There is a growing divergence in the relationship between poverty and hunger in India. The shrinking of social expenditure by the government is forcing the poor to spend more on non-food essential items squeezing their food budget. Elucidate. (UPSC IAS Mains 2019 General Studies Paper – 2)
Since the economic reforms, Urban Head Count Ratio (HCR) poverty fell from 32% in 1993-94 to 21% in 2009-10. The fall in poverty in rural India has been even more spectacular, where HCR declined from 50% to 34% in the same period. However, this looks decidedly uncomfortable when confronted with another set of facts on the prevalence of hunger(or under-nutrition) in India.
Despite increase in real income of the people over the last two decades, overall calorie consumption and nutritional intake has not commensurately increased. According to Global Hunger Index, India is second after South Sudan, when it comes to wasting (low weight for height) among children. Also, there are millions of children and adults suffering from “Hidden Hunger”.
- The poor are increasingly spending more on education, healthcare, transportation, fuel and lighting. The share of monthly expenditure devoted to these items has increased at such a pace that it has absorbed all the increase in real income over the past decades. This has led to a ‘Food Budget Squeeze’.
- Possibly, the most important reason for this is shrinking social expenditure by the government which is rendering the urban and the rural poor dependent on market prices of non-food essential items, like education, healthcare etc which are typically high.
- Social sector spending has always been low in India compared to other countries. According to the National Health Profile 2018, India spends 1.02% of the gross domestic product on public healthcare, while Maldives spends 9.4%, Sri Lanka 1.6%, Bhutan 2.5%, and Thailand about 2.9%.In education, India’s public investment is around 2.7% of GDP, while it is 3.4% in Sri Lanka and 7.4% in Bhutan.
- Another reason is, rural working people are migrating in large numbers to urban centres or other rural areas in search of work. Most of such migration is temporary and seasonal in character, and involves travelling relatively large distances. This large circulation of labor does have substantial impact on the expenditure patterns of households. For instance, an increasingly footloose labour force means that a large section of the working poor have to bear higher costs of transportation, maintain communication with the sites of work (much of which is seasonal in character), and are deprived of traditional non-market sources of food when away from home.
- Hunger persists in India also because of a decline in access to non-market food sources, preference for ‘better tasting more expensive calories and increased spending on luxury items like radio, TV, and mobile phones, as economist Abhijit Banerjee writes in his book – “Poor Economics”.
- In recent times, talks of Universal Basic Income and replacing food subsidies with Direct Benefit Transfer are gaining ground. These measures may further aggravate the crisis of hunger by exposing the poor to market volatility.
Economists Amartya Sen and Jean Dreze distinguish two aspects of social security — “protection” and “promotion”. While the former denotes protection against a fall in living standards through ill health, accidents; the latter focuses on enhanced living conditions- “capability building”. Government needs to take care of these by increasing expenditure on education upto 6% of GDP as recommended by Kasturirangan committee, and meet the target of spending 2.5% of GDP on health helping the poor to focus on nutrition.
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