Finance minister P. Chidambaram will be tackling Maoist violence as a top priority when he presents the annual Budget on Thursday by substantially hiking allocations for schemes to address the development needs of Naxal-affected areas.
Also, the anticipated tight fiscal management of Mr Chidambaram is likely not to impact the allocation of the ministry of rural development, which runs critical flagship schemes the Congr-ess is counting on for the general election next year.
Sources said the annual budgetary support to the rural development ministry is set to go up from last year’s Rs 72,000 crore to Rs 75,000 crore for 2013-14 despite earlier apprehensions of curtailment. Mr Chidambaram is also set to hike budgetary support for the Integrated Watershed Management Programme from last year’s Rs 3,400 crore to Rs 5,700 crore for 2013-14, sources said. The IWMP is considered crucial in the fight against Maoist violence as under it the Centre executes projects in Naxal-affected and drought-prone areas for land development and minor irrigation.
The allocation to rural development will be substantial, as in the revised estimate it was scaled down to Rs 55,000 crore from the budgetary estimate of Rs 72,000 crore. The MNREGS, which is demand-based and statutory, is likely to get about Rs 33,000 crore. However, the department of drinking water and sanitation, which was allocated Rs 14,500 crore last year (40 per cent more than the previous year), is set for a deep cut, sources added.