Finance Minister Nirmala Sitharaman on June 21 chaired a pre-Budget meeting with Finance Ministers of states and Union Territories.

"The Centre has the responsibility of setting the direction of the economic growth while it is the responsibility of the states to implement," said Sitharaman.

The Finance Minister said that unprecedented level of devolution of funds has taken place from Centre to the states and devolution to states has increased in recent times from Rs 8,29,344 crore to Rs 12,38,274 crore.

The share of the states in tax devolution has increased from 32 percent under 13th Finance Commission to 42 percent in 14th Finance Commission during the first tenure of the present government.

"We have sought increase in Union grant to Delhi from Rs 325 crore to Rs 6,000 crore as per formula. For the last 25 years we are getting a meager Rs 325 crore as grant and it needs to change," Delhi's Finance Minister Manish Sisodia said after the meeting.

Delhi government, led by Arvind Kejriwal, had been demanding that the share in central taxes and duties for it be increased.

According to him, Delhi's share in central taxes has remained static at Rs 325 crore since 2001-02.

In the Interim Budget, the Centre had allocated Rs 1,112 crore for Delhi in the Union Budget, while keeping its share in central taxes and duties unchanged.

Sisodia also said the Centre should compensate Delhi for lost Integrated Goods and Services Tax (IGST) compensation of around Rs 3,500 crore as the undistributed IGST went to the consolidated fund of India and got distributed to states in an ad hoc basis as per Finance Commission devolution formula.

"We sought increase in PM Kisan scheme allocation. Also need more allocation for road constructions in left-wing extremism hit areas," said Chhattisgarh chief minister Bhupesh Baghel.

Published On : 21-06-2019

Source : Money Control

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