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Beneficiary Identification
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- Use of SECC 2011 data which does not truly reflect the ground reality.
- Sometimes, those in need are left out.
- The lapses in Beneficiary identification, due to inclusion and exclusion errors.
- Thus many poor are excluded and many rich attain benefits.
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Inefficiency of Executives
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- The reason for inefficiency can be attributed to improper monitoring, lack of accountability, corruption, and misalignment of incentives.
- Many scams and irregularities have come up in the implementation of schemes.
- Lack of policy implementation, diversion of funds, and the failure of monitoring mechanisms.
- Not involving stakeholders in the policy monitoring process.
- Lack of awareness about schemes and their benefits.
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Infrastructural Issues
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- Lack of adequate facilities across sectors like health, education, transport, etc further deteriorates the chances of success of welfare schemes.
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Political Bias in Schemes
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- Certain schemes are announced considering the political gains and not overall national interest.
- For example, farm loan waivers across states were criticized by bankers as such practices are not good for the country’s credit culture.
- Most welfare schemes have been mainly centered on individual beneficiaries rather than on integrated development.
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Shortage of Funds with State Governments
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- 2/3rd of all government expenditure happens at the state or local government level,
- But they have only 1/3rd of revenue-raising autonomy.
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Underutilization of Funds
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- Due to the lack of proper plans and implementation mechanisms the funds allocated often remain underutilized.
- For example, Tamil Nadu State Finance Audit Report 2019 revealed that the School Education Department has surrendered a total of Rs 1,627 crore in 2018-19 due to non-implementation of various schemes under Sarva Shiksha Abhiyan.
- The report on breaking up the funds returned revealed that the State government did not utilize and returned Rs 894 crore meant for developing infrastructure of the schools under the SSA scheme.
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Current Economic Policies of the Government
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- Largely influenced by globalization and capitalism, are not in conformity with its welfare obligations.
- The skewed policies relating to the expansion of capitalism, the forceful acquisition of lands from poor peasants, and neglect for the development of agriculture and rural development reflect the above statement.
- The small scale industries have been devastated by the impact of neo-liberal policies.
- The agriculture sector is neglected from the focus of economic development.
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Inequalities
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- On the one hand, the economy is growing very fast but its benefit is confined to 10-15% population.
- The rich-poor divide is increasing continuously.
- The regional disparities have increased substantially.
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