What Are Lokpal and Lokayukta?
What Are Lokpal and Lokayukta?
The Lokpal and Lokayukta Act, 2013 provided for the establishment of Lokpal for the Union and
Lokayukta for States.
These institutions are statutory bodies without any constitutional status.
They perform the function of an "ombudsman” and inquire into allegations of corruption against
certain public functionaries and for related matters.
Maladministration is like a termite which slowly erodes the foundation of a nation and hinders
administration from completing its task. Corruption is the root cause of this problem.
Most of the anti-corruption agencies are hardly independent. Even Supreme Court has been
termed CBI as a “caged parrot” and “its master’s voice”.
Many of these agencies are advisory bodies without any effective powers and their advice is rarely
followed.
There is also the problem of internal transparency and accountability. Moreover, there is not any
separate and effective mechanism to put checks on these agencies.
In this context, an independent institution of Lokpal has been a landmark move in the history of
Indian polity which offered a solution to the never-ending menace of corruption.
What are the Key Provisions of the Lokpal and Lokayuktas (Amendment) Act,
2016?
Lokpal is a multi-member body, that consists of one chairperson and a maximum of 8 members.
Chairperson of the Lokpal should be either the former Chief Justice of India or the former Judge of
Supreme Court or an eminent person with impeccable integrity and outstanding ability, having
special knowledge and expertise of minimum 25 years in the matters relating to anti-corruption
policy, public administration, vigilance, finance including insurance and banking, law and
management.
Out of the maximum eight members, half will be judicial members and minimum 50% of the
Members will be from SC/ ST/ OBC/ Minorities and women.
The judicial member of the Lokpal either a former Judge of the Supreme Court or a former Chief
Justice of a High Court.
The non-judicial member should be an eminent person with impeccable integrity and outstanding
ability, having special knowledge and expertise of minimum 25 years in the matters relating to anti-
corruption policy, public administration, vigilance, finance including insurance and banking, law
and management.
The term of office for Lokpal Chairman and Members is 5 years or till the age of 70
years.
The members are appointed by the president on the recommendation of a Selection
Committee.
The selection committee is composed of the Prime Minister who is the Chairperson, Speaker of Lok
Sabha, Leader of Opposition in Lok Sabha, Chief Justice of India or a Judge nominated by him/her
and One eminent jurist.
For selecting the chairperson and the members, the selection committee constitutes a search
panel of at least eight persons.
Under the Lokpal Act of 2013, the Department of Personnel & Training (DoPT) is supposed to put
together a list of candidates interested to be the chairperson or members of the Lokpal.
This list would then go to the proposed eight-member search committee, which would shortlist
names and place them before the selection panel headed by the Prime Minister.
The selection panel may or may not pick names suggested by the search committee.
In September 2018, the government had constituted a search committee headed by former
Supreme Court judge Justice Ranjana Prakash Desai.
The 2013 Act also provides that all states should set up the office of the Lokayukta within one year
from the commencement of the Act.
The institution of lokpal has tried to bring a much needed change in the battle against corruption
in the administrative structure of India but at the same time, there are loopholes and lacunae
which need to be corrected.
Five years have passed since the Lokpal and Lokayuktas Act 2013 was passed by parliament, but
not a single Lokpal has been appointed till date indicating the lack of political will.
The Lokpal act also called upon states to appoint a Lokayukta within a year of its coming to
force. But only 16 states have established the Lokayukta.
Lokpal is not free from political influence as the appointing committee itself consist of
members from political parties.
The appointment of Lokpal can be manipulated in a way as there is no criterion to decide who is an
‘eminent jurist’ or ‘a person of integrity.’
The 2013 act did not provide concrete immunity to the whistle blowers. The provision for
initiation of inquiry against the complainant if the accused is found innocent will only discourage
people from complaining.
The biggest lacuna is the exclusion of judiciary from the ambit of the Lokpal.
The Lokpal is not given any constitutional backing and there is no adequate provision for
appeal against the Lokpal.
The specific details in relation to the appointment of Lokayukta have been left completely on the
States.
To some extent, the need for functional independence of the CBI has been catered to by a change
brought forth in the selection process of its Director, by this Act.
The complaint against corruption cannot be registered after a period of seven years from the date
on which the offence mentioned in such complaint is alleged to have been committed.
For Mains: Significance and Efficiency of various schemes launched for the development of rural India.
