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Hindustan Times
a day ago
- Business
- Hindustan Times
Finance Commission delegation to discuss key issues with U.P. CM Yogi Adityanath
A 13-member delegation of the 16th Finance Commission will have a meeting with Uttar Pradesh chief minister Yogi Adityanath and officials of various departments in Lucknow on June 4 to discuss state-specific financial issues, projects and development priorities. The delegation will reach Ayodhya on June 3 and visit the Ram temple. The team will also take stock of development projects in the district. In the evening, the delegation will reach the state capital to attend a dinner hosted at the chief minister's official residence. On June 4, the delegation, headed by Prof Arvind Panagariya, will hold a meeting with CM Yogi, followed by a press briefing at around 12:30 pm. The recommendations of the 16th Finance Commission will be for a period of five years commencing on April 1, 2026. The delegation will also meet officials from urban development, panchayati raj, and industry departments besides representatives of political parties. The delegation will then proceed to Varanasi to visit project sites. The finance panel delegation is likely to review developmental efforts under the state's flagship One District, One Product (ODOP) scheme. They will also visit the silk cluster in Varanasi. The itinerary also includes a visit to the Kashi Vishwanath Temple. The visit holds significance as it will contribute to the commission's broader recommendations on the distribution of financial resources between the centre and the states, including grants for local development and infrastructure.
Time of India
2 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.
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Business Standard
3 days ago
- Business
- Business Standard
Jharkhand govt urges finance commission to raise tax share to 50%
The Jharkhand government on Friday appealed to the Sixteenth Finance Commission to raise the vertical devolution of central taxes from the existing 41 per cent to 50 per cent. A finance commission team, headed by its chairman Dr Arvind Panagariya, held discussions with the state government. Jharkhand Finance Minister Radhakrishna Kishore and Chief Secretary Alka Tiwari were present during the meeting. "Increase the vertical devolution share from 41 per cent to 50 per cent," the state government appealed to the panel. The commission also held a series of meetings with representatives from local bodies, trade organisations, industry associations, chambers of commerce, and political parties. The finance commission team on Thursday visited Jharkhand's temple town of Deoghar and offered obeisance at the Baba Baidyanath temple. The finance panel also held discussions with representatives of panchayati raj institutions and administrators of urban local bodies from all six districts of Santhal Pargana. The delegation had arrived in Ranchi on Wednesday on a four-day visit to Jharkhand and met Chief Minister Hemant Soren. The CM sought support from the finance commission for the all-around development of various sectors and communities in the state. "Jharkhand contributes significantly to the country's development as a state with extensive mining activities. But, it also faces consequences, such as environmental degradation, displacement of people, and loss of land. The land reclamation work by central mining companies is not being carried out in a planned manner," Soren told the commission members. He also sought autonomy to utilise financial resources according to the needs of the local population, as each state has different requirements. The Centre's vision of 'Viksit Bharat' could be realised through the development of states and villages, Soren said. "A large population of the state depends on agriculture. So, agriculture and allied activities are a focus area for the government. Jharkhand has significant potential in the farming sector," he added. There is a need for special efforts in priority areas such as health, education, and livelihoods, Soren said. The team is scheduled to return to Delhi on May 31. Jharkhand has prepared a Rs 1.45 lakh-crore budget for the ongoing fiscal, with a whopping Rs 62,844 crore earmarked for social welfare programmes to help the poor, women and other vulnerable groups. For its popular Jharkhand Mukhyamantri Maiya Samman Yojana, which aims to enhance the financial security and well-being of women in the age bracket of 18-50 years, it allocated Rs 13,363 crore. Besides, Rs 5,000 crore has been allocated towards providing free electricity. Last month, the chief minister called for a provision in the Coal Bearing Areas (Acquisition and Development) (CBA) Act, requiring companies to return land to the state government after mining activities. The CM also demanded the release of Rs 1.40 lakh crore, owed by mining companies, at the recent NITI Aayog Governing Council meeting chaired by Prime Minister Narendra Modi. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
19-05-2025
- Business
- Business Standard
16th Finance Commission will submit report to Centre by Oct 31: Chairman
Chairman of the Sixteenth Finance Commission Dr. Arvind Panagariya on Monday said the commission will submit its report to the central government by October 31. Panagariya said this in a meeting of the commission held here with Chief Minister Pushkar Singh Dhami. The chairman praised Uttarakhand for moving ahead rapidly on the development front and said that in view of the difficult geographical conditions, extensive discussions will be held to find solutions to the challenges being faced by other hill states, including Uttarakhand. Earlier in the meeting, CM Dhami presented his views on the financial situation, challenges and development needs of the state. He requested the Finance Commission to provide suitable compensation in keeping with the spirit of 'environmental federalism' in view of Uttarakhand's 'eco service cost', increase the weightage of forest cover in 'tax-devolution' to 20 per cent and consider special grants for proper management and conservation of forests in the state. The Chief Minister said that in the last 25 years, Uttarakhand has made remarkable progress in the field of financial management like other areas. The size of the state budget has crossed Rs 1 lakh crore, while in the SDG Index Report of the year 2023-24 released by NITI Aayog, Uttarakhand has emerged as the leading state in the country among the