MY Parliament Budget Session

MY Parliament Budget Session 2016 Summary and Recommendations 12th - 13th March New Delhi

Background Need for Participatory Budgeting Citizen participation in governance is important in developing countries like India to improve the performance and accountability of government institutions and social justice. Central to this idea is the process of participatory budgeting, as it can influence the government even when they do not embrace direct involvement of citizens in decision-making. It is all the more crucial as budget forms the core of development. Participatory Budgeting in Indian Context India s score of 68 out of 100 on the 2012 Open Budget Index confirms that a substantial amount of budget information is published by the government. However, the Open Budget Survey for India also finds that overall, opportunities for public participation in the budget process as weak. There has been substantial evidence [1] that when the citizens have access to budget information and a platform for participation in the budgetary process, their engagement can create long lasting partnership in service delivery as both stakeholders are involved in a democratic way. The Indian experience of participatory budgeting has been limited to a few major metropolitan cities, for example, Pune (The Pune Experiment)[2], which established a model for transparent and accountable urban local bodies by the means of people s participation in budget-making process, which involved series of training workshops and awareness campaign. MY Parliament Initiative to Strengthen People s Participation in Democracy MY Parliament is a civic engagement platform established for the youth to enter governance and public policy space with an objective of strengthening participatory democracy. Taking inspiration from the Indian Experiment, MY Parliament facilitated and curated training workshops and a budgetary awareness campaign followed by an intensive 2 days discussion around Union Budget 2016-17. Union Budget: Awareness Campaign and Training Workshop A series of workshops, training sessions, discussions as a part of a month-long awareness campaign were conducted in partnership with civil society organisations and academia with the following objectives: Spreading awareness and providing access to information about the proposed Union Budget (2016-17) through a non-partisan channel. Decoding the budgetary terms for a comprehensive understanding by the ordinary people through visuals, graphical illustrations Engaging our partner civil-society organizations like PRS-Legislative, Center for Budget and Governance Accountability to disseminate information about various aspects of budget, the spending trends of the government and invoking discussions around allocations of the budget to various sectors. 1.http://www.internationalbudget.org/data-evidence/case-studies/ 2.https://developmentcentral.wordpress.com/2013/07/02/participatory-budgeting-in-india-the-pune-experiment/ 1

Applications from youth for involvement in Participatory Budgeting With the help of technology, the campaign was spread across the length and breadth of the country. An online application form was floated for youth to send in their suggestions and expectations from the Union Budget. After receiving over 800 applications from more than 22 states, the participants were short-listed on multiple criteria including the merit, diversity of background and their understanding of issues related to public policy. The selected candidates were further groomed and imbibed with the required skills with the help of our knowledge partners. Simulation of Budget Session of Parliament A two day simulation of Budget Session of Indian Parliament was called upon in New Delhi where more than 200 young minds engaged in the discussions around Union Budget in a parliamentary style. Discussions centered around allocations to various sectors and demand of grants with respect to the Union Budget 2016-17. Keeping in view the focus areas of Union Budget 2016-17, various standing committees such as Ministry of Agriculture, Ministry of Corporate Affairs, Ministry of Women and Child Development, Ministry of Human Resource Development and Ministry of Rural Affairs were formed to specifically look into the demands of grants and allocation provisions towards these sectors. A similar session was conducted around the Union Budget 2015-16 at Indian Institute of Management, Lucknow which was acknowledged by World Bank as one of the most unique Budget Literacy and Participatory initiatives. World Bank in its Illustrative Budget Literacy Practices Case Study quoted. The MY Parliament project links knowledge of budgetary issues with leadership and public policy training. This contributes to making the project attractive to young people and is an interesting aspect to pursue in order to raise the profile of budget-related initiatives. About the Report After having a general discussion on various aspects of the budget, the participants were divided into groups of various standing committees to examine the allocations for the specific ministries closely and provide recommendations related to specific allocations and schemes. This is a consolidated report that includes major take-aways and recommendations discussed during the MY Parliament 2016 Session by the youth representing diverse sections of the society. 2