Why in News?
Recently, the Year-end-review of the Ministry of Rural Development (MoRD) was released.
The Year-end reviews of the Ministry of Panchayati Raj, Ministry of Environment, Forest
and Climate Change, Ministry of Education and Ministry of Ports, Shipping and
Waterways were also released.
About:
It aims to provide at least 100 days of guaranteed wage employment in every
financial year to every rural household whose adult members volunteer to do
unskilled manual work.
Achievements of 2022-23:
11.37 crore households availed employment.
289.24 crore person-days employment has been generated out of which:
56.19% were for women
19.75% were for Scheduled Castes (SCs)
17.47% were for Scheduled Tribes (STs).
New Initiatives under MGNREGS:
Amrit Sarovar: Construction/renovation of at least 75 Amrit Sarovars (ponds) in each
district of the country; they will help in increasing the availability of water, both on
surface and under-ground.
Jaldoot App: It was launched in Sept 2022 for measuring the water level in a Gram
Panchayat through 2-3 selected open wells twice a year.
Ombudsperson for MGNREGS: Ombudsperson App was launched in Feb 2022 for smooth
reporting and categorization of grievances received from various sources related to
the implementation of the MGNREGS.
About:
PMAY-G is one of the flagship Programmes of the Government of India.
It aims "Housing for All" by providing 2.95 Crore pucca houses with basic amenities
to all houseless households and households living in kutcha and dilapidated houses in
rural areas by 2024.
Achievements till 2022-23:
2.50 Crore houses have been sanctioned.
2.11 Crore houses have been completed.
New Initiatives under PMAY-G:
Aadhaar Based Payment System allowing Direct Benefit Transfer (DBT) to the PMAY-
G beneficiaries in their Aadhar linked bank account.
Universal geo tagging of PMAY-G Houses done via Awaassoft/AwaasApp and via
GeoRURBAN app
Ombudsperson appointed under MGNREGS can also be availed for grievance redressal
under PMAY-G
About:
DAY-NRLM is one of the world's largest initiatives to improve the livelihoods of the
poor.
The main objective of the scheme is promoting self-employment and organization of
rural poor.
Achievements till 2022-23:
8.71 crore women from poor and vulnerable communities mobilised into 81 lakh Self-
Help Groups.
New Initiatives under DAY-NRLM:
An overdraft facility of Rs.5000 approved for SHG members with PM Jan Dhan
Yojana account to help them meet their immediate emergency needs without any
hassles.
The Interest Subvention Scheme under DAY-NRLM was revised to ensure a common
scheme all across the country under which:
Banks will extend credit for loans up to Rs.3 lakh @ 7% per annum; banks will be
sub-vented at a uniform rate of 4.5% per annum.
Banks will extend credit for loans above Rs.3 lakh and up to Rs.5 lakh @
interest rate equivalent to 1 year-MCLR (Marginal Cost of Funds Based Lending
Rate); banks will be sub-vented at a uniform rate of 5% per annum.
About:
PMGSY was launched as a one-time special intervention to provide rural
connectivity, by a single all-weather road, to the eligible unconnected habitations of
designated population size.
PMGSY-II was launched in 2013.
Road Connectivity Project for Left Wing Extremism Affected Areas
(RCPLWEA) was launched in 2016.
PMGSY-III was launched in 2019.
It aimed at consolidation of 1,25,000 km of routes and major rural links
connecting habitations, inter-alia, to Gramin Agricultural Markets (GrAMs), Higher
Secondary Schools and Hospitals.
Achievements of 2022-23:
39,413 Km road length and 1,394 bridges were constructed with an expenditure of Rs.
23,364 crores (centre + state share).
New Initiatives under DAY-NRLM:
MoRD introduced one of the latest methodologies in the field of road construction - Full
Depth Reclamation (FDR) which involves recycling existing bituminous pavement and its
underlying layers into a new base layer.
Geospatial Rural Road Information System (GRRIS), GeoSadak and Geo-PMGSY
Mobile App developed.
About:
NSAP aims to provide basic level of financial assistance to old age, widows,
disabled persons and to the bereaved households in the event of death of the bread-
winner belonging to Below Poverty Line (BPL) category as identified by the States/UTs
NSAP aims to implement Article 41 of the Indian Constitution (DPSP).
Achievements of 2022-23:
National Informatics Centre and DoRD developed an NSAP - Pension Payment
System (NSAP-PPS) to facilitate end to end transactions.
