Budget for Children

in Jharkhand
KUMAR SANJAY & ABHIJEET NIRMAL

A Study by
CREJ & HAQ
with support from CRY
 Back of
Title Page
Blank
Preface
We all have been experienced on Jharkhand Socio-economic and development opportunities and
its challenges. The reconfiguration of this new state has brought a ray of hope among the
residents of the state as well as others for the prolonged dreams to come true. However, there are
tremendous challenges ahead to lead the state to a desired and meaningful direction.
Budget merely not an economic document but it replicates government priorities and
commitments. The economic situation reflects its political circumstances and priorities of any
government, state as a nation whole. How much concern a government has for its children is also
reflected in the resources it is willing to dedicate to the realization of their basic needs. One of
most effective tools to track the situation of children in any economy is Child Budget Analysis and
also an instrument for appraising the progress on child rights and advocating for transform.
This study would not have been drawn without the support of CRY (Child Rights & You) and
HAQ- Centre for Child Rights. We will remain thankful to Saibal Baroi and Amit Pande (both
from CRY) who are in ours positive changes spirit, views and ideas.
We would like to acknowledge HAQ- Centre for Child Rights for technical support of this study.
We would also like to thank Enakshi Ganguli Thukral and Bharti Ali (both from HAQ) for
providing us with insightful research techniques, vision and idea to finalize such study.
We would also like to acknowledge senior and other functionaries in various government
departments for help with the data.
We would like to thank the eminent contributors for taking out their valuable time and sharing
their thoughts about Jharkhand. We desire to thank all our associated organizations, campaigns
and networks who will use our findings and corroborate our ideas in child budget being an
important monitoring tool for recognizing child rights.

Kumar Sanjay
1
Contributions & Suggestions
1. Mr. Harivansh, Chief Editor, Prabhat Khabar
2. Mr. Saibal Baroi, CRY, Kolkata
3. Mr. Amit Pande, CRY, New Delhi
4. Ms. Enakshi Ganguli Thukral, HAQ, New Delhi
5. Ms. Bharti Ali, HAQ, New Delhi
6. Mr. Faisal Anurag, Senior Journalist cum Activist, Ranchi
7. Mr. Vinod Singh, MLA, Jharkhand
8. Mr. Ramkumar, Senior Journalist, Ranchi
9. Dr. Ramesh Sharan, Renowned Economist, Jharkhand
10. Dr. Harishwar Dayal, Director, IHD Eastern Regional Centre, Ranchi
11. Dr. Vijay Baraik, Scientist, JSAC, Ranchi
12. Mr. Madhukar Bhardwaj, Deputy Secretary, Jharkhand Vidhan Sabha, Ranchi
13. Mr. Sanjay Bosu Mullick, Save the Forest Movement, Jharkhand
14. Mr. Vinoy Bhushan, Prabhat Khabar, Ranchi
15. Ms. Manorama Ekka, HOPE
16. Mr. Manish Shandilya
17. Mr. Rudra Roopak

2
Table of Contents
1. Rationale for the study of the Budget for Children (BfC) 4
1.1 Methodology 4
1.2 Constraints 6
2. Jharkhand Budget for Children 7
2.1 An Introduction 7
2.2 Status of Children in Jharkhand 9
3. Children and the Budget for Children (BfC) 10
4. Budget for Children in Jharkhand – An Overview 11
5. Sectoral Allocation 14
6. Social Sector and Budget For Children 16
7. Child Development 17
7.1 BfC and Development xx
7.2 Programme and Schemes xx
8. Child Health xx
8.1 Institutional Delivery xx
8.2 Infrastructure Gaps : xx
8.3 Health Infrastructure of Jharkhand xx
9. BFC and Health xx
10. Child Protection xx
11. BFC and Protection xx
12. Child Education xx
12.1 Status of Education in Jharkhand xx
12.2 Comments of CAG xx
12.3 BfC and Education xx
12.4 Elementary Education vs. Secondary Education xx
12.5 Sarva Shiksha Abhiyaan (SSA) xx
12.6 Mid Day Meal (MDM)/Saraswati Vahini Scheme xx
13. Annexures xx

