At a time when education and health care are considered priorities for post-pandemic recovery, the Union Budget sets the right tone in terms of a few long-term, forward-looking plans, but has crucial misses in terms of improving existing schemes, and basic on-ground infrastructure and access
In her Union Budget speech on February 1, Finance Minister Nirmala Sitharaman announced a few provisions related to health care, education and skilling under a priority titled ‘Inclusive Development’. This included provisions targeted at skilling, research and increase in manpower, like establishment of nursing colleges, multidisciplinary courses for medical devices, national digital library for children and adolescents, and new programme to promote research and innovation in pharmaceuticals through centres of excellence (more in the box ‘Announcements’).
Spending towards both health and education has increased in terms of absolute numbers compared to last year, but reduced marginally as a percentage of overall Budgetary allocations. The Budget Estimates towards health care for 2022-23 stood at Rs86,200 crore for the ministry of health, which was revised to Rs79,145 crore for the same period. The estimated outlay this year is Rs89,155 crore. While health care spending occupied about 2.2 percent of the Budget last year, it reduced to 1.97 percent this year (see box).
In education, the allocations have increased from Rs10,4277 crore (Budget estimates 2022-23) and Rs99,881 crore (Revised estimates 2022-23) to Rs112,890 crore this year. Expenditure on education as a percentage of overall Budgetary allocation has reduced to 2.5 percent this year, compared to 2.64 percent last year (see box).
The New Education Policy (NEP) envisaged that spending on education would be at least 6 percent of gross domestic product (GDP). While we are heading nowhere close to that for a variety of reasons, including the global economic slowdown in the wake of the Covid-19 pandemic, an important indicator to keep in mind is effective implementation followed by Budgetary announcements. “Are we just announcing new initiatives, or do we have the wherewithal to take it to completion?†asks Narayanan Ramaswamy, national leader of education and skill development practice, KPMG India.