Social Security: Reality & Reforms

Abstract

An Analysis of India's Social Welfare Programs: In a democracy, the state's role is to promote societal welfare. According to Aristotle, the state should not only ensure its survival but also improve the quality of life for its citizens. The state has a moral responsibility to its citizens. Modern views agree that the state should provide essential services like education, healthcare, and social security. This helps to create an environment where people can pursue their goals. It also allows them to participate meaningfully in community life. Despite economic growth, India continues to face substantial socioeconomic issues such as poverty, income inequality, and limited access to healthcare and education. Approximately 22 per cent of the population lives below the national poverty line, and the top 10 per cent owns 77 per cent of the nation's wealth. Access to quality healthcare and education is another critical area requiring significant state interventions. The lack of adequate health facilities often forces the general population to bear higher out-of-pocket expenditures. These figures highlight the urgent need for state interventions in the form of social welfare schemes to bridge the economic divide and promote a fairer distribution of resources. Social welfare programs play an important role in addressing these concerns by assisting marginalized groups and fostering equitable resource allocation. India's social welfare programs have evolved dramatically since independence, particularly over the last decade, with increased coverage and focused interventions aimed at inclusive growth. This article assesses the performance of various social welfare schemes, including MGNREGA, PMJDY, AB-PMJAY, PM-KISAN, MDMS, and the PMUY focusing on their goals, successes, and challenges. Understanding the impact of these programs is critical for measuring their success and identifying areas for improvement, ultimately contributing to the socioeconomic development of the Indian community.

Introduction: Role of State in Democracy

The primary goal of the state is deeply rooted in promoting the general welfare of society. According to Aristotle, a seminal thinker in political philosophy, the state's existence is not merely to ensure the survival of its citizens but also to actively contribute to their well-being and the goodness of their lives (Strong, 1963)1. This perspective underscores that the state's role transcends mere governance; it carries a moral imperative to enhance the quality of life for all individuals within its jurisdiction. Aristotle's assertion aligns with contemporary views that emphasize the state's responsibility to fulfil moral obligations toward its citizens. Scholars like Chambliss (1954)2 argue that governments have a duty to provide essential services and create conditions that enable citizens to lead good lives. This includes ensuring access to education, healthcare, social security, and other basic necessities that contribute to personal development and societal cohesion.

Drawing from Aristotle's philosophy, the state in India is not merely an administrative entity but also a moral & constitutional institution with a fundamental obligation to enhance the quality of life for its citizens. The Directive Principles of the Indian constitution lay down the norms of ideal governance for people’s welfare. It implies that state has obligation to create an environment where citizens can have basic quality of life and he or she can pursue their aspirations, participate meaningfully in civic life, and contribute to the common good without impediments arising from poverty, discrimination, or lack of opportunities. In simple terms, this philosophy translates into the necessity of implementation of social welfare programs and formulation of policies which aims to address inequalities, promoting economic opportunity, and safeguarding the dignity of every individual. By investing in public services and social infrastructure, governments not only fulfill their ethical obligations but also foster a more equitable and prosperous society.

In view of that if we analyse the socio-economic conditions of general population then, poverty and income inequality remain pressing issues for the country. Approximately 22 per cent of the population lives below the national poverty line, equating to around 300 million people lacking sufficient resources for basic needs such as food, shelter, and healthcare. Despite economic growth, poverty persists, especially in rural areas where about 65 per cent of the population resides. The stark income inequality is evident from the data that the wealthiest 10 per cent holds 77 per cent of the nation's wealth, while the bottom 50 per cent control only 8.5 per cent. Unemployment and underemployment further exacerbate socio-economic vulnerabilities. As of 2022, India's unemployment rate was around 6.6 per cent, with youth unemployment significantly higher. 

Access to quality healthcare and education is another critical area where significant interventions from states are required. The lack of adequate health facilities often forces the general population to bear higher out-of-pocket expenditures. The National Family Health Survey (NFHS-5) reported an infant mortality rate of 32 per 1,000 live births in 2020-21, reflecting ongoing challenges in healthcare delivery, particularly in rural and underserved areas. Additionally, malnutrition remains a concern, with around 34 per cent of children under five being stunted and 17 per cent underweight. In education, the Gross Enrollment Ratio (GER) for higher education was about 27 per cent in 2022, indicating that many individuals remain excluded from advanced educational opportunities. Social welfare programs that enhance access to healthcare and education are crucial for addressing these disparities and promoting overall well-being. These figures highlight the urgent need for social welfare schemes to bridge the economic divide and promote a fairer distribution of resources.

