Himachal deprived of centre funds

NDA Govt. deprived Himachal of thousands of crores funds by abolishing Planning Commission

SHIMLA- Himachal Pradesh has grossly suffered due to abolition of the Planning Commission under the NDA government, said a Spokesperson of the State government. Now, Himachal has been deprived of funds which used to flow from Planning Commission, he added.

Earlier, the State Government used to receive Normal Central Assistance (NCA), Special Central Assistance and Special Plan Assistance(SPA) totaling about Rs. 3000 crore annually, which was stopped from 2015-16 onwards.

With abolition of Planning Commission, an important source of funding has totally dried up for a revenue deficit State like Himachal. The state has lost over Rs. 6500 crore on this account in last two years.

The Spokesperson said that the discontinuation of Centrally Sponsored Schemes like Backward Region Grant Fund (BRGF), National e-Governance Programme and hugely reduced allocations under Central Sponsored Scheme of Accelerated Irrigation Benefit Programme (AIBP) & Flood Management Programme (FMP) have adversely impacted the fiscal space of the state

Hundreds of crores of Central Assistance has been denied under these schemes which have affected several development schemes in Chamba and Sirmour districts (due to stopping of BRGF) and Una, Kangra, Mandi and Hamirpur districts due to reduced funding under AIBP & FMP. In addition, even the devolution of Central Taxes to the States have declined in the last two years causing a loss of about Rs. 1500 crore.

Cumulative impact of reduced central funding in five years from 2015 to 2020 is expected to be over Rs. 20,000 crore. These figures clearly indicate that Himachal is getting lesser funds from Central Government contrary to what has been claimed by the Central Government.

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