A citizen centric mobile app - Sambal - was developed to provide information to
beneficiaries about NSAP schemes along with state top-ups.
About:
SAGY is an initiative of MoRD wherein the leadership of the Members of Parliament is
leveraged directly for development at the Gram Panchayat level.
The District Collector is the nodal officer for implementing SAGY.
SAGY aims to create a holistically developed model Gram Panchayats across the
country.
Under SAGY-II (2019-24), 5 Adarsh Grams (one per year) are to be selected
and developed by 2024.
New Initiatives under SAGY:
SAGY website was linked with Mission Antyodaya website wherein the status of each of
the adopted SAGY Gram Panchayats (infrastructure facility and public service delivery
along with ranking and gap) is available.
MP Dashboard developed on SAGY website wherein MP centrality is more visible.
A SAGY Assets Geo Tagging Application developed for geo locating of assets created
under SAGY.
About:
SPMRM is a scheme launched by MoRD in 2016 to deliver integrated project based
infrastructure in the rural areas, which will also include development of economic
activities and skill development.
It succeeded the Provision of Urban Amenities to Rural Areas (PURA),
announced in 2003.
There are 2 categories of clusters under SPMRM: Non-Tribal and Tribal.
SPMRM is a Centrally Sponsored Scheme (CSS).
Achievements of 2022-23:
Aibawk cluster in the Aizwal (Mizoram) records itself as the first cluster to be
completed under SPMRM.
Other achievements include:
Construction of agri-link road
Inter-village road connectivity projects
Promotion of agriculture & allied activities and ecotourism
Special efforts to conserve sites of historical importance to encourage
tourism
For Prelims: Smart Cities, AMRUT Mission, Swachh Bharat Mission-Urban, HRIDAY, Pradhan Mantri Awas
Yojana-Urban, Aspirational district programm.
For Mains: Issues with rapid urbanization in India, Measures to tackle challenges of rapid urbanization
Urbanization is one of the most common characteristics of economic development. As the economy
grows gradually, the process of urbanization depends on the shift of the surplus population from rural to
urban areas along with the growth of some industrial urban centres.
Urbanization is closely linked to modernization and industrialization. Urbanization is not just a modern
phenomenon, but a rapid and historic transformation of human social roots on a global scale, whereby,
rural culture is rapidly replaced by predominantly urban culture.
For reasons of wealth and social mobility, many rural people come to the city. But the picture of
urbanization is not as glorious as it seems. Modern cities have grown in a haphazard and unplanned way
due to rapid industrialization.
According to the 2011 Census, the urbanization rate in India was 31.2%, up from 27.8% in 2001. Around
590 million people would live in the cities by 2030. India is experiencing rapid urbanization. Therefore, it is
important to understand the pattern of this growth and its effect on the population.
The growing trend of urbanization is reflected in the increasing concentration of the majority of the urban
population in some major cities.
Positive Aspect:
Economic Growth:
Rapid industrialization results in the development and establishment of many
industrial cities.
Together with manufacturing units, ancillaries and the service sector have begun to
grow in these urban areas.
Employment:
New and additional employment opportunities are being created in urban areas in
the newly expanding manufacturing and service sector.
This would result in rural-urban migration and the industrialization urbanization
process to be established.
Modernization and Change in Attitude:
Urbanization results in changes in the attitudes and minds of urban people resulting
in the modernization of behaviour and a proper motivation that indirectly helps the
country to achieve faster economic development.
Negative Aspect
Congestion:
Growing urbanization is largely responsible for increasing congestion in urban
areas.
Too much congestion has resulted in problems such as traffic jams, too much
concentration of the population, the management of which is gradually becoming
very difficult and costly.
Low Quality of Life:
Too much of the population creates urban chaos related to housing, education,
medical facilities, slum growth, unemployment, violence, overcrowding, etc.
All of these would lead to deterioration in the quality of human life.
Loss of Productivity in Rural Areas:
Large-scale migration from rural to urban areas takes place.
Such large-scale migration of the active population from rural areas would result in
a loss of productivity in rural areas, leading to poor conditions in the village
economy.
As a result, urbanization beyond a certain point would have unhealthful
consequences.
Smart Cities
AMRUT Mission
Swachh Bharat Mission-Urban
HRIDAY
Pradhan Mantri Awas Yojana-Urban
Aspirational district programm.
