Guwahati, April 26 (PTI): The 15th Finance Commission today said Assam has a "long way to go" to catch up with national average in terms of overall development, although the state has made significant progress during the last 2-3 years.
"In the last 2-3 years, Assam achieved significant progress with recent spurt in growth. It has seen growth increasing, maintained overall macro-economic stability along with improvement in indicators of human resource development," 15th Finance Commission Chairman N K Singh said at a press conference here.
The Commission, which is on a two-day visit to the state to hold consultations with various stakeholders, is of the view that Assam needs to grow more than double digit numbers to catch up with national average of development parameters, he added.
"The state also needs to catch up to other key parameters like education and health. Quality of expenditure is important. There is a long way to go to increase the percentage of capital expenditure in overall revenue expenditure," Singh said.
He informed that the Assam Chief Minister Sarbananda Sonowal has brought to the notice of the Commission about lesser collection of tax revenue due to implementation of GST.
"It may be due to transitional impact and devaluation issue of GST. Getting lesser funds by the 14th Finance Commission has also been brought to our notice. It may not be done intentionally. We will see how we can help to not slow down the economic growth of the state," Singh said.
He pointed out that the central government had guaranteed a 14 per cent buoyancy, so Assam should wait for some more time.
Singh also said that the Commission has been informed about the withdrawal of special category status state to Assam, because of which externally aided projects have been affected.
"This is a consequence of abolition of Planning Commission. We have to study this. The issue of special category status to states is not a part of the terms and conditions of Finance Commission. This is an executive status. The entire fiscal stability of a state is under the purview of Finance Commission," he added.
He said that Assam faces enormous challenges due to natural calamities such as flood and erosion by Brahmaputra and other rivers, for which a holistic view is needed to be taken.
