Arunachal will plunge into crisis if steps not taken:MLA

Concerned over the ongoing financial crisis in the state, expelled Congress MLA Kalikho Pul today said Arunachal Pradesh will plunge into criss if concrete steps immediately were not taken by the government.
"The financial position of the state is grave with the government running in overdraft with RBI to the tune of Rs 449.76 crore. The salaries of government employees have not been cleared while contractors' bills are pending even after closing of the financial year," Pul, who is also the former Finance Minister, told a press conference here.
He said, the government had issued post-dated checks to the contractors with validity extended to April 30 next.

"Most of the government cheques have been alleged bounced," he said adding the government had even issued an order to stop bank transaction from April 1 to 7.
To the government spokesman's statement regarding accumulated deficit of the state government to the tune of Rs 4,486.74 crore in the last ten years, Pul said that the amount is even higher than Rs 6,000 crore which is not deficit but due to man-made liabilities.
Presenting year-wise balance of the state government with RBI, Pul disclosed that during his tenure as finance minister the balance with RBI during 2007 was Rs 30.54 crore, during 2008 (Rs 581.32 crore), 2009 (Rs 474.74 crore), 2010 (822.18 crore) and during 2011 it was 855.65 crore.

"Since 2012, the position of balance with RBI deteriorated after I was removed from the finance portfolio. In 2011 the balance was Rs 193.82 crore, in 2013 it was 195.16 crore and in 2014 it was zero with an overdraft of Rs 449.76 crore," he disclosed quoting official records.

He said, as per agreement the minimum balance of the state government with RBI should be Rs 26.27 lakh.
Squarely blaming the chief minister for the present situation, Pul said that the dismal financial scenario of the state was because of improper planning and high expenditure.
Giving details of non-plan fund during 2014-15, Pul said that a total of Rs 3541.74 crore was received by the government under various heads including, share of central taxes (Rs 984.26 crore), Revenue Deposit Gap Grant (Rs 364 crore), normal central assistance (Rs 1128.95 crore), special central assistance (Rs 800 crore), net small saving loan (Rs 38.48 crore) and market borrowing (Rs 226.05 crore).

"When the non-plan fund could be spend on salaries, wages, pension and POL, what was the necessity to make expenditure from the plan fund which resulted in the present financial situation," he wondered.
Stating that the Centre had released an amount of 6911.55 crore to the state under centrally sponsored schemes in the past four years, Pul alleged that the fund released were being misused without any proper accounts.
"The state government is liable to answer for all the projects which were completed, which are under progress and which have never been executed under these schemes," he added.