UNION BUDGET 2014-15 Priorities for Development of Muslims

The new government has not been able to bring any new significant changes in terms of economic philosophy, policy priorities and budgetary allocation in its first budget as compared to the interim budget presented by UPA II in February 2014. It seems that the present government would continue to pursue the fiscal policy agenda of previous government. Similarly, the present budget reinforces pro-market approach in terms of providing the service of social and economic sector programmes. The only new thing this budget reflects the Hindutva colour by initiating few pilot projects in the name of RSS icons and river Ganga.

In the interim budget, UPA II had proposed Rs 17.63 lakh crore as its budget for 2014-15 while the present budget projected slightly higher amount of Rs 17.94 crore. The budget has almost retained the amount of allocation in SSA, NRHM, and ICDS and for welfare of minorities as in the interim budget.

Further, the allocation for NREGA and food subsidy has been pegged at Rs 34000 crore and Rs 1.15 lakh crore respectively. On the resource mobilisation front, Finance Minister has not announced any new tax proposal to step up the country’s Tax-GDP ratio. At present, India has 17 per cent Tax-GDP ratio which is much lower than many developed and developing countries. The low fiscal space provides limited resources for provision of essential services for disadvantaged communities. Muslims, Dalit, Adivasis, women, children and the disabled are considered the most venerable sections of the society.

In 2014, the BJP manifesto had promised to give adequate focus on the development of minorities, particularly Muslims. However, the manifesto did not address the real development issues such as social exclusion, share in public employment and educational institutions, poverty and illiteracy. The important promises made in the manifesto include modernisation of Madrasas, empowering Waqf Boards in consultation with religious leaders, taking steps to remove encroachments on and unauthorised occupation of Waqf properties, preservation and promotion of Urdu and ensuring a peaceful and secure environment where there is no place for either the perpetrators or exploiters of fear.

In Union Budget 2014-15 the Finance Minister introduced a new scheme “Upgradation of Traditional Skills in Arts, Resources and Goods” for promoting and preserving the traditional craft, arts for development of minorities through skill up-gradation. However, no mention on budgetary allocation has been made in the Note on Demand for Grants of Ministry of Minority Affairs or any other ministry for 2014-15. An additional allocation of Rs. 100 crore for Madrasa Modernisation programme being run under Department of School Education was also announced.

Only 0.7 per cent of total Plan Fund of Union Budget 2014-15 has been earmarked for minorities. In 2014-15 (BE), total allocation for MoMA has increased marginally by 20 per cent, from Rs. 3,111 in 2013-14 (RE) to Rs. 3,711 crore in 2014-15 (BE). Also, the total allocation made for MoMA in the Interim Budget has been retained. There has been an increase of Rs. 409 crore in the allocation for MSDP. It has increased to Rs. 1,250 crore in 2014-15 (BE) from Rs. 841 crore in 2013-14 (RE). Looking at the coverage of a large number of MSDP blocks and districts, which was increased in the 12^th FYP, the current allocation seems inadequate.

The Maulana Azad Education Foundation (MAEF) works as a vehicle to implement educational schemes for minorities. The Finance Minister proposed to allocate Rs. 113 crore for MAEF.

Table 1 shows scheme-wise details of allocation in 2012-13, 2013-14 and 2014-15. Looking at the expenditure/allocation in the first three years of 12^th FYP for MoMA, it was found that the total allocation amounts to Rs. 8,980 crore, which is hardly 50 per cent of the total proposed allocation of Rs. 17,323 crore.

Table 1: Scheme-wise Plan Allocation by MoMA in 12^th Five-Year Plan (in Rs. Crore)

Source: Ministry of Minority Affairs, Expenditure Budget Vol.II

*scheme has been dropped in 2013-14

ISSUES WITH IMPLEMENTATION OF 15 PP AND MSDP

The assessment of implementation of 15 PP and MSDP during last seven years shows that the policy initiatives of the government towards the development of minorities, in general, and Muslims, in particular, leave a lot to be desired. There are still huge gaps in the resource allocation, utilisation of funds and programme implementation specific to the development of minorities.

With regard to the quantum of budgetary resources provided for the development programmes for minorities, it was estimated that around six per cent of the total Plan funds in 11^th FYP (excluding Priority Sector Lending) had been earmarked for them. We must note here that the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) accounted for almost 70 per cent of the total allocations meant for the minorities. However, with regard to the benefits of JNNURM accruing to Muslims/minorities, the reporting system does not provide actual expenditure figures or beneficiary data on minorities separately. Thus, the JNNURM allocations shown as being earmarked for minorities appear to be ‘notional’ allocations.

MSDP being the largest programme to address the socio-economic deficits among Muslims was allocated 42 per cent of the total MoMA budget in the 11^th Plan. However, non-submission of complete proposals by the State governments for MSDP and delays in the submission of Utilisation Certificates led to delays under the programme. These implementation bottlenecks are greater under MSDP where factors like lack of institutional arrangements for implementation at the district level, inadequate planning capacity, shortage of staff and infrastructure, delayed submission of detailed project reports and insufficient funds to monitor the programmes have crippled the effective working of these schemes.

There are also instances where funds meant for minorities get diverted to non-minority areas due to lack of clarity in the guidelines of MSDP and 15 PP. Further, there is an absence of separate minor head or a budget statement under minority related programmes which makes it difficult to track the funds flowing for minorities’ welfare across schemes and programmes in various sectors.

While assessing the implementation of the provisions under the 12^th FYP, not much headway has been made, except for expanding the coverage of MSDP from 90 to 196 MCDs and implementing and planning of MSDP at the block level. However, the design of MSDP and the 15 PP do not have much scope for creating a tailor-made project that suits the needs of the Muslim community. In both these schemes, the norms and guidelines of the existing Centrally Sponsored Schemes (CSSs) are being adopted without any flexibility.

CONCLUSION

From the analysis, it is evident that promises made in the Election Manifesto and the commitments made in 12^th Plan have not been adequately reflected in the Union Budget 2014-15 in terms of policy priorities and budgetary allocations. Considering the problems in the guidelines and designs of the schemes, the 15 PP could be implemented along the lines of Scheduled Caste Sub Plan and Tribal Sub Plan with Additional Central Assistance (ACA).

There is no separate budget statement on schemes and programmes covered through minority related programmes. It would also help to include minorities in the budgetary processes through having a “separate budget statement” in the Union Budget on minority related programmes as is already being done in the case of women, children, SCs and STs (for expenditure reporting). The plan funds for minorities should be allocated in proportion to population out of which 73 per cent should go for schemes and programmes aimed at the development of Muslims. Thus, the need of the hour is to put in place targeted, well designed interventions and strategies for the overall development of the Muslims.