Looking at the multifaceted challenges of poverty, inequality, health disparities, economic conditions, and regional underdevelopment welfare programs act as a crucial safety net in India. As a welfare state, Government at the centre as well as at the state has implemented several social welfare programmes for addressing the country's multifaceted socio-economic challenges. Social welfare programs are designed to alleviate poverty, reduce inequality, and enhance the overall quality of life for its citizens. These schemes are crucial for providing support to disadvantaged groups, improving living standards, and ensuring equitable access to resources and opportunities. If we look at the history of Social welfare programmes in India they have undergone significant changes in their nature, scale, objectives, and outcomes particularly in the last one decade. Now the nature and scale of social welfare programs have expanded significantly. Traditional welfare programs have been restructured to align with contemporary socio-economic realities, while new initiatives have been introduced to address emerging challenges. This transformation reflects a broader vision of inclusive growth, digital governance, and targeted interventions aimed at the socio-economic upliftment of the country's most vulnerable populations. This analysis delves into these aspects, evaluating how the Modi era has reshaped social welfare in India, backed by data and evidence.

The present social welfare programs in India utilize a variety of approaches to address socio-economic challenges, however they can be broadly divided into three major groups (i) The Universal Coverage Approach (ii) The Targeted Beneficiary Approach, and (iii) the Hybrid Approach. Depending on the nature of the problem and the goals of the program, policymakers formulate plans based on three distinct approaches. Each approach comes with its own set of advantages and disadvantages. The universal approach provides benefits to everyone, regardless of their income or situation. This method ensures that all individuals have access to support, which can reduce stigma since everyone is treated equally (Sen, 1999). For example, universal healthcare or education means that every citizen, rich or poor, can receive these services. This approach also simplifies the administration of programs because there’s no need to determine who is eligible or not, which can lower costs and reduces mistakes. However, this can be expensive and inefficient because it gives resources to everyone, including those who don’t necessarily need them.

In contrast, targeted programs focus on providing support to those who need it the most, such as low-income families or marginalized groups. This method can be more cost-effective and directly addresses the specific needs of vulnerable populations. For instance, a program that offers financial aid specifically to poor families can have a significant impact on reducing their hardships. However, targeted programs can be complicated to manage. They require careful identification of beneficiaries and can sometimes mistakenly exclude eligible people. Additionally, these programs can sometimes lead to feelings of stigma among those receiving assistance.

A hybrid approach, which combines both universal and targeted methods, may provide a balanced solution. Universal services, like basic healthcare and education, ensure that everyone’s fundamental needs are met. At the same time, targeted programs can offer additional help to those facing the greatest challenges. This combination can help promote fair development and reduce poverty more effectively.

Scope of the Paper

India has a long history of social welfare initiatives aimed at improving the socio-economic conditions of its diverse population. However, in the early decades of the post-independence era, social policy received very little attention for a long time, despite its prominence in the Constitution. In recent years, India has greatly expanded its social security programs, especially for the poor, elderly people, women, and children. The social welfare system has been strengthened by guaranteed rights to food and employment. Additionally, direct financial support for farmers and subsidized health insurance has further bolstered these efforts. These schemes aim to provide a safety net for the most vulnerable sections of society and promote inclusive growth. 

This article provides an overview of the major social welfare schemes implemented in India in the last decade, highlighting their objectives, scope, achievements, and challenges. It examines the effectiveness of these programs in promoting the social and economic development of Indian citizens. Understanding the impact of these social welfare schemes is essential to assess their success and identify areas for improvement. By evaluating the achievements and challenges of these programs, this paper aims to provide insights into how effectively they have contributed to the social and economic upliftment of the Indian population.

Analysing the outcome and challenges of  five Major Social Welfare programmes

Several flagship social welfare schemes have been launched in India over the past few decades, each targeting specific socio-economic challenges. This paper critically examines some of the most significant programs, including:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

• Pradhan Mantri Jan Dhan Yojana (PMJDY)

• Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

• Mid-day Meal Scheme (MDMS)

• Pradhan Mantri Ujjwala Yojana (PMUY)

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Enacted in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aims to provide a legal guarantee of at least 100 days of wage employment per year to rural households whose adult members volunteer for unskilled manual work. The act seeks to enhance livelihood security and reduce poverty in rural areas while creating durable assets through public infrastructure development. Additionally, MGNREGA strives to empower marginalised groups, especially women, by offering them valuable employment opportunities.

According to the Ministry of Rural Development, in the financial year 2023-24, MGNREGA provided employment to approximately 6 crore households, with an average of 52.09 days of work per household (Table 1). The program has created more than 116.05 crore person-days of work since its beginning. Millions of rural workers now have a safety net thanks to the Act, which also lessens their susceptibility to economic shocks and seasonal unemployment. For example, the average wage payout under the MGNREGA in 2022–2023 was ₹241 per day, which helped many rural families make ends meet. According to a National Council of Applied Economic Research (NCAER, 2012) study, in regions with strong MGNREGA adoption, the program reduced rural poverty by about 2.4 per cent.

