Home ODISHA LATEST State to seek over Rs 2 lakh crore from 14th Finance Commission

State to seek over Rs 2 lakh crore from 14th Finance Commission

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Reported by Chinmaya Dehury

Bhubaneswar, Dec 7:

A team from the Finance Commission will arrive on a three-day visit to the state on December 8 to discuss with officials of the state government Odisha’s demand for a larger share from central taxes.

The team is scheduled to hold talks with the Chief Minister, other Ministers, senior officials and representatives of various political parties, ULBs and trade & commerce etc on December 9, official sources told OST.

The state government is all set to submit a memorandum seeking over Rs 2 lakh crore as its share from central taxes during the period from April 1, 2015 to March 31, 2020 to the Commission during the visit. The memorandum would argue that the state had got a much smaller allocation than it deserved during the last two Finance Commission.

Y V Reddy, Chairman, 14th Finance Commission
Y V Reddy, Chairman, 14th Finance Commission

The Commission, headed by YV Reddy who was Governor of Reserve Bank of India for five years till 2008, is expected to submit its report by October 2014. The Commission will recommend the share of states in the Central taxes from April 2015 to March 31, 2020.

It is to be noted that the state Government had submitted a memorandum seeking Rs 2, 20,782.86 from the Thirteenth Finance Commission (TFC) for the period 2010-15, but was granted no more than Rs 78,974.9 crore. The grant for the Twelfth Finance Commission period from 2005 to 2010 was much lower at Rs 36,942.8 crore.

While the state had got 4.89 per cent of the total devolution in 12th Finance Commission, its share further reduced to 4.6 per cent by the 13th Finance Commission.

The percentage share of Odisha in Central taxes has decreased by 0.38 per cent, from 5.16 pc to 4.78 pc, in comparison to the 12th Finance Commission. The share of all low income states such as Odisha, Bihar, Jharkhand and Chhattisgarh has reduced.