General Discussion on the budget The simulation began with presentation of the Union Budget 2016-17 by the Finance Minister at Model Youth Parliament. In his speech, he addressed various areas ranging from the stability of the Indian economy during global recession to schemes being launched to tackle the situation of drought being faced in more than 11 states of the country. This was followed by the rebuttal of shadow Finance Minister wherein he pointed towards the farmer suicides, disguised unemployment in agriculture and increment in indirect taxes through incidence of cess and surcharges. The discussion was then set open for the entire house and participants at MY Parliament discussed issues concerning various sectors in the union budget. Education Sector: Members appreciated setting up of new Navodaya Vidyalayas and the step to forge alliances with foreign universities. However, it was felt that training of teachers and allocation of funds to higher education needs more attention. Agriculture/Rural: Minister of Rural Development brought up several pertinent issues on the floor of the house as he talked about modifying MNREGA and it s dovetailing with Pradhan Mantri Gram Sadak Yojana (PMGSY) for rural road construction that will improve rural connectivity. The house also acknowledged and appreciated the skill development certification program and setting up of 1500 multi training skill development centres across the country. Shadow Ministry of Rural Development brought into notice the insufficient funding towards Pradhaan Mantri Gram Sadak Yojna. He cited the example of Chhattisgarh state government that has to take loan for road construction despite the availability of funds under the scheme. Health Sector: Members praised the government s efforts towards launching of 300 new medical stores and Pradhan Mantri Swasthya Suraksha Yojana to establish new AIIMS and upgrade the existing state hospitals. Also, it was suggested to effectively implement National Dialysis Program as 1.5 lakh patients are admitted every year and to ensure the expensive devices are not smuggled. Even though the house appreciated the attempt to introduce a measure for helping the patients undergoing dialysis but several members questioned the ignorance towards other critical problems and areas such as the status of CT scans, X-rays etc. and the money that goes into it hence, questioning the prioritization for dialysis. The shadow minister also suggested computerization for the stocking of drugs. Three hours of simulated Lok Sabha Session saw various issues being debated and suggestions presented. Participated by 200 members from all over the country, the discussion had both the state and national viewpoints. This was followed by zerohour discussion on issues of national importance and Department related standing committee meetings to discuss the demands of grants of specific ministries. 3

Ministry of Corporate Affairs DRSC Recommendations Recommendations: 1)The current policy proposes that the profits earned by the start-ups be exempt from payment of Income Tax during the first three years of their operation. It was argued that it is impossible for the start-ups to earn profit in initial three years of their set-up. Every start-up should get the option of selecting the period when the 3year tax exemption should apply; preferably, the time when they start earning profits. Following this, the committee also recommended that tax should only be levied for start-ups when their revenue is more than 5 crores. 2) Fast tracking the National Competition Policy which has been pending since 2011. As per the committee this draft policy can solve many problems and avoid major litigations. 3) The Companies Act should have the provision of Ethical committees& audits along with whistle blower to ensure the authenticity of audits. 4) The current process of liquidation of a company by a promoter may take up to 1000 days which is a big roadblock towards promoting entrepreneurship. Liquidation and exit processes for the companies should thus be less complex, similar to the standards followed in Hong Kong and Singapore. 5) Committee proposes setting up of a e-governance platform where the startups can come together and collaborate with each other and the government. Ministry of Human Resources Development Recommendations 1) The allocation should be restored to the previous year s levels for all schemes related to enhancing female literacy such as PRAGATI, UDAAN, Swami Vivekananda scholarship etc. In the current budget no allocation has been made for the same. 2)An appropriate quantum of funds should be allocated for creating a Career Counselling Agency, which would provide guidance to school and college students for selecting appropriate career paths. This would also help in aligning school and higher education. 3) The government should provide incentives to the industry to promote the system of apprenticeship and internships for university students. 4) Budgetary allocation should be made towards organizing Inter-university exchange programs. This would promote cross- learning among various disciplines as well as cultures. 5) Poor faculty- student ratio ails most of the universities of India. Appropriate budgetary allocation should be made for the appointment of faculties for vacant positions in Central Universities. 6) 10% increment in the allocation towards Sarva Shiksha Abhiyan to improve the infrastructure of the existing schools. 7) 5% increment in the allocation towards Rashtriya Madhyamik Shiksha Abhiyaan to promote vocational training in Senior Secondary Schools. 4

8) 50% increment in the allocations for Madrasas and other educational initiatives for Religious Minorities, in line with NITI Aayog s recommendations. 9) 20% increment in the allocation towards Colleges & Universities in the fields of Liberal Arts and Humanities. 10) In order to implement the committee s recommendations, it is also proposed that the HRD ministry s allocation be increased to 6% of the total budget. Ministry of Agriculture Recommendations 1) Looking at the water crisis that the country faces today, water conservation and management should be made the top priority of the government. Water auditing should be implemented at community level in the villages. Irrigated water management techniques followed in Hiware Bazar, Maharashtra should be applied nationwide. 2) Allocations towards NFSM (National Food Security Mission) warrant an increase. There is a need to devise strategies to encourage the FMCG (Fast Moving Consumer Goods) companies to partner with the government on NFSM. 3) Providing allocation towards formation of farmers co-operatives for management of storage godowns. 4) Allocations towards allied activities need a push in order to augment farmer s income and achieve the goal of doubling the farmer income by 2022. 5) Initial years during the adoption of organic farming practice are not profitable, the government thus needs to provide support to farmers during this period. Examples can be drawn from models implemented in Sikkim. 6) Government needs to consider leveraging partnerships with the private sector to enhance the quality of agricultural research institutions. Ministry of Rural Development Recommendations 1) Pradhan Mantri Gram Sadak Yojana should be dovetailed with MGNREGA to leverage the manpower for improving rural connectivity. Outcomes must be clearly mentioned in terms of length of roads to be build and not simply the budgetary allocations. 2) The target of 28.5 lac hectares under Krishi Sichai Yojana is only 2% of total land under irrigation this warrants a re-look. Additionally, government has not provided any timeline for the implementation of the scheme, time bound delivery of promised objectives should be clearly provisioned for in the scheme. 3) Currently the various schemes related to irrigation are scattered under various ministries. Their convergence must be ensured for their effective implementation. 5

