Himachal suffers due to abolition of Planning Commission

Annual Central Assistance (NCA) and Special Plan Assistance(SPA) of Rs.3000 crore, stopped from 2015-16: HP Government
Dharamshala, October 18, 2016: Reacting over the Coments of PM in Mandi rally ,a Spokesperson of the State government said here today that under the NDA government, the State has grossly suffered due to abolition of the Planning Commission. Himachal Pradesh has been deprived of funds which used to flow from Planning Commission.
He said the State Government used to receive Normal Central Assistance (NCA), Special Central Assistance and Special Plan Assistance(SPA) totaling about Rs. 3000 crore per annum, which was stopped from 2015-16 onwards.
With abolition of Planning Commission, an important source of funding has totally dried up for a revenue deficit State like Himachal Pradesh. Himachal Pradesh has lost over Rs. 6500 crore on this account in last two years.
The Spokesperson said discontinuation of Centrally Sponsored Schemes like Backward Region Grant Fund (BRGF), National e-Governance Programme and hugely reduced allocations under Central Sponsored Scheme of Accelerated Irrigation Benefit Programme (AIBP)&Flood Management Programme (FMP) have adversely impacted the fiscal space of Himachal Pradesh. Hundreds of crores of Central Assistance has been denied under these schemes which have affected several development schemes in Chamba and Sirmour districts (due to stopping of BRGF) and Una, Kangra, Mandi and Hamirpur districts due to reduced funding under AIBP& FMP. Moreover, even the devolution of Central Taxes to the States have declined in the last two years causing a loss of about Rs. 1500 crore.
He said the cumulative impact of reduced central funding in five years from 2015 to 2020 is expected to be over Rs. 20,000 crore. These figures clearly indicate that Himachal Pradesh is getting lesser funds from Central Government contrary to what has been claimed by the Central Government.