MARXIST DEBT Budget in CORPORATE DEMOCRACY Under MANUSMRITI APARTHEID ZIONIST ILLUMINITI Regime

MARXIST DEBT Budget in CORPORATE DEMOCRACY Under MANUSMRITI APARTHEID ZIONIST ILLUMINITI Regime

Troubled Galaxy Destroyed Dreams: Chapter 184

Palash Biswas

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I encountered a VERY Hot DEBATE with my Co Passengers in a Compartment of Down Barrackpur Princep Ghat Local.

A young Intellectual highlighted the CORPORATISATION of Indian democracy beautifully and concluded that MONEY and Muscle Power has made the MANDATE quite irrelevant.

He claimed that as the MARXISTS failed to stop INDO US NUKE Deal as well as STRATEGIC Realliance in US ISRAEL Lead, they would not be able to CONSTITUTE any Third Front whatsoever.


He declared whatsoever may come UPA led by Italian Sonia Gandhi and Washington planted DR Manmohan Singh would romp home! Corporates support DR MANMOHAN SINGH and it happens to be the deciding factor.

HE DISMISSED the chances of either MAYAWATI or JYOTI Basu`s becoming the NEXT Prime Minister despite the CASTEOLOGY!

Our friend sounds quite logical!

But the fact remains that we may not distinguish amongst DIFFERENT wings of INDIAN POLITICS constituting Ruling Brahaminical hegemony as every faction Washington supported UPA and NDA as well as the CORPOTARISED Left do toe the line dictated by the GLOBAL ORDER of ILLUMINITI.

DESI ILLUMINITI has nothing on STAKE as its INTERESTS are SAFE regardless whatsoever government shapes in the CENTRE!

I have written it is OPEN VARNA YUDDHA, the CASTE WAR and I stick on it!

Bengal’s public debt has touched Rs 1.65 lakh crore which translates to over Rs 20,000 per person in the state!

Finance Minister of WEST BENGAL DR. ASHIM Dasgupta said the government would have to incur an additional expenditure of about Rs 10,000 crore on account of revision of pay and pension of government employees, teachers, non-teaching employees and panchayat and municipal staff, but at the same time revised the state plan outlay to Rs 14,069 crore in 2009-10 from Rs 11,966 crore in the current year and left an uncovered deficit of only Rs 7 crore. He said he had no plans to impose fresh taxes later.

Asim Dasgupta's budget statement for 2009-10 on Friday did the unexpected. It managed to unite the entire Opposition in the Assembly.

Trinamool Congress, Congress and SUCI jointly announced their decision to lodge a complaint with the Election Commission on grounds of violation of the model code of conduct.

The minister also expected taxes to be collected at a rate of 20% against 17% at present. He expected from the Centre Rs 5,000 crore as its share of the increase in salary bill of the state government and Rs 9,000 crore on account of accumulated coal royalty.

The government has decided to set up a land bank for big industries, Dasgupta announced. For this, a corpus of Rs 500 crore has been created.

Nowadays I am trying to know about the MARXIST Socialist ROLE during RECESSION 1929.

The study rather helps to understand the LEGACY of Marxist socialist and the Combined LEFT legacy of Trade Union Movement, Real Politics and Marxist political Economics.

EVEN THE FIRST FASCIST MUSSOLINI and the NAZI HITLER posed as SOCIALIST pledging WELFARE STATE, RELIEF and LIBERATION for the ENSLAVED PROLETARIATE and thus, CAPTURED STATE POWER in ITALY and GERMANY. MARXIST RULE in WEST BENGAL and the CAPTURE Politics to uphold FASCIST BRAHAMINICAL MARXIST HEGEMONY reminds me the HISTORY of ITALY and GERMANY!

Reading available documents relating the RECESSION and Economic Financial TURMOIL all over EUROPE in between two WORLD WARS, the ROLE of Indian Marxists, Communist, Socialists and the COMBINED Left looks quite Crystal clear.

The ROLE of TRADE UNIONS, SOCIALIST and COMMUNIST parties in EUROPE specially in Great Britain, FRANCE and ITALY during the GREAT RECESSION in 1929 is nothing but STRATEGIC BETRAYAL to the INTERESTS of the PROLETARIAT.

The BLACK Mail, The Hard Bargain, The REMOTE CONTROL, The HYPOCRISY, The STRIKES, The Reduction of WAGES, JOB CRUNCH and PLIGHT of WORKERS as well as Productive forces, The GENOCIDES, The DEATHS of MILLIONS in World Wars do underline the LEGACY of POST MODERN MARXISTS in so called GLOBAL MELT DOWN in Recent Times.

The SOCIALISTS and Communists created POLITICAL Instability in every part of EUROPE pledging REVOLUTION. But the TURNAROUND of the COALITION GOVS favouring the ILLUMINITI Interests finalised the STRATEGIES of MASS DESTRUCTION and GENOCIDE.

The Modern Marxists are doing exactly the same.Communist Parties worldwide adapted their local activism to the Third Period policy.

The policy dictated the formation of a militant labour movement under the Red International of Labour UnionsProfintern

Red International of Labour Unions, widely known by its Russian language abbreviation Profintern, was an international body established with the aim of co-ordinating Communist activities within labor unions...., and was committed to a revolutionary industrial program to compete with moderate labour organizations.

Significant numbers of workers responded to this strategy in the depression because they faced unemployment, wage reductions, and worsening working conditions. Mainstream labour organizations responded to the depression by retreating from industrial conflict; these unions were weakened by the economic crisis and, in general, chose to cooperate with employers because they felt confrontation would only exacerbate the problem.Many industrial workers therefore accepted Communist leadership during the Third Period, not because they were persuaded by the arguments of the Comintern, but because Communists offered a militant strategy in desperate times, and few moderate options existed to struggle for better conditions. Communist Parties did see increases in membership, but this continued to be a tiny fraction of the working class.

The Third Period was the policy adopted by the CominternComintern

The Comintern was an international Communism organization founded in March 1919, in the midst of the "war communism" period, by Vladimir Lenin and the Communist Party of the Soviet Union, which intended to fight "by all available means, includi...
at the end of the Soviet Union's New Economic PolicyNew Economic Policy

The New Economic Policy was officially decided in the course of the 10th Congress of the RCP of the Communist Party of the Soviet Union.... in 1928 and was in place until the adoption of the Popular FrontPopular front.

A popular front is a broad coalition of different political groupings, often made up of Left-wing politics and Centrism who are united by opposition to another group....

policy in 1935.
The Third Period policy was based on Stalin'sJoseph Stalin
Joseph Vissarionovich Stalin , alternatively transliterated Josef Stalin, was the de facto leader and dictator of the Soviet Union from 1922 to his death in 1953....
theory of class struggle in which the "First Period" that followed World War IWorld War I
World War I, also known as the First World War, the Great War and "The War to End All Wars" was a World war war that took place mostly in Europe between 1914 and 1918....
saw the upsurge and defeat of the working class and the "Second Period" was the time for capitalist consolidation. The Third Period was conceived by the Comintern in 1928 as the time for working class revolution.

The Third Period policy came to an end with the inauguration of the Popular FrontPopular front
A popular front is a broad coalition of different political groupings, often made up of Left-wing politics and Centrism who are united by opposition to another group....
policy in 1935. The 180? turn in the policy of the Comintern caused considerable confusion among those workers who had been drawn in by the rhetoric during the Third Period.



West Bengal is the RED LIGHT AREA OF FREEsenSEX ECONOMY and POLITICS! I am sorry to say!

Meanwhile, the International Monetary Fund has said the global economy in 2009 is likely to contract for the first time since the Second World War.

“At this point, we expect the global GDP to decline between half a per cent and one per cent in 2009 before recovery gradually gets underway in 2010,” a senior IMF official told reporters at its Washington headquarters on a briefing held to release its G-20 Surveillance Note yesterday.
“The major advanced economies, the United States, the Euro Area and Japan, are all suffering severe recessions. The emerging and developing economies are slowing abruptly and many of these are also likely to see falls in activity in 2009,” the official said.

However, he added that the forecast is not complete yet.

This downgrade essentially reflects two assessments.

“First, the data for the fourth quarter of 2008 and for early 2009 show an even sharper contraction in output and trade than we had anticipated earlier as negative interactions between real and financial sectors have intensified,” he said.

The IMF now estimate that global GDP contracted by an extraordinary five per cent at an annualised rate in the fourth quarter of 2008. Moreover, global output continues to decline at a similar pace in the current quarter based on recent data on industrial production, business and household sentiment and trade.

I have earlier written about the MARXIST STRATEGIES against the PROLETARIAT, Marxist Brahaminical Hegemony, Marxist Capitalist Super Highway of Mass DESTRUCTION, Genocide Culture and the Regimented Gestapo, MARXIST FASCISM and MARXIST and TRADE UNION Betrayals. It is quite REMINISCENT of Fascist MUSSOLINI Rule in Italy!

West Bengal happens to be a Post Modern Classic CASE STUDY of MARXIST RULE and Hypocrite IDEOLOGY misleading the Productive forces, working class, PROLETARIAT, Indigenous, Aboriginal nd Minority communities. SACHHAR COMMITTTEE report and BURMAN COMMISION on OBC as well as INDISCRIMINATE Land Acquisition DRIVE, EAST BENGAL REFUGEE Deportation DRIVE in alliance with PARANAB ADWANI and BUDDHA, BRAND BUDDHA, MARICHJHANPI, NANDIGRAM, LALGARH, SINGUR, GORKHALAND, Retail chain and INDO US NUKE Deal Operationalised exposed the Bengali Marxist Brahaminical Hegemony in CORPORATE DEMOCRACY under MANUSMRITI APARTHEID ZIONIST ILLUMINITI Regime POST MODERN as NEVER Before.

The IRONY is that the MARXIST CORPORATE MNC PROMOTER BUILDER REGIMENTED GESTAPO MONEY MUSCLE Power RAJ still dares to pose as SAVIOUR of PROLETARIAT WELFARE STATE!

The state finance minister, Mr Asim Dasgupta, today turned his vote-on-account into a desperate attempt to regain lost ground through a corrective course for the Left Front-government's controversial policy of setting up industries on farm land.

The Statesman reports:

Outlining the revised plan, Mr Dasgupta said that to “solve the problem of procuring land for industries, relatively infertile land” would be purchased “at a fair price” to set up a land bank. A corpus fund of Rs 500 crore will be created for this purpose. Land will be acquired only in “some remaining cases” and that too after consulting farmers, paying proper compensation and obtaining experts’ views. In the process “necessary balance” would be maintained to protect the farmers’ interests and ensure agriculture development.”
Incidentally, this is in tune with the amendment on land acquisition moved by the Centre. Left MPs had opposed the clause of 30 per cent acquisition leaving 70 per cent to be purchased.
Responding to criticism that agricultural land was being taken away from farmers for industrialisation, Mr Dasgupta claimed 11.26 lakh acres had been distributed among poor farmers including scheduled castes and tribes.
The minister's attempts to please the state government employees who form a large chunk of the votebank, through pay revision, have
cost the exchequer an additional burden of Rs 10,000 crore in the budget which showed a deficit of Rs 7 crore. Mr Dasgupta ruled out fresh taxes (“I have not considered it”) but set a target of 20 per cent for the annual growth rate of state taxes through special tax efforts and computerisation. However, the budget speech made it clear that the minister was pinning his hopes on arrear dues on coal royalty rate. Fifty per cent of the additional burden for pay revision would be met by the Centre.
The minister said there would be investment worth Rs 93,180 crore for the proposed PCPIR at Nayachar with a potential for creating jobs for 1.12 million people. He, however, blamed the Opposition for the loss of employment potential and investment due to the Singur fiasco.
http://www.thestatesman.net/page.news.php?clid=1&theme=&usrsess=1&id=247667

The West Bengal assembly was plunged into chaos Friday as the opposition shouted slogans and walked out alleging the government had presented a full-fledged budget instead of a vote-on-account, which was in violation of the election code.

Providing sops to a cross section of people, West Bengal Finance Minister Asim Dasgupta Friday presented a Rs.70-million deficit budget in the state assembly for 2009-10.Referring to the “severe worldwide recession”, Dasgupta later told reporters that the “budget is aimed at helping the common people to increase their purchasing power in this difficult time”.

However, the budget proposals did not include any tax rebate.

In a bid to provide some relief to the “poorer people” during the global economic meltdown, the budget proposed to distribute rice at Rs.2 per kg for Below Poverty Line card holders through ration shops.

“This scheme would continue year after year…and the state government has allocated Rs.422 crore (Rs.4.22 billion) as subsidy for the entire year for this programme,” Dasgupta said in his speech.

While listing the industrial achievements of the state last year, Dasgupta refered to the Tata Nano project not materialising in Singur “due to opposition from a section of the people”.

“It is necessary to mention that the realised investment and employment generation would have increased further, if the small car manufacturing unit at Singur could have completed the remaining part of investment and could be linked with the production of downstream units.”

The state government has decided to create a land bank to facilitate setting up of large-scale units in the state by purchasing relatively infertile land from the farmers at a fair price and thereafter by acquiring land in some remaining cases after consulting the farmers.

