Assam spends very less on social & economic services: 15th Finance Commission

GUWAHATI: Assam is spending very less on social and economic services as compared to the north-eastern and Himalayan States. This has been stated by the 15th Finance Commission in its latest report which was submitted to the Centre.

"Assam has very low per capita expenditure on economic and social services. Poor budget marksmanship along with prolonged monsoon and limited working months in a year are the main reasons for low spending," said the Finance Commission in its report.

The 15th Finance Commission headed by MP N.K. Singh submitted its report to the Union Finance Minister Nirmala Sitharaman on Monday. The report said that Assam's per capita expenditure, capital expenditure and total expenditure are very low compared to the north-eastern, Himalayan and all States in the country.

The State's per annum per capital revenue expenditures on Health and Education are Rs 1,245 and Rs 4,516 respectively. In case of the NE and Himalayan States, the average per-capita revenue expenditures are Rs 1,987 and Rs 5,970 respectively.

The Finance Commission has found that Assam's OTR (own tax revenue)-GSDP (Gross State Domestic Product) ratio is slightly better than the north-eastern and Himalayan States. However, the State's collections from excise, stamp and registration are relatively low.

"Assam may be losing excise revenue from liquor due to its porous borders with the NE States. The State's subdued stamp and registration fees is due to a low urbanization rate (14%) along with poor land records," said the Finance Commission.

The Commission has recommended that Assam needs to tighten its revenue administration and find innovative ways to enhance its revenue earning. "The State Government needs to rationalize and restructure its expenditure. Measures should be taken to reduce the burden of committed expenditure so that resources are freed up for development expenditure," recommended the Commission.

The 15th Finance Commission in its report for the period 2021-22 to 2025-26 has asked Assam to increase its expenditure on economic and social services.

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