Moneycontrol
Feb 25, 2016 10:53 AM IST | Source: PTI

Rs 44,090 crore released to 8 north-eastern states: FinMin

"So far an amount of Rs 32,657 crore as devolution of taxes, and Rs 11,433 crore as 14th Finance Commission grants have been released to eight north-eastern states," Finance Ministry said in a statement.


Finance Ministry said Rs 44,090 crore has been released to eight north-eastern states on account of devolution of taxes and grants pursuant to recommendations of the 14th Finance Commission.


"So far an amount of Rs 32,657 crore as devolution of taxes, and Rs 11,433 crore as 14th Finance Commission grants have been released to eight north-eastern states," Finance Ministry said in a statement.


It said the states will get three more installments of 'tax devolution' during March 2016 and balance of grant-in-aid recommended by 14th Finance Commission.


The eight north-eastern states are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.


"Apart from estimated share in central taxes of over Rs 3.13 lakh crore during the 14th Finance Commission award period, it has recommended grant-in-aid of Rs 63,206 crore for north-eastern states," the statement added.


As against a share of 6.16 percent of total tax devolution during 13th Finance Commission, north-eastern states now get 7.94 percent of total tax devolution under the 14th Finance Commission.


"The transfer of statutory resources or untied fund flow to north-eastern states in aggregative have gone up to Rs 54,385 crore in 2015-16, from Rs 30,072 crore in 2014-15, including an increase of 81 percent," it said.


For speedy development of north-eastern states, a Rs 740 crore is budgeted this year for schemes approved by North Eastern Council (NEC), the statement added.


For revenue deficit grants, Rs 51,137 crore has been recommended to six north-eastern states assessed to be in deficit post devolution of central taxes, for local bodies Rs 8,866 crore and central share to SDRF Rs 3,202 crore.


"North eastern and hill states have several unique features that have a bearing on their fiscal resources and expenditure needs and on federal fiscal relations," it said.

Taking into account the disabilities arising from constraints unique to each state, like low level of economic activity and the consequential low revenue capacity, the 14th Finance Commission had arrived at expenditure requirements, the statement added.

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