Jharkhand's Budget FY 2012-2013

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

Now we shall look into the budget presented by the Jharkhand Government, to find out the details about the proposed Revenue Expenditure (or proposed Rupee spent) in the budget.

Details of Revenue Expenditure

 

Particulars

% of Total Expenditure (approx.)

Remarks

1 Education

16.93 %

Need to get rid of wide-spread corruption, to improve quality of education in the state.
2 General Services, Legislature & Other Services

10.91 %

 

3 Social Security

10.25 %

 

4 Rural Development

8.81 %

Maybe it should get more funds, but only if it gets rid of wide-spread corruption.
5 Public Works & Transport

7.73 %

 

6 Interest Payment

6.56 %

Area of concern should try to reduce this.
7 Irrigation

6.41 %

Definitely it should get more funds, but only it gets rid of wide-spread corruption.
8 Pension Payment

6.00 %

 

9 Public Debt Repayment

4.38 %

Area of concern should try to reduce this.
10 Medical, Public Health

3.97 %

Definitely it should get more funds, but only it gets rid of wide-spread corruption.
11 Agriculture & Allied Activities

3.41 %

We wonder why Agriculture Sector languishes at the bottom and farmers are treated in step-brotherly way. Despite the fact that it sustain majority of Jharkhandi population.
12 Mines & Industries

2.48 %

Mines and Industries could become key drivers of economic growth, but they too remain low on priority of the budget.
13 Others

12.16 %

In Jharkhand, we live in interesting times, where according to grapevine the allocation in a Budget (or the quantum of fund allocation for Revenue Expenditure) to a ministry is directly determined by the clout of a political party (s) or an individual (s), who is in-charge of the said ministry. As a result, in the current budget, we have the following scenario of fund distribution in the current budget:

Political parties In A Coalition

No. of Ministers

Names

1 Bhartiya Janta Party (BJP)

4 Ministers

Arjun Munda (C.M.)

Baidyanath Ram

Bimla Pradhan

Satyanand Jha Batul

2 Jharkhand Mukti Morcha (JMM)

5 Ministers

Hemant Soren (Dy. C.M.)

Hemlal Murmu

Hazi Hussain Ansari

Champai Soren

Mathura Prasad Mahto

3 All Jharkhand Student Union (AJSU)

2 Ministers

Sudesh K. Mahto (Dy. C.M.)

Chandra Prakash Choudhary

4 Janta Dal (United)

1 Minister

Gopal Krishan Patar

Now let us have a look their ministerial portfolios in more details, to understand the allocation of funds mentioned herein and their distribution among the key ministries for the FY 2012-13.

(Rupees in Crore)

Name

Ministry (Social Services)

Amount

1 Sudesh K. Mahto Sports, Art & Culture Minister

6149.13

Baidyanath Ram Education Minister
2 Bimla Pradhan Social Welfare & Nutrition

2464.80

3 Hemlal Murmu Health & Family Welfare

1119.31

4 Hemant Soren Water Supply, Sanitation, , Housing & Urban Development

810.91

5 Hazi Hussain Ansari SCs & Other Backward Classes’ Welfare

763.56

6 Champai Soren STs Welfare

229.19

7 Chandraprakash Choudhary Labour & Labour Welfare

50.19

8 Arjun Munda Information & Broadcasting

24.17

Jharkhand, being an economically underdeveloped state with about 40% of its population lying below poverty line (BPL), isn’t it really criminal to allocate so much funds for Sports, Art & Culture, more so when you do not see the impact of this expenditure, on the ground.

(Rupees in Crore)

Summary of Social Services

2010-2011

Actual

2011-2012

Budget Estimate

2011-2012

Revised Estimate

2012-2013

Budget Estimate

% Increase over previous year

1 Education, Sports, Art & Culture

3802.26

5116.54

5169.58

6149.13

19%

2 Social Welfare & Nutrition

1177.95

1753.27

1998.67

2464.80

23%

3 Health & Family Welfare

673.92

1101.49

1101.92

1119.31

1.55%

4 Water Supply, Sanitation, Housing & Urban Development

437.48

511.33

560.62

810.91

44%

5 SCs’  & OBCs’ Welfare

436.33

748.63

827.64

763.56

Negative

6 Labour & Labour Welfare

133.74

223.77

202.73

229.19

13%

7 Information & Broadcasting

28.14

46.76

58.00

50.19

Negative

8 Others

17.48

22.60

23.59

24.19

N/A

Sub-total

6707.30

9524.39

9942.75

11611.28

N/A

In Jharkhand, where more than half of its population live in rural areas and do not have access to quality health-care; it is  ludicrous to see that its fund allocation has seen only 1.55% increase.

