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This Article is From Jul 19, 2018

West Bengal Suggests Alternative Devolution Formula To Finance Commission

The panel chief also said the commission "will explore all possible ways" to restructure West Bengal's debt as demanded by the state.

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All India

The panel, headed by Chairman NK Singh has been on a three-day visit to the state.

Kolkata:

The West Bengal government has suggested an alternative formula to the 15th Finance Commission for devolution based on locational complexities, social backwardness, continuation of revenue deficit grants and others, an official statement said on Wednesday.

The panel, headed by its Chairman NK Singh, has been on a three-day visit to the state and is supposed to make field visits to IT Park in New Town, Madhyamgram municipality and Kemia Khamarpara gram panchayat on Wednesday.

"In their detailed presentations on state finances, officials emphasised on enhancing the devolution to the states, including a criteria of ''Social Backwardness'' and Locational Complexities like hilly terrain, international border wetlands and population density, continuation of Revenue Deficit grants and state specific fiscal targets, among others," the statement said.

It said the state suggested an alternative formula for devolution based on Locational Complexities and Social Backwardness, while demanding a revenue deficit grant of Rs 90,136 crore for 2020-25 and grant for infrastructure gap funding of Rs 1,46,692 for 2020-25, it said.

The Commission, which recognised the progress of the state, brought out some concerns like low capital expenditure as a percentage of total expenditure during the detailed deliberation, but "was assured by the state government that there has been a substantial enhancement in capital expenditure", the statement said.

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State Finance Minister Amit Mitra based on his deliberations with CSSO, apprised the Commission that discrepancies related to the macro-economic parameters are expected to be reconciled by August 2018.

The panel chief also said the commission "will explore all possible ways" to restructure West Bengal's debt as demanded by the state.

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The Commission will finalise its recommendations by October 2019 after completing its discussions with all the state governments, the central government and relevant stakeholders.

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