Losing special status cost state Rs 3,300 crore: CM

Tribune News Service

Dehradun, May 27

Uttarakhand has started feeling the pinch of the reduction in funds for central schemes made under the new funding pattern devised on the 14th Finance Commission recommendations. The state has suffered a loss of Rs 3,300 crore during the ongoing financial year, Chief Minister Harish Rawat said here on Wednesday.

Rawat said Uttarakhand was the worst affected state by the change, as funds for Central schemes had been reduced drastically and the special category status of the state had been withdrawn.

He said under the special category status, the state had a special financial arrangement where the share of the Central government was as high as 80 per cent to 90 per cent. “With the special category status gone, all this has altered drastically. According to our assessment, we have suffered a loss of Rs 3,300 crore in this financial year. Under the new funding pattern, the state will have to provide 50 per cent of the funds for most of the schemes. This will burden the state,” he said while speaking with mediapersons.

Rawat said due to the cut in funds, several projects, especially water schemes and proposals pertaining to flood control, faced an uncertain future. “We will require around Rs 12,000 crore for these projects and will have to somehow manage this amount from our resources,” he said.

However, the Chief Minister said the state was bracing to meet the challenges arising as a fall out of the reduction in funds. “We will in no way slacken the pace of development despite immense losses. We will have to find ways to enhance resources through taxation and external borrowing from World Bank. Everybody will have to take the responsibility for development,” he added.

He criticised the BJP for making false claims about the enhanced (10 per cent) allocations to be made to the states under the new package, which would compensate for the withdrawal of the special category status. “The enhanced 10 per cent funds are no compensation for the loss of the special package. It will benefit only big states, the share of which in taxes is more than the smaller states,” he said.

He lambasted the BJP for blaming his government for not presenting proposals under the Namami Ganga Mission and the Swach Bharat scheme. “Proposals have been presented on time. The BJP is not aware that the Centre has recently released funds for the Namami Ganga Mission,” he said.