Finance minister Asim Dasgupta on Thursday reacted on expected lines to the report of the 13th Finance Commission by asserting that states have been short-changed on the issue of shareable central taxes and added that he would lead a delegation of state FMs to discuss the issue with Union finance minister Pranab Mukherjee in April.
Dasgupta who also chairs the empowered committee of state finance ministers that is drawing up modalities for introducing the proposed Goods and Service Tax (GST) regime moreover claimed that Bengal itself could lose nearly Rs 3044 crore following the Finance Commission's suggestions as there was no provision for a revenue deficit grant this time around.
However, Dasgupta conceded that the state has also gained marginally in some respects. For all taxes, excluding service tax, its share has risen to 7.264% from 7.057%. For service tax, it has improved from 7.150% to 7.379%.
"So far, it (share of states in net proceeds of shareable central taxes) was 30.5% and we had wanted it to be increased to 50%, but the Finance Commission has only raised it to 32%. The state has a greater liability in discharging welfare activities and so the quantum proposed is inadequate," he said. "The insignificant rise is much below the expectations of states and thus, they are feeling deprived," he added.
Dasgupta said the finances of states have been weakened following their being forced to pay higher salaries to employees in the wake of the Centre accepting the recommendations of the Fifth Pay Commission. As a result, states had wanted the Centre to share part of the burden in this regard for the next two years, but the plea was not heeded.
Incidentally, the heads under which there has been substantial rise of allocation for the state includes education as earlier there was only Rs 391 crore for it. However, this time, Rs 2359 crore has been given for primary education. Even for environment, the budget has been hiked from Rs 15 crore to Rs 79 crore for forests and Rs 296 crore for waterbodies.
Under the state specific head, the allocation had been almost doubled from Rs 890 crore to Rs 1703 crore. The funds for police training is Rs 91 crore, police training facilities is Rs 72 crore and police housing Rs 90 crore. With Aila turning several thousand people homeless in last June, the Centre has provided Rs 450 crore for river embankment. Even for fire services, the fund is Rs 150 crore and there is an equal amount for border roads. While public health infrastructure would get Rs 300 crore for health sub-centres, an equal amount is meant for Anganwadi centres. For heritage, there would be a fund of Rs 100 crore.
Source: http://timesofindia.indiatimes.com/city/kolkata-/Asim-unhappy-over-finance-panel/articleshow/5617506.cms
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