HVK Archives: Bihar under the Laloo raj
Bihar under the Laloo raj - The Hindu
M. Vinayak
()
24 July 1997
Title: Bihar under the Laloo raj
Author: M. Vinayak
Publication: The Hindu
Date: July 24, 1997
A visiting Japanese entrepreneur told a Patna gathering, presided over by
the Chief Minister, Mr. Laloo Prasad Yadav, that if only he had a State as
rich as Bihar in mineral and material resources, he would have turned it
into another japan in three months. The irrepressible Chief Minister,
known for his sharp repartee, told the businessman: "You let me have japan
and in one month, I will turn it into another Bihar."
This joke doing the rounds in cocktail circuits has a message. Leaving
aside the fodder seam and the Central Bureau of Investigation's (CBI)
chargesheet against Mr. Yadav, even a cursory look at his Government's
record in administration will show that the chosen representative of
Bihar's backward classes has done very little for their uplift. In fact,
Bihar's misery has worsened owing to rampant corruption, nepotism and
blatant criminalisation of politics. The law and order situation is much
worse today than it was a decade ago.
The State's finances are in such a bad shape owing to mismanagement that
its public debt rose from Rs. 11,063 crores in 1994-95 to Rs. 12,281 crores
by 1995-96. The outflow of funds on account of interest payments accounted
for about a fifth of the revenue expenditure in 1995-96. Against a total
investment of Rs. 621 crores in public sector undertakings and cooperative
institutions as on March 31, 1996, the Government has received no dividend
payments at all. Bihar's liabilities at Rs. 18,770 crores were far in
excess of its assets at Rs. 15,007 crores at the end of 1995-96. The
assets grew by 27 per cent while the liabilities outstripped by 57 per cent
between 1991- 92 and 1995-96. The Comptroller and Auditor-General of India
incurred the wrath of Mr. Yadav for having drawn attention to the serious
financial lapses and irregularities of the Government.
The CAG's report cannot be viewed as a routine account of audit of
government funds. In the Bihar context, it reveals a deeper malady
afflicting its body politic than mere administrative lapses. The
increasing gap between assets and liabilities is attributed to a continuing
revenue deficit and "miscellaneous adjustments and reduced outlay on
assets." Bihar takes the cake for financial indiscipline and profligacy.
In the revenue account. while receipts amounted to Rs. 7,382 crores,
expenditure shot up to Rs. 8,207 crores in 1995-96. Of the total revenue
receipts, tax and non-tax receipts totalled Rs. 2,886 crores which was far
from adequate to finance even the non-Plan revenue expenditure at Rs. 7.377
crores. More than three-fifth's of the balance revenue receipts came from
the Government of India. As on December, 1996, the excess expenditure of
Rs. 5,383.68 crores pertaining to the period from 1977-78 to 1994-95 had
not been regularised as required by Article 205 of the Constitution.
Irregular and fraudulent drawal of funds from the Government Treasury under
various heads is not uncommon in Bihar. The Rs. 1,000-crore fodder seam hit
the limelight because of its magnitude.
The alarming increase in non-Plan expenditure led to a persistent growth in
revenue deficit from Rs. 513.74 crores in 1991-92 to Rs. 1,257.47 crores in
1994-95 and Rs. 824.80 crores in 1995-96. Although this trend is not
peculiar to Bihar, what is disturbing is the manner in which the problem is
being handled by the State Government.
An analysis of the tax revenue receipts between 1991-92 and 1995-96 shows
that sales tax continues to be a major source of revenue, but in terms of
percentage to the total receipts, it hovers around 67, up from Rs. 754.21
crores to Rs. 1,3 10 crores out of the total tax revenue which rose from
Rs. 1,132.66 crores to Rs. 1,967.29 crores.
The tardy rate of growth in tax collection leads one to suspect that
widespread corruption and slippages cause a huge loss of revenue to the
Exchequer. The per capita tax collection in the State is hardly one- fifth
of over Rs. 1.000 reported by other major States.
