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Government today said the total outlay for programmes of national priority like housing and poverty reduction will not be impacted as states, which will receive higher funds from the Centre, will also contribute.
"In view of enhanced devolution to states, higher contributions from states is expected for programmes with national priorities. Therefore, the total outlay for programmes will not be impacted," Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha.
Programmes for welfare of disadvantaged group have been fully supported by Union Government, he added.
The 14th Finance Commission has recommended a record 10 per cent increase in the states' share in the Union taxes to 42 per cent, which has been accepted by the Centre and will give the states an additional Rs 1.78 lakh crore in 2015-16.
