(a) whether the Union Government created an Incentive Fund at National
Leval as per the recommendation of Eleventh Finance Commission ;
(b) if so, the details of the fund and the criteria for the defferent
States to become eligible for grant ;
(c) the list of States which have become eligible for these funds and the
amount due to them; and
(d) the details of steps taken by Union Government to release these funds
to different States particularly to Punjab?
MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI ANANDRAO V. ADSUL)
a) Yes, Sir.
b) Pursuant to the recommendations of the Eleventh Finance
Commission(EFC), Government of India has circulated a scheme called
`States` Fiscal Reforms Facility (2000-01 to 2004-05)` and has set up an
Incentive Fund of Rs.10,607.72 crore for five years comprising of 15% of
the revenue deficit grant to the States recommended by the EFC in its main
report and equal matching contribution by the Government of India.
Release from the Incentive Fund to the States is based on the single
monitorable fiscal objective i.e. 5 percentage points improvement in
revenue deficit as a percentage of revenue receipt in each year till
2004-05. For revenue surplus States, 3 percentage point improvement in the
Balance from Current Revenue as percentage of non-plan revenue receipts is
the criteria.
(c) & (d) Under the scheme of Fiscal Reforms Facility, State Governments
have been invited to formulate their Medium Term Fiscal Reforms Programme
(MTFRP) aimed at fiscal consolidation.
Based on the finalisation of MTFRP of States, a sum of Rs.
1751.99 crore from Incentive Fund has been released so far.
State-wise details are Annexed.
Government of Punjab has furnished its MTFRP, which is
scheduled to be considered in the meeting of the Monitoring
Committee. Since MTFRP of the State of Punjab is yet to be
finalised, no fund has been released to State from the
Incentive Fund so far. State Governments who are yet to
furnish their MTFRP are pursued to expedite their MTFRP for
finalisation and to enable this Ministry to consider release
of funds to them.
Annexure
Statement referred to in reply to part ( c) & ( d) of Lok Sabha Unstarred
Question No. 5073 for answer on 20th December,2002 regarding Incentive Fund.
Release from Incentive Fund to States
( Rs. Crore )
Sl. No. States 2001-02 2002-03 (so far)
1 2 3
1 Andhara Pradesh 47.94 2 Arunachal Pradesh 36.69 3 Himachal Pradesh 161.23 4 Jammu & Kashmir 321.84 5 Karnataka 32.29 6 Kerala 23.52 40.92 7 Maharashtra 55.55 8 Manipur 54.38 55.32 9 Nagaland 97.22 102.08 10 Orissa 77.95 11 Rajasthan 171.68 12 Sikkim 0 51.70 13 Tamil Nadu 0 45.40 14 Tripura 73.99 15 West Bengal 302.29
Total 1456.57 295.42
Grand Total (Col. 2 + Col. 3) 1751.99