Question : ELEVENTH FINANCE COMMISSION REPORT



(a) whether the Eleventh Finance Commission has reduced the share of North East States in the total transfer of resources from the Centre;

(b) if so, the reasons therefore; and

(c) the corrective steps taken by Government in this regard?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALA SAHEB VIKHE PATIL)

Parts (a) to (c) : The Finance Commission lays down the criteria for determining the share of transfers between the States, from time to time, keeping in view their assessment of States requirement, and the need for horizontal equity. The Eleventh Finance Commission for its award period 2000-05 has recommended a total estimated transfer of Rs. 34753.35 crores to North East States as against Rs. 22289.03 crores recommended by the Tenth Finance Commission for 1995-2000. This represents an increase of 55.9% in the Eleventh Finance Commission period over the recommendations of the Tenth Finance Commission.

The Government of India has since accepted the recommendations of the Eleventh Finance Commission relating to devolution of Central taxes and duties and quantum of grants-in-aid to States.