budget-highlights_2011-12

Shadow Budget 2011-12

Presented by Yashwant Sinha and Uday Singh | AGRICULTURE 1

KEY FEATURES OF BUDGET 2011-12




CHALLENGES

To maintain a GDP growth rate of 9 percent and upwards

To make development more inclusive

To reform the fund absorption framework to set the stage for a double digit growth

To improve transparency and accountability in government systems at various levels

EXPENDITURE

CURRENT FUND ABSORPTION SCENARIO

Presently, 12 major schemes consume over 35% of the Central Plan Outlay while the remaining

44% of budgetary support is fragmented over 200 Central Sector Schemes Comprise in social

and affiliated sectors – Education, Health, Housing, Social Welfare, Women and Child Welfare,

SC/ST Welfare , Rural Development and Agriculture.

Multiplicity of Schemes leads to

o poor accountability,

o weak monitoring and evaluation,

o incompatibility of scheme design with local conditions across States, and

o misalignment of incentives of the administrative machinery

o Ad-hocism in transfers with political relationships between the Center and State

Governments implicitly playing a large in role results in inequitable horizontal

distribution of development outlays

Finally, allocation of funds for minor schemes comes at the opportunity cost of the major

schemes such as MGNREGS, ICDS, SSA, and NRHM. Currently, these schemes require sharing

between the Centres and States in ratios ranging from 90:10 to 65:35. The financial burden of

expanding the field staff for effective implementation falls on State Governments. Many of the

State Governments with poor fiscal capacities are not in a position to bear this additional

burden. Consequently, all these programs are plagued by varying degrees of staff shortages.

Center for Budget and Governance Accountability (CBGA) notes the following nationwide

vacancies of sanctioned posts in the 4 major programs:



o In ICDS, 16% of helpers positions and 22% of workers positions are vacant nationwide

o In NRHM, at the primary health center level, 16% of doctors are yet to be appointed

while 38% of the ASHAs have not received the stipulated 5 module training

o In SSA, 19% of the sanctioned teacher posts – the most critical element in the public

education program – are vacant

o In MGNREGS, 34% of the sanctioned posts for engineers or technical assistants who

assist in preparing plans for civil works are vacant; 28% of accountants and 23% of

computer assistants are also vacant.

These vacancies impair the absorptive capacity of outlays leading to unsatisfactory outcomes. It

is imperative that the financial burden of expanding staff be borne by the Union Government.

New Framework for Allocations from Consolidated Fund of India

Consolidated Fund of India

Alternate Framework for Absorption

Under the proposed framework, Central Government will focus on 19 Flagship Schemes in the

spatially partitionble sectors with residual outlays devolved to States through formula based

mechanism

Institutional Mechanism for Allocation

• In the non spatially partitionable sectors (Energy, Infrastructure,

Environment and Forests, Science and Technology, Transport,

Industries and Minerals, Railways, and Other General and

Economic Services), outlays will be budgeted to respective

Ministries in line with the 5 Year Plan sectoral allocations

• Central Government will finance, monitor and implement (in

close co-ordination with sub-district level entities) 19 flagship

schemes in the spatially partitionable sectors

• Rs.1,52,888 Crores to be devolved to States under NCA through

appropriate horizontal distribution formula

• Rs. 51,000 Crores of statutory FC Transfers (Grants – in – aid of

revenues) allocated as percentage of divisible tax pool

revenues

• Rs.10,000 Crores to be devolved to PRIs through a performance

based mechanism

• Automaticity built into allocations for Pensions, Debt Servicing,

and Revenue Expenditure for General Services, Defense

• Allocations for Defense Capital Outlay determined in close

consultation with Defense Services

• Subsidies for merit good – Oil, Food, Fertilizer – based on

prevailing political consensus

1 Does not include Devolution of Central Divisible Pool of Taxes

Expenditure Categories and Allocations in FY12

Total Absorption = INR 13,89,016 Crores 1

25%

12%

36%

Total

11%

16%

100%

Explicit Formula

Based Transfers

to States

Flagship Schemes

in Spatially

Partitionable

Sectors

Allocations for

Non Spatially

Partitionable

Sectors

Food, Fertilizer,

Oil and other

Subsidies

Defence, Police,

Debt, Pensions4,95,894

1,66,395

1,58,695

3,50,000

2,18,031

Given this context, we propose new framework for allocations from the Consolidated Fund of India to

strengthen fiscal federalism:



the Central Government will entirely finance 19 major schemes (henceforth, referred to as

flagship schemes) in subject matters that are in State or Concurrent list (Rural Development,

