Frequently Asked Questions on 10% GBS for NER

 
What is the background and present status of earmarking 10% of Annual Budgets by Central Ministries?
 
  • It may kindly be recalled that in October 1996, the Central Government announcements of "New initiatives for the North Eastern Region" included a number of measures for the development of North Eastern Region. One of these was the policy decision to earmark at least 10% of Plan Budget(s) of the Central Ministries/Departments for the development of NE States. A preliminary exercise undertaken by he Planning Commission in consultation with the various Ministries / Department revealed that the expenditure on the North East by some Union Ministries during 1997-98 fell short of the stipulated 10% of the GBS for that year. Planning Commission thereafter explored the possibility of creating a Central Pool of Resources for the North East out of the unspent amount of stipulated 10% of GBS to support infrastructure development projects in the North East.
  • Since 1998 - 1999 all Ministries/ Departments of GoI (except a few specifically exempted ones) are earmarking at least 10% of their annual budget, less allocation for externally aided schemes and local or event specific schemes /projects for expenditure in the North Eastern Region. At present, there are 52 non-exempted Ministries / Departments which earmark funds for the NER (including the Ministry of Railways and the newly created Department of Pharmaceuticals).
  • The unutilized portion of the funds earmarked by the non-exempted Ministries is surrendered at the close of each financial year in the Non-Lapsable Pool of resources which is being maintained on a Performa basis.
What is the basis for exempting a Ministry / Department from earmarking allocation for NER?
How is the 10% earmarked outlay for NER of a non exempted Ministry calculated?
How do funds accrue to the Non-Lapsable Central Pool of Resources (NLCPR)?
Where are the accounts for NLCPR maintained and what is the management structure of the "Pool"/fund?
Is the entire amount deposited in the NLCPR available to Ministry of DoNER for allocation / spending?
How does the Ministry of DoNER project its annual requirement for whole / part of the pool?
If NLCPR is entitlement of NE States, what steps Ministry of DoNER has taken to ensure that the fund is made available?
What are the objectives of NLCPR Scheme?
Guidelines for Administration of NLCPR Scheme.
Allocation / Expenditure against ear-marked funds for the NER by non-exempted Ministries during 11th Plan (2007-08, 2008-09 and 2009-10)- Shortfall in utilisation by some Ministries.
What are the reasons for schemes of some of the line Ministries not picking up in the NER?
Initiatives of Ministry of DoNER for stepping-up utilisation of funds in the NER by line Ministries.
Is there a process for continuous review of demands from Ministries / Departments for exempting Department / Scheme from earmarking funds of the NER?