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Without actually adding much to the social sector, the Centre has announced it will give more to state governments to roll out centrally-sponsored social schemes.
Allocation towards the ministry of health and family welfare was cut to Rs 7,726 crore from Rs 32,745 crore in Budget 2013-14. The overall Budget estimate for social services was brought down to Rs 75,109 crore from Rs 1,93,043 crore in Budget 2013-14.
The central outlay for rural development was reduced from Rs 56,438 crore in Budget 2013-14 to a mere Rs 2,902 crore in interim Budget 2014-15.
However, states will get the difference between the allocations (of Budget 2013-14 and interim Budget 2014-15) through centrally-sponsored schemes.
The 2014-15 interim Budget pegs Plan expenditure at Rs 5,55,332 crore, the same as estimated in Budget 2013-14. The revised estimate for 2013-14 was cut to Rs 4,75,532 crore.
Currently, there are 66 centrally sponsored schemes, of which many are aimed at the social sector. These include the National Rural Health Mission, the Sarva Shiksha Abhiyan and the National Rural Employment Guarantee Scheme.
Besides shifting more funds to states, Finance Minister P Chidambaram also announced a Rs 1,200-crore venture capital fund would be set up for scheduled castes. He also approved Rs 100 crore towards promotion of community radio stations.
In his interim Budget 2014-15 speech, Chidambaram said, “To ensure the dignity and safety of women, I had promised the Nirbhaya Fund and put Rs 1,000 crore into the fund. So far, we have approved two proposals that will receive support from the fund…To make it clear the fund will be permanent, I intend to declare the grant of Rs 1,000 crore as non-lapsable. And, to support more proposals, I propose to contribute to the fund another sum of Rs 1,000 crore next year.”
The finance minister, who has been a critic of the Unique Identification Authority of India’s Aadhaar scheme, surprised all by showing support for the project.
“Who needs Aadhaar? It is those at the bottom of the pyramid — the poor, migrant workers, the homeless and the oppressed need Aadhaar. And, we will ensure they get Aadhaar. I have no doubt in course of time, even critics of Aadhaar will realise it is a tool of empowerment,” he said.
Aadhaar has provided a platform to the Centre to roll out its ambitious Direct Benefits Transfer scheme.
Chidambaram said 570 million unique identification numbers had been issued and so far, the government had transferred Rs 628 crore of benefits through these. Direct benefits transfer for cooking gas through Aadhaar has been put on hold, following ground-level implementation challenges.
“Though he tried to improve fiscal deficit and boost manufacturing and agriculture sectors, he neglected the education and health sectors. This is disappointing,” said Amitabh Kundu, professor at the Centre for the
Study of Regional Development, School of Social Sciences, Jawaharlal Nehru University.
