Link aid to performance, says CM

NEW DELHI, SEPT. 1. The Chief Minister, Mr. N. Chandrababu Naidu, today urged the Centre to create a fund with the Planning Commission for augmenting Plan resources of States agreeing to wipe off their revenue deficits in five years for improved governance.

Speaking at the 49th meeting of the National Development Council here, Mr. Naidu said State-specific targets were to be laid down in different sectors and development assistance should be linked to performance. This proposal needed to be seriously considered and debated for evolving a suitable formula for allocation.

He said some States had mobilised additional resources for poverty eradication and social development resulting in adding up debt burdens and such States were penalised for good performance in poverty alleviation. The population criterion should be frozen to the 1971 level and the release of Central assistance be linked to performance, he said.

The Chief Minister said the poverty estimates of the Planning Commission Task Force of 1987-88 should be frozen for allocation of Central funds under different schemes where poverty issues were taken into consideration. There was a need to reduce the interest rates of the Central loans to reasonable level.

He expressed happiness that reforms in governance had been considered to be a critical element in development strategy in the approach paper to the Tenth Plan. The Government would have to shift its spending from unproductive areas towards high priority development goals. Andhra Pradesh had improved performance at all levels with clear-cut goals and targets based on Vision 2020.

Mr. Naidu said the methodology of the expert group for estimation of poverty ratio of States was highly erroneous and it distorted the price index of Andhra Pradesh adversely influencing the food subsidy programme of the State. This methodology of 1987-88 should be frozen, he demanded.

He reiterated his stand in the previous NDCs that the Centrally sponsored schemes should be abolished and the full share should be transferred to States as grants to implement the programmes which were of priority and importance to States. States should be given the choice and freedom to devolve part of the funds.

States, he said, were put to serious disadvantages whenever the Centre took decision to introduce new schemes. The proposal of the Planning Commission to transfer only 21 schemes with an outlay of Rs. 388 crores out of 256 schemes currently under implementation as CSS should be reconsidered.

He said greater devolution in favour of States within the spirit of cooperative federalism was absolutely essential for the successful implementation of various development schemes and programmes for achieving national goal.

- UNI

Send this article to Friends by E-Mail

Section  : Southern States
Next     : Clearance sought for poverty eradication project