New Delhi: Assam need to grow at more than double digit numbers for enabling its per capita income and some other indicators in health and particularly outcomes in education sector to catch up with the All India average, said Shri N.K.Singh, Chairman 15th Finance Commission at a Press Conference after holding interactive sessions with the State government, representatives of various political parties and local bodies. State has made significant progress in last couple of years in achieving high growth rates in revenue generation and maintaining macro-economic stability specially in maintaining Debt to GSDP ratio, he said. State has an enormous challenge in improving the quality of expenditure further. It was recognized by the Govt. of Assam that despite an increase in the capital expenditure, much more is desired to fill the gap in expenditure needs for infrastructure.
Chairman noted that significant improvements have been made in the working of the Power sector, not only in the field of availability of power but also in the field of reducing T&D losses and achieving 100% metering. Assam has already subscribed to the UDAY bonds which is appreciable.
Commission empathize with the problems faced by the State of Assam in the form of destruction caused by floods, difficulties in training the river Brahmaputra and other flood management systems. Commission appreciated the creative idea given by Chief Minister Shri Sarbanand Sonowal regarding creation of embankment cum circular road to protect Majuli Island and stated that these will be considered in the broader framework of Disaster Relief and Management.
Commission noted the complex issues and the uncertainty faced by the state due to GST implementation. While the outcomes needed to be watched further, the Govt of India has assured a 14% revenue buoyancy for four years which covers the first year of the award period of the 15th Finance Commission. The abolition of Planning Commission and the new financing mechanisms need to be considered to ensure that the ongoing growth momentum continues.
Assam – Key state in Act East Policy
State Govt team led by Chief Minister Shri Sarbanand Sonowal and Finance Minister Dr. Himanta Biswa Sharma made a detailed and pointed presentation to explain the nitty-gritty of the state finances in all the sectors. Presentation went on for more than 3 hours. In his welcome remarks, Chief Minister welcomed the Commission and thanked the members for their positive approach in understanding various issues related to the state. During the presentation, State Govt. emphasised on following:
- Budget expenditure has increased from INR 42000 crore in 2015-17 to around 70000 crore in 2017-18 with capital expenditure increasing from around 4900 crore to 12800 crore in the same period.
- Revenue collection has shown an average increase of around 20% annually in last two years other than GST.
- Special consideration and financing mechanism needs to be evolved for the protection of Majuli Island.
- For the purpose of devolution, Sixth schedule areas should be treated as general areas as they are more backward than general areas.
- Infrastructure needs of the state needs to be seen in context of the strategic position of the state and internal security requirements.
- State Govt. sought to consider giving weightage to some composite index related to Human Development.
- State Government has tailored its development efforts around the achievement of the Sustainable Development Goals.
The Chief Minister on behalf of the State Government would submit a detailed Memorandum to the Commission. Chairman complemented the Govt. of Assam for making outstanding and enlightening presentation to the commission regarding the opportunities and challenges in all the sectors of the economy of the state. He also stated that the issues raised would receive appropriate consideration during deliberation in the Commission. Assam is the doorway to the Act-East Policy of India, and therefore very critical to India’s strategic and trade relations with its Eastern neighbours. We understand that infrastructural development is very critical for making it successful. Commission also urged the State Govt. to consider the ways to attract more private investment through PPP for infrastructure development.
Interactive session with the representatives of Trade and Industry to be held tomorrow (27th April 2018)
Earlier, Feedbacks and recommendations were sought from the local bodies by the Commission. Representatives from the local bodies like the Gram Panchayat, Jila Parishad and Anchalik Parishad of the State were present in the meeting to express their views and concerns regarding important issues of their areas. The Urban local bodies like Guwahati Municipal Corporations also put forth their issues and suggestions to tackle these issues to the Commission in the meeting. The Mayor of the Guwahati Municipal Corporation said that as the City’s population is very high, the problems are also many in numbers. He urged the Commission to provide funds to deal with recurrent issues like the artificial flood, maintenance of the water bodies, improving of lanes and bylanes, maintenance of cremation grounds, dumping grounds among other issues. The Commission also met the leaders of various political parties like the BJP, AIUDF, Congress, AGP, CPI, CPM, and others to understand the opportunities and the challenges in the state. It will hold an interactive session with representatives of Trade and Industry on 27th April 2018.
15th Finance Commission is on 3 day visit to the state of Assam from yesterday (25th April 2018). The Commission led by the Chairman Shri N.K.Singh, Members – Shri Shaktikanta Das, Dr. Anoop Singh, Dr. Ashok Lahiri, Dr. Ramesh Chand and Secretary Shri Arvind Mehta along with other officials held meetings with the Hon. Chief Minister, Hon. Finance Minister and other officials of the state at Assam Administrative Staff College, Khanapara.
Commission also held wide ranging interactions with the leaders of various political parties, and Local bodies and received detailed insights into the opportunities and challenges lying ahead for the state.
The Commission appreciates the constructive and useful suggestions made by the State Govt towards empowerment of the states and their development.
The Commission also placed on record its appreciation for the warm hospitality extended by the State Govt. The Commission also looked forward to continuing interaction with the State Government. Assam is the second state being visited by the Fifteenth Finance Commission, the first being Arunachal Pradesh. As part of the consultative process, Finance Commission will visit different States, understand their developmental requirements and their resource availability, and then firm up its conclusions, recommendations and Report.Commission will finalise its recommendations by October 2019 after completing its discussions with all the State Governments, the Government Of India and relevant stakeholders.
