CONTEMPORARY CONCERNS STUDY

Impact of Government Schemes on Indian Economy

CCS Guide: Prof. Rupa Chanda

Prepared By

Sandeep N (1511051)
Vivek T (1511068)

1
Contents
1 Introduction ............................................................................................................................. 4
2 NREGA Expenditure .............................................................................................................. 5
2.1 Funds Allocation .............................................................................................................. 5
2.2 Effect on Fiscal Deficit .................................................................................................... 6
2.3 Impact on Agricultural Wages ......................................................................................... 7
2.4 Impact on Household Expenditure ................................................................................... 9
2.5 Impact on Agricultural Productivity ................................................................................ 9
2.6 Impact on Migration ....................................................................................................... 10
2.7 Impact on poverty........................................................................................................... 11
2.8 Impact on Education....................................................................................................... 12
2.9 Financial Inclusion ......................................................................................................... 13
3 Case Study ............................................................................................................................ 13
3.1 Maharashtra .................................................................................................................... 13
3.1.1 Overview ................................................................................................................. 13
3.1.2 Expenditure ............................................................................................................. 13
3.1.3 Employment Status ................................................................................................. 14
3.2 Odisha............................................................................................................................. 15
3.2.1 District Overview .................................................................................................... 15
3.2.2 Expenditure ............................................................................................................. 15
4 Issues of MGNREGA ........................................................................................................... 16
4.1 Lack of Awareness ......................................................................................................... 16
4.2 Poor quality .................................................................................................................... 16
4.3 Improper planning .......................................................................................................... 16
4.4 Work Rationing .............................................................................................................. 17
4.5 Payment Issues ............................................................................................................... 17
5 Recommendation .................................................................................................................. 17
6 Introduction ........................................................................................................................... 19
7 Funds Allocation ................................................................................................................... 19

2
8 NRHM-RCH ......................................................................................................................... 20
8.1 Infant Mortality Rate (IMR) ........................................................................................... 20
8.2 Under 5 Mortality Rate (U5MR) .................................................................................... 21
8.3 Maternal Mortality Rate (MMR).................................................................................... 21
8.4 Immunization ................................................................................................................. 21
8.5 Total Fertility Rate (TFR) .............................................................................................. 22
9 NUHM .................................................................................................................................. 22
10 Disease Control ..................................................................................................................... 23
11 Infrastructure Maintenance ................................................................................................... 25
11.1 Health Manpower ....................................................................................................... 26
12 Conclusion ............................................................................................................................ 27
13 Introduction ........................................................................................................................... 28
13.1 Institutional Structure ................................................................................................. 28
13.2 City Development Plan (CDP) ................................................................................... 29
14 Impact Analysis .................................................................................................................... 30
14.1 Effect on Water supply ............................................................................................... 30
14.2 Effect on Storm Water Drainage ................................................................................ 32
14.3 Effect on Sewerage ..................................................................................................... 33
14.4 Effect on Housing ....................................................................................................... 35
14.5 Effect on transportation .............................................................................................. 37
14.6 Effect on solid waste management ............................................................................. 38
15 Issues in JNNURM ............................................................................................................... 38
16 Conclusion ............................................................................................................................ 40
16.1 Bottom-up planning .................................................................................................... 40
16.2 Integrated Planning ..................................................................................................... 40
17 References ............................................................................................................................. 41
18 Appendix ............................................................................................................................... 42

3
 MGNREGA
1 Introduction
The objective of MGNREGA, according to Ministry of Rural Development, is to enhance the
livelihood of rural people by guaranteeing 100 days of work in a financial year [1].

As of 2016, the scheme has been implemented in 661 districts (6,858 blocks) across India. So far,
about 27.84 Cr people have been employed through NREGA, of which only about 10.72 Cr people
(~39%) are still actively employed [1]. The budget allocated to NREGA scheme was decreasing
till FY15 because of lack of funds, change in government and the corresponding effect can be seen
in the number of person-days generated in a year. With the financial boost to NREGA from FY16,
the number of person-days generated in a year has started increasing from FY16. Although the
scheme has promised to generate 100 days of work per person, in the last 4 years the average days
of employment were around 45-50 days. It has been observed that the ST households have a higher
average employment in comparison to the overall average employment. The total work taken up
through NREGA is about 100-120
Lakh in a year of which about 20% gets Cumulative Person-days
State
generated ( FY 16)
completed fully in a year. In the line
Tamil Nadu 36.87 Cr
with the labor budget, the wages have 28.66 Cr
West Bengal
also varied similarly in the last 4 years. Rajasthan 23.41 Cr
The wages of the unskilled labor Andhra Pradesh 19.83 Cr
constitute about 75% of the total wages Uttar Pradesh 18.31 Cr
paid. The top 6 states with high person Telangana 14.09 Cr
days created in listed in the table below. Source: http://nrega.nic.in

COMMUNITY WISE CUMULATIVE GENDER WISE CUMULATIVE

PERSONDAYS GENERATED PERSONDAYS GENERATED

SCs STs Others Women Men

22%

45%
55%
60% 18%

Source: http://nrega.nic.in

4
Based on the cumulative person-days generated in a year, SCs and STs have accounted for 40%
of the total person-days generated. Similarly, women have been given higher priority in the
allocation of work through NREGA. The following table indicates the performance of the state as
a percentage of completed projects in FY 2015-16.

Top 7 States (% of Work Completion) Bottom 7 States (% of Work Completion)

MIZORAM 98% ASSAM 1%
TRIPURA 78% RAJASTHAN 4%
KERALA 75% ANDHRA PRADESH 4%
MANIPUR 70% MEGHALAYA 6%
PUDUCHERRY 66% ARUNACHAL PRADESH 7%
TAMIL NADU 62% SIKKIM 10%
GOA 57% BIHAR 12%
Source: http://nrega.nic.in

2 NREGA Expenditure
2.1 Funds Allocation
After the NREGA Act was passed by the parliament in 2005, the allocation of the funds for the
project started in 2006. The entire salary of the unskilled workers, 75% wages of the skilled and
semi-skilled workers and 75% of the material expenses are spent by the Central Government. Rest
all the expenses are taken care by the respective state governments. Starting with a funding of Rs.
11,300 Cr in 2006, the scheme received Rs. 36,967 Cr in 2015 with the maximum fund allocation
of Rs. 40,100 Cr in 2010.
After FY 2010-11, the FUNDS ALLOCATION
quantum of the funds
Fund Allocation Inflation adjusted Fund Allocation
allocated to the scheme
50000
dwindled and fund allocation
started increasing from 2012 40000
in nominal terms. Whereas in 30000
real terms (in terms of 2006- 20000
07 prices), from FY 2009-10,
10000
the funds allocated in real
0
terms have gone down and 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
stayed almost in the range of
Source: Ministry of Finance
about Rs. 17,000 Cr.

The following table shows the expenditure across various work categories. It indicates that rural
connectivity and water conservation projects are the major projects taken up in NREGA.

