Union Budget 2013: Lip service for hungry mouths

This Budget has liberal doses of rhetoric without substance to offer the social sector. It maintains that “higher growth” is the “mool mantra” to achieve “inclusive development”. But the truth is the Budget perpetuates what it claims to tackle: “centuries of neglect, discrimination, and deprivation....” Budgets are one of the most effective ways to evaluate the political priorities of a government. This one demonstrates little concern for ordinary people. Allocations need to be looked at after accounting for inflation. Outlay for rural development has fallen; for MGNREGA, it has remained static but reduced in real terms over the last three years. The insignificant increase in food security bill allocation demonstrates lack of seriousness to increase food entitlements. Seemingly higher allocations for ICDS (11%) will barely cover inflation and certainly not allow us to increase coverage, despite the PM calling the malnourishment of 40% of our children a “national shame”. The elderly suffer from neglect, another national shame; 94% of the workforce is unorganized and is vulnerable during sickness and old age. The rhetoric—“a comprehensive social security package for the unorganized sector”—comes without real budgetary allocations.The FM makes it worse by saying that Direct Benefit Transfer “has captured the imagination of the people, especially the poor”. Almost all those receiving money today were already getting it as cash in the bank earlier, and the Aadhar-based payment has had almost 0% success in most districts. Finally, budgets are about money. At 16.4%, India has one of the worst tax-to-GDP ratios and stands 77th in terms of percentage of GDP spent on the social sector (0.02%). The problem is political will. In the run-up to elections, a party that has identified itself with the aam admi has to show commitment in real terms.The writer is a NAC member.Budget 2013> Union Budget 2013> Economic Survey