THE 5TH ESTATE (EB): No.03

This is an electronic newsletter on our Project titled “Promoting State Accountability and Citizen’s Empowerment through Budget Analysis (SAP)” which is being implemented in Rajasthan, a state in North-West India. The project primarily aims to analyse budgetary provisions and achievements of targets of programmes and schemes meant for target groups, viz. women, marginal farmers and landless labourers.

The title ‘The 5^th Estate’ has been derived from the definition of democracy, as it denotes the people on whom it’s other four pillars rest: the legislature, the judiciary, the executive and the media. It means, “The State derives its rights from the power of the people”.

The purpose of this bulletin is to provide regular update on the activities taken as part of the Project.

THE 5TH ESTATE (EB) ISSUES NO. 08

THE 5TH ESTATE (EB) ISSUES NO. 07

THE 5TH ESTATE (EB) ISSUES NO. 06

THE 5TH ESTATE (EB) ISSUES NO. 05

THE 5TH ESTATE (EB) ISSUES NO. 04

THE 5TH ESTATE (EB) ISSUES NO. 03

THE 5TH ESTATE (EB) ISSUES NO. 02

THE 5TH ESTATE (EB) ISSUES NO. 01

From the Media:

Content

 From the Media

Analysis of the C.A.G.Report (1999-2000)

C.A.G. Analysis of Schemes (1991-2000)

Development of Women and Children in Rural Areas. (DWACRA)

Integrated Child Development Services (ICDS)

Scheme for Rural Employment Generation

   From the Media

Expressing concern over the poor condition of the State’s finances, the Comptroller and Auditor General (CAG) of India said that the Rajasthan Government’s financial management would not only push up the interest burden but also leave very little for financing developmental activities. The CAG has also cautioned the government against massive borrowings saying that the state’s vulnerable financial position would worsen in the coming years.                                             

                       (Hindustan Times, 10.05.01; Times of India 17.05.01)

Poor planning and monitoring has led to huge losses amounting to several crores in government departments. A major proportion of the government revenue is being drained away due to wasteful expenditure. The CAG report says, the fodder seed production farm at Mohangarh in Jaisalmer district had resulted in expenditure of Rs. 37.69 lakh on civil works and allowances of staff of the farm a improved variety of seeds could not be produced due to posts remaining vacant and non-availability of water resources.   

                (Times of India.15.05.01 )

With this as a background, the project team has carried out a study on the past ten years of CAG reports (1991-2000). The activity involved highlighting the review and audits of the various development schemes. These schemes also included the select target group of the project as beneficiaries.

Some of the highlights of the CAG review on schemes for women, farmers and labourers, are as follows:

BACK  

Analysis of the C.A.G. Report (1999-2000)

·        The project team has analysed the observations made by the CA.G. of India about condition of the State’s finances in its Audit Report for the year ended March 31, 2000.

·        The analysis is based on the trends in receipts and expenditure, the financial management- revenue and fiscal deficit, borrowings etc.

·        The rising interest ratio as well as the negligible returns on the investments made by the State government has adversely affected the sustainability of the State’s finances.

·        The interest payments have increased considerably to Rs.2825 crore during 1999-2000 from Rs.2243 crore in 1998-99. The increase in interest payments over previous year was 25.95%.

·        The revenue deficit is the excess of revenue expenditure over revenue receipts of the government. It represents the revenue expenditure being financed by borrowings and other like means.

·        Total revenue expenditure was Rs.13,430 crore as against  revenue receipt of Rs.9,790 crore during 1999-2000 leaving a gap of Rs.3,640 crore  between the two,  termed as  the revenue deficit.

·        On the revenue deficit front, the State government presents a very poor picture. Evidently, the higher the revenue deficit, the more vulnerable is the State’s financial condition.

·        The revenue expenditure has grown considerably during the year 1999-2000 to the extent of 16 percent over the previous year. In the absence of sufficient internal resources, the State government has to meet out the revenue expenditure from the borrowings.

·         The State government has come off very poorly in this regard as 68% of the borrowings were utilised for revenue expenditure. The scenario is likely to worsen in the future due to massive borrowings unless the State Government significantly increases its revenue receipts. 

BACK

CAG analysis of schemes (1991-2000)

Development of Women and Children in Rural Areas. (DWACRA)

•         Under the scheme DWCRA, 10-15 women belonging to identified rural families were to form a group. Each group was entitled to subsidy and institutional credit for taking up economic activities suited to their skill, aptitude and local conditions.  

