View of ECONOMICAL DEVELOPMENT AND FISCAL CRISIS OF REWA DISTRICT

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Vol.03, Issue 04, April 2018, Available Online:www.ajeee.co.in/index.php/AJEEE

ECONOMICAL DEVELOPMENT AND FISCAL CRISIS OF REWA DISTRICT

DR. DEEPSHIKHA TIWARI Commerce Department

Ramlalit Singh P.G. College, Kailhat, Chunar, Mirzapur, (U.P.)

Abstract:- The objective of the present paper is to analyze the economical development and the fiscal crisis of Rewa District. The state of Madhya Pradesh emerged on 1^st November 1956 as a sequel of the reorganization of states of India. The Rewa District is very important part of new Madhya Pradesh. The economic condition of the people has improved considerably since independence. The economy of the Rewa district has developed to a desired satisfaction. As there is coal and lime stone belt found in the whole found in the whole district, several cement factories have been established in the nearby districts including JAYPEE Group in Bela, Bhagwarh, and Naubasta. Near Rewa city Hydro Power Generation Units are located at Sirmour and Silpara. Several Birla Group Companies like Birla Ericson Limited and Vindhya Tele Links are also found here. Because of these major industries Rewa District developing so rapidly.

Along with these industrial institutions there are so many financial institutions are also founding in here Rewa District. The financial Institutions present in the Rewa district are industrial development Bank of India, export Import Bank, Infrastructural Development finance companies, industrial credit, and Investment Corporation of India, Industrial Investment Bank of India, Non Banking Financial companies, and many more financing helping banks. Similarly the development of industries capable of attracting migrants occurred at only few places. The economic progress of the state has been remarkable during last three decades preceding 1981. Districts of former area have high and very high proportion of in-migrants also. The best measure of economic development is net domestic product and per capita income. The status of the Rewa district shows that both the domestic product and per capita income are raising are at current and constant prices.

Keywords:-Rewa District, Economic Development, Fiscal Status, Fiscal Crisis, GDP Per Capita.

ABOUT REWA DISTRICT

Under the provisions of the states of Reorganization Act 1956, the state of Madhya Pradesh was formed on November 1^st, 1956. It consist of the 17 Hindi districts of the previous state of that name, the former state of Bhopal and Sironj subdivision of Kotar district which was on enclave of Rajasthan in Madhya Pradesh.

Landlocked in the central part of the country, according to Coote W(1883) - Madhya Pradesh is bounded by the state of Rajasthan to the Northwest, Uttar Pradesh to the North, Chhattisgarh to the east and Maharashtra to the south, Gujarat to the west. Madhya Pradesh has at least four area climate zones and thus has the most interesting mix of people and ways of life. It is home to about 40%

of India’s tribal populations.

One of the most important districts of Madhya Pradesh is Rewa. It is situated between 24 degree 19’ to 25 degree 15’ north latitudes and 80 degree 4’ to 82 degree 19’ east longitudes.

Schumacher, Katja and Jayant Sathye (1999) said that the headquarters of the Rewa district is at the town of Rewa. Rewa district has an entire population of more than 16 lacks and it has an area of 6500 square kilometers. Rewa has a large capability as a tourist hub with its forest resources and historical remembrances.

Somw of the mostly visited places in Rewa district are Sirmaur, Govindgarh, Bandhavgarh and Deorkothar. In central India Rewa is erstwhile the former state of Vindhya Pradesh and capital of princely state of Rewa. It is a significant city in the North Eastern part of Madhya Pradesh state of India bordering Mirzapur, Allahabad, and Satna and Sidhi districts of Madhya Pradesh and Banda districts of Uttar Pradesh. It is the administrative center of Rewa division and Rewa district (Bharadwaj K, 2006;

Pandey B N, andSingh B K, 2000). The city lies about 138 kilometers south of the Allahabad city and 450 kilometers north east of the Bhopal state capital. Another

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name for Narmada river is derived as Rewa.

ECONOMIC BACKGROUND OF REWA DISTRICT

The economic condition of the people has improved considerably since independence. People have become conscious of their rights. The economy of the Rewa district has developed to a desired satisfaction. There are forest dwellers such as the Abujhamarias the hunters and the Gawkiersuch as the korwasand the Pandhis who depend on indigenous methods of cultivation. There are even many others whose profession is singing and dancing such as the Mangetri Pradhans or the Nagachis or Bediyas.

Rewa district parents in all a varied matrix of tribal culture ranging from animals and fowlers to advanced cultivators and factory workers.

