THIRUVANANTHAPURAM: External Aided Programmes (EAPs) are beginning to affect Kerala's Plan implementation process, threatening the very relevance of the State Government's line departments.

This is the conclusion that can be drawn from the tentative fund allocations the Finance Department has now made for various Plan programmes during the year 2007-08. The Finance Department's proposals are under the consideration of the Cabinet.

The fund demands of the EAPs have been steadily growing in recent years. During the current year, the EAPs are estimated to consume Rs.1,474.53 crore, or 23.74 per cent of the total annual Plan size of Rs.6,210 crore.

The Finance Department expects that the EAPs will require Rs.1,862 crore in 2007-08. This comes to 29.35 per cent of the total Plan outlay of Rs.6,343.9 crore, considered possible for the year by the Finance Department.

Tentative Plan allocations made for `other Central schemes' (Rs.610 crore), NABARD-aided programmes (Rs.450 crore), Twelfth Finance Commission programmes (Rs.136.25 crore), power sector programmes (Rs.800 crore), State's share to Centrally Sponsored Schemes (Rs.220 crore), local self-governments (Rs.1,790 crore), Special Component Programme (Rs.118.24 crore) and Tribal Sub Plan (Rs.42.88 crore) will altogether consume Rs.6,029.51 crore.

This comes to a staggering 95.04 per cent of the total plan size proposed for 2007-08, leaving a paltry Rs.313.98 crore, or 4.96 per cent of the Plan outlay of Rs.6,343.9 crore for the year, for the programmes of the line departments.

Drop in funds

In other words, hardly any fund will be available for the general sector schemes of various line departments such as Agriculture, Education, Public Works, Water Resources, Forests and Wildlife, Industry and Information Technology. In short, the Government will not be able to take up even some of its flagship programmes such as the Farmers' Debt Relief Scheme, let alone continue partially completed schemes such as construction of new bridges next year.

During the current financial year, a sum of Rs.1,110.05 crore, or 17.88 per cent of the total Plan outlay of Rs.6,210 crore, has been set apart for the general sector schemes under the line departments. The drop in fund availability for the line departments next year will come to Rs.796.07 crore compared to the current year (Rs.1,110.05 crore minus Rs.313.98 crore).

Within the Government, there is an argument that the State should go for more EAPs since it could not raise sufficient resources on its own. The catch in this, however, is that the Union Finance Ministry specifies a ceiling on borrowings for each State, based on the financial health of the particular State. Borrowings made for EAPs will eat up a sizeable portion of the total borrowings permitted, thus putting the squeeze on fund availability for the other programmes of the Government.

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