Breaking News

Rs 37000 crore for all states

Chumthang News Service:
The Centre has released more than Rs 37,000 crore to all the states as the first instalment of devolution according to the 14th Finance Commission recommendations.

From among the northeastern states, in the first instalment released for the financial year 2015-16, Assam will receive Rs 1,242.76 crore, Arunachal Pradesh Rs 516.48 crore, Manipur Rs 231.27 crore, Meghalaya Rs 240.75, Mizoram Rs 172.40 crore, Nagaland Rs 186.68 crore, Tripura Rs 240.62 crore and Sikkim Rs 137.46 crore.

Topping the list among the 29 states is Uttar Pradesh where the allocation under the first instalment is Rs 6,735.81 crore. Under the first instalment, the total amount released by the Centre to the states in accordance with the commission's recommendations is Rs 37,420.86 crore, an official communiqué stated.

Uttar Pradesh is way ahead even if the total allocation to the states of the Northeast, including Sikkim, which stands at Rs 2,968.42 crore, is taken into account. The recommendations of the finance commission would be implemented for the five-year period from 2015 to 2020.

Among others, the commission had recommended an increase in the share of tax devolution to 42 per cent of the divisible pool as it would serve the twin objectives of increasing the flow of unconditional transfers to the states and yet leave appropriate fiscal space for the Union to carry out specific purpose transfers to the states. States like Assam had expressed resentment over the "inadequate" allocation made by the commission.

Assam chief minister Tarun Gogoi had recently said the government had sought Rs 307,430 crore but the commission awarded Rs 143,077 crore to the state, which would pose financial problems for the state and cause social unrest.

Gogoi had also urged all political parties, including the BJP, to protest against the recommendations of the commission. Besides, he had requested Prime Minister Narendra Modi not to change the special category status of Assam and other northeastern states by retaining the funding pattern of 90:10 central aid and loan enjoyed by these states.

For Meghalaya, the projected transfer of funds from 2015-2020 according to the commission's recommendations is Rs 27,270 crore, which is an increase of 177 per cent over the 13th Finance Commission award. Meghalaya had sought around Rs 50,000 crore from the 14th Finance Commission. Under the 13th Finance Commission, Meghalaya received Rs 9,842 crore as total transfers. It may be mentioned that apart from the share of central taxes and other financial awards, the 14th Finance Commission had recommended a total revenue deficit grant of Rs 194,821 crore during the award period for 11 states.

According to the report, Andhra Pradesh, Himachal Pradesh, Jammu and Kashmir, Manipur, Mizoram, Nagaland and Tripura would need a revenue deficit grant for each of the years of the award period. In addition, four states - Assam, Kerala, Meghalaya and Bengal - would need a revenue deficit grant for at least one of the years of the award period.

For Assam, the grants-in-aid for revenue deficit for the period 2015 to 2020 is Rs 3,379 crore while for Manipur, the amount has been pegged at Rs 10,227 crore for the same period. Meghalaya's grant has been pegged at Rs 1,770 crore while the amount for Mizoram, Nagaland and Tripura is Rs 12,183 crore, Rs 18,475 crore, and Rs 5,103 crore, respectively.

No comments