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States empowered with additional funds

States' share has increased to Rs 5.24 lakh crore in FY16 as compared to the FY15 revised estimates of Rs 3.38 lakh crore

Business Standard 

In line with the Centre's plans to give more fiscal autonomy to the states, the has provided for a 55 per cent increase in their share of taxes and duties. With this, the states will get about 62 per cent of the total tax receipts of the country, Finance Minister Arun Jaitley said.

"In keeping with the true spirit of cooperative federalism, we have devolved a 42 per cent share of the divisible pool of taxes to states," Jaitley said. The states' share has increased to Rs 5.24 lakh crore in the financial year 2015-16 as compared to the 2014-15 revised estimates of Rs 3.38 lakh crore. "Another Rs 3.04 lakh crore would be transferred by way of grants and plan transfers," Jaitley added..

Read our full coverage on Union Budget Further, the total central assistance (Plan and non-Plan) for states and union territories stands at Rs 2.10 lakh crore for 2015-16, down from Rs 2.83 lakh crore from the revised estimates of 2014-15. The assistance under the Plan expenditure stands at Rs 2.04 lakh crore as compared to the revised estimates of Rs 2.78 lakh crore.

And the non-Plan share has been increased to Rs 5,611.25 crore as compared to revised estimates of Rs 5,224.24 crore. The number of centrally-sponsored schemes has, meanwhile, been curtailed to 61 from the 66 in 2014-15.

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First Published: Sun, March 01 2015. 00:33 IST