The dismal case of slashing schemes and cutting funds

The dismal case of slashing schemes and cutting funds

Subject: Government Schemes

Context:

• Over the past three years, over 50% of existing central government sponsored schemes have been discontinued, subsumed, revamped or rationalised into other schemes.

What is the issue:

• The impact has been varied across Ministries. For example, for the Union Ministry of Women and Child Development, there are just three schemes now out of 19 schemes, i.e. Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.Mission Shakti itself replaced 14 schemes which included the Beti Bachao, Beti Padhao scheme.
• In the case of the Ministry of Animal Husbandry and Dairy, just two schemes remain out of 12. Additionally, the Ministry has ended three schemes which include Dairying through Cooperatives, National Dairy Plan-II
• For the Ministry of Agriculture and Farmers’ Welfare, there are now three out of 20 schemes i.e Krishonnati Yojana, Integrated Scheme on Agricultural Cooperatives and the Rashtriya Krishi Vikas Yojana.
• There is a lack of information on the National Project on Organic Farming or the National Agroforestry Policy.
• There are funding cuts in the Nirbhaya fund (2013) which focuses to improve the public safety of women in public spaces was allocated Rs. 1,000 annually (2013-16) but remains largely unspen
• The fertilizer subsidies have been in decline with NPK fertilizers allocation 35% lower than revised estimates in FY 21-22.
• The allocation for the Mahatma Gandhi National Rural Employment Guarantee Act went down by approximately 25% in the FY22-23 Budget, with the allocated budget at Rs. 73,000 crore.
• In the case of Garib Kalyan Rojgar AbhiyaanRs. 39,293 crore was spentagainst an announced budget of Rs. 50,000 crore.
• The Salaries of the Accredited Social Health Activists (ASHA) have been delayed for up to 6 months.
• Moreover funding for wildlife habitat development under the Ministry of Environment, Forest and Climate Change had declined along with the allocations for Project Tiger, which have been slashed.

What is the reason behind rationalisation:

• Various Finance Commissions including the 15th Commissionrecommended the rationalisation of CSS schemes.
• The rationalisation of the CSSs would ensure the optimum utilization of resources with better outcomes through area-specific interventions.
• This would also ensure a wider reach of the benefits to the target groups and result in greater autonomy and fiscal space available to states.
• In 2015, the Central Government constituted a sub-group of chief ministers on the rationalisation of CSS. 
• A reshaping of CSSs into 28 umbrella schemes was carried out by them with six ‘Core of the Core’, 20 ‘Core’ and two ‘Optional’ schemes.
• This was done in order to enhance the impact of the CSSs, maintain their budget allocation, and grant states flexibility on scheme implementation.

What need to be done:

• State governments should have the flexibility to ensure that the schemes benefit the targeted groups since they implement the schemes.
• There should be proper debates and dialogues with relevant stakeholders on the restructuring of the CSS.
• Blockages in budgetary processes in the schemes, such as delays in the flow of funds, and in releasing sanction orders for spending shall be addressed.
• There is a need to build capacity for an efficient civil service to meet today’s challenges by providing a corruption-free welfare system, running a modern economy and providing better public goods.
• Rather than having a target of fewer government schemes, we should raise our aspirations towards better public service delivery