Value For Money.pdf

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Centre for Youth and Social Developmentwww.cysd.org

VALUE for MONEYA n A n a l y s i s o f O d i s h a B u d g e t 2 0 1 6 - 1 7

Odisha Budget and Accountability Centre (OBAC), CYSDwww.obac.in

u

u

u

u

u

Budget invited people's opinionthrough a dedicated web portal-

budget.odisha.gov.in

Gender Budget Statement (GBS)is to be introduced in detailedBudget at a Glance

Supply of Pre-School Educationmaterial to Anganwadi centresgets due share.

State to come up with “Promotionof Gender Friendly Tools for FarmWomen in Odisha”

Special allocation made to promotemillet cultivation in tribal areas


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Team (OBAC):

Basanta Kumar Nayak Bhabani Prasad Mahapatra

Nilima Priyadarsini MishraSoumita ChakrabortyMadhulika SistaSurendra SahooUppali Mohanty

Odisha Buget and Accountability CentreCentre for Youth and Social DevelopmentE-1, Institutional AreaGangadhar Meher MargBhubaneswar - 751013Odisha, IndiaTel: +91 674 2300774 / 2301725Fax: +91 674 2301226E-mail: [email protected], [email protected]

CYSD, 2016

This work can be reproduced in whole or part for anyuse except commercial purposes by any individual orinstitutions with due acknowledgment to this report.

Value for Money: an analysis of State Budget 2016-17 www.obac.in

VALUE for MONEYA n A n a l y s i s o f O d i s h a B u d g e t 2 0 1 6 - 1 7

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03

Executive Summary ........................................................................................................... 04

State Budget 2016-17: An Overview ................................................................................. 05 - 06

Health ................................................................................................................................ 07 - 09

Education ........................................................................................................................... 10 - 12

Young Children .................................................................................................................. 13 - 14

Drinking Water & Sanitation ............................................................................................. 15 - 16

Development of Scheduled Tribes (ST) and Scheduled Castes (SC) ................................ 17 - 19

Women ............................................................................................................................... 20 - 21

Rural Development ............................................................................................................ 22 - 24

Agriculture and Livelihoods .............................................................................................. 25 - 28

Content


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Executive SummaryValue for Money: an analysis of State Budget 2016-17 www.obac.in

Finance Minister of Odisha in his Budget Speech, called the State Budget2016-17 “People's Budget”. After several years of active civil societycampaign on Participatory Budgeting in State, Government of Odisha for

the first time in 2012 convened a Pre-Budget Consultation involving across section of experts, civil society organizations and representatives ofthe trade & industries and farmers. This year the State has gone one stepfurther to create scope for people's opinion in State Budget by launching adedicated web portal-budget.odisha.gov.in. An SMS number and anE-mail ID were also generated to seek people's suggestions in budget

preparation.

State budget 2016-17 is crucial for Odisha's economy mainly because oftwo reasons. First, budget 2016-17 is expected to address numerouschallenges by increasing its public spending with increased own tax baseto help the economy grow. Secondly, the resource share mechanism inmost of the important schemes which remained in uncertainty in 2015-16,is now apparent with a 60:40 fund sharing pattern between the Union andState Government. This would have evidently led the State to plan for

prudent expenditure management and use the fiscal autonomy to set its budget priorities in the sectors needed. State budget however, seems to be focused more on management ofexpenditure rather than the allocation priorities and enhancement of ownrevenue. The estimation of State's own revenue is Rs. 33022.93 Cr in2016-17, which has been marginal increased by 7.5 percent over last year.

No new tax proposals or tax measures have been introduced to augmentState's own revenue in the State Budget this year. State's own tax-GSDPratio stands at 8.61 percent which continues to exhibit a declining trendsince 2013-14.

Budget 2016-17 has been pegged at Rs 94052.63 Cr with an increase of 11 percent over budget 2015-16. Similarly, the plan budget which isestimated at Rs 45956.16 Cr is an increase of around 13 percent (Rs 5400Cr) over plan budget 2015-16. A significant increase in state budget (29%)as well as plan budget (34%) is seen in budget 2015-16, as a result ofinclusion of all Central Sponsored Schemes (CSSs) which were bypassing

state budget, in to state budget during 2014 – 15. In the years, 2012-13 and2013-14, the increase in state budget was 12.23 percent and 18.78 percentand the plan budget growth was 20.48 percent and 32.49 percentrespectively. Thus, the modest increase of state budget 2016-17 has not

been substantive as compared to the years 2012-13 and 2013-14 orresponsive to the available fiscal autonomy in recent centre – state fiscalrelationship.

Budget 2016-17 targets borrowing of an amount of Rs. 15740 Cr. Theamount of borrowing in 2016-17 is the highest among all the years since1999-2000. It is announced that the increased borrowing would createspace for higher capital outlay in the state. On the other hand, Capitalexpenditure without public debt repayment and loans and advances has

been estimated at Rs. 16749.7 Cr in 2016-17 which is almost same ascompared to Rs. 16595.7 Cr in 2015-16.

There has been a long debate for increasing social sector investment.Though State Budget 2016-17 claims to be pro-social sector and the socialsector investment increases to 35.96 percent of total state budgetcompared to 34.43 percent in 2015-16( Budget Speech 2015-16 and 2016-17), looking the commitments in Sustainable Development Goals (SDGs)and the myriads of development challenges in rural Odisha related tohealth, education, water and sanitation, etc. it seems that the priorities ofsocial sector has not been adequately addressed by this year's budget.

Budget for health is 1.25 percent of GSDP and 5.1 percent of the total state budget in 2016-17. However, state's total public expenditure on health isfar from meeting the 12th Five Year Plan target of 2.5 percent of GSDP aswell as calls attention to be increased to 2.5-3 percent of GDP as pernational health policy.

Though budget for School & Mass Education department has beenincreased by 20.88 percent in 2016-17 compared to budget 2015-16 RE, as

percentage of GSDP, School and Mass Education (S&ME) department budget has decreased from 3.23% in 2014-15 to 2.93 % in budget 2016-17.

It is worth mentioning that the Sta te budget 2016-17 has allocated Rs 34 Cr

as per the real requirement towards supply of Pre-School Educationmaterials in the state. The provision of Rs 140 Cr towards construction of7000 Anganwadi buildings looks insufficient as it would require aroundRs 350 Cr.

Budget for SNP is Rs 843.68Cr in budget 2016-17 same as in budget 2015-16 BE. So, there will be no increase in unit-cost of SNP. Looking at theincreased market prices of different food items it will be difficult to

provide SNP to all eligible children.

Allocation for Nirmal Bharat Aviyan (NBA) /“Swachha Bharat Mission”is proposed at Rs.740.43 Cr in Budget 2016-17 which is decreased by224.32 Cr than previous year. It poses a question whether the current stateof allocation would meet the ambitious target of making rural India opendefecation free by 2019.

MGNREGA is a key programme to address the unemployment issues ofthe rural masses. Budget for MGNREGA has reduced from Rs. 2336.42 Crin 2015-16 RE to Rs. 1659.89 Cr in 2016-17. The number of man daysunder MGNREGA has reduced from 711.83 lakh in 2013-14 to 534.75lakh in 2014-15 (Economic Survey 2015-16). However, considering StateGovernment announcement to increase the man days under MGNREGAin drought-hit-areas to 200 days, a quantum jump was required in outlayunder MGNREGA. Looking into the proposed outlay under this scheme,Government's claim to emphasize livelihood opportunities seemsconcerning.

Tribal Sub Plan (TSP) and Scheduled Caste Sub Plan (SCSP) are the key programmes for development of Scheduled Tribes and Scheduled Castesin the State. As per norm, SCSP and TSP allocation need to be inaccordance with the proportion of these communities in total population.Accordingly, the resource allocation for TSP and SCSP should be 23

percent and 17 percent respectively. Budget 2016-17 allocates Rs 9235 Cr

under TSP and Rs 6846 Cr under SCSP, which is 19.68 percent and 14.59 percent of State plan. Out of the total departments only Forest, PanchayatiRaj, Revenue & Disaster, Steel & Mines, Water Resources and Women &Child Development has allocated as per the proportion of the tribal

population.