What Should be the Way Forward?
Discuss the causes of rapid urbanisation in India and also suggest measures to overcome issues arising
out of rapid urbanisation.
Prelims:
Q. With reference to the Indian economy after the 1991 economic liberalization, consider the
following statements: (2020)
1. Worker productivity (Rs. per worker at 2004-05 prices) increased in urban areas while it decreased
in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Ans: (b)
Exp;
A 2017 NITI Aayog Report, “Changing Structure of Rural Economy of India Implications for
Employment and Growth”, provides the following information
regarding the rural economy:
Worker productivity has increased for both rural and urban areas. For rural areas it was `37273 in
2004-05 and `101755 in 2011-12, while for urban areas it was
`120419 in 2004-05 and `282515 in 2011-12. Hence, statement 1 is not correct.
The rural share in the total workforce declined steadily from 76.1% in 1999-00 to 70.9% in
2011-12.Hence, statement 2 is not correct.
One of the significant changes in the rural production structure is the growing share of the non-
farm sector, which increased from 37% in 1980-81 to 65% in 2009-10, and thus shows that in
terms of value of production, rural is no longer merely agricultural.
Hence, statement 3 is correct.
Rural employment showed 2.16% annual growth rate during the pre-reform period, which
decelerated in the post-reform period to 1.45% and turned negative (-0.28%) in the period of
economic acceleration. Hence, statement 4 is correct.
Therefore, option (b) is the correct answer
Mains
Q. The frequency of urban floods due to high intensity rainfall isincreasing overthe years. Discussing the
reasons for urban floods, highlight the mechanisms for preparedness to reduce the risk during such
events. (2016)
Why in News?
Recently, the Union Skill Development and Entrepreneurship Minister inaugurated the 13th Federation of
Indian Chambers of Commerce & Industry (FICCI) Global Skills Summit 2022.
What is FICCI?
About:
The 2015 Report on National Policy on Skill Development and Entrepreneurship
estimated that only 4.7% of the total workforce in India had undergone formal skill training
compared with 52% in the US, 80% in Japan, and 96% in South Korea.
A skill gap study conducted by the National Skill Development Corporation (NSDC)
over 2010-2014 indicated an additional net incremental requirement of 10.97 crores of
skilled manpower in 24 key sectors by 2022.
In addition, the 29.82 crore farm and nonfarm sector workforce needed to be
skilled, reskilled, and upskilled.
Issues:
Overburdened Responsibility: Phase III of Pradhan Mantri Kaushal Vikas Yojana,
launched to impart skills development to over 8 lakh persons in 2020-21.
However, it suffers from excessive reliance on the District Skills Development
Committees, chaired by District Collectors, who would not be able to prioritise this
role, given their other assignments.
Discontinuity in Policy Process: The National Skill Development Agency (NSDA),
was created in 2013 for resolving the inter-ministerial and inter-departmental issues and
eliminating duplicates of efforts of the Centre.
However, it has been now subsumed as part of the National Council for Vocational
Training (NCVT).
This reflects not only a discontinuity in the policy process, but also some
obfuscation among policymakers.
Enormous Number of New Entrants: According to a 2019 study by the National Skills
Development Corporation (NSDC), 7 crore additional people in the working age of
15-59 years are expected to enter the labor force by 2023.
Given the sheer magnitude of youth to be skilled, it is paramount that the policy
efforts are adequate in all respects.
Employers’ Unwillingness: India’s joblessness issue is not only a skills problem; it is
representative of the lack of appetite of industrialists and SMEs for recruiting.
Due to limited access to credit because of Banks’ NPAs, the investment rate has
declined and thus has a negative impact on job creation.
Supply and Demand Issues: On the supply side, India is failing to create enough job
opportunities; and on the demand side, professionals entering the job market are lacking in skill
sets. This is resulting in a scenario of rising unemployment rates along with low
employability.
Rising Unemployment: As per the Centre for Monitoring Indian Economy (CMIE), the
unemployment rate in India has been around 7% or 8% in 2022, up from about 5% five
years ago.
Further, the workforce shrank as millions of people dejected over weak job prospects pulled
out, a situation that was exacerbated by Covid-19 lockdowns.
The labor force participation rate, meaning people who are working or looking for work, has
dropped to just 40% of the 900 million Indians of legal age, from 46% six years ago.
