Title : Further discussion on the resolution moved by Shri Sarbananda Sonowal on the 16th December, 2005 regarding the regional imbalances created by the lack of development of different parts of the country and urges upon the Government to take urgent steps for the balanced and equitable growth of different parts of the country particularly the remote areas, in order to strengthen the federal structure of the country.
MR. CHAIRMAN : We will now take up item no. 29, further discussion on the Resolution.
Prof. Ramadass may continue his speech.
PROF. M. RAMADASS (PONDICHERRY): Sir, I rise to support the Private Member’s Resolution moved by Shri Sarbananda Sonowal on the growing incidence of regional imbalances in the country. I fully agree with the Resolution which has got three components. The first component is – there is increasing incidence of regional disparities in economic development in the country and these regional disparities are not desirable for the growth of a harmonious, federal development of the country and, therefore, the Government had to initiate important and significant measures to mitigate the regional disparities.
Sir, as you know, the regional disparities in the country existed even at the time of Independence and when we started the planning process in 1951. The planners in the country thought that a harmonious growth of the country required a balanced development of all the regions. Therefore, the First Five-year Plan itself aimed at reduction of regional disparities and regional imbalances in the country. In every Five-Year Plan, from the Second Five-Year Plan to the Tenth Five-Year Plan, including the three Annual Plans, we have laid greater emphasis on the package of measures which should be given to various States which remained backward and we tried to bring them on an even keel of development.
Unfortunately, after 58 years of planning in this country, even today we are discussing about this problem which is now assuming a menacing proportion in the country, so much so that there is a greater demand for the creation of smaller States because the existing bigger size of the States is assumed to be a hindrance for harmonious development of the States. The States are also clamouring for more and more of autonomy of resources and autonomy of decision-making so that they can have regional planning and regional development. Therefore, the very question of federal structure of the country is at stake and there are many demands which are asking for more powers for development. Therefore, this question has to be discussed and deliberated at length.
Today the situation is that we have 28 States and seven Union Territories in the country and within these 35 regional identities we find wide-ranging disparities. We have inter-State disparities. Among the States you have large amount of disparities in the development level. Within a State if you take, you have intra-State disparities, what we call as the inter-district disparities and there are total disparities as well as sectoral disparities in the country. Therefore, what is reality today has to be accepted and we have a large number of disparities on the basis of which we classify the States in the country into two groups – namely forward States and backward States.
On the one hand, we have States like Punjab, Maharashtra, Haryana, Gujarat, Karnataka, Kerala, Tamil Nadu and Andhra Pradesh which have made considerably higher progress, whereas there are other States on the other hand which we popularly describe as BIMARU States which include Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh, Assam and Orissa. Between these two categories of States, we find large number of inequalities both in terms of economic indicators, in terms of financial indicators and in terms of social indicators.
Just to emphasise the point that there are inequalities, I would only take one or two indicators to show how there is a greater amount of inequalities among them. If you take the economic factor, we normally take the celebrated measure of the per capita income among the various States. When you look at the per capita income, we notice that for the nation as a whole, the per capita income is Rs. 16,707 per annum, whereas the per capita income of Bihar is just only Rs. 5,208. The per capita income of Punjab is Rs. 25,048. So, in terms of per capita income, we find an inter-State difference[krr37] .
When you take the degree of the people below poverty line, the poverty line and the per capita income go in the opposite direction – higher the per capita income, lesser the poverty and lower the per capita income, the higher is the incidence of poverty. When we look at the poverty ratio, we find that at the all-India level the ratio of poverty is 26.1 whereas in Bihar it is 42.6, in Madhya Pradesh it is 37.43, in Rajasthan it is 15.28 and in Goa, the lowest poverty ratio is at 4.4. Therefore, in terms of the living conditions of the people also, there is vast amount of disparities between the States.