3
1. Rationale for the study of the Budget for Children (BfC)
1.1 Methodology
The Child, in BfC
In accordance with the UN Convention on the Rights of the Child, and in consonance with the
definition of a child in the Juvenile Justice Act 2000 of India, the child in this study is an individual
up to the age of 18 years.
Although several Indian laws, programmes and schemes – at the national or state level – address
the needs of children up to the age of 14, this study includes all programmes related to children up
to the age of 18.
Time-frame of the study
The Jharkhand Budget for Children analysis is based on five financial years – 2003-2004 to 2007-
2008. While Budget Estimates are available for all of the above years, Revised Estimates are
available up till 2006-07 and Actual Expenditure till 2005-06. The comparison of BE, RE and AE
therefore is on the basis of the three years for which Actual Expenditure figures are available.
Sectors, Schemes and Programmes, and Departments
Survival, development, protection and participation are the four basic rights of children,
according to CRC. While schemes and programmes directly related to the right of participation
do not yet form a part of GoI's budgetary exercise (or that of any Indian state), there are several
social sector schemes and programmes that can be categorized within the broad ambit of the
rights to survival, development and protection.
In keeping with the way in which schemes and programmes related to children are planned and
implemented at the national and state level in India, this study addresses its concerns through the
identification of four sectors – development, education, health and protection – in the analysis of
the Budget for Children. Put together, these four sectors are directly linked to the rights of
survival, development and protection of CRC.
On the basis of the demand for grants prepared for the annual budget in Jharkhand during the
period of the study, a total of 6 departments were identified with allocations related to children.
These departments, from which programmes and schemes have been taken for analysis, cover
four sectors – development, health, education and protection – and include the following:
Development Department of Women and Child Development
Health Department of Health & Family Welfare
Department of Women and Child Development
Education Department of Human Resource Development
Department of Welfare
Department of Social Welfare, Women and Child Development
Department of Sports, Youth Affairs and Art & Culture
Department of Labour and Employment

4
Protection Department of Women and Child Development
Department of Labour and Employment
Data : Sources, Access and Analysis
For the purposes of the study, an overall attempt has been made to separate the programmes and
schemes meant for children from the rest of the Jharkhand state budget, and which include both
plan and non-plan expenditure. However, as in the case of the certain programmes – RCH for
example – have been taken in entirety even though such programmes are meant to benefit both
women and children.
Detailed Demands for Grants : The Detailed Demands for Grants are, as the very name
suggests, details of budget allocation and expenditure under each head. The details of the Budget
Estimates (BE) and the Revised Estimates (RE) of the previous year, the Budget Estimates of the
Current financial year. The Actual Expenditure (AE) figures are available only in the alternate
years, and the Detailed Demands for Grants has the figures for the year preceding the last
financial year. For example the Detailed Demands for Grants for 2006-07 has AE for 2004-2005.
Estimates for expenditure in the states are presented to the Legislative Assembly as Demands for
Grants. Generally, each ministry or department presents one Demands for Grants (DfG).
However, large ministries or departments may present more than one Demand. Usually, each
DfG includes the total provisions required for a service, which is followed by the estimates for
expenditure under different major heads of account. These DfGs are submitted along with the
Annual Financial Statement. Detailed Demands for Grants (DDfGs) follow the DfGs after the
presentation of the Budget to the Legislative Assembly, but before the discussion on DfGs
begins. The Detailed Demands for Grants show further details of the provisions included in
the DfGs, and the actual expenditure during the previous year.
Budget Estimates, Revised Estimates and Actual Expenditure : To understand budgets in
India, one must look at three levels in the budgeting process – Budget Estimates (BE), Revised
Estimates (RE) and Actual Expenditure (AE).
Budget Estimates are prepared by the estimating authorities in accordance with their assessment
of financial requirements for the forthcoming year, keeping in view the actuals of the past years,
the overall trend of expenditure in the current year, and the arrears of previous years.
Revised Estimates are prepared during the current financial year, before the Budget Estimates of
the forthcoming year; Revised Estimates are therefore, a stage more complicated in the Indian
context. The preparation of RE for the year 2006-07 for example (on the basis of expenditure
trends in the first six to seven months of the year), precedes the preparation of BE for the year
2007-08. To extend the example, RE for the year 2006-07 would be based on the latest figures
available of actual expenditure incurred during 2006-07, actual expenditure incurred during 2005-
06 and also during the past few years. RE in this case would also be based on appropriations or re-
appropriations already ordered or which are contemplated during the remaining part of the year,
and any sanction to expenditure already issued or proposed to be issued during the remaining part
of the year.

