GOVERNMENT OF INDIA
Ministry of Finance:
DEPARTMENT OF EXPENDITURE
UNSTARRED QUESTION NO 1938
TO BE ANSWERED ON THE 18TH MARCH, 2008 / PHALGUNA 28, 1929 (SAKA)
Grant to Karnataka .
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state:-
(a) whether the State Government of Karnataka has requested the Central Government for the release of a further grant of Rs.286.15 crores out of the unutilized incentive fund, in terms of the recommendations of the Eleventh Finance Commission; and
(b) if so, the present status of the case and by when the money is likely to be released to the State Government?
SHRI PAWAN KUMAR BANSAL
Minister of State in the Ministry of Finance
& (b): Some States including Karnataka had requested for pro-rata distribution of the undisbursed amount of Fiscal Reforms Facility Fund (FRF) of the Eleventh Finance Commission (EFC). Government of India has informed Government of Karnataka that Twelfth Finance Commission (TFC) reviewed the Fiscal Reforms Facility and found major drawbacks in the scheme. TFC did not recommend the continuation of the Fiscal Reforms Facility and the Incentive Fund. Therefore, Government of Karnataka has been informed that it is not possible to disburse the undisbursed portion of the incentive fund as the Scheme itself has been discontinued by TFC.