Seeking continuation of existing funding pattern for special category states, Jammu and Kashmir chief minister Mufti Mohammad Sayeed today said any change in 90:10 grant-loan ratio for Centrally Sponsored Schemes (CSS) will have serious implications for the state.
Sayeed said states like J&K and those in the North East which have huge locational disadvantages coupled with challenging security scenario will be severely handicapped if the present funding pattern is done away with.
"We have seen a turnaround for the better in these states. The recommendations to change funding pattern and de-link some centrally sponsored schemes from Union support will seriously hamper the implementation of these schemes in a state like ours," Sayeed said while addressing the NITI Aayog sub-group of chief ministers chaired by Madhya Pradesh Chief Minister Shivraj Singh Chouhan.
"More than 86 per cent funds are being sourced to 17 flagship programmes under CSS. It will be prudent if the other 14 per cent funds allocated to 49 other schemes are transferred for a more coordinated implementation of CSS in the states," he suggested.
He said if the Centre does not meet its budgeted revenues, states will bear the brunt of the shortfall.
Referring to the state's weak resource base, he said J&K is experiencing difficulties in funding large number of CSSs and asked for continuation of financing scheme for CSSs as 90 per cent grant and 10 per cent loan.
"Keeping in view certain innate structural and infrastructural deficiencies afflicting the state, we are not in a position to take any Centrally Sponsored Scheme for outright transfer to the state budget," he said.
The Chief Minister asked the Centre to continue to treat J&K as a Special Category state, as recommended by the National Development Council.
Referring to the 14th Finance Commission, he called for implementation of cooperative federalism by considering more decision-making powers and greater devolution of Central taxes to the states.
He said the CSSs should not be treated on a stand alone basis and must be seen as part of an integrated fiscal federal system.
