India could fall short by Rs 4.2 lakh crore of the annual approximate average of Rs 26 lakh crore, needed to achieve just five of the 17 Sustainable Development Goals (SDGs) by 2030, according to a report.
The "India Philanthropy Report 2019", which has been compiled by Dasra — a strategic philanthropy foundation — and Bain and Company, the report incorporates schemes such as improving sanitation cover, reducing infant mortality rate and improving the count of housing access in rural India as among the five key SDGs in India.
The shortage was estimated, "...in the most optimistic scenario — in which India sustains its current economic growth rate and its current funding growth rate, all philanthropic capital is channelled towards the SDGs, there is no leakage in deployment, and the funding required to meet the SDGs doesn't increase…"
SDGs are a set of 17 global goals set by the United Nations in areas such as education, sanitation, gender inequality, climate change, housing, economic inequality, innovation, sustainable consumption, and peace and justice.
"Depending on how each of these factors evolves, the actual shortfall could be two to four times that amount. Therefore, it is critical that public social sector expenditure (central and state), the mainstay of the total funding, increases substantially," the report noted.
Any increased contribution from private donors would help bridge this gap in funding and ensure timely deployment of the funds along with greater accountability.
The report divided contributions made by the private sector as those made by individual philanthropists, domestic companies and foreign donors. Individual contributions amounted to Rs 43,000 crore of the Rs 70,000 crore private funding received by India's social sector in FY18.
It pointed out that donations made by ultra high net worth individuals (UHNIs) -- above Rs 10 crore -- accounted for 55 percent of the total donated by individual contributors in FY18.Azim Premji's philanthropic foundation has contributed close to 80 percent of all contributions made by UHNIs during the period.
The findings do not account the announcement by Premji on March 13, where he pledged 34 percent of his shares in Wipro worth $21 billion (Rs 52,750 crore) to his foundation called the Azim Premji Philanthropic Initiatives.
Also read: Azim Premji earmarks economic benefits of 34% of his Wipro shares to entity involved in philanthropy
However, keeping Premji's contributions aside, those made by the rest of India's UHNIs witnessed a drop in the Compound Annual Growth Rate by 4 percent from FY14 to FY18.
This is despite UHNIs estimated to double, "...in both volume and wealth from 1,60,600 households with Rs 1,53,000 crore combined net worth in 2017 to 3,30,400 households with Rs 3,52,000 crore combined net worth in 2022."
The report pegs the government's spending on India's welfare and development at approximately Rs 10 lakh crore as of FY18, or six percent of the GDP and defined public funding as the central and state government's spending on the top 10 social programmes.
It highlighted that the spending of states is about four times that of the central government's spending on the social sector.
According to the requirements of the Companies Act 2013, qualifying companies have to set aside a corporate social responsibility (CSR) budget, which is two percent of their three-year average net profit. The report estimated this budget to be about Rs 13,000 crore in FY18, of which around 15 percent was unspent in FY18.
Funds received from foreign contributors reduced by around 40 percent due to a government crackdown on non-governmental organisations (NGOs) for violating the Foreign Contribution Regulation Act (FCRA) of 2010.
The report cited data from the Ministry of Home Affairs, which recorded that 13,000 NGO licences were cancelled for violating FCRA norms over the past three years, with approximately 4,800 cancellations in 2017 alone. "NGOs need to comply with government regulations, including timely filing of annual returns and validation of bank accounts receiving foreign funds, to allow for a larger influx of foreign funds and thereby increase the social sector's wallet size," the report said.