ECONOMICAL DEVELOPMENT OF REWA DISTRICT

The best measure of economic development is net domestic product and per capita income. The status of the Rewa district shows the both the domestic product and per capita income are rising of current and constant prices. The rise of per capita income is lower in comparison to the rise of net domestic product due to fast growing population. During 1981-91 the growth rate of population in Rewa was 2.40 while it was 2.15 in India taking up population by 7 crores in ten years. In Rewa the scheduled caste and scheduled tribes population is about 35% and only 45% population is literate whereas the national average is 53% for 1997. 41%

people are below the poverty line which is more than the national average (Tripathy R S and Parmar S B S, Shukla N and Dixit D, 2002).

The migration movements included by the economic crisis are always controlled by the changes in the economy. From this point of view it is not the absolute level of economic development attained but the process and expansion of the economy which matter utmost. It is because of highly developed region at present might have been equally developed before the arrival of the in- migrant and there fore would have not been able to draw large number of migrants. Contrary to it another region

which is comparatively lesser developed but has been able to generate larger employment because of rapid process of economic development. Because of this fact only trends of growth of different sectors of economy have been analyzed here. Since data of migration pertain to 1981 census it has been tried to use other information as near to this data as possible this purpose changes in proportion of workers in mining, manufacturing and other services and proportion of population living in urban centers and percent change in net sown area between 1961 and 1981 have been calculated and utilized to find out their relationship with the proportion of migrant population.

The economic process of the state has been remarkable during last three decades preceding 1981. According to Das K B (1991) the value of net domestic products at current prices increased from Rs.560 crores in 1950-51 to Rs. 5960 crores in 1980-81recording an increase of more than ten folds. The scanning of the value of net domestic product by industry suggests that growth has been much higher in the case of mining (4099%) and manufacturing (1618). It is worth mentioning that the total value of output of minerals increased from Rs. 84 million in 1951 to Rs. 3650 million in 1980 and Rs. 9220 million in 1985. Thus it recorded an increase of 110 times during this period. Coal alone accounts for more than three fourths of the value. Major products of coal are Sidhi, Surguja, Shahdol, and Bilaspur in the north east and Chhindwara and Betul districts in south. Districts of forms area have high and very high population of in-migrants also. Mining has also been significantfactor in Durg, Raipur, Bastar, Satna, Panna, Balaghat and Jabalpur districts. Despite this fact correlation between workers engaged in mining and proportion of migrants is insignificant.

Forests are abundant and valuable natural resource of this state which have been exploited at very rapid speed. In all forests cover about one third of the geographical area of the state (Parthsarthy R and Iyenger S, 2006;

Gupta J R, 2001). The revenue received from forest products has increased tremendously from only Rs. 62 million in 1956-57 to Rs. 1410 million in 1979-80

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and Rs. 2619 million in 1985-86. Major forested tracts of the state are the Satpura-Maikal-Baghelkhand Plateau, the Bastar plateauand the Sagar Damoh and Panna hilly tracts. Thus the growth in exploitation of forest resources has influenced the migratory behavior of the southern, eastern and south eastern parts of the Rewa districts.

Similarly the development of industries capable of attracting migrants occurred at only few places. The diffenece of proportion of total main workers in non household manufacturing in 1961 and 1981 can be used as an index of industrial development. On this basis

mention be made of

Durg, Raipur districts in the east of Rewa district; Jabalpur, Sagar, Balaghat, Damoh and Satna in the central, Gwalior and Datia in the north and Indore, Ujjain, Dewas, Ratlam, Khandava, Hoshangabad, Bhopal and Raisen districts in the west of Rewa. Manufacturing sums to be significant factors in attracting in migrants. Consequently coefficient of correlation between them is significant and positive. Particularly proportion of migrants coming from other districts of the state, urbanization and share of workers in services are positively related with the changes in manufacturing.

Contrary to them proportion of district born migrants decline with the growing industrialization. Thus the development of industries has been significant factor in attaching migrants (Abbasi A and Tiwari S K, 2001; Bhumali A, 2003).

Growth in service sector through is not directly related with the quantum of total in migrants is related with different section of migrants differently. While if presents significantly positive relationship with the proportion of migrants from other districts of the state and with the growth in manufacturing it is also inversely related with the proportion of district born migrants. The most potent factor in dragging migrants from outside of the district has been urbanization.

Thus urbanization, industrialization and services have been major determinants of the in-migrants coming from outside of the district of enumeration. Contrary to it changes in mining and proportion of net sown area do not show significant relation with the in-migrants; however they have been significant factors locally.

FISCAL STATUS OF REWA DISRICT Government of Madhya Pradesh issued a white paper in 1999 which showed the status of economic crisis in Rewa district.

