Skip to main content

Disorganized approach to policy, budget formulation in Andhra Pradesh, at least in handloom sector

By Umesh Babu and Antara Mukherjee*
Total Expenditure Budget of Andhra Pradesh has increased from Rs 1,56,999.40 crore in the year 2017-18 to Rs 1,91,063.61 crore; increase of Rs 34,064.21 crore (21.69%). It gives a better image and impression. To rely on the quality of budget formulation for policies implementation, we have taken the sample of Handloom Weavers, covered under the department “Handloom and Textiles”.
Total budget of Handloom and Textiles Department in the year 2018-19 is Rs 273.42 crore; an increase of Rs 42.18 crore over the budget Rs 231.25 crore of previous year 2017-18.

Important Observation of Schemes / Programs:

1. Indian Institute of Handloom Technology:
  • Salaries: Allocation in salary head for the institute has been reduced. In the year 2017-18 budget estimate was Rs 79.46 lakhs and in the year 2018-19 it is Rs 63.59 lakh. A decrease by Rs 15.87 lakh. It indicates that the institute might be gradually shut down. 
  • A new scheme ‘Other Administrative Expenses’ has been launched for the year 2018- 19 with financial allocation of Rs 200 lakh. Total budget for the institute in the year 2017-18 was Rs 137.09 lakhs and in the years 2018-19 it is Rs 308.99 lakhs. If we separate the allocated fund for the new scheme and compare the figures of allocation for the year 2018-19, it comes out to be 108.99 lakhs. Which means in the existing programs of the state, there is a reduction of Rs 28.01 lakhs. 
2. Interest Subsidy/Rebate Scheme: Budget for this scheme has been reduced from Rs 6.00 crore in the year 2017-18 to Rs 4.00 crore in the year 2018-19. It is important to note that the expenditure in the year 2016-17 was 4.64 crore, higher than the allocation of the current year.
3. Small Scale Industries (SI) clusters under the Package Scheme – Handlooms Cluster Development Programs: This scheme has been discontinued by the way of not allocating budget in two subsequent years i.e. 2017-18 and 2018-19. In the year 2016-17 expenditure under this scheme was Rs 25 crore.
4. Assistance for livelihood enhancement of weavers: Budget has been increased for this scheme under the head of “Other Grant-in- Aid” from Rs 23.42 crore in 2017-18 to Rs 200 crore in the year 2018-19, an increase by Rs 176.58 crore.
5. Assistance towards loan waiver to weavers: Allocation for this scheme is only Rs 1 lakh in both years 2017-18 and 2018-19.
6. Financial Assistance to Handloom and Textiles Promotion: Budget has been decreased from Rs 50 crore in year 2017-18 to Rs 25 crore in the year 2018-19. A decrease of Rs 25 crore.
7. Margin Money Assistance to APCO under NCDC Scheme: This scheme has been discontinued by way of not allocating budget in two subsequent years i.e. 2017-18 and 2018-19. In the year 2016-17 total expenditure was Rs 5 crore.
8. State share for Revival Reform and Restructuring package for Handloom Sector: Allocation for this scheme is only Rs 1 lakh in both years 2017-18 and 2018-19.
9. Cooperative Handloom Weavers Thrift Fund Scheme: Budget for the scheme is reduced from Rs 3.5 crore in 2017-18 to Rs 2.5 crore in the year 2018-19.
10. Subsidy on Purchase of Raw Material: Budget is increased from Rs 8 crore in 2017-18 to Rs 11 crore in the year 2018-19.
11. Rashtriya Swasthya Bima Yojana (RSBY): Budget is increased from Rs 6 crore in the year 2017-18 to Rs 15 crore in the year 2018-19. 12. Loan Assistance under NCDC Scheme: Budget is decreased from Rs 36.98 crore in the years 2017-18 to Rs 10.00 crore in the year 2018-19.

Remarks:

The overall scenario represents a disorganized approach in policy and budget formulation of the State, at least in handloom sector. The programs that have been working well have been abandoned by way of not allocating funds. Instead of correcting the lapses in existing programs formulation and implementation, new programs are launched to solve the problems. Practically, bureaucracy is not a complete mechanical instrument to adopt new program and in full swing and solve the existential problems of the weavers.
Politically, government can claim of increasing budget. Within these two propositions, chaos is created and public at large gets confused about who is wrong: politics, bureaucracy or the public. This state of confusion creates a situation for politicians to get away scot free and find several excuses for the persistent and consistent growth in poverty, suicides, debt trap, hunger death, etc. In one scheme there is an increase of Rs 176.58 crore and budget size becomes Rs 200 crore in the year 2018-19.
Total increase in departmental budget is Rs 42.18 crore. It means there are the several other smaller components where the budget is reduced and compromised with one scheme so that total budget of the department is in limit by a marginal increase of Rs 42.18 crore The schemes that have been reduced or brought to the point of closing down, will affect not only the weavers but also to State economy and bureaucratic infrastructure. Detailed enquiry of the budget and policies may give other sights or vision to get complete conclusion of the lapses in budget and policy formulation.
---
*Delhi Solidarity Group

