CM seeks 'clear formula' for devolution of Central funds

Puducherry Chief Minister N Rangasamy today pitched for a 'clear formula' for devolution of Central funds to the union territory and application of the recommendations of the 13th Central Finance Commission to the UT, as done for the States.
Speaking at the first meeting of the governing council of the newly constituted NITI Aayog in New Delhi today,he pointed out that the Central Finance Commission was now covering only the States and not Puducherry.
Rangasamy said that for want of a clear formula on devolution of central resources to Puducherry, the UT does not get any share in Central taxes. There was also no financial devolution for panchayati raj institutions and local bodies.

Puducherry was losing Rs 300 crore every year in the absence of the clear formula, he said.
He also said that though the Home Ministry had supported Puducherry's plea, the Finance Ministry had not done so.
The CM contended that as the Union Territory now had a separate public account and a separate consolidated fund, it should be funded on the pattern recommended by the 13th Finance Commission as done for the States.

He requested the Prime Minister to direct the Finance Ministry to release interim relief of Rs 600 crore projected as additional demand by his government for implementing various schemes during the fiscal 2014-2015.

Rangasamy sought waiver of loan and interest thereto totalling Rs 3,400 crore remaining outstanding from the UT to the Centre as the debt burden had been increasing enormously.
Reiterating the plea for statehood, he pointed out that as many as 13 resolutions had been adopted in the assembly so far and the demand had also been supported by all political parties, including national parties.
He also pleaded for Centre's approval of government's plan to declare the government owned AFT mill as a 'relief undertaking' under provisions of the Tamil Nadu Relief Undertakings (Special Provisions) Act 1969, extended to the Union Territory in 1984.

Copies of his speech was distributed to mediapersons by Directorate of Information and Publicity here.