Subsidy rationalisation must to release funds

ECONOMIC SURVEY 2004-05/ SOCIAL SECTOR SCHEMES

The government needed to spend more on social sector schemes, said the Economic Survey, but added reprioritisation of expenditure, efficient delivery and improved monitoring mechanisms were crucial.

Economic growth would contribute to achieving the objectives spelt out in the national common minimum programme, but it would not be sufficient to reach out to the poor, the survey said.

"Accelerating growth is necessary but not sufficient for reaching out to the poor in the country," the survey said. There was a need to empower people through universal education and healthcare, it added. 
 

NAC demands
	2004-05	2005-06
Road network in the North East and Sikkim	--	2,450
National Rural Employment Guarantee Act	14,000	19,000
Public Health Fund	8161	10,700
Sarva Shiksha Abhiyan	5057	8000
Mid-Day Meal Scheme	2907	3565
ICDS	1600	4267

Additional outlays, "for these enhanced government responsibilities" would have to be met from a rationalisation of the subsidy regime and consolidation of the various poverty alleviation programmes could also increase the value for money from these programmes, it added.

Major programmes initiated under the national common minimum programme included the food for work programme in 150 backward districts and introduction of the National Rural Employment Guarantee Bill.

Additional budgetary support of Rs 12,000 crore was provided for planned schemes like the food for work, the Sarva Shiksha Abhiyan, mid-day meal, basic healthcare, increased coverage of the Antodaya Anna Yojana, drinking water and roads, imposition of a cess of 2 per cent on central taxes for education and a new universal health insurance scheme for the poor.

However, in addition to increased allocations, the government needed to step up investment in agriculture and allied activities, simplify procedures and relax entry-exit barriers to boost trade, enhance investment in infrastructure, mobilise resources and enable public-private participation in the infrastructure sectors in order to accelerate growth, the Survey pointed out.