Gehlot accuses Centre of financially weakening States

‘States not getting their full share in Goods and Services Tax’

April 01, 2021 11:44 pm | Updated 11:44 pm IST - JAIPUR

Rajasthan Chief Minister Ashok Gehlot on Thursday accused the BJP government at the Centre of making the States “financially weaker” by reducing its share in the Centrally sponsored schemes and taking policy measures which had led to a significant reduction in the States’ share from the divisible pool.

Mr. Gehlot extended support to West Bengal CM Mamata Banerjee, who has written a letter to all Opposition parties and raised the issue of the Centre stopping the devolution of funds to the States as well as the violation of constitutional and democratic norms.

Mr. Gehlot said he had raised similar issue of “step-motherly treatment” from the Centre in the State Assembly.

‘Double speak’

“On the one hand, the Prime Minister talks about cooperative federalism, and on the other hand the States are being made financially weak... The States are not even getting their full share in the Goods and Services Tax,” Mr. Gehlot tweeted.

The Chief Minister said the Union government had imposed cess on diesel and petrol and was constantly reducing basic excise duty, while the special excise duty and additional excise duty was being increased. Because of this, the share of States from the divisible pool had significantly reduced, he said.

Providing details of the devolution of funds, divisible pool and changes in the sharing pattern of Centrally sponsored schemes, Mr. Gehlot said the actual share of States had come down from 41% to 34%.

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