5
 Exp (In Lakhs)
Work Category
FY 2012-13 FY 2015-16
Rural Connectivity 1223722 1146603
Water Conservation and Water Harvesting 755334 594051
Renovation of traditional water bodies 486082 527001
Works on Individuals Land (Category IV) 242880 496390
Land Development 289417 411355
Drought Proofing 253977 259959
Micro Irrigation Works 213351 251616
Flood Control and Protection 177626 170810
Bharat Nirman Rajeev Gandhi Sewa Kendra 75542 128792
Other Works 70048 81853
Rural Sanitation 11524 74523
Anganwadi 0 17418
Fisheries 1974 10192
Rural Drinking Water 579 5659
Play Ground 0 4162
Food Grain 0 3911
Coastal Areas 8 166
Source: http://nrega.nic.in

The state-wise allocation of funds and expenditure for the last 3 years is shown in the Appendix.

Year 2013-14 2014-15 2015-16

# states with negative balances in NREGA Account 8 10 22
The above table indicates that the number of states with the negative balance in NREGA is
increasing year-on-year for the last 3 years, despite the increase in fund allocation in the last 3
years [2].

2.2 Effect on Fiscal Deficit

Fiscal Deficit Vs NREGA
The above graph shows the
50000 8.00%
allocation of funds to NREGA
along with the fiscal deficit for the 40000
6.00%
last 10 years. From the graph, it is 30000
4.00%
obvious that the funds allocated to 20000
NREGA had an impact on the 2.00%
10000
fiscal deficit of the country. 0 0.00%
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Also, the correlation between
NREGA Fiscal Deficit (%)
NREGA fund allocation and
fiscal deficit is 0.685. This further Source: http://nrega.nic.in, Ministry of Finance

6
illustrates the fact that there is some weak relationship between the NREGA fund allocation and
fiscal deficit.

2.3 Impact on Agricultural Wages

NREGA has had a huge impact on the agricultural daily wages in rural areas. From the graph given

Impact on Agricultural Wages

400
Agr Daily Wage (in Rs.)

350
300
250
200
150
100
50
0
Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13
Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13
May-04

May-05

May-06

May-07

May-08

May-09

May-10

May-11

May-12

May-13
Maharashtra Tamil Nadu Bihar MP

Source: Department of Agriculture and Co-operation

above, it can be observed that the agricultural wages have increased a lot after the introduction of
NREGA in 2005. The pattern is observed to be same for industrial states like Maharashtra,
Tamilnadu etc. and for backward states like Bihar. The amount of increase in wages was higher in
the industrial states because of the presence of other infrastructure and institutions for effective
implementation. To understand the impact of the scheme on the rural wages, 2-year CAGR (FY05
& FY06) of rural wages in a state is calculated and the same is to project the expected agricultural
wages up to FY14. In industrial states like Maharashtra, the expected agricultural wage in
December-13 is Rs.67.34 but the actual wage stood at Rs.215.90. (220% Increase). In addition to
agricultural wages, non-agricultural wages (like daily wage of a carpenter) also increased in line
with the agricultural workers. (From Rs.105 to Rs.235 for a carpenter).

Impact on Rural Wages in Maharashtra

250
Agr Daily Wage (in Rs.)

200
150
100
50
0
Jan-12
Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-13
May-04
Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13
May-05

May-06

May-07

May-08

May-09

May-10

May-11

May-12

May-13

Agr. Wages Expected Agr. Wages Non-Agr (Carpenter Wages)

7
Similarly, for a backward state like Madhya Pradesh, the expected wage in December-13 was
Rs.55 but the actual wage was Rs.150.89 (174% Increase). Similarly, the daily wages of a
carpenter (Non-Agricultural) rose from Rs.87 in 2006 to Rs.161in 2013.

Impact on Rural Wages in Madhya Pradesh

Agr Daily Wage (in Rs.)

150

100

50

0
Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13
Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13
May-08

May-10
May-04

May-05

May-06

May-07

May-09

May-11

May-12

May-13
Agr. Wages Expected Agr. Wages Non-Agr (Carpenter Wages)

Source: Department of Agriculture and Co-operation, Ministry of Labour

The rise of agricultural wages in 2004-13 also corresponds to the period of high growth with high
inflation in India. To remove the doubt of involvement of inflation in the agricultural wage growth,
the real wages are constructed using month-wise rural CPI Index. Before the introduction of
NREGA (in the 2004-06 period), the agricultural wage growth was -2.13% and non-agricultural
wage growth was -0.54% in real terms. In the 2006-13 period, the real agricultural wage growth
was 6.65% and the real non-agricultural wage growth was 2.55%.

Impact on Real Agricultural Wages (Maharashtra)

250
Daily Wages (Rs)

200
150
100
50
0
Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13
Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

May-11
Sep-11

Sep-12

Sep-13
May-04

May-05

May-06

May-07

May-08

May-09

May-10

May-12

May-13

Agr. Wages Real Agr.Wages Non-Agr (Carpenter Wages) Real Non-Agr.Wages

Source: Department of Agriculture and Co-operation, Ministry of Labour

From the above graphs, it can be concluded that –
 Increase in real agricultural wages in rural areas had a corresponding effect on non-
agricultural wages in the rural areas
 Presence of infrastructure and institutions in more industrialized states led to higher
increase in agricultural wages in comparison to the backward states
8
2.4 Impact on Household Expenditure

NREGA has resulted in the increase of household expenditure with higher wages. Until the
introduction of NREGA, the growth in monthly per capita expenditure (MPCE) in rural areas is
linear and after the
I M P AC T O N AV E R AG E R U R AL M O N TH L Y
introduction, the growth P E R C AP I T A E X P E N D I TU R E ( M P C E )
in MPCE became
Andhra Pradesh Bihar Maharashtra
exponential. Punjab Tamil Nadu Uttar Pradesh

For the state of Uttar 2500

Pradesh, MPCE rose from 2000

Rs.422 in FY’02 to Rs. 1500

569 in FY’06 at 7.75% 1000

CAGR. But after the 500
introduction of NREGA, 0
FY 02 FY 04 FY 06 FY 08 FY 10 FY 12
MPCE rose from Rs. 569
in FY’06 to Rs.1156 in Source: Compiled from NSSO Surveys
FY’12 at 12.52%
CAGR. H O U S E H O L D S P E N D I N G P AT TE R N ( R U R AL )
Cereals Misc. G. and Services Milk and Products
With increasing rural Fuel and Light Clothing and Bedding
wages, the household 30
spending was shifting 25
from food items to non- 20
food items. Cereal 15
consumption has reduced 10
5
from 24.2% in FY’94 to
0
18% in FY’05 at a rate of FY 94 FY 00 FY 05 FY 10 FY 12

2.65% per year. From

Source: Compiled from NSSO Surveys
FY’05, cereal
consumption has dropped to 12% in FY’12 at a rate of 5.63%. Household spending pattern in rural
areas has changed significantly after the introduction of NREGA.

2.5 Impact on Agricultural Productivity

The majority of NREGA funds was spent on building infrastructure for water conservation and
drought proofing. More and more areas received proper irrigation through dug-wells. Froom FY
05 to FY 13, the area covered under irrigation rose from 44% to 50%. This did have had an impact
on the agricultural productivity in the country. To see the effect of NREGA on agricultural
productivity of food grains, the 10-year CAGR (from FY 96 to FY 06) was calculated and was

9
used to project the yield about FY 13. On comparison, it was found that the actual yield per hectare
for the food crops was found to be 12.55% higher than the expected yield.

