In a pre-Budget consultation held with the Centre on Wednesday, state finance ministers pitched for more funds, relaxation in fiscal deficit target and settlement of pending Integrated Goods and Services Tax (IGST) payments.
Both Bihar and Kerala had suggested raising the fiscal deficit limit for states to 4 per cent, while Delhi raised the issue of stagnation of share in central taxes for union territories with legislature since 2001-02, and West Bengal flagged the issue of budgetary resources amounting to Rs 7,300 crore for cyclone relief not having reached the state.
Delhi has also asked for augmentation of financial assistance to tackle the issue of stubble burning in Punjab, Haryana, Uttar Pradesh and Delhi, which has an impact on air pollution in the region.
“The biggest take home from pre-Budget discussion of FMs is suggestion by Bihar and Kerala to raise the fiscal deficit limit to 4 per cent. It was agreed to large number of states. In current year real expenditure of states will decline — a crazy macro outcome in time of recession,” Kerala’s Finance Minister Thomas Isaac said in a tweet.
“Cutting across political divide State FMs demand raising fiscal deficit, larger central allocation for programs Ayushman Bharat, social pensions and MGNREGS, support to farmers, interest subvention to SHGs and streamlining of central devolution to avoid ways and means crisis,” he said in another tweet.
Delhi’s Deputy Chief Minister and Finance Minister Manish Sisodia raised the issue of stagnation of share in central taxes for union territories with legislature. “Government of NCT of Delhi is only getting grants in lieu of share in central taxes and that too has been kept stagnant at Rs 325 crore since 2001-02 while all other states get an enhanced share in central taxes every year,” he said in his submission to Finance Minister Nirmala Sitharaman.
He also asked for augmentation of financial assistance to tackle of stubble burning.
West Bengal’s Finance Minister Amit Mitra said budgetary resources amounting to Rs 7,300 crore for cyclone have not reached the state.
He also said social expenditure needs to increase through budgetary provisions, especially at a time when “stagflation is knocking at our doors.”
The meeting was attended by Chief Ministers of Goa, Haryana and Puducherry, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Delhi, Tamil Nadu and Tripura as well as 17 Finance Ministers/Ministers representing their states. Union Minister of State for Finance & Corporate Affairs Anurag Singh Thakur also attended the meeting.
Sitharaman spoke about “Cooperative Federalism” and steps taken by the Centre to bolster growth of the economy, a Finance Ministry release said.
Tamil Nadu’s Deputy Chief Minister O Panneerselvam, in his proposal to the Centre, said the state has created two funds, Tamil Nadu Infrastructure Fund (TNIF) and the Tamil Nadu Shelter Fund (TNSF), and has requested the National Investment and Infrastructure Fund (NIIF) to make investment in these alternate investment funds from the “Fund of Funds” of NIIF.
He further said the Union Government is yet to provide the IGST arrears of 2017-18 amounting to Rs 4,073 crore to Tamil Nadu. “The initiative of the GST council to form a Group of Ministers to look into the issue is a welcome move,” he said.
Published On : 19-12-2019
Source : Indian Express