Table 1: MGNREGA Scheme-At a Glance

MGNREGA has played a significant role in enhancing rural infrastructure. By 2022, the program had facilitated the creation of more than 6 million assets, such as rural roads, water conservation structures, and irrigation facilities, including the construction of over 350,000 kilometers of rural roads. Additionally, MGNREGA has contributed to the empowerment of women by providing them with economic opportunities, thereby enhancing their financial independence and decision-making power within their households. In the 2021-22 period, women made up approximately 55 per cent of the total workforce under the scheme. Overall, MGNREGA has notably increased women's participation in the workforce and has proven to be a crucial welfare program in this regard.

Major Concern

Research indicates that while MGNREGA has improved household incomes and reduced immediate financial distress, it has been limited by several critical factors. For example, despite the promise of 100 days of work, many households receive less than this amount. For example, data from the National Rural Employment Guarantee Act (NREGA) shows that in 2022-23, only about 40 per cent of households received the full 100 days of work. Delays in wage payments have also been reported, with some workers facing delays of up to six months. Similarly, several studies suggest that the program has not fully addressed the underlying structural causes of rural poverty. Firstly, the wage rates provided under MGNREGA have often been inadequate, failing to meet the basic needs of workers. According to a study by the Indian Institute of Management (IIM) Ahmedabad (2018)2, the wage rates under MGNREGA have frequently lagged behind inflation and local labor market rates, reducing the program’s effectiveness in significantly improving the economic conditions of rural households.

Secondly, the program's impact is constrained by the limited availability of alternative employment opportunities. MGNREGA primarily offers unskilled manual work, and the lack of diversification in job types restricts the potential for substantial income growth and long-term economic stability. A study by the National Bureau of Economic Research (NBER) highlights that while MGNREGA has provided temporary relief, it does not address broader economic issues such as the need for skilled employment opportunities and sustainable rural development (NBER, 2019).

Quality issues have been reported, with some projects lacking proper maintenance and resulting in suboptimal infrastructure. An audit by the Comptroller and Auditor General (CAG) in 2022 highlighted deficiencies in the quality and sustainability of some assets created under the scheme. Despite higher participation of women in employment generation, gender disparities persist in this scheme, with women often receiving lower wages and facing barriers to accessing benefits. A report by Oxfam India in 2023 found that women workers frequently face discrimination in wage payments and work conditions compared to their male counterparts.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Financial inclusion is widely recognized as a powerful tool for poverty alleviation and inclusive growth. Several renowned economists and academicians have underscored its benefits, drawing on their extensive research and experience. Basically, the provision of universal access to banking services, government is empowering the poor and marginalized sections of society. Muhammad Yunus (2007)3 is a pioneer of microfinance, having founded the Grameen Bank in Bangladesh. He has proved with his microfinance model that by giving the poor access to credit, they can become economically self-sufficient and contribute to the broader economy. In fact, in developing countries like India, financial inclusion is vital for inclusive development as it provides individuals with the means to improve their economic prospects and contribute to societal progress Joseph Stiglitz (2012)4 has highlighted how financial access can reduce inequality and promote inclusive economic growth. He points out that financial markets often fail the poor, leading to persistent inequality. 

In fact, financial inclusion is one of those measures which, ignite the process of ensuring access to appropriate financial products and services needed by all sections of society including vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream institutional players. Formal financial access also helps lift people out of poverty by enabling them to leverage their assets and engage in productive economic activities. De Soto highlights that when individuals have access to financial services, they can formalize their assets and use them as collateral for loans, which fosters entrepreneurship and economic growth.

According to the United Nations' 2006 report5 "Building Inclusive Financial Sectors for Development," commonly known as the Blue Book, a truly inclusive financial sector should offer credit to all eligible individuals and businesses, provide insurance to all insurable parties, and ensure access to savings and payment services for everyone. Unfortunately, in the case of India, a significant portion of the population remained outside the formal financial system. According to the World Bank's Global Findex Database 20116, nearly 41 per cent of Indian adults did not have a bank account. This lack of access to banking services hindered the ability of many individuals to save securely, obtain credit, or receive government benefits directly. There was a growing need to streamline government subsidies and welfare payments. Leakages and inefficiencies in the distribution of these benefits were significant concerns. A robust financial inclusion scheme was needed to address these issues by ensuring direct and transparent transfers to beneficiaries' bank accounts. Integrating the poor into formal banking and financial markets was essential for promoting inclusive growth, reducing poverty, and enhancing overall economic stability. The launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in the last decade is a one such strategic initiative that fulfills the long-standing issue of financial exclusion in India. It was launched in 2015 as a National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. Prior to the launch of PMJDY, a significant portion of India's population did not have access to formal banking services. 

