By Munize Ali, TwoCircles.net,
Guwahati: There is a mixed reaction among the people in North East India about the Union budget 2011 presented yesterday in the Parliament. Finance Minister Pranab Mukherjee announced nothing specific about North Eastern region except 8,000 crore special assistance fund. Some see that the allocation of 8000 crore as special assistance will help the development of north east India on the other hand some feel that case of north east has been neglected once again in the budget.
Common people shared that they hardly understand what budget means for them. There is frustration among commoners as nothing has been done to curb the increasing food prices and corruption. ‘What do we do with the special allocations [for north east in the union budget]? Allocation will hardly reach us. It will go into the invisible world of corruption’, said a shop keeper in Guwahati.
It is to be mentioned here that the North Eastern region depends on central funding for development works. All the States in north east are “Special Category States” whose Development Plans are centrally financed on the basis of 90% Grant and 10% Loan. Further, the Special Category States are allowed to use up to 20% of the Central Assistance for Non-plan expenditure. Also in October 1996, the then Prime Minister announced “New Initiatives for North Eastern Region” and stipulated that at least 10% of the Plan Budget(s) of the Central Ministries/Department will be earmarked for the development of North Eastern States and create a Non-lapsable resource pool. Following the Lok Sabha elections earlier in the year 1998, the matter relating to creation of the Central Pool of Resources was pursued in consultation with the Ministry of Finance. The Prime Minister convened a Meeting of the Chief Ministers of the North Eastern States on 8th May 1998 when, inter alia, it was indicated that a Non-lapsable Central Pool of Resources for the funding of specific projects in these States would be created. In the budget announcement of the year 1998-99, it was decided that all Central Ministries/Departments should earmark at least 10% of their plan budget for specific programme of development in the North Eastern Region. Thus this resource pool was formed. Ministry of DONER monitors this resource pool.