Other States - Rajasthan   

Higher share for States in Central taxes demanded

JAIPUR: Rajasthan Chief Minister Ashok Gehlot has sought an increase in the share of States in Central taxes from the existing 30.5 per cent to 40 per cent.

He suggested that the quantum of the individual States’ share in the Central taxes could be decided on the basis of the geographical area and per capita income. It should be also on the basis of the 2001 Census population instead of the 1971 population, he said.

Mr. Gehlot, who spoke on behalf of all the States at a meeting with the members of the visiting 13th Finance Commission led by Dr. Vijay Kelkar at the State Secretariat here, turned State-specific when he sought special category status for the desert State keeping in mind the social-economic conditions and peculiar geographic reasons here such as the acute non-availability of water and the vastness of the terrain.

Mr. Gehlot also asked for 100 per cent compensation in the case of any financial loss to the State on the implementation of the Goods and Services Tax, scheduled to commence from April 1, 2010. As such Rajasthan was in favour of reforms but the new GST should be implemented taking the State into confidence, he said.

Mr. Gehlot conceded that the financial conditions of the States had greatly improved during 2003-2009 when the first United Progressive Alliance Government led by Prime Minister Manmohan Singh was in power at the Centre. The States started getting huge amounts under the various public welfare schemes started by Centre, he said.

The Members of the Finance Commission now on a five-day visit to Rajasthan are B.K. Chaturvedi, Indira Raja Raman, Sanjeev Mishra and Atul Sharma. They interacted with the Chief Minister, his Cabinet colleagues, and the team of senior bureaucracy in the State led by Chief Secretary Kushal Singh

Talking about the immediate concerns, Mr. Gehlot said drinking water alone was the single biggest problem as the State which occupied 10.4 per cent of the country’s land mass and had only 1.04 per cent shares of its water. Highlighting the delicate water situation in the State he said only 32 blocks out of 232 blocks were considered safe in the case of drinking water. The level of water mining in the State was at 137 per cent against only 47 per cent in Gujarat and 70 per cent in U.P., he said.

He also informed the Commission about “Harit Rajasthan", the ambitious new greening campaign undertaken in the State.

Mr. Gehlot requested for continuation of the relief provided by the 12th Finance Commission and for providing more funds for the eco-friendly projects. He said an additional budget should be allotted for internal security.

Speaking about the Centrally sponsored schemes, he expressed the opinion that while continuing the projects of national importance and other ambitious projects, funds for the remaining projects should be provided to the States in the form of untied fund so that they could initiate projects keeping in view their special requirements and priorities.

Highlighting problem of the farmers whose crops got destroyed due to cold wave and frost, he emphasised the need to start assistance to them from Natural Calamity Relief Fund. He said the present proportion of 75:25 of the Centre and the State Government for assistance provided under the Calamity Relief Fund should be increased to 90:10.

The Chief Minister said that the right to employment under the relief works apart from the 100 days’ employment under the National Rural Employment Guarantee Programme (NREGA) should be continued in districts which have to face recurring drought.

Dr. Kelkar, who commended the State Government for its impressive fiscal consolidation and improvement in the revenue performance, said further improvement could be achieved by reducing the revenue arrears and fiscal deficit.

Referring to the demands, Dr. Kelkar assured that the proposals regarding the future road map and the targets for fiscal consolidation would be carefully considered. He said the views of the State Government on the nature and content of further fiscal reform, particularly encouraging public-private partnership and the scope for user charges would be invaluable for the Commission.

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