Financial constraints cast shadow over creation of new districts

Unable to meet the high recurring costs and capital expenditures of Rs 1,400 crore, the Uttarakhand Cabinet has given a symbolic approval to the creation of four new districts in view of financial constraints as well as growing demand for other districts.

A meeting of the state Cabinet presided over by chief minister B C Khanduri here yesterday, however, did not give any approval to the demarcation of the new districts as well as their headquarters, chief secretary Subash Kumar said. This also meant that there was no decision regarding the required infrastructure for the four districts in view of financial constraints.

In the last Cabinet meeting on November 5, the government set up a committee under the chairmanship of the chief secretary to study the matter related to the formation of four new districts. “Now all the decisions related to the creation of four districts will be taken by the new government,” a top government official told Business Standard.

Former chief minister Ramesh Pokhriyal Nishank, during his Independence Day speech, had announced the formation of four new districts — Ranikhet, Didihaat, Kotdwar and Yamunotri, apparently to boost the fortunes of the ruling BJP in the upcoming Assembly elections.

After the implementation of the sixth pay commission, which put an additional burden of Rs 2,500 crore on the state exchequer, the creation of four new districts is being seen as a major financial burden on the state which is already reeling under the impact of balloon plan size.

On creating one district, the revenue department has estimated that the recurring cost will be Rs 300 crore with a capital expenditure of Rs 50 crore.

On the other hand, the government is also facing pressure from different regions for creation of nearly 10-15 more districts.

“Since the matter is politically very sensitive, we cannot take any new decision at this stage,” said the official.

Meanwhile, the government has decided to regularise nearly 24,000 contractual workers provided they must have completed ten years of service and there should be vacancies in the departments.

As of now, there are only 3,500 vacancies which the government hoped would be filled through this decision since it has already scrapped the fourth class vacancies. Even for filling 3,500 posts, the government will be spending around Rs 30 crore every year, officials said. Since no budgetary provision was done, the vacancies will now be filled by the new government only, they added.