Centre biased in allocation to states

The Uttar Pradesh government today alleged that the Centre was biased in allocating money to states and said that allegations of misutilisation of funds were "baseless".

"Whatever funds Uttar Pradesh has received from the Centre, which is biased in its allocation, has been utilised properly and timely. Apprehensions regarding misutilisation of funds are baseless," Cabinet Secretary Shashank Shekhar Singh told reporters while handing over a booklet 'Rajyon ka Vikas: Kendria Sahayata ka Sach' (Development of States: Reality of Central assistance). In an apparent response to the Congress' 'Hisab Mango Abhiyan' (Demand accountability campaign) in which its leaders have alleged misutilisation of central funds, Singh said that in 2006-07 over Rs 30,000 crore was spent under planned expenditure and in the BSP regime in 2007-08, over Rs 36,000 crore was spent.

"Had the Centre released all the amount payable to the state, the expenditure under this head would have reached Rs 41,600 crore", Singh said, alleging that the financial allocations given to Bihar and Uttar Pradesh were below national average. He claimed that it was a misconception that state's development was ensured by resources given by the Centre only. The Centre was bound to provide assistance to states and there are provisions regarding this in the Constitution.

"They (Centre) are not obliging us by giving financial assistance. Centre has also not given any additional assistance to UP and even no positive decision has been taken on demands of the state for a package for Bundelkhand and other areas," Singh said.