Table 2: Pradhan Mantri Jan - Dhan Yojana

The seriousness of the government can be understand by the fact about 60,000 camps were organised simultaneously by all the banks across India on the day of the inauguration of the scheme on 28 august 2014. As a result 1.5 crore bank accounts were opened on the very first day of the scheme [7,8]. Now after 10 years of effort until July 23, 2024, 52.81 crore accounts have been opened under PMJDY scheme, including 35.15 crore in rural areas and 17.65 crore in urban areas. The data presented in Table 2 shows that Public Sector Banks (PSBs) is playing a central role in the PMJDY scheme, both in terms of the number of beneficiaries and the volume of deposits. PSBs have the highest number of beneficiaries in both rural/semi-urban and urban metro centers, with 25.80 crore in rural/semi-urban branches and 15.36 crore in urban metro branches. Regional Rural Banks also contribute significantly, particularly in rural areas, while Private Sector Banks and Rural Cooperative Banks have a more limited impact. The substantial presence of female beneficiaries across all banks underscores the importance of financial inclusion efforts for women. However, Private Sector Banks have 0.87 crore female beneficiaries, which is lower relative to the other bank types. Similarly, Rural Cooperative Banks have the fewest female beneficiaries (0.10 crore), reflecting their limited reach and impact among women. Therefore, to improve the outcomes of PMJDY, further focus should be done on expanding the reach of Private Sector and Rural Cooperative Banks, enhancing financial literacy, and addressing regional disparities could be beneficial.

The success of PMJDY has set the stage for further financial reforms and digital initiatives, contributing to India's broader goal of inclusive and sustainable growth. The PMJDY has enabled the Direct Benefit Transfer (DBT) scheme which ensures that subsidies and benefits are directly transferred to the beneficiaries' bank accounts, reducing leakage and ensuring that the intended recipients receive the funds. This has also incentivized individuals to open and maintain bank accounts. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly facilitated the growth and adoption of the Aadhaar-Enabled Payment System (AEPS) in India. This large number of newly opened accounts provided a solid foundation for the expansion of AEPS, which relies on having a broad base of bank account holders for its operations. This integration has enhanced the accessibility and security of financial transactions for millions of Indians, particularly in underserved areas of formal banking system.

Now the PMJDY account holders can also avail the benefit of Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY). PMJJBY is available to people in the age group of 18 to 50 years having a bank account who give their consent to join /enable auto-debit. The Beneficiary will get life cover of RS. 2 lakh for the period of one year. The premium of Rs. 436 per annum will be auto-debited in one installment from the subscriber’s bank account. 

Major Concern

Despite significant efforts to achieve financial inclusion in India, several challenges persist. According to the Reserve Bank of India's Report on Trend and Progress of Banking in India 2019-20, a significant portion of the rural population in India depends on informal sources of credit, such as moneylenders, who often charge exorbitant interest rates. The report highlights that formal credit access remains limited for many low-income households and small businesses, leading to reliance on these costly informal credit sources. As of 2020, only about 5 per cent of villages had a commercial bank branch. Another challenge is the limited digital literacy and high speed internet access in rural areas further constrain the use of digital financial services, with only 25% of rural households having internet access. 

While significant progress has been made, ongoing efforts are needed to address the challenges and ensure that the benefits of financial inclusion reach every corner of the country. Despite the high number of accounts opened, a significant proportion of these accounts remained dormant. This highlighted the need for sustained efforts to promote account usage and financial literacy. Additionally, many poor individuals lack financial literacy, preventing them from fully utilizing available financial services like savings, insurance, and credit. Though JAM trinity has played a crucial role, the digital divide, particularly in rural areas, posed challenges in accessing and utilizing digital banking services.  For instance, a 2019 survey by the Financial Inclusion Insights Program found that only 54% of adults were aware of mobile money services (Financial Inclusion Insights, 2019). Prevailing social norms and cultural practices is also impeding financial inclusion, particularly for women and marginalized communities. As per the World Bank's 2017 Global Findex report (World Bank, 2018)7, women are 8 per cent less likely to own a bank account than men. Furthermore, regulatory constraints and operational inefficiencies within financial institutions, such as stringent KYC requirements, pose significant barriers for the poor who may lack formal identification documents. PMJDY aimed to empower the poor and marginalized sections of society. But the inadequate banking infrastructure in rural and remote areas continued to be a challenge, affecting the delivery of banking services.