According to Singh U B (2003), this crisis is visible in the fiscal deficit of this year’s budget. The fiscal deficit to 2000-2001 though the primary deficit was lowers in this year comparison to last year. It we look at the percentage rise gross fiscal deficit it came down by 0.05 % in 1995- 97, 22% in 1997-988, 65.4% in 1998-99, 5% in 1999-2000 and 6% in 2000-2001.

Thus the general trend is that of rising.

REASON FOR FISCAL CRISIS

There is more than one reason for the present fiscal crisis of Rewa district:-

1. High Education Cost And Interest Payment:-

The establishment cost and cost of interest payment is going up every year in the Rewa district and a high amount of budget goes to these establishment costs.

2. Increase In Non Plan Expenditure:-

With every new plan one of previous plans increases resulting in an increase in non plan expenditure. When new plan is taken up old plan cannot be cancelled. Its establishment expenditure has to be carried out resulting in increase in non plan expenditure with every subsequent plan (Rao S R, 1996; Mooji J F,2005; Johan P K, Das S and Mahanoy S K, 2008). For the plan period of central government gives aid to meet the plan expenditure of centrally sponsored activities but after the plan the responsibility comes on the shoulders of the state government. If the activity is a productive activity there is no problem but if the activity is unproductive social activity the state government does not get any or very less income from the activity and has to carry out the liability of establishment and other costs.

3. Increase In Unproductive Expenditure:-

There is a lot of unproductive in the state. Unnecessary meetings of officers, administrators, and

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politicians, unnecessary tours of officials, unwieldy numbers of officials and politicians, unnecessary party’s lunches, increase in government vehicles and telephones, unnecessary corporations, unnecessary seminars and conferences, unnecessary functions and anniversaries duplication of policies, projects and programmers cause waste of money, time and energy and should be strictly curtailed.

4. Decentralization of Administration:-

Decentralization of administration has caused increase in the number of government paid people and work channels making changes more complicated less efficient and more slow and dilute.

5. Poor Tax Revenue:-

With the increase in economic activities, production and income the percentage of tax revenue should go up in the economy but the situation is not so.

6. Loss Of Public Undertaking:- Loss of public undertaking is a very important cause of financial crisis.

According to Soorae P S (2008). In the year ending March 1996 the undertaking which made loss or profit were very less in comparison to the heavy investment made in these corporations.

7. Revised Pay Scales:-

8. For the states the fiscal burden was exacerbated due to the additional expenditure arising out of implementation of revised pay scales of state government employees.

9. Structural Weakness:-

It is also seen that the fiscal position of both the centre and status suffer from structural weakness the Singh H (2011), says that the former due to a high level of non plan expenditure which forms almost three fourth of aggregate expenditure and the latter as a result of limited resource base in contrast to the increasing expenditure commitments. This is in turn has raised issues of sustainability of domestic debt.

10. Financial Institution:-

Financial institutions are the institutions that perform the essential function of channeling funds from those with surplus funds to those with shortages of funds. The various types of financial institutions in today’s economy including:-a)the size, structure and composition of each type of financial institution, b) the balance sheets and recent trends, c) financial institution performance and, d) regulators who oversee each type of financial institutions.

In Rewa district the following banks are available. They are:-financial institutions, public sector banks, co-operative banks, regional rural banks, small savings, nationalized banks, scheduled commercial banks, post office, saving banks, foreign banks and reserve bank of India (Babu G R, 2007; Bhole L M and Mahakud J, 2009; Bhole L M, 2004).The financial institutions present in the Rewa district are:- Industrial bank of India, Export import bank, infrastructure development finance company, industrial development finance company, industrial credit and investment corporation of India, industrial non banking financial company, industrial credit and investment corporation of India ventures, risk capital and technology finance, industrial finance corporation of India, investment by insurance companies, small industries development bank of India, state financial corporations, national small industries corporations, national bank of agriculture and rural development, state financial corporations, unit trust of India, state industrial development corporations, and Tourism finance corporation of India.

REFRENCES:-

1. Bhattacharya P K, Historical Geography of Madhya Pradesh, 1977; Indological Publishers, New Delhi.

2. Bhave V S, Development of Education in Madhya Pradesh, 2000, Himalaya Publishing house, M.P.

3. Bhole L M, Financial Institutions and Market;

Structure Growth and Innovation2004, Tata MaGraw Hill, New Delhi.

4. Datt, Ruddar K P M Sundharam (1998), Indian Economy, Chand & company Ltd, New Delhi.

5. Gupta J R, Fiscal deficit of State in India, 2001, Atlantic Publisher, New Delhi.

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Vol.03, Issue 04, April 2018, Available Online:www.ajeee.co.in/index.php/AJEEE 6. Statistical Handbook of Rewa District.

7. Dainik Bhaskar, Rewa.

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