Rajasthan left high and dry on drinking water as Centre slashes assistance

JAIPUR: One of Rajasthan's most crucial welfare programmes is the rural drinking water scheme. With the Centre now slashing to half its assistance to this, one of India's driest states is struggling to meet the shortfall.

"Rajasthan was one of the project's largest beneficiaries," said a finance official. "But the Centre has reduced allocation from Rs 9,190 crore to Rs 2,500 crore." Schemes de-linked from central aid are also staring at an uncertain future.

"Projects for creating tourism infrastructure and strengthening panchayat raj institutions are in various stages of development; now they won't be under centrally sponsored schemes (CSS)," said another source. Siddharth Mahajan, special secretary in finance said they are awaiting final guidelines for schemes under sharing pattern.

A back-of-the-envelope calculation points at shortfall of about Rs 200 crore. "Rajasthan's revenue share has gone up from Rs 19,000 crore to Rs 28,000 crore, but if the state has to fund the CSS, it would be a huge burden," the official said.

Earlier, the Centre would allocate 10 per cent-15 per cent tax revenues on states' share of 32 per cent every year factoring in inflation and higher tax collections. "In the new schemes of things, the state is unlikely to get that benefit," the finance official said.