NREGA sees first cut but Food Security gets more

17 per cent reduction in budgetary outlay for UPAs flagship scheme; allocation for food Bill also remains inadequate

Caught between the mounting challenge of containing fiscal deficit and promises of welfare,Finance Minister Pranab Mukherjees budget sent a clear signal of controlling expenditure on welfare concessions in the form of NREGA doles and fuel and fertiliser subsidies to honour new political promises,and most prominently,the proposed food security legislation.

No wonder,Mukherjee assured in no uncertain terms to provide for the subsidy on food security from the exchequer without hesitating to slash the Central outlay for the UPAs flagship welfare scheme,NREGA,for the first time since its inception in 2006. This indicated the governments realisation of falling electoral benefits of the NREGA in the wake of reports of deficiencies in implementation and instances of widespread corruption.

The government has decided that from 2012-13,subsidies related to food and for administering the Food Security Act will be fully provided for, Mukherjee said.

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While administering about 17 per cent reduction in the budgetary outlay for the NREGA next fiscal,Mukherjee signalled the citizens to get ready for lesser fiscal concessions on fuel and fertiliser subsidies by saying that the exchequer will fund them only to an extent bearable to its finances.

The allocation for food security at Rs 75,000 crore is only Rs 2,177 crore more than the revised estimates for 2011-12. Experts,however,say that the government will have to provide at least an additional Rs 30,000 crore. Allocation for fertiliser and fuel subsidy,too,is short by over 9 per cent and over 36 per cent,respectively over the revised estimates for 2011-12. Given that the government has decontrolled petrol prices,farmers should expect to bear a higher fertiliser and diesel burden.

At the level of implementation,Mukherjee asserted that the government will contain the rising subsidy burden through Aadhar-linked beneficiary targeting to contain pilferages.

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