Friday, March 29, 2024
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Mukul seeks debt waiver for M’laya

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Royalty from coal should be increased: CM

 

From CK Nayak

 

Chief Minister Dr Mukul Sangma with Union Finance Minister Pranab Mukherjee in New Delhi on Wednesday.

New Delhi: Chief Minister Dr Mukul Sangma on Wednesday questioned the very fundamentals of the non-lapsable pool of funds and demanded that instead of earmarking 10 per cent of the budget of the ministries for the Northeast this may be kept in a separate pool, half of which should be given to states as special central assistance and the rest could be given to DoNER or NEC.

“The trends show that utilization of this fund is less than satisfactory,” Dr Sangma said while participating in the pre-budget meeting of the State Finance Ministers here on Wednesday.

It was only during the last session of the Parliament that DoNER Minister Paban Singh Ghatowar had expressed displeasure over utilization of funds from this corpus by the states.

Dr Sangma, who is also in charge State Finance department, demanded for reintroduction of debt swap or debt waiver schemes for special category states like Meghalaya. He also demanded for diversion of 20 per cent of Normal Central Assistance for balancing and downward revision of interest rates for special category states, which he felt, will help in sustainable fiscal health.

Emphasis for the Northeastern states must be on bridging the infrastructure gap besides accelerating a sustainable, inclusive and rapid economic growth for equitable economic development of the country, Dr Sangma said.

Meghalaya has to go the whole hog for bridging the infrastructure gaps in roads, railways and airports as well others sectors like health, education, agriculture, horticulture and tourism if it has to reach key fiscal targets, he added.

As far as Meghalaya is concerned the State has low economic growth with high dependence on central assistance. Still the hill state is trying to broaden its tax base and demanded that the royalty from coal, the main mineral in the State, should be increased.

The Chief Minister also demanded that for Externally Aided Projects funded by the Asian Development Bank, Meghalaya should be allowed to obtain the loan on back-to-back basis with same interest rate. This will also help in improving the fiscal health of the State, he stated.

Sharing his views at the meeting, Union Finance Minister Pranab Mukherjee said that world economy was passing through turbulent times and overall recovery from the impact of the global financial crisis has been fragile. The lingering Euro zone sovereign debt crisis has taken its toll and major economies of the world are fighting to get out of a recessionary phase, he said.

This has a cascading impact on India with high inflation and lesser growth rate, Mukherjee said. But looking forward, India’s growth fundamentals are strong and they look more attractive in a world challenged by problems of confidence and lack of growth.

The Union Finance Minister agreed that rapid development of infrastructure is the key to sustain high growth and strengthening the domestic growth dynamics of our economy. The Twelfth Plan is therefore, seeking to continue the thrust on accelerating the pace of investment in infrastructure, he said.

Mukherjee emphasized that in a federal country like India, states and the Centre complement each other in managing the fiscal policy and the economy.

He said that coordination between Centre and States is extremely vital for creating a conducive environment for growth and inclusive development in the country.

Other Finance Ministers highlighted the need for higher investment in providing affordable housing, drinking water facilities, irrigation, flood management, welfare of minority communities and those living in hills and the Northeast.

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