Assam gets no concessions on security expenses

NEW DELHI, July 28: In what can be described as a major setback for Assam, the 11th Finance Commission has not given any special concessions to tide over its financial crisis resulting from fighting insurgency. While Assam, for that matter other insurgency affected north-eastern states were not shown any special favours, the same is not the case with Jammu&Kashmir and Punjab, as the two states were given enough support to sort out their financial mess. "Expenditure incurred on security by the state of Jammu and Kashmir prior to 1991, may be assessed by the Ministry of Home Affairs (MHA) and the Ministry of Finance in consultation with the state government and a debt relief to the extent of such expenditure may be provided to the state. As far as Punjab is concerned, a moratorium on the instalments of debt and the interest, relating to the special term loan only, due for repayment, may be given during the period 2000-05 it recommended. The expenditure incurred on security may be worked out by the MHA in consultation with the states of Punjab and the Ministry of Finance and to the extent the state is entitled for reimbursement on account of security related expenditure, the relief on debt may be given to the state after the period of moratorium is over and after adjustment of any waiver earlier given, it further suggested. Assam too like Punjab had sought a moratorium on repayment of Central loans, besides demanding a one-time sanction of Rs 500 crore to tide over of recurring financial crisis, of which there was not mention.