2007-8 to 3.31 per cent in 2012-13 (BE), that on health has increased from 1.27 per cent in 2007-8 to 1.36 per cent in 2012-13 (BE). Table 13.4 : Expenditure on Health in Developed and Emerging Economies (as percentage of GDP) Country Expenditure on health (2010 or latest available year) Public Private Total Australia 6.2 2.9 9.1 Norway 8.1 1.4 9.4 United Kingdom 8.0 1.6 9.6 United States 8.5 9.1 17.6 Mexico 2.9 3.3 6.2 Indonesia 1.3 1.3 2.6 Brazil 4.2 4.8 9.0 Russian Federation 3.2 1.9 5.1 India 1.2 2.9 4.1 China 2.7 2.4 5.1 South Africa 3.9 5.0 8.9 Source: OECD Factbook 2013: Environmental and Social Statistics. http://indiabudget.nic.in Economic, 13.9 However, India's expenditure on health as a per cent of GDP is very low compared to many other emerging and developed countries. Unlike most countries, in India private-sector expenditure on health as a percentage of GDP is higher than public expenditure and was more than double in 2010. Despite this the total expenditure on health as a percentage of GDP is much lower than in many other developed and emerging countries and the lowest among BRICS (Brazil, Russia, India, China and South Africa) countries (Table13.4). POVERTY 13.10 The Planning Commission estimates poverty using data from the large sample surveys on household consumer expenditure carried out by the National Sample Survey Office (NSSO) every five years. It defines poverty line on the basis of monthly per capita consumption expenditure (MPCE). The methodology for estimation of poverty followed by the Planning Commission has been based on the recommendations made by experts in the field from time to time. The Expert Group headed by Professor Suresh D. Tendulkar which submitted its report in December 2009 has computed the poverty lines at all India level as MPCE of ` 447 for rural areas and ` 579 for urban areas in 2004-5. After 2004-5, this survey has been conducted in 2009-10. The Planning Commission has updated the poverty lines and poverty ratios for the year 2009-10 as per the recommendations of the Tendulkar Committee using NSS 66th round (2009-10) data from the Household Consumer Expenditure Survey. It has estimated the poverty lines at all India level as an MPCE of ` 673 for rural areas and ` 860 for urban areas in 2009-10. Based on these cut-offs, the percentage of people living below the poverty line in the country has declined from 37.2 per cent in 2004-5 to 29.8 per cent in 2009-10. Even in absolute terms, the number of poor people has fallen by 52.4 million during this period. Of this, 48.1 million are rural poor and 4.3 million are urban poor. Thus poverty has declined on an average by 1.5 percentage points per year between 2004-5 and 2009-10. The annual average rate of decline during the period 2004-5 to 2009-10 is twice the rate of decline during the period 1993-4 to 2004-5 (Table13.5). 13.11 Infant mortality rate (IMR) which was 58 per thousand in the year 2005 has fallen to 44 in the year 2011. The number of rural households provided toilet facilities annually have increased from 6.21 lakh in 2002-3 to 88 lakh in 2011-12. Similarly MPCE (at 273 Human Development Table 13.5 : Number and Percentage of Poor* Year Number of poor (million) Poverty ratio (%) Rural Urban Total Rural Urban Total 1993-4 328.6 74.5 403.7 50.1 31.8 45.3 2004-5 326.3 80.8 407.1 41.8 25.7 37.2 2009-10 278.2 76.5 354.7 33.8 20.9 29.8 Annual Average Decline : 1993-4 to 2004-5 (percentage points per annum) 0.75 0.55 0.74 Annual Average Decline : 2004-5 to 2009-10 (percentage points per annum) 1.60 0.96 1.48 Source : Planning Commission, * Estimated by Tendulkar Method. constant prices) has also increased from ` 558.78 and ` 1052.36 during 2004-5 to ` 707.24 and ` 1359.75 in 2011-12 in rural and urban areas respectively. The improvement in these social indicators is also a reflection of fall in deprivation. The Planning Commission has also constituted an Expert Group under the Chairmanship of Dr C. Rangarajan to 'Review the Methodology for Measurement of Poverty' in June 2012. (Also see inter-state comparison of poverty in Table 13.8). INEQUALITY 13.12 HDR measures inequality in terms of two indicators. The first indicator is the income Gini coefficient which measures the deviation of distribution of income (or consumption) among the individuals within a country from a perfectly equal distribution. For India, the income Gini coefficient was 36.8 in 2010-11. In this respect, inequality in India is lower than many other developing countries e.g. South Africa (57.8), Brazil (53.9), Thailand (53.6), Turkey (40.8), China (41.5), Sri Lanka (40.3), Malaysia (46.2), Vietnam (37.6), as well as countries like USA (40.8), Hong Kong (43.4), Argentina (45.8), Israel (39.2), Bulgaria (45.3) etc., which are otherwise ranked very high in terms of human development index. The second indicator is the quintile income ratio, which is a measure of average income of the richest 20 per cent of the population to that of poorest 20 per cent. The quintile income ratio for India was 5.6 in 2010-11. Countries like Australia (7.0), the USA (8.5), New Zealand (6.8), Singapore (9.8), the UK (7.8), Argentina (12.3), Mexico (14.4), Malaysia (11.4), Philippines (9.0), Vietnam (6.2) had higher ratios. This implies that the inequality between the top and bottom quintiles in India was lower than a large number of countries. 13.13 To estimate the rural-urban gap, the monthly per capita expenditure (MPCE) defined first at household level to assign a value that indicates the level of living to each individual or household is used. According to the provisional findings of the 68th round (2011-12) of the NSS, average MPCE (Uniform Reference Period [URP] based) is `1281.45 and ` 2401.68 respectively for rural and urban India indicating rural-urban income disparities. However, monthly per capita rural consumption rose by 18 per cent in real terms in 2011-12 over 2009-10, while monthly per capita urban consumption rose by only 13.3 per cent. Thus the rate of increase in the MPCE of rural areas is higher than that of urban areas, Table 13.6 : Average MPCE (Uniform Reference Period) (in ` ) NSS Round Year Constant prices (2004-5) Current prices (2011-12) Rural Urban Rural Urban 68th Round July 2011-June 2012 707.24 1359.75 1281.45 2401.68 66 Round July 2009-June 2010 599.06 1200.01 927.70 1785.81 61 Round July 2004-June 2005 558.78 1052.36 558.78 1052.36 th st Source: NSSO Press release 1 August 2012 (The results of 68th round of NSS data are provisional). http://indiabudget.nic.in 274 Economic Survey 2012-13 indicating a bridging of the rural-urban gap (Table 13.6). Out of the MPCE, the share of food as per 66th round NSS data (2009-10) is ` 600 (57 per cent) and ` 881(44 per cent) for rural and urban India respectively, showing a higher share for food in rural compared to urban India. EMPLOYMENT 13.14 The last decade, i.e. 1999-2000 to 2009-10, witnessed an employment growth of 1.6 per cent per annum based on usual principal and subsidiary status (UPSS). Employment growth in second half of the decade was relatively modest. This as per NSSO survey, 2009-10 was largely on account of a lower labour force participation rate (LFPR), across all ages in 2009-10 vis-à-vis 2004-5. Labour force participation rate, which reflects the persons who express their willingness to work declined from 430 per thousand persons in 2004-5 to 400 per thousand persons in 2009-10. The LFPR declined particularly for rural females. The growth of those in labour force declined possibly on account of greater number of persons opting for education/skill development. Studies using NSS data show that there has been a steady increase in the ratio of students to total population from 20.5 per cent in 1993-4 to 24.3 per cent in 2004-5 and further to 26.6 per cent in 200910 (Jayan Jose Thomas, EPW, December 22, 2012) and this largely explains the modest growth in employment in second half of 2000-10. The students to population ratio increased faster in rural areas and more so for females. It may, however, be mentioned that the unemployment rate, according to UPSS criteria, in fact declined between 2004-5 and 2009-10, both in rural and urban areas, implying that relatively larger proportions of persons who were willing to work, were actually employed. 13.15 An increased intensity of employment is also reflected by an overall increased availability of employment to workers based on current daily status (CDS). The CAGR of employment on CDS basis for the period 2004-5 to 2009-10 is 1.11 per cent per annum which is significantly higher than the growth of employment in UPSS terms. One development of interest is the loss in female employment in rural areas using both UPSS and CDS methods and loss in female employment in urban areas on UPSS basis. One of the reasons for this is a significant number of women (137 million in 2009-10) opted not to work to http://indiabudget.nic.in continue education. But total employment (rural and urban combined of males and females combined) is positive on both methods. Unemployment 13.16 The unemployment rate increased at a slow pace on UPSS basis and at a relatively higher pace on CDS basis from 1993-4 to 2004-5. However, in 2009-10 there was a fall in the unemployment rate which was relatively more on CDS basis (See Figure 13.1 and Table 13.8). Despite negligible employment growth, the unemployment rate (CDS method) fell from 8.2 per cent in 2004-5 to 6.6 per cent in 200910. The decline in CDS unemployment rate implies a decline in unemployed persondays. The total number of unemployed persondays declined by 6.5 million persons, from around 34.5 million in 2004-5 to 28 million in 2009-10. 13.17 The fall in unemployment despite marginal growth in employment in 2009-10 could be due to the demographic dividend, as an increasing proportion of the young population opts for education rather than participating in the labour market. This is reflected in the rise in growth in enrolment of students in higher education from 49.25 lakh in 1990-91 to 169.75 lakh in 2010-11. Similarly gross enrolment ratio in class I-VIII has risen from 93.54 in 2004-5 to 104.3 in 2010-11. Enactment of the Right to Education and programmes like the Sarva Shiksha Abhiyan could also have contributed to this. Employment in the Organized Sector 13.18 Employment growth in the organized sector, public and private combined, has increased by 1.0 per cent in 2011, as against 1.9 per cent in 2010 (Table 13.7). The annual growth rate of employment in the private sector in 2011 was 5.6 per cent whereas that in the public sector was negative. The share of women in organized-sector employment was around 20.5 per cent during 2009-11 and has remained nearly constant in recent years. Employment Situation in 2011-12 as Per Quarterly Survey Reports 13.19 The Fifteenth Quarterly Quick Employment Survey by the Labour Bureau to assess the impact of the economic slowdown on employment in India indicates that the upward trend in employment since July 2009 has been maintained (Box 13.1). Human Development 275 Source : Second Annual Report to the People on Employment 2011 (Ministry of Labour & Employment). Table 13.7 : Overall Employment in Public and Private Sectors Sector Employment (in lakh) as on 31 March Percentage change 2010/2009 Percentage change 2011/2010 2009 2010 2011 Public 177.95 178.62 175.48 0.4 -1.8 Private 103.77 108.46 114.52 4.5 5.6 Total 281.72 287.08 289.99 1.9 1.0 55.80 58.59 59.54 Women Source: Annual Employment Review, 2011 (Directorate General of Employment and Training). Note: 1) Excludes Sikkim, Arunachal Pradesh, Dadra & Nagar Haveli, and Lakshadweep. 2) Industry-wise break-up may not tally with public sector, private sector and grand total due to noninclusion of data as per National Industrial Classification (NIC) -1998, in respect of J&K, Manipur, and Daman & Diu in 2011. Box 13.1 : Fifteenth Quarterly Survey Report on Effect of Economic Slowdown on Employment in India April to June 2012 The results for selected sectors, i.e. textiles including apparel, leather, metals, automobiles, gems and jewellery, transport, information technology (IT) / business process outsourcing (BPO) and handloom/powerloom are as follows: Overall employment in June, 2012 over June, 2011 has increased by 6.94 lakh, with the highest increase recorded in IT/BPO (4.44 lakh) sector followed by 1.70 lakh in Textiles including Apparels, 0.45 lakh in Transport, 0.26 lakh in Metals, 0.19 lakh in Gems and Jewellery and 0.11 lakh in Automobiles sectors during the period. On the other hand, employment in handloom/powerloom and leather sectors has marginally declined during this period.  