More on 2012 expenditures in INJ orphanage

As the end of the year comes closer, it is time to look back at what happened; here is the financial assessment of INJ expenses in 2012. Once again, it has been a difficult year on the financial side, as the global warming has dramatic consequences on Indian climate, leading to draughts and increases of food prices. At the same time, we have noticed that the currency change of the Indian Rupee still decreases every year: in 2012, 1 euro was worth between 64 and 71 Rupees, and in 2013, it is close to 78 Rupees for 1 euro. This is great news for us, who contribute to financing the project from Europe: each euro brings more Rupees. However, it also masks the increase of prices; the later has been of 72% in rupees, whereas in euro, it seems to be only of 21%. Figures in euro increased less sharply than in rupees although the inflation rate didn’t slow down.

The expenses can be divided into 3 types:

-       The routine monthly budget to make the orphanage work every day (salary, food, etc.)

-       Expenses linked to the schooling of the girls (school fees, cultural activities, etc.)

-       Extraordinary investments (for instance repairing the water-tank)

In 2012, the orphanage spent roughly 16,000€:

Unsurprisingly, the major expenses are the household budget (nearly 80%) and the schooling of the children (12%). The household monthly budget was about 1000 euros per month. Food and salaries of the workers constituted the main expenses.

The workers’ salaries (3 full time employees; Prema doesn’t get a salary) haven’t been raised since 2011 even though the inflation rate is important and has caused troubles to Prema. Prema had to buy water between May and July 2012; in fact, following the draught, the rivers were dry and there was no water available for the farms, but also for the daily needs. We were glad to see fruit, milk and eggs again in the food expenses, as Prema hadn’t been able to buy these items in 2011. In fact, she had concluded agreements with local shop keepers to have gross rates. However, with the draught in 2011 and 2012, these agreements were broken as the prices increased dramatically. Eggs and fruits price peaked too high for Prema to buy them for a long time, but in September, after the monsoon and with an increase of SIWOL’s support, it became possible again. Furthermore, medical expenses are constantly decreasing; the school offers regular medical check-up to pupils, and 2 medical doctors have agreed to follow-up the children for free. This system is also a way for Prema to involve the local community. 

To conclude, the graph below shows the expenses variations between 2009 and 2012:

At first sight it seems that all expenses have increased a lot, especially for food and the addition of water expenses. However, one must also notice the stagnation of the workers’ salaries since 2011; they were already very low in 2009 and the increase was made to catch up with the local average. The inflation has made this gesture vain and salaries are now again below the average. Finally, the number of girls in the orphanage also increased. Thus it is important to highlight Prema’s performance, as she managed to keep the orphanage going and the budget balanced in a time of deep economic crisis and inflation.