MP Urges Finance Minister to Improve Funds Allocation for Andaman & Nicobar Islands

Tarun Karthick

Sri Vijaya Puram, 24 March 2025

Mr. Bishnu Pada Ray, Member of Parliament from Andaman & Nicobar Islands, met with Union Finance Minister Nirmala Sitharaman to debate the monetary challenges confronted by the Union Territory. During the assembly, the MP highlighted the necessity for elevated budgetary allocations, notably for capital expenditure, citing the area’s geographical remoteness and developmental wants.

Expressing concern over the monetary administration within the UT, Ray identified that roughly Rs. 600 crore had been surrendered by the A&N Administration over the previous 5 years. Additionally, Rs. 163 crore allotted for central schemes stays unutilized, whereas a particular monetary help bundle of Rs. 279 crore meant for rural street development has not been successfully obtained and utilised.

The MP additionally criticised the misallocation of funds by the UT Administration, alleging that precedence has been given to non-essential expenditures such because the beautification of LG Raj Niwas, officer residences, and the procurement of automobiles and luxurious facilities comparable to Air Conditioners and trendy furnitures. He argued that such expenditures mustn’t come at the price of essential public infrastructure initiatives.

Ray additional raised considerations over the UT Administration’s strategy to price range proposals, stating that elected representatives, together with himself, weren’t consulted in the course of the planning course of. He famous that the price range focuses totally on recurring expenditures comparable to salaries and liabilities, leaving restricted provisions for infrastructure growth. Due to this imbalance, key sectors like street, water, and electrical energy infrastructure, in addition to native governance our bodies comparable to Panchayati Raj Institutions (PRIs) and the Municipal Council, proceed to be underfunded.

Citing the affect of those budgetary shortfalls, Ray revealed that solely 36 km of rural roads had been constructed previously 5 years resulting from insufficient monetary assist to the PRIs. He emphasised that such deficiencies hamper the general growth of the area and have an effect on the standard of lifetime of its residents.

In mild of those considerations, the MP urged the Finance Minister to intervene and guarantee enough budgetary provisions for capital expenditure within the upcoming 2025-26 monetary 12 months. He pressured {that a} well-structured monetary bundle would assist bridge developmental gaps, improve infrastructure, and enhance the socio-economic circumstances of the folks within the strategically necessary but underdeveloped Union Territory.

Responding to the considerations, Finance Minister Sitharaman assured Ray that the matter could be examined for additional consideration.