In export oriented units, employment at the overall level has increased by 5.81 lakh whereas in the non-exporting units, it has increased by 1.10 lakh during the period June, 2012 over June, 2011.  During the quarter March to June 2012, employment increased in respect of only Textiles including Apparels followed by IT/BPO and Gems & Jewellery. There was no growth in employment in the Leather, Transport and Handloom/Powerloom sectors, while sectors like Metals and Automobiles registered negative growth. Overall employment has increased by 0.73 lakh during this quarter.  The results of the15th quarterly survey reveal that there has been a sustained and consecutive increase in employment in the sectors covered at overall level during the last eleven quarters with a total addition of 30.73 lakh employment during this recovery period. Source : Labour Bureau (Ministry of Labour & Employment). http://indiabudget.nic.in 276 Economic Survey 2012-13 Table 13.8 : Socio-Economic Profiles & Inter-State comparison of some Major States of India S. No. Socio-economic Indicators/Items 1 Population Related Census 2011 (Provisional) * Percentage Decadal Growth of Population (2001-11) Sex-ratio (No. of Females per 1000 Males) 2 3 4 5 6 7 8 9 Andhra Pradesh Assam Bihar Gujarat 11.10 992 16.93 954 25.07 916 19.17 918 Growth Related at constant prices 2004-5 (as on 14 August 2012) # GSDP Growth 2011-12 GSDP Growth 2005-6 to 2011-12 Growth in Per Capita Income 2011-12 6.72 8.90 5.75 8.42 6.05 7.24 16.71 10.17 15.44 8.20 9.98 8.65^ Poverty Headcount Ratio (per cent)*** 2009-10 (Rural) 2009-10 (Urban) 2009-10(Total) 2004-5 (Rural) 2004-5 (Urban) 2004-5 (Total) 22.8 17.7 21.1 32.3 23.4 29.9 39.9 26.1 37.9 36.4 21.8 34.4 55.3 39.4 53.5 55.7 43.7 54.4 26.7 17.9 23.0 39.1 20.1 31.8 Rual-Urban Disparity 2009-10## Average MPCE MMRP (Rural) (`) Per cent Share of Food (Rural) Average MPCEMMRP (Urban)(`) Per cent Share of Food (Urban) 1234 58.1 2238 44.8 1003 64.4 1755 52.9 780 64.7 1238 52.9 1110 57.7 1909 46.2 12 31 39 52 20 73 8 18 Health Related Male (Life expectancy at birth 2006-10)$ Female (Life expectancy at birth 2006-10)$ Infant Mortality Rates(per 1000 live births) 2011* Birth Rate (per 1000) 2011 * Death Rate(per 1000) 2011* 63.5 68.2 43 17.5 7.5 61.0 63.2 55 22.8 8.0 65.5 66.2 44 27.7 6.7 64.9 69.0 41 21.3 6.7 Education Related 2010-11 $$ GER (6-13 years) Pupil-Teacher Ratio (Primary/ Jr.Basic School) Pupil-Teacher Ratio (Middle/Sr. Basic School) 92.0 31 25 84.0 28 21 102.9 76 51 107.2 NA 35 Financial Inclusion (In per cent) Decadal Growth Rate of Bank Branches (&) Households availing Banking Services in 2011* 35.4 53.0 16.5 44.1 14.4 44.4 25.3 57.9 1183 548 612 437 58 26 38 38 57.79 249013 10.08 24.87 143770 5.82 Unemployment Rates 2009-10 (per 1000) according to usual status (adjusted) ## Rural Urban Key Social-sector Programmes No.of 24x7 PHCs, Additional PHCs, CHCs & other sub-districts facilities under NRHM $ Average persondays per Household under Mahatma Gandhi NREGA 2011-12 @ Percentage Share of Women in Employment under MGNREGA 2011-12 Indira Awas Yojana (IAY) Houses constructed during 2011-12(Nos.) @ Percentage share of total houses constructed during 2011-12 under IAY Source: * *** $$ ## Office of Registrar General of India(RGI); Planning Commission; $ M/O H & FW; M/O HRD; # CSO; NSS(66th round); NA Not Available. MMRP Modified mixed reference period @ DMU/MPR of M/O RD; (&) Study on Financial Inclusion by Justice K S Hegde Institute; ^ Growth rate in per capita income of Gujarat for 2010-11 is repeated. http://indiabudget.nic.in 28.82 46.54 469885 111999 19.01 4.53 Haryana Himachal KarnatPradesh aka Kerala Madhya MaharaPradesh shtra Odisha Punjab Rajasthan Human Development 277 Tamil Uttar Nadu Pradesh West Bengal All India 19.90 877 12.81 974 15.67 968 4.86 1,084 20.30 930 15.99 925 13.97 978 13.73 893 21.44 926 15.60 995 20.09 908 13.93 947 17.64 940 7.88 9.39 6.18 7.59 8.29 5.76 7.52 8.37 6.69 7.80 8.31 7.13 11.98 8.77 10.48 8.54 9.97 8.73 7.18 8.52 4.64 5.68 7.11 4.24 5.41 7.78 3.72 7.37 9.68 6.72 6.04 7.04 4.17 6.55 6.94 5.67 6.48 8.34 5.16 18.6 23.0 20.1 24.8 22.4 24.1 9.1 12.6 9.5 25.0 4.6 22.9 26.1 19.6 23.6 37.5 25.9 33.4 12.0 12.1 12.0 20.2 18.4 19.6 42.0 22.9 36.7 53.6 35.1 48.6 29.5 18.3 24.5 47.9 25.6 38.2 39.2 25.9 37.0 60.8 37.6 57.2 14.6 18.1 15.9 22.1 18.7 20.9 26.4 19.9 24.8 35.8 29.7 34.4 21.2 12.8 17.1 37.5 19.7 29.4 39.4 31.7 37.7 42.7 34.1 40.9 28.8 22.0 26.7 38.2 24.4 34.2 33.8 20.9 29.8 41.8 25.7 37.2 1510 54.0 2321 43.1 1536 NA 2654 NA 1020 56.5 2053 42.3 1835 45.9 2413 40.2 903 55.8 1666 41.7 1153 54.0 2437 41.0 818 61.9 1548 48.4 1649 48.2 2109 44.3 1179 54.8 1663 48.0 1160 54.7 1948 45.0 899 57.9 1574 46.3 952 63.5 1965 46.2 1054 57.0 1984 44.4 18 25 16 49 5 27 75 73 7 29 6 32 30 42 26 48 4 22 15 32 10 29 19 40 16 34 67.0 69.5 44 21.8 6.5 67.7 72.4 38 16.5 6.7 64.9 69.7 35 18.8 7.1 71.5 76.9 12 15.2 7.0 61.1 63.8 59 26.9 8.2 67.9 71.9 25 16.7 6.3 62.2 63.9 57 20.1 8.5 67.4 71.6 30 16.2 6.8 64.7 68.3 52 26.2 6.7 67.1 70.9 22 15.9 7.4 61.8 63.7 57 27.8 7.9 67.4 71.0 32 16.3 6.2 64.6 67.7 44 21.8 7.1 90.5 51 38 111.0 15 14 99.3 17 27 96.2 23 25 122.6 38 39 100.0 29 32 104.8 33 26 103.1 26 15 99.3 46 26 112.0 27 32 109.5 79 69 90.1 45 49 104.3 43 33 59.5 68.1 29.2 89.1 28.5 61.1 30.6 74.2 21.2 46.6 28.1 68.9 27.9 45.0 39.8 65.2 25.5 68.0 31.3 52.5 26.9 72.0 18.4 48.8 28.8 58.7 407 156 1332 660 651 645 394 407 1500 1844 903 596 13835 39 53 42 45 43 50 33 26 47 48 36 27 43 59.48 45.71 6019 26965 0.24 1.09 92.76 54499 2.21 42.48 45.95 98447 141479 3.98 5.72 38.60 141398 5.72 36.44 17282 0.70 http://indiabudget.nic.in 43.17 69.20 16622 125642 0.67 5.08 73.36 16.98 91631 307012 3.71 12.42 32.46 47.98 186224 2471421 7.54 100.00 278 Economic Survey 2012-13 SOCIO-ECONOMIC PROFILE OF STATES AND INTER-STATE COMPARISONS Human Development: comparisons with Odisha's situation improving considerably in 2009-10. Lowest poverty is in Himachal Pradesh (9.5 per cent) followed by Kerala (12 per cent). Inter-state 13.20 Narrowing inter-state and inter-regional disparities is also one of the objectives of inclusive development. Inter-state comparisons of socioeconomic development of selected major states based on available indicators from different sources show some interesting results (Table 13.8). Rural-Urban Disparity:  Population Related:   Bihar has the highest decadal (2001-11) growth rate of population (25.07 per cent), while Kerala has the lowest rate (4.86 per cent). Some big states like Gujarat, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh also have high decadal growth of population. Unemployment:  In 2011, Kerala has the highest sex ratio with 1084 females per 1000 males, followed by Tamil Nadu (995), while Haryana is at the bottom (877). Interestingly, the sex-ratios in some of the developed states like Gujarat and Maharashtra are also low at 918 and 925 respectively. Growth Related:   The best performers in terms of growth during 2011-12 are Bihar (16.71 per cent) followed by Madhya Pradesh and Maharashtra. The growth of these states is much above the all India average. The worst performers are Rajasthan (5.41 per cent) followed by Punjab and Uttar Pradesh. States with the highest growth rate for the period 2005-6 to 2011-12 are Bihar (10.17 per cent) followed by Gujarat and Maharashtra. In terms of growth in per capita income, the best performer is Bihar (15.44 per cent) followed by Madhya Pradesh and Maharashtra due to high growth in gross state domestic product (GSDP) in 2011-12 and despite their high decadal growth in population. Per capita income growth is the lowest in Rajasthan (3.72 per cent), followed by Uttar Pradesh, Punjab, and Odisha which are all below the all India per capita income growth. The poverty estimates indicate that the highest poverty headcount ratio (HCR) exists in Bihar at 53.5 per cent as against the national average of 29.8 per cent. In 2009-10 compared to 2004-5, Bihar has displaced Odisha as the poorest state, http://indiabudget.nic.in As per usual status(adjusted) NSS 66th round 2009-10, the unemployment rate (per 1000) among the major states is the lowest in Gujarat(18) and highest in Kerala(73) and Bihar(73) in urban areas and the lowest in Rajasthan (4) and again highest in Kerala (75) in rural areas. The low unemployment rate in rural areas in Rajasthan may partly be due to high absorption of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) funds in the state. Kerala, which has performed well in terms of most indicators, performs less well in terms of unemployment (both rural and urban). This may be due to the higher level of education in Kerala resulting in people not opting for manual jobs as observed by some studies. Health:  Poverty:  Bihar has the lowest MPCE both in rural and urban areas at ` 780 (with 65 per cent food share) and `1238 (with 53 per cent food share) respectively. In comparison, Kerala has the highest in both rural and urban areas at `1835 (with 46 per cent food share) and ` 2413 (with 40 per cent food share) respectively. It is obvious that poorer states spend a greater proportion of income on food in total consumption expenditure. Kerala is the best performer in terms of life expectancy at birth for both males (71.5 years) and females (76.9 years) whereas Assam is the worst performer for both males (61 years) and females (63.2 years) during 2006-10. Infant mortality rate (IMR) in 2011 is the lowest in Kerala (12) and highest in Madhya Pradesh (59) against the national average of 44. Birth rate is lowest in Kerala (15.2) and highest in Uttar Pradesh (27.8) against the national average of 21.8. Death rate is lowest in West Bengal (6.2) and highest in Odisha (8.5) against the national average of 7.1. Education:  Madhya Pradesh has the highest gross enrolment ratio (GER) (6-13 years) in 2010-11 Human Development while Assam has the lowest. Pupil-teacher ratios in primary and middle/basic schools are the lowest in Himachal Pradesh and high in states like Uttar Pradesh and Bihar. Financial Inclusion:  In terms of decadal growth rate in bank branches, Haryana (59.5 per cent) has the highest growth and Bihar the lowest (14.4 per cent). Even a north-eastern state like Assam (16.5 per cent) is better placed than Bihar. Himachal Pradesh (89.1 per cent) has the highest percentage households availing of banking services while Assam (44.1 per cent) is the lowest followed by Bihar (44.4 per cent). Thus in terms of both these financial inclusion indicators, Bihar's performance is among the worst. Key Social-sector Programmes:   While there are state-wise indicators for some social-sector programmes, it is not possible to evaluate the performance of states based just on numbers. The average persondays per household under the MGNREGA in 2011-12 is the highest in Andhra Pradesh (58 days) followed by Himachal Pradesh (53 days) and lowest in Assam and Punjab (both 26 days) against the national average of 43 days. While the share of women's employment under the MGNREGA is the highest in Kerala (92.76 per cent) followed by Tamil Nadu (73.36 per cent), it is the lowest in Uttar Pradesh (16.98 per cent). While the stipulation of one-third women's participation has been maintained at the all India level, in states like Uttar Pradesh, Assam, and Bihar, it has been below the stipulated level. Progress in terms of 24x7 primary health centres (PHCs), additional PHCs, CHCs and other subdistricts health facilities under the NRHM is the highest in Tamil Nadu and lowest in Himachal Pradesh. Under the Indira Awas Yojana (IAY), Bihar has the highest share followed by Uttar Pradesh and Andhra Pradesh whereas Himachal Pradesh has the lowest. 