The issue of slash in the central share to the State Disaster Response Fund (SDRF) to 75 per cent from the 90 per cent recommended by the 14th Finance Commission was raised in Rajya Sabha on Monday.
Raising the issue during Zero Hour in the Upper House, Biju Janata Dal (BJD) member Prashanta Nanda said as per the recommendation of the 14th Finance Commission, states are required to contribute 10 per cent to SDRF, while remaining 90 per cent by the Union government.
However, the Centre -- in the explanatory memorandum accepted by recommendation of the 14th Finance Commission with modification -- said the percentage of share will continue to be as before in the ratio of 75:25 per cent once GST is in place, he said.
"Now, since GST was implemented with effect from July 1, 2017, the sharing pattern of SDRF ought to have been in the ration of 90:10 per cent ratio from 2017-18 onwards. But the Government released the central share for the SDRF for 2017-18 fiscal in the ratio of 75:25 per cent instead of 90:10 per cent," Nanda said.
Subsequently, a central minister in 2018-19 had informed the Upper House during Question Hour that the central share in SDRF for all states have been enhanced from 75 per cent to 90 per cent. About Rs 1690.35 crore in 2017-18 and Rs 1734.07 crore in 2019-20 was allocated.
"It has now been intimated that since GST has not been stabilised, the competent authority has decided that during 14th Finance Commission award period, the central share for SDRF shall remain in the same ratio as it was in the 13th Finance Commission," Nanda said.
The BJD leader urged the the Union Finance Minister to take steps to revert back to the sharing pattern of 90:10 per cent in SDRF in line with the recommendation of the 14th Finance Commission.