Aadil Mir, ITANAGAR, Jun 24: In a significant development during high level meeting
the chairman of 14th financial commission Dr Y V
Readdy has assured a special package to government of Arunachal Pradesh
for its fiscal challenges, he also assured that all the issues raised by the
State government would get “due attention”
in the deliberation of the Commission, which will finalize its recommendations
by October next after completing its discussions with all the state
governments, GoI and relevant stakeholders.
While addressing high level meeting of the 14th FC
with the State government at Banquet Hall Dr Reddy applauded the ‘Vision 2020’ as envisaged by the government of
Arunachal Pradesh focusing on key areas like education, power, tourism, agriculture
and related sectors.
While observing the huge responsibilities
shouldered by the State government in terms of being main employer due to lack
of other economic activities in the state, its border status affecting access
to external funding, short working season affecting the progress of development
projects, scattered population and cost of conservation of forest resources,
sizable forest coverage and its contribution to the country and the loss of
revenue due to Apex Court of India ban on timber operation, connectivity and
other issues, Reddy said, “Despite all these challenges the progress is being
sustained.” Further, he said that the Commission has also viewed the GoAP
request for significant increase in grant devolution and state specific needs.
Meanwhile Chief Minister Nabam
Tuki projecting a total demand of Rs 85001.16 crore as grant in a
memorandum pleaded the Commission for “special”
recommendation for a fiscal stimulus package for the state in helping it
tide over the fiscal challenges because of the gap in the Non-Plan Revenue
Deficit Grant recommended by the 13th Finance Commission and the actual
expenditure, which is an inheritance from the Union Territory days.
As a major chunk of non-plan expenditure is on
salary and wages, Tuki apprised that the implementation of the 6th Central Pay Commission Package to the State
govt employees along with arrears, enhanced DA installments, up gradation of
all Group-D employees to Group–C and MACP Scheme for all employees contributed
to the enhanced salary bill. The total gap on account of NPRE was higher than
that the 13th FC estimate by Rs 6799 crore, he said.
Seeking continued support of the 14th Finance
Commission for accelerating the pace of development in the hilly state, the
Chief Minister informed that as per the CAG Report on State and Union Finances
for 2011-12, the state’s per capita expenditure on social services, health,
education, agriculture, transport and rural development has been rated as
one of the highest in the country.
Tuki also informed that intensive efforts are being
made in various areas for improving the fiscal
position of the state through fiscal discipline measures, steps to
increase the tax and non-tax revenue of the State, institutional reforms saying
“the tax revenue grew from Rs 98 crore in 2007-08
to Rs 442 crore in 2013-14, registering a growth of 220%.”
Pointing at the ecological service provided by the
State with 82% forest cover, as a major carbon sink and helping
mitigate global warming, he sought “rewarding
and compensating” steps by providing a
“special” fund for the loss suffered due to conservation.
Apprising that hydro-power
potential of the state can meet upto 40% of the nation’s energy demand,
Tuki informed that one of the major constraints in this sector is the inability
of the state to contribute equity in the projects where the state share ranges
from 11% to 26%, while projecting the overall equity requirement at Rs13,000
crore. He added that hydro power sector is a revenue generating sector which
can make the state “financially self-sufficient”.
Chief Secretary Ramesh Negi said that AP
has been a late starter in developmental process and its geographical
bottlenecks has stalled development initiatives. Infrastructure, connectivity,
transportation and power are the thrust areas.
Source: 'Themetrolive'
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