Welfare Schemes: Economic Survey Suggests Structural Changes in ‘Lakshmir Bhandar’ like Welfare Schemes for Future Growth
Welfare Schemes: Across India, and specifically in West Bengal, welfare schemes involve significant government expenditure. Schemes like West Bengal’s ‘Lakshmir Bhandar’ have garnered immense popularity among the masses. However, the recent observations from the Economic Survey have shed light on the structural aspects of such welfare programs. The survey does not suggest stopping these schemes abruptly but strongly recommends a shift in their nature and the utilization of funds.
Shifting Focus from Cash to Human Capital
According to the insights from the Economic Survey, the focus needs to shift from merely distributing cash handouts to building ‘Human Capital’. This implies that public funds should ideally be redirected towards essential sectors like education, health, and nutrition. When citizens are educated, healthy, and well-nourished, they transform into assets for the nation rather than remaining dependent beneficiaries.
Linking Aid to Employment and Skills
A crucial recommendation involves connecting financial aid with skill development and employment. Instead of unconditional support, the assistance should be linked to apprenticeship programs or work-based support systems. The idea is to empower individuals by teaching them a trade or skill, enabling them to stand on their own feet. This approach ensures that the aid leads to long-term employability rather than short-term consumption.
Emphasis on Infrastructure and Capital Expenditure
Looking at the long-term horizon, the survey emphasizes the need to prioritize Capital Expenditure over Revenue Expenditure. Investing in infrastructure—such as building roads, bridges, hospitals, and educational institutions—ensures future returns. Asset creation not only boosts the GDP but also lays a robust foundation for future generations, providing benefits that last for decades unlike one-time cash transfers.
Leveraging the Demographic Dividend
India is currently in a unique position with a vast young population, known as the ‘Demographic Dividend’. The survey warns that if resources are consumed in distributing cash rather than skilling this youth workforce, the country risks losing a massive opportunity for growth. The priority, therefore, must be to make the youth capable and skilled.
In summary, the narrative is not about discontinuing welfare support but about repurposing the expenditure. The goal is to ensure that the massive funds spent on these schemes create permanent value and self-reliance, rather than just providing temporary relief.
