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As India anticipates its new budget announcement, there is a heightened sense of expectation, especially within the Government & Public Services (G&PS) sector. This sector faces critical challenges, including outdated infrastructure, bureaucratic inefficiencies, and slow digital adoption which the upcoming budget presents a vital opportunity to address these issues.
The G&PS sector struggles with outdated infrastructure across healthcare, education, and transportation. Poor infrastructure hinders service delivery and affects quality of life. According to NITI, rural healthcare centres often lack essential medical equipment, and many schools in remote areas operate without adequate classrooms or sanitation facilities. This urban-rural infrastructure disparity is a significant barrier to equitable service delivery.
A 2023 World Bank report highlighted that obtaining permits for small businesses in India can take up to 90 days, discouraging entrepreneurship and stifling economic growth. Simplifying administrative processes and reducing unnecessary paperwork are crucial for timely and efficient public service delivery. While efforts have been made to digitize public services, progress has been uneven, particularly in rural areas where reliable internet access is limited. A comprehensive digital strategy is essential to ensure public services are accessible, efficient, and transparent which can be leveraged through various E-governance platforms.
A substantial increase in budget allocation for infrastructure development is critical. This includes building new facilities, upgrading existing ones, and ensuring regular maintenance. Special attention should be given to rural areas to bridge the urban-rural divide. The Economic Survey 2023 suggested that investing in modern healthcare centres and schools in remote regions could significantly enhance residents' quality of life.
The budget should allocate funds for administrative reforms aimed at reducing bureaucratic inefficiencies. Implementing e-governance solutions and simplifying procedures can make public services more accessible and user-friendly. For example, introducing a single-window clearance system for business permits can streamline the process, encouraging entrepreneurship and boosting economic growth. The 2023 Ease of Doing Business index reported that simplifying permit processes could reduce business startup times by 50%.
Expanding internet connectivity to rural areas and providing digital literacy programs to empower citizens becomes critical. Establishing digital service centres in rural areas can facilitate access to government services, bridging the digital divide and promoting inclusive growth. The 2023 Budget highlighted the importance of Digital India initiatives, but further investments are needed to realize their full potential.
The budget should prioritize healthcare and education, as these are fundamental to the population's well-being and development. Increasing the healthcare budget can enable the procurement of advanced medical equipment and the hiring of additional healthcare professionals, ensuring better healthcare outcomes for all. The National Health Profile 2022 indicated a need for a 20% increase in healthcare spending to meet WHO standards.
Encouraging public-private partnerships (PPPs) can bring additional resources and expertise to the G&PS sector. The budget should include incentives for private entities to collaborate with the government in areas such as infrastructure development, healthcare, and education. The 2022 PPP Monitor report indicated that such collaborations have already resulted in significant improvements in urban infrastructure.
The 2023 Climate Action report emphasized the need for a 25% increase in funding for sustainable projects to meet national targets. Investing in green technologies, renewable energy, and sustainable practices can ensure that public services contribute to environmental conservation and long-term resilience. The budget can include provisions for developing solar energy projects and promoting sustainable agricultural practices, reducing the environmental impact of public services and promoting a greener future.
Reviewing past budget trends, there has been a steady increase in allocations for rural development and digital infrastructure. The 2021 Budget saw a 34.5% increase in capital expenditure, primarily aimed at infrastructure development. The 2022 Budget emphasized healthcare, with a 137% increase in health and well-being allocation. Each budget has progressively focused more on digital integration and sustainability, reflecting the changing priorities of the government in response to evolving challenges.
The forthcoming budget presents a unique opportunity to address the pressing challenges by focusing on infrastructure development, streamlining bureaucratic processes, promoting digital integration, enhancing healthcare and education, strengthening public-private partnerships, and prioritizing sustainability, the government can create a more efficient, equitable, and resilient G&PS sector. These measures will not only improve service delivery but also enhance the overall quality of life for the public, paving the way for a brighter and more prosperous future for India.
This article first appeared in The Economic Times on 20 July 2024.