13.21 Thus the inter-state comparison of performance of states based on different indicators shows that while some states have performed well in terms of growth indicators, they have performed poorly in terms of other indicators like poverty, ruralurban disparity, unemployment, education, health and financial inclusion. This calls for a rethink on the criteria used for devolution of funds to states http://indiabudget.nic.in 279 under Finance Commissions where criteria like income distance (12th Finance Commission) or fiscal capacity distance (13th Finance Commission) along with population are given high weightage and none of the human development indicators or financial inclusion indicators are used. Similarly the criteria used for awarding special category status to states (hilly and difficult terrain, low population density and/ or sizable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness, and non-viable nature of state finances) need to be revisited. POVERTY ALLEVIATION AND EMPLOYMENT GENERATION PROGRAMMES 13.22 The government is following a focused approach through various flagship schemes in the areas of poverty alleviation and employment generation to achieve inclusive development. As the last exercise conducted in 2002 to identify people living in poverty in rural areas had several limitations, the Dr. N. C. Saxena Committee was constituted to advise on the methodology for conducting a below poverty line (BPL) census. Consequently, a Socio Economic and Caste Census (SECC) has commenced in June 2011 through a door-to-door enumeration across the country, which after due deliberation will form the basis of targeting beneficiaries under various social-sector progarmmes (Box.13.2). 13.23 Some important poverty alleviation and employment generation programmes are as follows: Mahatma Gandhi NREGA: This flagship programme of the government aims at enhancing livelihood security of households in rural areas by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work with the stipulation of one-third participation of women. The MGNREGA provides wage employment while also focusing on strengthening natural resource management through works that address causes of chronic poverty like drought, deforestation, and soil erosion and thus encourage sustainable development. The MGNREGA is implemented in all districts with rural areas. Out of total a outlay of ` 33,000 crore approved for 201213, ` 25,894.03 crore has been released and the total fund available with the states including the opening balance of ` 10,009.09 crore is ` 41,788.74 280 Economic Survey 2012-13 Box 13.2 : Socio Economic and Caste Census (SECC) For the success of any targeted approach, the identification of the real beneficiaries is of paramount importance. In line with this approach the Dr. N. C. Saxena Committee was constituted to advise on the methodology for a BPL census in rural areas. Since June 2011, for the first time through a comprehensive door-to-door enumeration in both rural and urban India, authentic information is being made available on the socio-economic condition and educational status of various castes and sections through the SECC. This exercise will help better target government schemes to the right beneficiaries and ensure that all eligible beneficiaries are covered, while all ineligible beneficiaries are excluded. Households identified as highly deprived will have the highest inclusion priority under government welfare schemes. Use of the Aadhar number in various beneficiary-oriented social sector programmes will also check duplications. The SECC 2011 is being conducted simultaneously for rural and urban areas by the respective states, with technical and financial support from the Government of India. Enumeration is to be done with the help of about 6 lakh enumerators, who are accompanied by an equal number of technically qualified and computer literate Data Entry Operators (DEO) selected by the country's premier IT majors. The Ministry of Rural Development in association with the Ministry of Housing and Urban Poverty Alleviation, Office of the Registrar General of India (RGI) and the states have shouldered the responsibility of training the enumerators, supervisors, verifiers, and state officials engaged in the census operation. The SECC process ensured transparency and people's participation. Before finalizing the outcomes, the household data, except caste data, will be placed in the public domain for scrutiny and go through a two-stage appeal procedure in the 'claims and objections' stage. In rural areas, the Gram Sabha will also mandatorily scrutinize the data in a specially convened meeting. Enumeration under SECC 2011 has been completed in 2,339,926 enumeration blocks (EBs) comprising 94.26 per cent of the total EBs of all the states as on 31 December 2012. The government has constituted an Expert Committee under the chairpersonship of Professor Abhijit Sen, Member Planning Commission, to examine the SECC indicators and the data analysis and recommend appropriate methodologies for determining classes of beneficiaries for different rural development programmes. It will consult states, experts, and civil society organizations while arriving at these methodologies. Source : Ministry of Rural Development crore. Of this, ` 28,073.51 crore has been utilized (as on 31.01.2013) and about 4.39 crore households have been provided employment of 156.01 crore persondays of which 82.58 crore (53 per cent) were availed of by women, 34.56 crore (22 per cent) SCs, and 24.90 crore (16 per cent) by STs. At national level, with the average wage paid under the MGNREGA increasing from ` 65 in FY 2006-7 to ` 115 in FY 2011-12, the bargaining power of agricultural labour has increased as even private sector wages have increased as shown in many studies (See MGNREGA Sameeksha 2012). Improved economic outcomes, especially in watershed activities, and reduction in distress migration are its other achievements. Wages under the MGNREGA are indexed to the consumer price index for agricultural labour (CPI-AL). While some initiatives have been taken recently (Box.13.3), with better planning of project design, capacity building of panchayati raj institutions (PRIs), skill upgradation for enhanced employability, and reduction of transaction costs, gaps in implementation could be plugged to a greater extent and the assets so created could make a much larger contribution to increasing land productivity. National Rural Livelihood Mission (NRLM)- Aajeevika: The Swarnjayanti Gram Swarozgar Yojana (SGSY)/ NRLM a self-employment programme implemented http://indiabudget.nic.in since April 1999 aims at lifting the assisted rural poor families (swarozgaris) above the poverty line by providing them income-generating assets through a mix of bank credit and government subsidy. The rural poor are organized into self-help groups (SHGs) and their capacities built through training and skill development. The scheme is implemented with active involvement of PRIs. Since the inception of the SGSY 42.05 lakh SHGs have been formed, of which approximately 60 per cent are women SHGs. Total Box 13.3 : Major recent initiatives under the MGNREGA  The basket of permissible activities has been expanded to make it more meaningful.  Electronic fund management system (eFMS) in all states has been initiated in a phased manner to reduce delay in payment of wages.  Additional employment over and above 100 days per household in notified drought-affected talukas/ blocks is now permissible.  Provision has been made for seeding in Aadhaar into the MGNREGA Workers records to prevent leakage.  Convergence of the MGNREGA with the Total Sanitation Campaign (TSC) has been undertaken. Source : Ministry of Rural Development Human Development investment under the SGSY is ` 42,168.42 crore comprising ` 28,824.53 crore as credit and ` 13,343.89 crore as subsidy. Approximately 168.46 lakh swarozgaris have been assisted with bank credit and subsidy. The SGSY now restructured as the NRLM has been renamed Aajeevika and implemented in mission mode across the country since 2011. The main features of Aajeevika are: a) one woman member from each identified rural poor household to be brought under the SHG network, b) ensuring 50 per cent of the beneficiaries from SC/STs, 15 per cent from minorities, and 3 per cent persons with disability while keeping in view the ultimate target of 100 per cent coverage of BPL families, c) training for capacity building and skill development, d) ensuring revolving fund and capital subsidy, e) financial inclusion, f) provision of interest subsidy, g) backward and forward linkages, and h) promoting innovations. Swarna Jayanti Shahari Rozgar Yojana (SJSRY): The SJSRY launched on 1 December 1997 aims at providing gainful employment to the urban unemployed and underemployed, by encouraging them to set up self-employment ventures or creating wage employment opportunities. The scheme has been revamped w.e.f. April 2009. The annual budgetary provision for the SJSRY for the year 201213 is ` 838 crore and of this ` 516.77 crore had been released up to 7 February 2013. A total of 4,06,947 people have benefited from this scheme during 2012-13. SOCIAL PROTECTION PROGRAMMES 13.24 The coverage of social security schemes has been expanded to provide a minimum level of social protection to workers in the unorganized sector and ensure inclusive development. Such schemes include the following: Aam Admi Bima Yojana (AABY): The Janashree Bima Yojana (JBY) has now been merged with the AABY to provide better administration of life insurance cover to the economically backward sections of society. The scheme extends life and disability cover to persons between the ages of 18 and 59 years living below and marginally above the poverty line under 47 identified vocational/occupational groups, including 'rural landless households'. It provides insurance cover of a sum of ` 30,000 on natural death, ` 75,000 on death due to accident, ` 37,500 for partial permanent disability due to accident, and ` 75,000 on death or total permanent disability due to accident. The scheme also provides an add-on http://indiabudget.nic.in 281 benefit of scholarship of ` 100 per month per child paid on half-yearly basis to a maximum of two children per member studying in Classes 9 to 12 (including ITI courses). The total annual premium under the scheme is ` 200 per beneficiary of which 50 per cent is contributed from the Social Security Fund created by the central government and maintained by the Life Insurance Corporation of India (LIC). The balance 50 per cent is contributed by beneficiary/state governments/union territory (UT) administrations. The scheme is being implemented through the LIC. A total of 289.94 lakh lives under the JBY and 178.67 lakh lives under the AABY had been covered till December 2012. Rashtriya Swasthya Bima Yojana (RSBY): The scheme provides smart card-based cashless health insurance cover of ` 30,000 per family per annum on a family floater basis to BPL families in the unorganized sector with the premium shared on 75:25 basis by central and state governments. In case of states of the north-eastern region and Jammu and Kashmir, the premium is shared in the ratio of 90:10. The scheme provides for portability of smart card by splitting the card value for migrant workers. As on 31 December 2012, the scheme is being implemented in 27 states/ UTs with more than 3.34 crore smart cards issued. The Unorganized Workers Social Security Act 2008 and National Social Security Fund: The Act provides for constitution of a National Social Security Board and State Social Security Boards which will recommend social security schemes for unorganized workers. The National Social Security Board was constituted in August 2009. It has made some recommendations regarding extension of social security schemes to certain additional segments of unorganized workers. A National Social Security Fund with initial allocation of `1000 crore to support schemes for weavers, toddy tappers, rickshaw pullers, beedi workers, etc. has also been set up. Social Security Agreements (SSAs): SSA, a bilateral instrument to protect the interests of Indian professionals as well as self-employed Indians working in foreign countries, was initiated by signing an SSA between India and Belgium on 3 November 2006. So far India has signed 15 SSAs with Belgium, Germany, Switzerland, France, Luxembourg, Netherlands, Hungary, Denmark, Czech Republic, Republic of Korea, Norway, Finland, Canada, Sweden, and