Addressing these issues requires targeted interventions, improved infrastructure, increased digital literacy, enhanced financial education, and regulatory reforms to ensure broader access and utilisation of financial services. For infrastructure, two things need to be done (i) Expand high speed internet connectivity and digital infrastructure in remote and rural areas to enable better access to online banking services. (ii) Invest in upgrading banking technology to ensure that banking services are more reliable, and accessible, and improving the safety of online transactions so that common citizens develop faith in banking connectivity. There is also a need to streamline the Know Your Customer (KYC) processes to make it easier for poor people without formal identification to open and maintain bank accounts. Government can also collaborate with non-governmental organisations (NGOs) and community-based organizations to reach out to marginalized and underserved communities. Another area which needs more attention is the reaching out to the unreached poor women who are out of the formal financial system. For that government can launch targeted outreach programs to ensure that women, who often face additional barriers to financial inclusion, are effectively included in PMJDY.

By addressing these key areas, the Pradhan Mantri Jan Dhan Yojana can be further improved to enhance its impact on financial inclusion and economic empowerment. Implementing these strategies will help ensure that more individuals, especially those from marginalized and low-income backgrounds, benefit from the financial services provided under PMJDY, leading to greater overall economic development and social inclusion in India.

Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

It is well known that India’s healthcare system has a very high level of out-of-pocket (OOP) expenditure. According to the National Health Accounts (NHA) report for 2018-19, OOP expenses account for around 62 per cent of overall health expenditure (NHFS, 2021)8. In fact the exhortative health care expenses push many families into debt, as most of the Indian population belongs to the middle class or lower socio-economic class and are without of any kind on medical insurance cover (Worldometer: India population (2022). Various studies have reported that significant financial burden frequently discourages people from getting even primary medical care, which can lead to catastrophic health spending. 

According to research published in The Lancet, around 63 million people fall into poverty each year as a result of high medical costs (The Lancet, 2019)9. Hence, if government provides a comprehensive insurance coverage that would certainly helps common citizens to absorb their out of pocket expenditures by reducing or eliminating the need for individuals to pay large sums out of their own pockets. In September 2018, the government of India introduced the 'Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)', a large-scale insurance policy, to alleviate healthcare inequalities. AB-PMJAY aims to safeguard around 100 million low-income families (about 500 million persons) by providing coverage of up to ₹5 lakh (about $6,000) per family each year for secondary and tertiary hospitalization. This ambitious program intends to ease the financial burden of health-care costs, lowering out-of-pocket payments and improving access to quality healthcare services.

Table 3: Achievements of Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana

After five years of implementation, the most significant impact of AB-PMJAY has been that it has been able to provide insurance coverage to a large segment of the population that was previously deprived. A quick analysis of the National Health Authority (NHA) website indicates that, by July 2024, the Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana has achieved significant milestones as reflected in Table 3. A total of 34,85,72,228 Ayushman cards have been created, providing a broad reach and accessibility to the scheme. Additionally, 6,86,17,508 authorized hospital admissions indicate substantial utilisation, benefiting millions of individuals who received medical treatment. Furthermore, 17,040 hospitals have been empanelled, establishing a vast network of healthcare providers to support the scheme's implementation. Most importantly 13,245 are private hospitals. The impact of the scheme has been most pronounced in rural and semi-urban areas, where healthcare infrastructure is often poor. In addition, the system has been linked to an increase in hospitalisations and treatments that were previously out of reach for many low-income families.

In terms of impact, AB-PMJAY has contributed to a reduction in catastrophic health expenditures for many families, as evidenced by data indicating a decline in out-of-pocket expenses for covered treatments. A study published in the Lancet in 2022 reported that AB-PMJAY has reduced out-of-pocket expenditure for hospitalized patients by approximately 20%. The National Sample Survey (NSS) data indicates a decline in catastrophic health expenditure among households covered by the scheme. The scheme has also stimulated improvements in the healthcare infrastructure and service delivery in some regions, as hospitals and healthcare providers invest in upgrading facilities to meet the scheme's requirements.

Although the government has achieved great progress through this scheme, AB-PMJAY has encountered numerous hurdles and critics. One important issue has been the variable quality of services provided in different regions and facilities. While the plan aspires to deliver high-quality care, reports have revealed variations in the quality of treatment provided by different empanelled hospitals. Similarly, the reduction in financial burden is not uniform across all regions and states. States with better healthcare infrastructure have seen more significant benefits, while others lag due to implementation challenges. There have also been worries regarding false claims and the misuse of insurance coverage, which jeopardize the scheme's financial viability and effectiveness. The Comptroller and Auditor General of India has expressed concern about the scheme's monitoring and auditing processes, citing instances of inflated or fraudulent claims.

Another challenge has been the inadequate awareness and understanding of the scheme among the target population. Despite extensive outreach efforts, many eligible beneficiaries remain unaware of their entitlements under AB-PMJAY, leading to underutilization of the provided services. A 2021 study by the Centre for Policy Research (CPR, 2021)10 found that only about 40 per cent of eligible families were aware of their entitlement under AB-PMJAY. This issue is compounded by the logistical difficulties in navigating the healthcare system and accessing empanelled facilities, particularly in remote areas. 

