Central Plan Assistance
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| − | Financial assistance provided by Government of India to support State’s Five Year/intervening annual plans is called Central Plan Assistance (CPA) or Central Assistance (CA). | + | Financial assistance provided by Government of India to support State’s Five Year/intervening annual plans is called Central Plan Assistance (CPA) or Central Assistance (CA). |
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| − | Central Assistance in the form of ACA is provided also for various Centrally Sponsored Schemes viz., Accelerated Irrigation Benefits Programme, Rashtriya Krishi Vikas Yojana etc. and SCA is extended to states and UTs as additive to Special Component Plan (renamed Scheduled Castes Sub Plan) and Tribal Sub Plan. Funds provided to States under Member of Parliament Local Area Development Scheme @ Rs.5 crore per annum per MP also count as CA. | + | CPA or CA primarily comprises of the following: |
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| + | (a) '''Normal Central Assistance (NCA'''): The distribution of the NCA is formula based (see [http://arthapedia.in/index.php?title=Gadgil-Mukherjee_Formula Gadgil-Mukherjee Formula]) and is untied. Gadgil Formula of determining the Central Assistance to the State is being adopted from the fourth [http://arthapedia.in/index.php?title=Five_Year_Plans five year plan] and revised subsequently. Planning Commission makes the allocation and Ministry of Finance, release the funds in 12 Monthly Installments. | ||
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| + | (b) '''Additional Central Assistance (ACA):'''This is provided for implementation of externally aided projects (EAPs), and for which presently there is no ceiling. Unlike NCA, this is Scheme based. The details of such schemes are given in the Statement 16 of the [http://www.indiabudget.nic.in/ub2013-14/keybud/keybud2013.pdf Expenditure Budget] Vol. I. There can be One time ACA and advance ACA. '''One time ACA''' are assistance given by Planning Commission to particular States for undertaking important State specific programmes and schemes. These are one time assistance and thus not recurring. These assistances are discretionary in nature. '''Advance ACA''' are advances given to [http://arthapedia.in/index.php?title=Special_Category_States special category states] in times of financial stress and recoverable in ten years. | ||
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| + | (c) '''Special Central Assistance (SCA),''' which is provided for special projects/programmes e.g., Western Ghats Development Programme, Border Areas Development Programme etc. (In exceptional situations, Advance Central Assistance, may also be provided.) This special plan assistance is given only to [http://arthapedia.in/index.php?title=Special_Category_States special category states] to bridge the gap between their Planning needs and resources. In other words, SPAs are ACA to special category States. | ||
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| + | CPA is provided, as per scheme of financing applicable for specific purposes, approved by Planning Commission. It is released in the form of grants and/or loans in varying combinations, as per [http://finmin.nic.in/the_ministry/dept_expenditure/plan_finance/Plan_Finance/pf-terms.asp terms & conditions] defined by Ministry of Finance, Department of Expenditure. | ||
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| + | Central Assistance in the form of ACA is provided also for various [http://arthapedia.in/index.php?title=Central_Sector_and_Centrally_Sponsored_Schemes Centrally Sponsored Schemes] viz., Accelerated Irrigation Benefits Programme, Rashtriya Krishi Vikas Yojana etc. and SCA is extended to states and UTs as additive to Special Component Plan (renamed Scheduled Castes Sub Plan) and Tribal Sub Plan. Funds provided to States under Member of Parliament Local Area Development Scheme @ Rs.5 crore per annum per MP also count as CA. | ||
Revision as of 08:11, 28 June 2013
Financial assistance provided by Government of India to support State’s Five Year/intervening annual plans is called Central Plan Assistance (CPA) or Central Assistance (CA).
CPA or CA primarily comprises of the following:
(a) Normal Central Assistance (NCA): The distribution of the NCA is formula based (see Gadgil-Mukherjee Formula) and is untied. Gadgil Formula of determining the Central Assistance to the State is being adopted from the fourth five year plan and revised subsequently. Planning Commission makes the allocation and Ministry of Finance, release the funds in 12 Monthly Installments.
(b) Additional Central Assistance (ACA):This is provided for implementation of externally aided projects (EAPs), and for which presently there is no ceiling. Unlike NCA, this is Scheme based. The details of such schemes are given in the Statement 16 of the Expenditure Budget Vol. I. There can be One time ACA and advance ACA. One time ACA are assistance given by Planning Commission to particular States for undertaking important State specific programmes and schemes. These are one time assistance and thus not recurring. These assistances are discretionary in nature. Advance ACA are advances given to special category states in times of financial stress and recoverable in ten years.
(c) Special Central Assistance (SCA), which is provided for special projects/programmes e.g., Western Ghats Development Programme, Border Areas Development Programme etc. (In exceptional situations, Advance Central Assistance, may also be provided.) This special plan assistance is given only to special category states to bridge the gap between their Planning needs and resources. In other words, SPAs are ACA to special category States.
CPA is provided, as per scheme of financing applicable for specific purposes, approved by Planning Commission. It is released in the form of grants and/or loans in varying combinations, as per terms & conditions defined by Ministry of Finance, Department of Expenditure.
Central Assistance in the form of ACA is provided also for various Centrally Sponsored Schemes viz., Accelerated Irrigation Benefits Programme, Rashtriya Krishi Vikas Yojana etc. and SCA is extended to states and UTs as additive to Special Component Plan (renamed Scheduled Castes Sub Plan) and Tribal Sub Plan. Funds provided to States under Member of Parliament Local Area Development Scheme @ Rs.5 crore per annum per MP also count as CA.
