What
then could be the focus areas of this budget, a part from
the widespread expectation of reduction of import duties?
Five areas need urgent attention, and this budget could
mark radical departure in all these sectors and make 10%
growth in the next decade a reality.
First,
the focus should be on education. It is sad that even now
we only emphasize enrolment and literacy, and Sarva Siksha
Abhiyan is our only flagship programme. Despite allocations
in primary education, outcomes are appalling. Enrolment
has picked up; but recent surveys (ASER 2005 and 2006) indicate
that most of our children are not benefited. 28.5% of all
rural children in 11-14 years age group attending both private
and public schools, are not able to read a short story (one
paragraph) of grade 2 difficulty; 45% cannot do a simple
arithmetic division. We need to invest in teacher training,
inspections, random tests to measure outcomes to enable
midcourse correction, and stake-holder empowerment. And
we need to quickly put in place a massive programme for
imparting quality secondary education. We cannot sustain
a modern economy or a robust democracy with only a smattering
of literacy. Every child must be guaranteed twelve years
of school education which prepares her for productive work
or higher education.
Second,
our health care continues to be in shambles. The National
Rural Health Mission is a modest beginning, but not good
enough. Public investment must rise to at least 2% of GDP
by 2011. Even more important, the incentives need to be
altered by risk-pooling mechanisms, money following the
patient, and local control and accountability. A nation
which aspires to be a big power and an economic giant cannot
allow 80% of children and 56% of women to be anaemic, and
millions of people meeting untimely deaths and families
facing economic ruin on account of sickness.
Third,
the bulk of young people joining labour force have neither
skills nor opportunities to be productive workers. Our organized
work force in manufacturing sector is still of the order
of only 6 million, constituting 1.3% of the labour force.
About 100 million youngsters will join the labour force
over the next decade. Most of these new entrants are eager
to create wealth and make a living, but lack the skills
and opportunity. In the long term meaningful education should
impart skills. But these youngsters are waiting today for
work. Therefore, a massive national programme to impart
skills to make them employable is vital. Its cost will be
modest, and gains in social harmony and economic growth
will be immense. Coupled with that, labour laws need to
be liberalized, to stimulate small and medium enterprises
and promote employment.
Fourth,
agriculture continues to be in crisis, even as a storm is
raised over increase in prices of pulses and onion. Several
steps should be initiated to stimulate rural economy; effective
market linkages to assure fair price to both farmers and
consumers; increase in import tariff on cotton to deny subsidised
OECD farmers advantage at the cost of our farmers; massive
promotion of value addition of agricultural produce along
with infrastructure for storage and preservation; and improved
credit through rejuvenation of cooperatives. The FM should
launch a massive programme to assist states, provided they
come forward to liberate markets and cooperatives from bureaucratic
clutches. Our agricultural market committees in most parts
of India, except in Punjab and Haryana, where Sir Choutu
Ram's Mandi Act created robust markets, have become dens
of corruption and patronage. The plight of cooperatives
under stultifying state control is well known. Vidyanathan
Committee made practical recommendations, and the FM needs
to act on them.
Finally,
power and transport sectors need special attention. Decentralized
distribution of power through the community or franchisees,
metered power distribution with effective energy auditing
and massive up-gradation of distribution network to prevent
technical losses are vital to transform power sector. Our
cities are slowly getting paralyzed because of bad transport,
and economy is bound to be affected as growth is increasingly
urban. High cost public transport choices like tube rail
(about Rs. 150 Cr per KM) must give way to low cost models
like rapid bus transport system, and integrated management
of rail and road transport.
The
current mood of optimism and robust revenues give the FM
a priceless opportunity to accelerate growth and sustain
it, while promoting equity and harmony.
***