Give lump sum to states: Hooda to Centre

Haryana CM Bhupinder Singh Hooda asked the Centre to give lump sum grants to states and allow them to utilise these as per their local requirements.

New Delhi: Haryana Chief minister Bhupinder
Singh Hooda on Saturday asked the Centre to give lump sum grants to
states and allow them to utilise these funds as per their
local requirements.

Addressing the National Development Council meeting here,
he said most of the central schemes had a pan-India
perspective which left very little scope for flexibility to
meet state specific requirements.

"We would recommend an umbrella approach under which lump
sum grants are provided to state governments and they are
given the flexibility to utilise the funds as per their local
requirements as in case with the Rashtriya Krishi Vikas
Yojana, which is a success story in this regard," Hooda said.
Observing that the present classification of state
outlays under `Plan` and `non-Plan` is not an optimal method
for allocating resources, Hooda said "the accounting
constraints arising out of this distinction are creating
distortions in the planning process. It is also hampering the
linkage of expenditure with outcomes."

The Haryana CM suggested it was the right time to move to
a system where the planning process takes into account all
public expenditure and allows states to fix priorities, evolve
suitable programmes, projects and strategies in a strategic
He suggested the Plan and non-Plan distinction may be
done away with and the outlays may be classified as capital
and revenue only.

On Jawaharlal Nehru National Urban Renewal Mission
(JNNRUM), Hooda said the central project should be "redesigned
and improved" to help realise its full potential.


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