When ‘Ama Gaon, Ama Bikas’ with a whopping allocation of Rs 1,250 crore has been CM Naveen Patnaik’s pet programme and the BJD’s panacea for panchayat poll loss to the BJP in 2017, the emerging revelation is with a per capita expenditure of Rs 1,711 on rural development, Odisha finished a distant number 10 nationally among the 25 major States and UTs. In contrast, as per 2011 census, Odisha with over 85 per cent population living in rural areas is the third-most highly rural populated State in country among major States, including Assam. Bihar tops the country with 89 per cent rural population.
As per data available with the Institute of Policy Research Studies, the per capita rural expenditure in Odisha has been estimated at Rs 1, 711 vis-a-vis the national average of Rs 1, 434. However, neighbouring
States like Jharkhand and Andhra Pradesh with a rural population of around 78 per cent and 72 per cent, respectively, have a per capita rural expenditure of around Rs 2,461 and Rs 2,298, respectively. Other neighbouring States like Chhattisgarh and West Bengal with rural population of around 80 per cent and 72 per cent, respectively, have pegged their per capita rural expenditure at Rs 1,746 and Rs 1,763, respectively, which is also marginally higher than Odisha.
Moreover, an analysis of expenditure on rural development vis-a-vis the budgeted total expenditure over the last three fiscal years reveals a shocker. Despite Ama Gaon, Ama Bikas scheme with Rs 1,250 crore allocation and Rs 2,900 crore for Pradhan Mantri Gram Sadak Yojana (PMGSY), the total expenditure for rural development in 2018-19 recorded a sharp decline of around 23 per cent vis-a-vis 2016-17 actuals. Odisha’s total expenditure on rural development in 2016-17 actuals was Rs 7,275cr, but the 2018-19 budgeted expenditure dropped to mere Rs 5,582crore. However, if the 2018-19 expenditure on rural development is considered, the per capita rural expenditure dips further to Rs 1,597 against the average of Rs 1,711 for the period 2015-19.
An analysis of total expenditure on rural development as a proportion to total budgeted expenditure for the period 2011-15 and 2015-19 reveals that the proportion was around 5.8 per cent for the period 2011-15, which then shot up to 9.7 per cent of total budgeted expenditure for period 2015-19. This shows Odisha has increased the proportionate spending on rural development by 3.9 per cent in last 4-year period. Meanwhile, neighbouring West Bengal despite having lower rural population has increased the spending by around 4 per cent. Nationally, Nagaland with 82 per cent rural population has recorded the highest increase of 7 per cent in 2015-19.
State’s expenditure on rural development is meant allocation of matching grants for all rural schemes like PMGSY, Deendayal Antyoday Yojana – National Rural Livelihood Mission (DAY – NRLM) and Deendayal Upadhyaya – Gramin Kaushal Yojana (DDU – GKY), MGNREGA and Swachh Bharat Mission etc.
These schemes have the objective of reducing poverty and boosting rural employment, but a cut in allocation would adversely affect the pertinent issues like poverty alleviation and employment generation that in turn would lead to rural distress, observed experts.