Crafty Centre, baffled State
BJP being intent on expanding its rural mass base using the 14th Finance Commission as an instrument seems to have left the State Government in the dock. As per the 14th FC’s recommendation, the Centre would give around Rs2 lakh crore to the Panchayati Raj institution in the next five years. However, to the anguished woes of the State Government, the Centre would give fund in full to be thus released to the lowest rung of the three-tier rural body institution-village pachayats while leaving the other two- zila panchayats and block panchayats- out in the freezing cold. To raise further the anguish of the state government, the Centre has made it clear that either the State Government would spend the earmarked fund through the village panchayats or, if they hold it for reasons political or otherwise, they would have to bear the additional burden of paying hefty interests accumulated on the fund to be thus released. The Centre’s stance is crystal clear-it would take full care of the lowest rung while it is incumbent on State Government to aptly provide for the other two higher rungs. Political analysts say that the Centre is bent on stealing the show over the State Government by seeking to endear itself to the enormous constituency of rural population that live in the villages. Seemingly left in the lurch, the state government is now beseeching the gram panchayats to be kind enough to accommodate the announcements made by it while spending the huge amount to be released by the Centre. Aside from leaving the State Government on a sulk mode, Centre’s announcement has annoyed district and block panchayat representatives in equal measure too. The baffled State Government seems to be literally scratching its heads over how to have the funds amicably distributed to keep the rural body show running.
Pearls of ‘Wisdom’
Policy Planning Group (PPG)’s much-hyped second meeting held on September 7 seems to have left the political analysts flabbergasted. A plethora of committees with experts chairing them has been formed in course of the marathon meeting with the focus trained exclusively on augmenting resources to pump blood in the State’s development projects. But a vital question begs answer- with PPG itself being a high powered committee comprising experts, what is the rationale behind the constitution of innumerable committeesIJ Another vexed question has cropped up that casts doubts on the sagacity of the experts, tasked to evolve ways to shore up the flagging State coffers. They counseled that the petrol and diesel prices of the State should be made the same with those prevailing in the neighbouring States. With the current prices of petrol being Rsthree higher per litre in UP as compared to Uttarakhand, the vehicle owners naturally are preferring the latter to the former while replenishing their fuel tanks. If the prices are brought on the same footing Uttarakhand is bound to lose a few hundred crores that it is now earning because of the price discrepancy. Subsequently, the volume of VAT collection would dip down, imperiling further the depleting exchequer. This aside, the so-called experts’ wisdom on deciding to raise VAT to make things uniform with the neighbouring The axiom runs-more sales, more earnings. The logic of the experts in raising VAT thus runs counter to the ABC of rudimentary Economics. There is another element of surprise awaiting the people. The State planning department has given Rs5000 to each of the wisdom-packed members of PPG as honorarium for their kind attendance.