CM demands state share in central taxes be increased to 50%

Raipur: Chhattisgarh Chief Minister Bhupesh Baghel has raised a demand before the 15th Finance Commission for increasing devolution of central tax revenues to states to 50% and extending GST compensation till 2019 to next five years.

The 14th Finance Commission had increased state share in central taxes to 42%, he said and added that states were unable to get the fair share of 42% because of the cess levied on central taxes and concessions offered on taxes. Speaking at a high level meeting with the 15th Finance Commission Chairman NK Singh and members during their Chhattisgarh visit the Chief Minister said that left-wing extremism hit 14 out of 27 districts in the state.

Apart from maintaining law and order situation, the state has to incur higher cost in development and infrastructure projects in these areas, he said, adding that time period of completion of such projects is also extended. Chhattisgarh has a long way to go on the path of development while living up to the potential and overcoming the challenges.

He gave detailed information about the important decisions, programmes and works being done in the state for development of the state. Baghel gave several proposals of public welfare and requested support of the Commissioner in those matters. He made special request to the Commission for support in the sectors of health, employment and malnutrition.

Mining under industrial projects leads to displacement of people in tribal areas, minimizing the chances of their participation in the development of the state. State Government advocates sanction of additional financial resources for development of tribal people as well as balanced industrial development, he said.

According to Baghel, before exploitation of minerals the state has to incur heavy expenditure in forest compensation, land diversion and infrastructural development. States get inadequate share from mining areas, he said. In the meeting, human development indicators, environment conservation, LWE, regional imbalances, forest area development, challenges and problems faced by the state were discussed in detail and a power-point presentation was also shown.

Chief Minister said that before a mining project starts, state has to bear heavy expenses of forest compensation, land diversion and infrastructure development etc. He suggested that new parameters under GSVA should be included along with 10% thrust in proportional transfer.

Chief Minister gave information about ambitious programme of C h h a t t i s g a r h ‘Chhattisgarh ke chaar chinhari- Narva, Garua, Ghuruva, Badi – Ela Bachana hai sangwari’. He told that under this programme, water augmentation and conservation in rivers and rivulets, livestock conservation through cowsheds, organic fertilizers, and backyard farming of vegetables, fruits and other agricultural produce are being promoted. Under Food Security Act, BPL as well as normal families are being provided 35kgs of rice on ration card.

Estimated expenditure on implementation of this scheme of Universal PDS is Rs 2200 crore. Electricity bills of up to 400 units have been halved. Estimated expenditure on this is nearly Rs 800 crore. By year 2022, estimated revenue deficit to be incurred by the state is Rs 17 thousand 255.

GST compensation grant sanctioned by the Centre is not sufficient, and it will be stopped in year 2022. Chief Minister suggested that after year 2022 also, compensation amount should be provided to states for next five years. Chief Minister said that Chhattisgarh Government has presented proposals worth Rs one lakh 76 thousand 215 crore for state-special grants.

From the time of state formation, Chhattisgarh has not received any special financial aid from Centre. He requested the Commission to consider the proposals and the suggestions provided for revenue distribution among states on a serious note. At the end of the meeting the 15th Finance Commission Chairman assured of sympathetic considerations of Chief Minister’s suggestions and proposals keeping in mind the circumstances in Chhattisgarh, Naxalism and other problems in

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