Jharkhand Government’s Budget–Analysis Of Its Key Highlights

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Analysis of Jharkhand’s Budget is proving to be a rather difficult job, as we try to make sense of some of the announcements made in the budget with respect to the past records of the financial management of Jharkhand Government and their impact on Jharkhandi residents, especially the people who belong to economically weaker sections and have very little say on the economic issues.

So we have divided the numerous announcements and initiatives not taken made into three separate groups along with the rationale behind each of them falling into that particular group.

The Good : Budget For FY 2012-13


1 Farmers would get Rs. 2 discount per litre on Diesel and now only 2 % tax on Kerosene At least Farmers have something to cheer for, hopefully corruption won’t affect it.
2 Tax on Tobacco production increased from 14% to 20%    Good steps to raise revenue and discourage unhealthy smoking habit
3 Ranchi would get 50 bed Cancer Hospital,  Research Centre & Genetic Wing,   Welcome step, hopefully these proposals would see light of day and actually be finished.
4 Knowledge Centre in Khunti
5 National Sports University at Hotwar

As promised in the earlier budget by Jharkhand Government, the 500 bed Hospital and Medical Colleges to be established in Dumka and Kharsawan are yet to be completed.

The Bad : Budget For FY 2012-13


1 Any kind of statements on New Industrial Policy is missing Industrial policy and investment on same seemed to be low on priority.
2 Agriculturists were again ignored, farmers need irrigation, electricity, cold-storages, etc Govt. Ignoring nearly 70% of Jharkhand’ s population, who are engaged in agriculture
3 Higher Education Facilities, esp. Technical Institutes being uncared for once again Large scale migration of students can be stopped only by setting quality educational facilities in the state, but it is still being ignored. Results in loss of exchequer.
4 Revenue Generation in the state is still going to be a challenging task Govt lacks political will and imaginations to increase its revenue, to take care of expenses
5 Once again large amount of budgeted funds would remain un-spent and surrendered Government needs better financial management of its budgeted funds.

Jharkhand Government is heavily dependent on Union Government for revenue generation, these needs to be changed as state needs to be both proactive and imaginative to raise revenue.

Besides, when the state Government makes it a standard practice to surrender large amount of funds by being unable to spend it as planned, then it is certainly a cause of great-concern.

The Ugly : Budget For FY 2012-13


1 In Maoist dominated state, Home Department gets only Rs. 150 crore How can state fight Maoism when it does not want to spend funds on modernization, training and buying of good weapons to keep the people safe?
2 Sports Stadiums would be established in every District, in fact every Block Each block in state needs Bizli, Panni and Sadak and not some fancy stadiums, wastage?
3 In 203 Blocks, establishment of Model Schools on line of Kendriya Vidhyalaya (Central School) Again large number of schools across state lack books, teachers, furniture, etc and now it again wants to establish new set of schools, wastage? First consolidate and then expand.
4 No special funds to take care of Rehabilitation and Resettlement (R&R) of the affected people   Government would do well to work on Rehabilitation and Resettlement (R & R) of numerous people who lost their homes because of variety of reasons.
5 Government Unable to implement its various Welfare and Development measures Delivery mechanism of various welfare and development measures should be improved

In a state where we see so many regular agitations by numerous small and big organizations across the state, for getting their promised R&R; we fail to understand why government does not take a sincere look into the matter. In addition, in the instances like the identification of the BPL Families, issuance of Ration Cards and various other welfare measures are afflicted with large-scale corruption; the Government could or should have a look at new kind of delivery mechanism that can actually work for the welfare of poor people.   

Don’t Understand : These Announcements


1 For BPL Families, Johar Yojana and Adarsh Grameen Awaas Yojana The wide-spread corruption in Indira Awaas Yojana (IAY) in Jharkhand should be checked instead of launching a brand new residential plan for BPL families.
2 10 Fresh Vegetable Stalls and 3 Mobile Vegetable Stalls will be started Government should concentrate on “Good-Governance” and not on selling vegetables.
3 Panchayat Headquarters would get computers Government would do well to first provide electricity in every Panchayats in the state
4 Yoga Centre costing Rs. 50 lakh to be established in Ranchi Fail to understand why Government would want to establish Yoga Centre, when we already far too many Yoga Guru ready to invest their own money on such centres
5 Entertainment Tax on Cinema Hall and Mutiplexes won’t be charged for a year In a revenue-deficit state, why should govt. not charge the entertainment like other states

There is a saying in the Jharkhand’s corridors of power that almost all the ministries (their ministers and others) are always too eager to look for any kind of opportunities to make a purchase and / or start a major construction project , viz., Sports Stadiums, Schools and Other Buildings, irrespective of fact whether Jharkhand really needs them or not.  As such proposals tend to make money for almost all the concerned people. But these are grapevine and we cannot either confirm it or deny it.

Jharkhand's Budget FY 2012-2013
Jharkhand’s Budget FY 2012-2013

We know that Jharkhand’s Budget proposals can not get rid of all the administrative and political ills of the coalition government; but at least the Budget could provide a good road-map for the coming year. However, we are once again disappointed with the same old financial jugglery done by the Jharkhand’s finance minister to please its coalition partners and fellow ministers rather than to serve the interest of Jharkhand and Jharkhandi people.

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Sameer Bhagat

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Social-Activist. Author of SALVAGING ADIDWEEP.


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