Taking a closer look at participatory budgeting

The Swaraj Fund created by the Delhi government in its 2015-16 Budget for giving financial powers to area sabhas has bridged the gap somewhat between theory and practice on citizen participation in governance.

What is now being done in the city has been suggested in several central government schemes, including the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). But the Aam Aadmi Party government may have tried to take it to a new level.

The AAP government carried out mohalla sabhas in 11 constituencies and it claimed that the Delhi Budget for 2015-16 financial year is the reflection of the people’s suggestions it had received.

Delhiites  were pleased to know that the city government is focusing on areas like education and health, but many were unhappy over the increase in entertainment tax, which led to hike in cinema tickets.

“It’s good that the government has decided to spend a huge part of its budget on education sector. It’s the need of the hour, but why is it again becoming populist in its approach?” says Kavita Sagar, a resident of Mayur Vihar, one of the constituencies where the mohalla sabha took place. “I don’t think that’s exactly what we had asked for,” says the DU MCom student.

Some feel that the AAP government was being overambitious.
“If we see the controversies surrounding the AAP government, whether they are tainted leaders or an MLA’s wife accusing him of domestic violence or the latest one over government spending on advertisements, it seems that the party has a difficult road ahead,” says Colonel (retd) Amrish Singh. “The budget proposed by the AAP government seems ambitious. Does the government have money to meet the allocations it has proposed or 2015-16 fiscal?”

Deputy Chief Minister Manish Sisodia, while presenting the Budget in the Assembly, had said, “This is the first Swaraj Budget of the country based on valuable inputs, suggestions by citizens and academicians. The government has taken note of issues raised by experts, trade organisations, resident welfare associations and civil society as well as the corporate sector.”

Sisodia had said Budget 2015-16 is India’s first “participatory budget”. “Swaraj Fund with a budget provision of Rs 253 crore has been created enabling citizens to prioritise implementation of programmes selected by them for development of their area,” he had announced.
A total of Rs 20 crore each has been earmarked for all the 11 constituencies where the mohalla sabhas took place. For the remaining 59 constituencies, Rs 50 lakh each was proposed.

‘Hard to believe’
Residents also found it hard to believe that the money would be spent only if they were satisfied by the work done. “The minister (Sisodia) saying that contractors will be paid only if residents approved of the work done, seemed far-fetched,” says Patparganj resident Rohini Prashar. “How can all residents reach a unanimous decision?”

Residents in rural areas say they have been left out by the AAP government. “Why didn’t our area get additional funds for development work? We need it more than anybody else,” says Shanti Lal, who lives in Najafgarh.

Even AAP MLA Colonel Sherawat said in the Assembly that rural areas need special attention.

“There should be programmes and functions in local language of these areas so that people feel they are also part of the city,” he said.
The opposition parties have been training their guns on the AAP government over the “unrealistic Budget”.

“The Budget is an eyewash. The AAP government had said it will not increase taxes but it increased the upper limit of Value Added Tax (VAT) to 30 per cent. It’s taking a U-turn on its policies,” says Leader of Opposition Vijender Gupta.

‘No tax-free Budget’
Delhi Congress spokesperson Sharmistha Mukherjee says the AAP government had promised it would come up with a tax-free Budget.

“During the Budget speech by Finance Minister Manish Sisodia, there was no mention about the intention of the government to increase Value Added Tax through an amendment to the Bill. This amendment has come as a rude shock to the people of Delhi,” she says.

“The proposed Budget estimate to generate Rs 24,000 crore through Value Added Tax is highly unrealistic. The growth in revenue collection through Value Added Tax fell drastically to 2.03 per cent in 2014-15 as opposed to 13.43 per cent the previous year (2013-14 fiscal),” she adds.

Only time will tell whether the AAP government will be able to meet expenses to spend on projects it had announced under the Budget 2015-16.

Delhiites, for now, feel the city government is at least highlighting the right issues.