Economic Survey 2024: Corporate CSR spending rose from Rs 17k cr in FY18 to Rs 26k crore in FY22

Union Budget 2024: The Economic Survey 2024 noted that the role of the corporate sector has never been greater than it is now. In 2014, spending by companies on social purpose programmes was made mandatory through a new provision under Section 135 of the Companies Act 2013. The survey noted that the CSR spending increased by an impressive 53% between 2017-18 and 2021-22 financial years.

The Economic Survey said that CSR spending was Rs 17,096 crore in 2017-18, rose to Rs 20,217 crore in 2018-19, and reached Rs 26,278 crore in 2021-22.

"With the robust growth of the economy, corporate profits in India and, hence, the mandatory CSR pool will continue to grow, powering the sustainable and inclusive development that nonprofits are uniquely positioned to accelerate with their last-mile presence on the ground," the survey stated.

In the eight years from 2014 to 2022, Rs 1.53 lakh crore were spent on CSR, and the spending across the last three years constitutes more than 50 per cent of the total CSR amount spent since 2014.

CSR compliance has seen a growing adherence over the years, with more than half the companies even going beyond their obligation. For the last three years, yearly CSR spending has been more than Rs 25,000 crore, with yearly CSR spending increasing by 1.5 times in eight years.

In terms of sector distribution, more than 75% of the overall Corporate Social Responsibility (CSR) spending was focused on four primary development sectors:

> Education - 32.4%
> Healthcare & Sanitation - 38.4%
> Rural Development - 6.9%
> Environment, Animal Welfare & Conservation - 10.9%

This allocation highlights a strategic emphasis on crucial areas that have a direct influence on enhancing quality of life and promoting sustainability.

The survey noted public sector units, despite representing only 2% of the corporates companies, are responsible for almost 17% of the overall CSR expenditure. This disparity underscores the substantial impact that public enterprises have on fostering social welfare endeavours.

Engagement in CSR endeavours often necessitates collaborations with non-profit entities, which account for approximately half of the allocated CSR capital. This cooperative approach not only bolsters the non-profit sector but also fosters a sharing of knowledge and methodologies, enriching the overall philanthropic landscape.