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Union Budget 2023-24: Provisions & Fund Allocation for Assam and North East India

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Union Budget 2023-24 – Fund Allocation & Provisions for Assam and North East India

 

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On February 21, 2023, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023, which has provided much higher outlays for the Ministry of Development of North Eastern Region (MDoNER) during the Financial Year 2023-24.

With the objective of seeking a significant impact in the North Eastern Region (NER), emphasis has been laid on enhancing capital expenditure in the NE Region. By way of devolution Northeast India will get Rs 78,500 Crore. For flagship schemes the budget has allocated Rs 5000 Crore more this year.

  • Enhanced outlays are provided towards supporting the initiatives with special focus for the ST and SC communities; and the livelihoods of the women and the youth in NE Region.
  • There have been significant increases in the MDoNER Scheme-wise outlays also, that will increase the impact in infrastructure, social-development and livelihood sectors in the NER.
  • The quantum of funds to be earmarked by the various Central Ministries / Departments in the NER as per the 10% Gross Budgetary Support (GBS) stipulations have also been significantly enhanced.
  • Some of the major ongoing infrastructure projects in NER such as Capital Connectivity Roads and Rail-Lines, Air Connectivity, Power, Telecom, Petroleum & Natural Gas etc. are financed under 10% GBS.

Some of the announcements related to the Ministry of Development of North Eastern Region (DoNER) are: 

  • There is a step-jump in the budget outlay for the MDoNER during the Financial Year 2023-24. The total B.E. 2023-2024 allocation is Rs. 5892.00 crore; well over twice (~114% higher than) the RE 2022-23 allocation of Rs. 2755.05 crore.
  • Out of this, Rs 4093.25 crore (~70%) is provided for Capital expenditure. In addition, Rs. 1,324.03 crore further from within the amount of Rs. 1,798.75 crore provided for Revenue Expenditure is as grants for creation of capital assets.
  • This is tantamount to provisioning of Rs. 5,417.28 crore (~92%) out of Rs. 5,892.00 crores as B.E. 2023-24 outlay for MDoNER towards expenditure of capital nature.  
  • The total B.E. 2023-2024 allocation for the infrastructure targeted North East Special Infrastructure Development (NESID) Scheme is Rs. 2,491.00 crore; well over (~67% higher than) the RE 2022-23 allocation of Rs. 1,493.30 crore.
  • The total B.E. 2023-2024 allocation for the infrastructure, social development and livelihoods targeted Prime Ministers Development Initiative for North-East (PMDevINE) Scheme is Rs. 2,200.00 crore; four and a half times the RE 2022-23 allocation of Rs. 400.00 crore. PM-DevINE was announced in the union budget to address developmental gaps in the northeastern region.
  • The total B.E. 2023-2024 allocation for the overall wholistic development, social infrastructure and social development targeted Schemes of North Eastern Council (NEC) is Rs. 800.00 crore ; (~20% higher than) the RE 2022-23 allocation of Rs. 666.87 crore. 
  • As per Expenditure Profile of Union Budget 2023-24 Statement-11, the 10% GBS share for the NER comes to Rs. 94,679.53 (~31% higher than) the RE 2022-23 allocation of Rs. 72.540.28 crore under 10% GBS share of the 55 non-exempt Ministries / Departments.
  • The allocation for Tribal Sub Plan (TSP) out of the B.E. outlay for 2023-24 has been enhanced to Rs. 1690.00 crore or over twice (~101% higher than) the RE 2022-23 allocation of Rs. 839.95 crore for TSP. 
  • The allocation for Scheduled Caste Sub Plan (SCSP) out of the B.E. outlay for 2023-24 has been enhanced to Rs. 488.00 crore or nearly one and a half times (~48% higher than) the RE 2022-23 allocation of Rs. 330.54 crore for SCSP.
  • In comparison to the actual expenditure of Rs. 24,819.18 crore in 2014-15, the B.E. 2023-24 provision for 10% GBS shows an increase of Rs. 71,860.35 crore ; nearly thrice ( ~281% higher than) the actual expenditure in 2014-15.
  • In aggregate,  a total of Rs. 3,37,000 crore was spent in the period from 2014-15 to 2021-22. Together with the anticipated expenditures of Rs. 72,540.28 crore in 2022-23 and Rs. 94,679.53 crore in 2023-24, the aggregate expenditure in NER under the 10% GBS stipulation is likely to reach Rs. 5,00,000 crore in the decade from 2014-15 to 2023-24.
  • For the first time an amount of Rs 1.20 lakh crore has been earmarked for connecting the hilly and border areas of the region.