Japan. These SSAs facilitate mobility of professionals between two countries by exempting 282 Economic Survey 2012-13 them from double payment of social security contributions and enables them to enjoy the benefits of exportability and totalization. RURAL INFRASTRUCTURE AND DEVELOPMENT 13.25 Rural infrastructure and development programmes for achieving a higher degree of ruralurban integration and an even pattern of growth and opportunities for the poor and disadvantaged sections of society include the following: Bharat Nirman: Bharat Nirman, launched in 2005-6 by the government to provide basic amenities and infrastructure to rural India has six components: irrigation, roads, housing, water supply, electrification, and telecommunication connectivity. Indira Awas Yojana (IAY): The IAY is one of the six components of Bharat Nirman. During 2012-13, as against a physical target of 30.10 lakh houses, 25.35 lakh houses were sanctioned and 13.88 lakh had been constructed as on 31 December 2012. The unit assistance provided to rural households for construction of a dwelling unit under the IAY is being revised w.e.f. I April 2013 from ` 45,000 to ` 70,000 in plain areas and from ` 48,500 to ` 75,000 in hilly/ difficult areas/Integrated Action Plan (IAP) districts. Eighty-two left-wing extremism (LWE)-affected districts have been made eligible for a higher rate of unit assistance of ` 48,500 to ` 75,000 (w.e.f. 1.4.2013). Since the inception of this scheme till 31 December 2012, 301 lakh houses have been constructed. Under the Homestead Scheme, the unit assistance for purchase/acquisition of house sites for those rural BPL households who have neither land nor a house site will be enhanced from ` 10,000 to ` 20,000 w.e.f. 1 April 2013 to be shared by the centre and states in a 50:50 ratio. Since the inception of the Homestead Scheme, funds amounting to ` 347.46 crore have been released to the states for purchase of land and ` 1395.06 crore as incentive for additional houses for providing homestead sites. For effective monitoring of the IAY, MIS software 'Awaasoft' has been put in place. Pradhan Mantri Gram Sadak Yoyana (PMGSY): The PMGSY was launched in December 2000 as a fully funded centrally sponsored scheme with the objective of providing connectivity to the eligible unconnected habitations in the core network with a population of 500 persons and above (as per Census 2001) in plains areas and 250 persons and above in hill states, http://indiabudget.nic.in tribal areas, desert areas, and in the 82 selected tribal and backward districts under the IAP. Since inception, projects totalling about 4,74,528 km of road to connect 1,26,176 habitations have been cleared with an estimated cost of ` 1,42,946 crore including upgradation. A sum of ` 1,02,658 crore had been released to the states and about ` 96,939 crore spent by December 2012. A total of 3,63,652 km road length has been completed and new connectivity has been provided to over 89,382 habitations by the states. Work on a road length of about 1,07,739 km is in progress. Rural Drinking Water: About 73.91 per cent of rural habitations are fully covered under the provision of safe drinking water in rural areas as measured by habitations with the provision of at least 40 litres per capita per day (lpcd) of safe drinking water. The rest are either partially covered or have chemical contamination in drinking water sources. As against the target of 7,98,967 habitations to be covered during the Eleventh Five Year Plan, the coverage up to 31 March 2012 was 6,65,052 (83.23 per cent). The financial outlay for rural drinking water supply increased considerably under Bharat Nirman from ` 4,098 crore in 2005-6 to ` 10,500 crore in 2012-13. All uncovered habitations have been reported as being covered on 1 April 2012. Census 2011 reported that 84.2 per cent rural households as having improved drinking water sources with tap water, hand pumps, and covered wells constituting the major sources. Therefore ensuring safe drinking water for the remaining 15.8 per cent of rural households with unimproved sources and 22.1 per cent of rural households that have to fetch water from beyond 500 m is the major challenge. In the Twelfth Five Year Plan period, the focus is on increasing the service level from 40 lpcd to 55 lpcd and provision of drinking water through piped water supply schemes and household tap connections. Rural Sanitation—Total Sanitation Campaign (TSC) : According to Census 2011, only 32.7 per cent of rural households have latrine facilities. The TSC renamed the Nirmal Bharat Abhiyan (NBA) aims to transform rural India into 'Nirmal Bharat' by adopting a community saturation approach and achieve 100 per cent access to sanitation for all rural households by 2022. NBA projects have been sanctioned in 607 rural districts with a total outlay of ` 22,672 crore, with a central share of ` 14,888 crore. Allocation for the NBA has increased from ` 1500 crore in 2011-12 to ` 2500 crore in 2012-13. Under the NBA, the provision of incentives for individual household latrine Human Development units has been widened to cover all above poverty line (APL) households that belong to/are SCs, STs, small and marginal farmers, landless labourers with homesteads, physically challenged, and women headed along with all BPL households. Since 1999, over 8.97 crore toilets have been provided to rural households under the TSC/NBA. A total of 12.57 lakh school toilet units and 4.24 lakh Anganwadi toilets have also been constructed. With increasing budgetary allocations and focus on rural areas, the number of households being provided toilets annually has increased from 5.96 lakh in 2002-3 to 88 lakh in 2011-12. In the year 2012-13 (up to November 2012), more than 27 lakh toilets have been provided to rural households. A total of 28,002 gram panchayats, 181 intermediate panchayats, and 13 district panchayats have been awarded the Nirmal Gram Puruskar (NGP) in the last seven years. URBAN INFRASTRUCTURE, HOUSING, AND SANITATION 13.26 The central government has been assisting state governments by way of various centrally sponsored schemes through national financial institutions providing better urban infrastructure, housing, and sanitation in the country. Some of the initiatives in this area are as follows: Jawahar Lal Nehru Urabn Renewal Mission (JNNURM): The JNNURM, a flagship programme for urbanization launched in December 2005, provides substantial central financial assistance to cities for infrastructure, housing development, and capacity development. The two out of four components under the JNNURM devoted to shelter and basic service needs of the poor residing in urban areas are: Basic Services to the Urban Poor (BSUP) for 65 select cities and the Integrated Housing and Slum Development Programme (IHSDP) for other cities and towns. The Mission period has been extended for two years till March 2014 for completion of projects sanctioned till March 2012. About 1.57 million houses had been sanctioned by 6 February 2013 and 1610 projects with outlay of more than ` 41,723 crore approved. A central share of ` 22,370.82 crore (96.5 per cent of the seven-year allocation for 2005-12) has been committed. More than 1.57 million houses have been sanctioned, of which more than 6.60 lakh have been completed and 4.37 lakh occupied. Additional central assistance of ` 14,661.16 crores has also been released. http://indiabudget.nic.in 283 Rajiv Awas Yojana (RAY): The RAY was launched on 2 June 2011 with the vision of creating a slumfree India. Phase I of the RAY (preparatory phase) is for a period of two years from the date of approval of the scheme and is currently under implementation. Phase II of the RAY shall be for the remaining period of the Twelfth Five Year Plan. An amount of ` 50 crore has been allocated for the year 2012-13. Integrated Low Cost Sanitation Scheme (ILCS): The ILCS aims at conversion of individual dry latrines into pour flush latrines thereby liberating manual scavengers from the age-old, degrading practice of manually carrying night soil. The allocation for the scheme for 2012-13 is ` 25 crore. SKILL DEVELOPMENT 13.27 Education and skill development play a pivotal role in economic development and growth of any country as they provide an environment for creating jobs and help in reduction of poverty and other related social fallouts. A new strategic framework for skill development for early school leavers and existing workers has been developed since May 2007 in close consultation with industry, state governments, and experts. During AprilDecember 2012, the National Skill Development Corporation (NSDC) approved 24 training projects for imparting skill training in a wide array of sectors like healthcare, tourism, hospitality and travel, banking, financial services and insurance (BFSI), retail, IT, electronics, textiles, leather, handicrafts and automotive, agriculture, cold chains and refrigeration, tailoring, carpentry, and masonry. Besides formation of Skill Councils for seven sectors, proposals related to food processing, telecom, agriculture, plumbing, logistics, capital goods, and construction sectors have also been approved during this period. During this period, NSDC partners had skilled around 1,39,305 people and placed approximately 97,116 of them, thereby achieving placement of 70 per cent. Special skills training initiatives of the NSDC have been helping youth in Jammu and Kashmir and the north-eastern states join the mainstream. The NSDC has been able to get some of India's biggest corporate groups interested in the private sector-led skills training programme for graduates and post-graduates in Jammu and Kashmir called Udaan. Scaling up of this initiative is targeted to make 40,000 people in Jammu & Kashmir skilled and placed in jobs over a five-year span. In the north-east region, the NSDC is 284 Economic Survey 2012-13 partnering the Ministry of Youth Affairs and Sports in the Youth Employability Skills (YES) project. Till 3 December 2012, NSDC partners had established a presence in 25 states and three UTs and covered 312 districts. UNIQUE IDENTIFICATION OF INDIA (UIDAI) AUTHORITY 13.28 After successfully completing Phase I enrolments, the UIDAI is actively engaged in Phase II in which 40 crore residents are to be enrolled before end 2014. As of December 2012, 24.93 crore Aadhaars had been generated and approximately 20 crore Aadhaar letters dispatched. The UIDAI has also established infrastructure to generate 10 lakh Aadhaars per day and process 10 million authentication transactions a day. Apart from meeting targets related to enrolments, significant amount of effort has been spent on enabling service delivery of government schemes with Aadhaar online authentication and Aadhaar-enabled benefits transfers to bank accounts of beneficiaries. The government has decided to initiate direct transfer of subsidy under various social schemes into beneficiaries' bank accounts. The transfer will be enabled through a payments bridge known as Aadhaar Payment Bridge (APB) wherein funds can be transferred into any Aadhaar-enabled bank account on the basis of the Aadhaar number. This eliminates chances of fraud/ error in the cash transfer process. The Aadhaar number will be linked to the beneficiary database so that ghosts/ duplicates are weeded out from the beneficiary list. 13.29 To make withdrawal of money by the beneficiaries easier and more accessible and friendly, micro ATMs will be set up by banks/ post offices throughout the country in an open manner particularly with the help of SHGs, community service centres (CSCs), post offices, grocery stores, petrol pumps, etc. in rural areas and accessible pockets. This is being done initially in 51 pilot districts across the country from 1 January 2013. Pilots on direct benefit transfer (DBT) have also been successfully conducted in the states of Jharkhand, Tripura, and Maharashtra to transfer monetary benefits related to rural employment, pension, the IAY, and other social welfare schemes. An important pilot is the fair price shops in East Godavari and Hyderabad districts of Andhra Pradesh which are being enabled to carry out online Aadhaar authentication. In another important pilot with oil marketing companies (OMCs) in Mysore, delivery