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Subject: Inclusive GrowthXPublic Expenditure

  • PM SVANidhi Street Food Hub Initiative

    Why in News?

    Lakhanpur (Kathua, Jammu & Kashmir) has been selected among the first towns approved under the PM SVANidhi Street Food Hub Initiative.

    Key Highlights

    • Lakhanpur, the gateway to Jammu & Kashmir, will develop a Street Food Hub across two clusters covering 1,754.25 sq. m.
    • Will promote Dogra cuisine and improve facilities for pilgrims, tourists, and local vendors.
    • The project aims to transform Lakhanpur into a culinary tourism destination.

    About the Initiative

    • Implemented by the Ministry of Housing & Urban Affairs (MoHUA) under PM SVANidhi.
    • Plans to establish up to 50 Street Food Hubs across India.
    • Focuses on organized, hygienic food streets, tourism promotion, and sustainable livelihoods.
    • Preference to towns with:
      • Tourism and heritage significance.
      • Unique local cuisine.
      • Convergence with Swadesh Darshan, PRASHAD, UNESCO World Heritage Sites, and UNESCO Creative Cities.

    Financial Support

    • ₹4 crore per project: 30% first instalment, 50% second instalment, and 20% after completion
    • Additional ₹25 lakh incentive for cities with a notified Street Vending Plan.

    PM SVANidhi

    • Launched: 2020, Ministry: MoHUA
    • Objective: Provide collateral-free working capital loans to street vendors and promote financial inclusion through interest subsidy and digital payments.

    Significance

    • Enhances livelihoods of street vendors.
    • Promotes local cuisine and tourism.
    • Improves food hygiene and visitor experience.

    [2015] Pradhan Mantri Jan Dhan Yojana has been launched for

    [A] providing housing loan to poor people at cheaper interest rates

    [B] Promoting women’s Self-Help Groups in backward areas

    [C] promoting financial inclusion in the country

    [D] providing financial help to marginalised communities

  • Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth?

    Since the 1991 reforms, India shifted to a market-oriented growth model. Public expenditure on social services increased from 5% of GDP (1990s) to 8% (2024-25)

    Trend of Public Expenditure on Social Services in the Post-Reforms Period

    Early Post-Reform Phase (1991-2005)

    Low and stagnant spending around 5% of GDP due to fiscal consolidation.

    Prioritisation of basic education – expansion of SSA, mid-day meal.

    Health expenditure remained low at 1% of GDP, high OOPE.

    Rights-Based Expansion Phase (2005-2015)

    Public expenditure rose to 6-7% of GDP.

    Introduction of major rights-based entitlements: MGNREGA (2005), RTI, RTE (2009), NFSA (2013).

    Focus on rural livelihood missions, inclusion programmes. Eg- DAY-NRLM

    Post-2015 Period

    Social sector spending increased to 8% of GDP (2021-22).

    Health spending reforms – decline in OOPE from 65% to 40% (2014-2024).

    Women Specific schemes: Eg- Ujjwala (10 crore LPG connections)

    Emphasis on social security. Eg- e-Shram, PM Garib Kalyan Anna Yojana.

    Increased focus on skill development, digital inclusion. Eg- JAM Trinity, PM-KVY

    In consonance with Inclusive Growth

    Extreme poverty fell from 16.2 % in 2011-12 to just 2.3 % in 2022-23

    MGNREGA, NFSA ensured income security and food security (67% population coverage).

    Human Capital Improvement – Life expectancy increased from 58 years (1990) to 73 years.

    Regional Inclusion – Aspirational Districts improved health, education, and infrastructure indicators in 112 lagging districts.

    Women Empowerment – Eg- 45% women representation in PRIs

    Limitations and Challenges

    Rural-Urban Divide Persists – Urban per capita income is 2x rural.

    Only 24-25% of the population has any formal social protection.

    Poor Learning Outcomes

    50% of Class 5 students cannot read Class 2 text (ASER).

    50% of graduates are employable only (India Skills Report).

    Low Public Health Spending – Still around 1.9% of GDP, below the global average of 6%.

    Inclusion-Exclusion errors and Leakages in PDS.

    High Inequality – Top 10% hold 77% of national wealth (Oxfam).

    Capability Approach (Amartya Sen) by increasing Education and health spending to 6% and 2.5% of GDP respectively is needed for ‘Sabka Saath, Sabka Vikas.’