When you take the growth rates of the per capita income, we notice that the advanced States have grown at the rate of about 6 to 7 per cent over the last five years. The backward States have grown at the rate of only 2.5 to 3 per cent growth rate. Because of this increasing inequalities in the growth rate, the development in the backward States is receding to the background. When you take the degree of urbanisation, for the nation as a whole it is 27.8. It is just only 10.5 for Bihar and it is the highest at 43.9 for Tamil Nadu. If you take the investment potential, the investment categories of various States, we find that Gujarat is able to, on an average, give an investment of Rs. 11,818 crore whereas in Madhya Pradesh it is just only Rs. 225 crore per year. Therefore, the investment capability, the investment absorption are also different in States. Therefore, we find that these indicators show it.
Not only that, but in terms of infrastructure also, if you see the situation, there also we find large amount of disparities. For example, the per capita power consumption is 338 at the all-India level; it is just only 108 for Assam and 145 for Bihar. When you take the registered vehicles for 100 persons, we find that it is 44 per hundred; but it is only 16.4 for Bihar and 19.9 for Assam. The road length per 100 kilometres also is 90.17 at the all-India level; it is just only 72.7 for Uttar Pradesh. When you take the financial assistance given by the various institutions, also we find that of the total proposals of 100, the forward States have claimed 69.2 per cent, while the backward States, altogether taken together, got only 24.8. Among the States, we find that Bihar has attracted only 1.2 per cent of the total investment proposals which have alone gone to Bihar, whereas it has gone to the extent of 18.7 in Gujarat.
Therefore, looked at from all the angles, if you look at the transport facilities, irrigation facilities, banking facilities, communication facilities, education facilities, health facilities etc., in terms of all indicators we find that among these six States there are inter-State disparities. When you take these States within them, you find mounting amount of inequalities among the various districts and within the districts you have the taluka-wise disparities. Therefore, these disparities cause lot of heart-burning among the various States. They say that ‘why should we remain backward; why should we remain under-developed?’ There are large number of problems confirming this and, therefore, it is not in the interest of a harmonious, federal growth of the country that we allow this situation to continue. Therefore, the Central Government, as well as the State Governments, must think of imaginative ways and measures of removing these regional imbalances or disparities so that every State is able to feel happy that they are also growing along with others.
In this context, I would like to indicate, on a peripheral basis, some of the measures that may be initiated by the Government of India to remove the regional imbalances. I would feel that the problems at the regional level must be studied at length. Therefore, the Planning Commission must launch region-wise studies of economic development, social development and cultural development of various States and based on these studies, understand the local problems and understand the resource-specific situation and also try to formulate region-based planning so that you will be able to promote or accelerate the tempo of development in these States.
सभापति महोदय : इस रैज्योलूशन पर चर्चा का समय समाप्त हो चुका है। अभी सात माननीय सदस्य और बोलना चाहते हैं। यदि सदन की सहमति हो तो इसका समय थोड़ा और बढ़ा दिया जाए।
अनेक माननीय सदस्य : जी हां।
सभापति महोदय : ठीक है। The time is extended by one hour.
Prof. Ramadass, you may kindly continue and conclude also because you have already taken ten minutes[krr38] .
PROF. M. RAMADASS : Sir, I will take only five minutes. This is a very important subject. … (Interruptions) I am supporting this Resolution. In fact, every one of us will have to support it. The House should be unanimous in supporting the Resolution in the interest of the federal structure of this country. To take all the States together, this kind of a Resolution is necessary, and the Government should act with a resolve so that it is able to reduce these spatial inequalities, as they call it.
The first measure that I suggest is that the Planning Commission should launch region-specific studies and it should be able to associate the research institutes, which are working in various States, to understand the phenomenon of backwardness in that area and try to sort out the issues there.
There has been a lot of talk about decentralisation of power and there should also be decentralisation of planning at the local level. This is important because you will have to formulate plans, monitor plans and implement plans. For that purpose, we should have decentralisation of planning also. One of the reasons why these disparities have come in is that our national planning, which started in 1951, did not take into account the local requirements. The planning system in this country adopted what is called a homogeneous approach. It thought that what is applicable to Tamil Nadu will be applicable to Punjab also and what is applicable to Bihar would be applicable to Assam also. It is because of this homogenous approach that we were not able to understand the real issues and Central planning has totally failed to address the local issues. Therefore, now, we will have to think more in terms of decentralisation.