In order to boost the agriculture growth, State has been bringing separateagriculture budget since last four years. Budget for agricultureencompasses Agriculture and Farmers' Empowerment, Irrigation, Co-operation, Fisheries and Animal Resources Development departments.Agriculture budget has increased by 20.89 percent in 2016-17. A special

programme for Millet in Tribal Areas is to be implemented by the State toenhance production and productivity of millets in tribal areas. Irrigationhas also been earmarked with a substantial amount of Rs. 7240 Cr.However, this allocation doesn't seem to be effective considering asignificant number of blocks (198) yet to be achieved 35 percent irrigationfacility. Again, the State Budget 2016-17 is also silent about the fate oforganic farming in State.

The Finance Minister in his speech has mentioned to bring a GenderBudget Statement covering Part A and Part B in the Detailed Budget at aGlance to be presented in the Odisha Legislative Assembly later this year.However, for focused development plan for women in State, a separateGender Budget Statement is required.

Again, GBS only represents a small part in the overall framework of theGender Responsive Budgeting. To make the gender budgeting initiativesmore meaningful, schemes need to be formulated taking into account thegrass root realities and the process of continuous assessment and audit.

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State budget 2016-17 is crucial for Odisha economymainly because of two reasons. First, budget 2016-17 isexpected to address numerous challenges by increasingits public spending and own tax base to help the economygrow. Secondly, the resource share mechanism in most ofthe important schemes which remained in uncertainty in2015-16, is now apparent with a 60:40 fund sharing

pattern between the Union and State Government. Thiswould have evidently led the State to plan for prudentexpenditure management and use the fiscal autonomy toset its budget priorities in the sectors needed. Key Observations:

Ÿ The State continues to be a revenue surpluss State

since 2005-06. Revenue surplus is estimated at Rs3683.33 Cr for State budget 2016-17.

Ÿ No new tax proposals or tax measures have beenintroduced to augment State's own revenue in State

budget 2016-17. State's own revenue is estimated atRs. 33022.93 Cr in 2016-17 which has marginallyincreased to 7.5 percent over last year. State's own tax-GSDP ratio stands at 8.61 percent in 2016-17 whichmaintains a declining trend since 2013-14.

Ÿ Budget 2016-17 has been pegged at Rs 94052.63 Crwith an increase of 11 percent over budget 2015-16.

Similarly, the plan budget which is estimated at Rs45956.16 Cr has got an increase of around 13 percent(Rs 5400 Cr) over plan budget in 2015-16. Allocationunder CSSs till 2014-15 had been bypassing the State

budget.increase in state budget was 12.23 percent and 18.78

percent and the plan budget growth was 20.48 percentand 32.49 percent respectively. Thus, the modestincrease of state budget 2016-17 has not beensubstantive as compared to the years 2012-13 and2013-14 or responsive to the available fiscalautonomy in recent centre-state fiscal relationship.

Ÿ Budget 2016-17 targets borrowing of an amount ofRs. 15740 Cr. The amount of borrowing in 2016-17 isthe highest among all the years since 1999-2000. It isannounced that the increased borrowing would createspace for higher capital outlay in the state.

Ÿ Capital expenditure without public debt repaymentand loans and advances has been estimated at Rs.16749.7 Cr in 2016-17 which is almost same ascompared to Rs. 16595.7 Cr in 2015-16.

Ÿ There has been a long debate for increasing socialsector investment. Though State Budget 2016-17claims to be pro-social sector and the social sectorinvestment increases to 35.96 percent of total state

budget compared to 34.43 percent in 2015-16( BudgetSpeech 2015-16 and 2016-17), looking thecommitments in Sustainable Development Goals(SDGs) and the myriads of development challenges in

rural Odisha related to health, education, water andsanitation, etc. it seems that the priorities of socialsector has not adequately addressed by this year's

budget.

In the years, 2012-13 and 2013-14, the

1. State Budget 2016-17: An Overview

Fig 1.1: Growth of State Budget

30.0

25.0

20.0

15.0

10.0

5.0

0.0

12.218.8

18.8

27.0

11.0

2012-13 2013-14 2014-15 2015-16 2016-178

Growth of State Budget


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Table 1.1: What are the major Items of Receipt of state budget? (In Rs. Cr)

Source: Compiled from Budget at a Glance and Annual Budget 2016-17

Table 1.2: Budgetary allocations for Plan and Capital Outlay (In Rs. Cr)

Source: Compiled from Budget at a Glance and Demand for Grants 2016-17

Items 2012-13 2013-14 2014-15 2015-16 RE 2016-17 BE

State's Own Tax 15034.13 16891.59 19828.29 21700 23200State's Own Non Tax 8078.03 8378.6 8070.87 9000 9822.93Total State's Own revenue 23112.16 25270.19 27899.16 30700 33022.93Own Revenue GSDP ratio 9.05 9.11 9.01 9.24 8.62State's share in Central Taxes 13965.01 15247.24 16181.22 23573.75 26567.56Grant - in - Aid 6859.73 8429.42 12917.51 7295.43 18536.22Total central transfer 20824.74 23676.66 29098.72 40869.18 45103.78Share of central transfer in 47.40 48.37 51.05 57.10 57.73total revenueTotal Revenue (State + Centre) 43936.94 8946.85 56997.88 71569.18 78126.71

Items 2011-12 2012-13 2013-14 2014-15 2015-16 RE 2016-17 BE

State Budget 42105.1 47255.62 56130.92 65597.77 84694.5 94052.65Increase (%) 12.233 18.781 16.866 29.112 11.049Plan Budget 14389.64 17336.83 22969.73 30192.93 40543.22 45956.16Increase (%) 20.48 32.49 31.45 34.28 13.35Capital Expenditure 4496.09 5622.18 7756.4 11074.63 16595.7 16749.7( Without debt repayment& loans and advances)


06


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The health indicators of Odisha are far behind the nationalaverage. The crude birth rate of the state is 8.4 percent per 1000

population against national average of 7 percent per 1000

population as per Sample Registration System (SRS, 2014). Incase of infant mortality rate (IMR), the state ranks second fromlast with 51 per 1000 live births. The Maternal Mortality Ratio(MMR) is 222, remains third highest among the high focussedstates in the country. In order to bridge the gap prevailing in thehealth sector and to achieve the SDG “Goal- 3 Ensured

Healthy Lives and promotes Well-being for all at all ages”, there is a need to increase the public spending on healthsignificantly, preferably at 2-3 percent of state GSDP as per the

National Health Policy target and 12th five year plan targets.

Key Observations:

Ÿ Health is one of the basic necessary services in States like

Odisha. However, the State has been ranked below thenational average in most of the health indicators for years.Despite, the increase in budget allocation for Health &Family Welfare, State's total public expenditure remainsaround 4-5 percent of total State's share. Share of publicspending on health (1.25 percent of the GSDP in StateBudget 2016-17) is far from meeting the 12th Five YearPlan's target of 2.5 percent of the GSDP.

Ÿ In 2016-17, allocation for procurement of essential drugsand medicines has been increased to Rs. 222.31 Cr from Rs212 Cr in 2015-16. Again, as per the Economic Survey2015-16, total patients to public health institutions are 3.21Cr (76.04 percent of the total population). Accordingly, per

head medicine cost stands only at Rs.71. Moreover, a proper monitoring mechanism needs to be in place to ensureavailability of required amount of medicines and themedicine prescribed by the doctors in hospitals' stores.

Ÿ In Odisha, 4 beds are there per 10,000 population which isfar below than the WHO's guideline of at least 1 bed per1,000 population. In-patients to total population haveincreased from 6.61 percent in 2009-10 to 10.14 percent in2015-16. Accordingly, the bed occupancy rate has alsoincreased. However, the number of bed in public hospitalshas not been increased for last 4 years. Budget 2016-17 has

2. Health


not given priority towards allocating resources for beds as per the existing demands at least at district head quarterhospital and community health centre level.

Ÿ Medical devices are considered to be crucial for the servicesoffered in prevention, diagnosis, treatment andrehabilitation of illness and diseases. Although the capitalexpenditure has increased but has not given priority to the

purchase of medical devices which are essential in healthservice delivery system. In 2016-17, Rs 120 Cr has beenallocated to purchase medical equipments. The allocationunder this head was Rs. 181 Cr in previous year. Again, thefield observations show, there is a shortfall of trainedmedical staffs to operate the existing medical devices in thehospitals. Hence, considering the patients' load in publichospitals allocation to be made to purchase the medicaldevices and to train the health professionals to operate these

devices.Ÿ Budget for National Health Mission (NHM) has been

increased by Rs 247.93 Cr in State Budget 2016-17(allocation under NHM in 2016-17 is Rs 1197.15) over lastyear (allocation under NHM in 2015-16 was Rs. 1088.32Cr). However, the allocation under NHM in the revisedestimate was reduced to Rs. 949.22 Cr from the budgetedestimate of Rs 1088.32 Cr in 2015-16. Similarly the actualexpenditure under NHM was reduced to Rs 702.51 Cr fromthe budgeted expenditure of Rs 1093.99 Cr in 2014-15.Looking into the importance of NHM in rural healthservices, a concrete plan requires to be in place in 2016-17for optimal utilization of the earmarked fund.

