Special Correspondent

PANAJI: The Goa Government has called for a new formula to deal with the devolution of Central funds and aid to States which would incentivise the financially better-managed and developed States like Goa.

Finance Minister Dayanand Narvekar made the point in the State Assembly while replying to the debate on the State Budget for 2007-08 on Wednesday. Reading out a letter by the State Government to the Centre ahead of the XIII Finance Commission’s recommendations on devolution of Central funds to States, he said the current modified Gadgil-Mukherjee formula penalised better managed small States like Goa regarding sharing of taxes and principles governing grants-in-aid.

Goa had requested that the Finance Commission revisit the State and formulate a new formula.

It had urged the Commission that the royalty on minerals be returned to States so that the local stakeholders were compensated. It had demanded a separate fund for environmental protection in mining areas.