The State of Jammu and Kashmir has hitherto been treated at parity with eight North Eastern States in matters of central funding pattern, purely on considerations of being “backward area or State” and with less than adequate financial resources. The funding pattern of 70:30 was subsequently revised to 90:10 per cent. It is noteworthy that the Government of India has changed this Central Funding Pattern (CFP) of eight States from 90:10 to 100%.
Centrally Sponsored Schemes are those schemes where there is financial participation by both the Centre and the States. It is in a way just a cushion of help provided to States to run its plans financially. Centrally Sponsored Schemes are created on areas which are covered under the State list. Usually the percentage of funding is higher on the part of the Centre than the States, the latter with the stipulated percentage.
As a closed mouth catches no flies, the Jammu and Kashmir Government did not push its case for enhancing the funding from 90:10 to 100% although the representatives of the State had been supportive of a favourable revision in the funding pattern of the State direct to 100 percent during their meetings with the Union Ministers, in particular finance, but not very seriously or meticulously followed up the matter. In the mean time, a development took place as Union Minister in charge of North Eastern States, Dr. Jitendra Singh propounded the revised proposal (100%) before the Union Cabinet for North East and the same was approved. Like this, Jammu and Kashmir was kept in the lurch and consequently, for the first time, has remained out of the purview vis-a vis the North Eastern States in terms of funding under the Centrally Sponsored Schemes.
Having realized about the tenuous nature of putting up its case so far, the State Government now proposes to take up the matter afresh with the Union Finance Ministry very vigorously to be kept at par for considering 100 percent funding pattern. As is the wont of the State Government, most of the projects of development of tiny nature, jumping the time frame in a disproportionate manner usually or even shelving them altogether is because of the funds constraints . Under these considerations, therefore, the case assumes strength since even providing for the mandatory funds of 30 or 10 percentage by the State Government becomes, at times, very difficult.
Centrally Sponsored Schemes, it may be reiterated, are divided into three parts. These are Core of the Core, Core and Optional. The share differs for different schemes but the stake or the participation of the States is envisaged in each scheme. The rule or the convention, however, is that geographically “difficult” States shall get higher Central share. It is on this basis, that the case of the State of Jammu and Kashmir gains strength. There can be no dearth of the schemes allotted to States like the J and K but due to sheer inability of sparing funding from the State sector, those schemes remain in a state of uncertainty and never get started.
Depending upon how ably the case is presented before the NITI Ayog or the Finance Ministry, if approved in favour of this State, it would undoubtedly go a long way in executing Centrally Sponsored Schemes well in time resulting in overall development of the State.
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