Union budget 2016-17 & NER

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Editor,

It is quite common for people of the north east to ask what benefits are there for the region whenever the union budget is presented. In this column we try to answer this question by highlighting the main provision of the Union budget 2016-17 for the region.

The budget has finally settled the vexed question of sharing pattern on central sponsored schemes between the Centre and the north eastern states.  Existing funding pattern for core of the core schemes which include MGNREGA, National Social Assistance Programme and Umbrella schemes for development of ST, SC, Backward Castes and Minorities have been retained.

Funding pattern for core schemes which include Pradhan Mantri Gram Sadak Yojana, Swatch Bharat Abhijan, National Health Mission, ICDS, Mid-day Meal Schemes and others will be at the ratio of 90:10 between the Centre and north eastern states. A good news for insurgency hit states of the region is the revival of funding under Modernization of Police Forces under core scheme which had been delinked from central funding in the last budget.

Another category of CSSs has been introduced in this year’s budget called optional schemes where fund sharing pattern will be at 80:20 between the Centre and the north eastern states. Border Area Development Programme which is common programme for many of the states in the region has been included here.

In terms of allocation, an amount of Rs. 33097 crore   has been budgeted to be spent in 2016-17 by 55 different Union ministries and departments in the region. This is about 12 percent more than the amount being spent by Union ministries and departments in 2015-16 as per revised estimates. Allocation by Ministry of Road transport to the region at Rs. 5000 crore for 2016-17 is the highest which is 20 percent more than previous year expenditure. Most surprising is the zero allotment made to the region by Ministry of Skill Development and Entrepreneurship which had allotted 150 crore in last year’s budget.

The plan allotment by Ministry for Development of Northeast Region stands at Rs. 2400 crore which is a marginal increase of Rs. 66 crore over the allotment in 2015-16. Of this, Rs. 1245 crore is earmarked as grants-in-aid towards supporting different schemes of state governments. Rs. 150 crore each has been allotted for NE roads Project and NE Livelihood project which are externally aided projects part funded by Asian Development Bank and World Bank respectively.

Other highlights of the budget are the allotment of special packages of Rs. 100 crore to Bodo Territorial Council, Karbi Anglong Territorial Council and Dima Hasao Territorial Council. Other projects that are specifically mentioned are the Pokyong airport in Sikkim for which Rs. 29 has been allotted by the Ministry of Civil Aviation and Rs. 75.00 crore to North Eastern Development Finance Corporation Limited for supporting microfinance programme and small scale sectors. Ministry of Tourism has also allotted money for development of the integrated development of tourist circuit in which North East circuit is included, while Ministry of Youth Affairs and Sports has allotted money to National Institute of Sports Coaching and Sports University in the North East in this year’s budget.

Yours etc.,

Sumarbin Umdor,

Via email

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