Cong caused biggest damage to fiscal federalism: Drabu

Excelsior Correspondent
JAMMU, Mar 25:  Finance Minister Dr Haseeb Drabu today said that biggest damage to fiscal federalism was caused by the Congress in seventies and eighties when Uttar Pradesh, Bihar and Madhya Pradesh got more Centrally Sponsored Schemes then rest of India.
“It was the Congress, which choked the States but now the 14th Finance Commission has restored powers of the States. During Congress regime, the Finance Commissions used to be toothless,’’ he said replying to discussion on grants of Finance and Planning Departments in the Legislative Assembly today.
He said the Government would restore fiscal autonomy of the State. He added that the Government was bringing White Paper on financial position of the State to understand as to what led to Rs 9000 crores worth liabilities and not to indulge in any blame game.
“The White Paper will also suggest way forward and restore fiscal autonomy in the State,’’ he added.
Asserting that once the system of Plan and Non-Plan was changed, the district plan criteria will also change, Drabu said it will be transparent criteria. He said pattern of allocation of funds to the districts will be changed.
He regretted that the previous Government had very adhoc approach for the Plan.
“As against Rs 7000 crores worth Plan, only Rs 2200 crores were received. All this was due to adhoc approach,’’ he pointed out.
Drabu said the Government has taken series of measures to avoid misuse of funds in the form of payment of bills through the treasuries on March 31.
“We have directed that the treasuries shouldn’t accept the bills after March 30,’’ he said.
He said that the Government is for the welfare of the people and in this regard several welfare measures have been announced, besides achieving self reliance and fiscal autonomy.
He said the old classification of the plan and non-plan has been discarded which is a major change and will have far reaching implications on allocation, efficiency and monitoring of public expenditure.
Drabu said that from 1st April, a 3-phased rehabilitation plan will be launched starting with the first step of restoration of the livelihood of the flood sufferers, which would be followed by helping them in re-establishment of their business and in the final phase the actual reconstruction of their houses and assets.
“It is the endeavour of the Government to ensure that the people, who were affected by the floods, should start their normal business and day-to-day activities as soon as possible,’’ he said.
The Finance Minister said that respecting the sensitivity of the House towards widows, disabled and the destitute, two pension schemes under State and Central sector have been merged for the benefit of widows and they would be getting a hiked pension of Rs. 1000 per month. Besides, Rs. 1000 per month would also be provided for the disabled persons having disability of more than 60 percent.
Reiterating Government’s commitment for bringing in more welfare measures for the girl child, the Minister said that grown up girls would get financial assistance at till 17 or 21 years depending upon their choice. In addition to this the Government would be contributing Rs. 1000 per month on behalf of every new born child for the next 14 years and on reaching 21 years, she would receive Rs. 6.5 lakhs.
Drabu said that Government will continue its employee’s friendly schemes in future also. He said that all the Class-IV employees would be getting recently announced 17 per cent DA arrears in cash.
Referring to the creation of employment avenues in the State, the Minister said that mechanism would be formulated for creating the necessary and requisite job opportunities for the people thereby helping in ensuring the employability of the job-less.
Terming the concept of model business villages as a step towards ensuring the proper development of the business and livelihood activities in those areas where they are set up, the Minister said that local employment opportunities will be generated by this step thereby resulting in elevating the economic profile of people living in the areas as well as their catchment areas.
“We would also ensure that the proper and conducive atmosphere is created for entrepreneurship and in this regard initiatives have been taken for ensuring more people set up their own entrepreneurial units”, Drabu he said and added that the craft trade which provides employment to more than 7 lakh people would also be given the necessary impetus, so that more and more people get employability through the handicraft sector.
“The branding of different handicrafts would be done which would help in promoting and reviving the sector, which forms one of the most important aspects of our tradition and providing employability to lakhs of people”, he added.
Drabu said that necessary mechanism would also be put in place to provide soft loans to the persons who have been provided the requisite trainings in different fields by the Entrepreneur Development Institute (EDI). He said that by doing so the local entrepreneurship would get the requisite fillip and youth would be contributing in the economy and also creation of employment avenues for the unemployed ones.
Earlier, the Minister moved a Demand for Grant of a sum of Rs. 3170739.85 lakhs to defray the charges which will come in the course of payment during the year ending March 31, 2015 for the departments under his charge.
The House passed the Grants by a voice vote after one of the cut motions pressed by NC MLA Ali Mohammad Sagar was rejected. Other members withdrew their cut motions.