of LPG gas cylinders is being http://indiabudget.nic.in done only after Aadhaar online authentication of customers. EDUCATION 13.30 To reap the benefits of the demographic dividend to the full, India has to provide education to its population and that too quality education. The draft Twelfth Plan focuses on teacher training and evaluation and measures to enforce accountability. It also stresses the need to build capacity in secondary schools to absorb the pass outs from expanded primary enrolments. Elementary and Secondary Education 13.31 Many schemes have been initiated by the government for elementary and secondary education. Some are as follows: Sarv Shiksha Abhiyan (SSA)/Right to Education (RTE): The Right of Children to Free and Compulsory Education (RTE) Act 2009, legislating Article 21A of the Constitution of India, became operational in the country on 1 April 2010. It implies that every child has a right to elementary education of satisfactory and equitable quality in a formal school which satisfies certain essential norms and standards. The achievements till September, 2012 include opening of 3,34,340 new primary and upper primary schools, construction of 2,84,032 school buildings, 16,42,867 additional classrooms, 2,17,820 drinking water facilities and 6,18,089 toilets, supply of free textbooks to 8.32 crore children, appointment of 12.46 lakh teachers, and imparting of in-service training to 18.64 lakh teachers. Significant reduction in the number of out-of-school children on account of SSA interventions has been noted. The number of out-of-school children has come down from 134.6 lakh in 2005 to 81.5 lakh in 2009 as per an independent study conducted by the Social and Rural Research Institute (SRI)-International Marketing Research Bureau (IMRB). Mid-day Meals (MDM): Under the MDM, cooked midday meals are provided to all children attending Classes I-VIII in government, local body,governmentaided, and National Child Labour Project (NCLP) schools. Education Guarantee Scheme (EGS)/ alternate and innovative education centres including madarsas /maqtabs supported under the SSA across the country are also covered under this programme. At present the cooked midday meal provides an energy content of 450 calories and protein content of 12 grams at primary stage and an energy content Human Development of 700 calories and protein content of 20 grams at upper primary stage. Adequate quantity of micronutrients like iron, folic acid, and vitamin A are also recommended for convergence with the NRHM. During 2011-12, the budget allocation for this programme was ` 10,380 crore against which the total expenditure incurred was ` 9901.91 crore. About 10.54 crore children (7.18 crore in primary and 3.36 crore in upper primary stages) benefited under the programme during 2011-12. The MDM-MIS has been launched to monitor the scheme and annual data entries for about 11.08 lakh schools have been completed. The MDM-MIS will be integrated with the Interactive Voice Response System (IVRS) meant to capture the information from the schools within a span of 1 hour on daily basis to monitor the scheme. Rashtriya Madhyamik Shiksha Abhiyan (RMSA): The RMSA was launched in March 2009 with the objective of enhancing access to secondary education and improving its quality. An amount of ` 3124 crore was allocated to the scheme in 2012-13, of which ` 2264.81 crore (as on 31.12.12) had been released to 22 states for construction of new school buildings and to existing secondary schools for strengthening of infrastructure, salary of teachers and staff sanctioned under the RMSA, learning enhancement programmes, equity interventions, etc. Model Schools Scheme: A scheme for setting up of 6000 high quality model schools as a benchmark of excellence at block level at the rate of one school per block was launched in November 2008 to provide quality education to talented rural children. The scheme has two modes of implementation, viz. (i) 3500 schools are to be set up in as many EBBs through state governments and (ii) the remaining 2500 schools are to be set up under PPP mode in blocks which are not educationally backward. The state government component has been operational from 2009-10. Implementation of the PPP component has been initiated from 2012-13. Under the state government component of this scheme, till 31December 2012 setting up of 2266 model schools in 22 states had been approved. Financial sanctions had been accorded for setting up of 1880 schools in 21 states and an amount of ` 2215.58 crore released as the central share. Out of these, 473 schools had become functional in Punjab, Karnataka, Chhattisgarh, Tamil Nadu, Gujarat, Madhya Pradesh, and Jharkhand and ` 57.88 crore as recurring expenditure had also been released till 31 December 2012. http://indiabudget.nic.in 285 Saakshar Bharat (SB)/ Adult Education: The National Literacy Mission, recast as SB, reflects the enhanced focus on female literacy. The target of the Eleventh Five Year Plan was to achieve 80 per cent literacy but as per Census 2011, only 74.04 per cent literacy has been achieved. However, the literacy rate improved sharply among females as compared to males with the latter increasing by 6.9 per cent points from 75.26 per cent to 82.14 per cent and the former by 11.8 per cent points from 53.67 per cent to 65.46 per cent. Literacy levels remain uneven across states, districts, social groups, and minorities. The government has taken focused measures for reducing the disparities in backward areas and target groups. By March 2012, the programme had reached 372 districts in 25 states and one UT covering over 161,219 gram pachayats. By the end of March 2012, about 16 lakh literacy classes enrolling about 174 lakh learners were functioning. By the end of November 2012, 372 out of 410 eligible districts had been covered under the programme comprising 4386 blocks and 161,219 gram panchayats. Since the Mission has been envisaged as a people's programme, stakeholders, especially at grassroots level i.e. PRIs, have due say and role in its planning and implementation. Despite the efforts of the government to provide primary and elementary education, there is a lot more to be done in terms of quality. The Annual Status of Education Report (ASER) 2012 by Pratham, an NGO, in its annual survey of rural children conducted in 567 districts, highlights many positives as well as negatives (Box 13.4). The declining levels of educational achievement are a cause for concern, though it is unclear how much of the decline is because of lower levels of learning, and how much is because schools are reaching out to enroll students with lower preparation than they did earlier. Higher and Technical Education 13.32 The Indian higher education system is one of the largest in the world in terms of the number of colleges and universities. While at the time of Independence, there were only 20 universities and 500 colleges with 0.1 million students, their number has increased to 690 universities and university-level institutions and 35,539 colleges upto 2011-12. Of the 690 universities, 44 are central universities, 306 state universities, 145 state private universities, 130 deemed universities, 60 institutes of national importance plus other institutes, and 5 institutions established under State Legislature Acts. 286 Economic Survey 2012-13 Box 13.4 : Main Findings of ASER 2012 Some Positives or status quo maintained Rising enrollment: In 2012, 96.5 per cent of all 6-14 year olds in rural India are enrolled in schools. This is the fourth consecutive year that enrollment levels have been 96 per cent or more. In 2006, in eight major states, more than 11 per cent girls in the age group of 11 to 14 years were not enrolled in school. By 2011, this figure had dropped to less than 6.5 per cent in 3 of these states (Jharkhand, Gujarat and Odisha) and less than 5 per cent in 3 others (Bihar, Chhattisgarh and West Bengal).The situation in these states remained more or less unchanged in 2012. However in Rajasthan and Uttar Pradesh, the proportion of out of school girls (age 11-14) has increased from 8.9 per cent and 9.7 per cent respectively in 2011 to more than 11 per cent in 2012. Private school enrollment is rising in most states: Private school enrollment of 6 to 14 year olds has risen steadily since 2006 from 18.7 per cent in 2006 to 28.3 per cent in 2012. Increase in private school enrollment is seen in almost all states, with the exception of Kerala, Nagaland, Manipur, Meghalaya and Tripura (where private school enrollment was over 40 per cent even last year). There was of more than 40 per cent enrollment in Jammu & Kashmir, Punjab, Haryana, Rajasthan, Uttar Pradesh and Meghalaya in private schools. This percentage is 60 per cent or more in Kerala and Manipur. Since 2009, private school enrollment in rural areas has been rising at an annual rate of about 10 per cent. If this trend continues, by 2018 India will have 50 per cent children in rural areas enrolled in private schools. Better provision of girls' toilets: The proportion of schools without toilets (girls + boys) has fallen from 12.2 per cent in 2011 to 8.4 per cent in 2012. The proportion of schools having toilets usable separately by the girls has improved from 32.9 in 2011 to 48.2 percent in 2012. More libraries in schools and more children using them: The proportion of schools without libraries has declined from 28.7 per cent in 2011 to 23.9 percent in 2012. Children were seen using the library in more schools as well - up from 37.9 per cent in 2010 to 43.9 per cent in 2012. Compliance on pupil-teacher ratio and Classroom-teacher ratio: At the All India level, there has been a consistent rise in the proportion of schools complying with RTE norms on pupil-teacher ratio, from 38.9 per cent in 2010 to 42.8 percent in 2012. In 2012, Nagaland stands out with 93.0 per cent of schools in compliance ahead of Kerala (92.0 percent) which was the highest last year. In Jammu & Kashmir, Mizoram, Manipur and Tripura, more than 80 per cent schools are in compliance with these norms. No major changes in buildings, playgrounds, boundary walls or drinking water: About 61.1 per cent of visited schools had a playground in 2012 compared to 62.8 percent in 2011. However, there has been marginal increase of 0.8 percent in the proportion of all schools that have a boundary wall in 2012 from the last year. Nationally, the proportion of schools with no provision for drinking water remained almost the same at 17 per cent in 2010, 16.7 per cent in 2011 and 16.6 percent in 2012. The proportion of schools with a useable drinking water facility has remained steady at about 73 per cent. Some Negatives Teacher Classroom ratio is declining: There has been a decline in the proportion of schools with at least one classroom per teacher, from 76.2 per cent in 2010 to 74.3 per cent in 2011 and further to 73.7 percent in 2012. However, departing from the national pattern, in states like Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Kerala, Maharashtra, Meghalaya, Nagaland, Tamil Nadu, Tripura, Uttarakhand and West Bengal there has been an increase in teacher classroom ratio this year. Declining basic reading levels: In 2010, 46.3 per cent of all children in std V could not read a std II level text, which has increased to 52.3 percent in 2012. Arithmetic levels also show a decline across most states: Basic arithmetic levels estimates show a decline. For example, nationally, 29.1 per cent of Std V children could not solve simple two digit subtraction problem with borrowing in 2010 which increased to 39 per cent in 2011 and further to 46.5 per cent in 2012. Barring Andhra Pradesh, Karnataka and Kerala, every major state shows signs of substantial drop in arithmetic learning levels. Children's attendance has declined: Children's attendance (for std I-V) shows a decline from 74.3 per cent in 2009 to 71.3 per cent in 2012 in rural primary schools. However, children's attendance in some states shows an increase over time. For example, in primary schools of Bihar, average attendance of children increased from 57.0 per cent in 2007 to 58.3 per cent in 2012, in Karnataka from 88.0 per cent in 2009 to 89.1 per cent in 2012, in Kerala it has increased from 91.9 percent in 2009 to 