eGovernance in India

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Centre proposes new funding plan for NE region

Posted by egovindia on July 31, 2006

Centre proposes new funding plan for NE region

Aizawl | July 30, 2006 4:50:18 PM IST

Following the plea by various political leaders in the NE states, the Centre has decided to approach Planning Commission to fund the shortfall in the matching state share in the region.

The issue of revision of the sharing formula from 75:25 to 90:10 between Centre and NE states is a long pending demand, the official sources here today stated.

The states had been often failing to utilise the Central resources mainly because it defaulted in contributing the matching share.

The Union Rural Development Ministry, in a report has also admitted that the proposal to change the funding pattern was still pending, as the Planning Commission has so far not taken a final decision.

In order to effect early decision, the Ministry has taken up with Planning Commission for funding of the shortfall in matching state share of NE states from NLCPR.

According to the plan, the Parliamentary Standing Committee attached to the Rural Development Ministry had recommended that the plea of the NE states to change the funding pattern to 90:10 be expedited.

The Rural Development Ministry’s status report is but the latest in a series of confirmation about the Centre’s new strategy to fund all new projects in the North-east from the NLCPR.

However, the impression that was sought to be conveyed was that the new projects would be funded by additional Central resources, the sources added.

UNI SNR BA AB 1334

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