Thursday, March 25, 2010

Socialism is misconstrued

We still underutilise the allocation made for flagship programmes

The first Prime Minister, more known as the architect of modern India, Jawaharlal Nehru once said, “Socialism is... not only a way of life, but a certain scientific approach to social and economic problems.” How far the country justified imbibing socialism remains questionable but public expenditure became very popular with time, but without many successes though. India had poverty eradication, providing clean and safe drinking water and affordable housing facility as priorities in its first Five Year Plan, it is still fighting to achieve the same in its 13th Five Year Plan. Why so?

Well, the fact is that India has initiated innumerable flagship programmes. In fact, we have one of world’s biggest public expenditure programmes. The Central plan outlay for the year 2010-2011 is around Rs.415691 crore, good enough to face the current malaise for one year. But the problem is that a major portion of the allocations is underutilised. Data reveals a shocking reality. A total of Rs.12887 crore was allocated for the year 2009-10 for the most visionary Jawaharlal Nehru National Urban Renewal Mission while a mere Rs.3848 crore was actually spent which is merely 29.9 per cent of the total allocation when the country is still having urban housing shortage of over 25 million. Another Rs.8000 crore was allocated for the drinking water scheme, only Rs.3362 crore is spent, only 42 per cent of the allocated amount. Similarly, even in the case of one of the most imperative programmes, irrigation benefit programme, Rs.9700 crore was allocated but only Rs.3689 crore was actually invested, again 68 per cent of the fund remained underutilised. Even the Gramin VidyutiKaran Yojana is grossly underutilised by 42.8 per cent. More interestingly, the most hyped and popular programme, UPA led NREGA program which was intended to sort out the major problem of unemployment in rural India is 43 per cent underutilised. Surprisingly, a total of Rs.39100 crore was allocated for this scheme during the fiscal year 2009-10 where only Rs.22295 crore is actually spent. There is only one project where actual spending has crossed the allocation. The PM Gram Sadak Yojana, while Rs.12000 crore had been allocated for this, around Rs.13045 crore is spent, making 108.7 per cent of the allocation. About 40 per cent of funds allocated for flagship programmes, remain unused every year, which if used properly can bring a major infrastructural and social shift.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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