|
Contents:
·
Union
Budget 2002-2003, Our Reflections
·
Pre-Budget
Memorandum, State Budget 2002-2003
Union
Budget 2002-2003, Our Reflections
Union Budget
2002-2003 – A Reflection
This
budget will definitely not be remembered as one of the better ones, since it has
saddled the individual tax payer with a greater burden.
However, there are certain very
positive initiatives taken by the finance minister, which needs to be lauded. It is very heartening to note that the main issue of
concern which is the rising fiscal deficit is being addressed through curtailing
of administrative expenditure. CUTS
is very happy to note that the recommendations of the Expenditure Reforms
Commission especially related to downsizing or rightsizing the government has
been accepted and 12,200 surplus manpower posts would be abolished by March
2002. It is our sincere hope that
the remain 30,000 posts out of the total 42,2000 posts which have been
identified as surplus manpower by the commission would also be abolished soon.
Although the finance minister
announced mentioned in his speech that the non-plan expenditure has been kept
under check, there is considerable increase in the overall expenditure over the
last year pushing the fiscal
deficit to 5.7% of the GDP. Given
this, we hope that the government would bring the Fiscal Responsibility and
Budget Management Bill for consideration in the Parliament in the current
session as announced. We
would like to see an early enactment of the bill.
On a related note, it is also
happy to note that the centre would be working jointly with the states to bring
down the debt to GDP ratios to sustainable levels by 2005.
However, only 12 states have so far drawn up medium-term fiscal reform
programmes in consultation with the Centre. We hope that the centre takes a more
proactive step in ensuring that all the states draw up a fiscal reforms
programme.
Higher investments in the social
sector are always welcome. An
increase of 33% more than budgetary allocations in the last financial year, with
special focus on women and children is a very positive move.
In the oil sector, there are several welcome features such as dismantling of
administered price mechanism, permitting private oil companies to retail
petroleum products and so on. Evidently this is on account of surplus generated in the
oil pool account because of low international prices. It is therefore surprising to find that the price of LPG
and Kerosine have been increased. These
two commodities are widely used by the middle and poor sections of the society. They would be the hardest hit by this increase.
Several interventions proposed to
deregulate agriculture and dairy sectors and provide institutional and financial
support for value addition is a welcome step.
It is also appropriate that the central and state government focus on
modernizing and diversifying agricultural research and extension links to farms
and prove more streamlined trading and processing channels for agricultural
produce.
Pre-Budget
Memorandum, State Budget 2002-2003
Pre-Budget Memorandum 2002-03, submitted to the Sate
Finance Minister and some of its reflections in his budget speech
CUTS
presented a pre-budget memorandum to the finance minister of Rajasthan, in the
context of the state budget for the year 2002-2003.
Congratulating
the Rajasthan Government for ushering in some important legislative initiatives
and implementation there of, such as the Rajasthan Right to Information Rules,
2001, some initiatives to bring the government to the grassroots has also been
taken, such as `Prashasan Gaon Ke Sang’, It urged the finance minister to
provide sufficient funds needs for building capacities of officers to be
sensitive to the needs of the public at large, and also to build capacities of
consumer organisations and grassroots NGOs to understand and comprehend issues
on governance, to effectively impart the knowledge to the masses and also to
ensure that there is a greater participation of people in the governance.
We
are please to note that this suggestion has been accepted and the government in
a press release on the 31st March announced the setting up of an NGO
cell which would help to promote NGO participation in various programmes and
schemes of the government. Further,
the NGO cell would also help to bridge the communication gap which exists
currently between the government machinery and civil society.
One of the
major problems that the Indian economy faces today is the lack of coherence of
economic policies among the states. There is no denying the fact that in a
federal structure like ours, the states should enjoy sufficient autonomy in
policy making and implementation. But there is also an urgent need for proper
coordination in policy making and implementation. The National Development
Council (NDC) was constituted essentially keeping this in mind. However, it
could not meet the desired objectives due to its not being institutionalised.
CUTS
has noted with great satisfaction that our Chief Minister himself had expressed
similar sentiments which appeared in a news item.
Given this, we suggest that the state government take the initiative to
ensure that due consideration be given to see that the NDC is institutionalised
with an establishment of a strong secretariat. The NDC would continue to meet at
regular intervals as it is doing now, but the secretariat would function
throughout the year to ensure that the decisions taken at the NDC are properly
implemented through regular monitoring and follow-up with the state governments.
Further more, we also suggest that NGOs also be involved in the NDC
functioning.
Controlling
public expenditure is a must with the raising fiscal deficit to abnormal levels.
The most effective and lasting solution to this problem is to begin the
process of downsizing (or more appropriately rightsizing) government.
At present and in the near future, public expenditure policy has to deal
with the scrutiny and pruning of non-plan expenditure of the state government.
With the gradual deregulation of industry and trade, many of the
supervisory and regulatory functions of the government should be minimised.
This would help a great deal in containing the growth of government’s
administrative expenditure.
CUTS
firmly believe that in the context of social justice, public expenditure can
become a powerful weapon if it is used to benefit the poor masses.
This can be done by taking up schemes, which improve the productivity,
and earning capacity of the poor. As
the problems of unemployment and poverty are more acute in rural areas, the
focus of expenditure programmes has to shift to villages.
Among
the rural people, women & child, landless and bonded labourers must get
priority in receiving benefits from schemes of health, education, land clearance
and distribution, credit facilities, rural housing and employment opportunities.
Some suggestions made to the government were:
-
To
take more proactive steps to ensure girl child education. Though a number of
schemes exist to motivate girls to attend schools, many of these schemes are
not being implemented in its true spirit.
The lack of facilities in schools, lack of motivators and the lack of
effective communication with the villagers and abject poverty are some of
the reasons for a low turnout of girls in school followed by a high drop-out
rate.
-
We
are pleased to note that the government has announced certain programmes
which will ensure a reduction in the drop out rate of girls such as awards
etc. and one another suggestion incorporated was the setting up of a book
bank for girls from poor families. A
sum of Rs. 41.0 lacs has been allocated for this purpose.
-
Drawing
the attention to the women’s welfare fund which has been set up by the
central government a request was made to the state government to set up a
women’s welfare fund at the state level to help the rural poor women to
set up small enterprises of their own on the same lines as the central
government.
-
Landless
labourers form 11.54% of our total rural labour force.
Their situation continues to remain pathetic.
In view of this, we request you to announce certain schemes such as
social security for this particular under privileged group.
-
Small
and marginal farmers are one of the major sufferers of drought.
In view of this, we request you to announce certain insurance schemes
for their crops, and also provide for good quality seeds and fertilisers.
§
Resettlement of bonded labourers still remains a dream.
The government in a move in this direction had allotted Rs. 16.00 lakh in
the 1999-2000 and Rs. 2.00 lakh in 2000-01.
However, it has been noticed that only 6% in the year 1999-2000 and
nothing at all in 2000-01 was utilised for the resettlement of bonded labourers.
Among
the above suggestions made, we are happy to note that the allocations meant for
these target groups have been increased with targets clearly defined.
|