5
Actual Expenditure (AE) figures are available after the final accounts have been submitted to
the state government. AE for the year 2006-07, for example, will be available to the public only at
the end of the year 2008-09.
Seen as a whole, the presentation of BE, RE and AE reflect the government's announcement of
intent, the maintenance of this intent, and the implementation of this intent. An analysis of the
changes that occur from one level to another – in terms of BE, RE and AE – is quite revealing,
and therefore necessary to understand in any particular annual budget.
An analysis of the difference between the Estimates and the Actual Expenditure shows how
much of the budget has been spent in a given financial year. The reasons for under-
utilization/under-spending of the Budget Estimates or Revised Estimates can be many. This
study does not go into the finer details of those reasons. It concentrates only on the budget as a
commitment to children and the trends arising thereof. Some attempt has been made to seek
reasons from the Comptroller and Auditor General's (CAG) Reports; the Appropriation
Accounts of the Accountant General of India and the Performance Budgets brought out by the
Ministries and Departments. However, it is not always possible to trace the reasons.
Plan and Non-Plan : The terms Plan and Non-Plan refer to the five-year financial plan. All
expenditure (estimated or actually spent) spelt out in a particular Plan (i.e. a five-year plan) is called
Plan Expenditure (PE), which is subsequently divided into yearly plans. In other words, Plan
Expenditure is a part of the total expenditure meant to be utilized in the implementation of the
schemes and programmes framed in a given Five-year Plan. PE also includes the amount to be
incurred on the unfinished tasks of previous Plans.
In addition, when a particular programme in a given Plan completes its duration, the recurring
expenses on the assets created and staff recruited in the future, are not regarded as Plan
Expenditure. If such a programme continues beyond a given Plan, all expenses incurred for it are
included in Non-Plan Expenditure. This study covers both Plan and Non-Plan Expenditure
of the Jharkhand government.
1.2 Constraints

•
Jharkhand has been formed as a new state only before seven years and the different
government departments were delayed in releasing state specific data and reports. As a
result, depending on the availability of the data the analysis has been done from 2003-04
to 2007-08. The major indicators available are on the basis of nation wide research; very
few researches have been done by state departments.

•
To maintain consistency the data for this study has been taken from the 'demands for
grants' of relevant departments. The 'demands for grants' is the most authentic
documents for analyzing budget because this is presented in the state legislative
assembly and state assembly authorize and pass it. It is possible that the data for some
schemes/programme analyzed in this study may differ from the figures mentioned in
other government documents such as Performance Budget, Annual Report/Note on
Demand; however it will be a minor difference.

6
2. JHARKHAND BUDGET FOR CHILDREN
2.1 An Introduction
Jharkhand has 24 districts spread over an area of 79714 Sq. Kms at present. The state is divided in
5 administrative regions namely Santhal Parganas, Palamu, Kolhan, North Chhotanagpur and
South Chhotanagpur. Each of these regions has its own distinct cultural identity. Jharkhand has a
population density of 338 per square kilometer that is close to the national average of India.
Jharkhand is the richest state in mines and BOX 1 :
mineral resources availability in India. It is Jharkhand has vast mineral reserves, with 33 per cent of
leader in mineral reserve of coal, mica, iron India's coal deposits, 47 per cent of its Mica and 34 per
ore, copper, china clay, fire clay, kyanite, cent of copper. Creating a diverse and inclusive economic
base calls for harnessing not just its comparative
bauxite, asbestos, feldspar, quartz, lac and
advantage in mining, but also the untapped opportunities
uranium. Jharkhand has almost 30 per cent for growth provided by tourism.
of total forest area in the state.
Source : Jharkhand, Addressing the Challenges of Inclusive
The population of the state is 2,69,45,829 out development, 2007, World Bank, Poverty reduction and economic
of which 1,38,85,037 are males and management, India country management unit, South Asia, Page no.37
1,30,60,792 are females composing a sex ratio
of 941. The sex ratio has improved from 922 in 1991 to 941 in 2001, which is also marginally (1.20
per cent) higher than the national figure. The density has increased from 274 in 1991 to 338 in
2001 above the country's average figure in both the periods.
The state has the intermingling population.
The major languages spoken are Hindi,
Sadri/Sadani/Chotanag puri, Kurukh,
Mundari, Ho, Santhali and Kharia. In terms
of religious composition, the Hindus form
the largest group with 77.15 per cent of total
population followed by the Muslims (12.18
per cent), Christian (3.72 per cent), and others
including Sarna (6.45 per cent).
The Scheduled Tribes are one of the
prominent social fabrics of the state and that
gives a separate identity to the state. The ST population was a special consideration during
formation of a new separate state; however the status of ST is very grim. Only 40.70 is the literacy
rate among ST and 1/3rd of the total ST families' falls under below poverty line. The government
estimates, 23.22 lakh ST families living below the poverty line in Jharkhand. Out of which 8.79
lakh belong to schedule tribes (ST). The Scheduled Tribe population that was 27.23 per cent of
state in 1991 census has come down to 26.3 per cent in 2001 census.

