Lok Sabha Question No. 1139 (UNSTARRED), answered on 2021-07-26
Subject: Financial Package for North Eastern States
Ministry: FINANCE
Asked by: Saikia Dilip

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO.1139 TO BE ANSWERED ON MONDAY 26 th  JULY, 2021 [04SRAVANA, 1943 (SAKA)]

## 'Financial Package for North-Eastern States'

## No. 1139.  Shri Dilip Saikia:

Will the Minister of Finance be pleased to state:

- (a) the  details  of  financial  losses  incurred  on  account  of  pandemic  in  North  -  Eastern states including Assam;
- (b) whether the Union Government has formed any group to make an assessment thereof;
- (c) if so, the details thereof;
- (d) Whether the Government proposes to provide any special financial package to NorthEastern States including Assam in this regard; and
- (e) if so, the details thereof;

## ANSWER

## THE MINISTER STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)   Financial losses on account of the pandemic for India, including the North-Eastern States (Assam  included)  can  be  inferred  from  the  latest  estimates  of  GDP  released  by  National Statistical Office (NSO), Ministry of Statistics and Program Implementation (MoSPI) on 31 st May 2021. India's real Gross Domestic Product (GDP) is estimated to have contracted by 7.3 per cent during FY 2020-21. This contraction reflects the unparalleled effect of the COVID19 pandemic and the containment measures that were taken to control the pandemic for the country.

(b) &  (c)  Ministry of Finance assesses the economic impact of the pandemic on a regular basis.  Consequently,  in  FY  2020-21,  Government  had  announced  a  special  economic  and comprehensive package of Rs. 29.87 lakh crore under Atmanirbhar Bharat (ANB) to combat the  impact  of  the  COVID-19  pandemic,  to  revive  economic  growth  and  to  bolster employment. Union Budget 2021-22 has announced number of measures to support broadbased  and  inclusive  economic  development  including  a  34.5  percent  increase  in  capital expenditure and 137 percent increase in health expenditure. Government announced a relief package of Rs. 6.29 lakh crore in June 2021 to strengthen public health and provide impetus for growth and employment measures.

(d)  &  (e)    North  Eastern  Council  (NEC) under  Ministry of Development of North Eastern Region  (MDoNER)  released  ₹.  26.09  crore  as  untied  grant  to  8  North  Eastern  states  for activities related to combating Covid-19 pandemic. Also, NEC sanctioned grant-in-aid of Rs. 36.49 crore for livelihood Generation of migrant workers out of which Rs. 21.59 crore were released.  In  addition,  MDoNER  under  the  North  East  Special  Infrastructure  Scheme (NESIDS) sanctioned 8 projects in 7 North East states (except Sikkim) during the 2020-21 costing  Rs. 219.58 crores for creating health infrastructure relating to COVID-19 of which Rs.  77.63  crores  has  been  released.For  effective  response  and  management  of  COVID-19 pandemic  and  a  step-up  in  capital  expenditure  Government  has  frontloaded  the  release  of assistance  under  the  back-to-back  loan  in  lieu  of  GST  Compensation  Shortfall  during  FY 2021-22 in a single instalment to eligible States/UTs with Legislature. Under  this mechanism,  Government  has  released  an  amount  of  ₹836.81  cr  to  Assam,  ₹66.51  cr  to Meghalaya and 189.15 cr to Tripura recently.

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