Agriculture, Urban Development, Social Security, Health Care, Education) for Rs.3,50,000 Crores

in FY12

For subject matters under the Centre or Concurrent list or matters concerning basic and applied

research (Energy, Infrastructure, Environment and Forests, Science and Technology, Transport,

Industries and Minerals, Railways, Higher Education) and Other General and Economic Services),

outlays will be allocated to respective Ministries in line with the 5 Year Plan sector specific

targets – Rs.62,288 Crores

Remaining outlays of Rs. 2,18,031 Crores will be directly transferred to State Governments

through formula based mechanisms:

o Rs.1,52,888 Crores transferred to State Governments under Normal Central Assistance –

Horizontal distribution determined by appropriate formula that gives weightage to low

fiscal capacities, and higher poverty head count rations

o Rs.10,000 Crores transferred to PRIs through a performance based incentive mechanism

to finance public amenities on a priority basis

o Rs.51,000 Crores to States as grants in aid of revenues as per the terms of the 13th

Finance Commission

Under the proposed alternate framework, Planning Commission’s role will responsible for

Overall perspective planning and monitoring cum evaluation of the flagship schemes.

Coordination with the Finance Ministry to determine annual budgetary support for subjects in

the Union list




Role of Planning Commission

Planning Commission’s role confined to perspective planning, and sectoral allocations under 5

year Plans for subjects in the Union List


Total Absorption = INR INR 13,89,016 Crores 1

Explicit Formula

Based Transfers

to States

Flagship Schemes

in Spatially

Partititioable

Sectors

Allocations for

Non Spatially

Partititionable

Sectors

Food, Fertilizer,

Oil and other

Subsidies

Defence, Police,

Debt, Pensions

Sector Ministries

FY12

Rs Crore (%of Total

Expenditure)

Plan Expenditure (Allocations as per XI th 5 Year Plan) 1

Science and Technology Atomic Science and Research,

Biotechnology, Space, Earth

Sciences, Biotechnology

17,440 (1.33%)

Industries and Minerals Textiles, Commerce, Chemicals and

Fertilizers, Heavy Industries and

Public Enterprises, Mines, MSME

9,983 (0.76%)

Energy Coal, Power, Petroleum and Natural

Gas, New and Renewable Energy

1,600 (0.12%)

Transport Railways, Roads, Civil Aviation,

Shipping

11,600(0.89%)

Other General Services Planning, Statistics and

Implementation, Law and Justice,

5,766 (0.44%)

Other Economic Services Communications and Information

Technology, Corporate Affairs, I&B,

Consumer Affairs,

4,600 (0.35%)

Other Social Services Higher Education, Environment and

Forests

11,3000 (1.%)

Total 62,288 (4%)

Non Plan Expenditure 1

Other General Economic ,

Social , Services 1

58,681 (4.5%)

Non Plan Capital 32,890 (2.5)%

UT Expenditures 3,345 (0.26%)

Grants to Foreign Govts 1,776 (0.14%

Total 96,406 (7%)

Total 1,58,695 (11%)

1 Subject to reduced Gross Budgetary Support through Off-Budgetary Financing Mechanisms

Total 100%

16%

25%

11%

123%

36%



Central Government’s role in spatially partitionable sectors limited to 19

Flagship schemes

Consolidated Fund of India


25% of total budgeted expenditure will be allocated for 19 Centrally Sponsored Schemes in

Rural Development, Health Care, Women/Child Health, Agriculture, Irrigation, Social Security,