Lack of Skills in Workforce: While keeping pace with the employment generation is one issue,
the employability and productivity of those entering the labour market is another issue.
As per the India Skills report 2015, only 37.22% of surveyed people were found
employable - 34.26% among males and 37.88% among females.
According to Periodic Labour Force Survey (PLFS) data 2019-20, 86.1% of those between
15 and 59 years had not received any vocational training. The remaining 13.9% had
received training through diverse formal and informal channels.
Demand for Skilled Workforce: The Confederation of Indian Industry (CII) had projected
Incremental Human Resource Requirements till 2022 at 201 million, making the total requirement
of the skilled workforce by 2023 at 300 million.
A major share of these jobs was to be added in the manufacturing sector, with the National
Manufacturing Policy (2011) targeting 100 million new jobs in manufacturing by 2022.
Pradhan Mantri Kaushal Vikas Yojana: The flagship Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) scheme was launched in 2015 to provide short-term training, skilling through ITIs and
under the apprenticeship scheme.
Since 2015, the government has trained over 10 million youth under this scheme.
SANKALP and STRIVE: The SANKALP programme which focuses on the district-level skilling
ecosystem and the STRIVE project which aims to improve the performance of ITIs are other
significant skilling interventions.
Initiatives from Several Ministries: Nearly 40 skill development programmes are implemented
by 20 central ministries/departments. The Ministry of Skill Development and
Entrepreneurship contributes about 55% of the skilling achieved.
Initiatives by all ministries have resulted in nearly four crore people being trained through
various traditional skills programmes since 2015.
Mandatory CSR Expenditure in Skilling: Since the implementation of mandatory CSR
spending under the Companies Act, 2013, corporations in India have invested over ₹100,000
crores in diverse social projects.
Of these, about ₹6,877 crores were spent on skilling and livelihood enhancement projects.
Maharashtra, Tamil Nadu, Odisha, Karnataka, and Gujarat were the top five recipient
States.
TEJAS Initiative for Skilling: Recently, TEJAS (Training for Emirates Jobs and Skills), a Skill India
International Project to train overseas Indias was launched at the Dubai Expo, 2020.
The project aims at skilling, certification and overseas employment of Indians and creating
pathways to enable the Indian workforce to get equipped for skill and market requirements
in the UAE.
Way Forward
Skill development is the most essential aspect of the development of our country. India has a huge
‘demographic dividend’ which means that it has a very high scope of providing skilled manpower to the
labour market. This needs a coordinated effort from all stakeholders including Government agencies
Industries, Educational and training institutes and Students, trainees and job seekers.
Prelims
Q. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
(2018)
Ans: (c)
Exp:
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship scheme for skill training of youth
implemented by the Ministry of Skill Development and Entrepreneurship through the National Skill
Development Corporation (NSDC). Hence, statement 1 is not correct.
The individuals with prior learning experience or skills shall be assessed and certified under the
Recognition of Prior Learning (RPL) component of the Scheme. RPL aims to align the competencies
of the unregulated workforce of the country to the NSQF.
Skill training would be based on the National Skill Qualification Framework (NSQF) and
industry-led standards. Hence, statement 3 is correct.
Apart from providing training according to the NSQF, training centres shall also impart training in
soft skills, entrepreneurship, and financial and digital literacy. Hence, statement 2 is correct.
Therefore, option (c) is the correct answer.
Mains
Q. “Demographic Dividend in India will remain only theoretical unless our manpower becomes more
educated, aware, skilled and creative.” What measures have been taken by the government to enhance
the capacity of our population to be more productive and employable? (2016)
Source: PIB
For Prelims: Periodic Labour Force Survey, Code on Social Security (2020), Employees’ Provident Fund
Organisation (EPFO), Employees’ State Insurance (ESI), National Pension System (NPS), Universal Social
Security, National Social Assistance Programme, e-Shram, Self-Employed Women’s Association (SEWA),
CAG
For Mains: Social Security: Schemes, Issues, Way Forward and Best Global Practices
Around 53% of all of the salaried workforce does not have any social security benefits in India, according
to the Periodic Labour Force Survey Annual Report 2021-22, and which has been cited in the media. In
effect, this means that such employees have no access to a provident fund, pension, and health care and
disability insurance.
