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smt. vasundhara raje raised fundamental isues regarding centre state financial relations in NDC meeting

Tendency of centralisation an obstacle in development of states:gadgil formula be revised according to present scenario-cm

Jaipur, December 19. The Chief Minister Smt. Vasundhara Raje while expressing serious concern over the binding on the states to spend the large amount of the Central assistance under the guidance of Union Government, said that the states were not able to make and implement schemes according to their requirement. She also expressed surprise on terming loan from MP development fund and international institutions as Central assistance.
Smt. Raje was speaking in 54th Meeting of National Development Council at Vigyan Bhawan in New Delhi held under the chairmanship of Prime Minister Dr. Manmohan Singh on Wednesday. She also raised issues regarding Centre-State financial relations in the meeting.
She said that in the 10th Plan period all States had played their role despite serious limitations, the Centre failed to provide stipulated Central Assistance to States, falling short by Rs. 59 lakh crores. Under the 11th Plan, a further reduction in share of resources to the States was envisaged with Central Assistance coming down from over 26 percent to under 23 percent.
Smt. Raje further added that only Rs. 1 lakh 11 thousand crore out of the Rs. 3 lakh 25 thousand crores was available to States as Central Assistance with the burgeoning of Additional Central Assistance Schemes and Special Central Assistance Scheme.          
She affirmatively said that the increasing size of CSSs amounted to almost completely taking away the flexibility of State Governments. She pleaded that the Central Assistance to State’s Plan should only be provided as untied Normal Central Assistance (NCA); funds flowing through Centrally Sponsored Schemes should be minimized; from Central Assistance to State Plans no schemes should be run under the name of ACA/SCA; and there should be only two classifications: CSS and NCA.
Smt. Raje stressed that Gadgil-Mukherji formula should be revised to make it more progressive; and reservations in schemes or jobs should be for the poor, not for any particular group.
The views of Smt.Vasundhara Raje were endorsed by Chief Minister of Orissa Shri Naveen Patnaik,  Chief Minister of Bihar Shri Nitish Kumar, Chief Minister of Gujarat Shri Narendra Modi, Chief Minister of Madhya Pradesh Shri Shivraj Singh Chouhan, and Chief Minister of Chattisgarh  Shri Raman Singh. They moved a resolution seeking constitution of a committee under the co-chairmanship of a Senior Chief Minister and Dy. Chairman, Planning Commission with adequate representation of Chief Ministers to examine the full gamut of issues involved in Central Assistance to States.
The Chief Minister presented the key initiatives taken up by her government and listed schemes which had been adopted into the Centrally Sponsored Schemes like the Pannadyay Bima Yojana, the climate Based Agricultural Insurance Scheme, the Social Sector Viability Gap Funding Scheme and the Rajasthan Development and Poverty Alleviation Fund.  She welcomed the higher level of investment envisaged from Private Sector under the Public Private Partnershi Model in the 11th Plan and opined that Government of India should consider alternative PPP Models with a completely open mind.
In meeting, Rajasthan's Minister of State for Finance Shri Virendra Meena, Chief Secretary Shri D.C.Samant, Principal Secretary Finance Shri Rajiv Mehrishi, Secretary Finance Shri Subhash Garg, Planning Secretary Shri V.Srinivas and Resident Commissioner Shri P.K.Anand and other senior officials were also present. 


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