|State Govt for 90:10 funding pattern revival|
NEW DELHI, July 8 - Faced with acute financial crisis, the Assam Government today sought revival of the 90:10 pattern of funding to the State.
Reeling under severe resources crunch, the State Finance Ministry, led by State Finance Minister Himanta Biswa Sarma, made a presentation before the Union Finance Ministry today.
Later, emerging from the meeting Sarma told newsmen that the State Government’s presentation was about the financial crisis and measures needed for recovery from the crisis. One of the steps suggested was restoration of the 90:10 funding pattern.
The State Finance Ministry officials, which also included State Finance Secretary Ravi Kota, further suggested loans from external agencies to the State at zero per cent interest.
The Union Finance Ministry, taking note of the suggestions, assured of all assistance to the State, said Sarma.
Chief Minister Sarbananda Sonowal had on Thursday told media-persons that the BJP Government has inherited a debt of Rs 12,000 crore. Drastic measures have to be resorted to by the State Government to avoid a total breakdown, he added.
He defended the imposition of one per cent VAT, stating that media had created the confusion among the people by projecting that 6 per cent VAT was imposed. The money would be collected from the profit of the commercial ventures and not from the pockets of the people.
Though VAT has been levied on 127 items, essential food items, like salt, rice, pulses, potato and sugar have been exempted from the one per cent VAT.