<transcript><audio_26>on account of unabated expansion of centrally sponsored schemes by whatever the name additional central assistance scheme or central assistance to the state plan etc such schemes now have fun allocations</transcript><transcript><audio_27>which run into over 2 lakh crores many of these schemes are implemented implemented through apparatus outside the state budget which of you obviously responsibilities to see the issue in perspective we have</transcript><transcript><audio_28>to begin with the distinction we have artificially created perhaps uniquely between plan and non-plan expenditure firstly it prevents badly required expenditure on non-planned items such as police and transport</transcript><transcript><audio_29>because everybody is competing to show a larger plan size secondly it has given the central government an instrument for preempting flow of funds from the central pool of taxes to the state</transcript><transcript><audio_30>the burgeoning size of the central plan inflates the requirement of the central government leaving only a smaller portion currently 32 for all the states combined in this sense it actually even preempts</transcript><transcript><audio_31>mandate of the finance commission which is limited by its implied non-planned mandate central schemes by whatever names have reduced the flow of untyped funds to the state even on the plan side</transcript> on account of unabated expansion of centrally sponsored schemes by whatever the name additional central assistance scheme or central assistance to the state plan etc such schemes now have fun allocations which run into over 2 lakh crores many of these schemes are implemented implemented through apparatus outside the state budget which of you obviously responsibilities to see the issue in perspective we have to begin with the distinction we have artificially created perhaps uniquely between plan and non-plan expenditure firstly it prevents badly required expenditure on non-planned items such as police and transport because everybody is competing to show a larger plan size secondly it has given the central government an instrument for preempting flow of funds from the central pool of taxes to the state the burgeoning size of the central plan inflates the requirement of the central government leaving only a smaller portion currently 32 for all the states combined in this sense it actually even preempts mandate of the finance commission which is limited by its implied non-planned mandate central schemes by whatever names have reduced the flow of untyped funds to the state even on the plan side
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