Impact on Agricultural Productivity (Food Crops)

2200

2000
Yield (Kg/Hectare)

1800

1600

1400

1200

1000

Yield (Kg./Hectare) of food crops Projected Yield

Source: Department of Agriculture and Co-operations (Through Indiastat.com)

2.6 Impact on Migration

The performance of NREGA in a particular location can be better understood from the migration
in that locality. When local wages > NREGA wages, there will be the migration in the locality and
when NREGA wages >local wages, the migration is arrested. Apart from the wages, the various
implementation issues at Gram Panchayat level do have an impact on the migration. Although out-
migration is a better indicator of the performance of NREGA, it is difficult to analyze the different

Impact on Rural Migration

600 4000

NREGA Exp/Person (in Rs)

Out-Migrants (per 1000)

3500
500
3000
400
2500
300 2000
1500
200
1000
100
500
0 0

Out-Migrants (2008) Out-Migrants (2000) NREGA Exp/Rural person

Source: Compiled from NSSO Surveys

10
factors that go into migration. To show the effect of the scheme at the state level, the NREGA
expenditure in the state was normalized using rural population in the state. NREGA expenditure
per rural person in the state will be compared with out-migrants per 1000 (rural areas) in the state.
It can be seen that the states with higher NREGA expenditure per rural person like Jammu &
Kashmir, Kerala, Punjab, Uttarakhand have lower out-migrants per 1000 in the rural areas
compared to their 2000 levels. For the purpose of analysis, north-eastern states are removed from
the analysis since they have very high expenditure per rural person compared to other states.

2.7 Impact on poverty

A report on NREGA impact assessment by Prem Vashishtha, P.K. Ghosh and Jaya Koti tries to
analyze the impact on poverty by comparing the per capita income levels before and after the
launch of the programme. This analysis was done based on the IHDS-II survey.

Source: Mahatma Gandhi National Rural Employment Guarantee Act, A Catalyst for Rural Transformation, Sonalde
Desai, Prem Vashishtha and Omkar Joshi

11
NREGA is said to have had 2 different types of effects –

 Direct impact: By directly improving the income levels of the NREGA participants
 Indirect impact: By increasing the wages level of the locality thus benefitting both the
participants and non-participants of NREGA

The study also reveals that the less developed areas have small multiplier effect from NREGA
because of lack of better infrastructure to have a greater indirect impact. The following figure
indicates the contribution of NREGA in poverty reduction.

2.8 Impact on Education

NREGA is also known to have improved the education levels of the NREGA households. A report
on NREGA impact assessment by Prem Vashishtha, P.K. Ghosh and Jaya Koti also validates this
hypothesis on education. A IHDS study on a village level substantiates the fact that children in
NREGA households completed higher standards, can do better mathematics, worked less as child
laborers and spent more time in school and education related activities.

Source: Mahatma Gandhi National Rural Employment Guarantee Act, A Catalyst for Rural Transformation, Sonalde
Desai, Prem Vashishtha and Omkar Joshi

12
2.9 Financial Inclusion
Before the introduction of Jan Dhan Yojana, NREGA has helped in achieving financial inclusion
of the lower strata of the society. In certain states, NREGA workers are paid through their accounts
in banks and post offices. The scheme is known to have removed corruption at several levels
through direct transfer of wages. As of 2015, 90% of NREGA payments are done through bank
accounts.

A case study was done in Odisha in the year 2013 by Minati Sahoo from Central University of
Odisha to assess the financial inclusion through NREGA. Direct wage transfer has resulted in the
creation of bank accounts in an enormous rate (30-40% CAGR). The following table proves the
financial inclusion through NREGA in Odisha.

FY 9 FY 10 FY 11 FY 12 FY 13
No. of bank & post office account opened 18,30,009 25,97,403 57,26,707 37,05,424 40,27,196
Total Amount Disbursed (Rs.in lakhs) 22,929 56,603 83,590 54,898 38,546
Source: http://iosrjournals.org/iosr-jhss/papers/Vol14-issue2/I01425461.pdf?id=6719

The drawbacks of direct wage transfer scheme of NREGA are

1. Slow disbursal of wages disbursement through NREGA. This is a serious problem in
Jharkhand, West Bengal, UP, Chhattisgarh and Rajasthan.
2. There are cases of corruption reported through this mechanism. Some of the implementing
agencies are alleged to have colluded with the banks and are withdrawing money from
beneficiaries account illegally.

3 Case Study
Four districts – Two in Maharashtra and two in Odisha have been considered to study the impact
of the NREGA on the gross domestic product, employment level etc.

3.1 Maharashtra
3.1.1 Overview
Beed district is located in central part of 2011 Census Beed Kolhapur
Maharashtra. The main occupation in the
Area (Thousand Square K.M.) 10 8
district is Agriculture. Kolhapur district is
Towns (As of 31st March 2011) 6 6
located in the southern part of Maharashtra.
Talukas (As of 31st March 2011) 11 12
Textile manufacturing is the main
Villages (As of 31st March 2011) 1354 1239
occupation in the district.
Total Population (Thousand) 2161 549
3.1.2 Expenditure
NREGA expenditure trend in Beed and Kolhapur district was in line with the national picture,
where there was a decrease in expenditure in FY 14 and then afterward increases.

13
 Beed (Number of works completed)
Work Category FY 13 FY 14 FY 15 FY 16
Water Conservation 1554 732 620 2298
Rural sanitation 0 185 635 584
Any other works 138 353 186 548
Improving productivity of lands 366 159 202 401
Improving livelihoods through 163 345 70 217
Road connectivity/Internal roads/Streets 79 74 88 177
Other Works 115 110 50 132
Kolhapur District (Number of Completed Works)
Work Category FY 13 FY 14 FY 15 FY 16
Improving livelihoods through 341 146 115
Water Conservation 100 86 106
Afforestation 139 51 35
Road connectivity/Internal roads/Streets 236 70 18
Land development 2 1 6
Any other works 1218 627 0 18

As seen from the above table, water conservation projects were taken up in large numbers in Beed
District and individual livelihood projects were taken up in Kolhapur.

3.1.3 Employment Status

The following graph shows

the number of person-days of Employment Status
work generated against the 1000000 16000
# persondays generated

Expenditure (in Rs. Lakh)

expenditure incurred for 14000
800000
12000
creating this situation. The 10000
600000
number of person-days 8000
400000 6000
generated kept on increasing
4000
200000
although there was a slight 2000
decrease in expenditure. This 0 0
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
indicates the NREGA has
Persondays Generated (Beed) Persondays Generated (Kolhapur)
been implemented well and
Total Expenditure (Beed) Total Expenditure (Kolhapur)
the effect of the investment
can be clearly seen in Beed. Source: http://nrega.nic.in

14
3.2 Odisha
3.2.1 District Overview
Puri is a district in Odisha state situated on the eastern coast, well-known for the heritage sites.
Tourism and fishery are the main source of revenue for the district. The important statistics of the
district is shown in the table below.
Area & Population Puri Angul
Angul is an industrial district, situated Area (Thousand Square K.M.) 3.48 6232
150 km from the capital city of Towns (As of 31st March 2011) 6 18
Bhuvaneswar. Jindal Steel Plant and Villages (As of 31st March 2011) 1707 1871
Bhushan Steel plant are the two No. of Gram panchayats 230 209
renowned private organizations. Total Population (Thousand) 1699 1272
Density of Population(Person/sq.km) 488 199
3.2.2 Expenditure
NREGA expenditure trend in Beed district for the last 6 years is shown in the following graph.
The expenditure trend does not show any kind of pattern and the effect can also be seen in the
number of person-days generated. Huge expenditure has occurred in FY 11 and FY 16 and the
corresponding effect can be seen
in those years. Employment Status (Puri v/s Angul)
FY 13 FY 14 FY 15 FY 16 FY17
Persondays Generated

