Social sector gets raw deal in Budget

Nirmala Sitharaman's second budget presentation and the second budget of the second term of Narendra Modi government has generated mixed feelings. The higher allocation to the social sector contributes to the social development of the country and in turn, to the alleviation of the Human Development Index.

Overall, the budget failed to adequately provide for the sectoral allocations, though some of the initiatives are encouraging. Predictably, the social sector got a significant boost in the Budget 2020.

There is no significant hike in the education sector. The Union Budget allocated Rs 99,300 crore for the education sector in 2020-21, an increase of Rs 5,000 crore from Budget 2019 budget and Rs 15000 crore was the outlay for the education in Budget 2018.

The announcement of the new education policy and proposal for setting up the National Police Varsity and the National Forensic Varsity are a welcome step.

In the bid to make India the skill capital of the world, the Finance Minister has separately allocated Rs 3,000 crore for skill development. This will help to acquire new skills and boost per capita income and GDP, albeit rather slowly.

The FM in her speech mentioned to prepare a blueprint to attract foreign direct investment in the education sector. The present FDI policy allows up to 100 per cent FDI in the education sector under the automatic route.

However, the country's 'not for profit' structure of the education sector, non-permission of FDI in trusts and societies, restrictions on the appointment foreign nationals as trustees and members and other regulatory hurdles are keeping the Foreign investors at bay. Overhauling and rationalizing the FDI policy should be a high priority.

Successive governments have made applaudable efforts for the welfare of women and child. The allocation of Rs 30,000 crore for the Women and Child Development, a significant increase over the Budget 2019.

The allocation for women and child in Budget 2019 stood at Rs 29,000 crore while it got Rs 24,700 crore from Budget 2018. The outlay for the National Nutrition Mission known as Poshan Abhiyan, has been increased to Rs 3700 crore from Rs 3,400 crore in Budget 2019.

This is a meagre but positive measure to arrest the stunting of children and also improve India's dwindling rank in the global hunger index. The ambitious 'Beti Bachao, Beti Padhao' scheme which has yielded tremendous results, has been allocated Rs 220 crore compared to Rs 280 crore in last budget and Rs 200 crore in the 2018 budget.

Given the demographic trends, the country's population is becoming larger, and the dropout rate of girls is increasing. Surprisingly, the fund allocation for FY 2020-21 had to take a cut.

Healthcare sector got its share of Rs 69,000 crore in Budget 2020, an increase of Rs 7,500 crore from Budget 2019. The proposal for expansion of the health insurance scheme Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana is laudable and can boost the health sector.