Friday, June 12, 2009

Is the budget fair to bring regional balance in Orissa??





Total Budget for Orissa in the financial year 2009-2010 is: 35,000 crore
Budget for Biju KBK Yojana in the financial year 2009-2010: 120 crore (0.34%)
Budget for WODC in the financial year 2009-2010: 80 crore (0.23%)

Though population and political power (number of MPs & MPLs) puts Costal Border Orissa (CBO) in advantage in the state budget, for infrastructure development geographical area needs to be consideration, such as for roads, railways, schools, hospitals etc.

Population of CBO is higher in 2.4 times than that of KBK and 1.96 times than that of WODC, whereas geographical area of CBO is smaller in 1.24 times than that of KBK and 1.36 times that of WODC

Additionally, literacy rate of WODC is 4.8 % lower than Orissa and 11.5 % lower than CBO. In case of KBK literacy is 19.7 % lower than Orissa and 26.4 % lower than CBO.
Interesting figures are obtained while comparing Western Border Orissa (WBO) including WODC, KBK and Kandhamal region with that of Orissa or CBO.

The literacy rate of WBO is 11 % and 18 % lower than Orissa and CBO respectively, similarly geographical area of WBO is 2.24 times larger than CBO.

This means WBO needs 2.24 time higher investment in roads and 18 % higher investment in education, which may be around 10 -20 % additional funds in the state budget.

With current rate of 0.57 % (0.34 % KBK + 0.23 % WODC) it would take several decades, if not century, to minimize regional difference between CBO and WBO.

To see a balance and equalize development in foreseen future at least 5 – 10 % of state budget additionally should be pushed in WBO towards infrastructure development in roads, bridges, health and education in the region.

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