(a) whether several State Governments are facing financial
crisis;
(b) If so, the details thereof;
(c) Whether any specific proposals have been received from
States to bail out the States from financial crisis;
(d) If so, the details thereof, State-wise and the Government`s
response thereto;
(e) Whether the Government have formulated a special package for
revival of financial position of the State Governments which have
nearly reached a state of bankruptcy; and
(f) If so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) to (f): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA
STARRED QUESTION NO.24 FOR ANSWER ON 1ST MARCH,2002 REGARDING
FINANCIAL CRISIS FACED BY STATES.
(a) and (b): some States are facing financial problems because
of mismatches in receipts and committed expenditure.
(c) & (d) : State Governments periodically request Government of
India to bail them out of their financial crises. Government of
India has been releasing, where feasible, the monthly entitlements
of the States in advance, apart from ways and means advances to
improve their liquidity position.
(e) & (f) : In pursuance of Eleventh Finance Commission`s
recommendations, a Fiscal Reform Facility with an Incentive Fund
of Rs. 10607.72 crore, has been created by the Government of India.
The Medium Term Fiscal Reform Programme (MTFRP) of twelve States
has been approved so far under this Facility and Rs. 1284.89 crore
has been released to these States from the Fund. It is up to all
States, to draw up sustainable Fiscal Reforms Programmes, as a
solution to their financial crises.