Only 1.9% of the poorest 20% of India's workforce have access to benefits. Meanwhile, gig workers, or
approximately 1.3% of India’s active labor force, rarely have access to any social security benefit. India’s
social security system is also ranked poorly; Mercer CFS ranked India at 40 out of 43 countries in 2021.
According to ILO, Social security is the protection that a society provides to individuals and households to
ensure access to health care and to guarantee income security, particularly in cases of old age,
unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner.
Social security policies cover various types of social insurances, such as pension, health insurance,
disability benefit, maternity benefit, and gratuity.
The Code on Social Security, 2020: This is a comprehensive law that consolidates and
simplifies nine previous laws related to social security. It covers employees in both the organized
and unorganized sectors, and provides for retirement pension, provident fund, life and disability
insurance, healthcare and unemployment benefits, sick pay and leaves, and paid parental leaves.
The Employees’ Provident Fund Organisation (EPFO): This is a statutory body that
administers the Employees’ Provident Fund Scheme, the Employees’ Pension Scheme, and the
Employees’ Deposit Linked Insurance Scheme. These schemes provide retirement pension,
provident fund, and life and disability insurance to employees in the organized sector.
The Employees’ State Insurance (ESI): This is a self-financing social security scheme that
provides medical care and cash benefits to employees in case of sickness, maternity, disability,
and unemployment. It covers employees in the organized sector who earn less than a certain
threshold.
The National Pension System (NPS): This is a voluntary, defined contribution pension scheme
that allows individuals to save for their retirement. It is open to all citizens of India, including those
working in the unorganized sector. It offers multiple investment options and tax benefits.
The National Social Assistance Programme (NSAP): The NSAP is a social security and welfare
programme that provides support to aged persons, widows, disabled persons and bereaved
families on death of the primary breadwinner, belonging to below poverty line households.
What are the Issues and Challenges related to Social Security Policies and
their Implementation?
Lack of adequate budgetary allocation: The National Social Security Fund was set up for
unorganized sector workers with an initial allocation of just ₹1,000 crore, which was far below the
estimated requirement of over ₹22,841 crore.
This shows that the government has not prioritized social security as a key component of
its development agenda and has not allocated sufficient resources to meet the needs of the
vulnerable sections of the society.
Poor Fund Utilization and Management: The funds allocated for social security schemes have
not been utilized effectively or efficiently. For example, the CAG audit revealed that ₹1,927
crore accumulated in the National Social Security Fund since its inception had not been
utilized at all.
Similarly, the cess collected for the provision of social security to construction workers in
Delhi was poorly utilized, with approximately 94% of the money remaining unspent.
These examples indicate that there are gaps in the fund management and monitoring
systems, which result in wastage and underutilisation of public money.
Corruption and Leakage: Another challenge related to social security policies and their
implementation is corruption and leakage of funds. In the case of Haryana, where the CAG noted
that the direct benefit scheme of the State’s Social Justice and Empowerment Department had
seen the transfer of ₹ 98.96 crore to the accounts of deceased beneficiaries.
This suggests that there are loopholes in the identification and verification of beneficiaries,
as well as in the delivery mechanism of social security benefits.
Moreover, there are instances of fraud, bribery, nepotism, and political interference in the
allocation and distribution of social security funds.
Inadequate Coverage and Benefits: There is also a persistent issue of inadequate coverage
and benefits of social security schemes in India. For instance, the contribution by the Centre
to old-age pension schemes has stagnated at ₹200 a month since 2006, which is below
the minimum wage per day.
Moreover, the eligibility criteria for some of the schemes are very restrictive and exclude
many deserving beneficiaries. For example, the National Social Assistance Programme
focuses on old-age poor individuals with no able-bodied earners in their household, who
are eligible to earn a monthly pension of ₹75.
This leaves out many poor elderly people who may have some earning
members in their household but still face economic hardship and
insecurity.
Budgetary Cuts: The reduction in budgetary allocations for the Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) suggests a lack of prioritization for social
welfare and rural employment generation.
Technology and Digital Divide: Many social security schemes are transitioning to digital
platforms for registration and disbursement of benefits. However, a significant portion of the
population, particularly in rural areas, may lack access to technology and the internet, creating a
digital divide that hampers their participation in these programs.
Informal Labor Sector: Approximately 91% (or around 475 million) of India’s workforce works in
the informal sector, which often lacks job security, benefits, and access to formal social security
programs.
What are the Steps that can be taken up by India?
