SHILLONG, NOV 9: Allaying the popular fear that funding to Meghalaya from the centre will be curtailed, union minister of state for finance Jayant Sinha instead informed that the state is going to see an increase of 10-15 per cent funds from the centre even as he patted Meghalaya for managing its economy well.
Sinha said that Meghalaya is doing very well economically adding, “The state’s GDP is growing 15 per cent a year, which I think is quite extraordinary, the fiscal position is quite strong, fiscal deficit of GDP is below 30 per cent which the centre in fact wanted.”
Speaking about the increase of centre fund to Meghalaya, Sinha said Meghalaya is going to see 10-15 per cent more money coming from the centre which will hugely benefit the state.
“For Meghalaya’s overall compared to what the state was getting every year, you are going to see 10-15 per cent more money coming from the Centre and that also coming unconditionally. This is going to be a huge benefit for the state,” Sinha told reporters.
Sinha is in the state and conducted a review meeting with the state government officials on the financial management and use of fiscal resources on Monday. According to him, the amount of money coming from the centre to the state (fiscal transfer) has gone up quite a bit for Meghalaya, as well as for other states.
When asked on how Meghalaya is going to be benefited from this raise, Sinha said, “What has happen is that the centre was providing funds under various heads previously and these are things normally like central assistance, additional central assistance for EAP, special central assistance. Those programmes have been closed down by the 14th Finance Commission and they have been replaced by unconditional devolution by the Finance Commission.”
He said if everything is taken into account, you will find that last year for example, the total amount released across under different heads to Meghalaya Rs 3804 crores.
“This year, the allocation 2015-16 is Rs 4014 crore, so it has gone up by about 200 crore this year, a little less than 10 per cent and it is growing every year so you will find that the overall award taking everything into account will be 10-15 per cent higher than it would have been otherwise,” Sinha stated.
Stating that development of NE region is a high priority for the NDA led government at the centre, Sinha said, “Prime Minister Narendra Modi wanted each of the central ministries to ensure whatever we can do to accelerate development in the NE should in fact be worked on.”
According to him, the hike in the fiscal transfer is one of the four ways the NDA government is working with each of the NE states including Meghalaya to accelerate their development.
Moreover, Sinha informed Rs 2400 crore was also set aside for Development of North Eastern Region (DoNER) Ministry.
“We have set aside Rs 2400 crore for DoNER to fund projects across the NE region,” he said while informing that he had also directed the additional chief secretary and principal secretary in-charge Finance to propose good projects in Meghalaya which can be funded by the centre.
Similarly, Sinha said it was also discussed during the meeting on projects which the centre can fund either through the central ministries or through a variety of other financing institutions.
“As you know, the Ministry of Road and Transport is building out highways in the NE, the Ministry of railway is trying to connect every states’ capital and variety of other ministries irrigation and so on by which we can fund major projects in each of the NE states,” Sinha said.
Citing that Meghalaya has great potentials in hydro power and agro processing, Sinha said, “If there are good hydro power projects that requires financing, I have suggested to the officers that they should prepare the DPRs so that we can see that how we can best finance these projects and take them forward,” adding “We can also finance to ensure that great potentials that Meghalaya has in pineapple, strawberries, jackfruits and others are properly utilize so that we can grow the agro processing industry.”
Meanwhile, Sinha expressed happiness as Meghalaya is doing very well economically.
“The state’s GDP is growing 15 per cent a year, which I think is quite extraordinary, the fiscal position is quite strong, fiscal deficit of GDP is below 30 per cent which we wanted to be,” he remarked.
According to him, the state is managing the treasury well and with the state fiscal position is strong, it is an opportunity for the state to grow even faster.- By Our Reporter
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