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LATEST NEWS UPDATES | Social spending cut: Rural job scheme, SSA in focus -Ruhi Tewari

Social spending cut: Rural job scheme, SSA in focus -Ruhi Tewari

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published Published on Feb 17, 2015   modified Modified on Feb 17, 2015
-The Financial Express

As cuts in social sector spending in the forthcoming Union Budget are widely anticipated, the focus will be on two of the biggest flagship schemes - the Mahatma Gandhi National Rural Employment Guarantee Act and the Sarva Siksha Abhiyan, both with individually high budget allocations.

MGNREGA, launched by the Congress-led UPA government in 2006, has been in the midst of controversy this year, with the NDA government being accused of trying to "dilute" it and squeeze its funds, leading to speculations of a possible budget cut.

However, given the scheme is demand driven and legally entitles a registered household to seek 100 days of work, the government is obliged to provide work as per demand, irrespective of budget allocation.

The scheme's budgetary allocation has increased from around Rs 11,000 crore in 2006-07 to Rs 40,000 crore in 2009-10, and has since remained consistent at around Rs 33,000 crore. The current allocation for the scheme is Rs 34,000 crore. The scheme's expenditure against funds was 87 per cent in 2012-13, 92 per cent in 2013-14 and has been 84 per cent so far this fiscal.

The 2015-16 Budget comes at a time when the scheme's implementation this year is under serious review, with over 70 per cent of wages delayed and less than 3 per cent households being able to complete the promised 100 days of employment till now. The scheme's dismal implementation this year has been attributed to a serious fund crunch, with states not receiving adequate and timely funds.

Activists and Opposition parties say an increase in the budgetary allocation is essential. Ministry officials explain that even if the budget is not slashed, the current allocation will not be adequate, given the increase in wages.

Meanwhile, the Sarva Siksha Abhiyan (SSA) aims to provide universal education to all children between ages 6-14. The scheme accounts for around 65 per cent of the total elementary education budget with a current budgetary allocation of around Rs 28,000 crore, up from around Rs 26,000 crore in 2013-14.

Officials say the major chunk of SSA's budget allocation goes in teachers' salaries and infrastructure. However, expenditures have not entirely been in tune with rising allocations, with spending as a proportion of allocations being unsatisfactory.

While ministry officials do not anticipate a cut in the scheme's budget, they acknowledge a need to address the demand from several states to alter the Centre-state funding pattern from the existing 65:35 to a more favourable one.


The Financial Express, 17 February, 2015, http://www.financialexpress.com/article/economy/social-spending-cut-rural-job-scheme-ssa-in-focus/43768/


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