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| Centre sets norms of expenditure for states under NFSA | | State's Central tax share hiked from 32% to 42 % | | Javaid Naikoo
Srinagar, Mar 26: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Narendra Modi, has set norms of the expenditure and pattern of central sharing on Central assistance to States including Jammu and Kashmir under the National Food Security Act, 2013 (NFSA), an assistance used for meeting expenditure on intra-state movement and handling of food grains and Fair Price Shop dealers margin. The norms of expenditure and pattern of central sharing has been divided as per category of States and special category States/UTs are the seven States of North East including Sikkim, the Hill States of Himachal Pradesh, Jammu & Kashmir and Uttarakhand and Island UTs of Andaman & Nicobar Islands and Lakshadweep. The decision has been taken for smooth implementation of the NFSA and benefit common masses and the assistance will be available to States/UT where implementation of NFSA has started, however the estimated financial assistance likely to flow to States/UTs annually, when the Act is fully implemented in all States/UTs, is Rs. 4,341 crore. Accepting the recommendations of the 14th Finance Commission, the Government had hiked the share of States in Central taxes, from 32 percent to 42 percent, increasing availability of funds at their end inspite of the reduced share of Govt of India.According to details the government has agreed to this additional burden in the cost of transportation of foodg rains and margins to fair price shops to ensure that the beneficiaries will continue to get food grain at subsidised prices. Implementation of NFSA has so far been started only in 11 States/UTs of the country and period for identification of beneficiaries and implementation of the Act had to be extended twice, upto 04.04.2015 as its implementation is yet to start in the remaining 25 States/UTs and it has again been extended upto 30.09.2015 and it is expected that this decision on Central assistance will incentivise the States/UTs for early roll out of the Act. According to details the National Food Security Act which came into force with effect from 5th July, 2013 amongst other things provides for legal entitlement to two-thirds of the population to receive food grains at highly subsidized prices of Rs. 1/2/3 per kg for coarse grains/wheat/rice respectively. The Coverage of beneficiaries under pre-NFSA TPDS is under three different categories of beneficiaries - Antyodaya Anna Yojana (AAY), Below Poverty Line (BPL) and Above Poverty Line (APL). Central Issue Prices (CIPs) for these categories of households are different, However, the States/UTs have been given flexibility to pass on the expenditure incurred by them on intra-State movement of foodgrains and dealers margin of fair price shops to beneficiaries (except AAY beneficiaries). Accordingly, many States/UTs are distributing foodgrains to beneficiaries under Targeted Public Distribution System (TPDS) at prices higher than the CIPs. In Jammu and Kashmir, step taken by Prime Minister is likely to check embezzlement of food grains in the name of Antyodaya Anna Yojana (AAY), Below Poverty Line (BPL) and Above Poverty Line (APL) on Fake Ration cards by Salesman at government Sale points to a large extent. The move has been started that beneficiaries across the country will receive food grains under NFSA at uniform subsidized price and States/UTs; do not have the flexibility to pass on the expenditure incurred by them on intra-State movement of food grains and fair price shop dealers margin to beneficiaries. |
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