KARNATAKA - of Planning Commission

CHAPTER 3Karnataka Human Development Report 2005Financing Human DevelopmentIntroductionFinancing human development is a very criticalaspect of ensuring that public policies becomeconcrete realities and that the poor and othervulnerable sub-populations are supported bythe state, enabling them to become empoweredbeings capable of realising their inherentpotential in a participatory and democraticcontext. As the UNDP Human DevelopmentReport (1991) noted, the best strategy for humandevelopment is to ensure, through strong policies,generation and better distribution of primaryincomes. In addition, government services insocial infrastructure (schools, health clinics,nutrition and food subsidies) as well as physicalinfrastructure (roads, electricity and housing) canhelp the poor bridge the gap caused by paucityof incomes. However, despite sound intentions,governments do not always provide adequatelyfor the social sectors. And, sometimes, whenbudgets are adequate, they may not target thecore sectors of human development (e.g. primaryhealthcare, elementary education) and focus,instead, on other areas.This chapter examines the trends and patterns inpublic expenditure on core human developmentsectors in Karnataka. It comprises three separateand distinct segments. Part I presents an analysisof fi scal trends in the context of fi nancing humandevelopment. This is followed by an analysis oftrends in expenditure on human developmentduring the last decade. Finally, alternativestrategies for raising additional resourcesneeded to achieve the targets set for the TenthPlan and the Millennium Development Goals aresuggested. Part II is a case study, which analysesintra-sectoral public expenditure on education toarrive at an understanding of the state’s prioritiesand the quantum of funding required to achievethe desired outcomes. Part III suggests the useof gender budget and gender audit to ensuregender equity in budgeting, expenditure andoutcomes.PART IFinancing Human Development:An OverviewKarnataka will have to ensure the provision ofoptimal outlays on human development andensure effi ciency in spending in order to achievethe Millennium Development Goals (MDGs) 1 aswell as the targets set for the Tenth Five Year Plan. 2Government spending on social services, whichinclude education, healthcare, nutrition, drinkingwater, sanitation, housing and poverty reductionis a critical input that the poor and marginalisedcan leverage to bridge the gap between theinsuffi ciency of their personal incomes and theirbasic human needs. Government resources are,however, neither infi nite nor elastic. There are manycompeting demands on the state’s resources, anda state like Karnataka, where agriculture is stillprimarily dry land cultivation and where recurringdroughts dry up hydel reservoirs, leading to acutepower scarcity, must, at all times, strive to achievethat fi ne balance between growth and equity,between economic development and social justice.Investments in irrigation, power and infrastructure1The eight Millennium Development Goals are: (i) eradicateextreme poverty and hunger; (ii) achieve universal primaryeducation; (iii) promote gender equality and empowermentof women; (iv) reduce child mortality; (v) improve maternalhealth; (vi) combat HIV/AIDS, Malaria and other diseases;(vii) ensure environmental sustainability; and (viii) develop aglobal partnership for development.2The Tenth Plan Targets are: (i) reduction of poverty ratio by5 percentage points by 2007 and 15 percentage points by 2012;(ii) all children in school by 2003 and all children to complete5 years of schooling by 2007; (iii) increase in literacy rates to75 per cent within the Tenth Plan period (2002-07);(iv) reduction in gender gap in literacy by at least 50 per centby 2007; (v) reduction of IMR to 45 per 1000 live births by2007 and to 28 by 2012; (vi) reduction of MMR to 2 per 1000live births by 2007 and 1 by 2012; (vii) access to potabledrinking water in all villages in the plan period; (viii) HIV-AIDS:80 per cent coverage of high risk groups, 90 per cent coverageof schools and colleges, 80 per cent awareness among generalrural population reducing transmission through blood to < 1 percent, achieving zero level increase of HIV/AIDS revalue by 2007;(ix) annual blood examination rate (ABER) over 10 per cent,annual parasite incidence (API) to 1.3 or less, 25 per centreduction in morbidity and mortality due to malaria by 2007and 50 per cent by 2010 (NHP 2002).Karnataka will have toensure the provision ofoptimal outlays on humandevelopment and ensureefficiency in spendingin order to achieve theMillennium DevelopmentGoals as well as thetargets set for the TenthFive Year Plan.33