UP may get its 2nd adjunct budget for '07

In an unprecedented move, the UP government is contemplating a second supplementary budget within five months of the current fiscal 2006-07.

The supplementary grants are likely to be introduced for the consideration and passage by the assembly during the monsoon session of the House, scheduled to commence here from August 21.

The budget of Rs 82,850 crore for FY 2006-07 was passed by the assembly in February while the government obtained the first supplementary grants in May, of Rs 1,629 crore.

The second supplementary budget is aimed at financing the long list of sops to be offered by the state government to farmers and other electorally significant sections of society before the elections next year.

Official sources said the first and foremost concern of the government was to appease the farmers. For this purpose the electricity bills are to be waived off. This announcement for this is likely to be made before the elections due in February 2007.

The other major concern for the government is Sefai, the hometown of Chief Minister Mulayam Singh Yadav, in Etawah district and the Kannauj Lok Sabha constituency, represented by his son Akhilesh Yadav.

The cabinet on August 1 approved the "Detailed Project Report" of Rs 212 crore for setting up a medical college in the district.

"After this session there may not be any opportunity left for the government to arrange for funds for meeting its commitments on the populist schemes as before the elections there may be a brief session of the assembly to adopt the vote on account for 2007-08 and other necessary legislative business," said a senior official of the finance department.

Finance department sources said the second supplementary was expected to be close to Rs 2,000 crore, and provision would be made largely for populist schemes for farmers, the Muslim community, and other social groups, announced by Yadav.

The government is set to seek the approval of the legislature for the second supplementary though the government agencies involved in developmental work are facing the problem of fund utilisation.

By the end of May, the state government had released over Rs 25,000 crore to all the districts for the various development jobs on social welfare.

These funds do not include those directly released by the Union government to the panchayat institutions and districts authorities for the rural development and drinking water schemes.

In 2005-06, the Centre directly released Rs 5,636 crore to the districts for rural development schemes. Officials of the finance department refused to comment on the size of the second supplementary budget.