Cuts in Social Sector Funding: Implications

Cuts in Social Sector Funding: Implications

Question: NDA government has slashed spending in the social sector by INR 1,75,122 crore in one year. Discuss how these budget cuts impact health, women and child welfare and other areas.

The worst budget cuts have been applied to vulnerable segments namely women, children, agriculture, irrigation, PRI, education, health, ST and SC.


• Funding for the National Health Mission has been cut by INR 3650 crore

• For the National AIDS and STD programme, spending has been cut by INR 392 crore and for Ayush, the budget cut w was a hefty INR 64 crore

• Total allocation of the Ministry of Health and Family Welfare has been lowered by INR 6000 crore

• National Health Policy Draft holds that MDGs can only be met if public health expenditure is 4 to 5 percent of GDP but allocates an increase of only 2.5%

Women and children welfare

• Women and children welfare has also been negatively impacts by budget cuts.

• Budget of the ICDS aimed at improving the health of children and lactating mothers has been reduced by INR 9858 crore

• India has one of the highest malnourishment rates, with 46 per cent malnourished children, almost double that of sub-Saharan Africa at 25 per cent (NFHS 3, 2004-2005).

• Gender Budget Statement is now INR 79, 258 from INR 97,134 in the previous year

• Nirbhaya centres have been reduced from the recommended 660 to just 36

• Government has slashed the budget for crises centres from INR 20 crore to just 2 crore

• Woman’s Helpline launched in 2013 had a budget cut of 9 crore to reach INR 1 crore from INR 10 crore

Other Areas

• PRIs provide last mile connectivity and their budget has been reduced by 98.6%

• Backward Regions Grant Fund created for addressing regional imbalances in identified backward districts and ensuring direct development in LWE affected areas has been closed

• Allocation for sanitation and drinking water has been reduced by a massive INR 9025 crore

• Government has attempted to shift central schemes onto States with

• 90% of the Sarva Siksha Abhiyan allocation now coming from the Prarambhik Shiksha Kosh and only 10% from government’s Plan Budget

• None of the NDA schemes are rights based; instead they are all linked to earnings and are contributory in nature

Facts and Stats

• NDA has cut down on social spending through a INR 66,222 crore cut in grants to social sector schemes

• It has initiated an INR 5,900 crore cut by shutting down the Backward Regions Grant Fund,

• Further, it has given approval for INR 1,03,000 crore cut by scrapping the Food Security Programme that targets 67% of the population.
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