Meeting of NITI Ayog Sub-Group on rationalisation of Centrally sponsored schemes
Bhopal: Final stage contemplation was held on rationalisation and funding of Centrally sponsored schemes at a meeting of NITI Ayog Sub-Group headed by Chief Minister Shri Shivraj Singh Chouhan at Mantralaya here today. Recommendations have been prepared on the basis of suggestions of Chief Ministers of states. Last meeting of the Sub-Group will be held in New Delhi on June 13 following which the sub-group will submit its report to NITI Ayog’s Chairman Prime Minister Shri Narendra Modi.
Chief Minister of Nagaland Shri T.R. Zeliang, Kerala Shri Oommen Chandi, Arunachal Pradesh Shri Nabam Tuki, Tailangana Shri R. Chandrashekhar Rao, Jharkhand’s CM Shri Raghubar Das and Lt. Governor of Andaman & Nicobar Shri A.K. Singh participated in the meeting.
Chief Minister Shri Chouhan said that the Sub-Group will present recommendations to strengthen states and keeping in view their expectations and limitation of Central resources. Along with states, interests of the nation will also be kept in view while making recommendations by representing entire country. All states have come to agreement that Central share in Centrally sponsored schemes should not be less than 50 percent. A scheme may have many elements and the state should not be bound to adopt each. These schemes’ funding pattern should be same for at least 5 years and number of fundamental Centrally sponsored schemes should be between 20 and 25. Alternatives should be open in remaining schemes. There should be about 25 percent flexi fund in Centrally sponsored sector. This will facilitate states to spend funds in priority sectors. Funds under Centrally sponsored schemes will be made available in 2 installments in April and October. Centre should make funds available till 2017 for completing ongoing schemes. NITI Ayog should help states in formulating long-term plans. It should make available a platform where states can express their views and share innovations.
Chief Ministers’ suggestions
Tailangana’s Chief Minister Shri K. Chandrashekhar Rao said the states should neither burdened at all nor any reduction made in their share. He said that the states declared surplus have been affected financially. Central share in Centrally sponsored schemes should not be less than 80 percent even if optional schemes have to be curtailed. He said that there are expectations from Fiscal Responsibility and Budget Management Act. Early decisions should also be taken about fiscal institutionalization.
Nagaland’s Chief Minister Shri T.R. Zeliang said that north-eastern states should be paid special attention in Centrally sponsored schemes. Schemes like BRGF should continue. He said that police modernization should also be continued. Initiative for assistance should be made continuation special status of north-eastern states including Nagaland.
Kerala’s CM Shri Oommen Chandi suggested for chalking out special Central schemes for Kerala being a coastal state. He said that states should not suffer loss due to new funding pattern. Whatever states were getting should not be curtailed. State’s loan drawal capacity should be enhanced.
Jharkhand’s Chief Minister Shri Raghubar Das said that BRGF should be extended for 2 years so that funds under it can be fully utilized. He said that there should be a formula to give more share to enriched states. He said that funds for Centrally sponsored schemes should not be given after January since these cannot be fully utilized till end of financial year.
Arunachal Pradesh Chief Minister Shri Nabam Tuki was of the view that funds for Central schemes should be provided in 2 installments – first installment in May and second in November. Lt. Governor of Andaman & Nicobar Sri A.K. Singh said that every Union Territory has different requirements. Therefore, separate funding pattern should be adopted for them. Representatives of Chief Ministers of Rajasthan, Jammu-Kashmir and Uttar Pradesh were also present.
NITI Ayog’s CEO Smt. Sindhushri Khullar and other senior officers, Vice-Chairman of State Planning Commission Shri Babulal Jain, Finance Minister Shri Jayant Malaiya, Chief Secretary Shri Anthony de Sa, ACS Finance Shri Ajay Nath, ACS Planning Smt. Ajita Vajpayee Pandey, Principal Secretary Finance Shri Ashish Upadhyay, Principal Secretary Planning Shri K. Suresh and Secretary Finance Shri Aniruddha Mukherjee were also present.
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