)
Punjab Chief Minister Parkash Singh Badal on Wednesday welcomed the Centre's decision to enhance the states’ share in the devolution of central taxes from 32 per cent to 42 per cent in wake of the recommendations of 14th Finance Commission but added this would have substance, only if the funds meant for stated under the present centrally-sponsored schemes were also transferred directly to states as untied funds.
Describing the decision to raise states share in central taxes as a positive development, the chief minister said the amount of funds to be devolved to the states would go up from Rs 3.48 lakh crore in 2014-15 to Rs 5.26 lakh crore during the current fiscal. This would help in putting the states on strong fiscal pedestal to enable them to carry out their development programmes according to the needs of the people.
However, Badal said this was just the beginning and the momentum would need to be carried forward in the years to come with more steps to make the states truly autonomous in matters of policy planning and implementation for regional development as per specific needs of the people. "Along with this increase, the states must know how the centrally-sponsored schemes (CSS) would now be transferred to states after the Planning Commission had been scrapped and replaced with NITI Aayog,” he said.
Also Read
The chief minister also urged the Centre to re-examine Punjab’s case for inclusion in the list of debt-ridden states as declared by the centre. He said that everybody knew that Punjab fought the nation’s war for national unity and integrity from the early 1980s to mid 1990s. This had a disaster effect on the economy and development of the state, he said. On its part, the state had exercised commendable fiscal discipline. Badal said the 14th Finance Commission, headed by Y V Reddy, also appreciated state’s financial prudence.
Badal impressed upon the Ministry of Finance to review the state’s financial position in this context and take a considerate view to include Punjab in the list of debt-stressed states. This step would not only help to consolidate its financial position but also boost the tempo of overall development, which was to overcome these financial infirmities, Badal added.
