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North East : Union Budget : Minor hike for Seven Sisters |
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The Union Budget for 2006-07 presented by Finance Minister P. Chidambaram on Feb. 28 has been generally welcomed by one and all. But it has come as a damper for this troubled region with industry and most political parties feeling let down by Chidambaram’s indifferent show.
The total annual allocation for the region which comprises seven states (known as Seven Sisters) has been increased by just 18 per cent for the year 2006-07. An amount of Rs 12,041 crore has been earmarked for the region. This includes a sum of Rs 1,350 crore for the DoNER ministry, another Rs 4,870 crore for “flagship programmes” and the mandatory 10 per cent that all ministries - barring some, like Defence - have to spend.
The ruling UPA government has devised eight flagship programmes in fields such as education, midday meals, sanitation and employment. A total of Rs 4,870 crore has been allotted for the programmes that will be implemented in the region.
Disappointing the DoNER ministry, Rs 700 crore has been given out under the central pool for the current year (it had sought Rs 1,020 crore) while the North Eastern’s Council budget has been fixed at Rs 600 crore (against a demand of Rs 1,337 crore).
DoNER minister P.R. Kyndiah put on a brave face, saying the budget is “pro-poor and focussed,” having provided a “fair deal” to the Northeast. He said, “There’s no reason to be dissatisfied though we expected a bit more.”
In Assam, opposition AGP’s reaction was acidic, with its MP Sarbananda Sonowal declaring: “The region has been ignored across all sectors, which is quite contrary to the commitment Prime Minister Manmohan Singh made during his visit to the Northeast in November 2004. This is a perfect recipe for widening the gap between the Northeast and the rest of the country.”
However, Chief Minister Tarun Gogoi said the budget reflected the UPA government’s concern for the welfare of rural sections of the population. He congratulated Chidambaram for enhancing the budgetary allocation for the DoNER ministry and for creating a special tea fund.
Most MPs from the region criticised the Centre for augmenting the DoNER ministry’s budget only marginally.
Another sore point is the Northeast Industrial Policy, which remains unchanged. “Let alone a revision of the Northeast Industrial Policy, there is not even a hint of one. Instead, the minimum alternate tax has been hiked from 7.5 per cent to 10 per cent. This tax violates the spirit of an `income tax-free zone’, which is part of the Northeast Industrial Policy,” Federation of Industries and Commerce of North Eastern Region (Finer) vice-president R.S. Joshi told newspersons.
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