Technical Supplement

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Technical Supplement TECHNICAL SUPPLEMENT TO THE MAIN REPORT OF THE THIRD ASSAM STATE FINANCE COMMISSION (2006-2011) (VOLUME – III) H. N. DAS Chairman Janata Bhawan, Dispur Secretariat (Old) Guwahati March, 2008 Table of Contents Item Statement No pages 1. Technical supplement to the Main Report of the Third Assam State NA 436-437 Finance Commission 2. Note on the Devolution framework NA 438-441 3. Control Parameters for Construction of Devolution Indices S – 1 442 4. Statement showing the basic parameters used for determining the S-2 443 District wise allocation of rural leg of Divisible Pool 5. Statement showing the multiplying factors for each Zilla Parishad S-3 444 (ZP) 6. Statement showing year wise projected devolution to Zilla Parishads S-4 (ZP) 445 during the four year period (2007-11) 7. Statement showing year wise and district wise projected devolution S-4 (AP) 446 to Anchalik Panchayats during the four year period (2007-11) 8. Statement showing district wise and year wise projected devolution S-4 (GP) 447 to Gaon Panchayats during the four year period (2007-11) 9. Statement showing district wise and year wise projected devolution S-4 (ALL PRIs) 448 to all PRIs during the four year period (2007-11)) 10. Statement showing district wise and year wise projected devolution S-4 (ULBs) 449 to ULBs during the four year period (2007-11) 11. Statement showing district wise and year wise total projected S-4 (Total) 450 devolution during the four year period (2007-11) 12. Statement showing the population share, multiplying factors and S-5 451-455 projected devolution to the Anchalik Panchayats (ZP wise) during the four year period (2007-11) 13. Statement showing the population share, multiplying factors and S-6 projected devolution to the Gaon Panchayats (AP wise) during the four year period (2007-11) a. Dhubri S-6 456-460 b. Bongaigaon S-6 461-462 434 Table of Contents c. Goalpara S-6 463-465 d. Barpeta S-6 466-469 e. Nalbari S-6 470-472 f. Kamrup (including Kamrup Metropolitan) S-6 473-478 g. Darrang S-6 479-481 h. Sonitpur S-6 482-486 i. Lakhimpur S-6 487-489 j. Dhemaji S-6 490-492 k. Morigaon S-6 493-495 l. Nagaon S-6 496-503 m. Golaghat S-6 504-508 n. Jorhat S-6 509-512 o. Sibsagar S-6 513-516 p. Dibrugarh S-6 517-519 q. Tinsukia S-6 520-522 r. Karimganj S-6 523-525 s. Hailakandi S-6 526-528 t. Cachar S-6 529-534 14. Statement showing the basic parameters of ULB's used for S-7 535-538 calculation of devolution indices 15. Statement showing the calculation of composite devolution indices S-8 539-542 for ULB's 16. Statement showing the multiplying factors and projected devolution S-9 543-546 to ULB's during the four year period (2007-11) 435 Technical supplement to the Main Report of the Third Assam State Finance Commission 11.1 The Ad Interim Report of the Third Assam State Finance Commission was submitted to the Government of Assam on March 31, 2007. It was formally presented to the Chief Minister on April 26, 2007. 11.2 In the Ad Interim Report certain principles were recommended for the constitution of the Divisible Pool and the distribution of funds to PRIs and ULBs out of the Divisible Pool. The multiplying factors for this purpose for all the PRIs and ULBs were worked out and presented in September , 2007. 11.3 The data supplied to TASFC earlier for calculation of indices were revised later. TASFC had to work for cleansing and revalidation of the population data. Now the Technical Supplement is prepared with updated d ata. The projected devolution is calculated for all 2479 (2202 GPs, 185 APs, 20 ZPs and 72 ULBs) entities for all the 4 years (2007-11). It had been recommended in the Ad Interim Report that no devolution need be made for the year 2006-07. 11.4 The spread sheet developed for the purpose is param eterized and can be used by GOA while making devolution of any amount to PRIs and ULBs. In this connection the note appended may be referred to. 11.5 As per TOR the Divisible Pool is for the state of Assam excluding the areas falling within the units formed under the Schedule VI of th e Indian Constitution. 11.6 The entire amount of the Divisible Pool (DP) is to be given as untied funds to PRIs and ULBs during 2007-11. It is recommended that the amounts should be utilized by each PRI and each ULB for non-plan expenditure on salaries and 436 establishment, on repair and rejuvenation of water supply and sanitation projects, on repair of local roads and other public assets, on solid waste management schemes and on any other locally felt needs. The decision should be left to the respective PRIs and ULBs. (H.N.Das) Chairman (Davinder Kumar) (Dr. Ashish Bhutani) Member Member (Biren Dutta) (K.V.Eapen) Member Member Secretary 437 Note on the Devolution framework 1. The Multipliers to be used for distribution of fund under the Divisible Pool to PRIs and ULBs in Assam have been constructed applying the methodology and variables as recommended by the Third Assam State Finance Commission (TASFC). 