Now it is official that the backward KBK region in the State would not receive any special assistance from the Centre. NITI Aayog CEO Amitabh Kant informed the Odisha Government on Friday that its request for allocation of special Central assistance for continuance KBK special plan is no longer possible.
The earlier Planning Commission had sanctioned `1,000 crore under a special programme for four years from 2013-14 to 2016-17 and was releasing `250 crore every year. Now, the commission has been replaced by the NITI Aayog. The KBK, comprising Koraput, Nabarangpur, Malkangiri, Rayagada, Sonepur, Balangir, Kalahandi and Nuapada districts, is one of the poorest and most backward regions of the country.
While funds flow was smooth during 2013-14, 2014-15, State faced uncertainty in 2015-16 and, after persistent demand, the Centre released `132.07 crore for the year.
The State Government is yet to receive balance amount `117.93 crore for 2015-16 and `250 crore for the current year. Resultantly, several developmental projects have come to a standstill position.
The NITI Aayog CEO’s letter has come as a bolt from the blue as he said the special assistance provided for the KBK was one of the components under Backward Regions Grant Funds (BRGF), which has been delinked by the Centre since 2015-16 fiscal.
However, he has advised the State Government that the State may or mayn’t continue with these schemes out of their increased resources resulting from higher devolution of Central taxes as per recommendation of the Fourteenth Finance Commission (FFC).
In fact, the State Government is facing more fiscal crunch after the recommendation of the FFC implemented by the Centre. This has also been communicated to the Centre time and again, an official said.
Notably, former Prime Minister PV Narasimha Rao had in August 1995 launched the seven-year-long Action Plan for the KBK to alleviate hunger and usher in development in the region.
later, a revised plan was submitted and it was in force from 1998-1999 till 2010-11. Then, KBK Special Plan was re-launched in 2013-14 and it worked well for two years and now it is officially closed.