In summary, while Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana has made notable progress in enhancing healthcare access and providing financial protection to millions of low-income families, it faces ongoing challenges related to service quality, fraud, and beneficiary awareness. Addressing these issues will be crucial for maximizing the scheme’s effectiveness and ensuring that it meets its objectives of equitable healthcare delivery and financial risk protection.

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

In December 2018, the Government of India launched the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) program to address the financial difficulties faced daily by small and marginal farmers. PM Kisan is a Central Sector scheme with 100% funding from Government of India. The scheme aims to provide ₹6,000 per year directly to farmers as income support to enhance financial stability and mitigate the effects of income variability and agricultural uncertainty. By increasing purchasing power, the government intends to facilitate investment in agricultural supplies and boost overall farm output, thereby alleviating farmer distress. The program seeks to reduce poverty, support rural livelihoods, and help farmers better manage their family and agricultural expenses through targeted financial aid.As of 2024, PM-KISAN has reached over 11.7 crore beneficiaries. The scheme's expenditure has crossed ₹2.8 lakh crore, according to data from the Ministry of Agriculture & Farmers' Welfare. The program has successfully covered a large number of small and marginal farmers, providing them with crucial financial support. The scheme has also been extended to cover farmers in both urban and rural areas. The implementation of PM-KISAN has been facilitated through the Direct Benefit Transfer (DBT) system, and over 95 per cent of the funds were transferred directly to beneficiaries' accounts by 2024. Basically, the use of DBT has streamlined fund distribution and reduced leakage. The integration with Aadhaar and land records has improved the accuracy of beneficiary identification. The scheme has also catalyzed moderate improvements in agricultural productivity due to increased investments in inputs like seeds and fertilizers. Research by the Indian Council of Agricultural Research (ICAR)11 in 2022 suggested that PM-KISAN has led to moderate improvements in agricultural productivity due to increased investments in inputs like seeds and fertilizers.

Major Concern

Despite its broad coverage, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) program faces several challenges. Some eligible farmers do not receive benefits due to problems with data management and verification. Many states have not yet digitized their land ownership records, causing discrepancies. A 2023 study by the Centre for Economic Studies and Planning (CESP) found that about 5 per cent of eligible farmers were left out because of issues with land records. Another concerned raised by its report that while the scheme has provided temporary relief to the farmers, it has not substantially addressed deeper issues such as low crop prices and high production costs, which continue to impact farm profitability. There are also issues with delays in payments and problems linking bank accounts. A 2023 audit by the Comptroller and Auditor General (CAG) revealed irregularities in the disbursement process, including cases where funds were wrongly diverted to ineligible recipients. These issues need to be addressed to improve the scheme's effectiveness and ensure it reaches the intended beneficiaries.

Mid-Day Meal Scheme 

The Mid-Day-Meal Scheme, also known as the National Programme of Nutritional Support to Primary Education (NP-NSPE), was introduced on August 15, 1995, with the dual goals of enhancing the nutritional status of students in classes VI– VIII and I–V and advancing the universalization of elementary education by increasing enrollment, retention, and attendance. In spite of this, India was dealing with shockingly high rates of childhood malnutrition in the early 2000s. The National Family Health Survey (NFHS-3), which was carried out in 2005–06, found that 48 per cent of children under five had stunting and 42.5 per cent were underweight. Children from low-income households and those living in rural regions were more likely to suffer from malnutrition. India was having difficulty lowering dropout rates with notable differences and achieving universal enrollment. At the same time, there were notable differences between urban and rural locations as well as between various socioeconomic categories in India, making it difficult to achieve universal enrollment and lower dropout rates. In a landmark 2001 decision, the Indian Supreme Court mandated that all state governments introduce the Mid-Day Meal Scheme in primary schools as a means of combating hunger in the classroom and improving academic achievement. Thus, on, the Government of India introduced the MDMS, which it called the "National Programme of Nutritional Support to Primary Education (NP-NSPE)." In 2008, the program was expanded to include upper primary kids (classes VI–VIII) in addition to the children enrolled in primary schools (classes I–V).

Now the MDMS scheme is known as PM POSHAN (POshan SHAkti Nirman) Scheme and as of 2024, the MDMS has been one of the world's largest school feeding programs, covering over 120 million children in more than 1.08 million schools across India. The table depicts the coverage of children and institutions under the Mid-Day Meal Scheme over the past five years. The number of beneficiaries, representing children, remained same, with slight fluctuations from 12.33 crore in 2017-18 to 12.21 crore in both 2021-22 and 2022-23. Despite the fact that, this stability indicates a consistent reach of the program in terms of the number of children served. However, the number of institutions participating in the scheme experienced a gradual decline. Starting at 11.34 lakh institutions in 2017-18, this number decreased to 10.84 lakh by 2021-22 and remained at that level in 2022-23. This reduction in the number of institutions may suggest challenges in maintaining or expanding the infrastructure required for meal distribution. Overall, while the coverage of children remained stable, the decreasing number of participating institutions could affect the scheme's efficiency and reach.

