In the conflicting pressures between the Left and the Right, the budget has become a mere exercise of fund allocation and tweaking of tax rates. The allocation of funds is also on standard lines except for one — social sector schemes. Total outlay on social services has been increased to Rs 80,315 crore, up from Rs 59,143 crore (2006-07 RE). This accounts for about a quarter of total expenditure. And includes programmes such as Sarva Shiksha Abhiyan, Midday Meal scheme and Integrated Child Development Scheme.

While others debate the lack of direction and stagnation of the reform process due to political pressures, there is one area that the government can strengthen on the back of unanimity across the political spectrum — plugging leakages in social sector schemes.

The Economic Survey 2006-07 mentions three priorities for the government — managing and sustaining high growth; bolstering fiscal prudence and high investment; and improving the effectiveness of government intervention in the social sector. Emphasis has been given through the document on the need for plugging leakages in service delivery and focusing on outcomes. Rajiv Gandhi’s famous statement that only 15 paisa out of 100 reaches the poor has since been supplemented by many studies reporting eventual percolation to the intended beneficiaries ranging from 5 to 50 per cent. Then there are the fascinating cases such as commodities stolen from PDS finding their way back into FCI godowns. With the government committed to ever-increasing social sector expenditures, scientific evaluations need to be built in as an integral part of the policy formulation and administrative overseeing process.

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