Comments

TRENDING

It's now official: Developed Gujarat's regular, casual workers earn less than 19 top states

By Rajiv Shah
Though not as low as state chief minister Vijay Rupani claims it to be (0.9%), Gujarat’s unemployment rate, at least as reflected in a recent report released by the Government of India, is 4.8%, lower than the national average, 6%. Yet, ironically, the same report, released soon after the Lok Sabha polls came to an end in May 2019, brings to light an even grimmer reality: Lower wages in "model" and "developed" Gujarat compared to virtually the whole of India, including the so-called Bimaru states.

Amaravati: World Bank refusing to share public grievances on Land Pooling Scheme

By Our Representative
A new report, prepared by the advocacy group Centre for Financial Accountability (CFA), New Delhi, has taken strong exception to the World Bank refusing to share its independent assessment of the Land Pooling Scheme (LPS), floated by the Andhra Pradesh government in order to build the new capital.

Beijing-based infrastructure bank 'funding' India's environmentally risky projects

By Our Representative
A new civil society note has questioned the operations of the Beijing-based Asian Infrastructure Investment Bank (AIIB), a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region, seeking to fund projects in India through the Government of India’s National Infrastructure Investment Fund (NIIF), calling it “a risky venture”.

British companies export 'deadly' asbestos to India, other countries from offshore offices

By Rajiv Shah
“The Sunday Times”, which forms part of the powerful British daily, “The Times”, has raised the alarm that though the “deadly” asbestos is banned in Britain, companies registered in United Kingdom, and operating from other countries, “are involved in shipping it to developing nations”, especially India. India, Brazil, Russia and China account for almost 80% of the asbestos consumed globally every year, it adds.

Govt of India 'lying': MGNREGA budget reduced by Rs 1,084 crore in 2019-20

Counterview Desk
NREGA Sangharsh Morcha, a well-known advocacy group for the rural jobs guarantee scheme, under implementation since 2005, has said that the statement by the Rural Development Minister has a made a mockery of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on the floor of Parliament, revealing the ruling BJP’s “anti-worker and anti-poor bias”.

Include all workers exposed to silica dust in anti-TB programme: Govt of India told

Counterview Desk
In a letter, sponsored by well-known civil rights organization, Occupational & Environmental Health Network of India and signed by more than 60 professionals and activists*, Dr Harsh Vardhan, Union Minister of Health and Family Welfare, Government of India, has been told that Indian policy makers shouldn't just acknowledge higher TB risk to mine and stone crusher workers, but also “other silica-exposed workers”.

Universal healthcare? India lacks provisions to 'fight' non-communicable diseases

By Moin Qazi*
Universal health coverage (UHC) -- ensuring that all people receive proper and adequate health care without suffering financial hardship -- is an integral part of achieving the Sustainable Development Goals. It enables countries to make the most of their strongest asset: human capital.

Why crib? 4.5% is far better than pre-1980 'Hindu rate of growth': Subramanian replies

By Rajiv Shah
Even as sticking to his original argument that India's gross domestic product (GDP) since 2011-12 has been overestimated by 2.5%, renowned economist Arvind Subramanian has said in a fresh paper that his estimate of post-2011-12 growth rate at around 4.5% is surely not "implausibly low", as some of his critics have been arguing following his controversial June paper.

RSS, Hindu Mahasabha were 'subservient' to British masters: Nagpur varsity VC told

Counterview Desk
Well-known political scientist Shamsul Islam, associate professor (retired), University of Delhi, in an open letter to the vice-chancellor of the Rashtrasant Tukadoji Maharaj Nagpur University, Dr Siddharthavinayaka P Kane, has taken strong exception to the varsity decision to include RSS’ “role” in nation building in the syllabus of the BA (history) course, citing instances to say that the RSS ever since its birth in 1925 with its Hindutva allies like Hindu Mahasabha led by VD Savarkar worked overtime to “betray the glorious anti-colonial freedom struggle”.

UP's Sonbhadra killing of 10 tribals highlights 'failure' to implement Forest Rights Act

Counterview Desk On July 17, as many as 10 people, including three women, were killed and 28 injured when a village head and his supporters opened fire on a group of tribal farmers in Ubha village of Sonbhadra district in Uttar Pradesh. While the firing took place following a clash between over a land ownership dispute, it reportedly highlights failure of officials enforce Forest Rights Acts (FRA) and Survey Settlement in favour of tribals.