Guwahati: Two flagship social security schemes of the government, Orunodoi and the National Food Security Act (NFSA) could place severe strain on the state’s finances, the Seventh Assam State Finance Commission has cautioned in its latest report.
While acknowledging that the schemes are “laudable,” the Commission observed that they benefit only a limited section of the needy and involve a substantial recurring expenditure. “Such a huge annual outgo will have a disastrous effect on State finances, particularly as the Government of Assam has not clearly outlined the modalities for funding these programmes,” the panel, headed by Lt Gen (retd) R.P. Kalita, noted.
According to the report, the third edition of Orunodoi is projected to cover 37.2 lakh beneficiaries, each receiving Rs 1,250 per month. This would result in an estimated annual financial burden of Rs 5,580 crore.
In addition, the state plans to issue NFSA ration cards to 19,92,167 beneficiaries, entitling them to free food grains every month. NFSA cardholders would also qualify for free medical treatment under the Ayushman Bharat scheme. The Commission estimated the yearly financial implication of the NFSA rollout at Rs 5,280 crore, calculated at Rs 440 crore per month.
The report further highlighted the government’s proposal to integrate the Orunodoi scheme with the ration card programme. If implemented, the combined annual expenditure on the two schemes would rise to Rs 10,860 crore — a figure the Commission described as “substantial.”
Beyond welfare spending, the Commission flagged a structural concern affecting Assam’s revenue position— the gradual decline in the state’s share of Central taxes from the divisible pool recommended by successive Central Finance Commissions. Assam’s share, it noted, has decreased from 4.12 per cent in the first report of the Ninth Central Finance Commission to 3.128 per cent in the second report of the Fifteenth Commission.
“This decline has significantly impacted the flow of funds from the Centre. Even a marginal reduction of 0.1 per cent in the State’s share translates into a revenue loss of approximately Rs 758 crore,” the report stated.
The Commission underscored the need for careful fiscal planning to ensure that welfare commitments remain sustainable without undermining the State’s financial stability.