Ÿ In 2016-17, an amount of Rs 1 Cr has been proposed to bewith the collectors of 11 backward districts for improveddelivery of healthcare services. This initiative has beentaken by the State Government to address the non-availability of doctors in the inaccessible remote location.

Ÿ An amount of Rs 15 Cr has been provisioned underPlanning and Convergence Department for viability gapsfunding to attract the private investment for rural healthsector.

07

Table 2.1: Total Health Sector - Allocation: (Rs in Cr)

Year Health & Family Other Department CSS Bypassingwelfare state budget without being routed Spending inDepartment through state budget the state

2012-13 1800.26 23.59 355.75 142.44 2322.032013-14 1985.14 24.86 438.3 a33.41 2481.712014-15 3203.53 25.46 0 42.04 3879.332015-16RE 3882.34 65.24 0 0 3907.92016-17BE 4793.97 55.79 0 0 4849.76

External Assistance Total health

Source: compiled from Demand for Grants and Budget at a Glance, different years, GoO


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08

The total public expenditure on health, which is incurred primarily by Health and Family Welfare (H&FW) department andLabour and Employment department, increased by Rs 941.86 Cr i.e from Rs 3907.90 Cr in 2015-16 RE to Rs 4849.76Cr in2016-17. Labour and Employment department allocates only for employees state insurance schemes.

The share of public spending on health in the state budget is seen volatile. Budget for health is 1.25 percent of GSDP and 5.1 percent of the total state budget in 2016-17. However, state's total public expenditure on health is far from meeting the 12thFive Year Plan target of 2.5 percent of GSDP.

Undoubtedly, the health expenditure towards capital account has been increasing over the years. In 2016-17 budget, the statehas allocated Rs 739 Cr (15.42 %) for creation of infrastructure, which includes construction of five medical colleges in thestate.

Fig 2.1: Share of Health budget in State Budget and GSDP

As % of Total Budget

3.81 3.54

4.80 4.585.10

0.71 0.721.03 1.17 1.25

6.00

5.00

4.00

3.00

2.00

1.00

0.002012-13 2013-14 2014-15 2015-16 RE 2016-17 BE

As % of GSDP

Fig 2.2: share of capital expenditure in health budget

100.00

80.00

60.00

40.00

20.00

0.00

2012-13 2013-14 2014-15 2015-16 RE 2016-17 BERevenue expenditure as % of Departmental ExpenditureCapital Expenditure as % of Departmental Expenditure

92.98

7.02 8.93 13.8614.10 15.42

91.08 86.14 85.90 84.58

Budget for NHM:Budget for National Health Mission (NHM), being one of the major drivers in health sector, has been increased by Rs 247.93Cr in 2016-17 (Rs 1197.15 Cr) as compared to Rs 949.22 Cr in 2015-16 RE. However, the allocation in 2015-16 BE is lowerthan those in 2015-16 RE. The allocation for NHM in 2015-16BE was Rs 1088.32 Cr which reduced to Rs. 949.22 Cr in 2015-16RE. Similarly, in 2014-15, the actual expenditure under NHM ( Rs 702.51 Cr) fell short compared to Rs 1093.99Cr in2014-15BE.


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Source: Detail Demand for Grant 2016-17

Budget for Access to Free Medicine:As per a study conducted by Health and Family Welfare department, GoO, estimated Out of Pocket Spending (OOPS)on health care amounts to approximately 80 percent of total health expenditure, where medicines account the majorshare of total health expenditure. For ensuring access to free medicine, in 29th April 2015, GoO launched Niramayafree Medicine Scheme which will cover 570 types of medicines for patients. In budget 2016-17, the allocation formedicine is Rs 222.31 Cr which was Rs 210 Cr in 2015-16. As per Economic Survey 2015-16, the total patients to

public health institutions is 3.21 Cr (76.04 % of total population), which counts per head medicine cost at Rs 71. The per head medicine cost in 2015-16 was Rs 75.

Beds in Public Health Institution:The inpatient to the total population which was 6.61percent in 2009-10 has increased to 10.14 percent in 2015-16 at thesame time the bed occupancy rate is also increasing (Economic Survey 2015-16). As compare to the inpatient load, bedoccupancy rate and the dependency of poor people upon the government hospital, the number of bed in the publichospital has not been increased during last 4 years. There are less than 4 bed per 10, 000 population which is far belowthe WHO guideline. However, budget 2016-17 have not given priority towards increasing beds in public healthinstitutions in state.

Year/ Head 2012-13 2013-14 2014-15 2015-16 BE 2016-17

24002-Diet 18.84 20.49 22.8088 27.0608 28.848515001-Bedding,Clothing & Linen 1.53 1.41 1.1073 1.5628 1.57132004-Equipments 3.647 45.68 111.51 181.0722 120.22

Source: compiled from Demands for Grants, different years

Budget allocation for prevention for control of Malaria:Malaria is the foremost public health problem in Odisha which contributes maximum to the malaria burden of thenation. One of the factors for IMR is high incidence of malaria. As a measure of prevention & control of malaria in thehigh burden districts, “Mo Mashari” under state plan was carried out, under which Long Lasting Insecticide Nets(LLIN) are provided to pregnant women and boarders of Tribal hostels. The allocation under “Mo Mashari” was Rs 10Cr in 2013-14 and Rs 7 Cr in 2014-15. Since 2015-16, there is no allocation made under this head.

Scheme 2014-15 BE 2014-15 2015-16 BE 2015-16 RE 2016-17 BE

2943-National Health Mission 1093.492 702.5153 1088.32 949.22 1197.15

Table 2.2: Allocation for some special components (In Rs Cr)


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3. Education: The differing fact of Investment and Quality

It is universally accepted that education plays a vital role insocial transformation and advancement. So policy provisions for education and quantum of investment ineducation are the measurable indicators at the input level.Similarly quality of education provided by the state and thequality of human resource produced are the indicators at theoutput level. In a state like Odisha, status of both the inputindicators and output indicators are not reasonably betterthan the national/international standard. In line with Right toEducation Act (RTE), the state government has madeOdisha Right of Children to Free and CompulsoryEducation Rule 2010. However, this rule is still ahead of afinancial transformation. In the same way the quality ofeducation provided in the public facilities are far away fromthe satisfaction level.

Key Observations

Ÿ In 2016-17, Budget for School & Mass Education(S&ME) has decreased from 3.23 percent of GSDP to2.93 percent of GSDP. Although the budget for S&MEhas increased by 20.88 percent in 2016-17 compared tothe revised estimate of budget 2015-16.

Ÿ Budget for School and Mass Education (S&ME) hassubstantially been increased for last 5-6 years.Simultaneously, the enrolments in Government run

schools have substantially decreased. Budget for S&MEhad been doubled from Rs 4017.65 Cr in 2009-10 to Rs8918.16 Cr in 2014-15 BE. Contrastingly, enrollment inGovernment schools decrease from around 79.58 lakh in2009-10 to 74.35 lakh in 2014-15. Hence, there's an

urgent need to review and make necessary changes in theexisting education pattern in Government run schools.

Ÿ Elementary education has seen evolutionary changesduring last one and half decade in Odisha, both in policyand implementation. Now the major concern inelementary education is the provision of “qualityeducation” in Government schools. According to theASER (Annual Status of Education Report) 2014, 48

percent of the standard V students cannot read texts ofstandard II, , 53 percent of the children cannot dosubtraction, 64 percent of standard VII students cannotdo division and 60 percent of standard VII student cannotread English sentences. Looking into the context, Stateneeds to give emphasis on the qualitative inputs liketeachers' training, extracurricular activities in schoolsand good class room environment/ transaction etc. on theother hand, Budget 2016-17 seems to follow thetraditional budget management system with lessconsideration to the demand for addressing the issues ofquality education in Government schools.

