Sixth Pay Commission: CM demands larger share in Central taxes

Sixth Pay Commission: CM demands larger share in Central taxes

Statesman News Service

BHUBANESWAR, Oct. 17: "The share of the states in the total Central taxes should be enhanced to 50 per cent," said chief

minister Mr Naveen Patnaik here today.
While inaugurating the workshop on ‘State’s Memorandum to the Thirteenth Finance Commission’ Mr Patnaik also pointed out that

the states also have rights on various surcharges and cess collected by the Union government.
Mr Patnaik said that the 13th Finance Commission would take the Union government’s budget assistance for various central and

state projects, and also its liability for oil, food and fertiliser supply into consideration. "This will affect the state's

righteous share on central resources," he noted.
"While figuring out the state's share, special attention must be paid to states like Orissa in terms of her poverty, SC/ST

population," he suggested.
Acting on the recommendations of the 12th Finance Commission, many states have started cutting their expenditure, but that

ultimately affects crucial sectors like health, education and infrastructure. “Hence, the Union government should ensure

eradication of financial disparity of various states by sanctioning adequate grants to the weaker states,” Mr. Patnaik

exhorted.
"Steps should also be taken to help the states as they are burdened with the recommendations of the Sixth Pay Commission," he

said. The royalty on coal and other mineral resources should be calculated on the ‘ad valorem’ method, the chief minister

demanded.
The chief minister informed the meeting that the empowered committee of States’ Finance Ministers has formulated a National

Goods and Services Tax, which will be in force from April 2010. Disapproving attempts to curtail the states’ powers to

collect taxes, the chief minister expressed concern that that would affect the states’ financial freedom.
"There is an urgent need to simplify the procedure to get aid from the National Calamity Contingency Fund (NCCF)," he

observed. Against the backdrop of empowerment of panchayati raj institutes, the Finance Commission should recommend for

strengthening of the bodies’ capacity and resources.
Talking about the financial state of affairs of Orissa, he said that the state has become a surplus state and started many

development programmes like Biju KBK yojana from own resources.
Speaking on the occasion, state finance minister Mr Prafulla Chandra Ghadei said: "The state should demand for more grants in

public enterprises and power reform sectors."


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