Public Policy

Introduction to Public Policy and Governance in India

Public policy is the fundamental guide to action taken by different government bodies regarding several issues in the country. It is made on behalf of the citizens to address their issues and improve the country’s overall state. These policies make the governance of a city, state or country easy and more effective if they have been incorporated well into the workings of the government. Hence, public policies have become very crucial in the modern world.

Need of Public Policies in Public Administration

Public policies are framed for different aspects of administration and sectors like energy, food, gender, retail, education, environment and many more. These rules are necessary for the smooth flow of administration. A good public policy can be made with the inclusive efforts of both government and non-government institutions.

The different constituents of Public Policies are:

• Laws
• Rules & regulations
• Welfare programs & practises
• Specific policy changes that are based on national, state and local levels.

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Types of Public Policy

Public policies can be divided into four major types:

Distributive Policies

Policies intended to benefit specific groups of people are known as distributive policies. It could be in the form of aid, public assistance, health services, and other welfare steps. Thus, all public aid and welfare programs are included in this category. Adult education programs, food distribution, social insurance, and immunisation camps are some examples of distributive policies.

Regulatory Policies

Trade, business, safety measures, public utilities, and other regulatory guidelines are examples of regulatory policies. Independent organisations that work on behalf of the government are in charge of this form of policy. Some prominent examples of this type of organisation are the Life Insurance Corporation of India, the Reserve Bank of India, SIDBI and other public agencies. In short, regulatory policies are government policies that apply to those organisations that provide goods or services on behalf of the government.

Redistributive Policies

Redistributive policies aim to bring social and economic changes in society. The prime focus of these kinds of policies is to remove inequality and work for the welfare of society at large. With the help of these policies, the government tries to ensure that resources are not concentrated in the hands of a few people by transferring resources from privileged groups to deprived ones.

Substantive Policies

Substantive policies are concerned with society’s overall welfare and development. Some substantive policies are programs such as education and employment opportunities, economic stabilisation, law and order enforcement, anti-pollution laws, etc. These policies cover a wide range of issues that affect society’s overall well-being and progress.

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Examples of Public Policy

Here are three examples of public policies: Fiscal Policy, Monetary policy and Social Assistance Policies.

Fiscal Policies

Fiscal policy is a set of rules related to government spending and taxation. These policies decide the government budget allocation and set the tax rates imposed on the people. Some examples of fiscal policy include rules related to taxation on investments, debt and surplus management, welfare schemes by the government and more.

Monetary Policies

Monetary policies are the set of rules that ensure the supply and demand in the country. It also looks after the valuation of the currency. A robust monetary policy can elevate a nation’s finances. Some examples of monetary policies would include guidelines related to the bank rates, credit card interest rates, and buying and selling of government securities, among others.

Social Assistance Policies

These policies are related to social welfare actions and assistance to lower-income groups. Some examples of social assistance policies are health schemes and education schemes implemented by government bodies.

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Public Policy Cycle

Public policy is designed and implemented in five steps. These five steps are:

Agenda Setting

It is the first stage of the cycle where the problems are identified and discussed. The real benefit of this step is filtering out the core issue from the problems and passing it on to the legislature for further discussion.

Formulation

Formulation involves the discussion part where the identified issue is analysed thoroughly, and a draft for a solution is created. This step is crucial in formulating a policy to address the issue.

Implementation

Implementation is the actionable part of the public policy cycle, where rules and regulations are implemented by the central or state governments. The government agencies can also enforce some policies. These agencies can follow the policy’s instructions and lay down a detailed plan to implement the rules based on goals and timelines.

Budgeting

Budgeting is an essential step in the public policy cycle. The budgeting allows the government to manage the finances for a particular policy in a fiscal year. It ensures that there will be the availability of cash flow during the implementation of the policy.

Evaluation

Evaluation is the impact assessment of policies after they are implemented. The impact of the policy and its budgeting is scrutinised in this step. This step helps suggest improvements in the existing policies and make it more helpful to draft newer policies.

Conclusion

Public policies are the blueprint of the government’s activities to pursue specific established goals and objectives. While formulating these policies, the governments always keep public interest in mind.