Assam govt criticises Centre for reduction in funds to state

Criticising the Centre for reduction in fund allocation to the state, the Assam government today said it has provided employment opportunities to around 1.2 lakh people since 2001.
"We have to give jobs to people in Assam as there is no industry. Since 2001, we have given jobs to 1.2 lakh youths," state Planning Development minister Ajanta Neog said at the Assembly.
Responding during a discussion initiated by BJP MLA Ranjit Kumar Das about the financial health of Assam during the Zero Hour, she said, the Centre has reduced the quantum of funds allocated to Assam under various heads in the last few months.

"The 14th Finance Commission has cut funds for Assam and it said only for two fiscal - 2015-16 and 2016-17 - the support will be given. Even our neighbouring states in North East will get more funds than us," Neog said.
She said the Centre asked to spend only 35 per cent of state revenue to salary and pension, while the actual expenditure would touch 65 per cent soon due to lack of any alternative source of income such as corporate sector.
"The Centre calculates that as only 35 per cent will be spent in salary, Assam will be a surplus state and so cut allocation to us... The Chief Minister has requested to restructure the fund allocation of 14th Finance Commission," Neog said.

The minister also said many schemes were being delinked from Central assistance and the state government was asked to generate its own source of funding.

"Assam is a Special Category state due to its geographical difficulties. Because of this, we were given central projects with 90 per cent funds from the Centre," she said.
"Prime Minister Narendra Modi talks about cooperative federalism. If we do not get our share, how can there be cooperative federalism? Will it not lead to a strong Centre?" Neog asked.
"The state government still does not know how much fund it would get from the Union Budget for 2015-16 as nothing has been specifically mentioned yet," she added.