Finance panel for devolution of Rs 19,309 crore to state govt

Finance panel for devolution of Rs 19,309 crore to state govt

Tribune News Service

Shimla, February 15

The 15th Finance Commission has recommended devolution of Rs 19,309 crore for 2020-21 to Himachal Pradesh. The Finance Commission has submitted the report to the Central Government.

Industries Minister Bikram Singh said that of Rs 19,309, an amount of Rs 11,431 crore had been recommended as the revenue deficit grant, Rs 6,833 crore as tax devolution, Rs 636 crore for local bodies and Rs 409 crore to the State Disaster Relief Fund. Himachal Pradesh had been given the second highest revenue deficit grant in the country, he added.

As compared to the 14th Finance Commission, there is an increase of 40.69 per cent in the revenue deficit grant, 21.05 per cent in the share of central taxes, 18.51 per cent in the grant for rural local bodies, 417.50 per cent in the grant for urban local bodies and 74.04 per cent in the funds for the State Disaster Relief Fund. The average annual award during the 14th Finance Commission was Rs 14,407 crore while this year, the state had been awarded Rs 19,309 crore — an overall increase of 34.03 per cent.

He said that the local body funds would be given to zila parishads, panchayat samitis and Cantonment Boards of the state, besides other local bodies such as municipal corporations, municipal committees, nagar panchayats and gram panchayats.

The minister said that the recommendations of the 15th Finance Commissions would help the state government in giving a push to developmental and infrastructure activities. All sections of society, especially those vulnerable, would benefit from the increased grants.

He added that the previous Congress government did not make efforts for financial assistance for the state and therefore failed in getting higher grants. He said that an annual average grant of Rs 4,338.4 crore was given to the state under the 13th Finance Commission when the UPA-II government led by the Congress was in power at the Centre.

It is a big achievement for the state government and Opposition leaders were giving baseless and misleading statements on various matters just to divert the attention of the people from it.

Annual award up by 34%

  • As compared to the 14th panel, there is an increase of 40.69% in the revenue deficit grant, 21.05% in the share of central taxes, 18.51% in the grant for rural local bodies, 417.50% in the grant for urban local bodies and 74.04% in the funds for State Disaster Relief Fund.
  • The average award during the 14th Finance Commission was Rs14,407 cr while this year, the state has been awarded Rs19,309 cr — an increase of 34.03%.

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