Jaya seeks Modi's intervention on change in SSA funding pattern

State govt alleges that there is a unilateral move to drop the central fund from current 65% to 50%

The Tamil Nadu government has urged Prime Minister Narendra Modi to direct Ministry of Human Resources Development (MHRD) and Finance Ministry to restore fund sharing pattern of Sarva Shiksha Abhiyan (SSA) to the prevailing ratio where the Centre pays 65% of the funds.

The centre has made attempts to reduce its share of funding for the SSA from present 65%, wrote Chief Minister J Jayalalithaa in a letter.

She said that on September 14, 2015, MHRD wrote to state governments indicating that Ministry of Finance would release only 50% of outlay for the scheme as the Central share, as against the originally committed 65%, pending a final decision on the proposed modifications to the Centre-state funding pattern for Centrally Sponsored Schemes consequent to the enhanced devolution of tax resources to states as per the recommendations of the 14th Finance Commission.

This comes after a Project Approval Board meeting of SSA, the MHRD has approved a total outlay of Rs 2,329.15 crore for the year 2015-16 and requested the state government to provide 35% outlay as its share, as the sharing pattern is 65% of the fund from the centre and the rest from the state government. The State government has also made provisions to in the State Budget for 2015-16 and the approved plan was put into operation from April 2015.

The MHRD released an ad hoc grant of Rs 389.31 crore on May 15, 2015 and subsequently, on September 1, an amount of Rs 162.31 crore was released to Tamil Nadu with a hand written correction requiring the State government to release its corresponding share of 50%.

"The revenue from Cesses and Surcharges are entirely appropriated by the Central Government and not shared with the States as part of the divisible pool of taxes. Having levied, collected and appropriated Education Cess, it is unfair and unjustified to reduce the Central share of the funding for Sarva Shiksha Abhiyan," she said.

She requested the Prime Minister to "intervene immediately in the matter and direct the MHRD and Ministry of Finance to ensure that the Government of India provides at least 75% of the funding for the Sarva Shiksha Abhiyan and in the interim, immediately restore the sharing pattern for the Sarva Shiksha Abhiyan to at least the existing ratio of 65:35."

She added that as per the Expenditure Budget, which detailed the Centrally Sponsored Schemes and categorised it into fully supported by the centre, delinked from central assistance and schemes which would get modified funding as a consequence of the 14th Finance Commission, the SSA has been indicatedx as one of the schemes which would contineu to be fully supported by the Union government.

"To go back on an assurance given in the Union Budget 2015-16 which has also been voted by Parliament is improper," she added. She said that a Sub Group is soon expected to submit their report to the Prime Minister on the issues relating to the Centrally Sponsored Schemes, a unilateral reduction by the MHRD in the share of central funding for SSA is not caloled for. This comes at a time when an amount of Rs 20,936.50 crores has been provided for School Education in the State's budget in 2015-16.

The 14th Finance Commission's recommendations have been very adverse for Tamil Nadu and the entire benefit from increase in vertical devolution from 32% to 42% has been wiped out by the sharp reduction in Tamil Nadu's horizontal share by 19.14% and the removal of a number of specific purpose grants. Tamil Nadu actually stands to lose Rs 6000 crores per annum as a result of the 14th Finance Commission's recommendations.

The sudden and unilateral decision to change the sharing pattern from 65:35 to 50:50 will jeopardize the implementation of Sarva Shiksha Abhiyan in Tamil Nadu, which is undoubtedly a national priority, she added.