Latest news with #15thFinanceCommission
Hindustan Times
19 hours ago
- Business
- Hindustan Times
16th Finance Commission arrives in state today, Uttar Pradesh to pitch for larger share of tax pie
As the 16th Finance Commission begins its visit to the state from Ayodhya on Tuesday, the Uttar Pradesh government's team is working almost round the clock to make a case for a greater share in the 'divisible pool of states' that came down marginally following the 15th Finance Commission's recommendations. The divisible pool refers to the portion of the central government's gross tax revenue that is allocated to states. Though Uttar Pradesh got the largest share among the states, its share in the divisible pool came down marginally from 17.959% to 17.931% (for 2021-2026) as the 15th Finance Commission recommended the share of states to be 41% (against 42% by the 14th Finance Commission) with an adjustment of 1% made to provide for the then newly formed Union Territories of Jammu and Kashmir and Ladakh from resources of the Centre. The 16th Finance Commission led by its chairman Arvind Panagariya will arrive in the state capital on Tuesday evening after visiting Ayodhya earlier in the day. Senior officers are busy giving final touches to the state government's demands to be made to the finance panel for a greater share in central funds. Chief minister Yogi Adityanath on Monday reviewed the presentation to be made by the state government before the finance panel. 'Yes, the state government will demand a greater share in the divisive pool of states with special consideration for Uttar Pradesh for additional funds. Uttar Pradesh is leading on the path of development as our focus has been on bringing about improvement in the law-and-order situation and boosting development. We are working to achieve objectives of zero poverty and make UP a trillion-dollar economy,' minister for finance Suresh Khanna said. Those aware of the development said the state government would demand that the Finance Commission should give greater weight to the population. The state government would make a detailed presentation about the efforts being made by it to mobilise additional resources and improve forest cover. 'We hope the 16th Finance Commission will recommend a greater share to the states and give special consideration to Uttar Pradesh in giving additional funds,' a senior officer of the state government said on condition of anonymity. The 15th Finance Commission introduced demographic performance of states in the need-based six-point criteria recommended for horizontal devolution. The commission gave 15% weight to population, 15% to area, 10% to forest and ecology, 45% to income distance, 12.5% to demographic performance and 2.5% for tax effort. The 14th Finance Commission had given 17.5% weight to the population of 1971 and 10% weight to the population of 2011. It gave 15% weight to area, 7.5% to forest cover and 50% to income distance. Besides going for 'darshan' at the Ram temple in Ayodhya, the finance commission will also pay a visit to some developmental sites, as per the programme. Chief minister Yogi Adityanath will host dinner for the commission on Tuesday evening. On Wednesday, the state government will make a presentation about its development journey and efforts to achieve the trillion-dollar economy objective along with arrangements made for Prayagraj Maha Kumbh 2025 that attracted 66 crore pilgrims. The commission will also meet representatives of Panchayat Raj Institutions, urban local bodies and trade and industry. The commission will meet representatives of political parties and also speak to media persons here on Wednesday. On Thursday, the commission will leave for Varanasi from where the panel will proceed to New Delhi.
The Hindu
2 days ago
- Health
- The Hindu
11 health and wellness centres that were closed for want of doctors set to be revived in Tiruchi
Eleven urban health and wellness centres in Tiruchi, which had remained non-functional for over two years, are all set to open their doors to the public. Considering the surge in urban population and the growing patronage of the 18 Urban Primary Health Centres (UPHCs), the Corporation, under the National Urban Health Mission (NUHM), constructed 36 health and wellness centres (HWC), each at an estimated cost of ₹25 lakh utilising the funds sanctioned by the 15th Finance Commission. These centres will function from 8 a.m. to noon and from 4 p.m. to 8 p.m. Each UPHC will be attached to two wellness centres and the Chief Medical Officer of the UPHC will supervise the HWCs. The initiative is aimed at enabling patients to get first-level emergency and trauma care in addition to alternative medicinal therapies and yoga. Of the 36 centres, 25 are functioning, but the remaining 11 centres have remained closed for over two years because of the unavailability of doctors, and medical staff. However, the Health department has now appointed a doctor, a staff nurse, a health inspector, and an attendant for each of these centres. 'They are undergoing training at the UPHCs about existing schemes, filing reports, availability of medicines, infant immunisation, anti-rabies vaccinations, antenatal care, and other services at the HWCs. The facilities will become functional within two weeks,' said a senior official. The centres are located at Sangiliandapuram, Amman Nagar, Mela Pandamangalam, Solarajapuram, Kamaraj Nagar, Vasanth Nagar, Sanjivi Nagar, Karumandapam, Thennur Babu Cetti Road, Ambedkar Nagar, and Ammaiyapa Nagar. Meanwhile, the 25 health and wellness centres have become popular among residents and continue to register significant footfall since its launch. At present, free cancer screening camps to screen people for breast cancer, cervical cancer, and oral cancer are being held at these centres.
