STOCK MARKET BSE NSE

CM's charge on Centre over funds baseless, says MoS

Published: 29th July 2013 10:27 AM  |   Last Updated: 29th July 2013 10:27 AM   |  A+A-

Lashing out at Chief Minister N Rangasamy for his comments on the Centre,  Union Minister of State for PMO, V Narayanasamy, said that Rangasamy’s charges against the Centre for not providing adequate funds were baseless. Rangasamy was blaming the Centre for hiding the failure of his government, he said.

Talking to reporters here on Sunday, he said the State government which failed to announce even a single scheme after it came to power, has to be blamed for the financial crisis.

Pointing out that the inefficient nature of AINRC government is blocking the development of the Union Territory, he said the State government had failed to mobilise revenue from resources and also failed to fully spend the plan fund allotted.

Explaining with figures,the Union Minister said during 2012-13, only 46 per cent of the allocation was utilised and the UT administration failed to spend Rs 1600 crore.

Even then, the Centre under the Central Assistance Scheme had enhanced the fund to Rs 620 crore in 2013 from Rs 379 crore in 2012, which shows a considerable increase. This underscores that the Centre had not shown any discrimination against the UT, he added.

Pointing out that Rangasamy, in his budget speech, stated that the Centre had rejected a proposal for Rs 800 crore to be obtained as World Bank loan for Thane cyclone relief, Narayanasamy said the CM’s statement was against facts.

Explaining with figures, he said when compared with States, Union Territory could obtain loan up to 20 per cent of its GSDP. The GSDP of majority of States stood at 21 per cent. The GSDP of Puducherry had crossed the limit and stood at 40 per cent as per the RBI report.

The State government had failed to mop up revenue and pay the interest for debts, he added. He said despite this, the Centre had allowed the UT to avail of loan of Rs 500 crore through market borrowings and for raising Rs 239 crore through negotiated loans from financial institutions.

He said the State government could only avail of Rs 65 crore through negotiated loans and did not take any steps for market borrowing. The fiscal deficit in other States stood at 3 per cent while it is more than 5 per cent in Puducherry. There is no provision for Puducherry to get loan hiding these facts, he added. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp