[dropcap]S[/dropcap]crapping the 65-year-old Planning Commission may result in bringing extreme effects in the North Eastern states of India who are dependent on the Centre almost for everything to run the day-to-day affairs. The effects can be a bane. It can also be a boon for the region but never a middle path.
The terms and the language Narendra Modi used during the seven hours long chief ministers’ meeting in New Delhi on Sunday appeared attractive and encouraging. They also have loads of between-the-line elements. Well, merits and demerits are bound to be there in anything. But will the demerits over-shadow the boon in the Northeast context?
The National Democratic Alliance (NDA) government under Narendra Modi has been harbouring the idea of doing away the Planning Commission ever since it took over the Kursi in Delhi and there have been numerous rhymes and reasons behind it. “Pushing for an effective structure” is commonly described by the stalwarts of the saffron party towards achieving this end. And under this area of ‘effective structure’ of the proposed ‘new body’ there will be a key role of the States. This is one of the many motifs of the so called ‘effective structuring.’Well, what are the likely ramifications of the post Planning Commission to the States like Nagaland, Mizoram, Meghalaya and Manipur who are surviving with more than 90% of money doled out by the Centre to run the affairs?
In the event of States playing as key decision makers in the ‘new body’ (replaced Planning Commission) major States who have bigger contributions to the Central pool of fund will expect bigger shares. In other words, these major States will not feel good to give big funds to States whose contributions to the country’s exchequer are meager. To cite instances, West Bengal, Maharashtra, Himachal Pradesh, Bihar, Uttar Pradesh etc. etc. have been voicing for quite sometimes now that the annual budgets allotted to them are not proportionate to what their contributions to the country’s exchequer. Some of the States have even gone to the extent of saying that ‘there are States enjoying money at the cost of others’ labours.’ Given this background, these major States are unlikely to remain mute when shares (budgets) are distributed for they will play ‘a key role in the new body.’ Such possibility was hinted few days ago by Union finance minister Arun Jaitley. This column had carried the Union finance minister’s comment which said a cut in grants from the Centre to states is likely to happen soon. The states will have to stand on their own by generating resources for development and other schemes. The Union minister also said that ‘gone are the days when the Centre would provide money and the states would run the government’. “Today every state has to stand on its own,’ adding, “The economies of the States in the country depend on investments made by the investors, who, besides looking for profits, also create employment.”