2. The Districts under BTAD viz. Kokrajhar, Chirang, Baska and Udalguri as well as the two Hills Districts viz. Karbi-Anglong and N. C. Hills have been excluded for the purpose of construction of the multipliers as these distric ts fall under Schedule VI of the Indian Constitution where a different system is followed. Moreover, forest areas are also not taken into account while deciding the area under different districts both for the rural and the urban sectors. All calculations relate to only the remaining areas of the State of Assam. 3. Due to formation of new districts under BTAD by carving out areas of some of the erstwhile districts, seven districts, namely, Dhubri, Bongaigaon, Barpeta, Nalbari, Kamrup, Darrang and Sonitpur have been affected in terms of area and population. The adjustment of Area and Population figures of these affected districts has been accomplished using the information supplied by the Directorate of Panchayat and Rural Development, Assam. Data related to the forest areas have been obtained from the Forest Department and necessary adjustments have been made accordingly. 4. The following GPs appeared in the Report of the Sec ond Assam State Finance Commission (SASFC). These are found to be non existent due to reasons mentioned against each. 1. Ganakkuchi G. P. Included under Barpeta M. B. 2. Gohpur G. P. Included in Gohpur T. C. 3. Margherita Nagar & Margherita G. P. Included in Margherita T. C. 4. Titabor G. P. Included in Titabor T. C. 5. Raha G.P. Included in Raha T.C. 438 5. Kamrup and Kamrup (Metro) are considered as one single district as there exists no separate Zila Parishads. However, for calculation of per capita NDDP the data related to only Kamrup district has been considered. 6. For estimation of multipliers in respect of Urban Local Bodies the necessary materials have been collected from the Directorate of Municip al Administration, Assam. The Area and Population of 5 Town Committees (Roha, Teok, Titabor, Dhakuakhana and Narayanpur) are approximated because these came into being after the Census of 2001. 7. The District Domestic Product (DDP) for the year 2004-2005 has been used for estimation of District Level Indicators for the rural sector. The DDP for the year 2004- 2005 has been prepared by the State Income Division of the Headquarters of the Directorate of Economics and Statistics, Assam. Methodology for distribution of the Divisible Pool among PRIs and ULBs a. The Divisible Pool is first apportioned between PRIs and ULBs on the basis of joint consideration of population and density of population as per the 2001 Census giving 80 percent weightage to population and 20 percent weig htage to population density. The population and density of the two Hill Districts vi z. Karbi Anglong and N. C. Hills District and the four districts under BTAD viz. Kokrajhar, Chirang, Baska and Udalguri have been excluded as these districts fall under th e Schedule VI. Moreover, population belonging to the Census Towns (CT) and Out Growth ( OG) areas has been included in the rural sector because no separate ULBs are in existence. The area under forest is also excluded in case of both rural and urban sectors. On the above basis the Rural: Urban ratio is estimated as 0.727637006: 0.272362994. b. The rural leg estimated as per para (a) above is allocated to 20 plain districts (considering Kamrup and Kamrup Metro as one) on the basis of rural population as per 2001 Census, rural area (excluding forest area) and per capita net district domestic product pertaining to primary sector net of mining and quarrying for the year 2004- 2005 at constant (1999-2000) prices. A composite index has been constructed with the above three parameters giving weightage as follows― 1. Rural Population 50% 2. Rural Area 25% 3. Per Capita DDP of primary sector net of mining and quarrying 25% 439 c. As regards per capita NDDP, the inverse method has been adopted by taking the inverse of the per capita NDDP of the year 2004-2005. d. The district rural fund arrived at as per para (c) above is allocated among ZP / APs / GPs in the ratio of 20: 30: 50. e. The allocation to ZPs is in the statement at S-4 (ZP).
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