Maharashtra spends less than Bihar and UP on health and educationth and

Maharashtra gets flak for poor spend Madhavi Rajadhyaksha, TNN | Nov 4, 2011, 05.32AM IST Article Comments (1) Read more:Planning commission|Human Development Report 2011 1 MUMBAI: The Planning Commission has slammed Maharashtra for its poor spending on the social sector in the recently released India Human Development Report 2011. However, it has praised the state for its impressive literacy rate. Santosh Mehrotra, director general of the Institute of Applied Manpower Research which prepared the plan panel report, told TOI that the poor expenditure resulted in poor outcomes as was evident by Maharashtra's lagging indicators across sectors. "The actual outcome indicators of Maharashtra don't look very good in comparison to the national average," he said, referring to the state's high incidence of poverty, poor child sex ratio, rampant malnutrition , lack of jobs and high rate of farm suicides, despite its high per capita income. "Effectively, if you take Mumbai and Pune out of the state, Maharashtra is on par with poorer states," observed Mehrotra, saying the poor spending reflected the priorities of the state. The out-of-pocket-spending on healthcare in the state, for instance was five times the government spending. People spent roughly Rs 1,008 mainly on medicines and diagnostic tests for a corresponding Rs 204 that the government spent. Calling this "an unhealthy ratio" , noted paediatrician and public health researcher Abhay Bang said outof-pocket expenses were a leading cause of impoverishment. "Even the lower middle class go into debt as they don't have the ability to bear healthcare expenses today," he said. The Planning Commission's observations come at a time when the state is already facing flak over poor welfare measures. Union minister for rural development Jairam Ramesh recently rapped the state government for its abysmal performance in providing jobs under the Centre's flagship rural employment guarantee scheme. This, even as farmer suicides in the eastern belt of Vidarbha continue unabated. A Ramaiah, professor and chairperson, centre for the study of social exclusion and inclusive policy, TISS, said it was unfortunate that no political party took up the agenda of budget allocations and spending on the social sector. "There are grave social implications of such poor state spending. Not only will starvation go up among the masses, it could result in a backlash such as crimes rising, particularly more economic offences," he pointed out. Over 30% population of state in poverty For an industrialized state, Maharashtra's record of poverty alleviation is a matter of shame. It is the only advanced state among the ranks of poorer states where poverty is poised stubbornly above the national average , reveals the Planning Commission's India Human Development Report 2011. The incidence of poverty has been on the decline in Maharashtra over the past three decades, but 30.7% of its population remains poor. This is way over the all-India average of 27.5% as of 2004-05 , the latest period for which the Planning Commission estimates are available (see box). The only others with rampant poverty are states like Bihar, Orissa and Madhya Pradesh. The parameters used to measure poverty have come under severe criticism in recent times. The report draws its figures from the National Sample Survey Organisation's 61st round which calculates poverty estimates based on consumption expenditure . The Tendulkar committee subsequently revised poverty estimates in India to 37.2%. The UN now uses multidimensional poverty as a more holistic measure. Santosh Mehrotra of the Plan panel's Institute of Applied Manpower Research said Maharashtra was one of the only states where the number of poor in absolute terms had risen in the 11th Five-Year Plan period. Another worrying trend which emerged was that the poor in cities and towns in Maharashtra outnumbered those in villages. This, experts said, signified the growing inter-district disparity and rural distress, particularly in eastern parts of the state such as Vidarbha. Saying there were over 40 poverty alleviation schemes in Maharashtra, economist Vibhuti Patel of SNDT University said more accountability is essential. "Welfare spending should be subject to more social audits."