Post News Network
Bhubaneswar, August 24: Stating the prediction of loss in Central Grant-in-aid following 14th finance commission recommendation as absolutely true Finance minister Pradip Kumar Amat Monday told the House the increased devolution of fund from 32 per cent to 42 per cent, recommended by the commission, would result in deficit of `2,149 crore to the state exchequer in the 2015-16 fiscal.
Replying to a question asked by BJD member Amar Prasad Satpathy, Amat said the commission has restricted the Grant in Aid to two specific areas such as Grants for local bodies and state disaster management fund. But the commission hasn’t recommended release of sector specific and state specific funds that
used to be received by the state as per the recommendations of 13th finance commission.
Likewise, he said, that the state would bear a huge financial liability due to delinking of eight major centrally sponsored scheme and due to the changed sharing patter of 33 centrally proposed schemes.
All these would force the state to bear an additional liability of `8,037 crore,
he informed.
A further segregation of this financial constrain on the state as presented by Amat reveals that under 13th finance commission the state used to receive `1,190.91 crore’s aid as sector specific
and state specific grant which would not be given to the state anymore following the recommendations of the new
commission.
Similarly, after delinking of eight major schemes from central funding the state would loss `1,854.05 crore in the current fiscal, while it would also loss `4,260.13 crore following changed sharing pattern of 33 national schemes.
The 14th finance commission has further scrapped the provision of `732.17 crore from April 2015 that our state used receive as Normal Central Assistance under Centre’s state plan.
However, due to the increase in devolution from 32 per cent to 42 per cent the state would receive around `5888 crore from centre. Thus, finance burden on state, though reduced, would remain at `2,149 crore in 2015-16 fiscal, Amat informed.
Amat said the following delinking of eight major schemes the state government has planned to run certain schemes from states own resources.