ABSTRACT
This chapter discusses the underlying fiscal issues that are relevant for the overall economic development of the northeast region (NER) and provides a broad overview of the fiscal position of the region in comparison with the overall position of the states of India. It also provides a review of literature, measures undertaken by the Government of India (GoI) and an empirical analysis. The Non-Lapsable Central Pool of Resources (NLCPR) created in 1997 is the accrual of the unspent balance of the mandatory 10 percent budgetary allocation of the ministries/departments. The broad objectives of the NLCPR scheme are to ensure speedy development of infrastructure by filling the existing infrastructural gaps in the region by making funds available from the pool. The Department of Development of North Eastern Region was set up in 2001 to coordinate and give impetus to the centre's development efforts pertaining to socio-economic development of the region. It was converted into a ministry in 2004.
