NEW DELHI, Dec 21 — The Assam Government has given up hope of achieving the 10th Plan projected growth rate of 6.2 per cent unless the Centre bankrolls its resources gap to the tune of Rs 17,000 crore. Addressing the 50th meeting of the National Development Council (NDC), Chief Minister Tarun Gogoi cautioned the Central Government that the 10th Plan is bound to get derailed, if it does not come forward to solve the acute financial difficulties faced by most of the States. At the outset, he pointed out that given the past track record of Assam in the last two five year plans in which it achieved a growth rate of 2.8 and 2.1 per cents respectively, the target fixed for the State at 6.2 per cent growth rate was a tall order. As per internal assessment done, the total resources required to achieve the growth rate target per annum during the 10th plan is estimated at around Rs 25,000 crore.
The resources estimated for the State for the plan period by the Planning Commission is Rs 8,315 crore only. So there is a resource gap of around Rs 17,000 crore. ‘Therefore, it will not be possible for Assam to achieve the projected growth rate of 6.2 per cent per annum unless there is additional infusion of fund,’ Gogoi said.With the Assam Development Report’s findings fresh on him mind, Gogoi struck a discordant note on the state of Assam’s economy. Assam Development Report makes it quite evident that the State is lagging far behind the national average in all socio-economic parameters including the per capita income. What is even more alarming is that the gap between per capita income of Assam and the national average is widening steadily, he pointed out. Gogoi claimed that major factors responsible for the declaration of the State’s economy were inadequate investments, low rate of capital formation, high growth rate of population, inadequate basic infrastructural facilities, weak communication linkages, pertual flood problem among others. If Assam and other backward states are to catch up with rest of the country, problems need to be addressed in the 10th Five Year Plan, he asserted.
Holding the Planning Commission partly responsible for the heavy debt burden of the States, Gogoi attributed it to the fact that the State plans are being financed mostly out of borrowings as determined by the Planning Commission. The gross fiscal deficit of Assam for 2001-2002 was 7.9 per cent of GSDP against the sustainable fiscal deficit estimated for 10th plan at 4.3 per cent of GSDP. The Chief Minister also reminded the Centre about the injustice done to the State by the Eleventh Finance Commission. Since it is not possible to reopen the Award, the State needs to be compensated in other ways so that Assam can come out of the financial stress, faced by it at present.
The Chief Minister also asked for enhanced funding of North Eastern Council (NEC) and the Department for Development of the North Eastern Region (DONER). The Chief Minister also underlined the need to analyse at to why the two hill districts continue to be underdeveloped with lack of basic infrastructure despite special areas programmes for the backward areas being launched with earmarked funds.