“For this purpose, a decision to create a corpus fund of Rs.500 crore (Rs.5 billion) has been included in the strategy to combat recession,” Dasgupta said.

The state government has decided that it is necessary to create an internal market for information technology (IT) and information technology enabled service (ITeS) units and not make the development of this sector so much dependent on exports. It has allocated Rs.250 million for IT and ITeS and its expansion up to the village level.

“As part of the strategy to combat recession, the state government has decided to launch a new scheme of construction and development of housing for the poor and low-income groups with an outlay of Rs.1,000 crore (Rs.10 billion),” he said in the speech.

The state government has planned to appoint 50,000 additional teachers at primary school level. At present, there are 145,000 existing teachers at primary level.


Speaking outside the House, opposition parties Trinamool Congress and Congress threatened to complain to the Election Commission on the Left Front government paying no heed to the model conduct code in force for the election.

Midway into Finance Minister Asim Dasgupta’s budget speech, which contained a series of sops, members of the opposition Congress and Trinamool Congress raised slogans describing the budget as unconstitutional.

Towards the end of the speech, Trinamool and Congress lawmakers walked out of the House.

Speaking to reporters, leader of the opposition Partha Chattopadhyay alleged that the finance minister’s speech violated the model code of conduct.

“The government was supposed to place a vote-on-account for four months. But instead, it addressed issues for the whole year. This is extremely unconstitutional. They have tried to give sops keeping the impending election in mind,” Chattopadhyay said.

“It was nothing but the Left Front government’s election manifesto. The government has violated the model code of conduct and election guidelines,” he said.

“We will move the Election Commission on this issue,” he said.

Congress legislative party leader Manas Bhuniya said the finance minister has exceeded his mandate.

“The language, nomenclature and financial exercise should have been limited to the vote-on-account. But he exceeded his brief. We will take it up with the Election Commission,” Bhuniya said.

Denying the charges, Dasgupta said projects announced in the budget were nothing new.

“We had announced them on Feb 23 to help the common people and beat the recession”.

"Social fascism"

One notable development in this period was that Communists organized the unemployed into a political force, despite their distance from the means of productionMeans of production
Means of production , also called means of labour are the materials, tools and other instruments used by workers to make products....
. Another distinguishing feature of this policy was that Communists fought against their rivals on the left as vehemently as their opponents on the right of the political spectrum, with special viciousness directed at real or imaginary followers of Leon TrotskyLeon Trotsky
Leon Davidovich Trotsky , born Lev Davidovich Bronstein , was a Bolshevik revolutionary and Marxism theorist....
. Social DemocratsSocial democracy
||-||}Social democracy is a political ideology that emerged in the late 19th century and early 20th century....
were targeted by Communist polemics, in which they were dubbed "social fascistsSocial fascism
During the late 1920s and early 1930s, leaders of Communist party linked to the Comintern and Stalinism argued that Capitalism society had entered a "third period" in which "social fascism" posed a threat....
."

In GermanyGermany
Germany , officially the Federal Republic of Germany , is a country in central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea, to the east by Poland and the Czech Republic, to the south by Austria and Sw...
, this approach has been blamed for the rise of NazismNazism
National Socialism, commonly shortened to Nazism or Naziism, originated as a fascist movement in Europe, and refers especially to the movement of the German National Socialist German Workers Party under Adolf Hitler....
because such rigid sectarianism precluded any amount of unity on the left. Hitler's rise to power, consequently, was also a reason for the abandonment of the policy in favour of the Popular Front strategy because Germany became the biggest security threat to the Soviet Union.


North America

Historians of the left have debated the contribution made by Communist activism in North AmericaNorth America
North America is a continent in the Earth's northern hemisphere and almost fully in the western hemisphere....
during the Third Period. Some revisionist authors like Robin D. G. Kelley and John Manley have penned local histories that portray Communist Party members as effective activists, heroic in many cases because their revolutionary zeal helped them confront extremely adverse circumstances. Despite the shadow of Stalinism, in this perspective, the important positive contributions Communist organizers made in working class history should not be discounted.

Critics of this new revisionism argue that these histories gloss over or ignore both the horrors of Stalinism and also the devastating consequences of the Third Period inasmuch as it facilitated the rise of Hitler and alienated the working class writ large from the left because of its sectarianism and adventurism.


Development and causes of the Third Period


In December of 1927, the Russian Communist Party held its Fifteenth Party CongressParty Congress
A Party Congress is a general conference of a political party. The Congress is attended by delegates who represent the party membership....
; prior to this Congress, the faction of the Party led by Stalin had supported the continuation of the New Economic Policy. However, in the cities, industry had become undercapitalized, and prices were rising. In the countryside, moreover, the NEP had resulted in an enrichment of certain privileged sections of the RussiaRussia
Russia , also the Russian Federation , is a country that stretches over a vast expanse of Eurasia....
n and UkrainianUkraine
Ukraine is a country in Eastern Europe. It borders Russia to the north-east, Belarus to the north, Poland, Slovakia and Hungary to the west, Romania and Republic of Moldova to the south-west and the Black Sea to the south....
peasantPeasant
A peasant, from 15th century French pasant meaning one from the pays, the rural or region, is an agriculture worker with roots in the countryside in which he or she dwells, either working for others or, more specifically, owning or Rent...
ry (the Kulaks) because of deregulationDeregulation
Deregulation is the process by which governments remove restrictions on business in order to encourage the efficient operation of markets....
of prices for grain. An embryonic new bourgeoisieBourgeoisie
Bourgeoisie in modern use refers to the ruling class in a capitalism society....
was meanwhile growing up on the basis of the marketMarket
A market is, as defined in economics, a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services....
relations introduced under the NEP and gaining increasing influence both within the Party and in the state apparatus.

These events were leading to growing economic and political instability. The towns were being threatened with a "chronic danger of famine" in 1928-1929. The Left OppositionLeft Opposition
The Left Opposition was a faction within the Communist Party of the Soviet Union from 1923 to 1927 headed de facto by Leon Trotsky....
had opposed the continued marketization of agriculture through the NEP policy, and, since 1924, had repeatedly called for investment in industry, some collectivization in agriculture and democratization of the Party. Threatened by the growing power and revolt from the countryside led by the Kulaks and the strengthening bourgeoisie, the Fifteenth Congress of the CPSU passed resolutions that supported for some of the planks of the Opposition?s platform, and on paper, the Congress? views appeared very left, politically. However, the Left Opposition was expelled.

The new policies of industrialization and collectivizationCollectivisation in the USSR
In the Soviet Union, collectivization was a policy introduced in the late 1920s, of consolidation of individual land and labour into co-operatives called collective farms and state farms....
now adopted were given the slogan "socialist accumulation". The Communist party had publicly proposed collectivization to be voluntary; however, lower level officials occasionally disregarded official policy, and motivated the peasants into joining the communes by use of threats and false promises. In what Issac Deutscher calls "the great change", the new policies of industrialization and collectivization now adopted were carried out in a ruthless and brutal way, via the use of the security and military forces, without the direct involvement of the working class and peasantry itself and without seeming regard for the social consequences. According to figures given by Deutscher, the peasants opposed forced collectivisation by slaughtering 18 million horses, 30 million cattle, about 45 per cent of the total, and 100 million sheep and goats, about two thirds of the total. Kulaks who engaged in these behaviours were dealt with harshly; in December 1929, Stalin issued a call to "liquidate the kulaks as a class" - emphasis on as a class is needed, because it was not a call to eliminate the individuals themselves. Policies included their deportation to remote lands in SiberiaSiberia
Siberia is a vast region of Russia constituting almost all of North Asia. It extends eastward from the Ural Mountains to the Pacific Ocean, and southward from the Arctic Ocean to the hills of north-central Kazakhstan and the borders of both Mo...
and to labour camps. There is debate amongst historians as to whether the actions of the Kulaks and their supporters helped lead to famine, or whether the policy of collectivization itself was responsible. (See Collectivisation in the USSRCollectivisation in the USSR
In the Soviet Union, collectivization was a policy introduced in the late 1920s, of consolidation of individual land and labour into co-operatives called collective farms and state farms....
, HolodomorHolodomor
The Holodomor was a famine in the territory of Soviet Ukraine in the years 19321933 and one of the largest national catastrophes of the Ukrainians in modern history, with loss of human life in the range of millions; the famine was caused by the...
.)

In the West, the crisis of capitalism was coming to a head with the beginning of the Great DepressionGreat Depression
The Great Depression was a worldwide Recession which started in 1929 and lasting through most of the 1930s....
in 1929, and the Communist International's Sixth Congress viewed capitalism as entering a final death agony, its "third period of existence" where the first had been capitalism during its rise prior to World War IWorld War I
World War I, also known as the First World War, the Great War and "The War to End All Wars" was a World war war that took place mostly in Europe between 1914 and 1918....
, and the second was the short period after the crushing of the post-WWI revolutionRevolution
A revolution is a drastic change that usually occurs relatively quickly. The word revolution means "a turn around." This may be a change in the social or political institutions over a relatively short period of time, or a major change in its cu...
s when capitalism seemed again to have stabilized.

The formal institution of the Third Period occurred at the 9th Plenum of the Executive Committee of the Communist International (E.C.C.I.) in February of 1928. This helped in dovetailing the "Left" of the Russian Communist Party with that of the Comintern itself.

To the Comintern, a decisive and final revolutionRevolution
A revolution is a drastic change that usually occurs relatively quickly. The word revolution means "a turn around." This may be a change in the social or political institutions over a relatively short period of time, or a major change in its cu...
ary upheaval was afoot and all its sections had to prepare for the immediate advent of world revolutionWorld revolution
World revolution is a Marxism concept of a violent overthrow of capitalism that would take place in all countries, although not necessarily simultaneously....
. As part of this theory, because the Comintern felt that conditions were strong enough, it demanded that its political positions within the workers? movement be consolidated and that all "reactionaryReactionary
Reactionary is a political epithet, generally used as a pejorative, originally applied in the context of the French Revolution to counter-revolutionary who wished to restore the real or imagined conditions of the monarchy Ancien Rgime....
" elements be purged. Accordingly, attacks and expulsions were launched against social democrats and moderate socialists within labor unions where the local CP had majority support, as well as Trotskyists and united frontUnited front
A united front is an Wiktionary:alliance of Left-wing politics working class organizations. Historically, a united-front referred to tactical alliances between social democracy and communism parties....
proponents. The CPSU also encouraged armed rebellion in ChinaChina
China is a Culture of China and ancient civilization in East Asia. Due to the stalemate of the last Chinese Civil War following World War II, the word "China" is used today by two de facto separate states: the People's Republic of China and...
, GermanySpartacist League
The Spartacist League was a left-wing Marxism revolutionary movement organized in Germany during and just after the politically volatile years of World War I....
, and elsewhere.

Although shortcomings and crippling ideological vacillations brought this Period to an end, the tone of the "Third Period" resonated powerfully with the mood of many militant workers of the time, especially following the Stock Market Crash of 1929 and the ensuing crises of the 1930s. In many countries, including the United StatesCommunist Party USA
The Communist Party of the United States of America is a Marxism-Leninism political party in the United States....
, local Communist Parties' membership and influence grew as a result of the "Third Period" policies.
http://www.absoluteastronomy.com/topics/Third_Period




The Communist movement in Hungary, 19181944: an outline
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JSTOR: Communist Strategy and Tactics in Czechoslovakia, 1918-48.
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Are we reliving a crash like 1929? | International Communist Current
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Communist Party of India (Marxist) - Wikipedia, the free encyclopedia
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Bengal raise rests on M-factor
OUR BUREAU
Calcutta, March 20: The Marxist-midwifed front or Manmohan Singh or the market.

On these three — not necessarily in that order — rests the Bengal government’s intention to pay higher salaries to its employees.

The state government will have to make provisions for paying Rs 10,000 crore in 2009-10 for implementing the fifth pay panel’s recommendations, finance minister Asim Dasgupta said today while presenting the vote-on-account.

The best-case scenario for finding the money will be a fast clearance of coal royalty dues by the new government at the Centre which owes the state Rs 9,494 crore. If a friendly government — say a third front dispensation — comes to power after the elections, Dasgupta’s task will be made easy.

The next-best option is Manmohan Singh returning to power, which can raise some hopes in his good friend Buddhadeb Bhattacharjee of a quick payment — never mind what Prakash Karat thinks.

But conscientious finance ministers such as Dasgupta are not susceptible to the charms of the imponderables of politics. So he has not factored in any such tantalising possibilities as coal dues or a dole from Delhi to meet half of the additional wage bills as demanded by some states.

“I do not have any written commitment. So I have not factored them in. If those are cleared, I don’t have to make additional borrowings,” Dasgupta said.

Which leaves him with the other M: market borrowings. “There has to be a way out and so we are thinking whether to go for additional borrowings. However, we haven’t yet decided on the borrowing amount,’’ the minister said after tabling a Rs 7-crore-deficit vote-on-account.

Borrowings will add to the burden of the government which is said to be already paying Rs 13,000 crore a year as interest on past loans.

