planning for inclusive growth : the indian experience

Planning For Inclusive GrowthPlanning For Inclusive Growth:: The Indian The Indian

ExperienceExperience

By By Dr. Nagesh SinghDr. Nagesh Singh

AdvisorAdvisorPlanning Commission, Govt. of IndiaPlanning Commission, Govt. of India

Structure of the PresentationStructure of the Presentation

Social compact for inclusive growth.Social compact for inclusive growth.

Planning process & inclusive growth agenda.Planning process & inclusive growth agenda.

Status of MDGs in India.Status of MDGs in India.

Major Plan schemes.Major Plan schemes.

Governance reforms & MDGs.Governance reforms & MDGs.

Social Compact: 1Social Compact: 1

The constitution of India provides a framework for inclusive growth.The constitution of India provides a framework for inclusive growth.

Fundamental rights guarantee citizens a number of inalienable Fundamental rights guarantee citizens a number of inalienable rights.rights.

Directive principles of state policy though not justiciable, act as a Directive principles of state policy though not justiciable, act as a beacon for governance.beacon for governance.

Positive discrimination built in the constitutional provisions for Positive discrimination built in the constitutional provisions for weaker sections.weaker sections.

The Supreme Court of the country has consistently enhanced The Supreme Court of the country has consistently enhanced peoples rights through its judgments (e.g Food Security, ICDS).peoples rights through its judgments (e.g Food Security, ICDS).


Directive principles of the state policy play a major role in legislative Directive principles of the state policy play a major role in legislative & administrative agenda& administrative agenda

Many of the MDGs form a part of the directive principles:Many of the MDGs form a part of the directive principles:

Social order for promotion of the welfare of the peopleSocial order for promotion of the welfare of the people

Right to workRight to work

Free & compulsory education for childrenFree & compulsory education for children

Level of nutrition & public healthLevel of nutrition & public health

Protection of environment Protection of environment


A fundamental shift in the recent years is the emergence of rights A fundamental shift in the recent years is the emergence of rights based approach in contrast to welfare.based approach in contrast to welfare.

A number of entitlements enshrined in the directive principles have A number of entitlements enshrined in the directive principles have been made legal rights:been made legal rights:

Right to Education: A fundamental rightRight to Education: A fundamental right

National Rural Employment Guarantee ActNational Rural Employment Guarantee Act

Forest Dwellers Rights ActForest Dwellers Rights Act

Panchayati Raj institutionsPanchayati Raj institutions

Right to informationRight to information

Planning Process and Inclusive Growth Planning Process and Inclusive Growth Agenda: 1Agenda: 1

Removal of poverty, building human capital and expanding opportunities for Removal of poverty, building human capital and expanding opportunities for poor has been a consistent theme across the planspoor has been a consistent theme across the plans

Post reform period (1991), Development with a human facePost reform period (1991), Development with a human face

Massive expansion of programmes for poorer sections/regions:Massive expansion of programmes for poorer sections/regions:

Employment assurance schemeEmployment assurance scheme

Housing Housing

Basis amenities Basis amenities

Programmes for backward regions Programmes for backward regions


Eighth Five Year Plan (1992-97) and Ninth Five Year Plan (1997-Eighth Five Year Plan (1992-97) and Ninth Five Year Plan (1997-2002) followed a three pronged strategy for inclusive growth:2002) followed a three pronged strategy for inclusive growth:

Investment in sectors that generated employment opportunities for poorerInvestment in sectors that generated employment opportunities for poorer people ,people ,

investment in health & education to build human capital,investment in health & education to build human capital,

provision of basic infrastructure facilities such as drinking water, sanitation, provision of basic infrastructure facilities such as drinking water, sanitation, housing, roads etc. housing, roads etc.

In addition the plans continued to focus on poorer districts and In addition the plans continued to focus on poorer districts and backward regions.backward regions.Major government schemes provided higher allocations to poorer Major government schemes provided higher allocations to poorer districts.districts.The Finance Commission devolutions became more progressive. The Finance Commission devolutions became more progressive.