ICT and the National Highway Development Program


Total Absorption = INR 13,89,016 Crores 1

36%

Total 100%

16%

25%

11%

12%

Explicit Formula

Based Transfers

to States

Flagship Schemes

in Spatially

Partitionable

Sectors

Allocations for

Non Spatially

Partitionable

Sectors

Food, Fertilizer,

Oil and other

Subsidies

Defence, Police,

Debt, Pensions

Employment Gurantee Scheme

Elementary Education

Rural Infrastructure

Health

Social Security

Women and Child Development

Irrigation

Urban Development

ICT

Agriculture

Roads

20%

14%

13%

9%

9%

8%

7%

7%

6%

3%3%

Rs.3,50,000 Crore

Ministry SchemesScheme Thrust

RD MNREGA Unskilled labor jobs

HRD SSA, MDM Universalization of

elementary

education

Health NRHM Provision of Health

Care Services

RD – Rural

Infrastructure

PMGSY, IAY, RGGVY,

National Drinking

Water Scheme,

Rural , Telephony

Improve rural

infrastructure, create

multiplier effect

Roads &

Transport

Capital Outlay for

Roads/Bridges

Expansion of Transport

Infrastructure

Agriculture New Insurance

Scheme,

Extension Services

Scheme, Mall Cum

Mandi Scheme

Boost Productivity

Women, Child

Health

ICDS Nutrition, Education,

Health Care for

Children below 6,

lactating mothers

Social Security NSAP, RSBY Social and Health

Insurance

ICT National E-

Governance

Scheme

Improve Governance,

reduce leakages

Urban

Development

JNNURM Urban Low Income

Housing Boost

The Central Government will finance only 19 Flagship schemes for Rs. 3,50,000 in the spatially

partitionable sectors of rural development, health and family welfare, urban development,

agriculture, human resource development, women and child care, irrigation, rural

infrastructure, roads, and ICT infrastructure to improve implementation mechanisms.

In addition to 100% financing, the Centre will intensely monitor and evaluate the schemes

Fiscal outlays for the 19 Flagship schemes have been budgeted basis enhanced output targets,

inflation adjustment of unit costs, revised intervention norms and greater contribution from the

Centre



Performance Incentive Mechanism for PRIs Under the terms of the XIIIth Finance Commission, approximately 9,113 Crores will be transferred to

PRIs in FY12 as general basic and general performance grants. Horizontal distribution has been

determined primarily on the basis of population (50% weightage). SC/ST proportion has been used as a

proxy for measuring the level of deprivation in the absence of data.

Source: XIIIth Finance Commission Volume 1 (4)

Given this context, we propose that in FY12 Rs.10,000 crores be transferred to PRIs as per the following

mechanism :

A nationwide census will be conducted to develop a snapshot of public amenities in all PRIs.

These will include last mile physical connectivity, drinking water availability at household level,

sanitation facilities, local storage facilities for agri-produce, level of electrification, access to

assured irrigation, public health facilities, ICDS facilities, and elementary education facilities.

Basis this snapshot, a comprehensive deprivation index will be developed to form the basis of

horizontal distribution to PRI bodies.



The comprehensive deprivation index will also prioritize a list of works that can be taken up by

PRIs for execution after making adjustments to the priority list for projects that will be

eventually taken by through the Central Flagship Schemes or State Government programs.

Starting in FY12, funds will flow to PRIs on the basis of the deprivation index and prioritized Fund

Flow in the follow on years will be subject to satisfactory completion of projects for which a

comprehensive monitoring and evaluation system financed by the Centre will be put in place.

Thus, PRIs which complete projects satisfactorily will avail more follow on funds thereby

creating an effective performance based incentive system.

AGRICULTURE

In order to control supply driven inflation, the following agricultural interventions are required

Strengthening the backend and front end of Agricultural supply Chain

o Farmer Mall cum Mandi in every block in PPP mode through a budgetary support Rs

2,682 crores

Revamping Agri-Extension network and ensuring the last mile reach of good agricultural

practices(GAP) through

o Centralized Online Agricultural video library on GAP will be prepared by central research

institutes

o Farmers Library in all rural districts and Agri-Extension Vans to ensure last mile reach of

GAP

Assuring irrigation to every field

o Formation of National irrigation authority of India (NIAI) to implement major and

medium irrigation projects on SPV & PPP/BOT mode with an initial support of Rs 18,000

crores

o Pradhanmantri Sianchi Yojna to irrigation medium and minor irrigation projects limited

within the state boundaries with a budgetary support of Rs 14,000 crores

o Paani Panchyat for the micro management of irrigation water and Potable water

Kisan Credit Card (KCC) to all the Farmers

o Through bank linked Farmers Club

o For the year 2011-12 the target is Rs 4,38,178 crores

Income linked insurance to individual farmers

o Insurance premium will be equally contributed by central government, state

government and farmer

o For financial year 2011-12 the premium contribution from central government will be Rs