Bengal has to pay Rs 11,500 crore more for wages, pension and arrears. Of the total amount, Rs 10,000 crore has to be paid in the new financial year beginning next month. The state also has to fund the Rs 5,106-crore stimulus package announced last month.

The sops, which include rice for Rs 2 a kg for the poor and recruitment of 50,000 teachers, were announced before the model code of conduct kicked in but they have been reproduced in the budget.

Dasgupta is also hoping that tax collection would go up by 20 per cent from 17 per cent. The interim budget did not have new tax proposals because of the model code.

The Opposition said the vote-on-account was a Left poll manifesto and it would move the Election Commission, but Dasgupta denied the charge.
http://www.telegraphindia.com/1090321/jsp/frontpage/story_10702646.jsp

Economic review gives the lie to state’s job claims

KOLKATA, March 20 : Now it's official. The performance of the Left Front government in providing guaranteed jobs for 100 days a year for the rural people during 2007-08 is abysmally poor ~ 25 days on an average against a national average of 44 days.
This was revealed in the economic review for 2008-09 presented today along with the state vote-on-account Budget. The coverage of the rural women under the National Rural Employment Guarantee Act is even worse. The review stated: “Participation of women in NREGA work has been low in most of the distrcits. Person-days generated by women were 17.15 per cent of total person-days generated during 2007-08.” The participation of women is, however, much higher in areas with high concentration of tribal population. Incidentally, the state could provide only 14 days work on an average during 2006-07. The performance of Malda and Murshidabad districts was “very poor”. The LF-government's image as pro-poor took a heavy beating when it was revealed that its performance in providing 100 days guaranteed work under NREGA was among the worst in the country. The revelation came when rural Bengal was seething with anger for the state government's attempts to forcibly acquire farm land for industrialisation and corruption among the rank and file of the ruling combine.
Ironically, 74.70 per cent of the available fund was used to create jobs for 25 days on an average during 2007-08. The state received Rs 1,014.06 crore and spent Rs 968.81 crore. The review stated :"The major problem of implementation of NREGA is inordinate delay in receiving funds to meet the demand. In areas with low demand for work, fund had to be retained for taking up new project, whereas other areas with high demand suffered due to inadequate fund.” n SNS
http://www.thestatesman.net/page.news.php?clid=22&theme=&usrsess=1&id=247755


FRONTS AND FRIENDSHIPS
- The Indian political party is just a vehicle on its way to Delhi
Sunanda K. Datta-Ray


Despite Disraeli’s belief that parliamentary government is impossible without parties, the current campaign suggests that the principal — often only — purpose of a party is to further the ambitions of an individual. Parties presuppose ideas if not ideology. A great deal of time, effort, expense and anguish might be avoided if this pretence were dropped.

It has in practice. There’s anxious heartburning when Sitaram Yechury calls on Sharad Yadav or any other party leader not because he might convert them to revolution but because he keeps the headcount in the quinquennial Gentlemen vs Politicians race for the prime ministership. As for the other half, Mayavati and Jayalalithaa probably regard themselves as the only men in clusters of old women. But does that make them Gentlemen? When Barbara Castle lamented in the Commons that the English bulldog (Churchill) had become America’s lapdog, a Tory MP yelled, “You are not, of course, a dog!” He didn’t need to spell out the alternative for sedate members even on his own side to express shock.

The immediate gain from a partyless democracy would be respite from a bewildering jungle of initials and acronyms. UPA and NDA are familiar codes for L.K. Advani and Sonia Gandhi. But we must also contend with UDF and LDF; BSP and BJD; PDP and TDP; LJP, NCP and IUML. Tamil ingenuity accounts for a formidable clutch — DMK, DMDK, AIADMK and PMK. To the many other letters of the alphabet lurking in the woodwork can be added the NCNBSF or “Non-Congress non-BJP Secular Front” which boasts more chiefs than Indians, each plotting for a chance not to repeat the “historic blunder” that Jyoti Basu finds so hard to forget or forgive.

The Politicians can be identified from the flamboyant largesse that has all but replaced political programmes, constituency interests and national issues. Houses for journalists in Punjab, wristwatches in Madhya Pradesh, land, water, electricity and an abundance of colour TV sets (flat screen presumably) for voters in Gujarat, Andhra Pradesh, Karnataka and elsewhere. Advani’s more imaginative Rs 10,000 laptops may be earmarked for students and his smart mobiles for families languishing below the poverty line, but the rule hasn’t yet been invented that doesn’t also indicate a way round it. Everyone is a student, of life if nothing else, while a profusion of BPL cards issued by the government makes Andhra Pradesh appear truly poverty-stricken. The Marxists are the cleverest: the parliamentarian who reportedly passed off an empty envelope with great public fanfare as a cheque for Rs 25,000 for a bereaved mother deserves the finance portfolio if Karat becomes king instead of kingmaker.

This is not the criminalization of politics, as N.N. Vohra might say. It’s the politicization of crime, with the Supreme Court staying convictions to accommodate stellar ambition. This other overlapping is confirmed by Amar Singh’s role in the appropriately named film, Chargesheet. Ronald Reagan’s “How can a president not be an actor?” when asked if it was seemly for an actor to be president could be applied to India’s entire political dramatis personae. Finally, the Gandhi-Nehrus confirm that blood is thicker than water. If Chiranjeevi can produce an actor brother, Naidu dazzles voters with three thespians — two brothers-in-law and a nephew. Atal Bihari Vajpayee’s nephew is contesting. Thanks to her future daughter-in-law, the Samajwadi Party’s Ranjana Bajpai has added another Brahmin face to the BSP’s ranks.

The future belongs to the Bal Thackerays who understand that Indians don’t cast their vote but vote their caste, not to Yechury with his textbook denunciation of corruption, criminalization, communalism and casteism. Without the four Cs, India would not be Indian. Also, families mean feuds. The Dutts can now preen like the royal Scindias since they, too, are divided by politics. Rabri Devi’s brothers are on the rampage in what Biharis call the “sasural party”. Varun Gandhi’s kin must be delighted that he is Thackeray’s hero.

Caste, community and Thackeray shore up Pawar’s hopes. Worsted in 1991 by P.V. Narasimha Rao (who might never have existed so far as Congress publicity is concerned), he grumbles that since Andhra Pradesh, Gujarat and Karnataka have had a go at the top job (he doesn’t mention Punjab or Uttar Pradesh’s long monopoly), it’s high time for a Maratha manoos. The Shiv Sena supports him, presumably because its Hindu enthusiasm stops short of peripatetic Sindhis. Paswan agrees with Mayavati that the next prime minister should be Dalit but his caste loyalty stops short of females. Maybe the job should rotate like Malaysia’s kingship among all the states and castes. That would mean smaller elections with fewer than the present 21 lakh security personnel and no need to deprive people of the tamasha Lalit Modi is peddling.

Ironically, the party system also highlights the central role that even a fragmented Congress occupies. As Pranab Mukherjee (“the permanent PM”, he laughs, borrowing Piloo Modi’s joke) concluded after a spell in the wilderness, there is no future in India’s secular democratic politics save in the Congress. S. Bangarappa, the former Karnataka chief minister, knows that all too well, having trudged to the Congress door no less than five times. Naveen Patnaik may be coming round to the same view. If the Congress hadn’t existed, it would have had to be invented to provide the rest with a foil.

All the prime ministers-in-waiting are obliged to strike a position vis-à-vis the Congress. Refused an alliance, Mulayam Singh seeks consolation in a “strategic understanding”. Lalu Prasad denies that stabbing the “nation’s bahu” (his term in happier days) in the back will derail the UPA. Jayalalithaa accuses K. Karunanidhi of lashing out against Indira and Rajiv Gandhi; Karunanidhi says Jayalalithaa thwarted Sonia Gandhi’s prime ministerial hopes in 2004. It’s not where the NCNBSF chiefs stand today that matters. It’s where they will stand tomorrow when, according to Karat, the front will become an alliance. Even Mamata Banerjee sets her cap at the Writers’ Buildings in collusion with the Congress, which obliged her by banishing the mercurial Subrata Mukherjee to the wilds of Bankura. Nitish Kumar can afford to ignore the Congress since the unfolding saga of Barack Obama’s questionable Indian friends suggests Bihar might be expanding to America.

But Pranab Babu is wrong in crediting Patnaik’s former partner with only the “agenda of communalism, sectarianism and obscurantism”. They also have a one-point agenda and the point is the same. That’s why Narendra Modi feels young Varun has upstaged him. Arun Jaitley’s “loyal but principled opposition” forces him to endure with stony-faced misgiving the progress of a schoolfriend with the knack of getting places. Advani, beaming from “India’s largest political website” with 800 pages, 400 pictures and 250 videos, detects a worrying parallel in Richard Nixon’s experience and intelligence losing out to Jack Kennedy’s handsome profile.

The pattern bristles with intrigue-ridden sub-plots. Delimitation has compounded the complexity of canvassing. Voters in Hooghly and Farukhabad cannot be alone in refusing to vote unless electoral promises (like building new roads) are kept. The nitty-gritty of governance matters more than manifestos. As Indira Gandhi realized, parties are a drag on leaders. Fear of the Supreme Court prevented her from going it alone but she took her cue from Arthur Balfour, the British prime minister who said he would sooner consult his valet on politics than the party conference. Far from reflecting a broad consensus of like-minded people committed to a particular programme for the national weal, the party is a vehicle on the road to Delhi . Like Vajpayee, the only leader publicly to admit that no one can go through the electoral mill and still pretend to be Mr Clean, Manmohan Singh and Jaswant Singh are also Gentlemen fallen among Politicians. Vajpayee, alas, has withdrawn from the ring. Jaswant Singh never deigned to enter it. That doesn’t leave voters much choice.

sunandadr@yahoo.co.in
http://www.telegraphindia.com/1090321/jsp/opinion/story_10698331.jsp