1 Jharkhand Industrial Policy 2001, Department of

Industry, Government of Jharkhand, Chapter No.1.0, Page No.02
2 Source: Jharkhand, Addressing the Challenges of
Inclusive development, 2007, World Bank, Poverty reduction and
economic management, India country management unit, South Asia, Page no. 60
3 Census of India 2001, Government of India
4 Census of India 1991, Government of India

7
A cursory glance at the achievements in various socio-economic spheres reflects that after more
than half a century of independence, the state has achieved 53.6 per cent of literacy, while in rural
area it is only 45.7 per cent. The female literacy rate is only 38.9 per cent in urban areas and 29.0 per
cent in rural areas. The infant mortality rate (IMR) and Under-5 Mortality rate are still higher with
58.3 and 78.3 per thousand children.
The reconfiguration of this new state has brought a ray of hope among the residents of the
state as well as others for the prolonged dreams to come true. However, there are tremendous
challenges ahead to lead the state to a desired and meaningful direction.

Table 2 : Key Indicators

State Jharkhand
Area (sq. km.) 79,714
Population 2001 26,945,829
Decadal Gwrowth (Census 2001) (%) 23.36
Density of Population per sq. km. 338
Average Annual growth rate of population 1991-2001 (%) 2.1
Sex Ratio (Census 2001) 941
Total Children 0-6 years (Census 2001) 4956827
Total Children 6-13 years (Census 2001) 5706442
Schedule Caste Population (in million) 3.19
Schedule Tribe Population (in million) 7.09
Per capita Income 2006-07 (Rs.) 23,591
Percentage of Urban Population (%) 22.25
Literacy Rate (%), 2004-05 58.82
Female Literacy Rate (Census 2001) (%) 39.38
Number of Districts 24
Number of Towns 152
Number of Villages 32,616
Principal Crops Maize, Rice, Wheat, Pulse
Major Industries Heavy Engineering, Coal Mining,
Tussar Silk, Steel, IT, Tourism

8
2.2 Status of Children in Jharkhand

Table 3 : Key MDG and Social Indicators 2000

Indicators Jharkhand India
Poverty Head-Count (Official Estimate) 44 26
Percentage Children Underweight 54 47
Percentage Children Stunted 49 46
Education
Literacy Rate (6 & above) 54 65
Male 68 75
Female 39 51
Net School Attendance (6-14) 64 77
Boys 71 80
Girls 56 74
Girls Education in Class 1 - 5 (in per cent)*** 37.45
Girls Education in Class 6 - 8 (in per cent)*** 31.63
Girls Education in Class 9 - 10 (in per cent)*** 27.20
Health
Infant Mortality Rate (2005 / 06) 69 57
Percentage Children Fully Immunized 9 42
Immunized against Measles 18 51
Immunized against DPT (3 doses) 22 55
Population Growth Rate (1991-2001) 2.3 1.7
Contraceptive Use (any modern method) 43 25
Sanitation Access 15 30
Maternal Vaccination (TT) 51 67
Births Attended by Skilled Attendants 18 42
Percent of Households with Access within 15 Minutes of Safe Water Supply 34 62

Source : NSS 55th round, NFHS-II< NFHS-III, and Population Census 2001.
***Department of HRD, Government of Jharkhand, www.jharkhand.nic.in