2,059 crores


Presented by Yashwant Sinha and Uday Singh | Project Based Ministries 9

Project Based Ministries

Approximately Rs.37,000 crore of plan expenditure across project based ministries can financed

through off-budgetary market based mechanisms (without compromising underlying public policy goals

) and restructuring of loss making PSUs and other Government controlled service outfits. These are

described below:

Project Based Ministries

Savings through Off-Budget Financing Mechanisms

Budgetary Support can be reduced by Rs.37,000 Crores in project based sectors without

compromising underlying targets by evolving market based financing mechanisms......

* Savings for Projects in Shipping, Textiles, Pharmaceuticals, MSME, IT, Civil Aviation, Commerce, Tertiary Care, Higher Education, Heavy Industries & Public Enterprises,

Off-Budget Mechanisms

80% of Construction value can be financed through PFI Mechanisms

based on transparent, competitive bidding in NHDP Program; Toll

based recovery

Create SPV for Dedicated Freight Corridor, Freight operations

unbundled from IR

Non Core Activities outsourced through franchise model to

increase revenues

Prasar Bharati privatized with GoI stake set at 75%; Transfer

pricing mechanism for use of Prasar Bharat services by GoI

Charge for services provided; Evolve SPVs for specific projects

.....which will allow fiscally sustainable expansion of key social sector programs.

10% reduction from FY11

13,000

5,000

7,000

10,000

22,000

2,000

FY 12 B.E.

Postal Services

133,791

Others*

Railways

I&B

Roads

Normal Increase in FY12

FY11 B.E. 148,791 +15%

Savin

gs

ROADS

In view of the emergence of a competitive market for construction and maintenance of roads,

80% of the construction activity by value to be financed by Private Finance Initiatives (PFI) – BOT

(toll) and BOT (annuity) based contracting mechanisms

Competitive bidding process to be undertaken for all construction activity under the National

Highway Development Program. All financial parameters (including level of Government support

for viability gap funding) will be fixed through a transparent and competitive auction based

bidding process

Projects that fail to get sold through the BoT (Toll) based model will be developed through BoT

(Annuity) based model with financial parameters arrived at through a competitive bidding

process


Presented by Yashwant Sinha and Uday Singh | Comprehensive ICT Project to Improve Governance

10

Maintenance of existing highways will also be contracted out under ROMT (Renovate, Operate,

Maintain, and Transfer) model with a fraction of maintenance costs recovered through tolls

Estimated budgetary savings – Rs. 9700 Crore

INFORMATION & BROADCASTING

Prasar Bharti to be publicly listed with GoI stake set at 75%

Prasar Bharti to compete with other broadcasters in the mainstream space. All GoI transactions

to be at competitively determined rates


INDIAN POSTAL SERVICE

Inefficiencies to be reduced through PPP projects, thereby achieving budgetary savings

Non-core activities to be outsourced to established private sector players with appropriate

revenue sharing activities

Core services with a social component to be handled in-house


RAILWAYS

Development of dedicated freight corridors to be funded through the SPV route, with

investment recouped entirely through freight based revenues in high traffic zones.

Freight operations to be clubbed under a PSU independent of IR control with division of assets


Savings under Other Economic, General, and Social Services

Estimated budgetary savings – Rs. 13,000Crore

Comprehensive ICT Project to Improve Governance

Government schemes are plagued by high levels of inefficiency. These include

suboptimal to under utilization of allocated funds,

under achievement of output targets,

poor planning that leads to mismatch between unmet need and allocation,


Presented by Yashwant Sinha and Uday Singh | Comprehensive ICT Project to Improve Governance

11

leakages of funds/benefits meant for intended beneficiaries,

deadweight administrative and transaction costs.

The Government will need to focus on improving efficiency of welfare related expenditure by

embracing technologies, strengthening public accountability systems, and creating outcome linked

incentives/disincentives of agents across the delivery chains. We flag issues and outline an approach to

dramatically improve outcomes over a 3 year period.

