Question : FINANCIAL ASSISTANCE TO STATES



(a) the total normal financial assistance provided to the States during each of the last two years, State-wise;

(b) the reasons for not providing the required amount to States;

(c) whether due to non-availability of funds as sought by the States, welfare oriented schemes have been hampered;

(d) if so, the details thereof; and

(e) the steps taken by the Centre to provide additional financial assistance to States?

Answer given by the minister

THE MINISTER OF STATE OF THE MINISTRY OF SMALL SCALE INDUSTRIES, MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS, MINISTER OF STATE IN THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE DEPARTMENT OF ATOMIC ENERGY AND SPACE (SHRIMATI VASUNDHARA RAJE)

(a) to (e) A Statement is laid on the Table of the House.

Statement referred to in reply to Part (a) of the Lok Sabha Starred Question No 229 to be answered on 05.12.2001.

NORMAL CENTRAL ASSISTANCE ALLOCATED TO STATES FOR ANNUAL PLANS 1999-2000 & 2000-01

(Rs. Crore)
Sl. States/UTs 1999-2000 2000-01 No.
1. Andhra Pradesh 3,210.50 3,661.06

2. Arunachal Pradesh 574.17 609.50

3. Assam 1,616.11 1,686.56

4. Bihar+ 2,390.27 2,369.04

5. Goa 90.11 127.92 6. Gujarat 1,433.77 1,462.40

7 Haryana 1,022.31 655.52

8. Himachal Pradesh 809.71 810.89

9. Jammu & Kashmir 2,631.98 1,963.26 10. Karnataka 1,612.41 1,753.36 11. Kerala 873.80 882.98 12. Madhya Pradesh+ 2,184.32 2,134.01 13. Maharashtra 1,501.88 1,946.79 14. Manipur 506.08 565.86 15. Meghalaya 421.77 393.59 16. Mizoram 384.67 401.2617 17. Nagaland 394.76 424.59 18. Orissa 2,031.11 1,915.09 19. Punjab 742.73 871.21 20. Rajasthan 1,648.12 1,460.53 21. Sikkim 329.92 263.01 22. Tamil Nadu 1,574.80 1,644.18 23. Tripura 656.12 633.70 24. Uttar Pradesh+ 6,175.76 5,891.10 25. West Bengal 3,315.58 2,780.19
Note: + Undivided MP,UP and Bihar


Statement referred to in reply to Part (b) of the Lok Sabha Starred Question No 229 to be answered on 05.12.2001

Normal Central Assistance is allocated on the basis of Gadgil-Mukherjee formula approved by the National Development Council (NDC). Planning Commission provides assistance to states according to this formula within the overall availability of the resources with the Union Government.

Statement referred to in reply to Part (c) and Part (d) of the Lok Sabha Starred Question No 229 to be answered on 05.12.2001

Welfare oriented schemes of State Government are financed by the States` own resources and partially by the Central Assistance. Normal Central Assistance is provided as per formula, and Additional Central Assistance is provided for specific purposes. States are encouraged to augment their own resources by additional resource mobilisation should they need to.

Statement II referred to in reply to Part (e) of the Lok Sabha Starred Question No 229 to be answered on 05.12.2001

STEPS TAKEN TO PROVIDE ADDITIONAL ASSISTANCE TO STATES

In addition to Normal Central Assistance provided to States under Gadgil- Mukherjee formula and Special Programmes for their Plan Programmes, necessary steps are taken by the Central Government to provide additional financial assistance to States as under:-

1) Additional Central Assistance for Externally Aided Projects: States that secure foreign loans and grants for specific projects are given additional financial assistance from this head. Since foreign donors usually release loans and grants on a reimbursement basis, it is necessary to provide the initial expenditure required for such projects, which are later adjusted from the foreign loan actually received by the State concerned.

2) Additional Financial Assistance for other Projects: Additional Central Assistance is also given to States for specific programmes that are of importance to the States concerned, for example, Border Area Development Programme, Prime Minister`s Gramodaya Yojana, Accelerated Irrigation Benefit Programme, Accelerated Power Development Programme, Slum Development Programme. To avail themselves of this facility, States are required to submit their detailed proposals to the ministry/Department administering the programme. The Ministries concerned examine these proposals in detail and made releases of assistance accordingly.

3) Special Plan Assistance: Additional financial assistance is also given to States, which face special problems, to assist them in their development efforts. These are not necessarily project specific. To avail themselves of this facility, States submit their proposals to the Planning Commission that examines them in consultation with the Ministries concerned and the Ministry of Finance.