Northeast Biggest Beneficiary Of GST, Says FM Sitharaman at The Conclave 2023

Union Finance Minister Nirmala Sitharaman on Saturday inaugurated ‘‘Asomiya Pratidin and Pratidin Time presents The Conclave 2023’ – a two-day programme organised under the aegis of Pratidin Media Network in association with Dalmia Cements and powered by SBI, DIPR, and NRL at The Ashok in New Delhi. 

Following the ceremonial lamp lighting by Shri Jayanta Baruah, proprietor of the Pratidin Group, alongside the Union Finance Minister, a short video on the history of the media group was played showcasing its many milestones including the prestigious Assamese dictionary "Hemkosh" that officially etched its name in the Guinness Book of World Records as the largest bilingual Braille dictionary.

Jayanta Baruah, in his welcome note, thanked the finance minister for her presence lauded the GOI's efforts for its commitment to stay on top even as the world economy is facing uncertain times and driving positive change in our society.

"The Conclave 2023 is more than just a gathering of minds; it is a platform where ideas converge, where thought leaders come together to engage in discussions that have the potential to shape the future of our region and the nation. It is a testament to the power of dialogue, the strength of diverse perspectives, and the importance of informed discourse. It is an opportunity to forge connections, to share insights, and to chart a path forward towards a brighter and more prosperous future," Mr Baruah said.

Sitharaman started her inaugural speech by recognizing the efforts made by the Pratidin Time group in upholding the fourth pillar of democracy. She also asserted that Government of India’s policy - since the time of the Atal Bihari Vajpayee - has been – not just to look East, but act East.

“…that is a very critical role to play in part of democracy, but more to play it in the Norhteast for whom connectivity, sharing of information and keeping democratic spirit alive are absolutely essential, particularly when the GOI’s policy since the time of Atal Bihari Vajpayee ji has been – not just to look East, but act East. So, as a vibrant force of democracy, I appreciate the emphasis that you (Pratidin Time group) in responsible journalism.”

Sitharaman also underlined the work that has been done for the Northeastern region by the Government of India led by Prime Minister Narendra Modi since 2014.

“In the last 9 years, the Prime Minister has visited the Northeast 60 times and if you want to put it all together, each minister including Minister of States, Cabinet Minister, minister belonging to the Council of Ministers - in the 9 years – 400 visits have been made,” she said, adding that the visits were not just to enjoy the beauty of the region but primarily to make sure that the Northeast is given a central focus and programmes that have been waiting for decades – get launched.

Further, the finance minister, also asserted that the GOI, under PM Modi, has vastly addressed the many connectivity issues that the region faces – not just symbolically but effectively. She cited Assam’s Bogibeel Bridge, Bhupen Hazarika Setu, Pakyong Airport in Sikkim, completion of Gauge conversion works in North East Region, and connection of state capitals with rail network.

Sitharaman also said that the introduction of the Goods and Services Tax (GST) which was also long-overdue, has been a game-changer for the Northeast.

She stated that the Northeastern states have been the biggest beneficiaries in the GST regime, recording a compound annual GST revenue growth rate of 27.5% since the implementation of the GST (2017-18 to 2022-23) as against 14.8% for all States [RBI report on State Finances].

Further, the finance minister informed that the Tax devolution to the Northeast has been more than quadrupled (4.67X) to Rs 5.06 lakh crore from 2014-24 (till July 2023), as against Rs 1.08 lakh crore from 2004-14. Moreover, the Grant in aid to the Northeast have more than doubled to to Rs 4.94 lakh crore between 2014-23, as against Rs 2.38 lakh crore from 2004-14, she said.

Sitharaman also stressed on the financial inclusion in the Northeast which plays a crucial role in ensuring that economic growth and development reach the poor and marginalised sections of society. Ensuring that financial inclusion reaches every corner of the Northeast has been a driving imperative for the Modi Govt, guided by the spirit of ‘Antyodaya’ and Sabka Sath Sabka Vikas, she said.

Keeping in view the importance of Regional Rural Banks in ensuring financial inclusion, she said that the GOI has decided to conduct a region-wise review of Regional Rural Banks across the 6 regions of India - the first being in Tripura in 2023.

Credit outreach campaigns have been held to meet the credit needs of the region, including Gangtok and Kohima to which loans worth over  Rs 3,000 crores and Rs 200 crores were sanctioned.

The finance minister also spoke about the Vibrant Villages Programme which was approved in February, 2023 as a Centrally Sponsored Scheme, for Financial Years 2022-23 to 2025-26 with financial allocation of Rs 4800 crore. It envisages comprehensive development of identified border villages so that residents do not have to migrate to other places. The programme focuses on 46 blocks abuƫting northern border in 19 districts of several Himalayan states including Arunachal Pradesh and Sikkim.

Notably, the GOI allows up to 80% of the project to be availed as external assistance and the remaining 20% is the counter funding by the Northeastern states, she said, adding that 90% of the external assistance component will be passed to the NE states as grant and only 10% of the loan component needs to be paid by the state.

Also Read: ‘The Conclave 2023’ To Kick off Tomorrow in New Delhi