Lok Sabha Question No. 152 (STARRED), answered on 2023-02-13
Subject: Inequality in the Country
Ministry: FINANCE
Asked by: Deepak Baij

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## STARRED QUESTION NO. 152

TO BE ANSWERED ON 13.02.2023

## INEQUALITY IN THE COUNTRY

## *152. SHRI DEEPAK BAIJ:

Will the Minister of FINANCE be pleased to state: resources are getting confined in the hands of a few people and if so, the details thereof and the

(a) whether inequality is reportedly increasing continuously in the country and the country's reaction of the Government thereto;

(b) the details of the gap between the rich and the poor during each of the last six years; and (c) the steps taken by the Government to bridge the gap between the rich and the poor in the country?

## ANSWER

## THE MINISTER OF FINANCE (SMT NIRMALA SITHARAMAN)

(a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. *152 RAISED BY SHRI DEEPAK BAIJ

## FOR 13 th  FEBRUARY 2023

## ON

## INEQUALITY IN THE COUNTRY

(a)  and  (b):  In  India,  the  data  on  class  distribution  of  income  is  not  compiled  centrally. However,  household  consumption  expenditure  data  collected  by  National  Sample  Survey Office  (NSSO)  could  be  used  as  a  proxy  to  capture  the  economic  disparity  in  terms  of consumption expenditure. The latest data of Large Sample Survey on Household Consumer Expenditure has been collected by NSSO in its 68th round conducted in 2011-12. The Gini coefficient (measuring the inequality between different expenditure classes of the population) in  rural  areas  is  observed  to  be  almost  same  in  2004-05  and  2011-12  at  0.27  and  0.28 respectively.  In the urban areas, the Gini coefficient has increased marginally from 0.35 in 2004-05  to  0.37  in  2011-12.  The  process  to  conduct  the  next  Household  Consumption Expenditure Survey has been initiated in August 2022.

(c): The primary policy objective of the Government is development of all segments of the population. Its focus on inclusive growth is reflected in commitment to Sabka Saath, Sabka Vikas  to  reduce  poverty  and  inequality,  provide  social  security,  income  generation  and livelihood options, and improve the quality of life of the vulnerable sections of the population in the country.

In  this  regard,  the  Government is implementing a number of targeted programmes  such as Pradhan  Mantri  Awas  Yojana  (PMAY),  Mahatma  Gandhi  National  Rural  Employment Guarantee  Act  (MGNREGA),  Deendayal  Antyodaya  Yojana  -  National  Rural  Livelihoods Mission (DAY-NRLM), National Social Assistance Programme (NSAP), Pradhan Mantri JanDhan Yojana (PMJDY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal  Pension  Yojana,  Pradhan  Mantri  Mudra  Yojana,  Stand  Up  India  Scheme,  Umbrella Programmes for Development of Minorities and Other Vulnerable Groups; Rashtriya Krishi Vikas  Yojna;  fund  transfer  under  PM-KISAN,  PM  Fasal  Bima  Yojana  claim  payments; fertiliser  subsidies;  interest  subvention  for  dairy  cooperatives;  Agri-Infrastructure  Fund  for farm gate infrastructure etc.

Further, the Government is implementing various programmes, including Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana, PM Saubhagya Yojana, Ayushman Bharat, etc. to bring about overall improvement in the quality of life of the people through universal access to basic amenities.

The Government has also implemented the Aspirational Districts Programme (ADP), since 2018, aimed at comprehensive development of identified districts across various States/UTs, in  six  areas:  (i)  health  &  nutrition,  (ii)  education,  (iii)  agriculture  &  water  resources,  (iv) financial  inclusion,  (v)  skill  development,  and  (vi)  basic  infrastructure.  In  order  to  further strengthen  this  initiative,  the  Government  has  recently  launched  the  Aspirational  Blocks Programme covering 500 blocks for saturation of essential government services across multiple domains such as health, nutrition, education, agriculture, water resources, financial inclusion, skill development, and basic infrastructure.

During COVID-19, Government made several targeted interventions to mitigate the adverse impact of the pandemic on the lives and livelihoods of the people, particularly the vulnerable sections  of  the  society  through  the  Pradhan  Mantri  Garib  Kalyan  Yojana  (PMGKY), implemented since April 2020.  These included, inter alia, world's largest free food program, cash transfers to women Jan Dhan account holders, insurance cover for health workers fighting COVID-19,  increase  in  MGNREGA  wages,  assistance  to  low  wage  earners  in  organised sectors, etc.

In keeping with the concern and sensitivity towards poor and vulnerable sections of society, the PMGKAY scheme was extended till December 2022. Under the extended PM-GKAY each beneficiary was given an additional 5 kg free ration per person per month in addition to his normal quota of food grains under the NFSA. Further, the benefit of free ration can be availed through portability by any migrant labour or beneficiary under One Nation One Ration Card (ONORC) plan from nearly 5 lakh ration shops across the country.

Continuing with the commitment to ensure food and nutritional security, the Government is implementing, from 1 January, 2023, a scheme to supply free food grain to all Antyodaya and priority households for the next one year, under PMGKAY. The entire expenditure of about Rs. 2 lakh crore will be borne by the Central Government.

The Budget 2023-24 has indicated 'Inclusive Development' as one of its priority areas and has proposed many measures to ensure this goal. These, inter-alia, include several initiatives for the  agriculture  sector  (such  as  digital  public  infrastructure  for  agriculture;  Agriculture Accelerator Fund; focus on cotton crop and horticulture; making India a global hub for millets; enhanced  agriculture  credit  target  etc);  skilling,  health  and  education.  The  Budget  further proposed to launch Pradhan Mantri PVTG Development Mission to improve socio-economic conditions of the particularly vulnerable tribal groups (PVTGs) so as to saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved  access  to  education,  health  and  nutrition,  road  and  telecom  connectivity,  and sustainable livelihood opportunities. The outlay for PM Awas Yojana is also proposed to be enhanced by 66 per cent to over Rs. 79,000 crore.

Further, recognizing that the investments in infrastructure and productive capacity have a large multiplier impact on growth and employment, the Budget of 2023-24 proposes to increase the Capital investment outlay by 33 per cent to Rs. 10 lakh crore, which would be 3.3 per cent of GDP and almost three times the outlay in 2019-20. This substantial increase in recent years will help enhance growth potential and job creation, crowdin private investments, and provide a cushion against global headwinds. It is also proposed to continue the 50-year interest free loan  to  state  governments  for  one  more  year  to  spur  investment  in  infrastructure  and  to incentivize them for complementary policy actions, with a significantly enhanced outlay of Rs. 1.3 lakh crore.

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