‘Central aid to state rose in past 3 yrs, but growth slow’

  • anupam trivedi, Hindustan Times, Dehradun
  • Updated: Jan 10, 2015 15:46 IST

The annual assistance from the Centre to the state has increased in last few financial years, according to official statistics, even though the Uttarakhand government has been firing salvos at the central government over it.

Two days ago, the state Congress unit demanded `4,000 crore financial assistance from the centre.
According to the central statistics office figures, the Centre released `4883.74 crores for the state in 2011-12. It released `4717.68 crores in 2012-2013. And in 2013-2014, it increased the assistance to `5418.60 crores.

Uttarakhand is one of the 11 Himalayan states which enjoy special category status besides Jammu & Kashmir, Himachal Pradesh, Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Tripura and Sikkim.

These special category states have to make part payment to the centre in lieu of getting funds for centrally-sponsored schemes.
Interestingly, on an average, central assistance has been substantial for the state though it has not helped Uttarakhand in increasing its Gross State Domestic Product (GSDP) which is total monetary value of goods and services produced by a state economy in a given year.
“GSDP depends on various factors like rate of savings and investments and overall business atmosphere. But that doesn’t mean the state does not need help,” said Surender Kumar, media in-charge for CM adding that the state needs more funds.

The figures for Uttarakhand GSDP growth at constant (2004-5) price (as on 01-08-2014) was 9.36% in 2011-12. It was 5.61% in 2012-13 and 5.65% in 2013-2014.

Sometime back Planning Commission constituted a committee to study development in hill states arising from management of forest land with special focus on creation of infrastructure, livelihood and human development.

The report of the committee was discussed in Internal Planning Committee meeting held in February this year.
A Planning Commission note claimed that IPC broadly endorsed the recommendations of the committee. The report has also been forwarded to states for further inputs.

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