Budget Speech of DR ASHIM DASGUPTA

MR. SPEAKER SIR,
With your permission, I rise to present the Annual
Financial Statement for the financial year,
2009-10.
1
1.1 Since the elections to the Parliament have
been announced, it is deemed necessary in accordance
with the code of conduct for elections to seek a
Vote-on-Account for the first four months beginning
April 1, 2009.
1.2 This Annual Financial Statement is presented
at a point of time when a severe world-wide recession
has set in. On the basis of analysis, it is found that
a major cause behind this recession has been the
policy of socially uncontrolled globalisation. Since it
is this policy of globalisation that has been followed
in our country from the national level since 1991, the
recession has also adversely affected the country’s
economy, with particularly damaging effect on the
vast majority of common people. The rate of growth
of the country’s Gross Domestic Product has sharply
fallen by 2 per cent or more from the last year’s
(2007-08) level and has been estimated to reach 7.1
per cent or even a lower figure in the current year
(2008-09). Over the period of last five months, about
12 lakh workers have lost their jobs in the textile
industry alone, with further job-loss being reported
AKD08-09(1)-N
2
from industries related to iron and steel, information
technology, cement and construction.
1.3 Confronted with this crisis, and for
overcoming it in the interest of common people of the
country, we have to move, even within the limitation
of the present State structure, towards a new
alternative path of economic policy. The State
Government has, therefore, recently urged the Central
Government to arrange, as soon as possible, a
discussion between the Centre and the States in a
democratic manner to assess the present critical
situation. On the basis of this discussion, it would
be important to formulate a programme for an
alternative path of economic policy and then to start
implementing this programme towards overcoming
this crisis. While formulating this alternative
programme, it would be important to note that this
recession has particularly caused damage to those
industries (such as, iron and steel, information
technology etc. as mentioned earlier) which have
remained dependent significantly on exports specially
to the richer countries. In the alternative programme,
therefore, less reliance should be placed on the
external markets, and more emphasis given on the
growth of internal domestic market on the strength
of self-reliance. This growth of self-reliance does not
mean mindlessly shutting out from the international
trade. It only points out the need for development of
a core of self-reliance, a core which would protect us
from the hazards of instability in the external markets.
After developing this core of self-reliance, it would be
prudent to participate in external trade in specific
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sectors, on the basis of mutual interests, and not on
the compulsions of indiscriminate globalisation, with
the concerned countries having bonds of
complementarity, specially in developing and the
Middle World.
1.4 To encourage more reliance on internal
market also does not mean extending protection to
any domestic monopolistic inefficiency. On the
contrary, it means curbing the monopolistic interests
by promoting competition and creation of
opportunities for development of domestic market.
For this development of domestic market, the most
important factor would be the generation of regular
employment, income and purchasing power of vast
majority of common people. This generation of
employment and income would therefore be the main
targeted objective of the alternative programme.
1.5 In the alternative programme, for both the
purposes of employment and income generation of
common people as well as curtailment of monopoly,
it is essential to take steps towards creation of more
equal competition and opportunities. To this end, it
would be important, on the one hand, to curb
monopolistic powers and release forces of competition
within the market structure itself. On the other hand,
where the market mechanism is known to be failing
or incomplete (as for instance, in the sphere of
education and health care for the common people,
roads and electricity in rural areas, etc.) and expansion
of welfare role of the Government is essential, it
would also be important there to curtail the
monopolistic control within the Government itself
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and move towards appropriate decentralisation with
accountability.
1.6 It is for achieving the objective of developing
domestic market on the basis of more employment
and production generation through enhancement of
competition that in the alternative programme it would
be important, in the sphere of agriculture, to place
priority on land reforms, along with focus on the
required expanded welfare role of the Government
as well as cooperatives in providing assistance to
common farmers for irrigation, drainage and rural
infrastructure. In the sphere of industries, for the
same objective, it would be relevant to emphasise,
along with the large and medium industries, the role
of small industries and self-help groups, and provide
assistance to the common entrepreneurs in terms of
improvement of industrial infrastructure through
expanded role of the Government, cooperatives and
also joint-sector enterprises in a coordinated manner.
In order to contain inflation and provide relief to the
common people, it would also be necessary, for
curtailing the monopolistic power in the trading sector,
to strengthen the public distribution system in
essential commodities, with provision of appropriate
subsidy, from the national level in coordination with
the States. It would be further required to expand the
role of nationalised and cooperative banks for
disbursing adequate and timely loans to common
farmers and industrialists as well as common traders
at softer rate of interest for large-scale development
activities in agriculture, industry and trade which are
now essential for growth of domestic market.
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1.7 In the alternative programme along with these
steps, it would again be necessary, for reasons
mentioned earlier, to reduce monopolistic control or
over-centralisation in the performance of welfare role
of Government itself, and move towards more
decentralisation of financial and decision-making
powers. This process of decentralisation should start
from the level of Central Government to the level of
State Governments, and then within each State, from
the State level through the Panchayats to the level
of villages in rural areas, and through the
municipalities to the level of wards in urban areas,
and also by involving the local common people for
upholding the concern for accountability. It is this
need for decentralisation in the performance of
adequate role of the government that has been
unanimously upheld in the joint memorandum of the
Empowered Committee of State Finance Ministers
before the Thirteenth Finance Commission. In this
presentation, among others, the issues relating to the
need for raising the States’ share of Central taxes
from the present proportion of 30.5 per cent to 50
per cent, transfer of all Centrally Sponsored Schemes
in the State subjects to the States with funds and
reduction of burden of Central loans on the States
were strongly emphasised for an expeditious solution.
While presenting this State Budget, only some of
the major points of the alternative programme for
overcoming the present recession have been briefly
mentioned. When needed, all these points can be
developed and analysed in detail in course of
discussion.
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2
2.1 This alternative programme for overcoming
the recession is meant to be applicable for the country
as a whole. It is only those aspects of this programme
which are relevant for the State, and are feasible
within its limited power, that have formed the basis
of formulation and implementation of the State-level
programme. The main objective of this State-level
programme, therefore, has, once again, been to
increase the generation of employment and income
of the common people, and then, on the basis of their
enhanced purchasing power and other initiatives,
expand the State’s internal market. It is for this
objective that priority has been given to the spread
of more competition and opportunities, so that
production in agriculture and industry is enhanced
in a manner which would help ensure the generation
of employment and income. It is to this direction,
again, that an emphasis has been laid on enhanced
welfare role of the State Government for development
of general infrastructure (such as, irrigation, drainage,
power, etc.) and social infrastructure (such as,
education, health and housing for common people)
so that, on the one hand, employment-oriented growth
of production and services is expedited and, on the
other hand, internal demand is generated for the
materials, such as, iron, steel and cement, from the
process of construction of infrastructure itself.
Similarly, any step taken by the State Government
to provide subsidy, within its limited power, in the
public distribution of essential food items would also
help contain inflation and protect, to some extent,
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the real income of the poorer sections of the society
during the period of recession. A special emphasis
has also been assigned in this alternative programme
to the welfare of minority communities, backward
classes and women, and to the regional development
of North Bengal, Paschimanchal and the Sundarbans.
Moreover, in the implementation of the alternative
programme, along with steps towards more
competition in the market structure, a serious
attention is also given in the Government sphere to
people-oriented decentralisation through the
Panchayats and municipalities.
2.2 It is important to mention that after the
statements of the Central Government and also the
recent Union Budget, the State Government decided
that to overcome the adverse effects of recession on
the common people, certain additional steps needed
to be taken urgently. It is on this consideration that
a State-level package of schemes, formulated along
the line of alternative programme, was announced on
February 23, 2009. Some of these schemes are yearspecific
with beneficial effects from the current year,
others will be implemented over more than one year.
2.3 In the sphere of agriculture, the main thrust
of the State-level alternative programme is to uphold
the interest of common working farmers in such a
manner that enhancement of production can take
place to ensure that employment and incomes of
farmers are increased, the State’s self-sufficiency level
of production is steadily reached, crop-diversification
is achieved, agricultural productivity is improved,
cost of cultivation is reduced by less reliance on
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import-dependent chemical fertilisers and more
emphasis on organic and bio-fertilisers, fair price of
the produce is ensured and facilities of institutional
credit are extended.
2.4 Since redistributive land reform itself is a
move towards more competition and opportunities in
agriculture, and Farm Management Studies data
repeatedly document the record of highest employment
generation and production per acre from the land of
small and marginal farmers, therefore, land reform
has remained the basis of alternative programme of
the State in agriculture.
2.5 In the sphere of land reforms, due to the long
history of peasants’ movement in the State, and also
the supportive role of the State Government, the
place of West Bengal, according to the data of
Government of India, has remained in the foremost
position in the entire country. The total agricultural
land distributed in this State (upto 15th January, 2009)
is 11.26 lakh acres and the number of poor farmers
benefited from this distribution has now reached 30
lakh. Of these benefited farmers, nearly 55 per cent
belong to scheduled castes and scheduled tribes—an
achievement which has not been possible in any other
State in the country. With the objective of empowering
women in terms of distribution of land, the number
of joint-pattas has now reached 6.04 lakh, and that
of female pattas 1.61 lakh. In no other State, again,
has there been such progress in the distribution of
pattas in favour of women. In addition, as part of
land reforms, the number of recorded sharecroppers
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has now reached 15.12 lakh and the number of
beneficiaries of distribution of homestead land has
also reached 5.59 lakh. Due to emphasis given from
the State level, it has further been possible to arrange
for soft loan to 60,727 assignees of vested land and
recorded sharecroppers.
2.6 For ensuring growth of production and
employment in agriculture, it has been considered
necessary that, along with land reforms, steps should
be taken to extend facilities of irrigation, achieve
wider coverage in terms of use of improved seeds and
also encourage relatively more application of organic
and bio-fertilises.
As a result of according priority to extension of
irrigation facilities, the total net irrigated area as a
proportion of the total net agricultural area in the
State has increased steadily from 32 per cent in
1977-78 to nearly 72 per cent in 2008-09. In regard
to the use of improved seeds, particularly in the case
of production of paddy, while in the year 1977-78,
only 28 per cent of the cultivated area of the State
was covered under improved seeds, in 2008-09, the
coverage has reached 97 per cent. Regarding the use
of fertilisers, it has been noted from scientific
experiments as well as from experience, that use of
only chemical fertilisers tend to reduce the rate of
growth of soil-related productivity. Moreover, since
most of the chemical fertilisers are now imported,
and their prices are often increased due to the policy
of globalisation, the farmers get adversely affected.
The State Government has therefore decided that
instead of relying only on the use of chemical fertilisers,
AKD08-09(1)-N
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emphasis would be given, for improving productivity
with relatively less cost, on step-by-step increase in
the application of local resource-based organic and
bio-fertilisers. It is necessary to mention here that as
a result of this relative shift in emphasis, over the
last three years, while the use of chemical fertilisers
has increased by 5.6 per cent from 13.65 lakh metric
tonne in 2006-07 to an estimated 14.42 lakh metric
tonne in 2008-09, that of organic fertilisers has
increased by 42.9 per cent from 87.47 lakh metric
tonne in 2006-07 to 125.0 lakh metric tonne in 2008-
09, and that of bio-fertilisers by nearly 72.00 per cent
from 465.0 metric tonne to 800.0 metric tonne. In
other words, due to the adoption of alternative
programme in the State level for improving productivity
in recent years the rate of increase in the use of
organic and bio-fertilisers has increased at a much
faster rate than that of imported chemical fertilisers.
2.7 In consequence of all these steps, starting
with land reforms, it is now estimated that despite
the adverse effect of floods and natural calamities in
Paschim Midnapore, Purba Midnapore, 24-Parganas
(South), 24-Parganas (North), Jalpaiguri and other
districts (in all 13 districts) causing damage to crops
in 2.31 lakh hectares of agricultural land, the rate
of growth of Net State Domestic Product of West
Bengal from agriculture and allied activities in the
current year (2008-09) will increase by 4.4 per cent,
which is much higher than the corresponding rate
of growth of 2.6 per cent of Gross Domestic Product
of India from agriculture and allied activities. The
estimated total production of rice in the State will
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increase from 147.19 lakh metric tonne in the last
year to 155.33 lakh metric tonne in the current year
which would be much higher than the State’s
requirement of rice of 137.62 lakh metric tonne. Due
to adverse effect of “blight” disease, the production
of potato in the State will fall from the last year’s level
of 99.0 lakh metric tonne to 58.62 lakh metric tonne
in the current year. However, production of potato in
the State in the current year will still be higher than
the State’s internal requirement of 54 lakh metric
tonne, and the position of West Bengal in potato
production will again remain in the second place
among all the States in the country. In the sphere
of vegetables, the total production in the State will
reach 128.04 lakh metric tonne in the current year,
and the State’s rank will once again be first among
the States. In the current year, the levels of production
of wheat, pulses and oilseeds are estimated to increase
to the levels of 9.75 lakh metric tonne, 1.89 lakh
metric tonne and 7.48 lakh metric tonne respectively,
and as a result, the total production of foodgrains in
the State (including rice, wheat, pulses and other
crops) will increase to the level of 170.19 lakh metric
tonne in the current year which would be very close
to the State’s self-sufficiency requirement of 170.80
lakh metric tonne.
2.8 In order to strengthen the State’s efforts at
achieving self-sufficiency in foodgrains and reducing
deficit in other crops, it is urgent to reach selfsufficiency
in the production of improved seeds (as
already attained in the cases of paddy and oilseeds)
AKD08-09(1)-N
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in all the major crops. In addition, steps are also
urgently needed to improve agricultural productivity
by further enhancing application of organic and
bio-fertilisers on the basis of self-reliant local resourcebased
production. This enhancement of self-reliant
and improved process of agricultural production will
also help to increase generation of employment and
income as well as internal market, and add a new
dimension to our efforts at overcoming the recession.
With this objective in view, 64 bio-villages have already
been set up in the State, and a decision has been
taken, as a part of State-level package against
recession to extend this effort further by setting up
in each block one bio-village, one seed village and one
soil testing laboratory, and taking special steps to
improve productivity in North Bengal, Paschimanchal
and the Sunderbans. With these priorities in mind,
the plan outlay for the Department of Agriculture is
proposed to be increased from Rs. 89.99 crore in the
current year (2008-09) to Rs. 178.14 crore in the next
year.
2.9 Due to the emphasis laid on horticulture and
floriculture, not only has the State’s production of
fruits, vegetables and flowers significantly increased
in recent years, but West Bengal has also been
positioned in terms of level of production in the
front-rank in several areas (such as first position in
pineapple, second position in litchi, sixth position in
mango and again first position in vegetables, as already
mentioned). Since in all the areas, industry grows out
of the womb of agriculture, a priority has been
accorded to development of food processing industries
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related to these crops. To this end, along with the
setting up of 5 special processing zones, efforts have
also been made to construct 12 food parks, with due
emphasis on internal markets as a part of our efforts
at combating recession. Keeping this direction in
view, I propose to enhance the plan outlay for the
Department of Food Processing Industries and
Horticulture from Rs. 32.35 crore in the current year
to Rs. 39.30 crore in the next year.
