Prof Bhandari hails hike in states' share in central taxes

Chandigarh, February 25, 2015:  Vice Chairman of the Punjab State Planning Board Prof.Rajinder Bhandari today hailed the Center’s move of accepting the 14th Finance Commission's recommendations for a substantial hike in share of states in central taxes.

In a Press Communiqué, he said that to strengthen the States for designing and implementing the schemes as per their requirements, Central Govt. under the dynamic leadership of Narender Modi, Prime Minister has recommended a record increase of 10% share of States in Central taxes. “In fact it is a very bold and visionary step by our Prime Minister which is bound to strengthen the federal structure of the country. All States, in which Punjab has been in the front, for the past few decades have been crying of insufficient and stringent resources at their disposal and have been desperately demanding greater share from the central kitty” he added.

He further said that this increase is actually about 30% of the grants that the States are presently getting. This will definitely go a long way in helping the States to complete the process of development that we have taken up in hand.  Prof. Bhandari said that the total pool based on the criteria like- Population demographic change, Area, Forest cover and Income distance.

“With the implementation of 14th Finance Commission's recommendations, the share of the state in devolution of central taxes would increase approximately from Rs.20000 crore to Rs.62000 crore in a period of five years. The Commission has also made a fundamental shift in the pattern of financing revenue expenditure to the states” he said. Prof. Bhandari hoped that Centre will continue this process of increasing fiscal support to the States for the national progress and prosperity and will look into the special needs and priorities of the various States.