Niti Aayog wants details of states' funds

However, unlike it predecessor, the Planning Commission, it does not have the power to reallocate funds

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Niti Aayog wants details of states' funds


Niti Aayog has sought details of different non-budgetary funds available with states and union territories for local development initiatives. This includes Campa, Corporate Social Responsibility (CSR) and the district mining funds, among others. 

The government’s premier think tank, however, does not have the powers to allocate funds to central ministries and states, a clout enjoyed by its predecessor -- the Planning Commission.  

In a letter to all state governments, Niti Aayog CEO Amitabh Kant said in the third meeting of the governing council, it was deliberated that non-budgetary funds available at the state or district level can be deployed in a better planned manner for “sustainable development,” which, it added, can have an impact on improving the quality of life in the state or district. 

The letter has sought minute details of all non-budgetary funds available with the states by September 26, including the authority through which they have been created, as well as the mechanism through which the funds are being collected and spent. 

“This is requested so that the best practices being observed in its utilisation can be shared with other states and we can all learn from such practices,” it states.

Kant’s letter, however, did not go down with many states, who felt the Aayog is interfering in the autonomy of states and in funds generated within itself. Some states have not yet furnished the details sought.

Multiple government sources across states said they lack clarity on the Niti Aayog’s intention of seeking details of their non-budgetary funds. 

“We don’t know why the Niti Aayog has asked for details of non-budgetary funds and if it will be given as inputs to the finance ministry for fund allocation to states, or if it will be used to frame any policy over deployment of such funds,” a state government official said. 

The official expressed fears that central funds given to states may also go down if central government feels there are adequate unutilised non-budgetary funds.

Another state official said that the deployment of non-budgetary funds for the state or a district should be at the discretion of the state government.  

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