Jharkhand has pulled off a remarkable turnaround in funds utilisation for the Centre’s flagship rural employment scheme, spending around Rs 500 crore in just over four months after September 2009 when it was pulled up by the MGNREGS director in New Delhi for poor implementation. Of Rs 1,600 crore allocated so far to the state under the Mahatma Gandhi National Rural Employment Scheme for the current fiscal (April 2009 to...

The government is likely to increase the plan allocation for government schemes by 15 per cent to Rs 3.73 lakh crore during 2010-11. Finance minister Pranab Mukherjee and Planning Commission deputy chairman Montek Singh Ahluwalia today held discussions on plan allocations amid demand for higher support from various ministries. Sources in the North Block said the finance ministry could agree to allocate a modest Rs 3.73 lakh crore of the gross budgetary...

The Planning Commission, the country’s apex planning body, is gradually reconciling to the fact that there would be no large gains in the gross budgetary support (GBS) in budget 2010-11, as the government struggles to reduce fiscal deficit. GBS is the money the Union government allocates to various government programmes through the Union budget. “The major objective of the finance ministry is to bring down the fiscal deficit from 6.8% of...

Right time for policy reform The government is set to face disappointment on its expectation that the fertiliser subsidy will go down sharply this year due to a softening of international prices of fertilisers. It now appears almost certain that the total payable subsidy in 2009-10 may be around Rs 70,000 crore, against the budgetary provision of under Rs 50,000 crore. Since the government has made it clear that no additional...

Privatisation is no panacea when it comes to education. Nor can high-cost intervention at the tertiary stage produce quality talent. The back-bone of quality education is primary schooling. And improving that is not just a question of funding, even if the government does muster courage to raise expenditure on education from the present about 3% of GDP to the promised 6% of GDP. Granted, the UPA did raise this ratio...