94.4 percent in 2012 and in Odisha from 74.1 per cent in 2009 to 77.5 per cent in 2012. More than half of all Std 2 and Std 4 classes sit together with another class: Nationally, in rural government primary schools, students who sit in multi-grade classrooms is rising. Source : ASER 2012, Press Release Dated 17 January 2013, website http://images2.asercentre.org/aserreports/ ASER_2012_PRESS_RELEASE.pdf http://indiabudget.nic.in Human Development 13.33 A number of initiatives have been taken during the Eleventh Plan period with focus on improvement of access along with equity and excellence, adoption of state-specific strategies, enhancing the relevance of higher education through curriculum reforms, vocationalization, networking, and use of IT and distance education along with reforms in governance in higher education. The major initiatives are as follows:   During the Eleventh Plan, 16 central universities were established which include conversion of three state universities to central universities. Seven new Indian Institutes of Management (IIMs), 8 new Indian Institutes of Technology (IITs), 10 new National Institutes of Technology (NITs), 5 Indian Institutes of Science Education & Research (IISERs), and 2 Schools of Planning and Architecture (SPAs) were also established. The National Mission on Education through ICT (NMEICT) which aims at providing high speed broadband connectivity to universities and colleges and development of e-content in various disciplines is under implementation. Nearly 404 universities have been provided 1Gbps connectivity or have been configured under the scheme and 19,851 colleges have also been provided VPN connectivity. Over 250 courses have been completed and made available in National Programme on Technology Enhanced Learning (NPTEL) Phase I and another 996 courses in various disciplines in engineering and science are being generated in Phase-II of NPTEL by IIT Madras. The low cost accesscum-computing device Aakash 2 was launched on 11 November 2012. Using the A-View software developed under the NMEICT, several programmes for teachers' empowerment have been conducted for batches of 1000 teachers at a time by IIT Mumbai.  A Scheme of Interest Subsidy on Educational Loans to economically weaker sections (EWS) students was introduced from 2009-10.  An Expert Group was set up by the Prime Minister in order to suggest ways of enhancing employment opportunities in Jammu and Kashmir and to formulate job plans involving the public and private sectors. Among the key recommendations of the Expert Group, one is offering scholarships over the next five years, to encourage the youth of Jammu and Kashmir to http://indiabudget.nic.in 287 pursue higher studies outside the state. This scheme is being implemented since 2011-12.  To address the increasing skill challenges of the Indian IT industry, the government has approved setting up of twenty new Indian Institutes of Information Technology (IIITs) on PPP basis. The project is targeted for completion in nine years from 2011-12 to 2019-20. The Government of India also provides financial assistance to the states up to a limit of ` 12.30 crore per polytechnic to meet the costs of establishing new government polytechnics in un-served districts. HEALTH 13.34 Improvement in the standard of living and health status of the population has remained one of the important objectives for policymakers in India. In line with the National Health Policy 2002, the NRHM was launched on 12 April 2005 with the objective of providing accessible, affordable, and quality healthcare to the rural population. It seeks to bring about architectural correction in the health systems by adopting the approaches like increasing involvement of community in planning and management of healthcare facilities, improved programme management, flexible financing and provision of untied grants, decentralized planning and augmentation of human resources. Table 13.9 shows the progress made by India over the years based on health indicators. 13.35 In 2012-13, the Plan outlay for health was increased by 13.9 per cent to ` 30,477 crore. The combined revenue and capital expenditure of the centre and states on medical and public health, water supply and sanitation, and family welfare has increased from ` 53,057.80 crore in 2006-7 to ` 1,18,295.78 crore in 2011-12 (BE). In the Twelfth Five Year Plan the central outlay for health has been increased by 200 per cent to ` 3,00,018 crore compared to the actual outlay of ` 99,491 crore in the Eleventh Five Year Plan. This outlay will be directed towards building on the initiatives taken in the Eleventh Plan period, for extending the outreach of public health services, and for moving towards the long-term objective of establishing a system of universal health coverage. Despite the efforts by the government to provide affordable access to the decentralized public health system, its expenditure on public health as a percentage of GDP is low as indicated earlier in this chapter. 288 Economic Survey 2012-13 Table 13.9 : India — Selected health indicators Sl. No. Parameter 1981 1991 Current level 1. Crude Birth Rate (CBR) (per 1000 population) 33.9 29.5 21.8 (2011*) 2. Crude Death Rate (CDR)(per 1000 population) 12.5 9.8 7.1 (2011*) 3. Total Fertility Rate (TFR)(per woman) 4.5 3.6 2.5 (2010*) 4. Maternal Mortality Rate (MMR) (per 100,000 live births) NA NA 212 (2007-9*) 5. IMR (per 1000 live births): 110 80 44 (2011*) Rural 48 Urban 29 6. Child (0-4 years) Mortality Rate ( per 1000 children) 7. Life Expectancy at Birth: 41.2 26.5 13.3 (2010*) (1981-85) (1989-93) (2006-10)** Total 55.4 59.4 66.1 Male 55.4 59.0 64.6 Female 55.7 59.7 67.7 Source: Ministry of Health and Family Welfare. *Sample Registration Survey (SRS), RGI. ** Abridged Life Table 2003-07 to 2006-10, RGI. 13.36 The government has launched a large number of programmes and schemes to address the major concerns and bridge the gaps in existing health infrastructure and provide accessible, affordable, equitable healthcare. The details of some major programmes and developments are as follows: National Rural Health Mission (NRHM): The NRHM which provides an overarching umbrella to the existing health and family welfare programmes was launched in 2005 to improve accessibility to quality healthcare for the rural population, bridge gaps in healthcare, facilitate decentralized planning in the health sector, and bring about inter-sectoral convergence. Better infrastructure, availability of manpower, drugs and equipment, and augmentation of health human resources in health facilities at different levels have led to improvement in healthcare delivery services and increase in outpatient department (OPD) and inpatient department (IPD) services (Table 13.10). 13.37 Under the NRHM, over 1.4 lakh health human resources have been added to the health system across the country (up to September 2012). Accredited social health activists (ASHAs) have been engaged in each village / large habitation in the ratio of one per 1000 population. Till September 2012, 8.84 lakh ASHAs had been selected in the entire country, of whom 8.09 lakh had been given orientation training. Further, 7.96 lakh ASHAs had been provided drug kits. As part of the infrastructure strengthening under the NRHM, 10,473 sub-centres, 714 primary health centres (PHCs), and 245 http://indiabudget.nic.in community health centres (CHCs) have been newly constructed. Also, renovation/upgradation of 10,326 sub-centres, 2963 PHCs, and 1221 CHCs has been completed. A total of 8199 PHCs have been made functional as 24X7 services across the country. Further, nearly 2024 vehicles are operational as mobile medical units (MMUs) in 459 districts in the country under the NRHM. The total plan outlay for the year 2012-13 under the NRHM is ` 20,542 crore and ` 2712.7 crore for schemes/projects in the northeastern region and Sikkim. Janani Suraksha Yojana (JSY): The JSY launched in 2005 aims to bring down the MMR by promoting institutional deliveries conducted by skilled birth attendants. The beneficiaries have increased from 7.38 lakh in 2005-6 to more than 1.09 crore in 201112. The number of institutional deliveries has increased from 1.08 crore during 2005-6 to 1.75 crore during 2011-12. The number of institutional deliveries during 2012-13(up to September 2012) was 80.39 lakh. In addition, Janani Shishu Suraksha Karyakram (JSSK), a new initiative which entitles all pregnant women delivering in public health institutions to an absolutely no expenses delivery covering free delivery including Caesarean, free drugs, diagnostics, blood and diet, and free transport from home to institution including during referrals, is also in operation. National Vector Borne Disease Control Programme: To control and prevent vector-borne diseases such as malaria, dengue, chikungunya, Japanese encephalitis, kala-azar, and lymphatic filariasis in Human Development Table 13.10 : Health Care Infrastructure Facilities SC/PHC/CHC*(2011) No. 176,820 Government hospitals (rural & urban areas)** 11,493 AYUSH hospitals & dispensaries 27,339 Nursing personnel (as on 31-12-10)** 18,94,968 Doctors (modern system) (2011)** 922,177 Source : Ministry of Health & Family Welfare as obtained from *RHS: Rural Health Statistics in India 2011 and ** National Health Profile 2011. the country, a National Vector Borne Disease Control Programme has been launched. Of these six diseases, kala-azar and lymphatic filariasis have been targeted for elimination by 2015. With this initiative, malaria has shown a declining trend with 0.95 million cases and 446 deaths reported out of the 94.85 million persons screened in 2012 (up to November) compared to 1.31 million cases and 753 deaths of the 108.97 million persons screened in 2011. Dengue in the recent past has been reported from almost all the states and UTs except Lakshadweep. During 2011, 18,860 cases and 169 deaths were reported, whereas during 2012, 47,029 cases and 242 deaths have been reported. Chikungunya cases have shown a declining trend after its re-emergence in 2006. Human Resources, Infrastructure Development/ Upgradation of Tertiary Healthcare: To strengthen government medical colleges, land requirement norms and infrastructural requirements for opening new medical colleges have been revised. However, to further increase availability of doctors, it is proposed to set up new medical colleges attached to district hospitals and strengthen and upgrade existing ones to add 16,000 new MBBS seats during the Twelfth Plan period. In order to meet the shortage of nurses, a scheme is under implementation for opening of 132 ANM schools (at a cost of ` 5 crore per school) and 137 general nursing and midwifery (GNM) schools (at ` 10 crore per school) in districts where there are no such schools. A sum of ` 520.50 crore had been released under the scheme till December 2012. Opening of six nursing colleges at the sites of AIIMS-like institutions at a total cost of ` 120 crore is also under implementation. The scheme for strengthening / upgradation of state government medical colleges envisages a one-time grant of ` 1350 crore to be funded by central and state governments in a 75:25 ratio. During 2009-10 http://indiabudget.nic.in 289 to 2012-13, 72 medicals colleges have been funded. To augment the supply of skilled paramedical manpower and promote paramedical training, one National Institute of Paramedical Sciences (NIPS) at Najafgarh, Delhi, and eight Regional Institutes of Paramedical Sciences (RIPS) are being set up at a cost of ` 804.43 crore. Besides, State Government Medical Colleges are being provided support for conducting paramedical courses through one-time grant at a cost of ` 352 crore. Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): The PMSSY aims at correcting regional imbalances in the availability of affordable/reliable tertiary health-care services and augmenting facilities for quality medical education in the country. For the year 2012-13, ` 1544.21 crore has been earmarked under the PMSSY, which aims at (i) construction of 6 AIIMS-like institutions in the first phase at Bhopal, Bhubaneswar, Jodhpur, Patna, Raipur, and Rishikesh and in the second phase in West Bengal and Uttar Pradesh, (ii) upgradation of 13 medical colleges in the first phase and 6 in the second phase. The academic session for 50 MBBS seats has commenced at the six new AIIMS like institutions in September 2012 and hospitals are likely to be operational by September 2013. Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH): The Indian system of medicines is also being developed and promoted by involvement/integration of the AYUSH system in national healthcare delivery through an allocation of ` 990 crore Plan outlay in 2012-13. To integrate AYUSH healthcare with mainstream allopathic healthcare services, the states are provided financial support for co-location of AYUSH facilities at PHCs, CHCs, and district hospitals and supply of essential drugs to standalone AYUSH hospitals/dispensaries. WOMEN AND CHILD DEVELOPMENT 13.38 Women lag behind men in many social indicators like health, education, and economic opportunities. Hence they need special attention due to their vulnerability and lack of access to resources. Since national budgets impact men and women differently through the pattern of resource allocation, the scope and coverage of schemes for women and child development have been expanded with progressive increase in Plan expenditure under various Plan schemes, increased employment for women under the MGNREGA and gender budgeting (GB). The allocations for GB as a percentage of total 290 Economic Survey 2012-13 budget have gone up from 2.79 per cent in 2005-6 to 5.91 per cent in 2012-13. Some of the important schemes and policy initiatives for economic and social empowerment of women and child development are as follows: Integrated Child Development Services (ICDS) Scheme: The objective of the ICDS scheme is holistic development of children below 6 years of age and proper nutrition and health education of pregnant and lactating mothers starting with 33 projects and 4891 anganwadi centres (AWCs) in 1975. This has now been universalized with cumulative approval of 7076 projects and 14 lakh AWCs including 20,000 anganwadis 'on-demand'. At present 7025 ICDS projects and 13.31 lakh AWCs are operational. They are currently providing services to 928 lakh beneficiaries. A proposal for strengthening and restructuring of the ICDS Scheme with an overall budget allocation of ` 1,23,580 crore during the Twelfth Plan has been approved and will be rolled out in all the districts in three years. Greater emphasis is being laid on awareness generation, convergence with the MGNREGA, and MIS-based monitoring. Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG)-Sabla: Sabla now operational in 205 selected districts aims at all-round development of adolescent girls in the age group 1118 years and making them self-reliant with a special focus on out-of-school girls. The scheme has two major components, nutrition and non-nutrition. Nutrition is being given in the form of 'take home rations' or 'hot cooked meals' to out-of -school 11-14 year old girls and all adolescent girls in the 14 -18 age group. The non-nutrition component addresses the developmental needs of 11-18 year old adolescent girls who are provided iron-folic acid supplementation, health check-up and referral services, nutrition and health education, counseling/ guidance on family welfare, skill education, guidance on accessing public services, and vocational training. The target of the scheme is to provide nutrition to 1 crore adolescent girls in a year. Against an allocation of ` 750 crore for 2012-13, ` 496 crore has been released to states/UTs benefiting 87.23 lakh adolescent girls as on 31.12.2012. Indira Gandhi Matritva Sahyog Yojana (IGMSY): The IGMSY is a conditional cash transfer scheme for pregnant and lactating women implemented initially on pilot basis in 53 selected districts in the country from October 2010. As on 31December 2012, more http://indiabudget.nic.in than 3 lakh beneficiaries had been covered and ` 27 crore released to states. The scheme is now covered under the Direct Benefit Transfer (DBT) programme with nine districts being included in the first phase. In 2012-13, the scheme has a budgetary outlay of ` 520 crore and targets covering 12.5 lakh pregnant and lactating women. National Mission for Empowerment of Women (NMEW): This initiative for holistic empowerment of women through better convergence and engendering of policies, programmes, and schemes of different ministries was operationalized in 2010-11. Under the Mission, institutional structures at state level including State Mission Authorities headed by Chief Ministers and State Resource Centres for Women (SRCWs) for spearheading initiatives for women's empowerment have been established across the country. Rashtriya Mahila Kosh (RMK): The RMK provides micro-credit in a quasi-informal manner, lending to intermediate micro-credit organizations (IMOs) across states. It focuses on poor women and their empowerment through the provision of credit for livelihood-related activities. With a corpus fund of ` 31 crore, the RMK has grown to over ` 180 crore including reserves and surplus due to credit, investments, and recovery management with an additional budgetary allocation of ` 69 crore. From its inception in 1993 till 31 December 2012, the RMK has sanctioned loans worth ` 342.40 crore and released ` 275.89 crore covering over 7.19 lakh women beneficiaries. Policies to address violence against women: Addressing violence against women is another area which has received a lot of recent attention. Following the recent tragic incident of sexual assault in New Delhi, a committee of eminent jurists, headed by former Chief Justice of India Justice J. S. Verma, was constituted to review existing laws and examine levels of punishment in cases of aggravated sexual assault and it has submitted its recommendations. An ordinance has also been issued on sexual assault against women [Criminal Law (Amendment) Ordinance, 2013] based on the recommendations of the Justice Verma Committee. A Commission of Inquiry was also set up under the Chairpersonship of Ms Justice Usha Mehra, retired Judge of Delhi High Court to identify lapses on the part of public authorities and suggest measures to improve the safety and security of women in the capital. New initiatives are being taken like one-stop crisis centres Human Development this scheme. An amount of ` 777 crore had been released to states up to 31December 2012 against an allocation of ` 824 crore for 2012-13 for scholarships to an estimated 35 lakh beneficiaries. For providing pre-matric scholarships to students whose parents are engaged in unclean occupations, out of an allocation of ` 10 crore for 2012-13, ` 5.71 crore had been released to states (up to December 2012). This had benefited 3.23 lakh students up to December, 2012. for providing shelter, police assistance, legal, medical and counselling services with public hospitals as focal point. A scheme for providing restorative justice through financial assistance and support services to victims of rape will be implemented in the Twelfth Plan as per the directives of the Supreme Court of India. WELFARE AND DEVELOPMENT OF SCS, STS, OBCS, AND OTHER WEAKER SECTIONS 13.39 Economic and social empowerment and educational upliftment of socially disadvantaged groups and marginalized sections of society is necessary for achieving faster and more inclusive development. Programmes are being implemented through states, government's apex corporations, and NGOs for the upliftment of disadvantaged and marginalized sections of society.  Under the revised Post-Matric Scheme, an amount of ` 1269.73 crore has been released to states out of the BE of ` 1500 crore. The number of beneficiaries during 2012-13 is estimated at 40 lakh.  Under the Rajiv Gandhi National Fellowship Scheme which aims at providing financial assistance to SC students pursuing MPhil and PhD courses, ` 125 crore has been allocated for 2000 new/renewal fellowships during 2012-13.  Under the National Overseas Scholarship Scheme, financial support to students pursuing Master's level courses and PhD/Post-Doctoral courses abroad, 30 awards are given per year. During 2012-13, an amount of ` 1.7 crore had been released up to 31 December 2012 against an allocation of ` 6 crore.  Under Top Class Education, eligible students who secure admission in notified institutions like the IITs, IIMs, and NITs, are provided full financial support for meeting the requirements of tuition fees, living expenses, books, and computers. In 2012-13, up to 31 December 2012, ` 8.35 crore had been released against an allocation of ` 25 crore to assist 677 students. SCs 13.40 Special Central Assistance (SCA) to the Scheduled Castes Sub Plan (SCSP) is a major initiative for lifting SCs above the poverty line through self-employment or training. The amount of subsidy admissible is 50 per cent of the project cost, subject to a maximum of ` 10,000 per beneficiary. During 2012-13, the physical target is to cover over 12 lakh beneficiaries. An amount of ` 713.02 crore had been released to states against an allocation of ` 1180 crore up to 31 December 2012. Another recent measure is increasing the existing rates (between ` 0.20 lakh and ` 2.50 lakh) of relief to victims of atrocities, their family members, and dependents (to between ` 0.50 lakh and ` 5 lakh) as per the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities Amendment) Rules 2011. An amount of ` 55.36 crore had been released to states against an allocation of ` 100 crore up to December 2012. 13.41 A number of schemes to encourage SC students to continue higher education studies are also under implementation. Some of them are as follows:  Pre-Matric Scholarship Scheme for SC Students studying in Classes IX and X was introduced from 1 July 2012 to support parents of SC children in education of their wards so that the incidence of drop-out, especially in the transition from elementary to secondary stage is minimized. Students with parental income not exceeding ` 2 lakh per annum are eligible for http://indiabudget.nic.in 291 STs 13.42 For the welfare and development of STs, an outlay of ` 4090 crore has been made in the Annual Plan for 2012-13. During 2012-13, ` 1200 crore has been provided as Special Central Assistance (SCA) to Tribal Sub-Plan (TSP). The SCA to TSP is a 100 per cent grant extended to states as additional funding to their TSP for family-oriented income-generating schemes, creation of incidental infrastructure, extending financial assistance to SHGs, communitybased activities, and development of forest villages. The outlay for grants-in-aid under Article 275(1) during 2012-13 is ` 1317 crore. 292 Economic Survey 2012-13 13.43 For economic empowerment of STs, financial support is extended through the National Scheduled Tribes Finance and Development Corporation (NSTFDC) in the form of loans and micro-credit at concessional rates of interest for income-generating activities. Market development of tribal products and their retail marketing is done by the Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) through its sales outlets. Till 31 October 2012, 32.37 lakh claims had been filed and 12.76 lakh titles distributed under the provisions of the 'The Scheduled Tribes and Other Traditional Forest Dwellers Act 2006'. Further, 14,603 titles were ready for distribution. A total of 27.88 lakh claims have been disposed of. Programme is ` 1000 crore in 2012-13. The authorized share capital of the National Minorities Development and Finance Corporation (NMDFC) has been raised from ` 650 crore in 2006-7 to ` 1500 crore in 2010-11 for expanding its loan and microfinance operations to promote self-employment and other economic ventures among backward sections of the minority communities. An amount of ` 99.64 crore has been released to the NMDFC during 201213. The Prime Minister's New 15 Point Programme for Welfare of Minorities which earmarks 15 per cent of targets/ outlays for minorities in many important schemes aims at ensuring the equitable flow of benefits of education, employment, and basic infrastructure schemes to minorities. 