2.10 The special significance of irrigation and
drainage in maintaining growth of production,
employment and income has already been noted. In
the sphere of irrigation, for quicker implementation
of projects, it is important to lay emphasis on minor
irrigation, and particularly on implementation of
surface water-based minor irrigation projects. On the
basis of experience gathered over the last few years,
it is found that if in the land of small and marginal
farmers, one-fifth of land area around the centre is
used to dig a 10-feet-deep water body, then on the
basis of this water body, rest of the land can be
irrigated to grow several crops, and the same water
body be used for duckery etc. in an integrated manner
for generating additional income and employment
from the land of even sub-marginal farmers. With an
emphasis on extension of this and similar other minor
irrigation projects in an extensive manner, as a part
of the State’s efforts at overcoming recession, the
plan outlay of Water Resources Investigation and
Development Department is proposed to be increased
from Rs. 166.75 crore in the current year to Rs. 209.0
crore in the next year.
AKD08-09(1)-N
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2.11 In the sphere of major irrigation projects,
keeping in view the national level significance of the
Teesta Project, the State Government has demanded
over a long period for its inclusion as a national
project. The Central Government has accepted this
demand about a year back. However, the
communication of the Centre on the status of the
project and guidelines has been sent only recently.
As a result, no additional Central fund has been
made available in the current year, and as of now,
the State Government has incurred nearly 75 per
cent of the total expenditure on this project
(Rs. 1,229.57 crore), and the remaining 25 per cent
has been borne by the Centre. It is expected that in
the coming years, 90 per cent of the balance
requirement of funds (now estimated at Rs. 1,759.04
crore) for completion of the first part of the first phase
of work will be borne by the central Government and
the remaining 10 per cent by the State Government.
In that case, the overall Central share of the total
expenditure (Rs. 2,988.61 crore) including the
expenditure already incurred, will be 63 per cent and
the State’s share will be 37 per cent. It has also
been possible to include another major project,
namely, Subarnarekha Project (with project cost of
Rs. 1,615.23 crore) under the Accelerated Irrigation
Benefit Programme (AIBP), for which under the general
funding pattern, 75 per cent of expenditure will have
to be borne by the State Government and 25 per cent
by the Central Government. However, since a large
part of the command area of this project is inhabited
primarily by people belonging to the Scheduled Tribes,
the State Government has decided to urge upon the
Centre to bear, as per the existing norms, 90 per cent
AKD08-09-N
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of the expenditure for the project. It is necessary to
mention that the State Government has already spent
Rs. 38.70 crore and earmarked an additional sum of
Rs. 21.50 crore for implementation of the project.
The prevention of erosion of the Ganga-Padma river
system is also a national-level issue. In spite of this,
of the total expenditure (Rs. 717.89 crore) incurred
from 1977-1978 to 2008-2009 on prevention of this
erosion, about 56 per cent (nearly Rs. 400 crore) had
to be borne by the State Government and the
remaining 44 per cent by the Central Government.
In recent years, although the Centre has taken the
responsibility of anti-erosion works of Ganga-Padma
River System in areas adjacent to the Farakka Barrage,
it has refused to undertake any necessary
maintenance of anti-erosion works in this region. As
a result, the additional financial burden of such
maintenance works also had to be borne by the State
Government. Moreover, the erosion of Bhagirathi river
has caused serious damage in the districts of
Murshidabad, Nadia and Burdwan. The State
Government has already spent Rs. 87 crore for
preventing erosion of Bhagirathi river. In addition, a
sum of Rs. 22 crore has now been allotted for
preventing erosion in North Bengal rivers.
The Detailed Project Report for the Kaliaghai-
Kapaleswari Basin Drainage Scheme at an estimated
cost of Rs. 780 crore has already been submitted to
the Central Government for inclusion in the Centre-
State joint project (with the sharing of expenditure
between the Centre and the State in the proportion
of 75 : 25). Similar reports are being prepared for the
AKD08-09(1)-N
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Ghatal and the Kandi Master Plan for drainage. In
addition, works on drainage scheme for a part of
Lower Damodar Area and Ghia-Kunti Basin have
been taken up at the initiative of the State Government.
After completion of reclamation works on an important
stretch (24.9 km.) of Ichamati river by the State
Government with expenditure of nearly Rs. 24 crore,
for reclamation of remaining stretches in the districts
of North 24-Parganas and Nadia at the State’s own
expenditure, permission has been sought from the
Central Government due to proximity to border areas
for starting of works. The permission has not yet been
received. After giving priority to these major irrigation,
anti-erosion and drainage projects, I propose to
enhance the plan outlay of Irrigation and Waterways
Department from Rs. 400.90 crore in the current
year to Rs. 521.50 crore in the next year.
2.12 In the sphere of fisheries, the State’s total
fish production has increased from 14.71 lakh metric
tonne in 2008-09 to 15.0 lakh metric tonne, which
is more than the internal requirement (13.46 lakh
metric tonne) of the State. For combating recession,
emphasis is being placed on enhancement of
employment and income generation of the fishermen
through more extensive formation of self-help groups,
encouragement of economic pisciculture, use of
improved seeds, assistance in terms of training and
marketing and expansion of water areas. With these
areas of emphasis in view, it is proposed that the plan
outlay of the Department of Fisheries be raised from
Rs. 75.42 crore in the current year to Rs. 93.42 crore
in the next year.
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2.13 In the sector of animal resource development,
the total milk production in the State has increased
from 40.77 lakh metric tonne in 2007-08 to an
estimated quantity of 41.95 lakh metric tonne, which
is about 72 per cent of the State’s requirement. There
is thus a significant scope for enhancing production
of milk for internal market of the State. A similar
scope of expansion also exists for production of egg
as well as meat for meeting the State’s internal
demand. A priority has therefore been assigned to
increasing production of milk, egg and meat in the
State for the domestic market with emphasis on
formation of self-help groups, training for artificial
insemination, health care of animals, preventive
measures against bird flu and marketing. With this
objective in view, the plan outlay for the Department
of Animal Resources Development is proposed to be
increased from Rs. 62.57 crore in the current year
to Rs. 73.18 crore in the next year.
2.14 In the sphere of forestry, the main objective
of the State policy has been to involve the forest fringe
people in coordination with the Forest Department
and the Panchayats in the Joint Forest Management
for protecting the forests with their active participation,
and on the basis of sharing with them a part of
usufructs. As a result, at present 4.65 lakh forest
fringe people have become members of the 4,084
Joint Forest Management Committee. It is through
these efforts that the forest cover as a proportion of
the total area of the State has increased from 14.32
per cent in 1988 to 15.68 per cent in 2006. If the
efforts of social forestry in extending tree-cover is
AKD08-09(1)-N
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added, then the total proportion of tree and forest
cover has now increased to nearly 31 per cent, which
is higher than the national target of 30 per cent at
the end of Eleventh Plan period (2007-12). With this
emphasis on afforestation through involvement of
local people as well as enhancement of their earnings,
the plan outlay of the Department of Forests is
proposed to be enhanced from Rs. 59.77 crore in the
current year to Rs. 68.77 crore in the next year.
2.15 According to the analysis of the Expert
Committee (Datey Committee) on banking structure
in India, the minimum requirement of annual
disbursement of bank credit for agriculture and allied
activities in the State is Rs. 10,000 crore. In this
background, it was decided, after discussions with
the representatives of Reserve Bank of India and the
banks, that the target for credit disbursement by the
natinalised banks and cooperative banks in
agriculture and allied activities in the current year
in the State should be enhanced by 33 per cent from
the level of previous year and be fixed at least at
Rs. 6,693 crore. As per the latest information, however,
the anticipated credit disbursement in this year
would be 95 per cent (Rs. 6,358 crore) of the target.
In this situation, after further discussions with the
representatives of Reserve Bank of India and other
banks, it has been decided, particularly in view of the
State-level programme of combating recession, that
the target for credit disbursement in agriculture and
allied activities in the State should be significantly
increased to the level of Rs. 9,006 crore and that 100
per cent of the target should be achieved.
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2.16. For ensuring increase in the income of the
common farmers, it is urgently necessary that the
farmers get fair price for their produce. To this end,
when the farmers had faced problems in getting fair
price of potato due to over-production in the last
year, the State Government intervened to provide
relief to the extent of Rs. 86 crore for buying some
quantity of potato at fair price, providing subsidy for
transport of potato to other States and also extending
rent-related subsidy for storage of potato. In the
current year, as the farmers have again faced a
problem due to the crop-damage caused by the “blight”
disease, the State Government has provided premium
for insurance coverage, and also decided to help the
farmers by distribution of free minikits for subsequent
crops and extending wider coverage of crop insurance
for the next year.
In the case of rice, for ensuring fair price for the
farmers as well as consumers, the State Government
has in the current procurement year (October 1,
2008 to September 30, 2009) taken a special initiative
in coordination with the Food Corporation of India
and the cooperative agencies for procurement of
paddy/rice and distribution through the ration shops.
As a result of the special efforts, in relation to the
target of procurement of rice of 16 lakh metric tonne
for the entire procurement year, the actual
procurement in the first about five and half months
(up to March 12, 2009) has been 8.03 lakh metric
tonne which is more than twice that of the last year’s
procurement of 3.75 lakh metric tonne during this
period. This has been a new record in the procurement
of rice in the State. On the strength of this procurement
AKD08-09(1)-N
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of State’s own rice, the State Government has decided,
as a part of providing some relief to the poorer people
in the context of recession, to distribute rice at the
rate of Rs. 2/- per kg. for BPL card holders through
the ration shops. Honourable Members will be happy
to know that this programme will continue year after
year, and the State Government has allotted Rs. 422
crore as subsidy for the entire year for this programme.
It is important to note that after the introduction of
this programme, the market price of rice has also
fallen to some extent. In other words, as a part of the
State-level initiative of combating recession, this
programme of subsidised rice distribution has helped
to protect the real income and purchasing power of
the common people which is significant for creation
of internal market.
As a result of noticeable response of the farmers
to this programme, the State Government has also
decided to increase the number of rice godowns in
a decentralised manner through the Department of
Food and Supplies and cooperative agencies. Keeping
this priority in view, it is proposed to increase the
plan outlay of the Department of Food and Supplies
from Rs. 14.0 crore in the current year to Rs. 23.0
crore in the next year, and that of the Department
of Cooperation from Rs. 63.44 crore in the current
year to Rs. 89.34 crore in the next year.
2.17 In consequence of the alternative policy being
followed in the State and the steps taken, beginning
with land reforms, it is found that not only has the
rate of growth of Net State Domestic Product of West
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Bengal from agriculture and allied activities
remarkably reached 4.4 per cent in the current year,
as already mentioned, but it is also noted on a careful
assessment of result of this increase in production
of employment, that there has been creation of
potential of additional employment generation of 2.5
lakh from agriculture and allied activities as well. In
addition, the average daily wage rate of agricultural
labourers in the State has also increased from
Rs. 66.67 in 2006-07 to Rs. 78.0 in 2008-09, and this
rate of increase in wage rate has been higher than
the rate of growth of price index for agricultural
labourers during this period, indicating an increase
also in the level of real wage rate. Due to this
improvement in the economic condition of the common
people in rural areas of West Bengal, their
consumption demand for industrial goods has,
according to the data of National Sample Survey
(62nd Round), also increased by 6.9 per cent
to reach the level of nearly Rs. 22 thousand crore in
the current year. It is important to note that in the
context of the adverse effect of recession on
the Indian economy due to the policy of globalisation,
the agricultural sector and the common farmers of
West Bengal, due to the adoption of alternative policy
in the State, have been able to combat, to a certain
extent, this recession and at the same time has
created internal market for industry.
2.18 As a result of the combined effect of a growing
internal market, availability of skilled workers,
scientists and technologists, certain improvement
in infrastructure, social stability and the positive
AKD08-09(2)-N
22
attitude of the State Government, a conducive
atmosphere for industrial development has been
created in the State for each of the sectors—large,
medium and small scale as well as self-help group
enterprises. But even in such a situation, the impact
of global recession has resulted in obstacles to growth
in the case of those industries (for example, iron and
steel industries, cement industries, textiles, etc.) which
are dependent on exports. Honourable Members may,
however, note that even in this adverse stituation,
216 industrial units in the organized large and
medium scale sectors with a realized investment of
Rs. 4,205 crore has commenced production in the
year 2008 with generation of 20,409 direct
employment and 37,392 indirect employment. It is
necessary to mention here that the realized investment
and employment generation would have increased
further, if the small car manufacturing unit at Singur
could have completed the remaining part of investment
and commenced production and could be linked with
the production of downstream units. But because of
opposition from a section of people of the State, this
has not been possible. History will certainly judge
this one day.
2.19 In the midst of this situation, an important
potentiality of development in regard to the
industrialization of the State has emerged with the
possibility of clearance from the Government of India
for setting up of a petroleum, chemicals and
petrochemicals investment region at Nayachar in the
district of Purba Medinipur. After realization of this
possibility of clearance and with due observance of
AKD08-09-N
23
the conditions for protection of environment, this
industrial region may develop with an investment of
about Rs. 93,180 crore. In case of chemical and
petrochemical industries, the journey that had
commenced with the setting up of Haldia
Petrochemicals Project may then acquire its full
momentum with the setting up of this investment
region at Nayachar. As a result, there is a possibility
of a new dimension being added not only to
downstream plastic industries but also to rubber,
paint and drug industries of the State. In addition,
through the setting up of downstream units in every
district, potential for 10.12 lakh direct and indirect
employment generation will be created, which has
never happened in the case of any single industrial
complex in the State.
2.20 In the last budget, an incentive scheme with
priority on employment generation was announced
for the purpose of industrial development of the State
based on alternative policy. This incentive scheme
has recently been formally notified. The benefits of
this scheme can be enjoyed not only by new industrial
units, but also by existing units for their expansion
and by closed units for their revival. In this scheme,
apart from provisions for capital investment subsidy,
interest subsidy and waiver of electricity duty, there
is a provision for special incentive linked to
employment generation.
2.21 Honourable Members, in order to solve the
problem relating to availability of land for setting up
of important large scale industries, the State
AKD08-09(2)-N
24
Government has decided to set up a land bank
primarily by purchasing relatively infertile land from
the farmers at a fair price and thereafter by acquiring
land in some remaining cases after consulting the
farmers and obtaining opinion of experts and on
payment of due compensation, with necessary balance
being maintained in such cases with the interest of
farmers and agricultural development. For this
purpose, a decision to create a corpus fund of
Rs. 500 crore has been included in the strategy to
combat recession. Keeping in view this overall
perspective, I propose to fix the plan outlay of the
Commerce and Industries Department at Rs. 350
crore, which will be effectively augmented with the
corpus fund of the land bank.
2.22 As part of social tradition, the State occupies
a relatively better position in regard to intellectual
capital. In consequence of this, there has been in
recent years significant development in information
technology and information technology-enabled
services. In the year 2007-08, the rate of growth of
software exports from this State was 46 per cent,
which was much higher than the rate of growth of
software exports from the country as a whole (29 per
cent). The current global recession has, however,
adversely affected such exports, and information
technology and information technology-enabled
services in the entire country have particularly
suffered. Consequently, the rate of growth of software
exports from West Bengal in the current year will be
reduced to some extent, although it is estimated to
still remain higher than the rate of growth exports
AKD08-09-N
25
from the country as a whole. The main reason behind
this is that in this State, as many as 80 per cent of
the information technology and information
technology-enabled service units are in the small
scale sector and the production cost is also relatively
lower in this State. In this perspective, as part of the
strategy to combat recession, the State Government
has taken the view that it is necessary to create an
