Assam CM alarmed over fall in tax devolution: 16th Finance Commission

Guwahati, Sep 27: Chairman of the 16th Finance Commission Arvind Panagariya on Thursday said Assam Chief Minister Himanta Biswa Sarma expressed concern over the “steady decline of tax devolution” for the state and sought arrest of the trend.

Panagariya and other members of the panel held a meeting with Sarma, his cabinet colleagues and top government officials earlier in the day.

“The CM expressed concern that since the 13th FC, Assam has seen its share of devolution declining steadily. He said it’s connected to lower taxes on petroleum products and liquor in neighbouring states,” Panagariya said at a press conference.

He said Sarma pointed out that lower taxes in neighbouring states are compensated by the commission, leading to revenue loss for Assam.

“The CM strongly pitched to reverse it. The Assam government suggested different criteria for devolution for different states. The 15th FC had devoluted 15 per cent of states’ share. Assam has suggested reducing it to 10 per cent,” Panagariya said.

The Assam government also advocated a new criterion of “multi-dimensional poverty” and wanted five per cent of the total pool of the state be allocated under this head, he said.

Panagariya said that Sarma also made a strong pitch for higher allocation for disaster relief funds.

“He told us that money is coming from the Centre as relief, but not for rebuilding. It usually takes three years for rebuilding roads and other infrastructure damaged in floods or natural disasters. This figured very prominently in the presentation and CM’s speech,” he said.

Asked about the fiscal health of Assam, Panagariya said the debt to GDP ratio of the state currently stands at 23.5 per cent and it is “well within the tolerance limit”.

The FC found “merit” in the suggestions and requests by Assam over various monetary issues, he said.

Panagariya said the state government made a detailed presentation regarding taxation and fund-related issues in three different parts.

“The first part was on the history and geography of Assam. The second was related to developments in different areas like health, education and financial aspects, while the last part was on devolution,” he said.

Panagariya said Assam is the seventh state in the country that the Commission has visited, and each one has presented itself as a “special state”.

“That is the diversity in India. The allocation of tax revenue will be a balancing act. The arguments of the states are all good. We will certainly go back and look at them,” he said.

The Commission reached Assam on Wednesday for a four-day tour, during which it would discuss monetary issues with various stakeholders.(PTI)

Hot this week

Pay hike of Assam ministers, MLAs likely as 3-member panel submits report

Full report likely by Oct 30 Guwahati Sept 25: There...

Meghalaya Biological Park Inaugurated After 25 Years: A New Chapter in Conservation and Education

Shillong, Nov 28: Though it took nearly 25 years...

ANSAM rejects Kuki’s separate administration demand, says bifurcation not acceptable

Guwahati, Sept 8: Rejecting the separate administration demand of...

Meghalaya man missing in Bangkok

Shillong, Jan 10: A 57-year-old Meghalaya resident, Mr. Treactchell...

Meghalaya’s historic fiber paves the way for eco-friendly products and sustainable livelihoods

By Roopak Goswami Shillong, Oct 25: From making earbuds to...

EC to publish draft electoral rolls prepared under SIR on Friday

Patna, July 31: Amid fears that voters in many...

NE’s rainfall deficit to persist in August: IMD

Guwahati, July 31: The unprecedented rainfall deficit is likely...

BSF evacuates ailing person from remote border village

Shillong, July 31: Thanks to yeoman’s service provided by...

Governor hails Ri Bhoi for Sampoornata Abhiyaan success

Shillong, July 31: Meghalaya Governor CH Vijayashankar has praised...

Crime conviction rate goes up in EJ Hills

Shillong, July 31: Conviction rate for various crimes, including...

Singapore to stop entry to high-risk travellers from 2026

Singapore, July 31: Singapore will stop entry of high-risk...
spot_img

Related Articles

Popular Categories