POLITICAL POTPOURRI

IF CHIEF Minister Mulayam Singh Yadav were to make a wish, he would probably ask for matching achievements of his government of 2005-2006 on the financial front with political and administrative ones in 2006-2007, to offer an election bonanza. A beginning in this regard has been made. A number of populist announcements have already been made in the annual budget for 2006-2007. The State Government, however, faces major challenges, as the Chief Minister continues to make more populist announcements day after day distributing lollypops and announcing packages for different regions.

Fiscal strength + dollops of sops + election year

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IF CHIEF Minister Mulayam Singh Yadav were to make a wish, he would probably ask for matching achievements of his government of 2005-2006 on the financial front with political and administrative ones in 2006-2007, to offer an election bonanza.

A beginning in this regard has been made. A number of populist announcements have already been made in the annual budget for 2006-2007. The State Government, however, faces major challenges, as the Chief Minister continues to make more populist announcements day after day distributing lollypops and announcing packages for different regions.

This is probably in the backdrop of financial achievements that the Chief Minister carried out a major reshuffle in the top brass of the bureaucracy. With one stroke of the pen, the Chief Minister shifted the Chief Secretary, DGP, APC, Principal Secretary Home, ADG Law and Order and top officers of the State Government on April 3. This coincided with the State Government’s functioning in the new financial year, with most of the major offices remaining closed on first two days (they being Saturday and Sunday).

DGP Bua Singh too has expressed similar sentiments. Bringing a perceptible change in the law and order situation was on the top of his priority list, said Bua Singh. “I have the mandate of the government to improve the situation. I wouldn’t go by crime data but would ensure that there was a distinct change in people’s perception about the law and order situation,” he said.

So the State Government can’t afford to be lax. Besides payment of “unemployment allowance” to graduates and postgraduates registered with employment exchanges on February 28, 2006 mobilising, additional resources to fund the annual plan and keeping up the growth rate would be among the major challenges that the State Government would face in the current financial year.

The State Government also proposes to come out of revenue deficit generating a revenue surplus of Rs 1123.17 crore in 2006-2007. Funds have to be provided to implement new schemes incorporated in the budget. So is the State Government sounding too optimistic in the otherwise gloomy fiscal scenario that has prevailed in the state over the years? This is the million-dollar question that remains to be answered in the days to come.

As the state budget has been passed well in time the Principal Secretary Finance Shekhar Agarwal has issued a five-page order asking officers to ensure that funds were made available to various departments well in time and the work at the ground level commenced immediately. Agarwal said the idea was to utilise the first three months of the financial year to begin implementation of projects before monsoon. This would ensure that large funds were evenly disbursed and made available to departments to carry out development work, said Agarwal.

At the same time the disbursement of the scholarships and the funds under the Kanya Vidya Dhan scheme, Kisan Pension Scheme, Balika Sri Scheme etc. would be made available at the beginning of the year to ensure that the funds reached the beneficiaries well in time, he said adding by ensuring timely disbursement of funds the State Government proposed to derive full advantage of a large plan size.

Much significance is being attached to the State Government’s move to ensure timely disbursement of funds. This would help the State Government in percolating the message that UP was back on the path of development say observers. As flow of funds remains unhindered the mood in corridors of power is upbeat. So is the mood in the political circles. Chief Minister Mulayam Singh Yadav has time and again asserted that Vidhan Sabha polls would be held only when they are due. Yet at frequent intervals he has called upon partymen to get ready for polls and ensure that Samajwadi Party got an absolute majority this time.

Chief Minister’s assertions have more meaning than meets the eye. There have been allegations that the beneficiaries of the State Government’s schemes were being selected on political considerations and the Samajwadi Party would obviously like to derive political mileage out of unfolding situation. And elections would be held only when the Chief Minister was assured that it was time to reap the harvest that he and his government had sown obviously with government funds. Hence percolating the benefits to the ground level too, remains a major challenge.

