Union Budget 2023-24 Lets DownReligious Minorities

The scholarship schemes should be made demand-driven, along with additional financial resources to enhance unit costs. The MANF, Pre-Matric (Classes 1-8) and Nai Udaan schemes should be revived. Under the 15 Point Programme, resource allocation should be made in line with the diverse needs of minority communities across different sectors. The total budget allocation for MoMA should be significantly increased, given the level of deprivation in the educational attainment of minorities, suggests Dr. Jawed Alam Khan

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In spite of the low development indicators of minorities, there is decline of 38 per cent in the Union Budget over the previous year’s budget (a decrease of Rs 1,913 crore) for the Ministry of Minority Affairs

Since 2006-07, there have been two policy strategies for the development of religious minorities which include Prime Minister’s New 15Point Programme (15 Point Programme) for welfare of minorities and the Multi Sectoral Development Programme (MSDP), introduced in 2006 and 2008, respectively. The MSDP was renamed as the Pradhan Mantri Jan Vikas Karyakram (PMJVK) in 2018. Except MSDP/PMJVK, all the schemes run by the Ministry of Minority Affairs (MoMA) are also part of the 15 Point Programme, and meant 100 per cent (in terms of budgetary support) for the development of minorities. As per the provisions under the 15 Point Programme guideline, 15 percent of funds should be allocated in development programmes of general ministries wherever possible (for the development of minorities).

Muslims and other religious minorities in India have been lagging in several development indicators, including educational attainment, gender equality and workforce participation (key NITI Aayog policy documents- the Action Agenda and the Strategy Document). In spite of the low development indicators of minorities, there is decline of 38 per cent in the Union Budget over the previous year’s budget (a decrease of Rs 1,913 crore) for the MoMA.The decline in the allocation of MoMA is due to decrease in allocations for many major schemes like Merit Cum Means, Pre-MatricScheme, Free Coaching and allied schemes, Education Scheme for Madrasas and Minorities and PMJVK. The total budget of the MoMA as a proportion of the total Union Budget, however, has declined to 0.07 per cent in 2023-24 (BE) from 0.12 percent in 2022-23 (BE). This year’s total allocation for the MoMA is almost equal to the amount of allocation that was made in 2012-13.

The MoMA’s budget was increased from Rs 4,820 crore in 2021-22 (BE) to Rs 5,020.5 crore in 2022-23 (BE). However, the 2023-24 RE figure stands at Rs 2,612.6 crore. Moreover, for last few years, the MOMAhas not been able to utilise the entire allocated funds due to lack of viable proposal, delay in submission of proposal from programme implementation agencies and lack of recruitment of human resources. It also seems that the Union Budget outlays have not been provided in accordance with the demands for funds made by the MoMA. For2022-23, Rs 5,020.5 crore wasallocated against demands made from the MoA for Rs 8,152 crore.

Figure 1:Total Budget Allocation and Utilisation under Ministry of Minority Affairs (Rs crore)

Source: Note on Demand for Grants, MoMA.

From the assessment it is also found that, the resource allocation benefiting minorities has not been reported under the schemes run by select general ministries and departments falling under the 15 Point Programme. Further, the revised guidelines of renamed or new Central Schemes over the last ten years lack specific provisions for minorities. Therefore, disaggregated data on minorities with regard to their share in public sector employment, credit facilities and development outcomes by line Ministries and departments has not been reported under the 15 Point Programme. The total expenditure reported for minorities by the Union government through the 15 Point Programme and MSDP/ PMJVK have shown declining trends, as proportions of the total Union Budget expenditure, since 2012-13. Low budget allocation and under utilisation of funds have resulted in poor educational and economic empowerment levels among religious minorities, particularly Muslims. They, therefore, required special attention in the area of educational and economic empowerment from this budget.

The Post-Matric Scholarship has seen an increase in the allocation from the previous year’s budget in this budget, while several, other schemes have seen declines in allocation. Given the large geographical coverage of PMJVK, the decline in allocation in this year’s budget (Rs.600 Crore) from the last year’s budget (Rs.1,650 Crore) is going to impact the implementation and desired objective of the scheme could not be achieved.

