New Delhi: India needs to improve its delivery mechanism by introducing modern technologies and doing away with red-tapism as outlays on social sector schemes are not being translated into outcomes, says the Economic Survey 2013-14.
"The final challenge is the delivery mechanism. The outlays for the different schemes have not often translated fully into outcomes owing to the poor delivery mechanism," the Economic Survey pointed out.
According to the document, leveraging modern technologies for efficient delivery of programmes, removing the multiple layers of governance, simplifying procedures and offering greater participatory role by beneficiaries can help in creating a better delivery mechanism.
Besides, it also suggested the greater role of the private sector in improving the outcome of spending on the social sector by the government.
"...Bigger private-sector participation can come in handy in the delivery of social-sector programmes. While this can help in quick delivery for beneficiaries, it can also help in detecting 'ghost' beneficiaries and overlapping of beneficiaries," it suggested.
According to survey, the Direct Benefit Transfer (DBT) to bank account is one such example.
The payment through e-musters under the Mahatma Gandhi NREGA is another. But a lot more can be done with the help of the private sector which has shown itself a little reluctant to participate in the government's social-sector programmes on account of payment and procedural delays.
It was suggested that to avoid such delays, multiple layers of governance have to be reduced and intermediaries avoided.
It was also suggested in the document to provide more information, rights and accountability to Panchayati Raj Institutions (PRI) to improve delivery of social sector schemes.
"There is a need for greater degree of accessibility to information for the public, especially about the role, rights and entitlements of the PRIs. Demanding accountability from the public delivery system by the general public will also make the authorities more responsive," it added.
The Survey pointed out that the performance of the different schemes is varied and a major revamp/reorganisation of the myriad schemes and convergence of some is needed along with a zero budgeting approach for maximum efficiency gains.
According to the document, the government spending on the social sector fell in recent years but it has picked up again in 2013-14. The central government expenditure on social services as a percentage of total expenditure picked up to 12.83 percent in 2013-14 from 11.83 percent in 2012-13.
According to survey, another challenge is of dealing with multiple and sometimes overlapping programmes.
It pointed out that a mere mark up each year in the Budget for existing programmes or starting some new programmes will not suffice.
"What is needed is a 'zero budgeting' approach with a revamp, reorganisation and convergence of social-sector schemes with a minimum size prescribed for the schemes," it suggested.
It said that in order to improve India's Human Development Index, the country needs to unleash the potential of the demographic dividend, which is the biggest challenge.
Already the average age in some states like Kerala (33), Goa (32.3), Tamil Nadu (31.3), Himachal Pradesh (30.4), Andhra Pradesh (29.3), Punjab (29.9) and West Bengal (29.1) has surpassed the average age (29 years) of 2020.
Therefore, timely action for equipping the young population with high expectations with health, education, adequate skills and security is of paramount importance, it added.
As per the document, massive efforts are needed in the form of investment in social infrastructure, skill development and empowerment of women to improve HDI and capitalise on demographic advantage.
According to the survey, total central government expenditure on social services including rural development (Plan and non-Plan) and the Pradhan Mantri Gram Sadak Yojana (PMGSY) fell from 18 percent in 2010-11 to 15.79 percent in 2011-12 and 15.12 percent in 2012-13. It picked up to 16.70 percent in 2013-14.
The previous government had cut the total Plan expenditure to Rs 4,75,532 crore for 2013-14 compared to the budget estimates of the Rs 5,55,532 crore, for keeping a tab on the fiscal deficit. This was second year in a row when UPA government cut Plan spending substantially to keep fiscal deficit under control.