 

Read Highlights of Union Budget 2023-24

 

Funds for Railway Development in Assam & North East States

Adequate fund has been allotted for the overall development of railway infrastructure in all Northeastern states. Union Budget 2023 has allocated 19 projects of Rs. 75,795 crore for the Railways in Assam and NorthEast. 19 projects covering 2,008 Km is are currently in process at Assam and other Northeastern regions. 

Under Amrit Bharat Station Scheme, 59 stations in the North East will be developed with world-class amenities/facilities. The list of stations that will be benefited under the scheme are: Naharalagun (Itanagar), Amguri, Arunachal, Chaparmukh, DhemajiDhubriDibrugarh, Diphu, Duliajan, Fakiragram Jn., Gauripur, Gohpur, Golaghat, Gosaigaon hat. Haibargaon, Harmuti, HojaiJagiroad, Jorhat Town, Kamakhya. Kokrajhar, Lanka, Ledo, Lumding, Majbat, MakumJn, Margherita, Mariani, Murkongsolek, Naharkatia, Nalbari. Namrup, Narangi, New Bongaigaon, New Haflong, New Karimganj, New Tinsukia, North Lakhimpur, Pathshala, Rangapara North, RangiyaJn, SarupatharSilapathar, Silchar, Simalguri, Sivasagar Town, Tangla, Tinsukia, Udalguri, ViswanathChariali, Imphal, Sairang (Aizawl), Dimapur, Rangpo, Agartala, Dharmanagar, Kumarghat, Udaypur.

15 stations each in all divisions of NFR to be developed under Amrit Bharat Station Scheme.

The Union Budget 2023-24 has earmarked Rs 10,988.80 crore for the development of railways in the North East. It is 13.75 per cent more than the previous year’s allotment (Rs 9,660.14 crore). 

Total railway infrastructure projects of Rs 75,795 crore are going on in the entire Northeastern region. An adequate allocation has been made for the early execution of all the ongoing works. Around Rs 1,100 crore has been allocated for Dimapur-Kohima new line projects while Rs 800 crore is earmarked for the execution of the Jiribam-Imphal new line projects.

  • Other capital connectivity projects in the Northeastern states such as Sivok – Rangpo new line projects in Sikkim gets Rs 2,350 crore while Rs 915 crore has been allocated for Bairabi-Sairang new line projects in Mizoram.
  • Among other new line projects, Rs 200 crore for Agartala-Akhaura international connectivity project between India and Bangladesh and around Rs 700 crore is allocated for Araria – Galgalia project.
  • Rs 600 crore for New Bongaigaon – Rangiya-Kamakhya and Rs 500 crore for New Bongaigaon-Goalpara-Kamakhya has been allocated for speedy execution of the ongoing track doubling works, he also said.
  • Moreover, Rs 115 crore has been allocated for the doubling works between Katihar-Kumedpur and Katihar-Mukuria sections to further improve train connectivity to and from Northeast.
  • Agthori station near Guwahati will be redeveloped with world-class facilities for Rs 517 crore.

 

Acknowledgment

Assam Chief Minister Himanta Biswa Sarma “Assam Govt will be richer by Rs 10,000 Crore following the Union budget 2023-24. CM Sarma said, “We have calculated and Assam will be richer by Rs 10,000 following the budget. This part only relates to untied fund. Once we calculate the money from the schemes it will be much more.”

While grant of Panchayats is increased by 15 percent grant of town committees is increased by 61 percent. “SDRF grant is increased by 5 percent and Central sector allocation is enhanced by 5 percent. The interest free loan amount of Assam is increased to Rs 6000 Crore.”

Assam will get an additional Rs 6400 crore of untied funds from the budget than the previous year. From some Rs 25,000 crore annually, this budget has allocated Rs 31, 950 Crore for Assam which is a hike of Rs 6,400 Crore. That means that now the state government will get around Rs 550 Crore more from the Centre monthly.”

Currently, the state government receives around Rs 18,000 Crore monthly from the Centre as untied funds which the state government can utilize at its own will.

