Shillong, Jun 19: Chief Minister Conrad K Sangma on Friday said the state has requested the Union government to remove the ceiling on externally aided projects (EAPs) for Meghalaya during the 16th Finance Commission period, arguing that the limit “penalizes efficiency”.
Speaking to reporters after Union Finance Minister Nirmala Sitharaman laid the foundation stone for ₹1,246 crore worth of EAPs in Meghalaya, the Chief Minister explained the background of the ceiling imposed during the last Finance Commission cycle.
“In the last finance commission period, in the beginning half the ceiling was not there for the different states of the North East. As I mentioned to you, 90 percent of the loan taken is repaid back by the Government of India,” he said.
He added that because some states, including Meghalaya, were able to secure more projects, the Finance Ministry later introduced a cap. “Therefore, the finance ministry felt that they should put a ceiling on how much a state can take. So, I jokingly told madam at that time that you are penalizing us for our efficiency but she said, ‘look you don’t have to repay back, we have to repay it back, so obviously we will look at all the aspects’,” Sangma recalled.
Under the previous arrangement, Meghalaya was given a ceiling of about ₹3,500 crore. The state, however, exceeded that limit significantly through proactive planning.
“But as you know, add up altogether the projects that we managed to get and cook up for ourselves was about ₹12,000 crore. That is how we worked very hard and we got that,” the Chief Minister said.
For the 16th Finance Commission period, the state has formally appealed for a removal of the cap.
“This year we have requested that the ceiling concept should not be there for the 16th Finance Commission period. So, it is really up to madam Finance Minister and Government of India and especially to the Prime Minister to decide on that. We have put in our appeal, our request because if the ceiling is not there then obviously, we can pitch in more,” he stated.
Sangma also clarified the cost-sharing structure of EAPs, noting that states still bear a significant portion.
“At the end of the day we have to also remember that state governments still have to pay 28% of the amount. So, it is not that we can keep on going unlimited into as much as we want. 72% is repaid back or paid by the Government of India, 28% comes from the state government. So we still need the capacity to be able to pay at least the 28% also,” he said.
Expressing hope for a more performance-based approach, he added, “Keeping those challenges in mind, we are hopeful that the ceiling will be much higher than it was last time and the states that are able to absorb and are able to perform better will be allowed to do that in the future.”
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