GUWAHATI: Assam needs to grow at more than double digit numbers for enabling its per capita income and some other indicators in health and particularly outcomes in education sector to catch up with the All India average, said N K Singh, Chairman 15th Finance Commission here after holding interactive sessions with the State government, representatives of various political parties and local bodies.
State had made significant progress in last couple of years in achieving high growth rates in revenue generation and maintaining macro-economic stability specially in maintaining debt to GSDP ratio, he said. State had an enormous challenge in improving the quality of expenditure further. It was recognized by the Govt. of Assam that despite an increase in the capital expenditure, much more is desired to fill the gap in expenditure needs for infrastructure.
Chairman noted that significant improvements had been made in the working of the Power sector, not only in the field of availability of power but also in the field of reducing T&D losses and achieving 100% metering. Assam has already subscribed to the UDAY bonds which is appreciable.
Commission empathize with the problems faced by the State of Assam in the form of destruction caused by floods, difficulties in training the river Brahmaputra and other flood management systems. Commission appreciated the creative idea given by Chief Minister Sarbanand Sonowal regarding creation of embankment cum circular road to protect Majuli Island and stated that these will be considered in the broader framework of Disaster Relief and Management.
Commission noted the complex issues and the uncertainty faced by the state due to GST implementation. While the outcomes needed to be watched further, the Govt of India has assured a 14% revenue buoyancy for four years which covers the first year of the award period of the 15th Finance Commission. The abolition of Planning Commission and the new financing mechanisms need to be considered to ensure that the ongoing growth momentum continues.
