NEW DELHI, May 21 ? The hard-hit north-eastern States particularly Assam is likely to see a turn-around in the flow of funds in rural development sector, with the Centre contemplating to change the funding pattern to 90:10 from the prevailing 75:25. The likely shift in funding pattern by Rural Development Ministry to the one adopted by Planning Commission is in response to plea by States like Assam and a favoured recommendation by an inter-ministerial committee constituted by the ministry.
Notwithstanding the change in the funding pattern that is likely to lead to windfall of funds, estimated to increase by at least three times, the rural sector may not see a drastic change, as the Rural Development (RD) ministry is sceptical about the capability of the north eastern States to absorb such huge allocations. The reason for their scepticism, officials pointed out was the past track record of the States. For instance, in 2000-2001 the ministry earned a gross budgetary support of Rs 676 crore for the region, but the actual expenditure against the provision was only Rs 351.96 crore, while the balance amount went to the non-lapsable pool of Central resources.
In the last financial year, the ministry earmarked Rs 627.50 crore for the region but the States could utilise only 76.78 per cent of the allocation till March. Besides, another cause of worry for the ministry is diversion of funds by the fund-starved States. But despite such scepticism, the inter-ministerial committee appointed by the RD Ministry in its recommendation has favourably recommended that the request of the States be considered. ?Considering the special category status of the north eastern States there is a case for agreeing to request for change in the funding pattern from 75:25 to 90:10 and that the Planning Commission may favourably consider it,? the committee suggested.
The Planning Commission, taking into account their respective poverty ratios, which could be devised on the basis of the latest National Sample Survey Organisation (NSSO) survey, may review the change in the criteria for the allocation of funds to individual north eastern States it said. According to sources, the recommendations of the inter-ministerial committee have been favourably received in the Planning Commission and Department of Development of North Eastern Region (DONER) and an announcement to the effect is expected shortly, sources revealed.
However, indications were that the change of funding pattern might come with strings attached, as the Centre was bent on plugging the loopholes to prevent diversion of funds by the States. It may be recalled here that Chief Minister, Tarun Gogoi faced with drying up of resources for undertaking rural development schemes propped up the demand for revising the funding pattern fixing it along the pattern adopted by the Planning Commission to allocate funds for Special Category States. The current pattern of funding requires the States to bring 25 per cent, while the Rural Development Ministry contributes 75 per cent.