Giving presentation before the 13th Finance Commission, headed by Vijay Kelkar, that began state interactions starting with Himachal Pradesh, chief minister Prem Kumar Dhumal submitted a memorandum putting forward the demand to the panel, official sources said.
Dhumal demanded the devolution as a combination of share in central taxes and special grants, as he pitched for bridging the gap between special category states and fiscally strong ones.
Pointing to the financial impact of the sixth pay commission recommendations, Dhumal told the commission the state has conservatively calculated total salaries and pension liability impact of the new pay commission would be about Rs 8,700 crore with effect from January 1, 2006 to 2015.
The arrears for the period 2006-10 amount to Rs 2,762 crore, he said, adding that these need to be included in the revenue expenditure assessment of the state.
He pleaded that a significant jump will be required in the devolutions for 2010-2011, first year of the five-year period for which the commission would submit recommendations to the government.
Dhumal asked the panel to apply an objective criteria that correctly assesses the coming pay revision impact as well as the expected bi-annual dearness allowance releases, which shall be made for an inflation rate of between 7 per cent to 8 per cent for the period 2010-15.
