From Our Special Correspondent
New Delhi: Meghalaya Chief Minister Dr Mukul Sangma has impressed upon the Centre for generous consideration in augmenting the Central releases so that the state could meet the revenue expenditure gap and invest more funds towards infrastructure development, social sector and governance reforms.
Dr Sangma, who attended the the North East Chief Ministers meeting chaired by Finance Minister Pranab Mukherjee at New Delhi, said the investment strategy would enable the State in additional employment generation and improving the service delivery system.
Dr Sangma said Meghalaya has a stress free economy due to prudent fiscal policies and austerity measures but this has affected developmental work and employment opportunities.
The Chief Minister said the revenue deficit grant recommended by the 13th Finance Commission remained at Rs.819/- crore in 2012-13 projected at Rs.708/- next fiscal and Rs.571/- crore the next year. “The state will not be able to bear the additional expenditure out of its own resources and the Centre should increase this grant by at least 10 per cent,” he said.
Dr Sangma, who holds the finance portfolio, also demanded that the RBI and NABARD should not enhance their rate of interest and carry the same rate of interest for the projects in disadvantaged Northeastern states. He demanded intervention from the Centre in this matter. The Chief Minister also demanded that the Centre should reset the interest on loans from National Social Security Fund from the commencement of date of award of the 13th Finance Commission. It should also reset the loans contacted from 2007-08 onwards from 9.5 percent to 9 percent. Dr Sangma also stressed the need for review of interest rates on RIDF loans which has recently been increased from 6.5 per cent to 7.5 per cent from April 1, 2012. He further urged the Union government to consider resetting of interest rates on NSSF loans from the commencement date of 13th Finance Commission recommendations instead of the date of notification of the Meghalaya FRBM (Amendment) Act 2011.
Dr Sangma said the state has been able to bring down the debt GSDP ratio as well as the fiscal deficit by adopting prudent fiscal measures. In his reply, Mukherjee said the Centre is committed to the development of the Northeastern states and would continue to support the state governments in their development endeavours. He also called upon the chief ministers of the Northeastern states to participate in the Centre’s efforts to address economic and financial challenges. The Union Finance Minister appreciated the better fiscal management by most of the Northeastern States, as a result of which most States did not have to resort to overdraft. He declared that he has asked the income tax authorities to issue the notification for income tax exemption on permitted excise duty refunds for industries of the Northeastern states.The north eastern states, during the state finance ministers’ pre-budget meeting with Mukherjee in New Delhi in January, had demanded a special “connectivity and communication package” to attract investment and boost tourism and industrial development in the region. In Tuesday’s meeting they demanded a connectivity and communication package for the Northeastern states, without which there will be little possibility of industrialisation and investment to this region.
All the Chief Ministers of Northeastern states barring that of Tripura participated in the meeting. The Deputy Chairman of the Planning Commission Dr Montek Singh Ahluwalia also attended the meeting.