With the Met Department predicting a "below normal monsoon" this year that is likely to affect the agro and allied industries, Minister of State for Finance Jayant Sinha on Saturday said the Centre is prepared to take on the challenge.
"Last year, monsoon was 88 percent of the long-term average. Despite that we were able to manage the overall situation quite well both in terms of supply of food items and inflation as well," he told media persons here while attending an event.
He added that emergency plans along with swift response mechanisms are in place.
With last year's experience to learn from, the Centre will be able to address concerns arising due to rainfall deficit, he said
"We will be able to handle all possible situations, whether deficient or otherwise," he said.
Sinha said the Centre will also be clearing the second tranche of the pending central sales tax dues to the states.
The Centre had decided to clear the pending taxes to the states in three tranches. The first one of nearly Rs.11,000 crore was paid to the states towards the end of the last fiscal.
He said the second instalment would be broken into two parts during 2015-16 and the following year and the third part of the dues would be paid in full to the states.
According to Sinha, non-clearance of these dues had resulted in states losing their trust in the Centre, an issue which he is addressing.
The total amount of unpaid sales tax due to the states, after clearance of the first tranche, is approximately Rs.19,000 crore.
