As tax collections dwindle, states to get less amount

States would get over Rs 18,000 crore less from the transfer of the Centre's tax collections for the current fiscal against the original plan, as overall tax revenues of the Centre dwindled due to slowing economy.

The Interim Budget, presented in the Parliament by Finance Minister Pranab Mukherjee, would transfer Rs 1,60,000 crore of taxes and duties to states this fiscal against Rs 1,78,000 crore provided for in the budget estimates.

The Centre's gross tax collections have been revised downwards to Rs 6,28,000 crore from Rs 6,88,000 crore.

For the next fiscal, Rs 1,71,000 crore, collected from tax and duties, will be transferred to states, which is higher than the revised estimates for this fiscal but lower than budgeted estimates.

However, the Centre's grants to states would increase to Rs 1,28,000 crore in the current fiscal against Rs 1,25,000 crore provided originally.
This is proposed to rise further to Rs 1,39,000 crore next fiscal.

The Centre's loans to states would rise to Rs 1,28,000 crore this fiscal from Rs 1,24,000 crore in the budget estimates. However, it would fall to Rs 3,274 crore in FY10.

Meanwhile, the Centre's assistance to states from National Calamity Contingency Fund would rise to Rs 3,265 crore from Rs 1,800 crore provided originally. This is, however, proposed to come down to Rs 2,500 crore.