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A Platform for the Study of Societies, Cultures and Economic
Development |
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AREA OF FOCUS : ASSAM
The natural resource endowments and education levels of the
population not with standing, the NER represents one of the least
developed – economically and industrially – regions of the country.
This fact is clearly brought out by the following economic and
demographic features of NER, as compared with that of the country.
Per Capita Income of the Northeastern region as a whole is placed
amongst the poorest regions in the country. The per capita income at
Rs. 12407/- is less than the national average of Rs.17978/-
(2001-02).
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Table 1.1:
Per Capita Income (at constant 1980-81 prices) |
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Year |
1950-51 |
1960-61 |
1970-71 |
1980-81 |
1990-91 |
1995-96 |
1996-97 |
1998-99 |
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India |
1127 |
1350 |
1520 |
1630 |
2222 |
2608 |
2761 |
3132 |
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Assam |
1173 |
1140 |
1221 |
1284 |
1524 |
1606 |
1628 |
1708 |
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Difference |
46(+) |
210(-) |
299(-) |
346(-) |
698(-) |
1002(-) |
1133(-) |
1424(-) |
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Assam/India |
1.04 |
0.84 |
0.80 |
0.79 |
0.69 |
0.62 |
0.59 |
0.55 |
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Source: Government of Assam
Vision Assam 2025 |
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Between 1980 and 1990, per capita
income at 1980-81 prices grew by 20 per cent in Assam compared with
40 per cent for all India. Between 1980 and 1998 per capita income
in Assam grew by 10 per cent compared with 39 per cent for all
India.
Rapid growth of government and public sector employment has led to a
dead end. The Assam government spends 90 per cent of its budget on
salaries. Very little is left to provide services to the people or
to invest in development. To what extent, this has become a
government for the employees can be seen from the fact that the
government spends for reimbursement of medical expenses of its 4
lakh employees and their 16 lakh dependents more than that it spends
for the remaining 250 lakh citizens of Assam for providing medical
services.
The bloated government has also led to a fiscal crisis. The
government has a monthly over draft of Rs 200 crore. It cannot
mobilize even 10 per cent of the funds needed to benefit from many
centrally sponsored development schemes with a 90 per cent grant
component. It is unable to complete projects that go on forever
delaying completion and increasing costs. During the period 1993-94
to 1999-2000, when the all India rate of growth of Gross Domestic
Product (GDP) was around 6.68%, the growth of the State Domestic
Product (SDP) of Assam was only 2.49%.
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