internal market for information technology and
information technology-enabled service units of the
State and not make the development of this sector
so much dependent on exports. For this purpose, the
State Government, through an allocation of Rs. 25
crore, has fixed the target of extension of information
technology and information technology-enabled
services upto the village level. Along with large scale
information technology units, the medium and small
scale units of the State will be associated with this
initiative in a big way. Based on this approach, I
propose to increase the plan outlay of the Information
Technology Department from Rs. 71.29 crore in the
current year to Rs. 86.70 crore in the next year.
2.23 In the matter of industrialization of the State,
the small scale units of the State have played a
specially significant role in employment generation
for the common people. According to the data of the
latest National Sample Survey (2005-06) it has been
found that both in respect of the number of working
units (which for West Bengal is 27.53 lakh) and
generation of employment in this units (which for
West Bengal is 54.93 lakh), West Bengal ranks first
amongst all the States. It is also noteworthy that even
AKD08-09(2)-N
26
in the midst of the overall adverse situation arising
from recession, 17,101 new small scale units have
been set up in the State during the current year
(2008-09), thereby creating potential for 2.2 lakh
employment generation. Where the small scale units
are organically linked with large industries and where
such large industries have been affected as a result
of recession, the corresponding small scale units
have also suffered from the negative impact of
recession. Where, however, the small scale units have
sold their products in the domestic market directly,
the impact of recession has been relatively less
pronounced. In the strategy of the State Government
to combat recession, priority has therefore been
accorded to development of infrastructure for clusters
of industries in the small scale sector, so that the new
small scale units as well as the traditional industries
of each district can also develop. In addition, for the
purpose of revival of handloom industries, reduction
of the debt burden of handloom weavers has also
been included in the strategy to combat recession.
Keeping in view the parts of the programme which
can be implemented on a priority basis during the
next year, I propose to raise the plan outlay of Micro
and Small Scale Enterprises and Textiles Department
from Rs. 121.0 crore in the current year to Rs. 162.20
crore in the next year.
2.24 In the matter of growth of internal market
and employment generation in the State, maximum
potential has been created by the self-help groups.
The number of self-help groups in the State has
increased noticeably from 7.98 lakh in the last year
AKD08-09-N
27
(2007-08) to 9.29 lakh at the end of the current year
(2008-09), the total membership of the groups being
92 lakh, more than 90 per cent of whom are women.
The members of these self-help groups have first
mobilized their own savings. Then on the strength of
such savings, about 6.75 lakh self-help groups have
obtained loan from banks. In more than 90 per cent
of the cases these loans have already been repaid,
and fresh loans have been obtained and repaid. In
a situation where the rich persons do not repay bank
loans in many cases, the poor women members of
self-help groups of the State have set a new example
by repaying bank loans as per schedule. According
to the latest assessment of NABARD, about 40 per
cent on the credit-linked self-help groups (6.75 lakh)
have qualified for second dose of loan and have been
able to create at least one additional employment. As
a result, potential for 2.7 lakh additional employment
generation has been created in the current year. The
State Government has recognized the significant role
of the self-help groups in combating recession through
employment generation and to encourage them further
has decided, as part of the strategy to combat
recession, to pay subsidy against the interest payable
on bank loan taken by the self-help groups so as to
reduce the effective rate interest payable by the selfhelp
groups to 4 per cent. In addition, to facilitate
training of the members of the self-help groups and
the youths engaged in self-employment programmes
and marketing of their produce, a Corporation named
Swarojgar has also been set up. According priority
to the self-help groups and the self-employment
programmes, I propose to increase the plan outlay
AKD08-09(2)-N
28
of the Department concerned from Rs. 60.0 crore in
the current year to Rs. 100.0 crore in the next year.
2.25 The annual requirement of credit for small
scale industries, self-help groups and self-employment
programmes in the State is at least Rs. 5,500 crore.
Against this, the total disbursement of credit for
these sectors during the current year is estimated to
be about Rs. 2,572 crore only. It has, therefore, been
decided, after discussions with the Reserve Bank of
India, nationalized banks and cooperative banks, that
having regard to the role of small scale industries and
self-help groups and self-employment programmes in
combating recession, the disbursement of credit for
these sectors in the next year should be raised by
75 per cent to at least Rs. 4,500 crore.
2.26 The pursuit of the policy of globalization at
the national level has resulted in a large number of
industries in every State being closed or sick. As part
of this national process, some industrial units in
West Bengal have also become either closed or sick.
Against this background, the State Government has
been making, with its limited powers, continuous
efforts for revival of closed and sick industries specially
by placing its views before the BIFR and by granting
subsidy, tax relief, etc. As a result of these steps, it
has been possible to revive 29 units, and in the case
of 50 units, implementation of revival process has
started. In addition, at the joint initiative of the Centre
and the State, it has been possible to reopen 2 of the
14 closed tea gardens out of a total of 277 tea gardens
in North Bengal. Efforts are on to reopen the other
AKD08-09-N
29
closed tea gardens. For this purpose, decision has
been taken by the State Government to grant
exemption from payment of certain taxes and duties
and by the Central Government to grant some relief
regarding bank loans. Along with these steps, other
measures relating to introduction of employment
generation programmes for the workers of closed tea
gardens and supply of foodgrains to them free of cost,
etc. have also been taken by the State Government.
Moreover, the State Government has further decided
to increase the quantum of financial assistance which
is now provided to the workers of the tea gardens and
factories lying closed for more than a year from
Rs. 750 per head per month to Rs. 1,000 per head
per month. This decision has become effective from
February 1, 2009. About 34,700 workers will be
benefited by this decision.
2.27 For the first time in the country, at the
initiative of the State Government, a provident fund
scheme for workers in the unorganized sector was
introduced in the State in the year 2000-01.
Implemented on the basis of contribution from the
worker (at the rate of Rs. 20 per month) and an equal
contribution from the State Government, the number
of workers enrolled under this scheme has increased
from 10.09 lakh in the last year to 13.16 lakh in the
current year. This scheme has also been linked with
the Health Insurance Scheme. In addition, it has
already been decided to expand the scope of the
scheme by bringing workers of 44 categories, including
the domestic servants and the maid servants, under
its purview and to increase the number of beneficiaries
AKD08-09(2)-N
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of this scheme to 20 lakh in phases. This apart, the
number of beneficiaries of the legislation concerning
the interest of construction workers has increased
from 40,506 in the last year to 68,000 in the current
year. In order to help the registered unemployed of
the State secure employment, a scheme of training
of the registered unemployed in 800 categories of
skills has been started since last year in 32 centres,
50 per cent of the cost being borne by the State
Government by way of subsidy. It is noteworthy that
the number of youth enrolled under this scheme has
already reached about 25,000. Giving importance to
these schemes, it is proposed to raise the plan outlay
of the Labour Department from Rs. 80 crore in the
current year to Rs. 90 crore in the next year.
2.28 As part of the strategy to combat recession,
the State Government has decided to launch a new
scheme of construction and development of housing
for the poor and low-income groups with an outlay
of Rs. 1,000 crore. This scheme will be implemented
in the rural areas by the Housing Department in
coordination with the Panchayats and the Panchayat
and Rural Development Department, and in the urban
areas by the Municipal Affairs Department in
coordination with the municipalities. Implementation
of this scheme will mitigate, to some extent, the
housing problems of the poor and low-income families
of the State, create opportunities for additional
employment and increase the internal demand for
construction materials (iron, cement, etc.), thereby
helping the industries concerned to overcome the
recession. Keeping in view these overall objectives,
AKD08-09-N
31
I propose to increase the plan outlay of the Housing
Department from Rs. 25.30 crore in the current year
to Rs. 523.0 crore in the next year.
2.29 In a similar manner, for the purpose of growth,
employment generation and income generation in
agriculture and industries and combating recession
in construction industries, development of common
infrastructure, particularly, improvement of roads,
bridges, transport and power situation, is especially
important. Keeping in view the importance of the
development of road and bridge-related infrastructure,
the Public Works and Public Works (Roads)
Department, after completing construction of 102
bridges and flyovers including railway over bridges
(ROB) during the Tenth Plan period (2002-2007), has
completed construction of 16 bridges and flyovers,
and has also started construction of 47 over bridges
during the first two years of the Eleventh Plan period
(2007-12). In the case of roads, after completing
improvement of 5,522 kms. during the Tenth Plan
period, it has been possible to complete improvement
of further 965 km. of roads during the first two years
of the Eleventh Plan period. Giving emphasis on
comprehensive development of roads and bridges for
reasons mentioned earlier, I propose to increase the
plan outlay of the Public Works and Public Works
(Roads) Department from Rs. 700.15 crore in the
current year to Rs. 763.40 crore in the next year. In
regard to improvement of public transport, steps
have been taken to purchase 400 new buses for the
State Transport Corporations in the current year. To
this has been added the joint initiative of the Central
AKD08-09(2)-N
32
and State Governments to purchase 1,300 buses, the
expenditure for which would be shared between the
Central and State Governments in the ratio of 35 : 65
in case of Kolkata and 50 : 50 in case of Asansol and
Durgapur. In addition, the Calcutta Tramways
Company (CTC) has started a scheme of introducing
modern tram cars based on improved self-reliant
technology. Moreover, after completion of the
concreting works of 28.1 km. of tram-lines at a cost
of Rs. 101.0 crore, concreting works of the remaining
important stretch of tram-lines at a cost of Rs. 19.5
crore has been started during the current year.
This apart, a Centre-State combined project,
namely, the East-West Metro Corridor Project has
also been launched. Giving emphasis on the
importance of public transport, it is proposed to
increase the plan outlay of Transport Department
from Rs. 147.20 crore in the current year to Rs. 220.4
crore in the next year.
2.30 In the current year, due to commencement
of production by 2 units (800 MW) of Sagardighi
Thermal Power Project, 1 unit (300 MW) of DPL and1
unit (210 MW) of Bakreswar Thermal Power Project,
there has been an improvement in the balance between
demand and supply of power in the State. However,
despite such improvement, balance between demand
and supply has been disrupted occasionally on
account of problems of maintenance of such power
utilities. The Power Department has, accordingly,
decided to pay special attention to this problem of
maintenance of power utilities so that the improvement
of the balance between demand and supply can be
sustained.
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2.31 In the case of Rural Electrification, out of
37,910 villages, electricity has reached 37,606 villages
(99.2 per cent) till February 28, 2009. The State
Government has now set a deadline for completing
the important task of providing electricity to each
household of every village within the 11th Plan Period
(2007-2012).
2.32 Special emphasis has been given on improving
the internal efficiency of the power utilities under the
State Government. As a result, the plant load factor
of the power utilities has increased from 53.2 percent
in 2001-2002 to an estimated 63 per cent in the
current year. In addition, the transmission and
distribution loss has also been reduced from 31.1 per
cent in 2001-2002 to 22 per cent in the current year.
At the same time, the net revenue collection of the
power utilities under the State Government has
increased from Rs. 2,438 crore in 2001-2002 to an
estimated Rs. 8,289.19 crore in the current year, and
their net profit has been estimated to reach Rs. 289.47
crore. Giving priority to the comprehensive
improvement in the power situation in the State, I
propose to increase the plan outlay of the Power
Department from Rs. 2,061.73 crore in the current
year to Rs. 2,376.40 crore (inclusive of the internal
resources of the power utilities) in the next year.
2.33 For the purpose of steady growth of
production and employment generation, along with
improvement of physical infrastructure, it is necessary
to ensure that, to the extent possible, the benefits of
social services, in particular, public health and
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education, reach the common people. It is also
necessary to improve the quality of these services.
In the case of public health, on an analysis of the
causes of illness of the people of the State, it has been
found, on the basis of DALY’s index, that on the
whole, in about 59 per cent of the cases, illness can
be prevented by taking appropriate preventive
measures. In most of the remaining 41 per cent
cases, for which institutional arrangements are
necessary for curative treatment, such treatment
becomes possible or easier by improvement of
decentralized curative health care facilities in rural
and urban areas.
2.34 In the case of preventive health care, supply
of safe drinking water along with provision for sanitary
toilets is most important. In the case of drinking
water, after ensuring at least one source in each
village, the goal now is to provide 40 litres of safe
drinking water per capita per day in each habitation
(the number of which has now increased to 96,265).
Against this goal, while in the year 2007-2008, it was
possible to cover 82.5 per cent of the habitations
fully, in the year 2008-2009, the target of fully coverage
is estimated to be reached in the case of 90.5 per cent
of the habitations. Along with this, a sustained
initiative has been taken to mitigate the problem of
arsenic contamination of ground water.
Giving emphasis on supply of safe drinking water,
I propose to increase the plan outlay of the Public
Health Engineering Department from Rs. 334.0 crore
in the current year to Rs. 367.0 crore in the next year.
AKD-MP1
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Along with the provision for supply of safe drinking
water, special priority has been accorded to largescale
construction of sanitary toilets in the rural
areas under Total Sanitation Programme by involving
the local people through the Panchayats and Rural
Development Department. As a result, in the year
2008-2009, according to the report of the Union
Ministry of Rural Development, about 84 per cent of
the families in the rural areas of West Bengal have
been covered under this programme, and in this
regard, the position of West Bengal is now second
among the States, just after Kerala.
2.35 In the case of curative health care in the
State, for reasons mentioned earlier, priority has been
given to expansion of decentralized preventive and
curative health care facilities with the involvement of
the Panchayats and the municipalities and their
integration with the preventive measure.
Decentralization in this case means development of
sub-centres located within each Gram Panchayat,
primary health centres (PHC) and rural hospitals at
the Block level, sub-divisional hospitals, district
hospitals and hospitals maintained by the urban
local bodies, and integration of this effort with
preventive measures undertaken through health
workers. Along with this, emphasis has been given
on improvement of infrastructure of large teaching
hospitals of the State and the quality of services
offered by them. It is found from the latest State-wise
data (2007) published by the Government of India
that as a result of these comprehensive measures,
the death rate in the State has fallen to 6.3 per
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thousand which is not only lower than the all India
average (7.4) but also the lowest among the States.
It is also noteworthy that even for the rural areas,
the death rate in West Bengal is the lowest among
the States. The infant mortality rate in the State has
now fallen to 37 which is much lower than the all
India average (57) and the forth lowest among all the
major States. The birth rate in the State has also
fallen to 17.9 which is lower than the all India average
(23.1) and in particular, the birth rate in the urban
areas of the State is now 12.7 which is again the
lowest among the urban areas of all the States. In
addition, it is necessary to mention specifically that
the total fertility rate of the State has fallen in the
year 2007 to 1.9 which is much lower than the all
India average (2.8) and in this regard the position of
West Bengal is next only to Kerala (1.7) and Tamil
Nadu (1.8). It may be noted that if the total fertility
rate falls below 2.1 the rate of growth of population
starts falling with the desired speed. It is noteworthy
that the annual rate of growth of population in West
Bengal which was 1.37 per cent in the year 2001-
2002, has fallen to 1.07 per cent in the year 2007-
2008 and is estimated to be reduced to 0.97 per cent
in the year 2008-2009 (source: National Commission
on Population, Ministry of Health & Family Welfare,
Government of India). Keeping in view this
comprehensive approach towards public health and
in particular, setting aside a provision of Rs. 100
crore for development of health infrastructure
(included in the financial package for combating
recession), I propose to increase the plan outlay of
the Health and Family Welfare Department from
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Rs. 500.95 crore in the current year to Rs. 600.45
crore in the next year.
2.36 In order to provide more extensive access of
students to education, priority has been accorded, in
the first place, to universalisation of primary
education. As a result, net enrolment ratio of children
of the relevant age group (5+ to 8+) in primary schools
has reached 99.2 per cent in the current year (2008-
2009). In order that the incidence of drop-out among