4) Scheme for creating awareness and incentivizing the use of solar roof tops in rural areas of the country should be launched. 5) Rs. 70000 allocated towards building of houses under Indira Awaas Yojana is inadequate and should be increased. A model construction code should be provided by the local authorities which would include construction as per local conditions and disaster proofing. 6) Centralized markets should be setup for products created by self-help groups and village level cottage industries under National Rural Livelihood Mission. Ministry of Women and Child Development Recommendations 1) Allocations under Nirbhaya Fund should be used towards setting up of One Stop Crisis Centres making them more accessible with a provision for rehabilitation. Training workshops for self-defense should also be organized at education centers, workplaces and community level. 2) Creation of All India teachers service-on the lines of other All India Services- to ensure uniformity and continuity in the quality of education. 3) Allocations should be made towards a new scheme focused on Sex Education [Reproduction Education] and Gender Sensitization which would provide for counseling in the schools at an appropriate age. 4) Allocation towards creation of an online portal with a realtime updates on ICDS beneficiary and details like uptake of benefits. Conclusion The one of its kind exercise of bringing youth together to discuss budgetary allocations received enormous interest from the youth, civil society organisations and minority interest groups. This is a clear evidence of increasing demand for participatory platforms and discussion forums to discuss important civic issues and policy decisions. While the above recommendations voice the humble opinion of youth present during this two-day conclave, they are also indicative of their expectations from the government. The fact that the youth has strong yet insightful opinions to voice over the issues of Agriculture, Health and Human Resource Development cannot be ignored and it is a humble attempt on our part to place these recommendations to the Ministry of Finance as well as the respective department related standing committees. We strongly believe that this effort coupled with the support of government, civil society organisations and citizens would help make the entire exercise of budgeting in India more inclusive, open and transparent in nature. 6

I Organization s Profile Appendix MY Parliament is a policy awareness initiative which encourages active citizenship and service to the nation. The organization aims at fostering an environment for active participation of youth in democracy and creating a platform for citizen engagement in governance.thus serving as a bridge of ideas between the decision makers of today and passionate leaders of tomorrow. MY Parliament has achieved this objective by providing platforms for direct engagement with public authorities, organizing workshops, training sessions and simulating parliamentary debates around issues of national importance. MY Parliament Fellowship program is a 4 Months long programme for the youth in the field of public policy and governance. The programme witnessed participation of more than 25 young participants who underwent a month long residential training programme in public policy and governance at Vishwa Yuvak Kendra, New Delhi. Some of the eminent names who mentored our fellows during this period include Shri Rajnath Singh, Honorable Minister of Home Affairs; Mr. Piyush Goyal Honorable Minister of State, Independent Charge for Power, Coal and New & Renewable Energy; Dr. B.P Mathur, Former Deputy CAG; Shri P.S Bawa, Chairman, Transparency International India; Smt. Meera Sanyal, Ex-CEO, RBS; Dr. V.K Agnihotri, Former Secretary General, Rajya Sabha; Dr. Anand P Gupta, Former Professor, IIM Ahmedabad. Post training programme, fellows were deputed to work at their designated projects in various functional areas of public policy. It was a unique opportunity for these young fellows to get mentored by some of the stalwarts of public policy and governance and get a hands on experience through live projects. They were well guided throughout this period which enabled them to reflect on the ways in which their theoretical understanding could be analyzed and be implemented in practice. II Participant s Profile With more than 200 young and dynamic participants from all across the country, the budget session 2016 witnessed a substantial increase in participation in comparison to the 2015 edition. Selection of a participant is based on several criteria including his/her educational background, work experience, understanding of India s pressing problems, and the commitment to find long lasting solutions to them. This year event the witnessed participation of 156 male participants and 44 female participants. Participants came from diverse educational institutions ranging from engineering colleges such as the IITs, BITS Pilani, NITs to law colleges such as the NLU and Gujarat University. Picture 1: Percentage of Male and Female participants in MY Parliament Budget Session 2016 Picture 2: Educational background of all the participants Picture 3: State-wise participation at MY Parliament Budget Session 2016 Picture 4: Representation of the various educational institutions at the session 7

8

9

10