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LATEST NEWS UPDATES | Job scheme target cut belies hopes -Basant Kumar Mohanty

Job scheme target cut belies hopes -Basant Kumar Mohanty

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published Published on Apr 18, 2016   modified Modified on Apr 18, 2016
-The Telegraph

New Delhi: Projected work under the rural job guarantee scheme for 2016-17 is down 10 per cent after a rare boost in the last financial year, suggesting a tightening of the purse strings following a year of heavy expenditure on the programme.

The rural development ministry has approved the generation of 217 crore person-days of work under the Mahatma Gandhi National Rural Employment Guarantee Act, following last year's approval for 239.1 crore person-days.

Yearly drops in work projection have been the norm even under the rule of the UPA, which introduced the programme, but last year had witnessed one of just two exceptions to the trend - and the largest rise in projections so far.

What's more, 2015-16 had seen a huge jump in the actual work generated - from 166 crore to 228 crore person-days -- suggesting a healthy demand, among other factors. (The actual figure has always been substantially lower than the projected figure because, activists say, neither the UPA nor the NDA released funds in time.)

This increase in the actual work done and the continuing drought conditions in many states had led to expectations of another hike in projected figures this year, social activist Nikhil Dey said. The disappointment has therefore been acute, and has been buttressed by perceptions of the NDA government's hostility to the scheme itself.

"The Centre arbitrarily reduced the projection because it wants to cut down spending on this scheme," Dey alleged.

He said the increased work generation last year had led to central arrears of Rs 12,000 crore, which had to be paid from this year's budget allocation of Rs 38,500 crore for the scheme, leaving only Rs 26,500 crore. Last year's allocation was Rs 34,700 crore.

Rural development ministry sources said the Centre fixes the scheme's target in every state on the basis of the state governments' projections.

For 2016-17, they said, the states' combined projections came to 314 crore person-days but an empowered committee of the ministry reduced the projection for every state to limit the national target to 217 crore person-days.

Economist Ravi Srivastava, who teaches at the Centre for the Study of Regional Development at Jawaharlal Nehru University, said that an increased spending on the rural job scheme was key to the country's economic growth.

He said the scheme enhanced rural consumption, enticing investors. "If people get cash, they would spend, helping the economy."

Srivastava said a reduced projection meant less funds for the scheme. "If the states want more money, they will not get it. In such a situation, the states will not take up work under the scheme, or the workers will have to wait for months for payment."

The NDA government has been critical of the scheme. Participating in a Lok Sabha debate last year, Prime Minister Narendra Modi had described the programme as a testimony to the previous government's failures.

At an event to celebrate the scheme in February, though, Union finance minister Arun Jaitley had promised to strengthen the programme since it boosts the rural economy.

In the last fiscal year, the average person-days generated per family participating in the scheme was 48 against 39.2 the previous year. Tripura scored the highest with 94.

Eastern states except Jharkhand (52) trailed the national average, with Bengal scoring 47, followed by Odisha and Bihar (both 45) and Assam (32).

Under the scheme, every rural household is guaranteed up to 100 days' paid work a year.

The Telegraph, 18 April, 2016, http://www.telegraphindia.com/1160418/jsp/nation/story_80737.jsp#.VxUCCzH3-hr


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