"Contrary to Singh's misleading assertion, NDA government has recommended highest ever increase in vertical tax devolution from 32 to 42 per cent for all states, including Himachal Pradesh, by accepting the recommendations of the 14th Finance Commission (FFC)," Nadda said.
During the meeting of State Planning Board recently, Singh had expressed concern over stopping of financial assistance to the tune of Rs 3,000 crore by the Centre following constitution of NITI Ayog and said that the matter had been raised with the Centre and NITI Ayog time and again.
Many centrally-sponsored schemes like Sarv Shiksha Abhiyaan, Command Area Development scheme, etc, where the share of the state government used to be in the range of 25 to 35 per cent, has been brought down to 10 per cent, giving a substantial relief to HP, he said.
"By maintaining 90:10 funding for these states, NDA government has devolved much more funds than UPA," Nadda said in a statement.
Also Read
grants to HP, the state is in a much better financial position to raise the spending in social and economic sectors.
"I would urge the state government to spend this enhanced allocation of funds from the central government wisely for better social and economic development of the state," Nadda, a Rajya Sabha MP from HP, said.
A total tax devolution of Rs 28,225 crore has been estimated to the state for the period 2015-20 against actual release of Rs 11,131 crore during the period 2010-15, an increase of Rs 17,094 crore over a period of five years, the union minister said.