The 14th Finance Commission has suggested raising share of states in central taxes to 42 per cent from current 32 per cent. As per the increased devolution suggested in the report, the states will get Rs 3.48 lakh crore in 2014-15 and Rs 5.26 lakh crore in 2015-16. The higher tax devolution will allow states greater autonomy in financing and designing of schemes as per their needs and requirements, the report said. Finance Minister Arun Jaitley addressed a press conference on the finance commission report.
Highlights
- Never earlier has a 10% hike by one finance commission been given
- States can't keep looking at Centre
- States have to get self-sufficient
- Recommendations of the panel will be implemented for 5 years starting April 1, 2015
- Can't have a command structure in Delhi which will decide on how the states will move
- One size will not fit all
- The Prime Minister has written to chief ministers of all the states informing them of this decision and to accept recommendations of Finance Commission
- States should also cooperate with Centre in national development
- Every spending within Indian territory will add to the growth process
- Centre is happy that the allocation of financial resources to the states has been augmented
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