Former MP M. Ramadass termed the recent statements made by Lieutenant Governor Kiran Bedi, on the financial aspects of the Government, as “incorrect and misleading”.
Ms. Bedi’s assertion that the share of Central assistance in the total budgeted outlay of the Government of Puducherry is 60% and that the budget had not earmarked any outlay for the payment of salaries to workers of public sector undertakings (PSUs) is contrary to facts, Mr. Ramadass said in a statement.
“A careful perusal and appraisal of the budget speech of the Chief Minister — as approved by the Lt. Governor and the Ministry of Home Affairs, and presented to the Legislative Assembly on July 2, 2018 — and other budget documents such as the explanatory memorandum on the budget for 2018-19, the annual financial statement of the Union Territory of Puducherry 2018-2019 and the demand for grants vol. I and II, totally disprove the claims of the Lt. Governor and make her stated position untenable,” Mr. Ramadass said.
According to him, the second paragraph of the second page of the budget speech describes the financing of this year’s expenditure thus: “The total budgeted outlay, as approved by the State Planning Board for the year 2018-19 is ₹7,530 crore. The Union Territory’s own resources for the current year is estimated as ₹4,570 crore (61%) and the Central assistance from the Government of India will be ₹1,476 crore (25%). The anticipated grants for Centrally-sponsored schemes (CSS) is estimated as ₹409 crore. The remaining ₹1,050 crore (14%) will be met from open market borrowings and loans from Central financial institutions.”
‘Just 19.6% assistance’
“It is crystal clear from the facts that the share of Central assistance is just 19.6% and not even 25% as mentioned by the budget speech and definitely not 60% as stated by the Lt. Governor,” the former MP said.
The share of CSS grants is 5.43%.
As asserted by the L-G, if the Centre is assisting to the tune of 60%, it should provide ₹4,518 crore, which will enhance the total resource of the U.T. to ₹9,088 crore. This would avert a financial crisis, create a congenial and comfortable financial position and dispense with the necessity of borrowing ₹1,075 crore from the market.
He wondered how a responsible Constitutional office had spread wrong information to the people.
Centre’s attitude change
Financial woes of the U.T. were consequent to the Centre’s changed attitude, especially after the U.T. administration was asked to open a public account in 2007.
Following this, the Centre had stopped issuing plan loans, reduced the quantum and share of plan grants, refused to provide funds to meet additional commitment on account of implementation of the recommendations of the Sixth Pay Commission and had declined to compensate the loss incurred on the purchase of electricity in the open market.
The second assertion by the Lt. Governor that the budget had not provided for the employees of PSUs is far from the truth, if one goes by the budget speech, which states that an amount of ₹762 crore was allocated as grant-in-aid (Salaries and General) to PSUs and cooperative institutions.
“The government needs to push for public sector reforms after getting the recommendations from a competent expert committee (not the Vijayan Committee) and by entering into MOUs with these units. The duty of a responsible government is not to close down organisations but to run them efficiently,” Mr. Ramadass said.