Ÿ Budget for Sarva Shiksha Abhiyan (SSA), has beenestimated at Rs. 1906.42 Cr in 2016-17. However, the

budgeted estimate of Rs. 1860.38 Cr under SSA wasdecreased to Rs 1294.48 Cr in the revised estimate in

budget 2015-16.

Ÿ Only 1 percent schools in State is RTE compliant. In thiscontext, State needs to conduct an independent stock of“RTE compliance of Schools” and fix a deadline toensure hundred percent RTE compliant schools.


10

Fig 3.1: Share of School and Mass Education budget in state budget and GSDP

As % Total State Budget As % of GSDP

15.00

10.00

5.00

0.00

13.45 12.52 11.74 12.49 11.97 11.85 10.98 11.95

2.52 2.29 2.19 2.31 2.423.23 2.80 2.93

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(RE)

2016-17(BE)


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Table 3.1: Budget for Elementary Education (In Rs Cr)

Source: compiled from Detailed Demand for Grants, different years

Budget 2016-17, is silent about the quality of education. Despite of serious demand neither any scheme / strategy forteacher training nor any plan for stringent monitoring is introduced this year.

Year Enrolment

2014-15 63.872013-14 63.882012-13 64.222011-12 65.22010-11 65.792009-10 66.21

As per the ASER report 2014, 48% of the class V student can not read class II leveltext, 53% of the children can not do subtraction, 64 % of class VII student can not dodivision and 60% of class VII student can not read English sentence.

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (RE) 2016-17 (BE)

Elementary Education 2641.41 2901.74 3153.93 3963.28 4551.23 5153.00 6153.01 7234.62

To address the facility gap in schools, SSA is the only source of investment. Under SSA, the state receives grantfrom the union government. Due to ambiguity in centre state sharing, the revised allocation under SSA in 2015-16was very less. However, this year SSA budget has substantially been increased.

Status of Civil Facilities ingovernment Schools

No girl's toilet 7497 No common Toilet 12364 No electricity 43386 No play ground 41643 No Ramps 17060 No drinking water 1714 No Computer 49175

Nature of Investment in Primary and Upper primary schools (In Rs Cr)

Scheme/Program/component 2015-16 2016-17

Sarva Sikshya Aviyan 1294.48 1906.42Mid-day meal programme 642.31 816.96Elementary Scholarship 3.60 3.60(Primary+ Upper primary)Mathematics Talent Search 2.50 2.50

11

State's Approach towards Quality Elementary Education:In the context of quality of education few components are commonly accepted and recognized. The components arehealthy learners, good and relevant curriculum, trained teacher, adequate facility/environment and outcome (learninglevel of children). It was expected that Odisha Right of Children to Free and Compulsory Education Rule 2010 will helpin ensuring quality elementary education in the state. However, within this seven years (from 2010-11 to 2016-17)

performance of the state is not satisfactory. Despite of the policy and budgetary modifications quality education has not been ensured to the children.

Changing scenario and Budget for Secondary EducationAfter implementation of SSA, the states approach towards elementary education has changed. With the financialsupport from the union government, investment for elementary education has been increased many folds. Theallocation under secondary education has not been increased substantially as compared to allocation underelementary education within the same period.


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Budget for secondary education has increased from Rs 2966.94 Cr. in 2015-16 to Rs 3793.10 Cr. in 2016-17. However,there is no strategy to address different issues at the secondary education level. The student classroom ratio is 52, drop-out rate in class IX-X is 49.48% and transition rate from secondary to higher secondary is very less (2.25 %). Similarlytrained and qualified teachers at the secondary level are also a bigger issue. Educational qualification of around 9000teachers is below graduation (NUEPA 2015).

Rastriya Madhyamik Sikshya Aviyan(RMSA):To supplement the investment made for secondary education in the state, union government is providing resourcesupport through RMSA. Budget for RMSA during 2015-16BE was only Rs 94.34 Cr, which increased to Rs 428.75 Crin 2015-16 RE. In 2016-17, the estimated budget for RMSA has further increased to Rs 686.10 Cr.

Table3.3: Budget for RMSA (In Rs Cr)

2014-15 2015-16 (BE) 2015-16 (RE) 2016-17(BE)

RMSA 248.46 94.34 428.75 686.10

12

Table 3.2: Budget for Secondary Education (In Rs Cr)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Secondary 1395.91 1537.26 1665.75 1847.35 2064.59 2586.62 2966.94 3793.10Education


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Young children refer to the children in the age group of 0-6years. Neither they can raise their voice nor can they claimtheir entitlement. But their status determines the health ofthe society. So investment in children, specifically youngchildren is crucial for the development of the nation.

It is not easy to measure the quantum of investment onyoung children because of unavailability of disaggregatedinformation. Similarly there are also investments on women(mother) which indirectly benefit the children. However, theflagship scheme Integrated Child Development Service(ICDS) and Supplementary Nutrition Programme (SNP) arethe two big programmes which directly benefit the children.These two schemes cater to the nutrition, health andeducation need of the young children. So the amounts ofinvestment on young children mostly depend on the budget

for ICDS and SNP programme.

Key Observations

Ÿ In 2015-16, budget for Integrated Child developmentServices (ICDS) programme as a whole was estimated atRs. 1714.27 Cr but was further decreased to Rs. 1014.27Cr in 2015-16 RE. However, Rs. 2233.97 Cr has beenallocated under ICDS in 2016-17.

Ÿ Budget for PSE has substantially increased from Rs.17.93 Cr in 2015-16 to Rs. 34.00 Cr in 2016-17. It willcertainly help in implementation of Nua Arunima

properly.

Ÿ Budget for Supplementary Nutrition Programme (SNP)has remained unchanged as Rs 843.68 Cr. in 2016-17 ascompared to the budgeted expenditure in 2015-16. As aresult, there will be no increase in the unit cost of SNP.However, considering the increased market price ofdifferent food items, it may be difficult to provide SNP toall the eligible children.

Ÿ Organizational structure of ICDS programmes includesAnganwadi workers (AWWs) at village level,supervisors at sector level and Child Development

4. Young Children: Little reason to cheer


13

Project Officer (CDPO) at project level. Huge vacanciesof human resources at all these three levels exist inOdisha. Specifically, the post of AWWs and supervisorsare laying vacant in prolonged basis. Similarly, as perthe new Early Childhood Care and Education (ECCE)

policy, the State has not so far appointed NutritionCouncilor cum Additional Worker for high burdendistricts and link worker in non-burden districts.Currently, 9,524 identified Anganwadi Centres (AWCs)are there in highly burdened districts (Boudh,Dhenkanal, Gajapati, Kalahandi, Koraput andMalkangiri) and 61,610 AWCs are there in 24 non-

burdened districts of Odisha.

Ÿ Successful implementation of pre-school programmeunder ICDS heavily depends on the trained AWWs.

However, considering the existing skill of the AWWs,especially in tribal areas, State needs to organizerigorous and continuous training programmes to availthe expected outcome of Pre-School Education (PSE).After the launch of Nua-Arunima, it was expected to seevisible changes in the area of PSE programme in State.However most of the AWWs have not received anyspecific training on Nua-Arunima. Again, a separate

budget head with appropriate plan is required fortraining of Anganwadi workers.

Ÿ Many of the AWCs, sanctioned during last five years, arestill incomplete. AWC buildings, constructed before 10-15 years, presently are in dilapidated condition. Thesecentres with tin/asbestos roof top, either partially or fully

broken and are unsafe for the children. Hence, Staterequires estimating the actual number of Pucca buildingsfor AWCs and appropriately financing the same.Similarly more budget should be allocated for repair andrenovation of the AWC buildings, which wereconstructed before 10-12 year.

Ÿ In 2016-17, 7000 AWC buildings have been planned to be constructed. This requires a budget allocation of Rs.385.00 Cr. whereas allocation made in Budget 2016-17is only Rs 140.00 Cr.

