No stoppage of central funds to Himachal: Nadda

Union Minister J P Nadda today termed the allegations of stoppage of central funds to the Himachal Pradesh as baseless.
Chief minister Virbhadra Singh's allegations are aimed at misleading the people to divert their attention from "collapse of governance" in the state, Nadda said.
Refuting the claim of the CM, Nadda asserted that the NDA government led by Prime Minister Narendra Modi accepted the recommendations of 14th Finance commission and share of states in central taxes was increased from 32 to 43 per cent.
"This historic rise in central devolution and grants to the state is because of the efforts of the NDA government which also decided to increase the ratio of central government assistance in centrally sponsored schemes to 90 per cent, accepting the long standing demand of the state government.

Many of the centrally sponsored schemes like IAY,SarvShikshaAbhiyaan, RMSA, Command area development schemeetc.,where in the state government share used to be in the range of 25 to 35 per cent has been reduced to 10 per cent, which was a substantial help to the state, Nadda said.
He added that the "central government devolved enough funds to the state but unfortunately, the state government frittered away this windfall on non-productive assets.

"The CM is still functioning in a dole and patronage mode and contractors are determining investment priorities of the State," the Union Minister for Health and Family Welfare, alleged.

In a press release issued here today Nadda said, "Central government is committed to fiscal devolution in the true spirit of cooperative federalism and due to liberal release of central government grants by NDA government to Himachal, the financial position of the state is much better financial position to raise the spending in social and economic sectors.
He said, "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."
"All the cost disabilities of Himachal Pradesh like low level of economic activities, remoteness andproximity tointernational borders etc., have also been taken care ofwhile determiningitsshare in Central divisible pool.

Atotal tax devolution ofRs 28,225 crorehasbeen estimatedto Himachal Pradesh for the period 2015-20 against actual release ofRs 11,131 crore during the period 2010-15, an increase ofRs 17,094croreover a period of five years.
"Besides, grants-in-aidhas also been recommendedfor the State of Himachal Pradesh to the tune ofRs 43810 crore forthe period 2015-20,an increase ofRs 33356 crore over actual release during the period2010-15," Nadda added.
During 2015-16 alone, tax devolution to Himachal Pradesh is estimated atRs 3744crorewhich isRs 1100 crore more thanRs 2644 crore released during the previous year 2014-15.
Inaddition, FC grants ofRs 8436 crores (including the RD grant ofRs 8009 crore, will also flow to the State during 2015-16, which ismore than six times ofRs 1109 crore release during previous year.

Thus, funds transfer toHimachal Pradesh during 2015-16 alone is estimated to have increased by 86 percent toRs 12179 crore fromRs 6548 crore released during 2014-15.
The raise in tax devolution and grants in aid has been much higher as compared totheblock grants like NCA, SCA and SPAwhich havesince been subsumed, Nadda added.