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The Cash-strapped Maharashtra government has appealed to the Centre to provide funds for the relief of people affected by nature calamities and development plans, like irrigation and infrastructure.
In a bid to not go into the red, the state government has sought an immediate release of Rs 4,500 crore to provide relief to farmers in 24,000 drought-hit villages. The Bharatiya Janata Party and Shiv Sena government has requested that a provision be made in the Budget or to provide it by way of a supplementary demand in February.
The plea comes close on the heels of strong criticism by the Opposition — Congress and Nationalist Congress Party — and also by Shiv Sena chief Uddhav Thackeray.
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Thackeray had claimed that the government had not done enough to provide relief to farmers hit by drought and the untimely rainfall and hailstorm.
Central aid would be crucial as the state’s revenue deficit has increased to Rs 26,000 crore till December last year from Rs 4,500 crore in March 2013. Besides, the government has introduced 40 per cent cut in the Plan expenditure due to scarcity of funds.
A senior government official told Business Standard, “Finance Minister Sudhir Mungantiwar has already sent a detailed communication to the Union finance minister. Union officials have already visited the affected villages and agreed that the Kharif crop has suffered a big loss over a huge area. As per the criteria set under the National Disaster Relief Fund, the government is of the view that the Centre needs to help state farmers of Rs 4,500 crore.”
The government has also brought to the Centre’s notice that it has very limited resources to implement a slew of measures to tackle drought-like calamities which also leads to more farmer suicides.
“The state government is trying to increase the facilities in irrigation, electricity and marketing and has made a master plan to make the state drought-free. Due to resource constraints, the government has appealed to the Centre to make available more funds under micro irrigation and wasteland area programme,” the official said.
The government also has to bear an annual burden of Rs 1,400 crore due to the implementation of National Food Security Act from the beginning of 2013.
“Against 7 million eligible beneficiaries fixed under the Antyodaya scheme, there are 8.77 million beneficiaries below poverty line in the state. The government was forced to spend to make available food for 1.77 million people at the old rates and therefore the government has appealed to the Centre to reconsider the number of eligible beneficiaries under the Antyodaya scheme,” the official said.
On the allocation funds the Accelerated Irrigation Benefit Project, the government has made a case for the simplification of the process so that more projects can be undertaken.
The state-run Maharashtra Industrial Development Corporation has spent about Rs 1,400 crore for the acquisition of land close to Aurangabad for the Delhi Mumbai Industrial Corridor. The government has requested the Centre to make appropriate provisions for the same.