Table 4.1: Budget for ICDS (In Rs Cr)

2014-15 2015-16 (BE) 2015-16 (RE) 2016-17 (BE)

ICDS General 511.48 570.59 350.59 1250.29Supplementary Nutrition Programme 682.38 843.68 443.68 843.68Construction of AWC Building 143.99 300.00 220.00 140.00Total 1337.85 1714.27 1014.27 2233.97

Source: Demand for grants 2016-17, GoO


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One of the most important determinants of communityhealth and well being is the status of safe drinking waterand sanitation. Water supply and sanitation were added tothe national agenda during the first five-year planning

period (1951-1956), and increasing investments have

5. Drinking Water & Sanitation

Key Observatios

Ÿ

Ÿ Provision of safe drinking water through implementation of 600 rural piped water supply schemes, augmentation of500 pipe water supply projects, installation of 1000 tube wells, installation & replacement with 2500 solar dual

pumps, construction of 300 overhead tanks and 500 iron removal units is envisaged in 2016-17.

Ÿ

2016-17 which is less by 224.32 Cr from the previous year.

A sum of Rs.988.20 Crore is provided for safe drinking water facility.

Allocation for Nirmal Bharat Aviyan (NBA) / “Swachha Bharat Mission” is proposed at Rs. 740.43 Cr in Budget

Departments 2011-12 2012-13 2013-14 2014-15 2015-16 R.E 2016-17 B.E

General Administration - 4.27 3.50 3.75 4.90 4.00Housing & Urban 380.34 459.67 892.75 898.05 837.50 826.14Rural Development 270.47 312.09 386.63 685.08 1,912.76 1,930.87Total 650.81 776.03 1282.88 1586.88 2755.16 2761.01

Table 5.1: Allocation on Water Supply & Sanitation ( In Rs Cr)

Two major departments such as "Housing & Urban development" and "Rural Development" allocate resources forwater and sanitation in urban and rural area respectively. In 2016-17 budget for water supply and sanitation by both thedepartments have remained almost same as compared to previous year. However, budget 2016-17 shows the priority forrural water supply and sanitation.


been made in subsequent plans. In spite of several policies, programme and scheme implemented in realityaccess to toilet facilities, equitable access to drinkingwater and water safety is still a major concern in Odisha.

Source: Compiled from Demand for Grants, GoO

4.00%

3.00%

2.00%

1.00%

0.00%

1.61% 1.55% 1.64%

2.29% 2.05%

3.25%2.94%

0.29% 0.30% 0.31% 0.47%0.51%

0.79% 0.72%

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 R.E 2016-17 B.E

WS&S as % of GSDP WS&S as % of Total Budget

Fig 5.1: Share of Water Supply and Sanitation in State Budget and GSDP

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The strategic plan 2011-22, “Ensuring Drinking Water Security In Rural India” published by Department of DrinkingWater and Sanitation in Ministry of Rural Development, GOI, sets target of providing piped water supply to at least 90

percent of rural households of which at least 80 percent with a household connection. To ensure proper monitoring, thetargets have been split into two periods, first target to be achieved by 2017 (total 55% and within HH 35%) and the latter

by 2022 (total 90 % and within HH 80%), but the situation in Odisha is abysmal with only 1% of households with a tap

water connection within their premises and 8% in total in rural areas as per Odisha Economic survey 2014-15. National Rural Drinking Water supply Programme (NRDWP) and Rural Drinking Water Supply program are the twomajor schemes of supply of water to the rural areas. In budget 2016-17, allocation in both the heads together has beenincreased only by Rs 233 Cr.

Budget for Nirmal Bharat Aviyan (NBA) which is known as Swachh Bharat mission (SBM) has been decreased inBudget 2016-17. Budget for NBA which was Rs 964.32 Cr in 2015-16 RE has been reduced to Rs 740.00 Cr in budget2016-17.

Budget for Nirmal Bhart Aviyan (NBA)

Budget for NBA (Rs in Cr.)

2015-16(RE) 2016-17

964.32 740.00

The concern is that whether the current state of allocation would meet the ambitioustarget of making rural India open defecation free by 2019 (SBM).

Fig 5.2: Budget for Rural Drinking Water Programme (In Rs Cr)

2011-12 2012-13 2013-14 2014-15 2015-16 RE 2016-17

National Rural Drinking 169.21 205.29 281.95 427.20 300.00 517.20Water Supply ProgrammeRural Water Supply Programme 0.20 0.26 0.00 51.23 335.00 351.00Total 169.41 205.54 281.95 478.42 635.00 868.20

Source: Demand for Grants, GoO

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The population of India consists of many diversifiedgroups and communities, Scheduled Caste (SC) andScheduled Tribe (ST) being two of them. As per theCensus report of 2011, these two communities constitutearound 40% of the total population of Odisha (SC-17.13% and ST 22.85%). For the development of STs andSCs, the state intervenes through both the SCs, STs, OBCand Minorities welfare department as well as theinterventions reported in the Tribal Sub Plan (TSP) andScheduled Caste Sub Plan (SCSP) by a number of otherdepartments.

Key ObservationsŸ SCs, STs, OBC and Minorities Welfare Department

budget has increased by 19 percent in 2016-17. Thedepartment has allocated 6.24% under TSP and do nothave budget head 789 for SCSP.

Ÿ The 2016-17 budget has allocated only 19.68 percentof the fund towards TSP whereas the norm

pronounces to be 22.85 percent. Likewise the SCsreceive only 14.59 percent fund under SCSP against17.13 percent.

Ÿ Forest & environment, Steel & Mines, WaterResources, Panchayati Raj, Revenue and DisasterManagement and W&CD departments have adheredto the norms and has shown departmental prioritytowards SCs and STs.

Ÿ

In his budget speech the finance minister mentionedthat 'Odisha Girl Incentive Programme (OGIP)' willcontinue as a top up scholarship to ST and SC Girls atthe secondary school level. However this programmeis closing on July 2016.

6. Development of Scheduled Tribes (ST) andScheduled castes (SC)

Budget Allocation for STs and SCs


SCSP and TSP as percentage of total state plan

While inclusion was one of the pillars of both the 11th as well as the 12th Five Year Plans, for the inclusive development

of the State, holistic development of the STs and SCs is very much essential. In Odisha, the SCs and STs constitutearound 40 percent (SC -17.13 and ST – 22.85%). Apart from ST and SC development department budget, separatestrategies in the form of Scheduled Caste Sub Plan (SCSP) and Scheduled Tribe Sub Plan(TSP) has been devised toearmark state plan fund as per the proportion of SC and ST population across the departmental budgets of the stategovernment. The objectives of these two sub plans are to channelize the resources and spending in proportionate to their

population and accelerate the pace of development of these communities.

Budget 2016-17 shows that the SCs & STs of the state are getting a raw deal from the government while it comes to theallocation of funds under SCSP and TSP. The norms are not followed. The 2016-17 budget estimates has allocated only19.68% of the fund towards TSP whereas the norm pronounces to be 22.85%. Likewise the SCs receive only 14.59%fund under SCSP against 17.13%.

Budget for SC & ST Development Department as Percentof GSDP and State Budget

3.24

2.302.82

3.02

0.67 0.63 0.690.74

2013-14 (AE) 2014-15 (AE) 2015-16(RE) 2016-17(BE)

% GSDP % of State Budget

22.53 20.7 20.9919.68

16.15 15.36 15.77 14.59

2013-14 (AE) 2014-15 (AE) 2015-16 (RE) 2016-17 (BE)

% of SCSP % of TSP

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Status of SCSP and TSP across Departments in budget 2016-17

In order to understand the state governments priority in implementing SCSP and TSP an analysis of key welfaredepartments, those are directly responsible towards the development of SCs and STs indicate that departments likePanchayati Raj and Women & Child Development have adhered to the norms and shown departmental priority towardSCs and STs. While departments like Agriculture, Health & Family Welfare, Rural Development and School & MassEducation have allocated less. Interestingly the nodal department for SCSP and TSP has been allocating less than 10%under TSP and it does not have a separate minor head 789 for SCSP. The department wise SCSP and TSP allocation has

been given below.

