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Special category status clipped from NE states

By Spl Correspondent

NEW DELHI, Aug 8 - Setting at rest all speculation, the Centre has clarified that 11 states, including the eight northeastern states, have lost the �special category� status in keeping with the recommendations of the Fourteenth Finance Commission (FFC).

In a Rajya Sabha reply to a question by Ripun Bora, Minister of State for Planning Rao Inderjit Singh said that according to the recommendations of the FFC, the share of net shareable taxes to the states have been increased from 32 percent earlier to 42 per cent from 2015-16 for the period 2015-20. This provides for increased untied funds to all the states.

Further, the minister added that the block grants like normal Central assistance, special plan assistance and special Central assistance (untied), which were available to the special category states have not been provided since the Union Budget 2015-16 (Plan) in view of the increase in the devolution of shareable taxes to 42 per cent for all the states.

The Central assistance to state plans includes transfer of funds from the Union Government to states under the Centrally-sponsored schemes. The funding pattern for the Centrally-sponsored schemes (CSS) as per the recommendations of the Report of the Sub-Group on Rationalisation of Centrally Sponsored Schemes accepted by the Central Government is as follows:

The funding pattern for core of the core schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme, National Social Assistance Programme, etc., for all the states will remain unchanged. In the case of some of the core schemes that form part of the National Development Agenda and other schemes not covered, which are optional for the state governments, the funding pattern is more favourable to the eight northeastern and three Himalayan states, Singh said.

Accordingly, for the listed core schemes, the Centre-state share for the eight northeastern and three Himalayan states is 90:10, whereas it is 60:40 for all other states. In the case of schemes, which are optional for the state governments, the Centre-state share will be 80:20 for the eight northeastern and three Himalayan states, while it will be 50:50 for all other states.

The special category status for plan assistance had been granted to 11 states � Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.

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Special category status clipped from NE states

NEW DELHI, Aug 8 - Setting at rest all speculation, the Centre has clarified that 11 states, including the eight northeastern states, have lost the �special category� status in keeping with the recommendations of the Fourteenth Finance Commission (FFC).

In a Rajya Sabha reply to a question by Ripun Bora, Minister of State for Planning Rao Inderjit Singh said that according to the recommendations of the FFC, the share of net shareable taxes to the states have been increased from 32 percent earlier to 42 per cent from 2015-16 for the period 2015-20. This provides for increased untied funds to all the states.

Further, the minister added that the block grants like normal Central assistance, special plan assistance and special Central assistance (untied), which were available to the special category states have not been provided since the Union Budget 2015-16 (Plan) in view of the increase in the devolution of shareable taxes to 42 per cent for all the states.

The Central assistance to state plans includes transfer of funds from the Union Government to states under the Centrally-sponsored schemes. The funding pattern for the Centrally-sponsored schemes (CSS) as per the recommendations of the Report of the Sub-Group on Rationalisation of Centrally Sponsored Schemes accepted by the Central Government is as follows:

The funding pattern for core of the core schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme, National Social Assistance Programme, etc., for all the states will remain unchanged. In the case of some of the core schemes that form part of the National Development Agenda and other schemes not covered, which are optional for the state governments, the funding pattern is more favourable to the eight northeastern and three Himalayan states, Singh said.

Accordingly, for the listed core schemes, the Centre-state share for the eight northeastern and three Himalayan states is 90:10, whereas it is 60:40 for all other states. In the case of schemes, which are optional for the state governments, the Centre-state share will be 80:20 for the eight northeastern and three Himalayan states, while it will be 50:50 for all other states.

The special category status for plan assistance had been granted to 11 states � Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.

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