PTI
GUWAHATI, MAY 15
Assam Chief Minister Tarun Gogoi today expressed concerns over the restructuring of Centrally
Sponsored Schemes (CSS) and drastic reduction in the allocation of funds for many important schemes in the state.
"The announcements in the Union Budget 2015-16 have given us reasons to believe that the central assistance to Assam will get reduced substantially.There have been severe cuts in allocations in important sectors," Gogoi told reporters here.
"The announcements in the Union Budget that there would be a change in the funding pattern of CSS will impact the state," he said.
"The Assam government requests continuance of the existing pattern of funding of the CSS, which may be 100 per cent funded by the Centre or in the ratio of 90:10 for Special Category States like Assam," he said.
"A very crucial Flagship Programme, ICDS for example, has witnessed a 50 per cent reduction in allocation at the national level, which will have an effect in allocations to states, including Assam," he added.
The central government is considering the restructuring of the CSS, which after careful examination were redesigned and restructured in June 2013, Gogoi said.
"At that time, the number of CSS was brought down from 142 to 66. It appears that there is a move to further do away with a large number of CSS and to even reduce the number of very important Flagship Programmes from the existing 17," he said.
"The Assam government opposes any move to discontinue any of the CSS further without consultation with states on a scheme by scheme basis. More importantly, Flagship Programmes which are aimed at achieving very important socio-economic objectives besides employing large number of people should not be discontinued at all," the Chief Minister said.
"As Assam did not receive any communication on the resource allocation for 2015-16, including the funding pattern for CSS from the 'NITI Aayog' or from the Ministry of Finance, allocations for schemes in the State Budget for 2015-16 were made based on the normal assumptions about growth in central assistance," he said.
"The Assam Assembly accordingly passed the state budget\ with a proposed plan outlay of Rs 26,338.70 crore. However, the Union Budget for 2015-16 has a very drastic reduction in the allocation of funds for many important schemes," Gogoi said.
Altogether 12 programmes including Block Grants like Special Plan Assistance, Normal Central Assistance, Backward Region Grant Fund, Special Central Assistance for Hill Areas, etc -- which received budgetary support from the Centre till 2014-15 -- have now been completely delinked from the central support, he said.
"We estimate that this would impact the state to the tune of Rs 4,051.64 crore as most of the schemes under these programmes have been started and cannot be given up half way.
"We have only received some indications about these proposed changes. For example, the Rashtriya Krishi Vikas Yojana (RKVY), the main scheme in the Agriculture sector which was funded with 100 per cent central assistance is proposed to have a funding pattern of 50:50," Gogoi said.
Similarly, the Integrated Watershed Management Programme, which had a funding pattern of 90:10, is proposed to have a funding pattern of 50:50, Gogoi said, adding the lack of clarity in the funding pattern for most CSS schemes has created uncertainty and confusion.
"We estimate that if there is a change in the funding pattern of the CSS and also assuming that the state share will increase to 50 per cent, there will be a requirement of Rs 2,991.14 crore as state share, putting a huge burden on scarce state resources," the Chief Minister said.
The continuance of the Centrally Sponsored Schemes and other centrally funded programmes at the levels of 2014-15 would, therefore, imply that the state will have to budget around Rs 7,042.78 crore just for these schemes, Rs 4,051.64 crore for the fully delinked programmes plus Rs 2,991.14 crore as state share after the changed pattern of funding, he said.
"This would put a very difficult strain on our resources. This burden would further mount as the coverage and scope of the schemes may have naturally to be expanded depending on the state's needs in future," Gogoi said.
"The Union Finance Minister in his budget speech had mentioned that these changes would be offset by the increased transfers under the 14th Finance Commission. This may not be the case as far as Assam is concerned. The state government was earlier getting 3.68 per cent of the funds from the total divisible pool while now the Commission recommended 3.31 per cent only.
"While there may be an increase in the total quantum of transfers under the Finance Commission (FC), we expect the actual net transfers to the state at a much lower rate than before with the proposed changes in the funding pattern and the delinking of schemes," Gogoi said.
"We must also point out that the Central government is not giving Assam what the FC had recommended in 2015-16," he said.
The Union budget has an allocation of Rs 17,400.88 crore while the FC had recommended Rs 19,180.03 crore. Thus, the state would get Rs 1,779.15 crore less than what was intended during 2015-16, he said.
"I have written to the Prime Minister and the Finance Minister on these issues. It should be noted that similar sentiments have been expressed by the Chief Ministers of the North-Eastern States," Gogoi said.
The Assam assembly also adopted a unanimous resolution for the continuance of Special Category Status for Assam and for Central Funding to continue as 100 per cent Central Share or on the principle of 90 per cent Central Share and 10 per cent State Share, he added.
