Give flexibility to states in implementation of schemes: Hooda

Haryana Chief Minister Bhupinder Singh Hooda on Thursday urged the Centre to allow flexibility to states in implementation of centrally-sponsored schemes.

Updated: Dec 27, 2012, 21:33 PM IST

New Delhi: Haryana Chief Minister Bhupinder Singh Hooda on Thursday urged the Centre to allow flexibility to states in implementation of centrally-sponsored schemes.

Speaking at the National Development Council meeting here today, Hooda asked the Planning Commission to drop the "arbitrary" distinction of expenditure as Plan and Non-Plan and instead classify it as Revenue and Capital.

"I would urge the Government of India as well as the Planning Commission to drop the arbitrary distinction of dividing the expenditure into Plan and Non-Plan. Instead, it would be desirable to follow the classification of Revenue and Capital expenditure," the CM said.

The Plan expenditure takes care of the expenses incurred on development and assets creation, while the recurring expenses come under the non-plan expenditure.

He said the centrally-sponsored schemes or centrally assisted schemes should be so framed that states have enough flexibility for their effective implementation.

He suggested that states should be given a lump sum amount with certain broad guidelines and it should be left to states to design and implement the required programmes or schemes.

With agriculture continuing to be the main source of livelihood for a majority of the rural population, Hooda demanded that MSP for agricultural produce be 50 per cent more than the cost of cultivation.

He said that the rate of interest on crop loans should not exceed 4 per cent per annum and the rate of interest on loan for non-agricultural purposes should not exceed 7 per cent.

The Haryana Chief minister also strongly pitched for the state`s share of water and demanded immediate inter-linking of rivers. "The final award of Ravi Beas Tribunal has not been published even after 25 years. The people of Haryana are, therefore, feeling betrayed," he said.

Hooda also raised the demand for prompt compensation of the loss of over Rs 6,000 crore to Haryana due to reduction of CST rate from 4 per cent to 2 per cent.

Hooda also criticised the central government for not effectively intervening in the matter when Punjab enacted a law terminating the water related agreements with retrospective effect.

Raising the SYL Canal issue, he said, despite spending a huge amount on the construction of the canal, it has not been operationalised till date even when there are specific directions of the Supreme Court.

"The Union Government instead of effectively intervening in the matter, has allowed the Presidential Reference to linger on for more than eight years," he said, referring to Punjab`s termination of the water agreements.

The Haryana Chief Minister also demanded that Gurgaon city with its growing population and pressure on its infrastructure be included under JNNURM and said there should also be a separate allocation for Panchkula under JNNURM.

He also said under the allocation of new coal blocks to power utilities, Haryana`s case should be considered on priority keeping in view its rising power demands.

Hooda said Haryana achieved 9.1 per cent growth rate in GSDP and the per capita income in the state was Rs 1,08,859 during 2011-12, which brings Haryana to the first position among major states in the country.

He said Haryana continues to be a preferred investment destination. Investment to the tune of Rs.61,000 crore have been catalysed during past 7 years and investment of Rs 97,000 crore is in the pipeline.

Endorsing the proposals of 12th Plan with the objective of achieving a faster, more inclusive and sustainable growth, Hooda said the country`s economy has exhibited tremendous resilience in the face of grave economic adversities and lauded the central leadership for steering the national economy in difficult times.