Table 4: Coverage of children and institutions during last 5 years

The scheme is implemented by the Ministry of Education in collaboration with state governments and Union Territories. As per the scheme guidelines, the MDMS is providing cooked meals with a minimum calorific value of 450 calories and 12 grams of protein for primary students, and 700 calories and 20 grams of protein for upper primary students. Officially, the meals are required to include essential nutrients through a combination of cereals, pulses, vegetables, and oil.

If we analyse the outcome of MDMS in entirety, various studies have shown a significant increase in school enrollment and attendance rates. For example, a study by Dreze and Goyal (2003) found that the introduction of mid-day meals in rural areas led to a 30 per cent increase in attendance among girls. Kaur (2021)12, in her study find that the MDMS system has improved children's nutritional standards and had a favorable, significant influence on both gross and net primary school enrollment in India. According to her analysis, the mid-day meal program had an almost twice as large an influence on girls' primary school enrollment as it did on boys, indicating that the program may have helped close the gender gap in school participation. According to the Ministry of Education, the MDMS has helped reduce undernutrition by providing balanced meals that include proteins, carbohydrates, vitamins, and minerals. The provision of meals has been instrumental in reducing dropout rates, particularly among children from economically weaker sections. 

The Annual Status of Education Report (ASER) 2019 highlighted that mid-day meals have been a key factor in retaining children in schools. The MDMS has played a crucial role in promoting social equity. By eating together, children from different social backgrounds have shown improved social integration and reduced caste-based discrimination. One advantage of this system is that it gets consistent funding from the Government of India and is not reliant on any outside agencies. As such, there is little chance of the scheme being discontinued and it is not vulnerable to cash flow problems or outside shocks.

Major Concern 

Understanding the importance of this scheme, since last many years Government of India is spending about Rs. 10 thousand crores annually on this programme. In fact, the latest 2023-2024 budget of the central government has allocated about Rs. 12,467 for this programme. Therefore, it becomes imperative that a comprehensive evaluation of the programme has to be undertaken to judge its efficacy.  

Despite its successes, the MDMS faces several challenges and limitations. There have been numerous reports of poor food quality and hygiene standards, leading to health issues among children. For instance, in Bihar (2013), over 20 children died due to food poisoning from contaminated mid-day meals. In some regions, the coverage of the scheme is not comprehensive, and the meals provided often lack dietary diversity, limiting their nutritional benefits. The study conducted by IIM, Ahmedabad (2007)13 in Gujarat indicates that in terms of calorific and nutritive intake, proportionate amounts of protein and iodine are not being provided through the meals. Many schools lack adequate infrastructure such as proper kitchens, clean drinking water, and storage facilities, which hampers the effective implementation of the scheme. Instances of mismanagement and corruption have been reported, where funds meant for the scheme has been misappropriated, affecting the quality and consistency of meal provision.

To ensure the Mid-Day Meal Scheme is effective, it is important to conduct regular checks and audits to maintain meal quality and safety, following guidelines set by the Food Safety and Standards Authority of India (FSSAI). Tackling corruption and mismanagement is crucial, and this can be achieved by using technology to track funding and meal distribution. The scheme should also improve the nutritional value of meals by diversifying the menu with locally available nutritious foods and getting regular input from nutritionists. Training programs for cooks and school staff on hygiene, nutritional standards, and food safety will help improve the quality and safety of the meals.

Pradhan Mantri Ujjwala Yojana (PMUY) 

According to the World Health Organization (WHO, 2018)14 estimate, over 1.5 million deaths annually are attributed to indoor air pollution caused by the use of traditional cooking fuels. If we talk about India in 2011 census, almost 70 per cent of Indian population was using traditional cooking methods, which rely on biomass fuels like wood, coal, and dung cakes, contribute significantly to indoor air pollution in their houses (Census 2011). Use of traditional cooking fuels, especially fossil fuels is linked to various health problems, including respiratory and cardiovascular diseases, particularly affecting women and children who spend more time near cooking stoves. Every successive government has tried to increase the availability and use of cleaner fuel LPG through different program and scheme. However, a large section of Society especially the poor and rural landless peasant workers have lagged behind in the economic and social development. They could not afford to have the cleaner fuel Liquefied Petroleum Gas (LPG) and the Piped Natural Gas (PNG). 

