Lok Sabha Question No. 2298 (UNSTARRED), answered on 2016-05-06
Subject: Reduction of Central Assistance
Ministry: PLANNING
Asked by: KALIKESH NARAYAN SINGH DEO, PRABHAS KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO.2298 TO BE ANSWERED ON 06.05.2016

## Reduction of Central Assistance

## 2298. SHRI KALIKESH N. SINGH DEO: DR. PRABHAS KUMAR SINGH:

Will the Minister of PLANNING be pleased to state:

- (a) whether  the  Government  has  taken  cognizance  of  problems  faced  by  various  States  due  to discontinuance  and  reduction  of  central  assistance  for  developmental  programmes;  if  so,  the details thereof and corrective action taken by the Government in this regard;
- (b) whether  the  Government  proposes  to  restore  provisions  of  discontinued  and  reduced  central assistance  programmes  or  provide  special  package  to  continue  implementation  of  these programmes in backward regions of Koraput, Bolangir and Kalahandi (KBK) districts, if so, the details thereof and the time by which it is likely to be restored;
- (c) if not the reasons therefor;
- (d) whether the Government also proposes to provide assistance for States facing drought, water crisis and a heat wave, if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINISTRY OF PLANNING AND MINISTER OF STATE FOR DEFENCE

## (RAO INDERJIT SINGH )

- (a) Central Assistance to State Plans (CASP) for the financial year 2015-16 is Rs.2,16,108 crore against  Rs.2,70,829  crore  in  2014-15.  However,  14 th Finance  Commission  has  recommended  an increase of 10% in State's share of net proceeds of Union taxes and duties. This increase from 32% to 42%  underpins  the  laudable  objective  of  giving  the  States'  more  financial  autonomy.    While recommending  its  devolution  and  grants  to  States,  Finance  Commission  has  reckoned  the  total expenditure including Plan expenditure. The increased devolution undoubtedly increased the quantum of  untied  funds  available  to  the  States  which  could  be  utilized  by  the  States  for  various  schemes/ programmes. The combined provision for central transfers to the State from devolution of taxes, grantsin-aid and CASP in 2015-16 is about 21.1% more over 2014-15 (Table 1).
- (b) & (c) The Union Budget has, thereby, discontinued to provide funds under certain schemes like Normal Central Assistance, Special Central  Assistance,  Backward Region  Grant  Funds  (including assistance for KBK) etc. w.e.f. FY 2015-16. However, in FY 2015-16, Rs.132.07 crore was released to Odisha State from Special Assistance available under Demand No.37 of Union Expenditure Budget Vol.II as one time grant for completion of programmes in backward regions of KBK. In FY 2016-17, there  is  no  separate  budget  line  to  provide  funds  for  special  package  like  continuance  for implementation of the programmes such as assistance for KBK.
- (d)  &  (e)  Assistance  is  provided  to  the  States  in  case  of  calamities  like  cyclones,  droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloud bursts, pest attacks, cold waves and frost under the Disaster Management Act through National Disaster Response Fund (NDRF) & State Disaster Response Fund (SDRF). The releases under NDRF & SDRF during FY 2015-16 was Rs.12,452 crore and Rs.8,758 crore, respectively.

Table 1

| Items                              | 2014-15 Actual   | 2015-16 Revised Estimate   |   % change |
|------------------------------------|------------------|----------------------------|------------|
| Share in Central Taxes/ devolution | 3,37,808         | 5,06,193                   |       49.8 |
| Non plan Grants &Loans             | 77,198           | 1,08,312                   |       40.3 |
| CASP Transfers                     | 2,70,829         | 2,16,108                   |      -20.2 |
| Total                              | 6,85,835         | 8,30,613                   |       21.1 |

Source: Budget At a Glance, Union Budget 2016-17.

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Rs. crore