Budget Should Priorities Health and Education

Context: Pandemic has revealed the glaring shortfalls in basic areas of development; hence Budget 2021-22 must be focused on providing state support to the major sectors of the economy.

Sectors in Need of Special Attention in Budget

• Micro Small and Medium Enterprise (MSME): that employs 110 million workers and contributes 30% of GDP have either closed down or reduced their workforce amid pandemic.
  • Past credit packages overlooked micro firms and informal segment (need maximum handholding to survive) at the cost of big corporates.
  • Bureaucratic hurdle is faced by SMEs in availing relief under the new scheme and seeking fresh loans.
• Healthcare: India’s health expenditure (1.5% Gross Domestic Product (GDP)) than China (5%) and European countries (7-8%) and infrastructure are inadequate to meet needs of a health emergency.
  • Problems with the frontline health workers: Accredited Social Health Activists (ASHAs) lack adequate protective equipment despite being involved in contact tracing, nor were they given priority or free testing facilities.
• Education: India’s education sector (lowest expenditure of 2.8% of GDP) has faced many problems:
  • Poor digital education infrastructure and the huge digital gap in terms of access to mobile phones, televisions or laptops for online learning.
  • Reliance on mid-day meals has affected the health of children due to the closure of schools.

Conclusion:  Budget 2021-22 has to be more than just an accounting exercise; it needs to completely shift the direction of developmental goals.