Now, we are in an era of liberalisation and this liberalisation is not meant only for the private sector. The Government should also practise this liberalisation in the planning process by giving decentralisation of power as well as resources to the States. Some of the States are not able to promote economic growth because they have to undertake a large number of activities, but their resources are inelastic. Their revenue resources and non-revenue resources are too inelastic, but they have to do a large number of functions. So, keeping in view the inequality between the functions and the powers, the Central Government should decentralise both, the functions as well as resources, to the States.
The Government should increasingly utilise the local bodies, the panchayats and Nagar Palikas in the formulation as well as in the implementation of the plan. Sir, as you know, the Constitution provides 29 functions to local bodies, but to perform these 29 functions, corresponding resources are not given. These 29 functions are not properly listed also. We have a Union List of functions; we have a State List of functions; and we have a Concurrent List. But unfortunately, we do not have a local bodies’ list which would enlist all these functions. If these functions are brought under the constitutional purview and if it is included as the local bodies’ list, then the local bodies will have the locus standi to implement programmes at the local level. Therefore, I would suggest that the Government of India should bring about a constitutional amendment to bring 29 functions in the local list and inform the State Governments that it is incumbent on them to distribute the resources, to allocate the resources to them to enable them to discharge these 29 functions. Therefore, the 73rd and 74th amendments of the Constitution will have to have a re-look, and we will have to revisit them to find that out.
We should also involve people in the development of rural areas. I wish to bring to the notice of the Government that there is an experiment called Kunrakudi Experiment in Tamil Nadu. A village which was steeped in poverty, steeped in unemployment, steeped in all kinds of socio-economic evils was translated into a village of prosperity in no more time than one year. It was because of the dedicated effort of Kunrakudi Adigalar there – who mobilised the people, who used the local talent, who used the local resources, who used the facilities available in the neighbouring banks and universities – that he was able to convert it into a place of prosperity. This experiment is by now known as Kunrakudi Experiment. It should be replicated in other parts of the country also so that the local problems can be easily solved and a parity can be established.
The Central Government today provides funds for State Plans. It provides funds under the Finance Commission’s recommendations. It provides fund as block grants, ad hoc grants and also grants for Centrally-sponsored schemes[S39] . I would request that backwardness of a State must be taken as the greatest indicator at the time of allocation of resources. More weightage must be given to the backwardness of an area, and resources allocated accordingly.
Today, the Government has a Backward Districts Development Fund, and it must be prudently utilised so that the Government is able to bring about a large amount of development. Some of the States that remain backward do not have the project preparation facility, but the Planning Commission has now instituted this facility. Therefore, these backward States must be requested to prepare their projects by using the facility available with the Planning Commission.
The Central Government should prepare Special Area Development programmes, and implement them. The Government should also be able to give a large number of concessions to the backward States in terms of Income Tax concessions, Central Investment Subsidy Scheme, Transport Subsidy Scheme, etc. The major financial institutions should also be able to give concessional finance for these things.
MR. CHAIRMAN: Prof. Ramadass, you have already taken 15 minutes on this issue. Please conclude your speech.
PROF. M. RAMADASS : Sir, I am concluding in a couple of minutes. Therefore, in conclusion, I must say that the Central Government must realise the gravity of the situation. It should realise that growing regional imbalances increase frustration among the people in different States. Fissiparous tendencies are developing in the country because of growing resentment among the people for various reasons whether it is the failure on the part of the State Government or the Central Government.
The people have a frustration that they are not able to develop as they have to suffer the miseries of poverty, unemployment, etc. Therefore, it is the duty of the UPA Government — headed by an economist like Dr. Manmohan Singh — to come out with imaginative measures to address this issue of regional imbalance. Once regional balance comes, then individual balances would automatically come, and disparities in the economy would disappear. Our goal of a socialist pattern of society would also be easily achieved, and heartiest happiness of the greatest numbers could be ensured.