Comparing with the performance 16.0 4000

Total Expenditure (in lakhs)

14.0 3500
of Beed, the effectiveness of
12.0 3000
(lakhs)

NREGA in Puri is very low. Huge 10.0 2500

variability in the expenditure 8.0 2000
6.0 1500
pattern might be a reason for the
4.0 1000
low performance. 2.0 500
0.0 0
One interesting fact about Puri is
Puri (Persondays) Angul (Persondays)
that only 3% of the eligible
Puri (Exp) Angul (Exp)
people actually turn up for the
jobs. Source: http://nrega.nic.in

Work Category Split up - Angul District

Work Sub Category 2012-13 2013-14 2014-15 2015-16 2016-17
Construction of house 0 0 0 1764 2008
Land development 19 113 160 168 349
Road connectivity/Internal roads/Streets 374 343 172 140 192
Improving livelihoods through 11 13 29 276 175
Improving productivity of lands 758 453 205 62 96
Other works 545 425 417 500 380

15
 Work Category Split up - Puri District
Work Sub Category 2012-13 2013-14 2014-15 2015-16 2016-17
Construction of house 0 0 0 1299 1613
Improving productivity of lands 495 507 389 592 204
Road connectivity/Internal roads/Streets 143 244 299 333 55
Construction of building 29 13 28 93 55
Traditional water bodies 142 356 343 321 37
Others 44 186 445 1242 141

4 Issues of MGNREGA
MGNREGA is arguably one of the biggest social welfare scheme, launched by the Indian
government. But like any other scheme, MGNREGA also faces some bottlenecks when it comes
to the phase of implementation. The most interesting aspect is that certain implementation issues
are specific to some states.

4.1 Lack of Awareness

The biggest bottleneck of MGNREGA is the lack of awareness among backward states. For
instance, in Odisha, people fail to relate to MGNREGA, but false records show the opposite story.
Places where awareness is minimal, MGNREGA implementation has taken a hit. On the other
side, in the southern state of Andhra Pradesh, the Self Help Groups (SHGs) have carried out an
extensive promotion for MGNREGA. As a result, the impact of AP compared to low awareness
state like Odisha is far better.

4.2 Poor quality

The purpose of MGNREGA has been to provide employment, in turn developing rural
infrastructure. This asset creation model is not successful for all assets. Most of the work is labor
intensive and unskilled labor is employed which sometimes results in poor quality. Projects like
well construction, road connectivity, etc require a lot of rework. ROI is very less for this kind of
projects. Shortage of technical staff to oversee the implementation process is also the reason of
poor quality of the assets created.

4.3 Improper planning

The progress of MGNREGA varies across states. One of the main reason is improper planning
of the projects. It results in abandonment of projects in mid-way. Some of the key reasons for
abandonment are

 Land dispute
 Administrative issues like forest clearance
 Public Obstruction

16
As per CAG report (2013), 9220 project works worth INR 209 crores were abandoned or not
completed as expected. Improper planning leads to issues in project allotment. Lack of structured
approach by the officials leads to allotment of new projects in the annual plan, even before
completion of the existing plans.

4.4 Work Rationing

MGNREGA got a good welcome in many southern states like Kerala, Andhra Pradesh, etc. But
there is no sufficient work available to provide the promised 100 days of employment. Reasons
for work rationing are the unavailability of land, the rapid growth of industrialization, etc. As per
statistics, the percentage of households experiencing work rationing in lowest and highest income
quintile is 92% and 88% respectively.

4.5 Payment Issues

Payment delays are prominent across all the sites of MGNREGA. It sets a bad tone and due to the
word of mouth, people in other regions don’t feel encouraged to enroll for the scheme. The table
highlights certain peculiar implementation issues, specific to some states, apart from the general
issues discussed earlier.

States Issues
Gujarat Political feud between BJP and UPA; Fraudulent bureaucracy; Lack of
political push
Andhra Pradesh Lack of unity among panchayat
Odisha Renting of Job card; Seasonality of work
Madhya Pradesh Seasonality of work: work available in summer, but people demand work in
Rabi season
Punjab Lack of enthusiasm from state officials, information asymmetry

5 Recommendation
The introduction and implementation of NREGA posed financial difficulties for the Government.
It, in some of the years, has had an impact on the fiscal deficit status of the country. Given the
huge expenditure, NREGA also did not fail in delivering its key objectives. Although the provision
of 100-days of work is never fully achieved, given the implementation constraints, it increased the
real agricultural wages, increased agricultural productivity, increased housing expenditures on
food and services, reduced poverty and migration. NREGA households were able to impart better
education to their children. Most important of all, NREGA has helped in creating rural
infrastructure like wells, tanks, roads etc that are supposed to have the multiplier effect in the
economy. Hence, NREGA could be seen as a scheme that gave both the long-term and short-term
benefits to the rural people. But the scheme is not without disadvantages. Rising agricultural wages

17
did fuel inflation partly and rural laborers have become more dependent on the scheme and have
stopped going for permanent and better prospects in some areas. But the scheme is not
implemented to its potential in all the places. For better implementation of the scheme, we propose
the following recommendations.

 Follow bottom-up model – Empower Gram Panchayat (GP) to decide on the allocation of
works and state level authorities will just verify and approve it.
 Implement awareness programs with the help of SHGs (Self Help Groups) in backward
states like Odisha, Jharkhand, etc.
 Two level audit committee to review the progress of the projects – Audit committee
members will have the representative of ruling and opposition parties.
 Streamline payment process by removing middlemen (Gram Panchayat). People can get
payments directly in their bank accounts on submission of work receipts.

18
 National Health Mission (NHM)
6 Introduction
National Health Mission is an initiative, launched in 2005 by Government of India. The
objective of the scheme is to address the health needs of Indian citizens. Initially launched as a
social welfare scheme targeted to rural India, the scheme was expanded to urban India by then PM
Dr. Manmohan Singh in May 2013. Indian states are divided into four segments based on the
intensity of focus and implementation of NHM. The funding for the scheme is divided between
central and state government in the ratio 60:40 respectively.

High Focus NE
(Seven NE states + Sikkim)
NHM Classification

High Focus Non NE

(Bihar, MP, Odisha, J&K,etc)

Non High Focus - Large

(TN, Kerela, Goa, AP, Gujarat,etc)

Non High Focus - Small & UT

(Delhi, Chandigarh, Diu & Daman,
etc)

During the inception of the scheme, the objectives [3] are set as

 Reduce Maternal Mortality Rate to 1/1000 live births

 Reduce Infant Mortality Rate to 25/1000 live births
 Reduce Total Fertility Rate to 2.1
 Reduction of anaemia in women
 Reduce mortality from communicable, non- communicable; injuries and emerging diseases
 Reduce household out-of-pocket health expenditure
 Halve Tuberculosis incidence and mortality rate
 Reduce prevalence of Leprosy to <1/10000 population
 Annual Malaria Incidence to be <1/1000
 Less than 1 per cent microfilaria prevalence in all districts
 Kala-azar Elimination by 2015, <1 case per 10000 population in all blocks

7 Funds Allocation
The following graph shows the expenditure incurred under NHM since its inception in 2006.
Currently, the expenditure is incurred in the range of Rs. 15000 – Rs. 20000 Crore.

