The 15th Finance Commission has assured of action on the Rajasthan government’s demand for additional funds with the sympathetic consideration of factors such as difficult geography, heterogeneous society, limited resources and future needs. The commission completed its four-day visit to the State on Monday.
Finance Commission Chairman N.K. Singh said the State government had worked in several fields, such as health, education, drinking water and renewable energy in the last eight months. He said though the State had its own set of problems, the commission was satisfied with the priority accorded to solar and renewable energy.
“We will certainly have sympathy for Rajasthan and there will be no injustice,” Mr. Singh said.
CM’s demands
Chief Minister Ashok Gehlot has affirmed that the State government ensured effective financial management of its resources and complied with the Fiscal Responsibility and Budget Management Act despite the huge debt pressure on the exchequer.
Mr. Gehlot demanded additional funds for drinking and irrigation water, education and health facilities, development of roads, energy, information technology and tourism sectors. He also said the share of States in Central taxes should be increased from 42% to 50% in view of the mandatory expenditure on the subjects allocated to them and the amount spent on the services being provided.
The Chief Minister said the Centre should compensate the States by 2024-25 for the deficit incurred by the latter for not increasing the revenue generated from GST. While seeking the States’ share in the cess and surcharge imposed by the Centre, Mr. Gehlot requested the Finance Commission to recommend that the States be given share in the Union government’s non-tax revenue as well.