Universal Social Security: The time has come for India to consolidate its existing social
security schemes/ad hoc measures and provide universal social security to its entire
labor workforce. With jobs becoming increasingly on-demand and hire/fire policies proliferating,
India’s workers are increasingly insecure on the job front.
To have the fruits of growth trickle down while offering a sense of social security,
policymakers must discard traditional supply-side economic theories to embrace
policies that enable equitable growth.
Expanding EPFO Contribution: For formal workers, expanding contributions to the
Employees' Provident Fund Organisation (EPFO) system can provide increased social security. This
involves both employers and employees contributing to the fund.
Partial Contributions for Informal Workers: Informal workers with meaningful income,
whether self-employed or in informal enterprises, could make partial contributions.
Encouraging informal enterprises to formalize and contribute could be part of this
approach.
Government Support for Vulnerable Workers: Providing government subsidies or social
assistance to those unable to contribute due to unemployment, underemployment, or low earnings
ensures that everyone has access to basic social security support.
Digitization and e-Shram Platform: Investing in digital platforms and data systems streamlines
the registration, verification, delivery, monitoring, and evaluation of social security services,
improving efficiency and transparency.
The e-Shram platform's expansion and digitization efforts have enabled the enrollment of
millions of workers and extended insurance coverage.
However, the burden of registration should not solely rest on informal workers;
involving employers could encourage formalization.
Mandatory Social Security for Employers: Implementing mandatory social security
entitlements for employees, enforced by their employers, would foster formalization and
accountability in employee-employer relationships.
Pan-India Labour Force Card: Introducing a nationwide labor force card could simplify the
registration process and expand social security coverage beyond the construction and gig worker
sectors.
Expanding Successful Schemes: Successful schemes like the Building and Other Construction
Workers Schemes could be expanded to cover a broader range of workers. This might require
revisiting certain restrictions, such as the cooling-off period, for improved benefit portability.
Addressing Specific Worker Groups: Special attention should be given to vulnerable worker
groups, such as domestic workers and migrants. Expanding coverage of social services like child
care and organizing efforts for domestic workers could provide them with more stability.
Strengthening Existing Schemes: The govt may also strengthen existing schemes, for example
the Employees’ Provident Fund (EPF), the Employees’ State Insurance Scheme (ESI), and
the National Social Assistance Programme (NSAP), with budgetary support and expansion of
coverage.
Administrative Simplification: There is a need to simplify the administrative framework of
social security programs. For example, the existing social security framework for
unorganized workers has become complex, with overlapping areas of authority between
the State and Centre, and confusing definitions being used such as between a platform worker,
an unorganized worker and someone who is self-employed.
Raising Awareness: There’s a need for a more significant push to raise awareness about social
security to ensure that more workers are aware of the available benefits. Organizations such as
the Self-Employed Women’s Association (SEWA) which run Shakti Kendras (worker
facilitation centers), may be funded to run campaigns (especially for women) to provide greater
information on social security rights, along with services and schemes that the government offers.
Brazil: Brazil has a comprehensive and generous social security system that covers more than
90% of the population and provides income replacement for workers and their families in various
situations.
India can learn from Brazil’s experience in expanding the coverage and scope of its social
security system, as well as implementing reforms to ensure its fiscal sustainability and
efficiency.
Germany: Germany has a well-developed social security system that is based on the principle of
social insurance, where workers and employers contribute to various schemes that provide
pensions, health care, unemployment benefits, long-term care, and family allowances.
India can learn from Germany’s model of social insurance, which is widely accepted and
trusted by the public and provides adequate protection and incentives for workers.
Singapore: Singapore has a unique social security system that is based on the principle of
individual savings, where workers are required to save a portion of their income in a central
provident fund that can be used for retirement, housing, health care, and education.
India can learn from Singapore’s approach of promoting personal responsibility and asset
accumulation, as well as providing flexibility and choice for workers to manage their
savings .
Conclusion
There is a need for more robust policy implementation, proper allocation of funds, transparent utilization
of resources, and efficient oversight mechanisms. Without addressing these issues, the intended
beneficiaries of social security programs may continue to face challenges and inadequate support. The
Code on Social Security proposed by the government in 2020 is a positive step towards providing a
statutory framework for social security for various categories of workers, including those in the gig
economy and informal sectors.
India’s Social Security policies need an overhaul. In this light, discuss the challenges faced by Social
Security Schemes and suggest measures to address them.
