Latest news with #Centre-State
The Hindu
6 days ago
- Politics
- The Hindu
High-level committee on Centre-State relations calls on T.N. CM Stalin
The high-level committee, constituted by the Tamil Nadu government to review the Union government-State relations, called on Chief Minister M.K. Stalin in the Secretariat in Chennai on Monday (June 2, 2025). The committee's chairman, retired Supreme Court judge Justice Kurian Joseph, and members, retired IAS officer K. Ashok Vardhan Shetty and former State Planning Commission vice-chairman M. Naganathan, met the Chief Minister. Chief Secretary N. Muruganandam and senior officials of the Public Department were also present on the occasion. Mr. Stalin, in April 2025, announced in the Legislative Assembly the formation of the three-member high-level committee to review the provisions of the Constitution, laws, and policies with respect to Centre-State relations, and recommend appropriate steps to strengthen the States' autonomy and federalism.
The Hindu
22-05-2025
- Business
- The Hindu
Watch: Why some States are upset with the Centre over revenue sharing: Part 1
Why some States are upset with the Centre over revenue sharing: Part 1 Almost every State — including those ruled by the BJP — is calling for a change in the current revenue-sharing formula with the Central government. To understand this growing demand, it's crucial to first unpack how the Centre earns revenue, what constitutes the 'divisible pool,' and why many States view the existing formula as inequitable — a concern that has only deepened in the post-pandemic years. In the first part of this three-part series, The Hindu Data Team simplifies the complexities of fiscal federalism using a ₹100 note to illustrate how funds are shared. The Fifteenth Finance Commission had recommended that 41% of the divisible pool be allocated to States. Now, the Sixteenth Finance Commission is visiting all States to determine the new revenue-sharing formula for the next five years. This series delves into the roots of the Centre-State fiscal debate and explores the road ahead. Presentation and scripting: Vignesh Radhakrishnan Editing: Sambavi Parthasarathy Camera: Thamodharan B.
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'.
Hindustan Times
02-05-2025
- Business
- Hindustan Times
PM Modi to relaunch construction works at Amaravati
Prime Minister Narendra Modi will relaunch the works for the construction of Amaravati, capital city of Andhra Pradesh, besides laying foundation stone for various projects across the state, all worth ₹57,962 crore on Friday, an official statement said on Thursday. According to the official schedule released by the state government, the PM will land at Vijayawada airport at Gannavaram at 2.55 pm. He will be received by chief minister N Chandrababu Naidu, deputy chief minister Pawan Kalyan and senior officials. 'From there, Modi will fly down to Velagapudi in Amaravati by helicopter by 3.15 pm. After the ceremonial reception, he will arrive at the public meeting venue at 3.30 pm and participate in the foundation-laying and inaugural events, before returning to Gannavaram airport by 4.55 pm to department for New Delhi,' it further stated. In one of the largest single-day infrastructure announcements for the state, the Prime Minister will lay the foundation for and inaugurate a total of 94 projects worth ₹57,962 crore. These include capital city institutions, national highways, railway upgrades, and defence-related installations, the schedule said. The CMO statement said at Amaravati, the Prime Minister will lay the foundation for 74 projects worth ₹49,000 crore, including the construction of the assembly, secretariat, high court, and judicial residential quarters. Besides, Modi would virtually kick start the works for nine central projects, worth ₹5,028 crore, including Defence Research Development Organisation (DRDO)'s missile testing centre at Nagayalanka worth ₹1,459 crore; Unity Mall at Visakhapatnam worth ₹100 crore; Guntakal-Mallappa Gate rail overbridge worth ₹293 crore and six new national highway projects worth ₹3,176 crore. Besides, the Prime Minister will inaugurate eight completed national highway projects worth ₹3,680 crore, three railway projects worth ₹254 crore. The CMO statement said Modi's visit would be a turning point in the developmental narrative of Andhra Pradesh. After nearly a decade of uncertainty surrounding the capital, Modi's presence in Amaravati to relaunch capital construction will send a powerful message of political stability, Centre-State coordination, and governance renewal, it said. The state government has made elaborate arrangements for the Prime Minister's visit, with public participation expected on a large scale. The event is being projected as a decisive moment for the future of Amaravati and a clear signal of renewed momentum in Centre-State cooperation.
Hans India
02-05-2025
- Business
- Hans India
Amaravati relaunch today
Vijayawada: Prime Minister Narendra Modi will launch development works worth Rs 57,962 crore in Amaravati on Friday. The state government has made elaborate arrangements for the Prime Minister's visit, with expected participation of around five lakh people. The event is being projected as a decisive moment for the future of Amaravati and a clear signal of renewed momentum in the Centre-State cooperation. As per the schedule, the Prime Minister will arrive at Vijayawada Airport at 2:55 pm on Friday and reach Velagapudi Secretariat helipad by helicopter at 3:15 pm where the PM will be received by Chief Minister N Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan. The Prime Minister will arrive at the public meeting venue at 3.30 pm and participate in the foundation-laying and inaugural events. The programme is scheduled to last for 1 hour and 15 minutes, following which the PM will return to Vijayawada airport at 4:55 pm and depart for New Delhi. After nearly a decade of uncertainty surrounding the capital, PM Modi's visit to Amaravati to re-launch capital construction works seems to be a turning point for the development of AP and sends a powerful message of political stability, Centre-State coordination, and governance renewal. The decade-old dreams of 30,000 farmers of capital region who donated 33,000 acres for capital development are going to be fulfilled as their aspirations put on hold for several years due to uncertainty on location of the capital. The restart of the construction of Amaravati comes as a major victory. The Prime Minister will lay the foundation for and launch a total of 94 projects worth Rs 57,962 crore. These include capital city institutions, national highways, railway upgrades, and defence-related installations. As part of Amaravati Greenfield capital reconstruction, the Prime Minister will lay the foundation for 74 projects worth Rs 49,000 crore, including the construction of the Assembly, Secretariat, High Court, and judicial officers' residential quarters. He will also lay foundation for projects worth Rs 5,028 crore, including Rs 1,459 crore DRDO Missile Testing Centre at Nagayalanka, Rs 100 crore Unity Mall at Visakhapatnam, Rs 293 crore Guntakal–Mallappa Gate Rail Overbridge. In addition, the Prime Minister will inaugurate eight completed National Highway projects worth Rs 3,680 crore and dedicate three railway projects valued at Rs 254 crore to the nation. The biggest developmental efforts launched on a single day by both the Centre and state reaffirms the government's focus on boosting infrastructure, connectivity, and urban governance in Andhra Pradesh.
