Orunodoi, NFSA may strain Assam finances, warns State Finance Commission

Guwahati, Feb 18: Two social security schemes of the government, Orunodoi and National Food Security Act (NFSA), will have a disastrous affect on State finances, according to the report of the Seventh Assam State Finance Commission.

“The schemes are no doubt laudable, albeit they touch a small segment of the needy population. More importantly, such a huge outgo annually will have disastrous affect on State finances since Government of Assam is silent about the modalities of funding it,” the committee headed by Lt Gen (retd) RP Kalita said in its report.

The third edition of Orunodoi is expected to cover Rs 37.2 lakh beneficiaries at the rate of Rs 1,250 per beneficiary. The annual financial impact will be a whopping sum of Rs 5,580 crore.

“In addition, under NFSA, Government of Assam proposes to distribute ration card to 19,92,167 beneficiaries who will be eligible to avail free food grain every month. The NFSA card holders will be entitled to free treatment under Ayushman Bharat scheme. The annual financial implication is Rs 5,280 crore at the rate of Rs 440 crore per month. The Government of Assam further proposes to integrate the Orundooi scheme with the ration card scheme, the combined annual financial impact being a substantial amount of Rs 10,860 crore,” the commission said.

The commission said that another notable feature affecting State finances is the gradual decline of its percentage share in the Central kitty of divisible pool created by the successive Central Finance Commission. For instance, Assam’s share in the divisible pool had been steadily declining from 4.12 per cent in the first report of the IX-CFC to 3.128 per cent in the second report of the XV-CFC.

“This has greatly impacted the flow of fund from the Centre in the shape of State’s share in Central taxes. For instance, a drop of mere 0.1 per cent in the percentage share entails revenue sacrifice of about Rs 758 crore,” it added.