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Montek Ahluwalia justifies Centre's package for different states | | Responding to Tamil Nadu Chief Minister J Jayalalithaa's disappointment with the Centre's annual economic package for her state, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the plan assistance is distributed
to different states according to the Gadgil-Mukherjee formula, and emphasized
that the weaker states needing more support get a much larger percentage. "The
Planning Commission plan assistance is distributed to different states according
to the Gadgil-Mukherjee formula. And the stronger states, more established states
get a much smaller percentage, whereas the weaker states that need much more support
get a much larger percentage," said Ahluwalia. "So, it is certainly true that
for the most advanced states like Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat
, the plan finance come from themselves. The purpose of an annual plan discussion
is to be able to discuss with the states that what their priorities are, how well
they are implementing many central schemes," he added. The Gadgil formula was
formulated with the formulation of the fourth five-year plan for the distribution
of plan transfers amongst the states. It was named after the then deputy chairman
of the Planning Commission Dr. D.R. Gadgil. Gadgil formula was adopted for distribution
of plan assistance during Fourth and Fifth Five Year Plans. Ahluwalia further
said the Central Government gives money to different states also through several
centrally-sponsored schemes. "The Central Government gives money to states not
just through plan assistance, but also through centrally-sponsored schemes, the
National Rural Health Mission, the Sarva Siksha Abhiyaan, Mahatma Gandhi National
Rural Employment Guarantee. All these money goes to the states, spent by the states;
but it doesn't show in the state budget," he said. Jayalalithaa had earlier on
Monday hit out at the Planning Commission for its ever-increasing tendency to
dictate terms to states on spending "their own money". Jayalalithaa, who met Ahluwalia
here on Monday, questioned the utility of the annual exercise of finalising budgets
for states in consultation with the planning commission. Jayalalithaa after the
meeting said that the Centre had extended a help of just Rs. 3,000 crore in the
total plan of Rs. 28,000 crore for 2012-13. "The annual plan outlay for Tamil
Nadu for 2012-13 has been fixed at 28,000 crore rupees. This is a nineteen percent
increase over last years' plan outlay, but here out of these 28,000 crore rupees,
only 3000 crore rupees is from the Centre; the rest of it is Tamil Nadu's own
money," she said. Expressing her unhappiness over the Central Government's assistance,
Jayalalithaa said that the Centre sidelined all her demands for special package
for her state. "We have asked for special assistance, additional assistance under
various heads but that was not forthcoming ;so what this entire exercise amounts
to is that we have come all the way to Delhi to have discussions and meetings
with the union Planning Commission so that they can tell us how to spend our own
money," she said. It may be recalled here that Gujarat Chief Minister Narendra
Modi had also expressed his disappointment with the central funds allocated to
his state.
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