How Government’s Own Priorities Suffer Due to Low Utilization of Funds

hospital health doctor

While there is a provision for revising original allocations (called BE or budget estimate) in budget later in the year (when Revised Estimate or RE is prepared), normally a downward reduction is not expected in those cases where the BE was quite low to start with or where the scheme or the department/ministry is a high priority one. However the experience of the ongoing financial year 2023-24 is contrary to this expectation and in fact there have been quite a few arbitrary, difficult to justify cuts.

As the health sector is known to be much under-funded, a big cut here was not expected. However in reality we find that the BE for the Department of Health and Family Welfare of INR 86175 crore was reduced to RE of INR 77624 crore, a cut of over INR 8000 crore.

In the case of the Ministry of Housing and Urban Affairs the BE of INR 76431 crore was cut to RE of INR 69270 crore, a cut of over INR 7000 crore.

Ministry of New and Renewable Energy is clearly a high priority Ministry. However even its BE of INR 10222 crore was cut to RE of INR 7848 crore.


The Ministry of Planning has also suffered badly despite its obvious importance. Its already very low BE of INR 824 crore was cut to RE of INR 514 crore.

In the case of the Department of Science and Technology, the BE of INR 7931 crore was cut to RE of just INR 4891 crore.

In the case of the Ministry of Statistics and Program Implementation, the BE of INR 5443 crore was cut to RE of INR 3961 crore.

In addition there were big cuts in the Department of Justice and Social Empowerment and Ministry of Tribal Affairs. Coming now to some specific schemes, the Pradhan Mantri Awas Yojana (housing for the poor) is a high priority and widely publicized scheme of the government. However even its BE of INR 79590 crore was cut very heavily to RE of INR 54103 crore, a cut of over INR 25000 crore.

Another priority development scheme is of rural roads (Pradhan Mantri Gram Sadak Yojana). Its BE of INR 19000 crore was cut to RE of INR 17000 crore.

The BE of INR 16000 crore for Urban Rejuvenation Mission was cut to RE of INR 13200 crore.

In the case of Swachh Bharat Mission Urban (urban sanitation program) the BE of INR 5000 crore was reduced to RE of INR 2550 crore.

In the case of Mission Shakti (for protection and empowerment of women) BE of INR 3143 crore was reduced to RE of INR 2325 crore.

In the case of SANKALP (skill acquisition) BE of INR 488 crore was reduced to exactly half RE—INR 244 crore.

Despite all the publicity given to the National Mission for Natural Farming, its BE of INR 459 crore was cut very heavily to get RE of just INR 100 crore.

Despite its obvious importance, the BE of the Border Area Development Program was cut from INR 600 crore to RE of just INR 251 crore.

In the case of such a high program like the National Cyclone Risk Mitigation Project its BE of INR 110 crore was cut very heavily to just INR 2 crore.

In addition there were big cuts in several schemes for weaker sections including Eklavya residential schools and SEED, and even some core of the core programs and schemes.

Such arbitrary cuts in priority schemes and programs are a matter of great concern and steps should be taken immediately and with a sense of urgency to avoid such arbitrary cuts in future.

Bharat Dogra is Honorary Convener, Campaign to Save Earth Now. His recent books include Planet in Peril, Protecting Earth for Children and A Day in 2071.

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