The Technology dimension to reduce inefficiencies in welfare schemes must address 4 key issues:

ICT based solutions to address leakage induced by malpractices connected with the final

transaction point

Transition to a e-payment platform for schemes involving elements of cash transfers to

beneficiaries

Development of an integrated MIS/ERP back-bone for major flagship programs

Electronification and increased automation of payments through various Government based

entities in the delivery chain for schemes involving delivery of an array services (NRHM, SSA,

ICDS)

Accordingly, Rs.15,000 crores has been allocated in FY12 for implementing a national e-governance

project:

Component FY12 Outlay

UID Infrastructure Rs.3,500

Computerization of Post Offices Rs.5000

PoT Authentication at FPS, GP Attendance Rs.2000

Smart Cards for Households Rs.2000

Computerization of Government service centres

in all Gram Panchayats

Rs.3000

Total Rs.20,000

Provision for broad-band infrastructure accounted for under National Rural Telephony Project.


Presented by Yashwant Sinha and Uday Singh | INCLUSIVE DEVELOPMENT 12

INCLUSIVE DEVELOPMENT

KEY FEATURES

Overall BPL quota to be increased to 42% of the total population, thereby minimizing exclusion

errors

BPL categorization for rural households must be implemented as per the schema outlined in the

Saxena Committee Report (7) based on the principle of automatic exclusion and inclusion

followed by a grading system to identify the remaining BPL households.

All identified BPL households to be issued UID linked BPL smartcards to eliminate the problem of

ghost cards

Universalization of services for

o Primary health care

o Elementary education

o and for meeting nutrition, immunization, and counseling needs of children less than 6

years of age, lactating mothers and pregnant women

100% central funding for 19 flagship schemes

FOOD SECURITY

The PDS in its current form has failed to meet its primary objective of providing food security to

the poorest sections of the society. Less than 30% of the subsidized grain reaches the poor

households through the PDS.

For the 10 Crore poorest households, direct cash transfer is the preferred route. Direct cash

transfers at Rs. 600 per month to cover the poorest 40% of the population (BPL category) to

purchase 35 kgs of foodgrains per month at market rates

35 kg per household at subsidized rates (Rs.8.3/kg for wheat and Rs.6.1/kg for rice) every month

through the PDS to 6 crore households that are marginally above the poverty line (Vulnerable

Category)

Total budgetary outlay – Rs. 100,000 Crore (70,000 Crore in direct transfers, 30,000 Crore to

PDS)

SOCIAL SECURITY – PENSION SCHEMES



Coverage expanded in view of expansion in list of BPL households

Total budgetary outlay (Old Age pension scheme, National Family Benefit Scheme, National

Widow Pension Scheme, National Disability Pension Scheme, National Maternity Benefit

Scheme) – Rs. 25,000 Crore

WOMEN AND CHILD CARE - ICDS

Universalization of ICDS services in compliance with Supreme Court Guidelines

o Enhanced Outlays for SNP to for normal and malnourished children in 6 -72 month age

bracket, nursing and lactating mothers, adolescent women

o Enhanced outlays for maintenance costs for Anganwadi Centers including outlays

100% filling of positions for AWW, AWW helper, CDPO, CDPO Assistant and Supervisor

BPL as a criterion for eligibility under ICDS will be dropped

Estimated budgetary outlay – Rs. 25,000 Crore

RURAL DEVELOPMENT – MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME

(MGNREGS)

Plagued by poor design and poorer implementation. Highly inefficient dole transfer program.

Gram Panchayats have limited ability to plan projects, as a result of which projects exist only on

paper

40% of the labour budget for MGNREGS to be routed through national rural schemes (Bharat

Nirman programs), and 30% to be routed through State Government projects implemented by

line departments at the district level

Budgetary Allocaton – Rs. 65,000 Crore

RURAL INFRASTRUCTURE

Labour for PMGSY, National Drinking Water Scheme, and RGGVY to be routed through

MGNREGS

RGGVY norms to be redefined as follows:

o Provision of 3 Phase electricity to rural habitations

o Household electrification of BPL household to include 4 connection points to run a

bundle of appliances

National Drinking Water Scheme to be expanded to provide

o Household water connection with subsidy for BPL household



o Water treatment solutions for Easter States grappling with Arsenic contamination

Scheme Name 2005-2009 Target Unmet Need as of Dec. 2010 Measurable and Monitorable

Targets for FY12

FY12

Budget

Outlay

Dimension: Rural Roads

Pradhan Mantri

Gram Sadak Yojana

(PMGSY)

