Lok Sabha Question No. 2181 (UNSTARRED), answered on 2015-12-11
Subject: Allocation of Additional Funds
Ministry: FINANCE
Asked by: RITA TARAI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE PLAN FINANCE-I DIVISION

## LOK SABHA UNSTARRED QUESTION NO. 2181

TO BE ANSWERED ON FRIDAY THE 11 th  DECEMBER 2015 / 20 AGRAHAYANA, 1937 (SAKA)

## ALLOCATION OF ADDITIONAL FUNDS

## 2181.  SHRIMATI RITA TARAI:

Will the Minister of FINANCE be pleased to state:

- a)  whether  the  Government  proposes  to  provide  special  assistance  out  of  the  funds allocated to the National Institution for Transforming India (NITI) Aayog to keep up the on-going programmes in the States;
- b)  if so, the details thereof;
- c)  whether the States are unable to meet expenditure for Judiciary, police, maintenance and  forest  and  environment  as  suggested  by  the  14th  Finance  Commission  post increased revenue allocation to States; and
- d)  if  so,  the  details  thereof  along  with  the  steps  taken  by  the  Government  including allocating additional funds in this regard?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) and (b): The Special Assistance during 2015-16 (BE) has been provided under Demand No. 37 of Ministry of Finance. The Central Government has approved allocation of the Special Assistance, so provided, during 2015-16 (BE), as Annexed.

(c) and (d): FFC recommended the increase in the share of tax devolution from 32% to 42% of the divisible pool with the primary objective of increasing the flow of unconditional transfers to  the  States.  Post  FFC  recommendations,  the  devolution  of  taxes  to  States  is  expected  to increase by Rs. 186150 crore during 2015-16 over 2014-15. Keeping in view the ecological benefits  and  the  need  to  support  States  in  shouldering  the  responsibility  of  managing  the environment, FFC has considered area covered by forest as one of the important criteria for horizontal devolution. The devolution formula, thus, captures both revenue and cost disability and  also  enables  the  States  to  consider  forests  as  a  national  treasure  that  needs  to  be protected. FFC in its report has inter-alia urged the States Government to use the additional Fiscal Space provided in the tax devolution to meet the expenditure requirements for General Administration (Judiciary and Police) and for maintenance expenditure of Capital Asset. FFC has recommended revenue deficit grants of Rs. 194821 crore during its award period 2015-20 (including  Rs.  48906  crore  recommended  for  2015-16)  for  11  States  assessed  to  be  post devolution Revenue Deficit States. Besides, FFC has recommended grant in aid of Rs. 287436 crore  to  States  for  Local  Government  (Urban  Local  Bodies  including  Municipal  Corporations and Gram Panchayats).

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## Annex referred to in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 2181 for answer on 11.12.2015

Rs. in crore

| S. No.   | Proposed support in brief                                                                                                                                                                                                                                                                                                |   Approved amount |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
| 1        | One time grant towards earlier sanctioned projects under BRGF- State Component (including KBK districts of Odisha , Special Plan for Bihar, Special Plan for West Bengal, Bundelkhand package for MP&UP, PMRP 2004 & Flood Rehabilitation Plan 2014 for J&K, Uttarakhand Medium & Long term Reconstruction Package 2013. |              4950 |
| 2        | One time assistance to areas covered under Sixth Schedule of the Constitution.                                                                                                                                                                                                                                           |              1000 |
| 3        | Irrigation projects                                                                                                                                                                                                                                                                                                      |              2800 |
| 4        | One time assistance towards support for LWE districts                                                                                                                                                                                                                                                                    |              1000 |
| 5        | One time assistance towards support for developing water sources for arsenic and fluoride affected areas.                                                                                                                                                                                                                |              1000 |
| 6        | One time assistance towards support for States covered by Andhra Pradesh Re-organization Act.                                                                                                                                                                                                                            |              2000 |
| 7        | One time assistance towards support to States to deal with post 14 th Finance Commission related issues (for projects to be posed by the States)                                                                                                                                                                         |              1500 |
| 8        | Additional fund recommended for ICDS, NRDWP and Dept. of Health & Family Welfare                                                                                                                                                                                                                                         |              4750 |
| 9        | One time assistance for Modernization of State Police Forces                                                                                                                                                                                                                                                             |               700 |
| Total    | Total                                                                                                                                                                                                                                                                                                                    |             19700 |