For UP,UPA’s stimulus may just be a tickle

The state government will push for a hike in central assistance and the Centre’s share in Centrally Sponsored Schemes (CSS) and central assistance for infrastructure projects,particularly in the irrigation sector.

The state is expected to raise the demand for the hike in assistance for Accelerated Irrigation Benefit Programme from present Rs 175 crore to Rs 350 crore per year.

But it is unlikely the Centre will accede to the states’ demand,keeping in mind the past record of the state when it comes to utilisation of central assistance.

During the current fiscal,UP is supposed to get Rs 21,343 crore from the Centre as its share in CSS,central assistance and special central assistance. But,the state has already lost Rs 821 crore meant for the National Rural Health Mission. It was deducted from the state’s allocation of Rs 1,661 for current year because of its failure to utilise the fund last year. In December last,Rs 250 crore of the World Bank funded “UP Health Systems Development Project” went unutilised. The World Bank refused to extend finance for the second phase of the project and the government had to scrap the project.

It is learnt there will be a lapse of over Rs 1,000 crore of central funds by March 2009.

Manjit Singh,Principal Secretary of Planning,however,said: “Till the end of December 2008,Centre has released 45 per cent of its share in CSS,grant and central assistance and the utilisation during the same period is 90 per cent.”

“We will plead for a hike in central assistance for the rural and urban poor,” said Singh. “For the urban poor,the state government will ask for hike in central assistance under the JNNURM. We also want a hike in assistance for houses for the poor,” he added. Moreover,the state will seek an increase in the number of housing units to be constructed in a year under Indira Avas Yojna from 2.5 lakh to 16 lakh.

The Urban Development department was to get Rs 676 crore from the Centre under different schemes. But so far,it has obtained only Rs 255 crore and is yet to furnish utilisation certificates of Rs 499 crore. The Rural Development department is to get Rs 8,325 crore from the Centre in 2008-09. But so far it has been able to obtain close to Rs 3,000 crore. Singh said there was no proposal for seeking central assistance for any new project.