Rationale for Earmarking 10% of Annual Budgets by Central Ministries for the North Eastern Region
|Sl. No.||Year||Accrual to Non-Lapsable Fund (Rs. crores)|
|13||2010-11||[M/Fin.yet to confirm accounts]|
|Sl. No.||Year||Release under NLCPR Scheme (in Cr. Rs.)|
|4||Expenditure of NEC debited to NLCPR during 1998-99 to 2009-10||1605.38|
|Cumulative accrual to the Notional Non-Lapsable Pool [till 2009-10]||Rs. 17213.45 cr|
|Cumulative releases under NLCPR Scheme [till 2010-11]||Rs. 8796.13 cr|
|Estimated Balance in the Notional Non-Lapsable Pool||Rs. 8417.32 cr [est.]|
Non-Lapsable Central Pool Resources (NLCPR)
Non-Lapsable Central Pool Resources - Central (NLCPR-Central)
In accordance with the decision of the Government all Ministries / Departments unless specifically exempted from doing so are to make a Lump sum provision of 10% of their central plan allocation for projects / schemes for the benefit of North Eastern Region and Sikkim. The provision made for the Lump sum amount should be in accordance with the Budget Division letter of 28.01.00.
The Lump sum provision of projects / schemes for North Eastern Region and Sikkim should be made under the Major Heads '2552' for revenue expenditure and '4552' in case of capital expenditure under 'plan' side. These are shown as lump sum provisions in the Statement of Budget Estimates(SBEs)and Detailed Demands for Grants of the respective Ministry/Department, initially. Such sums are subsequently re appropriated to the functional heads of accounts for the purpose of incurring the expenditure. Reappropriations from the lump sum provision from the Major Heads '2552' and '4552' are carried out with the approval of Secretaries of respective Ministry/Department, who have, been delegated powers for this purpose through Finance Ministry's D.O.No.2(66)-B(CDN)/2001 dated 12.6.2001.
As per Office Memorandum F.No.2 (66)-B(CDN)/2001( Vol II) dated, 13th Sep, 2002 :---" It is important to make a realistic assessment of revenue and capital provision at the Budget formulation stage itself since reappropriation from revenue to capital and vice versa is not within the powers of the Ministries and will call for a supplementary provision. The practice of making provision for North Eastern Region and Sikkim should not be done under any other major head."---------"At the revised estimate stage, the lump sum provision should be 10% of the revised plan amount and depicted accordingly in SBEs." ----" with a view to maintaining uniformity across Ministries/Departments it has been decided that all Ministries/ Departments at the RE stage indicate lump sum provisions as 10% of the central plan RE amount unless exempt from making provisions for the region."----"In some Ministries/Departments there are large savings being reported under Major heads 2552 and 4552 at the end of the year on account of inadequate expenditure in the region. It is impressed upon all Ministries/Departments that expenditure in the region should be in conformity with the 10% requirement as has been laid down."
"Instances of reappropriations being proposed from lump sum provision in the North Eastern Region and Sikkim to Other Projects/Schemes outside the region have been received in this Ministry ( MOF ). It is reiterated that such proposals will not ordinarily be entertained in this Ministry. Expenditure should be undertaken on project/schemes in the region itself."
Copies of the Ministry of Finance Budget Division's circulars on Lump sum Provision for NER are annexed herewith.