 

Federation of Industry and Commerce of North Eastern Region (FINER) has hailed the Budget 2023, welcoming the budget, Bajrang Lohia said that the Finance Minister presented a citizen-centric, growth-oriented budget, which clearly sets the priorities going ahead, aiming at a stable tax regime. The budget focuses on the youth, women, and disadvantaged in general, and strives for enabling opportunities among the people.

The announcement of laying Rs.2491 crore for the North East Special Infrastructure Development Scheme is a huge relief to the industry fraternity of the region. Under the scheme, 100 percent centrally funding is provided to the State governments of North Eastern Region for the projects of physical infrastructure relating to water supply, power and connectivity enhancing tourism and social infrastructure relating to primary and secondary sectors of education and health.

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History of Economic Planning in Pre-Independence India – Indian Economy Notes for APSC Exam

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History of Economic Planning in Pre-Independence India

Indian Economy Notes for APSC, UPSC and state Exams

 

Go to Indian Economy Notes                                              Go to Assam Economy Notes

Significance of Economic planning was acknowledge even before the India’s Independence. Economic planning were advocated by many great leaders of that time. Prominent intellectuals like Dadabhai Naoroji, M. C. Ranade, R. C Dutt and M. Visvesvaraya wrote extensively on the social and economic problems of the Indians. Leaders of the freedom movement and prominent industrialists  discussed the future of India after Independence.

The Industrial Policy Statement published just after independence in 1948 recommended setting up of a Planning Commission and following a mixed economic model. The Planning Commission was set up on 15 March 1950 and the First Five Year Plan started on 9 July 1951. The Planning Commission was dissolved on 17 August 2014 and NITI (National Institution for Transforming India) Aayog was instituted on 1 January 2015.

 

Various Economic Planning of Pre-Independence India

Starting from the Soviet Union experiment in 1928, economic planning slowly spread over great part of the world. And during 1930s depression when all the major economies were beaten badly, USSR was exempted from effects of this great depression mainly because of their planning after that whole world was attracted towards USSR’s economic planning. model.

The resolutions of the Indian National Congress from 1929 onwards stressed the need for the revolutionary changes in the present economic structure of society and removal of great inequalities in order to remove poverty and improve the economic and social conditions of the masses.

M. Visvesvaraya, the 19th Diwan of Mysore and noted civil engineer is regarded as a pioneer of economic planning in India. His wrote a book “Planned Economy for India” which was published in 1934, wherein he suggested a ten year plan, with an outlay of Rs. 1000 crore and a planned increase of 600% in industrial output per annum. This was the first systematic work in the direction of planning for economic development of India.

The Government of India Act – 1935, introduced provincial autonomy as per which Congress Government were formed in eight provinces. In August 1937 the Congress Working Committee passed a resolution suggesting the committee of inter provincial experts to consider urgent and vital problems, the solution of which is necessary to any scheme of national reconstruction and social planning.

 

NATIONAL PLANNING COMMITTEE (1938)

National Planning Committee, was first initiated in India in 1938 by the session Congress President Netaji Subhash Chandra Bose, later on Jawaharlal Nehru headed the National Planning Committee. This was followed by the formulation of National Planning Committee consisting of fifteen members.

The setting up of a National Planning Committee highlighted both the
importance of social and economic objectives as also need to profit from the experience of planned development through national plans elsewhere.

The National Planning Committee appointed several sub committees to study different aspects of the national economy. It attempted to examine the fundamental economic problems and draw up co – ordinate plan for upliftment of the people.

A separate department of Planning and Development was established with Sir Ardeshir Dalal as a member in charge. Panels were constituted for the development of basic and important consumer goods industries. Similarly, post Second World War committee was constituted under the chairmanship of Sir Ramaswami Mudaliar.

 

BOMBAY PLAN (1944)

In the early 1944, several eminent industrialists and economists of Bombay Sir
Purshottamdas Thakurdas, Mr. J.R.D. Tata and six others made another attempt and published a development plan, which was called Bombay plan.

Its main purpose was to stimulate the thinking of the people and to lay down the principles on the basis of which a national plan could be formulated and executed.

The central aim of the plan was to raise the national income to such a level that after meeting the minimum requirements of every individual we would be left with enough resources for the enjoyment of life and for cultural activities.”

  • Its objective was at doubling the per capita income in the country within 15 years.
  • It proposed the increase of about 130 per cent and 500 percent, in agriculture and industry respectively.
  • The total outlay of Rs. 10,000 crores was recommended.

The planners believed that this could be achieved only by reducing the overwhelming predominance of agriculture and by establishing a balanced economy.

