Unorganised sector may not get its due

NEW DELHI: The government may not be able to provide adequate funds for the welfare of workers engaged in the unorganised sector in the Budget 2007-08. Instead of Rs 6,300 crore, expected to be spent in first year of the Eleventh Plan, only a token sum will be allocated under the head of “social security for workers in the informal sector.” In the Eleventh Five Year Plan, the government proposed to spend over Rs 62,900 crore in the flagship programme.

According to official sources, the move to prune the central scheme follows reluctance of the finance ministry to commit higher gross budgetary support (GBS) for next fiscal even for meeting UPA government’s NCMP commitments.

Though it is likely that welfare scheme for informal sector may not be announced in the budget, a token provision of Rs 5-10 crore may be provided so that the scheme is kept alive for funding in the later part of the Eleventh Plan. It may be noted that the Planning Commission has already sounded the Prime Minister’s Office and the finance ministry that unless there is a substantive increase in budgetary support, several proposed and existing flagship schemes of the Centre may suffer.

The Planning Commission has asked the finance ministry to increase gross budgetary support for next year by 22% to about 2,12,000 crore, up from this year’s (2006-07) GBS of 1,72,728 crore. This has, how-ever, been refused by the finance ministry at a recent meeting on GBS, organised by the PMO, sources said adding that further talks would be held before finalising the figure.

The central sector scheme for the welfare of workers in the informal sector has been proposed following recommendations of the Arjun Sen Gupta Commission that set up by the UPA government to suggest social security required for unorganised workers.