Manipur CM Okram Ibobi Singh concerned over cut in fund allocation to NEC

NEW DELHI: Manipur Chief Minister Okram Ibobi Singh today expressed concern over cut in funds allocated to the North Eastern Council by more than Rs 190 crore, stating the actual release of money to the regional planning body is "grossly inadequate to take up meaningful development".

Singh also called for equitable distribution of the North Eastern Council (NEC) funds among the member states and enhancement of allocation of Manipur.

"It is a matter of concern that there has been a budget cut to the tune of Rs 191 crore during 2014-15 (for NEC)," Singh said while speaking at the two-day 64th plenary session of the North Easter Council (NEC) here.

He said NEC was statutorily mandated to act as a regional planning body and has identified core areas for regional planning of the region based on Vision 2020 of the North Easter Region (NER).

"However, with meagre plan funds provided to NEC it will be difficult to provide fund for core areas like establishment of state level committee of direction projects in the NER," Singh was quoted as saying in a state government statement.

Although he welcomed the devolution of central tax share to the states from 32 per cent to 42 per cent. He said changes in the funding patterns of various categories of centrally sponsored scheme would hurt special category states.

"Special category states also lose out on normal central assistance, special central assistance, special plan assistance on which the NE states and Manipur in particular, heavily depend on the meet the fiscal deficit and finance state matching share," he said.

There is a need for immediate restoration of special category status to the states along with other financial allocation of fund, he added.

On the equitable distribution of the NEC funds and enhancement of allocation of fund for Manipur, Singh said: "Overall fund released to Manipur still continues to be the lowest after Sikkim, around 4 per cent of the total releases made so far by NEC."

During 2014-15 Rs 48.90 crore was released, which is not sufficient to clear liabilities of ongoing projects and implement new projects sanctioned, he said.

Singh asked the Centre to enhance the per centage allocation for Manipur to be at least at par with Nagaland, Tripura, Meghalaya, which was more than 6 per cent of the total releases.