TIOL-DDT 1115 · Thursday, 21 May 2009 · story 1 of 2

Challenges before the New Government – Even spending money is difficult for the Babus

RAJIV GANDHI was worried that out of a rupee spent by the Government, only eleven paise reach the beneficiary. Obviously about 90% is eaten away by middlemen. If you think the government is spending your money in an irresponsible way, the CAG has found that they are not even capable of spending all the money that Parliament has authorised them to spend.

The Central Government's expenditure for 2007-08 was to the tune of 8.63 Lakhs Crores of which the Revenue Expenditure was about 7.35 Lakhs Crores and Capital Expenditure about 1.17 Lakh Crores.

The total liability of the Union Government in 2007-08 was around 25 Lakh Crores.

Even if money is granted and Parliament had voted expenditure, several Departments of the Government could not spend the money granted to them.

CBEC could not spend Rs. 113 Crores; School Education is considered so important and is covered in the Constitution but our HRD Ministry could not spend 2668 Crores and the Department of Higher Education could not spend 2952 Crores. The Education Department is consistent in their inability to spend the money granted to them, for the last three years.

Education has bureaucrats who don't like to spend money. The UGC surrendered 491 Crores; IITs 372 Crores, IISc 156 Crores, IIMs Rs. 61 Crores; the AICTE Rs. 595 Crores.

Is there some hidden agenda? An educated electorate is a threat to politicians?