states achieving the goals of sustainable development, he said. Referring to the two main challenges being faced by the state due to more than 70 per cent of the total geographical area of Uttarakhand being covered by forests, Dhami said that on one hand this leads to more expenditure for the conservation of forests, while 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. In this regard, he requested for appropriate compensation to the State in accordance with the spirit of 'Environmental Federalism', increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20 percent and special grant for proper management and conservation of forests in the State. He said that since the state's industrial package ended in 2010, the locational disadvantage is not being met, while special budget provisions have to be made in the hilly regions of the state due to difficult geographical conditions and other practical difficulties as the private sector participation in important sectors like education and health is very limited. Describing Uttarakhand as very sensitive to natural disasters, the CM said that the state needs continuous financial support to effectively deal with disasters and for relief and rehabilitation work. Dhami, referring to the limited possibilities of hydropower generation in Uttarakhand due to the rules implemented after the Ganges was declared a national river, said that due to this the hydropower sector is not able to make the expected contribution and there is a huge loss in the field of employment along with revenue. He also requested the Finance Commission to provide special assistance in view of the higher cost involved in developing additional infrastructure for transport, drinking water, health, waste management and other services in view of the 'floating population' visiting pilgrimage sites. A delegation of the party led by State Congress Vice-President Suryakant Dhasmana also met Dr. Panagariya and requested for a green bonus for the state and economic package to stop migration and consider the special geographical conditions of the state. Dhasmana demanded that the state should be given a green bonus as compensation for its environmental services, protection of water, forest and biodiversity for the country. He said that there should also be a provision of a special package for the state for long-term disaster management preparedness.
India Gazette
19-05-2025
- Business
- India Gazette
Uttarakhand CM highlights state's financial needs to 16th finance commission
Dehradun (Uttarakhand) [India], March 19 (ANI): Uttarakhand Chief Minister Pushkar Singh Dhami on Monday presented the state's stand in detail on the financial conditions, challenges and development needs of the state in a meeting with the Chairman of the 16th Finance Commission Dr Arvind Panagariya and other members at the Secretariat, said an official statement. The Chief Minister has requested appropriate compensation in accordance with the spirit of 'Environmental Federalism' in view of the 'Eco Service Cost' of Uttarakhand. Also, suggested increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20 per cent. Special grants should also be considered for proper management and conservation of forests in the state. In the meeting held at the Secretariat, the Chief Minister met the Chairman of the Finance Commission Dr Arvind Panagariya, Commission members Anne George Mathew, Dr Manoj Panda, Dr Soumya Kanti Ghosh, Secretary Ritwik Pandey, Joint Secretary KK present in the special meeting organized with the aim of establishing better financial coordination between the Central Government and the States. Mishra was welcomed on his arrival in Devbhoomi Uttarakhand in this silver jubilee year of the establishment of the state of Uttarakhand. CM 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 of the country 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 percent has been registered, which is more than the national average. The Chief Minister said that due to more than 70 per cent 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. CM Dhami requested for giving appropriate compensation in accordance with the spirit of 'Environmental Federalism', increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20 percent and giving special grant for proper management and conservation of forests in the state. After the end of the 'Industrial Concessionary Package' in the year 2010, we are facing difficulty in fulfilling 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. Efforts are being made to provide quality education at low cost through smart classes, cluster schools and distance education. Along with this, efforts are also being made to strengthen health services in the state by ensuring the availability of tele medicine, special ambulance service and specialist doctors. The Chief Minister said that Uttarakhand is a state extremely sensitive to natural disasters. The state needs continuous financial support to effectively deal with these disasters and for relief and rehabilitation work. Giving information about the 'Bhagirath App' established to revive water sources in the state and to ensure the participation of common citizens, the Chief Minister requested to consider special grants for these special efforts of water conservation. The Chief Minister said that due to the rules implemented as a result of declaring Ganga as a national river, the possibilities of hydropower generation in Uttarakhand have become limited. The hydropower 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. The Chief Minister requested to determine the amount of compensation for the affected projects and the related mechanism and said that due to the 'floating population' coming to the pilgrimage sites, additional infrastructure has to be developed for transport, drinking water, health, garbage management and other services. Special assistance should be provided keeping in mind the high cost of building infrastructure in the state due to complex geographical conditions. The Chief Minister said that along with tax effort, 'fiscal discipline' should also be included as a component in the 'devolution' formula in the norms of sharing between the states under 'tax-devolution'. It would be logical to implement 'Revenue Need Grant' in place of 'Revenue Deficit Grant'. The Chief Minister said that due to the three dimensionality of the geographical structure of the state, both capital expenditure and maintenance cost are high. The credit-deposit ratio in the state is also low. (ANI)
