CBGA - Centre for Budget and Governance Accountability

Budget Track Volume 5, Track 3, July 2008

Foreword
The recent months have witnessed inflation (in terms of wholesale price indices) reaching an all time high of around 12 percent having very adverse implications for the poor and marginalized people. Therefore, the regular feature, Budget and Policy Tracking of this issue of Budget Track captures this problem of very high inflation in the recent months. In addition, it also attempts to highlight some crucial legislations such as Unorganised Sector Workers’ Bill, Drugs and Cosmetics (Amendments) Act and the Forest Rights Act, highlighting the key issues therein.

Even after one and a half decades have passed since the enactment of the 73rd and 74th Constitutional Amendments, still, the devolution of funds, functions and functionaries to Panchayati Raj Institutions in many states is grossly inadequate. This has led to government interventions for rural development remaining ineffective, which is brought up in the article ‘Low Fiscal Decentralization: A Roadblock to Rural Development’. The current issue also brings attention to some of the critical aspects of the Centrally Sponsored Schemes which have proliferated in the last two decades. However, due to several limitations in the design, norms and guidelines of these schemes and ultimately in their implementation, the effectiveness of such schemes has attracted criticisms by the Planning Commission as well as the C& AG besides many development policy analysts. The article titled ‘On Some Aspects of Centre State Fiscal Relations: A Review of Centrally Sponsored Schemes’ highlights some of these.

The Guest Column by John Samuel questions the efficacy of the G8 process in proposing solutions to the global food, fuel and climate crisis. Lastly, the present issue provides a brief note on what the experts from diverse fields – from the Government, Opposition, Media and Academia have to say on the Union Budget 2008-09 for what it offers to the common people.

Hope this issue of Budget Track serves its intended purpose of raising significant policy issues in the public domain.