Time of India
4 days ago
- Business
- Time of India
State seeks over 3 lakh crore from fin panel; ‘special status' unlikely
1 2 Ranchi: Jharkhand on Friday placed a cumulative demand of Rs 3,03,527.44 crore for various projects spanning 23 departments for the next five years before the 16th Finance Commission. The demand was placed before the 11 members of the commission, who are here on their final day of the four-day tour of the state on Friday The members, however, indicated that the state's demand for a "special status" would be unlikely. In his presentation before the commission team headed by its chairman Arvind Panagariya, state finance minister Radha Krishana Kishore listed out falling revenues due to the implementation of the GST, delayed and non-payment of central grants and other dues for years, which is making it difficult for the administration to fast-track development of the state. The Jharkhand govt has also proposed an increase in the devolution of funds from the existing 41% in "vertical devolution" to 50% for the states and has gone on to suggest that the devolution of grants must also be considered based on revenue losses of a state because of the GST. Citing how GST is impacting the state revenues, Kishore said after July 2022, states have stopped receiving GST compensation from the Centre. "Jharkhand is less of a consumer and more of a producer state but GST being a use-based tax system, we have to bear its loss. Based on the current trends, a loss of about Rs 61,677 crore is estimated in the next five financial years from 2025-26 to 2029-30. Therefore, we expect the finance commission to keep this in mind and provide additional grants so that we can deal with the losses," he stressed. The minister also highlighted how out of the proposed Rs 1.5 lakh crore to Jharkhand by the 15th Finance Commission for the development of various sectors, the state has only received Rs 12,398.02 crore for sectors like rural roads, culverts, disaster management, urban development and health. Meanwhile, Panagariya told the media that the commission had heard all views and would make final recommendations to the Union govt for the devolution of funds over the next five years after meeting all state govts. "Jharkhand is our 27th visit and Uttar Pradesh will be the last one," he said, after the deliberations with different stakeholders in the state, including the govt representatives. On state's demands and suggestions for devolution of funds between the Centre and the state, Panagariya said, "Under 15th Finance Commission, 15% weightage was given to the population of a state to grant funds, which Jharkhand demanded to increase it to 17.5%. Similarly, it demanded 50% weightage on per capita as Jharkhand is among the lowest in this segment in the country. It, however, came up with an interesting and creative demand of 2.5% weightage based on GST losses. " Asked about state govt's regular demand for a "special status", the commission member said it is unlikely to happen. "It is because special status was in practice when the planning commission existed. After it got dissolved and Niti Aayog came into being, no such criteria exist," he added. On the other hand, state water resources and excise department minister Yogendra Prasad said, "We (govt) have apprised the commission members in detail about our needs, challenges and requirements across different sectors. We are optimistic of a suitable response in the coming days," Prasad told reporters.
New Indian Express
25-05-2025
- Business
- New Indian Express
AIADMK nod to panel conditions led to property tax hike, says TN minister Nehru
CHENNAI: Municipal Administration Minister KN Nehru has alleged the annual revision of property tax in the state stems from the AIADMK government's acceptance of a stringent condition imposed by the 15th Finance Commission. Nehru was responding to a statement from former Chief Minister Edappadi K Palaniswami condemning the DMK government for its decision to increase property taxes in village panchayats across the state from the financial year 2025-26. Taking a dig at CM Stalin, Palaniswami said unlike former Chief Minister MG Ramachandran, who offered free electricity to huts, the Stalin-led government has been burdening the rural poor further with steep tax hikes. Nehru, in his response, said Palaniswami had agreed to link property tax revisions with the Gross State Domestic Product (GSDP) during his tenure, which has now resulted in the present system of annual hikes. 'Out of selfish motives, Palaniswami signed the condition laid down by the finance commission and that decision has led to the current situation,' Nehru said. He also warned failure to adhere to this condition could result in the Union Government withholding grants worth `4,36,361 crore meant for urban local bodies for the period 2021-26, along with funds under the Swachh Bharat and AMRUT 2.0 schemes. Palaniswami, in his statement, had said the Stalin-led DMK government has already increased property taxes more than twice in municipalities and municipal corporations since coming to power in 2021. Now, he alleged, the government has extended this burden to rural areas.