The objective of the PMJVK is to develop socio-economic infrastructure and basic amenities in the identified Minority Concentration Areas for improving the quality of life of the people in these areas and reduce imbalances as compared to national average. On the basis of Census 2011 data, 870 Minority Concentration Blocks (MCBs), 321 Minority Concentration Towns (MCTs) and 109 Minority Concentration Districts Head Quarters (MCD HQs) falling in 33 States/UTs have been identified. In the current Budget, a new scheme called as PM-Viraasat Ka Samvardhan (PM VIKAS) has been announced for the skilling, entrepreneurship and leadership. The new scheme with allocation of Rs.540 crore is aiming to benefit approximately 9 lakh candidates in the 15th Finance Commission Cycle. The earlier schemes known as USTTAD and HamariDharohar, Seekho aur Kamao and Nai Roshni have been subsumed in PM VIKAS.

The budget allocation for the Maulana Azad Education Foundation (MAEF) has been reduced to Rs 0.10 crore in this budget. This will affect the implementation of projects such as construction grants to minority institutions and the Begum Hazrat Mahal Scholarship Scheme for meritorious girls.

The Scheme for Madrasas and Minorities has received a reduced budget outlay of Rs 10 Crore from Rs.160 crore from the previous year. This might affect the education of children in Madrasas due to non-payment of honoraria to teachers. The scheme provides financial assistance to introduce modern subjects in Madrasas, teachers’ training and augmenting school infrastructure in minority institutions.

The scholarship schemes face several implementation issues with poor utilisation of fund, inadequate coverage of beneficiaries, low unit costs, and also scrapping of some of the schemes. The amounts given to students as scholarships are not adequate to meet their educational expenses. The unit cost for scholarships in Pre-Matric, Post-Matric and Merit-cum-Means schemes for minorities has not been revised since the inception of the schemes (in 2007-08). For instance, only Rs 1,000 per annum is provided to day-scholars under the Pre-Matric Scholarship scheme.

The budget allocation for the Pre-Matric Scholarship has been reduced to Rs. 433 Crore in this budget from Rs.1425 Crore in 2022-23. Last year, the MoMA issued a notification that students of Classes 1-8 will no longer be eligible for the Pre-Matric Scholarship for Minorities. The scheme has been restricted to Classes 9 and 10, with immediate effect. The reason cited for the recent notification restricting Pre-Matric Scholarships to Classless 1 and 8 is that children in classes 1-8 are covered under the Right to Education Act, 2009, which makes it obligatory for the Government to provide free and compulsory elementary education to each and every child.

Further, the notification said that the decision has also been taken to restrict the Pre-Matric Scholarship for minorities up to Classes 9 and 10 to ensure parity with the scholarships offered by the Ministry of Social Justice and Empowerment and that for Ministry of Tribal Affairs also, because these ministries cover students studying only in classes 9 and 10 in the Pre-Matric Scholarship Schemes.

The argument given by MoMA to stop some of the scholarship schemes,including Maulana Azad National Fellowshipis not very strong; these scholarships and fellowships are awarded with the purpose of encouraging families to send their children to schools and colleges and also incentivise students to continue their education at the higher level. The dropout rate is also higher among Muslims than other religious minorities.

The Nai Udaan Scheme, which was meant to help minority candidates prepare for the Preliminary examinations conducted by the Union and State Public Services Commissions has been scrapped last year. The Nai Udaan Scheme has received no allocation. This might affect the representation of minorities in the public employment.

Table 1: Budget Allocation and Utilisation under Select Schemes of Ministry of Minority Affairs (Rs crore)

Source: Note on Demand for Grants, MoMA.

Our analysisreveals that there has been a huge unspent balance in last quarter of the financial year. The percentage of utilisation is 38,19 and44 inPre-Matric, Post Matric and Merit Cum Means respectively. The three scholarship schemes of MoMA are implemented through the National Scholarship Portal (NSP). But the structure of the implementation of these Schemes is such that the disbursement of scholarships starts only in the last quarter of the fiscal year and goes on until end of first quarter of next financial year. The process of payment gets delayed due to late opening of registration of applications by NSP and verification of application at the institution, District and State level. It is also found that most of the states do not have dedicated Department of Minority Welfare at the district level and where the department exists there is acute shortage of staff.

The total registration of applications for the year 2021-22 has been 1.08 crore in 2021-22 and 65.6 Lakh applicants have received the scholarships. Under Post Matric only 37 percent have received the scholarship. The analysis shows that there is huge gap between the number of application and award of scholarship, thus depriving more than 40 lakh students.

The scholarship schemes should be made demand-driven, along with additional financial resources to enhance unit costs. The MANF, Pre-Matric (Classes 1-8) and Nai Udaan schemes should be revived. Under the 15 Point Programme, resource allocation should be made in line with the diverse needs of minority communities across different sectors. The total budget allocation for MoMA should be significantly increased, given the level of deprivation in the educational attainment of minorities.

Author works on development policy and public finance ([email protected])