Puducherry gets only 1.58 per cent increase in Central assistance in 2021-2022
PUDUCHERRY: The annual central assistance to Puducherry in 2021-2022 by the central government has been enhanced by just 1.58 per cent over the previous with a projected release of Rs 1724.77 crores as compared to Rs 1698 crores in 2020-2021.
Union Minister of State for Finance Pankaj Chaudhary stated in reply to questions raised by Puducherry Lok Sabha member V Vaithilingam in Lok Sabha on Monday.
Vaithilingam had asked whether Union government was aware that the annual central assistance to the UT remained static for quite a long time without reasonable increase to match the revenue deficit and whether the central government will come forward to adequately increase the assistance and provide the details of the details of the assistance. He also asked whether the Union government has done any study on the minimum requirement of central assistance for Puducherry based on a reasonable formula and whether it would initiate steps in that direction.
Replying to Vaithilingam, Chaudhary said that the annual growth in central assistance to the UT of Puducherry is about 4.5 per cent, except in the year 2020-21, in which about 10 per cent increase was given.
Providing the details of the assistance given in the last seven years, he said that assistance of Rs 1300 crores was released in 2015-2016. This was increased by 4.09 per cent in 2016-2017 releasing Rs 1353.13 crores, by 4.85 per cent in 2017-2018 releasing Rs 1418.69 crores, by 3.69 per cent in 2018-2019 providing Rs 1470.99 crores, by 4.69 per cent in 2019-2020 providing Rs 1539 crores , by 10.26 per cent in 2020-2021 providing Rs 1698 crores. In the current year the growth of central assistance is just 1.58 per cent with a projected release of Rs 1724.77 crores.
The Minister further said that the Annual allocation by the Ministry of Finance towards Central Assistance to the UTs are based on the projections/expenditure trends and availability of resources, which are reviewed and provided for through supplementary grants approved by the Parliament for respective Financial Year, he explained.
It may be noted that as Puducherry, an UT with legislature is not included under the purview of Finance Commissions for states as well as for UTs, there is no recommendations from the Finance Commission on the quantum of central assistance to be provided to Puducherry. The central government is deciding the quantum of the amount for release.
Former Chief Minister V Narayanasamy during his tenure had stated that the annual central assistance is just around 22 per cent of the budgetary outlay, when it is around 42 per cent for states and over 70 per cent for UTs. This has led to Puducherry facing financial constraints and severely dependent on market borrowings for meeting its committed expenditure.
The governments in the past as well as the present NDA government in the UT has taken efforts in getting Puducherry included in the Finance Commission through a constitutional ammendement, but have not met with success so far.