The Hindu Business Line : Ring fencing the cess

THE INSTITUTIONAL ARRANGEMENT for ensuring complete utilisation of the cess on Central taxes towards programmes on primary education is, prima facie, at odds with the Government's commitment towards enhanced outlays for this sector. While the Government is expected to collect nearly Rs 5,000 crore from the cess, the actual outlay on primary education for 2004-05 is only marginally higher by Rs 533 crore over the revised estimates for the previous year. The Government may contend that it would have fulfilled its commitment as long as the actual expenditure is higher than the sum collected as cess. But such an argument would be politically disastrous for the ruling alliance after claiming that it would pursue more `pro-people' policies than the predecessor NDA Government and then do only marginally better than it in the allocation of funds for primary education. After all, nothing can redound to its credentials better in this regard than a commitment to a sharp hike in educational outlays.

Not only that, the UPA's Common Minimum Programme has pledged to raise public spending on education to at least 6 per cent of GDP and that half of it would be spent on primary and secondary education. Though the CMP did not indicate a break-up between primary and secondary education, a massive hike in spending on the former was implicit in the assertion considering that the composite target of 3 per cent of GDP could total to Rs 75,000 crore against the current outlay of a less than Rs 8,000 crore on education as a whole, suggesting a huge gap to be filled. Of course all may be well if the National Commission on Education, that the Finance Minister has promised, is able to quickly review the existing programmes and their achievements and then come up with modifications and plug in additional outlays to meet enhanced targets. But this seems a tall order considering the challenges ahead. The elements of an outreach programme on primary education are well researched and it is difficult to see what a new expert committee can come up with.

The problems have been in implementation with complaints of leakages, especially the noon-meal component. Any programme of intervention of such a massive nature must necessarily involve the State administrations not all of which are known for efficient delivery of public goods. However well intentioned the new Government, it may be hard pressed to meet fiscal targets on this score. The tax-paying public might have been reassured about the Government's commitment to enhance spending were the collections to go into a non-lapsable accounting arrangement, a la the road development cess. In the Budget speech, the Finance Minister said that in his scheme of things no issue enjoys a higher priority than providing basic education to all and if primary education and the nutritious cooked meal scheme can work hand-in-hand, there will be a new dawn for the poor children of India. People would surely hope the poor children are vouchsafed such a future even it were to be delayed for administrative reasons.

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