Budget proposals would further weaken states financially: MP CM

Madhya Pradesh Chief Minister, Shivraj Singh Chouhan has said the budget proposals presented by Union Finance Minister Pranab Mukherjee in the Lok Sabha would further weaken the states financially and also opposed the introduction of proposed Goods and Services Tax (GST).

"The budget proposals would further weaken the states financially as in the annual plan outlay the state (Madhya Pradesh) used to get an additional money of Rs 1200 to Rs 1400 crore, but it will reduce considerably with the new proposals, Chouhan told reporters yesterday.  Referring to the introduction of GST, he said that GST if implemented would cause a loss of Rs 2200 crore to the state and it may also lead to the rise in the prices of essential commodities.

Chouhan demanded that it should not be introduced in a hurry and a detailed analysis should be carried out before its implementation.

The Chief Minister also raised the issue of contribution of states being raised in the centrally-sponsored schemes and added that it will also cause problems to the states.

Referring to the hike in the salaries of the government employees owing to the pay panels recommendations, the Chief Minister said that whenever Centre takes such an step, it raises taxes proportionately to meet the additional burden, but the states have no such option.

He highlighted that following the decision to implement the pay panels recommendation the government expenses have increased by 65 per cent.

The Chief Minister, however, praised the proposed Food Security Law, but demanded that the quantity of food grain to be given to the beneficiaries should be raised to 35 kg from the proposed 25 kg.

He also demanded to include all poor families under the purview of the BPL category and also doubling of guaranteed employment under the National Rural Employment Guarantee Scheme (NREGS) from the present 100 days.