Social Sector Budget – Indian Interim Budget 2009, Social Sector

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The Indian Government has launched many new schemes to provide steady monetary assistance to the poor in India. The Interim Indian Budget 2009 continues to provide emphasis for these programs, and also to the empowerment of women which has been an abiding objective of the India Government.

Key Social Sector Schemes supported in the Indian Interim Budget 2009, supporting the Social Sector, are:

(i) Ministry of Minority Affairs. To further strengthen social and economic inclusion of minority communities, a new Ministry of Minority Affairs has been created. The Indian Government has announced the Prime Minister’s 15-point programme for the welfare of the minorities. Interim Budget allocations are being made to support this initiative.

(ii) The Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006. This came into effect from December 31, 2007, and has been widely welcomed by Scheduled Tribes and other traditional forest dwellers who now have legal rights on forest land which they have been cultivating or using over generations.

(iii) The National Safai Karamchari Finance and Development Corporation (NSKFDC). The NSKFDC has been mandated to provide loans at concessional rates for the economic development of those in unclean occupations. The authorized capital of this organization is being raised from Rs.200 crore to Rs.300 crore in the Interim Budget to enable it to effectively carry out its mandate. The scope of the pre-matric scholarship for children of those engaged in unclean occupations has been expanded and the rates of scholarships have been doubled in 2008-09. The annual ad hoc grant under the Interim Budget has also been substantially increased by almost 50 per cent as compared to the earlier rates.

(iv) Women Self Help Groups.The efforts of the Indian Government and Indian financial institutions have led to a rapid growth of credit linked Women Self Help Groups which are now over 29 lakh in number. The Rashtriya Mahila Kosh will be strengthened by enhancing its authorized capital, a key commitment of the Interim Budget.

(v) Priyadarshini Project. In December 2008, ‘Priyadarshini Project’, which is a rural women’s empowerment and livelihood programme, was launched in U.P. with the assistance of IFAD. The project will be implemented as a pilot in the district of Madhubani and Sitamarhi in Bihar and Shravasti, Bahraich, Rai Bareli and Sultanpur in U.P.

(vi) Indira Gandhi National Old Age Pension Scheme (IGNOAPS). A revised and modified scheme named ‘Indira Gandhi National Old Age Pension Scheme’ was launched on November 19, 2007. This scheme covers all persons aged 65 years and above belonging to BPL households. So far 146 lakh persons have benefited from this scheme during the current financial year.

(vii) Widow Pensions and Disability Pensions in the Interim Budget. Two new schemes, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme, are being launched in the Indian Interim Budget. The Indira Gandhi National Widow Pension Scheme will provide pension of Rs.200 to widows between the age groups of 40-64 years. The Indira Gandhi National Disability Pension Scheme aims to provide pension to severely disabled persons.

(viii)Young Widows. In order to empower young widows in the age group 18-40 and equip them to stand on their own feet, the Interim Budget proposes to fund their admissions to ITIs, Women ITIs and National/Regional ITIs for Women. The Indian Government will bear the cost of their training and provide stipends of Rs.500 per month.

(ix) Rashtriya Swasthya Bima Yojana. The Government launched Rashtriya Swasthya Bima Yojana for BPL families in the unorganized sector on October 1, 2007. Up to January 15, 2009, 22 States and Union Territories have initiated the process to implement the scheme. The Government of India also launched the Aam Aadmi Bima Yojana (AABY) on October 2, 2007. The AABY is a Scheme for death and disability cover of rural landless in the country in conjunction with the State Governments. Upto December 31, 2008, the Scheme has covered 60.32 lakh lives.

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