Declining Share in Union Budget
- Overall Decline: The share of the Union Budget allocated to key social sectors has been decreasing in recent years, affecting crucial areas like health, rural development, education, and social welfare.
Relevance : GS 3(Economy )
- Key Sectors Affected:
- Health: The share dropped from 2.47%-2.22% (FY18-22) to 1.85%-1.75% (FY23-25).
- Rural Development: Allocation stayed below 6% in the last few years, stagnating after a long period of low allocation.
- Higher Education: Reduced from 1.57%-1.37% (FY17-20) to 1.27%-0.88% (FY21-25).
- School Education: Declined from 2.18%-1.96% to 1.61%-1.23%.
- Social Welfare: Dropped from 1.89%-1.61% to 1.17%-0.97% in the same period.
Scheme-Level Allocation Cuts
- MGNREGS: Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for 2024-25 is only ₹86,000 crore (1.78% of the total budget), marking a 10-year low.
- Shortfall in Funding: The Rural Development Ministry faced a ₹4,315 crore shortfall, causing delays in wage disbursements for MGNREGS workers.
- National Social Assistance Programme: Allocations for schemes like old age pensions, widow pensions, and disability pensions fell drastically from 1.21%-0.36% (FY19-21) to 0.2% in the last four years.
- PM-POSHAN Scheme: Pradhan Mantri Poshan Shakti Nirman (PM-POSHAN) allocations, which fund mid-day meals for children in schools, have declined to 0.26% of the total budget in FY25—the lowest in nine years (except FY24).
Exceptions to the Trend
- Ayushman Bharat (PMJAY): Allocations for the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY) have been increasing or stable, supporting healthcare access for vulnerable populations.
- PMAY-Rural: Allocations for the Pradhan Mantri Awas Yojana (PMAY)-Rural have either increased or remained stable.
- PM Schools for Rising India (PM SHRI): This school education scheme has also seen stable or increasing funding, a positive development for education in rural areas.
The Need for Action in FY26 Budget
- Challenges: With the FY26 Budget set for presentation on February 1, it will be crucial to address the ongoing cuts in social sector funding, particularly in MGNREGS, social assistance programs, and nutritional schemes like PM-POSHAN.
- Budget Examination: Key social welfare sectors to focus on include:
- Health: Funding for flexible pools and autonomous bodies like AIIMS.
- Rural Development: Ensuring adequate funding for MGNREGS and PMAY-Rural.
- Social Welfare: Allocating enough to schemes for old age, widow, and disability pensions.
Key Observations and Recommendations
- Critical Social Schemes at Risk: Continued decline in allocations risks undermining essential services for rural development, healthcare, and education.
- Focus on Inclusivity: The Budget should prioritize the socio-economic inclusion of vulnerable communities, ensuring equitable distribution of resources for essential services.
- Sustainability of Key Schemes: Programs like MGNREGS, PM-POSHAN, and social assistance should be funded adequately to maintain their impact.
