MP to scrap or merge 100 schemes

THE GOVERNMENT HAS NOT WORKED OUT HOW MUCH MONEY IT WILL SAVE BY SCRAPPING OR MERGING THE SCHEME

BHOPAL: THE Madhya Pradesh government is expected to scrap or merge as many as 100 to 125 schemes in its budget on the session beginning March 16 to free up resources to fund its social sector schemes, finance department officials said.

The state government recently formed four groups of officials to give suggestions on schemes in the areas of energy, infrastructure, social sector, agriculture, education and health. An official from the state finance department, who didn’t want to be named, said, “In all, 100 to 125 schemes have been identified. We are working on which schemes may be scrapped and which can be merged with the other ones.”

To be sure, the exercise is not unusual considering that schemes are scrapped, merged or rechristened whenever there is a change in government.

A second official said: “There are certain schemes like the rooftop solar project. The central government too is giving subsidies on such schemes. Hence, it is under consideration if this should be scrapped. ” He added that the aim is to “generate revenue for farm loan waivers, employment schemes for young people, managing cow shelters and implementing several social welfare schemes”.

He said the new power subsidy scheme, Naya Savera, “alone has cost the state exchequer about ~18,000 crore annually.” The state proposed budget size of ~2,28,888 crore in 2019-20 budget, a 20% increase from the previous financial year. “There is a revenue shortfall of about ~30,000 crore this year given the fact the central government has cut the share of the state in the central taxes by over ~14,000 crore while the state government’s revenue collection has also taken a hit of about ~10,000 crore because of slowdown in economy,” he added.

The official said the government has not worked out how much money it will save by scrapping or merging the scheme saying that mathematics was being worked out. State finance minister, Tarun Bhanot, couldn’t be reached for his comments. State BJP spokesperson, Rahul Kothari, said, “There is no dearth of money with the government when it comes to renovation of ministers’ bungalows, their foreign tours and extravaganza like IIFA award function to be organised this month. But when it comes to giving relief to people, the government starts crying about empty coffers.”