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G Vinayak in Shillong
A whopping Rs 3.24 billion under various rural development schemes remained unspent in the fiscal 2000-01 out of a total allocation of Rs 9.76 billion meant for the seven north-eastern states, Union Rural Development Minister Venkaiah Naidu revealed in Shillong on Wednesday.
In Assam, the region's largest state, several rural development schemes are three-four years behind their implementation schedule, he said. Similar is the case with Arunachal Pradesh, which also defaulted in releasing the state's share of development funds.
Under an agreed formula, the Centre provides 75 per cent of the funds for rural development schemes, while the remaining 25 per cent must come from the state's own resources. But most states fail to release funds for these projects forcing the Centre to withhold funds, Naidu said.
"Fund utilisation in most states was unsatisfactory," he said adding that only Mizoram was ahead in implementing rural development schemes.
The Union minister, however, agreed that fund crunch, insurgency, infrastructural backwardness and communication problems were major factors hampering proper implementation of rural development projects in the north-east.
Naidu spoke to reporters after chairing a meeting of rural development ministers of all seven north-eastern states.
He rejected demands by the north-eastern states for more funds, saying barely 55 per cent of the allocated money was being utilised by the states.
The total allocation of the Rural Development Ministry for the region was Rs 130 billion in addition to another Rs 50 billion provided by the Rural Infrastructure Development Fund of NABARD, he said.
Naidu was non-committal on the demand of the north-eastern states to change the funding ratio to 90:10 from present 75:25. "It is a complex issue and needs to be studied by the Union Cabinet and the Planning Commission," he said.
The minister pleaded for keeping the issue of rural development above party politics. "Unless we come back to reality and avoid populism we cannot do justice to the poor of the country," he said.
Assam Rural Development Minister Dr Bhumidhar Barman pleaded for "special treatment" for the region so far as funding ratio and release of funds are concerned.
He also pointed out that "the lack of economic development is the root cause of unrest in the region."
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