Developed By: iNFOTYKE
Central fund for Meghalaya to increase by 10-15 pc, says Sinha l‘90:10 funding pattern to continue’
SHILLONG: Allaying popular perception regarding Meghalaya’s financial health, Union Minster of State for Finance Jayant Sinha has applauded Mukul Sangma-led government for the state’s strong fiscal position saying “GDP is growing at 15 per cent per year which is extraordinary.”
Addressing newsmen here on Monday after a review meeting on implementation of Central schemes namely Pradhan Mantri Jan Dhan Yojna, CSS and other programmes, he said that fiscal deficit of Meghalaya is below 3 per cent.
Reacting to a query, he said that Central Government earlier was providing funds under various heads but now those pattern of funding has been replaced by the 14th Finance Commission by way of unconditional devolution and added that that Meghalaya’s share of Central tax devolution in the last fiscal was Rs. 3804 crore and during 2015-16 the State’s share would jump up to Rs. 4014 crore.
“Every year the State’s share of Central taxes will increase by about 10 per cent,” he added.
Stating that Meghalaya has tremendous potentials for hydro power projects, he said that the Centre was ready to provide necessary assistance “if the State Government comes up with a good proposal.”
When asked about the utilization of Central funds by Meghalaya, he said that the state is doing quite well and it has been able to attract Asian Development Bank for investment.
“All development expenditures are being monitored,” he said.
Funding pattern: The Union Minister informed that the Central Government has agreed to continue to 90:10 funding pattern for the Northeastern states for several Central Government projects.
“The Central Government has “largely resolved” to continue with the 90:10 funding pattern for 17 core Centrally-sponsored Schemes (CSS) and the 80:20 pattern will be followed for non-core CSS schemes for the NE states.
Moreover, Sinha informed Rs 2400 crore was also set aside for Development of North Eastern Region (DoNER) Ministry.
Implementation of GST: Sinha said that the Goods and Services Tax Bill, once passed by Parliament, would benefit the Northeastern states.
He hoped that the Bill would get the approval in the Parliament during the winter session, so that it could be implemented in the country by 2016.