The Tenth Five Year Plan (2002-07), internalized MDGs and for the The Tenth Five Year Plan (2002-07), internalized MDGs and for the first time set monitorable targetsfirst time set monitorable targets

Nation and state wide monitorable targets:Nation and state wide monitorable targets:

5 % reduction in poverty by 2007, 15 % by 20125 % reduction in poverty by 2007, 15 % by 2012 All children in school by 2003, all children to All children in school by 2003, all children to

complete 5 years of schooling by 2007complete 5 years of schooling by 2007 Reduction of IMR to 45 per thousand live births by Reduction of IMR to 45 per thousand live births by

2007 and to 28 by 20122007 and to 28 by 2012 Reduction in MMR to 2 per thousand live births by 2007 and Reduction in MMR to 2 per thousand live births by 2007 and

to 1 by 2012to 1 by 2012 All villages to have sustained access to potable drinking All villages to have sustained access to potable drinking

waterwater


The Eleventh Five Year Plan (2007-12) was dedicated to inclusive The Eleventh Five Year Plan (2007-12) was dedicated to inclusive growth.growth.

The theme of the eleventh plan was faster and inclusive growth.The theme of the eleventh plan was faster and inclusive growth.

The eleventh plan also set ambitious monitorable targets which The eleventh plan also set ambitious monitorable targets which relate to MDGs.relate to MDGs.

The approach paper to the Twelfth Five Year Plan talks of “faster, The approach paper to the Twelfth Five Year Plan talks of “faster, sustainable and more inclusive growth”.sustainable and more inclusive growth”.

The plan allocation in the eleventh plan for social sectors was The plan allocation in the eleventh plan for social sectors was considerably stepped-up.considerably stepped-up.

S. S. NO.NO.

SECTORSSECTORS TENTH PLANTENTH PLAN(% of Total (% of Total

Outlay)Outlay)

ELEVENTH PLANELEVENTH PLAN(% of Total (% of Total

Outlay)Outlay)

11 EducationEducation 7.687.68 19.2919.2922 Rural Development, Land Rural Development, Land

resources & Panchayati Rajresources & Panchayati Raj10.7010.70 13.3913.39

33 Health, FW & AYUSHHealth, FW & AYUSH 5.625.62 8.718.7144 Agriculture and IrrigationAgriculture and Irrigation 6.226.22 8.558.55

55 Social Justice Social Justice 4.474.47 6.356.3566 Physical Infrastructure*Physical Infrastructure* 10.9410.94 9.019.01

77 Scientific DepartmentsScientific Departments 3.663.66 4.684.6888 EnergyEnergy 5.815.81 4.044.04

Total Priority SectorTotal Priority Sector 55.1055.10 74.0374.03Other SectorsOther Sectors 44.9044.90 25.9725.97

Public Sector investment declining because of PPPPublic Sector investment declining because of PPP

Sectoral Allocation in Tenth and Eleventh Plans

Status of MDGs in India: 1Status of MDGs in India: 1

MDG 1: Eradicate Extreme Poverty and HungerTarget 1: Halve, between 1990 and 2015,

the Percentage of Population below the

National Poverty Line

Moderately on-track

Target 2: Halve, between 1990 and 2015,

the proportion of people who suffer from

hunger.

Slow or almost off-track

MDG 2: Achieve Universal Primary EducationMDG 2: Achieve Universal Primary Education

Target 3: Ensure that by 2015 childrenTarget 3: Ensure that by 2015 children

everywhere, boys and girls alike, will beeverywhere, boys and girls alike, will be

able to complete a full course of primaryable to complete a full course of primary

education.education.

On Track

Status of MDGs in India: 2Status of MDGs in India: 2

MDG 3: Promote Gender Equality and Empower WomenTarget 4: Eliminate gender disparity in

primary and secondary education,

preferably by 2005, and in all levels of

education no later than 2015.

Moderately or almost

nearly on track

MDG 4: Reduce Child MortalityTarget 5: Reduce by two-thirds, between

1990 and 2015, the under-five Mortality

Rate

Slow or off-track

MDG 5: Improve Maternal Health

Target 6: Reduce by three quarters,

between 1990 and 2015, the Maternal

Mortality Ratio.

