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On March 14, 2022 Rajya Sabha discussed the working of the Ministry of Development of North Eastern Region (DoNER).  During the discussion, several issues around budgetary allocation, implementation of schemes and connectivity with the North Eastern Region were discussed.  The Ministry of DoNER is responsible for matters relating to the planning, execution and monitoring of development schemes and projects in the North Eastern Region.  In this blog post, we analyse the 2022-23 budgetary allocations for the Ministry and discuss related issues.  

A new scheme named PM-DevINE announced to boost infrastructure and social development

In 2022-23, the Ministry has seen a 5% increase in allocation from the revised estimates of 2021-22.  The Ministry has been allocated Rs 2,800 crore which will be used for various development schemes, such as the North East Special Infrastructure Development Scheme and North East Road Sector Development Scheme.  A scheme-wise break-up of the budget allocation for the Ministry is given below in Table 1.  

One of the key highlights of the Finance Minister’s Budget Speech was the announcement of a new scheme named the Prime Minister’s Development Initiative for North East (PM-DevINE).  It will be implemented through the North East Council (nodal agency for the economic and social development of the North Eastern Region).  PM-DevINE will fund infrastructure and social development projects in areas such as road connectivity, health, and agriculture.  The scheme will not replace or subsume existing central sector or centrally sponsored schemes.  The Scheme will be given an initial allocation of Rs 1,500 crore.

Table 1: Break-up of allocation to the Ministry of DoNER (in Rs crore)

Major Heads

2020-21 Actuals

2021-22 BE

2021-22 RE

2022-23 BE

% change from 2021-22 RE to 2022-23 BE

North East Special Infrastructure Development Scheme

446

675

674

1,419

111%

Schemes of North East Council

567

585

585

702

20%

North East Road Sector Development Scheme

416

696

674

496

-26%

Central pool of resources for North East and Sikkim

342

581

581

-

-

Others

270

322

344

241

-30%

Total

1,854

2,658

2,658

2,800

5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: BE – Budget Estimate; RE – Revised Estimate; Schemes for North East Council includes Special Development Projects.

Sources: Demand No. 23 of Union Budget Documents 2022-23; PRS. 

Allocation towards capital outlay less than demand

The Standing Committee on Home Affairs (2022) noted that the amount allocated at the budget stage in 2022-23 (Rs 660 crore) was 17% less than the demand by the Ministry (Rs 794 crore).  Capital expenditure includes capital outlay which leads to the creation of assets such as schools, hospitals, and roads and bridges.  The Committee observed that this may severely affect the implementation of several projects and schemes that require capital outlay.  It recommended the Ministry to take up this matter with the Finance Ministry and demand additional assistance at the revised stage of the 2022-23 financial year.

Underutilisation of funds over the years

Since 2011-12 (barring 2016-17), the Ministry has not been able to utilise the funds allocated to it at the budgeted stage (See Figure 1).  For instance, in 2020-21, fund utilisation in case of the North East Road Sector Development Scheme was 52%, whereas only 34% of funds were utilised under the North East Special Infrastructure Development Scheme (for infrastructure projects relating to water supply, power, connectivity, social infrastructure).  Key reasons for underspending highlighted by the Ministry include late receipt of project proposals and non-receipt of utilisation certificates from state governments.

Figure 1: Underutilisation of funds by the Ministry since 2011-12

image
 Note: Revised Estimate has been used as the Actual Expenditure for 2021-22.
 Sources: Union Budget Documents (2011-12 to 2022-23); PRS
.

Delay in project completion

The Ministry implements several schemes for infrastructural projects such as roads and bridges.  The progress of the certain schemes has been inadequate.   The Standing Committee (2022) observed that the physical progress of many road sector projects under the North East Road Sector Development Scheme is either at zero or in single digit percent in spite of release of the amount for the project.  Similarly, projects under the Karbi Anglong Autonomous Territorial Council (autonomous district council in Assam) and Social and Infrastructure Development Fund (construction of roads, bridges, and construction of schools and water supply projects in the North Eastern Region) have seen inadequate progress.

