The Left Front government in Tripura wants the Narendra Modi government should be generous to provide economic support to small States, a Minister said in Tripura on Wednesday.
“Tripura and other small States have been facing huge debt burden. We sincerely expect that the central government must waive the State’s debt to the Union government,” Tripura’s PWD and Health Minister Badal Chowdhury told reporters.
Mr. Chowdhury, who represented the Left Front government at the swearing-in ceremony of Mr. Modi on Monday, said: “Almost all States in the country have been demanding to provide at least 50 per cent share of the central taxes, but the centre has been ignoring the demand.”
ADVERTISEMENT
He said the new government must reconstitute the Planning Commission soon and finalise the annual plans of the States.
The annual plans for the 2014-15 fiscal year for States earmarked by the Planning Commission are yet to be finalised due to the Lok Sabha elections spread over April-May.
Generally, during the months of March-April, the plan panel holds discussions with officials and Chief Ministers of all States to finalise their annual plans.
ADVERTISEMENT
“Tripura was deprived of financial assistance by the 13th Finance Commission. Hence, the State has been facing serious financial crunch,” said Mr. Chowdhury, who until last week was the Finance Minister of Tripura for about 18 years.
The CPI(M)-led Left Front government in Tripura has been demanding a financial package of Rs. 13,600 crore from the central government to overcome its severe financial crisis in view of the “erroneous recommendations of the 13th Finance Commission”.
Tripura sought around Rs. 27,000 crore, but the 13th Finance Commission recommended only about Rs.16,350 crore in 2009. Its report was accepted by the UPA government.