Social sector may get 50% more

RUN UP TO BUDGET 2006

A possible move to placate the Left, Budgetary allocation likely to be Rs 58,795 crore.

Keeping with the UPA government's rural focus, the forthcoming Budget may see an increase of around 50 per cent in allocation for social sector schemes for fiscal 2006-07.

The budgetary allocation for 2005-06 was Rs 39,766.56 crore. This is now expected to be scaled up to Rs 58,795 crore as the budgetary estimates for 2006-07.

"An unprecedented increase in social sector schemes is expected with the government likely to increase the allocation by around 48 per cent for the coming fiscal. The forthcoming Budget will reflect that the rural economy has been given priority," a government official told Business Standard.

The Planning Commission is trying to fill up economic gaps on one side and meet political demands on the other. Officials believe this is being done to placate the Left allies after the problems raised over FDI in retail and privatisation of airports.

An increase in allocation for the social sector schemes is bound to affect allocation for other centrally-sponsored schemes. In every likelihood, the 300 centrally-sponsored schemes might only see a token increase in the forthcoming Budget, the official added.

The Sarva Shiksha Abhiyaan was alloted Rs 7,800 crore as a budgetary estimate for 2005-06. The proposed budgetary estimate for 2006-07 is now pegged at Rs 11,000 crore, indicating a 41 per cent increase.

A 200 per cent increase has been proposed in the budgetary estimates for the Food for Work, National Rural Employment Guarantee Programme "" from Rs 4,500 crore in 2005-06 to Rs 13,500 crore in 2006-07.

"One of the reasons behind the increase in allocation is that in the next fiscal, five states will go to polls," the official added.

The National Rural Health Mission may see an 11 per cent jump in its budgetary allocation from Rs 6,731 crore in 2005-06 to Rs 7,500 crore in 2006-07. In the case of Integrated Child Development Services, a 14 per cent increase is expected from Rs 3,510 crore in 2005-06 to Rs 4,000 crore in 2006-07.

The National Horticulture Mission allocation may witness a 40 per cent increase from Rs 645 crore in the present fiscal to Rs 900 crore in 2006-07. The Micro Irrigation scheme may receive a 37.50 per cent increase in its budgetary allocation, from Rs 400 crore in the present fiscal to Rs 550 crore in the next fiscal.

The schemes under Bharat Nirman are also expected to get a substantial increase in their budgetary allocation for 2006-07. The Pradhan Mantri Gram Sadak Yojana may get a 53 per cent increase, from Rs 4,235 crore allocated in 2005-06 to Rs 6,500 crore in the next fiscal.

The Rural Housing Scheme may get a 24 per cent increase in its budgetary allocation, from Rs 2,750 crore in 2005-06 to Rs 3,400 crore in the next fiscal.

The Rural Drinking Water scheme is slated for a 31 per cent increase in its budgetary allocation from Rs 4,050 crore in the present fiscal to Rs 5,300 crore in the next financial year. The Rural Electrification scheme is expected to get a 36 per cent increase from Rs 1,100 crore in the current fiscal to Rs 1,500 crore in 2006-07.