The apex court has cast its imprimatur on the government's policy of mandating 25 per cent reservation for children from the weaker sections of society to be educated free in private schools (except those run by minority religious institutions). With this, the issue of targeted subsidy has assumed importance like never before.

That these schools are going to be compensated, albeit partially, for their contribution to a pressing societal cause makes the issue amenable to examination from the subsidy angle as well.

It is well-known that parents belonging to the weaker sections pine to give their children the best shot when it comes to education, and therefore have lapped up this opportunity as a godsend, unmindful of the chicanery practised by some schools in extracting a lumpsum in cash on one pretext or the other from parents.

Passing the buck

By seeking to enforce the right to education by enlisting the cooperation of private schools, the government has tacitly conceded that it is not equal to the gigantic task, both in terms of resources and teaching infrastructure.

Justice K.S. Radhakrishnan in his dissenting judgement has, however, chosen to view the issue in a different light — the government has passed the buck to private schools. There is considerable truth in his views.

Scandinavian countries have perfected the art of diverting funds from defence to education. This is not to suggest that we should slash our defence budget and use the resultant savings to impart free education.

The broad point is, given the will, the government can always find the resources. Also, let not the government suffer from an inferiority complex — its Kendriya Vidyalaya schools have been the toast and envy of students even from the well-off segments.

There is another vital issue. Cross-subsidies often raise the hackles of economists and those done in by it. In India, petrol consumers subsidise diesel consumers, though some of the diesel consumers driving swanky cars do not deserve any subsidy.

By foisting some of the state's responsibility on private schools, the government has instituted another avenue for cross-subsidy — parents not belonging to the weaker segment have to bear the cross.

Kirana store model

If the government has transferred responsibility to the private sector in education, a fortiori , it also ought to put its faith in the private food trade when it comes to food subsidy.

Curiously, the Food Security Bill before Parliament is all about government bureaucracy and government departments, with implications of administrative expenses overshooting the operational expenses.

To be sure, food coupons are not the panacea to the vexed problem of targeted subsidy, but it is infinitely better than a PDS system that leaks like a sieve.

Warts and all, the coupon system at least ensures a minimal role for bureaucracy and completely does away with state procurement, besides doing away with the problem of food rotting in the open, exposed to the elements.

If students can be redirected, as it were, to private schools, the poor should be called upon to go to a kirana store in the vicinity, armed with food coupons given by the government.

In fact, the initiative on the education front needs to be emulated across sectors — food, health and defence personnel; kirana store has been used more in a metaphorical sense herein.

The crippling burden on government hospitals can be managed to a great extent through health coupons a la an insurance policy that is the open sesame for entry into cleaner and more effective, albeit infinitely more expensive, private hospitals.

Defence canteens

The amount that the government must be spending on defence canteens has not been quantified, much less questioned, but the truth is there are a lot of leakages, both through administrative sloth and consumer avarice.

There are credible reports that the generous supply of liquor and huge subsidies not only lulls our soldiers but, more importantly, finds its way into private trade in a spirit of mutual back-scratching.

To be sure, our soldiers and defence personnel need to be treated fairly. The answer lies in giving them ‘provision' allowance along with their salary, and not run a white elephant like the defence canteen. Of course, such allowance would not be sufficient to buy cars (!) as is being done — which too, more often than not, find their way into civilian hands.

The Finance Minister has gone on record saying that the issue of subsidy gives him sleepless nights. Let him start with attacking the huge administrative expenses involved in implementing some of the subsidies. Government need not be omnipresent.

(The author is a New Delhi-based chartered accountant.)