Sixth Pay Commission: States demand share of taxes

Sixth Pay Commission: States demand share of taxes

Agartala, Sept. 19: The northeastern states, including Sikkim, have demanded 10 per cent of the total devolution of funds from taxes from the Centre, while supporting the demand for 50 per cent of the devolution to all states.

The demand was raised at a meeting of the newly constituted 13th Finance Commission, headed by economist and tax specialist B.K. Kelkar in New Delhi on September 16.

Though the 13th Finance Commission gave no assurance, the members of the commission as well as the chairman indicated that the matter would be considered seriously.

“The 12th Finance Commission had recommended devolution of 30 per cent of the tax-based income to states but this has proved to be inadequate, so we demanded 50 per cent devolution from the 13th Finance Commission,” said Tripura finance minister Badal Chowdhury.

The minister said going by the recommendations of the 12th Finance Commission, except Assam, the remaining seven northeastern states, including Sikkim, received less than one per cent each.

“In case our demand is accepted, 10 per cent of the funds on the head of devolution of taxes will be earmarked for the Northeast and that will take care of the gap in non-plan funds,” Chowdhury said.

“The implementation of the Sixth Pay Commission by the Centre has brought tremendous pressure on the states, and the Centre must help by bearing at least 50 per cent of the additional liability,” the minister added.

On behalf of the eight northeastern states, which belong to the special category, the demand has been raised for the Centre to bear the full liability on the implementation of the recommendations of the Pay Commission.

“We have requested the Finance Commission to look into the matter and make later adjustments with the non-plan gap grants,” said Tripura finance minister.

The minister said the issue of the Centre not sharing the collections of surcharges and cess with the states also figured in the discussion.

At the meeting , the issue of Centre-sponsored schemes was primarily discussed.“Most of the centrally sponsored schemes are based on subjects which fall under the jurisdiction of the states. The Centre should share more funds,” Chowdhury said.

“We have been told the Finance Commission will start visiting states from November this year and is expected in the Northeast by March next year,” Badal said.


Source: http://www.telegraphindia.com