Education, social services get more funds

Finance Minister P Chidambaram has decided on a mix of budgetary support and surcharge on tobacco products to finance the priority areas identified by the National Common Minimum Programme.

The government hopes to generate Rs 700 crore (Rs 7 billion) through a surcharge on tobacco products, and increasing the specific rate for cigarettes by 10 per cent to finance the National Rural Health Mission.

In addition, the 2 per cent education cess, imposed last year, is expected to generate Rs 2,200 crore (Rs 22 billion) during 2005-06.

The government hopes to mop up over Rs 1,500 crore (Rs 15 billion) through the levy on all central taxes, which will be transferred to the Prathamik Shiksha Kosh to fund elementary education.

An allocation of Rs 25,000 crore (Rs 250 billion) has been made for the schemes identified under the NCMP.

Accordingly, the allocation for social services during 2005-06 is estimated at Rs 53,384 crore (Rs 533.84 billion), as against Rs 39,378 crore (Rs 393.78 billion) during 2004-05.

Next year, education would have a plan size of Rs 18,337 crore (Rs 183.37 billion) and rural development Rs 18,334 crore (Rs 183.34 billion).

On subsidy for fertilisers, the estimate is Rs 16,254 crore (Rs 162.54 billion). The estimated expenditure on health and family welfare is Rs 10,280 crore (Rs 102.80 billion).

The National Advisory Council under Congress president Sonia Gandhi had suggested a Rs 25,000 crore (Rs 250 billion) allocation. While Rs  2,450 crore (Rs 24.5 billion) had been proposed for the road network in the North-East and Sikkim, Rs 19,000 crore (Rs 190 billion) was sought for the National Rural Employment Guarantee Act.

The Public Health Fund should have received Rs  10,700 crore (Rs 107 billion) as per the NAC's calculations, the Sarva Shikha Abhiyan Rs 8,000 crore (Rs 80 billion), the Midday Meal Scheme Rs 3,565 crore (Rs 35.65 billion), and the Integrated Child Development Scheme Rs 4,267 crore (Rs 42.67 billion).

Chidambaram has allocated Rs 11,000 crore (Rs 110 billion) for the Food For Work programme, including the food grain component.

The Rs 1,800 crore (Rs 18 billion) increase in the allocation for the department of health and family welfare is to finance the Rural Health Mission.

Similarly, an additional Rs 1,600 crore (Rs 16 billion) has been provided for under ICDS, while an additional 2,400 crore (Rs 24 billion) has been provided for the Sarva Shiksha Abhiyan.