Govt plans move to ease debt burden of states
The Centre will evolve a mechanism to address the concerns regarding the debt burden of states in the aftermath of the recommendations of the twelfth finance commission.
By Agencies |
NEW DELHI: Prime Minister Manmohan Singh today said that the Centre will evolve a mechanism to address the concerns regarding the debt burden of states in the aftermath of the recommendations of the twelfth finance commission.
“A number of chief ministers have expressed concern about issues relating to state finances, particularly the effect of the recommendations of the twelfth finance commission. I believe that he (finance minister) will work to allay any apprehensions that may exist,” Singh said while delivering his concluding remarks at the two-day national development council (NDC) meeting.
Many of the states have complained on the TFC’s recommendations on the level of permissible market borrowings, and interest cost on borrowings, the prime minister said.
“Healthy state finances are as important as healthy central finances and fiscal prudence and stability must be our joint endeavour,” the prime minister said. Terming agriculture and irrigation as crucial sectors, Singh said formation of a sub-committee of the NDC would address the issues plaguing the sectors.
He said the centre and the states would work together to rejuvenate agriculture credit system, provide some measure of relief to the farmers and improve the quality of extension work.
They would also address the specific needs and problems of drylands and wastelands besides taking initiatives to enhance investment in irrigation, the prime minister said.
“A number of chief ministers have expressed concern about issues relating to state finances, particularly the effect of the recommendations of the twelfth finance commission. I believe that he (finance minister) will work to allay any apprehensions that may exist,” Singh said while delivering his concluding remarks at the two-day national development council (NDC) meeting.
Many of the states have complained on the TFC’s recommendations on the level of permissible market borrowings, and interest cost on borrowings, the prime minister said.
“Healthy state finances are as important as healthy central finances and fiscal prudence and stability must be our joint endeavour,” the prime minister said. Terming agriculture and irrigation as crucial sectors, Singh said formation of a sub-committee of the NDC would address the issues plaguing the sectors.
He said the centre and the states would work together to rejuvenate agriculture credit system, provide some measure of relief to the farmers and improve the quality of extension work.
They would also address the specific needs and problems of drylands and wastelands besides taking initiatives to enhance investment in irrigation, the prime minister said.
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