14.2.15

NITI Aayog gets going


Heeding the long pending demand of states, Prime Minister Narendra Modi has formed a sub-group of chief ministers under NITI Aayog to suggest further rationalisation of 66 centrally funded schemes. This could prune the number of programmes, transfer some of them to the states and even end the not-so popular ones.
The BJP-led National Democratic Alliance government also set up sub-groups on skill development and Swachh Bharat Abhiyan.
“The first sub-group will look into which amongst the 66 centrally sponsored schemes are required to continue and which can be cut down or transferred to states,“ Finance Minister Arun Jaitley said, adding that the sub-group will submit its views within a month and a half.
The 14th Finance Commission headed by former Reserve Bank of India Governor YV Reddy had proposed a significant in crease in the quantum of funds that the Centre gives to the states as their share of central tax revenue as well as a major jump in the amount that they , can spend on can spend on their own without being accountable to the Centre.
The Centre's assistance to states for the 66 schemes was Rs.3.38 lakh crore in 2014-15, more than double the amount of Rs.1.36 lakh crore in 2013-14.
Flagship central schemes include Mahatma Gandhi National Rural Employment Guarantee scheme, Bharat Nirman, Sarva Shiksha Abhiyan and Pradhan Mantri Grameen Sadak Yojana.In the 11th Plan period (2007-12), the provision for central schemes stood at over Rs.6.6 lakh crore. At one point, there were as many as 360 such schemes and their number has come down to 66 last year from 147.
At present, states are allocated money under central schemes for development work such as roads, sanitation, education and social welfare programmes.States have to spend the money allocated as per guidelines.
The recently constituted National Institution for Transforming India (NITI Aayog) has replaced the over six-decade old Planning Commission as a think-tank for the Centre and state governments and to suggest policy directions.
The Prime Minister is the chairperson of the body that comprises a governing council of chief ministers and lieutenant governors of all states and Union territories, a vice chairman, two full-time members, part-time members and ex-officio members, besides a secretary-level officer designated as CEO of the institution.
Addressing the first meeting of the governing council of NITI Aayog, the Prime Minister identified “alleviation of poverty“ as the biggest challenge.
“Prime Minister also asked all states to create two task forces under the aegis of the NITI Aayog -one task force would focus on poverty alleviation and the other would focus on future development of agriculture in the state, and how the Centre can assist the state in this regard,“ the statement said.
Modi asked the chief ministers to personally monitor factors that slow down projects.


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