Slow or off-track

Status of MDGs In India: 3Status of MDGs In India: 3

MDG 6: Combat HIV/AIDS, Malaria and Other DiseasesTarget 7: Have halted by 2015 and begun

to reverse the spread of HIV/AIDS

Moderately on track

Target 8: Have halted by 2015 and begun

to reverse the incidence of malaria and

other major diseases

Slow or off-track

MDG 7: Ensure Environmental SustainabilityTarget 10: Halve, by 2015, the Proportion

of People without Sustainable Access to

Safe Drinking Water and Basic Sanitation

On-track or fast by one

main indicator (for Drinking

Water) but slow by another

main indicator (Sanitation)

MDG 8: Develop a Global Partnership for DevelopmentTarget 18: In co-operation with the

Private Sector, make available the

benefits of new technologies, especially

Information and Communication

On-track or fast

Major Plan Schemes: ICDS 1Major Plan Schemes: ICDS 1

India faces a serious nutritional challenge.India faces a serious nutritional challenge.

Progress on nutrition related targets slow and off the track.Progress on nutrition related targets slow and off the track.

Meeting nutritional challenge on the development agenda. Meeting nutritional challenge on the development agenda.

Prime Minister’s national council on nutrition set up in 2011. Prime Minister’s national council on nutrition set up in 2011.

Major revamp of ICDS programme.Major revamp of ICDS programme.


COMPONENTS OF ICDS

Supplementary

Nutrition

Immuni-zation

HealthCheck-up

Health and

Nutrition Education

Referral Services

Pre-School

Education


Many structural issues in ICDS.Many structural issues in ICDS.

Coverage of children limited.Coverage of children limited.

Outreach in isolated and difficult terrain which require ICDS services Outreach in isolated and difficult terrain which require ICDS services is an issue.is an issue.

Focus on supplementary nutrition to the neglect of other Focus on supplementary nutrition to the neglect of other components.components.

0-3 age group - the critical years for nutritional challenge and 0-3 age group - the critical years for nutritional challenge and pregnant and lactating mothers have received less attention.pregnant and lactating mothers have received less attention.

Governance issues in ICDS.Governance issues in ICDS.


Major restructuring of the ICDS on the anvil pursuant to Major restructuring of the ICDS on the anvil pursuant to recommendations of the Prime Ministers council on nutrition.recommendations of the Prime Ministers council on nutrition.

Special focus on 200 high focus districts which account for more Special focus on 200 high focus districts which account for more than 50% of the undernourished children and women.than 50% of the undernourished children and women.

Special attention on 0-3 age group, adolescent girls, pregnant and Special attention on 0-3 age group, adolescent girls, pregnant and lactating mothers.lactating mothers.

Provision of better physical infrastructure (construction of Provision of better physical infrastructure (construction of Anganwadi Centres).Anganwadi Centres).

A coordinated action plan involving health, water supply, sanitation, A coordinated action plan involving health, water supply, sanitation, food and public distribution etc.food and public distribution etc.

A strong component of IEC for better feeding practices.A strong component of IEC for better feeding practices.

Major Plan Schemes: EducationMajor Plan Schemes: Education

India on track to achieve MDGs relating to educational attainments.India on track to achieve MDGs relating to educational attainments.

Primary education for children up to age 14 a fundamental right.Primary education for children up to age 14 a fundamental right.

Net Enrollment rate at primary level for girls and boys above 98%.Net Enrollment rate at primary level for girls and boys above 98%.

Right to education Act passed in 2009.Right to education Act passed in 2009.

Providing education a social responsibility. Even private schools Providing education a social responsibility. Even private schools have to reserve 25% seats for students from poorer sections.have to reserve 25% seats for students from poorer sections.

A change in discourse on education: from access to quality of A change in discourse on education: from access to quality of education. education.

Major Plan Schemes: MNREGA 1Major Plan Schemes: MNREGA 1

Right to work a legal right under National Rural Employment Right to work a legal right under National Rural Employment Guarantee Act, 2005.Guarantee Act, 2005.

