Jharkhand’s Budget Analysis, Focus Is On Uses Of Funds (Part-I)

In the last decade or so, successive Jharkhand Governments have been notorious for their inability to perform either of two important function of a good-governance:

  • honestly implement the various plans and programmes mentioned in its own budget, or
  • to actually spend the funds budgeted (allocated) for its welfare and development plans.

Yet, at the beginning of each financial year, as per established custom  Jharkhand Government comes out with its so-called Grand Budget (vision), only to fall way-short during the closing month(s) of the financial year by being unable to honestly utilize the funds. Most of the time, the budgeted fund remains not utilized and do not actually reach its original destination.

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

Had in the last decade the successive Jharkhand Government utilized its budgeted allocation properly, Jharkhand state and Jharkhandi people would have been in much better position.

Let us begin by taking a look at the uses of funds proposed by the Jharkhand’s budget,

 (Rs. In Crore)

 

USES OF FUNDS

 

 

Particulars

2010-2011

Actual

2011-2012

Budget Estimate

2011-2012

Revised Estimate

2012-2013

Budget Estimate

6 Non-Plan Expenditure

13420.52

16096.77

16904.06

18404.13

7 On Revenue Account Of Which

11940.92

14621.12

15310.37

16547.46

  (a) Interest Payments

2227.54

2394.87

2404.13

2434.58

  (b) Salary

5433.93

7052.96

7110.39

7763.92

  (c) Pension

2081.10

2096.09

2096.09

2227.75

8 On Capital Account Of Which

1479.60

1475.65

1593.69

1856.67

  (a) Internal Debt of the State

1063.18

1263.09

1279.37

1482.41

  (b) Loans & Advances From GOI

236.25

140.09

140.09

144.65

  (c) Capital Expenditure

43.33

43.70

48.76

65.00

  (d) Loans & Advances

136.84

28.77

125.47

164.61

9 Plan Expenditure

8795.51

17024.93

14415.95

18709.67

  (a) On Revenue Account

6003.81

9416.65

9887.05

11253.09

  (b) Grants for creation of Capital Assets

0.00

124.32

281.96

1808.88

  (c) On Capital Account

2791.70

7608.28

4528.90

7456.58

10 Total Expenditure (6+9)

22216.03

33121.70

31320.01

37113.80

  (a) Revenue Expenditure (7+9a)

17944.73

240377.77

25197.42

27800.55

  (b) Capital Expenditure (8+9b)

4271.30

9083.93

6122.59

9313.25

As we can see that the “Interest Payments” (on the various loans taken by Jharkhand Government) and the “Internal Debt of the State” constituent major outflow of State Government’s funds.

The Jharkhand Government would do well to reduce both these heads in the coming years or else the debt-burden would pose a major problem in future.

What Does Latest Economic Survey Of Jharkhand Tells Us?

The major portion of Jharkhand’s budget funds and the associated government policies (including subsidies and taxes) should reflect the areas of concerns / deficiencies pointed out in the Jharkhand’s economic survey. The following table highlights the key areas of concern that needs immediate attention to make lives of common Jharkhandi people, viz., Education Sector, Health Sector, Employment Generation,   Agriculture Sector, etc.

EDUCATION

Figures

Remarks

1 Literacy Rate

67.63%

Need to Focus on both quality and quality of education to be competitive.
2 Enrolment Rate

97.29%

3 Drop Out Rate

61.71%

Take steps to reduce high drop-out rates.
4 No. of Engineering Colleges

3

State needs more Engineering colleges.
5 No. of Medical Colleges

3

State needs more Medical colleges.

HEALTH

Figures

Remarks

1 No. of District Hospitals

21

State has severe shortage of Doctors, Nurses, Hospitals and Health-Centres across the state. Good health services are inaccessible to poor sections of society.
2 No. of Sub-Divisional Hospitals

15

3 No. of Referral Hospitals

32

EMPLOYMENT

(In Lakh)

Remarks

1 Total Workers

101.09

Percentage of total population (37.63%)
2 Cultivators & Agricultural Workers

67.41

High percentage (66.68%) shows that state need to educate and shift labour to other sectors like services and manufacturing.
3 Home Industry Workers

4.81

Low percentage (0.04%) means it could employ more workers, if backed by Govt.
We could not find the figures on Unemployment and forced migration of people from state.

AGRICULTURE

Figures

Remarks

1 Agriculture Land

29.00 lakh ha.

Agriculture land is about 38% of total land
2 Net Sown Area

23.62 lakh ha.

Net sown area is about 23%.
3 Irrigated Land

3.00 lakh ha.

Only 13% of agriculture land is irrigated. Need more irrigation facilities for the farmers.

INDUSTRIES & ALLIED SECTORS

1 Mineral Endowment of Total India’s Mineral Although 37% of India’s minerals come from state, the royalty figure should be looked into
2 No. of Mega Industries

32

Often the Greater Industrialization of Jharkhand to achieve higher level of Economic Development is cited as a mantra. But in seems various industrial units together employ only few lakh people. It is time to seek to boost the development of labour intensive industries, like agriculture, small scale industries and service sectors.
3 No. of large & Medium Industries

399

4 Employment in Large & Medium Industries

77,295

5 Employment in Micro & Small Industries

1,40,323

INFRASTRUCTURE-Electricity
1 No. of Villages Energized

21748

Only 66% of villages have been energized, although this figure too seemed to be high.
INFRASTRUCTURE-Roads
1 Villages having access to all weather roads Only 36% of villages have access, it’s a focus area.
2 Villages having access to all metal roads Only 25% of villages have access, it’s a focus area.
INFRASTRUCTURE-Others
1 Airports

1

Lots of work needs to be done, as far as creating basic infrastructure in the state is concerned. So the infrastructure development should be a priority in Jharkhand.
2 Telephone Exchange

337

3 Post Office

3091

4 Bank’s Branches

2181

Those were few of the key concern areas that were culled from Jharkhand’s economic survey. Now let us look at what the Budget presented by Jharkhand’s finance minister spelled out, one by one.

Sameer Bhagat
Join me

Sameer Bhagat

Author, Salvaging Adidweep.
Sameer Bhagat
Join me
Sameer Bhagat

Written by

Author, Salvaging Adidweep.

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