Haggling over jobs Bill

Hard bargaining between the rural development ministry and the finance ministry at last night's Cabinet meeting delayed a decision on the contours of the Rural Employment Guarantee Bill, 2005.

The main stumbling block was the finance ministry's insistence that state government's contribute 10 per cent of material costs towards the scheme, and also the retention of the "switch-on switch-off" clause in the Bill. This means the government can stop or start a scheme anytime anywhere.

The Bill was finally cleared after a long meeting of secretaries this afternoon.

According to top sources in the government, the two ministries arrived at a quid pro quo on the Bill, this morning. "A group of ministers set up for the Bill held the view that states' contribution should be nil or at least reduced to 7.5 per cent of total material costs," said a senior minister.

The bargain that was struck this morning meant that the finance ministry would drop the demand for the "switch-on, switch-off" clause and the rural development ministry would agree to the enhanced state contribution, he added.

Scarcely had this controversy been sorted out that the ministry of panchayati raj asked for the enshrinement of the role of panchayati raj institutions as the central implementing authority of the rural employment scheme.

The law ministry and the rural development ministry then debated whether the phrase "central role", suggested by UPA chairperson Sonia Gandhi, or "principal role" be included. It was decided to include the latter.

At today's Cabinet meeting, too, several ministers, led by Water Resources Minister PP Dasmunshi said putting too much power in the hands of the PRIs would also be a problem. But, since the move had the blessings of Gandhi, the differences were sunk.

Even in the Bill's present form, state governments are going to have a problem. Most states cannot afford to pay even 10 per cent for the scheme.

This was the basis of the difference of opinion between the finance ministry and the rural development ministry, prompting Rural Development Minister RP Singh to call Finance Minister P Chidambaram "anti-poor" and "anti-rural".