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Economic Survey 2000-2001
[Review of Developments]
Supply Side: Production
Social sectors
1.38 Plan and non-plan expenditure of the Central Government on various components of social sectors has increased from of Rs. 9608 crore in 1992-93 to Rs. 36,270 crore in 2000-01 (BE), an increase of about four times in a matter of just eight years. As a proportion of total expenditure, the combined plan and non plan expenditure of the Centre rose from 8.1 per cent in 1992-93 to 10.7 per cent in 2000-01. The plan expenditure of the Centre, as a percentage of GDP at current market prices on major schemes of social sectors has been hovering between 1.1-1.2 per cent during the last decade. However, the central plan outlay in 2000-01(BE), as compared to the previous year’s revised estimate increased by 24.3 per cent for the education sector as a whole and 26.5 per cent for elementary education programmes; by 29.8 per cent for health sector programmes; by 16.8 per cent for women and child development; and by 12.8 per cent for family welfare schemes.
1.39 National programmes combatting major public health problems have resulted in steady improvement in basic indicators of human development. While the crude death rate declined from 12.5 per thousand in 1981 to 9.8 in 1991, and further to 8.7 in 1999, the infant mortality rate per thousand declined from 110 in 1981 to 80 in 1991 and further to 70 in 1999. As far as the educational status of population is concerned, the literacy rate had increased from 43.6 per cent in 1981 to 52.2 per cent in 1991 and to 62 per cent in 1997 as a result of intensifying the efforts under the national literacy mission.
1.40 In the seven years of post-reform period, from 1992-93 to 1998-99, the average annual real wage for non-agricultural sector was Rs. 2.64 compared to Rs. 2.29 for the pre-reform period, i.e. 1987-88 to 1991-92, for which all-India estimates are available.
1.41 Alleviation of poverty remains a major challenge before the nation. A comprehensive All India Household Consumer Expenditure Survey is undertaken roughly every 5 years which also forms the basis for estimating the level of poverty in the country. Comparable estimates based on a consistent methodology and data set are available until 1993-94. The estimated magnitude of poverty remained fairly high until the late 1970s. The proportion of people below the poverty line has been declining since the early 1980s along with the achievement of higher economic growth. The 1993-94 estimates placed the all India poverty ratio at 36 per cent
1.42 Some of the key results of the 55th Round of the Household Consumer Expenditure Survey of the National Sample Survey Organisation (NSSO) covering the period July 1999 to June 2000, have now become available showing a very significant decline in poverty to 26 per cent based on a 30-day recall and 23.3 per cent on a 7-day recall methodology. These two sets of estimates may not be strictly comparable to the earlier estimates of poverty. Nonetheless, they provide clear evidence indicating a substantial decline in the overall poverty ratio in the country during the 1990s.
1.43 Stabilising population is an essential requirement for promoting sustainable development and its equitable distribution. The National Population Policy (NPP-2000) recognises the fact that population stabilisation is as much a function of making reproductive health care affordable, as other life quality improving services such as primary and secondary education, sanitation, drinking water, housing, transport, communication and empowering women and enhancing scope for their employment. In pursuance of the NPP 2000, a national commission on population has been set up. State level commissions on population have also been set up with the objective of ensuring implementation of the policies.
1.44 National health programmes are implemented to control communicable and non-communicable diseases like malaria, tuberculosis, leprosy, blindness, AIDS, cancer etc. Strengthening of disease surveillance and response systems has also been undertaken to prevent outbreak of infectious diseases. HIV/AIDS is now sought to be projected as a socio- economic issue and not merely as a public health matter. The second phase of national AIDS control programme was launched in November 1999 at an estimated cost of Rs.1,425 crore over the next five years. Efforts have been to achieve zero incidence of polio by the end of the year 2001. The incidence of polio has sharply declined with many states reporting not a single case or only one or two cases of wild polio virus. The virus is, however, reported to be still active in U.P. and Bihar.
1.45 The National Housing and Habitat Policy, 1998, has been formulated with the objective of creating 20 lakh dwelling units each year. It also seeks to ensure that housing, along with supporting services, is treated as a priority sector at par with infrastructure. The central theme of this policy is the much expanded role of private sector for tackling housing and infrastructure problems. The Government recognises the urgent need to provide fiscal concessions and carry out legal and regulatory reforms for creating a conducive environment for housing construction.
1.46 The total flow of funds sanctioned to the housing sector in 1999-2000 was Rs. 21623.51 crore for 32.15 lakh housing units in the country under various housing finance schemes. This represented an increase of 27.34 per cent over the previous year. In the current year (upto September, 2000) a total of Rs. 11791.27 crore has been sanctioned for 19.63 lakh housing units. In terms of disbursements, a total of Rs. 19475.88 crore was disbursed for 28.55 lakh housing units in 1999-2000, representing an increase of 23.81 per cent over the previous year. In the current year (upto September, 2000) a total of Rs. 8481.97 crore have been disbursed for 6.93 lakh housing units.
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