19
The funds allocated under
Expenditure (NHM)
5 different heads – i)
20000 8.00%
NRHM-RCH Flexible

Fiscal Deficit (% of GDP)

Expenditure (In Cr)
7.00%
pool ii) NUHM flexible 15000 6.00%
pool iii) Flexible pool for 5.00%
10000 4.00%
communicable diseases
3.00%
iv) Flexible pool for non- 5000 2.00%
communicable diseases v) 1.00%
0 0.00%
Infrastructure FY 6 FY 7 FY 8 FY 9 FY 10 FY 11 FY 12 FY 13 FY 14
maintenance.
Expenditure (IN Cr) Fiscal Deficit (%)

Source: http://indiabudget.nic.in

8 NRHM-RCH
The Reproductive and Child Health program was launched in April 2005 as a part of NRHM. The
impact of the program can be gauged by various parameters pertaining to health sector namely
Mortality rate, Fertility Rate, Immunization, Institutional deliveries, Recorded hospital cases, life
expectancy rate, etc.

8.1 Infant Mortality Rate (IMR)

It is the rate which reflects the number of infant death occurring per 1000 live births. The IMR of
India is around 50. From the graph, we can infer, the mortality rate is more in states like Odisha
and MP which are huge in area and economically backward. So, lack of institutional facilities and
hospital infrastructure developments could be a reason behind high IMR compared to national
average. One good thing is that with increased spending through NHM, IMR has been on the
decreasing trend.

100
No of death/1000 live births

Infant Mortality Rate

80

60

40

20

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Arunachal Pradesh Madhya Pradesh India
Odisha Kerala Maharashtra

Source: Compiled from Sample Registration system RGI's Office 2008

20
8.2 Under 5 Mortality Rate (U5MR)
It is the rate which reflects the
number of below 5-year old children
Under 5 Mortality Rate
100
deaths per 1000 live births. Though

No of Death/1000 live births

80
Assam had a less IMR, it has a high
60
U5MR, almost 1.5 times of national 40
average. It can be observed that 20
U5MR has significantly reduced in 0
2008 2009 2010 2011 2013
backward states like Assam
compared to other states like Kerala Assam Jharkhand Odisha

etc. India Kerala Maharashtra

Source: Compiled from Sample Registration system RGI's Office 2008

8.3 Maternal Mortality Rate (MMR)

It is the reflection of the number of deaths of pregnant women during delivery per 100000 live
births. Lack of efficient Maternal Mortality Rate (MMR)
800
infrastructure and inexperienced
No of females death/100000

professionals (doctors, 600

technicians) are a major reason
400
pointed out by many segments of
births

society. In the state like Assam, 200

MMR fluctuates. The inefficacy
during delivery might be a reason 0
1997 1999 2001 2004 2007 2010 2013 2015
behind high U5MR in Assam.
Assam Maharashtra
Odisha Rajasthan
Uttar Pradesh/Uttarakhand India
Source: Reports from http://www.mohfw.nic.in

8.4 Immunization
Measles Immunization Percentage
Immunization is one program of
100.0
NRHM, which has been
% Children Immunized

implemented with sheer

50.0
determination. Almost all states,
irrespective of economic 0.0
background, have shown 1998 2002 2005 2008 2010 2013
insignificant improvement in Gujarat Bihar Kerala
this program implementation. Madhya Pradesh Odisha India

21
Even a state like Odisha, which has high mortality rate has achieved almost 100% vaccination for
children.

8.5 Total Fertility Rate (TFR)

The number of children who would be born per woman (or per 1,000 women) if she/they was to
pass through the childbearing
Total Fertility Rate (TFR)
years bearing children
5.0

No of child birth/women
according to a current schedule
4.0
of age-specific fertility rates. It
3.0
is almost same across the 2.0
country, except Bihar and 1.0
Odisha. Reducing the TFR to -
2.1 will help in reduce the 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

population explosion in the Bihar Odisha Punjab

country. Tamil Nadu Uttar Pradesh India

Source: http://indiastat.com

9 NUHM
The urban population in India has increased by 32% from 28.6 crores to 37.7 crores between 2001
to 2011 [4]. This urban segment forms 31% of total Indian population. With such rapid increase
in Urban population, infrastructure and health sector pose a major concern to the administrators.
The proximity of health facilities in urban India is relatively better than that in rural parts. But the
access is poor. The increase in the population has created a disparity in health accessibility between
urban poor and urban rich. Keeping this in mind, to cater the health needs of urban poor, the
Government of India launched the urban health program, NUHM in the year 2013. The total funds
allocated to all states in India along with split up of top 5 allocations is tabulated below.

NUHM Fund Allocation (Rs. in Crore)

States/UTs 2013-14 2014-15 Total
India 662.23 306.81 969.04
Tamil Nadu 78.99 52.57 131.56
Maharashtra 121.94 0 121.94
Andhra Pradesh 65 51.86 116.86
Source: Ministry of Health reports
The southern states of Tamil Nadu, Karnataka and Andhra Pradesh have been allotted 33% of total
NUHM funds.

22
 NUHM Fund Allocation 2013-14 2014-15

140
120
Rs (In Crores)

100
80
60
40
20
0

States/UT
Source: Ministry of Health, Ministry of Finance reports

The NUHM program is in its early stages of implementation and gauging the clear impact is
difficult. Having said so, NUHM concentrated on improving the infrastructural facilities to
eradicate the inefficacy of outreach for urban poor and scaling down the information asymmetry
between the primary and secondary level hospitals. The impact of NUHM can be reflected based
on the following:

 Decrease in lifestyle diseases

 Drinking water and sanitation issues
 Investment in Urban Health Care Centre and programs like ASHA.

10 Disease Control
The following graph shows the expenditure under disease control since the inception of NHM.

The allocation of funds N AT I O N AL D I S E AS E C O N T R O L

P R O G R AM M E
EXPENDITURE (IN RS.CR)

under National disease

Disease Control
control programme has
been divided into two 2000

different heads from FY14 1500

as – i) Flexible pool for 1000

communicable diseases ii) 500
Flexible pool for non-
0
communicable diseases. FY 6 FY 7 FY 8 FY 9 FY 10 FY 11 FY 12 FY 13 FY 14

Source: http://indiabudget.nic.in, Ministry of Health reports

23
 Death Due to Rabies
1
Death per Million

0.8

0.6

0.4

0.2

0
FY12 FY13 FY14 FY15

West Bengal Odisha Tamil Nadu Karnataka Kerala Delhi

Source: Compiled from reports of Ministry of Health & Family Welfare

Death Due to Tuberculosis

0.1
Death per 1000

0.09
0.08
0.07
0.06
0.05
0.04
FY09 FY10 FY11 FY12

Delhi Karnataka Andhra Pradesh Maharashtra Haryana Gujarat

Source: Compiled from reports of Ministry of Health & Family Welfare

Death Due to Measles

0.1 1.2
Death per Million

Death per Million

0.08 1
0.8
0.06
0.6
0.04
0.4
0.02 0.2
0 0
FY09 FY10 FY11 FY12 FY13

Maharashtra Andhra Pradesh Karnataka Haryana Delhi West Bengal

Source: Compiled from reports of Ministry of Health & Family Welfare

24
 Death Due to Dengue
1 4
3.5

Death Per Million

Death per Million

0.8
3
0.6 2.5
2
0.4 1.5
1
0.2
0.5
0 0
FY12 FY13 FY14 FY15

Maharashtra Kerala Karnataka Punjab Tamil Nadu Delhi

Source: Compiled from reports of Ministry of Health & Family Welfare

Given the expenditure on disease control, the impact can be clearly seen in diseases like Rabies,
Tuberculosis, Measles etc which had separate funding for a long time to control them. For new
diseases like Chikungunya, Dengue etc. the impact of the disease control cannot be clearly
established because of non-availability of effective medicines etc.

