By Dr Arun Mitra
At the time of Indian independence in 1947 with GDP at 2.7 lakh crore that is 3% of the world’s total GDP, it was a big challenge and horrendous task to meet aspirations of all sections of the society particularly the marginalized ones. Since the number of socially and economically deprived sections was very large, the policies had to be framed which would ensure an inclusive growth. Several schemes were floated for social welfare.
Health and education got a due place in the government spending leading to opening up of schools and hospitals in the state sector in remote corners of the country. This enabled lower income group people also to benefit. Along with this a democratic dialogue and its implementation in practice in the electoral system to the Panchayat level led to involvement of common men & women in the process of growth of the country. The leadership of that time belied Churchill’s claim that “if Independence is granted to India, power will go to the hands of rascals, rogues, freebooters; all Indian leaders will be of low calibre and men of straw….”.
On the eve of Independence, Prime Minister Jawaharlal Nehru, addressing the Constituent Assembly had said that independence has given us opportunity, to work to end poverty and ignorance and disease and inequality of opportunity. The policies adopted stopped the loot of our country by the British Imperialism and promised self-dependent economic growth. As a result life expectancy which was barely 32 years in 1947 increased with every year reaching to 67 in 2020. Despite several gross shortcomings our country progressed in many spheres.
For the society to progress it is important that state spending is increased in the social welfare sectors including Food Security, Health and Family Welfare, Education, Housing, Water Supply, Promotion of healthy environment, Employment and Labour welfare, Protection of minorities and their welfare, Rural Development, Skill Development and Entrepreneurship, Social Justice, Women and Child Development, Youth Affairs & Sports and Welfare of Senior Citizens. It is important for the government to spend in social security programmes in the form of unemployment allowance, universal health coverage, free school education and free or cheap university education, old age pension, maternity benefits, disability benefits, family allowance such as child care allowance, allowances for those too poor to make a living, and much more.
But it is to be noted with concern that instead there is reduction in the state spending on social sectors. According to Neeraj Jain, in his article “Analysing Budget 2024–25 from a People’s Perspective: Part 7: Reduction in Social Sector Expenditure; Violation of Federalism”, the Modi Government’s expenditure on social services has continuously declined. It came down from 23.59% of the budget in 2021-22 to 18.26% in 2024-25 budget and in terms of GDP it has been reduced from 3.79% and 2.70% during this period.
Ironically with a rank of 179 out of 189, India’s public health spending is among the lowest in the world. Because of this our country is facing a ‘health emergency’. India is the disease capital of the world. Lakhs of people die of treatable diseases every year because of lack of affordable and good quality public health services. Government’s allocation to health is far from meeting the people’s health needs. In the 2024 – 25 allocation to health is only 89287 core rupees out of a total budget of 48.21 lakh crore rupees that is only 1.8% of the total budget. For our population of 140 crore, this comes to only Rs.638/- per person. It is a cruel joke with the people. India is facing a ‘hunger and malnutrition emergency’. Nearly 5 crore children in the country are malnourished, and more than two crore pregnant women and lactating mothers are suffering from anaemia. Yet, the government has slashed its budgetary spending on food subsidy by more than 60% over the last few years.
Senior citizens are the worst sufferers. Most of our workforce is in informal sector where post-retirement benefits are almost nil. The elderly population becomes dependent on their children. At this time of life one is more vulnerable to health problems. But the Government’s allocations for pension schemes for the elderly are scandalously low and none of the health insurance schemes offered by the government is sufficient to meet the needs and it is nearly impossible to afford private health insurance.
Similar is the condition of education. Government spending on education in India is among the lowest in the world — and declining. The government has shut down more than 80,000 schools in the last few years. Fund allocated to the education in the present budget are only 125638 crore rupees which comes to only 2.6% as against the required 10%.
It is therefore imperative that economic policies are designed for more public spending on health, education and other social needs if the country has to have inclusive growth. Our country is signatory to the Alma Ata declaration on health. It is time to revisit that and implement it to move forward in the direction of universal healthcare. (IPA Service)
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