Move to abolish special fund hits Oppn roadblock

FROM THE ASSEMBLY

The Opposition parties led by former finance minister and BJP leader Eknath Khadse have successfully stalled the state government's move to merge special reserve fund created for the rural job guarantee scheme with the consolidated fund.

A fresh proposal on this issue will now be put forward during the next meeting of the select committee of the state Assembly.

After 1972, during the severe drought in the state, a law was enacted to provide job guarantee to rural masses.

Following this, a special fund was created and the government was allowed to collect professional tax, to be deposited in this fund with matching contribution from the state.

Finance minister Jayant Patil has projected that the state will collect around Rs 1,500 crore as professional tax during this fiscal. Accordingly, the government has allocated Rs 1,500 crore as state's contribution to the reserve fund in the Budget.

But, now the government wants to abolish this reserve fund. The finance ministry argues that the number of people seeking employment from the government has comparatively reduced, and therefore the money can be put to better use.

Priya Khan, co-coordinator of the Mumbai-based think-tank Samarthan, counters: "The state government's contention is true only partially. Yes, the number of people wanting jobs under the job guarantee scheme has reduced. But, one has to realise that literacy levels in rural parts have increased and the rural youth don't want a job that involves only manual labour. So, the scope and nature of the scheme need to be changed so as to suit the changing times."

There can be debate on what should be the state government's contribution to the fund. But abolishing the fund all together will result in removing the only safety net available to rural masses in times of distress, she adds.