Guwahati, Tuesday, November 10, 2015
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90:10 funding for 17 NE core projects
Raju Das
 SHILLONG, Nov 9 - The Central Government has “largely resolved” to continue with the 90:10 funding pattern for 17 core Centrally Sponsored Schemes (CSS) and would follow the 80:20 pattern for non-core CSS schemes for the North-Eastern States.

Union Minister of State for Finance Jayant Sinha said here today that based on the recommendations of the Shivraj Singh Committee formed to study the funding patter for North-Eastern States, “It has been largely resolved that 17 core CSS would follow the 90:10 funding pattern.”

“This issue has been discussed and so only for the non-core CSS the funding pattern would be the 80:20 pattern,” Sinha said during a press conference after a review meeting of Pradhan Mantri Jan Dhan Yojna, CSS and other Central programmes, with State Government officials.

Stating further that there is no need for labels such as “special category States,” the Union Finance Minister added that in view of the changed 14th Finance Commission recommendations, for more Central tax devolution, all States would get more funds now.

He said that based on the recommendations of the 14th Finance Commission, there would now be just revenue deficit Sates and more grants would be allocated to such States.

Giving the example of Meghalaya, he said that the State’s share of Central tax devolution in the last fiscal was Rs 3804 crore and during 2015-16 the State’s share would jump up to Rs 4014 crore. “Every year the State’s share of Central taxes would roughly increase by about 10 per cent,” he added.

On implementation of the Goods and Service Taxes, he hoped that the Bill would get the approval of all parties in the Parliament during the Winter session, so that it could be implemented in the country by 2016.

“The North Eastern States as destination consumption States would be the biggest beneficiary of the GST as most are not manufacturing States. Moreover, the tax revenue would also go up as many new categories would fall under the tax net,” he pointed out.

The Minister also said that for the development of the North East, finance is not a constraint. “The Government is committed to fund large projects in the region through various ways, apart from the CSS. This fiscal there is Rs 2369 crore with the Ministry of Development of North Eastern Region. Moreover, there are other funding agencies like World Bank etc. Therefore, finance is not any issue for the right projects,” he informed.

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