Percentage of SCSP and TSP allocation of key departments in budget estimate 2016-17

Departments Dept Plan SCSP(789) % of SCSP TSP(796) % of TSP

Agriculture Department 3059.71 484.56 15.84 655.9 21.44Commerce Department 15.6 0 0 0 0Co-oparation Department 1719.83 254.38 14.79 344.16 20.01Department Of Energy 1583.51 330.77 20.89 335.6 21.19Department Of Public Enterprises 2 0 0 0 0Employment And Technical Education 426.77 61.79 14.48 74.58 17.48& Training Dept.Excise Department 5 0 0 0 0Finance Department 0 0 0 0 0Fisheries And Animal Resource Development Dept. 349.4 63.12 18.06 65.4 18.72Food Suplies And Consumer Welfare Dept. 67.19 1.21 1.8 1.43 2.13Forest And Environment Department 231.12 39.38 17.04 52.76 22.83General Administration Department 104.86 0 0 0 0Health & Family Welfare Department 2830.3 426.32 15.06 626.53 22.14Higher Education Department 957.7 92.25 9.63 98.63 10.3Home Department 273.89 39.83 14.54 57.37 20.95Housing &urban Development Dept. 1587.99 253.48 15.96 345.56 21.76Industries Department 90.27 0 0 0.28 0.31Information & Public Relation Dept. 18 1.19 6.6 1.61 8.93Information Technology Department 127.19 5.27 4.14 3.95 3.11Labour & Employment Department 16.16 0.18 1.13 1.56 9.63Law Department 33.67 0 0 0 0Micro, Small & Medium Enterprises Dept. 54.05 0.38 0.69 0.48 0.89Orissa Legislative Assembly 0 0 0 0 0Panchyat Raj 5380.59 1073.73 19.96 1299.1 24.14Parliamentary Affairs 5.04 0 0 0 0

% of SCSP % of TSP

21.44

15.84

15.06

15.06

12.65

9.35

22.63

14.63

6.24

22.82

17.51

24.14

19.96

AgricultureH&FW

Rural DevelopmentS&ME

SC,ST,OBC and MinorityW & CD

Panchayati Raj

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Planning And Coordinating Department 775.85 54.02 6.96 118.41 15.26Public Grievances And Pension Admin 775.85 0 0 0 0Administration Dept.Revenue And Disaster Management Dept. 775.06 123.36 15.92 177.33 22.88Rural Development Department 5198.23 485.87 9.35 657.35 12.65School And Mass Education 4564.33 667.75 14.63 1033.11 22.63Science And Technology Department 49.65 4.33 8.72 6.12 12.33Sports And Youth Services Department 56.6 4 7.07 6 10.6St, Sc And Minorities & Obc Welfare Dept. 1842.91 0 0 115.04 6.24Steel And Mines Department 36.96 7.03 19.02 15.46 41.83Textile And Handloom Department 165.4 9.01 5.45 11.96 7.23Tourism And Culture Department 201.78 0 0 0.35 0.17Transport Department 322.09 3.6 1.12 5.06 1.57Water Resources Department 6000.6 1069.33 17.82 1514.37 25.24Women & Child Development Dept. 2768.3 484.73 17.51 631.8 22.82Works Department 2921.18 549.85 18.82 632.5 21.65Department Of Social Security & 1537.39 255.68 16.63 345.92 22.5

Empowerment Of Persons With DisabilityTotal 46932.01 6846.38 14.59 9235.66 19.68

Source: Demand For Grants, 2016-17, Goo

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7. WomenKey Observations

Ÿ Budget 2016-17 announced to bring a Gender BudgetStatement (GBS) covering both Part-A (schemes inwhich 100% provision is for women) and Part-B(where the allocations for women constitute at least30% of the provision) in the expanded version ofBudget at a Glance document. The statement willcapture the quantum of provisions made towardswomen.

Ÿ Rs 2 Cr. is allocated for the new scheme Biju KanyaRatna Yajona. This is to be launched in three districtsfor promoting equal opportunity, eliminatingdiscrimination and ensuring empowerment throughchanges in the societal attitudes.

Heads of Account 2012-13 2013-14 2014-15 2015-16 2015-16 RE 2016-17 BE

1180-Rehabilitation of Distressed 0.03 0.03 0.03 0.03 0.03 0.03Women2393-State Commission for Women 1.19 1.69 2.00 2.15 2.15 2.402395-Mahila and Sishu Desks 0.01 0.01 0.01 0.01 0.01 0.002679-Financial Assistance and 6.00 3.00 0.00 0.00 0.00 0.00support services to victims of rape78354-Protection of Women from 0.25 0.25 0.25 0.25 0.25 0.20domestic violence78355-Functioning of Gender Cell 0.20 0.00 0.10 0.10 0.10 0.151606-Construction of Working 0.00 2.00 11.20 4.50 4.50 8.35Women's Hostel2892-Women Hostel for PWD 0.00 0.00 3.00 1.50 2.00 0.002893-Incentive for marriage between 0.00 0.00 0.97 2.00 2.00 0.00PWDs and Normal personTotal 7.68 6.98 17.56 10.54 11.04 11.13

There has been a constant rise in crime against women in Odisha according to white paper data. In all-India basis, casesof rape in the state contribute to 5.8 %, kidnapping of women and girls cases to 3.5% of the total cases in the country as

per the NCRB 2012. Similarly, the dowry related cases have been increasing and there were 4898 cases in 2011, thedowry deaths in the state are 6.5 % of the cases registered in the country (NCRB 2012). There are certain important schemes which are implemented by Women & Child Development department for

providing protection and supporting services for women. Some of the schemes which GoO started but discontinuedwithin a period of one year or have reduced the allocation over the years. It is good that in 20106-17 budget, the stategovernment has made provision for working women hostel which will definitely benefit the working women.

Ÿ Rs 8.35 Cr is allocated for construction of workingwomen hostel in industrial town.

Ÿ For the first time the state has allocated a fund of Rs 4Cr for the welfare of the transgenders.

Ÿ Special programme for promotion of Gender FriendlyTools for Farm Women in Odisha

Ÿ An amount of Rs 1 cr. is allocated towards providingtemporary shelter for the women devotees (Habisiali)at Puri.

Table 7.1: Outlay for Some key schemes for protection of women under W&CD Department (Rs in Cr)

Source: compiled from detail demand for grants 2012-13 to 2016-17

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As popular saying, "India lives in villages". So doesOdisha. Over 85 percent of State's total population livesin rural areas (Census 2011). According to the latestreleased data on poverty (Planning Commission, 23rdJuly 2013), Odisha recorded the sharpest decline in

poverty level between 2004-05 and 2011-12, followed byBihar and Rajasthan. However, 32.6 percent of Odisha'stotal population still lives Below the Poverty Line (BPL),remaining well above the national average of 21.9

percent. The major chunk of this BPL population is livingin remote villages of Odisha.

Key Observations

Ÿ Budget for Rural Development Department (DoRD)has decreased from Rs. 6705.47 Cr in 2015-16 RE toRs. 6705.47 Cr in 2016-17. It accounts 6.90 percent ofthe Total State Budget in 2016-17 which was 7.94

percent in 2015-16 RE.

Ÿ Budget for Panchayati Raj Department (DoPR) hasremained almost same as in 2015-16 RE. It accounts8.99 percent of the Total State Budget in 2016-17which was 9.97 percent in 2015-16 RE. DoPR shares2.21 percent of GSDP in 2016-17 which was 2.42 in2015-16.

Ÿ State has allocated an amount Rs.2300 Cr. underPMGSY for construction of 3200 kms of road in 2016-17.

Ÿ Budget for Rural Infrastructure Development Fund(RIDF) has decreased from Rs. 1102 Cr in 2015-16RE to Rs. 950 Cr in 2016-17.

Ÿ Budget under “Completion of Incomplete Roads and

8. Rural Development: an analysis ofRural Development & Panchayatiraj Department

Budget for Panchayati Raj Department (DoPR) in 2016-17 (Rs 8458.95 Cr) has remained almost same as compared to2015-16 RE (Rs 8419.85 Cr). The department implements important schemes like Indira Awas Yojana (IAY) which isrecently renamed as Pradhan Mantri Awas Yojana (PMAY), Mahatma Gandhi National Rural Employment GuaranteeAct (MGNREGA), National Rural Livelihood Mission (NRLM) etc.

Bridges” has decreased manifold from Rs. 220 Cr in2015-16 RE to Rs. 80 Cr in 2016-17.

Ÿ Budget under Biju Setu Yojana has got a significantrise from Rs. 227.51 Cr. in 2015-16 RE to Rs. 404.60Cr. in 2016-17 BE.

Ÿ Pradhan Mantri Awas Yojana (PMAY) and BijuPucca Ghara Yojana (BPGY) are two flagship

programmes under the housing scheme of the State.Budget PMAY has decreased from Rs. 1875.61 Cr. in2015-16 RE to Rs. 1688.26 Cr in 2016-17. On theother hand, budget for BPGY has increased many fold

from Rs. 150 Cr in 2015-16 RE to Rs. 700 Cr in 2016-17 BE.

