New Delhi: The Centre is working out a financial package for West Bengal to tide over the huge problems the new government has inherited from the Left Front administration, Union Finance Minister Pranab Mukherjee said on Monday.

"We are working out a package through which we can provide necessary support to the state," he said, ahead of his meeting with West Bengal Finance Minister Amit Mitra here on Tuesday to discuss the state's finances and work out a recovery plan.

Mukherjee said Chief Minister Mamata Banerjee, who has inherited fiscal problems from Left Front's governance of over three decades, "requires accommodation" and the Centre has something to "accommodate her".

The mechanism of providing assistance was being worked in a sustainable manner, he said.

The Finance Minister's remarks come against the backdrop of recent sharp criticism by Banerjee of Mukherjee over his reported statement on assistance to West Bengal.

"I do not know how these remarks have been ascribed to me when the meeting (with Congress MLAs last week in Kolkata) was a closed door discussion and there was no interaction with media," he said.

Moreover, he said, no comment was made with reference to any particular  state including West Bengal and that he had no interaction during his stay in Kolkata.

Mukherjee said the meeting with MLAs on July 29 was to explain the financial provisions of the Constitution and the principles of financial devolution through Plans and Finance Commission and Gadgil and modified Gadgil formulae.

The newly-elected legislators were apprised of the issues relating to the Budget, transfer of resources from Centre to States, legislative control of money and finances and accountability of the executive to the legislature, he said.

When some MLAs raised some political questions, he advised them that these issues should be sorted out in the Pradesh Congress Committee, Congress Legislature Party and with the guidance of the AICC in charge.

Mukherjee said one major signal has already been given to West Bengal when the Planning Commission has sanctioned Rs.22,275 crore for developmental agenda.

The state has been given a plan for the current year of Rs.22, 250 crore, which is 59 per cent more than actual revised estimates of the previous year.

"The question is how to fund this plan and how to bridge the gap (between expenditure and income estimates)," he said adding, "we that the state does not come under a fresh debt trap".

The Minister said the Centre was trying to work out a formulation and mechanism and it would be for the state to implement and fulfill the plan.

(Agencies)