New Delhi: Demands for greater devolution of funds to States from non-NDA Chief Ministers dominated the first meeting of the Governing Council of NITI (National Institution for Transforming India) Aayog Prime Minister Narendra Modi chaired on Sunday at his 7 Race Course Road residence.
Tamil Nadu Chief Minister O. Panneerselvam pitched for higher flow of funds from the Centre to the states and demanded that States’ share of funding of flagship programmes be limited to 25 per cent only. Uttar Pradesh Chief Minister Akhilesh Yadav sought 90 per cent grants for central schemes saying Prime Minister Modi’s new mantra of ‘Sabka Saath, Sabka Vikas’ was not possible without provision of adequate resources to economically weaker states.
Kerela Chief Minister Oommen Chandy demanded that the Aayog continue with the functions the erstwhile Planning Commission performed — of determining, in consultation with the Union Finance Ministry and State Governments, the amount of resources to be made available to the States for Plan and Budget preparation. Mr. Yadav also stressed on continuation of Five Year Plans and said that the need in fact was for making even longer-term plans of 10- 15 years duration.
Noting that India cannot advance without all its states advancing in tandem, the Prime Minister said that he envisioned different states competing with each other in promoting governance initiatives, in a spirit of cooperative, competitive federalism, according to the official release. Mr. Modi said that though the world had started looking at India differently, the biggest challenge for the country still was how to eliminate poverty. He said jobs cannot be created, and poverty cannot be removed without growth. “First and foremost we should aim at a high rate of growth,” he said at the meeting, according to the official release.
Briefing reporters after the Council meeting, Union Finance Minister Arun Jaitley said: “States emphasised greater financial financial devolution from the Centre and greater flexibility in use of funds.”
He also said the Prime Minister announced that the Aayog would constitute three sub-groups of Chief Ministers. One, for recommendations of the 66 Centrally Sponsored Schemes which should be continued, transferred to States and shelved all together. A second sub-group for suggestions on how can the Aayog promote skill development in States. And, finally a third one for evolving a proposal on institutional mechanisms required for ensuring success of his pet project Swachh Bharat by way of integration into everyday life.
The Prime Minister also asked each State to set up two task forces under the aegis of the Aayog--one for focusing on the alleviation of poverty, and the other on agricultural development at the state-level with Central assistance.
The members of the sub-groups will be decided later, after Chief Ministers indicate their preferences.
Mr. Modi also urged States to build and upgrade toilets during the upcoming school vacations with the aim of ensuring that the target of toilets for all schools is achieved. He also suggested that a portion of the funds under the MPLAD and MLALAD schemes can be earmarked for cleanliness-related activities, until 2019.
The interaction was coordinated by Mr. Jaitley, and the opening remarks for the meeting were made by the Aayog Vice Chairman Arvind Panagariya.
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