Ÿ Budget for Gopabandhu Gramin Yojana (GGY) hasincreased from Rs. 650 Cr. in 2015-16 (RE) to Rs.1000 Cr. in 2016-17 (BE). Taking into account thedelinked BRGF from central assistance, now GGYwill have to provide the benefits of the scheme to all30 districts (previously it was 10 districts) .

Ÿ Bbudget under NRLM has reduced form Rs. Rs.398.15 Cr in 2015-16 RE to Rs. 241.70 Cr. in 2016-17BE

Ÿ Contrast to the State Government's announcement toincrease the man days under MGNREGA in drought-hit-areas to 200 days, the budget under this schemehas decreased from Rs. 2336.42 Cr in 2015-16 RE toRs. 1959.89 Cr in 2016-17.

Ÿ Gram Sabha Sashaktikaran Karyakram (GSSK) hasnot been allocated any budget since State Budget2015-16

2010-11 2011-12 2012-13 2013-14 2014-15 (AE) 2015-16 (RE) 2016-17 (BE)

As % of GSDP As % of Total Budget

4.455.31 5.29 5.94 6.20

9.97 8.99

0.82 1.01 0.98 1.22 1.552.42 2.21

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Schemes 2012-13 2013-14 2014-15 2015-16 RE 2016-17

2161—Rural Infrastructure Development Fund (RIDF) 184.69 207.53 451.81 1102.00 950.001077- Pradhan Mantri Gram Sadak Yojana (PMGSY) 90.00 74.00 1151.50 2068.33 2300.0037158- Completion of Incomplete Roads 27.40 44.77 70.22 220 8037257-Biju Setu Yojana 135.78 172.10 186.95 230.00 400.00

Rural Infrastructure Development Fund (RIDF) and Pradhan Mantri Gram Sadak Yojana (PMGSY) constitute themajor share of the fund towards rural connectivity. Budget for PMGSY has been increased marginally in 2016-17.Under PMGSY, state targets for construction of 3200 kms of roads in 2016-17. However, budget for RIDF hasdecreased from Rs. 1102 Cr in 2015-16 RE to Rs. 950 Cr in 2016-17 BE.

Schemes Target for2013-14 Achievement Achievement 2014-15 till 2/2015 Achievement

till 3/2014 till 3/2014 till 2/2015

Roads Bridges Roads Bridges Roads Bridges Roads Bridges

2161—RuralInfrastructure of the available the available

Development fund utilized fund utilized Fund (RIDF)

PMGSY Bridges - 34 - 31 - Construction of 3842.69 Around 64% of / 1077- Pradhan 4500 km of the availableMantri Gram roads & bridges fund utilized Sadak Yojana(PMGSY)

37158- 151 19 151 19 Around 91 % 100 - 14 - Around 72% of Completion of of the available the availableIncomplete Roads fund utilized fund utilized

37257-Biju - 125 - 107 Around 99 % - 120 - 11 Around 89% of

Setu Yojana of the available the availablefund utilized fund utilized

Physical Financial Target for Achievement Financial

3 35 2 26 More than 98% 13 40 3 5 Around 70% of

Table 8.1: Budget for Schemes / programmes under Rural Connectivity (In Rs Cr)

Source: Demand for Grants, GoO

Table 8.2: Physical and Financial Achievement under the major Schemes of Rural Connectivity (Outcome BudgetDoRD 2015-16)

Biju Setu Yojana needs a boost to achieve the target:The financial outlay under Biju Setu Yojana has been appreciably increased from Rs. 230 Cr. in 2015-16 RE to Rs. 400Cr. in 2016-17 BE. During 2013-14 around 99 percent fund under this scheme was utilized and 107 bridges out oftargeted 125 bridges were completed. However financial utilization decreased to around 89 percent in 2014-15 andconstruction of only 11 bridges out of targeted 120 bridges were completed.

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Housing Schemes much behind the target in Odisha:The two flagship programmes under the housing scheme in Odisha are centrally sponsored Prime Minister Awas Yojana(PMAY), previously known as Indira Awas Yojana and State's own Biju Pucca Ghara Yojana (BPGY), previouslyknown as Mo Kudia Yojana.

Budget for PMAY has been decreased from Rs. 1875.61 Cr in 2015-16 RE to Rs. 1688.26 Cr in 2016-17. However, budget for BPGY has been increased many fold from Rs. 150 Cr in 2015-16 RE to Rs. 700 Cr in 2016-17 BE. Out of thetarget set for completion of 93,234 houses in 2015-16, till October 2015 only 30,263 houses were completed underBPGY. The BPGY is an election promise of the present rulling party as per which all kutcha houses will be converted to

pucca houses within a period of five years.

Gopabandhu Gramin Yojana (GGY) will compensate the benefits under BRGF: To redress regional imbalances in development, 20 identified backward districts of Odisha were being supportedthrough Backward Region Grant Fund (BRGF), a Central scheme, for supplementing and converging existingdevelopmental inflows. Aligning to BRGF, the State launched Gopabandhu Gramin Yojana (GGY) to provideadditional developmental assistance to the targeted 10 districts of Odisha not covered under BRGF. However, after theimplementation of 14th Finance Commission's Recommendation, BRGF has been delinked from the centre's supportduring 2015-16. Accordingly the Budget for this scheme has also shown a major increase from Rs. 225 Cr in 2014-15 toRs 650 Cr in 2015-16 RE. This has further increased to Rs. 1000 Cr in 2016-17 BE.

NRLM and MGNREGA: Mismatch between claims and allocation: Budget for National Rural Livelihood Mission (NRLM) has decreased fromRs. 398.15 Cr in 2015-16 RE to Rs. 241.70 Cr in 2016-17 BE. Again, the percentage of utilization under the availablefund was around 51 percent in 2013-14 and around 40 percent in 2014-15 (Economic Survey, 2015-16). The abovesituation contradicts to State's commitment toward reinforcing rural livelihood opportunities.

MGNREGA is a key programme to address the unemployment issues of the rural masses. Budget for MGNREGA hasreduced from Rs. 2336.42 Cr in 2015-16 RE to Rs. 1659.89 Cr in 2016-17. The number of man days under MGNREGA

has reduced from 711.83 lakh in 2013-14 to 534.75 lakh in 2014-15 (Economic Survey 2015-16). However,considering State Government announcement to increase the man days under MGNREGA in drought-hit-areas to 200days, a quantum jump was required in outlay under MGNREGA. Looking into the proposed outlay under this scheme,Government's claim to emphasize livelihood opportunities seems concerning.

No allocation under Gram Sabha Sasaktikaran Karyakram (GSSK) for consecutive two years: In order to mobilize the rural people to participate in the Palli Sabha and Gram Sabha, Government of Odisha in 2012launched a new initiative called Gram Sabha Sashaktikaran Karyakram (GSSK). An amount of Rs 2.5 Cr was allocatedunder this head during 2014-15. However, for the past two financial years this head has not been allocated any fund.

Table 8.3: Budget for major schemes under Panchayatiraj Department (In Rs Cr)

Source: Compilation from Economic Survey and Demand for Grants, GoO

Schemes 2014-15 2015-16 RE 2016-17 BE

0685-Indira Awas Yojana (IAY)/ Prime Minister Awas Yojana 886.96 1875.61 1688.261855-Gopabandhu Grameen Yojana 225.00 650.00 1000.001872-National Rural Employment Guarantee Scheme 1035.30 2336.42 1659.892112-Mo Kudia 330.11 0 03014 - Biju Pucca Ghara 150.00 700.002825-Gram Sabha Sashaktikaran Karyakrama 2.50 0.00 0.002950-NATIONAL RURAL LIVELIHOOD MISSION(NRLM) 135.91 398.15 241.70

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Fig 9.1: Share of Agriculture budget in State Budget and GSDP

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.02012-13 2013-14 2014-15 2015-16 (RE) 2016-17

11.7

2.2 2.52.6 3.1

3.5

14.3

12.6

9.6

12.1

Share of agriculture budget as % of total budget

Share of agriculture budget as % of GSDP

Budget for Agriculture and Farmers' Empowerment:The agriculture department is basically looks after the input management, extension , capacity building and plays asubstantive role in creating an enabling environment for enhancing farm income and make agriculture more profitable,sustainable and resilient. Though, budget for agriculture has been increased by 13 percent in 2016-17, it misses a roadmap for enhancing the income and reducing the indebtedness of the farmers.

