1. 1 Child Budgeting in India April 25, 2006 Dr. Loveleen Kacker Ministry of Women and Child Development H

2. 2 Overview of the Situation in India Significant results have been achieved for children and women in India over the past decade However, many trends in key indicators must accelerate if the national development targets are to be met

3. 3 Significant economic progress –Impressive economic growth since early 1990s –Foreign Exchange reserves exceeding US$100 billion –Global IT industry, outsourcing of business processes Growing global political influence and aspirations –Seat on Security Council –India as donor to other developing countries –Global champion of democracy Even as some indicators on India show a country that is “shining”…

4. 4 … others show a worrisome stagnation in the social sector Income Growth vs. Infant Survival

5. 5 Deaths per 1,000 live births Target is to reduce Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 There was good progress in infant mortality reduction during the 1980s... … but progress has slowed since 1993. Source: Sample Registration System 2002, India 60 Target : 45 by 2007 55

6. 6 The national average IMR also conceals significant disparities between the states... Uttar Pradesh Madhya Pradesh Karnataka Lakshadweep U.T. Maharashtra Goa Kerala Tamil Nadu Pondicherry Andhra Pradesh Dadra & Nagar Haveli Rajasthan Gujarat Daman & Diu Jammu & Kashmir Delhi Haryana Punjab Chandigarh U.T. Bihar West Bengal Orissa Andaman & Nicobar Islands Mizoram Meghalaya Assam Sikkim Manipur Tripura Arunachal Pradesh Nagaland Himachal Pradesh Source: Sample Registration System In 2003, there was a 77 point difference between Orissa (87 per 1,000) and Kerala (10 per 1,000)

7. Source: NFHS 1998-99 Basic Child Health still needs to be improved Proportion (%) of young children (0 to 3 years) who are Not fully vaccinated58 Not vaccinated at all14 Birth was not preceded by any antenatal checkup34 Suffer from moderate or severe anaemia51 Had fever during the last two weeks30 Had diarrhoea during the last two weeks19 Had symptoms of acute respiratory infection during the last two weeks19

8. 8 Child malnutrition in India remains a serious concern Per cent 20-30 30-40 40-47 National Average and Above (47 +) Source: NFHS 1 & 2, 1992-93 & 1998-99

9. 9 Universal Primary Education has not yet been achieved Children age 5-14 years currently attending school, 2000 Source: MICS, 2000

10. 10 Literacy rates have improved in the last decade Increase in Literacy ( 1991-2001) 38.7 63.2 44 72.2 51.5 54 75.6 59.2 80.1 65.2 0 10 20 30 40 50 60 70 80 90 Female Male Rural Urban Total 1991 2001

11. 11 The girl child continues to be fatally discriminated against in many areas Child Sex Ratio 2001 (by district)

12. 12 Birth registration Street children Child labour Child marriage Trafficking in children Juvenile justice Orphans/abandoned/destitute children Adoption Child Protection issues must also be addressed

13. 13 Reduce IMR to 45 per 1,000 live births by 2007 All children in school by 2003, all children to complete five years of schooling by 2007 Reduce the gender gap in literacy by at least 50% by 2007 Increase literacy rates to 75 per cent by 2007 Reduce Maternal Mortality Rate (MMR) to 2 per 1000 live births by 2007 The 10 th Plan outlines ambitious targets The challenge is to ensure economic progress translates into social development

14. 14 Rationale for Child Budgeting In unequal societies, protecting children´s rights (eg: health, education, nutrition) requires distribution of resources via State action (taxation and social spending) The current insufficient level of public resources allocated to the social sector is one important reason for this slow rate of progress. To secure children´s rights effectively, adequate funding is a necessary, but not sufficient condition Article 4 of the Convention of the Rights of the Child notes the obligation of States to implement rights to the maximum extent of their available resource; this implies an analysis of public budgets, including its effects on children, is necessary

15. 15 Child Budgeting is one way to address these concerns and promote child rights Child Budgeting is an attempt to examine what resources government is allocating to programmes that benefit children, and whether these programmes adequately reflect the needs and rights of children. Several questions arise: –Does the State have enough resources? –Will these resources be available in a timely manner? –Are these resources used in an efficient and equitable way?

