New Delhi: Haryana Chief Minister Bhupinder Singh Hooda on Thursday urged the Centre to allow flexibility to states in implementation of centrally-sponsored schemes.
Speaking at the National Development Council meeting in New Delhi on Thursday, Hooda asked the Planning Commission to drop the "arbitrary" distinction of expenditure as Plan and Non-Plan and instead classify it as Revenue and Capital.

"I would urge the Government of India as well as the Planning Commission to drop the arbitrary distinction of dividing the expenditure into Plan and Non-Plan. Instead, it would be desirable to follow the classification of Revenue and Capital expenditure," the CM said.

The Plan expenditure takes care of the expenses incurred on development and assets creation, while the recurring expenses come under the non-plan expenditure. He said the centrally-sponsored schemes or centrally assisted schemes should be so framed that states have enough flexibility for their effective implementation.
He suggested that states should be given a lump sum amount with certain broad guidelines and it should be left to states to design and implement the required programmes or schemes. With agriculture continuing to be the main source of livelihood for a majority of the rural population, Hooda demanded that MSP for agricultural produce be 50 percent more than the cost of cultivation.
He said that the rate of interest on crop loans should not exceed 4 percent per annum and the rate of interest on loan for non agricultural purposes should not exceed 7 percent. The Haryana Chief minister also strongly pitched for the state's share of water and demanded immediate inter-linking of rivers. "The final award of Ravi Beas Tribunal has not been published even after 25 years. The people of Haryana are, therefore, feeling betrayed," he said.
Hooda also raised the demand for prompt compensation of the loss of over Rs 6,000 crore to Haryana due to reduction of CST rate from 4 percent to 2 percent.


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