by S.K.Shanthi, Director, India Development Foundation, New Delhi

1. India Development Foundation
Budget 2016-17
March 5, 2016
Social Sector Focus
S.K. Shanthi

2. Major Takeaways
GFD at 3.5% of GDP
Revenue Deficit at 2.3% of GDP
Two out of Nine Pillars mentioned by FM
• Social Sector including Healthcare: to cover all under
welfare and health services;
• Education, Skills and Job Creation: to make India a
knowledge based and productive society;
• Increase in total central outlay 0.03% of GDP

3. Proposals for Social Sector (2016-17)
Social
• MGNREGA Rs. 38,500 crore
• Swacch Bharat Abhiyaan: Rs.9,500 crore.
• LPG for female members of family: Rs 2000 crore for 5 years for BPL families.
• Crop Insurance Scheme with premium @1-1.5%
Health
• A new health insurance scheme to cover upto 1 lakh per family. For senior citizens
additional cover of Rs 30,000
• National Dialysis Service Program to benefit 2.2 lakh renal patients added every
year in India.
• 300 generic drug stores to be opened
Education
• Promoting entrepreneurship among SC/ST through schools and colleges: 500
crore
• 1500 multi-skill development centres to skill 1 crore youth in 3 years: 1700 crore
• 62 new Navodaya Vidyalayas to provide quality education. The coverage will be
100% of all districts.
• Digital literacy Mission to be launched to cover 6 crore additional rural
households

4. CENTRAL PLAN AND NON-PLAN EXPENDITURE ON SOCIAL
SERVICES – Per Cent of GDP
Source: Budget Document (MOF,
GOI)

5. THE STATE GOVERNMENTS EXPENDITURE ON SOCIAL
SERVICES – Per Cent of GDP
Source: RBI

6. SECTOR-WISE EXPENDITURE OF CENTRAL SECTOR BUDGET –
Per Cent of total Central Outlay
Source: Budget Document (MOF,
GOI

7. Comparison with OECD Countries
During the period 2007-2014
Average spending on Social Sector in OECD
countries: 22% of GDP
Highest – France: 32.5%
Lowest – Mexico: 8%
India – highest: 7.67% of GDP in 2014
India –Average during 2007-2014: 7.03%
HDI – India Ranks 130
Outlays on Social Sector need to increase since it
has a direct bearing on HDI

8. In Conclusion
• Social Sector development is largely in the domain
of states and local bodies – Are they up to the
task?
• We need a scientific/evidence based approach to
social sector policy making
• Crop Insurance ?
• School drop out problem (HDI indicator) OGIP
• ‘Sunset clause’ must apply to beneficiaries rather
than schemes. After 10, 15 years if someone is still
BPL, we must make an effort to find out why and
address those issues.

9. THANK YOU