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This is an archive article published on March 1, 2011

Social spend patterns get a makeover

MNREGA allocation remains flat,but anganwadi workers will get Rs 3,000 a month,double what they got this year.

Confronted by rising prices and corruption scandals,the UPA-II today did what any government would do to re-gain the confidence of its population gradually getting cynical with its policies.

To woo the aam aadmi back into its fold,finance minister Pranab Mukherjee today announced a whopping 17 per cent increase in the governments social sector spending to Rs 1,60,887 crore. It amounts to 36.4 per cent of total plan allocation,he reminded.

Unfurling his proposals for the Budget 2011-12,Mukherjee told Parliament that a significant portion of the targeted populace remains deprived of subsidised kerosene oil owing to large-scale diversions and that is why the Centre would move towards direct transfer of cash subsidy to people living Below the Poverty Line BPL in a phased manner.

Accordingly,a Task Force headed by former IT czar Nandan Nilekani has been constituted to work out the modalities for the proposed system,he said and added that its interim report would be available within three months.

Seeking to address a long-standing grievance of the beneficiaries of the flagship and vote-catching programme Mahatma Gandhi National Rural Employment Guarantee Programme,Mukherjee announced the governments decision to index the wage rates notified under it to the Consumer Price Index for Agricultural Labour.

The enhanced wage rates have already been notified by the union Rural Development Ministry in January this year. A cursory glance at the Expenditure Budget reveals that MGNREGAs allocation has not increased. The finance minister said from April 1,this year the remuneration of Anganwadi workers increased from Rs 1,500 to Rs 3,000 per month and for Anganwadi helpers from Rs 750 to Rs 1,500 per month. Scheduled Castes and Tribal Sub-plan Specific allocation earmarked towards Schedule Castes Sub-plan and Tribal Sub-plan in the Budget. Allocation for primitive Tribal groups increased from Rs 185 crore in 2010-11 to Rs 244 crore in 2011-12.

In the Health-Plan allocations for health has been stepped up by 20 per cent and the scope of the Rashtriya Swasthya Bima Yojana would be expanded to widen the coverage,Mukherjee announced.

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Mukherjee said the eligibility for pension under the Indira Gandhi National Old Age Pension Scheme was proposed to be reduced from 65 to 60 years. For those who are 80 years and above,the pension amount is being raised from Rs 200 at present to Rs 500 per month. Pointing out that the micro,small and medium enterprises played a crucial role in furthering the objective of equitable and inclusive growth,the finance minister announced an allocation of Rs 5,000 crore as against an allocation of Rs 4,000 crore in the last Budget.

Taking cognizance of the plight of the handloom weavers,he announced an allocation of Rs 3,000 crore to NABARD in phases to fund the cooperative societies run by the weavers. He exuded confidence that this move would benefit at least 15000 such societies including 3 lakh weavers. He said the outstanding loans the the minority communities,which stood at 13 per cent of the total priority lending have been increased to 13.6 per cent in the current year.

Maintaining that the new wage rates notified by the Centre have immensely benefitted the beneficiaries of NREGA,the finance minister observed,The enhanced rates have been notified on January 14,2011. It has resulted in significant enhancement of wages for beneficiaries in the country. The anganwadi workers and helpers are the backbone of Integrated Child Development Services Scheme. Around 22 lakh anganwadi workers and helpers would benefit from the increase.

For housing facilities in Left Wing Extremist LWE affected districts across the country,the government has allocated Rs 8,996 crores under the Indira Awaas Yojana IAY,with each family to get Rs 45,000 plains and Rs 48,500 hills as financial assistance.

 

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