Irrigation gets the cash bags in new Budget

Hyderabad: The state government’s focus on the irrigation projects has resulted in all other departments getting shock after shock as the annual Budget preparation exercise gathers pace. The finance department had last week initiated the Budget preparation exercise by convening meetings with officials of various departments.

With Chief Minister K. Chandrasekhar Rao giving specific directions to the finance department to allot Rs 25,000 crore for irrigation projects alone in the new Budget, only meagre funds are available for all other departments.

In 2014-15, Rs 6,500 crore was allotted to irrigation and Rs 8,500 crore in 2015-16. The directive to allot Rs 25,000 crore to irrigation, amounts to an almost three-fold increase, unheard of for any sector. In 2015-16, though the government presented a jumbo Budget of over Rs 1.15-lakh crore, the Plan Budget was only Rs 52,383 crore.

Even for 2014-15, though the Budget was Rs 1.06-lakh crore, the Plan Budget was only Rs 48,648 crore. Going by this, the Plan Budget for 2016-17 is expected to be by and large similar to previous years. This would mean 50 per cent of the Plan Budget would go to irrigation sector alone and the rest of the departments would have to “adjust” with the remaining.

Ministers and officials approaching finance department with latest Budget proposals seeking enhancement of funds over last year are being told to cut down their proposals as it would not be possible even to allot the same amount allotted last year.

Implementation of social welfare schemes, fee reimbursement, scholarships etc face a crisis on account of too much priority being given to irrigation projects. The government already owes Rs 4,000 crore in fee arrears. Last week, the agriculture minister and officials were in for a rude shock after they were asked to cut down proposals.

“We had sought 20 per cent hike over last year. Finance officials told us to either submit old proposals or if possible, seek lesser funds than last year, but not ask for more,” said an agriculture official.

Similar instructions were issued to all other departments. Even the finance officials are feeling the pinch unable to find ways and means over how to adjust the remaining 50 per cent of the Budget to all the other departments.

“This year’s Budget preparation is posing a tough challenge for our department. We were asked to strike a balance between irrigation projects and welfare schemes, but the available resources are not allowing us to do that,” said a finance official.

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