Special fund for N-E’s urgent needs

Acknowledging special problems being faced by states like Arunachal Pradesh and other border areas, “which cannot be tackled in the usual course or through normal schemes”, Finance Minister P Chidambaram on Friday proposed to identify urgent needs of these areas and address them through a special mechanism and set aside Rs 500 crore in a fund dedicated for the purpose.

Stating that the North-Eastern Region (NER) would continue to receive special attention and enhanced allocations, Chidambaram proposed to provide Rs 1,455 crore to the Ministry of Development of North-Eastern Region (DONER). “Including this amount, the total Budget allocation for NER, spread over different ministries/departments, will increase from Rs14,365 crore in 2007-08 to Rs 16,447 crore in 2008-09,” Chidambaram said.