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:: Press Releases ::
 
FINANCE COMMISSION VISITS ARUNACHAL PRADESH
Tuesday, June 24, 2014
 

1. Dr. Y.V. Reddy, Chairman, Ms.Sushama Nath, and Dr.Sudipto Mundle, Members of the Fourteenth Finance Commission, and Shri A.N.Jha, Secretary visited the State of Arunachal Pradesh on June 23-24, 2014 to hold consultations with the State Government and key stake holders.

2. The Commission met with the Hon’ble Chief Minister, his cabinet colleagues and senior officers of the State Government, for discussions.

3. The Chief Minister in his speech welcomed the 14th Finance Commission and highlighted the following:-

(i) Arunachal Pradesh must be viewed from the prism of its inherent uniqueness which included cost disabilities, limited working season and lack of infrastructure,

(ii) For the State, FC grants are a major source of funding for non plan expenditure,

(iii) On account of lack of investment from the private sector and low resource base, state government is the sole provider of employment and also funding to create infrastructure,

(iv) State has made rapid progress in all the sectors. Its per capita GSDP which was 10% below the national average at the beginning of XIth Plan is now 10% higher,

(v) Through better tax administration, state has been able to achieve Tax-GSDP buoyancy ratio of 3.6%. Tax revenue grew from Rs. 98 crore in 2007-08 to Rs. 442 crore in 2013-14,

(vi) State has faced enormous fiscal challenges due to the implementation of the award of the VIth CPC. The total gap on account of NPRE was higher than that estimated by 13th FC by Rs. 6799 crore,

(vii) 82% of the state is covered by forest which though providing environmental benefit for the country at large, limits the scope of economic activities. State should be adequately compensated for the disability, by grant of special fund,

(viii) A fiscal stimulus package to meet the non plan revenue expenditure,

(ix) Requirement of Rs. 13000 crore as state’s equity investment in hydro power sector to make the state financially self sufficient in the long run,

(x) Total demand of Rs. 85001 crore proposed by the state.

4. The Chief Minister on behalf of the State Government, submitted the Memorandum to the Chairman 14th FC.

5. A detailed presentation on the finances of the State Government, its projection for the award period and its views on some of the Terms of Reference of the Commission was made.

6. The Commission also interacted with representatives of Political parties, Local Bodies and Trade & Industry Associations.

7. The Commission placed on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assured that the issues raised would receive due attention in the deliberation of the Commission. The Commission also looked forward to continuing interaction with the State Government.

8. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

 
FOURTEENTH FINANCE COMMISSION,B-14/A, CHATRAPATI SHIVAJI BHAVAN, QUTAB INSTITUTIONAL AREA, NEAR KATWARIA SARAI, NEW DELHI-110016
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