Need to address declining forest cover

The Standing Committee (2021) has also recommended the Ministry of DoNER to work towards preserving forest cover.  The Committee took note of the declining forest cover in the North East India.  As per the India State of Forest Report (2021), states showing major loss of forest cover from 2019 to 2021 are: (i) Arunachal Pradesh (loss of 257 sq km of forest cover), (ii) Manipur (249 sq km), (iii) Nagaland (235 sq km), (iv) Mizoram (186 sq km), and (v) Meghalaya (73 sq km).  The loss of forest cover may be attributed to shifting cultivation, cutting down of trees, natural calamities, anthropogenic (environmental pollution) pressure, and developmental activities.  The Committee recommended that various measures to protect the forest and environment must be given priority and should implemented within the stipulated timeline.  It also suggested the Ministry to: (i) carry out regular plantation drives to increase forest cover/density, and (ii) accord priority towards the ultimate goal of preserving and protecting the forests under various centrally sponsored initiatives.

Key issues raised by Members during discussion in Rajya Sabha

The discussion on the working of the Ministry of DoNER took place in Rajya Sabha on March 14, 2022.  One of the issues highlighted by members was about the Ministry not having its own line Department.  This leads to the Ministry being dependent on the administrative strength of the states for implementation of projects.  Another issue highlighted by several members was the lack of connectivity of the region through railways and road networks which hampers the economic growth of region.  The DoNER Minister in his response to the House assured the members that the central government is making continuous efforts towards improving connectivity to the North East region through roads, railways, waterways, and telecommunication.         

Allocation by Union Ministries to the North East 

Union Ministries allocate 10% of their budget allocation for the North East (See Figure 2 for fund allocation and utilisation).  The Ministry of DoNER is the nodal Ministry that monitors and keeps track of the allocation done by various Ministries.  In 2022-23, Rs 76,040 crore has been allocated by all the Ministries for the North Eastern region.  The allocation has increased by 11% from the revised estimate of 2021-22 (Rs 68,440 crore).   In 2019-20 and 2021-21 the actual expenditure towards North Eastern areas was lower than budget estimates by 18% and 19% respectively.  

Figure 2: Budgetary allocation by all Union Ministries for the North East (amount in Rs crore)

image   

Source: Report No. 239: Demand for Grants (2022-23) of Ministry of Development of North Eastern Region, Standing Committee on Home Affairs; PRS.

On March 22, Bihar registered its first two cases of the new coronavirus disease (COVID-19), one of whom died the same day.  Since then, the number of cases has increased steadily. As of April 19, Bihar has 86 confirmed cases of COVID-19, of which 47 are active cases and 37 have recovered.  33 new cases have been registered since last week. One more death has been registered since March 22.

Given the highly contagious nature of the disease, on March 22, the Government of Bihar announced a state-wide lockdown till March 31.  This was followed by a nation-wide lockdown enforced by the central government between March 25 and April 14, now extended up to May 3.  During the lockdown, severe restrictions have been placed on the movement of individuals. Establishments have remained closed, except those providing essential goods and services.  Restrictions are likely to be relaxed in less-affected districts post-April 20.

In this blog, we look at key measures taken by the state government in response to COVID-19 so far.

Early-stage: screening of travellers, awareness on precautionary measures

The initial responses from the state government were aimed towards: (i) raising awareness about precautionary measures to be taken against the disease, and (ii) screening of international travellers.  In this context, on February 25, the Bihar State Health Society issued advisories for: (i) measures to be taken in schools and colleges, and (ii) reporting of airline passengers and tourists with symptomatic cases to the district health administration.  On March 11, 104 Call Centre was designated as the COVID-19 control room, to address public queries related to the disease.

Prior to lockdown: limiting mass gatherings, mobilisation of the public health system

Limiting mass gatherings

Between March 13 and March 18, the state government issued orders to shut down various premises until March 31. These include Anganwadi centres, educational institutions, and commercial establishments such as cinema halls, parks, and shopping malls. The government staff was directed to come to office on alternate days. Gathering of more than 50 persons at one place was prohibited including any mass family gathering (except marriages).  The transport department was asked to restrict both public and private transport.

Healthcare measures

Welfare measures

  • On March 16, the Chief Minister announced that treatment costs for COVID-19 for residents of Bihar will be sponsored from the Chief Minister Medical Assistance Fund.  Moreover, the state government will provide assistance of four lakh rupees to the family of a person dying due to COVID-19.

  • The government issued directions to provide direct cash transfer in place of the food provided under the Mid-Day Meal scheme in schools, and at Anganwadi centres.

Essential goods and services

On March 21, the Food and Consumer Protection Department directed the district administration to ensure implementation of the Bihar Essential Article (Display of Prices and Stocks) Order, 1977.  The Order requires sellers of specified items to display stock and price for the public’s reference.  The specified items include food items, edible oilseeds, and petroleum products.  The Department also directed the district administration to send proposals for adding any new items to the list of specified items.

