Part of: Mains GS Paper II- Government interventions in key sectors
Key pointers:
Background:
Studies have shown that over 90 per cent of boys and girls across the country were deficient in Vitamin D while the number ranged between 90-97 per cent for school children in Delhi.
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TOPIC:General Studies 2:
- Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
- Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.
Introduction:
A nation’s development and growth is gauged by the health of its population. The fact that even after 70 years of independence, 80 per cent of the Indian population is not covered under any health insurance scheme and the average cost of in-patient treatment is almost half of their annual household expenditure is bound to affect India's growth. The announcement of the National Health Protection Scheme (NHPS) under the Ayushman Bharat Programme, in the Union Budget 2018-19, is timely and can be a trigger to achieving the country’s growth aspirations.
Challenges:
The programme will cover 40 per cent of the population — 50 crore people in the first phase.
Way ahead:
Improving clinical and operational efficiencies in the supply side:
Standardisation in clinical practice and other processes needs to be implemented through:
Addressing workforce woes:
In addition to strengthening the number of healthcare professionals, we need focused skilling, re-skilling and up-skilling programmes for existing as well as additional workforce. Three key steps in this direction would be:
Addressing grievances:
Connecting the dots:
TOPIC:
General Studies 2:
General Studies 3:
Introduction:
Most federations in the world have arrangements for the mobilisation and devolution of resources. In India, the Constitution provides for the appointment of a Finance Commission every five years to recommend methodology to share resources such that the fiscal space of the constituents, especially the States, is well protected.
The terms of reference of the 15th Finance Commission are thus a matter of utmost importance to the resources available to the States of India.
Concerns:
The terms of reference of this Commission have created apprehension among States about principles of fairness and equity in the distribution of public resources for development.
Vital for unity:
The foremost objective of the Finance Commission is an equitable distribution of financial resources between the two units of the Union. In the allocation of duties (7th schedule of the constitution) between the Centre and the States, fundamental tasks of enhancing human development, income growth, livelihoods, and protecting and sustaining the environment are entrusted to the States. However, although these major tasks of nation-building are the duty of the States, the resources to finance them are substantially controlled by the Centre.
Issues:
Asymmetry in the federal system:
The States in India today neither have the resources to fulfil their tasks as laid down in the Constitution, nor do they have the right to raise such resources. There is thus a great asymmetry in India’s federal system. The Centre’s capacity to mobilise resources is far greater than that of the States, but the latter are required to undertake development expenditures that far exceed their revenue generating capabilities. The Constitution of India entrusts the Finance Commission with the responsibility of addressing this anomaly.
In the wake of demonetisation and GST:
The devolution of resources by the 15th Finance Commission assumes further significance in the current environment, in which the finances of States have received a double blow in the form of demonetisation and the Goods and Services Tax (GST). The freedom of States to raise resources has been restricted by the introduction of the GST. They now have hardly any major tax left with them to make a difference to State resources.
Demographic differences:
Using the population data of 2011 as the base for tax devolution should not reduce the allocation of resources to States that have successfully reduced their rate of population growth. These States have incurred huge fiscal costs in order to achieve a lower population growth and healthy demographic indicators. They have made substantial investments on education, health and directly on family welfare programmes. Many States of India today have achieved a replacement rate of growth of population or have gone below that rate in a short span of time. An immediate effect of this is a sharp rise in the proportion of elderly in the population. The care of the elderly is the responsibility of State governments. The enhanced costs of such care must be considered by the Commission in making its awards and in deciding the population criterion to be used.
Beyond the constitutional mandate:
The current terms of reference go far beyond the constitutional mandate of the Finance Commission.
Performance-based incentives:
The terms of reference are unprecedented in asking the 15th Finance Commission to consider proposing performance-based incentives beyond those relating to fiscal responsibility, population and devolution to local bodies. This reflects the viewpoint and ideological inclinations of the Central government and is an attempt to micro-manage the fiscal domain of the State governments.
For the Finance Commission to propose “measurable performance-based-incentives” is an attack on the federal structure mandated by the Constitution. It is not the duty of the Finance Commission to venture into the realm of day-to-day governance. The elected governments of States will decide what policies are appropriate for our people.
Conclusion:
India’s great wealth rests in its diversity. To recognise this diversity is also to recognise that States will follow diverse paths of development. The Finance Commission must facilitate diversity and a democratic path of development by respecting principles of equity and fairness in allocating resources between the Centre and States in India.
Connecting the dots:
Facing the future of development
Building India's talent base
A promise falls short