Skip to main content

Poverty reduction: Unanswered questions on Govt of India's 'functioning', budget cuts

By Bharat Dogra* 

There are several widely publicized schemes of the government to reduce poverty and increase welfare of people, but in order to understand their real impact many relevant questions need to be asked.
In the case of rural employment guarantee or NREGA we need to know to what extent the demands for employment works are actually being met, and to what extent the 100 day employment entitlement in a year is being met? Are wages adequate and are these being paid in time?
If there are delays beyond the stipulated period, how long are these delays and is any compensatory payment made for the delay? Are essential worksite facilities being provided? Is the work taken up contributing to sustainable development of village? Are wage payment and attendance procedures such as to cause avoidable delays, expenses and harassment to workers and ‘mates’?
In the middle of all these issues, is the NREGA still the great help for the poorest it is supposed to be? Has the contractor system made a backdoor entry? To what extent is the work being done by machines but shown to be done manually? Are old works being shown as new works? What is the scale of corruption in implementation?
Is what is being done in the name of reducing corruption having adverse impacts in terms of increasing problems of workers and is a different, community-based approach to checking corruption needed?
In the case of housing for rural poor scheme or PM Awas, is the money being given really adequate for a satisfactory and safe house, particularly when it is given in installments? Are corruption and commissions involved in getting the payments, and what is the net help the beneficiary gets after paying all commissions? Due to the role of corruption and other factors, are the poorest actually selected, or do many of the houses go to those better-off families who have influence and can afford to pay bribes?
In the case of rural sanitation schemes, once a village is declared ODF, after about a year or two is a review done to find out how many of the toilets are actually being used and to what extent open defecation still continues and what are the reasons for this? In areas where new toilets are widely used, has poor construction led to contamination of water sources? What is being done about this?
In the cases of water schemes, even when new pipelines and taps are in place, has adequate attention been given to protecting the source of water and to water conservation?
Are factors like deforestation and indiscriminate mining continuing to reduce water conservation and deplete water sources? Is more water being diverted to industries and big cities (where it is used more wastefully) from villages?
Are agricultural schemes contributing to sustainable, ecologically protective, low-cost, low-risk, climate resilient and self-reliant development, or are these merely aimed at providing some short-run benefits and/or promoting the dominance of big business interests (such as by promoting GM seeds)?
These and similar questions have to be raised to understand the real impact of welfare and poverty reduction schemes. Another question that should get serious attention relates to the extent to which the budget allocations announced for several schemes are cut later. In recent years the tendency to make big cuts in these schemes has increased.
This will be clear from some examples given for 2021-22.
In the year 2021-22 for the Ministry of Tribal Welfare, the original allocation (or Budget Estimate, or BE) of Rs. 7524 crore ( one crore=10 million) was cut to Rs. 6181 crore at the time of preparing the Revised Estimate (RE). The Umbrella Program for Development of Scheduled Tribes had a BE during 2021-22 of Rs. 4303 crore but this was later revised downwards to 3797 crore. 
For the Umbrella Program for the Development of Minorities the budget for the past year was cut from Rs 1,564 crore to Rs 1,373 crore. In the case of the Umbrella Program for the Development of Other Vulnerable Groups there was a budget cut from Rs 2,140 crore to Rs 1,930 crore.
If we look at the Ministry of Labor, the Budget for Labour Welfare Scheme was reduced from BE of Rs 150 crore to RE of Rs 119 crore during 2021-22. For PM Shram Yogi Maandhan the BE of Rs. 400 crore was later reduced to RE of Rs. 350 crore. For PM Karam Yogi Maandhan the BE of Rs 150 crore was reduced amazingly to RE of just Re 1 crore. The allocation for child labor was reduced to just one fourth of the original allocation. An allocation of Rs 120 crore ( BE) was made for the National Child Labor Project (including grants to voluntary organizations). While preparing the revised estimates, this was cut to just Rs. 30 crore (RE).
At a time of growing concern over increasing unemployment, it was widely felt that the allocation for the core scheme of Jobs and Skills Development deserves more support, but during 2021-22 its BE of RR 3,481 crore was also reduced to RE of Rs 2,753 crore.
At a time of decreasing labor participation rate of women and the widely felt need for increasing this, it was considered surprising that the BE of Rs 48 crore for the Mission for Protection and Empowerment of Women was cut from Rs 48 crore to Rs 10 crore in the Revised estimate ( RE) in 2021-22. The Budget for Mission Shakti (Protection and Empowerment of Women ) was cut from Rs 3,109 crore (BE) to Rs 2,121 crore (RE).
The National Livelihood Program (Ajeevika) is an important program but even its budget was slashed during 2021-22 from Rs 14,472 crore (BE) to Rs 12,504 crore (RE).
The budget for National Handloom Development Program was cut during 2021-22 from Rs 220 crore to Rs 180 crore. Yarn supply scheme is important for weavers. Its budget was cut during the same year from Rs 155 crore to Rs 105 crore.
The Budget of the Department of Persons with Disabilities was reduced from Rs. 1171 crore to Rs 1,044 crore during 2021-22.
There is a scheme of Vanchit Ikai Samooh Aur Vargon Ki Arthik Sahayata. This means a scheme for economic assistance to deprived units, groups and classes and is more conveniently named as VISVAS. A budget of Rs 150 crore was allocated for this in 2021-22 but this was reduced to just Rs 20 crore at the time of preparing the Revised Estimate.
Clearly there have been many cases of arbitrary and indiscriminate cuts in schemes and programs meant for weaker sections and this means that in the case of many of these cuts a lot of welfare benefits could not reach people much in need of these. In some cases the cuts made are really big cuts. Cuts have been even made in the case of the core schemes and core of the core schemes.
All these questions relating to actual functioning as well budget cuts need to be examined carefully to get a clear idea of the actual impact of various schemes and programs on poverty reduction and welfare of people.
---
*Honorary convener, Campaign to Protect Earth Now. His recent books include ‘A Day in 2071’, 'Man over Machine' and ‘When the Two Streams Met'

Comments

TRENDING

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das  The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman*  The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra   There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat*  The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra   A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor*  Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari  The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...