There were tears in my eyes even before I completed reading P Sainath’s article on the budget 2010-11. The article is a satirical piece accusing the budget as pro corporate and pro agribusiness friendly in the garb of a farmer friendly and aam admi’s budget. I do not fully attach myself with the tone of the article, though I realize that many of the budget proposals meant for the common man are not going to make substantial change on the ground.
I do not deem myself competent to comment conclusively on the budget. I do not want to become a leftist nor a socialist condemning all the government’s actions as anti poor. I have strong appreciation for the present political brass in power (Manmohan, Pranabda, Chidambaram etc.) that they are seriously committed to alleviating the suffering of the poor. But, I also realize that the budget proposals are essentially driven by the corporate world that have well funded representative institutions like FICCI, CII, ASSOCAM etc. I think it is natural that when the industry and services sector contribute 85 % of the GDP, their say is more heard than the farmers who are geographically spread, unorganized and ignorant mostly.
I am not anti-corporate asking for more role for the government restricting the activities and scope of the private sector. But, within the limited role of an enabler and a facilitator that the government wants to play, what shall it do? Kurien also wrote that the best government is one which governs the least and simply places the instruments of development in the hands of the people and creates such structures that they can command.
Even the budget speech mentions about the need for effective and reformed public service delivery, improved rural infrastructure so that opportunities are created more firmly. But, are the allocations and the schemes likely to deliver? I was happy to note the increased allocations for MNREGA (40,100 crores), Bharat Nirman (48,000 crores), BRGF (7,300 crores) etc. But, I was also aghast to read that RD ministry wants to build Rajiv Gandhi Sewa Kendras in all the 2.75 lakh panchayats with the money meant for MNREGA. When social activists opposed construction of buildings with the money for creation of labour, RD ministry decided to take the material component from BRGF (Backward Region Grant Fund).
What will the new buildings in the villages transform the rural sector and agriculture? Do not villagers presently have places congregate if they are serious to meet? These buildings each costing 10 lakhs at the village level (totaling 30,000 crores expenditure) are sure shot means of commission for the local contractors, block officials, the panchayat members. Effectively it implies that MNREGA funds will not create any tangible future revenue except creating some demand for cement, steel etc.
Media, PM, RBI, finance minister are everyday concerned about the growth rate figures. Some say 7.2 % and others are optimistic about 7.5 %. Few others are gung ho about even 8 %. I am not critical about the industry or the service sector. I only want to point out that agriculture which employs 55 % of the work force shrank by 0.2 % when other sectors are growing around 10 %. So, what stimulus package we have for agriculture? The government was ready to forego more than 2 lakh crores as taxes to bring industry on the track of growth again. In the present budget, FM proposed 400 crores for green revolution in Eastern India, 300 crores for organizing 60,000 oilseeds and pulses villages and 200 crores for stabilizing the earlier green revolution benefits, 100 crores for the Mahila Kisan Shaktikaran Pariyojana.
The intentions are good. But what will these 1000 crores transform the ailing agriculture except for covering the staff cost, their TA and DA? Finance minister prayed for the good wishes of God Indra and allocated a mere 11,500 crores for the Accelerated Irrigation Benefit Programme when A.P. government allocated more than 15,000 crores for irrigation projects and still found them insufficient to complete the ongoing projects in the next decade. The burden of credit delivery to the farmers is given to the public sector banks who keep sanctioning either tractors or warehouses for the local bania in the name of priority sector lending and forget the small farmers. I am not antithetical to private sector participation in agriculture or in retail trade. We need cold storages, processing facilities, warehouses so that value addition takes place in agriculture. But, do not we need to do something more to help the small farmer who faces multiple problems battling with the rain God, costly and unreliable inputs, uncertain market prices and finally soaring prices when goes to purchase the same items.
The allocation for Bundelkhand region is increased by 1200 more crores. But, I am at a loss to imagine how this money can be utilized to mitigate the present misery and at the same time ensure future revenue streams. Water harvesting structures and land reclamation are definitely better than cement roads and community buildings. What goods and services can be produced in villages which can fetch value in urban centers? How to organize rural producers so that they get due share in the value chain by embarking on functions apart from production? How to use the upcoming R & D and technological revolutions for the benefit of the rural masses? I only have lot of questions and not many answers.
I am still hopeful and optimistic about the present system. The government has already come up with RTI, Right to work under MNREGA, Right to education and now talks about Right to food. It has started the National Social Security Fund with 1000 crores for the workers in the unorganized sector. Let us all work together to go beyond rhetoric and token gestures.
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