To construct 1,46,185 kms

of new rural roads, connect

66,802 habitations with all

weather roads

To upgrade and renew

1,94, 132 kms of existing

rural roads

• 2,82,796

unconnected habitations

•~20,000 kms of road needed

for linking unconnected

habitations to core road

network

• 20,000 kms of road

length for connecting habitations

• 5,000 kms of existing

roads to be upgraded

• 5,000 kms of existing

roads to be renewed

5000 GBS

plus.12,000

as NABARD

loan

Dimension: Rural Electrification

Rajiv Gandhi

Grameen

Vidyutkaran Yojana

(RGGVY)

•Electrification of 1,25,000

un-electrified villages

•Free connections to 2.43

Crore BPL Households

•Intensive electrification of

4.62 L electrified villages

•29,973 unelectrified villages

•1,88,465 villages to be

intensely electrified

•1.09 crore BPL HHs without

electricity connections

•~3.5 crore non BPL HHs

without connections

•Electrification of 29,973

unelectrified villages

•47,116 electrified villages to be

intensely electrified

•50L BPL HHs to be given free BPL

connections

4,196

2,073

1,100

Total=

7,369

Dimension: Drinking Water

National Drinking

Water Program

• 1,45,644 quality

affected habitations

• 375 uncovered

habitations

1,45,644 quality affected

habitations

375 uncovered habitations

Water treatment solutions for

remaining 1,45,644 habitations;

Provision of drinking water supply

upto household level

12,000

RURAL TELEPHONY

11,46,000 kms of optical fibre network to be laid along the road network to connect 374552

rural households to the core network over a 2 year window



This would incur an incremental cost of RS. 9000 Crore that would be met through MGNREGS

Bandwidth, upon completion, to be leased to telecom service providers through appropriate

sharing models to create revenue streams and recoup costs

National agency to be created to build the network in mission mode

HUMAN RESOURCE DEVELOPMENT

Elementary Education

Focus on improving student learning outcomes and increasing enrollment across the elementary

education cycle – incremental allocations of Rs.5000 crores

Institutionalization of accountability by setting up school performance management systems –

Rs. 5000 crores

Compliane with provisons of RTE Act - Rs.30,000 Crores

Total Budgeted Estimate – Rs.40,000 Crores

RURAL HOUSING

Cash transfer through IAY inefficient, vulnerable to leakage and doesn’t result in commensurate

creation of assets. Rural Housing implementation methodology to borrow from JNNURM, with a

more proactive role by the government.

Implementing agencies would be invited to prepare Detailed Project Reports (DPRs).

The DRDAs would be the nodal agencies that would be in charge of overseeing the selection of

beneficiaries, inviting DPRs from implementing agencies and connecting beneficiaries to housing

finance options. The centre would release funds upon receiving DPRs.

Standard and modular technologies would be emphasized upon in the guidelines to make the

effort cost-effective.

Cluster based approaches would be emphasized upon in the guidelines, so that facilities such as

drinking water, internal roads, drainage and cattle sheds could be provided in a cost-effective

fashion.

Accordingly, Rs.15,000 crores has been allocated in FY12 to build 2.5 million residential units.

Landless BPL households will be given priority in the beneficiary list.

URBAN HOUSING

25 million households to be provided access to affordable housing over a 10-year period. 2.5

million households to be provided access to affordable housing this year



Two-pronged approach to urban housing.

o For 20% of 2.5 million households: Rental subsidy of upto Rs. 1000 per month for

households from the lowest economic strata (monthly household income < Rs. 6000)

o For the rest: Households above the lowest economic strata to be provided with

subsidized housing, with the average subsidy per housing unit to be Rs. 1,00,000 (for a

unit costing Rs. 3.5 lakhs)

Interest subsidy to be maintained at current levels

Estimated budgetary outlay of Rs. 20,834 Crore (Rs. 434 Crore in rental subsidy, Rs. 400 Crore in

interest subsidy, Rs. 15000 Crore towards JNNURM sub-mission 2, Rs. 5000 Crore towards

JNNURM sub-mission 1)

PRIMARY HEALTH CARE

Long term vision of bringing spending upto 2-3% of the GDP, hindered because of poor

absorptive capacity

Emphasis on improving grassroot infrastructure – primarily skilled manpower – to improve

absorptive capacity

Emphasis on capacity building of rural health workers

Budgetary outlay of Rs. 40,000 Crore

RASHTRIYA SWASTHIYA BIMA YOJANA

All BPL families (11 Crore families) to be enrolled under Rashtriya Bima Yojana

Hike in insurance coverage to Rs. 45,000

Budgetary outlay of Rs. 3265 Crore

Table 4: Flagship Schemes in Spatially Partitionable Sectors (INR Crore)

Ministry/Sector Scheme FY12

B.E.

