Naveen takes swipe at Centre for raising service tax burden

Says change in funding pattern of most Central schemes will benefit developed states and deprive eastern states including Odisha

Chief minister Naveen Patnaik has flayed the central government for raising the effective rate of service tax through cess and surcharges.

"The rising trend of cess and surcharges further deprive our state from the due share in central taxes. The service tax which was 12.36 per cent in 2014 has now effectively become 15 per cent (inclusive of surcharges and cess). This will further increase prices, putting a heavy burden on the common man", he said.

Pointing to the restructured central schemes, the chief minister said the funding pattern of most of the schemes which used to be in the 90:10 pattern between the Centre and states has been changed to 60:40 or 50:50. "This change in fund sharing pattern will benefit developed states and deprive the not so developed eastern states including Odisha," he opined.

Patnaik who recently completed two years in office in his fourth straight term as chief minister, expressed satisfaction over the performance of departments vis-a-vis poll promises. My government believes in performance and not in propaganda, he asserted.

"I am happy to note that most of the departments have done exceedingly well, in some areas we have to improve. We are the only state in the country to adopt the manifesto as the agenda for governance on the day we assumed office", he claimed.

Highlighting the achievements of his government, Patnaik said Odisha has created a national record in providing shelter security to more than a million households. Other achievements cited by the chief minister are electrification of 1.15 million households including 0.3 million BPL families, establishment of 100 model schools, implementation of Niramaya- free medicine distribution scheme and roll out of Industrial Policy Resolution (IPR), 2015.