No retrospective special status to J&K, Assam

By Our Special Correspondent

NEW DELHI, JUNE 30. A full meeting of the Planning Commission, chaired by the Prime Minister, Mr. Atal Behari Vajpayee, on Friday ruled out any retrospective effect to the special category status to Jammu and Kashmir and Assam with effect from 1969.

Such a proposal was put on the agenda of the meeting, which took place in two instalments on June 27 and 29, in keeping with the demand from these two States which are enjoying the special category status from 1990-91. The special category status enables a State to get Central assistance in the form of 90 per cent grant and 10 per cent loan while other States get the same assistance in the form of 30 per cent grant and 70 per cent loan.

While these States had sought retrospective effect to the special status, the Union Finance Ministry had argued that the low interest and repayment burden would deprive these States of funds available under the head `non-Plan revenue deficit covering grant' and debt relief grant as proposed by various Finance Commissions, especially the Eleventh Finance Commission. Consequently, these States would not benefit much from the grant of retrospective status, the Ministry pointed out.

The Planning Commission meeting also came round to the view that since these States had been ``compensated'' by the Eleventh Finance Commission, there was no need for a double compensation. The difficulty involved in the scrutiny of accounts since 1969 till date was another aspect which was taken into account.

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Section  : National
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