Arunachal Pradesh government has decided to enhance the contribution to consolidated sinking fund and enlarge the coverage of the sinking fund for following committed liabilities, old and new pension schemes, final withdrawal from GPF, invocation of state guarantees, repayment of high cost loans.
The decision was arrived in a cabinet meeting chaired Chief Minister Nabam Tuki here yesterday, government spokesman Bamang Felix said in a statement here today.
The government had constituted consolidated sinking fund in the year 1999-2000 and has invested a total sum of Rs 169.90 crore so far.
The sinking fund account is being maintained with Reserve Bank of India, Felix said.
The RBI has invested the sinking fund contribution in the Government of India securities which earns a very good interest.
The total accumulated fund in the sinking fund would be more than 220 crore including interest accrued.
"The state government is contributing Rs 20 crore per year during last 3 years. The cabinet has enhanced the contribution to Rs 300 crore per year by contributing Rs 25 crore per month," the spokesman said.
The cabinet also decided to constitute a contingency fund of Rs 250 crore in the annual financial statement of the state government 2015-16 under the provision of Article 267 (2) of the constitution of India.
"This will enable the state government to make advances to tide over unforeseen exigencies," Felix informed.
