File Photo: Union Health Minister JP Nadda
Shimla:
Union Minister JP Nadda has termed the allegations of stoppage of central funds to the Himachal Pradesh as baseless.
Chief minister Virbhadra Singh's allegations are aimed at misleading the people to divert their attention from "collapse of governance" in the state, Mr Nadda said.
Refuting the claim of the CM, Mr Nadda asserted that the NDA government led by Prime Minister Narendra Modi accepted the recommendations of 14th Finance commission and share of states in central taxes was increased from 32 to 43 per cent.
"This historic rise in central devolution and grants to the state is because of the efforts of the NDA government which also decided to increase the ratio of central government assistance in centrally sponsored schemes to 90 per cent, accepting the long standing demand of the state government.
Many of the centrally sponsored schemes like IAY, Sarv Shiksha Abhiyaan, RMSA, Command area development scheme etc., where in the state government share used to be in the range of 25 to 35 per cent has been reduced to 10 per cent, which was a substantial help to the state, Mr Nadda said.
He added that the "central government devolved enough funds to the state but unfortunately, the state government frittered away this windfall on non-productive assets.
"The CM is still functioning in a dole and patronage mode and contractors are determining investment priorities of the State," the Union Minister for Health and Family Welfare, alleged.
In a press release Mr Nadda said, "Central government is committed to fiscal devolution in the true spirit of cooperative federalism and due to liberal release of central government grants by NDA government to Himachal, the financial position of the state is much better financial position to raise the spending in social and economic sectors.
He said, "I would urge the state government to spend this enhanced allocation of funds from the Central government wisely for better social and economic development of the state."
"All the cost disabilities of Himachal Pradesh like low level of economic activities, remoteness and proximity to international borders etc., have also been taken care of while determining its share in Central divisible pool.
A total tax devolution of Rs 28,225 crore has been estimated to Himachal Pradesh for the period 2015-20 against actual release of Rs 11,131 crore during the period 2010-15, an increase of Rs 17,094 crore over a period of five years.
"Besides, grants-in-aid has also been recommended for the State of Himachal Pradesh to the tune of Rs 43810 crore for the period 2015-20, an increase of Rs 33356 crore over actual release during the period 2010-15," Mr Nadda added.
During 2015-16 alone, tax devolution to Himachal Pradesh is estimated at Rs 3744 crore which is Rs 1100 crore more than Rs 2644 crore released during the previous year 2014-15.
In addition, FC grants of Rs 8436 crores (including the RD grant of Rs 8009 crore, will also flow to the State during 2015-16, which is more than six times of Rs 1109 crore release during previous year.
Thus, funds transfer to Himachal Pradesh during 2015-16 alone is estimated to have increased by 86 percent to Rs 12179 crore from Rs 6548 crore released during 2014-15.
The raise in tax devolution and grants in aid has been much higher as compared to the block grants like NCA, SCA and SPA which have since been subsumed, Mr Nadda added.
Chief minister Virbhadra Singh's allegations are aimed at misleading the people to divert their attention from "collapse of governance" in the state, Mr Nadda said.
Refuting the claim of the CM, Mr Nadda asserted that the NDA government led by Prime Minister Narendra Modi accepted the recommendations of 14th Finance commission and share of states in central taxes was increased from 32 to 43 per cent.
"This historic rise in central devolution and grants to the state is because of the efforts of the NDA government which also decided to increase the ratio of central government assistance in centrally sponsored schemes to 90 per cent, accepting the long standing demand of the state government.
Many of the centrally sponsored schemes like IAY, Sarv Shiksha Abhiyaan, RMSA, Command area development scheme etc., where in the state government share used to be in the range of 25 to 35 per cent has been reduced to 10 per cent, which was a substantial help to the state, Mr Nadda said.
He added that the "central government devolved enough funds to the state but unfortunately, the state government frittered away this windfall on non-productive assets.
"The CM is still functioning in a dole and patronage mode and contractors are determining investment priorities of the State," the Union Minister for Health and Family Welfare, alleged.
In a press release Mr Nadda said, "Central government is committed to fiscal devolution in the true spirit of cooperative federalism and due to liberal release of central government grants by NDA government to Himachal, the financial position of the state is much better financial position to raise the spending in social and economic sectors.
He said, "I would urge the state government to spend this enhanced allocation of funds from the Central government wisely for better social and economic development of the state."
"All the cost disabilities of Himachal Pradesh like low level of economic activities, remoteness and proximity to international borders etc., have also been taken care of while determining its share in Central divisible pool.
A total tax devolution of Rs 28,225 crore has been estimated to Himachal Pradesh for the period 2015-20 against actual release of Rs 11,131 crore during the period 2010-15, an increase of Rs 17,094 crore over a period of five years.
"Besides, grants-in-aid has also been recommended for the State of Himachal Pradesh to the tune of Rs 43810 crore for the period 2015-20, an increase of Rs 33356 crore over actual release during the period 2010-15," Mr Nadda added.
During 2015-16 alone, tax devolution to Himachal Pradesh is estimated at Rs 3744 crore which is Rs 1100 crore more than Rs 2644 crore released during the previous year 2014-15.
In addition, FC grants of Rs 8436 crores (including the RD grant of Rs 8009 crore, will also flow to the State during 2015-16, which is more than six times of Rs 1109 crore release during previous year.
Thus, funds transfer to Himachal Pradesh during 2015-16 alone is estimated to have increased by 86 percent to Rs 12179 crore from Rs 6548 crore released during 2014-15.
The raise in tax devolution and grants in aid has been much higher as compared to the block grants like NCA, SCA and SPA which have since been subsumed, Mr Nadda added.
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