Hindustan Times
19-05-2025
- Business
- Hindustan Times
Uttarakhand seeks hike in tax share for forest and ecology from 10 to 20%
Dehradun: The Uttarakhand government on Monday sought appropriate compensation in accordance with the spirit of 'Environmental Federalism' in view of the 'Eco-Service Cost' of Uttarakhand from the 16th Finance Commission (FC), urging it to increase the weight prescribed for 'forest and ecology' in Centre-state tax-sharing from 10 to 20% and in area category from 15 to 20%. The state government also requested that special grants should be considered for the proper management and conservation of forests in the state. These requests were made by chief minister Pushkar Singh Dhami on Monday, in a meeting with the chairman of the 16th Finance Commission, Arvind Panagariya and other members of the FC at the Secretariat here. Panagariya, during a press briefing after the meeting, said the share of Uttarakhand in the Centre-State fund sharing under the Finance Commission is determined by the recommendations of the Finance Commission, which allocates a portion of the central taxes to each state based on specific criteria. 'According to the 15th Finance Commission (2020-2026), the share of states in the central taxes was set at 41% of the divisible pool, and each state's individual share is calculated using criteria such as income distance (45% weight), population (15%), area (15%), forest and ecology (10%), total fertility rate (12.5%), and tax effort (2.5%).' He said, 'The Uttarakhand government has urged FC to consider income distance (at 40%), population (15%), area (20%), forest and ecology (20%), Total Fertility Rate (state government has urged that it should not be used as criteria for tax devolution) and tax effort (2.5%). Uttarakhand has also urged that it be rewarded for fiscal discipline.' Dhami earlier in the meeting presented the state's stand in detail on the financial conditions, challenges and development needs of the state. He said that due to over 70% of the total geographical area of the state being covered with forests, two major challenges are also being faced. 'While on one hand, more expenditure has to be made for the conservation of forests, on the other hand, due to the prohibition of any other development activity in the forest area, 'eco service cost' also has to be borne. So, I request for giving appropriate compensation in accordance with the spirit of 'Environmental Federalism', increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20% and giving special grant for proper management and conservation of forests in the state Dhami said that in the last 25 years, Uttarakhand has made remarkable progress in the field of financial management like other areas. 'After the establishment of the state, the state had to depend on external loans to develop its basic infrastructure. While on the one hand the state has achieved remarkable achievements on the basis of various parameters of development, the size of the budget has crossed one lakh crore rupees. In the SDG Index Report of the year 2023-24 released by NITI Aayog, Uttarakhand has emerged as the leading state among the states achieving the goals of sustainable development. The unemployment rate of the state has come down by a record 4.4 percent. In terms of per capita income, an increase of 11.33% has been registered, which is more than the national average'. Dhami said that after the end of the 'Industrial Concessionary Package' in 2010, the state government is facing difficulty in the light of the 'locational disadvantage'. 'Due to difficult geographical conditions and other practical difficulties, the participation of private sector in important sectors like education and health is very limited in the hilly areas of the state. Due to this, special budget provisions have to be made for these sectors,' he said. He said that Uttarakhand is a state highly sensitive to natural disasters. 'The state needs continuous financial support to effectively deal with these disasters and for relief and rehabilitation work,' he said, also requesting FC to consider providing special grants for these special efforts of water conservation. Dhami said that due to the rules implemented as a result of declaring Ganga as a national river, the possibilities of hydroelectric power generation in Uttarakhand have become limited. 'The hydroelectric sector is not able to make the expected contribution to the economy due to various reasons, due to which there is a huge loss in the field of revenue as well as employment. I also urged GC to determine the amount of compensation for the affected projects and the related mechanism', he said. Dhami said that due to the 'floating population' coming to the pilgrimage sites, additional infrastructure has to be developed for transportation, drinking water, health, waste management and other services. 'Keeping in mind the high cost of building infrastructure in the state due to complex geographical conditions, special assistance should also be provided to the state. The chief minister said that along with tax effort, 'fiscal discipline' should also be included as a component in the 'devolution' formula for tax sharing in the norms under tax-sharing. 'It would be reasonable to implement 'Revenue Need Grant' in place of 'Revenue Deficit Grant'. 'Due to the geographical structure of the state, both capital expenditure and maintenance costs are high. The credit-deposit ratio in the state is also low,' he said. Panagariya said the per capita income of the state has increased. 'Good work is also being done in the state towards reducing unemployment. In view of the difficult geographical conditions, the challenges faced by Uttarakhand and other hill states will be discussed at a wider level to find solutions to them. The 16th Finance Commission has set a target to make its report available to the Central Government by 31 October 2025'.
