Amid ambiguity over funding pattern, loss of RS 3,900 cr looms large over state | punjab | Hindustan Times
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Amid ambiguity over funding pattern, loss of RS 3,900 cr looms large over state

Even as the central government is yet to come out with the final document on the restructured central sponsored schemes (CSS), hill state Himachal Pradesh, which is already bearing the brunt of cancelled special assistance, fears loss of another over `500 crore due to changed funding pattern for CSS.

punjab Updated: May 11, 2015 22:35 IST
Saurabh Chauhan

Even as the central government is yet to come out with the final document on the restructured central sponsored schemes (CSS), hill state Himachal Pradesh, which is already bearing the brunt of cancelled special assistance, fears loss of another over `500 crore due to changed funding pattern for CSS.

On the basis of the 14th Finance Commission's (FFC) recommendations, Centre had discontinued plan assistance for states, a blow of `2,900 crore to Himachal Pradesh. This includes `1,546 crore under normal central assistance (NCA), `850 crore under special central assistance (SCA) and `500 crore under special plan assistance (SPA), as was received last year.

Later, as part of the Union budget, the Centre proposed discontinuation of central funding support to eight CSS, and decreasing the central share in several schemes to 50%. Consequently, the state, which had been getting funds for most CSS on the 90:10 pattern, fears a loss of another `510 crore this fiscal.

The state government has time and again been raising the matter with the Centre, and also recently written to the Prime Minister to continue the CSS funding on the 90:10 pattern.

However, the Centre has tried to compensate states by increasing the state's share in taxes to 42% from 32%.

But, though there would be no dearth in funds from the centre, majority of funds would have to be redirected to the CSS, as state can't lessen the spending under these schemes.

An agriculture department official, on the condition of anonymity, said, "Last year, we spent around `80 crore under the Rashtriya Krishi Vikas Yojana (RKVY). This year, we will get around `47 crore. But to maintain spending at par with last fiscal, the state would have to pay from its coffers."

State pins hope on NITI Aayog's sub-group

All eyes are on NITI Aayog's sub-group, a panel of chief ministers who are unanimous on reducing the CSS and will finalise their recommendations in the next meeting to be held at Bhopal on May 28.

State has been anticipating the continuation of funds' flow on 90:10 basis.

Headed by Madhya Pradesh chief minister Shivraj Singh Chauhan, the panel includes chief ministers of Assam, Tripura, Chhattisgarh, Goa, Gujarat, Himachal Pradesh, Odisha, Puducherry, Tamil Nadu and Meghalaya. The sub-group was constituted by the governing council of the NITI Aayog earlier this year.

State's loss

Discontinuation of SPA, NCA and SCA: `2,900 crore
Reduction in additional central assistance: `447 crore
Altered CSS pattern: `510 crore
Non-reflection of CSS: `41 crore
Total: `3,839 crore
Loss through curtailing
expenditure on CSS
Elementary education: `100 crore
Rajiv Gandhi Panchayat Sashaktikaran Abhiyan: `33 crore
Integrated Child Protection Scheme (ICPS): `16.8 `crore
National mission on sustainable agriculture: `12 crore
Rashtriya Swasthya Bima Yojana: `11 crore