This plan was the systematic scheme of economic planning which made the country plan-minded. Its major shortcoming was of maintenance of a capitalist order and not giving much emphasise to the agriculture sector.


GANDHIAN PLAN (1944)

This plan was based upon Gandhian philosophy was put forward by Shri S.N. Agarwal of Wardha. The outlay of the plan was estimated Rs. 3500 crores only and it sought to set up a decentralized economy with self sufficient villages and Industrial production.

It laid emphasis on small scale industries and agriculture.

 

PEOPLE’S PLAN (1945)

A ten year plan was prepared by the M.N. Roy. Its chief emphasis was on agricultural and consumer goods industries through collectivization and setting up of sate owned industrialization.

The total outlay was of Rs. 15000 crores. It also advocated the nationalization of land.

 

POST WAR RECONSTRUCTION (1941- 46)

The government of India seriously considered the plans for the post war reconstruction during June, 1941 and appointed a reconstruction committee of the cabinet with Viceroy as Chairman and the members of the Executive Council as Members. In June, 1944 Planning and Development Department was created under a separate member of the Executive Council for organizing the planning work in the country. To assist the department, there was a Planning and Development Board consisting of Secretaries of economic department.

It suggested to State Governments that special priority should be given to schemes for training technical personnel.

The department of planning and development was abolished in 1946.

ADVISORY PLANNING BOARD (1946)

The interim Government was installed on 24th August, 1946. The Advisory Planning Board submitted its report in January, 1947. Its major recommendations were

  • The increase in production that is essential could be secured only through a well considered plan.
  • There must be control on the use of energy sources, control over distribution and price and as well leases and sub leases.
  • Mineral rights in the permanently settled areas in Bengal and Bihar should be
    acquired by the state.

For future Planning organizations, the Board suggested the setting up of single compact organization. The composition of the Planning Commission it was recommended that the Chairman should be a senior minister, holding no portfolio. No minister should be a member of the Planning Commission and that it should be, as far as possible, a non political Commission consisting of five members. It also recommended a consultative body of 25 to 30 members which would meet half yearly or quarterly to advice on problems and receive progress reports.

Five year plans of India – Indian Economy Notes for APSC Exam

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Five Year Plans of India

Indian Economy Notes for APSC, UPSC and state Exams

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India has launched a total of twelve Five Year Plans, starting with the first five-year plan in 1951. The Five Year Planning is discontinued after the 12th Five Year Plans as the the Planning Commission was dissolved in 2015.

 

List of five year plans of India
 
1. First Five Year Plan

Period: 1951 to 1956

Base Model: Harrod-Domar model with a few modifications.

Focus Area: Agricultural development.

Result: This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%).

At the end of this plan, five IITs were set up.

2. Second Five Year Plan

Period: 1956 to 1961

Base Model: Based on the P.C. Mahalanobis Model made.

Focus Area: Industrial development of the country.

Result: The plan lags behind its target growth rate of 4.5% and achieved a growth rate of 4.27%.

The plan was criticized by many experts and as a result, India faced a payment crisis in the year 1957.

3. Third Five Year Plan:

Period: 1961 to 1966

Base Model: This plan is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil.

Focus Area: To make the economy independent. The stress was laid on agriculture and the improvement in the production of wheat.

During this plan period, India got engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defence industry, the Indian Army and the stabilization of the price.

Result: It could not achieve any targets due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%.

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4. Plan Holidays:

Period: Due to the failure of the third Five Year Plan due to Indo-Pakistani war and the Sino-India war, the government announced plan holidays from 1966 to 1969.

During this plan, annual plans were made.

Focus Area: Equal priority was given to agriculture its allied sectors and the industry sector. To increase the exports in the country, the government declared devaluation of the rupee.

5. Fourth Five Year Plan:

Period: 1969 to 1974.

Focus Area: Two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.

Indo-Pakistani War of 1971 and Bangladesh Liberation War also took place during this period.

Result: This plan failed and could achieve a growth rate of 3.3% only against the target of 5.6%.

During this plan, 14 major Indian banks were nationalized and the Green Revolution was started.

6. Fifth Five Year Plan:

Period: 1974 to 1978. It plan was terminated in 1978 by the newly elected Moraji Desai government.

Focus Area: Garibi Hatao, employment, justice, agricultural production and defence.

Result: Tthis plan was successful which achieved a growth of 4.8% against the target of 4.4%.

