Punjab and Haryana want a larger share from the Centre’s kitty to undertake the development of physical and social infrastructure in the states.
This became clear during the visit of 13th finance commission to Chandigarh to get the feedback of the states in the devolution of funds and have an insight into the changing requirements of the states.
The Punjab Finance Minister Manpeet Singh Badal told that there were many unfinished tasks in the state which had suffered during the decade of extremism.
"The state lost industrial investments during the militancy in Punjab and the tax exemption given to hilly states in 2003 was the last straw in the camel’s back that diverted many proposed projects to the neighbouring state of Himachal", said Badal.
His counterpart in Haryana, Birender Singh, told Business Standard that there was a consensus among the states that the devolution of funds to the states should be to the tune of 50 per cent of the total tax collection by the government of India.
He added that based on Gadgil formula state got 30.5 per cent from the centre but this was insufficient keeping in mind the needs of the progressive states.
"We are united and this is our recommendation", said Singh.
He explained that funds would be utilised to build social infrastructure, improve connectivity and power and upgrade industrial facilities.
