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| No blanket assurance to bail out states from financial problem |
| Press Trust of India / New Delhi Aug 04, 2009, 15:46 IST |
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The Centre today said it cannot give blanket assurance to states to help them come out of financial problems following implementation of the pay commission awards by them.
"I cannot give a blanket assurance that we can bail out states," Finance Minister Pranab Mukherjee told the Rajya Sabha, while responding to assertion by members that states were finding it difficult to pay higher salaries, in line with the Sixth Pay Commission award.
The central government has already permitted the state governments to borrow more funds to meet their financial requirements, the Minister said, adding "I have given state finance ministers enough elbow room (to deal with financial problems)."
Admitting that the problems being faced by the states are "genuine", Mukherjee said, "there are constraints on the Union Finance Ministry also. Several finance ministers from states have raised the issue with me".
He further said the Finance Commission, headed by Vijay Kelkar, was seized of the matter and will address the issues concerning financial problems of the states in its report.
On the issue of anomalies arising from implementation of the Sixth Pay Commission report, Mukherjee said, "All such issues are processed by the concerned administrative ministry in consultation with the Finance Ministry. Government has also issued instructions for setting up of anomaly committees at national and departmental levels."
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