During lockdown: strengthening medical response, welfare measures

Upon announcement of the lockdown on March 22, state-level and district-level coordination committees were set up.  During the lockdown, the state government’s measures have been aimed towards: (i) strengthening the medical response in the state, (ii) providing relief to various sections of society from issues being faced during the lockdown, and (iii) addressing difficulties with the supply of essential goods and services.

Healthcare measures

  • On March 25, the Health Department constituted the Bihar COVID-19 Emergency Response Team which is responsible for the control and coordination of all health-related response.

  • Protocols for containment and treatment: Directions have been issued to implement several guidelines related to containment and treatment measures.  These include: (i) set up and operationalization of isolation centres and quarantine centres, (ii) containment plan to address local transmission and community transmission through cluster containment strategy, (iii) surveillance program for Influenza-like Illness (ILI) and Severe Acute Respiratory Illness (SARI), (iv) handling of waste generated during treatment/diagnosis/quarantine, and (v) sanitation of residence and nearby areas of a COVID-19 positive person.

  • Door-to-door screening campaign: On April 14, the Chief Minister issued directions to start door-to-door screening campaign for suspected cases in affected districts including Siwan, Begusarai, and Nalanda.  Such screening campaign will also be run in districts in border-areas, and an area within 3 km radius of the residence of COVID-19 positive patients.

  • Increasing manpower: The government invited medical professionals including doctors, nurses, and paramedics to volunteer.  It also directed the district administration to engage retired doctors, nurses, and paramedics from defence services for volunteer work.  Leaves of all employees of the Health Department were cancelled until April 30.  The Health Department deputed AYUSH practitioners to assist at isolation and quarantine centres.

  • Dedicated infrastructure for COVID-19: On April 5, certain government hospitals were designated as exclusive hospitals for treatment of COVID-19 patients.  The Health Department also directed certain big private hospitals in Patna to stop OPD services.

  • Other health-related measures: On March 23, the state government announced payment of one-month basic salary as an incentive to all doctors and health workers.  On April 13, the Health Department issued an order prohibiting spitting in public places by tobacco, cigarette, and Pan users.  Further, the state government announced that it will procure test kits from the private sector.

Welfare measures

  • Relief package: On March 23, the state government announced a relief package for people affected due to lockdown.  Key features of the relief package are: 

  1. ration of one-month to all ration cardholders for free,

  2. one-time cash transfer of Rs 1,000 per family to ration cardholders,

  3. payment of pensions for three months in advance to all pensioners including pension for old age persons, widows, and physically challenged, and

  4. release of pending scholarships to all students.

  • Help for migrants: On March 26, Rs 100 crore was allocated from the Chief Minister Relief Fund to provide aid to the migrants from Bihar stuck in other parts of the country due to the lockdown.  On April 2, the state government announced that a one-time cash transfer of Rs 1,000 will be provided to the migrants.  On April 13, an additional Rs 50 crore was allocated from the Relief Fund for this purpose.  State-wise nodal officers have been appointed for coordination of relief efforts for migrants.  The state government is running 10 food centres in Delhi to help migrants from Bihar.

  • Relief camps: On March 28, the state government decided to start relief camps along the border (including Nepal border) offering food, shelter, and medical help to persons coming in the state.  Community kitchens and relief camps have been started in government school campuses to provide food and shelter. 

  • Electricity tariff:  On April 8, the State Cabinet approved the proposals for: (i) reducing electricity tariff for domestic and agricultural consumers by 10 paise per unit and (ii) waiving the monthly meter fee.

Measures for businesses and agricultural activities

  • The state government provided certain relaxations to businesses in matters related to taxation.  These include:

  1. extension in the deadline for payment of GST from March 31 to June 30, no interest or penalty charges to be levied for late payment in certain cases,

  2. three-month extension in the deadline for one-time settlement scheme for pre-GST tax disputes, and

  3. cancellation of orders regarding attachment of bank accounts of certain tax defaulters.

  • On April 16, the Chief Minister issued directions to start procurement of wheat through the Primary Agriculture Credit Society (PACS).

Essential goods and services

Other Measures

Education:  On April 8, the cabinet approved the proposal to promote students of Class I to XI (except class X) without annual examination.

Legislature:  Salaries of MLAs and MLCs have been reduced by 15% for one year.  The amount will be donated to the state’s Corona relief fund.

Labour and employment:  On April 16, the Chief Minister issued directions to resume public works under the Saat Nischay Programme, Jal Jeevan Hariyali Yojana, and MNREGA.

For more information on the spread of COVID-19 and the central and state government response to the pandemic, please see here.