The Hindu : `Financial crisis forced on States'

Online edition of India's National Newspaper
Tuesday, Jun 25, 2002

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Other States - West Bengal

`Financial crisis forced on States'

By Our Staff Reporter

COIMBATORE JUNE 24. The West Bengal Government has embarked on a process of uniting all the States to prevail upon the Centre to relieve them of the financial stress faced by them.

``The effort is to bring about a unified understanding among the States to find ways to overcome the crisis,'' the West Bengal Minister for Industries and Commerce, Nirupam Sen, told presspersons here today.

Mr. Sen, who was here to participate in a CPI(M) meeting to celebrate 25 years of the party's rule in West Bengal, alleged that in the wake of globalisation, the Centre was creating a crisis for the States so that they would be forced to follow its guidelines in the post-WTO regime.

``Already thousands of crores of rupees have been denied to the States. West Bengal was deprived of Rs.766 crores last year and the Centre has already indicated that it might not be able to provide Rs.1,000 crores next year under the Eleventh Finance Commission.''

The Minister's disclosure of his Government's move was in response to a query why the other States, barring the Chief Minister of Tamil Nadu, Jayalalithaa, have not demanded funds.

He said that the States would have to make a united, forceful demand as globalisation sought to abrogate their rights.

The Centre had even framed guidelines that stipulated that funds would be given to only those States that followed these in the post-WTO regime.

Globalisation had not brought real growth. Though the volume of exports had gone up, the income generation was not to the desired level.

In the West Bengal context, other than doing away with the "licence raj'' and introducing freight equalisation there had been no other gain.

Mr. Sen denied the charge that the Left's approach to globalisation ran counter to development, especially industrial growth.

The climate was "investment-friendly'' as was evident from the investment of Rs.19,775 crores in 545 projects (medium and large-scale) between 1991 and 2001. Last year alone, it was Rs.2,194 crores in 86 projects.

``We are now focussed on bio-technology and information technology. The Left is for modernisation but not as per the dictates of the multi-nationals. What is happening now is against the interests of the people.''

He said the Left was still in the process of forging a Third Front to assume power at the Centre. When pointed out that such efforts had collapsed, he said, "it could not be established overnight. It is a long-drawn battle.''

He rejected charges that such fronts earlier had fallen apart owing to the Left's "big brother attitude.''

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