Finance Commission recommends Rs 19,309 cr devolution to Himachal for FY20

The 15th Finance Commission has recommended devolution of Rs 19,309 crore to Himachal Pradesh for the year 2020-21, Industries Minister Bikram Singh said.

In a statement issued on Saturday, Singh said the 13th Finance Commission only awarded an annual average grant of Rs 4,338.4 crore to Himachal Pradesh when the UPA-II government led by Congress was in power at the Centre.

Singh said the people of the state were thankful to Prime Minister Narendra Modi-led NDA government for enhancing the grant by over Rs 50,000 crore for the state in 14th Finance Commission for 2015-19 in comparison to the grant provided by 13th Finance Commission for 2010-15.

The average annual grant under was increased by Modi to Rs 14,407 crore in 14th Finance Commission and now to Rs 19,309 crore in 15th Finance Commission for 2020-2021, he said.

He alleged that the UPA government discriminated with the state.

The previous Congress government did not make efforts to get financial assistance for the state and therefore failed miserably in getting higher grant from the Finance Commission due to which development activities in the state suffered.

The minister said the report of 15th Finance Commission has been submitted to the Government of India.

Out of the Rs 19,309 crore recommended for state, Rs 11,431 crore has been recommended as revenue deficit grant, Rs 6,833 crore as tax devolution, Rs 636 for local bodies and Rs 409 crore to the State Disaster Relief Fund, Singh said.

As compared to the 14th Finance Commission, there is an increase of 40.69 per cent in revenue deficit grant, 21.05 per cent in share of central taxes, 18.51 per cent in rural local bodies, 417.50 per cent in urban local bodies and 74.04 per cent in state disaster relief fund, he added.

The average annual award during 14th Finance Commission was Rs 14,407 crore, while this year the state has been awarded Rs 19,309 crore with overall increase of 34.03 per cent, he added.

The minister said that the local body grants would be given to Zila Parishads, Panchayat Samitis and Cantonment Boards of the state, apart from other local bodies like Municipal Corporations, Municipal Committees, Nagar Panchayats and Gram Panchayats.

Himachal Pradesh Chief Minister Jai Ram Thakur had strongly taken up the matter with the Finance Commission for providing more grants in these sectors, he said.

It is due to his efforts that the Commission has enhanced the revenue deficit grant of the state as compared to the 14th Finance Commission, he added.

The Minister said that recommendations of Finance Commission would help Himachal Pradesh government give a push to developmental and infrastructure activities in the state.

The 15th Finance Commission is yet to give its recommendations for 2021-22 to 2025-26, he said, adding that the state government would continue to pursue issues of Himachal Pradesh with the Commission, whose final report is expected in October 2020.