SAD demands re-structuring of Centre-state relations

Expressing serious concern over "declining fiscal health" of Punjab, Shiromani Akali Dal (SAD) today demanded thorough restructuring of Centre-state relations to correct existing imbalances in allocation of funds out of taxes collected from states.
In a joint statement here, SAD general secretary and advisor to Punjab Chief Minister, Maheshinder Singh Grewal and SAD spokesman Daljit Singh Cheema stressed on empowering the states with genuine autonomy and streamlining the contentious formula of fund sharing from tax collections.
Highlighting the "faulty formula" of devolution of funds to the state, they said the Centre took away 68 per cent of total tax collected, leaving the states with only 32 per cent share and a state like Punjab got barely 1.39 per cent which was not justifiable.

They demanded that the Centre allocate 50 per cent share from tax revenue with the states meeting the aspirations of people.