11 Infrastructure Maintenance
About 25% was spent on the infrastructure development under NHM. This fund is utilized in
building i) Primary health centers ii) Community health centers and iii) Sub-centers. Under
Infrastructure development in NHM, ambulances services provided have more than doubled in the
3-year span.

Year 2011-12 2012-13 2013-14 2014-15 (upto Sep-2015)

# Ambulances (under NHM) 7206 11661 18095 19316*
Source: http://www.indiastat.com

As of FY 2014, the following table the health facilities completed and under construction (under
NHM)

Sub- Community Primary Other

Type of District District Health Health than Sub- Sub
Facility Hospital Hospital Centre Centre Centre Centre
Facilities -
Completed 670 577 2192 7781 672 12608
Facilities -
Sanctioned 910 643 3300 9030 934 17395
Source: http://www.indiastat.com

To see the effectiveness of the spending on the infrastructure development, % of the shortfall of
different health centers (in rural areas) in 2011 is compared with of 2001 Census data. It can be

25
observed that the most of the states have bridged the shortfall in the health centers using this fund
effectively.

Shortage of Primary Health Centre (%)

70
60
% of Shortage

50
40
30
20
10
0
Delhi Bihar Tripura Uttar Andhra West Bengal Haryana Maharashtra
Pradesh Pradesh

Primary Health Centre Shortage (2001) Primary Health Centre Shortage (2011)

Source: Compiled from reports of Ministry of Health & Family Welfare

It can be seen that the states like Andhra Pradesh, Haryana and Tripura have significantly reduced
their shortfall in primary health centers.

Shortage of Community Health Centre (%)

120
100
% of Shortage

80
60
40
20
0
Delhi Bihar Tripura Uttar Andhra West Haryana Maharashtra
Pradesh Pradesh Bengal

Community Health Centre Shortage (2001) Community Health Centre Shortage (2011)

Source: Compiled from reports of Ministry of Health & Family Welfare

The shortfall in community health centers in rural areas have fallen in states like Tripura, Uttar
Pradesh, Andhra Pradesh and Haryana etc.

11.1 Health Manpower

A significant amount spending has also been made in recruiting and training the manpower. This
has helped in reducing the manpower shortage in the government hospitals. The following table
shows the manpower employed under NHM as of June-2015.

26
 Medical Staff Non-Medical Staff
General Duty Medical Officer 7263
District Program Manager 604
Paramedics 17362
District Account Manager 612
ANMs 73154
District Data Manager 577
Specialists 3355
Block Manager 3730
Nurses 40847
Block Accountant 4906
AYUSH Doctors 24890
PHC Accountant 5165
AYUSH Paramedics 6005
Source: http://www.indiastat.com

Although a large number of medical staff are trained and recruited still a lot of states face a huge
shortage in medical officers in PHC and DH level.

Vacancy position of Medical Staff (2015)

2500
Vacancy (Number)

2000
1500
1000
500
0

MO (PHC) Specialists (CHC)

Source: Compiled from reports of Ministry of Health & Family Welfare

12 Conclusion
National health mission does not have the significant effect on the fiscal deficit, unlike NREGA.
But, it has had the significant impact in terms of improving the health indicators. In the field of
child care, NHM has done an incredible job in reducing the under-5 mortality rate, infant mortality
rate, and maternal mortality rate. Immunization has also helped in reducing the incidence of fatal
diseases. This can be seen in the reduction of death per 1000 for the fatal diseases. NHM has failed
to reduce the incidence of new epidemics of several factors – lack of awareness, non-availability
of medicines etc. It has created huge health infrastructure for the rural and urban population but
there is a long way to go in meeting the international standards.

27
 Jawaharlal Nehru National Urban Renewal Mission
13 Introduction
The imbalance in the economic opportunities existing in urban and rural India is one of the sole
reason for urbanization to grow at a rapid pace. The population living in Urban India increased
from 11.4% in 1901 to >30% in 2011 [5]. This number is expected to increase and touch 40.76%
by 2030 as per survey by UN State of the World Population report. [6] In order to cater to the
needs of the growing urban population and improve the quality of life, Government of India
launched a massive urban social welfare scheme JNNURM in the year 2005. JNNURM is a large-
scale modernization scheme of Urban India which targets the infrastructural and basic civic
facilities. The scheme is sub divided in four sub-mission targeting different sections of Urban India
based on population, income level and needs. Water Supply remained the key focus and target to
be achieved.

Urban Infrastructure and Governance • Water supply & Sanitation, Solid waste management
(UIG) • Road & Transportation development

Basic Services to Urban Poor (BSUP) Integrated development of slums

Urban Infrastructure Development

Scheme for Small & Medium Towns • Water Supply is key focus
(UIDSSMT)

Integrated Housing and Slum

• Water Supply is key focus
Development Programme (IHSDP)

A total investment of $20 billion was allotted to the scheme which was distributed over seven
years. Though the initial plan was for seven years, the scheme was extended to two more years till
2014-15. Inefficacy in execution and scope for new projects were the two major reasons for the
extension and they varied across states.

13.1 Institutional Structure

JNNURM has the organizational structure as shown in the following figure [7]. National steering
committee comprising of secretaries of Urban development, Planning commission and expenditure
set the objectives and provide direction to the scheme. Projects are reviewed and approved by the
Central Monitoring Group (CMG). State steering committee comprising of ministers/sectaries of
Urban development, Urban Local Bodies (ULBs) identify and propose the projects to the CMG

28
for approval. Urban local bodies are entrusted with the responsibility of implementing the scheme.
The current organizational structure of the scheme is presented below.

Source: http://jnnurmmis.nic.in

13.2 City Development Plan (CDP)

CDP is a multi-stage process. First, demographic, economic and infrastructural aspects of the place
are studied. Based on this study, a vision for the city is created and a plan is created in line with
the vision. Most important aspect of CDP is development is the formulation of City Investment
Plan (CIP) and financing strategy to identify the sources of financing and the estimated cost
involved in the implementation of the plan.

29
14 Impact Analysis
JNNURM initiated a plethora of projects in various sectors under Urban Infrastructure and
Governance (UIG). The projects were distributed across 8+ sectors. But the major emphasis has
been for basic needs like water supply, sewerage and drainage. These three sectors alone
constituted 336 projects which are 62% of the projects sanctioned.

