POVERTY REDUCTION STRATEGY TN

2012). The state government spends roughly about 2 percent of its total revenue
expenditure on irrigation. The revenue-expenditure ratio was less than one percent for
major schemes and about 2 percent for medium works. Thus, almost the entire amount
spent on these schemes can be considered as subsidy to this sector.
The interest charge was the main component (55 percent) of the total revenue
expenditure on major and medium schemes followed by salary (including wages,
dearness allowance and pension) with 33 percent share. The maintenance work (plus the
minor and major works) alone accounted for about 10 percent, i.e. one-tenth of
budgetary allocation (Table 5.11).
Table 5.11: Expenditures According to Detailed Heads (2000-01)
Detailed Heads of
Major and Medium
Irrigation
Minor
Irrigation
Account
Amount
(Rs. lakh)
Percent
share
Amount
(Rs. lakh)
Percent
Share
Maintenance 3311.73 9.5 2003.09 97.6
Minor Works 64.45 0.2 0 0.0
Major Works 31.71 0.1 48.93 2.4
Interest 19068.44 54.8 0 0.0
Salaries 7506.53 21.6 0.86 0.0
Wages 20.67 0.1 0 0.0
Professional/Special fees 878.20 2.5 0 0.0
Pension 121.46 0.3 0 0.0
Dearness Allowances 2883.39 8.3 0.33 0.0
Festival Advances 82.49 0.2 0 0.0
Training 63.59 0.2 0 0.0
Scholarships and Stipends 10.92 0.0 0 0.0
Travel Expenses 486.28 1.4 8 0.0
Motor Vehicles 64.63 0.2 0 0.0
Petroleum, Oil and Lubricants 145.83 0.4 0 0.0
Tools and Plants 0.44 0.0 0 0.0
Rent, Rates and Taxes 34.34 0.1 0 0.0
Total 34769.10 100.0 2053.17 100.0
Source: Computed from Detailed Demand for Grant (Demand No. 38) PWD, Budget Publication,
Government of Tamil Nadu.
Thus, the maintenance works were undertaken out of the residual funds left after
meeting other commitments. Further, in almost all major and medium systems, the
maintenance expenditure is below the norm recommended by the Ministry of Water
Resources. The low cost recovery ratio (about 16 percent of total maintenance cost) is
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