9
3. Children and the Budget for Children (BfC)
The Budget for Children (BfC) is not any different budget, it is an attempt to segregate
allocation and expenditure made for the children in Jharkhand.
The budget is a priority of any state government and it shows how much government is
committed for the promotion and protection of child rights in the state. This is an attempt to find
the priority of government towards xxx no. of children in the newly created state of Jharkhand.
Jharkhand state has been formed in the year 2000. Jharkhand state has a distinction of 4th largest
state in term of tribal population. The state itself was formed on the basis of least development
after a span of 50 years of independence and a state that has special provision for the
development of tribal. The tribal population of Jharkhand is specially protected through the 5th
schedule of constitutional provision.
The scenario after the 8 years of formation
BOX 2 :
reveals that the situation has changed at least At present, the budget does not reflect a
speed and in some places new problems has realistic picture of the financial position of the
emerged. The child soldier is one among state. While the overall level of debt is known,
them. The civil society organization and other disclosures such as large outstanding pension
Media always have tried to bring this issue in liabilities and contingent liabilities (committed
attention of government; however it is not contracts, guarantees, bad debts etc.) are not known.
documented in any report of government. The government needs to prepare a medium-term
The per capita expenditure of a region gives a expenditure plan and place its annual budget
clear picture as to what is the per capita preparation within the context of this plan. This
amount spent by the residents of a particular plan should be prepared in consultation with the
region and thus gives a clear picture about the line departments and be consistent with resource
mobilization efforts to ensure fiscal discipline in the
consumer patterns of the residents of a state. medium to long term.
The annual per capita expenditure of
Jharkhand is as low as Rs.495 per year. Source: Jharkhand, Addressing the Challenges of
Inclusive development, 2007, World Bank, Poverty
The issues and priority of government can be reduction and economic management, India country
analyzed through the budget for children management unit, South Asia, Page no. V
exercise in the state.

6 Source : Primary Census Abstract : Census of India, 2001

7 Source : Jharkhand Development Report 2008, table C.8 (b)

10
4. Budget for Children in Jharkhand – An Overview
Jharkhand state has developed at a mild pace during last 8 years of its formation. The budget trend
shows an increasing trend in the budget allocation. The trend visible during the study period of
2003-04 to 2007-08 shows that the state resources has increased from 9489 crore in 2003-04 to
16603 crore in 2007-08. For the same period the budget for children has also increased from 1420
to 2490 crore. This is a marginal increase of 0.40 per cent in allocation on children. The
government has changed but the priority towards the children has not changed that is still
hovering around 15 per cent of the total state budget.

Table : 4
BfC % in
State Budget Social Sector Budget for BfC %age in
Year Social Sector
Allocation Allocation Children State Budget
Budget
BE BE BE In per cent In per cent
Rs. Crore
2003-04 9489.32 2738.68 1419.79 14.96 51.84
2004-05 10976.01 3177.76 1616.78 14.73 50.88
2005-06 12423.33 5282.91 1960.36 15.97 37.11
2006-07 15394.85 5271.26 2320.81 15.07 44.03
2007-08 16603.80 5510.23 2490.93 15.00 45.21
Average 12977.46 4396.17 1961.73 15.11 44.62

Out of total 100 rupee being allocated in the state only rupee 15.11 BOX 3 :
have been provided for the children in the state budget of Jharkhand Only Rupee 15.11 have
during 2003-04 to 2007-08. In the year 2003-04 the BfC was 14.96 per been provided for the
cent of the total state budget, it increased to 15.97 per cent in 2005-06 children in the state
but it could not sustain the growth and fallen to 15.07 in 2006-07 and budget of Jharkhand
15.00 per cent in 2007-08. Does it mean that the priority of during 2003-04 to 2007-08
government has reduced after 2005-06? Or the children needs have
reduced?

