Special status for revenue deficit states done away with:Sinha

With Punjab demanding revenue deficit grant, Minister of State for Finance Jayant Sinha has said that the special status to any state has been done away with by the 14th Finance Commission.
He, however, assured that the Centre is considering the best possible way to support the state.
Sinha was asked whether the government was considering revenue deficit grant for Punjab.
"You have to understand that 14th Finance Commission has done away with the definition of special status and revenue deficit state. Depending upon each state's fiscal situation, different allocations are being done and every state is dealt with very objective and transparent manner," Sinha said here today while talking to media today.

However, the minister said in special circumstances like in Andhra Pradesh, some special benefits were provided because of AP Reorganisation Act.
"The manner in which revenues are shared between states and Centre is set up within a framework that is put together by the 14th Finance Commission. The Centre cannot single out any state and say this is what we are gonna do for this state. There is formula created for all the states," he said.

Punjab Chief Minister Parkash Singh Badal had earlier taken up the issue of revenue deficit grant issue with Finance Minister Arun Jaitley.
The SAD-BJP governed state was of the view that the 14th Finance Commission had failed to take due cognizance of facts and had ignored the state's requirement of revenue deficit grant, even as commission had recommended revenue deficit grant for other states treated as fiscally stressed by 13th Finance Commission.

The state had demanded that it be included in the list of debt stressed states, enabling it to get revenue deficit grant. After it was excluded from the list of debt stressed states, the state lost revenue deficit grant of about Rs 3,500 crore.
There are 11 states including Himachal Pradesh, Jammu and Kashmir, Kerala, Andhra Pradesh, which would get revenue deficit grant as per 14th Finance Commission recommendations, Punjab government had pointed out.
Sinha, however, said that Centre was always ready to provide any support which the state required.
"Shiromani Akali Dal (SAD) is a very valued and long standing partner of BJP. Finance Minister (Arun Jaitley) enjoys best of relations and is very close to the government of Punjab. I am sure whatever support or assistance is required for the government of Punjab, it will indeed be forthcoming," Sinha said.

"I am very familiar with fiscal position of Punjab...You can be sure that we are considering the best way to support Punjab government," he further said.