R'sthan urges 15th Fin Commission to hike share of states in central taxes

Rajasthan Chief Minister Ashok Gehlot on Monday urged the 15th Finance Commission to increase the share of states in central taxes from 42 per cent to 50 per cent.

"It is constitutionally necessary to increase the share of states in the central taxes in view of the mandatory expenditure of the states on the subjects allocated to the states and the amount spent in the services being provided," Gehlot said in a meeting held with the 15th Finance Commission here today.

The chief minister said the Centre should by 2024-25 compensate the states for the deficit, which states have incurred for not increasing the revenue generated from GST.

Gehlot said that states should also get a share in the cess and surcharge imposed by the Centre. He requested the commission that states get share in non-tax revenue of the central government like offshore royalties, disinvestment of PSUs and sale of spectrum.

He urged the commission to provide adequate financial support to the state in view of the heterogeneous geographical and social status of the state, limited resources and future needs.

The chief minister has requested to allocate additional resources to the state for development of drinking water and irrigation, education, health, roads, energy, information technology and tourism.

He said that despite the increased pressure on the treasury due to social security schemes, seventh pay commission, Uday Yojana and crop loan waiver, the state government has largely abided by the FRBM Act, which shows the efficient financial management of the government.

Gehlot said that Panchayat Raj Institutions and urban bodies in almost all states are facing fragile financial situation. He requested that the Central Finance Commission to recommend a minimum increase of 2.5 times the grant due to local bodies on the basis of recommendations given by the 14th Finance Commission.

He said the GST collection is decreasing and no states have been left untouched by it.

The chief minister said Rajasthan has received Rs 1,800 crore less from the Centre this year. In such adverse circumstances, the 15th Finance Commission is working on the issues. After the introduction of GST, states have become largely dependent on the Centre in terms of revenue collection.

He said the Finance Commission has a big role in financial transfer. The commission should take a sensitive approach in the interest of the states.

The Finance Commission team led by Chairman N K Singh was on a four-day visit to the state.