The Hindu : National : Transfer of schemes next year, says Chidambaram

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Wednesday, Jul 28, 2004

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Transfer of schemes next year, says Chidambaram

By Our Special Correspondent

— Photo: Shanker Chakravarty

The Union Finance Minister, P. Chidambaram, being received by the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia, before a meeting at the Yojana Bhawan in New Delhi on Tuesday.

NEW DELHI, JULY 27. Transfer of the Central Government-sponsored schemes to the States is likely to take place next year as the Planning Commission would have to undertake a detailed analysis of the numerous schemes. Besides, the Union Finance Minister, P. Chidambaram, has suggested to the Commission to drop some of the minor schemes which had no social impact or had become redundant over time.

At the same time, Mr. Chidambaram suggested that the focus should be on visible, feasible schemes which could be transferred to the States. It was also suggested that the Commission should analyse the absorptive capacity of the schemes so that fresh money was not unnecessarily blocked in them.

Fund for CMP

The suggestions from the Finance Minister came during a meeting he had with the Planning Commission members here today. "We discussed priorities, rearranged priorities and the possibility of providing money for the Common Minimum Programme's objectives and allocating the additional Rs. 10,000 crores," the Minister told the media after the meeting. Implications of an expanded Sarva Shiksha Abhiyan and mid-day meal scheme and food for work programme were also discussed, Mr. Chidambaram said.

This was the first high-level interaction between the Commission and the Finance Minister during which the Deputy Chairman, Montek Singh Ahluwalia, members and the advisers of the Commission exchanged views.

Mr. Chidambaram said the Government wanted the Planning Commission to think ahead and advise on what should be done in the next Budget.

"No radical changes are immediately possible but it can be expected by the end of the financial year," he added.

Mr. Ahluwalia said the Rs. 10,000 crores given to the Planning Commission for allocation to various agencies was "sufficient."

He said the Finance Minister had asked the Commission to identify Centrally-sponsored schemes that could be transferred to States and give greater focus to relevant programmes. Phasing out of non-relevant schemes, merger with mainstream programmes and the absorptive capacity of ongoing programmes were also discussed in the meeting.

Mid-day meal

"The schemes which are more efficient will be given more funds. We also discussed transferring mid-day meal schemes to the States while retaining other welfare programmes with the Centre for their implementation according to the CMP," he added.

Commission sources later said Mr. Chidambaram made a special mention of the nationalprogramme for rural industrialisation and the scheme for regulation of markets among those that have lost relevance besides having paltry financial allocation of Rs. 45 lakhs and Rs. 25 lakhs respectively.

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