Prelims:
Q. Who among the following can join the National Pension System (NPS)? (2017)
(c) All State Government employees joining the services after the date of notification by the respective
State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st
April, 2004
Ans: (c)
Q. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (2016)
Ans: (c)
Why in News?
According to the latest report (World Social Protection Report 2020-22: Regional companion
report for Asia and the Pacific) on social protection by the International Labour Organisation (ILO)
, only 24.4% of Indians, even fewer than Bangladesh (28.4%), are under any sort of social protection
benefit.
Social protection systems help individuals and families, especially the poor and vulnerable, cope with
crises and shocks, find jobs, improve productivity, invest in the health and education of their children, and
protect the aging population.
About: The Report is a companion to the ILO’s ‘World Social Protection Report 2021-22’,
that gives a regional overview of the social protection in the Asia and Pacific region.
Global:
Social Protection: It notes that Mongolia, New Zealand, Singapore and Australia
have 100% social protection net, while in Myanmar and Cambodia, the number
stands below 10%.
Lower Coverage: As per the report, three out of four workers in the Asia Pacific
region are not protected in the event of illness or injury sustained at work.
Countries with lower Gross Domestic Product (GDP) per capita tend to have low
levels of work injury coverage for example, Afghanistan, India, Nepal and Pakistan
cover fewer than 5% of their workers.
Uneven Coverage: According to the report, as of 2020, only 46.9% of the global
population was effectively covered by at least one social protection benefit, while
the remaining 53.1% as many as 4.1 billion people were left wholly unprotected.
The report further notes that the large majority of the working-age population in the
world 69.4%, or 4 billion people, are only partially protected or not
protected at all.
Gender Inequality: Highlighting the inherent gender inequality in the social protection
coverage, the report makes note women’s coverage lag behind men’s by a substantial 8%
points.
Indian Perspective:
Low Investment in Social Protection: The report notes that owing to the relatively low
investment in social protection i.e., only 24.4% of Indian population, the amounts
transferred under non-contributory benefits are usually too low to provide adequate
protection.
Disparity in Coverage: With contributory schemes typically limited to those
working in the formal sector and non-contributory schemes still mostly targeted on the
poorest, India's social security benefits are lower than the 5% of GDP per capita (USD
2,277).
Recent Initiatives: It appreciated India’s higher coverage rate achieved through a
combination of contributory and non-contributory schemes through its progressive
extension of coverage by combining different tiers of social protection such as
the Mahatma Gandhi National Rural Employment Guarantee Programme
(MGNREGA), which offers a degree of protection for informal sector workers for up to 100
days.
What are the various Indian Government Initiatives Regarding Social Security?
It is the only tripartite United Nation (UN) agency. It brings together governments, employers and
workers of 187 member States (India is a member), to set labour standards, develop policies and
devise programmes promoting decent work for all women and men.
Received the Nobel Peace Prize in 1969.
Established in 1919 by the Treaty of Versailles as an affiliated agency of the League of
Nations.
Became the first affiliated specialized agency of the UN in 1946.
Headquarters: Geneva, Switzerland.
Other Reports:
Social Dialogue Report.
World Employment and Social Outlook: Trends
World Employment and Social Outlook
World Social Protection Report
Global Wage Report
Prelims
Q. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (2016)
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (c)
Atal Pension Yojana (APY) was announced by the Government in the 2015 Budget for
the old age income security of the working poor.
The APY is focussed on all citizens in the unorganised sector, who have joined the National Pension
System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA)
and who are not members of any statutory social security scheme.
The APY focusses on all citizens in the unorganised sector in the age group of 18-40 years. Under
the APY, the subscribers would receive the fixed minimum pension (`1000-5000) at the age of 60
years, depending on their contributions. Hence, statement 1 is correct.
There is no bar on the number of members of a family joining the APY. Hence, statement 2 is
not correct.
In case of death of subscriber, the same amount of pension will be given to his/her spouse for life.
Hence, statement 3 is correct.
After the demise of both spouse and subscriber, the nominee will be entitled to receive the pension
money that the subscriber had accumulated till 60 years of age. Therefore, option (c) is the
correct answer.
Mains
Q. Does the Rights of Persons with Disabilities Act, 2016 ensure effectivemechanismfor empowerment and
inclusion of the intended beneficiaries in the society? Discuss.(2017)
Source: BS