FM Nirmala Sitharaman repudiates concerns of opposition members

Ravi S Singh

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New Delhi, March 29

Union Finance Minister Nirmala Sitharaman in reply to debate on Appropriation Bill, 2022, and Finance Bill, 2022, in Rajya Sabha on Tuesday repudiated concerns of opposition members that the Centre was erratic in sharing the funds of the Cess and Surcharge collected by it with the States.

Also, with regard to dues to States under GST compensation, the same was disbursed to the States as per the procedures.

The CAG certifies the shareable pool of the Central funds, following which the Centre devolves it to States following parameters set and recommended by the Finance Commission.

“No individual or government can tamper with the procedure,” Sitharaman said, and stressed there was unity, integrity, consistency and transparency in the approach with regard to allocation ad sharing of States’ shares.

In a broad narration of the balance of the collection and disbursal of the funds on Cess, Surcharge, and GST compensation, she said that the projected collection of Cess tax under Budget Estimate 2021-22 (current Financial Year), was Rs 6.66 lakh crore, and Rs 7.45 lakh crore under the Revised Estimate.

However, the Centre devolved Rs 8.35 lakh crore, in all, to the States as on date.

Likewise, she elaborated with figures with regard to surcharge and GST compensation funds.

She said the present Finance Bill and the Appropriation Bill were presented in the backdrop of the Budget 2022-23 which had not factored the Omicron strain of the Covid-19 pandemic, and the Ukraine war, which has created uncertainties due to rupture in world supply chain and spiralling cost of fuel.

She said India is among the top five countries in attracting Foreign Direct Investments (FDI).

Even though 32 countries, including advanced economies, levied tax during Covid-19 pandemic to mobilise resources for economic recovery, India did not do so.

Adumbrating the philosophy of the Budget 2022-23 and the earlier this year’s Budget 2021-22, she said under vision of Prime Minister Narendra Modi, care was taken not to try to mobilise resources through taxes in the wake of Covid.

Responding to opposition members’ concern over increase in fuel prices, she said the taxpayers are paying the price of the accretion of the financial burden caused by the UPA government’s policy of subsidy on Oil bonds which was to the tune of Rs 2 lakh crore.

Sitharaman took a dig at the AAP Member Sanjay Singh’s suggestion that the Centre should follow the example of the Delhi Government’s Budget (2022-23), saying the State government should have provided funds under the head of advertisement.

Instead of utilising the money on welfare of people of Delhi, the State government was liberal in spending it on advertisements, she added.