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Revenue vis Capital expenditure<br />

The expenditure <strong>on</strong> irrigati<strong>on</strong>. like other sectors. comprIses <str<strong>on</strong>g>of</str<strong>on</strong>g> plan <strong>and</strong> n<strong>on</strong>-plan<br />

expenditure. Plan expenditure c<strong>on</strong>stitutes almost 93 per cent <str<strong>on</strong>g>of</str<strong>on</strong>g> the expenditure <strong>and</strong><br />

the rest being n<strong>on</strong>-plan expenditure. The Plan expenditure is further grouped into<br />

two, viz., capital <strong>and</strong> revenue expenditure J2 . While revenue expenditure comprises<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> salaries. wages. travelling expenses. <str<strong>on</strong>g>of</str<strong>on</strong>g>fice expenses. rent, rates <strong>and</strong> taxes,<br />

publicati<strong>on</strong> <strong>and</strong> others. capital expenditure comprises mainly <str<strong>on</strong>g>of</str<strong>on</strong>g> works (99.8 per<br />

cent) <strong>and</strong> others like tools <strong>and</strong> plants. making up <strong>for</strong> the remaining 0.2 per cent.<br />

According to the norms fixed by ewe in September 1990. the revenue<br />

expenditure <strong>on</strong> irrigati<strong>on</strong> projects was not to exceed 15 per cent <str<strong>on</strong>g>of</str<strong>on</strong>g> the works<br />

expenditure including expenditure <strong>on</strong> investigati<strong>on</strong> J ]<br />

Given this stipulati<strong>on</strong>, it will<br />

be interesting to examine the trends In revenue <strong>and</strong> capital expenditure in the<br />

<strong>on</strong>going irrigati<strong>on</strong> projects in Kerala. It may be presumed that in the initial years <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

an irrigati<strong>on</strong> project. the revenue expenditure is likely to be much higher than the<br />

ewe stipulati<strong>on</strong>. This argument is examined by using the project-wise data in the<br />

case <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>on</strong>going irrigati<strong>on</strong> systems (Table 5.18). The data shows that the revenue<br />

expenditure was more than the stipulated norm <str<strong>on</strong>g>of</str<strong>on</strong>g> 15 per cent in the case <str<strong>on</strong>g>of</str<strong>on</strong>g> eight<br />

32 The nomenclature used in the irrigati<strong>on</strong> depanment documents is establishment <strong>and</strong> n<strong>on</strong>establishment<br />

expenditure. The revenue expenditure is other wise classified as<br />

establishment expenditure <strong>and</strong> capital expenditure signifies n<strong>on</strong>-establishment expenditure.<br />

rhe share <str<strong>on</strong>g>of</str<strong>on</strong>g> establishment expenditure <strong>for</strong> a project including leave <strong>and</strong> pensi<strong>on</strong>ary<br />

charges. in the case <str<strong>on</strong>g>of</str<strong>on</strong>g> works let out <strong>on</strong> c<strong>on</strong>tract. is <str<strong>on</strong>g>of</str<strong>on</strong>g> the order <str<strong>on</strong>g>of</str<strong>on</strong>g> 10 per cent <strong>on</strong> an average<br />

- X to 10 per cent <strong>for</strong> scattered works like canals. For works to be executed departmentally.<br />

the provisi<strong>on</strong>s could be higher <strong>and</strong> could go uplO 15 per cenl (CWC, 1983:34).<br />

186

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