It is evident from the various reports that India needed a great push to direct households towards use of cleaner fuel, in 2016 Central Government decided to provide cleaner fuel to poor households and the idea of Pradhan Mantri Ujjwala Yojana (PMUY) was evolved. The primary objective of PMUY is to provide Liquefied Petroleum Gas (LPG) connections to households without access to clean cooking fuel. As of March 2024, PMUY has successfully provided over 10.33 crore LPG connections, a significant achievement considering the scheme's target to cover 8 crore BPL households. The scheme aims to reduce health hazards associated with traditional cooking methods like biomass stoves. Studies have shown that indoor air pollution from such methods is linked to respiratory diseases, particularly among women and children.

The scheme primarily targets women from below-poverty-line (BPL) households. By providing LPG connections, PMUY empowers women by reducing the time and effort spent on collecting and preparing traditional fuels, thus allowing them more time for productive activities and improving their overall quality of life (UN Women, 2020)15. Use of LPG also supports environmental sustainability, because the use of biomass fuels often leads to deforestation as families collect wood and other materials for cooking. By promoting LPG, PMUY helps reduce the reliance on biomass fuels, thereby contributing to environmental sustainability and reducing deforestation. LPG is also more efficient and convenient compared to traditional fuels. It provides a consistent and reliable source of energy for cooking, which improves overall efficiency in the kitchen and reduces the time required for meal preparation. Studies have shown that households using LPG find it more convenient and efficient compared to traditional cooking methods, leading to increased satisfaction and better quality of life.

Major Concerns

Despite the large number of connections provided, issues remain regarding the actual utilization of LPG connections. A survey by the National Family Health Survey (NFHS-5)16 in 2020-21 indicated that approximately 20% of households reported not using their LPG connections regularly, often due to issues such as high refilling costs or inadequate infrastructure (NFHS-5, 2021). The scheme has faced criticism for not fully addressing the financial burden on beneficiaries. While PMUY provides an initial free connection, the recurring cost of refilling LPG cylinders can be prohibitive for low-income households. According to a 2022 report by the Comptroller and Auditor General (CAG), the average cost of an LPG refill was around ₹900, which poses a significant financial strain for many beneficiaries (CAG Report, 2022)17 In FY 2023-24, the per capita consumption of PMUY beneficiaries (in terms of no. of 14.2 kg LPG cylinders taken per year) has increased to 3.95 (FY 2023-24) from 3.01 (FY 2019-20).18 Apart from that some implementation issues such as inadequate delivery infrastructure and inefficient supply chains have also been noted. In remote and rural areas, the availability of LPG and refilling services can be inconsistent, affecting the scheme's effectiveness.

Conclusion

A detailed examination of India’s few social welfare schemes, including the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Jan Dhan Yojana (PMJDY), Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), and Mid-Day Meal Scheme (MDMS) reveals that they have made significant progress in tackling the country’s socio-economic challenges. Nevertheless, these programs also encounter various challenges and offer numerous opportunities for improvement.

One of the primary challenges across these schemes is implementation and access. For instance, while MGNREGA guarantees 100 days of employment to rural households, issues like delayed payments and lack of awareness hinder its effectiveness. Similarly, PMJDY, which aims to provide universal access to banking facilities, faces obstacles like inadequate banking infrastructure in rural areas, making it difficult for beneficiaries to access financial services. AB-PMJAY, although a game-changer in providing health insurance to the poor, struggles with infrastructure inadequacies and insufficient hospital networks in remote regions.

Mismanagement and corruption are also major issues. Programs like PM-KISAN, which offers farmers income support, may become less successful due to misallocation of resources and fund leakage. Ensuring transparency and accountability through robust monitoring mechanisms is crucial to overcoming these issues. The MDMS, aimed at enhancing child nutrition and education, also faces challenges related to food quality and hygiene, requiring stringent oversight and regular audits. On the other hand, these schemes offer substantial opportunities for socio-economic upliftment. MGNREGA can potentially drive rural development through infrastructure projects while providing financial stability to rural households. PMJDY can foster financial inclusion, empowering individuals through access to credit, savings, and insurance. AB-PMJAY can significantly reduces out-of-pocket healthcare expenses, improving health outcomes for millions.

PM-KISAN supports the agricultural sector by providing a steady income to farmers, enabling them to invest in better farming practices. The MDMS can improve educational outcomes and health by addressing classroom hunger. PMAY, which aims to provide affordable housing, can significantly improve living conditions and contribute to urban development. Furthermore, integrating technology into these schemes can enhance their efficiency. Digital platforms for fund transfers, biometric authentication for beneficiary identification, and mobile applications for grievance redressal can reduce corruption and ensure the timely delivery of benefits. Public-private partnerships can also be vital in scaling these programs, bringing expertise, efficiency, and additional resources.

In conclusion, while India’s social welfare schemes face several implementation challenges, they also present immense opportunities to promote inclusive growth and improve the quality of life for its citizens. Addressing the challenges through improved infrastructure, transparency, and technological integration can maximize the impact of these schemes, fostering a more equitable and prosperous society.

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