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Highlights from the Economic Survey 2012-13


27 February 2013

General Trends in Social Sector Allocations:

  • GOI expenditure on social services and rural development combined (Plan and non-Plan) has seen an increase from 14.77 per cent in FY 2007-8 to 17.39 per cent in FY 2012-13 (Budget Estimates [BE]).
  • It is budgeted that 25.1 percent of the total expenditure (GOI and states) will be spent in FY 2012-13. This is an increase from 24.5 percent in FY 2011-12.
  •  The total expenditure (GOI and states combined) on education increased from Rs. 291378 crores to Rs. 331524 crores. As a percentage of GDP, this amounts to an increase from 3.25 percent to 3.31 percent.
  • The expenditure on health (GOI and states) as a percentage of GDP also increased from 1.29 percent in FY 2011-12 to 1.36 percent in FY 2012-13.

Key Development Indices:

  • While the average annual growth rate of the Human Development Index of India between 2000-11 is among the highest of all countries surveyed, the figures themselves continue to be low.
  • In 2011, India was ranked at 134 out of 187 countries (according to the latest available Human Development Report (HDR) 2011 published by the United Nations Development Programme (UNDP)).  In 2010, conversely, India was ranked at 119 out of 169 countries.
  • India’s performance in the Gender Inequality Index (GII) (which captures the loss in achievement due to gender disparities in the areas of reproductive health empowerment, and labour force participation) also ranked low at 129. This is worse than countries such as Pakistan (115), Bangladesh (112), and Sri Lanka (74).

Income and Inequality:

  • The Monthly Per Capita Expenditure (MPCE) at constant prices increased from Rs. 558.78 in rural areas and Rs. 1052.36 in urban areas during 2004-5 to Rs. 707.24 and Rs. 1359.75 in 2011-12 in rural and urban areas.


  • Overall employment in public and private sectors combined saw a marginal increase from 281.72 lakh at the end of FY 2009-10 to 289.99 lakh at the end of FY 2011-12.
  • The increase can be attributed to private sector employment which grew from 103.77 lakhs to 114.52 lakhs in the same time period.
  • Public sector employment saw a decrease from 177.95 lakh to 175.48 lakh during the same period.

Growth Rates:

  • Growth rates: The best performing states in terms of growth (measured as gross state domestic product at constant prices) during 2011-12 were Bihar (16.71 per cent) Madhya Pradesh (11.98) and Maharashtra (8.54).
  • The states with the slowest growth rates included Rajasthan (5.41 per cent) Punjab and Uttar Pradesh.
  • Bihar also had the highest per capita growth rate in terms of per capita income, at 15.44 percent.  On the other hand, per capita income growth was lower than the India average for  Rajasthan (3.72 per cent), Uttar Pradesh, Punjab and Odisha.

Financial Inclusion:

  • Decadal growth in the percentage of bank branches has been highest in Haryana (59.5 per cent) and lowest in Bihar (14.4 per cent). Nearly 90 percent households in Himachal Pradesh avail of banking services, while the figure for Bihar stood at a low 44.4 percent.

Trends in  Key Social Sector Components:

  • The Indira Awas Yojana:

–          During FY 2012-13, as against a target of 30.10 lakh houses, 25.35 lakh houses were sanctioned under the scheme. A total of 13.88 lakh houses were constructed as of 31st December 2012.

–           The unit assistance to rural households for construction of dwelling units under the IAY is being revised w.e.f. I April 2013. The scheme shall now provide Rs. 70,000 in plain areas ( up from  from `Rs. 45,000 ) and Rs. 75,000 in hilly/ difficult areas/Integrated Action Plan (IAP) districts (up from Rs. 48,500).

–          Eighty-two left-wing extremism (LWE)-affected districts have also been made eligible for a higher rate of unit assistance between Rs.48,500  and Rs. 75,000 (w.e.f. 1.4.2013).

–           310 lakh houses have been constructed since the inception of the IAY till 31 December 2012.

  • Rural Sanitation:

–          The annual number of rural households with toilet facilities has increased from 6.21 lakh in 2002-3 to 88 lakh in 2011-12. Conversely, the Census 2011 reports that only 32.7 per cent of rural households have toilets.

–          More than 27 lakh toilets have been constructed in rural households in the annum 2012-13 (up to November 2012).

–          A total of 28,002 gram panchayats, 181 intermediate panchayats, and 13 district panchayats have been awarded the Nirmal Gram Puruskar (NGP) over the last seven years.

  • Rural Drinking water:

–          About 73.91 per cent of rural habitations are fully covered under the provision of safe drinking water in rural areas. This entails the provision of at least 40 litres per capita per day (lpcd) of safe drinking water.

–          As against a target of 7,98,967 habitations to be covered during the Eleventh Five Year Plan,  coverage up to 31 March 2012 stood at 6,65,052 (83.23 per cent).  The Census 2011 reported that 84.2 per cent rural households as having improved access to drinking water sources such as tap water, hand pumps and covered wells.

–           Allocations for the Nirmal Bharat Abhiyan (NBA – earlier the Total sanitation campaign) have seen an increase from Rs. 1500 crore in 2011-12 to Rs. 2500 crore in 2012-13.

–          Incentive provision for individual household latrine units under the NBA has widened from all BPL households to include above poverty line (APL) households that fall under the following categories: SCs, STs, small and marginal farmers, landless labourers with homesteads, physically challenged, and women headed households.


–          As of December 2012, 24.93 crore Aadhaar numbers have been generated and an estimated 20 crore Aadhaar letters dispatched.

  • Janani Suraksha Yojana (JSY):

–          The number of beneficiaries under the JSY has increased from 7.38 lakh in FY 2005-06 to more than 1.09 crore in FY 2011- 12.

–          The number of institutional deliveries has increased from. 1.08 crore in 2005-6 to 1.75 crore during 2011-12.

–          The number of institutional deliveries during 2012-13(up to September 2012) stood at   80.39 lakh.

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