Average Share of BfC in Jharkhand Budget (2003-04 to 2007-08)

15.11

Percentage allocation on BfC

Percentage allocation other

than BfC

84.89

11
The comparison between allocation and
expenditure on children gives a very grim
picture. On an average 26 per cent of allocation
was under spent during 2003-04 to 2005-06. It
means out of total Rs.100 allocated in the state
only Rs.11.18 was spent on children during
2003-04 to 2005-06.
Out of total allocation of 1419 crore in 2003-04
on BfC only 970 crore was actually spent. The
under utilization of allocation is not only for
one year but is common for 2004-05 and 2005-
06. In 2004-05 1283 crore against 1616 crore
allocation and in 2005-06 1482 crore against 1960 crore was actually spent.
This shows an under spending of 32 per cent in 2003-04, 20 per cent in 2004-05 and 25 per cent in
2005-06. It is an under utilization of 1259 crore during 3 years on children programme. The
average under utilization per year is about 420 crores alone on children programme and schemes.
It shows that state is spending much less than what it promises to the children, during budget
presentation in the state legislative assembly.

Difference in BE, RE and AE in Jharkhand BfC

100
0
Rs. Crore

-100
-200 BE – RE
RE – AE
-300
BE – AE
-400
-500
2003-04 2004-05 2005-06
Year

BE, RE and AE in Jharkhand BfC

3000

2500

2000
Rs. Crore

BE
1500 RE
AE
1000

500

0
2003- 04 2004-05 2005-06 2006-07 2007-08
Year

12
In all year the revised estimate (RE) is closer to the budget estimates (BE), however the actual
expenditure (AE) is less than the RE. The analysis of BE, RE and AE in Jharkhand BfC reflects
that after the end of year also departments doesn't realizes that they have not utilized a huge
resources made for children. The under utilization clearly reflects that the target could not be
achieved in the particular years. If the target was not achieved in 2003-04, 2004-05 or 2005-06
than it is important to see if the government took any major initiative to bring down the under
spending? Or whether the government have allocated additional amount in next year?
In the year 2003-04 the under spending was for 449 crore but the next year budget allocation on
BfC shows an increase of only 197 crore. In 2004-05 under spending was 333 crore and increase in
allocation was 343 crore and in 2005-06 the under spending was 478 crore but the increase was
only of 360 crore. It is surprising to find that in year 2003-04 government of Jharkhand had
promised an expenditure of 1419.79 crore but this mark of expenditure only crossed in 2005-06.
It shows that the allocation towards children has increased but the expenditure in real has not
increased as was promised by the Government of Jharkhand.

13
5. SECTORAL ALLOCATION
It is important to observe the sectoral
Sectoral Share in Jharkhand BfC
allocation within the BfC. The BfC can be
observed in four parts, i.e. development, 0.77 0.33
health, protection and education. This 11.44

will show us the micro perspective of

government priority towards children.
The government priorities are generally
decided according to the political
importance of certain sector. In case of
BfC also this is not isolated. The state
government has allocated maximum on
the education sector of child and least on 87.46
the protection of children. The child Education Development Health Protection
education involves schools in villages and
teachers employment. It serves the
purpose of any elected government that wanted to reach to the villages through new
infrastructure and giving jobs to the unemployed youth. The priority can also be decided after the
availabilities of funds. In case of education and development, more than 75 per cent of the funds
are available through the centrally sponsored schemes, however the state government has framed
these schemes and programmes in such way that it looks like the effort of state government and
also benefits the political party in ruling during the next election.
The Sectoral analysis clearly reflects
that the priority of state government
is totally centered towards the child
education with an average allocation
of 87 per cent in total BfC. The
development follow the education
with 11.44 per cent of the total BfC,
however the child health and child
protection is the most neglected
sector with less than 1 per cent of the
total allocation. The allocation on
health and protection together is only 1.1 per cent of the total BfC in Jharkhand.
Out of every Rs.100 allocated in the state budget, Rs.15.11 goes to BfC. Out of that Rs.15.11
(BfC) the share of education is 13.26, development 1.68, health 0.11 and protection only 0.05.
The protection is the most neglected sector and the allocation on protection has gone down from
Rs.0.12 in 2003-04 to 0.04 in 2007-08. It means that in 2003-04 government has allocated 12 paisa
on protection and gradually it came down to 4 paisa in 2007-08 in the total state budget.
Surprisingly the allocation on education has also gone down during the span of 5 years, the
highest allocation on education was in 2003-04 with Rs.13.62 and it came down to 13.05 in 2007-
08. The allocation on development and health has marginally increased. The allocation on
development hover around Rs.2 and health around 19 paisa.
14