the students is reduced, along with ensuring
enrolment of children in primay schools, the mid-day
meal programme which has already been implemented
at the level of primary schools has now been extended
also to junior high schools. Self-help groups have
been primarily involved in the operation of this
programme. As a result of this, according to the
report of the National University of Educational
Planning and Administration (NUEPA), the incidence
of drop-out at the primary school level in the State
has been reduced to 8.56 per cent which is lower
than the national average (9.36 per cent). This apart
according to the same report, the incidence of dropout
at the junior high school level has also fallen to
7.34 per cent.
At the same time, emphasis has been given on
appointment of teachers and para-teachers. After
engaging 22,073 para-teachers alongside 1.45 lakh
existing teachers at the primary level, it has recently
been decided, as part of strategy of the State to
combat recession, to recruit 50,000 additional
teachers for primary schools. The School Education
AKD-MP1
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Department is consulting legal experts to explore
how the PTTI trained persons can also participate
appropriately in the recruitment process. Once these
additional 50,000 teachers are recruited, the studentteacher
ratio at the primary stage will fall to the
desired level of 30 : 1. In addition, during the last two
years, 30,663 teachers have been recruited at the
junior high/high/higher seconday school level.
Moreover, 33,680 para-teachers are already working
at the junior high school level. As a result, the studentteacher
ratio at the junior high school level has fallen
to 47.5 : 1. In order to improve accountability,
alongside recruitment of additional teachers and parateachers,
emphasis has been given on the functioning
of the school-wise mother-teacher committees, village
education committee and in particular, the inspection
of schools. As a result of these comprehensive steps,
it has been found, according to the date of the latest
State-wise survey conducted by the National Council
of Education, Research & Training (NCERT), that
based on overall asessment of performance in all
subjects made at the end of Class-V, the students of
this State have reached the topmost position. Keeping
in view the goal for expansion and improvement of
standard of school education, I propose to increase
the plan outlay of this department from Rs. 800 crore
in the current year to Rs. 1,093 crore in the next year.
2.37 In order that the students can take part in
the production process and also play a supportive
role in developing the internal market, priority has
been accorded to expansion of vocational and technical
education at all levels, along with expansion of the
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opportunities for education and improvement of
standard. For this purpose, with the target of setting
up of vocational training centres in each secondary/
higher secondary school of the State, a decision to
set up 1,000 more vocational training centres over
and above the existing 1,878 such centres has been
included in the strategy to combat recession. Keeping
this special priority in view, it is proposed to increase
the plan outlay of the Technical Education and
Training Department from Rs. 135 crore in the current
year to Rs. 284 crore in the next year.
2.38 In the field of higher education, for the
purpose of expansion of opportunities of education
and research for the students and improvement of
standard, 10 additional colleges and two full-fledged
universities, namely West Bengal State University
(Barasat) and Gourbanga University have been
established. In addition, a decision has been taken
to set up Sidhu-Kanu-Birsha University centred
around Purulia and Bankura and a campus of the
North Bengal University at Jalpaiguri. At the same
time, it has been decided to attach special importance
to improvement of the standard of higher education
through an appropriate inspection mechanism. This
apart, specific priority has been accorded to creation
of opportunities for students who have received higher
education to participate in the production process
and employment. Towards this end, it has been
decided that in addition to the functioning of 377
degree awarding and 69 diploma awarding technology
and management institutes in the public and private
sectors in the State, a special initiative would be
AKD-MP1
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taken to conduct as many courses on management
and technical education as possible under the exising
regulations, on the campuses of general degree colleges
and the universities, thereby opening up additional
opportunities to students at a relatively lower cost.
If this initiative succeeds, it will be a significant
innovation in the field of higher education in the
entire country. Keeping these priorities in view, I
propose to increase the plan outlay of Higher
Education Department from Rs. 118.50 crore in the
current year to Rs. 149 crore in the next year.
2.39 In the sphere of madrasah education and
minority affairs, an emphasis has been placed on
extension and quality of madrasah education, and at
the same time, also on a coordinated development of
vocational and technical education, so that students
of minority communities can get a much wider access
to participation in the production process and
employment generation. With this as the objective,
steps have been taken in the current year to set up
66 new madrasahs, upgrade 110 junior high
madrasahs to high madrasahs and 89 high madrasahs
to higher madrasahs. In the sphere of higher
education, initiative has also been taken to full-fledged
development of Aliah University by stressing teaching
and research work in a wide variety of subjects, and
also encouraging the development of vocational
training centre and technical education within the
campus. In the interest of promoting employment
generation for the minority communities, along with
disbursement of Rs. 35.74 crore through the West
Bengal Minorities Development Finance Corporation,
AKD-MP1
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an additional sum of Rs. 20 crore has been decided
by the State Government for allocation to this
Corporation by way of assistance for training leading
to further employment generation (already included
in the programme for combating recession). Keeping
these priorities in view, the plan outlay for the
Department of Minorities Affairs and Madrasah
Education is proposed to be increased from Rs. 110.0
crore in the current year to Rs. 121.0 crore in the
next year. In addition, since the entire responsibility
of teachers connected with madrasah education has
been taken by the State Government, the total budget
of this department will be raised to the level of
Rs. 524.11 crore in the next year.
2.40 In the sphere of backward classes welfare,
once again, along with widening the access to
education, a special importance has been attached
to improvement in vocational training and employment
opportunities for the students belonging to backward
classes. To this end, in addition to increase in the
scale and access to hostel charge benefits, and wider
coverage of book grants for students of backward
classes, the State Government has also decided to
construct 22 Pandit Raghunath Murmu Schools in
the tribal dominated areas, of which 5 such schools
have already been set up in the current year. Moreover,
5 modern Ekalabya residential schools along with 11
feeder schools are also running in the State.
Simultaneously, an emphasis has been laid on
vocational training and employment generation for
scheduled castes and scheduled tribes, and for this
purpose, an assistance of Rs. 63.32 crore has been
AKD-MP1
42
provided through the West Bengal Scheduled Castes
and Scheduled Tribes Development and Finance
Corporation and other related corporations. As a part
of the programme for combating recession, the State
has also decided to allocate an additional sum of
Rs. 20 crore for further training and employment
generation for backward classes through this
Corporation and LAMPS. Keeping this overall objective
in view, I propose to increase the plan outlay for the
Department of Backward Classes Welfare from
Rs. 224.02 crore in the current year to Rs. 298.40
crore in the next year.
2.41 For the welfare of women and children, it
has been considered important that women participate
in a wider and more organised manner in the
functioning of ICDS centres. To this end, along with
involvement of women self-help groups in coordination
with the workers of ICDS centres, further improvement
has been sought to be made in the provision of
nutritional food. With priority assigned to the women
and children development and welfare, it is proposed
to increase the plan outlay of the concerned
department from Rs. 364.60 crore in the current year
to Rs. 453.60 crore in the next year.
2.42 With focus on the development of refugee
colonies, the plan outlay of the Department of Refugee,
Relief and Rehabilitation is proposed to be increased
from Rs. 15.0 crore in the current year to Rs. 16.50
crore in the next year.
2.43 On the basis of priority to the development
of disadvantaged regions (included in the State
AKD-MP1
43
programme for combating recession), the total
plan outlay for development of North Bengal,
Paschimanchal and Sundarbans is proposed to be
enhanced from Rs. 190.23 crore in the current year
to Rs. 285.0 crore in the next year.
2.44 A special thrust of the State’s alternative
programme of overcoming recession by developing
internal market in terms of generation of employment
and incomes of the common people is to formulate
and implement this programme in a decentralised
manner by involving the local common people through
the panchayats and municipalities.
Honourable Members will be happy to know that
the data of the latest State-wise survey (2008-09)
conducted by the Ministry of Panchayati Raj,
Government of India, have shown that in terms of the
overall index of performance in decentralisation and
accountability through the Panchayats, West Bengal
has now come up to second position among all the
States. Assigning a special priority to decentralisation
and involvement of people through the Panchayats,
I propose to increase the plan outlay of the Department
of Panchayats and Rural Development from
Rs. 1,632.07 crore in the current year to Rs. 1,919.02
crore in the next year.
2.45 In the sphere of development planning
through the municipalities, a new dimension has
been added in recent years. In stead of restricting the
activities of municipalities in the areas of usual civic
facilities (regarding roads, water supply, drainage,
conservancy etc.), municipal responsibilities, in the
interest of common people, are now being extended
AKD-MP1
44
to cover facilities of public health and employment
generation as well. Attempts are also being made to
involve the local common people in the formulation
and implemention of the plan schemes in all these
spheres in a decentralised manner through the ward
committees in the municipalities. With emphasis on
this decentralised municipal development, the plan
outlay for the Departments of Municipal Affairs and
Urban Development is proposed to be increased from
Rs. 2,017.83 crore in the current year to Rs. 2,994.54
crore in the next year.
2.46 Honourable Members, the total plan outlay
of the State Government for the current year was
fixed at Rs. 11,966.89 crore. After examining the
trend of expenditure, it is anticipated that nearly 100
per cent of this plan outlay may be spent in the
current year. Collecting together that proposed plan
outlays of all the departments, it is now noted that
the proposed total State Plan outlay will be raised to
the level of Rs. 14,069.57 crore in the next year.
2.47 In the sphere of non-plan expenditure, the
State Government has taken certain decisions.
Honourable Members will be pleased to hear that
from February 01, 2009 pension for widows, old-aged
persons, disabled persons, artisans, weavers, farmers
and fishermen has been increased from Rs. 500 per
month to Rs. 750 per month.
In the field of education, from the same date the
monthly remuneration for para-teachers engaged in
the primary and upper primary level has enhanced
from Rs. 2,000 to Rs. 4,000 and from Rs. 3,500 to
AKD-MP1
45
Rs. 5,500 respectively. There has been an
enhancement of monthly remuneration from Rs. 3,000
to Rs. 6,000 for the part-time teachers in the schools.
Besides, monthly remuneration of part-time teachers
in non-Govt. colleges has increased from Rs. 4,000
to the range from Rs. 7,000 to Rs. 10,000 depending
on the length of service.
From the same date monthly honorarium for the
sahayaks/sahayikas engaged in Sishu Siksha Kendras
has enhanced from Rs. 2,000 to Rs. 4,000, for Mukhya
Samprasaraks/Samprasarikas engaged in Madhyamik
Siksha Kendras from Rs. 4,000 to Rs. 7,000 and for
academic supervisors engaged in Sishu Siksha
Kendras from Rs. 2,500 to Rs. 5,000. The monthly
honorarium for samprasaraks/samprasarikas
engaged in Madhyamik Siksha Kendras has been
enhanced by Rs. 3,000.
In the sphere of public health and women and child
welfare, monthly honorarium for anganwadi workers,
anganwadi helpers, health workers engaged in
C.U.D.P. III, I.P.P. VIII, C.S.I.P. and R.C.H. and
community health guides has been enhanced by
Rs. 250. This apart, there has been enhancement
of monthly honorarium from Rs. 5,000 to Rs. 8,000
for homoeopathic, ayurvedic and unani doctors in
the gram panchayat level and from Rs. 2,500 to
Rs. 4,000 for compounders engaged in homoeopathic
dispensaries.
From enhancement of pension/honorarium of these
types, about 7.25 lakh persons have benefited.
AKD-MP1
46
2.48 Honourable Members, after the pay revision
was implemented by the Central Government for its
employees on the basis of the recommendations of
the Sixth Central Pay Commission, the State
Government constituted the Fifth State Pay
Commission with Sri Satyendra Nath Ghosh as its
Chairman and five other Members. The constitution
of the Commission was notified on August 28, 2008.
The Commission carried on the task with utmost
speed and efficiency and submitted its
recommendations on February 12, 2009 concerning
the pay structure, allowances and pensionary benefits
for the State Government employees, teachers and
non-teaching staff of schools, employees of Panchayats
and municipal bodies and those of statutory bodies,
featuring in Part-A of the Terms of Reference of the
Commission. Their recommendations pertaining to
the employees of the State Undertakings etc.
featuring in Part-B of the Terms of Reference will
follow.
The State Government has, in general, accepted
the recommendations of the Pay Commission and the
Finance Department has notified the Pay Rules etc.
on February 23, 2009. Subsequently, notifications
revising the pay structure of teachers and nonteaching
employees and that of Panchayat and
municipal employees have also been issued. The
payment of salary and pension at revised rates will
entail an additional annual expenditure of Rs. 5,400
crore. Further, to pay the arrears on account of
47
AKD08-09(1)-N1
salary and pension in accordance with the
recommendations of the Pay Commission, will involve
an additional cash outgo of Rs. 6,236 crore. Since the
Government has decided, on the basis of the
recommendations of the Pay Commission, to pay
arrear salary in three annual instalments starting
from 2009-10 and has additionally decided, in the
interest of pensioners, to pay arrear pension and
gratuity in that year itself, the total outgo in 2009-
10 on account of payment of salary and pension at
revised rates and for payment of arrears will be about
Rs. 9,670 crore. The State Government has accepted
the UGC’s recommendations in respect of revision of
pay structure of teachers of colleges and universities
and conveyed concurrence to bear 20 per cent share
for such revision. If we add the additional expenditure
on this account, the total additional expenditure
during 2009-10 on account of revision of pay and
pension will be nearly Rs. 10,000 crore.
It may be mentioned that the proposed
expenditure—plan and non-plan taken together in
2009-10 will be Rs. 69,974.62 crore.
3
3.1 Honourable Members are aware that from the
year 1999-2000 onwards, the Government of West
Bengal, along with other State Governments, started
facing a financial crisis. The four factors which
contributed to this situation were: (1) the impact of
revision of pay of the Central Government employees
on the basis of the recommendations of the Fifth
Central Pay Commission, resulting in revision of pay
AKD08-09-N1
48
of State Government employees and others with sharp
increase in expenditure on salary and non-fulfilment
of assurance given in the meeting of the National
Development Council on February 19, 1999 as regards
providing Central support towards such expenditure,
(2) shortfall in receipt of States’ share of Central taxes
in relation to the estimates of the Eleventh Finance
Commission, (3) not getting any relief on the burden
of Central loan and for West Bengal, particularly the
burden of Central loan related to Small Savings arising
out of national policies and, (4) shortfall in the
collection of State’s own tax revenue.
3.2 The combination of these factors led to a
serious deterioration in the financial position of the
State Government beginning from 1999-2000. The
ratio of revenue deficit to revenue receipts, which was
25.41 per cent in 1997-98, increased to 90.95 per
cent in 1999-2000. The ratio of fiscal deficit to State
Domestic Product (SDP) increased from 4.09 per cent
in 1997-98 to 8.63 per cent in 1999-2000. The ratio
of revenue deficit to SDP, which was 2.34 per cent
in 1997-98, went up to 6.87 per cent in 1999-2000.
The ratio of outstanding debt to SDP continued to
increase from 25.55 per cent in 1997-98 reaching
50.0 per cent in 2004-05. The State’s Plan expenditure
started declining from 2001-02 reaching a level of Rs.
2,529 crore in 2003-04.
3.3 Out of the four contributory factors responsible
for the State’s financial crisis, mentioned previously,
while the first three factors are intrinsically linked
with the policies of the Central Government, the
49
AKD08-09(1)-N1
shortfall in the collection of State’s own tax revenue
is a responsibility at the State level. So far as the
issues related to the policies of the Central Government
are concerned, the State Government repeatedly
raised, on the basis of data and analysis, the demand
for a solution to these problems before the Government
of India and later before the Twelfth Finance
Commission. But till now, the problems remain
unresolved. In particular, it is specially unfortunate
that in spite of a clear verdict of the Hon’ble Supreme
Court in favour of the State, we have not yet been
given the benefit of revised rates of coal royalty
since 1991-92. Arrears due on this account up to
2007-08 now amount to Rs. 4,027.00 crore and, with
compounded rate of interest, to a sum of Rs. 9494
crore. Similarly, the Twelfth Finance Commission, in
its recommendations on loan-waiver and loan
consolidation for the States, has also unfortunately
excluded the Small Savings loan extended from
National Small Savings Fund (NSSF) since 1999-
2000. As a result, West Bengal suffered the most,
since our State holds the first position in Small Savings
collection.
3.4 Confronted with the situation, highest
emphasis has been given by the State on increasing
its own tax revenue through implementation of Value
Added Tax (VAT). As a result, whereas the average
annual rate of growth of Sales Tax had been less than
10 per cent prior to introduction of VAT, the rate of
growth of revenue on this account after introduction
of VAT steadily rose and reached a level of 19.11 per
AKD08-09-N1
50

