TAG: GS 2: POLITY
THE CONTEXT: The central government has finalized guidelines for providing special financial assistance to states under the Scheme for Special Assistance to States for Capital Investment 2024-25.
EXPLANATION:
- The Centre has earmarked significant funds to incentivize key reforms and infrastructure development in various sectors, including land reforms, rural and urban infrastructure, and the welfare of working women.
Major Financial Outlays and Focus Areas
- In her Budget Speech on July 23, 2024, Finance Minister announced substantial financial allocations aimed at encouraging states to undertake critical land-related reforms.
- The Centre has set aside Rs 10,000 crore specifically for land reforms in both rural and urban areas.
- Additionally, Rs 5,000 crore has been allocated for creating a comprehensive Farmers’ Registry, aimed at compiling detailed information on six crore farmers and their land holdings.
Incentivizing Land Reforms
- To drive land-related reforms, the Centre has outlined several key activities that states must undertake.
- These include:
- Assignment of Unique Land Parcel Identification Numbers (ULPIN): Also known as Bhu-Aadhaar, this initiative aims to assign a unique identification number to every land parcel, ensuring precise and reliable land records.
- Digitization of Cadastral Maps: States are required to digitize cadastral maps to create accurate and accessible records of land ownership and boundaries.
- Survey and Subdivision of Maps: Surveys of map subdivisions according to current ownership will be conducted to update and verify land records.
- Establishment of Land Registries: States will establish comprehensive land registries to maintain updated and accurate records of land ownership.
- In urban areas, the Centre is offering fiscal incentives to encourage the digitization of land records using Geographic Information System (GIS) mapping.
- This includes the development of an IT-based system for property record administration, updating, and tax administration.
- These reforms are expected to enhance transparency, improve land governance, and reduce land-related disputes.
Creating a Farmers’ Registry
- The allocation of Rs 5,000 crore for the Farmers’ Registry underscores the government’s commitment to enhancing agricultural productivity and supporting the rural economy.
- The registry will compile detailed data on farmers, including their landholdings, to facilitate better policy formulation and targeted delivery of government schemes.
Special Focus on Women’s Welfare: Working Women’s Hostels
- In addition to land reforms, the Centre has allocated Rs 5,000 crore for the construction of working women’s hostels across the country.
- This initiative aims to facilitate greater participation of women in the workforce by providing safe and affordable accommodation.
- Guidelines for Hostels
- Land Acquisition: The state government will provide land for the hostels free of cost, or bear the cost of acquiring the land.
- Public-Private Partnership (PPP) Model: The operation and maintenance of the hostels will be managed by a private party under the PPP model, while ownership will remain with the state government.
- This initiative is expected to create a supportive environment for working women, particularly in urban areas, enabling them to pursue careers without concerns about housing and childcare.
State-wise Allocation for Hostels
- The funds allocated for the construction of working women’s hostels have been distributed among various states.
- Uttar Pradesh is set to receive the highest amount of Rs 382 crore, followed by Madhya Pradesh with Rs 284 crore, and Assam with Rs 226 crore.
- These allocations reflect the varying needs of different states in providing support infrastructure for women in the workforce.
Additional Allocations and Incentives
- The Centre has also announced a range of other financial allocations aimed at stimulating economic growth, improving infrastructure, and encouraging sustainable practices:
- Rs 2,000 crore for Developing Iconic Tourist Centers: These funds will be used to develop tourist destinations to global standards, boosting tourism and generating economic opportunities.
- Rs 3,000 crore for Vehicle Scrappage Incentives: This allocation aims to incentivize the scrapping of old vehicles, promoting cleaner and more efficient transportation.
- Rs 15,000 crore for Industrial Growth: This significant allocation is intended to stimulate industrial growth and job creation across the country.
- Rs 1,000 crore for NCR Development: This fund will be divided equally among Haryana, Uttar Pradesh, and Rajasthan to develop the National Capital Region (NCR).
- Rs 15,000 crore for States’ Shares of Centrally Sponsored Schemes: This includes funding for urban and rural infrastructure projects, ensuring states have the resources to implement key developmental programs.
- Rs 4,000 crore for SNA Sparsh Model Incentives: These incentives aim to streamline the release of funds under Centrally Sponsored Schemes, ensuring timely and efficient use of resources.
- Rs 25,000 crore for Capital Expenditure Incentives: The Centre will provide these funds to states that achieve their targets for capital expenditure in FY25, encouraging them to prioritize investments in infrastructure and development.
