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Child Budgeting in India
Dr. Loveleen KackerMinistry of Women and Child
Development
April 25, 2006
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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

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Even as some indicators on India show a country
that is shining

• Significant economic progress
• Impressive economic growth since early 1990s
• Foreign Exchange reserves exceeding US100
  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

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others show a worrisome stagnation in the
social sector
Income Growth vs. Infant Survival
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Target is to reduce Infant Mortality Rate (IMR)
to 45 per 1000 live births by 2007
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Deaths per 1,000 live births
Target 45 by 2007
Source Sample Registration System 2002, India
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The national average IMR also conceals
significant disparities between the states...
Jammu Kashmir
Himachal Pradesh
In 2003, there was a 77 point difference between
Orissa (87 per 1,000) and Kerala (10 per 1,000)
Punjab
Chandigarh U.T.
Haryana
Delhi
Arunachal Pradesh
Uttar Pradesh
Sikkim
Rajasthan
Assam
Nagaland
Meghalaya
Bihar
Manipur
West Bengal
Tripura
Mizoram
Madhya Pradesh
Gujarat
Orissa
Daman Diu
Dadra Nagar Haveli
Maharashtra
Andhra Pradesh
Goa
Karnataka
Andaman Nicobar Islands
Pondicherry
Tamil Nadu
Kerala
Lakshadweep U.T.
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Basic Child Health still needs to be improved
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Child malnutrition in India remains a serious
concern
Source NFHS 1 2, 1992-93 1998-99
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Universal Primary Education has not yet been
achieved
Children age 5-14 years currently attending
school, 2000
Source MICS, 2000
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Literacy rates have improved in the last decade
Increase in Literacy ( 1991-2001)
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The girl child continues to be fatally
discriminated against in many areas
Child Sex Ratio 2001 (by district)
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Child Protection issues must also be addressed

• Birth registration
• Street children
• Child labour
• Child marriage
• Trafficking in children
• Juvenile justice
• Orphans/abandoned/destitute children
• Adoption

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The 10th Plan outlines ambitious targets

• 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 challenge is to ensure economic progress
translates into social development
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Rationale for Child Budgeting

• In unequal societies, protecting childrens
  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 childrens 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

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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?

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Objectives of a child budget initiative

• Higher allocations for children in public budgets
  as required to reach national development targets
  and the MDGs
• Improved utilisation of allocated provisions,
  through fiscal decentralization, participation,
  transparency and accountability

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Child Budgeting initiatives are underway in
numerous different countries

• Australia womens budget since 1984
• South Africa childrens budget project since
  1994
• Brazil childrens budget project since 2001-2
• Kenya, Uganda, Tanzania childrens budget
  project since 2005

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The allocations for flagship programmes in 2006-7
increased by nearly 50 from 2005-6
Allocations for Flagship Programmes (INR crores)
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Social sector expenditures have been increasing

• Growing economy
• Increased policy efforts and expansion of
  programmes

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but this is still low in comparison to other
developing countries
This is especially concerning since children
comprise over one-third of Indias population
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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

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Central Plan Outlay in Core Rs.
Source Government of India, Budget Document
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Child Budgeting in India

• Of every 100 Rupee allocated by the government,
  only three rupees and seventy-seven paise is
  being allocated for children

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Percentage Share of Various Sectors in the Total
Child Budget
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Changes in expenditure on education and health as
proportion of total expenditure (all states)
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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

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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

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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.

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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

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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

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Way Forward

• Increased allocation for childrens 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

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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 Governments expenditures
  on Social Services have been collected from the
  Annual Financial Statements (AFS). Data for
  Union Governments 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,