Planning For Inclusive Growth: The Indian
Experience
By
Dr. Nagesh Singh
Advisor
Planning Commission, Govt. of India
Structure of the Presentation
Social compact for inclusive growth.
Planning process & inclusive growth agenda.
Status of MDGs in India.
Major Plan schemes.
Governance reforms & MDGs.
Social Compact: 1
The constitution of India provides a framework for inclusive growth.
Fundamental rights guarantee citizens a number of inalienable
rights.
Directive principles of state policy though not justiciable, act as a
beacon for governance.
Positive discrimination built in the constitutional provisions for
weaker sections.
The Supreme Court of the country has consistently enhanced
peoples rights through its judgments (e.g Food Security, ICDS).
Social Compact: 2
Directive principles of the state policy play a major role in legislative
& administrative agenda
Many of the MDGs form a part of the directive principles:
Social order for promotion of the welfare of the people
Right to work
Free & compulsory education for children
Level of nutrition & public health
Protection of environment
Social Compact: 3
A fundamental shift in the recent years is the emergence of rights
based approach in contrast to welfare.
A number of entitlements enshrined in the directive principles have
been made legal rights:
Right to Education: A fundamental right
National Rural Employment Guarantee Act
Forest Dwellers Rights Act
Panchayati Raj institutions
Right to information
Planning Process and Inclusive Growth
Agenda: 1
Removal of poverty, building human capital and expanding opportunities for
poor has been a consistent theme across the plans
Post reform period (1991), Development with a human face
Massive expansion of programmes for poorer sections/regions:
Employment assurance scheme
Housing
Basis amenities
Programmes for backward regions
Planning Process and Inclusive Growth
Agenda: 2
Eighth Five Year Plan (1992-97) and Ninth Five Year Plan (19972002) followed a three pronged strategy for inclusive growth:
Investment in sectors that generated employment opportunities for poorer
people ,
investment in health & education to build human capital,
provision of basic infrastructure facilities such as drinking water, sanitation,
housing, roads etc.
In addition the plans continued to focus on poorer districts and
backward regions.
Major government schemes provided higher allocations to poorer
districts.
The Finance Commission devolutions became more progressive.
Planning Process and Inclusive Growth
Agenda: 3
The Tenth Five Year Plan (2002-07), internalized MDGs and for the
first time set monitorable targets
Nation and state wide monitorable targets:
5 % reduction in poverty by 2007, 15 % by 2012
All children in school by 2003, all children to
complete 5 years of schooling by 2007
Reduction of IMR to 45 per thousand live births by
2007 and to 28 by 2012
Reduction in MMR to 2 per thousand live births by 2007 and
to 1 by 2012
All villages to have sustained access to potable drinking
water
Planning Process and Inclusive Growth
Agenda: 4
The Eleventh Five Year Plan (2007-12) was dedicated to inclusive
growth.
The theme of the eleventh plan was faster and inclusive growth.
The eleventh plan also set ambitious monitorable targets which
relate to MDGs.
The approach paper to the Twelfth Five Year Plan talks of “faster,
sustainable and more inclusive growth”.
The plan allocation in the eleventh plan for social sectors was
considerably stepped-up.
Sectoral Allocation in Tenth and Eleventh Plans
S.
NO.
SECTORS
TENTH PLAN
(% of Total
Outlay)
ELEVENTH PLAN
(% of Total
Outlay)
1
2
Education
Rural Development, Land
resources & Panchayati Raj
7.68
10.70
19.29
13.39
3
4
Health, FW & AYUSH
Agriculture and Irrigation
5.62
6.22
8.71
8.55
5
6
Social Justice
Physical Infrastructure*
4.47
10.94
6.35
9.01
7
8
Scientific Departments
Energy
3.66
5.81
4.68
4.04
55.10
44.90
74.03
25.97
Total Priority Sector
Other Sectors
Public Sector investment declining because of PPP
Status of MDGs in India: 1
MDG 1: Eradicate Extreme Poverty and Hunger
Target 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 Education
Target 3: Ensure that by 2015 children
everywhere, boys and girls alike, will be
able to complete a full course of primary
education.
On Track
Status of MDGs in India: 2
MDG 3: Promote Gender Equality and Empower Women
Target 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 Mortality
Target 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: 3
MDG 6: Combat HIV/AIDS, Malaria and Other Diseases
Target 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 Sustainability
Target 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 Development
Target 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 1
India faces a serious nutritional challenge.
Progress on nutrition related targets slow and off the track.
Meeting nutritional challenge on the development agenda.
Prime Minister’s national council on nutrition set up in 2011.
Major revamp of ICDS programme.
Major Plan Schemes: ICDS 2
COMPONENTS OF ICDS
Suppleme
ntary
Nutrition
Immunization
Health
Check-up
Health
and
Nutrition
Education
Referral
Services
PreSchool
Education
Major Plan Schemes: ICDS 3
Many structural issues in ICDS.
Coverage of children limited.
Outreach in isolated and difficult terrain which require ICDS services
is an issue.
Focus on supplementary nutrition to the neglect of other
components.
0-3 age group - the critical years for nutritional challenge and
pregnant and lactating mothers have received less attention.
Governance issues in ICDS.
