The Centre has included Puducherry under the terms and reference of the 15th Finance Commission on the devolution of tax revenue between the Union and the States.
Chief Minister V. Narayanasamy told presspersons here on Sunday that so far the Union Territories were kept out of the ambit of the Finance Commission.
The Centre had decided to treat Puducherry on par with other States for devolution of funds. This would help the Union Territory get 42% of the budgetary allocation, he said.
The internal tax mobilisation prior to the implementation of the Goods and Services Tax was about ₹165 crore a month.
In the months after the GST came into force, tax collection came down by ₹40 crore, he said. The Centre had compensated the loss for July by sanctioning ₹40 crore, he said. “I hope the Centre compensates for the loss suffered in the subsequent months,” he added.
Welcoming President Ram Nath Kovind’s advice to Governors and Lieutenant Governors to be the bridge between the Centre and States, he said the suggestion was “a very good one.”
Mr. Narayanasamy, who is at loggerheads with the Lt Governor Kiran Bedi, said the bridge proposed by the President should be “a sound structure.”
“I hope it is not a rickety structure,” he said.
On Congress victory in Gurudaspur Lok Sabha by-poll in Punjab and victory of Indian Union Muslim League in Vengara Assembly by-poll in Kerala, he said there were signs of change in the mindset of voters.