52. I have already made a reference to the Chief Ministers' Conference on Basic Minimum Services. The Prime Minister intends to call another conference of Chief Ministers to discuss the political aspects of Centre-State relations and federalism. At the last conference, the Chief Ministers expressed the view that many centrally-sponsored schemes should be retained as such and should continue to be funded by the Central government. While we respect the views of the Chief Ministers, it is our desire that most Centrally-sponsored schemes should be transferred to the control of the State governments. In the meantime, States will be given greater flexibility in the implementation of these programmes. Provisions available under all other schemes will be pooled and the basic entitlement ratio will be worked out for each State. The States will be free to select for implementation, within their annual entitlement, such schemes that are more suited to their needs. The Ministry of Planning and Programme Implementation is working on the revised guidelines and procedures in consultation with the concerned Ministries and the States.
53. I also intend to circulate a discussion paper to Hon'ble Members on the 10th Finance Commission's recommendation to form a single divisible pool of taxes to be shared between the Centre and the States. Prima-facie, the Finance Commission's recommendation appears to be in the national interest but it will require an amendment to the Constitution. Hence, I wish to encourage a debate before a final decision is taken.
54. The Common Minimum Programme has promised that the Government will, within six months, bring out a detailed document that will articulate the priorities and programmes of the Ninth Plan. While a number of programmes have been initiated in this Budget, it will be our endeavour to prepare an Approach Paper to the Ninth Five Year Plan within four months. The Ninth Plan will target a growth rate of 7% per annum and will articulate strategies for decentralisation of responsibilities, for raising resources and for ensuring widespread growth. The initiatives that have been taken this year will be followed by a more comprehensive programme of social and economic development with the focus on elimination of poverty.
