Arunachal seeks Rs 85k cr grant from Finance Commission

The Arunachal Pradesh government today sought from the 14th Finance Commission a central fiscal package of Rs 85,000 crore for the state.
Chief Minister Nabam Tuki, while addressing a meeting with the members of the Commission - on a three-day visit to the state - said it faced fiscal challenges because of the gap in the non-Plan Revenue Deficit Grant recommended by the 13th Finance Commission and the actual expenditure.
A major chunk of non-plan expenditure was spent on the salary and wages, he said.
He apprised the Commission that the implementation of the 6th Central Pay Commission -- the package to state government employees along with arrears, enhanced DA instalments, upgradation of all group-D employees to group-C and MACP scheme for all employees -- has contributed to the enhanced bill.

The Chief Minister also informed that concerted efforts were being made in various areas for improving the fiscal position of the state through fiscal discipline measures, steps to increase the tax and non-tax revenue of the state, institutional reforms.
The tax revenue has grown from Rs 98 crore in 2007-08 to Rs 442 crore in 2013-14, registering a growth of 220 per cent, he said.

Commission's Chairman Y V Reddy said he has noted the issues and challenges highlighted by the state government as well as the demand for special dispensation for addressing the development needs of the state.
The Finance Commission is required to give its report on distribution of tax revenues between the Union and the States, and amongst the States themselves, by October 31, 2014.

Its recommendations will cover 5-year period commencing from April 1, 2015.