Govt says no cut in funds for unique ID project

The government on Monday reiterated its commitment to the ambitious Unique Identification (UID) project, Aadhaar, saying it would provide all the money required for its implementation, and that there would be no reduction in funds.

The finance ministry clarification follows reports that the government had slashed the budget for the first phase of UID from Rs 7,000 crore to Rs 3,000 crore.

However, according to a source, the government has decided to limit its incentive for the registrars of the 12 digit Aadhar number.

“Earlier, the incentive was proposed for the next four years, which would have enrolled 60 crore people. But now, it has been proposed that the incentive should be given only till March 2011, and that too for only 10 crore people,” the source said.

The first set of UIDs for public distribution system is scheduled to roll out in Andhra Pradesh by October.

According to sources, the finmin may have decided to reduce the expenditure on the implementation of Aadhaar after the Planning Commission approached it to seek additional funds for implementation of its Integrated Action Plan for 35 Naxalite-affected districts.

The Planning Commission has asked for a whopping Rs 13,742 crore for the developmental work in Naxal areas.

Even as the government is trying to bring the fiscal deficit down by reducing subsidies, it needs to spend serious money on implementing ambitious schemes under the ambit of the Food Security Act, Right to Education Act and Aadhaar. In the past few months there have been demands for additional funds to address the Naxal threat in the country.