Job cards issued to 12.03 crore workers.Job cards issued to 12.03 crore workers.

48% of the MNREGA beneficiaries are women.48% of the MNREGA beneficiaries are women.

The act has strengthen the bargaining power of the workers.The act has strengthen the bargaining power of the workers.

Real wages in agriculture have gone up by 18% to 45% in different Real wages in agriculture have gone up by 18% to 45% in different states.states.

Reduction in distress migration and elimination of attendant Reduction in distress migration and elimination of attendant problemsproblems

Major Plan Schemes: MNREGA 2Major Plan Schemes: MNREGA 2

The scheme has raised agricultural wages but has not contributed The scheme has raised agricultural wages but has not contributed to increase in agricultural productivity as was envisaged.to increase in agricultural productivity as was envisaged.

Preponderance of earth-work related projects.Preponderance of earth-work related projects. The quality of assets is a huge concern.The quality of assets is a huge concern.

No possibility of skill up gradation.No possibility of skill up gradation.

Corruption in program implementation.Corruption in program implementation.

Twelfth Five Year Plan to launch MNREGA Phase-II with emphasis Twelfth Five Year Plan to launch MNREGA Phase-II with emphasis on infrastructure, skill upgradation coupled with better monitoring.on infrastructure, skill upgradation coupled with better monitoring.

Major Plan Schemes: Health 1Major Plan Schemes: Health 1

Progress on health indicators indicates that in the last three years Progress on health indicators indicates that in the last three years the rate of reduction of IMR and MMR has accelerated.the rate of reduction of IMR and MMR has accelerated.

National Rural Health Mission launched in April, 2005.National Rural Health Mission launched in April, 2005.

NRHM based on Indian Public Health standards.NRHM based on Indian Public Health standards.

Strengthening of Sub-centers, primary health centers and Strengthening of Sub-centers, primary health centers and community health centers for primary and secondary health care.community health centers for primary and secondary health care.

Special programmes to encourage institutional delivery, pre natal & Special programmes to encourage institutional delivery, pre natal & post natal carepost natal care

18 states with higher disease burden given higher allocations under 18 states with higher disease burden given higher allocations under NRHMNRHM

Major Plan Schemes: Health 2Major Plan Schemes: Health 2

All vertical disease control programmes under NRHM.All vertical disease control programmes under NRHM.

Flexi funds to states, districts and dispensaries at different levels.Flexi funds to states, districts and dispensaries at different levels.

Investment in public health infrastructure complimented by health Investment in public health infrastructure complimented by health insurance schemes for the poor (RSBY).insurance schemes for the poor (RSBY).

Involvement of private sector.Involvement of private sector.

The Twelfth Five year plan to focus on health sector.The Twelfth Five year plan to focus on health sector.

Public expenditure on health to be raised from 1.4% of the GDP in Public expenditure on health to be raised from 1.4% of the GDP in 2011-12 to 2.5% of the GDP by the end of the Twelfth Five Year 2011-12 to 2.5% of the GDP by the end of the Twelfth Five Year Plan.Plan.

National Skill Development MissionNational Skill Development Mission

Mission launched to provide training to workforce so that they could Mission launched to provide training to workforce so that they could get gainfully employed.get gainfully employed.

Mission to train 500 million youth in different vocations by 2022Mission to train 500 million youth in different vocations by 2022Training to be provided across vocations covering industry, services Training to be provided across vocations covering industry, services and agriculture.and agriculture.

Public and Private sector participation (PPP).Public and Private sector participation (PPP).

National Skill Development Corporation set up as a non profit National Skill Development Corporation set up as a non profit company with 51% private equity and 49% govt. equity.company with 51% private equity and 49% govt. equity.

