Ministry seeks more for rural development

The rural development ministry wants a 30-50 per cent hike for itself in budgetary allocation this year. It is going to ask the finance ministry for a hike.

According to top sources in the ministry, the department has calculated that it needs Rs 32,000 to Rs 40,000 crore if its programmes are to be implemented smoothly.

"Our previous year's budget was Rs 24,000 crore, with Bharat Nirman being principally our responsibility. This year, the added burden of running the national rural employment guarantee programme in 200 districts of the country also remains, which means that more resources are required," said a top source in the ministry.

"Which other ministry in the current regime has these many social obligations? So, why don't we deserve a more generous budget?" said the source.

Sources in the finance ministry say that Budget-related meetings with Finance Minister P Chidambaram are set to begin after January 15. "Right now, talks are on at the secretary level. The ministerial-level talks will begin after January 15," said an official.

The last time round, Minister for Rural Development Raghuvansh Prasad Singh had had a run-in with Chidambaram and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia.

But finance ministry sources say this time, the rural development ministry may get an enhanced budgetary allocation, although not as much as it is seeking.