16. 16 Objectives of a child budget initiative 1.Higher allocations for children in public budgets as required to reach national development targets and the MDGs 2.Improved utilisation of allocated provisions, through fiscal decentralization, participation, transparency and accountability

17. 17 Child Budgeting initiatives are underway in numerous different countries Australia: “women’s budget” since 1984 South Africa: children’s budget project since 1994 Brazil: children’s budget project since 2001-2 Kenya, Uganda, Tanzania: children’s budget project since 2005

18. 18 The allocations for flagship programmes in 2006-7 increased by nearly 50% from 2005-6 Allocations for Flagship Programmes (INR crores)

19. 19 Social sector expenditures have been increasing… Growing economy Increased policy efforts and expansion of programmes

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22. 22 …but this is still low in comparison to other developing countries This is especially concerning since children comprise over one-third of India’s population

23. 23 Total budgetary provisions for children as a proportion of total expenditure has increased 2.11% in 2001-02 (RE) to 4.86 % in 2006-07 Child Protection continues to be neglected

24. 24 1999-002000-012001-022002-032003-042004-052005-06 % increase since 99/00 Elementary Education28523150373243024900800012532339 Health1062125013931480165122112908174 Family Welfare3120320035064174495553006424106 Women & Child Development1250135016422085260024003875210 Water & Sanitation 2250275033004750 Central Plan Outlay in Core Rs. Source: Government of India, Budget Document

25. 25 Child Budgeting in India Of every 100 Rupee allocated by the government, only three rupees and seventy-seven paise is being allocated for children

26. 26 Percentage Share of Various Sectors in the Total Child Budget YearTotal Child Budget % Share of Child Developme nt (DWCD) % Share of Child Health (Health and Family Welfare) % Share of Education (Elementary and Secondary Education) % Share of Child Protection (MSJE and Labour ) 2003-0410234.7321.414.762.91.0 2004-0511678.0217.3 64.21.2 Data: GOI Expenditure Budget 2003-04, 2004-05 (Vols 1&2). Source: HAQ Centre for Child Rights

27. 27 Changes in expenditure on education and health as proportion of total expenditure (all states) YearEducationHealth 2000-0117.44.7 2001-0216.14.4 2002-03154.1 2003-0412.63.6 2004-0513.43.8

28. 28 Importance of States States are primarily responsible for the provision of social sector services, yet are dependent to a certain extent on flows from the Central government. Ironically, state governments tend to cut back their spending as allocations by the Centre increase. There is a wide variance across states in social sector expenditures

29. 29 Issues for concern Weak monitoring systems and limited use of evidence at local levels: Absence of performance appraisal – field reports are not verified, quality is not measured Poor accountability & high absenteeism: Frequent transfers, vacant posts particularly in remote locations, poor performance of service-providers Uncertainty about release of funds Predominance of vertical, issue-specific approaches: about 240 centrally sponsored schemes to monitor Low levels of community involvement in management of services Management and systemic bottlenecks particularly in disadvantaged states Greater efforts to improve delivery needed in poorer states which have capacity constraints

30. 30 Taking Child Budgeting forward… State-level exercises on Child Budgeting, led by the Ministry of Women and Child Development in partnership with Planning and Finance Departments are being initiated in 2006 across the country These are aimed at strengthening the planning process for the 11th Plan period (2007-2012) and beyond.

31. 31 …will go hand in hand with the Outlays to Outcomes initiative Shift focus from input controls to monitoring of outcomes - Develop intermediate and final outcome indicators, and collect reliable information, even on a sample basis - Use available information for remedial action - Improve M & E capacity within & outside government Encourage knowledge based advocacy - Collect best practices

32. 32 Conclusions: The Challenges we Face Reducing inequalities is a key priority for children Progress is not taking place at a fast enough rate to constitute real change While overall resources for the social sectors are increasing, we need better targeting to ensure that all child-related needs are adequately resourced Overhaul of budgeting and management systems required to ensure that outlays are increased and translate into meaningful outcomes for all children

33. 33 Way Forward Increased allocation for children’s issues Improved implementation and utilization: put systems in place for improved delivery and monitoring Suggestion is that review workshops be held in each state to review progress, analyze budgets and develop action plans –UP, Chattisgargh to hold theirs in May

34. 34 Child Budgeting Methodology/Data Sources Union Budget documents, in particular the Annual Financial Statement and Expenditure Budget Vol. II (Notes on Demands for Grants), for various years. Data for Union Government’s expenditures on Social Services have been collected from the Annual Financial Statements (AFS). Data for Union Government’s allocations for programmes/ schemes meant specifically for children have been taken mainly from Expenditure Budget Vol. II (Notes on demands for Grants) for various years. Selection of programmes/ schemes (from among all programmes/ schemes funded by the Union Government) as directly addressing the specific needs of children is a subjective exercise,