Budget cuts: The ripple effect on social welfare schemes

This essay is part of the series "Budget 2024-25"

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The Union Budget 2024-25 has committed to strengthening the GYAN model to empower the ‘Garib’ (poor), ‘Yuva’ (youth), ‘Annadata’ (farmer), and ‘Nari’ (women). It has outlined a comprehensive strategy for a ‘Viksit Bharat’ aimed at economic growth, social welfare, and sustainable development. The Budget, however, has been disappointing and disheartening, with reduced allocations for crucial social welfare programmes for women and children. India is obligated under the National Food Security Act to provide for nutritional security by ensuring access and affordability of good quality food. As per the census 2011, India is home to 48 and 19 percent of women and children respectively. As per the National Family Health Survey, these 48 percent of women contribute to 18 percent of the gross domestic product (GDP); bridging the gender gap can lead to a 30-percent increase in India’s GDP. It is imperative to safeguard women and children to ensure a healthy future. Unfortunately, the Budget barely covers the nutrition needs of women and children.

The Union Budget 2024-25 has committed to strengthening the GYAN model to empower the ‘Garib’ (poor), ‘Yuva’ (youth), ‘Annadata’ (farmer), and ‘Nari’ (women).

Figure 1: Budget allocation 2024-25

Poshan 2.0 and Saksham Anganwadi are umbrella schemes that aim to address malnutrition in women and children through nutrition support, early childhood care education, and Poshan Abhiyaan. It started with an ambitious target of reducing stunting, underweight, and low birth weight by 2 percent per annum and anaemia by 3 percent per annum by 2025. As per the last survey data, stunting, wasting and being underweight in children under five stands at 35.5, 19.3, and 32.1 respectively. This important programme has been allocated INR 21,200 crore for the financial year 2024-25 as against the INR 20,552 crore budget estimate of the previous year (2023-24) (Figure 1). A miniscule 3 percent increase when adjusted for inflation falls to less than 2 percent. According to the Global Hunger Index 2023, India ranks at 11 out of 125 countries with the highest rate of childhood stunting. Globally, India contributes 49 percent of childhood wasting. Overall, too, the Ministry of Women and Child Development has seen a marginal increase of 2.5 percent in its total budget allocation from INR 25,448 to INR 26,092 crore from 2023-24 to 2024-25 respectively.

Poshan 2.0 and Saksham Anganwadi are umbrella schemes that aim to address malnutrition in women and children through nutrition support, early childhood care education, and Poshan Abhiyaan.

The allocation of INR 2,517 crore to the SAMARTHYA sub-scheme, which supports programmes like women hostels, Swadhar Greh, and Pradhan Mantri Matru Vandana Yojana, is a 2.5-percent decrease from the previous year’s INR 2,582 crore budget estimate. Although it looks way above the 2023-24 revised budget of INR 1,864 crore, which indicates poor utilisation of the funds, analysis indicates poor coverage among beneficiaries with existing allocation. According to NFHS 5, 64 percent are exclusively breastfed, 46 percent receive timely complementary, with only 11 percent of the children (6-23 months) getting a minimum adequate diet. Anaemia is also on the rise. This shows a severe lack of implementation with low coverage, delayed payments, and the lack of awareness among women. The evaluation of the scheme suggests the potential to improve the status of childhood anaemia. 

However, it is important to note that the above schemes have been clubbed and do not provide for allocation across sub-themes, making in-depth analysis impossible. 

Figure 2: Food subsidy allocation across the last three union budgets

Further, it is disturbing that the budget for food subsidies has been reduced (Figure 2), even though funding in this crucial safety net is needed to address the serious issue of malnutrition and food insecurity. In a recent study conducted in 92 low and middle-income countries, India ranked highest for children (6-23 months) at 19.3 percent, who had not consumed any food in the last 24 hours. The 2022-23 household consumption survey in India shows a decline in food spending and a shift towards calorie-dense food and a shift away from macro and micronutrient-rich foods. Even though ‘Productivity and resilience in agriculture’ have been accorded priority in the budget 2024-25, the allocation increased by 4.6 percent over the 2023-24 budget estimate, barely making up for the risks to food security and inflation.

Table 1: Nutrition-Sensitive Programmes in the Union Budget 2022-23, 2023-24, 2024-25

Malnutrition is a multifaceted problem with underlying determinants of undernutrition which can be addressed through nutrition-sensitive interventions. It is crucial to address issues of employment, hygienic conditions, food security, and access to healthcare services in budgeting and ensure that it is not addressed in isolation. Table 1 indicates the budget estimate and revised estimate for the National Rural Drinking Water Mission, Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGA), PM-Poshan, and Agriculture & Food Security programmes. The budget for safe drinking water remains stagnant and MNREGA remains the same as last year’s revised budget. PM-POSHAN or the school meal scheme got an increase of 7.5 percent from the previous year’s budget estimate. When compared to the 2023-24 revised estimate, the budget has increased by 25 percent, however, there have been concerns about the poor quality of food being provided under the scheme. 

Malnutrition is a multifaceted problem with underlying determinants of undernutrition which can be addressed through nutrition-sensitive interventions.

Evidence indicates the need for targeted policies and equitable budgeting to ensure support for vulnerable and marginalised communities. The Government of India's attempts to combat hunger and ensure nutritional security seem a long way off, with just a minor rise in Saksham Anganwadi and Poshan 2.0, coupled with maternity entitlement and PM-Poshan.

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Shoba Suri is a Senior Fellow at the Observer Research Foundation

• Indian Economy
• India
• GYAN Model
• India Budget 2024-2025
• Narendra Modi
• Nirmala Sitharaman
• Union Budget 2024-2025

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