CM has welcomed in toto acceptance of 14th Finance Commission recommendations by the Government of India 24-02-2015
Chandigarh February 24 – Haryana Chief Minister, Mr. Manohar Lal has welcomed in toto acceptance of the 14th Finance Commission recommendations by the Government of India. Thanking the Prime Minister Mr. Narendra Modi he said that the acceptance of recommendation of transfer of 42% of divisible pool to the States including taxes, grants, etc., was in the true spirit of cooperative federalism. He also welcomed the historic decision to give up the distinction between plan and non-plan allocations. He further said that the decision to significantly increase the States share, will enable the States to utilize the enhanced resources according to the felt needs of the residents of the State. Mr. Manohar Lal stated that the increase of approximately 10% of the share in the Central Taxes will provide an additional almost 1.78 trillion rupees to the States. He complimented the Central Government for accepting this increase which has provided a paradigm shift in the total devolution of funds to the States. He has further welcomed the proposal to transfer implementation of central schemes to the States, with continued central support. Haryana’s Benefits The 14th Finance Commission has recommended tax devolution of Rs.39.48 lakh crore to all the states for the award period 2015-2020. The tax devolution for the Financial Year 2015-16 is Rs.5.79 lakh crores for all states. The states will now get a 42 per cent share in the net proceeds of the Union tax revenues. As compared to the total devolution in 2014-15 the total devolution of the states in 2015-16 will increase by 45 per cent. Haryana was allocated an amount of Rs.15199 crore as share in central taxes for the TFC period, this has increased to Rs.42798 crore in the 14th Finance Commission. The grants in the 13th Finance Commission period were Rs.4270.84 crore and the 14th Finance Commission has recommended Rs.7662.47 crore for the same. The basic grant provided to local bodies in Haryana is Rs.5159.120 crore for the 14th Finance Commission award period as against an allocation of Rs.1521.3 crore in the 13thFinance Commission award period. There is no performance grant for 2015-16 for local bodies (Panchayati Raj Institutions and Urban Local Bodies). However, for the period 2016-2020 the maximum performance grant available to the local bodies is Rs.804.34 crore. An amount of Rs.1699 crore has been allocated to Haryana under the State Disaster Response Fund in the FCC for 2015-2020 as against an allocation of Rs.844 crore in 2010-2015 under the 13th Finance Commission.