Objecting to the union government proposal on categorisation of centrally sponsored schemes Chief Minister Akhilesh Yadav has written a letter saying such project enacted without consultation from the states, which will “increase” financial burden on the state. “The categorisation of schemes will hamper development of the state. This will increase financial burden on the state. It is unfortunate that such an important decision has been taken ignoring the stake holders,” he wrote in his letter released to media on Sunday.
Yadav wrote this letter to Madhya Pradesh Chief Minister Shivraj Singh Chauhan, who is the chairman of the sub-committee in Niti Ayog for rationalisation of centrally sponsored schemes. The copy of the letter was released on Sunday. In his letter, the UP CM said that suggestions of the states were not taken as a result several schemes related to development of backward areas, social and economic uplift and delivery of services have been categorised in C and D category.He said that in the absence of central-funding, the states would be required to put their own resources, which would eventually affect other schemes.
Emphasising on reconsideration of categorisation Yadav said schemes related to creation of infrastructure, agriculture, power, human resource development, health, urban development, poverty alleviation, rural development and social security for weaker section of the society should be maintained and implemented as flagship programmes. He said that states should be given flexi fund of at least 25 per cent and requested to provide agenda of the second meeting of the sub-committee so that UP could give its suggestion.
He said that funding in these schemes should not be changed and the states should be provided central assistance in the ratio of 90:10. The Union Finance Ministry has proposed to reduce its share of expenditure in some centrally-sponsored schemes from 75 per cent to 50 per cent. If the proposal is cleared the state will contribute half the money to keep the schemes running compared with just a fourth till the end of 2014-15.