The resource crunch faced by the UPA government is likely to put country?s internal security measures on backburner. Lack of central sector funds may withhold proposals by the home ministry to tackle growing naxalite activities in worst-hit states, particularly Jharkhand, Chhattisgarh and Andhra Pradesh.
According to official sources, the finance ministry has expressed its inability to meet the demands of the home ministry to fund programmes to strengthen networks to counter security threats and expedite implementation of welfare schemes such as Pradhan Mantri Gram Sadak Yojana, Indira Awas Yojana, National Rural Employment Guarantee Act Scheme, Sarva Shiksha Abhiyan and the Integrated Child Development Scheme in naxal-affected states.
It has already thrown a spanner into the implementation of the government?s major development programmes such as Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), upgrade of ITIs and implementation of health insurance scheme to cover 1.2-crore BPL families.
The finance ministry has also said that the, ?Full requirement of power sector, specially for APDRP (Accelerated Power Development and Reforms Programme) and RGGVY cannot be met?.
According to Planning Commission sources, if the finance ministry agrees to a Gross Budgetary Support (GBS) of about Rs 2,30,000 crore, the power sector?s share could decline around 10.70%, from Rs 5483 crore in 2007-08 to Rs 4622.13 crore in 2008-09.
The finance ministry has said the labour ministry?s health insurance scheme, which has been launched with an eye on the general polls, ?can be initiated only on a modest scale?.
The scheme has been formulated for BPL workers and will cover 6 crore families progressively in the next 5 years. In all, more than 30 crore workers will be benefitted. Each family would be entitled to health care worth Rs. 30,000/- per annum. Under the scheme, during the first year, an expenditure of about Rs. 700 crore is estimated and this will go up to more than Rs 3500 crore at the end of five years.