Member of Parliament (Lok Sabha) V. Vaithilingam has pleaded for an annual 10% increase in Central assistance for the Union Territory.
Participating in the discussion on Finance Bill - 2019 in the Parliament on Thursday, Mr. Vaithilingam said the Finance Ministry should maintain an annual 10% increase in Central assistance.
He sought for the current fiscal, an assistance of ₹1,623 crore, which is 10% more than ₹ 1,476 sanctioned in 2018-19.
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Mr. Vaithilingam said he came to know from the reply given by the Union Minister of State for Home that ₹1,545 crore was allocated in the budget estimate 2019-20 as Central assistance for the UT.
Increasing allocation was vital as the UT was deprived of any assistance under the recommendations of Central Finance Commission (CFC) as the region was not included in the terms and reference of CFC.
Though there is a separate Finance Commission for UTs without Legislative Assembly, there is no formula for devolution of central funds.
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The Ministry should either include UT in the terms and reference of CFC or should offer financial assistance to cover up the entire non-plan gap.
Meagre non-plan gap
The Centre for the last several years was giving only a meagre amount of ₹600 crore as non-plan gap fund despite the price rise and pay revision.
Like in the National Capital Territory of Delhi, the Centre should incur the financial liabilities of pension and other retirement benefits of employees.
The Centre should provide funds to the tune of ₹760 crore for UT this fiscal to meet the expenditure towards giving pension, Mr. Vaithilingam said.
The law maker also urged the Centre to compensate for the additional expenditure incurred by the UT while implementing the seventh pay commission recommendations.