Now let us take a look at funds allocated to ministries handling economic services:

(Rupees in Crore)

Name

Ministry (Economic  Services)

Amount

1 Sudesh K. Mahto Rural Development

2305.84

2 Arjun Munda Energy

1521.85

3 Satyanand Jha Batul Agriculture & Allied Activities

1232.70

4 Champai Soren Transport

919.70

5 Sudesh K. Mahto Irrigation & Flood Control

388.24

6 Arjun Munda Industry

265.62

Hemant Soren Mines
7 Arjun Munda General Economic Services

998.69

 

The details of the Revenue Expenditure for economic services are as under:

(Rupees in Crore)

Summary of Economic Services

2010-2011

Actual

2011-2012

Budget Estimate

2011-2012

Revised Estimate

2012-2013

Budget Estimate

% Increase over previous year

1 Rural Development

1678.27

2083.94

2051.27

2305.84

12%

2 Energy

535.16

1056.94

869.83

1521.85

75%

3 Agriculture & Allied Activities

820.99

1185.03

1262.74

1232.70

Negative

4 Transport

202.27

839.88

1076.85

919.70

Negative

5 Irrigation & Flood Control

264.09

382.80

382.95

388.24

1.38%

6 Industry & Mines

125.80

249.58

230.49

265.62

15%

7 General Economic Services

619.84

847.97

1107.11

998.69

Negative

Sub-total

4246.46

6646.17

6981.28

7632.66

 

It is really ironically that in Jharkhand where 75% of its population are dependent on Agriculture and Allied Activities, the Jharkhand Government actually reduces its allocation. Also the allocation to Irrigation and Flood Control that directly affects agricultural productivity only has miniscule (1.38 %) increase over the previous year figures.

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

No doubt the Jharkhand continues to grapple with the problem of wide-spread-poverty, Maoism, large scale migration from rural areas, even human-trafficking, etc.

Even the General Economic Services shows negative growth.

And the claims of Finance Minister on rural and agriculture development seems to be bundle of lies and should be taken with pinch of salt.

Now let us take a look at all types the deficits related to the Jharkhand’s budget and that needs attention, so that it does not become a cause of concern in coming years.

(Rs. In Crore)

 

Particulars

2010-2011

Actual

2011-2012

Budget Estimate

2011-2012

Revised Estimate

2012-2013

Budget Estimate

11 Revenue Deficit (10a-1)

-836.39

-3708.39

-597.17

-4625.02

 

% of GSDP

-0.67%

-2.99%

-0.48%

-3.32%

12 Effective Revenue Deficit (11-9b)

-836.39

-3832.71

-879.13

-6433.90

 

% of GSDP

-0.67%

-2.78%

-0.64%

-4.61%

13 Fiscal Deficit {10-(1+4a+4b+8a+8b)}

2111.36

3938.24

4051.79

3005.26

 

% of GSDP

1.70%

2.85%

2.94%

2.15%

14 Primary Deficit (13-7a)

-116.18

1543.37

1647.66

570.68

 

% of GSDP

-0.09%

1.12%

1.19%

0.41%

The deficits (Revenue and others) actual and revised falls way short of the Budgeted Estimate, only because the Jharkhand Government is unable to spend substantial portion of its allocated budgeted funds. It is imperative that Jharkhand Government should focus most of its energies in making a dent into the poverty behemoth.

But as usual it has been noticed that most of the Budgeted funds meant for development and welfare schemes in the state is either not been spent or whatever little quantity of fund is actually spent, that too does not reach the needy people. As these funds spent is marred by very high incidents of “corruption” at all levels. Thereby this corruption adversely affects the implementations of various government schemes and programmes in the state.

With a result, Jharkhand continues to lag behind in the economic growth and Jharkhandi people carry on suffering due to short-sighted and corrupt political and bureaucratic leadership.

Sameer Bhagat
Join me

Sameer Bhagat

Author, Salvaging Adidweep.
Sameer Bhagat
Join me
Sameer Bhagat

Written by

Author, Salvaging Adidweep.

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