Sector wise Status

150

100
No of Projects

50

0
Water Supply Sewerage Storm Water Solid Waste Roads & MRTS Urban Urban
Drainage Management Flyovers Transports Renewal

No. of Projects Sanctioned No. of Projects Completed

Source: Compiled from JNNURM.nic.in

Selected states like Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh and West Bengal were
major gainers from JNNURM. A speculation of funds being allocated only to these selected states
was also raised over the years. Service level benchmarks (SLB) represent the standard performance
indicators which are easily understood by all stakeholders and can be related to the effectiveness
of the scheme. SLB brought the emphasis on accountability and performance management for
many schemes, especially in JNNURM. A total of 28 parameters is defined to measure the
effectiveness of JNNURM.

14.1 Effect on Water supply

Water being the major
necessity in Urban India, Water Supply Projects
JNNURM and UIG provided 40
35
enough emphasis on this
No of Projects

30
sector. A total of 186 25
20
projects is approved till 15
date out of which 68 are 10
5
completed. All the projects 0
were initiated in the first four 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

years and Implementation Project Initiated Project Completed

started in the following
years. Source: Compiled from JNNURM.nic.in

30
The projects' health is assessed based on three key parameters namely coverage, continuity and
quality of water supply services.

Source: Compiled from http://www.moud.gov.in

WSPs have registered 50% coverage as against benchmark value of 100% in almost 75% of
the cities where JNNURM is implemented. Most of them even recorded >80% coverage. Kerala
is the only state to have highly reliable data in comparison to the intermediate level of reliability
elsewhere.

Source: Compiled from http://www.moud.gov.in

31
Continuity refers to the number of hours’ of continuous water supply provided to the public
in a day. The ideal benchmark being round the clock (i.e 24 hours), none of the city provides
even 12 hours of continuous water supply, except Chandigarh and Trivandrum where it is almost
18 hours of continuous water supply. Various reasons being the lack of availability of water, inter-
state water dispute. This exposes the weakness of JNNURM when it comes to service level
implementation and very poor ROI in terms of benefits and money spent (explained later in cost
recovery part).

Source: Compiled from http://www.moud.gov.in

Irrespective of low service levels, WSPs stand out in one indicator – quality of water supplied.
The benchmark level of 100% is achieved by many cities and the data are also reliable.

14.2 Effect on Storm Water Drainage

Most of the diseases spread due to stagnation of water in roads during rainy days. With a huge
population growth in Urban
India, storm water drainage
Storm Water Drainage Projects
10
facility became a mandatory
No of Projects

8
facility. In total, 76 projects
6
were approved across 5 states 4
by UIG, out of which 29 2
projects as completed as of 0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
2014.
Year

Project Initiated Project Completed

Source: Compiled from JNNURM.nic.in

32
The parameters governing the SWD projects are coverage and incidence of water
logging/flooding.

Source: Compiled from http://www.moud.gov.in

A key observation is that Tier 2 cities have excelled in preventing the number of storm water
logging incidents (graph below) compared to Tier 1 cities like Delhi, Bangalore, Surat, etc. A
comparison of both the graphs indicates the disparity and poor quality in terms of implementation
of storm water projects across states. For instance, Ahmedabad has registered a number of flooding
incidents despite having a coverage of 70%.

Source: Compiled from http://www.moud.gov.in

14.3 Effect on Sewerage

Urban population has a huge problem of sewerage. Next to drinking water, this is the issue
Government of India focused heavily on. Again a huge number of 122 projects were approved by
UIG and the implementation stared in 2007-08 itself.

33
 Sewerage Projects
15

No of Projects
10

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Project Initiated Project Completed

Source: Compiled from JNNURM.nic.in

Fund Allocation and completion progress summary for Water Supply, Sewerage and Storm water
drainage is tabulated below.

Approved ACA ACA

No of Projects No of Projects
Sector Cost Committed Released
Sanctioned Completed
(Rs in lakhs)
Water Supply 186 68 2249379 277612.81 808644.82
Sewerage 122 35 1576434 755486.21 517831.22
Storm water
76 29 836553 342454.58 277612.81
Drainage
Source: Compiled from JNNURM.nic.in

Source: Compiled from http://www.moud.gov.in

34
The coverage of sewerage projects is slightly better compared to storm water drainage projects.
It can be inferred from the graph that western states are more easily accessible for ground level
surveys (high reliability) while it is difficult to gather such surveys in southern states (low
reliability).

Source: Compiled from http://www.moud.gov.in

In line with the water supply projects, when it comes to quality, the service levels are almost up to
benchmark points in case of waste water management.

14.4 Effect on Housing

For housing in urban India, funds from JNNURM and Rajiv Awas Yojana (RAY) are being
utilized. The following graph shows the amount of expenditure incurred towards urban housing
under these schemes and the Construction of Houses under JNNURM
corresponding creation of houses. 140000 3000

Expenditure (in Cr)

Number of Houses

120000 2500
It can be seen that the more and more 100000 2000
houses are being constructed under the 80000
1500
60000
scheme. These houses are constructed 1000
40000
in larger numbers in industrialized 20000 500
states like Gujarat, Tamilnadu, West 0 0
FY13 FY14 FY15
Bengal etc as shown in the following
Number of Houses Expenditure
figure.
Source: http://jnnurm.nic.in/

35
 Number of Houses Constructed (from FY13 to FY15)
60000
50000
40000
30000
20000
10000
0

Source: http://www.indiastat.com/

To analyze the effectiveness of the spending on housing, % of houses completed out of houses
sanctioned and % of houses occupied out of the % of houses completed are used. It can be seen
from the following figure that the states like Haryana, Karnataka, Maharashtra and Tamilnadu had
very high % of completion. Although the states like Haryana, Madhya Pradesh and Puducherry
had high % of completion, their occupancy levels are very low. This creates the question of the
quality of the houses being constructed in those states. Further research has to be done to analyze
the reason behind the low occupancy levels. On the other hand, states like Telangana, Maharashtra
and Uttarakhand have high occupancy levels.

Effectiveness of spending on Housing

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

% of Houses Completed % of Houses occupied

Source: http://www.indiastat.com/

36
14.5 Effect on transportation
JNNURM fund under road development is used for the construction of roads, flyovers, MRTS and
other urban transport mechanisms. As of 2013, the number of projects sanctioned and completed
is shown in the following table.

Sector Sanctioned Projects Completed Projects

Roads & Flyover 99 60
MRTS 19 7
Other Urban Transport 16 12
Source: http://jnnurm.nic.in/

The following graph shows the funds allocated to various metro schemes in India under JNNURM.

Funding of Metro Projects under JNNURM

3500
3000
Funds (in Cr)

2500
2000
1500
1000
500
0
DMRC CMRL BMRCL BMRCL-II Kolkata KMRL

2011-12 2012-13 2013-14 2014-15

Source: http://www.indiastat.com/

In road transport, JNNURM funds are being utilized for buying buses, completing projects under
Bus Rapid Transit System (BRTS). The following table shows the funds released for buying buses
all over India.

Funds released (In Cr) 2011-12 2012-13 2013-14 2014-15

Funds released for Buses 188.34 154.45 45.1 884
Source: http://www.indiastat.com/

The following table shows the amount of expenditure on Bus Rapid Transit system, introduced for
improving the urban transport in the country.

