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Fin Com tells Odisha special status issue not under its purview

Press Trust of India  |  Bhubaneswar 

The 15th Commission has told that granting 'special category' status does not fall under its purview, but assured the state it will look into the demand for hiking its share in the central tax kitty.

Addressing the Commission, which is currently visiting the state, Wednesday demanded an increase in the state's share in net taxes to 50 per cent from the existing 42 per cent and a 'special category' status for

"We will examine all the issues raised by the state government," Commission N K Singh said.

On the demand for special category status, he said, "Similar demands have been made by and But the issue does not come under the purview of the 15th Commission."

Earlier in the day, the commission observed that was nowhere near reaching its true growth potential despite being mineral-rich.

The commission made the observations during an interaction with various trade and industry bodies here on the first day of its three-day consultation programme.

The earlier said the government also sought Rs 8.24 lakh crore for five years between 2020 and 2025, and demanded that cess and surcharges be made part of divisible pool and 1971 population be used as a criteria for tax devolution.

Among the major suggestions to the commission, Patnaik sought extension of GST compensation for another 10 years and to be spent in

The alleged that successive governments at the Centre have neglected Odisha, which frequently faces natural calamities.

The state's demands were made under different heads like pre-devolution revenue deficit (Rs 6,71,365 crore), state specific needs (Rs 87,520 crore), disaster response (Rs 11,875 crore) and grants to local bodies (Rs 53,884 crore), S B Behera said.

While the had demanded Rs 4.6 lakh crore from the 14th Finance Commission, it had received around Rs 1.84 lakh crore by 2018, a said.

While estimating the projected revenue deficit during 2020-25 at Rs 6,71365 crore, Odisha also demanded inclusion among the special category status states in view of its developmental status and needs.

The said since special category states have been renamed as North Eastern and Western Himalayan States, Odisha requested the 15th to recommend the funding pattern of 90:10 at par with these states.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 20:50 IST