SHRI BRAHMANANDA PANDA (JAGATSINGHPUR): Hon’ble Chairman, Sir, I rise to support the resolution moved by Mr. Sarbanand Sonowal regarding regional imbalance. Today, the biggest challenge before the nation is inequality relating to development. The way the Central Government should act to bring in parity is not seen. There is a step-motherly attitude towards some states as far as providing opportunity to utilize natural resources is concerned. This is why all the States have not progressed in the same manner. Sir, I belong to a State that is full of abundant forests, beautiful temples and rich mineral resources. I am very proud of the fact that Orissa has contributed substantially to the process of industrialisation in India. Whether it is iron ore, coal or any other mineral, Orissa has been generous in contributing to the nation. However, unfortunately, the Central Government has not done anything substantial to strengthen the position of Orissa or to make it a front-ranking State.
Ours is a federal State where resources should be equitably distributed between constituent States. If that is not done, it will naturally lead to regional imbalance and disparity between States. India can be compared to a beautiful garden full of flowers of many hues. If some part of this garden is not well-maintained and trees are allowed to die, it will spoil the beauty of the whole garden. Similarly, if there is no uniformity in development, India as a nation will suffer.
Sir, Orissa is a land of natural resources, famous for her art, craft, sculpture and historic monuments. She has a rich legacy of knowledge, tradition, culture and human resources. She spreads the message of love, harmony, goodwill and fraternity. Orissa is the land of Lord Jagannatha, who is famous for his universal appeal – who even had accepted the offerings of a devotee named “Dasia’, an
*English translation of the speech originally delivered in Oriya.
untouchable and who struck chord with a Muslim poet ‘Salabega’. Salabega’s religious songs are very popular in Orissa. Thus, Orissa is the land of universal brotherhood, humanism and peace. In this context, it is very unfortunate to see that such a State is reeling under dire poverty remaining under-developed. After 58 years of Independence, Orissa’s position remains abysmally low because of Centre’s negligence.
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Hon’ble Chairman, Sir, a significant number of Scheduled Tribes and Scheduled Castes reside in Orissa. More than 47% of our population are from these categories. They live in abject poverty and badly require Central financial assistance. We have the land and we are bestowed with mineral resources. But, the credit goes to the Central Government. The Central Government takes away our coal, iron ore and manganese. We get pittance in the name of royalty. We don’t need such royalties. We would much rather prefer the overall development of our State. Orissa contributes substantially to the national economy by providing precious minerals. In return, we want a little recognition – a helping hand from the Centre. But the Central Government continues to neglect us deliberately. It is really very unfortunate.
Sir, I would recount here about an observation made by Vishwakavi Sri Rabindra Nath Tagore. While visiting the famous Sun temple at Konark, he was spell-bound with the sculpture and described Oriyas as a race that writes poetry on stone. The greatness of Orissa is indeed unique.
Our leader and former Chief Minister of Orissa late Shri Biju Patnaik truly symbolised the Oriya pride. In a daring feat he had rescued the premier of Indonesia and created history. His able son and the present Chief Minister of Orissa is equally committed to the cause of Orissa. He has ushered in an era of industrial revolution. Under his leadership, the State can progress a lot but only because of Central negligence the pace of progress has slowed down.
Hon’ble Speaker, Sir, I want to draw your attention that a long-pending legitimate claim of Orissa is to have a Bhubaneswar Centre of AIIMS. No work has started as of now. Similar is the case of National Science Centre which has been shifted out of Orissa. Hon’ble Prime Minister has assured us to take action and we are awaiting justice. Orissa should have been rightfully given the status as “Special Category State”. But that has not happened so far because of Centre’s apathy. If the UPA Government is truly committed to the cause of a prosperous India, it should give due weightage to the aspirations of Oriya people. Whether it is AIIMS or NSC, the demands of Orissa should be fulfilled on an urgent basis.
Orissa is home to the famous Chilka lake. Pandit Gopabandhu Das had written a poem by just looking at its beauty from a moving train – urging the train to stop and appreciate. Sir, Orissa’s beauty and splendour is unparalleled and central assistance should be provided urgently so that it can reach its rightful Placed. Sir, I support the resolution and sincerely thank you for allowing me to speak.