Economic Survey: Welfare Approach Gains Momentum, Social Services Spending Soars

A robust implementation of government programmes has led to a transformative shift towards empowerment across various sectors, with notable achievements in health, education, sanitation, digital empowerment and rural development, according to the Economic Survey 2023–24.

The Union government's spending on social services has shown a rising trend since financial year 2016, with a focus on many aspects of the social well-being of people of the country, said the survey that was released on Monday on the eve of the Union Budget.

Between fiscal 2018 and fiscal 2024, the nominal gross domestic product has grown at a compounded annual growth rate of 9.5%. Overall, the welfare expenditure has grown at a CAGR of 12.8%. Expenditure on education has grown at a CAGR of 9.4%, a tad below the rate of the nominal GDP growth. Expenditure on health has grown at a CAGR of 15.8%, according to the survey.

Central to India's welfare trajectory are its strides in education and healthcare. The survey reveals a focused effort resulting in improved access and quality in both sectors.

Expenditure on education has grown steadily from 7.69 lakh crore in 2022–23 to 8.29 lakh crore in 2023–24. Healthcare spending has seen substantial increases, bolstering medical facilities and public-health initiatives nationwide. The healthcare spending in 2022–23 stood at 5.13 lakh crore and it was increased to 5.86 lakh crore in 2023–24.

The survey points out that India is transitioning from women's development to women-led development with the vision of a new India where women are equal partners in the story of growth and national progress. It said the government made various legislative interventions and provisions to ensure women's participation in various professions"

Over the years, the element of women-centricity in government initiatives has been rising and is visible in the expanding gender budget, the survey highlighted. "In FY14, the government provisioned Rs 97,134 crore (budget estimate) on the schemes for the welfare and empowerment of women, which has consistently increased over the years and reached Rs 3.1 lakh crore in FY25."

"This shows a 38.7% rise in the Gender Budget Statement (GBS)78 vis-à-vis FY24 BE and a 218.8% increase over FY14 BE. The share of the Gender Budget in the total Union Budget has increased to 6.5% in FY25, the highest since the introduction of GBS in FY06.79," it said.

Initiatives like the Jal Jeevan Mission and electrification drives in remote areas have aimed to improve living standards but also liberated communities from historical infrastructural deficits, ensuring equitable access to basic amenities, the survey noted.

The survey underscored the tangible impact of welfare programmes on improving the standard of living across India. Initiatives like the PM Ujjwala Yojana, Swachh Bharat Mission, PM-AWAS Yojana and Ayushman Bharat have collectively touched the lives of millions, providing clean cooking fuel, sanitation facilities, affordable housing and healthcare access to those previously underserved.

• Approximately 11.6 crore toilets and 2.39 lakh community toilet complexes were constructed under Swachh Bharat Mission-Grameen as of July 10, 2024.

• Approximately 11.7 crore households provided tap-water connection under the Jal Jeevan Mission.

• Under the PM-AWAS-Gramin, 2.63 crore houses were constructed for the poor in the last nine years.

• Approximately 10.3 crore LPG connections provided under the PM Ujjwala Yojana since 2016 as of June 2.

With the aspiration to achieve the status of a developed nation by 2047, India's social sector policies are pivotal. The survey emphasises the role of effective governance, state-level initiatives and community participation in driving sustainable and equitable growth.