13.44 There are also many schemes for helping ST students. Under the Post-Matric Scholarship Scheme, 100 per cent financial assistance is provided to ST students whose family income is less than or equal to ` 2 lakh per annum to pursue postmatric-level education including professional, graduate, and postgraduate courses in recognized institutions. The Top Class Education Scheme for STs provides financial assistance for quality education to 625 ST students per annum to pursue studies at degree and post-degree level in any of 125 identified institutes. The family income from all sources of the beneficiary ST student under the scheme should not exceed ` 2 lakh per annum. Financial assistance is also provided to 15 eligible ST students for pursuing higher studies abroad in specified fields at Master's and PhD level under the National Overseas Scholarship Scheme. A scheme for Strengthening of Education among ST Girls in Low Literacy Districts is also being implemented to bridge the gap in literacy levels between the general female population and tribal women. 13.46 The corpus of the Maulana Azad Education Foundation (MAEF) had been enhanced from ` 100 crore in 2005-6 to ` 750 crore till March 2012. Fund allocation has been enhanced from ` 1190 crore in 2011-12 to ` 1620 crore in 2012-13 for three scholarships schemes, Pre-Matric, Post-Matric, and Metric-cum-means based, which are being implemented exclusively for the notified minorities. Two schemes, viz. (i) the Maulana Azad National Fellowship for Minority Students, with an allocation of ` 70 crore in 2012-13 and (ii) Computerization of Records of State Wakf Boards, with an allocation of ` 5 crore in 2012-13, are under implementation since 2009-10. There is also a scheme for Leadership Development of Minority Women with an allocation of ` 15 crore for 2012-13. Minorities 13.45 The five communities--Muslims, Christians, Sikhs, Buddhists, and Parsis- notified as minority communities constitute 18.42 per cent of the total population of the country. The plan outlay for the development of minorities was raised from ` 2850 crore in 2011-12 to ` 3135 crore in 2012-13. The Multi-sectoral Development Programme, a special areas development initiative to address the 'development deficits' especially in education, skill development, employment, health and sanitation, housing, and drinking water in 90 minority concentration districts (MCDs), was launched in 2008-9. Projects worth ` 3734 crore were approved during the Eleventh Plan. The outlay for this http://indiabudget.nic.in OBCs 13.47 Central assistance is provided to states for educational development of OBCs. Under the PreMatric Scholarship for OBCs Scheme, against an allocation of ` 50 crore during 2012-13, ` 35.45 crore was released to states up to December 2012. Under the Post-Matric Scholarship Scheme, the target is to provide scholarship to 17.25 lakh OBC students. To provide hostel facilities to OBC students studying in middle and secondary schools, colleges, and universities and enable them to pursue higher studies, ` 6.13 crore was released up to December 2012 against an allocation of ` 45 crore in 2012-13. Persons with Disabilities 13.48 Persons with disabilities are a valuable human resource for the country. For the physical rehabilitation, educational and economic development, and social empowerment of differently abled persons many schemes are in operation. According to Census 2001, there were 2.19 crore 293 Human Development persons with disabilities in India comprising1.26 crore males and 0.93 crore females, who constitute 2.13 per cent of the total population,; with 75 per cent living in rural areas; 49 per cent literate; and only 34 per cent employed. Some important schemes for the welfare of disabled persons include the following: Scheme of Assistance to Disabled Persons for Purchase/Fitting of Aids/ Appliances (ADIP): The ADIP was launched to assist needy disabled persons in procuring durable, sophisticated, and scientifically manufactured, modern, standard aids and appliances that can promote their physical, social, and psychological rehabilitation, by reducing the effects of disabilities, and enhance their economic potential. During 2012-13(till 31.12.2012) ` 32.60 crore had been released to the implementing agencies against a Plan outlay of ` 100 crore for the scheme. Every year around 2 lakh persons with disabilities are provided assistive devices.  Deendayal Disabled Rehabilitation Scheme (DDRS): The DDRS includes projects for providing education, vocational training, and rehabilitation of persons with orthopaedic, speech, visual, and mental disabilities. It provides for 18 model projects covering various services provided by voluntary agencies which are supported through grants-in-aid that include programmes for pre-school and early intervention, special education, vocational training and placement, community-based rehabilitation, manpower development, psychosocial rehabilitation of persons with mental illness, and rehabilitation of leprosy-cured persons. Against an allocation of ` 120 crore for the financial year 2012-13, ` 14.48 crore had been sanctioned as on 31December 2012.  Incentives to Employers in the Private Sector for Providing Employment to Persons with Disabilities: This Scheme incentivizes the private  sector to employ persons with disability with the government providing the employer's contribution to the Employees Provident Fund (EPF) and Employees State Insurance (ESI) for three years, for employees with disabilities employed on or after 01 April 2008 with a monthly salary up to ` 25,000. Social Defence 13.49 The social defence sector includes schemes/ programmes which aim at the welfare, security, healthcare, and maintenance especially of indigent senior citizens by providing them productive and independent living and schemes for victims of substance abuse aimed at drug demand reduction through awareness campaigns and treatment of addicts and their detoxification so that they may join the mainstream. The Integrated Programme for Older Persons (IPOP), aims at covering 64,000 beneficiaries during 2012-13. Grants-in-aid are provided to NGOs for running integrated rehabilitation centres for addicts, regional resource and training centers, and other projects through the Assistance for the Prevention of Alcoholism and Substance (Drugs) Abuse scheme. During 2012-13 (up to December 2012), ` 8.06 crore had been released against a revised allocation of ` 17 crore. The scheme aims to benefit 1.2 lakh persons. 13.50 There are three national-level financial institutions which also help in the up-liftment of the weaker sections of society. The National Scheduled Castes Finance and Development Corporation (NSCFDC), National Safai Karamcharis Finance and Development Corporation (NSKFDC), and National Backward Classes Finance and Development Corporation (NBCFDC) provide credit facilities to their target groups at concessional rates of interest for various income-generating activities. During 201213, 1.23 lakh beneficiaries were disbursed loans as on 31 December 2012 by these three Institutions Table 13.11 : Details of the Loan Disbursed/Beneficiaries Covered under the NSCFDC, NSKFDC, and NBCFDC in 2012-13 (up to December 2012) Sl. Corporation No. Amount of Loan Disbursed (` ` crore) Te r m MicroOthers Total Loan finance 1. NSCFDC 77.94 26.53 11.08 115.55 10734 7935 837 19506 2. NSKFDC 47.86 20.49 3.15 71.50 2312 8167 599 11078 3. NBCFDC 76.74 25.79 42.92 145.45 17560 24070 50362 91992 202.54 72.81 57.15 332.50 30606 40172 51798 122576 Total Source: Ministry of Social Justice and Empowerment. http://indiabudget.nic.in Tentative No. of Beneficiaries Te r m MicroOthers Loan finance Total 294 Economic Survey 2012-13 together. Micro-finance beneficiaries of the NBCFDC and NSKFDC have increased by 23.79 per cent and 54 per cent respectively, while those under the NSCFDC have fallen by 66 per cent in 2012-13 (AprilDecember) over the corresponding period of the previous year (Table 13.11). OUTLOOK AND CHALLENGES 13.51 The global recession of 2008 and the recent global slowdown have squeezed the fiscal space for most countries and consequently the purse for socialsector spending. However, India's social sector spending has seen a continuous increase even during these crisis-ridden years. India needs to balance the dual imperatives of growth and inclusion. This can happen only if growth leads to higher and better jobs. While the government's flagship programme, the MGNREGA, is intended to fill this 'job deficit' in the interregnum, we have to focus on longer-term inclusive growth strategies. The $ 1 trillion Infrastructure opportunity is one such example. Even in the interregnum, schemes like the MGNREGA should move towards more production- and growthgenerating activities. The draft Twelfth Five Year Plan has emphasized faster, more inclusive, and sustainable growth. A special effort is needed in two areas of human development in India - health and education. These will help translate our demographic advantage into a real dividend (See chapter 2). There is also need to address delivery-related issues in a mission mode to ensure optimum utilization of funds and to convert outlays into outcomes. For this, good governance is critical. 13.52 Coming to expenditure management, in the last few years public expenditure on social programmes has increased dramatically from ` 9.10 lakh crore in the Tenth Plan period to ` 22.69 lakh crore during the Eleventh Plan period with a step up of over 149 per cent. In the Eleventh Plan period nearly ` 7 lakh crore has been spent on the 15 major flagship programmes. This sharp increase is unprecedented. A number of legislative steps have also been taken to secure the rights of people, like the Right to Information Act, the MGNREGA, the Forest Rights Act, and the RTE. Thus the funds are in place, rights constitutionally guaranteed, and many achievements recorded, but there are also pressing issues like leakages and funds not reaching the targeted beneficiaries. While the Direct Benefit Transfer (DBT) system with the help of the UID can http://indiabudget.nic.in help in plugging many of these leakages, there is enough scope for expenditure reduction even in social-sector programmes through convergence (integration and combining). Economic Survey 201112 had pointed out that there are many schemes like the AABY, JBY, and RSBY with significant overlap and catering to the same or similar categories of the population, with Shiksha Sahyoga Yojana (SSY) as a add-on benefit under the former two schemes. A welcome development this year is the merger of the JBY with the AABY. There are many other such areas where convergence can take place. For example the JSY, Janani Shishu Surksha Karyakram (JSSK), and Indira Gandhi Matritva Sahyog Yojana (IGMSY) have many overlapping features and the same beneficiaries. This calls for a careful exercise in identifying overlapping schemes and weeding out or converging them. A threshold level could also be fixed for the schemes as a critical minimum investment or outlay is needed for any programme to be successful. The Committee on 'Restructuring of Centrally Sponsored Schemes' has suggested that new centrally sponsored schemes should have a minimum Plan expenditure of ` 10,000 crore over the Five Year Plan and should be included under flagship schemes. 13.53 Another area needing attention is decentralization. While Plan programmes are designed with a bottom-up approach and are panchayat- and PRI-centric, they are actually implemented in a top-down manner and do not effectively articulate the needs and aspirations of the local people, especially the most vulnerable. With the 73rd Constitutional Amendment, several functions were transferred to PRIs and since 2004 there has also been massive transfer of funds to PRIs, especially after the enactment of the MGNREGA. But institutionally the PRIs remain weak and do not have the required capacity to plan or implement programmes effectively. The Twelfth Five Year Plan proposes a complete break from the past and provides sizeable resources to the Ministry of Panchayati Raj. These higher outlays should be converted into outcomes. This calls for greater focus on empowering PRIs through training and awareness generation coupled with social audit of all socialsector programmes. Cash transfers to the intended beneficiaries can also help empower citizens, even while giving them choice of provider. This too can help improve the quality of service delivery.