cent in the current year (up to January 2009). Along
with this, the rate of growth of non-plan expenditure
on non-essential items has also been contained. All
these steps have contributed to a steady improvement
in financial condition of the State Government. The
ratio of revenue deficit to revenue receipts came down
to 27.01 per cent in 2007-08 from a level of 90.95
per cent in 1999-2000. At the same time the ratio
of fiscal deficit to SDP fell to 3.75 per cent in 2007-
08 from 8.63 per cent in 1999-2000. The ratio of
revenue deficit to SDP came down to 2.68 per cent
in 2007-08 from 6.87 per cent in 1999-2000. The
ratio of outstanding debt to SDP fell to 43.62 per cent
in 2007-08 from 50.0 per cent in 2004-05. The
plan expenditure also substantially improved from
Rs. 2,529 crore in 2003-04 to Rs. 9,073 crore in
2007-08.
3.5 Honourable Members, I am happy to mention
that this improvement has continued in 2008-09.
This year if we correctly deduct from the revenue
grant given by the State Government to WBSEB the
revenue receivable by the Government, then the ratio
of revenue deficit to revenue receipt further improves
to 19.14 per cent and the ratio of revenue deficit to
SDP further falls to 2.48 per cent. The ratio of fiscal
deficit to SDP comes down still further to 3.71 per
cent and the ratio of outstanding debt to SDP falls
to 42.34 per cent. The plan expenditure is also
estimated to increase to Rs. 11,899 crore.
3.6 Honourable Members, I have already
mentioned that consequent on the pay revision of
Central Government employees on the basis of the
51
AKD08-09(1)-N1
recommendations of the Central Sixth Pay
Commission, the State Government would revise the
pay structure and pension for the State Government
employees, teachers, Panchayats and municipal
employees and others on the basis of the recommendations
of the State Pay Commission. As a result, the
expenditure on this account in 2009-10 will also
increase. Since this additional expenditure is nothing
but the impact of the recommendations of the Sixth
Central Pay Commission, the Empowered Committee
of State Finance Ministers submitted a unanimous
demand before the Thirteenth Finance Commission
on September 16, 2008 and also to the Central
Government (December 17, 2008) that till the
recommendations of the Thirteenth Finance
Commission come in force i.e. at least for the year
2009-10, the Central Government should bear fifty
per cent of the additional burden on account of this
pay revision. The Empowered Committee of State
Finance Ministers further demanded before the
Thirteenth Finance Commission that fifty per cent of
the share of Central taxes should devolve to the
States and that the burden of Central loan on the
States, including that on account of Small Savings,
be reduced. In the context of West Bengal, arrear
dues on account of revision of coal royalty rates
should be released without any further delay. If these
justifiable demands are met, the burden of additional
expenditure on the State on account of pay revision
will be considerably lessened.
AKD08-09-N1
52
3.7 But since the decisions on these justifiable
demands are yet to be made known to us, the State
Government has decided to achieve a target of 20 per
cent for the annual growth rate of State taxes in
2009-10 through special tax efforts with co-operation
of the employees and tax-payers, and comprehensive
modernisation of tax administration by computerisation.
After adding other receipts to this, I propose
the State’s total receipts to reach a level of
Rs. 69,967.62 crore in the next year. Along with the
estimated total expenditure of Rs. 69,974.62 crore as
mentioned earlier, the anticipated deficit in the next
year will be Rs. 7.0 crore. I may mention here that
the financial condition of the State is expected to
make further steady improvements with the
introduction of Goods & Services Tax (GST) from
2010-11, as has been announced earlier.
3.8 Honourable Members, in the context of the
total budget proposal of Rs. 69,974.62 crore, I conclude
the proposal with this limited deficit of Rs. 7 crore.
3.9 The process of detailed consideration of the
demand for grants will take us through the month
of July, 2009. In order to enable the State Government
to conduct its activities, along with the Annual
Financial Statement, I also propose, as mentioned
earlier, to move a Vote-on-Account for the first four
months beginning April 1, 2009.
3.10 Confronted with the assault of recession
caused by the policy of uncontrolled globalisation,
this budget has been presented on the basis of an
alternative programme to overcome, in the interest
of common people, adverse effect of the recession.
53
AKD08-09(1)-N1
It may be noted that as a result of following this
alternative programme, within limitations of the State,
the growth of production at the State level in the
midst of recession in the current year has been higher
than that at the national level. In agriculture and
allied activities, while the rate of growth of production
at the national level in the current year has been 2.6
per cent, that at the State level is 4.4 per cent.
Similarly, while the rate of growth of production in
industry as a whole at the all-India level has been
4.1 per cent, the overall rate of growth of production
in industry at the State level is 5.8 per cent (with the
rate of growth of production for the small scale sector
being 6.9 per cent). While the rate of growth of Gross
Domestic Product of India, including agriculture,
industry and services, has been 7.1 per cent, that of
Net State Domestic Product of West Bengal, including
all the sectors, is 7.6 per cent. Moreover, if all the
potential generation of employment in the different
sectors of the State, as discussed earlier, are taken
together, then the total potential of additional
employment generation in the State in the current
year would be close to 8 lakh.
Standing at a turning point caused by the
recessionary crisis, the common man will now have
to choose between the path of globalisation and the
alternative path for their livelihood. In the coming
days, the vast majority of common people will overcome
all obstacles of vested interests and make their choice
of the correct path—the path that will uphold their
interests. Before concluding, I repose my trust on
them and seek cooperation of all.


Palash Biswas



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