ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Agricultural Finance-Growing Regional Disparities

leakage does take place, with estimates of the middlemen's illegal 'cut' as high as 10 to 15 per cent. Ten per cent of Rs 30 lakhs (roughly the allocation for feeding one lakh refugees for one month) is a cool Rs 3 lakhs. Refugee relief need not be, it seems, a labour of love! The other aspect of the question is the direct draft the upkeep of the refugees constitutes on the Central Budget for the current year. In the calculations that follow we will broadly take the official norms of expenditure per refugee, inflated as they are. Assuming that on an average 8 million refugees have to be maintained in the refugee camps during the financial year 1971-72, upkeep expenditure on them will amount to about Rs 350 crores to which may be added another Rs 100 crores of expenditure of a mostly capital or non-recurring kind, giving a total of Rs 450 crores. Of this, if Rs 150 crores are taken to be the food- grains component, that can be met by drawing down foodgrain stocks with the Government without constituting a budgetary outgo. Foregin aid in the pipeline or already committed is reported to be roughly Rs 100-125 crores, leaving Rs 200 crores or less as the net draft on budgetary resources. Of this Rs 60 crores had been provided for in the Budget. Thus on the whole the Bangla Desh refugees can account for a net worsening of the Government's budgetary position to the extent of only Rs 140-150 crores. If the budgetary gap of Rs 220 crores is indeed threatening to widen to Rs 600 crores, other explanations have to be sought for the development.

To read the full text Login

Get instant access

New 3 Month Subscription
to Digital Archives at

₹826for India

$50for overseas users

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top