Output Targets/New Norms Goals

1. Rural MNREGS 65,000 Inflation adjustment of minimum wage rates; Economic Security for



Development 70% of work to be generated through convergence

with national schemes for rural infrastructure, and

State Government schemes implemented by line

departments;

6.12 crore households to be provided 60 days of work

in FY12

Poor Households

2. Human

Resource

Development

Sarva

Shiksha

Abhiyaan

40,000 Compliance with RTE Act 2009; Increased allocations

for improving quality of education and learning

outcomes

Universalization of

elementary education

3. Health National

Rural

Health

Mission

35,000 Universalization of primary health care to cater to

needs of 60% of the population

Provision of Health Care

Services

4. Rural

Infrastructure

– Roads

Pradhan

Mantri

Gram

Sadak

Yojana

Rs.6000 crore

plus Rs.12,000

crore IEBR as

NABARD loan

20,000 kms of road length for connecting habitations

5,000 kms of existing roads to be upgraded

5,000 kms of existing roads to be renewed

Connecting rural

habitations to main road

network

5. Roads &

Transport

National

Highway

Developme

nt Program

8000 Completion of targets under National Highway

Program;

Use of PFI (BOT (toll) and BOT (annuity) to finance

80% of construction activity by value in FY12;

All financial parameters to be determined through

competitive bidding process

National Highways

6. Human

Resource

Development

MidDay

Meal

Scheme

15,000 Expansion to cover all students undergoing

elementary education in Government aided schools

Free Meals to children in

public schools

7. Women, Child

Health

ICDS 25,000 Univeraslization of ICDS services to cater to needs of

70% of population; BPL as criterion for eligibility

dropped

Nutrition, Education,

Health Care for Children

below 6, lactating

mothers



8. Rural

Infrastructure

– Rural

Housing

Indira

Awaaz

Yojana

15,000 2.5 million rural dwelling units to be constructed

through contracts ; DRDAs to be nodal agencies for

implementation;

Unit cost per dwelling revised upwards to Rs.60,000;

Priority for landless BPL beneficiaries;

Subsidized Rural Housing

for BPL

9. Agriculture New

Schemes

12,000 New Scheme for Extension Services

New Scheme for creating supply chain infrastructure

– mandis

Enhanced outlays for basic and applied research

Support for Agriculture

10. Rural

Infrastructure

– Power

RGGVY 5,000 Electrification of 29,973 unelectrified villages

47,116 electrified villages to be intensely electrified

50L BPL HHs to be given free BPL connections

Redefinition of intense electrification norms

Electrification of rural

habitations

11. Urban

Development

JNNURM 20,834 New norms for creating affordable housing stock for

urban poor

Urban Development and

Services for Urban Poor

12. Social Security National

Social

Assistance

Program

30,000 Cash transfers to vulnerable sections of society for

old age pensions, life insurance cover, health

insurance, pension of old age widows

Social Security for Poor

Households

13. ICT E-

Governanc

e Scheme

16,500 UID Generation, Developing ERP/MIS for flagship

schemes, PoT Authentication at Post Offices and PDS

outlets, Electronification of payments through

Governemnt channels, Computerization and

connectivity of service Centre points

ICT Technologies to

increase efficiency of

welfare schemes

14. Irrigation AIPB,

Pradhan

Mantri

Snchai

18,000 Last Mile Irrigation Connectivity, and Support for

Major and Medium Irrigation



Yojana

15. Other

Coordinating

and Research

Activities

10,000

16. Rural

Telephony

New

Scheme

9000 Laying of optical fibre network to connect all rural

habitations across India along the core rural road

network

budget-highlights_2011-12

Documents

vacant o

vacant nationwide o

major schemes

shadow budget

o poor accountability

minor schemes

flagship schemes

multiplicity of schemes