Go to OpenBudgetsIndia

Budgeting for social sectors and privatisation

We are witnessing a privatisation drive in a number of important sectors as well as a fall in budgets of most social sectors. How do we think privatisation is going to impact/manifest if and when it comes to social sectors?

Thanks for joining the Forum, Vijayta.

@Nilachala @protiva @happy: Please share your opinion on this.


Hi Vijayta!

In India larger no. of population, especially people from disadvantaged communities heavily depend on public provisioning of essential services like education, health, drinking water & sanitation, food, transportation etc. These are all come under social sector services. In most of the cases, these provisioning by govt. are either free or comes with very low prices. The budget cut in social sector is inviting private players in the market. Since, private companies are run by profit-making motives, for the same services, now people need to pay higher prices. Therefore, eventually the social sector services will be for those who can afford it. Majority of the population with lesser(no) purchasing power will be deprived from it. This will increase inequality in the society. In the long run a less educated, less healthy society will impact country’s growth and development.