Physical
City FY12-14 (In Cr) Progress (%
completed)
Pune 163.08 60%
Amritsar 61.94 47%
Surat 58.63 100%

37
 Ahmedabad 58.09 95%
Vishakhapatnam 56.62 76%
Bhopal 40.07 85%
Jaipur 25.17 72%
Indore 19.46 100%
Vijayawada 18.88 70%
Rajkot 8.25 100%
Source: http://www.indiastat.com/

14.6 Effect on solid waste management

The following table shows the state wise distribution for solid waste management in the year 2015.

State Approved Cost (In Cr) Funds Released (In Cr) in 2015
Gujarat 41.72 5.21
Jammu and Kashmir 91.97 20.69
Madhya Pradesh 35.88 7.17
Punjab 97.85 12.23
Source: http://www.indiastat.com/

Source: Compiled from http://www.moud.gov.in

Solid waste projects are a clear contrast to water supply projects, as the cost recovered out of
these projects are on average nil. This might be one of the possible reason for the lukewarm
implementation of these projects in various cities.

15 Issues in JNNURM
On studying NHM, we have seen that scheme has been successful in providing the housing facility
to the urban poor. Although the scheme is effective in large and metropolitan cities, it is not

38
implemented successfully in mid and small cities. This is because the model that is sustainable in
large cities is not sustainable in small cities. Following are the issues concerning JNNURM –

 In JNNURM, the planning and approval require the involvement of various department
concerning land, labour etc. Once there is no co-ordination across the various department,
the implementation of the scheme becomes difficult.
 There is no community participation in the scheme. Slum people and NGOs are not
involved in the planning phase of these projects. There are also issues of people being
displaced out of slums and rehabilitated in far-away places. Ex: Telibhanda slum
 The scheme also suffers from the lack of transparency in terms of rehabilitation and
resettlement of the slum people.
 There are no perfect tangential measures to analyze the performance of schemes in water
supply, storm water and waste water treatment.

39
16 Conclusion
On analyzing the different schemes like NREGA, NHM and JNNURM, we have observed that
some states are very good in implementation whereas some states are not so good in implementing
the government schemes. Finally, everything boils down the institutions that have been set up to
implement these schemes. It is also evident by now that a single model will not suitable for a
country like India that has varied demography, economic and political conditions. In light of these,
we propose the following recommendations while setting up the institutions for effective
implementation.

16.1 Bottom-up planning

So far, in most of the schemes, the planning is done by Central and State governments. District
and block administration are primarily used for implementation purposes only. In this kind of
structure, proper and specific inputs for project planning are not being considered. Hence, the
planning has to be bottom-up where district administration has to be included in planning phases
for effective inputs and to resolve the future problems. This kind of structure will provide more
responsibility and accountability to the District administration. In turn, the efficiency of the
government schemes will also be improved.

16.2 Integrated Planning

In schemes like JNNURM, an integrated planning approach, i.e. including all the stakeholders in
the planning phase, has not been followed. It is necessary to include all the stakeholders like non-
governmental organizations in the planning phase. In the JNNURM, an integrated planning will
help in the reduction of urban poverty in the small cities.

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17 References

[1] Ministry of Rural Development, "MGNREGA," [Online]. Available:

http://www.nrega.nic.in/netnrega/home.aspx#. [Accessed 09 06 2016].

[2] NREGA, "NREGA," [Online]. Available: http://www.nrega.nic.in. [Accessed 07 2016].

[3] NRHM, "About NHM," [Online]. Available: http://nrhm.gov.in/nhm/about-nhm/goals.html.

[4] NHM, "NUHM," [Online]. Available:

http://nrhm.gov.in/images/pdf/NUHM/Implementation_Framework_NUHM.pdf. [Accessed
24 07 2016].

[5] K. Narain, in Urban Development In India.

[6] Hindustan Times, "Urbanization in India faster than rest of the world," [Online]. Available:
http://www.hindustantimes.com/News-Feed/India/Urbanisation-in-India-faster-than-rest-of-
the-world/Article1-233279.aspx.

[7] MIS of JNNURM, [Online]. Available: http://www.jnnurmmis.nic.in. [Accessed 08 2016].

[8] "MIS of NRLM," [Online]. Available: nrlm.gov.in. [Accessed 10 06 2016].

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18 Appendix
Funds Availability (In Cr) Expenditure + Liability (In Cr) Net Balance (In Cr)
State
2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

ANDHRA PRADESH 534479 304072 309414 533034 289256 462850 1445 14816 -153436

ARUNACHAL PRADESH 15509 6804 12723 10396 3882 13958 5114 2922 -1236

ASSAM 77088 58681 65232 70209 52169 86536 6879 6512 -21304

BIHAR 225138 154905 156726 222268 126908 201729 2869 27998 -45002

CHHATTISGARH 221461 178253 128389 203815 176053 133622 17646 2201 -5233

GOA 221461 567 435 203815 458 306 17646 108 129

GUJARAT 663 35951 38496 299 47703 43727 364 -11752 -5231

HARYANA 47803 21589 14453 49288 21891 17213 -1486 -302 -2760

HIMACHAL PRADESH 44079 41916 40026 38536 41167 40595 5542 750 -569

JAMMU AND KASHMIR 59684 46816 79035 56876 43148 114451 2808 3667 -35416

JHARKHAND 87018 89151 103567 81166 104396 138356 5852 -15245 -34789

KARNATAKA 98791 195513 131422 92182 169731 187169 6609 25782 -55747

KERALA 204486 164263 161082 213386 162431 149088 -8899 1831 11993

MADHYA PRADESH 132096 269400 277615 131113 283786 254767 983 -14387 22847

MAHARASHTRA 245349 162858 186408 259210 162878 189908 -13860 -20 -3500

MANIPUR 154417 28799 29552 129136 26782 23232 25282 2018 6320

MEGHALAYA 30180 32111 26816 25577 31430 35783 4603 681 -8967

MIZORAM 30745 11423 29904 33901 11420 29859 -3156 3 45

NAGALAND 26044 17926 24353 26072 15789 56602 -28 2137 -32249

ODISHA 32438 111098 205911 34632 109114 211248 -2195 1983 -5338

PUNJAB 136500 21538 32232 130293 21543 35996 6207 -5 -3764

RAJASTHAN 26270 338642 321092 26721 329484 334606 -452 9158 -13514

SIKKIM 295028 8091 9801 264501 7896 12652 30527 195 -2850

TAMIL NADU 11888 484274 692382 11124 393042 628427 765 91233 63956

TELANGANA 539005 169660 200490 394394 193627 237499 144611 -23967 -37009

TRIPURA 111671 71920 149456 107982 83057 140602 3690 -11137 8854

UTTAR PRADESH 395900 295784 312348 356051 320744 334789 39849 -24961 -22440

UTTARAKHAND 40724 33230 51526 38159 33171 53832 2566 59 -2306

WEST BENGAL 382446 400886 538546 389142 418840 554239 -6697 -17955 -15692

ANDAMAN AND NICOBAR 2002 1444 1062 1793 1310 637 209 135 426

DADRA & NAGAR HAVELI 0 0 0 0 0 0 0 0 0

DAMAN & DIU 0 0 0 0 0 0 0 0 0

LAKSHADWEEP 113 99 45 74 72 31 39 27 15

PUDUCHERRY 1858 975 1429 1137 650 922 721 324 507
Total 4432334 3758638 4331967 4136280 3683829 4725227 296053.2 74809.45 -393260

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