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| MP govt demands Rs 33,000 cr to improve economy |
| Press Trust of India / Bhopal Jun 09, 2009, 12:50 IST |
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The Madhya Pradesh government has demanded a special package worth Rs 33,000 crore for the state from the Centre to improve its economy and accelerate the slow growth rate of the state.
A demand in this regard was made by the state Chief Minister Shivraj Singh Chouhan during a meeting with the 13th Finance Commission held at Mantralaya here yesterday, an official release said today.
Chouhan said that a special package was needed for accelerating the slow growth rate of the state and improvement in its economy.
The Chief Minister has demanded the special package like the one offered to North Eastern states, Himachal Pradesh and Uttarakhand by the Centre, the release said. Besides, Chouhan also submitted a number of grants-in-aid proposals including sharing burden of Sixth Pay Commission by the Centre and giving status of national projects to the Narmada Valley Projects in the state before the Commission, it said.
The Chief Minister said that the State Government has granted the benefit of the Sixth Pay Commission to its employees.
"There cannot be double standard that the central government should give the benefit of the Sixth Pay Commission to its employees and the state should not do so," he said.
The grant of the Sixth Pay Commission to the employees has made an adverse effect on state's financial condition, Chouhan said adding in this context, the Centre should make available additional funds to the state.
Stressing the need for giving the status of national projects to the Narmada Valley projects of Madhya Pradesh, the Chief Minister said that the state would get 90 per cent grant for these projects.
He said that better power supply is inevitable for agro-based economy of the state and demanded Rs 9,000 crore for separation of feeder to ensure 24-hour power supply to villages and eight hour supply to the farm sector.
Singh said that as per the recommendations of the 12th Finance Commission, the 30.5 per cent allocation to the states is not adequate to meet the financial requirements of the works being carried out by states and demanded 50 per cent for states in the divisive pool.
The Chief Minister urged that the cess and surcharge imposed on all central taxes should be linked to the divisive pool.
Stating that increasing matching grant component of states in the centrally sponsored schemes is a matter of concern, he, citing the example of Sarva Shiksha Abhiyan, said that the frequent changes in the formula for state share adversely affects state's resources and they are unable to mobilise funds for their specific schemes.
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