Lok Sabha Question No. 1361 (UNSTARRED), answered on 2019-07-01
Subject: Funds to North Eastern States
Ministry: FINANCE
Asked by: Vincent H Pala

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO-1361

ANSWERED ON-01.07.2019

## FUNDS TO NORTH EASTERN STATES

## 1361.   SHRI VINCENT H. PALA

Will the MINISTER OF FINANCE be pleased to state:

- (a) whether the Government has allotted and released any funds out of the turn from the Ministry of Finance to the North Eastern States during the last five years;
- (b) if so, the details thereof;
- (c) the details of share of each State Government in North East India from the Centre and the details of calculation and formula using for allotment of funds to North Eastern States; and
- (d) the  details  of  amount  allotted  and  released  to  North  Eastern  States  for  subsidies  in industries for the last ten Years?

## ANSWER

## THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

(a & b) Year-wise  details of funds  released to North  Eastern  States under  'Special Assistance' during Financial Year 2015-16 to Financial Year 2018-19 are furnished below: -

( ` crore)

| State             |   2015-16 | 2016-17   | 2017-18   | 2018-19   |
|-------------------|-----------|-----------|-----------|-----------|
| Arunachal Pradesh |     19.56 | -         | 33.99     | 309.73    |
| Assam             |    551.36 | 945.90    | 176.06    | -         |
| Manipur           |     46.84 | 150.00    | 126.00    | -         |
| Meghalaya         |    267.4  | -         | 65.97     | -         |
| Mizoram           |     20.83 | -         | -         | -         |
| Nagaland          |     37.23 | -         | 53.75     | 226.80    |
| Sikkim            |    187    | 500.00    | 36.00     | -         |
| Tripura           |    296.15 | 150.00    | 300.00    | 1500.00   |

- (c ) The share, calculations and formula used for allocation of net tax proceeds from the Central  Government to  North-East  States,  are  recommended  by  different  Finance Commissions.    The  details  of  the  same  and  funds  released  to  the  North  Eastern States  from  2014-15  to  2018-19  by  way  of  Finance  Commission  Devolution  and Grants during the last five years are in Annexure-I.
- (d) The details of amount released to North Eastern States for subsidies in industries under the Transport Subsidy Scheme (TSS), 1971/ Freight Subsidy Scheme (FSS), 2013 and North East Industrial and Investment Promotion Policy (NEIIPP), 2007 for the last ten years are at Annexure-II.

******

## A. Releases of  Share of Union Taxes and Duties made to the North Eastern States

## (` Crore)

|          |                   | 13th FC Share Percentage       | 13th FC Share Percentage   | Actual   | 14th FC Share Percentage      | 14th FC Share Percentage   | Actual   | Actual   | Actual    | Actual   |
|----------|-------------------|--------------------------------|----------------------------|----------|-------------------------------|----------------------------|----------|----------|-----------|----------|
| Sl. No . | State             | All taxes (excl. servi ce tax) | servic e tax               | 2014-15  | All taxes (excl. service tax) | servi ce tax               | 2015-16  | 2016-17  | 2017-18   | 2018-19  |
| 1        | Arunachal Pradesh | 0.328                          | 0.332                      | 1109.98  | 1.370                         | 1.431                      | 7075.58  | 8388.30  | 9238.79   | 10436.14 |
| 2        | Assam             | 3.628                          | 3.685                      | 12283.71 | 3.311                         | 3.371                      | 16784.88 | 20188.64 | 22301.5 2 | 25215.85 |
| 3        | Manipur           | 0.451                          | 0.458                      | 1526.95  | 0.617                         | 0.623                      | 3142.42  | 3757.13  | 4154.29   | 4698.59  |
| 4        | Meghalaya         | 0.408                          | 0.415                      | 1381.69  | 0.642                         | 0.65                       | 3276.46  | 3911.05  | 4323.15   | 4889.07  |
| 5        | Mizoram           | 0.269                          | 0.273                      | 910.67   | 0.460                         | 0.464                      | 2348.11  | 2800.63  | 3097.04   | 3502.96  |
| 6        | Nagaland          | 0.314                          | 0.318                      | 1062.69  | 0.498                         | 0.503                      | 2540.72  | 3032.63  | 3353.09   | 3792.41  |
| 7        | Sikkim            | 0.239                          | 0.243                      | 809.33   | 0.367                         | 0.369                      | 1870.28  | 2233.30  | 2470.52   | 2794.67  |
| 8        | Tripura           | 0.511                          | 0.519                      | 1730.13  | 0.642                         | 0.648                      | 3266.02  | 3909.12  | 4322.54   | 4888.95  |
|          | TOTAL             |                                |                            | 20815.15 |                               |                            | 40304.47 | 48220.80 | 53260.9 4 | 60218.64 |

As per accepted recommendation of the 13th Finance Commission, the States' share has been fixed at 32% of the net proceeds of sharabel Central Taxes.

As per accepted recommendation of the 14th Finance Commission, the States' share has been fixed at 42% of the net proceeds of sharable Central Taxes.

## B. Releases of  Finance Commission Grants to the North Eastern States

|         |                   | Actual   | Actual   | Actual    | Actual    | (` Crore) Actual   |
|---------|-------------------|----------|----------|-----------|-----------|--------------------|
| Sl. No. | State             | 2014-15  | 2015-16  | 2016- 17  | 2017- 18  | 2018-19            |
| 1       | Arunachal Pradesh | 795.13   | 102.77   | 171.13    | 124.09    | 124.57             |
| 2       | Assam             | 1130.39  | 2943.97  | 1728.9 2  | 1239.4 5  | 932.20             |
| 3       | Manipur           | 1827.44  | 2125.28  | 2177.4 8  | 2145.0 5  | 2103.07            |
| 4       | Meghalaya         | 752.74   | 639.60   | 557.50    | 428.30    | 225.60             |
| 5       | Mizoram           | 1055.00  | 2165.84  | 2330.8 8  | 2481.5 6  | 2616.68            |
| 6       | Nagaland          | 2003.15  | 3212.00  | 3460.0 0  | 3709.9 0  | 3954.90            |
| 7       | Sikkim            | 515.48   | 46.34    | 65.80     | 67.21     | 70.93              |
| 8       | Tripura           | 1001.96  | 1174.55  | 1205.1 1  | 1189.2 8  | 1131.10            |
|         | TOTAL             | 9081.29  | 12410.35 | 11696. 82 | 11384. 84 | 11159.05           |

Annexure-II

## Details  of  subsidies in industries released to North Eastern States

( ` Crore)

| Name of Scheme                                                          |   2009- 10 |   2010- 11 |   2011- 12 |   2012- 13 |   2013- 14 |   2014- 15 |   2015- 16 |   2016- 17 |   2017- 18 |   2018- 19 |
|-------------------------------------------------------------------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|
| Transport Subsidy Scheme (TSS), 1971/Freight Subsidy Scheme (FSS), 2013 |     404.83 |     400    |     331.03 |     222.73 |        220 |     124.49 |         60 |         70 |     599.71 |     932.26 |
| North East Industrial and Investment Promotion Policy (NEIIPP), 2007    |      71.15 |      74.99 |      60    |      99.82 |        150 |     221.9  |        200 |        170 |     782.99 |     528    |