Govt seeks Rs 8.24L cr from Centre’s tax kitty

  • | Thursday | 10th January, 2019

BHUBANESWAR: The state government on Wednesday sought Rs 8.24 lakh crore from the 15th Finance Commission towards the state’s share in central taxes and duties for the period of 2020-25. Naveen, during the meeting, justified the state’s demand for special package to deal with disaster management saying Odisha faces natural calamities every alternate year. But Odisha has done a commendable job in terms of disaster management and earned global recognition. “Disaster continues to be a challenge for the state. “The special package will be utilized for our initiatives to build more cyclone shelters and improve the disaster warning systems,” the chief minister said.At present, the state has 879 multi-purpose cyclone shelters while the government recently commissioned early warning dissemination systems by setting up 122 warning towers, sources said.

BHUBANESWAR: The state government on Wednesday sought Rs 8.24 lakh crore from the 15th Finance Commission towards the state’s share in central taxes and duties for the period of 2020-25. The demand also includes a special package of Rs 1500 crore (over the regular grants on disaster response) towards strengthening disaster preparedness and Rs 200 crore for development of Puri Jagannath Temple.In a memorandum submitted to the Finance Commission here, chief minister Naveen Patnaik demanded a hike in the devolution of central taxes and duties for various states from the existing 42 per cent to 50 per cent. The state also sought a funding pattern of 90:10 in centrally sponsored schemes on a par with northeastern and Himalayan states.Among others, making cess and surcharges as part of the divisible pool between Centre and states, using 1971 population data as devolution criteria of central taxes, extension of GST compensation for another 10 years (beyond the five-year period ending 2022) and spending clean energy cess in coal mining areas are some of the other suggestions put forward by Naveen before the commission.Though details of the memorandum have not been made public, sources said Odisha demanded Rs 6.71 lakh crore towards revenue deficit share, Rs 87,520 crore for state specific needs, Rs 11,875 crore under disaster response grants and Rs 53,884 crore towards panchayati raj institutions and urban local bodies.The 14th Finance Commission had recommended Rs 1.84 lakh crore towards the state’s share in central taxes and duties during the period of 2015-20 against Odisha’s demand of Rs 4.59 lakh crore. Naveen, during the meeting, justified the state’s demand for special package to deal with disaster management saying Odisha faces natural calamities every alternate year. “The special package will be utilized for our initiatives to build more cyclone shelters and improve the disaster warning systems,” the chief minister said.At present, the state has 879 multi-purpose cyclone shelters while the government recently commissioned early warning dissemination systems by setting up 122 warning towers, sources said. Talking the state’s growth story, Naveen said, “Against all odds, the state has registered reasonable growth performance in recent years with annual growth of about 10 per cent in 2016-17 and above 6.5 per cent in 2017-18.”The chief minister also spoke on central neglect on many aspects and attributed it to one of the reasons behind the demand for special status for Odisha.“It is in the premise of historic central neglect and frequent natural calamities that my government has been demanding special category status for Odisha which will supplement our efforts in transforming the state,” he added.N K Singh, chairman of the Finance Commission, lauded the government’s efforts in disaster management and stated that the commission will examine demands placed before it in a constructive spirit. “Disaster continues to be a challenge for the state. But Odisha has done a commendable job in terms of disaster management and earned global recognition. It will be the endeavour of the commission, looking at the impact of disasters on the economy, to help the state to further enhance its capabilities,” Singh said.Responding to objections by several states, including Odisha, on using 2011 population data instead of 1971 as devolution criteria while determining central taxes, Singh said the Finance Commission has nothing to do with it as the terms of reference of the commission was fixed by the President of India.Odisha apprehends that shifting from the 1971 data may result in lesser resources for the state because it successfully controlled its population, an apprehension also raised by states like Tamil Nadu , Kerala, Andhra Pradesh and the Union Territory of Puducherry

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