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LATEST NEWS UPDATES | A betrayal of the social sector when it needs help -Dipa Sinha

A betrayal of the social sector when it needs help -Dipa Sinha

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published Published on Feb 2, 2022   modified Modified on Feb 2, 2022

-The Hindu

The government seems to have prioritised meeting its fiscal deficit targets rather than using this opportunity to signal a path of employment-centred and inclusive growth

India continues to rank poorly in various global indices that reflect the quality of life, human capital or human development in the country, such as the Human Development Index (rank 131 out of 189 countries) and the Global Hunger Index (rank 101 out of 116 countries). It is well documented that the pandemic over the last two years has had a severe impact on the health, education and food security of the poor and informal sector workers. A number of recent reports, including the Oxfam’s ‘Inequality Kills’ report and the ICE360 survey, well establish that the recovery in economic growth in India is K-shaped, meaning that the incomes of the poorer sections of the society are decreasing, while those of the richer sections are increasing. As many have argued, while this trend has been exacerbated by the pandemic, the country has been experiencing increasing inequality over the last couple of decades. Further, the period after 2016 has also seen stagnant real wages and increasing unemployment.

A conservative view

In this context, it was expected that the current Budget would see an expansion in government spending on the social sector. Greater spending on the social sector can contribute to improvements in human development outcomes, provide a cushion to people during the current economic crisis and also contribute to boosting private consumption demand which in turn can have a positive multiplier effect on the economy. However, despite the current situation of a demand crisis, the Budget has taken a conservative view and seems to have prioritised meeting its fiscal deficit targets rather than using this opportunity to signal a path of employment-centred and inclusive growth.

A complete disconnect

While it acknowledged that learning among children has been affected because of prolonged periods of school closures, the government announced that it will expand its ‘one class, oneTVchannel’ scheme instead of announcing enhanced allocations for schools so that they can reopen with vigour. This reveals a complete disconnect with the situation on the ground where school infrastructure needs upgradation, teacher vacancies need to be filled and efforts need to be made to bring back children who have dropped out of school and also have huge learning losses to catch up on. 

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The Hindu, 2 February, 2022, https://www.thehindu.com/opinion/op-ed/a-betrayal-of-the-social-sector-when-it-needs-help/article38360933.ece


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