Major Plan Schemes: ICDS 4
Major restructuring of the ICDS on the anvil pursuant to
recommendations of the Prime Ministers council on nutrition.
Special focus on 200 high focus districts which account for more
than 50% of the undernourished children and women.
Special attention on 0-3 age group, adolescent girls, pregnant and
lactating mothers.
Provision of better
Anganwadi Centres).
physical
infrastructure
(construction
of
A coordinated action plan involving health, water supply, sanitation,
food and public distribution etc.
A strong component of IEC for better feeding practices.
Major Plan Schemes: Education
India on track to achieve MDGs relating to educational attainments.
Primary education for children up to age 14 a fundamental right.
Net Enrollment rate at primary level for girls and boys above 98%.
Right to education Act passed in 2009.
Providing education a social responsibility. Even private schools
have to reserve 25% seats for students from poorer sections.
A change in discourse on education: from access to quality of
education.
Major Plan Schemes: MNREGA 1
Right to work a legal right under National Rural Employment
Guarantee Act, 2005.
Job cards issued to 12.03 crore workers.
48% of the MNREGA beneficiaries are women.
The act has strengthen the bargaining power of the workers.
Real wages in agriculture have gone up by 18% to 45% in different
states.
Reduction in distress migration and elimination of attendant
problems
Major Plan Schemes: MNREGA 2
The scheme has raised agricultural wages but has not contributed to
increase in agricultural productivity as was envisaged.
Preponderance of earth-work related projects.
The quality of assets is a huge concern.
No possibility of skill up gradation.
Corruption in program implementation.
Twelfth Five Year Plan to launch MNREGA Phase-II with emphasis
on infrastructure, skill upgradation coupled with better monitoring.
Major Plan Schemes: Health 1
Progress on health indicators indicates that in the last three years
the rate of reduction of IMR and MMR has accelerated.
National Rural Health Mission launched in April, 2005.
NRHM based on Indian Public Health standards.
Strengthening of Sub-centers, primary health centers and
community health centers for primary and secondary health care.
Special programmes to encourage institutional delivery, pre natal &
post natal care
18 states with higher disease burden given higher allocations under
NRHM
Major Plan Schemes: Health 2
All vertical disease control programmes under NRHM.
Flexi funds to states, districts and dispensaries at different levels.
Investment in public health infrastructure complimented by health
insurance schemes for the poor (RSBY).
Involvement of private 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
2011-12 to 2.5% of the GDP by the end of the Twelfth Five Year
Plan.
National Skill Development Mission
Mission launched to provide training to workforce so that they could
get gainfully employed.
Mission to train 500 million youth in different vocations by 2022
Training to be provided across vocations covering industry, services
and agriculture.
Public and Private sector participation (PPP).
National Skill Development Corporation set up as a non profit
company with 51% private equity and 49% govt. equity.
Allocation for Major Programmes
(in Rs Crores)
Programme
2010-11
2011-12
2012-13
% increase in
2012-13 over
2011-12
MNREGA
40100
31000
33000
6.5
Primary
Education
(SSA)
17202
21000
25555
21.7
ICDS
8700
10000
15850
58.5
Mid-day Meal
8394
10244
11827
15.5
Drinking
Water &
Sanitation
9512
10000
14000
40.0
BRGF
7180
9890
12040
21.7
NRHM
13464
17127
20542
19.9
Rural Roads
11975
20000
24000
20
Financing Arrangements for Specific
Programmes
Education cess on direct income tax for funding primary
education.
Cess on petrol and diesel to take up road construction in
rural areas and national highways.
Universal service obligation fund (USOF) to improve
telephone connectivity in under served areas.
Cess on coal production to fund renewable energy
projects.
Area Development Programmes
Backward region grant fund.
Border area development programme.
Special package for Bihar, Odisha.
10% of the plan budget for North-Eastern states.
Special dispensation for Indian-Himalayan region states
Programmes for Weaker Sections
Special component plan for schedule castes.
Special component plan for schedule tribes.
Schemes for backwards classes and minorities.
Specific schemes for persons with special needs
Gender budgeting
Governance Reforms 1
Better implementation of programmes and improving accountability
is recognized as a prerequisite for inclusive growth.
Reform of governance and making government more responsive to
people’s needs and aspirations a major agenda for the Twelfth Five
Year Plan.
Legislative action for setting standards for public service delivery.
Reform of police administration.
Judicial reforms for speedy disposal of cases.
Strengthening Panchayati Raj institutions and urban local bodies.
Use of Information Technology for better governance.
Governance Reforms 2
Unique Identification Authority of India would provide a unique identity
number “AADHAAR” to each resident of the country.
AADHAAR is being created as a platform for public service delivery and
governance reforms.
Pilot projects have been undertaken to provide direct cash transfers to
beneficiaries of scholarship schemes, old age pension, delivery of LPG
cylinders.
AADHAAR is used for financial inclusion, valid for opening no frill accounts,
access through Micro-ATMs and business correspondents.
Integration of AADHAAR in PDS, MNREGA and other beneficiary oriented
programmes.
On complete roll out it is expected that poor people would be able to access
government programmes and there would be considerable savings by
elimination of corruption.
THANK YOU