The ministries that are responsible for carrying out social welfare schemes may see their budget shrink as the government plans to cut down its contribution by 25-30%.
Social welfare, majorly funded by Centre and run by states will be rejigged in the upcoming budget. The Narendra Modi government will execute on his promise of making states full partners in India's development, which will mean lower contribution to centrally sponsored schemes (CSS). The ministries that are responsible for carrying out social welfare schemes may see their budget shrink as the government plans to cut down its contribution by 25-30%.
Freedom to states
The proposed change comes after the YV Reddy led 14th Finance Commission recommended that the states should get a greater share in participation. This implies that though the department of agriculture will get 25% less funds to the tune of Rs. 16,650 crore from Rs. 22,300 crore, the difference has to be met by the states. It is expected that the human resource ministry too will witness a budget cut of Rs. 12,000 crore.
Various social sector ministries including women and child development, panchayati raj, drinking water and sanitation will have to modify their proposals in light of the planned budget cut and transfer of more power to the states. As of now, the government is planning to cut the contribution from 75% to 50% in some states and to 40% in other while it may hand over full responsibilities to certain states. Though the states will bring in the additional money to meet the target, but it will have more power in its hands to design and customize programmes as per their needs.
More Burdens on States
Meanwhile, the budget may not be allocated for the national food security mission, which was one of the chief initiatives introduced by the previous UPA government. The initiative is now merged with the national mission of sustainable agriculture, which itself received lower allocation by Rs. 400 crore. The Centre may like the concept, but experts are clearly not. According to experts, the government should instead introduce direct cash payments to benefit poor rather than run welfare schemes in the name of poor. Ravi Srivastava, professor of economics at Jawaharlal Nehru University said that the concept will only put more burdens on poor states, which will ultimately impact the poor section of the society.
Social welfare, majorly funded by Centre and run by states will be rejigged in the upcoming budget. The Narendra Modi government will execute on his promise of making states full partners in India's development, which will mean lower contribution to centrally sponsored schemes (CSS). The ministries that are responsible for carrying out social welfare schemes may see their budget shrink as the government plans to cut down its contribution by 25-30%.
Freedom to states
The proposed change comes after the YV Reddy led 14th Finance Commission recommended that the states should get a greater share in participation. This implies that though the department of agriculture will get 25% less funds to the tune of Rs. 16,650 crore from Rs. 22,300 crore, the difference has to be met by the states. It is expected that the human resource ministry too will witness a budget cut of Rs. 12,000 crore.
Various social sector ministries including women and child development, panchayati raj, drinking water and sanitation will have to modify their proposals in light of the planned budget cut and transfer of more power to the states. As of now, the government is planning to cut the contribution from 75% to 50% in some states and to 40% in other while it may hand over full responsibilities to certain states. Though the states will bring in the additional money to meet the target, but it will have more power in its hands to design and customize programmes as per their needs.
More Burdens on States
Meanwhile, the budget may not be allocated for the national food security mission, which was one of the chief initiatives introduced by the previous UPA government. The initiative is now merged with the national mission of sustainable agriculture, which itself received lower allocation by Rs. 400 crore. The Centre may like the concept, but experts are clearly not. According to experts, the government should instead introduce direct cash payments to benefit poor rather than run welfare schemes in the name of poor. Ravi Srivastava, professor of economics at Jawaharlal Nehru University said that the concept will only put more burdens on poor states, which will ultimately impact the poor section of the society.
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