Pondy CM urges Union Home Ministry to increase 'normal central assistance' to union territory

Puducherry, Sep 23 (PTI) Chief Minister N Rangasamy on Monday urged the Union Home Ministry to increase the 'normal central assistance' (NCA) to Puducherry and make a formula-based assistance equivalent to the Finance Commission's grants.

The CM presented a detailed note to the Union Home Secretary Govind Mohan during the latter's meeting with him in his chamber here and made out a case for enhanced NCA to the Puducherry government.

He stated in the note that "being a Union Territory, Puducherry has not found a place in the Terms of Reference in the successive Central Finance Commissions and therefore devolution of funds has not been provided on the basis of the recommendations of the Finance Commissions".

The CM said the Puducherry government's committed expenditure such as salaries, pension, debt servicing and purchase of power has increased considerably over the years.

"Union Territory of Puducherry is a small geographical area with a very little consumption base and the scope of additional revenue mobilisation through taxes is very limited after the implementation of the Goods and Services Tax (GST)," he said.

The Union Territory administration is therefore critically dependent on the NCA released by the Government of India.

In the budget estimates of 2024-2025, the Centre had allocated NCA to Puducherry administration with only 4.85 per cent growth over the preceding budget estimate (2023-2024).

"Hence it is requested to increase the NCA and make it formula-based equivalent to Finance Commission's grants Until then, the Union Territory of Puducherry may be considered for an increase in NCA by at least ten per cent every year," he stated in the memorandum.

He requested the Union Home Ministry to grant special Central assistance to the tune of Rs 200 crore in the revised estimate of the budget 2024-2025 and Rs 250 crore in the budget estimate of 2025-2026 for effective implementation of grant of monthly financial assistance of Rs 1,000 for women head of families, grant of subsidy for the LPG cylinder at Rs 300 per cylinder per month in respect of below poverty line ration card holders and Rs150 per cylinder for the above poverty line ration cardholders as a support intervention.

He said that Puducherry government had submitted a proposal seeking "special central assistance (infrastructure)" to the tune of Rs 5,828 crore to building capital infrastructural facilities in the Union Territory such as airport expansion, Integrated Assembly complex, health infrastructures upgradation, setting of Medical and National Law Universities.

Rangasamy made out a case for clearance from the Home Ministry for distribution of food grains under the State free rice scheme instead of continuing the present practice of Direct Benefit Transfer (DBT) mode.

"The people of Puducherry emphasise that the government supply the food grains 'in kind through fair price shops instead of adopting the DBT mode.' People from the unorganised sector particularly express the view that the money deposited in their bank accounts would not fulfill their food demand and that the money is spent for other purposes," Rangasamy stated in his note.

An official release said that the Union Home Secretary held discussions with the officials of Puducherry Administration reviewing implementation of Central government`s flagship schemes in the union territory and also implementation of the new Criminal laws.

Puducherry State DMK secretary and opposition leader in the Assembly R Siva and AIADMK State secretary A Anbalagan had separate meetings with the Home Secretary and presented memorandum seeking waiver of loans due from Puducherry to the Centre among other things. PTI COR KH