There is no mention of addressing the distress of the farmers due to institutional and operational deficits. As per the 70th

round NSSO (July 2012-June 2013), in Odisha, 57.5 percent of agriculture households is indebted. The average amountof outstanding loan in Odisha is Rs 28,200.

The government has declared to amend the tenancy reforms act and for that a data base for the share croppers andtenants is required however, no allocation had been main to initiate census for share croppers and tenants.

Budget for Department of Co-operation:Provision of credit to the farmers, executing the crop insurance and providing market support including the storagefacilities for the agricultural produce are the responsibilities of the co-operation department. Budget 2016-17 has seena huge jump in allocation from Rs 807 Cr in 2015-16 RE to Rs 1823 Cr in 2016-17. This jump is largely due to allocation

26

Table 9.1: Budget for Agriculture (Major Departments) in Odisha (In Rs Cr)

Heads of Account 2012-13 2013-14 2014-15 2015-16(RE) 2016-17(BE)

Agriculture Department 1560.25 1934.73 2656.91 3232.51 3646.41Co-oparation Department 581.91 684.70 662.508 807.6947 1823.23Energy(2813-agriculture feeder in 0.00 100.99 50 0 0high agriculture load area )Fisheries and Animal Resource 303.56 392.52 478.43 592.42 683.495Development Dept.Water Resources Department 3103.13 3676.99 4290.63 6043.35 7261.57Total Agriculture Budget 5548.86 6789.93 8138.48 10675.97 13414.7069

Source: Compiled from Demand for Grants, GoO


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Ÿ In Odisha, 57.5 percent of rural households are agricultural households. In spite of the higher allocation of resourcesin the state budget for the insurance under different schemes, the benefits may not reach to the needy farmers and intime because of several reasons like lack of awareness, improper coverage and reach and complicated procedures.

Ÿ The Unit of Insurance for Paddy is Gram Panchayat (GP) and Block for other crops. In the absence of the data base ofshare croppers and tenant farmers, it cann't be argued that the enhanced allocation for insurance will reach thesecategories of farmers.

Ÿ The insurance schemes and credit schemes is related as insurance is compulsory for loanee-farmers and optional fornon-loanee farmers. This procedure automatically deprives the farmers having not taken loans.

Ÿ The benefit of interest subvention may not reach the needy farmers like share croppers and tenants in the absence offinancial inclusion. As per the findings of the 70th round of NSSO, the share of non-institutional agencies in lendingin rural Odisha is 27 percent. To avail the benefit of the interest subsidies, farmers like share croppers, small andmarginal farmers need to get the access of the financial services of the institutional agencies.

Ÿ To reduce the distress sale of paddy in Odisha and to implement the minimum support price (MSP) policyeffectively, timely completion of construction of godowns and enhancing the geographical coverage of godowns isthe need of the hour.

Budget for Water Resources Department:

Irrigation plays a critical role for the sustainable development of agriculture. Public investment in agriculture is largelymeant as investment on irrigation. For Irrigation purposes, major, medium,minor, command area development andflood control & drainage programmes are undertaken. Understanding the importance of the irrigation in Odisha, budget2016-17 has proposed to bring additional 10 lakh hecatre under irrigation by the end of 2019 and to cover additional2.57 lakh hectares during 2016-17. The share of the budget for the water resources is the largest in the agriculture

budget. In 2016-17 the share is 54 percent which is actually reduced from 56.6 percent in 2015-16.

27

Fig 9.2: Share of Department of Cooperation budget in State Budget and GSDP

2.50

2.00

1.50

1.00

0.50

0.00

1.23 1.22

0.780.95

1.94

0.23 0.25 0.21 0.230.48

2012-13 2013-14 2014-15 2015-16 RE 2016-17

Share of Co-operation Department budget as % of total budget

Share of Co-operation Department budget as % of GSDP

of Rs 300 Cr as state premium for Pradhanmantri Fasal Bima Yojana (PFBY), Rs 800 Cr for the crop insurance and Rs310 Cr for interest subvention to Co-op. Banks/ Primary Agricultural Societies (PACs) for providing Crop Loan to theFarmer. Besides, Rs 100 Cr has been provided for the warehouse infrastructure fund and Rs 100 Cr for the constructionof the godowns.


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Process of the Master Plan to irrigate at least 35% in deficit blocks in Odisha between 2004-05 to 2014-15

D h e n k a n a l

B o u d h

B a l a s o r e

K a l a h a n d i

R a y a g a d a

B h a d r a k

M a y u r b h a n j

G a n j a m

N u a p a d a

K o r a p u t

G a j a p a t i

S o n e p u r

K h u r d a

N a y a g a r h

A n g u l

D e o g a r h

K e n d r a p a r a

J a j p u r

C u t t a c k

P u r i

B a r g a r h

K e o n j h a r

K a n d h a m a l

S a m b a l p u r

B o l a n g i r

N a b a r a n g a p u r

J a g a t s i n g h p u r

M a l k a n g i r i

S u n d a r g a r h

J h a r s u g u d a

targeted irrigation potential 35% in deficit blocks in 2004-05

average % of irrigation potential created in deficit blocks as on 2014-15

28

Out of total cultivable land of 61.65 lakh hectare of the state, the irrigation coverage is 54% which is 33 lakh hectare ason December 2014. In spite of the growth of budget for the Water Resources Department in last three years, irrigationcoverage is not geographically inclusive. For example, a master plan was launched during 2005-06 for providingirrigation facilities to at least 35% of the cultivable area of every block during 12th Plan Period (2012-2017).

Accordingly,198 blocks out of 314 blocks in the state were identified in having less than 35% irrigation facilities.However, by the end of December, 2014, 139 deficit blocks in which 35% irrigation facilitieswas not provided. The

below graph depicts that in the tribal dominated districts like Keonjhar, Bolangir, Malkanagiri, Sundargarh Nabarangpur and coastal districts like Jagatsinghpur, the master plan is a big failure.

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

6.6 6.6

5.1

7.17.7

1.2 1.3 1.41.7 1.9

2012-13 2013-14 2014-15 2015-16 (RE) 2016-17

Share of water resources as % of total budget

Share of as % of GSDP

water resources

Fig 9.3: Share of Water Resources Department budget in State Budget and GSDP


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Agriculture & Allied Sectorsin Five year plans of Odisha

Budget for National RuralHealth Mission in Odisha

Budget for SC subplan andTribal subplan in Odisha

Citizen's Report on access toGovt. entitlements in KBK

Districts

Development Spending forPrimitive Tribals

District Budget forElementary Education

Financing for Children'sDevelopment in Odisha

Financing Right to Education

Identify Suitable Strategy forDevelopment Sectors inTwelfth Five Year Plan,

Odisha

Juanga Janajati BikasaLakhyare Gosti Yojana O

Budget Prastuthi

Know Your Budget And ItsProcess

Odisha State Budget 2013-14(A Response)

Prasikshakanka Pustika RajyaBudget Ku Janiba Saheti Prasnara Uttara

Use of Community Radio inBudget Advocacy by CYSD

Odisha State Budget 2012-13(A Response)

OBA C P

u b l i c a t i on

s



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Enable-Empower-Include...

Centre for Youth and Social Development

PO. RRL, Bhubaneswar - 751 013, Odisha, IndiaE-1, Institutional Area, Gangadhar Meher Marg,

Prepared by:Odisha Budget and Accountability Centre (OBAC)

OBAC a constituent unit of CYSD, is working onpolicy and budget research , demystification of the

budget and its process and evidence based advocacyfor pro-poor budgeting and policy practices in thestate. The centre promotes accountability tools likecommunity score card, citizen report card, socialaudit, expenditure tracking, and community ledmonitoring for enhancing the effectiveness of publicservice delivery and encourage participation indecentralized planning and budgeting in Odisha.

The key areas of the centre are:

Ÿ Macro State Budget AnalysisŸ Social Sector Budget Analysis (Health, Education,

ICDS, Water & Sanitation)Ÿ Budget for Disadvantaged groups (Women, ST &

SC Development)Ÿ Agriculture and LivelihoodsŸ Decentralized Planning & BudgetingŸ Citizen Led Accountability of basic services (PDS,

ICDS, Maternal Health, Water & sanitation etc)

Odisha Budget andAccountability CentreOBAC

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