Akhilesh writes to Modi invoking 'Cooperative Federalism'

Says UP would lose out on about Rs 9,500 crore during 2015-16

Invoking the spirit of 'cooperative federalism', Uttar Pradesh chief minister Akhilesh has written a letter to Prime Minister Narendra Modi seeking 'expected cooperation' to strengthen the judicial system.

Yadav referred to Modi's letter of April 23, 2015, which had exhorted the states to provide adequate funds for strengthening judiciary under 'fiscal space' created by the increase in central devolution of funds as per the recommendations of the 14th Finance Commission.

In his letter, the CM mentioned for 2015-16, UP's share in central taxes has been projected at Rs 86,729 crore in the state budget after estimating 15 percent rise in its share of taxes at Rs 75,416 crore for 2014-15.

However, as per the recommendations of the 14th Finance Commission, the state's share has been pegged higher at Rs 94,314 crore in the central budget. In essence, the additional 'fiscal space' conceded to UP is merely Rs 7,585 crore, Yadav said.

He further mentioned some centrally funded schemes had been de-linked from the budgetary provision. Besides, UP was not likely to gain additional aid/grant under the recommendations of the 13th Finance Commission.

Therefore, UP would lose out on about Rs 9,500 crore during 2015-16 and the available 'fiscal space' of Rs 7,585 would be consumed thereon, the letter said.

Yadav claimed the budget for centrally funded schemes had shrunk by 44 percent in 2015-15 compared to last fiscal. This shortfall would have to be met by the states themselves. Although the picture is still hazy, yet the UP government had estimated additional burden of Rs 8,500 crore.

The situation would worsen if there was any shortfall in UP's share of central taxes pegged at Rs 94,314 crore, as has been experienced in earlier years, the letter said.

In this context, Yadav said, UP would be unable to provide funds on its own to the judicial system in the next five years as envisaged in the recommendations of the 14th Finance Commission.

To buttress his point, he referred to a SC judgement of April 19, 2012, which had ruled that the central and state governments would equally incur expenditure towards judicial system.