Jobs largesse despite fund crunch

KOLKATA: The increased Plan outlay of Rs 22,214 crore against Rs 17,985 crore for Bengal last fiscal was approved on conditions that the state would improve revenue generation and accelerate growth, making it more inclusive. Public-private partnerships in infrastructure, roads and health sector and a comprehensive development plan had been on chief minister Mamata Banerjee's lips while she had triumphantly accepted the increased Plan outlay.
As per the Gadgill formula, the Centre can only pay 26% of the Plan allocation, provided the state keeps paying its own bit and keeps formulating ways of additional revenue generation (ARM).
After quite a few meetings with the Centre, Bengal's financial crisis, which peaked last year, shows no signs of abating. However, almost every cabinet meeting has been consistently clearing creation of jobs (more than 65,000 posts have already been created in education and home departments). The state cabinet recently cleared a proposal for creation of 46,000 teaching posts, though spread over three years. Similarly, there would be 10,000 additional posts for special constables to be recruited from Jangalmahal. Another 6900 new posts will be created in three phases for the Kolkata Police expansion. Another 668 new police posts are being created for Jhargram, plus 3238 for the Asansol-Durgapur commissionerate and police district.
While in opposition, the now ruling Trinamool-Congress coalition had been crying itself hoarse over the state's outstanding debt of Rs 2000738 crore (as on 21 March). Even as the revenue deficit stood at Rs 16,441 crore, the new government is walking the populist path when all it would need is to increase revenue in some areas. Even a one per cent hike in VAT rate (from four to five per cent) would raise nearly Rs 600 crore. The state government is even dithering over the animal resources development department's proposal to increase by Rs 2 the price of milk sold through Mother Dairy outlets, apprehending criticism.