•         Each DWCRA group was provided a lump sum of Rs.15,000 as revolving fund for purchase of raw material.  

•        It was noticed in audit (1995-96) that DRDA released 5.93 lakh to 39 DWCRA groups, of which a sum of Rs.5.23 lakh remained unutilised as of July 1995.  

•        The DRDA intimated that these groups could not start their activities owing to non-posting of an Assistant Project Officer and Gram Sevikas during 1991-95 and that the scheme was not effectively implemented and properly monitored. 

•         The funds amounting to Rs.5.23 lakh sanctioned for welfare scheme for women and children remained unutilised besides a likely loss of Rs.0.70 lakh spent on purchase of defective material and other activities.

BACK

Integrated Child Development Services (ICDS)

• The ICDS programme is in operation in the State since 1975-76. It aims at integrated development of early childhood services and services for expectant and nursing mothers in urban slums, rural and tribal areas.  

•         It was noticed in audit (1998-99) that despite incurring expenditure of Rs.279.65 crore during 1992-93 to 1998-99, the scheme could not generate desired results.  

•         This was due to the Government’s failure in utilising resources, non-opening or delayed opening of new projects sanctioned, non-providing of nutrition as per norms and inadequate monitoring.  

•         It was pointed out that 66 projects were not operated by the State Government with the result that the beneficiaries of these blocks were deprived of the benefits.  

•         Supplementary nutrition was not provided for the targeted 300 days in a year. Severely malnourished children were either not identified or not provided therapeutic food/nutrition at double the normal scale.  

•         Immunisation was done to the extent of 18 to 51 percent only, but no record of it was kept at anganawadis.  The beneficiaries were not checked up because the Medical staff did not pay regular visit to anganwadis.  

•         Nutrition was provided to the children to the extent of 63 to 79% only. Thus, about 21 to 37 percent beneficiaries under various projects were deprived of benefits of this scheme.  

•         Similarly, pre-school non-formal education was provided to only 57 to 85 percent of the target group during the period 1992-99. Thus, a large group of beneficiaries was deprived of benefits of this scheme.  

•         Nutrition and health education to women, publicity of the activities under ICDS programme through mass media, special campaigns, camps and demonstrations were not arranged.  

BACK

 Scheme for Rural Employment Generation

• The Rural Employment Generation programme includes ‘Jawahar Rozgar Yojana’ and ‘Employment Assurance Scheme’. During 1992-99, the State Government spent Rs.1648 crore on the programme and reported generation of 3497.14 lakh mandays.

• A review of the programme conducted and reported by the C.A.G. in 1998-99 revealed that the employment generated was short of the requirement as well as the objectives of the scheme.

• It was noticed that Rs.36.05 crore remained unspent with DRDAs and others as of March 1999. State Government did not release Rs.14.36 crore out of the funds released by the Government of India under JRY.

• Release of Rs.645.12 crore under the Jawahar Rozgar Yojana  and Rs.57.66 crore under Employment Assurance Scheme was delayed by 12 to 192 days by the State Government.

• The balance of Rs.7.07 crore under National Rural Employment Programme and Rural Landless Employment Guarantee Programme as of March 1998 was not accounted for in Jawahar Rozgar Yojana by 3 District Rural Development Agencies.

• The employment generated ranged between 17 and 42 days per year only against 100 days per family per year envisaged in the scheme, which was far below the target of the scheme.

• The material component of the works accounted for between 42 and 98 percent of the cost of individual works, against the maximum of 40 percent in districts test checked. This adversely affected the employment generation in the State.

• As of March 1999, 99 works of Jawahar Rozgar Yojana and Employment Assurance Scheme remained incomplete even after expiry of stipulated period of 2 years.

• Expenditure on Watershed and Soil Conservation works was only 9 to 11 percent during 1995-97 against the prescribed 40 percent. Thus , the sectoral priority was not maintained.  

• Expenditure of Rs.3.98 crore was incurred by Forest department in contravention of the norms prescribed under Jawahar Rozgar Yojana and Employment Assurance Scheme.

SUBSCRIBE

 E-newsletter by the

CUTS Centre for Consumer Action, Research & Training (CUTS-CART)

 D-217, Bhaskar Marg, Bani Park, Jaipur 302 016 India

Ph: 91.141.2282821, Fax: +91-141-2282485/

Email: cuts@cuts.org 

Web: http://www.cuts-international.org

Materials from this communiqué may be freely cited, subject to proper attribution

CUTS Centre for Consumer Action, Research & Training (CUTS-CART)