Question : ALLOCATION OF FUNDS TO ASSAM BY 10TH FINANCE COMMISSION



(a) the total allocations for Assam and other North-Eastern States by Tenth Finance Commission, State-wise separately specifying respective population of the States;

(b) the allocation for Assam and North-Eastern States by Eleventh Finance Commission;

(c) whether the allocation of Eleventh Finance Commission for Assam was drastically reduced in comparision to its allocation by Tenth Finance Commission;

(d) if so, the reasons therefor;

(e) whether the Union Government has an proposal for special package or allocation for Assam and other North-Eastern States; and

(f) if so, the details thereof!

Answer given by the minister

FINANCE MINISTER (SHRI P.CHIDAMBARAM)

(a) to (f): A statement is laid on the table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 172 FOR 16.7.2004

Finance Commissions recommend the share of States in Union taxes and duties as also the inter-se distribution thereof amongst the States.

Share of North - Eastern States, including Assam estimated by the Tenth and Eleventh Finance Commissions (EFC) on the basis of projected central taxes revenues and specific grants recommended are given in columns 3 and 4, respectively of the Annexure.

As will be seen from this statement, devolution of resources to Assam is 61.19% higher during the period 2000-05 compared with the Tenth Finance Commission period, 1995-2000.

All Central Ministries and Departments are mandated to spend at least 10 per cent of their Plan budget for schemes in the NE States. This amounts to an allocation of Rs. 5823 crore in the current year. Moreover, only unspent amounts from this allocation is transferred to a non-lapsable pool for development of the NE States. In the current year, Rs. 650 crore have been provided from this pool for schemes & projects in the NE region.

Annexure

ESTIMATED TOTAL TRANSFERS RECOMMENDED BY TENTH AND ELEVENTH FINANCE COMMISSION TO NORTH-EASTERN STATES

(Rupees crore )
SI.No. State TENTH FINANCE ELEVENTH Population of COMMISSION FINANCE States - 1971 (1995-2000) COMMISSION figures adopted (2000-05) by TFC (in lakhs) Estimated Transfers Estimated Transfers
1 Arunachal Pr. 1768.36 2319.76 4.68 2 Assam 8328.05 13423.70 146.25 3 Manipur 2136.62 3226.39 10.73 4 Meghalaya 1888.85 2971.30 10.12 5 Mizoram 1802.01 2538.52 3.32 6 Nagaland 2793.04 4454.80 5.16 7 Sikkim 698.89 1635.97 2.10 8 Tripura 2873.21 4376.23 15.56 Total 22289.03 34946.67 197.92