NEW DELHI: With an eye on the upcoming general assembly elections, the Central government is planning to increase spending on social schemes by Rs 4,000 crore, with a special focus on people affected by war, terrorism and Naxal activities.
“The government is planning another package under its social scheme. While there are already many recommendations for extending social benefits to the unorganised sector, a major package of the whole grant will be dedicated to people affected by terrorism and Naxal-hit areas,” a senior official from Finance Ministry told The New Indian Express.
According to the official, the fund will be utilised in rehabilitation projects, imparting training in skills and providing infrastructure support in these areas. Prime Minister Narendra Modi is likely to announce this during his Independence Day address, his last speech before the polls.
“As per the initial estimates, the budgetary expenditure will be to the tune of Rs 4,000 crore. However, the ministry is working on finer details of the proposal and the amount,” the official added.
The project could translate into significant political gains for the government to offset some of its challenges in Jammu and Kashmir, where it will help the government to connect with people and also strengthen its base in Northeast and Naxal-hit areas, thus enhancing its electoral prospects in 2019.
However, the Finance Ministry is already worried over the increasing expenditure, which includes increasing Minimum Support Price for farmers, rising oil prices, weakening Rupee, and low private and foreign investments, which may upset the fiscal maths.
“While we already expected an increased spending in the election year, the impact of recent global shocks can be worse than anticipated,” said an official from the ministry.
FinMin’s troubles
Finance Ministry is already worried over the increasing expenditure, which includes increasing Minimum Support Price for farmers, rising oil prices, weakening Rupee, and low private and foreign investments, which may upset the fiscal maths