A mechanism for ensuring an intensive review of schemes including the National Rural Employment Guarantee Program (NREGP) will be set up by the central and state governments, while the UPA government has decided to provide a fresh impetus to the National Social Assistance Program (NSAP) and other employment-oriented schemes such as the Indira Awas Yojna (IAY).
The country's economy is at an uncertain stage and banks are averse to lending, but the government is taking all measures possible to remove procedural bottlenecks for maintaining the pace of growth, Cabinet Secretary KM Chandrashekhar said after a daylong meeting of Chief Secretaries of states and union territories convened at New Delhi on Saturday. The meeting was convened to discuss implementation of the economic stimulus measures lately announced by Prime Minister Manmohan Singh- with a view to tide over the adverse impact of the global meltdown scenario.
For ensuring that developmental schemes are translated into tangible activity on the ground and actually benefit the people, the government might initiate non-fiscal measures, Chandrashekhar said, while adding that the RBI needed to function in a 'calibrated manner' for ensuring a liquidity flow.
Over past months, the government has taken numerous steps including the decision to provide additional budgetary allocation of Rs.20, 000 crore to the state governments for major schemes during the current financial year. The RBI has also taken several initiatives relating to monetary and credit policy.
At Saturday's meeting, chief secretaries of states are understood to have pushed in for a greater flow of funds from the center, while also demanding a relaxation in norms in the release of funds at least for one year. The states also pleaded for additional grants to meet the anticipated expenditure on account of the implementation of the 6th Pay Commission's recommendations, while also seeking greater flexibility under the Fiscal Responsibility and Budgetary Management Act to facilitate greater spending required for providing necessary stimulus to the economic activity.