Raipur, Jun 12 UNI | 1 month ago

The Chhattisgarh government today sought a special financial assistance of Rs 34,000-crore from the 14th Financial Commission for implementation of various welfare schemes and speedy development of this Naxalism-affected state.

Chief Minister Raman Singh presented a memorandum of demands, including the special grant proposal, at a meeting here with a delegation of the Commission headed by former RBI Governor YV Reddy.

Hailing the Dr Singh as one of the most successful chief ministers, the Commission Chairman said, "Chhattisgarh has done commendably well in the fields of social development and financial management despite various difficulties and limited resources."

According to official sources, the Chief Minister suggested that the share of states in central tax revenue should be increased from 32 per cent to 50 per cent in order to remove the imbalance between centre and states.

He also wanted the Commission to divide central tax revenue between centre and states on the basis of Census 2011 instead of Census 1971, which is presently the basis of division. Dr Singh insisted that the devolution formula should be per capita expenditure instead of per capita income as major part of the income earned in state was spent outside the state.

The Chief Minister pointed out that because of the vast forest cover and insurgency problem, the input cost of development works increased. Hence, both the issues should be considered as the basis for devolution of revenue, he said.

Stating that Naxal problem was itself a calamity, the Chief Minister said that the Centre should provide assistance from national and state calamity funds to redress the problem of Naxal violence.

Considering the less debt burden and the financial requirements, Dr Singh said that the state should be given the liberty of taking more loans.

"At least one per cent revenue should be secured for the gram panchayats concerned in view of the backwardness of the scheduled areas of state," he said.

(Posted on 13-06-2014)