Social sector ministries go slow in spending funds; education, health infrastructure hit

In the first five months after the approval of the Union budget for 2022-23 and with an economic slowdown looming, the social sector ministries – Education, Health and Women and Child Welfare – have spent far less money between April and August as compared to the corresponding period last year.

However, the infrastructure ministries (Railways, and Road transport and Highways) have been spending funds at a fast pace, allegedly to give a push to public expenditure.

Until August, the Health and Family Welfare Ministry under Mansukh Mandaviya spent only 29 per cent (Rs 24,906.43 cr) of the budgeted estimate of Rs 86,201 crore. During the same period in the last financial year, 43 per cent (Rs 31,464.98 cr) of the funds had been utilised.

This was revealed in the latest data available with the Controller General of Accounts (CGA).

Budget spend of the social sector in five months

MohFW comprises the Department of Health and Family Welfare and the Department of Health Research. The former has so far utilised only 9 per cent (Rs 511.95 crore) of its capital budget (Rs 5,632.57 crore), while 30 per cent of the allocated funds (Rs 77,367.43 crore) were utilised for revenue expenditure. This implies that very little money has been spent on building hospitals around the country in the aftermath of the Covid-19 pandemic.

Capital expenditure or capex is the money spent to build, upgrade, buy or maintain fixed assets such as buildings, land or equipment, while revenue expenditure refers to expenses required to run a department such as payment of salaries, pension and subsidies.

In the case of the Women and Child Development Ministry helmed by Smriti Irani, the capex spend has been abysmal. Until August, the ministry made use of only 6 per cent of the allocated funds (Rs 25,172.28 crore), while during April to August in 2021, 42 per cent of the funds (Rs 10,176.72 crore) had been spent. And none of it is on Capital Expenditure.

In this ministry, capital expenditure would mean building anganwadis and only Rs 2 crore has been allocated for the year. The WCD ministry also runs many schemes such as Beti Bachao Beti Padhao, working women hostels, women helpline, child protection scheme and anganwadi services. 

The Department of Food and Public Distribution under the Ministry of Consumer Affairs and Public Distribution led by Piyush Goyal had utilised only 39 per cent of the allocated funds (Rs 2.15 lakh crore), but interestingly, 493 per cent (Rs 10,016.17 crore) of the allocation (Rs 2,029.67 crore) has been utilised under capital expenditure.

The Ministry of Education led by Dharmendra Pradhan utilised only 19 per cent (Rs 20,118.07 crore) of the allocated budget (Rs 1,04,277.72 crore) until August, while during the same period in 2021, 29 per cent of the funds had been spent.

The Department of School Education and Literacy under the ministry has spent only 9 per cent of the funds allocated (Rs 63,449.37 crore) and all of it is on revenue expenditure, while during the same period last year, 27 per cent of the funds (Rs 63,449.37 crore) had been spent. This is one-third of last year’s spend. The department has had no capital expenditure, just as the Department of Higher Education. 

Capital expenditure in case of school education could mean construction of new schools, addition of new rooms to existing schools or maybe acquiring new furniture in schools. Revenue expenditure would mean buying of stationery, salaries of the staff and funding the mid-day meals.

Budget spend of Railways and Road ministries

Meanwhile, the Ministry of Railways under Ashwini Vaishnaw has made use of 61 per cent of the allocated budget (Rs 1,40,367.13 crore) in the first five months. This is much higher than last year when only 29 per cent of the allocated budget (Rs 1,10,054.64 crore) was utilised by August.

The Union Ministry of Road Transport and Highways under Nitin Gadkari utilised 58 per cent or Rs 1.15 lakh crore of its allocated budget (Rs 1.99 lakh crore) by August. The ministry had spent 66 per cent of its annual budget (Rs 1.18 lakh crore) during the corresponding period last year.

Even the Ministry of Defence has utilised 40 per cent of its allocated budget (Rs 5.25 lakh crore), while during April to August 2021, the ministry had used 38 per cent of the funds allocated to it (Rs 47.81 lakh crore). 

The Ministry of Agriculture and Family Welfare has utilised only 24 per cent (Rs 31,489.80 crore) of its funds (Rs 1,32,513.62 crore), while during the same period last year, the ministry had spent 43 per cent of its funds (1,31,531.19 crore). Of this, the Department of Agriculture, Cooperation and Farmers Welfare under the ministry spent 22 per cent of the funds (Rs 1,24,000 crore) only on revenue expenditure and only Rs 14 lakh on capital expenditure.

The Ministry of Telecommunications, Ministry of Housing and Urban Affairs (18 per cent), Ministry of Civil Aviation (4 per cent), Ministry of Tourism and Amit Shah led Co-operation Ministry have utilised much lesser than the previous year, according to the CGA data.

Of the Rs 900 crore allocated for the Cooperation Ministry, only 6 per cent of the funds (Rs 51.3 crore) had been utilised, none of it on capital expenditure. 

At a time when BSNL is struggling and 5G network services have been launched in the country, only 13 per cent (Rs 84,586.80 crore) of the allocated funds have been utilised, while during the corresponding period last year 20 per cent of the funds had been utilised. Dismally, only 2 per cent of the funds (Rs 54,150.42) were utilised for capital expenditure between April and August.