Centre to reimburse northeastern states’ burden of pay hike

February 20th, 2009 - 6:12 pm ICT by IANS  

Agartala, Feb 20 (IANS) The central government is likely to compensate the northeastern states for the whopping financial burden due to implementation of the recommendations of the Sixth Pay Commission, officials said here Friday.
“Deputy Chairman of the Planning Commission Montek Singh Ahluwalia during a meeting with Tripura Chief Minister Manik Sarkar in New Delhi Thursday said the issue was presented before the finance ministry for active consideration,” a government spokesperson said.

“The Deputy Chairman said a positive decision was expected soon.”

An allocation of Rs.16.80 billion has been finalised for Tripura annual plan for 2009-10, a hike of 15.86 percent over the current annual plan allocation of Rs.14.50 billion in the current fiscal.

Sarkar asked the central government to approach Bangladesh with an open mind to forge transit, trans-shipment trade and commerce relationship between the two countries.

“During the meeting with the Planning Commission, the chief minister also said that the formation of the new government in Dhaka has provided a fresh opportunity to strengthen bilateral relation between India and Bangladesh,” the official said.

Tripura Finance Minister Badal Choudhury later said the annual plan for Tripura for 2009-10 was not satisfactory.

“We refused to take any loan assistance, but the Planning Commission made it clear that Rs.7.63 billion out of Rs.16.80 billion would be sanctioned as loan and as a result, the loan burden of Tripura would cross Rs.50 billion,” Choudhury told journalists.

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