Interestingly, the State Government gets almost half of its annual revenue
from the Centre as its share of the Central taxes and under other heads.
its coal and steel belt generates revenues and the cess on its mineral
output, particularly coal, bauxite, etc., is a major source of income.
That there is scant regard for human resource management or budgetary
control in the administration is evidenced by what is happening in the
Water Resources Department (WRD). While the expenditure on waterworks
dropped from Rs. 104.32 crores to Rs. 43.58 crores, the establishment
expenses skyrocketed to Rs. 2 6 1.9 5 crores from Rs. 184.26 crores during
the five years ended March, 1995.
Job analysis or manpower planning was conspicuous by its absence in most
departments. In the five years ended 1995-96, the WRD spent a colossal sum
on salaries and wages to do work worth about Rs. 280 crores. It spent Rs.
77 crores on staff salaries to collect irrigation dues of Rs. 39 crores.
Fraudulent withdrawal of funds in the WRD, suspected to be part of "a
deep-rooted conspiracy by a group of persons", invited audit objections,
but the police findings are still awaited. Stealing public money is no
longer regarded by Bihar politicians as a serious crime. It has now become
a habit.
Bihar has a vast irrigation potential to step up its agricultural output.
Seven projects were taken up by the WRD between 1972- 73 and 1985-86 for
irrigating 7.08 lakh hectares. As against a revised project cost of Rs.
3,241.88 crores till March 1996, Rs. 1,443.45 crores was spent on these
projects. While the establishment costs of the projects were anticipated
at about eight to 11 per cent of the works expenditure, it eventually
ranged between 74 and 1,196 per cent!
On the scandalous state of affairs in the Animal Husbandry Department
(AHD), the Finance Ministry was fully aware of the excess drawals, which
rose from 21 per cent of its total budget provisions in 1987-88 to 229 per
cent in 1994-95. but the Government took no action. The Bill passing orders
of the department, issued every month from May 1993, were disregarded
outright by the AHD and Treasury officers with impunity in the south Bihar
districts.
Although the CAC, report for 1988-89 drew the Government's attention to the
expenditure by the AHD in excess of the budget provisions by the AHD, the
administration took no action. Nor did the Government investigate the
fraudulent payment of transportation charges, mentioned in the CAG report,
following orders from the Chief Minister that the Public Accounts
Committee's report be awaited before taking any action.
How have the backward classes been protected from atrocities committed by
the upper classes under Mr. Laloo Yadav's regime? The Prevention of
Atrocities Act, 1989 envisages a scheme which is Centrally- sponsored with
the expenditure equally shared by the Centre and the State providing
protection to these vulnerable sections.
The legislation came into effect from January 1990, providing relief to the
victims in regard to payment for the special public prosecutor, witnesses
who attend court and those who escort women victims and for their
rehabilitation.
The Central assistance of Rs. 81.95 lakhs was received from 1990-91 to
1995-96 for the scheme. Against this, the State Government released Rs. 44
lakhs and its own share of Rs. 42 lakhs. The Government showed the total
amount spent as Rs. 86 lakhs, but it included Rs. 64 lakhs lying in the
"civil deposit" in 1994-95 and 1995-96. The number of persons who benefited
was not clear though violence against the Dalits was not rare.
Similarly, for the implementation of the Protection of Civil Rights Act,
1955 financial relief is granted to the families of SCs/STs who become
victims of violence. The Laloo regime has not been serious in implementing
the Act.
Despite Bihar's vast resources, the Laloo regime failed to attract fresh
investment in the core and other crucial sectors in the post-
liberalisation years. While in West Bengal the migration of peasants from
the rural to urban areas has declined, the Biharis have to find jobs on
faraway Punjab farms or at construction sites in the South. Is Mr. Laloo
Yadav serious about stemming the rot?
Back
Top
|
