Give lump sum to states: Hooda to Centre
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Last Updated: Saturday, October 22, 2011, 19:22
  
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 manner.

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.

PTI


First Published: Saturday, October 22, 2011, 19:22


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