The Electricity Supply Act was amended in 1975, Twenty-point programme was launched in 1975, the Minimum Needs Programme (MNP) and the Indian National Highway System was introduced.

7. Rolling Plan:

Period: After the termination of the fifth Five Year Plan, the Rolling Plan came into effect from 1978 to 1990. In 1980, the elected Congress Govt terminated the Rolling Plan and a new sixth Five Year Plan was introduced.

Three plans were introduced under Rolling plan: (1) For the budget of the present year (2) this plan was for a fixed number of years – 3, 4 or 5 (3) Perspective plan for long terms – 10, 15 or 20 years.

The plan has several advantages as the targets could be mended and projects, allocations, etc. were variable to the country’s economy.

8. Sixth Five Year Plan:

Period: 1980 to 1985

Focus Area: Economic liberalisation by eradicating poverty and achieving technological self-reliance.

Base Model: Based on investment Yojna, infrastructural changing and trend to the  growth model.

Result: It achieved a growth rate of 5.7% as against the planned target of 5.2%.

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9. Seventh Five Year Plan:

Period: 1985 to 1990

Focus Area: Establishment of a self-sufficient economy, opportunities for productive employment and up-gradation of tecnology.

For the first time, the private sector got the priority over public sector.

Result: It achieved a growth rate of 6.01% as against the planned target of 5.0%.

10. Annual Plans:

The Eighth Five Year Plan could not take place due to the volatile political situation in the country.

Period: Two annual plans were formed for the year 1990-91& 1991-92.

11. Eighth Five Year Plan:

Period:  1992 to 1997

Focus Area: Top priority given to the development of human resources i.e. employment, education, and public health.

Result: The plan achieved an annual growth rate of 6.8% against the target of 5.6%.

New Economic Policy of India was launched

12. Ninth Five Year Plan:

Period: 1997 to 2002

Focus Area: growth with justice and equity

Result: This plan achieved a growth rate of 5.6% as against the growth target of 7%.

 

13. Tenth Five Year Plan:

Period: 2002 to 2007.

Targets:

  • To double the Per Capita Income of India in the next 10 years.
  • To reduce the poverty ratio of 15% by 2012.
  • To achieve 8% GDP growth rate,
  • To increase the literacy rate in the country.

Result: Its achieved growth rate of 7.2% as against the target of 8.0%.

14. Eleventh Five Year Plan:

Period: 2007 to 2012.

Base Model: The plan was prepared by C. Rangarajan.

Targets:

  • To increase the growth rate in agriculture, industry, and services to 4%,10% and 9% respectively.

Focus Area: Theme was “rapid and more inclusive growth”.

Result:

  • It achieved a growth rate of 8% against the plan’s target of 9% growth.
  • Agriculture sector grew at an average rate of 3.7% as against 4% targeted.
  • Industry grew with an annual average growth of 7.2% against 10% targeted.
15. Twelfth Five Year Plan:

Period: 2012 to 2017.

Focus Area: Theme is “Faster, More Inclusive and Sustainable Growth”.

Targets:

  • Raising agriculture output to 4 percent.
  • Manufacturing sector growth to 10 %
  • The target of adding over 88,000 MW of power generation capacity.

Result: Its growth rate target was 8%.

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Objectives of Economic Planning in India

Economic Development: Economic Development of India is measured by the increase in Gross Domestic Product (GDP) and Per Capita Income

Increased Levels of Employment: To better utilise the available human resources of the country by increasing the employment levels.

Regional Development: To reduce regional disparities in economic development among the various regions of the country.

All-Sector and Sustainable Development: Development of all economic sectors such as agriculture, industry, and services.

Increased Living Standard by increasing the per capita income.

Self Sufficiency: To make India self-sufficient in major commodities and also increase exports through economic planning.

Economic Stability: To create stable market conditions by keeping inflation low/moderate level

Social Welfare and Efficient Social Services: To increase labour welfare, social welfare for all sections of the society. Development of social services like education, healthcare and emergency services have been integrated in Indian planning policies.

Economic equality and wealth redistribution: Measures to reduce inequality through progressive taxation, employment generation and reservation of jobs.

Social Justice: It aims to reduce the population of people living below the poverty line and provide them access to employment and social services.

 

 

Now, with the dissolution of the Planning Commission and setting up of the NITI Aayog, the scheme of Five Year Plan is discontinued.