The State government is unlikely to attain the ambitious resource mobilisation target of Rs.18,581.57 crore, set to tackle the financial crisis, as many key components which figure in the initial package are yet to come up for scrutiny.
The resource mopping initiatives proposed in the package drawn up the Finance Department were expected to yield Rs.5,517.96 crore in the current financial year and Rs.13,063.61 crore the next year. But many of them had to be either shelved or watered down due to a variety of reasons, mainly political compulsions.
Sources told The Hindu that the government had to do considerable explaining to secure assent for the ordinance for putting forward the new tax proposals, especially when it had failed to realise arrears of Rs.23,026 crore due from various sources.
The expenditure rationalisation and regulatory measures were expected to earn Rs.1,500 crore in the current year and Rs.3,225 crore in the next. This included a blanket ban on reporting vacancies to the Public Service Commission and stringent curbs on creating fresh posts till March. The government would need to dilute both options in the wake of stiff resistance from youth organisations and from United Democratic Front (UDF) allies. Both proposals had not been discussed, sources said.
Retirement ageA proposal to raise the retirement age of government employees in phases was expected to yield Rs.1,700 crore in two years. A special fund mobilisation drive from welfare fund boards to garner Rs.4,725 crore in two years also may not work out as expected. Worst of all would be the crystallisation of the plan to disinvest 26 per cent shares in public sector undertakings to secure Rs.1,000 crore, sources said.
The government would soon be answering questions regarding breach of commitments under the Fiscal Responsibility and Budget Management Act, 2003. The Act mandates progressive reduction of the revenue deficit to zero. But, it had worsened to 2.8 per cent of the Gross Domestic Product. Pursuing such steps would not be easy for the government in this context, sources said.
