Home CATEGORIES Business Ethics & Philanthropy 93% of Social Spending Comes from Government, not Private Companies in FY21:...

93% of Social Spending Comes from Government, not Private Companies in FY21: Report

46
0
SHARE
 
The Indian government has done the heavy lifting when it comes to social sector spending in the last financial year, according to the Indian Philanthropy Report published by global consultant company Bain & Company and strategic philanthropy foundation Dasra.

Social Sector Spending by the Government

The entire expenditure in India’s social sector increased by 20 per cent in FY21. The government was the primary driver of spending, accounting for over 93 per cent of the total, according to the Indian Philanthropy Report.

Social Sector Spending Needed to Meet SDGs in India

According to NITI Aayog, India needs to funnel approximately 13% of its GDP into social causes to be able to meet its Sustainable Development Goals commitments by 2030. The Indian Philanthropy report said that while social sector financing has increased by 12% yearly to around 17 and a half lac rupees in the last five years, it so far only accounts to 7 per cent of India’s GDP.

Rise in CSR Spending in FY21 on Healthcare

In FY21, corporate social responsibility (CSR) funding for education decreased by 18%, while money for the environment and sustainability decreased by 36%. However, CSR spending for healthcare increased by 30%, according to the report. The report said that healthcare received Rs 6,363 crore in CSR funds in FY21, up 30 percent from Rs 4,888 crore in FY20. According to a report based on official statistics, CSR flow to healthcare was Rs 1,848 crore in FY15.
In FY21, the PM Relief Fund received Rs 1,689 crore in CSR funds, an increase of 112% over the previous year when it received Rs 797 crore. Overall, a major amount of funds were devoted to COVID-19 relief initiatives in FY 2021, with funds increasing fivefold from Rs 1,815 crore in FY2020 to Rs 9,225 crore in FY2021.

Performance of other Social Sectors in CSR Funding

While the COVID-19 fund allocation increased spending in healthcare and the PM Relief Fund in FY2021, other areas such as education, the environment, and rural development faced significant cuts.
CSR funding flow in the environment and sustainability area decreased to Rs 930 crore in FY21 from Rs 1,461 crore in FY20. The same area received Rs 774 crore in CSR money in FY15.
The education sector, which is a major receiver of CSR money, saw an 18% decrease inflow. The sector received Rs 5,877 crore in FY21, compared to Rs 7,155 crore in FY20.
While rural development projects had a 15% decrease in financing in FY21, other areas including as livelihood, skills, sports, sanitation, and drinking water got a total of Rs 6,863 crore in CSR money, a negative rise of 17% year-on-year.