Allocation for Major ProgrammesAllocation for Major Programmes (in Rs Crores)(in Rs Crores)

ProgrammeProgramme 2010-112010-11 2011-122011-12 2012-132012-13 % increase in % increase in 2012-13 over 2012-13 over

2011-122011-12

MNREGAMNREGA 4010040100 3100031000 3300033000 6.56.5

Primary Primary Education Education

(SSA)(SSA)

1720217202 2100021000 2555525555 21.721.7

ICDSICDS 87008700 1000010000 1585015850 58.558.5

Mid-day MealMid-day Meal 83948394 1024410244 1182711827 15.515.5

Drinking Drinking Water & Water &

SanitationSanitation

95129512 1000010000 1400014000 40.040.0

BRGFBRGF 71807180 98909890 1204012040 21.7 21.7

NRHMNRHM 1346413464 1712717127 2054220542 19.919.9

Rural RoadsRural Roads 1197511975 2000020000 2400024000 2020

Financing Arrangements for Specific Financing Arrangements for Specific ProgrammesProgrammes

Education cess on direct income tax for funding primary Education cess on direct income tax for funding primary education. education.

Cess on petrol and diesel to take up road construction in Cess on petrol and diesel to take up road construction in rural areas and national highways. rural areas and national highways.

Universal service obligation fund (USOF) to improve Universal service obligation fund (USOF) to improve telephone connectivity in under served areas.telephone connectivity in under served areas.

Cess on coal production to fund renewable energy Cess on coal production to fund renewable energy projects.projects.

Area Development ProgrammesArea Development Programmes

Backward region grant fund.Backward region grant fund.

Border area development programme.Border area development programme.

Special package for Bihar, Odisha.Special package for Bihar, Odisha.

10% of the plan budget for North-Eastern states.10% of the plan budget for North-Eastern states.

Special dispensation for Indian-Himalayan region statesSpecial dispensation for Indian-Himalayan region states

Programmes for Weaker SectionsProgrammes for Weaker Sections

Special component plan for schedule castes.Special component plan for schedule castes.

Special component plan for schedule tribes.Special component plan for schedule tribes.

Schemes for backwards classes and minorities.Schemes for backwards classes and minorities.

Specific schemes for persons with special needsSpecific schemes for persons with special needs

Gender budgetingGender budgeting

Governance Reforms 1Governance Reforms 1

Better implementation of programmes and improving accountability Better implementation of programmes and improving accountability is recognized as a prerequisite for inclusive growth.is recognized as a prerequisite for inclusive growth.

Reform of governance and making government more responsive to Reform of governance and making government more responsive to people’s needs and aspirations a major agenda for the Twelfth Five people’s needs and aspirations a major agenda for the Twelfth Five Year Plan.Year Plan.

Legislative action for setting standards for public service delivery.Legislative action for setting standards for public service delivery.

Reform of police administration.Reform of police administration.

Judicial reforms for speedy disposal of cases.Judicial reforms for speedy disposal of cases.

Strengthening Panchayati Raj institutions and urban local bodies.Strengthening Panchayati Raj institutions and urban local bodies.

Use of Information Technology for better governance.Use of Information Technology for better governance.

Governance Reforms 2Governance Reforms 2

Unique Identification Authority of India would provide a unique identity Unique Identification Authority of India would provide a unique identity number “AADHAAR” to each resident of the country.number “AADHAAR” to each resident of the country.

AADHAAR is being created as a platform for public service delivery and AADHAAR is being created as a platform for public service delivery and governance reforms.governance reforms.

Pilot projects have been undertaken to provide direct cash transfers to Pilot projects have been undertaken to provide direct cash transfers to beneficiaries of scholarship schemes, old age pension, delivery of LPG beneficiaries of scholarship schemes, old age pension, delivery of LPG cylinders.cylinders.

AADHAAR is used for financial inclusion, valid for opening no frill accounts, AADHAAR is used for financial inclusion, valid for opening no frill accounts, access through Micro-ATMs and business correspondents. access through Micro-ATMs and business correspondents.

Integration of AADHAAR in PDS, MNREGA and other beneficiary oriented Integration of AADHAAR in PDS, MNREGA and other beneficiary oriented programmes.programmes.

On complete roll out it is expected that poor people would be able to access On complete roll out it is expected that poor people would be able to access government programmes and there would be considerable savings by government programmes and there would be considerable savings by elimination of corruption.elimination of corruption.

THANK YOUTHANK YOU

planning for inclusive growth : the indian experience

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