If the achievements of 2005-2006 give any indication the State Government would only have to take a step forward to go further on the path of development.

Take a look at the achievements of previous year. According to Principal Secretary Finance Shekhar Agarwal the State Government has exceeded its targets in 2006-2007. This is for the first time that the State Government performed so well. Giving statistics Agarwal said the State Government’s tax revenue went up to Rs 19606 crore against a target of Rs 19404 crore in 2005-2006. This is also 23.5 percent higher than the figures of the previous year. At the same time the non-tax revenue went up to from Rs 2471 crore against a target of Rs 2247 crore, he said adding this was 22.1 percent higher than the previous year’s figures.

The State Government’s plan expenditure went up to Rs 14,190 crore against the plan outlay of Rs 13500 crore that the Planning Commission had approved for 2005-2006. This is against the plan expenditure of Rs 9535 crore in 2004-2005.

A massive plan of Rs 19000 crore has been approved for 2006-2007 and providing resources would be a major challenge this year, said Agarwal. Target of stamps and registration department has gone up to 109 percent, he said adding this was 19 percent more than the previous year. Trade tax revenue too has gone up by 27.9 percent, he said. Replying to a question Agarwal said the State Government did not propose to increase taxes in the current year. So how will it achieve targets to fund the annual plan. “We will do it through better administration and rationalisation of taxes,” said Agarwal.

More thought for farmers
M Hasan

With a massive shortfall in water level in major rivers in the UP, the State is fast heading towards a summer of discontent. In the election year, the shortage of water for irrigation for farmers certainly doesn’t augur well for the government.

In February 2005, the availability of water in river Ganga was 10,510 cusec, which had come down 7035 cusec this year. In river Yamuna water flow has decreased from 3340 cusec to 2969 cusec. In Sharda the downfall was from 6359 cusec to 4379 cusec. In Ghaghra the level has come down from 12335 to 11,100 cusec and in Gandak the level has receded from 11700 to 9500 cusec during the last one year.

The scenario is frightening in all the major rivers the state. The Secretary Irrigation AK Singh told Hindustan Times that situation in the rivers was not good.

In view of improving irrigation facilities to keep the farmers in good humour the government has made a provision of Rs 2400 crore in annual budget 2006-07 which is Rs 500 crore more than previous year. Singh said while taking up new projects priority had been given to complete long pending schemes like Saryu and Bansagar schemes. He said modernization of Agra canal, which provides drinking water to the Taj City was also being undertaken. Though there has been consistent rise in budgetary allocation of the department, it failed to meet the demands of the farmers. Always there is cry of “no water at tail-end”. The state had been receiving 2200 cusec water from Bhagirathi but after the river’s diversion to Tehri dam the supply has come down to 1000 cusec.

The State Government has made provision of Rs 277 crore in expansion and strengthening of irrigation system in current fiscal year. Similarly, for flood relief and stream diversion the government has provided Rs 100 crore and Rs 86 crore dams.

Roads, power set to improve?

Rajesh Kumar Singh

With bad roads all around, the State Government has allocated Rs 5057 crore for the PWD department, which is 70 per cent more than the last year’s allocation of Rs 2991 crore.

Similarly moves are afoot to improve the power situation in the State. On the PWD front, the government has planned renovation of 6300 km road and special attention would be paid on the maintenance of the 6000 km roads on which Rs 1435 crore would be spent.

The government has also proposed Rs 444 crore for up- gradation of 600 km State highways. Under the current fiscal Rs 1432 crore have been allocated for link roads connecting the rural areas. There is also provision of Rs 44 crore for the construction of roads in naxalite affected districts of Chandulai, Ghazipur, Mirzapur, Sonebhadra and Ballia.

In order to improve the energy situation, the government has chalked out a plan of 7000 megawatt from private sectors. In order to improve the availability of power under current fiscal year there was plan of five new projects and expansion of some units. The government has allocated Rs 233 crore for these schemes.