 statement of objects and reasonsthe tribals and other persons living in or near forest areas have been earning their livelihood from the forest for centuries they have been enjoying rights over forest produce traditionally earlier the forest areas were supposed to be under the control of society as a whole during the british period, control over forest areas passed into the hands of the government legislations were enacted to this effect such legislations caused adverse impact on the ability of tribals and other persons settled in the forest areas to earn their livelihood they lost their traditional rights over forest produce after independence, the government of india made various rules to check the massive deforestation and misuse of forest lands the strict approach of local forest officers made it difficult for those depending on forests to earn their livelihood once the forest (conservation) act, 1980 was brought into effect, it became difficult for people living in or around forest areas to exploit forest produce for their livelihood such tribal people are poor and they are not in a position to earn their livelihood from any other source it is the duty of the government to provide self-employment to such people who live in or around forest areas they should be permitted to carry on their traditional occupation which is based on processing of forest produce enabling them to start their own forest based processing plants, industries, etc through financial assistance by the government is the only way to bring these under privileged sections into the mainstream of the society it will also help in eradicating problems of poverty, unemployment and malnutrition in tribal areas it is necessary that the traditional rights of the tribals over forest produce be restored hence this bill new deut; hansraj gangaramii ahir may 9, 2006  financial memorandumclause 5 of the bill provides for the setting up of the forest produce management board clause 6 provides for the setting up of the forest produce managemers fund to which the central government and state governments shall contribute in such ratio, as may be prescribed clause 8 of the bill provides for establishment of local committees to assist the board in performing the functions relating to forest produce collection, processing, buying and selling in every district the expenditure relating to states shall be met out of the consolidated fund of the states concerned the expenditure in respect of union territories shall be met out of consolidated fund of india  the bill, therefore, if enacted will involve expenditure from the consolidated fund of india it is likely to involve an annual recurring expenditure of about rupees five hundred crore a non-recurring expenditure of about rupees fifty crore is also likely to be involved memorandum regarding delegated legislationclause 12 of the bill empowers the central government to frame rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of anormal character 