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Give financial aid as per Gadgil-Mukherjee formula: Rawat to

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Press Trust of India Dehradun
Last Updated : Apr 05 2015 | 9:57 PM IST
Alleging neglect of his state in the General Budget and in allocations recommended by the 14th Finance Commission, Uttarakhand Chief Minister Harish Rawat has requested the Centre to continue giving financial assistance as per the Gadgil-Mukherjee formula.
In a letter to the Union Finance Minister Arun Jaitley, Rawat has said the 14th Finance Commission has failed to appreciate the state's peculiarity in terms of its geography and population, the CM's media in-charge Surendra Kumar said.
As per the 14th Finance Commission formula, the central assistance to the state has gone up by Rs 1,315 crore whereas it comes to Rs 2,800 crore if calculated as per the Normal Central Assistance and Special Plan Assistance, the CM has claimed in the letter.
Rawat wrote that it takes extra funds for development of states like Uttarakhand, owing to their population and geography.
The 11th Finance Commission had understood this fact recommending 90:10 assistance formula of which only 10 per cent was loan component, he claimed.
The CM also termed as "inappropriate" the 14th Finance Commission decision to take as base the development figure of 2004-08 to 2013-14.
Also mentioning the devastating flood in 2013, the Chief Minister said that the state has to deal with dwindling number of tourists in wake of the disaster and hence it faces difficulty in implementing welfare schemes.

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First Published: Apr 05 2015 | 9:57 PM IST

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